Brad Garlinghouse and his team cause a stir in the crypto world, hinting Ripple IPO is a natural evolution for his company.
Today’s briefing sheds light on predictions, with crypto-experts predicting huge volatility in the crypto market while expert analysts predict an Ethereum surge back to the $200+ margin before the mid-term. We also dive into the possibility of Ripple Labs issuing out its very first IPO, and why others think the move is virtually impracticable.
Finally, we break down for you why the recent Litecoin bullish network activity is likely to cause huge valuation hikes in the coming weeks.
Following this week’s BTC’s movement to the lower margins of $8,200, Bitcoin bulls have started to generate heightened buying pressure. This comes as we approach Bitcoin’s monthly CME close, which, as historical data will tell us, is usually characterized by violent volatility that spans across the entire crypto market.
The high volatility in the crypto market is imminent, especially now with Bitcoin’s tightening trade range. While the 2020 uptrend forecasts a bolstering bullish trade, it is still unclear how it will affect both bulls and bears. Fortunately, popular Bitcoin Twitter commentator Joel tries to offer advice based on historical data surrounding the CME close monthly occurrence. A majority of the closes result in negative movements as he explains in his tweet:
$BTC— Joel (@JofDom) January 26, 2020
CME Monthly Close is on Jan 31
-71% of weeks approaching the close are negative.
-71% of Thursdays before the close are negative
-67% of closing days (Friday) are positive (71% if the week is negative, 82% if the day before is negative).
Volatility also tends to increase. pic.twitter.com/wilH0ljNLm
“BTC CME Monthly Close is on Jan 31 -71% of weeks approaching the close are negative. -71% of Thursdays before the close are negative. -67% of closing days (Friday) are positive (71% if the week is negative, 82% if the day before is negative). Volatility also tends to increase.”
Joel highlights Thursday and Friday as the days to watch as we approach the monthly CME close. It is, however, important to note that the majority of the sample data used came from a firm bear market, which typically favors sellers more than it does buyers.
The past week has seen Bitcoin, Ethereum, as well as other leading digital assets, begin to stall. Since the highs of last week, a majority of the digital assets have dropped by as much as 10%. Contrary to current market levels, a majority of analysts are staying posiAtive, predicting the outlook of some cryptocurrencies remaining bullish.
Renowned cryptocurrency trader Satoshi Flipper, notes relatively bullish signs from the weekly Ethereum chart, which saw ETH bottoming at $120. Flipper noted that Ethereum had broken out of a wedge structure, which previously used to constrain its price action for six months. The effect of this is an uptrend in the value of the cryptocurrency. Ethereum commonly assumes a bull trend toward its medium-term.
Flipper specifically referred to the Heiken Ashi candles, a charting technique that is commonly used to determine trends. As per the charts, the trends have turned green, marking the beginning of a medium-term bull trend. Check out his tweet below:
From the arrows depicted on the chart above, it’s predicted that the Ethereum could reach the $200 mark, albeit the absence of a concrete price target on the chart. The prediction stands true as altcoins tend to trace BTC, which has also started showing signs of an uptrend.
The CEO of Ripple Labs, Brad Garlinghouse, has been making headlines in the crypto world this week. He and other world executives graced the finance talks held at Davos, Switzerland. It was during the Wall Street Journal event that the Ripple exec announced plans of his firm going public along with a Tweet from Ripple’s SVP of Product and Corp Dev team Asheesh Birla.
“In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.” -@bgarlinghouse at #WEF20— Asheesh Birla (@ashgoblue) January 23, 2020
Garlinghouse explained his firm’s move in a series of tweets. In one, he explains that “I’m bullish on BTC as a store value, but not for payments. You don’t want to use BTC at Starbucks b/c by the time you get your coffee; it’ll be cold.” He uses this illustration to explain why he views the value of Bitcoin as store value and not a medium of exchange.
The idea of a Ripple IPO has been a welcome one in the crypto world, but not one without critics. One Jake Chervinsky, a lawyer in the General Counsel for the Ethereum DeFi app Compound, argues that the idea of a Ripple IPO is impracticable as its book value would be derived largely from a digital asset, which could be an unregistered security. We’ll have to wait and see how the Ripple exec plans to materialize his plan, possibly in the next 12 months.
In 2019, Litecoin saw a considerable amount of value transferred over its network. A report by BitInfoCharts placed the number at over $100 billion worth of LTC transacted over the Litecoin blockchain. This, is particularly interesting given that the Litecoin was in a bearish trend for almost half of the year.
LTC dived from a high of $147 in late June 2019 to $36 in mid-December. Despite the plummeting in the second half of the year, the Litecoin blockchain recorded approximately $200 - $300 million in daily transactions in the first 7 months of the year. During the same period, interest among the non-speculative investors grew significantly, covering about $100 million in transactions in one day with an average of 21,000 transactions. This brings the aggregate to $5,000 per transaction.
Historical data from the 2017 records show as much as over $5 billion in value of Litecoin transacted in a single day during the bull market of that year. Based on this data, experts conclude that the higher the price of LTC, the more the value transferred.
Current LTC charts show the LTC’s MACD (moving average convergence divergence) turns bullish, indicating the start of an uptrend in the value of Litecoin. Currently, the 200-week moving average serves as the resistance. Analysis from past data indicates that each time the Litecoin turned this moving average into support, a macro uptrend was triggered, causing a bull run in the Litecoin blockchain.
With BTC showing signs of an uptrend in the coming weeks, it is highly likely that LTC takes the same trend; hence, more value will be transferred over the Litecoin blockchain in 2020. The 200-week moving average is the only thing impeding this outcome, and it is highly likely that it will break in the following months.
Based on today’s reports, it seems like an excellent start to the year for crypto traders. Despite the expected volatility in BTC, the charts show an inbound uptrend that could propel ETH to the $200+ mark and more value in LTC transferred this year. Additionally, the Ripple IPO would be a bold and welcome step in the crypto world.
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