BTC Price Aside: Bitcoin is Still Fundamentally in Bull Market
As you likely are aware of, the cryptocurrency market hasn’t been having the best week. The Bitcoin price has lost just over 15% over the last three days, while altcoins have incurred even heavier losses.
Although many established traders have kept their wits about them amidst this move, there is a growing number of cryptocurrency investors on online forums claiming that the end is nigh. These emotional cynics have claimed that Bitcoin and this industry is soon to enter yet another decline.
But, the fundamentals tell a different story: Bitcoin, despite the recent price action, is still in the midst of a bull market, with there being corporations and investors continuing to allocate time and human capital to this budding sector.
Here are some of these developments as compiled by Blockonomi.
Bitcoin Still in Macro Bull Market
- Bakkt’s Bitcoin Futures are live: On Sunday, Bakkt launched its much-awaited Bitcoin futures contracts after nearly a year of regulatory setbacks and logistical hurdles. While the institutional-centric investment vehicle did not see a copious amount of demand during its first trading sessions, analysts like Fundstrat’s Tom Lee expect Bakkt to have positive long-term effects on Bitcoin demand. CNBC contributor Brian Kelly has echoed this sentiment, going as far as to say that Bakkt’s product will kick-off Bitcoin’s “medium of exchange narrative” and will reduce volatility in cryptocurrency markets.
- Massive German institution offers Bitcoin trading: Boerse Stuttgart, Germany’s second-largest stock exchange, opened a cryptocurrency trading platform earlier this week. CEO Dr. Dirk Sturz has said that he believes that blockchain-based assets will continue to be a growing market, hence the need for this new platform, Boerse Stuttgart Digital Exchange. With such a large institution behind this asset class, more investors may be drawn in and convinced to play at the cryptocurrency craps table.
- SoFi to offer cryptocurrency trading: In similar news, fintech startup SoFi has revealed that it will be allowing its clients to trade Bitcoin, Ethereum, and Litecoin through an exchange platform meant to launch next Tuesday. SoFi joins Robinhood and Cash App as one of the few Silicon Valley-based fintech giants offering Bitcoin and cryptocurrency services to their retail audience.
- Bitcoin mining a booming industry: Despite a brief blip on Tuesday, the Bitcoin hash rate continues its unparalleled surge to the upside, with this metric nearly trebling since the December 2018 bottom. The growth of this metric, which many see as a measure of the security of the Bitcoin network, has signaled to many that miners continue to siphon dozens of millions into cryptocurrency mining.
- CME to offer Bitcoin options: Committing to the financialization of Bitcoin, the CME Group has announced that it will offer options on its Bitcoin futures contracts in Q1 of 2020. These new products will offer the CME’s mainly institutional-centric clientele “additional tools for precision hedging and trading.”
- Square commits to cryptocurrency cause: Square’s cryptocurrency division, the fittingly-named Square Crypto, last week finished the creation of its “inaugural” developer team. According to Square Crypto’s director, Steve Lee, this new team and their successors will be “focusing on improving the Bitcoin experience for mainstream users. The user journey will always be central to our thinking.”
So;
Bakkt launches and providing liquidity.
And people are still bearish macrowise.
I don't get it.
— Crypto Michaël (@CryptoMichNL) September 25, 2019
This writer hasn’t even named all the positive developments that have taken place over recent months.
Regardless, the bottom line is that in spite of the lull and recent brutal downturn, large corporations and investors still seem to be convinced that Bitcoin and its ilk have a future.
The post BTC Price Aside: Bitcoin is Still Fundamentally in Bull Market appeared first on Blockonomi.
OhNoCryptocurrency via https://ift.tt/2PblI7a @Nick Chong, @Khareem Sudlow