Alibaba chief calls for bitcoin bubble but constructive on blockchain

Tuesday, June 26, 2018 5:08 AM UTC

Alibaba Chairman Jack Ma says that he would stay away from bitcoin because it could be a bubble but he reportedly seems to be constructive on the blockchain.

Ant Financial, an affiliate of Alibaba’s backed by some of the biggest names in global finance and investment, has explored blockchain technology for years, including to clean up China’s murky charities. The FinTech associate of e-commerce giant Alibaba unveiled a joint venture in Hong Kong Monday that uses blockchain for a cross-border remittance service. At the launch event hosted by Ant Financial, Ma advocated for blockchain in mainstream finance.

He appeared to be apprehensive on the traditional banking industry yesterday, claims that overseas payments are charged huge fees by the financial institutions. Ant Financial, blocked from buying Moneygram International Inc., now working on constructing something better and count on blockchain-based remittances beyond just Hong Kong to the Philippines.

“Blockchain technology could change our world more than people imagine,” Ma told reporters in the former British colony, home to a large population of Filipino workers and domestic helpers who send money home regularly. “Bitcoin, however, could be a bubble.”

Last year, the journey from $735.3 to a whopping $19,891. (at BITFINEX exchange), or 2,605% surge was commendable. However, on the contrary, Bitcoin prices have tumbled below $7,500 mark in the recent past, the bears have held steady from the last couple of months’ trading sessions.

Although the bulls have bounced back today from the lows of $5,755 levels after dragonfly doji pattern at $6,148 levels, the bullish momentum is not convincing. As a result, the trend goes in a narrow range for the day.

It is now stuck in the range between $6,259 and $5,755 levels from last two-three days but more bearish potential for the day is foreseen.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 126 levels (bullish), while hourly USD spot index was at -145 (bearish) while articulating at 05:05 GMT. For more details on the index, please refer below weblink:

http://www.fxwirepro.com/currencyindex

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