3 Reasons Why Investors are Still Bullish on Crypto
Since topping out at $13,800, Bitcoin has taken quite the beating and investor sentiment appears to be on the verge of turning bearish. While the $4,500 drop from $13,800 to $9,300 is disheartening, one must zoom out and take a birds eye view of the situation.
In 2018 Bitcoin broke down all the way to $3,100 and many analysts were predicting that the digital asset would drop below $1,600 before the year ended. Fast forward to the present and Bitcoin has gained more than 300% in just under 6 months! This amazing rally goes against the investor consensus that Bitcoin would not gain above $10,000 until at least Q1 or 2020.
One must look past past technical analysis of Bitcoin’s price action as this is primarily a short-term observation. Generally, crypto supporters remain bullish on cryptocurrency and this is due to the massive developments taking place in the sector.
Let’s look at 3 reasons why investors are still bullish on cryptocurrency.
Bakkt receives CFTC approval to launch on September 23
Bakkt’s Bitcoin Futures exchange recently secured authorization to launch from the Commodity Futures Trading Commission (CFTC) and the exchange plans to launch on September 23. As has been widely reported, Bakkt sets itself apart from its sector competitors by offering Bitcoin futures that are physically settled in Bitcoin on a daily basis.
The exchange will also offer custodial services for clients requiring a bulletproof method for securing their digital assets. The firm also has instant name recognition and credibility due to their association with the Intercontinental Exchange (ICE), which also happens to be the same company that owns the New York Stock Exchange (NYSE).
This week Bakkt announced that they will begin accepting Bitcoin deposits starting on September 6. Many analysts believe the platform will function as a fiat on-ramp into Bitcoin for institutional investors and traders expect an increased inflow into Bitcoin.
The increased inflow should translate to higher volumes of Bitcoin being traded and everyone is hopeful that Bitcoin’s spot price will be positively impacted by Bakkt’s launch.
Litecoin plans to launch a LTC-based debit card by Q4 2019
Earlier this year, the Litecoin Foundation revealed that it was working with Terino and Bibox to launch a debit card who’s transactional currency was backed by Litecoin. Initially, the plan was to launch it in the U.S. first. However, with the new partners on board, the UK will now serve as a launchpad for the crypto-debit card.
Recently, a Ternio representative confirmed that the company aspires to launch the card before the end of Q4, 2019. Litecoin creator Charlie Lee said that the card would allow the foundation to help people realize their Litecoin on a daily basis. Assuming the project actually comes to fruition, this is fantastic news as crypto is in need of a successful ‘everyday use case’ story.
Interestingly, Litecoin is not the only blockchain startup focused on daily payments. The Emogi Network also offers users a fast, low fee, USDT and BTC paired cryptocurrency that can be used for payments, remittances and a store-of-value investment.
Currently the Emogi Network serves a user base of 6 million people distributed across Latin America, Turkey, Asia and the United States.
Binance unveils Venus project and is open to working with regulators
Binance, the world’s largest cryptocurrency exchange by daily volume, recently announced that it would launch “Venus” to compete with Facebook’s Libra cryptocurrency.
The exchange describes the project as an “independent regional version of Libra” and hopes to reshape the world’s financial system. The open source blockchain project will run on Binance Chain and will be used to develop localized stablecoins and digital assets pegged to fiat currencies.
Currently Binance Chain is active and supports stablecoins pegged to Bitcoin, Binance, and the British Pound. Since announcing its Libra project, Facebook has faced stiff criticism from lawmakers and financial regulators across the globe.
The European Union is investigating Facebook for potential anti-competitive behavior, and back home in the US regulators have asked for Facebook to stop development until the regulations are clear. Even in Switzerland, where Libra is registered, the central bank is discussing Libra with other regulators.
Unsurprisingly, Facebook appears reluctant to collaborate with regulators. Binance has taken a different approach and Binance co-founder He Yi said that the company would work with regulators from day one. Yi said:
“If we want to launch Venus in a country, we’ll make sure it complies with the regulations.”
Ultimately, Venus will focus on creating localized stablecoins, and it will be primarily geared towards non-Western countries.
The future looks bright for crypto
Real world use cases and products approved by global financial regulators is exactly what the crypto needs and it’s clear that this is the direction the cryptocurrency sector is moving in.
While Bitcoin’s value and price action are important, it won’t be the be all- and end-all. Greater growth and adoption of cryptocurrency and blockchain technology are what will propel the entire sector forward and work to Bitcoin’s benefit.
