- Bitcoin price continues to attempt to gather strength but is pegged back closer to USD 9,100 levels
- A new Twitter survey suggests that coronavirus discussions in the crypto communities are little more than a mixture of doom prophets, macro hedgers and Bitcoin safe haven believers.
- Moody’s have given the greenlight to the new KYC blockchain platform
After some attempts to renew bullish moves and break the trend, Bitcoin has given up on a key support level now and trades close to USD 9,000, with a daily high of USD 9,446 (CoinDesk) now some distance away.
As price continues to struggle, more and more analysts are now wondering: is China’s coronavirus outbreak really having anything to do with this? Bitcoin as digital gold and Bitcoin as a safe haven asset seemed to be a strong argument earlier on, with tensions between Iran and US driving up prices of gold and Bitcoin, while initial health scares in China did the same.
But now, the trends have diverged, with gold continuing to break new multi-year highs in price per ounce in US dollars, but Bitcoin has since parted ways with the precious metals, letting go of USD 10,000 levels as coronavirus fears spread into Italy in Europe.
There has been a ton of Coronavirus talk in bitcoin/crypto circles.
Why do you think that is?
A) We’re “sky is falling” types/prophets of doom
B) We’re more hedging-macro-risk oriented
C) Belief that BTC can/will act as safe haven
D) All of above
E) Other (use comments)
— Nathaniel Whittemore (@nlw) February 24, 2020
A new survey on Twitter by crypto analyst Nathaniel Whittemore suggests that finance and tech world have indeed felt the touch of the mutated strain of influenza, with more prominent voices entering the discussion. Between them, they have been debating the government’s reports, market impacts, and even personal preparation. After asking more than 1,500 people their opinions on why crypto interest hung about the Coronavirus, some surprising results were thrown up.
Surprisingly, a quarter (25%) of respondents believed that this interest was due to the belief that Bitcoin was a new safe haven asset that should go up in price with these kinds of fears and instability. But now that we’ve seen prices go down despite heightened risks, is this no longer the case? About a fifth of respondents thought equally that the chatter was mostly led by doom and gloom prophets, as it was because of macro hedgers.
A third of all respondents (34%) believed that all these reasons contributed to the peaking of coronavirus-related conversations in crypto spheres.
Insightful? Or merely more noise to add to the pile of opinions? At BitcoinNews.com, we can only report on what can be seen and heard, but if there’s one thing Bitcoin price has proven, it’s that it can go up and down, and does not need any particular reason to do so.
Those in the United Arab Emirates won’t really care as a new Know Your Customer (KYC) platform in the gulf nation has just been given a positive credit rating by Moody’s Corporation. Local media outlet The National first broke the news, writing that the famous ratings agency had given the thumbs up due to the platform’s perceived potential to bring improvements to the quality of assets while bringing profits a boost.
Six banks had come together to form a consortium holding almost 45% of UAE’s banking assets that would share verified customer data over a blockchain. Moody’s said that this new KYC portal should improve compliance locally and abroad, while securing customer data. It stated:
“We expect the KYC blockchain consortium to support the asset quality of UAE banks primarily by reducing operational risk. The platform will facilitate faster and more secure onboarding, and exchange of authenticated and validated digital customer data and documents through distributed technologies powered by blockchain.”
Of note is how Moody’s believes that the new technology will protect data against breaches, something that banks will be increasingly aware of given new GDPR requirements. The agency said:
“The platform will support regulatory oversight of banks’ collection and management of KYC data. We also expect it to help credit risk management with better data for client underwriting and debt collection.”
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