- Novogratz admits to getting caught up in the hype in 2017
- He further states he got ‘too greedy’
- ‘the crypto revolution is real’
The last time the bitcoin bulls were in control, in 2017, the world was different.
Billionaire and Galaxy Digital CEO, Mike Novogratz concedes to having gotten swept up in all the commotion. Speaking at the Reuters Global Investment Outlook Summit, Novogratz said that even he got “too greedy.” Since then, investors have had to come back down to earth, after the market plummeted.
“We’ve gone from 2017 when it was really this emotional, speculative, wild ride when lots of wannabe coins got thrown in and everything went up together because it was retail driven, it was emotionally driven, it was sentiment-driven.”
As the market conditions change, you might think that the fundamental purpose of bitcoin has too. But this is the wrong way of thinking and instead, Novogratz says “ambitions have been tempered a little bit by reality.”
The ex-hedge fund manager seems to be a big believer in that the early innings for the new technology asset class are still applicable, saying that “bitcoin is just getting started.”
“Bubbles happen around things that are really important, the crypto revolution is real. And it’s a desire for privacy, it’s a desire for the democratisation of finance. It’s a desire for efficiency and disrupting old school businesses that have taken huge rents on people.”
There are many others who see bitcoin’s impact on the world as being revolutionary or life-changing, which has been for some.
In a new report by Adamant Research called “The Bitcoin Reformation” this follows the same lines.
The report likens the impact of 21st-century fads including “bitcoin, encryption, the internet, and millennials” – to that of the 16th/17th-century European new movements with inventions like the printing press.
As per CCN, the analysis, Adamant Capital reaches the conclusion that Initial Exchange Offerings, which are the new ICOs, are here to stay.
Bithumb Changes its Corporate Name to “Bithumb Korea” for Global Expansion
In a recent press release, the biggest cryptocurrency exchange in Korea, Bithumb, announced to change its corporate name to “Bithumb Korea.” BTCKorea.com, which backs Bithumb, plans to replace “BTC” with “Bithumb,” with an expectation that the new brand name will foster a high brand awareness both locally and globally.
Besides a change in the corporate name, Bithumb is actively working to be a blockchain-based finance company on a global scale, moving forward from being a digital currency exchange. The exchange was founded earlier in 2014 and recorded the largest number of BTC transactions in Korea. Further, in 2017, it left behind all crypto exchanges in terms of total transaction volume. Afterward, BTCKorea.com laid a foundation for the biggest customer service center and introduced a cryptocurrency transaction system in the crypto space.
Speaking of the change in the corporate name, a Bithumb representative, stated that Bithumb Korea would strengthen the competitiveness of cryptocurrency exchanges.
The move will play a pivotal role in the development of related fields through business diversification, and grow as a firm that is able to contribute to its customers and the society.
South Korea-based exchange had earlier launched an over-the-counter (OTC) trading desk named “Ortus,” which aims to execute block deals.
As per reports, Bithumb Korea has 4.6 million registered users in Korea. The firm is strongly lobbying for the institutionalization of the blockchain industry and regulating it to avoid issues like money laundering, Ponzi scams and shady transactions. To achieve this, Bithumb has invested in blockchain companies developing a security token platform, promoting market transparency, and establishing the Anti-Money Laundering center since last year. These investments have also contributed to the growth of crypto-related industries.
Bithumb is also pushing for new businesses such as a custody service, storage of digital assets, and act as a platform that settles cryptocurrency transaction orders between exchanges.
Royal Bank of Canada launching new cryptocurrency trading platform: Report
While Canada is still contemplating its position on issuing its own digital currency, the Royal Bank of Canada [RBC] is reportedly taking steps towards setting up a cryptocurrency exchange, while enabling cryptocurrency accounts for its users.
According to a report by The Logic, the yet-to-be-launched platform would expedite crypto-related activities like purchases and sales, along with the transfer of funds. Further, the opening of bank accounts having cryptocurrencies is also under the purview of the bank. This would make RBC the first Canadian bank to set up a cryptocurrency trading platform.
Washington D.C-based firm, Rimon Law’s Marc Kaufman, pointed out that,
“I can’t think of one of the big banks anywhere in the world that has a patent that directly relates to a crypto exchange.”
RBC has been using blockchain technology for a while now, with the bank revealing in 2017 that it was utilizing the technology to facilitate cross-border payments between Canadian and American banks. According to the report, the bank has reportedly applied for four patents in Canada, as well as in the United States, while elaborating on how it would integrate digital assets into its operations. Last month, the patent application filed in the U.S became public, with the same focused on how banks could utilize the privileges of cryptocurrencies.
One of the patents read,
“To individual users, managing cryptographic keys and transacting with different cryptographic assets can be a challenge. In some situations, cryptographic asset transactions may take time to be confirmed, and/or may not be compatible or supported by merchant systems or point-of-sale devices.”
While Canada hasn’t affirmed the launch of its public digital currency, the bank’s latest move could be beneficial to the cryptocurrency ecosystem in terms of adoption.
Weekly Technicals – A mixed start
The cryptocurrency markets started the week with the mixed sentiment, as the prices of bitcoin dipped to 8700 areas over the weekend before rebounding to 9000 levels. That came two weeks after the massive rally that sent the leading crypto from 7300 to 10500. We’ve only seen muted actions during the early Asia session on Monday. JJ Kinahan, Chief Market Strategist at TD Ameritrade told Bloomberg that bitcoin is going to remain range-bound for a while, and markets seem to be uncertain about what would bring bitcoin prices out of that range.
We’ve seen green across the board in the altcoin space, as major altcoins jumped about 3% during the early session. XLM outperformed its altcoin peels, as the burning of 55 million XLM tokens could continue to be a key driver of XLM in the short term.
What You Missed
- We’ve seen more central banks are opening its interest in having its digital currency, and Hong Kong is one of them. The HKMA said it has been studying the application of a CBDC and will release a report by 1Q20. That came after the SFC introduced a regulatory framework for crypto-asset exchanges in the city.
- Zhou Xiaochuan, the former governor of PBoC believes that the IMF should take over Facebook’s Libra project. During a finance conference, Zhou said: “People will question the motive of Libra as it’s initiated by a private company, it works better if it’s in IMF’s custody”.
- The trade volume of Bakkt’s bitcoin futures has hit a new all-time high. The exchanged has recorded a volume of over 15 million USD on Friday, representing 1756 BTC worth of contracts have been changed hands
- Ethereum Istanbul upgrade is getting more likely to launch on December 4. Ethereum core developer Peter Szilágyi said the upgrade is targeted for the early December launch, and it expects to make the network more secure and efficient.
Price Analysis – BTC/USD
- BTCUSD has rebounded to the lower 9000 levels after the weekend dip. Indicators show some mixed signals here.
The pair have briefly traded below the 23.6% Fibonacci Retracement before rebounding and still well above the June-October downtrend (green line). We believe the mid/long term outlook could still be positive if the price remains above that channel.
- However, the ultimate oscillator broke the recent uptrend, signalling a shift in the momentum could have been taking place, and the bias more to the downside.
- The +DM line has ticked up while the -DM line has slowed down a little. This could mean the positive momentum has picked up but only slightly.
- OKEx’s BTC Long/Short Ratio suggests that short positions have higher potential profit than longs, suggesting a long squeeze could be possible.
- CME’s CoT shows that institutional asset managers have cut back some of their long positions, it could be driven by profit-taking activities after the massive rally. At the same time, short positions in asset managers and leveraged accounts have increased.
Figure 1: BTCUSD Daily Chart(Source: FX Street)
Figure 2: OKEx BTC Long/Short Ratio (Source: OKEx)
Figure 3: CME Bitcoin Commitment of Traders Summary (Source: CME)
- XRPUSD has been moving in a 4-hour ascending triangle pattern since late September, and the recent price actions suggest that a rebound could be in the making, as the pair has recently been trading near the lower end of the triangle.
- The RSI also rebounded slightly after touching the 30 levels. We’ve seen the price rebounded after the RSI touched or went below 30 in late September and late October, let’s see if that will repeat this month.
- Also, the pair has touched the lower end of the Bollinger bands before slightly drifting upward, suggesting the pair has been recovering from the previous oversold.
Figure 4: XRPUSD 4-Hour Chart (Source: FX Street)
- XLM bulls may want to wait a bit longer before entering the market despite the pair still largely in an upward channel and supported by the token burn.
- The RSI confirmed the top twice as it surged to above the 80 levels, and the RSI remains relatively high, this could indicate that bias to the downside persists.
- Furthermore, the ultimate oscillator seems to divergence with the price recently, suggesting that a correction could be possible.
Figure 5: XLMUSDT Daily Chart (Source: OKEx; Tradingview)
- DOGEUSDT could continue to rally as the pair traded toward the 78.6% Fibonacci Retracement. In our October Global Markets Review, we’ve noted that coins and tokens that shown lower correlation with bitcoin generally outperformed its peels, and Dogecoin was one of them.
- As the price moves upward, the pair has touched the upper end of the Bollinger Bands, it indicates that the pair could be oversold.
- The ultimate oscillator also suggests an oversold situation, and a correction could be due in the short-term, but it could represent an ideal entry point.
Figure 6: DOGEUSDT Daily Chart (Source: OKEx, Tradingview)
This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.