According to an update on the crypto platform’s help page, Coinbase wallet will no longer support payment network Ripple’s XRP token. The digital asset is not the only cryptocurrency Coinbase has delisted as Bitcoin Cash, Ethereum Classic, and Stellar will also be unavailable. Coinbase Halts Wallet Support for XRP, BCH, ETC, and XLM The delisting will take effect from January next year and Coinbase’s wallet application will drop support for the aforementioned tokens. Coinbase Wallet like MetaMask and similar providers…
Mike McGlone – Senior Commodity Strategist at Bloomberg Intelligence – recently suggested that Bitcoin is on its way to becoming “global collateral.” He called the primary cryptocurrency a possible “leading indicator” for risk assets, which may be at risk given the crypto market’s latest decline.
Signs of Maturity?
As McGlone tweeted on Wednesday, most risk assets are struggling in the second half of 2022. Their headwinds primarily stem from the Federal Reserve’s “sledgehammer” of rising interest rates, which “may form a foundation for most cryptos.”
Rising interest rates have contributed to pushing Bitcoin ~70% below its all-time high while taking the NASDAQ down 20% year-to-date. Surrounding companies heavily dependent on the crypto market have been forced to slash jobs, or go bankrupt.
“Bitcoin is a leading indicator and may be maturing toward global collateral,” explained McGlone. With Bitcoin having recently failed to break $25k resistance, he thinks a fall in equities could soon follow.
The analyst said that the theme of the year’s second half is increasingly about asset deflation and global recession risk. At this time, he suspects Bitcoin could transition towards serving as a safe-haven asset, such as gold or treasury bonds.
Many long-term Bitcoin bulls consider the asset a form of “digital gold” due to its fixed supply and ease of transportability. Nevertheless, it has a tendency to move in line with equities markets, as do other top cryptos like Ethereum.
Ethereum, McGlone says, “faces merger risks,” but will likely benefit long term by facilitating the spread of crypto dollars. The Merge is a major upgrade to change Ethereum’s consensus mechanism in September. So far, both of the top stablecoin issuers – Tether and Circle – have confirmed support for the upgrade.
“Bitcoin has attained the status as a top market barometer and may exemplify the value of the technology,” continued McGlone. “Bitcoin’s leading indicator attributes are evident on weekends; it never stops trading and is no one’s project or liability.”
China: Falling Behind on Crypto
Regarding China – a country that has enacted multiple bans on cryptocurrency – McGlone said the country is “falling behind the technology’s advance.” While crypto dollars (aka stablecoins) continue to rise by market cap, the yuan’s value is declining rapidly.
The analyst believes the increasing popularity of stablecoins may be why China is trying to launch its own CBDC.