Weiss Ratings reckons the bottom is in for bitcoin, judging by a tweet a couple of says ago saying now was the time to buy bitcoin.
That’s a brave call in this crypto winter and may even risk the reputation of the venerable firm, which has been helping US investors with their decision-making for the past 46 years.
#BTC is getting to such low levels that it’s becoming one of the best buying opportunities of the year. As a store of value, #Bitcoin is here to stay. We truly think it’s the least speculative investment a person can make in #crypto right now.
— Weiss Ratings (@WeissRatings) December 11, 2018
Bakkt to provide lift off fuel
Part of the reasoning behind its tweet concerns the launching of Bakkt by Intercontinental Exchange in January.
Dr Bruce Ng, a crypto analyst at Weiss, sees Bakkt as a crucial part of the institutional adoption picture.
“It’s hard to imagine a scenario in which Bakkt will NOT open the floodgates for large institutions to buy crypto. And the consequences are potentially far-reaching,” he states.
Bakkt’s bitcoin futures start trading on 24 January, although we all know what happened when CBOE and CME future came in – bitcoin began its long descent.
Weiss expects to see trading volumes rise, partly through Bakkt buying to get liquidity onto its platform and the way in which it will open the door for corporations and high-net worth individuals.
The rating agency also thinks it will smooth the way for the approval of an exchange traded fund
“Right now, we count 10 crypto ETFs that have already been rejected by the SEC. And the regulators’ reasoning is twofold: No trusted price information and over-reliance on futures markets. But Bakkt could help resolve both issues, greasing the way for the launch of future ETFs like the VanEck/SolidX ETF in 2019.”
Dr Ng also thinks the significance of the tie-up with Starbucks hasn’t been fully appreciated.
Starbucks is the biggest”proximity payments (i.e mobile) company in the US with 23 million users of its app.
Bakkt y will convert crypto into dollars on Starbucks behalf, enabling its app users to indirectly use their crypto to buy stuff. Its customers are incentivised to use the app for payments by the Starbucks reward programme. Ng says app users “will be exposed to crypto like never before”.
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Juan Villaverde, another Weiss analyst, also points to the fast growth on a number of chains, as indicative of a sector in good health despite the loss of value in the bear market.
“EOS has grown its on-chain transactions by a factor of roughly 670-to-1. In the early part of the year, when it was still on the drawing board, its daily transactions averaged no more than about 10,000 per day. Now, its transaction volume has mushroomed to 6.7 million per day.
WAX (a fork of EOS) has grown at a similarly rapid clip. Before it launched, its on-chain transactions were minimal. Now it’s churning through nearly 5.6 million per day.
TRON (another EOS competitor) is smaller, but its growth is also spectacular — from less than 1,000 last year to 600,000 today.” more
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane