Cooperations and disasters

2020 was a year of crisis in many ways – just not for large parts of the crypto sector, especially Bitcoin. The signs were also pointing to growth for the Bitcoin Up asset XRP. Then the US Securities and Exchange Commission filed a lawsuit against the Californian FinTech. A look back at the eventful year for XRP – of cooperations, innovations and regulatory thumbscrews.

The rumor mill was already boiling at full speed at the beginning of the year: At the world economic summit in Davos, Ripple CEO Brad Garlinghouse speculated about an increasing number of initial public offerings (IPO) by crypto companies. Garlinghouse made no secret of the fact that the Californian FinTech would like to enter the trading floor itself . Some were already expecting the Ripple IPO for 2020. Wishful thinking, as it turned out.

Egypt’s largest bank joins RippleNet

Contrary to what its name suggests, the National Bank of Egypt is not a central bank, but it is the largest private bank in the country. So it’s no wonder that the XRP rate reacted positively in February to the news that the bank has joined the RippleNet payment network. The National Bank of Egypt hopes the cooperation will bring efficiency benefits for cross-border transfers and the opening up of new markets. As with most Ripple collaborations, XRP does not play a direct role in the endeavor. Nevertheless, as a result of the news, the price rose by over 11 percent and reached a preliminary annual high of 0.31 US dollars .

Black Thursday also makes XRP see red

While the year had started very promisingly for the Ripple Coin, XRP could not escape the Corona Crash on March 12th. Panic selling pushed the price below $ 0.14. The euphoria that arose in February was gone for the time being – and the hard-won 30-cent mark had moved a long way off. It shouldn’t be the only emotional and technical rollercoaster ride for the asset and its holder.

Siam Commercial Bank joins RippleNet

In April , Ripple announced another partner for its RippleNet with the Thai Siam Commercial Bank. Again, it is about the processing of transfers that come from Thai people working abroad. Thailand is one of the countries in which such payment flows make up a not inconsiderable proportion of the gross domestic product. It was not until August 2020 that the amount of money that flowed into the Southeast Asian country in this way reached a record high of over 46 billion euros (17 170 billion THB). The cooperation between Ripple, SBC and the crypto start-up Azimo should enable these transfers to be carried out much faster than via classic clearing systems.

Ripple is suing Youtube

Attempts at fraud are simply part of everyday life in the crypto space. This not only affects investors who were misled by phishing attempts, for example, but also the projects themselves. At the end of April, things got too colorful for Ripple: The company sued the video portal Youtube . The accusation: The platform is doing too little to prevent scam attempts. In advance, Ripple had to distance itself from so-called giveaway scams several times.

Class action lawsuit against Ripple

At the beginning of May, however, Ripple was also on the other side of the dock . An organization called Bitcoin Manipulation Abatement LLC accused Ripple, among other things, of using XRP to bring an unregistered security to the people of investors. The proceedings are still ongoing. So far, Ripple has only been able to successfully defend a few charges – violations of the California Business and Professions Code. That comes from a verdictfrom October 2nd. The charge of illegitimate sale of securities still stands.

Of course, as the court ruled in its previous injunction, Plaintiff may also bring his remaining first, second, third, and fifth pleas against Defendants for allegedly selling or offering unregistered securities in violation of federal and California state law.

Bitcoin: Einzelhandel gegen Walhändler und wer hat am meisten davon profitiert

Die letzten beiden Quartale von Bitcoin im Jahr 2020 waren recht volatil. Dies war eher für den größten Teil des Jahres 2020 der Fall. Tatsächlich hatte jedes Quartal etwas Wichtiges wie den durch die Pandemie verursachten Absturz im ersten Quartal, die V-förmige Erholung im zweiten Quartal, den institutionellen Kauf im dritten Quartal, gefolgt von der raschen Preisexplosion in Q4.

Während die Institute vor dem Bullenlauf schwere BTC-Taschen haben und weiterhin erwerben, ist es offensichtlich, dass Bitcoin bereit ist, eine Leistung zu erbringen

Schauen wir uns jedoch an, wie sich die Wale, Institutionen, Einzelhändler und professionellen Händler des Marktes in den letzten 4 Monaten entwickelt haben.

Laut einem Bericht von OKEx war in den letzten 4 Monaten ein klarer Trend zu beobachten, bei dem der Einzelhandel kurzfristig eher bullisch als institutionell war, obwohl letzterer langfristig bullisch war.

Zusammenfassend lässt sich sagen, dass der Einzelhandel im FOMO gekauft hat, während Wale dies nicht getan haben. OKEx fasste es mit folgenden Worten zusammen:

„Es scheint, dass Einzelhändler die Preisrallye von Bitcoin Trader verfolgt haben… während professionelle Händler später ebenfalls an der Rally teilnahmen, scheinen große Händler (und möglicherweise Wale) Gewinne mitgenommen zu haben. Die Institute (und möglicherweise Wale) blieben trotz einiger Vorurteile etwas ausgeglichen in Richtung Verkauf. “

Zu diesem Zweck klassifizierte der OKEx-Bericht Händler zwischen 0 und 0,5 BTC als Einzelhändler, 0,5 bis 2 BTC als professionelle Händler, 2-5 und 5-10 BTC-Händler als Wale und 10 + BTC-Inhaber als institutionelle Händler. Es sollte jedoch beachtet werden, dass 2-5 BTC- und 10 + BTC-Inhaber überlappende Wale und Institutionen umfassen.

Die Metriken

Es ist ersichtlich, dass Einzelhändler BTC von September bis November kauften, um ihren Preis zu verfolgen, während professionelle Händler einem ähnlichen Trend folgten. Wale verkauften jedoch ihre Bestände, auch bekannt als Gewinnmitnahmen.

Institute, die BTC langfristig halten, schienen im September neutral zu sein, nahmen jedoch Gewinne mit, als Bitcoin gegen Ende November seinen ATH erreichte.

Ein ähnlicher Trend ist in der letzten Novemberwoche zu beobachten, als der Einzelhandel BTC kaufte, während Wale und Institutionen Gewinne mitnahmen.

Zusammenfassend lässt sich sagen, dass der Einzelhandel einen Erfolg haben muss, da Bitcoin jetzt deutlich unter seinen Höchstständen von vor einigen Wochen liegt. Institutionen und Wale werden jedoch mehr Bitcoins kaufen, da der Preis der Kryptowährung weiter sinkt.

Wells Fargo turns the tables on Bitcoin: financial bubbles „don’t last 12 years“.

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Is Bitcoin now a must-have? – One more wind vane is turning in the direction of crypto-wind: after having denigrated Bitcoin (BTC) for a long time, the major bank Wells Fargo now recognises its qualities. Indeed, it felt obliged to admit that Bitcoin is by far among the most successful assets of 2020.

Bitcoin, a dazzling progression
Even if it’s only been 2 years, it seems a long time ago when Wells Fargo allowed itself to formally forbid its customers to use their money to buy cryptos via their bank card.

Indeed, on 7 December, the investment advisory subsidiary of the major American bank, the Wells Fargo Investment Institute, published the report of an investment strategy that includes a section on… Bitcoin!

 

Under the title „Bitcoin – [the] best performing and most volatile asset of 2020“, the Wells Fargo subsidiary admits that the group of assets with the highest returns this year are cryptomoney.

The investment advisory institute thus recalls that Bitcoin performed much better than the SP500 stock market index or gold during 2020, with a +170% increase over the year, an explosion that itself follows a surge that was already at +90% in 2019.

 

Price evolution index for gold, SP500 and Bitcoin, taking as a reference (100) their respective prices on 23 November 2017.
Bitcoin, a new gold rush?
However, Wells Fargo analysts cannot help but go back to their old habits and criticise Bitcoin a little, pointing out the volatility of its prices. This would be due to the fact that the cryptomoney industry is still in a speculative phase.

„Today’s investment in cryptomoney is somewhat comparable to the beginning of the gold rush of the 1850s, which involved more speculation than investment. »

However, the tone is changing rapidly.

„(…) cryptomoney could one day become an interesting investment. Over the past 12 years, their market capitalization has grown from literally nothing to $560 billion. Fads don’t usually last 12 years.

This section on Bitcoin concludes that Wells Fargo will focus more on the digital asset sector in 2021.

When even the big banks are beginning to run out of arguments for not considering Bitcoin and cryptos as assets in their own right, a major shift in the financial and economic world can be felt. One more positive sign for the future of our cryptosphere?