Jan Nieuwenhuijs, a gold market analyst, has predicted a new multi-year bull market for gold. According to different factors, including the low percentage of gold as part of the global international reserves, and the size of the equity market, gold prices might be preparing to rise, putting prices of ,000 per ounce in the realm […]
Bitcoin News
Bitwise Heralds Coinbase (COIN) As The ‘Next Amazon’: Price Targets
In a recently published report by Bitwise, the leading crypto index fund manager, a striking comparison has been drawn between Coinbase and Amazon, highlighting a significant yet under-reported aspect of Coinbase’s business — the Base Layer 2 network. Titled “It’s All About That Base (and Other Thoughts on Coinbase),” the report authored by Matt Hougan and Juan Leon delves deep into the financial and strategic shifts underpinning Coinbase’s latest successes and potential future.
Amazon Of Crypto? Bitwise Projects Stellar Future For Coinbase
Coinbase’s latest financial results have been a revelation, demonstrating robust growth and operational efficiency. The company reported .6 billion in net revenue, marking a 116% increase year-over-year, significantly surpassing Wall Street’s expectation of .36 billion.
Profits were equally impressive, reaching .2 billion with total cash reserves swelling to .1 billion. Each of Coinbase’s business lines showed notable growth: consumer trading revenue rose by 93%, institutional trading by 105%, stablecoin revenue by 15%, blockchain rewards by 59%, and custodial services by 64%.
Despite these strong numbers, the stock has trended downwards, suggesting that the market may not fully appreciate the depth of the company’s strengths. However, Bitwise highlights a less conspicuous but potentially transformative element of Coinbase’s portfolio: the Base Layer 2 network.
Launched in August atop Ethereum, Base aims to enhance the blockchain’s throughput while lowering costs. It operates similarly to a bar tab, aggregating transactions and settling them in batches, thereby reducing transaction costs to under .01 and speeding up processing times to less than one second.
The adoption rate of Base has been staggering. The network saw a 74% increase in transactions quarter-over-quarter in the first quarter, with a 40% increase in April alone compared to the entire first quarter. The exponential growth in the number of developers using Base, which increased eightfold, underscores the network’s rising significance and the broader industry’s interest.
From a financial perspective, Base has been lucrative for Coinbase. In the first quarter alone, the network generated .4 million in transaction fees, of which Coinbase retained .5 million. This high-margin revenue stream continued into April, adding another million to Coinbase’s profits. Given these trends, Bitwise predicts that Base could soon be contributing million to million in monthly profits to Coinbase.
The analogy with Amazon is rooted in the transformation potential of Base. Just as Amazon evolved from a simple online bookstore into a retail giant and later a dominant force in cloud computing through Amazon Web Services (AWS), Coinbase could similarly evolve from a crypto brokerage to a fundamental infrastructure provider for the crypto industry.
This shift could redefine Coinbase’s role and impact within the market, positioning it as a central infrastructure entity in the crypto ecosystem, akin to how AWS underpins much of today’s web services.
The report concludes by reflecting on the significance of Base for Coinbase’s strategic direction. “[T]he early returns on Base suggest that Coinbase could end up becoming something even greater: a core infrastructure provider to the crypto ecosystem. And that would be a very big deal indeed.”
COIN Price Analysis
Analyzing the technical landscape, the price of Coinbase (COIN) currently faces a pivotal moment. After dropping to 1.20 (as of press time), down 11.4% from a weekly high of 5.79, the stock is testing significant resistance and support levels that could dictate its short-term trajectory.
The Fibonacci retracement tool, applied from a low of .62 to a high of 9.52, identifies critical price points. Presently, COIN is contending with the 0.57 level (0.5 Fibonacci level), which acts as the primary resistance. The 20-week Exponential Moving Average (EMA) provides crucial support at 9.35, with the stock recently bouncing off this level.
The Relative Strength Index (RSI) stands at 56.10, suggesting a balanced dynamic between buying and selling pressures, with a slight tilt towards buying. The recent price behavior, characterized by a candlestick with a small body and longer wicks, reflects the ongoing uncertainty and cautious sentiment among traders.
Ex-Ripple Director Heralds ‘Big News’ For XRP, Can Price Respond?
Sean McBride, the former Director of Global Talent Acquisition at Ripple, has hinted at significant upcoming news for Ripple and XRP. McBride’s announcement, made via a post on X (formerly known as Twitter), has sparked a mix of excitement and skepticism among followers and investors alike.
His post stated: “Big news coming from #Ripple and #XRP in the next couple days,” setting the stage for speculation on what the news could entail and its potential impact on XRP’s market performance. However, the reaction to McBride’s announcement has been varied within the XRP community.
Big news coming from #Ripple and #XRP in the next couple days
— Sean McBride (@seanmcbride16) February 6, 2024
Wietse Wind, the founder of XRPL Labs—a company known for developing XRP Ledger-based projects such as XAMAN (formerly XUMM), a digital wallet, and Codius, a smart contract platform—responded with a hint of skepticism, implying concerns about insider trading:
Must be quite the news if it is worth entering insider trading territory.
Another community member, identified as Faisal, expressed a more cynical view, suggesting a pattern of temporary engagement with Ripple’s technology: “Another company using Ripple’s products as a ‘pilot program’ and then never actually using it after?” This sentiment reflects a broader skepticism that has occasionally surrounded Ripple’s partnerships and the actual adoption of its technology.
In response to the negative feedback, McBride’s retort was blunt: “Yeah, all you non Ripple shareholders can STFU because, yes, big news IS coming, already has come, and XRP is going to explode so piss off if you don’t have anything positive to say.” This statement indicates a strong belief in the significance of the upcoming news and its potential to positively impact the XRP price.
XRP Price Shows No Reaction (Yet)
As of press time, the XRP price has not shown any significant reaction to McBride’s announcement. This lack of immediate market movement may suggest that investors are adopting a wait-and-see approach.
In a technical analysis of XRP against the US dollar (1-day chart), the price shows a continuation within a descending channel pattern, indicating a bearish market sentiment. As of press time, the XRP price hovered around the .50 mark.
The chart analysis reveals that the price of XRP is currently struggling below several critical Exponential Moving Averages (EMAs) – the 20-day EMA at .52319, the 50-day EMA at .55345, and the 100-day EMA at .56877. This EMA positioning suggests a strong resistance level for any upward price movement. Furthermore, the 200-day EMA at .56220, although below the 100-day EMA, still acts as a potential resistance zone.
Volume indicators show a relatively stable volume with a slight increase in selling pressure, as denoted by the red volume bars. The Relative Strength Index (RSI) is at 36.08, which is close to the oversold territory, but not yet indicative of a strong reversal signal.
Notably, the price is trading near the 0.786 Fibonacci retracement level at .49894, a critical support level in the short term. This Fibonacci retracement is drawn from the major swing high at .74902 to the swing low at .43085. The price has already breached the 0.5 (.58993) and 0.618 (.55239) Fibonacci levels, which were previously acting as support levels, and is now testing the 0.786 level for potential support.
The descending channel pattern is defined by two parallel lines, with the price making lower highs and lower lows, which is typically seen as a bearish signal. For traders looking for a bullish reversal, a break above the upper boundary of the channel and the nearest EMA would be essential. Conversely, a drop below the 0.786 Fibonacci level could see the price test the .43085 level, which is the recent swing low.
Coinbase 2024 Outlook Marks End of Crypto Winter, Ordinals Leading NFT Shift, Heralds Era of Prosperity
As the crypto market navigates through a transformative era, Coinbase’s 2024 Crypto Market Outlook provides insights and predictions. The report, encompassing data up to November 30, 2023, delves into pivotal crypto market shifts and institutional practices.
Coinbase’s 80-Page 2024 Crypto Market Outlook Suggests Brighter Days for Digital Assets
Coinbase’s comprehensive 80-page report indicates that the total crypto market capitalization doubled in 2023, signaling an end to the crypto winter and the onset of a transition phase. Despite past challenges, the market’s remarkable recovery and sustained development underline the resilience and staying power of cryptocurrencies.
“What’s clear, however, is that in spite of the hurdles directed towards the asset class, the developments we witnessed over the past year have defied expectations,” the Coinbase 2024 report notes. “They are evidence that crypto is here to stay. The challenge now is to seize the moment and build something better.”
Coinbase says that 2023 witnessed bitcoin (BTC) reinforcing its status as a safe haven amidst geopolitical upheavals and financial crises. The introduction of spot bitcoin ETFs by leading U.S. financial institutions marked a significant acknowledgment of bitcoin’s disruptive potential and a possible precursor to enhanced regulatory clarity.
“But progress rarely moves in a straight line,” the Coinbase researchers detail. “To create a more resilient market, developers will need to continue building towards real world use cases that help us cross the chasm from early adopters to mainstream users.”
The report highlights a key theme for 2024, essentially a shift in crypto trading towards practical use cases, bridging the gap between early adopters and mainstream users. Coinbase believes developments in Web2 analogs and blockchain infrastructure, alongside innovations like decentralized identity and physical infrastructure networks, are setting the stage for this transition.
In 2023, bitcoin’s dominance in the digital asset market increased, spurred by institutional interest and applications for spot bitcoin ETFs in the United States. Coinbase thinks this trend will continue, with institutional flows remaining anchored on BTC through at least the first half of 2024. The latter half of 2023 saw BTC outperform most traditional assets.
This momentum, the report explains, is expected to carry into 2024, with BTC potentially benefiting from broader economic trends and pressures on traditional financial systems. Additionally, Coinbase touches upon the Ordinals and Atomicals trend alongside Rootstock, Stacks, RGB, and implementations of BitVM. Coinbase also believes that “a large portion of NFT activity has shifted to Bitcoin Ordinals.”
The 2024 Outlook report notes that the crypto space has seen significant infrastructure development, including scaling solutions and security services. Coinbase researchers say it has laid the groundwork for the emergence of decentralized applications, hinting at a transition in trading regimes towards Web3 applications.
Coinbase further mentions the growth of layer two (L2) scaling solutions has been notable, with developments like OP Stack and Arbitrum Orbit. Despite this, Ethereum’s mainnet has maintained stable transaction counts, with L2s primarily affecting alternative L1 platforms.
Lastly, the report concludes that the U.S. economy’s trajectory in 2024 seems cautiously optimistic, with a decreased likelihood of recession. The report says that this economic setting and the potential of Federal Reserve cuts could lead to a weaker USD, presenting opportunities for cryptocurrencies.
What do you think about the 2024 outlook report published by Coinbase? Share your thoughts and opinions about this subject in the comments section below.
Gold Bug Peter Schiff Predicts Bitcoin’s Swan Song, Heralds ‘Spectacular Collapse’
Europac’s chief economist and known gold proponent Peter Schiff compared the gold and bitcoin rallies, explaining that the latest gold price pullback allowed bitcoin prices to pump. Nonetheless, Schiff believes that bitcoin will collapse spectacularly while gold prices will continue to rally.
Peter Schiff Predicts Bitcoin’s Swan Song
Peter Schiff, chief economist at Europac, has given his take on the recent gold and bitcoin market movements. According to Schiff, the pullback that gold prices are experiencing after reaching all-time high levels last week opened a window for bitcoin prices to increase in tandem.
Stating he was admittedly bashing bitcoin, Schiff declared:
This could be Bitcoin’s swan song. The speculative frenzy around spot Bitcoin ETFs will end soon. Bitcoin’s collapse will be more spectacular than its rally.
He also criticized CNBC reports on the market movements calling bitcoin “digital gold” as other cryptocurrencies rallied as part of a marketwide pump. “Are all those tokens digital versions of gold too? In reality, none are digital gold, just modern-day digital versions of fools’ gold,” he concluded.
Schiff contrasted bitcoin market movements with those of gold, saying the gold rally was real. In a subsequent post on X, Schiff stressed that the pullback of gold to 00-level prices derived from natural profit-taking and speculative shorts entering the market.
He explained:
The rally likely caused some speculative longs to exit and shorts to enter. But I’m sure the shorts will cover on this pullback and the real buyers who drove the price above K will push gold to new highs.
According to his thesis, gold prices are rising due to the upcoming crash of the dollar and the U.S. economy. These elements drive world powers to ramp up gold purchases as the “most viable alternative” to the U.S. currency.
What do you think about Peter Schiff’s opinion on the latest bitcoin price rally? Tell us in the comments section below.
American Economist Jeffrey Sachs Heralds End of Dollar Hegemony: ‘Central Bank Digital Currencies Will Become the Basis of Payments’
Jeffrey Sachs, an American economist and best-selling author, has stated that the end of the dollar’s hegemony is near and that central bank digital currencies (CBDCs) will become the basis of cross-border settlements. For Sachs, the abuse of the U.S. dollar as a geopolitical weapon is one of the factors that will contribute to its demise in the coming decade.
Sachs Predicts Dollar Hegemony’s End in Next Decade
Jeffrey Sachs, an American economist, professor at the University of Columbia, and best-selling author, has issued his opinion about the end of the dollar’s status as the dominant world currency. In statements given at the 20th annual meeting of the Valdai Discussion Club, a Moscow-based think tank, Sachs explained that the end of U.S. dollar hegemony might happen in the next decade due to the misguided use the country has given to its currency, which is currently the standard for cross-border settlements.
Sachs stated:
The epoch of the international financial system dominated by the dollar is drawing to an end, and this will happen in the next decade.
Furthermore, Sachs stressed that this process is ongoing, with the economy of the U.S. only accounting for 15% of the world’s production after producing 30% of the world’s goods after World War II.
Sachs had talked about this before, stating that the decline in dollar hegemony was a consequence of its weaponization against nations like Russia, Venezuela, and Iran. According to Sachs, the U.S. “became reliant on using the financial system for the sake of achieving geopolitical goals.”
Rise of CBDCs
Sachs detailed that this percentage will continue to decrease as other countries continue to outgrow the U.S. in the future. Nonetheless, for Sachs, none of the standard currencies available today will become a successor of the dollar.
On this, Sachs declared:
Central bank digital currencies will become the basis of payments.
Central bank digital currencies (CBDCs) are central bank-issued digital equivalents of today’s fiat currencies that offer a set of incentives for issuers, like better cross-border payment services, increased traceability, and enhanced control. According to a Bank for International Settlements (BIS) survey published in July, 24 central banks will have implemented their CBDCs by 2030 to improve their settlement capabilities.
Furthermore, according to the Atlantic Council, a U.S.-based think tank, 130 countries representing 98% of the global gross domestic product (GDP), are exploring a CBDC.
What do you think about Jeffrey Sachs’ thoughts on the future of the U.S. dollar and its possible replacements? Tell us in the comments section below.
Market Analyst Heralds the Collapse of ‘Everything,’ Calls for Hedging in Gold and Silver Before There Isn’t Any Left
Egon von Greyerz, market analyst and founder of Matterhorn Asset Management, is predicting the collapse of the central bank system in the next few years due to an increasing issuance of currency and debt. Von Greyerz states that in the face of an economy with no buyers, the only hedge will be tangible assets, including gold and silver.
The Collapse of ‘Everything’
Egon von Greyerz, the founder of Matterhorn Asset Management, has recently expressed his worries about the situation of the central banking system in an article titled “The Everything Collapse,” where he details how the economy could collapse in the coming years, calling for people to hedge their savings in gold and silver.
Von Greyerz states that the current macroeconomic problems are derived from the uncontrolled issuance of fiat money and debt, manipulated by the movements of central banks.
He believes that the 2008 market collapse, the subprime mortgage crisis, the wild swing in the rates of treasuries, and the inflation boom have all been produced by the current central banking system. Von Greyerz states:
The debt which has built up has now reached levels which means the financial system is now too big to survive.
Von Greyerz explains that central banks are vigilant to stop bank collapses, as evidenced by what already happened with Silicon Valley Bank and Credit Suisse. However, he believes the issued controls, like the insurance set by the Federal Deposit Insurance Corporation (FDIC), which insures only 0.7% of the trillion in deposits, are posed to fail.
This means governments will have to start printing more money in order to save the system.
Gold and Silver: The Ultimate Hedge
In his article, Von Greyerz notes that all assets are priced at the margin, and while investors exit the stock market and other markets, like the real estate market, it is possible for assets to plunge by 70% or even to zero. He states:
If there is one seller and no buyer in the housing market, the price of all houses will go to zero. The same is true for the stock market. But as investors run for the exit, most will not get through since there will at some point be no buyers at any price.
In this hypothetical situation, Von Greyers recommends paying all debts in order to avoid suffering bank repossessions, and jumping to tangible assets. However, in the long run, he recommends a flight to safety by investing in precious metals like gold and silver, before the demands leave the current supply at zero. He concluded:
Currently, all production is absorbed and any increase in demand cannot be met by increased supply but only by much higher prices. We could reach a situation when there is no silver or gold available at any price.
What do you think about the potential collapse of the financial system discussed by Von Greyerz and the value of gold and silver as protection for investors? Tell us in the comments section below.
Massive UK Newspaper Heralds Bitcoin and the “Golden Age of Cryptocurrency”
The United Kingdom’s widely circulated Metro news publication has published a surprisingly bullish article explaining Bitcoin for its millions of readers. The article is scant in its detail but does feature a full Bitcoin explanation video.
The overall tone of the clip is incredibly optimistic for Bitcoin’s long term. Rather than caution against its use, it seems to encourage it, explaining in the simplest possible terms and providing information on how to buy the crypto asset.
Metro Newspaper Shows Bitcoin’s Qualities to Millions
We love seeing the mainstream media approach Bitcoin with an open mind. Earlier this year, much of the industry celebrated as it made a convert of CNBC anchor Joe “Squawk”Kernan. Elsewhere, other non-crypto publications have been providing a much more balanced view of the industry as it continues to mature.
Nothing thus far in mainstream media appears to have championed Bitcoin quite as heavily to the general public as UK newspaper the Metro. Circulated on almost every bus and train in the nation, the paper is a favourite of many since it offers a simplistic take on events with less political bias than other widely read publications.
Today, the online version of the publication featured a story introducing Bitcoin to its readership. The article is loosely based on the Hong Kong riots – there are two sentences that can be surmised as: “Hong Kong is rioting” and “people are buying Bitcoin there as a means of capital flight.”
The Hong Kong subject of the article appears to have been used as a flimsy excuse to put out some “bullish-on-Bitcoin” content the paper has been sitting on. The article goes on to briefly explain what Bitcoin is.
It is basic in its detail but one of the most notable things about it is that there is no mention whatsoever of Bitcoin being used as a means for drug dealing on the Dark Web, or as a tool to enable international money laundering. This is a complete anomaly for a mainstream media article attempting to explain what Bitcoin is.
The pro-Bitcoin coverage continues during a four minute explanation video. It begins with an incredibly brief history of money, stating that an early system of barter was replaced by one of “gold, government, and greed.” The next sentence, however, really sets the tone of the rest of the piece:
“Now a new way of exchange is breaking out as we enter the golden age of cryptocurrency.”
The video primarily focuses on Bitcoin, on the grounds that it was the first and “the one making all the headlines.” Viewers are introduced early to one of the main arguments against fiat currency forwarded by Bitcoin proponents:
“The currency we use today, like sterling, euro, dollar isn’t worth anything in itself but it is representative of a gold or Federal Reserve.”
Unfortunately, the presenter didn’t cut off that sentence before the word “but” or at least provide explanation of how fractional reserve banking works and the fact that there is no gold. However, we do applaud the effort to highlight that fiat currency isn’t backed by anything other than faith.
Elsewhere in the video, there is mention of Bitcoin’s decentralised nature versus central banking, a brief introduction to mining the cryptocurrency, and how to buy Bitcoins. This process is described as being “just like you buy anything on the internet.”
Although the dark web is mentioned during the four minutes, it is only in passing and it is strongly implied that this was just a brief period in the Bitcoin story. There is also no mention of money laundering or other financial crimes often cited by regulators and lawmakers as a concern about the technology.
The piece concludes by hammering home its overarching message of optimism for Bitcoin’s future. Its presenter states:
“We are on the cusp of an era where people actually come around to the idea of using Bitcoins instead of the money we ordinarily use… If you think about it what’s the difference between the money you don’t see in your bank and the Bitcoins you don’t see in your Bitcoin wallet.”
To this final point, we offer polite rebuttal. There are vast differences between the money in your bank and Bitcoin. However, we love the attempt to relate the innovation to something the masses already rightfully or wrongfully trust.
Related Reading: Bitcoin Craters to ,500, Sentiment Hits December Lows: Can BTC Bounce?
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