Cryptocurrency prices are recovering strongly in the face of looming mass unemployment across the Western world. Central banks have proven the scarcity theory of cryptocurrency correct with vast money-printing exercises to shore up collapsing corporate debt and equity markets. It’s for good reason that we’re bullish on both the near-term and medium-term future of crypto.
ex-goldman sachs fund manager pivots hard into bitcoin
Raoul Pal is widely followed and for good reason. The former Goldman Sachs fund manager says coronavirus will lead to “the largest insolvency event in history” and has rebalanced his portfolio away from crashing equities, instead storing 25% value into Bitcoin. Read more here.
bitcoin trading volumes spike 61% in Q1 2020
Research by TheBlockCrypto shows trading volumes across 22 major exchanges increased by 61% in the first quarter of 2020, reversing two quarters of decline in 2019. The volume of trades reached over $154bn in the first three months of the year, almost matching the $155bn seen in Q3 2019 when the average price of Bitcoin reached $10,366.
Trading volume had declined in late 2019 as demand for Bitcoin softened, and investors may have expected volumes to continue to crater. But the world’s largest cryptocurrency has seen significant reslience. Read more here.
binance agrees $400m deal to buy CoinMarketCap
Binance has made another big acquisition in an attempt to further consolidate its power. CoinMarketCap is the crypto industry standard data website and boasts 37 million monthly visitors, so Binance can expect a huge boost in traffic from the takeover. Lingering questions remain, however. The cryptocurrency industry does not yet have an anti-monopoly regulator like the Competition and Markets Authority in the UK, for example. So the question is: can investors trust that Binance will not attempt to massage the information coming out of CoinMarketCap? Read more here.
russia completes cryptocurrency regulation
The head of Russia’s financial markets says the long-running battle to complete regulatory work on cryptocurrency is finally finished. The state has been kicking this can down the road for over a year, and indsutry analysts have been repeatedly disappointed by the lack of positive movement from government. So news that draft legislation is ready to show to the world is momentous to say the least. Both exchanges and miners will be regulated, according to reports. Now we await more details on how the 11th-largest economy on the planet will move forward with cryptocurrency. Read more here.
switzerland’s FINMA backs law changes for blockchain trading
The 2019 annual report from Switzerland’s market regulator FINMA has a host of interesting points in it. Chief among them is the idea that it wants to create a new licensing category for institutions who want to trade, settle and custory securities using a blockchain-based trading system on the Swiss bourse. The Swiss Federal Council wants to amend federal law to accommodate the tech, and FINMA says it is “actively collaborating” with the project, noting it “attaches great importance to technological neutrality and legal certainty”. Read more here.