From the odds that the price of Bitcoin will crash 40% or more, to a suite of new stablecoins on the Ethereum network, here’s a look at some of the stories breaking in the world of crypto.
MarketWatch columnist Mark Hulbert says the odds that the price of Bitcoin will crash in the months ahead are now “overwhelming”.
The prediction is based on a study from the Journal of Financial Economics, which concludes any asset that rises 150% in two years or less has an 80% chance of crashing. The study defines a crash as a drop of at least 40% in the price over a two-year period.
So far this year, Bitcoin has surged 207%, from $3,746 to $11,526 at time of publishing.
Historically, the numbers are not far off from Bitcoin’s volatile performance in the past. BTC suffered a number of 30-40% drops in the midst of its 2015 and 2017 bull market cycles.
BTC reached a high of nearly $14,000 this week. A 40% drop would put BTC’s price at $8,600.
A Swiss bank says it’s developing its own suite of stablecoins built on Ethereum.
In a newly released whitepaper, Dukascopy Bank says the crypto assets will be pegged to the euro and other fiat currencies. A public testing stage is set to begin on July 3rd.
Ripple and XRP
Japanese banking giant and Ripple investor SBI Holdings says it’s adding seven new banks to its remittance app called MoneyTap.
A total of 20 banks are now using the app, which is fully licensed by Japanese regulators and uses Ripple’s blockchain-based cross-border payment solution xCurrent to power instant cross-border payments.