The price of Bitcoin is on course to surge past the $13,000 mark with plans from Facebook to launch a cryptocurrency in 2020 giving investors in the digital coin market a fresh boost.
The world’s most popular cryptocurrency has seen its price soar by more than 40pc in the last week, rising 14pc on Wednesday alone to $12,900.
The activity around Bitcoin comes just one week after social media giant Facebook announced plans to introduce a global cryptocurrency called “Libra”.
The company says the currency could be used by its billions of users across services such as Messenger, WhatsApp and Instagram to make online payments.
Mark Zuckerberg, chief executive of Facebook, said it was the company’s goal to “make it easy for everyone to send and receive money just like you use our apps to instantly share messages and photos”.
Cryptocurrencies are a form of online currency used to make transactions that don’t need to go through a centralised authority such as a bank.
Payments are carried out through a technology known as
The digital coin market reached an all-time high at the end of 2017 when the price of bitcoin reached $20,000, but suffered a heavy fall last year, wiping $700bn off the cryptocurrency market’s entire valuation.
Bitcoin has climbed in price by more than 200pc since December, but the persisting volatility in the market has led to the sector being labelled as the “wild west” due to the unpredictable nature of movements in the market.
Despite expecting some volatility to continue affecting the market, cryptocurrency investors are expecting greater institutional money flow into the digital asset class as more mainstream names such as Facebook get involved.
Earlier this year, JP Morgan announced its JPM Coin, a cryptocurrency designed by the investment bank to settle payments between its clients situated across the globe. The bank has however refrained from calling its coin a currency, claiming it “isn’t money per se”.
Source: the Telegraph
Bitstamp’s Bitcoin loan product to initially target institutional clients
Bitstamp, Europe’s largest crypto-exchange with respect to trading volume and one of few exchanges to receive a BitLicense in 2019, recently announced its collaboration with the U.S-based Silvergate Bank to launch a Bitcoin collateralized loan product.
According to the official press release, the crypto-exchange will serve as a launch partner for SEN Leverage, Silvergate’s new product that will enable institutional clients to trade with leverage backed by Bitcoin.
The press release added,
“Bitstamp already uses the SEN network to provide 24/7/365 account funding to eligible customers. We are excited to be working with Silvergate Bank to offer a product that will enable our clients to manage their bitcoin positions with more flexibility.”
In a recent interview with Cheddar, Hunter Merghart, Head of U.S Operations for Bitstamp, discussed the tie-up with Silvergate and the bank’s new SEN product.
Merghart explained that the key objective is to provide more institutional on-ramps and fiat-on ramps for institutional clients. The product also claims to offer institutional clients an easier path
The Head of Operations also clarified the fact that initially, it will focus only on institutional clients who are already in the crypto-space. However, Merghart highlighted that the firm is only targeting Non-U.S institutional clients at the start, adding that Bitstamp is looking forward to expanding to U.S institutional clients.
He added that such a trading model collateralized with Bitcoin is picking up pace because of major institutions such as the CME and Bakkt, with their derivatives market gaining interest with every passing day.
Additionally, he added that it is important for crypto-backed companies to merge with traditional finance so that institutional clients have a sense of familiarity that they usually have with another asset class.
Merghart concluded by agreeing with the fact that Bitcoin collateral appeared risky on paper, before clarifying that the product will not be available for retail and a lot of thought has been put forward with consumer protection kept in mind.
Bitcoin (BTC/USD) forecast and analysis on January 18, 2020
Cryptocurrency Bitcoin (BTC/USD) is trading at 8781. Cryptocurrency quotes are trading above the moving average with a period of 55. This indicates a bullish trend on Bitcoin. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator stripes.
Bitcoin (BTC/USD) forecast and analysis on January 18, 2020
As part of the Bitcoin exchange rate forecast, a test of level 8730 is expected. Where can we expect an attempt to continue the growth of BTC/USD and the further development of an upward trend. The purpose of this movement is the area near the level of 9480. The conservative area for buying Bitcoin is located near the lower border of the Bollinger Bands indicator strip at the level of 8300.
Bitcoin (BTC/USD) forecast and analysis on January 18, 2020 implies a test level of 8730. Further growth is expected to continue to the area above the level of 9480. The conservative buying area is near the area of 8300. The breakdown of the cryptocurrency growth option will be the breakdown of the level of 8250. In this case, we should expect further fall.
Bitcoin (BTC) Price Likely to Touch $85,000 In Next Bull Run, Trading Expert Believes
With many analysts and financial experts predicting that the next peak of the Bitcoin price will be around $100,000, crypto trader Josh Rager expresses an unpopular opinion that the next Bitcoin price all-time high may be slightly lower.
$85,000 per BTC vs $100,000
The trading expert names the figure – $75,000 – $85,000, standing up to other Bitcoin bulls who expect the flagship crypto to hit at least $100,000 (and some even target at $1 mln per BTC).
Image via Twitter
As reported by U.Today previously, a recent survey made by Bitwise claims that around four percent of advisors in the financial sphere from the US believe that within several years to come Bitcoin is likely to reach a new high of over $100,000.
However, the majority of those who took part in the survey, reckon that the ‘father of crypto’ will be trading between the price marks of $7,000 and $24,999.
John McAfee refuses to eat his…words
The US presidential candidate and a prominent cryptocurrency supporter John McAfee believes that, according to
First he made a bet (saying that otherwise he would eat his manhood on TV) on $500,000 per BTC. However, later on he raised it to $1 mln.
Recently, however, Mr McAfee tweeted that he is not going to chew on his penis, since this public bet and a promise to eat one of his vital organs on TV was simply a ‘ruse’ for attracting new users to the cryptocurrency sphere.
And it worked, he said.
$9,300 per BTC in the short term
Crypto trader ‘TraderSZ’ believes that in the short term the next possible target for the BTC price is $9,300 – provided that Bitcoin can hold above the $9,000 area.
However, he continues, if BTC slumps, a correction may break out that will take the flagship coin down to $8,300.