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Even Financial Professionals Say Bitcoin to Outperform S&P 500 101
Source: iStock/Marta Ortiz

Almost 50% of surveyed financial professionals think that, over the course of the next year, Bitcoin (BTC) will outperform a popular stock market index, S&P 500. And while many of them still avoid cryptocurrencies, majority believe there will be a global digital currency in the next decade.

Crypto volatility is not killing the crypto industry in the eyes of many financial professionals as, according to the latest survey by blockchain analysis company Chainalysis, 48% of these professionals believe that in the next 12 months, BTC will be the investment class with the highest growth rate – surpassing even S&P 500, which tracks the stock performance of 500 large companies listed on stock exchanges in the U.S.

Which of the following will have the biggest growth rate over the next 12 months: Bitcoin, the S&P 500, the Bloomberg Barclays Bond Index, or the House Pricing Index?

Even Financial Professionals Say Bitcoin to Outperform S&P 500 102
Source: Chainalysis Survey

Chainalysis polled finance professionals working at banks, credit unions, financial services providers and regulatory agencies, in September 2019, collecting a total of 350 responses. Besides their above-mentioned conclusion, they found that simply recognizing the value of crypto is not enough, as more than 78% of survey respondents stated that less than half of their retail clients transact with cryptocurrency businesses. Meanwhile, 28% percent said that between 1%-10% of their customers transact with cryptocurrency businesses, and for one third that percentage is zero. Additionally, 13.5% of respondents also said that they didn’t know whether any of their customers had purchased cryptocurrency.

Nonetheless, 70% of all the surveyed respondents believe that in the next 5 or 10 years, there will be a global digital currency, controlled by the U.S. (37.2%) or China (21.2%) – which the analysts find logical as the former controls the world reserve fiat currency, and the latter is getting more involved with blockchain. However, 29.9% of the respondents find that the global digital currency will be decentralized.

If we were to have a global digital currency in the next 5-10 years, who do you think is most likely to control it?

Even Financial Professionals Say Bitcoin to Outperform S&P 500 103
Source: Chainalysis Survey

Michael Gronager, co-founder and CEO at Chainalysis, said that, while blockchain can actually help professionals in the financial industry to monitor transactions, detect criminal activity, mitigate risk, promote transparency, and offer new options to their clients, they’re reluctant to use it. “Many finance professionals understand that cryptocurrency presents a massive opportunity,” he said, “yet institutions are hesitant to enter the market due to perceived risk and some don’t even realize the exposure that they already have to cryptocurrency.”

As to the number one reason behind this reluctance to work more with crypto:

  • 39% of the respondents stated “the inability to control for illicit activity facilitated by cryptocurrency”
  • 25.1% said that the market opportunity isn’t big enough
  • 17.9% said lack of executive support
  • 17.9% cited inability to comply with regulations.

This the analysts find to be “more a problem of education than capability” of the financial industry.

That being said, as to the motivating factors to get involved with crypto, the professionals responded:

Even Financial Professionals Say Bitcoin to Outperform S&P 500 104
Source: Chainalysis Survey

Chainalysis says that it’s even possible that institutions have the demand but they don’t realize it, given that an earlier poll by YouGov, London-based international research data and analytics group, found that 81% of surveyed Americans know about at least one crypto, that 18% of Americans have bought at least one type of crypto, and that for millennials, that number goes up to 35%.

“Financial institutions are a critical component to the cryptocurrency ecosystem,” said Jonathan Levin, co-founder and Chief Strategy Officer at Chainalysis, adding that the company’s own “belief in the potential of cryptocurrency was echoed by the number of finance professionals who view Bitcoin as a high-growth asset class and envision a global digital currency in the near future.”

At the moment of writing (9:45 UTC), BTC is trading at USD 8,754. It dropped by 1.2% in the past 24 hours and by 5.12% in the past week.

Sead Fadilpašić , 2019-11-11 10:39:35 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

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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