Bitcoin (BTC/USD) continued in six-day winning streak and broke even above the $250 mark, proving to be still popular among traders and investors.
We could see all the major 10 coins by market capitalization rising, boosting the bullish trend for cryptocurrency, leaving bitcoin surpassing its 50-day moving average.
Litecoin (LTC/USD) followed the trend and showed even stronger advance as bitcoin. Such multiplication was expected as litecoin tends to strengthen the sentiment on bitcoin on both sides during higher volatility on the market. Thus Litecoin even reached the highest level in 2015.
We can expect the price to climb even to the $260 level, where traders could take their profits and the rally could be stopped. Nevertheless, if the rally continues, we can see it reaching $300-$320 range.
Besides the increase, bitcoin experienced an optimism from the technical side. According to a fresh report from Santander InnoVentures in collaboration with Oliver Wyman and Anthemis Group, blockchain technologies could lower banks’ infrastructural costs by $15-20 billion by 2022 via elminating central authorities and bypassing non-effective and expensive payment networks.
Even investors could feel rising confidence in the products with underlying assets are non-transparent or central authorities cause property rights uncertain.
‘In time, distributed ledgers will support ‘smart contracts’ – computer protocols that verify or enforce contracts. This will lead to a wide variety of potential uses in securities, syndicated lending, trade finance, swaps, derivatives or wherever counterparty risk arises,’ the report says.
During the previous month, the Euro Banking Association (EBA) released a report, stating that distributed ledgers could have potential to decrease costs, lift speed and enhance product offerings. Moreover, EBA added that cooperation among Payment Service Providers (PSPs) and the bitcoin community was necessary as it would determine the future relationship between traditional banks and the ‘2.0’ sector.
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