Bitcoin: to the moon

Arnaud Masset Swissquote Bank Ltd

The price of Bitcoin broke another record yesterday as it crosses the symbolic $10,000 threshold. Not content to stop here, Bitcoin continued to rally during the Asian session and tested the $11,000 level. The pace of Bitcoin appreciation has accelerated recently as both institutional and retail investors keep piling into the crypto market. The likelihood of a bubble doesn’t scare anyone.

I think that there is plenty of room for further Bitcoin appreciation. There are actually several reasons. Firstly, although institutional investors already have a foot in the crypto space, the inflow of money if far from over as many big players haven’t move yet. The arrival of CME and CBOE derivatives will just make BTC investing much easier and will encourage skittish investors to take the leap. Secondly, several key projects, such as Rootstock or Lightning Network, which are built on the top of Bitcoin, that aim as improving Bitcoin’s scalability will be released soon. Finally, people are claiming that Bitcoin and crypto assets in general are in a massive bubble. Just before the dot-com bubble popped in March 2000, the market capitalization of Nasdaq hit $6.7 trillion. AS of this morning, the total market capitalization of crypto assets stands at $330 billions…

Stay on top of the markets with Swissquote’s News & Analysis

However, one should keep in mind that there would be most likely a clean-up in the crypto space next year. Many blockchain projects will just simply not make it.

In my opinion, a correction sounds healthy, as the price of Bitcoin has been on a mad run for the last few months. Nevertheless, investors’ appetite is massive and any corrections will likely be short-lived, as investors would take advantage of the move to buy on a dip.

Author

Arnaud Masset

Swissquote Bank Ltd

Arnaud Masset is a Market Analyst at Swissquote Bank. He has a strong technical background and also works in the development of quantitative trading strategies.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.