Wall Street is piling on. The most plausible reason for a new, major cryptocurrency advance beginning NOW is the anticipated impact of institutional investing. On January 24, Bakkt will launch an open and regulated global “platform for all manner of cryptocurrency services,” including trading and warehousing. Bakkt is a product of Intercontinental Exchange, the same company that spawned the New York Stock Exchange, and it expects to serve a digital marketplace that moves $270 billion per year. Bakkt will facilitate institutional participation, starting with venture capitalists and eventually including credit unions, retirement accounts, and 401(k)s.
Bakkt was preceded into the market in early December by crypto futures products from the Commodity Futures Trading Commission and Chicago Board of Options Exchange. And Nasdaq announced a teaming arrangement with VanEck to launch “a regulated crypto 2.0 futures-type” contract in the first quarter of 2019.
With large-scale institutional participation potentially right around the corner, is it surprising that “market forces” have been pushing prices down? Globalist-controlled sources are publishing a parade of articles predicting how far Bitcoin will fall … so that they can buy in at lower prices.
Technical indicators. Bitcoin (and other cryptos) appears to be ending its year-long correction. After four months of sideways oscillation in the converging wedge pattern shown below, Bitcoin broke down in mid-November—to a $3251 low on December 14.
Subsequent trading has formed a potential inverse head-and-shoulders pattern—with “left shoulders” at 5267 and 3711, followed by the 12/14 bottom. From here, “right shoulders” could be established on the way back to a “neckline” near 4300. We are likely to see new advances up to the $5500-6000 area and drops back below 4000, perhaps testing the 12/14 low. And possibly even lower: BTC might fall to 3000 or even 2000 before the damage is complete (not likely, in my opinion). But we ARE NOT witnessing the end of the crypto phenomenon or its marketplace.
Government regulators, meanwhile, continue fighting the last war. SEC chairman Jay Clayton said that before the first exchange-traded bitcoin fund (ETF) is allowed to come to market, he is looking for better market surveillance and custody for cryptos… And world improvers at the recent G20 summit in Buenos Aires agreed to “regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with Financial Action Task Force standards.” Meaning that this group of international extortionists will be scheming—under the watchful eye of the IMF’s madam Lagarde—for a cross-border tax system to nail individual and corporate crypto holders. They agreed to review concepts in 2019 and finalize plans in 2020. Too late!
Anarchist perspective. Reacting to increasing government intrusion, free spirits who began the cryptocurrency movement are now working to move cryptos beyond globalist controllers. Decentralized exchanges are in development and coins are adding privacy features. The future of cryptos appears to be this: eventually coin holders will trade among themselves, without using exchanges. Governments, intent upon controlling and taxing participants through cryptocurrency exchanges, will be left holding an empty bag.
(Wayne Peterson publishes this cryptocurrency blog weekly at his website. To be added to regular distribution, send an email to Wayne at [email protected].)
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