When is Bitcoin FOMO going to kick in?

Bitcoin has made a 130% gain so far this year. The stock markets are down amidst the US-China trade war, which usually spurs investors toward safe-haven assets.

But people aren’t buying gold. Institutions are leaping on the blockchain bandwagon one after another, with Bitcoin trading at a massive 37% premium on Grayscale. Facebook is also entering the space, as are JP Morgan and Fidelity… the list of household names with Bitcoin FOMO is getting longer.

So why aren’t the crowds going wild?

When is Bitcoin FOMO going to kick in?

Around the time of the industry’s most important conference of the year – Consensus – earlier this month, Bitcoin shot up by over $1,000 overnight.

eBay announced (and later retracted) that it would be accepting cryptocurrency payments. Microsoft came out with its plans to build on the Bitcoin blockchain. North American food chain Whole Foods also joined the revolution and the price started to soar.

Yet despite what historically causes a massive “gold rush” of retail investors suffering from Bitcoin FOMO, this rally is far from retail-driven. In fact, it appears to be the institutions that are scared of missing out.

With the Bitcoin halvening happening next year, Bitcoin is becoming more scarce and more valuable. More of it will be owned by institutions.

How can you tell when retail investors are gripped by Bitcoin FOMO?

That might sound like a stupid question. After all, the price would just go up, right? Well, yes. However, there are some other indicators that can alert us to a possible retail buying spree.

Google Trends

What do most people do when they want to find out more about something? They turn to Google for their answer. Of course, Google may not be the only search engine around the world, with Yandex, Baidu, and a plethora of privacy browsers. But when it comes to market leadership, Google still takes the cake with 88.47% of the market share in April 2019.

So, with all the action going on in the markets right now, you would imagine that searches for Bitcoin would be going through the roof. Not so much. In fact, take a look at the information below from Google Trends and you’ll see that interest in Bitcoin is…

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Ethereum

Bullish Fund Manager Bets on Ethereum after Stunning 112% Spike in 2019

By CCN: Year-to-date, ether (ETH), the native crypto asset of the Ethereum blockchain network, has increased by 112 percent against the U.S. dollar, recovering to $285 from $133 at the start of the year.

Ethereum (ETH) is up 112 percent year-to-date

Ethereum (ETH) is up 112 percent year-to-date (source: coinmarketcap.com)

Jehan Chu, a co-founder and a managing partner at Kenetic Capital, believes the Ethereum blockchain network is here to stay and that in terms of utility, ETH is leading the pathway for the rest of the market.

ETHEREUM AS THE GLOBAL SUPERCOMPUTER

Since its inception in 2014, the Ethereum blockchain network has been widely considered as a global supercomputer, a decentralized protocol on which developers can deploy and operate decentralized applications (DApps) in a peer-to-peer environment.

As a sign of healthy long-term sustainability and survivability, Chu cited the rate in which the open-source developer community of ETH is working improve the existing codebase of the blockchain network.

In October 2018, Octoverse, the annual survey conducted by Github among developers in the community, ranked Ethereum’s Go client as the fifth fastest-growing open-source project in the world.

Ethereum's Go was ranked as the fifth fastest growing open source project

ETH’s Go was ranked as the fifth fastest growing open source project in October 2018 (source: Octoverse)

Chu cited the rate of adoption as well as the network effect ETH has with its large developer audience as the main factors that would fuel the growth of the network over the long run.

He said…

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Bitcoin

Why Bitcoin And Cryptocurrency Investments Are A ‘Once-In-A-Generation Opportunity’

Bitcoin, which has exploded back into the public consciousness over the last few weeks following a huge surge in the bitcoin price, has again captured the attention of some of the world’s biggest investors and traders.

The bitcoin price, which began the year at under $4,000 per bitcoin, has soared to highs of almost $9,000 at the beginning of this weekup a staggering 120% and causing many to predict a potential return to the all-time highs seen at the tail end of 2017.

Now, trading veteran Glen Goodman, who successfully profited from shorting stocks and shares during the 2008 global financial crisis, has branded the rise of bitcoin and cryptocurrencies a “once-in-a-generation” investor opportunity and called on people to “grab it with both hands.”

“I’ve taken my years of trading experience and applied it to a brand-new market,” Goodman wrote in his new book, The Crypto Trader. “Crypto is the Wild West of trading, and that means the risks, as well as the rewards, are greater.”

Goodman’s book comes as the bitcoin and cryptocurrency market is keenly awaiting institutional investment in the fledgling industry, with the world’s biggest technology companies, including social media giants Facebook and Twitter, eyeing bitcoin and crypto as a potential new revenue driver.

The bitcoin and cryptocurrency sector is, however, still reeling from a bitter bear market that gripped the market throughout 2018, with many major cryptocurrencies losing around 90% of their value. Bitcoin and most other major cryptocurrencies soared throughout 2017, with bitcoin rising from under $1,000 per bitcoin to almost…

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3 Reality Checks For Bitcoin As The Price Continues To Rise

The bitcoin price has taken a turn towards the upside in 2019, rising roughly 135% so far this year. This most recent price surge, which started around the beginning of May, followed reports from Adamant Capital and Delphi Digital that the bitcoin price had likely reached its bottom for the current market cycle.

Having said that, there is still plenty of work to be done for bitcoin to reach its full potential. Although it is often promoted as an anonymous, decentralized, and apolitical version of digital money, the crypto asset has much room for improvement when it comes to fulfilling the cypherpunk vision of anonymous digital cash.

What follows is a reality check on what bitcoin can realistically provide to its users today.

1. Bitcoin is Not Anonymous

One of the key tenets of digital cash is that it should be anonymous and fungible. Without these features, it becomes much less like its real-world equivalent.

Bitcoin is simply too traceable right now. There are multiple blockchain analytics companies that are able to write reports on the state of the Bitcoin network based on their ability to track the flows of bitcoin between users. This should not be possible in a system that is supposed to be digital cash.

Wasabi Wallet and Samourai Wallet have both made strides in making Bitcoin more private, but trying to use bitcoin in a private manner is still rather clunky due to the the limitations caused by the current consensus rules. In terms of base layer privacy, something like Confidential Transactions, which masks the amounts sent in transactions, may be needed to create a more user-friendly experience.

While Confidential Transactions is an improvement that is unlikely to find its way into Bitcoin for quite some time, Schnorr signatures have the ability to enable a competitive advantage for more private transactions in the form of lower fees.

Additionally, the second-layer payments protocol known as the Lightning Network has the potential to improve privacy by broadcasting transaction information to less people and publishing less transaction data on the blockchain.

A decent chunk of bitcoin’s potential value and usefulness comes as a hedge against a dystopian cashless society where governments and large financial institutions are tracking everyone’s financial activities, so improvements in privacy should be seen as a priority for developers and users.

Having said that, as Blockstream mathematician Andrew Poelstra has explained, Bitcoin users are generally unwilling to add experimental privacy features to the network at the potential expense of things like security, stability, and a transparent calculation of the bitcoin supply…

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Bitcoin vs Ethereum vs Litecoin

Three of the most famous cryptocurrencies that most people have heard of are Bitcoin, Ethereum, and Litecoin. Not only have they survived longer than many others, but they have all maintained their strong positions in the rankings of most valuable cryptocurrencies. Each one has its own unique attributes that they hope will help them compete in an extremely volatile market.

Bitcoin

Bitcoin is the most famous cryptocurrency out there and also the original. Created by Satoshi Nakamoto in 2008, Bitcoin is an uncensorable form of money that can be sent peer to peer anywhere in the world, without the need for a third party.

These unique attributes have garnered interest from libertarians, crypto-anarchists, and people unsatisfied with the current status quo of the economic system. It has also received derision from classical economists who point to the volatile price fluctuations as a clear example of a bubble in progress.

Despite being labelled “dead” on numerous occasions, Bitcoin has continued to survive and ultimately thrive. Not only is the price higher than most ever imagined, but there are now whole industries and conferences built around this one invention that was released on a mailing list all those years ago.

As a piece of software, Bitcoin continues to develop and evolve. New ideas such as the Lightning Network and Schnorr Signatures hope to help continue pushing Bitcoin further mainstream, with the ultimate goal being to overthrow the current fiat system. Such lofty goals have caught the attention of US congressmen who have called for cryptocurrencies to be made illegal due to fear of the US losing its hegemony through the use of the US dollar as the world’s reserve currency.

Criticism of Bitcoin is usually aimed at the Proof-of-Work hashing algorithm and the size of the network. Proof-of-Work is energy intensive, and many people have accused Bitcoin of being a waste of precious resources in a time when global warming is on the forefront of many people’s minds.

Ethereum

Ethereum is the creation of Vitalik Buterin and doesn’t directly compete with Bitcoin in terms of its money properties. Instead, the smart contract-based platform has been labelled as a potential “world computer”. Despite this, for many people, cryptocurrencies are merely investment vehicles, meaning the underlying technology often gets overlooked for the price.

Ethereum has seen significant growth in price the same way as Bitcoin has. It has also created plenty of hype and excitement. Due to the nature of Ethereum, it is possible to build tokens on top of the platform. Many cryptocurrencies on the market today are ERC-20 tokens that use Ethereum as a base layer.

Whilst Ethereum has struggled to…

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Despite Crypto Rally Pause, This Billionaire Still Expects Bitcoin at $250,000

Bitcoin (BTC) may have dropped by 4% in the past 24 hours, receding to $7,600 in an interday drop, but many analysts and investors are still optimistic. The thing is, the fact that BTC collapsed to $6,100 and then skyrocketed to tap $8,000 for a second time was deemed by many to be wildly positive, as it asserts that the bulls have control of the cryptocurrency wheel.

One prominent investor claims that this is just the start though. He recently asserted that Bitcoin’s runway is a lot longer than some expect and that BTC can easily reach a value in the sextuple-digit range.

Bitcoin Rally Is Just Getting Started

Tim Draper, a prominent venture capitalist known for sporting an “offensive” purple Bitcoin tie, recently told The Street that now’s still an optimal time to purchase Bitcoin. In a comment characteristic of his long-term expectations for this space, the investor quipped that it may be wise to “buy the dip [or] buy the rebound”, hinting at his belief that whether your BTC cost basis is $5,000 or $10,000 in years from now won’t matter.

He goes on to state that by 2022, “maybe 2023”, he expects for each BTC to be valued at $250,000, explaining his prediction as an estimate of the market share that Bitcoin will obtain as a viable currency and digital store of value.

This is far from the first time he touted such a lofty prediction. Speaking to CoinTelegraph, the staunch permabull remarked that 2018’s sell-off to $3,150 from $20,000 was simply a “fluctuation”, musing that the move was catalyzed by manipulators looking to turn a quick buck. Explaining why buying cryptocurrency whenever is logical, Draper opines…

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Bitcoin Price Falls

Crypto analyst expects a healthy pullback for bitcoin

By CCN: Josh Rager, a cryptocurrency trader and technical analyst, expects a healthy pullback for bitcoin based on the historical performance of the asset in the past three years.

Since 2016, the bitcoin price has tended to correct by 30 to 40 percent following a strong short-term rally.

The bitcoin price is up nearly $3,000 in 30 days

The bitcoin price is up nearly $3,000 in 30 days (source: coinmarketcap.com)

Although the historical performance of the bitcoin price is no guarantee of its future trend, coming off of a staggering 100 percent year-to-date gain, despite the strong momentum of the asset, some analysts have suggested the possibility of a large correction.

IS A 30 PERCENT DROP FOR BITCOIN POSSIBLE?

Like any other asset, bitcoin can become vulnerable to a minor correction if it surges by a large margin in a short time frame in a parabolic rally.

Apart from one occasion in the past week during which bitcoin experienced an abrupt drop to $6,400, the dominant cryptocurrency has more or less recovered without a large downside movement or a correction in the past month.

Since April 22, the bitcoin price has increased from $5,300 to $8,000, by nearly $2,700 within 30 days.

As such, several traders are anticipating a minor correction to occur given that the bitcoin price has surged without a dip in momentum.

Rager said…

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Why Litecoin Might Skyrocket Once Again

Litecoin is among major cryptocurrencies that are attracting attention at the moment. This comes at a time the asset’s prospects appear bright after encountering a turbulent 2018.

By the time of writing this article, Litecoin was trading at $89.01 with a market capitalization of $5.5 Billion, However, based on a number of factors within the Litecoin community, we might see the value skyrocket once again.

At the moment, Litecoin has been oversold and holders are considering selling it. Normally, when a cryptocurrency becomes oversold, its value has high chances of rebounding at any time.

With LTC, the oversold phase will be short term. The market will therefore break and the forces of the bears will be overshadowed by the forces of the bulls. It is key to highlight that the value of Litecoin will start rising gradually to new heights.

In August 2019, Litecoin will undergo its second halving. With its max supply of 84 million that will exist, The Litecoin network conducts the halving after every 840,000 blocks, a process that is expected to positively impact the asset’s value.

Note that with any cryptocurrency, as the number of blocks is mined, mining becomes difficult leading to more resources. However, mining rewards decrease. As a way of managing the decrease in mining rewards, the value of the crypto increases.

Litecoin is also expected to…

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Bitcoin Broken

JPMorgan Warns Investors Of ‘Overpriced’ Bitcoin And Potential Crash

True to form, JPMorgan strategists have been warning investors off Bitcoin, despite the current bull-market. According to a recent investor note, Bitcoin has surged ahead of its ‘intrinsic value’, mirroring 2017’s boom, before 2018’s slump.


Naturally JPMorgan Wants To Rain On Bitcoin’s Parade

Bitcoin price 00 has undergone a heroic charge since the beginning of April, signalling the end of the nearly 18-month crypto-winter. However, the BTC-phobic strategists of JPMorgan, will always find some reason to dissuade any interested customers from buying.

For JPMorgan, cryptocurrency price gains mean only one thing – the overpricing of assets. In order to give the FUD an air of science, they are even able to put a figure on it – the ‘intrinsic price.’ Which, according to JPMorgan, derives from treating Bitcoin as a commodity and calculating its ‘cost of production.’

According to the strategists:

Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.

Of course, JPMorgan omits that Bitcoin does not behave like a commodity as its supply is not only hard-capped, but its output is predictable and constant regardless of market demand.

Between The Slump And The Rally, Surely There Was A Buy Signal?

Not anything that JPMorgan could acknowledge. Although logically, yes, there must have been some point that bitcoin was a buy. It seems the experts at JPMorgan missed that.

In fact, they were singing the exact same tune back in February, when BTC was hovering at around the $4000. Back then, JPMorgan’s ‘intrinsic value’ was just $2400, based on the ‘average cash cost of a low-cost Chinese miner’.

bitcoin jpmorgan

However, all that is really being charted here is a rough sketch of miner’s profit margins.

Still, before that the folks at JPMorgan were adamant that Bitcoin had no ‘intrinsic value’ at all, other than perhaps in a dystopian future scenario.

“Great to see JPM finally admitting that Bitcoin has intrinsic value,” commented EToro senior market analyst, Mati Greenspan. “Now wait till they understand that miners who run a surplus tend to begin hoarding.”

JPMorgan Disclaimer: We Don’t Really ‘Know’ Anything

Many in the mining community have argued that the very concept of a ‘marginal cost’ or ‘break-even point’ is flawed. With a finite supply, miners can only receive a bigger share of that relative to other miners.

JPMorgan alludes to the ‘challenge’ of defining a ‘fair value’ for BTC in a caveat to its strategist’s note.

Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.

So… ‘Based on our, admittedly somewhat arbitrary, valuation, don’t buy bitcoin’. Is this what passes for professional financial advice these days?

Do you agree with JPMorgan’s assessment of bitcoin’s current value? Share your thoughts below!


Images via Shutterstock, JPMorgan/Bitfinfocharts.com

The post JPMorgan Warns Investors Of ‘Overpriced’ Bitcoin And Potential Crash appeared first on Bitcoinist.com.

Source: Bitcoininst

The price of Bitcoin plummeted today, what happened?

Following a crazy rally, it finally happened: Bitcoin plunged $1800 in a large red candle, driving down the price to a low of $6180 on Bitstamp.

As written here before, we had a strong clue on what was going to happen:

“Add to that a recent significant drop in the short positions caused a daily 38% decrease, as the short positions are now at their lowest point over the past year. The number currently stands around 17K BTC open short positions. As a reminder, a situation where shorts are at their lower levels and longs at their high create the perfect settings for a long-squeeze.”

Does this mean Bitcoin is bearish again? It’s early to say so. So far, the anticipated correction is very aggressive but looks healthy and aggressive as this was on the way up. Besides, we mentioned here the importance of the $5700 – $6000, which was what held the market during the bear year of 2018. As long as this area hadn’t broken down, I would say that the correction is violent, but healthy.

And last, Tone Vays was right!

Total Market Cap: $255 Billion

Bitcoin Market Cap: $142.5 Billion

BTC Dominance: 55.9%

Looking at the 1-day & 4-hour charts

– Support/Resistance:
Following the break-down of the mid-term descending trend line on the 4-hour chart, it didn’t take long, and the dump came across. As can be seen, the wick of the 4-hour candle had reached the longer-term ascending trend-line support, along with Fib level 78.6%.

As of now, Bitcoin is testing support at $7250 – $7300 (along with Fibonacci retracement level 38.2%). From below, the next significant support area lies at $7000. Further below is $6700 (along with Fib level 61.8%), $6400 and $6300.

From above, the next significant resistance is the current price area, while further support turned resistance level lies at $7600, $8000, $8200, and 2019 high at $8400.

– Trading Volume: The recent dump was followed by a massive amount of funds. It’s ok to have an ugly correction like this, but the next days will tell if the sellers had returned.

– Daily chart’s RSI: The RSI had also dropped sharply. As of now, it’s still in the bullish territory (63); however, there is always more room to go down.

– BitFinex open short positions: since yesterday, we hadn’t seen the opening of new short positions as the number increased just a little to 16.7K BTC open short positions. From the other side, and supporting the long-squeeze theory we mentioned, the open longs had sharply decreased by 10%.

BTC/USD BitStamp 4-Hour Chart

btc_may17_4h-min

BTC/USD BitStamp 1-Day Chart

btc_may17_d-min

The post Bitcoin Plunged $1800 Following a Violent Correction. Are The Bulls Still Around? BTC Price Analysis appeared first on CryptoPotato.

Source: Crypto Potato