Cryptocurrencies are heading for a 90 percent correction in ‘mass market wipe out,’ investment bank warns

A cryptocurrencies could lead to a “mass market wipe out,” technology investment bank GP Bullhound predicted in a report.

Cryptocurrencies will experience a “heavy correction” of 90 percent leading to a “mass market wipe out,” a technology investment bank predicted in a report seen by CNBC on Wednesday.

GP Bullhound’s “Token Frenzy: The Fuel of the Blockchain” report laid out the current state of cryptocurrencies, blockchain technology, initial coin offerings (ICO) and what they think the future will look like.

One prediction is that cryptocurrencies will experience a 90 percent correction within the next 12 months with “very few companies” surviving.

Sebastian Markowsky, a director at GP Bullhound, and main author of the report, explained that institutional investors are likely to come into the market and drive the price higher. More retail investors will get in to the market too, buying cryptocurrencies at elevated prices. As the market begins to see sharp falls later this year, it will exacerbate the selling causing “panic” and the eventual correction.

Mastercard blames cryptocurrencies for slight drop in first-quarter growth

A drop in customers buying cryptocurrencies with credit cards slightly dampened Mastercard’s quarterly growth, the company said on an earnings call this week.

While cross-border volumes grew by 19 percent, that number dropped by 2 percentage points from the fourth quarter, in part because fewer people bought digital currencies like bitcoin with their credit cards.

“This is due to the recent drop-off in crypto wallet funding,” Mastercard chief financial officer Martina Hund-Mejean said on the earnings call Wednesday. “We expect cross-border growth to moderate somewhat.”

Customers can use Mastercard to buy in and out of cryptocurrencies, and store them into what’s known as “crypto wallet.” But some banks have prohibited the practice.

Bank of America, JPMorgan Chase and Citigroup are among those that banned credit card purchases for digital currency in February, citing price volatility and potential credit risks.

Goldman sets new norm for bitcoin on Wall Street: venture capitalist

Goldman Sachs is moving ahead with plans to open the first bitcoin trading firm of any Wall Street bank and other banks will likely follow, said Spencer Bogart, a partner at Blockchain Capital.

“That’s what a lot of banks do, follow what Goldman does,” the blockchain venture capitalist told CNBC on Thursday.

“Most of these banks have heard about the numbers or seen the numbers that companies like Coinbase and Binance are putting up,” Bogart said on “Fast Money.” “There’s a real risk that some of those companies could overtake some of Wall Street’s biggest banks if they don’t get in the market.”

Bitcoin’s Key Resistance Stands at $10,000/each

After a strong 4 wk Bull Run which has seen the total value of all crypto coins spike 72% to $460-B.

Bitcoin accounts for 36.1% of all coins is headed toward Key resistance at $10,000 and it’s 200-Day MA at $10,015, a closely watched technical gauge of momentum for tech traders.

Bitcoin hit an intra-day high of $9,790.94 Friday.

Currently, Bitcoin is trading at: 9,711.1055,+61.7705, or +0.64%, as of 1:22a BST, the market is closed

Art-Verifying Blockchain Companies : verisart

Some of the most financially devastating crimes in the history of the modern world have occurred as a result of meticulous art fraud, and ‘Verisart’ is a new company that’s aiming to eliminate those sophisticated charades altogether. The company is using the power of the blockchain to ensure that pieces on the fine art market are the genuine article, giving traders complete confidence in the deals that they make.

Traditionally, the aforementioned art fraud has been a serious issue for the art market, with many potential buyers balking because of the risk of being made a fool. It may seem silly or paranoid, but that fear has been a real damper on the industry as a whole. Verisart hopes to use its blockchain tech to eliminate those anxieties and create a more robust art market.

Square Traded $34.1M in Bitcoin in Its First 4 Months

Data from the company, which it published this week, shows its Cash app shifting $34.1 million in BTC, having spent $33.9 million purchasing the cryptocurrency to begin its offering.

The figures make interesting reading in the year when the cryptocurrency exchange sector has become renowned for its ability to generate huge profits from trading fees.

From South Korea, where regulators have demanded backdated tax payments from exchanges that raked in hundreds of millions of dollars since 2017, to Binance’s $200 million gains in Q1 this year, businesses are capitalizing on user thirst for crypto.

Square’s setup remains relatively small-scale, the Cash app holding client funds on their behalf and only permitting $10,000 of purchases per user per week.

Goldman Sachs to begin bitcoin trading

It might have been unthinkable a few years ago, but now Goldman Sachs, one of the biggest names on Wall Street, has said that it will start using its own funds to trade with clients in a range of contracts linked to bitcoin price, the New York Times reports.

Initially it won’t be buying or selling actual bitcoin, but a team at the bank is examining regulatory and security hurdles that need to be overcome before they can start actually buying, selling and holding cryptocurrencies.

This is the latest development in Goldman Sachs’ hot and cold relationship with bitcoin and cryptocurrencies. At the end of last year Goldman Sachs CEO Lloyd Blankfein called bitcoin a vehicle for fraud, and predicted it would collapse, deriding the idea of Goldman Sachs needing a “bitcoin strategy.”

Just a few months later the company declared that cryptocurrency was here to stay, and it dove into market predictions, both fairly accurate and less so.

Bitcoin Cash gets a boost after being added to London Block Exchange

Bitcoin cash was up more than 7%, outpacing other major cryptocurrencies, Wednesday morning after London Block Exchange said it would support trading of the fourth-largest cryptocurrency.

“As we open our doors to UK crypto enthusiasts, we’re listening and acting on what the community wants – and that’s an array of good quality coin options to trade; all backed by a reliable, comprehensive and user-friendly service that they can trust,” Benjamin Dives, CEO of the exchange, said in a press release.

The exchange also said it would support Ethereum classic, currently the 15th largest cryptocurrency, which split from the flagship ethereum in July 2015. The cryptocurrency was up 0.8% Wednesday morning.