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With bitcoins on the rebound, most blockchain stocks have experienced renewed bullish momentum. In addition, the news on the cryptocurrency provider Coinbase which carried out a transaction worth $ 5 billion and the subsequent publication of the case study provided the market with a clear idea of how major platforms could address security concerns in future by focusing on the cold storage solution.
Reuters, December 20, 2018, reported that one of the Big Four Auditors, PricewaterhouseCoopers (PwC), believes that the lack of insurance coverage against the risk of hacking and theft is hampering the growth of cryptographic markets. In part because large fund managers can not plunge into this mostly unregulated market without adequate insurance to reduce their systematic risk factors.
Meanwhile, a bipartisan account of Rep. Warren Davidson (R) and Darren Soto (D) seeks to exclude digital assets such as cryptocurrencies as defined as securities. However, one of the congressmen planned to introduce legislation to create a "class of activity" for cryptocurrencies and digital resources at the beginning of December. The ultimate goal of the law would be to regulate initial coin bids more effectively in the United States.
In the private sector, we learned that PayPal co-founder Peter Thiel made a substantial investment in the Layer1 cryptocurrency investment platform. Layer1 promotes itself as a platform that aims to be the investment company that defines the category for cryptocurrencies.
Based on our research, we have found that the following blockchain stocks have demonstrated substantial price movements based on changes in their corporate fundamentals.
Bitcoin Investment Trust
Bitcoin Investment Trust (GBTC) is one of the few traditional investment vehicles that monitor the market price of bitcoins and investors can become eligible to hold it in certain IRAs, Roth IRAs and other brokerage and investor accounts.
Last week, on December 15, 2018, the investment portal The Motley Fool published an article that questioned the long-term viability of the fund. The author continued to predict that the Bitcoin Investment Trust will eventually cease to exist within the next five years.
We believe that the negative impact of the point of view will create a short-term opportunity to buy blockchain stocks at a lower price.
Grayscale, the fund's sponsor, posted $ 216 million in net inflows to its Bitcoin Investment Trust in the three quarters of 2018. As a result, Grayscale now has custody of more than one percent of the total circulation of bitcoins. . After the Motley Fool article was published, it pushed the Bitcoin Investment Trust stock to a low artificial level that did not reflect the fundamentals of the market.
With the last bullish momentum in bitcoins, we believe that the share price of Bitcoin Investment Trust will also register a new uptrend. So if the price closes above the resistance around $ 4.50 per share, it will provide long-term investors with an opportunity to increase their exposure to the fund.
BLOK Technologies Inc
BLOK Technologies Inc (BLPFF) invests and develops emerging companies providing capital, technology and management skills to produce blockchain-enabled business applications. Last week, there were some significant changes in the company's senior management that could have positive implications for its share price.
As we learned that David Alexander resigned from his position as Chief Financial Officer, he could open the company to become more aggressive as the current director of the company, Mr. Yari Nieken, will serve as an interim financial executive.
In addition, BLOK Technologies Inc. has recently acquired 80% of the issued and outstanding ordinary shares of The Worx Solutions Inc, which has developed a Customer Relationship Management (CRM) software platform and data analysis for the retail sector.
Although these two key news items will certainly have a bullish impact on the share price of BLOK Technologies, we believe there is significant technical development to support a bullish argument. The ICC and the share price of BLOK Technologies Inc have a common divergence known as "bullish regular divergence". So if we see stock price moving above resistance near $ 0.0275, we believe it will probably attract further bullish momentum in the market.
Bottom line
After more than a month of continuous decline, the price of the bitcoin has moved above the $ 4000 level this week. With the Christmas holidays approaching next week, we believe it could reduce the volume of trade, but with a lower volume there could be strong price fluctuations in the market.
Therefore, prudent investors should try to cover their digital assets by increasing exposure to traditional investment vehicles such as the Bitcoin Investment Trust.
disavowal
The Blockchain shares have not been paid to mention any shares / companies within this article nor do we own shares in any of the companies mentioned in this article. More information on our complete disclosure can be found here – Full Disclaimer.
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