Bitcoin Giving Bears a Cause for Concern
- May 9, 2019 / admin
- bitcoin
- money market
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Bitcoin is currently trading at $5574 (bitmex) after having made a legitimate push at the $5800 mark.
Although BTC fell just short of the $6k target, the attempt comes on the heels of a big helping of Tether FUD, making the move more remarkable.?
Since BTC managed to rebound from a dip after New York’s Attorney General’s accusations against Bitfinex/Tether owner iFinex Inc., investors likely carried enough confidence through the week to power the recently witnessed moonshot.
Apart from news-related price drivers, bullish bitcoin momentum has developed since the cryptocurrency market unreservedly capitulated in November of last year.
Even more importantly, BTC recently closed its first three consecutive months of growth since 2017.
So, where to from here?
We believe that $5500 is essential pivotal support and should hold in the near-term as price consolidates around yesterday’s massive move.
If we break below the $5500 level, expect continued downside that could sweep the low $5000s – and potentially lower.
In the event we do begin charting below the $5000 mark, we’ll start looking for new BTC long entries.
A Fifth of Institutional Players are Invested in Crypto
You may have noticed that Fidelity Investments loves cryptocurrency.
With over $2.46 trillion in assets under their care, it’s reasonable to say that Fidelity knows a thing or two about where and when to be invested.
Despite the bear market, Fidelity went ahead with crypto trading and custody products while executives at the company repeatedly went on the record to profess their love for the emerging digital asset class.
Recently, Fidelity published the results of a comprehensive survey regarding the amount of exposure to crypto assets held by institutional investors. Their report suggests that at least 22% of institutional buyers have at least some exposure to cryptocurrencies, like bitcoin, and that the next five years will see a huge influx of additional investment by major financial players.
Facebook’s Shadow Looming Large
The prospect of Facebook’s gradual entrance into the blockchain space is becoming less theoretical and more concrete by the day.
Coindesk reported that Facebook is currently in talks with Visa and Mastercard to build an ecosystem around its planned stable coin.
It was previously reported that Facebook is seeking at least $1 billion in its effort to bring a cryptocurrency to the market.
Considering Facebook’s global saturation in name recognition and status as social media giant par excellence, should they release a cryptocurrency for in-network payments, it could easily and quickly rival payment systems by the likes of Visa.
Therefore, it may be wise for incumbent payment networks to tag along with Facebook’s effort rather than be rendered obsolete when Facebook wipes out swipe and card processing fees with a crypto payment system.
Author:
Prof. Kuber Sharma
Columbia Business School Alumnus.
Faculty JK Business School.
