Connect with us


Nasdaq hints at investment in cryptocurrencies after the launch of Bitcoin and Ethereum Liquid Indices




Nasdaq hints investment in cryptocurrencies after the launch of Bitcoin and Ethereum Liquid Indices
Source: Unsplash

Nasdaq, America’s second largest stock exchange, recently launched liquid indices of Bitcoin [BTC] and Ethereum [ETH]. These liquid indices aim to provide a real-time spot or reference rate for the price of 1 BTC and 1 ETH respectively, quoted in USD, based on the most liquid ends of their markets.

Nasdaq recently shared a blog by which speculated if this was the right time to invest in cryptocurrencies. It speculated about how the fall of Bitcoin’s price from its all-time high of $20,000 to a mere $3,700 could be an “attractive entry point” for individuals or investors looking to invest.

Although the cryptocurrency ecosystem was infested by scammers through ICOs in the past, such incidents fell in number due to the involvement of the U.S. Securities and Exchange Commission [SEC]. The article also stated that cryptocurrency investment could be risky and that one should do thorough research before investing in it.

It stated,

“If you’re interested in growing your wealth over time or maximizing your return, crypto shouldn’t be your go-to solution. Instead, it’s much better to prioritize optimizing your saving and spending habits, and making use of several types of investments to diversify your holdings.
Crypto is also intended to be used as a currency—that is, exchanged for goods and services, rather than simply held to achieve gains—though it’s certainly possible to treat it as an investment.”

Moreover, the article also elucidated that peer-to-peer exchange of value was simplified thanks to cryptocurrencies, while briefly touching on the upcoming developments which are on the horizon including, Bakkt, Bitcoin ETFs, etc.

The article concluded by stating that the price of cryptocurrencies fell by 80% from its all-time high and that there is still room for cryptocurrencies to grow in the upcoming future, be it the prices or the technology and that “this could prove to be a valuable time to enter the crypto market.”

Subscribe to AMBCrypto’s Newsletter

Follow us on Telegram | Twitter | Facebook

Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.


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




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