At the end of May, cryptocurrency exchanges report extremely low Bitcoin reserves on clients’ accounts. It indicates that more and more investors do not intend to sell their assets at the price of $9400 per Bitcoin.
The previous strong Bitcoin Hodlwave happened in early 2016 and set the conditions for the bull run that led to the record high Bitcoin prices.
According to the Nominex experts, historically the correlation between Hodlwaves and subsequent bull runs has been quite strong, although the market could also experience minor pullbacks in the short term.
Moreover, the worsening of the current financial crisis with the unprecedented 30% drop in the US gross domestic product contributes to the active search of alternative financial instruments, such as cryptocurrencies.
Media is full of stories with big investors, such as the billionaire Paul Tudor Jones, dedicating part of their portfolio to Bitcoin as a way to minimise the damage.
Altcoins pick up after the Bitcoin strengthening
With the strengthening of the Bitcoin price, the altcoin market capitalization is growing as well. Among the top15 altcoins by market capitalization, Ethereum (ETH) and Cardano (ADA) are showing the most impressive results.
Ethereum has reached the $230 level, growing almost 8% during May. With 100-day and 200-day moving averages indicate the move to the bull run.
Among the alt coins with the largest market capitalization, Cardano shows the highes growth rates – 40% growth from the May 1 to $0.069 levels with the new roadmap release.
CBDC: from synthetic currencies to Digital Dollar white paper
The International Monetary Fund deputy Tomasso Mancini-Griffoli encouraged central banks to try out synthetic central bank digital currencies (CBDC).
Central banks can benefit from creating a system with a private-public partnership, instead of choosing between private and public blockchain, argued the IMF deputy. In such a system, the private sector “issues a liability”, that is “fully backed by central bank reserves”.
At the same time, IMF continues to oppose the hybrid “crypto-fiat-currency” project SOV of the Republic of the Marshall Islands, which is eager to end their reliance on the American dollar.
In the meantime, on May 29, The Digital Dollar Project released its first white paper for the American central bank digital currency that was designed with the consulting giant Accenture.
Google’s foray into blockchain
On May 28, after the announcement of the new partnership deal between Google Cloud and Theta Labs, the Theta coin price surged more than 4x to $0.54, in comparison with the $0.12 level at the beginning of the month. Since then the price dropped to $0.30.
Alphabet’s subsidiary will assist with the Mainnet 2.0 launch of the decentralized streaming network and will become an enterprise validator of the network.
Google’s involvement in the blockchain industry could hardly be seen as active. Nominex experts highlighted that when businesses of such scale enter the market, it simply can not remain unnoticed by investors.
Crypto makes its way to Discovery Science and Showtime’s Billions
During the last spring days, the crypto world has made new steps to the mass culture. It is now known that the Discovery Science channel is set to air a documentary series on crypto “Open Source Money” on July 4 that will feature the Dragonchain’s story.
Notably, the documentary series production was fully financed with cryptocurrencies and will tell how such companies like Disney find new use-cases for blockchain technologies.
The US TV network Showtime is adding to the positive image of cryptocurrencies as well by mentioning Bitcoin and a hardware wallet as a central theme of crypto drama in the Billion’s 5 season premiere. According to Nielsen Media statistics, at least 610 thousand viewers watched the episode.
The change of narrative from negative to positive together with the awareness gorwth can lead to the spike of interest toward the cryptocurrencies, and consequently, the market growth, shared Nominex analysts.