Several major catalysts for Bitcoin and cryptocurrencies
(Boursier.com) - Several catalysts could come to support the cryptocurrency, after the recent fall which saw flying over $ 70 billion of capitalization in ten days in the digital currency markets. In particular, 'MarketWatch' recalls that fans of crypto-currencies and blockchain will gather in New York during the conference 'Consensus 2018' organized by CoinDesk. The conference is held from May 14th to 16th. It will have more than 4,000 participants.
Last year, the craze around the Consensus conference had boosted Bitcoin prices by ... 69%, according to Fundstrat Global Advisors, quoted by MarketWatch ... There is obviously nothing to say that the BTC is able to reiterate such a performance, but this event should attract the greatest interest.
The recent purge observed on the main cryptocurrencies does not seem to deter the big names in the financial industry. The inevitable Goldman Sachs has responded to the demand of its clients (hedge funds, foundations ...). The US investment bank now allows them to 'trade' futures on Bitcoin through one of its New York desks. This 'validation' of Goldman undeniably offers digital currencies additional legitimacy by facilitating institutional trading on Bitcoin.
Goldman Sachs is proceeding in a progressive and cautious way, raises 'Forbes'. Thus, the investment bank will initially not allow trading on the real Bitcoin, but will instead offer the possibility of trading futures contracts on Bitcoin.
Bloomberg and its partner Galaxy Digital Capital Management LP, a firm founded by Michael Novogratz, launch their cryptocurrency index, the BGCI (Bloomberg Galaxy Crypto Index).
The index is designed to track the performance of the largest and most liquid part of the cryptocurrency market. The BGCI is weighted according to market capitalization and measures the performance of ten dollar-traded currencies, including Bitcoin, Ethereum, Monero, Ripple and Zcash. The index is diversified, encompassing different classes of digital assets, including value stores, trading vehicles, smart contract protocols and confidentiality assets.
At the time of the announcement, Bitcoin and Ethereum each represented a weighting of 30%, compared to 14.14% for the Ripple, 10.65% for Bitcoin Cash, 6.11% for the EOS, 3, 77% for Litecoin, 1.67% for Dash, 1.66% for Monero, and 1% for Ethereum Classic or Zcash.
The creation of the index marks an important step in the evolution of the digital asset space, facilitating a diversified exposure as well as an independent comparative analysis for the investors, indicated the two partners.
The BGCI uses a rules-based methodology and data from sources that have successfully completed the due diligence processes of Bloomberg and Galaxy Digital Capital Management.
The Index is owned and administered by Bloomberg Index Services Limited and co-branded with Galaxy Digital Capital Management. As a new member of the Bloomberg index family, the BGCI offers the first institutional benchmark for the cryptocurrency market, the two firms say.
The main cryptocurrencies have collapsed for a week, especially undermined by the case Upbit. For example, South Korea's main trading platform was raided on suspicion of fraud. Bitcoin has dropped 10% for 7 days according to Coinmarketcap, back to $ 8,422. The Ethereum held up well, down only 4% over five days, but the Ripple corrected by 12%. Bitcoin Cash has plummeted 16%, EOS 25% and Litecoin 16%. The Cardano stumbled 21% over a week.
After the fever of the year 2017, then the fall observed between mid-December 2017 and early April 2018 on fears related in particular to the tightening of regulation, the main 'cryptos' had recorded a recent rebound quite large. Thus, Bitcoin had taken support on the $ 6,600 to return in early May to approach 10,000! Since then, things are getting complicated, even if financial institutions such as Goldman Sachs, Bloomberg or the Nasdaq market are now tempted ...
Last week, the comments of several market gurus had sealed the 'cryptos'. Warren Buffett, head of investment firm Berkshire Hathaway, said that bitcoin buyers speculated on the only hope of finding someone else to pay more than they ... The Omaha Sage resumed the comparison with the speculative bubble of tulip bulbs in Holland in the seventeenth century, and said that according to him, bitcoin was "dead-au-rat" and that its rise was based primarily on "fantasies" ...
Charlie Munger, the other Berkshire Hathaway guru, went even further, saying Bitcoin "worthless" and calling it "artificial gold". "The fact that it's a smart computer science does not mean it should be widely used, and that respectable people should encourage others to speculate on it," Munger summed up, still alive at 94. On CNBC, Munger said, "Now it's not something I think the world needs." Finally, Buffett's main associate has called bitcoin trading "dementia".
Bill Gates, the co-founder of Microsoft, also violently attacked cryptocurrencies this week. According to Gates, Bitcoin and other crypto-currencies would be a type of absurd investment. Bill Gates even assured that he would "shorten" Bitcoin if he found a simple way to do it.
Bill Gates admitted having already owned Bitcoin, someone offered him for his birthday. The founder of Microsoft would have sold everything a few years later. "As an asset class, you do not produce anything, so you should not expect it to increase, it's kind of pure 'investment idol theory'," he says. again launched Gates. The theory referred to by the leader states that the price of an object is not determined by its intrinsic value, but rather by irrational beliefs of market participants ...
In another register, Nvidia, giant of the graphic processors, specified in margin of its last quarterly accounts that the demand of the miners in cryptocurrencies had been stronger than forecast in the 1st quarter, resulting in revenues of 289 M $. Nevertheless, the group also warns that this turnover 'crypto' should collapse by two thirds in the current fiscal quarter.
On the 'business' side, the South Korean exchange platform Upbit has been the subject of a search, carried out by local authorities following accusations of fraud. Thus, this major Korean platform is under investigation. On Thursday and Friday, the Korean authorities raided his offices. Upbit says it cooperates with the authorities. The firm ensures that the assets of its customers are safe. Transactions and withdrawals would always be possible.
Upbit is the first South Korean platform by exchange volume and the fourth in the world, according to the data of Coinmarketcap.com ... Also remember that South Korea is now active, so clean up the digital currency industry and fight illegal activity or speculation.
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