Bitcoin Price Slips as Stocks Slide

Bitcoin has pulled back sharply from 16-month highs reached early Wednesday alongside heightened coronavirus-induced risk aversion in global stock markets.

  • At the current price of $12,980, the top cryptocurrency by market value is down over 5% on the day and 7% from the Asian session high of $13,857. That was the highest level since June 2019, according to CoinDesk’s Bitcoin Price Index.
  • The cryptocurrency looked overbought and vulnerable to minor pullback early today, having rallied by over 20% this month alone.
  • However, the pullback’s magnitude is likely being amplified by the losses in the global stock markets.
  • Wall Street’s benchmark equity index S&P 500 is down over 2% at press time, and the pan-European Euro Stoxx 50 index has shed 4%. Meanwhile, the anti-risk sentiment is boding well for haven assets like the U.S. dollar, Japanese yen, and U.S. Treasury bonds.
  • The dollar index, which tracks the greenback’s value against major currencies, is up over 0.5% at 93.50, while the U.S. 10-year yield is down nearly three basis points.
  • However, gold, also a haven asset, is struggling to draw bids and is trading at $1,876, down 1.7% on the day.
  • Risk appetite has weakened as the second wave of the coronavirus is accelerating across Europe and in the U.S. and threatening to derail the fragile global economic recovery.
  • According to Reuters, France and Germany are..

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These 5 Ethereum Coins Are Being Accumulated by “Whales”

  • Ethereum and top altcoins have undergone strong retracements from their summer highs.
  • Even still, investors remain bullish as they look out into the long run.
  • Santiment reports that whales have been investing heavily in Ethereum and some ETH-based altcoins.
  • These are REN, Chainlink, Aelf (ELF), Kyber Network (KNC), and 0x (ZRX).

Some Ethereum Coins Are Being Accumulated By Whales

Ethereum and top altcoins have undergone strong retracements from their summer highs. ETH, for instance, dropped from $490 to the September lows of $310 while some smaller altcoins saw even worse corrections.

DeFi coins, especially, were hit hard by this market drop. An analyst noted that the average DeFi coin had dropped 65% from its summer highs by early October.

This was because DeFi coins rose faster than all the rest, meaning they were the first to drop when capital stopped flooding in from new investors. They also dropped the fastest as earlier investors were incentivized to dump their coins as fast as possible.

Even still, Ethereum-based altcoins remain in a bullish state as investors seek to look out in the long run and invest from that perspective.

Top blockchain analytics firm Santiment reports that whales have been investing heavily in Ethereum and some ETH-based altcoins. These include REN, Chainlink, Aelf (ELF), Kyber Network (KNC), and 0x (ZRX).

“With most eyes on #Bitcoin’s market price between this $12.7k and $13.3k range, whales of many respective $ETH-based #altcoins have added to their non-exchange bags. $ETH, $LINK, $REN, $ELF, $KNC, & $ZRX are among those recently hitting one-year highs.”

It is likely that these investors are focusing on the long-term prospects of Ethereum’s DeFi space as opposed to the short-term reality.

For one, head of DTC Capital Spencer Noon reported recently that the important DeFi metrics continue to hit new all-time highs despite the price drops:

“Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators: – TVL: $12.41B – ERC20 Stablecoins: $14B Don’t listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing. The likely inflection point for DeFi Bull Phase 2 is the election, where there are multiple outcomes that would be favorable for risk assets. Until then, farmers will sit in #BTC b/c it’s low-maintenance and basically a stablecoin compared to what they were trading this summer.” 

There also remain many bullish on Ethereum DeFi due to the high yields of the space relative to traditional markets. Of course, yields are naturally higher due to more risk, but analysts think that these yields will entice lots of capital into the space.

Source: Bitcoininst

Analyst Explains Why Bitcoin Risks Crashing by $2K in “A Few Days”

The ongoing Bitcoin price rally risks fizzling out on a notion that the price won’t hold a psychological support level.

The $2K-Crash Setup

At lower $13Ks, the cryptocurrency awaits a significant sell-off, according to Mark Principato of Green Bridge Investing, an investment consulting firm in New York. The executive director cited a “potentially bearish candle” – having gone a clear upside rejection near $13,363 – to justify his downbeat outlook.

He provided further evidence – or fractals – that showed traders reacting to the formation of bearish and bullish pin-bars as of late. This year, Bitcoin painted two bullish candles with downside rejections near $9,800 in September 2020 and $10,500 in October 2020.

cryptocurrency, Bitcoin, BTCUSD, XBTUSD, BTCUSDT

Bitcoin trade setup, as presented by Marc Principato. Source: BTCUSD on TradingView.com

The cryptocurrency generated two long signals and reached its upside targets near $11,600 and $12,300, respectively. Just recently, it also achieved the third target at near $13,260 from its second long trade.

“Our profit targets were strategically distributed between the low 11Ks into the low 13Ks,” explained Mr. Principato. “And based on price proportions, these are the locations that are more vulnerable to bearish price action.”

The chartist added that they now await an exact retracement from lower $13,000-levels before increasing their bets on a fall towards the $11,600-12,300 range (the previous resistance area). Based on where Bitcoin is trading at the time of this writing, that is about a $1,500-$2,000 downside correction.

Bitcoin Price Stability

The aforementioned bearish setup has a better likelihood of concluding should the Bitcoin price achieves stability inside the $11,600-12,300 range.

Mr. Principato stressed two factors that could ensure a price rebound despite a $2K fall. First, holding the said trading area as support; second, forming a bullish pin-bar – wherein a candle wick with a downside bias faces momentum rejection.

“Once we have that, we can measure RISK and will be prompted to share a new swing trade idea. How long can this process take? A few days to a few weeks. Either way, we wait.”

Fundamentally, the cryptocurrency shows demand near the $11,600-$12,300 area. In an email statement to Bitcoinist, CEX.io’s Executive Director Konstantin Anissimov noted that “Bitcoin has brought a lot of attention to the crypto market” as major firms add it to their reserves as a hedge against currency devaluation.

“As publicly traded companies continue adding this digital asset to their portfolio to hedge against potential risks, fewer tokens are being left in exchanges,” he said. ‘The increase in scarcity is a very positive sign since it indicates that there is less BTC to sell.”

Mr. Anissimov, nevertheless, added that – technically – failure to hold support above the $13,000-area would risk taking Bitcoin lower towards $12,000.

The BTC/USD exchange rate was 0.22 percent high as of the early Monday session, trading at $13,070.

Source: Bitcoininst

Can Bitcoin Breakout to $20K?

Bitcoin bulls have repeatedly claimed that the cryptocurrency price will hit $20,000 shortly. While many analysts believe it would happen, some disagree.

Popular crypto bull Joe007 said earlier this week that Bitcoin would face liquidity problems if it surges towards $20K. He noted that only a few investors would want to purchase the cryptocurrency at its all-time high “for actual dollars.” Quite conversely, the absence of buying orders would reduce its bids that, in turn, would follow a more in-depth price correction.

Pricing Bitcoin

The statements questioned an average investor’s inability to determine the actual value of Bitcoin. So far, there is not a formula that measures the cryptocurrency’s fair price – unlike stocks, whose price takes cues from a plethora of valuation metrics, such as P/E, EV/EBITDA, P/CF, etc.

That notion lands Bitcoin in the category of gold – an insurance asset that does well in times of uncertainty. It was visible when both the cryptocurrency and the precious metal surged to their sessional highs in the third quarter. As BTC/USD topped for the year near $12,500 and XAU/USD for the lifetime above $2,000, investors showed caution.

They could not tell whether or not these assets had the stamina to continue their upside move. Many locked their profits with a sell-off, while the others merely avoided to purchase them at local highs. As a result, both Bitcoin and gold plunged lower.

And now, when at least Bitcoin has broken above $13,000 with a renewed bull run, the questions of deeper downside corrections are popping up again.

Read further: PayPal Didn’t Shoot Bitcoin Above $13,000, Analyst Explains Why

Interestingly, the gold market appears to have the answer.

The M2 Factor

SomaBull, a gold-focused financial analyst, writes in his SeekingAlpha article that the precious metal’s price has lagged the monetary inflation over its history.

Dubbed as M2, the index reflects the total amount of money in circulation in the country, i.e., the US dollar’s running supply. During the gold standard times, investors used to measure the price of an ounce of the metal by placing it against the greenbacks in circulation.

While the US is not running on the same standard anymore, the market can still measure the price of an ounce of gold via M2.

According to a study conducted by the St Louis Fed in the 1980s, gold takes typically 12 quarters to tail the M2 trend. By that logic, SomaBull concluded that the precious metal remains underpriced against the 2020’s M2 supply boom.

Nevertheless, it would follow suit, which may lead its price above $2,000 – and even beyond $3,000, the analyst added.

That is due to the expectations of another dramatic spike in the M2. The market anticipates that the US government would release at least $2 trillion as a part of its coronavirus relief fund. It, in turn, would give gold another upside push, as what happened after the first $2 trillion-package.

Likewise, Bitcoin should follow the gold’s upside call based on its similar features with the metal. That means a clear bull run towards $20,000, which remains a psychological target for bulls.

So it appears, the market would have enough liquidity to match bids at $20K thanks to a more generous M2 supply.

Source: Bitcoininst

Paul Tudor Jones says he likes bitcoin even more now, rally still in the ‘first inning’

Billionaire hedge fund manager Paul Tudor Jones has turned more bullish on bitcoin, calling it the best inflation hedge.

“I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go,” Jones said on CNBC’s “Squawk Box” on Thursday. He first revealed his bitcoin investment in May and he said Thursday he holds a “small single-digit investment” in the cryptocurrency.

The longtime trader believes the unprecedented quantitative easing from the Federal Reserve is setting the stage for inflation to make a grand comeback.

“The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade,” Jones said.

Bitcoin has fully rebounded from its coronavirus lows in March. The digital coin on Thursday hit its highest level since January 2018 to trade at around $12,900. The strength this week largely came from the news that PayPal will allow its users to buy, hold and sell cryptocurrencies.

The founder and chief investment officer of Tudor Investment Corporation also compared investing in bitcoin to putting money behind some of the biggest tech companies like Apple and Google.

“Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it,” Jones said. “It’s like investing with Steve Jobs and Apple or investing in Google early.”

Jones shot to fame after he predicted and profited from…

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Bitcoin Surges After PayPal says Venmo will become a BTC wallet

Bitcoin (BTC) gained almost 5% on Oct. 21 as bullish price action combined with fresh corporate adoption news to boost gains.

Cryptocurrency market daily performance overview from Coin360

PayPal takes BTC price to $12,400

Data from Cointelegraph Markets and Coin360 showed a strong 24 hours for bulls on Wednesday, with BTC/USD topping out at $12,400.

At press time, $12,300 formed the focal point, around an hour after Reuters reported that payment giant PayPal plans to support Bitcoin and other cryptocurrencies via its wallet and Venmo app from 2021.

BTC/USD daily price chart. Source: Tradingview 

The announcement added to an already buoyant BTC trading environment, with $12,000 resistance evaporating overnight on…

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Bitcoin Surges as Altcoins Plunge; What Analysts are Saying

  • Bitcoin has been sucking the air out of altcoins for the past few hours, with its price rallying significantly as Ethereum and other altcoins all sell-off
  • This rally has sent it up towards $12,000, which mark fresh highs since its decline from its $12,400 yearly highs first began
  • It does appear that bulls are currently setting their sights on a move past $12,000
  • Unlike Bitcoin’s previous rally – which came about in tandem with that seen by altcoins – this one has come about at the expensive of altcoins
  • One analyst believes that BTC’s smaller counterparts are all incredibly weak at the moment and poised to see further weakness going forward

Bitcoin and the entire cryptocurrency market are beginning to witness heightened volatility once again.

Today, BTC has pushed up towards $12,000 in a sharp move that came about unexpectedly. This move sucked a significant amount of capital away from altcoins, causing many to plunge as BTC rallied.

The price action seen as of late is clearly bullish, and Bitcoin is showing signs of breaking its correlation to the global equities market.

One analyst expects the benchmark cryptocurrency to see further upside, but he notes that altcoins are growing incredibly weak.

Bitcoin Rallies Towards $12,000 as Consolidation Phase Ends

Throughout the past two weeks, Bitcoin had been caught within a tight consolidation phase as its price traded between $11,200 and $11,600.

This firm trading range has since been broken, and BTC is now on the cusp of pushing past its key $12,000 resistance.

At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,900. This is around the highest price it has been since it first declined below $12,000 months ago.

Analyst: Altcoins Express Continued Weakness as BTC’s Strength Mounts

Bitcoin’s current uptrend is occurring during an all-around bloody day for the crypto market, as many altcoins have shed a significant amount of their value as BTC pushes higher.

One analyst believes BTC will see some choppy price action before it can break $12,000.

“Now back to chopping around for a bit, maybe have some bears call for doom again. BTC is looking really good, alts are looking really weak. And we didn’t even properly break out yet,” he said.


The coming few days should shine a light on the long-term significance of this latest push higher.

It should also elucidate whether or not altcoins will continue bleeding as Bitcoin rallies.


Source: Bitcoininst

Analyst Who Called 2018 Bottom Fears Bitcoin Will See Steep Drop

Bitcoin could undergo a strong correction in the weeks ahead as it forms a bearish short-term to medium-term outlook. This is compounded by a futures market positioning “overhang” noted by JP Morgan analysts.

Historically Accurate Analyst Fears a Strong Bitcoin Drop

Bitcoin could undergo a strong drop towards $10,000 once again, says the trader who in the middle of 2018 predicted the bottom price to a 1.5% accuracy. The analyst noted that the cryptocurrency is forming a similar chart formation to that seen prior to the March capitulation crash:

“btc starting to look it did in feb this year before we had that final capitulation low. something to keep in mind, plus weeekly sp500 close wasnt too crash hot, kind of looks like a double top and a test of 3200 range lows on the cards.”

He isn’t the only one predicting Bitcoin will see a short-term retracement. 

A team of JP Morgan analysts recently stated that the leading cryptocurrency is likely to slide lower as it faces some fundamental pressures. These are Bitcoin’s intrinsic value starting to lag behind price action and an “overhang” of long positions on leading Bitcoin derivatives exchanges:

“The JPMorgan strategists said they calculated an intrinsic value by effectively treating Bitcoin as a commodity and looking at the marginal cost of production.”

Long-Term Trend Still Favors Bulls

The long-term trend still decisively favors bulls, analysts say.

In a speech/letter, the IMF’s new managing director Kristalina Georgieva said that the world’s monetary and economic system is facing another “Breton Woods Moment.”

Raoul Pal, CEO of Real Vision and a former hedge fund manager, says that this is a sign of incoming fiscal stimulus that may boost Bitcoin: 

“Talking of Bretton Woods, this IMF article alludes to a huge change coming but lacks real clarity outside of allowing much more fiscal stimulus via monetary mechanisms… Fiat globally will be worth less versus hard assets. And that means that gold and in particular #Bitcoin will become THE way to circumvent the system of ever lower value. It also create incentives systems for other nations to opt into a hard currency system to attract capital.”

Pal thinks that the leading cryptocurrency could hit a new all-time high this market cycle as fiat currencies are debased en-masse

Source: Bitcoininst

Has Bitcoin Finally Met Its Match?

Bitcoin has reigned as the undisputed king of cryptocurrencies since it was created a little over ten years ago.

The bitcoin price has soared, with some ups and downs, over the last decade—climbing to around $11,300 per bitcoin today and giving bitcoin a total value of over $200 billion.

Now, as the market for stable coins—cryptocurrencies pegged to traditional currencies or assets—has doubled in the last three months, a new report has predicted the largest stable coin, the controversial tether, could become the second most valuable cryptocurrency after bitcoin as soon as next year—with “the still deflating broad crypto-asset bubble … migrating assets toward tether.”

“Tether represents what many of the so-called cryptocurrencies aren’t: a stable form of payment,” Bloomberg senior commodity strategist Mike McGlone wrote in the company’s Crypto Outlook report for the fourth quarter of 2020.

Over recent years, bitcoin’s primary use case has evolved from a payments system to a store of value and more recently as a hedge against the inflation some see in on the horizon. McGlone expects recent unprecedented central bank stimulus spending and rising debt-to-GDP levels around the world as a strong tailwind for the bitcoin price, putting it on course to reach a whopping $100,000 per bitcoin by 2025.

“Indicating demand for a digital version of gold (bitcoin) and a crypto-asset like the dollar, if current trends prevail, the market cap of tether may surpass ethereum next year,” McGlone wrote, adding it “should take something significant to stall the increasing adoption of tether” which has been growing “rapidly” in contrast to “the stagnant market cap of ethereum.”

Ethereum currently boasts a market capitalization of a little over $40 billion, compared to tether’s relatively paltry near-$16 billion. However, tether’s total value has ballooned 300% over the last 12 months, while ethereum’s has merely doubled.

Bitcoin’s market value has risen at an even slower pace than ethereum, adding just under 40% since this time last year.

Meanwhile, tether’s cumulative transaction volume has increased by around 20% over the past 30 days to climb above $600 billion, according to blockchain analytics firm Glassnode. Tether’s daily transaction volume is around $35 billion according to an average from cryptocurrency data sites CoinGecko and CoinMarketCap, with bitcoin’s average daily transaction volume put at between $20 billion and $25 billion.

Elsewhere, data from analytics provider Skew has found futures contracts based on tether are now “almost on par” with those based on bitcoin.

As much as 70% of exchange trade volume is now denominated in tether, up from…

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Bitcoin will surge to $1 million in 5 years by an ‘enormous wall of money,’ former Goldman Sachs hedge-fund chief says

Raoul Pal, the former Goldman Sachs hedge-fund manager who founded Real Vision, said the price of bitcoin could hit $1 million in five years.

In an interview with Stansberry Research on October 7, he pinned such a price increase to a wave of institutional funds pouring “an enormous wall of money” into the asset.

Bitcoin’s price has exploded about 40% year-to-date and was worth $11,387 on Thursday.

It is also the largest digital currency by market capitalization, at about $200 billion, according to data published by Statista.

“Just from what I know from all of the institutions, all of the people I speak to, there is an…

Continue reading at MARKETS INSIDER