CBX Weekly Newsletter // 27 November 2019
- Bitcoin Trading at $7K. Will it Hold?
- EU Launches Estimated €400M Blockchain, AI Fund to Avoid Lagging US, China
- Ripple Finalizes $50 Million MoneyGram Investment
Bitcoin Trading at $7K. Will it Hold?
Bitcoin has recovered from 6-month lows around $6,500, as key indicators were reporting extreme oversold conditions but also were indicating seller exhaustion. A recent bounce has jumped the price back to above $7K with the market rejecting the price around the mid $7Ks.
Although a bounce is expected, Bitcoin would need a close above $8,300 to invalidate the bearish scenario as we move closer to the end of the year. If this happens then the market for 2020 could start in a very similar way as this year.
The bullish scenario although less probable is definitely possible. If Bitcoin manages to break above $8,300 with strong volume and follow up, it would mean that a higher low has been set on the monthly timeframe and we could retest the highs of this year.
Other altcoins, especially Tokens coming from Asia had a rough week as well due to the recent news from China saying that the country wants to ban cryptocurrency trading. As many people know, most of the Cryptocurrency trading volume comes from Asia, specifically from China, which adds to the bad sentiment from the previous months.
EU Launches Estimated €400M Blockchain, AI Fund to Avoid Lagging US, China
The European Investment Fund (EIF) and the European Commission have set up a fund to compete against U.S and China on Blockchain and Artificial intelligence (AI) innovation.
Both entities have together put up €100 million (over $110 million) for a dedicated investment scheme that will make capital available to AI and blockchain projects via VC funds or other investors, EIF, an EU agency set up to indirectly fund SMEs, said in a blog post on Wednesday.
Private investors are expected to invest over €300 million ($331 million) into the fund. Although, it could ultimately raise up to €2 billion ($2.2 billion).
By the means of this fund, European investors will have access to a portfolio of innovative companies that can boost the volume of innovation in the economic zone. The expected spending is expected to be over $674 million in 2019.
Ripple Finalizes $50 Million MoneyGram Investment
According to a filing with the U.S. Securities and Exchange Commission (SEC), Ripple, the company behind the token (XRP) in its final payment of $20 million of MoneyGram equity which completes a deal that first begun in June 2019.
With this deal, Ripple now owns just under 10 percent of MoneyGram’s outstanding common stock. Under the deal, Ripple would invest in the company only if MoneyGram agreed to utilize Ripple’s technology for cross-border payments and settlements.
According to the filing, MoneyGram will use capital inflow to support its operations, using Ripple’s On-Demand Liquidity product named xRapid which is a payment system that utilizes the XRP cryptocurrency.
Earlier this year, MoneyGram began using XRP to conduct transactions in Europe, Australia, and the Philippines, and currently transacts roughly 10 percent of its Mexican peso foreign exchange trading volume.
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