BPSAA (Blockchain Privacy, Security Adoption Alliance) goes live assembling crypto gurus from multiple projects for the good of cryptomanity. BPSAA aims to bring collaboration through BPSAA verified projects in order to enhance Privacy, Security, Adoption for users in the crypto realm.
Projects in the Alliance:
Pirate Chain (Most Anonymous Crypto) https://bpsaa.vision/pirate-chain
Turtle Network (Interoperable DEX w/fiat) https://bpsaa.vision/turtlenetwork
Ether-1 (Decentralized Storage) https://bpsaa.vision/ether1
Sentinal (Decentralized VPN) https://bpsaa.vision/sentinel
Gold ‘breaking down’ against Bitcoin is highly bullish for BTC — Analyst
Earlier this week, Bitcoin (BTC) advocate and Real Vision CEO Raoul Pal said gold is breaking down against BTC. If the dominant cryptocurrency continues to gain momentum against BTC, it could strengthen its perception as a store of value.
In the past month, the price of Bitcoin gained 30.36% against the U.S. dollar, from $10,136 to $13,217. In the same period, gold has gained about 2.25%, from $1,863 to $1,903.
Why is Bitcoin outperforming gold and stocks?
In the past two weeks, while the price of Bitcoin rallied strongly, both gold and the U.S. stock market steadily recovered.
The confluence of three major factors likely contributed to the upsurge of Bitcoin since early October.
First, PayPal’s crypto integration announcement buoyed market sentiment. Second, the institutional demand for BTC has continuously increased following Square, MicroStrategy, and Stone Ridge’s investment. Third, Bitcoin’s favorable high time frame log charts have spurred significant optimism.
Particularly, after its breakout above $12,000, the volume of Bitcoin across the spot, institutional, and derivatives market spiked. Consequently, the digital asset began to outperform most risk-on and risk-off assets. Pal said:
“Gold is breaking down versus bitcoin, as expected cc: @michael_saylor Everyone take note. The next thing I’m expecting is the correlations between BTC and the dollar and BTC vs equities to break down too… let’s see. #Bitcoin.”
As Cointelegraph reported, when Bitcoin surged past the $12,000 resistance level, it marked a clean breakout on the weekly chart. Traders have started to pinpoint the weekly and monthly log charts to predict a new all-time high.
The strong technical momentum of Bitcoin and its decoupling from gold and stocks are also possibly furthering the intensity of BTC’s current rally.
In the short term, cryptocurrency technical analysts say that Bitcoin faces an identity crisis, but fortunately in a good way.
Cantering Clark, a Bitcoin and derivatives trader, said gold is under pressure when the dollar goes up. The analyst said that for BTC, due to uncertainty on whether it is a risk-on or a risk-off asset, it could see a lower correlation with the dollar. He wrote:
“Gold’s adversary is the dollar, if the $DXY heads north, Gold is immediately under pressure. $BTC has the benefit of having the identity crisis still, where some see it as a SOV, and some see it has a higher beta play on equities.”
Prominent investors’ confidence is the cherry on top
As the momentum of Bitcoin continues to gain against gold and stocks, prominent billionaire investors are voicing their support for BTC.
Paul Tudor Jones, the Wall Street billionaire investor who purchased Bitcoin in May, reaffirmed his positive stance around Bitcoin.
Hasu, a researcher who writes for the top cryptocurrency options exchange Deribit, quoted Tudor Jones saying:
“I’ve never seen a store of value where you also have [such] great intellectual capital behind it. […] When you short the bond market as an inflation hedge you’re really betting on the fallacy of mankind rather than its ingenuity.”
Analyst Who Called Ethereum’s Parabolic Breakout Says XRP is Next
XRP’s price action has been rather lackluster as of late, with buyers and sellers remaining deadlocked as they struggle to gain control of the cryptocurrency’s near-term trend.
This lack of momentum isn’t new for XRP, as the token has been stuck within a macro consolidation phase throughout the past few years against both its USD and BTC trading pairs.
This has caused its community to dry up, with the so-called “XRP Army” largely evaporating as they move on to other projects.
It is important to note that XRP still has growth potential, as many traders still view it as a short-term vehicle to provide gains due to its tendency to see parabolic moves.
One analyst is now pointing to some striking similarities between Ethereum’s price action before its recent parabolic move and XRP’s current price action.
This insinuates that it may see some serious upside that leads it up towards its resistance in the upper-$0.20 region.
XRP Continues Consolidating as Analysts Eye Upside
At the time of writing, XRP is trading up just under 1% at its current price of $0.255.
It has been ranging between lows of $0.24 and highs of $0.26 throughout the past week, with buyers and sellers struggling to gain any momentum.
If it fails to break above the upper boundary of this trading range, it may continue consolidating or drift back down towards its bedrock support within the lower-$0.20 region.
The buying pressure here is always decent and should remain steady so long as the wider market remains bullish.
Unless the XRP token begins gaining some greater utility via Ripple partnerships, any price pumps in the near-term will likely be fleeting due to only being backed by short-term traders.
Analyst Claims XRP is Setting Up for a Big Push Higher
While sharing his thoughts on the embattled cryptocurrency’s current outlook, one analyst explained that he expects it to see some short-term upside and follow in Ethereum’s footsteps.
“Basically xrp looks exactly like eth did before it broke out yesterday… easy scalp long imo,” he said while pointing to the similarities seen between the two assets’ charts.
Image Courtesy of @SmartContracter. ETHUSD and XRPUSD Charts via TradingView.
XRP’s recent inability to follow the market has been a somewhat grim sign and could indicate that further underperformance is imminent.
That being said, there’s a strong possibility that it will see a short-term upswing towards $0.30 in the days ahead.
Featured image from Unsplash. Charts via TradingView.
The Digital Age Is Here: Crypto And Fintech Companies Soar, While Bank Stocks Tank
2020 has been so far a challenging year. Issues such as the Australian wildfires and the global COVID-19 pandemic have harmed the planet and its inhabitants. The financial world has also suffered, especially during the first several months.
The effects are evident within different sectors of the financial industry. While some have felt adverse consequences during these uncertain times, others have thrived and reached for the stars.
BNN Bloomberg’s senior anchor, Jon Erlichman, recently published some stocks’ price performances for banks and fintech companies and the two largest cryptocurrencies – Ethereum and Bitcoin.
CryptoPotato exemplified it with the graph below. It concludes that innovative fintech companies such as Square and PayPal have massively outperformed the old dogs – the banking sector. Bitcoin has also experienced a notable YTD price surge, while Ethereum has trumped them all with a substantial triple-digit surge.
YTD: Bank Stocks Haven’t Enjoyed 2020
The stocks of some of the world’s largest banks were on a roll since the previous financial crisis over a decade ago. Bank of America shares had increased approximately ten-fold since 2009 to their highs in February 2020 of about $35.
In the same period, Citigroup stocks went from $15 to $80, JP Morgan Chase & Co (JPM) from $20 to $140, and Wells Fargo (WFC) surged from $11 to above $50.
However, the COVID-19-prompted crisis took the world by storm this year. March alone saw price slumps not seen in decades. Most of the aforementioned bank stocks lost about 50% of its value in merely days.
Although their shares have picked up from the March bottoms, the graph above demonstrates that their year-to-date performance is still in the red. JPM is down by 30%, Bank of America by 33%, Citigroup by 46%, and Wells Fargo has it the worst – 58% YTD dump.
Other financial service corporations, such as Western Union (-17%) and American Express (-19%), have also lost significant chunks of value since the start of the year.
It’s worth noting that one of the most old-school investors and biggest supporters of the banking sector, Warren Buffet, sold the majority of his bank stocks this year.
Financial Companies In The Green
Although the crisis reached all companies on the graph above, some have not only recovered but actually increased in the following months. MasterCard stocks plummeted from $345 to $203, while Visa’s nosedive started from $213 and ended at $135. Nevertheless, both companies’ shares are slightly in the green on a year-to-date basis.
Two other financial service companies, but primarily focusing on online endeavors, have marked substantially more impressive YTD results.
PayPal’s stocks (PYPL) started 2020 at $110 and have increased by 94% since then, despite the mid-March slump to $85. Jack Dorsey’s Square’s yearly gains have even seen triple-digit percentages. The 55% dump in March was only a brief obstacle in SQ’s way towards a 178% surge since January 2020.
Interestingly, both firms have embarked on cryptocurrency-related activities in recent months. Square purchased $50 million worth of Bitcoin, while PayPal announced that it will enable its US-based customers to buy, sell, and store several digital assets.
What About Bitcoin And Ethereum?
The cryptocurrency market was not exempt from the mid-March madness. Some alternative coins lost up to 80% of value in hours. The two most well-known representatives, namely Bitcoin and Ethereum, dipped to $3,700 and below $100, respectively.
Percentage-wise, those developments equaled about 50% of losses. However, the rest of the year has been significantly more positive for both. Bitcoin, regarded by some as a safe haven tool with similarities to gold, has overcome its massive slump.
Whether it’s the growing interest from institutional investors, the third halving, or giant companies buying BTC for its store of value characteristics, Bitcoin has surged by more than 80% YTD. Just a few days ago, the primary cryptocurrency charted a new yearly high of over $13,000.
Ethereum, on the other hand, has been widely utilized this year in the ongoing decentralized finance trend. Its blockchain operates as the underlying technology behind most DeFi projects.
This increased utilization led to some unfavorable consequences such as slow transactions and high fees and highlighted a few of the network’s weak points. Price-wise, though, none of that matter as ETH has been on a roll during most of the year, especially since the summer.
As a result, the second-largest cryptocurrency has become the best-performing asset from the ones mentioned above, with an increase of over 200%.
What Could All Of This Mean?
The world is undoubtedly going through changes, primarily prompted by the COVID-19 reality. Social distancing and people working from home have driven society into becoming even more digitally-focused.
The financial world won’t be left behind. People seek more online ventures, and digitally transferred funds will eventually become the new normal.
As such, the decline of traditional financial institutions like banks, and the rise of innovative technologies, including cryptocurrencies, could be just the start of the mass transition to the online world.
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