Has the Next Bull Cycle Begun for Bitcoin and Ethereum?

Key Insights

• Technical analysis and golden cross historical performance trends indicate bitcoin and ethereum may have started their next bull cycle.
• A digital pound could grow the Bank of England’s balance sheet, consequently creating a form of quantitative easing.
• Asset management firm WisdomTree could be the first to market with a robust blockchain-native digital wallet and tokenized real-world assets offering.

Signals

The Bank of England and HM Treasury begin work on a digital pound.

Earlier this week, the Bank of England (BoE) and HM Treasury announced that the joint Bank-HM Treasury CBDC Taskforce has begun preparatory work to issue a digital pound. Following the announcement, the BoE published a consultation paper and technology working paper to illustrate why and how a digital pound could be used. Additionally, the central bank provided data files that informed the CBDC Taskforce’s creation of the consultation and technology working papers. For background, the CBDC Taskforce was formed in April 2021 by Treasury Secretary Rishi Sunak, now the current Prime Minister.