Why Bitcoin is annihilating every one of your favorite altcoins

Bitcoin continues to crush its opposition as the leading cryptocurrency now enjoys a nearly 69% share of the entire crypto market cap.

This is the highest level of “Bitcoin Dominance” since April 2017 and marks an extremely frustrating period for altcoin investors.

BITCOIN RISES, ALTCOINS STAGNATE

bitcoin dominance
Bitcoin has continued to increase its dominance over altcoins, hitting the highest level since 2017. | Source: coinmarketcap.com

The Bitcoin price surged to just beneath $11,000 on Sunday after five straight days of gains have restored momentum in BTC/USD. In perhaps the perfect indication of what 2019 has been like for investors in altcoins, both Ethereum and Litecoin are lower on the day. This dynamic is what is driving Bitcoin’s rising dominance of the crypto market cap.

The historical dynamic where a 5% bounce in BTC meant a 15% rise in several smaller crypto assets has failed to materialize during the latest bull-trend. Unfortunately for altcoin bulls, the downside correlation appears to exist still, as losses in Bitcoin have still equated to heavy losses in most smaller coins.

IS BTC IMPROVING UNDER THE HOOD?

bitcoin price vs ethereum price
Bitcoin’s performance against its largest rival, Ethereum, shows the degree to which altcoins are underperforming in 2019. | Source: TradingView

If you invest purely on technological advancement, Bitcoin’s control of the crypto market cap might initially be quite baffling to you. While new altcoins have sought to improve in many ways on BTC’s underlying limitations, no new “advancements” have been compelling enough to convince the global investor population to park their money there instead of BTC.

Moreover, Bitcoin’s technical picture isn’t static – it’s improving under the hood all the time. The ultimate argument against “alt-season” materializing is that BTC can continue to increase its brand dominance, while also…

Continue reading at CCN.com

Bitcoin

Bitcoin Price Flash Crashes by $700 in Minutes

The top 20 cryptocurrencies are seeing mixed movements as Bitcoin (BTC) suddenly flash crashed in minutes from $12,300 to as nearly $11,600.

Market visualization

Market visualization. Source: Coin360

Nevertheless, Bitcoin price is still currently up by 1.5% on the day, trading at around $11,813 at press time, according to Coin360. Looking at its weekly chart, the coin is up by about 24.33%.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: Coin360

As Cointelegraph reported yesterday, the CEO of crypto payments firm Circle, Jeremy Allaire, suggested that macroeconomic turmoil is responsible for Bitcoin’s recent growth.

Ether (ETH) is holding onto its position as the largest altcoin by market cap, which currently stands at $24.5 billion. The second-largest altcoin, XRP, has a market cap of $13.6 billion at press time.

Coin360 data shows that ETH has seen its value decrease by about 0.86% over the last 24 hours. At press time, ETH is trading around $231. On the week, the coin has also gained about 10% of its value.

Ether 7-day price chart

Ether 7-day price chart. Source: Coin360

XRP is up by about 0.15% over the last 24 hours and is currently trading at around $0.322. On the week, the coin is up about 4.2%…

Continue reading at COINTELEGRAPH.com

Here’s The Case For A $100,000 Bitcoin Price By The End Of 2021

The Bitcoin price has been on a tremendous run in 2019, roughly tripling its price in U.S. dollars since the start of the year. That said, Morgan Creek Digital co-founder Anthony Pompliano thinks the party is just getting started.

Pompliano has predicted that the Bitcoin price will reach $100,000 by the end of 2021, and he was recently asked to explain his point of view during an interview with CNN’s Julia Chatterley.

Digital Gold and Loose Monetary Policy

In the past, Pompliano has described the trend towards loose monetary policy combined with Bitcoin’s upcoming halving event as the “perfect storm” for the rise of the digital asset. Pompliano explained this theory during his CNN interview.

“Whenever we get to a recessive period or kind of slowing growth, central banks have kind of two tools: They can cut interest rates, which they did yesterday, and they can print money (quantitative easing). And so, when they do both of those things, it usually takes anywhere between 6 to 18 months to feel the effect of those tools, and what it’s going to do is it’s going to coincide with the Bitcoin halving,” said Pompliano.

A halving event in Bitcoin is when the amount of Bitcoin that are generated by miners every ten minutes is cut in half. Bitcoin’s monetary policy was “set in stone” when the network went live back in 2009, and the scheduled issuance of new Bitcoin is halved roughly every four years.

Originally, 50 Bitcoin were created every ten minutes. Next year, the number of new Bitcoin created in each new block will drop from 12.5 to 6.25.

While gold has historically been viewed as a safe haven asset in times of monetary easing, Pompliano covered a couple of the benefits of Bitcoin over gold during his CNN interview.

“The difference is, between Bitcoin and gold, with Bitcoin, we know exactly how many is getting created, so 1,800 Bitcoin are going to be created today. The second thing is we know the total supply available, which is 21 million. So, it’s not: Hey I wonder how much is in the ground. We know exactly how much it is, and we can actually go and audit or verify the software code of the system,” said Pompliano.

Pompliano is Not Alone

It should be noted that, back in 2017, Pompliano also predicted a $100,000 Bitcoin price by 2019. However, he’s not exactly alone with his latest forecast for 2021.

Pantera CEO Dan Morehead has said there’s a “good shot” the Bitcoin price will hit $42,000 by the end of 2019, and the data used as the basis for his prediction is even more bullish than Pompliano’s $100,000 price point.

Additionally, Tetras Capital’s Brendan Bernstein gave an in-depth presentation on the macroeconomic factors that could lead to a higher Bitcoin price in the coming years at the Bitcoin 2019 conference, and just last week, digital asset research firm Delphi Digital released a report covering Bitcoin’s utility as “digital gold” in the context of more dovish monetary policies from central banks and the possibility of an upcoming recission.

In addition to the macroeconomic trends that could help Bitcoin thrive, some members of the Bitcoin industry have pointed out that

Macro Factors Creating ‘Perfect Storm’ to Drive Up Bitcoin Price: Report

Digital asset research firm Delphi Digital says that the macroeconomic landscape is creating the “perfect storm” to ignite Bitcoin price appreciation.

Monetary easing, crypto peaking

In a fresh report cited by Forbes on August 1, the researchers isolate the dovish turn in global central banking policy as the stand-out factor likely to propel Bitcoin’s price skywards:

“First, and arguably most important, sentiment from global central banks took a drastic turn towards more dovish monetary policies. The Fed, ECB, BOJ, PBOC, and many others are now preparing market participants for more rate cuts and additional stimulus measures as they attempt to keep the current economic expansion going.”

Central bankers’ consensus around the need for quantitative easing stems a geopolitical landscape shaped by protracted trade tensions between the United States and China, disappointing GDP growth in Germany, and the anticipated aftershock of a possible no-deal Brexit.

The digital gold narrative

Beyond monetary easing, the increasing risk of fiat currency devaluation represents a longer-term catalyst that is likely to further drive the price of both Bitcoin and physical gold, the report argues.

As is often discussed, Bitcoin’s scarcity by design and its potential to serve as a store of value in a faltering world economy has earned it the moniker of “digital gold” — a narrative consolidated in Delphi’s new analysis.

In a discussion of the two assets, the report argues that the digital gold view is ever more relevant amid “extreme monetary policies and rising geopolitical tensions” and that:

“The relative size of Bitcoin’s market value compared to the investible gold market, for example, makes it a tempting opportunity for investors starving for assets with above-average growth potential as well.”

Delphi Digital, in fact, predicts that given its unique non-sovereign properties, the investible Bitcoin market could in future outgrow the current gold market — over $7 trillion as of fall 2018.

As reported just yesterday, a former top-level executive at Goldman Sachs has similarly predicted that…

Continue reading at COINTELEGRAPH.com

Bitcoin Has ‘No Intrinsic Value,’ As U.K. ‘Moves Towards’ Crypto Ban

Bitcoin and cryptocurrency regulation has been pushed into the limelight over recent weeks, thanks to social media giant Facebook’s high profile plans to launch its own potential rival to bitcoin sometime next year.

The bitcoin price, which had been climbing on rumors that big technology companies were taking an interest in bitcoin and cryptocurrencies, has plateaued at around $10,000 per bitcoin after a number of countries rebuffed Facebook’s plans, unveiled in June.

Now, the U.K.’s financial services watchdog has warned potential investors that bitcoin and cryptocurrencies have “no intrinsic value,” with some taking the caution as a signal the country could be moving towards a bitcoin ban.

“This is a small, complex and evolving market covering a broad range of activities,” said Christopher Woolard, executive director of strategy and competition at the U.K. Financial Conduct Authority (FCA), which oversees London’s huge banking industry.

“Today’s guidance will help clarify which crypto-asset activities fall inside our regulatory perimeter,” Woolard added, with the FCA warning: “Consumers should be cautious when investing in such crypto-assets and should ensure they understand and can bear the risks involved with assets that have no intrinsic value.”

The FCA branding bitcoin and cryptocurrencies as without “intrinsic value” is likely to rile many bitcoin believers who have long argued blockchain technology, which underpins bitcoin and most other cryptocurrencies, gives the digital tokens value.

“It is technically true that cryptocurrencies have no ‘intrinsic value’ when compared to share ownership in actual companies, however there are many examples where a marketplace bestows value on an intangible asset,” Jon Ostler, of comparison site Finder.com, told the U.K.’s Telegraph newspaper. “For example, the brand of ‘bitcoin’ itself has value and although its future place in society is still unclear, it is one of the most likely coins to stay the course.”

The warning from the U.K. comes shortly after U.S. president Donald Trump unleashed a scathing attack on bitcoin and cryptocurrenciescomments that were then echoed by other senior officials in his administration, including…

Continue reading at FORBES.com

Ripple

Ripple Devotees are Taking Out Loans to Buy XRP

Die-hard Ripple fanatics are going “balls deep” in debt to buy XRP, the cryptocurrency associated with Ripple. One Twitter user known as XRP PHOENIX said he’d taken a loan for “way more than [he] can afford to pay back” to fund his crypto purchases.

 

🦅XRP PHOENIX🦅@XRPBallzD33p

Just went BALLZ deep in

Took out a loan for *way* more than I can afford to pay back

I am NOT bragging or flexing here. My aim by staying this here is to document my BALLZ DEEP journey with you all as an educational material source.

WISH ME LUCK!!! 🤪

886 people are talking about this

Asked why he would make such a risky financial decision, he admitted it was all about greed.

“Honestly, greed is possibly the biggest prevailing reason. However, being from a family that nobody makes over 20k a year/didn’t graduate from high school, I’m just done accepting mediocrity from life. I’m risking it for the biscuit my friend.”

The thread, brought to light by The Block’s Larry Cemark, revealed others who had taken out similar risky loans.

XRP Army risking it all

Another Twitter user reportedly took out a loan against his retirement fund to purchase XRP:

🦅XRP PHOENIX🦅@XRPBallzD33p

Just went BALLZ deep in

Took out a loan for *way* more than I can afford to pay back

I am NOT bragging or flexing here. My aim by staying this here is to document my BALLZ DEEP journey with you all as an educational material source.

WISH ME LUCK!!! 🤪

XRP MR ESTEVEZ 🇩🇴@restevez926

👊🏼 I took a loan on my 401k to invest in XRP. We going hard or we ain’t going at all. I’m with you on this trip🚀

18 people are talking about this

Another said he bought XRP using a AUD $150,000 loan.

“I personally drummed up about 150K AUD in debt buying XRP. It seems like a lot but for a chance of changing my life on a solid investment. I would say what I did was the right thing for me.”

The prevailing reason behind these rash financial decisions is pure monetary gain. As another Ripple devotee explains:

“I too spent more than I can afford on XRP but only because it’s a once in a lifetime opportunity to get rich.”

XRP: one of the worst-performing cryptocurrencies of 2019

Apart from Stellar (XLM), XRP is the worst-performing digital asset in the top ten. It’s down 14 percent while bitcoin is up 150 percent. Making the “balls deep” investment even more dangerous.

There are many reasons why XRP has fallen behind its peers. Despite numerous promises by Ripple CEO Brad Garlinghouse, XRP has yet to be adopted as liquidity tool by major banks. Ripple’s many partnerships have not converted into XRP utility or demand.

Then there’s the threat posed by Facebook’s Libra and banks like JP Morgan developing their own cryptocurrencies. Libra, which aims to facilitate cross border payments and remittances, arguably weakens XRP’s use case. And by creating their own cryptocurrencies, banks could sidestep XRP completely.

And third, there’s…

Continue reading at CCN.com

 

Bitcoin

Even Bitcoin Bears Think the BTC Price Could Hit New Record in 2020

Despite the lack of decisiveness in the bitcoin market following the dominant crypto asset’s abrupt drop from $14,000 to $9,500, many analysts – even bearish ones – generally remain confident that the bitcoin price is heading towards a new record high in 2020.

The bitcoin price is up by more than two-fold in 2019 year-to-date
The bitcoin price has dropped nearly $5,000 from its yearly high. | Source: CoinMarketCap

On CNBC’s Squawk Box, as CCN reported, prominent news anchor Joe Kernen emphasized the imminence of the next halving of the Bitcoin blockchain protocol, suggesting that it could act as a major catalyst for the asset over the medium to long term.

Bitcoin price should surge as one crucial event disrupts supply & demand ratio

In recent years, the bitcoin price has been primarily driven by supply and demand from the market. As the market capitalization of the asset grew, the impact of news and events have started to lessen.

The block reward halving of bitcoin, which occurs approximately every four years, is expected to have a fundamental effect on the circulating supply of bitcoin, altering the rate at which new BTC are mined.

On the Bitcoin blockchain protocol, users mine BTC to…

Continue reading at CCN.com

A Stark Prediction For The Future Of Bitcoin, Ether, XRP And Litecoin

Bitcoin, ETH, XRP and LTC prices, will be on a roller coaster for a long time. Traders and investors will make and lose fortunes in record time, betting on them. In the end, say some analysts, these cryptocurrencies will either die on their own, or be killed by the ‘establishment’ — big governments and big banks around the world that defend sovereign currencies.

Take the case for Bitcoin.

The “people’s currency” holds a great promise: to become the first true global currency, free of the control of central banks that print money and big banks that generate credit.  But to do that, Bitcoin must gain the trust of the “general public.“ This means it must be adopted as a medium of exchange, standard of value, and store of value, replacing national currencies.That isn’t easy, given the many obstacles Bitcoin has to overcome. Like lack of awareness, familiarity, and stability, etc. And that makes some experts bearish about the future of Bitcoin.

Bitcoin Price YTD

Bitcoin Price YTD

KOYFIN

Lars Seier Christensen, Chairman of Concordium, the next-generation decentralized world computer, is one of them. “In the longer term, I am bearish on bitcoin as I believe it does not have the necessary characteristics of a longer-term valuable asset and, eventually, that reality will catch up” says Christensen.“But in the short term, price movements will likely be random as Bitcoin is affected by low liquidity and unpredictable bigger trades.”

Unpredictability will make it hard for Bitcoin to gain broad adoption as a medium of exchange. And without broad adoption, Bitcoin will remain a play for speculators and true believers, and eventually die on its own…

Continue reading at FORBES.com

Bitcoin Price Dips Under $10K as Analysts Disagree Over 2019 Trajectory

Bitcoin (BTC) price fell below $10,000 again on July 26 amid mixed conclusions about where markets are likely to go this year.

Market visualization

Market visualization. Source: Coin360

Bitcoin price headed to $7,000 or $20,000?

Data from Coin360 showed renewed selling pressure on the largest cryptocurrency Friday, with daily losses totalling around 3%.

At press time, BTC/USD traded around $9,790, extending weekly losses to just over 5% while challenging recent lows of $9,580 seen earlier in the week.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Courtesy of Coin360

Markets remained uncertain on the back of political noises coming from the United States and India; in the latter, lawmakers were again considering a complete ban on cryptocurrency usage.

Looking to the remainder of Bitcoin’s comeback year, meanwhile analysts were diverging over the most likely scenarios.

Technical trader Filb Filb presented a yearly forecast for BTC/USD on Wednesday, in which he eyed the pair falling somewhere into the $7,000 range. Previously signalling miners would keep prices above $6,500, he now added markets should see a boost in 2020, prior to the block reward halving event in May.

At the same time, however, others are more buoyant, factoring in non-technical motivators for Bitcoin moving further upward this year.

Speaking to Bloomberg, Galaxy Digital CEO Mike Novogratz delivered his latest bullish forecast, arguing institutional interest would push Bitcoin price back to its all-time highs of $20,000 before the end of 2019.

Or even a parabolic $42,000?

His projections remain conservative in comparison to this week’s other bullish announcement, which came in from digital asset manager Pantera Capital. The firm’s CEO, Dan Morehead, told CNBC Bitcoin could reach $42,000 before next January.

Any parabolic moves were meanwhile noticeably absent from…

Continue reading at COINTELEGRAPH.com

Bitcoin

Who Invests in Bitcoin? The Answer Might Surprise You

There are several common perceptions about investors in bitcoin and other cryptocurrencies. For example, bitcoin investors are generally thought of as younger people and as a very small subset of the population.

In order to get a better idea of who is interested in and investing in bitcoin, Grayscale recently commissioned a survey. Conducted by Q8 Research, this survey asked 1,100 U.S. investors between the ages of 25 and 64 about bitcoin, and some of the results are surprising.

One-third of U.S. investors are interested in bitcoin

The survey found that over one-third (36%) of U.S. investors would consider an investment in bitcoin, which roughly translates to 21 million people. There are a few potential reasons for this — in addition to its use as a speculative instrument or as a long-term store of value, bitcoin is often seen as a way to diversify a portfolio, as its price movements are not closely correlated with the stock market.

To clarify, this isn’t to say that 21 million Americans actually own bitcoin. This is simply the group of people who would consider an investment in the digital currency.

Bitcoin investors aren’t as young as you might think

The average investor is 45 years old, and the average investor interested in bitcoin is 42. This is in contrast to the common misperception that bitcoin is popular only among millennials and other younger investors.

Looking a little deeper into the demographics reveals more surprising data. Investors interested in bitcoin are actually slightly more likely to identify as Republican than the average investor, and have a similar income distribution to the average investor.

One area that does conform to the common perception is that men are more likely to be interested in bitcoin than women. While the overall investor base surveyed was 49% men and 51% women, men made up 57% of those who said they were interested in bitcoin.

Bitcoin investors have a thirst for financial news

The 1,100 investors surveyed were asked about 28 different financial news outlets in print, online, and TV formats, and all 28 are more likely to be read or watched by investors interested in bitcoin. Using our own website as an example, 25% of bitcoin-interested investors say that they read content on The Motley Fool (Hi, Fools!). Among the general investing public, that number is 13%.

Investors interested in bitcoin are also likely to be interested in gold

Here’s one that isn’t too surprising. Bitcoin is often referred to as “digital gold,” as many people who own bitcoin see it more as a store of value than as a payment mechanism.

Grayscale’s survey found that 55% of investors believe gold is a good investment. If you narrow the pool to investors who are interested in bitcoin, this jumps to…