Monday, October 26th, 2020
Your Weekly Update On All Things Crypto
  • IMF call for New Bretton Woods Moment - CBDC's loom.
  • PayPal announces they will allow people to buy hold and sell crypto.
  • Bitcoin rallies over 14% to over $13,000
  • Alt-Coin Dominance takes a hit but finds critical support
  • Franklin Templeton Lead Investment in Curv
  • Picks of the Week feature RSR and ADA
IMF Call For New Bretton Woods Moment
On October 15th, IMF Managing Director, Kristalina Georgieva, delivered a keynote speech calling for a new Bretton Woods moment. (For more information on the original Bretton Woods accord, click here) Georgieva cited the economic calamity caused by COVID as a major reason for the reset reporting that the pandemic "Will make the world economy 4.4 % smaller this year and strip an estimated $11 trillion of output by next year."

The IMF Managing director goes on to list three economic imperatives in order to build back better than we were in a pre-pandemic world:

1. The Right Economic Policies - pointing to prudent economic policies in strong institutions. She urges central banks to avoid withdrawing economic support too early as it will hamper recovery efforts, yet mentions a watchful eye must be kept on the risks associated with elevated debt.
2. Policies Must Be For People - She stresses the importance of investing in people, protecting the vulnerable, stong education & training systems, accelerating gender equality, and investing in young people.
3. Climate - Georgieva warns about the damage of climate change and pushes for green investment and higher carbon prices as key levers in steering towards net zero emissions by 2050.

What This Means For Crypto:
While the significance of this announcement cannot be overstated, we must understand that this new Bretton Woods moment is most likely a rallying cry for the adoption of Central Bank Digital Currencies (CBDC's). In fact, 46 developed nations are now mulling over the idea of creating CBDC's. While providing accurate support for the global economy, CBDC's will also allow governments to track all of our spendings and keep a watchful eye over all of our financial dealings. This is the type of oversight the cryptocurrency movement was created to fight against. We must not lose sight of this as we march towards mass adoption.
PayPal Does Crypto
PayPal sent shockwaves across the crypto world by announcing last week that it will launch a new service enabling users to buy, hold, and sell cryptocurrencies. PayPal is a global, online banking platform with over 346 million accounts in more than 200 countries. On the heels of this announcement, Bitcoin rallied to $13,200, (up more than $1,300 on the day).

In addition to the ability to buy, hold, and sell crypto, PayPal announced that in early 2021, merchants will be able to be paid in crypto, and have it converted automatically into their local currency. This smashes major barriers to adoption because in many cases, the merchant will not even know they are accepting crypto! However, this news is not without its shortcomings. As it stands, users will only be able to hold crypto assets in PayPal, they will not yet be able to move cryptocurrency off the platform. While this is not ideal in the spirit of free and open commerce, it is still a gigantic step towards mass adoption.

This move was surely felt in the boardrooms of major banks and financial institutions around the world. Suddenly one of the world's largest banks is accepting cryptocurrency and many traditional institutions are left scratching their head trying to figure out how to catch up.
Bitcoin Blasts Off
Last week on the heels of PayPal's announcement, Bitcoin rallied 14.1% (up to over $1600) reaching its peak at $13,200. The rally fell just short of last year's high of $13,800, a price that hadn't been seen since previously since January of 2018. Bitcoin is now in the midst of its longest streak above $10,000 and shows no signs of a major breakdown. We expect the price to consolidate between 13.8K - 12.5K for a few weeks before mustering the strength to make it's next push back to all-time highs by Q1, 2021.
Alt-Coin Dominance
While the total crypto market cap reached highs not seen since May of 2018, Alt-coin values relative to Bitcoin plummeted in the wake of Bitcoin's rocket-fueled accent. Alt-coin dominance sunk all the way to the lower support level of the descending channel. The alt-coin bottom also intersected with a critical horizontal line of support at 37.5% alt-coin dominance. We expect a retest of this line in the coming weeks. If support is broken, we may be in for more alt-coin losses as value flows into Bitcoin. However, if support is held, we expect to see a strong alt-coin rally back to the upper line of resistance in the channel.
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Franklin Templeton Lead Investment in Curv
Franklin Templeton, with over $1.4 trillion in assets under management, has shifted from being a customer to an investor in digital asset Curv. The other lead investor is Illuminate Financial and and combined they totalled $23 million in a series A last Thursday.

Curv is a cloud based wallet that gives you "bulletproof protection, instant availability, and total autonomy" over all your digital assets. Franklin Templeton is yet another shift in the traditional industry's adoption into crypto.
Reserve Rights (RSR)
Reserve is a flexible pool of stablecoins designed to reduce risk through diversification and decentralized governance. This project shows a lot of promise, but the most bullish news about Reserve Rights remains that one of their lead investors, is Peter Theil, co-founder of PayPal.

One can only speculate that RSR will play an integral role in PayPal's ability to convert crypto into fiat dollars. Although we may see some consolidation, we expect RSR to be a strong asset in the coming bull run. After a nearly 75% correction, RSR seems to be rebounding nicely off it's bottom.
Cardano (ADA)
Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
Founded by ex-Ethereum CEO, Charles Hoskinson, Cardano boasts a powerhouse team with solid development and community support to boot.

We expect Cardano to be a solid hold for the coming bull run and are looking for a rebound off the ascending line of support.
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