Australian ‘Buy Now, Pay Later’ Firm Looking to Allow Users to Trade Crypto on Customer Demand

Australian ‘Buy Now, Pay Later’ Firm Looking to Allow Users to Trade Crypto on Customer Demand

Zip Co Ltd, an Australian buy now, pay later (BNPL) firm, explores the option to allow its users to trade cryptocurrencies.

Trading in crypto using Zip digital wallets was one of most requested new product features from users, said co-founder Peter Gray on Thursday.

Zip said it would likely launch the new service in the US first and then in the next 12 months in Australia. The US is driving its fourth-quarter growth and is set to soon become its biggest market by volume.

The company’s fourth-quarter volumes and revenue doubled, with transaction volumes hitting A$1.76 billion ($1.29 billion) in the June quarter and volume at its US unit quadrupled.

Zip’s Australian user base is mature, with about 30% of adults having a BNPL account.

This attempt by Zip to go into crypto is also propelled by the company’s established competitors like Afterpay and Klarna expanding into more countries and planning new offerings like a banking app. The BNPL sector is also attracting the giants like PayPal and even Apple.

“We know our younger generation of customers seek additional products and services that are relevant to them,” Gray told Reuters. The company itself is also looking at expansion in Europe and the Middle East.

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Author: AnTy

Retail Catching Up on Bitcoin as the Digital Asset Gets Ready for $30k

Google Search interest for Bitcoin, Crypto, and ‘Buy Crypto’ has surged to Jan. and Feb. 2018 levels.

Bitcoin vaulted above $29,000 to hit an all-time high at around $29,620 on New Year’s Day. Last month, Bitcoin advanced about 50% to mark its biggest monthly gain since May 2019.

Q4 of 2020 was the second-biggest percentage gaining quarter ever at 168.78%, after 210% of Q4 of 2017.

These gains took Bitcoin’s market capitalization past $545 million and it became the 10th largest asset by market cap, surpassing BTC skeptic Warren Buffett’s Berkshire Hathaway.

Bitcoin’s weekly RSI at 92 meanwhile is pointing to Bitcoin being in overbought territory and the market is expecting BTC BTC 0.83% Bitcoin / USD BTCUSD $ 29,329.57
$243.44 0.83%
Volume 40.77 b Change $243.44 Open $29,329.57 Circulating 18.59 m Market Cap 545.17 b
8 h Retail Catching Up on Bitcoin as the Digital Asset Gets Ready for $30,000 9 h Bitcoin Hits a New All-Time Record High Against the Traditional Safe Haven Gold 1 d Bitcoin is ‘Going to Fall’ if a Correction is Seen in Stocks, Says Fundstrat’s Tom Lee
to top somewhere around $30k before seeing a correction. But given the strong and resilient demand for the digital asset, it’s anyone’s guess at this point, when and how low exactly we will go at this point if any at all.

Bitcoin’s Gain, USD’s Loss

While bitcoin is on a price discovery ever since breaking 2017 ATH $20k, the US dollar posted its biggest yearly loss since 2017.

The greenback soared to a three-year high of 103 against a basket of currencies in March when panic over the spread of COVID-19 in the US peaked, pushing all the markets down, before dropping on unprecedented Federal Reserve stimulus.

Now, improving global economic outlook, COVID-19 vaccines getting rolled out, ongoing fed bond purchase, and zero to sub-zero interest rates have put a dent in the dollar’s appeal.

“I expect the dollar to depreciate further over the next few years as the Fed keeps rates at zero whilst maintaining its bloated balance sheet,” Kevin Boscher, chief investment officer at asset manager Ravenscroft, told clients.

All the actors negatively affecting USD are actually working in favor of Bitcoin, pushing the digital asset’s prices higher and higher towards the moon.

Retail Taking Notice

The growing prices of Bitcoin have started to catch the attention of retail as well. The interest in the term Bitcoin on Google Trends has seen an uptick to February 2018 levels in the US, although nowhere near the 2017 high.

A similar jump in interest is seen worldwide but while it has a reading of 39, on a 0-100 scale, compared to the 30 reading in the US. Nigeria, South Africa, Austria, Ghana, and Switzerland are currently leading this interest.

Interest is actually higher for the terms ‘crypto’ and ‘buy crypto’ that have a reading between 40 to 48 last seen in Jan. 2018, both in the US and worldwide, most among Malta, Australia, Slovenia, Nigeria, and St Helena.

Among the cryptocurrencies, Google Search interest for Bitcoin, ETH, and XRP are at their highest since Jan. 2018 with Tezos being the only one to hit its peak in 2020. While ETH has relatively the highest search interest, IOTA has the lowest.

When it comes to Twitter, “the percentage of Bitcoin tweets coming from unique Twitter accounts is at an ATH,” noted The TIE.

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Author: AnTy

Fed’s “Not” QE Pushing Dow and S&P 500 to ATH makes Investors Nervous, Driving them into Bitcoin

  • Buy Bitcoin today while the US Stocks markets stay closed in observance of Martin Luther King Jr. Day

Federal Reserve Chairman Jerome Powell might have believed himself that his efforts to keep up funding markets are “in no sense” quantitative easing by repeating it enough times. But according to investors, it 100% is.

US stocks closed at all-time highs on Friday, marking the third-straight record close for the Dow Jones Industrial Average and S&P 500. Today, the US stock markets are closed in observance of Martin Luther King Jr. Day.

If enough people feel it, then it’s going to impact markets

This time instead of pushing the long-term interest rates down to stimulate the economy, the Fed is buying Treasury bills to keep up the financial system. Jim Paulsen, Leuthold Group Inc.’s chief investment strategist told Bloomberg,

“Whether the Fed’s liquidity injection impacted directly the economy or the pricing of assets or not, it’s certainly true that a lot of people think it did.”

“Whether anything is going to change if the Fed takes it away doesn’t matter. If enough people feel it will, then it’s going to impact markets.”

In October, the Fed started buying $60 billion of Treasury bills each month, a “purely technical” move on policymakers’ part to improve the benchmark interest rates used to guide monetary policy.

Fed-Reserve-Bloomburg

Fed-Reserve-Bloomburg

Fed-Reserve-Bloomburg

Powell stresses that the growth of the balance sheet this time should “no way be confused” with the large-scale asset purchase programs deployed by the Fed after the financial crisis. But the market’s upward trajectory says something else.

Do not fight the Fed. Buy stocks

Deutsche Bank observed that since the Fed started T-bills, the S&P 500 went up about 1% for every 1% increase in the Fed’s balance sheet. Torsten Slok, chief economist at Deutsche Bank AG said,

“So in that sense, Fed balance sheet expansion has at least been correlated with the increase in the stock market we have seen since October.”

And every time the central bank mentioned cutting down its holdings, a major equity correction followed, pointed out Gina Martin Adams of Bloomberg Intelligence. Now, the wind-down of these monthly purchases is the biggest risk that investors face this year.

This continued growth can also be caused by retail traders in part, who account for 20% or $7 trillion of the total US market ownership in 2019. According to a Goldman Sachs study, it is comparable to household equity allocation in 2007 but only surpassed by the 2000 dotcom bubble.

What goes up must come down

Art Hogan, chief market strategist at National Securities Corporation said,

“To date, the market has had a long run of prosperity that makes investors nervous, because we all have good memories that what goes up must come down.”

As Jim Carney, founder and CEO of alternative investment manager Parplus Partners told MarketWatch,

“Every time, it looks good something happens…it’s almost frightening and that’s when it gets worrying.”

And this why as analyst Joe McCann says “Buy Bitcoin” because when things start unraveling there would be a need for an uncorrelated asset that is non-seizable, censorship-resistant, and has a limited supply.

Already this asset is up 9,000,000% in the past decade is on its way to another parabolic trajectory as it prepares for its third supply shock this year. According to Mati Greenspan, founder of Quantum Economics,

“Investors have realized that the central banks have forced them into a high-risk corner and they’re jumping on it.”

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Author: AnTy