3iQ’s Top 5 Digital Asset Stories of the Week
March 18 – March 23, 2020
Bitcoin Spikes as Fed Unveils Unlimited COVID-19 Stimulus Package
CoinDesk | March 23, 2020
The US Federal Reserve has announced that it is taking stronger actions to combat the economic impacts of COVID-19, which includes open-ended asset purchases and essentially “unlimited QE” to help support the flow of credit to businesses and households. Immediately after the Federal Reserve’s 12:00 UTC announcement, the price of bitcoin surged from $5,800 to $6,600 USD in less than one hour.
Coinbase: Bitcoin’s Uncoupling from “Uncorrelated”
Coinbase | March 19, 2020
Despite bitcoin selling off last week alongside the S&P 500, new research conducted by the major cryptocurrency exchange Coinbase suggests that these recent bouts in positive correlation could be short-lived. According to Coinbase, “bitcoin’s historical correlation with the S&P 500 swings wildly between 1.00 and -1.00, seemingly positively correlated at times then negatively correlated during others”.
What Does Bitcoin’s On-Chain Data Say About its Future?
CoinTelegraph| March 23, 2020
According to new research from Quantum Economics, a cryptoasset advisory and analysis firm, several key on-chain metrics are pointing towards the increased adoption and use of bitcoin, suggesting its price may see “brand new highs” as early as 2021. Within the research article, Quantum Economics analyzes on-chain addresses, transactions, unspent transaction output (UTXO) and blocks throughout bitcoin’s history to give us a glimpse into the future.
Ex-Goldman Sachs Exec: Bitcoin Could See New All-Time Highs Within 18 Months
NewsBTC | March 22, 2020
Raoul Pal, the ex-head of Goldman Sachs’ equity derivatives business, believes that there’s a possibility that “all trust” in the “entire system” has been lost following the reveal of clear insecurities in the fabric of society, from politics to finance. In a recent interview, Pal remarked that he has “never been more bullish” on bitcoin, believing its price could set a new all-time within the next 12 to 18 months. “I’ve been in the business for 25 years and this makes the GFC [global financial crisis] look like child’s play.”
NovaBlock: “We’re Gonna Need a Bigger Gun”
NovaBlock Capital | March 23, 2020
NovaBlock Capital, a New York-based digital asset investment firm, has noted in a recent newsletter that despite bitcoin’s steep price decline last week, the cryptocurrency is operating “exactly as designed”. Unlike public equities markets, bitcoin and the crypto markets have no market-wide circuit breakers, nor central planners to help dampen volatility, meaning we are seeing “a true free market in action”. Government intervention in public markets through the injection of new capital into the existing financial system could spell deeper problems for the future, allowing for a “new structural paradigm [to] rise out of the ashes”.