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Fidelity: Bitcoin to Decouple from Other Investment Assets with Its Market Cap Skyrocketing

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The report by Fidelity depicts that Bitcoin has major fundamentals that put it further from health and economic adverse effects.

Fidelity Digital Assets, a firm focused on researching institutional asset investment, has released a report on the role of Bitcoin as an uncorrelated alternative investment that may provide portfolio optimization benefits.

Fidelity Report on Bitcoin

According to the report, which is the second report in its Bitcoin Investment Thesis series by @riabhutoria, there is a huge potential in the crypto industry especially with Bitcoin for institutional investors. The report by Fidelity noted that Bitcoin has managed to decouple from other investment assets like gold, stocks and other precious metals.

“Bitcoin’s correlation to other assets from January 2015 to September 2020 (displayed in the table below) is an average of 0.11, indicating there is almost no relationship between the returns of bitcoin and other assets,” the report indicated.

Bitcoin has mostly gained institutional investors confidence during the height of the pandemic when the stock market and most global economies came to their knees. Bitcoin together with other cryptocurrencies on the other hand were able to stabilize despite the increased volatility and have managed to climb significantly year to date.

The report by Fidelity depicts that Bitcoin has major fundamentals that put it further from health and economic adverse effects. “Bitcoin has distinct underlying fundamentals that are not affected by the health and economic situation created by COVID-19,” the report stated.

The report also indicated that Bitcoin has gained favor among investors as its success is not predicted on a single purpose. Whereby, the asset can be used as a store of value and a means of exchange.

On the Flipside

Indeed, Bitcoin and other digital assets whose inflation rate is known and fixed are set to largely benefit from the increased global monetary stimulus meant to kickstart the global economy from the coronavirus pandemic.

As governments print more money to solve the economic hardships, Bitcoin and other cryptocurrencies remain under controlled measures. Hereby, Bitcoin’s value is poised to skyrocket in the near future as more institutional investors flock into the industry.

According to metrics provided by CoinGecko, Bitcoin was trading around $11,404.02, having added approximately 37.6 in the past one year. Additionally, the asset was up 10.4%, 5.2% and 7.5% in the past 30 days, two weeks and seven days respectively through Tuesday.

Notably, Bitcoin had a market capitalization of around $211,166,894,135 with its daily trading volume at $19,333,804,475. Having survived a significant portion of the pandemic without failure, institutional investors feel confident in raising their portfolio stake in Bitcoin.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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DeFi

Ripple Plans to Relocate to Japan Amid Unfavorable Regulations in the U.S.

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Ripple is planning a Japan move due to poor U.S. regulations. Other considered locations include the UK, UAE, Singapore, and Switzerland. 

Blockchain payment services company Ripple Labs Inc may relocate to Japan from the U.S. due to a lack of regulatory clarity. Apart from Japan, the company has also shortlisted some other countries for relocation. Notably, Japan is the most likely country that Ripple may move to if the blockchain firm leaves the U.S.

Ripple Eyes Japan as Potential Destination

According to a Bloomberg report, the relocation plan was revealed by Ripple CEO Brad Garlinghouse. The CEO also mentioned three other potential destinations for the blockchain firm. The other likely destinations include Switzerland, the United Arab Emirates, and the United Kingdom.

The CEO explained the reason for choosing the shortlisted countries:

“The common denominator between all of them is that their governments have created a clarity about how they would regulate different digital assets, different cryptocurrencies.”

Garlinghouse also referred to the lack of regulatory clarity on cryptocurrencies in the U.S. He said that the U.S. government is yet to decide whether digital assets are commodities, currencies, properties, or securities.

Over time, Ripple has been in a legal battle with investors. The investors claimed that Ripple illegally issued XRP as a security.

Speaking further in another interview with Bloomberg Television, Garlinghouse expressed his desire for Ripple to remain in the US but with regulatory clarity. As noted by the CEO, regulatory clarity in the US will encourage the blockchain firm to invest and grow its business in the country.

Ripple’s Destination Preference

In addition, Garlinghouse revealed the reason behind shortlisting Japan as the most likely country for relocation. He said that the country has created “an environment for a very healthy market to develop.”

In 2017, Japan acknowledged cryptocurrency, with the country introducing a registration system for digital assets. At that time, 11 cryptocurrency exchanges initially registered and got approval from the Financial Services Agency (FSA).

Furthermore, Ripple also has a relationship with the Japanese company SBI Holdings. Reinforcing the consideration to move Ripple to Japan, Garlinghouse added:

“Japan is one of our fastest-growing markets, in part because we have key partners like SBI. I have spoken to the SBI team about the fact we are looking at.”

According to a survey by Bitmax, Ripple crypto-asset XRP is getting more recognition in Japan. As noted in a tweet by Bitmax, Japanese investors prefer XRP to Ethereum.

On the 23rd of October, CNBC reported that Ripple is also eyeing London as a new location for its blockchain firm. Unlike the U.S., the UK Financial Conduct Authority (FCA) considers XRP a currency and not a security. With the FCA clarifying that XRP is not a security, Garlinghouse said it would be “advantageous to Ripple.” He said the FCA’s declaration means RIpple is safe to operate in the UK.

Before now, Ripple executive chairman Chris Larsen had said that the firm may move its headquarters outside the U.S. Larsen revealed the relocation to Fortune in a virtual interview. At that time, the chairman mentioned Singapore and the UK as new possible destinations for Ripple.

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.





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Bitcoin Price Surged to 16-Month High, Call for Increased Adoption?

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Usually, when Bitcoin is making impressive moves, many who has FOMO may take a dive into storing up on the coin, while this may complement the recent moves, its impacts may not be long-lasting.

Bitcoin (BTC) price has a surge that raises its price to a 16-month high following the announcement that PayPal Holdings Inc (NASDAQ: PYPL) has launched its long-anticipated crypto payment service that will aid merchants to receive payments for goods and services in Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).

Bitcoin price has seen a series of fluctuations this year with the coin dipping down to $5,084.20 as of March 17, 2020, when the entire crypto market experienced a crash. Today, the coin is has traded at $13,184.39 dollars briefly before retracing to $12,760.51 at pixel time (09:12 AM UTC) which it is currently trading at according to CoinMarketCap. Accordingly, the market capitalization of the coin has soared from the March lows of $92,908,698,293 to the $236,362,148,447 it is today.

As expected, key Bitcoin enthusiasts or figures have expressed optimism for an increased rally in the price of Bitcoin. Chief amongst these is Tyler Winklevoss who noted that the influence of PayPal will stir a “flippening” as Bitcoin and crypto will likely take over the role of fiat currencies. He tweeted:

“PayPal is an important bridge between the mainland and the island of crypto. The diaspora from legacy finance is happening and this is the kind of infrastructure that will help make that happen. Soon there will b a flippening and crypto will b the mainland & fiat the island.”

He also made a new case that Bitcoin may be on its way to $14k saying, “And we’ve breached 13k #Bitcoin. Here we go 14k!” 

Bitcoin Price Surge Has Strong Technical Backing

The upward surge in the price of Bitcoin has a strong backing when analyzed using technical analysis provided by TradingView. On the BTCUSD chart, the Relative Strength Index is at 84.07 as at the time of writing showing the intense buying action of the market bulls. A look at the Bollinger Bands also lends credence to the upward momentum as the BTC price movement as shown by the candlesticks is wrapping the upper bands, a sign for a massive bullish momentum.

BTCUSD Crypto Chart by TradingView.

Bitcoin price has initially broken past the $12,800 support line when it shot up above $13,000 earlier and should if the technicals are anything to go by, this may turn out to be the new support for a while.

Increased Adoption Imminent?

Usually, when Bitcoin is making impressive moves of this nature, many who has Fears of Missing Out (FOMO) may take a dive into storing up on the coin, while this may complement the recent moves, its impacts may not be long-lasting.

As noted earlier the influence of PayPal may drive increased adoption among merchants and users may switch to the supported coins as a means to try new intriguing alternatives. This adoption by merchants will complement the bet most institutional investors are already placing on Bitcoin.

For this article, we’ve used BTCUSD chart by TradingView.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





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DeFi

PayPal Partners with Paxos to Enable Crypto Services

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In the future, PayPal plans to work with global central banks to further tap on digital assets’ capabilities.

American payment company PayPal Holdings Inc (NASDAQ: PYPL) has partnered with Paxos Trust Company to provide crypto services. Notably, PayPal has also been granted a conditional Bitlicense by the New York State Department of Financial Services (NYDFS).

The move by the giant payment processing company to enter the crypto market is viewed as a huge disruption in the entire financial market.

Hereby, PayPal will allow its users to purchase, sell, and hold digital assets in the coming weeks. However, Venmo users will have to wait until next year when the company will provide crypto services. In the press release, PayPal noted that the move to digital assets has been accelerated by the ongoing coronavirus pandemic.

In addition to providing buy, sell and hold services, PayPal plans to enable more crypto utilities in its platform specifically by making it available as a funding source for purchases at its 26 million merchants worldwide.

PayPal and Crypto Market

PayPal seeks to capture the growing cryptocurrency market and use its advanced technology to improve the underlying blockchain technology.

“The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly,” said Dan Schulman, president and CEO PayPal.

Schulman further noted that the company’s global reach, digital payment expertise and up to date security system will aid in making digital assets easily accessible and more interoperable with global currencies.

In future, PayPal plans to work with global central banks to further tap on digital assets capabilities. To start with, PayPal customers in the United States can purchase, sell, and hold Bitcoin, Ethereum, Bitcoin Cash and Litecoin. This will be made possible through the PayPal digital wallet.

As a precautionary measure, the company will be involved in educating customers on the risks involved with the cryptocurrencies and also the greater scope of the crypto market.

Notably, PayPal announced that there are no service fees when buying or selling cryptocurrency through December 31, 2020. In addition, the company clarified that there are no fees for holding cryptocurrency in a PayPal account.

PayPal has been working with its internal team, PayPal Ventures that previously invested in TRM labs and also Cambridge Blockchain to develop a distributed ledger in order to improve its financial services.

Crypto adoption will move to the next level as PayPal has over 300 million active customers in approximately 200 global markets. At the time of writing, PayPal shares were up over 4.90% trading around $211.16. The company has a market capitalization of around $236.96 billion and 1.17 billion outstanding shares.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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