Broader adoption of cryptocurrencies - the subject of intense speculation and debate among investors and financial-industry regulators alike - might be inevitable.
That's the conclusion of Germany's biggest lender, Deutsche Bank, in a new research report looking at unexpected investment trends that might emerge over the coming decade. "While critics bemoan cryptocurrencies as constrained by regulatory hurdles, we believe the incentives of governments and card providers are such that digital currencies are inevitable," writes Jim Reid, Deutsche Bank's head of fundamental credit strategy and thematic research. The report notes that cryptocurrencies so far have been additions to the global inventory of money, rather than substitutions, but that could change by 2030.
Cryptocurrencies offer benefits such as security, speed, low fees, ease of storage and relevance in the digital era, the bank says. Big economies including China are reportedly pushing forward with their own digital currencies. And many retailers now prefer digital payments as a way to avoid counting bills, sorting through change or dealing with bank lines, as well as a means to preventing theft.
The number of blockchain wallet users could more than double to 200 million by 2030, Deutsche Bank estimates. Overcoming regulatory hurdles will broaden the appeal of cryptocurrencies and "raise the potential to eventually replace cash," according to the report. Such an attitude shift could play into investors' ongoing doubts about the sustainability of government-backed money. Inflation could become "more embedded in our system" as authorities struggle with record levels of debt, the bank writes. "That’s the multi-trillion dollar (or bitcoin) question for the decade ahead," according to the report, which was first reported by Bloomberg News.
Deutsche Bank didn't include any projections for bitcoin's price in 2030. |
Bull-Bear Stalemate Continues
BTC: Price: $7,400 | Market cap: $134 Billion | 24-Hr Volume: $17.7 Billion
Short-term trend: Neutral The bull-bear stalemate continues with prices trapped between key levels of $7,087 and $7,870. A move above $7,870 is needed to invalidate lower highs setup and revive the short-term bullish view.
The recent lows near $6,500 will likely come into play if the support at $7,087 is breached, reinforcing Wednesday's bearish hammer candle.
Currently, bitcoin is looking heavy, having spent last 32 hours struggling to breach the downward sloping 100-candle average on the 4-hour chart. So, the probability of a move lower to $7,087 is high.
Long-term trend: Neutral
Bitcoin has found acceptance below the 50-week MA – a cause of concern for the bulls. Historically, the cryptocurrency has suffered deeper losses after falling below the key average. The monthly MACD histogram has also dropped below zero, confirming a bearish reversal.
Even so, the outlook remains neutral, as the miners’ reward halving, usually a price-bullish event, is due in May 2020. Further, the monthly MACD is a lagging indicator.
With BTC looking oversold on the daily chart, a notable recovery ahead of the supply-cutting event can’t be ruled out – more so, as the 50-week MA looks set to cross above the 100-week MA next week. That would be the first bullish crossover in more than three years.
It's worth noting that the previous bull cross had marked the start of a long-term bull market. The cryptocurrency picked up a strong bid near $430 following the bull cross confirmation in May 2016 and charted its way a record high of around $20,000 in December 2017.
That said, the outlook as per the weekly chart would turn bullish only if and when prices break higher from the five-month long bearish channel.
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Kyber Network Boosting On Fundamental Event KNC: Price: $0.23 | MCAP: $43.7 million | 24-Hr Volume: $3.3 million
Short-term trend: Overbought KNC is currently up 33 percent over a 24-hour period, Messari data show, potentially on speculation ahead of an event known as Crypto Trends 2020 in Ho Chi Minh City in Vietnam, scheduled for Dec. 8.
The event will feature speakers and experts from a number of lesser-known cryptocurrency projects including the Kyber Network.
Kyber Network is an Ethereum-based protocol focused on aggregating liquidity and facilitating swaps for ERC-20 tokens.
The daily RSI, a trading tool used to gauge investor sentiment and momentum, has hit a region of overbought above 70.00 and is signaling potential for a pullback to a prior region of resistance at around $0.20. Long-term trend: Neutral
Prices have broken through a 62-day downtrend, disrupting the token's longer-term bearish market structure and offering up a potential for a reversal play should prices resume above $0.20.
Further down the road, prices will need to close firmly above $0.24 (Sept. 18-19 highs) in order to shore up investor confidence for a continuation in its price, lest it suffers from further major sell-offs.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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