Cryptocurrency Market Recap: ZEC Acquisition, BTC Outlook, and the Bakkt Delay
Tim Draper Predicts a Bullish Crypto Future, Zcash Listed on Coinbase Pro
The crypto market experienced one of its worst Novembers in close to seven years, but some major players still see a bullish Bitcoin future.
The crypto market had a November that it may like to forget as quickly as possible. In total, Bitcoin plunged 37 percent while the crypto market lost more than $70 billion. Ether and Ripple’s XRP plunged by 43 and 18 percent respectively. Amid the retreat in prices, the future is bullish, at least according to Tim Draper; a venture capitalist and Bitcoin bull.
Speaking on the sidelines of the World Crypto Con hosted in Las Vegas early this month, Draper highlighted that Bitcoin’s price would hit $250,000 by 2022 as he expects the entire global economy to shift to cryptocurrencies. Bitcoin will lead the tidal shift. This is a bold claim by any standards especially given that Bitcoin is down by more than 70 percent since the beginning of the year.
“I mean, just by that alone, just that they cost you less, it’s going to be better for people. And so, they’re going to move to crypto, and they’re going to go away from the political currency—they call it fiat,” said Draper, the founder and managing director of Draper Fisher Jurvetson (DFJ).
He further predicted that cryptocurrencies will make up about 67 percent of the global money – Draper claims that fiat currencies in the world are worth about $86 trillion while the crypto market is worth a tiny $137 billion at the time of writing.
After several weeks of massive sell-off and price swings that saw Bitcoin’s price bottom to lower than $3,700, Bitcoin climbed back to above $4,000 but has left many investors wondering if the surge is short-lived or not.
Michael Bucella, a partner at crypto-focused investment firm BlockTower Capital guest appeared on CNBC Fast Money and gave his take on the state of the crypto market. Bucella referenced his theory of weak hands (speculators) and strong hands investors as a contributing factor to market volatility.
Although he was reluctant to point the level at which Bitcoin would bottom at, he said that any bottom between $2,000 and $3,000, or otherwise, viable buying opportunities would be low.
Speaking to Bloomberg last week, Stephen Innes, head of trading for the Asia Pacific at Oanda said that “if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits.” There are warnings that if Bitcoin’s price continues to drop, it could lead to a panic within the industry.
Coinbase Pro adds Zcash
Coinbase announced via its blog post that it is listing Zcash (ZEC) on its Coinbase Pro trading platform. Zcash is a cryptocurrency in the mold of Bitcoin but is more focused on private transactions. Coinbase, one of the largest cryptocurrency exchanges in the world, highlighted that the trading of ZEC would be available to users located in the U.S (with the exception of New York), U.K., EU, Canada, Singapore, and Australia.
According to the blog post, the ZEC trading would be launched in four stages. After Coinbase’s announcement, ZEC’s price spiked from $82 to over $93 but has since retreated to over $81. ZEC has a market capitalization of $440 million and a 24-hour trading volume of $210 million.
Zcash was included on the list of cryptocurrencies that Coinbase was thinking of adding on its platform in July. The exchange has already added support for Basic Attention Token (BAT) and Ox and will likely add Stellar Lumens (XLM) and Cardano (ADA) in the future.
Bakkt pushes back its Bitcoin futures launch
Bakkt, a cryptocurrency firm announced in August and led by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE) has postponed the launch of its Bitcoin futures product from Dec. 12 to Jan. 24, 2019.
Kelly Loeffler, the CEO of Bakkt said that “given the volume of interest in Bakkt and work required to get all of the pieces in place, we will now be targeting Jan. 24, 2019, for our launch to ensure that our participants are ready to trade on Day 1.”
Bakkt’s plans go beyond the derivates product. ICE announced that Bakkt will work with big brands such as Microsoft and Starbucks to allow customers to convert their digital assets into fiat at coffee shops.
SEC chairman’s personal remarks on ETFs
Jay Clayton, the chairman of the U.S. Securities and Exchanges Commission (SEC) said that the approval of cryptocurrency exchange-traded funds (ETFs) will only be resolved if issues such as manipulation and custody are addressed.
He remarked that that current state of safeguarding is not yet on the desired level. Speaking in his personal capacity at the Consensus conference and not as the chair of the securities agency, Clayton said, “I don’t have a particular path. But it needs to be addressed.”
When asked whether Ripple’s XRP is a utility token or not, he responded vaguely, only stating that “some of these questions require a lot of information.”
The regulatory agency is cracking down on cryptocurrencies it deems to be securities, forcing digital assets to embark on a decentralization campaign in order to avoid being on SEC’s wrong side. Numerai, an artificial intelligence hedge fund is planning to decentralize its cryptocurrency.
Clayton stated at the same conference that he used to view Ethereum as a security but no longer does so since it is decentralized.