Here’s How Bitcoin Bull Run Will Start at $20,000

  • CNBC call for a 17% upside in bitcoin price
  • A wave of investors driven by FOMO will enter when we break into a new high
  • Bitcoin’s investment flow presently growing an order of magnitude (10x) every 4 years – on-chain analyst

Bitcoin price is still hovering around $10,250, not continuing the momentum but not sliding down either.

However, with CNBC making a call for a bitcoin boom, it might be time to get ready for a drop as CNBC’s call for bitcoin works as a reverse indicator.

According to the mainstream media outlet, despite bitcoin’s pull back above $10,000, the rally is far from over. MKM Partners chief market technician JC O’Hara told CNBC on Wednesday,

“When we look at cryptos as a whole, they tend to trade in two distinct phases. The first being dormant consolidation, which is followed by phase two, which is a high-momentum phase.”

“When you look at bitcoin we’re starting to see signs that the dormant consolidation from the second half of last year is slowly starting to change in terms of positive bullish momentum here.”

CNBC: A 17% Upside Coming

On a year-to-date basis, the world’s leading cryptocurrency has surged over 38% after finding a bottom in December. Ever since then, bitcoin has been on a steady rise. O’Hara said,

“We broke out of the downward sloping trend channel. We’re breaking above the $10,000 psychological level, and we’re of the opinion that positive momentum will continue to follow positive momentum. So that’s why we think in the short term we could see $12,000 on bitcoin.”

Currently, bitcoin is trading at $10,250 and a move to $12,000 would imply an upside of 17% from the current levels. Back in July, last year bitcoin briefly topped at $13,900 but we have yet to break into an all-time high.

Open field above $20,000

Bitcoin, the best performing asset of the decade with an upside of nine million percent would pull in another wave of investors driven by FOMO when we break into a new high, according to Jake Chervinsky, Counsel at Compound Finance.

Bitcoin remains a speculative asset for the newbies, he said while sharing his first foray into bitcoin which was after the flagship cryptocurrency made an ATH during the bull market of 2017 at $3k despite having heard of it in 2015. And this is why the bull market will start at $20,000. Vijay Boyapati said,

“Once the prior all time high is breached, there is no longer an overhang of supply. The price is free to run wild in an “open field”. This is when Bitcoin’s price appreciation begins to accelerate apace.”

Bitcoin making new all-time highs, Boyapati explained last June, will trigger a “feeding frenzy,” that will see media attention returning and new entrants attracted by the “allure of quick profits” which in turn even drive prices higher even faster. And that’s when the price will “eventually reach a crescendo top.”

Still too early to be an alternative to traditional stocks?

Mark Tepper, president of Strategic Wealth Partners, is also dipping a toe into bitcoin as he shared with CNBC,

“Overall, we’re seeing investors just continue to diversify away from traditional stocks and bonds towards alternatives. Bitcoin could fit into that alternative sleeve, but I still think it’s a little too early.”

Tepper holds bitcoin but hasn’t become a believer yet because according to him, it is “not an investment just yet still a speculative play.

However, on-chain analyst Willy Woo noted, in 2019 Visa processed $8.8T through their network while Bitcoin processed $727b meaning Visa accounts for 10% world GDP (payments) and Bitcoin 1%. Analyst Woo said,

“Bitcoin’s investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years.”

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Author: AnTy

Sweden’s Central Bank, Riksbank, Partners with Accenture to Develop CBDC Dubbed ‘E-Krona’

The wave of Central Bank Digital Currency (CBDC) is gaining momentum after China’s progress and expected coin launch in 2020. Sweden is the latest country to announce a pilot test plan for the ‘e-krona’ digital currency; this will be its CBDC in the near future as more governments continue to embrace FinTech in digital payments.

According to a press release on Dec 13 by Sweden’s regulator, Riksbank, they will partner with Accenture to implement this DLT compatible tech. The IT consulting giant will be tasked with designing and creating the UI features for e-krona digital currency in the next one year as per the contract. Riksbank however noted that they are open to work together with Accenture for as long as 7 years which is the schedule period for running pilots on its CBDC.

This move has just brought e-krona digital currency closer to being a reality especially with the Swedish shift to digital payments in recent years. Canada’s Central Bank Deputy Governor had earlier on commented on this shift as he spoke at the Philadelphia Fed Reserve FinTech Conference noting that Swedish authorities need to act before tipping point.

Riksbank started its research on a CBDC back in 2016 and has since documented two reports on this progress. The Central Bank through its Deputy governor said that they are under pressure to shift to electronic money given stakeholders within the Swedish economy have moved away from bills and coins. Events around the globe also largely catalyzed the dive into a CBDC project; notably is Facebook’s stablecoin ‘Libra’. Stefan Ingves, the Governor of Riksbank, termed the move by Facebook as catalytic and important.

It is yet to be clear if the tech that Accenture will implement will be used to run e-krona given this procurement was classified as National Security information. This development by Sweden comes as their Switzerland crypto-friendly counterparts thwarted any plans to launch a CBDC for its population.

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Author: Lujan Odera

Deloitte’s Canteen to Accept Bitcoin Purchases as the Big Four Prepares for Blockchain Operations

Deloitte LLC, one of the Big four accounting firms in the world recently joined the Blockchain and Cryptocurrency wave. The firm gave hints of its intention to accommodate blockchain in operations after it allowed employees to purchase lunch via Bitcoin.

One of the firm’s partners told the Luxembourg Times in an interview that Deloitte would allow Bitcoin lunch purchases in its canteen.

Deloitte’s Future Plans in Blockchain and Bitcoin

The Big four accounting giant was keen to note through one of the partners, Laurent Collet, that it had no intentions of accepting crypto payments in the near future.

However, Deloitte’s interest in leveraging blockchain technology for operations ranging from audit functions to fund management remains a keen topic for the firm. Bitcoin has had its fair share of challenges and criticisms over the past decade, most notably the speed of transactions.

The Satoshi coin takes an average of 8.2 minutes to confirm a transaction, this is much longer than one would expect from digital currencies. Deloitte’s staff might have to wait longer than usual if they opt to pay using BTC form their mobile wallets.

However, a number of developers in the crypto space have dedicated their efforts to solve this challenge; the Lightning network is a good example that solves the inefficiency of using BTC for micropayments.

This ecosystem is a “two layer” designed to integrate central channels that enhance the speed of BTC transactions. As a result, big players like Deloitte have given blockchain and crypto technology a chance to prove its fundamental value in today’s financial services sector.

Why Blockchain But First Bitcoin?

Deloitte has emphasized that its long term goal to have a piece of the pie in Blockchain technology and not digital assets led by BTC.

The firm’s partner, Laurent Collet, said that Deloitte would study blockchain through its resources and see where the tech fits as a solution in the Luxembourg industry. In addition, the uses of blockchain are evident in Deloitte’s functions and would speed up its processes besides removing middlemen.

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Author: Lujan Odera