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ETF Leader Matt Hougan Predicts Trillion-Dollar Crypto Market in 2018

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After 15 years in the ETF industry, Matt Hougan is taking a career-changing plunge into the cryptocurrency market. The impetus behind the decision is simple: in his view, cryptocurrencies will transform the investment world just like ETFs did over the past decade.

Trillion-Dollar Market

In a recent interview with Bloomberg, Matt Hougan described cryptocurrency as an “early-stage technology,” but one that is primed to grow manifold in the not-too-distant future. This includes a trillion-dollar valuation as early as 2018.

“The pathway to $1 trillion eventually is fairly certain,” Hougan told Bloomberg. “How we get there is going to be volatility and uncomfortable. I think we’ll get there pretty soon, though. I wouldn’t be surprised if we ended the year with a cumulated market cap of over $1 trillion. But I wouldn’t be surprised if there were a significant drawdown again before we got there.”

Earlier this year, the cryptocurrency market looked poised to cross the $1 trillion mark. The total market cap peaked above $830 billion before undergoing a series of massive corrections that saw the total market bottom near $276 billion.

Hougan, who is currently serving as an executive with Bitwise, has also described bitcoin as the millennial generation’s gold for its safe haven characteristics. Although coins such as bitcoin have struggled to achieve mainstream adoption as money, they have succeeded as stores of value.

Crypto Market Cap

The cryptocurrency market has declined sharply over the past week, offsetting an equally large gain during the previous seven-day period. At the time of writing, the total market cap of bitcoin and 1,518 other cryptocurrencies was $435 billion, according to CoinMarketCap.

As we reported earlier, there was no apparent catalyst behind the market’s latest slide, a sign that profit-taking may have been in play. Speculators are slowly returning to the market in the wake of favorable regulatory signals from countries such as the United States and South Korea.

Although many analysts still consider cryptocurrencies to be a bubble, they expect the market to continue growing in the near term. As Hougan indicated, the path higher will be volatile, with double-digit percentage drops likely to remain a staple of the market trend.

To those who doubt the idea of a multi-trillion-dollar cryptocurrency market, it’s important to bear in mind that technological growth is usually exponential. There’s little to suggest that cryptocurrency, or the underlying technology behind it, is even close to hitting full stride.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 699 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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  1. fractalogic

    August 26, 2018 at 6:52 pm

    E-money (Crypto) is considered a bubble by many analyst, because they don’t see the utility it provides. The market is overrun with speculators who have no use for E-money beyond trying to profit from the next price change. We need an index that tracks the actual use of these coins in the way that their creators envisioned in order to see what the real value of these coins are. Coins used only for speculation may as well be tulips which will disappear overnight which is the reason many analyst see them as a bubble. Coins used for their stated purpose are adding value to the economy by reducing costs, solving problems and have real value as a tool which is why many analysts foresee a bright future for E-money. In the meantime, it is the speculators that are funding the future of this technology.

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Analysis

Crypto Update: Bear Market Lows in Jeopardy After Latest Failed Bounce

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The cryptocurrency segment switched directions yet again, as, after a weak bounce on Wednesday, the major coins are headed back towards their recent bear market lows today. While the losses are not significant, for now, given the bearish long-term picture and the vicinity of the lows, another leg lower in the downtrend could soon begin, despite the deeply oversold long-term momentum readings.

The majors are all in the red amid the broad selloff and only a few of the battered altcoins are showing some relative strength in the face of the apparent selling pressure. The total value of the market is back below $110 billion, and a dip below the $100 billion mark is possible as soon as the coming days, with Bitcoin being among the weakest top coins in the past few days.

Volatility has been steadily decreasing ever since last week’s breakdown, but we expect trading activity to pick up somewhat ahead of the weekend, and traders should remain cautious here given the still broadly negative technicals.

BTC/USD, 4-Hour Chart Analysis

Bitcoin is trading just above its recent lows despite yesterday’s rally attempt, and the coin is showing relative weakness hinting on an imminent test of the lows. That said, with the long-term momentum readings clearly being oversold, we could still be in for a larger scale bounce in the coming weeks, but traders should wait for signs of short-term strength before entering new positions.

Our trend model remains on sell signals on both time-frames, with strong resistance levels zones ahead near $3600 and between $4000 and $4050, and with key long-term support found near the $3000 level.

ETH/USD, 4-Hour Chart Analysis

Ethereum is still stuck below the key $95-$100 zone as yesterday’s bounce faded but the coin is trading above its bear market low, performing in line with Bitcoin and the majority of the segment. ETH is still in short- and long-term downtrends, and our trend model is on sell signals on both time-frames as well, despite eh oversold long-term picture.

Odds still favor a move towards the next key support zone between $73 and $75, and traders and investors shouldn’t enter positions here, with further strong resistance zones ahead near $120 and $130.

Altcoins Drift Lower Across the Board

IOTA/USD, 4-Hour Chart Analysis

We are still not seeing signs of meaningful relative strength even among the smaller altcoins, as although some of the most oversold currencies are, in fact, holding up well above their recent lows. IOTA is still a prime example of the long-term weakness, as it got stuck below the resistance zone surrounding the $0.24 price level despite the recent bounce attempts, while also remaining in a clear broader downtrend. For now, the prior low just above $0.20 is safe, but new lows are still likely in the coming weeks.

XRP/USDT, 4-Hour Chart Analysis

Ripple has been trading with very low volatility in the last couple of days, hovering around the $0.30 level. The coin failed to show relative strength amid the bounce attempts, and break below last week’s lows and a test of the bear market low near $0.26 still seems likely, with the sell signals being in place in our trend model on both time-frames.  XRP faces strong resistance near $0.32, $0.3550, and $0.3750, while primary support is found at $0.28

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 417 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Analysis

Tether (USDT) Confirms New Banking Relationship with Over $1.8 billion Balance

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  • Tether announces a new banking relationship with a Bahamas-based bank, Deltec Bank & Trust.
  • USDT stabilized within the $0.9900 territory; however the heights of $1.00 are proving to be unstable.

Tether, the company that introduced the controversial USDT stablecoin, announces a breakthrough with a new banking partner. They have opened a $1.8 billion bank account in the Bahamas, with Deltec Bank & Trust.

Tether said via Twitter, “We are pleased to be able to confirm that Tether has an account with Deltec Bank & Trust Limited https://tether.to/tether-banking-relationship-announced/ Balance confirmation at 2018-10-31 attached.” The document confirmed the new relationship and the balance of over $1.8 billion.

Tether Due Diligence

Further, they detailed some of the due diligence process and covered some grounds on the USD-peg. Tether said, “an analysis of our compliance processes, policies and procedures; a full background check of the shareholders, ultimate beneficiaries and officers of our company; and assessments of our ability to maintain the USD-peg at any moment and our treasury management policies. This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.”

Tether Recap

In October, Tether announced via Twitter they destroyed 500 million USDT tokens. This was following a buyback of which was conducted over the course of several days. The buyback was done via exchanges and from coin holders. At the time, it was also noted that these tokens were originally sent to a treasury address and said to have totaled a balance of around 1 billion USDT. The buyback executed removed those tokens from circulation indefinitely.

Technical Review USDT

USDT daily chart

Since 27th October, USDT has managed to claw back into the 0.99000 price territory, generally stabilizing around this area. This comes after the price dropped below parity convincingly, losing the $1.00 mark between 14-15 October. As a result, this had caused a wave of reactions across the market.

Between 19th October and 27th October, the price had managed to hold ground within the 0.9800 area. USDT has since had very short-lived moments spiking back up the $1.00, however this has failed to be sustainable.  Finally, support has proven to be tough within the mentioned $0.9800 territory.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 86 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Altcoins

Ethereum Co-Founder Assures Cryptocurrency Market is Not about to Collapse

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  • Ethereum co-founder and Consensys founder Joseph Lubin comments on current digital market conditions.
  • Ether (ETH) “has some characteristics of cryptocurrency, but it’s really a crypto fuel or a crypto commodity”, according to Joseph Lubin. 

The co-founder of Ethereum and Consensys founder Joseph Lubin, said “digital currencies are not on the edge of a collapse”. He was recently speaking in an interview with CNBC, providing some general overview on current market conditions.

In his interview, Lubin spoke about how the ecosystem has seen several “booms and busts” within the past ten years. However, he noted that it has never looked so strong than it is today given the strong fundamentals that are seen with the ecosystem. The number of projects that are going on and people brought into the blockchain-sphere are a testament to the evolution of the industry. He added that “the foundational infrastructure is getting built out.”

Cryptocurrency infrastructure is evidently growing at some pace. For example, Bitcoin has its own developed infrastructure. Bitcoin wallets exist, as the case for almost every cryptocurrency available as well as many strong active cryptocurrency exchanges, Bitcoin ATMs in several countries. The ability to buy Bitcoins is now very simplistic, being able to use a smartphone with the ATM.

On the topic of regulation, Lubin commented how there is regulatory uncertainty with respect to the value moment of cryptocurrencies. He then diverted the initial question somewhat, mentioning that boiling down on the blockchain technology, current infrastructure building is decentralizing traditional systems. He listed the likes of trade, finance, tokenized custody systems and many others as being the most notable outcomes. Lubin further explained how regulatory uncertainty is becoming a thing of the past in “various different jurisdictions” across the globe.

Ether is a Crypto “Fuel”

Speaking specifically on cryptocurrencies, Lubin said Bitcoin is a cryptocurrency. However, Ether (ETH) “has some characteristics of cryptocurrency, but it’s really a crypto fuel or a crypto commodity,” additionally noting how Ethereum is a decentralized application platform. In his view, none of these types of platforms will need to be regulated. Finally he said “one doesn’t regulate technology, one regulates the use of the technology.”

Technical Review – ETH/USD 4-hour Chart

ETH/USD 4-hour chart

The current price behavior of ether is simply life-less, within an extremely narrow trading range. This is no thanks to the largely suppressed wider market. Volumes recently hit an all time low for 2018, a notable slowdown since mid-October. Within the last 10 trading days, it has moved in a mundane $8 range. A high seen at $210, the low of the range, $202.

Just like several other cryptocurrencies, price action is moving within a pennant pattern. Given such, it would typically suggest that a breakout is imminent. Should the bulls manage to breakout of the upper near-term resistance, $210, there could be a very fast move back towards $250. This is where the next major supply zone can be observed. Support has proven to be firm at protecting the $200 mark of late, any breach south of that would be catastrophic. The next demand zone is seen down within the $180-160 territory.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 86 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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