Advertisements

Bitcoin Suddenly Dives Below $7,000 As Crypto Markets Lose Billions

Bitcoin and cryptocurrency markets were suddenly sold off today, with the bitcoin price losing around $200 per bitcoin in minutes and dipping under the psychological $7,000 mark once againcontinuing a period of relative volatility for digital tokens.

Bitcoin-rivals ethereum, Ripple’s XRP, bitcoin cash, litecoin, EOS and binance coin were also heavily sold off, wiping billions of dollars from the combined cryptocurrency market capitalization.

The cause of the sudden sell-off was not immediately clear, however, analysts have noted a drop in crypto market trading volume recently.

“All is quiet on the crypto front. Perhaps, a little too quiet,” Mati Greenspan, the founder of bitcoin and crypto research outlet Quantum Economics wrote in a note ahead of the bitcoin sell-off today, adding the dominance of the world’s biggest stablecoin, tether, “seems to be waning.”

Bitcoin was earlier trading at $6,880, down by 3.5% over the last 24-hour trading period, according to prices from U.S.-based crypto exchange Coinbase, with ethereum, Ripple’s XRP, litecoin, and bitcoin cash all off by between 5% and 8%.

EOS, a dectralized app token similar to ethereum, led the bitcoin and crypto market lower.

Earlier this year, bitcoin and cryptocurrency price watchers warned that “dismal” bitcoin volumes could mean the market was headed for a perfect storm.

In periods of low trading volume, crypto prices are more vulnerable to so-called whales moving the market by placing massive buy or sell orders at a little above or below current market rates. These can trigger trading algorithms that then send prices sharply higher or lower and can be a sign of market manipulation.

Meanwhile, research out earlier today suggested the bitcoin price might struggle over the short term due to the $2 billion PlusToken scandal—one of the biggest ever cryptocurrency scams.

“That’s certainly something to consider when you are thinking about where the price is going, at least in the short term,” Kim Grauer, senior economist at blockchain analysis company Chainalysis told financial newswire Bloomberg. “It could be, according to our research, continued downward pressure.”

PlusToken scammers are thought to have sold some 25,000 bitcoin, according to Chainalysis data, with a further 20,000 still to be dumped back onto the market.

Follow me on Twitter.

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: Bitcoin Suddenly Dives Below $7,000 As Crypto Markets Lose Billions

93.8K subscribers
#Bitcoin pumps to fill $7.8k futures gap, then immediately slides. Why #BTC might be “stuck” in the Chasm Phase, 43,564 $BTC whale move, $MATIC continues explosive run, market sentiment analyzed, crypto news, and more! 🔶 Join ByBit Exchange 👉 http://bybit.kdub.co *Get up to $90 FREE BONUS by using link above* 📺 ByBit Tutorial: https://youtu.be/W6-VCxNUD0g 🔥 Ledger Hardware Wallets 👉 http://ledger.kdub.co 📺 Ledger Nano X Tutorial: https://youtu.be/zShw2X5lRhs 💥 Unstoppable Domains 👉 http://unstoppabledomains.kdub.co 🔺Brave Browser ►► https://brave.com/cry542 🤖 3Commas Auto Trader 👉 http://3commas.kdub.co 👑 Krown’s Crypto Academy 👉 http://krown.kdub.co 🚀 LVL Exchange (NO trading fees) 👉 https://lvl.co/zombie 🧟‍♂️ “Crypto Zombies” Telegram ►► https://t.me/joinchat/E67b8w-hQrMsZeb… 📈 Trading View Charts ►► https://tradingview.go2cloud.org/SH3vw 💡 MINDS.com 👉 http://www.minds.kdub.co Intro Credit: https://www.reddit.com/r/cryptocurren… 2:28 Markets 〽️ 2:57 Bitcoin analysis: https://twitter.com/JacobCanfield/sta… 4:45 Bitcoin whale move: https://beincrypto.com/bitcoin-whale-… 7:41 BTC halving: https://twitter.com/100trillionUSD/st… 8:45 MATIC network: https://youtu.be/363xAkk1_wE 11:18 📺 BitBoy Crypto: https://youtu.be/-0XmfujTkVs 14:32 Bakkt lied: https://twitter.com/krugermacro/statu… 15:47 Bitcoin “Chasm” phase: https://medium.com/@ssaurel/bitcoins-… 21:01 MATIC battle racers: https://twitter.com/maticnetwork/stat… 🐦 @TheCryptoZombie ►► http://twitter.com/TheCryptoZombie 🔹Buy BTC on Coinbase ►►http://Coinbase.kdub.co Trade Cryptos on Huobi ►► http://Huobi.kdub.co Trade Cryptos on Bibox ►► http://Bibox.kdub.co Trade Cryptos on KuCoin ►► http://KuCoin.kdub.co Follow me on Twitter ►► http://twitter.com/TheCryptoZombie Join The Telegram ►► https://t.me/joinchat/E67b8w-hQrMsZeb… DISCLAIMER: I am not a financial advisor. This is not financial advice. This is just my opinion. Always do your own research before investing. I am not responsible for your trades… BITCOIN: The Last Time THIS Happened BTC PUMPED 4,500%! It’s About to Happen Again… https://youtu.be/w_Zg2lvxC8E Watch this video again because it’s awesome: https://youtu.be/tN0u7_VEyNA #cryptocurrency #altcoins #blockchain #cryptozombie #crypto #btc #bch #bsv #ethereum #eth #ripple #xrp $BTC $ETH $XRP

Advertisements

Bitcoin Isn’t Down Because of China, It’s Down Because You Don’t Need It

Crypto markets are not reeling this week because China is “cracking down on Blockchain.” Tokens have been getting slammed since the summer because most of them are unnecessary, and because the need for coins that may offer some utility is not as imminent as buyers thought it would be. This is most obvious with King Crypto, bitcoin, whose purported use-case as a store of value is not looking very compelling.

The risk-reward in bitcoin has always been an extreme one, which is why its biggest proponents/salespeople assigned astronomic price targets to it. Widespread adoption is an extremely low-probability event with an enormous payoff if the stars align. And let’s be clear: the things that need to happen for the world to turn to bitcoin – complete central bank impotence, widespread currency debasement, falling equity markets and the abandonment of traditional gold – means betting on bitcoin is essentially betting against the house. Hence the “short bankers, long bitcoin” meme. To say bitcoin will offer a 100x return yet also say it’s a highly probabilistic event is inherently contradictory and hugely dishonest.

The market is now realizing this. As the global economic slowdown of the last nine months shows signs of stabilization and the Federal Reserve sees no need for more interest-rate cuts, the case for bitcoin is taking body blows. None of the stories about adoption are turning out, big tech giants from Facebook to Google are doing everything possible to dominate electronic pay and finance, and projects designed to make bitcoin a means of exchange are either slow, fruitless, or both.

In short, the house does not look like it’s in a losing position just yet. And so bitcoin is getting killed. Sure, the U.S. and China could have a major fallout, get into a currency war, and Chinese citizens could rush to crypto as a way to get money out of the system. That’s why bitcoin will never be worthless, and why every investor should watch its price action, but that scenario is looking way, way further away from reality than the cryptoknights had so many believe.

Today In: Money

Bitcoin’s violent moves are a factor of the speculative nature described above. Because its probability of success is low, it is closer to a roulette wheel than any traditional asset class. Average people were lured into the bitcoin sales pitch in 2017 when the economy was tearing hot, cash flow was heavy, stocks were churning out huge gains, and people could afford to take a gamble. Why not roll the dice?

Now those buyers are losing faith in their chances of winning, and are using this year’s rally to get out. As the fundamental reason for owning bitcoin as a store of value also loses luster amid a stabilizing economic situation, the true believers may start bailing out too. If it continues, it should be a warning sign to more traditional investors who made a similar bet in gold, and maybe even those who ran to Treasury bonds as a hedge against chaos, too.

I am the Lead Anchor at TD Ameritrade Network, and the host of Morning Trade Live and Market On Close. I co-anchored Bloomberg BusinessWeek on TV and contributed to Bloomberg Markets and What’d You Miss while I was with Bloomberg beginning in June 2014. I also covered U.S. stocks and equity derivatives for Bloomberg News. Prior to that, I was a reporter at The Bond Buyer, primarily covering the sell side of the municipal bond industry, writing stories about bond insurers, underwriters, ratings services, bond counsel and general market trends. Early in my career I covered metropolitan news for the New York Post. I have a bachelor’s degree in materials science and engineering from Cornell University.

Source: Bitcoin Isn’t Down Because of China, It’s Down Because You Don’t Need It

3.38K subscribers
Blockchain is currently not suitable for large communities as it’s not scalable. In this video, the CVO of Dagcoin, Kris Ress, explains why the technology behind Dagcoin is perfect for small, big and very big communities. See more from the video!

Bitcoin Has Crashed–What Now?

Bitcoin (BTC) has crashed. No one really knows why but in my model we should be in for “good” news on the China trade war or some such China-related information that is strong for the Chinese currency. This is only a theory but if it is correct, bitcoin will either rally vertically if no news breaks or the news will appear very soon. This is being written at 12 p.m. GMT September 25 and the news ought to be out there by no later than the end of the week.

If I’m wrong and there is no such news and the price stays down or falls more still with no positive trade war news then my bitcoin theory, which has served so well, will be severely challenged. In any event, bitcoin has crashed. The dreaded flag has broken to the downside and the bottom is anyone’s guess. The decision what to do next comes back to the schism between believing BTC will be worth $100,000-plus a coin or $0 a coin. You have to pick your side.

Way back before this year’s rally, I stated there is another way of looking at this price action. In commodities a big bubble is followed by a series of smaller and smaller echoes of the initial price shock which erupt over time as the years pass.

Each new price eruption is smaller than the last until the original bubble is all forgotten about. If this is your model, this BTC bubble echo is now dead and BTC will fall back to the $2,000-$3,000 range or even lower. Then after a year or two there will be another small vertical and on this pattern will go, until bitcoin is all  but forgotten.

Today In: Money

The alternate model is the tech boom, where the original bubble was replaced by another bigger rally, one we have still not seen the end of. Is bitcoin a commodity or a value added instrument? Bitcoin isn’t like gold or copper, where a price rise creates a glut.

Or is it? For me this is a very tempting model because I experienced it as a youngster and saw it play out all the while everyone continued to wish for the return of the moment when copper or gold went to the moon. However, bitcoin is not going to flood the market as miners pour resources into a race to over produce.
Bitcoin protects itself from exactly the economic reason why high prices are the solution to high prices.The choice is clear for players in this game of speculation, steer clear or buy the dip. I’ll be buying the dip but not in a hurry. This is the chart of what has happened:

Bitcoin has crashed

Credit: ADVFN

The flag got broken to the downside and it’s clear as day that a lot of people took this as a cue to get out, causing a panic. I’ve put some levels equivalent to some zones where the price might settle. I will be buying a little in the coming days and more if we hit $6,000 and a lot if we see $4,000.

Meanwhile, there was been a strange crash in hash rate before this price fall, so everyone is free to link that up with this fall. There may have been a BTC miner who needed to sell a big chunk of BTC and in this fragile market with everyone staring at the same delicate chart pattern, it doesn’t take much to create an avalanche. I must admit to staring at this chart before it crashed thinking I should sell.
This would have been a good move but experience has taught me that you can win on the exit but lose on the reentry. It’s great missing a fall but you can also miss the rally which can end up even more painful. This is the basic lesson of the randomness of markets. Back the direction you believe is the long-term outcome and buy the dips or don’t play at all. Bitcoin is like backing Apple when it was on the edge of going bust: do you believe in the future or not?

If you do, you hold forever and buy the dips. The only thing you mustn’t do with the position is let that put your finances at risk or hurt your sanity. As a believer I will buy this dip, in the same way as I bought the last, little and often. For those who don’t believe in the long term you should stay well clear.Be among the first to get important crypto and blockchain news and information with Forbes Crypto Confidential. It’s free, sign up now.

—-Clem Chambers is the CEO of private investors website
  ADVFN.com

and author of
Be RichThe Game in Wall Street

and
Trading Cryptocurrencies: A Beginner’s Guide

Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018.

I am the CEO of stocks and investment website ADVFN . As well as running Europe and South America’s leading financial market website I am a prolific financial writer. I wrote a stock column for WIRED – which described me as a ‘Market Maven’ – and am a regular columnist for numerous financial publications around the world. I have written for titles including: Working Money, Active Trader, SFO and Technical Analysis of Stocks & Commodities in the US and have written for pretty much every UK national newspaper. In the last few years I have become a financial thriller writer and have just had my first non-fiction title published: 101 ways to pick stock market winners. Find me here on US Amazon. You’ll also see me regularly on CNBC, CNN, SKY, Business News Network and the BBC giving my take on the markets.

Source: Bitcoin Has Crashed–What Now?

26.6K subscribers
Check out the Cryptocurrency Technical Analysis Academy here: https://bit.ly/2EMS6nY In this video we discuss the recent Bitcoin crash, and the affects that Bitcoin crash may have on the Bitcoin market over the coming days. Bitcoin crashed nearly $2,000 yesterday while we were livestreaming, and found support around the Bitcoin support level of $11,700 as expected. Whether Bitcoin will continue it’s march ever higher from here, or if Bitcoin has now started a longer Bitcoin correction is yet to be seen, but we do know that Bitcoin has finally had opportunity to consolidate the gains Bitcoin has made over the past few weeks. – – – If you enjoyed the video, please leave a like, and subscribe! – – – Follow me on Instagram & Twitter: @cryptojebb Join the Discord! https://discord.gg/59jGjJy #Bitcoin #BitcoinToday #BitcoinNews I am not a financial adviser, this is not financial advice. I strongly encourage all to do their own research before doing anything with their money. All investments/trades/buys/sells etc. should be made at your own risk with your own capital. Spare Change? BTC 127eLjKTBKU9HTFhYowCDC4D3JBxonVk15 ETH 0x5115ACa82edf204760fE3B351c08a48d6004D89B LTC LSKXx3fQRK5LMowGznVvo6A9NtmtaQaoqP Please do not feel obligated to donate, though donations are appreciated!

Bitcoin Price Crashes $800 in Minutes as Bears Eye $9K Support Next

Bitcoin Price Crashes $800 in Minutes as Bears Eye $9K Support Next

Bitcoin traders eat their wallets

Traders were scratching their heads on social media Saturday in the wake of the sudden losses, with BTC/USD crashing from $10,180 to $9,410.

At press time, the pair had recovered marginally to circle $9,500, while a lack of obvious factors left commentators struggling to understand the market.

As Cointelegraph reported, a return to $10,000 earlier came as a surprise after a similar uptick occurred in a matter of minutes.

Previously, regular commentator Josh Rager had eyed a break below $9,600 as a gateway to lower levels, with the potential for $9,000 to also fall.

Some had anticipated volatility continuing in the short term. On Twitter, the trader known as CryptoCohen sounded the alarm hours before the $800 losses.

“Could be a larger correction in play – could take a lot longer too – longer than many would expect/hope. But good things come to those who wait,” he summarized.

Bitcoin’s move meanwhile had a more predictable effect on altcoin markets, with tokens in the top twenty cryptocurrencies by market cap shedding up to 4.5%.

Monthly, Bitcoin price has lost 20%, Cointelegraph noting that end-of-year and longer-term price forecasts remain bullish.

Source: https://cointelegraph.com/news/bitcoin-price-crashes-800-in-minutes-as-bears-eye-9k-support-next

Bank of China’s New Infographic Shows Why Bitcoin Price Is Going Up

Bank of China’s New Infographic Shows Why Bitcoin Price Is Going Up

A brief story: from Bitcoin to Libra

The infographic illustrates the story of Bitcoin, starting with the publication of its whitepaper in 2008, the mining of the first 50 BTC in 2009, 10,000 BTC having been spent for pizza in 2010, and other major milestones for the system, ending with the announcement of Facebook’s Libra.

“Yesterday the Bank of China posted up an article about Bitcoin,” commented Blockstream CSO, Samson Mow. “They explained how BTC works, why the price is going up, and why it’s valuable. Never thought I’d see that happen. #Bullish”

The factors behind Bitcoin’s rise

Another part of the infographic is dedicated to explaining why Bitcoin’s value is increasing, and it cites limited supply, increased mining difficulty, that it is used as a medium of exchange and anti-inflation safe haven.

This is in line with the remarks recently made by Morgan Creek Digital Assets co-founder Anthony Pompliano, who said that the European Central Bank’s expected dovish turn will provide “rocket fuel” for Bitcoin.

Furthermore, the infographic does also mention the infamous Mt. Gox hack, the risk of speculation, and stories of lost funds. According to the image, Bitcoin’s main use case is international settlements since its fees are low compared to legacy system while transactions are faster.

As Cointelegraph reported yesterday, the CEO of Chinese tech giant Huawei thinks that China can compete with Facebook for market share by issuing its own digital currency.

Earlier this month, Chinese media reported that China’s central bank is developing its own digital currency in response to Facebook’s Libra as the latter could purportedly pose a risk to the country’s financial system.

Source: https://cointelegraph.com/news/bank-of-chinas-new-infographic-shows-why-bitcoin-price-is-going-up

Pantera CEO: $42,000 Bitcoin Price By The End Of 2019 ‘A Good Shot’

A historical Bitcoin price chart on a logarithmic scale.

A historical Bitcoin price chart on a logarithmic scale.

Coin Metrics

In a recent episode of her Unchained podcast, Laura Shin interviewed Dan Morehead and Joey Krug of Pantera Capital, which is a cryptocurrency and blockchain-focused investment fund that was founded in 2013.

During the interview, Morehead commented on the potential future trajectory of the bitcoin price in response to a question related to where the blockchain and cryptocurrency industry is today in its overall life cycle. In his reply, Morehead pointed to a potential price move to $356,000 within three years based on past trends of Bitcoin’s price movements on a logarithmic scale.

Morehead’s math also indicated that a $42,000 bitcoin price by the end of 2019 is in the cards. It should be noted that crypto prime dealer SFOX also recently released a research note that could indicate a bullish move for Bitcoin during the holiday season later this year. Additionally, digital asset research firm Delphi digital recently released a report that showed how retail investor enthusiasm around Bitcoin has returned in 2019.

Bitcoin’s Neverending Hype Cycles

When asked about the current stage of development for the cryptocurrency space as a whole, Morehead first pointed to the Gartner Hype Cycle, which is a method of interpreting the wide-ranging levels of hype that can occur around new technologies.

“A small kernel of something very important gets people to be crazed about [Bitcoin] and then the trough of disillusionment [occurs]. And we’ve already gone through two of those cycles in the six years that we’ve been investing in it,” said Morehead.

Morehead added that it’s important to remember that, in his view, Bitcoin and the technologies around it are a project that will take two decades to unfold, and we’re only ten years into it at this point.

“We still have another solid ten years to go before this is fully fleshed out,” said Morehead.

Although he doesn’t believe the Bitcoin price is a great proxy for the development of the blockchain technology space as a whole, Morehead did point out that the price always tends to be going up when one zooms out more than a year.

“If you ever go back and zoom out your lens more than a year, Bitcoin as a proxy for the industry is always going up,” said Morehead.

According to Morehead, Pantera’s fund has only had one down year in its six years of existence and there has only been one year where Bitcoin’s annual low was lower than the previous year’s low.

“We’re always trying to look three to five years out and be thinking about where the industry will be then rather than worrying about these kind of manic phases of bubbles and then the crypto winters where everyone thinks it’s never going to work,” added Morehead.

Where Does the Bitcoin Price Go from Here?

When asked where the blockchain and cryptocurrency industry is today in terms of these various hype cycles, Morehead pointed out that the Bitcoin price chart is relatively consistent when graphed on a logarithmic scale. However, price bubbles, such as the ones in 2013 and 2017, are also clearly visible on the chart.

On a logarithmic price chart, price movements are tracked in terms of percentage changes rather than simple, nominal price increases and decreases.

Earlier in the year, when Bitcoin was still near the bottom of its current market cycle, Pantera graphed out what the Bitcoin price may look like if it spent the next twelve months returning to its previous trend line and the continued along that trend line for the next couple of years after that. According to Morehead, that previous trend line indicated a compounded annual growth rate of 235%.

This methodology from Pantera pointed to a $42,000 price by the end of 2019, a $122,000 price by the end of 2020, and a $365,000 price by the end of 2021.

“I know [that] sounds crazy, but essentially, we’re half way back there. It’s right on the trend line, and I think it’s a good shot that by the end of the year we hit that,” said Morehead.

Obviously, it should be mentioned that past trends are not indicative of future results. Although it was on a much shorter time scale, there were many people in various cryptocurrency forums touting the LINK altcoin due to its more than 800% rise against the U.S. dollar earlier this year. Since then, the altcoin has dropped 33% against the dollar.

In terms of what has caused the Bitcoin price to move back in a positive direction this year, theories have ranged from manipulation via the Tether stablecoin, normal activity by a store of value asset, and some indirect help from Facebook’s Libra cryptocurrency project.

Additionally, another report from Delphi Digital earlier in the year pointed to a bottoming out of the Bitcoin price based on blockchain analysis.

“[With] our first research piece that we wrote on Bitcoin, we predicted it would go to $5,000, and when it was at $100 everyone thought that was totally nuts. But these numbers in two or three years, people look back and go, ‘Oh yeah, that makes sense.’” Morehead later added during his interview with Shin.

I’m a writer who has been following Bitcoin since 2011. I’ve worked all over the Bitcoin media space

Source: Pantera CEO: $42,000 Bitcoin Price By The End Of 2019 ‘A Good Shot’

Blow To Bitcoin As Top Accountants Make Serious Facebook Warning

bitcoin, bitcoin price, Facebook, libra, image

Bitcoin and cryptocurrencies have been largely ignored by the world’s regulators over the last ten years, with only some small attempts to protect investors from wild bitcoin price swings and dodgy crypto exchanges.

The bitcoin price, up some 200% so far this year, has somewhat recovered after a terrible 2018 largely due to interest in bitcoin and cryptocurrencies from some of the world’s biggest tech companies, including social media giant Facebook which unveiled its planned libra cryptocurrency project last month and is scheduled for release some time in 2020—if the sandal-hit company can convince regulators of its merits.

Now, forensic accountancy firm BTVK has warned the bitcoin and crypto “wild west” could be coming to an end, with global regulators closing in on bitcoin and cryptocurrency exchanges as a result of the spotlight brought by Facebook’s libra project.

“Laws are in development as we speak,” Alex Hodgson, senior consultant at BTVK, told the Telegraph newspaper following the release of its report into bitcoin and cryptocurrencies. “Facebook has well-publicized issues in the past, and in response to that [regulators] are going above and beyond.”

“If cryptocurrency markets were like the ‘wild west’ in their early years, that period may be coming to a close as lawmakers look to toughen up the way in which markets are policed,” the report authors wrote. “In the meantime, it would be wrong to assume that investigators are powerless in the world of virtual currencies. They have many tools, old and new, at their disposal which mean that cryptocurrency markets should not be seen as a safe hiding place.”

Facebook is still reeling from a data-sharing scandal that saw many of its most senior executives hauled before governments around the world to answer questions on Facebook’s use of data and its work with third parties, such as Cambridge Analytica.

Earlier this month, U.S. president Donald Trump sent the bitcoin and cryptocurrency industry for a loop when he tweeted his opposition to bitcoin, cryptocurrencies, and Facebook’s libra, suggesting they are all “unregulated crypto assets” that can “facilitate unlawful behavior, including drug trade and other illegal activity.”

Following his comments, other senior U.S. officials echoed his comments, while U.S. senators called Facebook’s libra plans “unacceptable.”

Elsewhere, former International Monetary Fund managing director Christine Lagarde, who is set to replace Mario Draghi as president of the European Central Bank (ECB), earlier this year warned that bitcoin and cryptocurrencies are “shaking the system”—something that could signal a change in the ECB’s approach to bitcoin and crypto.

bitcoin, bitcoin price, Facebook, libra, chart

The bitcoin price has rallied hard this year but global regulators are “closing in.”

In the U.K. bitcoin and cryptocurrencies were placed under the oversight of the country’s banking regulator in January with it expected to issue final guidance sometime over the next couple of months.

Meanwhile, a government panel in India has recommended a ban on all “cryptocurrencies created by non-sovereigns” due to “serious concern [there is a] mushrooming of cryptocurrencies almost invariably issued abroad and numerous people in India investing in these cryptocurrencies.”

The report out of India does support the possibility of a state-issued digital currency in India, however.

Follow me on Twitter.

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk

Source: Blow To Bitcoin As Top Accountants Make Serious Facebook Warning

Bitcoin Holds Over $6,000, Beats Stocks And Gold In 2019, Will It Ever Get Back To $20,000?

uncaptioned

Bitcoin has outperformed stocks and gold, so far, in 2019.

The digital currency has gained close to 68% YTD, the NASDAQ QQQ Invesco ETF shares have gained 18.09%, the Russel 2000 iShares ETF has gained 15.04%, while SPDR Gold shares have lost 0.08%.

Stocks, Gold, and Bitcoin YTD

Stocks, Gold, and Bitcoin YTD

Koyfin

Meanwhile, the rest of the cryptocurrency was mixed, with 30 out of the top 100 advancing, and 70 falling over the last seven days.

Table 1

Number of Cryptocurrencies That Advanced/Declined In The Top 100 Ranks

Cryptocurrencies Advance/Decline Number
Advance 30
Decline 70

Source: Coinmarketcap.com 5/10/19 at 10 a.m

“The worst of the bitcoin bear market is behind us,” says Ian King, senior research analyst at Banyan Hill Publishing, who specializes in cryptocurrencies.

He sees a number of factors driving the Bitcoin rally this time around. One of them is resilience. “In 2017-2018, Bitcoin had a boom and bust, but it’s still here,” adds King.“The November 2018 capitulation was a mirror image of the panic buying of December 2017.”

Market capitulations usually follow bad news, but are signals of strong turnarounds. “All markets bottom when they stop selling off on bad news,” says King.  “Two weeks ago, the NYAG claimed Bitfinex was missing $850mm in customer funds.  The market sold off and then rallied.”

That’s the 4th boom and bust cycle since Bitcoin’s creation 10 years ago, observes King.  “I’m more confident of this recovery than I was of the last, as there are more institutions and retail investors looking at bitcoin as a digital store of value,” adds King.

Meanwhile, Fidelity, Ameritrade, and ETrade are planning to launch institutional trading platforms within the next few weeks, raising market participation.

That’s a bullish sign for Bitcoin, according to King.

But will Bitcoin ever reach $20,000 again? Not in 2019, according to Farrukh Shaikh, Co-Founder and CFO

-Gath3r, LTD. “In the coming few months, it is not very likely at all to go near the all-time high of $20,000. However, 2020 is when the halving occurs for BTC, where mining rewards get cut in half ie reducing future supply,” says Shaikh. “This would be the 3rd halving for BTC since inception, and previous ones have been catalysts for huge price increases for BTC.”

And that could help  Bitcoin reach $20,000 by 2021, according to Shaikh. “Speaking from a technical analysis perspective. there are several scenarios where it can reach and surpass the $20,000 price point within the next couple of years,” adds Shaikh.“On a fundamental basis, real world use, adoption and acceptance of BTC is increasing with each passing month, which are also positives for its future price expectations.”

While, it’s hard to predict where the digital currency will be in a couple of years from now, one thing is clear: volatility will continue in cryptocurrency markets.

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment. Disclosure: I don’t own any Bitcoin.]

My recent book The Ten Golden Rules Of Leadership is published  by AMACOM, and can be found here. 

I’m Professor and Chair of the Department of Economics at LIU Post in New York. I also teach at Columbia University.

Source: Bitcoin Holds Over $6,000, Beats Stocks And Gold In 2019, Will It Ever Get Back To $20,000?

Financial Advisory Firm Says Past Market Trends Point to Bitcoin at $20,000 by 2021

Financial advisory firm Canaccord Genuity has predicted that bitcoin (BTC) could hit $20,000 by 2021 based on retrospective projections in an analysis published on May 9.

This prediction is based on a close similarity between the four-year price cycles of bitcoin during the 2011–2015 and 2015–2019 ranges, as shown in the following graph:

Bitcoin price cycles. Source: Canaccord Genuity

Canaccord Genuity points to the bitcoin mining rewards schedule as a possible cause for these four-year price cycles, since the reward drop — which decreases by 50% for every 210,000 blocks mined — has so-far occurred about once every four years. However, the report cautions:

“As always, we caveat this observation with the obvious — this is simply pattern recognition and not reliable fundamental analysis.”

Canaccord Genuity analyst Michael Graham commented on cryptocurrency prices at the beginning of 2018, saying that the upswing in regulatory enforcement would likely have a major impact on the crypto market via dislocation (therefore making it hard for crypto assets to be accurately priced).

Earlier this week, Galaxy Digital Founder and CEO Michael Novogratz predicted that the price of bitcoin would exceed $20,000 by the end of 2020. Novogratz did not provide a specific rationale for his conviction, but did note that bitcoin is in a bull market and is outperforming the price growth of other cryptocurrencies.

At press time, bitcoin is trading at $6,404.55 and is trending up by 4.89% on the day, according to data from CoinMarketCap.

Source: Financial Advisory Firm Says Past Market Trends Point to Bitcoin at $20,000 by 2021

7 Reasons Bitcoin Price Will Smash Record Highs in 2020: Tom Lee

Bitcoin permabull and Fundstrat Global co-founder, Tom Lee says the worst is over for bitcoin.

In an interview with CNBC, Lee said the bitcoin price will likely see a new all-time high in 2020, eclipsing the previous $20,000 mark. Lee is famous for inflated bitcoin price predictions, but he backed up the latest forecast with seven key indicators.

1. The bitcoin halving is coming

Every four years, the bitcoin block reward is cut in half to maintain the strict 21 million supply. It gives bitcoin an artificial scarcity and inherent value.

bitcoin halving

The next bitcoin halving takes place in 390 days. Historically, the bitcoin price starts climbing a year before.

The next bitcoin “halving” is scheduled to take place on May 23rd 2020. Historically, the bitcoin price has begun to climb a year before the halving takes place. Tom Lee predicts the shrinking supply and upcoming halving will add fuel to the bitcoin rally.

2. Trading volumes back near record highs

As CCN previously reported, bitcoin trading volumes are back near record highs. Lee points to a key moment in January 2019 when year-on-year trading volumes turned positive

3. Bitcoin smashes past its 200 day moving average

Earlier in the month, bitcoin closed above its 200 day moving average in a technically strong bullish sign. The last time it happened was October 2015 and bitcoin went on to kickstart a two-year bull-run.

4. Fundstrat’s Bitcoin Misery Index turns positive

The bitcoin misery index (BMI) measures investor sentiment using a composite of bitcoin volatility, price, and trading activity. In April it hit its highest point since mid-2016.

Lee sees this as a sign that a bull market is forming since a high reading only occurs during bull markets. However, he also acknowledged that bitcoin famously took a 25 percent fall last time the BMI hit this point.

 

5. 60% – 70% increase in bitcoin OTC trading

According to a Fundstrat survey, institutional investors are pouring into bitcoin through over-the-counter (OTC) markets. OTC markets exist outside the main reported exchanges and reportedly account for half of all bitcoin trading volume.

Lee claims OTC trading activity is up 60% – 70% which is a sure sign that “big money” is coming to crypto. As he explains, OTC markets are:

“Really important in terms of how institutional investors trade crypto.”

6. Consensus that the “bottom is in”

Lee points to a handful of “original” bitcoin bulls who believe we have seen the lowest prices in this bitcoin rout. He repeatedly claims that bitcoin whales, who pulled money out of the market in early 2018 are now beginning to put their money back into bitcoin.

7. Bitcoin’s golden cross

Lastly, Lee points to the “golden cross” technical indicator. The golden cross is another hugely positive indicator that traditionally confirms a bullish breakout.

Bitcoin price will shatter its all-time-high of $20,000 in 2020, according to Tom Lee. | Source: Shutterstock

7 Reasons Bitcoin Price Will Smash Record Highs in 2020: Perma-Bull Tom Lee

By CCN.com: Bitcoin permabull and Fundstrat Global co-founder, Tom Lee says the worst is over for bitcoin.

In an interview with CNBC, Lee said the bitcoin price will likely see a new all-time high in 2020, eclipsing the previous $20,000 mark. Lee is famous for inflated bitcoin price predictions, but he backed up the latest forecast with seven key indicators.

1. The bitcoin halving is coming

Every four years, the bitcoin block reward is cut in half to maintain the strict 21 million supply. It gives bitcoin an artificial scarcity and inherent value.

bitcoin halving

The next bitcoin halving takes place in 390 days. Historically, the bitcoin price starts climbing a year before.

The next bitcoin “halving” is scheduled to take place on May 23rd 2020. Historically, the bitcoin price has begun to climb a year before the halving takes place. Tom Lee predicts the shrinking supply and upcoming halving will add fuel to the bitcoin rally.

2. Trading volumes back near record highs

As CCN previously reported, bitcoin trading volumes are back near record highs. Lee points to a key moment in January 2019 when year-on-year trading volumes turned positive.

Lee cites increased bitcoin adoption in Venezuela and Turkey for the increasing volume:

“Just taking those two countries, they’re close to 30% of the increase in on-chain activity, so it’s meaningful. “People are saying, ‘Look, I don’t trust using these local currencies. I don’t trust the banks. I’m going to start using bitcoin.’ And that’s what’s causing on-chain volume to really take off.”

3. Bitcoin smashes past its 200 day moving average

Earlier in the month, bitcoin closed above its 200 day moving average in a technically strong bullish sign. The last time it happened was October 2015 and bitcoin went on to kickstart a two-year bull-run.

4. Fundstrat’s Bitcoin Misery Index turns positive

The bitcoin misery index (BMI) measures investor sentiment using a composite of bitcoin volatility, price, and trading activity. In April it hit its highest point since mid-2016.

Lee sees this as a sign that a bull market is forming since a high reading only occurs during bull markets. However, he also acknowledged that bitcoin famously took a 25 percent fall last time the BMI hit this point.

5. 60% – 70% increase in bitcoin OTC trading

According to a Fundstrat survey, institutional investors are pouring into bitcoin through over-the-counter (OTC) markets. OTC markets exist outside the main reported exchanges and reportedly account for half of all bitcoin trading volume.

Lee claims OTC trading activity is up 60% – 70% which is a sure sign that “big money” is coming to crypto. As he explains, OTC markets are:

“Really important in terms of how institutional investors trade crypto.”

6. Consensus that the “bottom is in”

Lee points to a handful of “original” bitcoin bulls who believe we have seen the lowest prices in this bitcoin rout. He repeatedly claims that bitcoin whales, who pulled money out of the market in early 2018 are now beginning to put their money back into bitcoin.

7. Bitcoin’s golden cross

Lastly, Lee points to the “golden cross” technical indicator. The golden cross is another hugely positive indicator that traditionally confirms a bullish breakout.

Tom Lee polled his Twitter followers, 43 percent of whom believed the golden cross was a good sign.

Bitcoin to $25,000?

Tom Lee has long-held a positive view of bitcoin’s price but his forecasts aren’t always accurate. He predicted bitcoin would end 2018 at $25,000, a call that fell significantly short. Let’s see if this latest bullish prediction is more accurate.

Source: 7 Reasons Bitcoin Price Will Smash Record Highs in 2020: Tom Lee

%d bloggers like this:
Skip to toolbar