by Samuel Mbaki | Jul 6, 2023 | Cryptocurrencies
Key Points
- Binance CEO Changpeng Zhao believes that the next bull run will begin in 2025
- His claims come at a time when Bitcoin price hit its highest point in 2023
Binance CEO Changpeng Zhao delivered his forecast for the market performance during a Twitter Space on July 5, explaining that the next crypto bull run will be seen in 2025.
Crypto’s 4-year cycles to repeat itself: Binance CEO Changpeng Zhao
Historical bitcoin bull run trigger, halving cycle is not in line with the global financial markets outlook this time. It is set to be carried out 296 days from now. However, the global financial outlook could be more friendly as most countries are dealing with rising living costs.
In a July 5 Twitter space, Binance CEO Changpeng Zhao covered BlackRock’s intention to join the crypto market, explaining that it would be a remarkable turnaround event for the crypto market. He stood with the historical data of bitcoin markets moving around in four-year market cycles, claiming that it will most likely be that since the last bitcoin bull run was in 2021, the next one will be in 2025, four years later.
“The year after Bitcoin halving is usually the bull year.“ he said
However, the next halving happens in 2024, meaning the markets would rise from then, climaxing in 2025 if all other factors remain constant. Remember that nothing is promised, and the market prospects could change. Keep watching Fintech Express for more updates on this and other fintech-related developments.
by Guest Post | Jul 4, 2023 | Regulation
Opinion
Crypto is a hedge against inflation and economic downturns. As central banks around the world continue to print money, you should be concerned about the long-term value of fiat currencies. Additionally, blockchain technology has proven to be a boon in terms of security and efficiency, which is why many financial institutions are exploring ways to incorporate it into their operations.
Overall, as more institutions begin to invest in crypto assets and blockchain technology, this will likely lead to increased adoption and mainstream acceptance of cryptocurrencies.
Institutional interest in Bitcoin
Institutional interest in Bitcoin has grown significantly in recent years. Bitcoin, as the first and most well-known cryptocurrency, has attracted attention from various institutional players, including banks, hedge funds, asset management firms, and even some government entities.
Adoption by Financial institutions
Several traditional financial institutions have recognized the potential of Bitcoin and other cryptocurrencies. Some prominent examples include JPMorgan Chase, Goldman Sachs, and Fidelity Investments, which have started offering services or investing in the crypto space. These institutions’ involvement has helped legitimize Bitcoin and increase its mainstream acceptance.
Bitcoin investment funds
Institutional investors have launched dedicated funds specifically for investing in cryptocurrencies, including Bitcoin. These funds provide an opportunity for institutional investors to gain exposure to Bitcoin’s potential without directly holding the cryptocurrency themselves. This trend has opened up new avenues for institutional capital to flow into the Bitcoin market.
Bitcoin futures and derivatives
The introduction of Bitcoin futures contracts on regulated exchanges, such as the Chicago Mercantile Exchange (CME), has allowed institutional investors to gain exposure to Bitcoin without actually owning the underlying asset. Additionally, the development of Bitcoin options and other derivatives has provided institutions with more sophisticated investment instruments to manage risk and enhance trading strategies.
Institutional custody Solutions
Custody services tailored for institutional investors have emerged to address their specific needs in securely storing and managing Bitcoin holdings. These services offer robust security measures and institutional-grade infrastructure to mitigate the risks associated with holding cryptocurrencies. Established financial institutions and specialized crypto custodians now provide such services, attracting institutional investors looking for secure storage solutions.
Regulatory developments
Increased regulatory clarity and oversight in some jurisdictions have contributed to institutional interest in Bitcoin. Regulatory frameworks provide a level of certainty and investor protection that institutions often seek before committing significant capital. As regulators establish guidelines and regulations around cryptocurrencies, institutional investors can navigate the market with more confidence.
Inflation hedge and diversification
Bitcoin’s decentralized nature and limited supply make it an attractive asset for institutions seeking protection against inflation and diversification within their portfolios. As traditional financial markets face uncertainties, institutional investors view Bitcoin as a potential store of value and a hedge against economic instability.
It’s important to note that institutional interest in Bitcoin can be influenced by market conditions, regulatory changes, and investor sentiment. While institutional involvement has grown, it does not imply unanimous support or constant investment. The level of institutional interest in Bitcoin may vary over time as market dynamics evolve.
Blockchain technology paves the way for institutional transformation
Blockchain’s decentralized and secure nature eliminates the need for intermediaries and provides a transparent ledger for transactions. As a result, big corporations and governments have explored blockchain technology’s potential in transforming the way they operate. One of the main reasons for this is its potential to streamline financial processes and reduce costs.
Blockchain can be used for various applications such as cross-border payments, trade finance, and supply chain management, making it attractive to institutions looking to improve efficiency. Moreover, blockchain technology’s robust security features make it an appealing option for institutions seeking to protect their assets from cyber threats.
With high-profile hacks on traditional financial institutions becoming more frequent, blockchain’s immutability and encryption provide an added layer of protection. Blockchain technology paves the way for institutional interest in crypto by offering increased efficiency and security.
Digital assets gain credibility among traditional investors
An increasing number of well-established financial institutions–most recently, BlackRock and Fidelity–are dipping their toes into the crypto market. These institutions include major banks, asset managers, and hedge funds that have started offering cryptocurrency-related products and services to their clients. Additionally, regulatory frameworks that provide clarity on how digital assets should be treated by traditional financial systems–especially MiCA out of Europe–have helped boost investor confidence in cryptocurrencies.
COVID-19 lockdowns also played a role in accelerating institutional adoption as investors seek alternative investment opportunities amid economic uncertainties. As a result, more institutional players are exploring ways to invest in digital assets such as Bitcoin and Ethereum to diversify their portfolios and potentially benefit from the potential upside returns offered by these new asset classes.
Increasing institutional interest signals a promising future for crypto
The increasing institutional interest in cryptocurrencies is a clear indication that the crypto market is heading towards a promising future. Institutional investors, such as banks, hedge funds, and pension funds, have traditionally been skeptical of digital assets due to their volatility and lack of regulation.
The recent ETF applications by BlackRock and Fidelity, as well as the ensuing surge in Bitcoin’s value, has caught Wall Street’s attention. With Bitcoin halving coming up in 2024, it appears to be a perfect storm for institutional investors FOMO into crypto, seeking high returns and diversification in their investment portfolios.
Kadan Stadelmann
Kadan Stadelmann is a blockchain developer, operations security expert and Komodo Platform’s chief technology officer. His experience ranges from working in operations security in the government sector and launching technology startups to application development and cryptography. Kadan started his journey into blockchain technology in 2011 and joined the Komodo team in 2016.
by admin | Jun 28, 2023 | Cryptocurrencies
Key Points
- MicroStrategy boss Michael Saylor has announced a new acquisition of Bitcoins by the company.
- The company now holds the most coins for an institution, 152,333, after acquiring 12,333 new coins at an average price of $28,136.
MicroStrategy has pushed its limits in Bitcoin acquisition after buying $347M worth of Bitcoins at an average cost of $28,136 per coin. The institution now holds 152,333 coins worth around $4.52 billion, acquired at an average cost of $29,668 per Bitcoin.
MicroStrategy fills its Bitcoin bags yet again, is institutional demand spiking?
Michael Saylor is an outspoken Bitcoin Maximalist who has been pushing people to adopt the coin. He has been speaking on social media and live events about how the coin could support innovation quoting its ever-growing use cases and how it could help deal with most of the digital problems that have been an issue in the world.
He recently stepped down from being the CEO of MicroStrategy, a move that many said could result from his multi-billion Bitcoin acquisition project. However, he came out to debunk the theory saying that he stepped down to have time to focus more on the investment and monitor it more closely.
Now, the company has added $347 million worth of bitcoins taking the whole sum to over $4 billion. The investment is already in profits as it was acquired at an average price of $29,668 per coin, while the coin is trading at $30,275. Bitcoin is expected to keep rising as institutional demand is set to increase.
Blackrock, Fidelity, and other Traditional Finance institutions are swooping in to introduce Bitcoin ETFs, which will most likely kickstart a soft mainstream adoption of the coin. As a result, the price of the coins is set to spike over the long term. However, market conditions could change as nothing is promised.
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
by admin | Jun 22, 2023 | Finance
Key Points
- Gemini’s Cameron Winklevoss believes that the race by traditional finance institutions to file for BTC ETF marks a great turnaround for the industry.
- He tweeted on June 21 that the window to front-run institutional demand is closing quickly.
Cameron Winklevoss, a Gemini co-founder, believes that the great accumulation for BTC is here with different TradFi institutions racing to buy in. His comments come when BlackRock, the world’s largest investment manager, filed for an ETF, prompting its competitors to follow suit.
ETF filing race by TradFi institutions convinces Cameron Winklevoss that BTC will rally
Analysts now believe that more than ever, more institutional demand for prominent coins like Bitcoin is coming to the crypto space. It follows recent news that BlackRock had filed for a spot in Bitcoin ETF.
As a result, its competitors like Valkyrie, Wisdom Tree, and Fidelity have filed for similar assets with the US SEC. This has driven the demand behind Bitcoin momentarily, with it reclaiming the 50% market dominance. The coin has surged 19% to $30,240 since the BlackRock news came to light on June 15.
Cameron Winklevoss, a Gemini co-founder and a prominent loud voice in the crypto industry, has commented on this matter, saying that “The Great Accumulation” of Bitcoin has begun. He suggested that buying Bitcoin before the ETFs hit the markets would be a great idea akin to a pre-initial public offering purchase of Bitcoin.
He added that if Bitcoin was the best-performing asset of the past decade, it would most likely be the best-performing asset for the coming decade. Others have backed his claims, including MicroStrategy Executive Chairman Michael Saylor, who suggests that retail investors may soon be pushed aside by increasing institutional demand.
However, some analysts believe that more buying pressure will be there than selling pressure, as most investors wouldn’t want to sell their coins to Wall Street. Bitcoin investor Anthony Pompliano took to Twitter to address the matter, saying he expects a tug-of-war between retail investors and Wall Street:
“We have institutions and individuals scrambling to try to get their share of the 21 million Bitcoin that will ever be in existence. The retail investor for 15 years now has a head start and has accumulated all the Bitcoin that’s been mined and put into circulation, but 68% of that hasn’t moved in a year.”
He added that he expects Bitcoin to be highly illiquid once Wall Street hits the market as investors keep their coins away from institutional investors. Keep watching Fintech Express for updates on crypto adoption and other Fintech-related developments.
by Samuel Mbaki | Jun 1, 2023 | Banking, Finance
Key Points
- Eurozone inflation has fallen faster than anticipated a month ago, easing living costs.
- U.K. house prices are falling at the fastest annual rates since 2009
- Former U.S. Treasury Secretary Larry Summers says Brexit was a “historic economic error” that has hurt the U.K. economy, driving up inflation.
Eurozone inflation falls further than anticipated easing pressure on the U.K. economy
The inflation rates in the Eurozone have fallen faster in May than previously anticipated resulting in lower energy prices and a drop in core CPI (Consumer Price Index.) The zone’s CPI slowed to 6.1% in May YoY (Year over Year) vs. the expected 6.3%, a significant drop from the 7.0% rise recorded in April.
The Core CPI also dipped to 5.3% in May vs. 5.5%, which was expected, a significant drop from the 5.6% recorded in April.
The fall in the inflation rates takes the annual inflation closer to the European Central Bank’s (ECB) target of 2%. However, the prices are still rising three times fast as the ECB is aiming for. The inflation rates in commodities are as follows:
- Food, alcohola& tobacco +12.5%
- Other goods +5.8%
- Services +5.0%
- Energy -1.7%
European stock markets are rising from their lowest level in two months
The FTSE 10o index has gained 48 points/ 0.65% to 7494, following news that the U.S. House of Representatives had passed the Fiscal Responsibility Act n Wednesday. Investors are taking this news well, sending the U.K. stock market into greener zones, last recorded two months ago.
U.K. house prices fall at the fastest pace since 2009 while mortgage approvals fall
The prices of houses in the U.K. are falling fast at an annual rate last seen in 2009. The prices of houses decreased by 3.4% in the past 12 months ending May 2023, the biggest drop since July 2009, when an annual fall of prices by 6.2% was recorded.
A report from Nationwide indicates that house prices had remained flat over the past month after seasonal effects had been considered. Now they stand at an average price of £260,736 which remains 4% below the peak last seen in August 2022.
Though the prices are falling, Robert Gardner, the Nationwide chief economist, has warned that headwinds to the housing market will most probably strengthen over the coming months. He says investors should prepare to acquire mortgage deals for fixed rates above 5% as the government may keep increasing interest rates.
“If maintained, this is likely to exert renewed upward pressure on mortgage rates, which had been trending down after spiking in the wake of the mini-budget in September last year.”
The housing market is still unstable in the U.K. economy as the number of mortgage approvals has fallen as buyers return. A report from the Bank of England shows that there were 48,690 new mortgages signed off in April, down from 51,488 recorded in March.
The new mortgage figures are also 26.0% lower than the average numbers recorded between 2018 and 2019.
Brexit was a catastrophic economic mistake; Larry Summers
In an interview with Radio 4, Larry Summer, a former U.S. Treasury Secretary, said that Brexit was a historic economic error that pushed up inflation and will go down as the event that reduced the competitiveness of the U.K. economy globally.
When asked why inflation is haunting the U.K. in a significantly bigger way than the U.S., Summers said:
“I think Brexit will be remembered as a historic economic error that reduced the competitiveness of the U.K. economy, put downward pressure on the pound and upwards pressure on prices, limited imports of goods, and limited in some ways the labor supply. All of which contributed to higher inflation.”
Reports have found that Brexit food trade barriers have cost the U.K. economy 7 billion Euros. As such, it has made the inflation rates more menacing, pushing citizens to the corner. When asked about the possibility of a recession, Summers said he would be surprised if two more years passed before the U.K. entered a recession.
Keep watching Fintech Express for updates on finance, banking, and other FinTech-related developments.
