Bitcoin’s Low Volatility, Bakkt (Almost a Unicorn), China’s Crypto Rankings | Crypto Markets

Bitcoin’s Low Volatility, Bakkt (Almost a Unicorn), China’s Crypto Rankings | Crypto Markets


Bitcoin is seeing low volatility at the moment
and this is, generally speaking, a good thing for crypto. The more the volatility the less it’s able
to be used as a store of value. So to see these type of flat movements is,
at the end of the day, good thing. Is it fair value by nature? Yes. I mean there was a report from Bitwise
over the weekend which showed really the nature of Bitcoin volumes. And generally speaking, the end result of
the report was that by nature Bitcoin has a very good way of finding true value, that’s
based on market pricing. So, if the market is at a specific level, and specifically when it’s trading at a specific level
for an extended period of time, then we can say that yes,
it is at true value. Last week the Fed came out in strong support
of the financial markets but they’ve been in strong support of the
financial markets for about 10 years. We’ve seen a very large correlation when the
Fed is supportive of the markets. The stocks tend to go up over the course of 2017,
we saw that correlating very strongly with Bitcoin. And then 2018, when they were
less supportive of the markets. The stocks fell and so did Bitcoin. So the fact that they’re supporting right
now is overall a good sign, it means that there’s more liquidity, there’s more available
money for investments that can go into the crypto market. The question is how far do they take it, because
already today we can see the market starting to decline a little bit. There is a danger here of the Fed overstimulating
the markets and, in that case, there is a possibility that the stocks can come down. If investors start to not believe
in that narrative anymore and at that point we would need
to see how the cryptos react. So, the jury is still out. Bakkt’s extremely large valuation is, in
my mind, a vote of confidence for the crypto market from the incumbent Wall Street
financial institutions. Bakkt is kind of the Wall Street solution
for storing and spending cryptos. They want to make it a lot easier for people
to pay with crypto at the supermarket and to hold crypto in a custodial service. Because they have this high valuation is basically
an indication that Wall Street wants to see crypto succeed and they want
to be a partof that. More or less their services include having
a futures market and possibly a debit card where you can spend crypto. We’re not quite sure yet. And we’ve seen significant delays. They were supposed to be live in mid-December. They then changed that to mid-January and
at the moment they don’t have a live release date. So we can see is that most likely due to regulatory
hurdles they’re having a little bit of issue coming online, but confidence is high that
they will be able to overcome those issues. The CFTC says that this is already one of the most
prominent things that they’re working on at the moment. So hopefully we get some
good news pretty soon. As soon as the CFTC and the SEC sign off, I’m pretty sure that Bakkt would be
ready within a week or two. We can definitely look at the rankings and
maybe learn a little bit from it. Overall though, I would say this is not the
definitive source of information that we should go to, for crypto is kind of like taking
fashion advice from Ali G. You know, China, the Chinese authorities ostensibly
banned crypto trading in the country. So it’s a bit strange that they are the ones
who are trying to put out now reports on which cryptos are better than other cryptos. The fact that Bitcoin is at number 14 is also
very telling, where most crypto participants these days would say that Bitcoin
is the dominant player. They’re putting it way down on the list. This episode is sponsored by Trade Santa. Trade Santa is a cloud-based trading bot. Set it up in less than 2 minutes, trade multiple
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4 thoughts on “Bitcoin’s Low Volatility, Bakkt (Almost a Unicorn), China’s Crypto Rankings | Crypto Markets”

  • Hotsauce is Lethal says:

    Market bottom is in and even if it weren't your downside risk is seriously outweighed by your upside potential growth.

  • "Market Analysis" or "Smoke & Mirrors", take your pick. All the charts and candles and lines cannot predict human emotions which keeps ALL markets alive with change and uncertainty. Never count crypto out, it is building once again and this time without all the hype.

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