Bitcoin blasts higher
By Yann Quelenn
Bitcoin market capitalization now exceeds that of McDonalds: US$ 165 billion versus US$ 134 billion. And it’s having a better year, too: despite being declared dead hundreds of times since its 2009 creation, a Bitcoin is now worth $US 10,000. This is a lot, but after all, there will only be 21 million Bitcoins when all are mined by 2020.
We believe Bitcoin will continue to rise. It is an entry to many other crypto projects. Investing in an initial coin offering, for example, always requires Bitcoins, and many coin exchanges reject fiat currencies but allow Bitcoin. Bitcoin allows people to store and transfer value. Almost anyone now can create their own blockchain, but what really matters is the acceptance rate – Bitcoin’s acceptance rate is very strong and will keep growing.
Musical chairs from the USA
By Peter Rosenstreich
The presumptive next Chair of the US Federal Reserve, Jerome Powell, will be questioned by the US Senate today. His answers should signal a monetary policy similar to that followed by the current Chair, Janet Yellen. Powell was preceded on Monday by two other Fed speakers: New York Fed President William Dudley said that inflation was below target; Minneapolis Fed President Neel Kashkari indicated he is not comfortable hiking interest rate until inflation trend was on a clear path towards 2%.
The USD weakened on news that Senate support for President Trump’s proposed tax reform is waning. Republicans hold 52 of 100 votes, but two Republicans have indicated they will vote against the bill. Passage of tax reform should be marginally USD bullish as higher growth should boost inflation.