A lot of action in the blockchain world
After yesterday’s “Turnaround Tuesday” saw the traditional markets recover from the strains of the past few weeks, investors are once again hopeful that the economy can stabilize in the foreseeable future. The multi-billion dollar economic stimulus package from the U.S. has played a significant role in this. Meanwhile, Bitcoin seems to be distancing itself further and further from the stock markets. The many reports imply that the crypto space is working at full speed. We take a look at current events.
Bitcoin soon to 100000 USD?
Changpeng Zhao, for his part CEO of the leading crypto exchange Binance, considers a near-term BTC price of 100000 USD to be quite realistic. In a tweet CZ expressed itself as follows: “As we get used to talking about trillions: A modest market cap of $2 trillion for the #bitcoin, will push 1 BTC to $100,000. Now, that’s not such a hard figure to imagine, is it? Since most of the BTC’s are not for sale (HODLers), we only need to buy a small portion of those 2 t [trillion] dollars to reach it.” The Binance CEO sees the gigantic economic stimulus package as a possible initial spark for a six-digit Bitcoin price. Only a small portion would have to flow into the crypto-market to fuel the price accordingly.
Binance cooperates with Brave
Only yesterday we received news of an immediate cooperation between Binance and Brave-Software. Brave users can now buy and sell crypto currencies without leaving the Brave browser. The open source browser is part of the BAT ecosystem and represents a new way of marketing digital advertising. The triangular relationship between the user, the advertisers and the developers of a website is to be made more transparent and powerful by the decentralized system. To date, more than 12 million users are already taking advantage of the browser.
Bitcoin consolidates on Wednesday
The Bitcoin price stabilized on Wednesday at a rate of 6651 USD. On the one hand, one could interpret this sideways movement as a breather after the turbulent events of the past few days, on the other hand, many experts are suspecting a deceptive “calm before the storm”. Volatility remains at a high level and the global economy is staggering through a tangible crisis. Best conditions for a chaotic market…
Can Bitcoin isolate itself?
From a bullish perspective, the “digital gold” was able to make an important statement this week. Bitcoin survived the poor start to the week in the traditional markets relatively unscathed and it was not long before the first reports proclaimed the BTC as a crisis-stable value store once again. In fact, the No.1 crypto currency was able to isolate itself from the stock markets in several crises (e.g. the USA-Iran conflict). However, the coronavirus pandemic is a different “calibre”. No one knows how long the global economy will suffer from the serious consequences. In addition, there are no valid reference values, as Bitcoin simply did not exist during the financial crisis in 2008.
Market capitalization too low
With a total market capitalization of approximately USD 180 billion, crypto-space is still a marginal market compared to the traditional foreign exchange markets. Due to the high volatility, the market is unpredictable at this time. FOMO (fear of missing out) and FUD (fear, uncertainty and doubt) act as a kind of lever on the current up- and downtrends. This is quite tempting for investors with an affinity for risk, but for insecure investors the complete opposite is the case.