Yes, today Bitcoin (BTC) may have rejected the $ 11,100 resistance level, causing a sharp 6% drop. Nonetheless, the Bloomberg intelligence analyst looks beyond the immediate and sees upside potential for Bitcoin.
Bitcoin could soon enter an uptrend
Mike McGlone, a Bloomberg strategist, used his social media earlier today to talk a bit about Bitcoin and examine its upside potential.
In this way, and to be more specific, McGlone defined Bitcoin as a prominent fixed supply asset that will become the main beneficiary of the prices of stocks and bonds.
Bitcoin has an advantage over the rest of the assets. Guess what it is? Of course! Your fixed supply.
These characteristics allow that the total offer of the crypto is always known and, consequently, future forecasts can be more accurate since only demand intervenes in its valuation.
And, curiously, McGlobe’s opinion does not come in isolation. According to CoinTelegraph, a Delphi Digital report was released on September 21 highlighting unique trends in BTC price action.
So the report found that the uptrend experienced by Bitcoin in 2020 appears to be much more sustainable than the one we saw in 2019. In this regard, it appears that the leading crypto has managed to generate healthy demand.
Demand for Bitcoin increases
It seems that little by little those days in which we predicted an increase in institutional demand are behind us. In recent months we have seen how traditional companies have decided to turn to Bitcoin as a solution to the crisis.
Yesterday it was Evertas, a crypto insurance company, published an investigation suggesting that institutional investors plan to increase their focus on crypto assets in the next five years.
Yes, as they read it. The research surveyed 50 institutional investors who collectively manage more than $ 78 billion in assets in the United States and the United Kingdom. The results were very curious!
In short, 90% of those surveyed expect some increase in crypto holdings over the next half decade.
European Central Bank seems to understand CBDC but not crypto Stablecoin
The European Central Bank published a report where researchers explore crypto Stablecoins and their repercussions in areas such as monetary policy.
According to the ECB, Stablecoins can turn out to be “confusing, even misleading.” The argument to assert that is based on the fact that there are different types of Stablecoins.
And, furthermore, the ECB proposes that the term ‘Stablecoin’ be replaced by another terminology for “Divert emphasis from the issuer’s promise of stability.”
US banks can now store reserves for Stablecoins
The Office of the Comptroller of the Currency (OCC), part of the United States Department of the Treasury, confirmed today that national banks and federal savings associations can hold reserves for crypto issuers of Stablecoins.
“… Domestic banks can provide permitted banking services to any legal business of their choice, including cryptocurrency businesses, provided they effectively manage risks and comply with applicable law …”He pointed to the letter.
In a few lines
- Three power plants in Iran will build Bitcoin mining units using electricity generated from natural gas.
- Catherine Coley, CEO of Binance.US, described as ‘ignorant’ all those companies that decide not to join the crypto market.
- Crypto Exchange Zebpay He launched a campaign for Bitcoin that appeared on Disney Plus in India.
- Andreas Antonopoulos he pointed that the crypto market will be affected by the leak of documents by FinCEN.