Connect with us

News

Bitcoin crosses strong $6,700 resistance, Bitrue: XRP, Bitcoin and other coins can soon be purchased using credit cards and more

Febin Jose

Published

on

Bitcoin crosses strong $6,700 resistance, Bitrue: XRP, Bitcoin and other coins can soon be purchased using credit cards and more

Daily Crypto News – May 11

1) XRP Ripple Liquid Index on Google: On April 29, Nasdaq announced the addition of Brave New Coin’s XRP Liquid Index on the Nasdaq Global Index Data ServiceSM (GIDS). It also announced that the index would be live on May 01, however, the index, at press time, wasn’t accessible on both Brave New Coin and on Nasdaq. But an interesting revelation was the fact that the index showed up in a Google search.

Read more at https://bit.ly/2JyxK62

2) Bitcoin [BTC] total market capitalization crosses $200 billion: With Bitcoin surging over $6,000 and only days later, on the verge of breaking the $7,000 mark, the bulls of previous year’s rallies have been re-awakened. On the back of this massive rally, the collective market capitalization skyrocketed over $200 billion for the first time in almost six months.

Read more at https://bit.ly/2vO7cpo

3) 20 million USDT transferred: Two massive transactions involving Tether were recorded, moving in and out of Huobi, a Chinese exchange. The first transaction transferred 10 million USDT from 1FwWBMfwxE9ngQ5DJKHFQsZ1wqpfD1sjpk to 1EPDc4Cw4xiqsoWCHnWepfwbqWLcBFamwm. The sender had a balance of 22 million USDT, while the receiver had zero balance and this transaction took place on the Omni Explorer.

Read more at https://bit.ly/2vSZU3K

4) FinCEN releases new guidance document: In a recent development, the Financial Crimes Enforcement Network [FinCEN] published a thirty-page document guiding financial institutions to comply with current regulations while interacting with digital assets, and further analyzed activities and entities that come under their jurisdiction.

Read more at https://bit.ly/2VeH29q

5) Fidelity will stick to top cryptos like Bitcoin or XRP: The sudden movement in Bitcoin prices has added fuel to the cryptocurrency market’s excitement, with many in the space speculating that the bear market may have finally come to an end. In the latest Crypto Trader episode, Ran NeuNer sat down with Frank Chaparro, Senior Correspondent at The Block and Anthony Pompliano, Founder of Morgan Creek Digital Capital, to talk about Bitcoin’s price changes and other developments in the industry.

Read more at https://bit.ly/2LEGM46



6) Bitcoin’s [BTC] bull run may have started: Bitcoin has been in a bearish downtrend for over a year, but the recent and the sudden rise in prices has caused FOMO among hidden bulls, pushing the price even higher. Vinny Lingham, the CEO of Civic Key and a Bitcoin enthusiast tweeted his views on the current rally and the next possible bull rally.

Read more at https://bit.ly/2JhfTRR





Subscribe to AMBCrypto’s Newsletter




Follow us on Telegram | Twitter | Facebook



Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.

News

JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise

Avatar

Published

on

JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:



“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending