CryptoAM: Goldmans new guy, JP's Quorum, and the House of Reps on Crypto

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Good morning everyone! Moon mission is a go…there was a 10% move in a matter of minutes yesterday!

3 things you need to know:

One: Goldman Sachs’ future CEO is crypto friendly. David Solomon, who will become CEO in October, said that Goldman must, “evolve its business and adapt to the environment." Clients are interested in crypto and Goldman is exploring how it can best serve its clients.

  • Sentiment: This is a stark contrast to J.P. Morgan CEO Jamie Dimon’s comments last summer where he labeled Bitcoin as a fraud. It may seem to some that big banks are anti-crypto but the reality is they have invested more money into DLT than any other industry.

  • Good for HODLers, not so great for traders. As big players enter the crypto-markets, the markets and themselves will become more sophisticated, and trading them will become harder. I don’t personally see this happening for at least a year or so, but it’s something to keep in mind.

  • Read more…

Two: J.P. Morgan’s Quorum Blockchain is getting some real world use. As far as permissioned blockchains go, Quorum seems to be alright. There were rumors a while back about a potential spin-off, since the original lead of the blockchain program left after a couple of months to start her own business. Despite those rumors, Quorum seems to be chugging along just fine.

  • In action: It phantom-issued a $150 million, one-year, floating-rate Yankee certificate of deposit on the blockchain, in parallel with the actual issuance of the CD. Investors in the CD included Goldman Sachs Asset Management, Pfizer and Western Asset.

  • “Overall, the promise of blockchain is that you’re sharing infrastructure between participants — so issuer, dealer, investors, custodians and administrators can all see one golden source of truth of a trade or in this case a debt instrument” - Christine Moy, JP Morgan Blockchain Lead.

  • Read more…

Three: Today the US House of Representatives’ Committee on Financial Services is talking crypto. They will be hold a hearing entitled, “The Future of Money: Digital Currency” at 2pm today. This should give some great insight into how the government is tackling the regulation of cryptocurrencies. I will be there in person, so if you want some live updates come join us on our telegram!

  • “This hearing will examine the extent to which the United States government should consider cryptocurrencies as money and the potential domestic and global uses for cryptocurrencies. The Subcommittee will evaluate the merits of any uses by central banks of cryptocurrencies, and discuss the future of both cryptocurrencies and physical cash.”

  • Read more…

Also in the news:

What I’m reading today

Balaji S. Srinivasan on his 15 thoughts about tokens.

Tokens are all the rage these days! There are two important question though… how did we get here and what actual value to they provide? Lucky for us, Balaji (the CTO of Coinbase) was kind enough to outline 15 thoughts on the state of tokens.

1. Tokens are possible because of four years of digital currency infrastructure

2. Tokens vary in their underlying blockchains and codebases

3. Token buyers are buying private keys

4. Tokens are analogous to paid API keys

5. Tokens are a new model for technology, not just startups

6. Tokens are a non-dilutive alternative to traditional financing

7. Tokens can be bought by any American (>30X increase in buyers)

8. Tokens can be sold internationally over the internet (~20–25X increase in buyers)

9. Tokens have a liquidity premium (>1000X improvement in time-to-liquidity)

10. Tokens will decentralize the process of funding technology

11. Tokens enable a new business model: better-than-free

12. Token buyers will be to investors what bloggers/tweeters are to journalists

13. Tokens further increase the primacy of the technologist over the traditional executive

14. Tokens mean instant custody without intermediaries

15. Tokens may be generalizable to every tech company through paid logins

He goes more in depth in the article, so if you’ve ever wondered to yourself what exactly you’re buying when you invest in cryptocurrencies — I would check it out!

Around the corner:

Tell us what else to add!

Market Outlook:

Quick Take

We’re very, very bullish. Yesterday, I mentioned that it was time to pay attention. Turned out to be more correct than I even imagined. There was a $600 move through 6.8k to 7.4k in a matter of an hour, and thats the level we’re trading at right now.

I think we’re primed to continue the run towards 7.8k and beyond. If we break 7.8k, we are likely to see mid 8k Bitcoin shortly after. Intraday 10%+ moves are rare and generally draw in interested buyers and make sellers less likely to follow through.

Personally, I’ve seen some OTC sells taken off the books as people seem to be expecting price to rise higher. As always though, trade with caution.

The chart today shows me three different scenarios. I’m leaning towards scenario 1 and 2, with 2 being the most likely. I believe we are due for a retracement before we continue forward with our run.

Daily Chart

For those unfamiliar with the Ichimoku cloud, I suggest reading this guide. It looks scary, but it’s pretty simple!

It’s just auto-generated support levels (based on moving averages). All you need to know for this graph, is that the green candle breaking into the red “cloud” is very, very bullish and indicates that we will likely reach the top end of the red cloud.

Fear & Greed

One thing to note is that the market is not overheated yet. Look towards alts to judge whether the market is overheating. Over the next few days I’m expecting the coins that Coinbase is considering to overperform, and have moved my bag according :)

❤️ Links if you want to support CryptoAM ❤️ 
  1. Sign up for Robinhood and get a free stock (worth anywhere from $5-$200) 

  2. Leverage trade Bitcoin on Bitmex (10% off fees) 

  3. Trade Altcoins on Binance 

  4. ($1 in BTC free for sign ups)

  5. BTC Address: 1DyxmdvDBFRUP6E8ddh5xxRGJKfidgAzyF

  6. ETH Address: 0x24042BAd591F17c1beC9e413487eE12EC1ceAcd0

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