Bitcoin Is the Future of Collateral: Arcane Research


According to a recent 70-page report by Arcane Research in conjunction with Bitstamp, Bitcoin (BTC) is the future of collateral in the finance industry.

The report notes that Bitcoin is very similar to the internet, considering that it is a “blank canvas” on which developers can build creatively upon in any desired way.

Originally, Bitcoin was intended to serve as a cryptographically-secure digital currency. However, digital currency has evolved to be more of a store of value, a speculative asset for trading, and an efficient payment solution that could cause significant disruption in the financial industry.

That said the next step for the benchmark cryptocurrency is still unknown and could take on multiple forms. While many believe that Bitcoin’s next step is becoming the global reserve asset, Arcane believes that Bitcoin will take over the collateral industry.

The company asserted Bitcoin’s seemingly unlimited use cases make it the “greatest speculative asset in history.” For this reason, the asset trades with immense volatility, causing it to be especially attractive to derivatives traders. Derivatives trading is where a new case is expected to blossom.

Arcane reported that the primary cryptocurrency’s use as collateral has been significantly bolstered by the derivatives industry because of digital portability, helping it serve as a proof of concept for other collateral cases.

At the moment, the collateral industry is a $20 trillion market waiting to be tapped into by Bitcoin.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — February 25

Bitcoin appears to be struggling with regaining its bullish momentum, as the cryptocurrency has gotten confined within a consolidation range for the past 24 hours. BTC is currently in a pass-and-play mode between the $51,400 resistance and the $48,500 support amid thinning volume and volatility.

The prospects of Bitcoin falling below the $48k round figure seems very unlikely, at the moment, making a rebound in the coming hours possible. That said, the cryptocurrency would regain bullish stability only after a sustained break above the $52,500 resistance.

Meanwhile, our key resistance levels are at $50,000, $51,400, and $52,500. While our key support levels are at $48,500, $47,000, and $45,000.

Total Market Capitalization: $1.51 trillion

Bitcoin Market Capitalization: $928 billion

Bitcoin Dominance: 61%


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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.