Autor: dot-traders

Veröffentlicht am

Bitcoin is more of a risk asset than an inflation hedge, Bank of America says

BofA says Bitcoin is not a good store of value or inflation hedge as long as it trades more like stocks than gold.

Bitcoin’s correlation to stocks has increased significantly since its peak in November 2021 and currently trades more like a risk asset that its reference as digital gold, analysts at Bank of America said on Wednesday.

According to Alkesh Shah, a lead analyst at the US banking giant, Bitcoin’s growing lockstep trading with stocks has removed the benefit the cryptocurrency had for investors as a hedge against inflation.

Volatility, Shah said in a note from the bank, meant it’s no longer trading alongside traditional hedge assets such as gold.

As such, the BofA analyst suggests that the flagship cryptocurrency is unlikely to gain traction, in current circumstances, as a store of value.

Insider quotes the Bank of America strategist as saying that correlation between Bitcoin and gold has shrunk to near-zero levels. Meanwhile, the crypto asset has seen the correlation with stocks surge to all-time highs during last month’s market sell-off.

And with Bitcoin trading in lockstep with the Nasdaq 100 and the S&P 500, it’s expected the digital gold would continue to lose its appeal as a possible ‘safe haven asset.’

BofA thus expects the benchmark crypto to lead the rest of the digital asset market in remaining risk assets as long as volatility remains so high.

While the analysts see volatility in Bitcoin prices as a factor likely to put investors in developed markets off, they say the outlook may be different in developing economies. The bank believes those in countries plagued by runaway inflation are likely to see BTC as a better inflation hedge or store of value.

Bitcoin traded to highs near $45,000 on Wednesday to maintain its slight upside momentum after plunging more than 50% from its peak last year. The cryptocurrency is now 35% off that peak, while gold has stayed around the $1,800 per ounce level.

Elsewhere, stocks have fluctuated massively year-to-date, with Nasdaq sinking into correction in January amid rising inflation and a hawkish tilt from the US Federal Reserve.

The post Bitcoin is more of a risk asset than an inflation hedge, Bank of America says appeared first on Coin Journal.

Veröffentlicht am

Solana v Terra – Why LUNA could outperform SOL in 2022

Key Points: 

  • Both Solana and Terra went parabolic in 2022.

  • Solana and Terra could outperform the market again in 2022. 

  • Solana’s security issues favour LUNA outperforming SOL this year.

Solana (SOL)

Solana is a blockchain platform that enables developers to create and run decentralised applications, or Dapps for short. It has been designed with scalability in mind so it can process high numbers of transactions without slowing down user experience like other blockchains. It has lower transaction fees and can process more transactions than other blockchains, making it faster in many ways.

Terra (LUNA)

Terra is a public blockchain protocol that creates stablecoins by using open market arbitrage incentives and decentralised Oracle voting. The result? Stablecoin holders can spend, save or trade their coins instantly across all major platforms with no transaction fee! Users get staking rewards as well as governance power in return for holding onto these tokens.

Which one is a better buy?

Both Solana and Terra had an amazing year in 2021. Now that bulls are returning to the markets; both could perform well. They could easily retest or surpass their most recent highs.

However, comparatively, Terra could give higher gains than Solana. That’s because Solana has experienced downturns recently that have put a dent to its credibility. Even a grayscale report on crypto pointed to this as a risk factor for Solana.

This is a factor that could easily see it experience more volatility when compared to Terra. Terra on the other hand has a lot going for it at the moment. It has built a reputation as one of the best cryptocurrencies for the launch of algorithmic stable coins.

Currently, Terra is the second-largest DeFi platform in the market, second only to Ethereum. This is a feat it has achieved in less than one year. With the demand for algorithmic stable coins on the rise in the market, LUNA has what it takes to grow exponentially since it is the power behind the Terra ecosystem.

The post Solana v Terra – Why LUNA could outperform SOL in 2022 appeared first on Coin Journal.

Veröffentlicht am

XRP vs Stellar Lumens (XLM) – Why this could be the year XRP takes off

An end to the case with the SEC could be a game-changer

Key Points:

  • XLM and XRP target the trillion-dollar cross-border payments market. 

  • XRP has underperformed XLM due to issues with the SEC.

  • A good ending to the Ripple/SEC case could see XRP go parabolic in 2022. 

Ripple (XRP)

XRP Ledger is a public blockchain that provides developers with an open-source foundation for executing the most demanding projects. This low latency, fast and reliable ledger has features like an easy development environment to help reduce time spent in coding which ultimately makes it more efficient than other alternatives out there today! It is also environmentally friendly.

Stellar (XLM)

Stellar is a network for currencies and payments that allows users to create, send or trade digital representations of all forms of money. It’s designed so the world’s financial systems can work together on one single system – it offers faster speeds than typical blockchain-based networks while being cheaper in terms of both time & energy consumption!

Which one is a better buy?

Both Stellar and XRP are pretty good buys at current prices. Their fundamentals are pretty strong, too. They both target one of the largest markets in finance, and that’s the trillion-dollar cross-border payments market.

Over the past year, XLM has outperformed XRP, and for good reason. Since 2020, XRP has been fighting a legal battle with the SEC. This has held it back all through, while XLM has had its run alongside the rest of the cryptocurrency market.

However, things could change in 2022. Most analysts are in consensus that the case may not drag further than 2022. There is also speculation that Ripple could win the case.

If this happens, then things could turn pretty well for XRP. In fact, it could be the wildcard that could see XRP rally and reclaim its position as the 3rd largest cryptocurrency, one that it held for many years.

That said, Stellar, too, has a lot going for it, especially in terms of its ecosystem growth. As such, it makes sense to have both in a crypto portfolio.

Want to learn how to safely invest in XLM or XRP? Check out our comprehensive XLM buying guide here and XRP here or purchase from our recommended platform below!

Buy XLM & XRP here>


The post XRP vs Stellar Lumens (XLM) – Why this could be the year XRP takes off appeared first on Coin Journal.

Veröffentlicht am

Cardano vs Avalanche: Why does AVAX has an edge over ADA in 2022?

Cardano slow development puts it at a disadvantage against AVAX

Key Points:

  • Both Cardano and Avalanche are high-quality platform blockchains

  • Both performed well in the last Bull Run.

  •  Avalanche has a much bigger ecosystem and better prospects for parabolic gains.

Cardano (ADA)

Cardano is a blockchain platform that uses peer-reviewed research and evidence-based methods to provide unparalleled security, sustainability for decentralized applications & systems. It does this by combining pioneering technologies with one goal in mind – To give power back from structures like banks or governments which have been taking it away from people all these years!

Avalanche (AVAX)

The Avalanche protocol is a new approach to smart contracts and blockchain that offers strong safety guarantees, quick finality of transactions with high throughput without compromising decentralization. The platform enables developers who want their decentralized application or enterprise deployment up quickly on one interoperable network to seamlessly scale across multiple blockchains using just one open-source system – giving them greater flexibility than current solutions allow while still achieving rapid growth rates unlike anything else out there!

Which one is a better buy?

Both Cardano and Avalanche are among the best platform blockchains in the market today. In fact, they are among the few likely to give Ethereum a run for its money in coming years. As this happens, both of them could give investors exponential gains not just in 2022 but for years to come.

However, Avalanche seems to have an edge so far. In the 2021 cryptocurrency Bull Run, Avalanche rallied by thousands of percentages, easily dwarfing any gains made by Cardano.

The same scenario is likely to repeat in 2022. While Cardano is a great project, its development has been a little slow and dragged on for years. Comparatively, Avalanche has grown pretty fast over the last year, and now has a huge Dapps ecosystem building on top of it.

For the reputation it has built so far, Avalanche stands to draw in even more Dapps developers in 2022. This is a factor that could drive up demand for AVAX tokens in 2022. Once bulls gain full control of the market, AVAX could easily go parabolic again in 2022.

Want to learn how to safely invest in AVAX? Check out our comprehensive AVAX buying guide here or purchase from our recommended platform below!

Buy AVAX here>


The post Cardano vs Avalanche: Why does AVAX has an edge over ADA in 2022? appeared first on Coin Journal.

Veröffentlicht am

The best altcoins to short-sell after February rally in the crypto market

After seeing some selling pressure at the start of the year, the crypto market has rebounded sharply this month. While this is a good sign the market is headed in the right direction, it also presents a good opportunity for short sellers to get in. Here is what you need to know:

  • As most coins surge, they are now primed for a pullback, giving short-sellers the chance to earn in the process.

  • Besides, there are still some weaknesses in this recovery and as such, it won’t be a surprise if we retreat slightly.

  • But before you short sell, understand that you will be exposing yourself to unlimited risk.

In case you are looking for some decent crypto assets to short sell, the following is a simple list to consider:

Ethereum (ETH)

Ethereum (ETH) is one of the main coins in the market only second to Bitcoin. After the January decline, ETH has added nearly 20% in value over the last 7 days and has crossed over the crucial $3000 mark. 

Data Source: Tradingview

But we are starting to see the coin lose much of that momentum. A pullback is well on the cards and as such, short-sellers can find decent entry points and ride the downward wave for some decent profits.

Uniswap (UNI)

Uniswap (UNI) is one of the leading decentralised exchange protocols in the market. The native token UNI has been performing relatively well, surging by a whopping 15% in the last 7 days. 

In most cases, when there is weakness in the main crypto assets like ETH and BTC, smaller coins like UNI tend to fall further. This gives you a decent chance to earn some profits with shorting.

There are also a few other coins you can consider. They include Gala (GALA), Shiba Inu (SHIB), and others. Make sure you use proper capital management though to avoid serious risk.

The post The best altcoins to short-sell after February rally in the crypto market appeared first on Coin Journal.