"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 4 hours The Biggest Winners Of Q2 Earnings Season
  • 1 day Experts Suggest A Gold Shortage May Be Looming
  • 2 days The World Is Drowning In $247 Trillion Debt
  • 2 days Tightening Immigration Policy Could Hurt The Tech Sector
  • 2 days The First Bitcoin ETF Might Be Just Months Away
  • 2 days U.S. Rent Costs Hit All-Time High
  • 2 days European Allies Plan To Continue Trade With Iran
  • 3 days Bitcoin Bounces Off Key Resistance Level
  • 3 days These 3 Industries Are Immune To The Trade War
  • 3 days Is This The Answer To The Looming U.S. Healthcare Crisis?
  • 3 days UK Regulators Hit Facebook With £500,000 Fine
  • 3 days Tesla’s U.S. Tax Credit Coming To An End
  • 3 days Ex-Goldman Banker Caught In A Billion Dollar Fraud Scandal
  • 3 days Investors React To Escalating Trade War Drama
  • 4 days The Three Horsemen Of The Bitcoin Apocalypse
  • 4 days 10 Countries Feeling The Heat As The Trade War Escalates
  • 4 days The Exorbitant Cost Of Getting Ahead In Life
  • 4 days $1,000 Investment Bible Leaked For $10
  • 4 days The U.S.-Chinese Race To End All Privacy
  • 4 days Gold And Silver Struggle As Sentiment Shifts
Bitcoin Bounces Off Key Resistance Level

Bitcoin Bounces Off Key Resistance Level

Bitcoin’s recent move upward was…

The Three Horsemen Of The Bitcoin Apocalypse

The Three Horsemen Of The Bitcoin Apocalypse

On July 10th, two stories…

A Crypto Acquisition Backed By Goldman Sachs

BTC

The move by Circle Internet Financial, a cryptocurrency start-up backed by Goldman Sachs, to acquire the Poloniex cryptocurrency exchange is one that should have everyone from the dark corners of blockchain to Wall Street wondering what comes next.

The value of the deal has yet to be confirmed, but some reports have cited sources saying that this buy would run Circle around $400 million.

The price tag, though, is a drop in the bucket for what it could all mean for the cryptocurrency market.

Circle uses the blockchain technology that underpins bitcoin to provide peer-to-peer payment services, but it also offers over-the-counter bitcoin trading.

Add Poloniex into the mix and you get something potentially much bigger. Poloniex is the 14th largest exchange by 24-hour volume. It was also the first exchange to offer large-scale cryptocurrency-to-cryptocurrency trading.

Its claims to fame don’t end there, either: It was also the first exchange to reach $1 billion in daily volume. 

Now, Circle can take control over a marketplace that has a trade volume of around $1.5 million per day, with around 70 different digital currencies and tokens traded.

And Poloniex, for its part, gets cash and the opportunity to expand operations and infrastructure.

In other words, with this acquisition, a picture emerges of a potential new competitor to the leading U.S. exchanges right now: Coinbase and Kraken.

But there’s an even bigger picture: This is our first real glimpse of consolidation moves in the crypto trading space, leading analysts to wonder what acquisitions we might expect next.

Related: Why Criminals' Cryptocurrency Choices Matter To Average Investors

Crypto market enthusiasts view this is a good sign of things to come for the nascent industry.

Some will go as far as to suggest that the development signals that banks are getting serious about cryptocurrency. Indeed, the fact that Circle is a start-up backed by Goldman Sachs was not long on anyone.

Leading crypto coins certainly loved the news. Bitcoin continued to revive itself with an upward climb over $10,600 on Tuesday, and most credit the Circle acquisition news for the renewed crypto confidence.

According to CoinMarketCap.com, total cryptocurrency market capitalization has grown from $20 billion at the start of last year to some $500 billion in the past few weeks.

(Click to enlarge) 

Confidence has hit a few bumps in the road, but it hasn’t waned. The numbers speak volumes. Investors dumped $1.06 billion into crypto last year. This year, so far, it’s at $323 million, but we’re only in February, and possibly at the start of a big consolidation game.

By David Craggen for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment