Bitcoin to Be One of the 2020s’ Top Investments: Ex-Goldman Sachs Exec Says Why

Bitcoin had an amazing past decade by every definition of the word. The price of the cryptocurrency surged by literal millions of percent since its birth in 2009, some of the world’s most important people — Elon Musk included(!) — gave a nod to the cryptocurrency, and the broader industry began a mainstream technological trend.

Bitcoin’s clear outperformance against all other assets in existence has left many wondering if the cryptocurrency can keep its macro uptrend intact for the coming decade.

According to Raoul Pal — a former Goldman Sachs executive who now is the CEO of finance media company Real Vision — BTC may do just that.

He argued that the cryptocurrency would be his choice if he could only own one asset for the next 10 years.

Bitcoin, the Best Asset of the 2020s?

On Friday, the Wall Streeter turned markets researcher and media magnate explained why the asset he is most optimistic about for the 2020s is Bitcoin.

In a to-the-point Twitter comment, Pal said that he thinks Bitcoin is the perfect asset for him to hold for the next decade because it “encapsulates all of larger macro views,” referencing previous statements he made suggesting the world will turn to an alternative system of finance that will be digital. (Previously, the Real Vision executive said that Bitcoin is basically an option on the future of finance.)

He added that from a pure risk-reward analysis perspective, Bitcoin “beats all.”

Indeed, per previous reports from NewsBTC, Pal told prominent BTC podcaster Stephan Livera that all popular asset classes are extremely expensive (meaning overvalued), save for BTC.

Equities, he explained, are roughly at all-time highs, and are pushing extreme valuations for relatively little profit and potential.

Bonds aren’t much better, Pal opines, drawing attention to the “virtually zero yields” — and negative yields in some cases — that debt deemed safe provides.

Even real estate isn’t attractive, with the prominent investor calling this asset class “unaffordable”, adding that it makes even less sense to purchase homes because they’re trading near all-time highs.

Hence, Bitcoin.

Others Agree With Cyclical Crypto Play

Others agree that the following decade for Bitcoin will be formative. More formative than the last.

Deutsche Bank in a report published in December said that it thinks that crypto assets have the potential to take over fiat currencies as a whole:

“The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies, such as gold or crypto could soar.”

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3 Things Stopping Bitcoin Price Breaking $10K Right Now

3 reasons for bitcoin price weekend rally News

3 Things Stopping Bitcoin Price Breaking $10K Right Now


Bitcoin has been having a great year so far for the first month of 2020, up 28.6% since the first of January. The daily chart is looking bullish, and a golden cross is forming, but Bitcoin hasn’t crossed the 10K mark, yet. Let’s take a look at why that may be.


Bitcoin bulls have been optimistic for the new year, and the market shows it. The market’s leading cryptocurrency is up almost 30% since the beginning of the year. The recent bull run has run into resistance just shy of the psychologically important $10,000 dollar level.

1. $9,580 resistance creating strong selling pressure

One of these reasons may be the strong rejection Bitcoin faced at the October high of $9,580. Bitcoin recently broke out of a 7 month long downward channel, but it has yet to capture a higher high than the high of last October, and faced strong selling pressure when testing this price point.

The $9,580 is a particularly strong resistance that pushed back bulls during last year’s October rally, as BTC bulls attempted to break for the five figure level above. This will require a significant amount of bullish momentum to break, and is likely to create some short-term issues for bitcoin’s price action.

bitcoin

2. Tesla’s bull run may be casting a shadow over Bitcoin

Another factor may be that Tesla, Elon Musk’s electric car company has been stealing attention away from Bitcoin. It seems investors may have pulled their BTC capital and re-allocated it to Tesla to capture some of the value creation from its exciting run.

Right now, TSLA is pulling ahead of BTC gains, with analysts predicting Elon Musk’s company could see stock price balloon as high as $6,000 per share by year-end.

3. Bakkt Option volume has been zero for days

Institutional traders have not shown any interest in trading Bitcoin futures, if Bakkt option volume is any indicator. The Bakkt exchange is geared towards institutional Bitcoin futures traders who want to trade a contract physically settled in Bitcoin. The exchange has terribly low interest right, and volume has been zero for over ten days now. This may be a sign that Bitcoin markets might be cooling down a bit.

Do you think Bitcoin can cross 10K in next few days? Let us know in the comments!


Images via Shutterstock, Twitter @skewdotcom @

Ethereum Could Be in The Early Stages of Its Next Journey to All-Time Highs

Ethereum has seen some incredibly strong price action over the past several days and weeks, with ETH’s massive 2020 rally coming against the backdrop of immense bullishness within the aggregated cryptocurrency markets.

Ethereum’s bulls have even been able to maintain its newfound position within the $180, in spite of the drop seen today by Bitcoin and other cryptocurrencies.

Analysts are now noting that the macro situation for Ethereum is becoming incredibly bullish, and that the rally seen over the past few weeks could mark the start of its journey to fresh all-time highs.

Ethereum Holds Above $180 as Analysts Eye Significant Near-Term Upside

At the time of writing, Ethereum is trading down just over 2% at its current price of $180.50, and it is currently trading down from 24-hour highs of just under $186 that were set earlier this week.

It is important to note that the cryptocurrency has been able to bounce from daily lows of $176 that were set in tandem with Bitcoin’s drop to lows of $9,200, and the aggregated market does appear to be entering another consolidation phase.

Analysts are currently eyeing significant short-term upside for the cryptocurrency, as Galaxy, a prominent crypto analyst on Twitter, explained in a recent tweet that he is buying ETH at $180, with at $350 short-term sell target.

“Buying $ETH here at $180 and looking to sell at $350,” he explained.

While looking at the chart he references above, it appears that this major upside could be catalyzed by the crypto breaking a multi-year descending resistance level it is currently caught beneath.

Could ETH Be Kicking Off Its Next Journey to All-Time Highs?

Satoshi Flipper – another prominent cryptocurrency analyst on Twitter – explained in a recent tweet that the crypto’s weekly chart shows just how far it could run in the future, further adding that he does believe it will set fresh all-time highs in the future.

“Need to look at the ETH WEEKLY to fully appreciate where we are in the cycle. Ethereum will have another ATH in the future and riding this all the way back up can be life changing money. I’m betting on it,” he said.

If Ethereum does garner the type of short-term momentum that Galaxy is anticipating it to see, then it truly could be in the early stages of the next parabolic uptrend that sends it to fresh all-time highs.

Featured image from Shutterstock.

Deutsche Bank Reports €5.3 Billion in Net Loss for 2019 as It Counts the Cost of Restructuring

Deutsche Bank Reports €5.3 Billion in Net Loss for 2019 as It Counts the Cost of Restructuring

Deutsche Bank Reports €5.3 Billion in Net Loss for 2019 as It Counts the Cost of Restructuring

A year of reorganization has left its mark on Germany’s leading financial institution. Deutsche Bank revealed this week it suffered significant losses in the last quarter and all of 2019. The banking giant claims that the damage is “entirely driven by transformation-related effects” such as compensation for sacked employees and devalued assets.

Also read: US Bank Silvergate Sees Growth in Crypto Clients, Despite Decreasing Deposits From the Sector

New Strategy is Gaining Traction, CEO Says

In a report published Thursday, Deutsche Bank announced a pre-tax loss of €2.6 billion (over $2.85 billion) and explained it had to absorb transformation charges of €1.1 billion, goodwill impairments of €1 billion as well as restructuring and severance expenses of €805 million. The bank’s net loss for 2019 amounts to the staggering €5.3 billion (almost $5.85 billion). The figure includes transformation-related deferred tax asset valuation adjustments of €2.8 billion.

Deutsche Bank Reports €5.3 Billion in Net Loss for 2019 as It Counts the Cost of Restructuring

In Q4, Deutsche Bank had a pre-tax loss of €1.3 billion, including transformation charges of €608 million and another €473 million in restructuring expenses. The net loss of €1.5 billion incorporates deferred tax asset valuation adjustments of approximately €400 million. According to the report, the transformation-related effects were largely in line with the expectations. Last year, the bank incurred 70% of the total costs to achieve the goals of the reorganization program which was launched in July and will continue through 2022. Deutsche Bank CEO Christian Sewing stated:

Our new strategy is gaining traction. Stabilizing revenues in the second half of 2019 and our consistent cost discipline both contributed to better operating performance than in 2018. Our client business is developing well, right across the bank.

The chief executive insisted the bank has a strong capital position and expressed confidence that it is capable of financing its transformation with own resources and eventually returning to growth. The report details, however, that Deutsche Bank’s revenues are down 2%, with pre-tax profit at €543 million. But if specific revenue items and transformation charges are taken out of the equation, the bank claims an adjusted pre-tax profit of €2.8 billion, or up 7% from the 2018 figure.

Deutsche Bank Slashed Over 4,000 Jobs in 2019

The Frankfurt-based financial institution is explaining the losses with the need to deal with the serious problems accumulated through the years. The measures introduced in 2019 included writing down the value of some assets and cutting 4,100 jobs. Last summer, Deutsche Bank announced it’s going to lay off at least 18,000 people by 2022, a fifth of its global workforce that should be reduced to 74,000 as it scales down investment banking and equities sales and trading operations. The bank’s management was also considering to cut up to 20% of its bonus pool and suspend the 2019 and 2020 dividend in order to reduce costs further. In 2018, €1.9 billion were paid in bonuses, despite a 14% cut.

Deutsche Bank Reports €5.3 Billion in Net Loss for 2019 as It Counts the Cost of Restructuring

The German lender has been dogged by many problems that have left observers concerned about its prospects. Being one of the world’s largest financial institutions, its current state inevitably contributes to the risks for Germany’s economy and the global financial system. Deutsche Bank is not an isolated case in Europe, where many other banks have been struggling to overcome the consequences of the 2008 meltdown.

This week, the European Central Bank published the results of its 2019 Supervisory Review and Evaluation Process. The ECB uses a scoring system to assess financial institutions, taking into account the viability and sustainability of business models, the adequacy of internal governance and risk management, the risks to capital, and the risks to liquidity and funding. With 1 being the best and 4 the worst score, the share of banks receiving an overall score of 3 increased to 43% in 2019 from 38% last year, only 18% achieved a score of 2, and no significant bank scored 1.

The review also indicated that the earnings of Europe’s most important banks are below their cost of capital. Business model risk remains a key area of concern due to low profitability, the ECB remarked in a press release while also emphasizing that internal governance continues to deteriorate. “Findings show that in a significant number of instances management bodies are not effective and internal controls are weak,” ECB concluded in the report.

Do you expect Deutsche Bank to achieve its restructuring goals? Share your thoughts on the subject in the comments section below.


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Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Bulgaria. Quoting Hitchens, Lubomir says: ”Being a writer is what I am, rather than what I do.“ International politics and economics are two other sources of inspiration.

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