Bitcoin is looking to move higher as Deutsche Bank highlights systemic weakness. Binance will release futures trading and Tezos signs key deal.
Bitcoin is testing the $12,000 level once again and may attempt to break through the recent highs around $13,500. The recent pullback was met with the usual bearish hysteria but as we can see in the charts, it was merely a pullback from a strong rally that found buyers once again. If Bitcoin were to get through the recent highs then there is a real possibility that the all-time highs near $20,000 would be in reach. I’ve noted many times that cryptocurrencies would be a safe haven in a financial panic and all is not well in the traditional finance system as Deutsche Bank plans to cut 18000 bankers jobs in yet another restructuring. The German financial juggernaut also moved 74 billion euros to a so-called “bad bank”, which removes the risk from the balance sheet. Deutsche had 91,400 employees before the recent cuts and held 1.34 trillion in assets but the bank’s derivative book has been the source of much criticism and the actions by the bank have a real similarity to the events of late-2007 which led to the collapse of Lehman Brothers and Bear Stearns.
One of the world’s largest hedge funds, Renaissance Technologies, has also been quietly moving money out of Deutsche for months and is another hint that the smart money is starting to show real concern over the company’s future. If a bank as huge and systemically important as Deutsche Bank were in trouble then money would escape to the crypto market due to the domino effect it would have on other banks so keep an eye on this going forward. I have noted in previous articles that only 8-10% of the world’s developed populations have a blockchain wallet so an event in the current financial system would be a game-changer and would see a huge spike in volumes as big money comes in and then retail tries to chase the highs.
The recent announcement of Facebook’s Libra project should have people realizing that 2 billion Facebook addicts will soon have cryptocurrency forced on them and will awaken them to the sector. Many are busy discussing how centralized the coin may be, but this is irrelevant. Users will have to adopt the coin or get off the platform and a rewards-based system that pays users for content and allows them to send money through Whatsapp or make purchases via Instagram is where we are heading and it will be a financial revolution that will likely seal the fate of the leveraged banking behemoths.
Origo was a strong performer on the week with a gain of 480%. The move catapulted the project to number 186 in the list of coins by market cap with a value of $25 million. Origo states that it is the “world first decentralized application platform that protects your privacy.”
A key theme on the website is that the technology can be used for many different uses such as paychecks, supply chain, and IoT. OGO is available on the Bittrex and Huobi exchanges and currently has 100 million coins circulating out of a potential 1 billion, so there is an element of increasing supply to consider in valuing the project.
OGO currently trades at $0.16 and hit a recent high near the $0.20 level.