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Update: Though it was informed by media that Coinbase which is one of the world’s largest cryptocurrency trading exchanges had acquired one of the most innovative digital assets brokerage firms Tagomi for the sum of $150 million, the exchange has denied this information.

As Coinbase VP of communications Rachael Horwitz noted, all this news is “100% false.”

Earlier sources indicated that a deal had already been in the works and it is only recently that both parties decided to finalize the acquisition. 

Tagomi which is a digital assets brokerage was started by former traders from Goldman Sachs and ex-employees from Union Square. The startup is reported to have raised about $28 million in funding from venture capital investors which include technology investor heavyweights such as Pantera and Morgan Creek. 

Being a startup within the digital asset space, it appears that Tagomi has what it takes to become a unicorn within the crypto space. Mark Bhagava CEO of Tagomi is well known within and outside the industry for being able to pull the kind of stunts that very few dare to do. Who else would partner with Binance.US strategically on liquidity days before its acquisition? Or who can get the scarcely available Bitlicense from the Department of Financial Services of New York? 

This indicates that the team at Tagomi is ready for the things that others aren’t doing at the moment and this will serve them along the line. Coinbase as an organization seems to be on a growth curve at the moment. This acquisition also brings quite a bit to the table for the premier cryptocurrency exchange as well. The introduction of the institutional side of its platform Coinbase Prime which is aimed at bringing institutional inflows unto Coinsbase’s platform already indicates that the cryptocurrency exchange is set to blow up exponentially come next year. 

Already, the fusion of Coinbase Prime and Tagomi will bring massive inflows from all sorts of institutional investors who will be willing to place their funds within the new ecosystem (with the addition of Tagomi as a key player of course). The kinds of institutional investors who will be willing to play hardball include but are not limited to hedge funds, family offices, individual retirement accounts (IRAs) and mutual funds to name a few.

This also creates some unexpected activity within the crypto space as moves such as this one will draw in new entrants. It also allows for further inclusion of the crypto space within the wider global financial system as an inclusion with these kinds of events occurring is a compulsory trend. 

Already, Tagomi has proved this with the recent introduction earlier this year of its lending and borrowing platform which allows institutional clients to borrow cryptocurrency assets just like anyone would borrow stock.

If these kinds of innovations continue at Tagomi, Coinbase would have made the acquisition of a lifetime as the exponential returns would far outweigh the cost of acquisition which has made many to hold their breaths at such a sum.

Christopher Hamman , 2019-11-29 18:48:29 ,

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While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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