German Bank BayernLB Predicts Sharp Rise In Bitcoin Price

German Bank BayernLB Predicts Sharp Rise In Bitcoin Price
October 3, 2019


The cryptocurrency market remains slightly bullish as Bitcoin (BTC) battles to stay at about $8,350 levels. In the past 24 hours, the crypto has gained 1.1%. Ethereum (ETH) has gained 2.1% to close at $179.46. Likewise, XRP is trading at $0.2515, representing a gain of 1.8%. Other major altcoins which have gained in the past 24 hours include EOS (EOS-$2.99, 1.9%), Bitcoin Cash ($224.19, 0.8%), Huobi (HT-$3.18, 1.3%), Ethereum Classic (ETC-$4.65, 0.8%), and Cosmos (ATOM-$2.59, 5.7%), Tron (TRX-$0.0144, 3.8%), LEO (LEO – $1.04, 0.1%),  Cardano (ADA-$0.0394, 2.9%), Binance Coin (BNB-$15.83, 0.8%), Monero (XMR-$55.93, 1.3%), OKB (OKB-$2.15, 1.7%), Litecoin (LTC-$56.05, 0.1%), Dash (DASH-$70.17, 0.7%), Tezos (XTZ-$0.9410, 2.7%), IOTA (IOTA-$0.2791, 3.4%), Stellar (XLM-$0.0592, 1%) and ChainLink (LINK-$1.98, 6.5%).


Government level initiatives

DHS grants money to Danube Tech to build blockchain security systems

To build blockchain-powered security systems, the US Department of Homeland Security (DHS) has granted $143,478 to Danube Tech, an Austrian company. In particular, the US DHS Science and Technology Directorate (S&T) stated that Danube Tech was given a contract to help the department in fighting against fraud and duplication of government-issued documents such as licenses and certificates.

Notably, services such as the US Customs and Border Protection (CBP), Citizenship and Immigration Services, and Transportation Security Administration will be able to benefit from the planned security systems, which are developed based on blockchain technology.

“Current issuance processes are often paper-based, do not facilitate data exchange, and use among systems and could be susceptible to loss, destruction, forgery, and counterfeiting. S&T is exploring the application of blockchain and DLT to issue credentials digitally to enhance security, ensure interoperability, and prevent forgery and counterfeiting.”

The grant is made under the S&T’s Silicon Valley Innovation Program (SVIP), which offers finance to private sector firms, to create high-tech security systems for DHS. Firms that take part in SVIP are granted up to $800,000 to build and employ commercial technologies for homeland security purposes.


Private sector initiatives

Several Japanese brokerage firms establish Japan Security Token Offering

Japanese brokerage firms such as SBI Securities, Daiwa Securities, Rakuten Securities, Securities, Nomura Securities, and Japan’s financial giant Monex have jointly established Japan Security Token Offering (STO) Association with head office in Tokyo.  The STO Association was established with the aim of assisting the development of STO financing by bringing together experts in the sector and guaranteeing regulatory guidelines and safeguarding investors.

The Association is chaired by Yoshitaka Kitao, CEO and representative director of SBI Holdings and an exec at Ripple Labs.


Rapyd successfully raises $100 million

Rapyd, which offers fintech-as-a-service, has successfully raised $100 million in a funding round headed by Oak HC/FT, a growth equity investment firm.

Prominent investors include Tiger Global, venture capital firms General Catalyst, Coatue, Entrée Capital, Target Global, and online payments processor Stripe. Rapyd intends to set aside the money generated to the creation of a unified cloud-based tech platform built to permit enterprises to incorporate fintech and payment abilities into commerce applications.

The firm will also use a portion of the funds to further develop its Rapyd Global Payment Network that offers businesses access to over four billion potential clients and payment modes, including e-wallets, bank transfers, and others.

Arik Shtilman, co-founder and CEO of Rapyd, noted: “Global commerce is at a critical inflection point as businesses are pressed to launch new applications, process and accept local payment methods, disburse funds, and manage risk and compliance so they can offer highly localized customer experiences without having to build their own infrastructure.”



BayernLB sees a big rally in Bitcoin in the future

German bank BayernLB has published a report which forecasts a big rally in Bitcoin (BTC) in the coming year. The report, comparing Bitcoin (BTC) and gold, states that the impact of the upcoming Bitcoin halving phase is not yet priced into the current price of about $8,300. The Munich-based bank states that the yellow metal had to gain its high stock-to-flow ratio “the hard way over the course of millennia.” The report further states that Bitcoin, on the contrary, will probably attain a stock-to-flow ratio comparable to that of gold in 2020.

Manuel Andersch, a senior FX analyst at the Bayerische Landesbank and author of the research report, argues that stock-to-flow ratio of an asset is a precise way to measure the “hardness” of the asset. Andersch said: “Historically speaking, it has invariably been the commodity with the highest stock-to-flow ratio at that juncture which has been used as money because this enabled the best value transfer over time.”

The stock-to-flow ratio is calculated by dividing the quantity of assets held as reserves by the amount of assets produced per year. Andersch believes that Bitcoin’s stock-to-flow ratio will certainly increase sharply in May 2020. He says: “If the May 2020 stock-to-flow ratio for Bitcoin is factored into the model, a vertiginous price of around USD 90,000 emerges. This would imply that the forthcoming halving effect has hardly been priced into the current Bitcoin price of approximately USD 8,000.”

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Ian Maguire

Ian Maguire

Ian is our resident contributor to the latest going ons in the cryptomarket, keeping up to date with the latest icos and coins

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