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Here’s a bank saying Bitcoin could reach $650,000 …. or it could fall (yes, really)

Scanning across some bank pieces, this from JP Morgan:

  • Alternative ‘currencies’ such as Gold and Bitcoin have been the main beneficiaries of the pandemic in relative terms growing their assets (for investment purposes) by 27% and 227%, respectively” 
JPM then go on to say that if investors (and in particular increased institutional adoption) continue to pour into the crypto the price could reach $650K US
On the other hand say JPM, a slow down in funds coming into BTC could trigger a price correction lower.
There you go ….
BTC update:
Scanning across some bank pieces, this from JP Morgan:

Singapore bank DBS starts currency and crypto exchange

A digital exchange, which is being touted as the first for trading fiat money and cryptocurrencies with backing from a traditional bank in Singapore, was launched on Friday.

The full-service platform uses blockchain, or distributed ledger technology, to allow traders to exchange four currencies — Singapore, U.S. and Hong Kong dollars, and the Japanese yen — for four cryptocurrencies: Bitcoin, Ether, Bitcoin Cash and XRP.

Hosted by Southeast Asia’s largest lender, DBS Group Holdings, the DBS Digital Exchange will also function as a regulated platform for the issuance and trading of digital tokens backed by financial assets, such as shares in unlisted companies, bonds and private equity funds.

DBS has received approval in principle from the Monetary Authority of Singapore to operate organized markets for assets such as shares, bonds and private equity funds. It is also allowed to operate the platform for the exchange, according to the bank.

The Singapore Exchange has taken a 10% stake in the DBS Digital Exchange, and the two will explore opportunities to deepen the liquidity, scale and growth of the city-state’s capital markets for digital assets and currencies. (more…)

Fundamental valuation of Bitcoin is USD 400,000

Guggenheim Global Chief Investment Officer Scott Minerd comments on Wednesday in a Bloomberg interview

(Scott Minerd is the chief investment officer for $5.3bn Guggenheim Macro Opportunities Fund)
  • says his team’s fundamental work suggests Bitcoin should be worth $400K
  • “It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”
Its no secret the fund likes BTC, this from about 3 weeks agaio:
  • A Guggenheim fund may invest up to 10% of assets in bitcoin
BTC has been on a roll, fresh highs Wednesday US time:
  • Bitcoin breaks above $20,000 for the first time ever.
And, its gone higher since:
Guggenheim Global Chief Investment Officer Scott Minerd comments on Wednesday in a Bloomberg interview

JP Morgan lay out a scenario where demand for bitcoin surges an additional $600bn

JPM comments on the crypto, comes via a Bloomberg report, citing a recent $100m investment in Bitcoin by Massachusetts Mutual Life Insurance Co.

JPM say this highlights the potential for additional institutional demand in coming years
  • suggests adoption of Bitcoin is spreading from family offices and wealthy investors to insurance firms and pension funds
Says that even a small allocations toward the cryptocurrency could be significant
  • “MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors”
More from the note:
  • If pension funds, insurance co.s across developed markets (US, eurozone, Japan) allocate 1% of assets to Bitcoin, that would result in additional Bitcoin demand of $600 billion (compared to the current market cap around $356 billion – Bloomberg citing CoinMarketCap.)
JPM add a caveat:
  • these traditional investors face regulatory hurdles relating to risk levels and liability mismatches which would limit their investment into BTC.
JPM comments on the crypto, comes via a Bloomberg report, citing a recent $100m investment in Bitcoin by Massachusetts Mutual Life Insurance Co. 

A Guggenheim fund may invest up to 10% of assets in bitcoin

Via Bloomberg comes this piece on the Guggenheim Macro Opportunities Fund:

  • “The Guggenheim Macro Opportunities Fund may seek investment exposure to Bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust”
Bloomberg citing a filing Friday to the US Securities and Exchange Commission.
That Grayscale Bitcoin Trust shares are solely invested in Bitcoin. “Except for its investment in GBTC, the Fund will not invest, directly or indirectly, in cryptocurrencies,”
BTC update:
Via Bloomberg comes this piece on the Guggenheim Macro Opportunities Fund: 

Bitcoin over $19,000! Ethereum and Litecoin record fresh 2020 highs

New highs for cryptocurrencies

PB
Ethereum and Litecoin prices peaked at new highs as public interest in cryptocurrencies continues to soar. These digital coins joined Bitcoin’s surge towards $19,000 in the recent strong trends.

Ethereum hit $623 this week. It’s up by a massive 384% since the beginning of the year. The uptrend is impressive, but it’s still far from the all-time high of $1500 in January 2018. Ethereum is the world’s second-largest cryptocurrency next to Bitcoin. Litecoin also doubled in value this month alone and peaked today at $90, a fresh 2020 high with a 117% YTD gain.

According to analysts, the crypto surges are due mainly to the strengthening status of Bitcoin as an inflation hedge. Bitcoin, the known king of crypto, is up by 160% this year to date. It’s trading at $19,285 as of writing and is a thread line away from the all-time high of $19,667 last 2017.

PB2Bitcoin nears all-time high at $19,667, PrimeBit WebTrader (more…)