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Morgan Stanley’s V-Shape Recovery Prediction Can Still Lead Bitcoin Above $10K

Bitcoin price could attempt a close above $10,000 as Morgan Stanley predicts a V-shape global recovery by the fourth quarter. Economists at the investment banking giant expect global GDP to shrink by 8.6 percent year-on-year but rebound to 3.1 percent by Q1/2021. Aspects of a full recovery could increase investors’ risk appetite, thereby benefiting Bitcoin alongside the global stock market. Bitcoin’s likelihood of testing and maintaining a price floor above $10,000 looks promising as Morgan […]

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Bitcoin price could attempt a close above $10,000 as Morgan Stanley predicts a V-shape global recovery by the fourth quarter.
Economists at the investment banking giant expect global GDP to shrink by 8.6 percent year-on-year but rebound to 3.1 percent by Q1/2021.
Aspects of a full recovery could increase investors’ risk appetite, thereby benefiting Bitcoin alongside the global stock market. Bitcoin’s likelihood of testing and maintaining a price floor above $10,000 looks promising as Morgan Stanley makes an encouraging global market forecast.
Economists at the investment banking giant said that they expect the global economy to print a V-shaped recovery by Q4/2020. Led by Chetan Ahya, the financial veterans cited a recent upside in growth data and policy action undertaken by global central banks as significant reasons behind the recovery. More than 90 percent of economies could fall into recession this year. Source: World Bank, Bloomberg
They predicted a mild-recession heading further into the year, noting that the global GDP may shrink by 8.6 percent on a year-on-year basis. Nevertheless, with the economy in a new expansionary cycle and factory output improving post-lockdown, the GDP may start recovering in Q4/2020.
Morgan Stanley’s economists anticipate a rebound of 3.1 percent by the end of Q1/2021.
Bitcoin
A non-correlated asset otherwise, Bitcoin’s proximity with macroeconomic catalysts has grown in the wake of the pandemic.
The cryptocurrency suffered significant losses during the February-March trade session, falling by more than 60 percent. Its wild move downhill coincided with a global market rout, wherein stocks, commodities, ETFs, and bonds fell in tandem. Investors dumped these assets to seek safety in cash. U.S. Dollar Index chart from TradingView.com showing the greenback’s strength in March 2020. Source: TradingView.com
But the intervention of governments and central banks took some pressure off the market. The U.S. Federal Reserve sent its benchmark interest rates to near-zero and launched an open-ended bond-buying program. The U.S. Congress, at the same time, introduced a $3 trillion stimulus package.
Central banks took similar measures in the Eurozone, Japan, Australia, and China. The result was a significant recovery across the global stock market.
Bitcoin rebounded, likewise.
Further Recovery and $10,000
With Morgan Stanley predicting a recovery ahead of Q1/2021, it could allow institutional investors to regain their confidence in the risky markets. So far, they have rubbished the stock recovery as retail-driven, citing examples of bankrupted companies like Hertz, whose equities swang high by as much as 80 percent.
“What you’re getting right now is this great disconnect between fundamentals and finance,” Mohamed El-Erian, chief economic adviser at Allianz, told CNBC. “Take Hertz. A company in a bankruptcy procedure that saw its share price go up […] now they’re talking about issuing stocks, warning investors they may be worthless.”
Eminent investors, including Scott Minerd, the global chief investment officer for Guggenheim Partners LLC, and billionaire Jeffrey Gundlach of DoubleLine Capital LP, have also called stocks overvalued. Prominent asset manager Jeremy Grantham wrote that the stock market is rising on a one-side optimism.
A majority of financial bigwigs expect a sharp pullback owing to a potentially bumpy economic recovery, as well as fears of a second-wave of virus infections. That could lead to a seismic capital shift from risk-on assets to safe-havens like bonds, gold, and even an oversupplied U.S. dollar.
A similar correction is taking place. On Monday, both Bitcoin and futures tied to the U.S. benchmark S&P 500 dived lower. Analysts believe the price action could remain, at best, choppy with a hint of an extended move to the downside. #bitcoin is still moving in worrying closeness with the S&P 500 – not good pic.twitter.com/KDFNmnQ44d
— Lark Davis (@TheCryptoLark) June 11, 2020 Meanwhile, the next dip, coupled with an optimistic global market forecast, could open doors for institutional investors to join the rally. As the stock market resumes its uptrend, it would leave Bitcoin in a similar bullish bias. That could lead the cryptocurrency towards or above $10,000. Source: https://bitcoinist.com/morgan-stanleys-v-shape-recovery-prediction-can-still-lead-bitcoin-above-10k/?utm_source=rss&utm_medium=rss&utm_campaign=morgan-stanleys-v-shape-recovery-prediction-can-still-lead-bitcoin-above-10k

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Rollercoaster: After Daily $1000 Plunge, Bitcoin Maintains $19K As ETH Below $600 (Market Watch)

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The primary cryptocurrency had a rather positive week, which saw a new all-time high on some exchanges. However, BTC’s inability to break above the coveted $20,000 price tag drove the asset down to $18,100 just minutes after the second attempt to break $20K.

The cryptocurrency recovered most losses and jumped to $19,500 in the following days. In the past 24 hours, BTC stalled around that level. The bears took control and drove the asset towards the intraday low of about $18,500, where lies a critical support area. Nevertheless, bitcoin has bounced off and current hovers above $19,000.

From a technical viewpoint, BTC needs to overcome the first resistance at $19,700 (the previous 2017 ATH zone) to head for new highs. If successful, the cryptocurrency’s next obstacles will be at $19,920, $20,350, and $20,970.

Alternatively, the support levels at $18,800, $18,600, and $18,270 could assist if there’s another retracement.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Altcoins Covered In Red

Most alternative coins have followed Bitcoin’s price developments in the past 24 hours. Ethereum went from a daily high of $620 to a low of $560. Despite recovering over $590, the second-largest cryptocurrency is down by more than 3% on a 24-hour scale.

Ripple has lost 6% of value since yesterday and struggles beneath $0.60. Bitcoin Cash (-5%), Binance Coin (-3.5%), Chainlink (-4.5%), Polkadot (-4%), Cardano (-3%), and Litecoin (-5.5%) are also in the red from the top ten coins.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Stellar has lost the most value in the past 24 hours with an 8% decrease. Thus, XLM has erased the gains marked last week after the project announced two major network upgrades.

MaidSafeCoin is next with a 7% decline, threatening MAID’s position in the top 100 coins. Kyber Network (-6%), Dash (-5%), Verge (-5%), and Cosmos (-5%) follow.

In contrast, NEM is the most impressive gainer, with an 8% increase since yesterday. On a weekly scale, XEM has added over 40% to its value. Bitcoin SV has also jumped by about 8% and trades north of $180.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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Source: https://cryptopotato.com/rollercoaster-after-daily-1000-plunge-bitcoin-maintains-19k-as-eth-below-600-market-watch/

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Injective launches gold synthetic commodities on Solistice Testnet

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Injective Protocol announced the launch of their first synthetic commodity market on the Solistice Testnet. According to the announcement, users can now trade gold perpetual markets with up to 20x leverage. The price oracles utilized will enable real-time feeds which further allows traders to trade gold 24/7 on Injective.

“We have chosen to begin with the introduction of gold as it is currently one of the most highly traded assets worldwide.”, stated the protocol, further adding that user interest derived from a survey from their community also aided this decision.

The layer two DEX is reportedly exploring the addition of both new synthetic assets and new markets not available anywhere else, a few days after the introduction of initial markets on the testnet.

The initial markets will include the following: Injective, Bitcoin, Ethereum, Binance Coin, Polkadot, Elrond, ChainLink, Uniswap, and Yearn Finance.

These markets were also supposedly chosen based on an analysis of user sentiment and traction across channels – an indication that this selection of coins was the most popular amongst the larger crypto community.

Injective Protocol is backed by a prominent group of stakeholders including Pantera Capital, and the leading cryptocurrency exchange, Binance.

The diversification of its product offering into synthetic assets sees it joining a list of protocols that have recently ventured into the same space, the newest example being the newly launched Mirror Protocol, which tracks the price of stocks, futures, exchange-traded funds, and other traditional financial assets.

As the DeFi industry continues to evolve, the emergence of new asset classes such as synthetic commodities will soon be a part of this ecosystem of alternative finance.

Source: https://eng.ambcrypto.com/injective-launches-gold-synthetic-commodities-on-solistice-testnet

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Ethereum community explodes over proposed stablecoin act from U.S. representatives

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The crypto community was slammed with news earlier this week that U.S. House representatives are looking to crack down on stablecoins.

The Office of Congresswoman Rashida Tlaib, who is heading this new proposed legislation, wrote in a press release announcing this move:

“The COVID-19 Pandemic has exposed numerous barriers to accessing and utilizing mainstream financial institutions, leaving many to look to the financial technology sector to meet the financial servicing needs of low- and moderate-income (LMI) consumers for everything from faster direct payments, access to loans, and even access to bank accounts. LMI consumer vulnerabilities could be exploited and obscured by bad actors looking to issue stablecoins.”

This “STABLE Act” would require that any issuer of a stablecoin must comply directly with banking regulations. This would basically harm the DeFi space by only allowing KYC-ed individuals to transact with decentralized applications.

Further, supporters of the act on Twitter, including one professor/digital currency specialist at Stanford, Rohan Grey, has basically said that nodes should be disallowed from processing illegal stsablecoin transactions:

“You’re taking the Ethereum network as a fixed variable and saying that it’s impossible for node validators on it to know what transactions they are verifying. I’m saying running Ethereum itself is a *choice* and if that’s an issue then change the code or run a diff network.”

The crypto space, especially the Ethereum community, is not taking this lying down.

Ethereum & crypto community fires back over STABLE Act

Scott Lewis, the founder of projects like DeFi Pulse, wrote that a key advocate of this STABLE Act is making some dangerous and incorrect assumptions about Ethereum and cryptocurrencies as a whole.

The advocate, Nathan Tankus, said that Ethereum users are subject to “mediation conducted by the Ethereum Foundation when they use the Ethereum Network” because no Ethereum users actually run their own nodes.

Many in the space have fired back against these assertions, pointing to their own nodes and evidence showing that cracking down on stablecoins would actually harm the disenfranchised.

CoinCenter, a key advocate for positive and logical crypto regulation in Washington, has received tens of thousands of dollars of donations since the STABLE Act was released.

Stablecoins still gain traction

While stablecoins are coming under fire, they are seeing support from institutions.

The U.S. government itself was revealed to be working directly with Circle, the issuer of USDC, to distribute relief payments to Venezuelans in need.

Further, it was more recently revealed that Visa is teaming up with Circle to allow businesses to accept payments in USDC.

Posted In: Regulation

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Source: https://cryptoslate.com/ethereum-community-explodes-over-proposed-stablecoin-act-from-u-s-representatives/

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