The Bitcoin charts have been awesome to watch this week as they treated us to some early Halloween eye candy with a tease to almost $14,000. The bear market was long and painful but it looks like we really might be putting that unpleasantness behind us. This week, we look at how Bitcoin is breaking its correlation with the stock market, what’s happening with Monero and how the JP Morgan coin is getting used.
Stay tuned as we cover all of these topics and more in this week’s Exodus Crypto News! Welcome back everyone this week has been a nail biter, From the financial point of view, the news of the week is that Bitcoin appears to be breaking its correlation with the stock market.
Since March, Bitcoin has been trading more or less in sync with stocks, leading many to question the narrative of Bitcoin as an uncorrelated asset. That appears to be changing though In the last couple of weeks Stocks are down, down, down and Bitcoin is holding its ground quite nicely.
In fact, if you look at the charts what you’ll see is that Bitcoin made its beautiful run to just under $14,000 at the same time that stocks were going down on a daily basis. Breaking its correlation to the stock market is definitely a good thing for Bitcoin.
Fidelity Investments even pointed out that Bitcoin can serve as a risk diversification asset since it doesn’t tend to trade in tandem with other assets. Even the institutional investors know Bitcoin trades on fundamentals, which would suggest a price far higher than where we’re at now.
More and more countries are piling on the CBDC bandwagon. This stands for Central Bank Digital Currency and the latest to join the party in Canada. To be honest though, if Canada is someone at the party, they’re the guy standing in the corner, drinking ice water. They showed up but that’s about it. What do we mean by this? So, Canada’s announcement is quite soft. They say that while they’re drafting a plan to launch a CBDC, they don’t actually have a strong need for a digital Canadian dollar right now.
Canada is calling for a global approach and for other G7 countries to develop their own CBDCs in unison. Basically, Canada seems to think that a CBDC is a good idea, but they’re not quite sure. They’re willing to create one, but they don’t want to do it first.
This is in marked contrast to China or which has been working on its CBDC for four years and clearly expects a big benefit from having the first digital currency. France also has entered the race to the first out of the gate with a CBDC seeing a tremendous economic advantage of being a first-mover in the global market for CBDCs.
For you long term crypto enthusiasts, you’ll remember that the JP Morgan coin goes all the way back to 2018. At the time there was some concern that a JPM coin could somehow threaten other cryptocurrencies, but nothing much ever came of it.
For two years the JPM coin was only used internally, to make transfers between different JP Morgan branches and subsidiaries. That’s changing now, though for the first time a JP Morgan customer, a technology client apparently, is using the stablecoin for a commercial transaction.
From a surface level, this just doesn’t seem to amount to much of anything. A JP Morgan client is using their stablecoin to send some cash around, so why should we care? When you dig deeper there’s actually something really, really important happening here. As any XRP holder will tell you, the international payment system is called SWIFT and it’s controlled by, guess who, the United States.
The United States government controls who can send payments, they can reverse payments, freeze payments and cut entire countries out of the global financial system. Forget nuclear weapons, SWIFT is Americas greatest source of power. Now with that backstory, this is important. The JPM coin subverts SWIFT.
JPM clients who use the stablecoin don’t have to use SWIFT and are not under the direct control of the United States government. How very interesting. To be sure, JP Morgan is highly regulated and is expected to conform to American laws, however, banks have a curious habit of breaking laws and paying fines later on.
If JP Morgan can make $10 billion by facilitating money laundering and only pay a $5 billion fine, history has shown us that they’ll take the deal. Anyways, this may all be years away. JPM coin is still in its infancy but as long as the trials go well were definitely expecting usage to grow quickly. Will there be another Libra-style reckoning? Only time will tell. Shout out to all Monero holders! While Alts have been struggling the last few months, XMR has been on an awesome run.
Besides price, what we’re also seeing is an increased demand for Monero as a currency. In terms of total fees, Monero has now surpassed both Bitcoin Cash and Litecoin, two cryptocurrencies which sit well above XMR in the market cap rankings. What this tells us is that there is a real demand for Monero transactions and that Monero reclaiming its spot in the top 10 crypto rankings is definitely not out of the question. Privacy is becoming all the more important as people wake up to the fact that Bitcoin transactions are there for anyone to see.
New blockchain analytic tools can easily link a BTC wallet to its owner, which removes all traces of anonymity. We can’t be sure that Monero transactions will never be tracked, however, as of right now it seems like they’re safe.
Just last month we saw the IRS announces a half-million-dollar bounty to anyone who can crack Monero and de-anonymize transactions. This definitely had the unintended consequence of giving Monero a nice bump, as it shows that Monero is still anonymous. A conglomerate of large automakers, including BMW AG, AUDI and Porsche, have started working with Tezos.
The automakers claim that the main reason that they’re choosing the blockchain platform is that Tezos has the ability to easily make changes to the code without a hard fork. In fact this has traditionally been one of Tezos biggest selling points, it has an on-chain governance system which makes updating the code easier than on a platform like Ethereum.
The automakers also mentioned that they like the fact that Tezos is fast and capable of supporting hundreds of transactions per second. The need for a scalable smart contract platform has never been more apparent since we’ve seen Ethereum get so congested and fees go through the roof. Tezos will be used to validate the firmware installed in cars, which seems like a great use case for a blockchain network.
One of the blockchains key advantages over a database is that blockchains are immutable, nobody can change data that’s been recorded to the chain. Were happy to see that these automakers have found a cryptocurrency that works for them, and we wish them and Tezos all the best.
Just another indication of the potential of the crypto ecosystem, Is there a problem crypto can’t solve? Hit us up in the comments to join the discussion and hop over the the Exodus Blog to learn more about how crypto is impacting our everyday lives in ways we may not even know. Make sure to hit that like button and subscribe to the channel for more weekly news, Explainer vids and tutorials.
Thanks for joining us and Until next time, HODL on!.