There were some great developments in the blockchain industry and the state of New Hampshire in the United made news after lawmakers put up a bill to make it legal for state agencies to accept cryptocurrencies as payment. After Ohio made it possible to pay state tax with cryptocurrencies, this bill will create considerable momentum to make cryptocurrencies mainstream in the largest economy in the world.
We also learned that the Italian Senate committee has approved an amendment called “Decreto semplificazioni” that defined key crypto industry terms like distributed ledger technology (DLT)-based technologies and smart contracts. The amendment will help regulate the industry and open up opportunities for legal businesses to enter the marketplace.
In the private sector, according to a report from Business Insider, a crypto merchant bank called Galaxy Digital has successfully raised at least $250 million to offer loans to crypto startups. Lenders can get loans by using crypto assets, real estate, and crypto mining hardware as collaterals.
Meanwhile, American health insurance giant Aetna Partners announced a partnership with IBM to create a blockchain network tailored to the healthcare industry. The blockchain network will make it easier to share sensitive clinical and other health-related information, reported Reuters.
While there was ample good news for the industry, cryptocurrency enthusiasts became concerned after a JP Morgan analyst said that “the value of cryptocurrencies is unproven” and made a forecast the bitcoin price might sink even further.
Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.
BIG Blockchain Intelligence Group Inc.
BIG Blockchain Intelligence Group Inc. (BBKCF) is a provider of Blockchain-agnostic search and analytics solutions. After Shone Anstey, the Executive Chairman of Blockchain Intelligence Group, appeared for a Q&A session last week, its stock price has soared and tested a key technical resistance level.
On the same day, CEO of BIG Blockchain Intelligence Group Inc, Lance Morginn said that “we have enough money in the bank to survive another 2 years without revenue,” which further accelerated the bullish momentum.
Prior to last week, BIG Blockchain Intelligence Group Inc‘s stock broke above the downtrend line, but it was trading sideways. However, soon after the comments from the company executives, the stock price went up to test the resistance near $0.0850 per share. While the stock price has come down a bit in the last few days, we believe the underlying momentum is still at play. Hence, if we see the stock price breaking above the $0.0850 per share in the coming week, it could easily open up the possibility of reaching $0.1050 per share in the short-term.
Amplify Transformational Data Sharing ETF
Amplify Transformational Data Sharing ETF (BLOK) is basically an actively managed ETF. It invests at least 80% of its net assets in equity securities of blockchain stocks who are actively involved in the development and utilization of blockchain technologies.
On January 20, 2019, Amplify Transformational Data Sharing ETF declared a $0.19 special dividend and since then its price has turned bullish.
The Amplify Transformational Data Sharing ETF remained bearish since October 2018, but earlier in January 2019, it broke above the downtrend line. After the announcement of the special dividend, the ETF price went up to test the resistance near $16.50.
Given that the Alligator indicator just reversed and gave a signal that the ETF price is bullish, we believe it will soon break above the resistance around $16.50. Once that happens, it will likely move further up, giving long-term investors an opportunity to ride the bullish momentum in the short-term till the next major resistance near $18.00.
As major governments are stepping up their game to bring the cryptocurrency industry under a regulatory regime, it will likely to end the wild west behavior of some of the companies that tarnished the public trust in the blockchain industry. Especially, the initiative from New Hampshire legislators can act as a catalyst for change in the entire global crypto industry.
The two crypto assets we discussed this week shows considerable potential to reap the benefit of a changing regulatory environment. Especially, investing in the Amplify Transformational Data Sharing ETF at this stage makes a lot of sense as 80% of the fund is invested in blockchain stocks.
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