OUR HISTORY DISCOVER CRYPTOCURRENCES NEWS AND UPDATES
The economic data released last week was worrying to say the least. Midweek figures showing a drop in exports from major Asian economies, such as Japan and South Korea, hit equity markets globally, causing the S&P 500 and FTSE 100 to drop significantly.
From a crypto asset perspective, however, Bitcoin and altcoins performed well during this difficult time. Bitcoin is in the consolidation phase, remaining stable between 6,000 and 7,000 dollars. There has been a strange spike, both up and down, but overall, I’m happy with the price solid right now. The Fed pursuing its policy of unlimited quantitative easing, buying assets from left to right and center, I think Bitcoin will push towards $ 7,500 in the short term.
Quarterly Reflections and Q2 Sneak Peek for Bitcoin
So what is happening to cryptos in this new quarter? The big event, of course, is the halving of Bitcoin, and the reduction of bulk rewards is now in little more than a month. The previous two halves has seen massive inflections in prices. May is likely to be no different. After halving, I think Bitcoin will hit highs of $ 20,000 by the end of 2020 / early 2021. This will precipitate an extended bull run, which could see Bitcoin reach $ 100,000 by the end. from 2021 / early 2022.
Halving the block reIn May, miners with less efficient equipment will fall, which will cause a decrease in hashrate and the Bitcoin ecosystem will become more efficient.
This initial drop in supply should exert upward pressure on the price. Combine that with the likelihood of inflation, resulting from quantitative easing around the world as governments and central banks struggle with the fallout from COVID-19, and the long-term outlook for Bitcoin looks pretty good.
It is also important to note that Bitcoin did not actually fall as the global markets did in this tumultuous first quarter of 2020. Cryptographic assets fell only 12%, surpassing the S&P 500 and the FTSE 100 which were down 23% and 25% respectively.
Will Ethereum finally evolve?
Ethereum is looking to implement sharding to solve its scalability challenge. This will divide the network into smaller fragments, allowing faster and more efficient transaction management.
I don’t see that this affects the price very much, as the overall dynamics of supply and demand, which usually leads to price changes, should not vary, but it is encouraging to see the Ethereum team looking to perform major logistical upgrades. This is a smaller step in the long term goal of the play, which is to move from proof of work to proof of putting.
Ripple could make waves
In the second quarter, Ripple seeks to continue to provide banks and payment service providers with demand liquidity. I sincerely believe that, if successful, XRP could be the first crypto asset adopted on a truly global scale.
The ongoing lawsuit between Ripple and the SEC continues to weigh on the company. Despite this, Ripple’s software developers have presented a proposal that would allow users to send private transactions to each other using the XRP registry. The importance of this, if successful, cannot be overstated, as it addresses one of the main concerns of private institutions regarding the use of crypto: transparency.
If the transactions on the XRP register can be private, this could give a great boost to the token used by institutional investors.
France says it’s good at CBDCs
Finally, no weekly newsletter is complete unless I focus on the subject of the year: the CBDCs. The French central bank has launched a call to arms for companies to help it in its research on the implementation of digital currencies. Of course, this is in its infancy, but the Banque de France is investigating how interbank settlements could be made using blockchain technology, what are the benefits for CBDCs and what potential effects they could have on stability, policy monetary and regulatory. This is a trend that will only accelerate during the rest of 2020.
The main crypto assets traded on eToro last week (UK customers only)
1. BTC 45.4%
2. XRP 19.5%
3. ETH 8.1%
4. BCH 3.6%
5. ADA 3.3%
6. XTZ 3.3%
The main crypto assets traded on eToro last week (all customers – worldwide)
1. BTC 52.4%
2. XRP 11.1%
3. ETH 9.0%
4. BCH 3.8%
5. XTZ 3.5%
6. ADA 2.7%
Simon Peters, eToro market analyst
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