Bitcoin shoots the moon
By Arnaud Masset
It’s a broken record - Bitcoin cracked $10,000 and then during Asian trading went on to test $11,000. And there is plenty of room for further appreciation. First, institutional investors have only just set foot in cryptocurrencies. The arrival of CME and CBOE derivatives will just make BTC investing much easier and encourage skittish investors to take the leap. Second, key projects, such as Rootstock or Lightning Network, that aim as improving Bitcoin’s scalability will be released soon.
It’s a bubble say some. We don’t agree. Before the dot-com bubble popped in March 2000, the market capitalization of Nasdaq hit $6.7 trillion. This morning, the market capitalization of crypto assets stands at $330 billion.
However, there most likely will come a clean-up in the crypto next year. Some blockchain projects will simply not survive. A correction seems due, as the price of Bitcoin has been on a mad run for the last few months. Nevertheless, investors’ appetite is massive, and any corrections will be short-lived: buy on the dips.
US: strong GDP, weak dollar
By Yann Quelenn
Revised Q3 US GDP numbers will print this afternoon: expected at around 3%. The economy is ticking along nicely, and inflation is on the rise. However, markets have recently punished the US dollar. This is rooted in the US Federal Reserve’s caution in tightening money.
Meanwhile, gold is stalling below $1300 per ounce and the S&P 500 keeps hitting all-time high. Only US bonds with short-maturities are stumbling. Rates should pile on to 1.20 USD per EUR.