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Weekly cryptocurrency review #3

2 weeks ago

Another stock exchange is working on the introduction of the Bitcoin futures

The largest stock exchange in the world, the New York Stock Exchange (NYSE), is working on the introduction of a platform offering bitcoin futures. The InterContinental Exchange, a daughter company of the New York Stock Exchange, together with Starbucks, Microsoft and BCG develop an internet platform called "Bakkt" to buy, sell, store and issue cryptocurrencies.

The owner and operator of NYSE believe that Bitcoin is waiting for a bright future and therefore decides to take this step:

"By providing regulated, connected infrastructure along with institutional and consumer digital asset applications, we strive to build confidence in the asset class on a global scale, in line with our past achievements in transparency and trust in previously unregulated markets," said Jeffrey C. Sprecher, founder, president and CEO of the Intercontinental Exchange.

The Bakkt platform will aim to enable retail and institutional clients to buy, sell, store and publish digital content smoothly. In addition, the creation of a platform for the purpose of increasing the trust, efficiency and trade of cryptocurrencies, in other words, Bakkt strives to develop a professional connection between the existing market infrastructure and blockchain technology.

It is worth recalling that two other American exchanges CBOE Global Markets and CME Group have introduced Bitcoin futures into their offer earlier this year, but in their case, the contract is settled in US dollars. In the case of the Bakkt platform, the target currency for the settlement of the futures contract is Bitcoin and this is a significant difference between the individual exchanges.

Goldman Sachs pessimistic about Bitcoin

Despite the upcoming positive changes related to Bitcoin, big steps, one of the largest investment banks in the US has a rather pessimistic approach to the current and future situation. The last report of Goldman Sachs' investment strategy group on the economic outlook predicts that the BTC price will probably fall even more:

"Our view that cryptocurrencies would not retain value in their current incarnation remains intact and has actually been confirmed much faster than we expected," said the team led by Sharmin Mossavara-Rahamani, investment director.

And he adds:

"Given our view that virtual currencies do not meet any of the three traditional currency roles: they are neither a means of exchange, nor a unit of measure, nor a value store, we expect further declines in the future."

Another American bank, UBS, equals Goldman Sachs with a level of pessimism and states that despite the fact that Bitcoin is almost 10 years old, it can not become mainstream money because it is too unstable. Joni Teves, the UBS strategist, wrote in a recent note for clients:

"Bitcoin is still too unstable and limited to become a real means of payment for global transactions or a real asset class. Due to the lack of price stability, Bitcoin does not meet the criteria that must be met in order to be considered money. "

UBS, however, sees a light in the tunnel and does not exclude the replacement of the US dollar with Bitcoin in the future. According to the bank, this will happen when Bitcoin will have a much larger regulatory base with a special focus on customer safety and Bitcoin would have to achieve a valuation of $ 213,000 to replace the US money supply.

After the news from the world of large international banks, let's look at the technical situation on the BTC / USD pair on a daily basis. The last high at $8,889 was drawn by the market on July 24 and since then the bears have taken over control of the market again. Along with the deepening falls, the price knocked down further support levels at $7,406, $6273 and currently stopped at 61% of Fibonacci retracement at $6,550. In addition, the price has hit the dynamic technical support offered by the trendline (marked in orange on the chart) and broke through it as well. If the declines are continued, the next target level for bears is the level of technical support at $5,541.