Bitcoin pushing back up against 6,000 and it’s getting fresh life breathed into it from all kinds of different directions, even though we haven’t necessarily hit the primary triggers that we’ve been watching for. So let’s dive into what’s going on in blockchain this month.
The first thing that we’re looking at is in the STO market, and the question is, is whether or not STOs, or Securitized Token Offerings, are actually going to take away from major financial institutions. The question always then becomes, will they allow that to do that? Or will they come into the market hot and heavy, buy it up, and/or find a way to leverage it to their own advantage?
Again, for you as an investor, if you’re looking at cryptocurrencies, specifically Bitcoin this month as an opportunity, you’ve got to be looking at how that securitized token market is coming to play because it is a direct fact to NASDAQ, and to New York Stock Exchange and to other marketplaces that don’t necessarily have the efficiencies created by blockchain recording transactions.
On the institutional side, a study by Fidelity shows that 62% of institutional investors want digital assets. One of the big reasons for the push up in BitCoin recently, has been the supposed play of institutional buyers coming in a gobbling up parts of the market in anticipation of the big three moves that we’ve been waiting for. Typically that means that the market has set the foundation for those things to happen, and that institutional investors want to be in early, rather than later.
Now, there’s always the other side of that, where people believe that this could just be FOMO as it moves up a little bit. People get in because don’t want to miss out on opportunities for it to rise even great. We leave it to you to take advantage of this opportunity another way that you see fit, by doing your own research, taking a look at the articles that we posted, and seeing if cryptocurrency is a good fit for you.
From a regulation perspective, we’re seeing things across the European Union, France and in China, about regulation on mining, cryptocurrency trading, and then also the adoption of Bitcoin in the financial markets. Here in the United States, while the markets and regulation have become a little bit more friendly to the technology in its use case, there’s still a limit to access to the best investments opportunities, unless you’re accredited investor.
So taking a look at the regulation, which is one of the big three things that we’re looking for, in order to change, hasn’t necessarily happened, but it still can be played to your advantage, either by an early entry point, or if you are accredited investor, taking advantage of some of those opportunities.
BitCoin futures are getting a boost before their launch. Bact is continually talking about them getting closer to launching. There’s also been talk of an Ethereum ETF potentially coming to market, or a futures market for that, which again is pushed up on forward price momentum.
Two of the bigger things that we’re seeing, both have to do with Facebook. One being that recent articles have come out saying that they’re going to lift their ban on cryptocurrency marketing, because of the second thing, which is their push into block chain, and their development of their own currency, for payment between Facebook members.
We believe they’re getting really close on doing something in that. And we’ve always talked about a major catalyst could be to this overall market, is one of the major marketplaces, the Amazons, the Facebooks jumping into the market, and not just accepting cryptocurrencies, but putting their own into play, in order to take advantage of transaction fees or lowering barrier between parties that are trying to trade goods.
On macroeconomic news, in the United States we are flying high for the most part: historically low unemployment, all kinds of good things going on in the economy.
A couple organizations have been raising a big amount of money for projects backed by the CBOE and NASDAQ on the stock markets. These are some really big moves. And these are the types of things that we’ve been watching for, in order to create the catalyst for forward momentum in the markets. If we’re seeing a 60 to 70% increase in BitCoin without any of the major catalysts hitting in the market, that leads us to believe that there’s a lot of potential in the market. You have to decide whether or not Bitcoin is a right fit.
1Source is CoinMarketCap.com historical pricing chart: https://coinmarketcap.com/currencies/bitcoin/historical-data/?start=20190101&end=20190523
Roger Bryan is not an employee of Equity Trust Company. Any opinions or ideas expressed by Mr. Bryan are not necessarily those of Equity Trust Company nor do they reflect their views or endorsement. These materials are for informational purposes only. Equity Trust Company, and its affiliates, representatives and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal.
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