CBDCs Are Not a Threat to Bitcoin, Grayscale Investments Says – BTC, ETH, LTC Price Analysis, 1 June, 2020
The biggest cryptocurrency fund Grayscale Investments has said that central bank digital currencies (CBDCs) are not a threat to Bitcoin and they may even affect positively the crypto market, according to a recently published report:
Source: Grayscale Insights
Moreover, the report outlined that one of the key features of the Bitcoin network is its censorship resistance and decentralization, while most CBDCs, if launched, would probably stay on the opposite side of the spectrum.
Another interesting research published last week was by JPMorgan strategist Nikolaos Panigirtzoglou. The financial expert thinks that Bitcoin's intrinsic value is now in line with its market price. Hence, the price of Bitcoin is at a crossroads:
Source: J.P. Morgan
In their research, J.P.Morgan calculated the intrinsic value of Bitcoin by comparing it to a commodity and by taking into account its marginal cost of production, including computational power used and electricity cost.
The cryptocurrency market has been in a consolidation phase since the beginning of the weekend. At the time of writing, according to Coin360.com, one Bitcoin costs €8,566.34 (+0.1%), one Ethereum – €212.67 (-0.02%), and one Litecoin – €41.3 (-1.9%):
Source: Coin360.com (Daily crypto market performance)
Now let's dive into technical and candlestick analysis of the major cryptocurrencies against the euro.
In the monthly chart (MN), in May the price of Bitcoin formed a small bullish candlestick after the «Bullish Engulfing»:
Interestingly, the bullish candlestick has a local high above the previous one and also a local low above the previous one. Thus, there is an additional confirmation of the bullish signal coming from the «Bullish Engulfing».
In the monthly time frame (MN), in May ETH/EUR formed a small bullish candlestick as well, and has surpassed the psychological level of €200 per one digital coin:
Although the bullish candlestick for April has a smaller body than the bearish candlestick for March, together with the small bullish candlestick for May, they have covered the body of the bearish candlestick. In our view, this implies that the bulls are trying to get traction.
In the 1-day time frame (1D), the price chart of Litecoin continues to fluctuate within the «Falling Wedge»:
In our estimation, if the bullish sentiment in the crypto market remains, then in the next two or three weeks LTC/EUR will approach the upper line of the «Falling Wedge» or a price level of around €50 per one digital coin.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.