The State of Wyoming Passes Three Bills for the Crypto Industry

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The State of Wyoming Passes Three Bills for the Crypto Industry

The new bill by Wyoming classifies digital assets as property while legalizing its uses in other blockchain-based financial services.

The State of Wyoming Passes Three Bills for the Crypto Industry

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Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

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Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

Mike Novogratz has announced once more that he is confident bitcoin will become a store of value in future even overtaking gold for that purpose to become the ultimate digital gold.

Mike Novogratz Argues that Bitcoin Will Eventually Become Digital Gold

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Mike Novogratz: All the Big Macro Funds Should Hold at Least Small Percentage in Bitcoin

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Mike Novogratz: All the Big Macro Funds Should Hold at Least Small Percentage in Bitcoin

Mike Novogratz, the chief executive of the TSX-listed Galaxy Digital, made a surprising remark that came straight out of left field saying that he doesn’t understand why large macro funds don’t have a 1% position in Bitcoin (BTC).

Mike Novogratz: All the Big Macro Funds Should Hold at Least Small Percentage in Bitcoin

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Bitcoin Will Gain More Than 80% Throughout 2019, New Study Explains Why

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Bitcoin Will Gain More Than 80% Throughout 2019, New Study Explains Why

Despite the persistent crypto winter, a panel of financial markets analysts in Australia predicted that Bitcoin will rise by over 80% throughout 2018 fueled by several short-term catalysts.

Bitcoin Will Gain More Than 80% Throughout 2019, New Study Explains Why

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Bitcoin Bear Market got Institutional Investors’ interest On its Transformative Potential

Interesting times are ahead as institutional players acknowledge the power of Bitcoin and crypto despite the crypto market crash. With the focus on establishing a standard for the trading venue and custody platform, these players are working on creating a “trusted platform.”
The Potential of Bitcoin & Crypto can’t be Ignored
While Bitcoin crashed over 80 percent in 2018, crypto market attracted institutional interest. In a recently posted video, TD Ameritrade Manager of Trading Strategy Shawn Cruz said that TDA clients’ interest in Bitcoin has rekindled with the drop in Bitcoin price below $4k.
“At TD Ameritrade, we offer Bitcoin futures trading for our clients. We saw them get very interested when we volume spiked when it was around $10,000. On this pullback lower, there really wasn’t much activity from our client base. But now that we’re getting down to this 3 or $4,000 price level on Bitcoin, we’re starting to see our clients become more interested in trading Bitcoin again. So I think it’s going to be interesting to see what Bitcoin does from here.”
Fidelity Investments also stated that they do realize Bitcoin is not the “first form of digital cash” but “we recognize the transformative potential it has created.”
In about mid-January, Adena Friedman, the CEO of Nasdaq had also acknowledged the potential of Bitcoin and cryptocurrencies in one segment of her LinkedIn post titled, “Crypto Currencies Could Still Be a Global Currency of the Future.”
“The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy.”  
Setting Standards for a Trusting Platform
Just recently, it has been also found that Fidelity Investments has reportedly set March the launch date for its Bitcoin custody service.
Now, one of the largest asset managers with $2.46 trillion assets under management, Fidelity Investment is making further progress into the cryptocurrencies space since it made the initial announcement in October. In its latest announcement, the firm shared,
“We have continued to build the technical and operational capabilities needed for securing, trading and supporting digital assets with the exacting oversight required by institutional investors.”
The company is its final testing while “currently serving a select set of eligible clients as we continue to build our initial solutions.” The initial clients of the firm are part of the final testing phase that will enable the company to provide these services to “a broader set of eligible institutions.”
With big institutions at play, a great deal of time is invested in the areas of product, operations, risk, and compliance as Fidelity is actively working on adapting existing operational processes, refine the policies and procedures and  “to set new benchmarks for this aspect of cryptographic and blockchain-based finance.”
The company is working on establishing a standard that is “expected from Fidelity” as the clients it is in conversation with have communicated the need for a “trusted platform provider in order to engage with digital assets in a meaningful way.”
Recently, Bakkt has also shared they are on a hiring spree while making its first acquisition while awaiting regulatory approval from the authorities.
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Source: CoinGape

JP Morgan, Fidelity Keep Their Crypto Interest Active While The World Needs to Understand Crypto Nascency Roadblocks – Expert Opinion

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights

JP Morgan attempts to value Bitcoin Mining Cost in its latest report
Fidelity plans a March Launch of Crypto Custody services
Understanding Crypto Nascency Roadblocks

Wall Street Institutions continue their interests in crypto
Well with Bitcoin ETF now out of the way for a while, direct investment plans of traditional financial institutions may also have gone cold. But the interest in cryptos continues to fuel the fire. JP Morgan recently released the report titled “Blockchain and Cryptocurrencies: Adoption, Performance and Challenges” which speaks about roadblocks to adoption, the recent bear market, scalability issues, and other standard stuff. But the report takes an interesting twist when it tries to calculating bitcoin’s mining costs.
According to JPM’s assessment, it broke down miners into categories and claimed that it is the low-cost miners who set the price floor. Even though there were critics of this method, the JPM assessment looked fine to an extent.

What happens is, mining costs are notoriously difficult to estimate but assuming for argument’s sake these numbers are correct, bitcoin is now below the average mining cost ($4,060). And what the report does indicate is that if the high-cost miners choose to exit, then the low-cost miners will then be competing against each other, which could drive the prices down as far as $1,260. Again, an accurate statement.
The only thing here that JP Morgan fails to take into account is a simple matter of behavioral economics. By their own admission, and included in the graph above, a large number of miners have been operating at a loss for a while now, and hash rates continue to increase even in countries where electricity is more expensive.  Therefore, there isn’t much reason to assume that if someone in the Czech Republic, for example, has been mining bitcoin for $8,000 until now, he’ll suddenly abandon his rig if the price drops another $1,000 or $2,000. Certainly, some will be forced out as nobody can operate at a loss indefinitely, but whoever can afford to will likely hang on for as long as they can.
Fidelity moves ahead with its crypto plans
While JP Morgan continues its homework on bitcoin, Fidelity Investments is targeting a March launch date for its Bitcoin custody service, according to three people with knowledge of the matter, as the mutual-fund giant moves forward with a plan that could help ease fears of trading cryptocurrencies.  The company, in October 2018, had announced that it would offer a range of crypto products designed for large investors like hedge funds.
Understanding crypto roadblocks
If one goes through the JP Morgan report, crypto still has a lot of roadblocks to achieve widespread adoption. One cannot fail to agree with their assessment that world is very much in the early days of the blockchain revolution and it could certainly take time before the full benefits are realized.
However, as investors, one still needs to take into account that all crypto assets are risky. The simple fact is that we’re dealing with very experimental technology and so things can certainly go wrong along the way. This is why it always pays to diversify your investment portfolio and trade in other assets as well.
One example of the way the tech could go wrong was experienced yesterday in the NEO network when NEO’s network got unintentionally forked. Now, without getting too technical it seems that some people running the NEO blockchain weren’t updating properly, possibly due to poor connections, and the entire network was out of sync. In any case, it seems that everything has been resolved by now and the impact on the price was minimal.
While NEO was one example of Nascenscy, Ethereum might run into a bit of difficulty due to the delay of the Constantinople upgrade. It seems that the “difficulty bomb” that the upgrade was supposed to offset has now kicked in and the block reward has dropped by 25%. On the one hand, less supply coming online could increase the price of Ethereum but it seems the hash rate is dropping at the moment. Not to worry though, Vitalik is currently sitting with some of the top devs at Stanford University campus working on the issue. Session recordings are here.

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Source: CoinGape

Will Fidelity’s New Institutional Crypto Products Boost Markets?

A major financial institution getting involved in cryptocurrencies is usually big news. With the prolonged US government shutdown hampering a number of long awaited crypto funds, large investment companies are seeking alternative ways to enter crypto markets.
Fidelity Crypto Custody Coming
According to Bloomberg Fidelity Investments is planning to launch its Bitcoin custody services in March. The mutual fund giant is hoping to ease the fears that institutional investors may have about the highly volatile and somewhat technical world of crypto trading. The delayed Bakkt and VanEk crypto funds have put the brakes on any hopes investors may have had about entering the space as early as February.
The firm initially announced an array of crypto based products for institutional investors back in October. Citing ‘three people familiar with the matter’ the report added that Bitcoin storage is likely to be the first offering shortly followed by a custody service. An official company statement yesterday added;
“We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”
The need for crypto custody arises from the risks involved of leaving investments with crypto exchanges. There were a number of high profile hacks during 2018, with Coincheck being the largest at over $500 million. These security breaches do not instill confidence in institutional investors who need to be safe in the knowledge that their crypto investments are securely stashed with a reputable finance firm. Fidelity, one of the world’s largest providers of retirement savings and mutual funds, aims to fill that niche by offering such a service.
It is not the first foray into crypto for Fidelity as CEO Abigail Johnson has been a Bitcoin proponent for several years. The firm’s Fidelity Digital Asset division aims to attract Wall Street whales to crypto markets by offering a safe haven for their assets via cryptographic key management. The company already has a huge reach working with over 13,000 financial institutions.
Fidelity could provide the first serious on-ramp for high rollers with the launch of its services in March. With markets on the floor, now would be a much more lucrative time to get in than in December 2017 when the first two Bitcoin hedge funds were launched by CME and CBOE. Those looking to invest now will be longing for such a product and Fidelity could be the catalyst to start markets moving upwards again.
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Bakkt, Fidelity, CME and CBOE have ‘positively positioned’ the future of cryptocurrencies, says Bitwise CEO

Bitwise’s chief executive officer, Hunter Horsley, spoke about the brutal dips taken by Bitcoin, which was ultimately mirrored by Ethereum [ETH], XRP, Tron [TRX] other cryptocurrencies, in an interview on Bloomberg.
He spoke about the importance of cryptocurrencies in the upcoming years and the entry of institutions, backed by the government, and how it could help improve and trigger the next bull run.
Horsley directed towards his firm [Bitwise] and said that investors, be it individuals or institutions, are investing in cryptocurrencies even though the market is undergoing a crash and that the people redeeming their investments are negligible as compared to the investors that are pouring in, to invest.
Furthermore, he said that the institutions or investors’ doubts or explanations about the current scenario/state of the market can be explained by the company or the custodian.
He continued:
“… it simplifies exposure, it’s you know, it’s much the same reason that the investors like investing in oil through ETFs or gold through ETFs, it takes away a lot of that complexity. what do you think? Obviously, this is a very competitive space, despite the continued slide, what do you think you’re offering that’s different from everyone else?”
Moreover, Horsely continued by stating that although the bear market has been brutal, more investors and enthusiasts are entering the space as they are getting acclimated with the underlying technology that cryptocurrencies bring to the table.
As a reason, he said that the cryptocurrency ecosystem has never felt more “positively positioned” than ever. He continued:
“So the beginning of next year, we’ll see Fidelity launch custody. The NYSE’s sister Bakkt will be launching futures and custody, CME is has launched features this year. CBOE and a number of others. So, I think they’re more participants than we’ve ever seen before and a lot of reason to be optimistic.”
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Source: AMB Crypto

CEO of Crypto Firm Quoine Says Bitcoin Will “Surpass” All-Time High by End of 2019

Over the past year, the cryptocurrency industry has bore witness to many claims from “experts” who said that the price of Bitcoin would skyrocket to never-before-seen prices by the end of 2018, with estimates ranging from conservative ones of $15,000, to more liberal ones of $50,000.
Because the markets have failed to adhere to these estimates and are presently trading just a hair above their year-to-date lows, industry experts are now setting their sights for the end of 2019, with Mike Kayamori, the CEO of Quoine, telling Bloomberg that he expects Bitcoin’s price to surpass its all-time high of nearly $20,000 by the end of next year.
November proved to be one of the worst months of 2018, with Bitcoin’s price falling to lows of $3,800, from which it has stabilized around its current price of approximately $4,000.
Despite this, Kayamori noted that he believes the bottom is near for Bitcoin and the markets in general, and importantly added that nobody really knows how the markets are going to act over any given period of time.
As for his vision for the months ahead, Kayamori told the interviewer that he expects December to be a lack-luster month for the markets due to there not being any catalysts to increase Bitcoin’s price.
“Right now, there’s nothing new, there’s no catalyst that would potentially shoot it [BTC] up, so I’d look at it kind of flat.” He further added that he believes the markets will build some upwards momentum sometime in the new year, stemming from renewed market sentiment.
Furthermore, he noted that unfolding regulations in Asia, and Japan in particular, may ultimately have a positive impact on the markets, as they will help to prevent hacks and mismanagement from occurring within cryptocurrency exchanges in the future.
The Quoine CEO also added that starting in the new year, exchanges will begin adhering to their improvement orders from regulatory authorities, which will ensure an all-around better experience for cryptocurrency investors.
Related Reading: Bitcoin Holds Steady Around $4,000, Cost of Mining Continues to Drop
Despite Positive Developments, Bitcoin Still Performing Poorly
At the time of writing, Bitcoin is trading up 2.2% at its current price of just under $4,000. Although Bitcoin appears to have found some stability at its current price point, it has failed to gain any serious momentum since setting its year-to-date lows of $3,600.
Many investors and industry insiders, Kayamori included, are surprised that the markets haven’t seen any positive price action so far in the final months of 2018. This despite the fact that there are multiple positive developments occurring in the industry, like the entrance of institutional players into the markets, including crypto platforms and products from companies including Fidelity and the ICE-backed exchange, Bakkt.
Kayamori concluded the interview on a hopeful, yet cautious, note, saying that he expects Bitcoin to surpass its all-time-high by the “end of next year.”
Featured image from Shutterstock
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Legendary Venture Capitalist: “We’re Close to a Crypto Nuclear Winter”

It’s no secret that 2018 has proven to be a rough year for the cryptocurrency markets, which have seen their market capitalization plummet from highs of over $800 million in January of 2018 to recently established yearly lows of under $120 billion.
The poor market performance, which can be attributed to little more than a boom-and-bust market cycle, has left many investors wondering when the markets will recover, and looking towards upcoming platforms and products being offered by major players in the world of finance, including an institutional investment platform from Fidelity, and a Bitcoin product from the ICE-backed company, Bakkt.
Despite there being positive developments occuring, one legendary investor warns that the cryptocurrency markets may be entering into a “nuclear winter,” while also noting that the technology is exciting and that it does have an exciting future.
The comments were made by Jim Breyer, a billionaire investor who has board seats in notable companies, including Dell, Blackstone, and Walmart, during Fortune’s 2018 Global Tech Forum in Guangzhou, China.
During the final keynote session of the event, Breyer, who is vocal about his bullishness on blockchain technology, said that he continues to be “very interested” in cryptocurrency and DLT-based companies, but further added that “we are close to a nuclear winter right now with cryptocurrency.”
Bitcoin, the largest cryptocurrency by market cap, is currently nearing its recently established 2018 lows of $3,600 and is currently trading down 80% from its late-2017 highs of nearly $20,000. Bitcoin’s poor market performance has led the altcoins markets into a downwards spiral that has sent many of their prices into territories not seen since early-to-mid 2017.
Related Reading: Mike Novogratz Expects Crypto Market Turnaround, Adoption in 2019
Not the First Cryptocurrency Winter 
Breyer importantly added that the current crypto slump isn’t unprecedented, and these type of cyclical pricing patterns are seen in most emerging tech markets, including the artificial intelligence (AI) industry and the internet, which saw a major bubble form and burst in the late 90s and early-2000s
Breyer made a huge portion of his wealth by investing in nascent markets, as he placed a massive, and risky, bet on Facebook in 2005 when the company was in its infancy. Ultimately, this bet was worth billions of dollars and allowed Breyer to form his own investment firm, aptly named Breyer Capital, in 2013.
While speaking about the predictability of boom and bust cycles in nascent industries, Breyer noted that “these cycles keep happening every decade or so,” and further added that this type of seasonality is “inevitable.”
Furthermore, he also said that blockchain technology, which underpins cryptocurrencies, is being investigated and implemented by some of the biggest names in technology, with some of the best and brightest computer science minds devoting their knowledge and skill to advancing the technology.
“So many of the very best computer scientists and deep learning PhD students and post-docs are working on blockchain because they have so much fundamental interest in what blockchain can mean… You don’t want to bet against the best and brightest in the world.”
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BitPay CEO: Fidelity and Bakkt Will Drive Next Major Bitcoin Rally

The chief operating officer of global bitcoin payment service BitPay is not worried about the latest downward moves in the price of the largest cryptocurrency by market capitalization. Sonny Singh expects Bitcoin to surge towards the $15,000-$20,000 area over the next year as institutional incumbents launch blockchain-powered products.
BitPay CEO Says Fidelity, Bakkt, Square, Blackrock, Will Drive Next Bitcoin Bullish Run
Observing the mainstream adoption of Bitcoin across the world as a sign of a great brand recognition, BitPay’s Singh told Bloomberg “we shouldn’t look at the price so much” because what really matters is what happens behind the scenes.
The chief operating officer doesn’t expect any significant price movement in BTC, whether up or down until institutional names come to the market with their own products.
As an example, he mentioned financial services company Fidelity who announced it would be launching a crypto subsidiary focused on custody and trade execution. Sonny Singh also mentioned future products by Bakkt, Square, Blackrock, as potential drivers of an upcoming bullish move in BTC trading.
When asked about J.P. Morgan’s CEO Jamie Dimon and his harsh comments in September 2017 about BTC being a fraud, Singh told Bloomberg’s Emily Chang that J.P. Morgan is likely to enter the crypto space once Fidelity proves there is demand for such products.
Bitcoin has faced significant bearish pressure in recent days, having lost the $6,000 handle in mid-November. The market hasn’t quite found stable ground for now. The price ranged around $4,500 since November 20 but has shed about $250 on Friday. Singh remains confident about the cryptocurrency, but cannot say the same about most altcoins.
“I think there’s a big night a day difference between Bitcoin and everything else. Bitcoin is the hundred pound gorilla. That’s the one that has massive network effect. […] The other ones, I don’t know what is going to happen to them […] I think it is safe to say the ICO market is pretty much dead right now. Maybe a couple of them will survive, I’m not sure, but none of them will survive unless Bitcoin survives first.”
BitPay is on its way to process over a billion dollars this year despite the tumble in the Bitcoin market, which has lost most of its value. The firm had reported similar volumes for the year ending 31 December 2017. This year’s results show that the adoption of Bitcoin as a means of payment continues to increase across the world regardless of recent fears.
As of publishing, Bitcoin failed to hold the $4,000, having eased to the area between $3,600 and $3,900 on Sunday. Market capitalization is now around $67 billion, having dropped below $100 billion in mid-November. The number one cryptocurrency in the market keeps printing new lows as the end of year approaches, drawing the opposite pattern of late 2017.
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Bitcoin Falls to $3.4k as Retailers Panic, are Institutional Investors Accumulating?

Bitcoin on Sunday has established another yearly low after extending its previous downside momentum.
At press time, the BTC/USD pair is trading at 3823 on Coinbase after correcting from its intraday low at 3466. It marks a circa 45% loss just in November while contributing to an overall 82.5% loss since its manipulatively achieved all-time high.
Unable to Recover
Bulls are unable to pull off a substantial recovery period and most of the intraday actions to the upsides look to be coming from retailers executing their shorts. Ideally, the downtrend should extend unless it bottoms out on a specifical support level. But as of now, that support is nowhere to be found.
The depressive price action is visible all across the bitcoin exchange space, which essentially is made up of retail traders. There is a huge possibility that a majority of these traders had entered the market when the price was hovering around $5,800-6,000. The Bulls played the level well for many times in 2o18 creating demand and correcting to levels as high as $11,500. Those who exited their long positions on every higher high from 600-bottom benefitted, while the rest simply held onto their bitcoin assets.

Investors, with bitcoin trading under $4,000:
Retail: "should I sell and buy back lower? should I open a short? should I just give up? is it going to zero? was this whole crypto thing a scam after all?"
Institutions: "please keep selling us cheap bitcoin. thank you."
— Jake Chervinsky (@jchervinsky) November 25, 2018

The bitcoin market has reached a point where traders can either trust the digital currency and hold it closer than ever, speculate on its intraday volatility, or just dump it. In any case, the demand for Bitcoin is dropping against the available supply. The question is: if most of the retail traders are selling their bitcoins, then who could accumulate them after the price bottoms out.
Institutions Long on Bitcoin
When BTC price was stabilizing around $6,000 all this year, analysts speculated that it was there because of miners and institutional investors. According to Fundstrat Global Advisors, the breakeven ROI level for bitcoin miners reached as high as $7,300 this year, meaning that a miner would spend the said amount to earn back crypto rewards of the same value. Reports later predicted that the breakeven level had fallen to $6,000 owing to a dropped bitcoin hash rate.
In another world, institutional investors were calling bulls at the 6000-level. Yale and Harward University’s endowments added bitcoin-enabled funds to their portfolio when the digital currency was trading in the $6,000-6,500 range.
Multinational asset manager Fidelity announced an enterprise-grade bitcoin custody solution for large institutions, verifying that significant monies could enter the space should they have access to adequate risk management and trading tools. Intercontinental Exchange, which operates twelve regulated exchanges and marketplaces in the US, announced Bakkt, a regulated crypto exchange designed for professional investors. Global banking giants Goldman Sachs and Morgan Stanley also geared themselves to launch bitcoin derivates, with the former even going ahead and running a trial.
But, the price crashed anyway, which has led investors to question the narrative that institutional investors are accumulating crypto during the bear market.
It is not exactly bad news for an asset which has a long-term use case as a store-of-value like Gold and a settlement tool for intrabank transactions.
A crash mostly flushes out toxic trading out of a very young crypto market, and somewhat define the right demand-to-supply ratio. As of now, the demand for bitcoin is unknown, but it is considered to be much higher than its all-time high. Institutional investors that have announced their entry into the crypto space this year are speculating on bitcoin for the very same thing. VanEck, for instance, believes that a BTC ETF launch alone could bring a minimum $1 billion to the industry, benefitting the underlying spot markets.
So, the question comes to whether institutional investors are interested in Bitcoin, especially after the crash. Yes, they should be given how the market is offering them the best opportunity to accumulate. While the market does not reflect any aggressive buying action yet, the possibility of seeing one is possible shortly.
Even if they are not, the Bitcoin market has stood up to similar drops in the past and has corrected higher. At the very best, people could speculate on the digital currency to protect themselves against a potential economic crisis, currency inflation, and capital control.
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Bitcoin May Not Bottom Until It Hits $3,000, Will Institutional Interest Help?

The cryptocurrency markets have shown an unprecedented level of weakness amidst its latest drop, with most altcoins trading down 90% or more from their highs, and Bitcoin falling to levels not seen since early 2017.
There is now a consensus amongst industry analysts that Bitcoin has to fall even further in order for it to establish a bottom.
Bitcoin’s plunge to its current price of $4,270 first began in late-October and into early-November when it failed to stabilize above $6,500, which sparked a gradual decline. Bitcoin’s price began to fall sharply on November 13th, when it fell from $6,350 to $5,700, before continuing to fall to its current price.
Following this unprecedented drop, analysts have readjusted their pricing targets and now agree that Bitcoin must drop even further in order for it to establish a bottom.
While speaking on CNBC’s Squawk on the Street, Michael Moro, the trading chief at Genesis Trading and Genesis Capital, said that Bitcoin’s bottom may not be seen until it reaches the $3,000 level.
“You really won’t find [the floor] until you kind of hit the 3K-flat level. It’s really difficult. There are small levels of resistance. We’ve seen the 4,000 level get tested twice now in the last couple of days, but I really don’t think there’s too much in the mid-3s,” he explained.
Moro further added that investors shouldn’t buy the dip unless they are truly committed to the long-term success of Bitcoin, as there could be a significant amount of turbulence between now and a point where it reaches new highs.
Analysts Agree That Bitcoin Has Further Room to Fall
Other analysts in the cryptocurrency industry more or less concur with Moro’s assessment regarding further losses for the cryptocurrency markets, with Naeem Aslam, the chief market analyst at Think Markets U.K., explaining that he believes $3,500 may be the level where BTC bottoms.
“Bitcoin is likely to move even lower after a failed attempt to break above the $4,700 level. The regulatory environment is suffocating the bulls and the bears are going wild. It is likely that the price may touch the level of $3,800 or even $3,500 if the current momentum continues,” Aslam explained.
Recently, Jani Ziedens, an analyst at CrackedMarkets, told MarketWatch that buying pressure currently exists in the $3,500 region, which may cause a short-term bounce if the level is reached.
“Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work. This is not for the faint of heart, but there will be nice rewards for those willing to jump aboard the inevitable bounce,” he said.
Institutional Interest in Bitcoin and Crypto May Help the Markets
Although the persisting bear market has brought investor’s sentiment to yearly lows, increasing institutional interest in the markets could reverse the downward trend and help propel the markets back to all-time-highs.
Bakkt, the ICE-backed cryptocurrency platform that caters to institutional and corporate investors, will be launching their Bitcoin product on January 24th, 2019, which could have an overwhelmingly positive impact on the markets.
Fidelity Investments, one of the world’s largest traditional brokerage firm, will also be launching an institutional-aimed cryptocurrency investment platform that could help bring an influx of institutional funding into the cryptocurrency markets.
While speaking to CNBC, Moro also importantly noted that day-to-day pricing action is mainly noise, and that institutional investors likely don’t care about how Bitcoin ends 2018.
“This is about the fifth or sixth 75 percent-plus drawdown that we’ve seen in the 10-year history of bitcoin. And so if you have that [long-term] lens, I don’t believe institutional investors really ultimately care where the price of bitcoin ends in 2018 simply because they’re looking at things three to five years out,” he said.
Featured image from Shutterstock.
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KPMG Report Lays Out Incredibly Bullish Case for Crypto Assets

A recent report from “Big Four” auditor, KPMG, details the key challenges facing cryptocurrencies, and importantly notes that digital assets are a “big deal.”
The report comes as institutions and corporations are becoming increasingly interested in cryptocurrencies as an investment class.
The KPMG report opens with a section titled “Cryptoassets are a big deal,” explaining that despite the markets still being nascent and small, waves of new entrants and increased public interest have led their parabolic upwards rise over the past several years, and their growth has made them “impossible to ignore.”
In this opening section, the report’s authors note a few key developments in the cryptocurrency industry that have increased their intrinsic values, citing the release of multiple stablecoins backed by major financial institutions, and the entrance of traditional financial service companies into the markets, like Fidelity.
“In 2018, we are seeing a wave of new entrants in the market such as security token platforms, stablecoins, and even established financial services institutions that are launching crypto products and services. Cryptoassets are now impossible to ignore.”
The Case for Crypto
Following KPMG’s introduction to the cryptocurrency markets and industry, they offer readers a bullish look at the future of cryptocurrencies in a section titled “The case for crypto and institutionalization.”
In this section, the authors open with a candid look at the problems that cryptocurrencies are trying to solve, citing issues with traditional means of wealth storage, fundraising, currency transfers, and the non-digital nature of assets in a digital world as the main issues that are solved by cryptocurrencies.
“So, is crypto a solution looking for a problem? No, there are real problems in the global financial services ecosystem that cryptoassets are looking to address. More participation from the broader financial services ecosystem, will help drive trust and scale for the tokenized economy and help the crypto market grow and mature,” KPMG explains.
Furthermore, the auditing giant notes that the future success of cryptocurrencies as both an asset and a tool is based on whether or not it can efficiently reduce the friction and inefficiencies that exist in the current financial ecosystem on a large scale.
“The staying power of many cryptoassets will be defined by their ability to reduce friction and inefficiencies that currently exist within the global economy,” KPMG said, further adding that their volatility is seen as being the main barrier to this, but that the issue of volatility will likely subside as the markets mature.
“While volatility is certainly a problem, it is important to recognize that these assets are still fairly immature and will become less volatile as they mature.”
Related Reading: Survey: Four in 10 Brits Don’t Think Crypto Will Be Used as Cash or Card
Crypto Creating an Open Financial System
The next section in the report, titled “Creating an open financial system and why institutionalization is key,” tackles that issue of how cryptocurrencies can increase the transparency and accessibility of the world’s financial system, and is authored by two Coinbase executives.
In this section, Jeff Horowitz, the chief compliance officer at Coinbase, and Eric Scro, the vice president of finance at Coinbase, explain that in less developed countries, cryptocurrencies act as a gateway to traditional financial services for users in countries like Argentina.
“Let’s take the example of Argentina, where they currently see hyperinflation. A globally accessible, decentralized store of value could have a significantly stabilizing impact on
the country’s economy. Bitcoin could potentially represent such a store of value in the future,” the two men noted.
But in order for cryptocurrencies to increase the global accessibility and transparency of the financial ecosystem, cryptoassets need to be institutionalized, which will in turn increase their liquidity, accessibility, and utility, and for this to happen global regulators need to step in and seriously discuss the role crypto can play in the future financial system.
“Regulatory agencies are also beginning to seriously discuss cryptoassets, which could help drive institutional participation, encouraging the marketplace to think about how engagement with these assets fits into both existing rules and regulations and new frameworks that may be needed for crypto. The focus on crypto innovation must not come at the expense of security, compliance, and consumer protection,” they further explained.
Although increased regulation is critical for the future of cryptocurrencies, it is also cited in the KPMG report as being one of the main factors that is leading to stagnation due to the uncertainty it has caused, along with an increase in fraudulent activity and unclarity due to possible and unclear tax implications associated with the possession and trading of digital assets.
Although the markets are caught in a persisting bear market, with Bitcoin sitting at fresh 2018 lows, it is becoming increasingly clear that cryptocurrencies are becoming a serious asset class that will likely help shape the future of our world’s financial system.
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Why Are Novogratz, Fidelity, And Bakkt Banking On Institutional Crypto Investors?

It goes without saying that Galaxy Digital, a digital asset-centric merchant bank, has been beaten and bruised in recent months. Months ago, to remain coherent with its appearance on the Toronto Stock Exchange, the startup was required to divulge its Q1 balance sheet, which wasn’t pretty, to put it lightly. However, the Galaxy’s top brass have seemingly remain undeterred, setting its scopes on new sectors in crypto to maintain its hegemony.
Novogratz’s Galaxy Digital Sets Its Scopes On Wall Street
Just recently, NewsBTC reported that institutionally-sourced capital has continued to flow into this industry’s coffers en-masse, even in spite of the cryptocurrency market’s retail drought. Alex Kruger, a well-respected market researcher, claimed that $5.9 billion of Wall Street capital directly entered into digital assets, amounting to 2.8% of the aggregate value of all cryptocurrencies.
And, with an exclusive from The Block, it has become apparent that this swelling subset of investors hasn’t gone unnoticed, with Mike Novogratz’s Galaxy Digital recently undergoing a surprising shift to appeal to institutions.
On Friday, Galaxy Digital, releasing a public statement, revealed that two of its biggest names would be leaving the firm, which would coincide with the shutdown of its Vancouver office. The Block corroborated this claim, while also consulting with its insider sources to reveal that an additional three executives had threw in the towel at Galaxy.
While some were rightfully perturbed by this abrupt alteration, what went under the noses of many was the following segment of Galaxy’s announcement:
“The Company is adapting to the regulatory framework and the opportunities it is currently seeing, and therefore repositioning its Advisory business from focusing on small ICO advisory and blockchain consulting to instead serve larger, more institutional clients in the space.”
This, interestingly, lines up with previous reports and the public’s sentiment on the current state of initial coin offerings (ICOs). One such report claimed that a mere 19% of TGE survey respondents were confident about the ICO space.
Likely doing research on the matter themselves, it is likely that as the ICO market collapses and the non-retail cryptosphere booms, Galaxy Digital has thought it advantageous to entice and beckon institutional clients in. Still, while its shift to target institutions was made crystal clear, it remains to be seen what measures the company will enlist to allow itself to flourish.
Crypto’s Holy Grail — Institutional Investors
Galaxy Digital’s ambition to target institutions underscores a rapidly growing theme in this industry, which is the establishment of products, services, and platforms aimed at Wall Street’s hotshots and high net-worth individuals. This underlying shift, as alluded to earlier, has been catalyzed by the growing number of institutions and corporations expressing interest in this space. Moreover, some industry insiders have even become convinced that institutional investors have become crypto’s holy grail, resulting in startups aiming its barrels at Wall Street.
In mid-October, Boston-based Fidelity Investments, one of America’s largest financial bodies, revealed that it would be launching a crypto subsidiary after dabbling in this industry for four years. Fidelity, who dubbed its subsidiary “Fidelity Digital Asset Services,” currently has ambitions to launch top-notch cryptocurrency custody along with trade execution for its 13,000 institutional clients.
Speaking on his excitement for Fidelity’s proposed custody solution, Novogratz told Bloomberg:
“One of the things that will get institutional investors involved in crypto is custody solutions… And Fidelity is coming out with a world-class custody solution that is aimed at institutions, so that’s a box that gets checked and [that is] something that gets taken [an institution’s] list.”
But, Fidelity’s digital asset-focused service is still months away, so for now, all eyes are on Bakkt’s December 12th launch, which will see the first physically-backed Bitcoin (BTC) futures contract go live.
However, despite the aforementioned strides, some remain unconvinced that institutions will be in this nascent industry’s future.
Speaking at Lisbon’s Web Summit 2018, Nikolay Storonsky, CEO of Revolut, explained that interest from “big institutional investors” isn’t present. Then, furthering his narrative, claimed that banks will be doubtful to foray into this space, subsequently adding that these players won’t drive crypto’s next move to the upside.
Jackson Palmer, the founder of Dogecoin, echoed Storonsky’s skepticism regarding institutional involvement, issuing an insightful op-ed piece and accompanying video titled, “Why ‘the institutionalization of cryptocurrency’ is a paradox.” Arguing against the arrival of the aforementioned class of investors, Palmer, who is a prominent software developer at Adobe, claimed that this crypto’s newest startups, such as Bakkt and FDAS, may only undermine this industry’s ethos of pure decentralization, anti-censorship, and anti-government.
Related Reading: Dogecoin Creator: Bakkt, Fidelity, and Bitcoin ETF Are Bad for Cryptocurrency
Regardless, no matter the future of this market’s dynamic, many pundits remain convinced that crypto assets and the decentralized networks they are based upon will succeed in the decades to come.
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