Anthony Pompliano Makes THIS Major Bitcoin Prediction

Bitcoin (BTC) still has “lower to go” despite its bull run to above $4,000 last week, Morgan Creek Digital Assets founder Anthony Pompliano told CNBC on Dec. 26.

Speaking in an interview, Pompliano, who is also a frequent markets commentator on social media, became the latest figure to claim Bitcoin markets will only bottom out when the price drifts below $,3000.

“Short term, I actually think we have lower to go,” he told the network.

In November, Pompliano had predicted a plunge to $3,000 for BTC/USD, which subsequently occurred earlier this month.

Since then, prices across the crypto markets have taken off, with Bitcoin hitting its monthly high of almost $4,300 before correcting downwards to circle $3,782 at press time. Some altcoins gained much more, with Bitcoin Cash (BCH) and Ethereum (ETH) more than doubling their respective USD values in days.

Asked whether Bitcoin’s price was “correlated” with traditional or FAANG (Facebook, Apple, Amazon, Netflix and Google) stocks, Pompliano…

Continue reading at COINTELEGRAPH.com

Trump

Could President Trump Be Setting Up The Next Big Bitcoin Rally?

So asked fund manager, Ross Gerber, on Twitter, without giving so much as an ounce of explanation. So let’s investigate… could it be a crypto-Christmas thanks to Trump, or did Gerber just deliver early Christmas for Twitter trolls.


What Has Trump Done Now?

Take your pick. Perhaps the scene was set by the announcement of Bitcoin proponent, Mick Mulvaney, as his acting Chief of Staff, who will, at the same time, continue his role as Trump’s Budget Director.

Then, of course, there is Trump’s ongoing war of words with the Federal Reserve. Last week’s quarter-point rise in interest rates added fuel to the fire and spooked the markets. Trump caused further alarm with the suggestion that he wanted to fire the Fed chairman… until he realized he couldn’t. Still, Trump has been a vocal critic of Fed policy as of late and the Federal Reserve as a whole, calling it “the only problem” with the economy.

Trump believes the Fed is out of touch with the market as the current tapering of QE could bring about another recession if not worse. What’s more, Treasury secretary, Steven Mnuchin even went as far as calling the CEOs of the nation’s six largest banks, to check that they had sufficient liquidity. Though, he may have inadvertently caused just the sort of panic he was trying to avoid.

Relative to Bitcoin, the Fed’s monetary easing is seen as a positive for hard money like Bitcoin as inflating the money supply should, at least in theory, boost BTC price 00 in USD terms moving forward.

Then There’s The Small Matter Of a Gov’t Shutdown

Meanwhile, the president has dug in his heels and closed down the government because Democrats wouldn’t give him $5 billion to build a wall. Mulvaney said that this situation may continue beyond the current projection of 28th December, and last until Congress reconvenes in January.

That would be the new Congress reconvening, with a Democrat majority, meaning a likely roadblock for wall funding. President Trump has simply said that this standoff could go on for a “very long time.”

In other words, economic instability, potential bank failures, and political uncertainty. So as Wall Street veteran, Max Keiser, said in his recent Bitcoinist interview:

Bitcoin adoption has always been driven by bank failures, bailouts, bail-ins, and political unrest.

Therefire, it’s no surprise that some investors and money managers are seeing this tug-o-war between the Fed and Trump as a net positive for Bitcoin.

“Trump might be setting up a huge bitcoin rally. This is what it was made for… just saying,” tweeted fund manager Ross Gerber. ” Crypto is NOT dead. Haven’t sold mine and not going too.”

Whatever your feelings on Trump, Bitcoin, or anything else, Gerber certainly drew a line in the sand (as perhaps was the intention). The Twitterverse queued up to stand either side of that line and sling tinsel-wrapped mud at each other, in a traditional pre-Christmas banter-match.

But is it so unbelievable that Trump really could spur a huge Bitcoin rally? The current ‘Santa rally‘ in cryptocurrencies could be a start. And arguably, he may have had some kind of hand in the last moonshot as Bitcoinist predicted that the Trump presidency would likely have a positive effect on Bitcoin price.

Will Trump’s policies provide fuel for the next Bitcoin rally? Share your thoughts below!


Images courtesy of Shutterstock

The post Could President Trump Be Setting Up The Next Big Bitcoin Rally? appeared first on Bitcoinist.com.

Source: Bitcoininst

Federal Reserve

Did the Federal Reserve’s Interest Rate Hike Boost the Price of Bitcoin?

We’ve discussed in the past about how certain asset classes are correlated. The stock market and the crypto market tend to move in patterns.

Bitcoin’s price has also become increasingly correlated with the stock market:

As the image illustrates, the correlation became most evident in early 2017, which was also a very bullish year for both Bitcoin and the stock market.

Datatrek, a research consultancy has analyzed three holding periods of 10 days, 30 days, and 90 days for Bitcoin and the S&P 500 since January 2016. They found that there was a 79% and 52% correlation in Bitcoin and daily S&P 500 price movements. On a 90-day basis, that figure has a correlation ratio of 33%.

“Since investors have only one brain to process risk, they will make similar decisions about cryptocurrencies and stocks when they see price volatility in the latter,” – Datatrek Analyst.

Also, Bitcoin has generally seen a boost when major world fiat currencies such as the Chinese Renminbi, Argentina’s peso or the Venezuelan dollar start to weaken or inflate significantly, forcing people to seek stability elsewhere.

Correlation with Interest Rates

In today’s analysis, we believe there is a positive correlation between the Federal reserves recent decision to raise interest rates by 2.5%, and Bitcoins price jumping back to $4k from $3,200.

Interest rates are a key determining factor in an individual or entities ability to borrow money. Low-interest rates mean that money can be borrowed cheaply because you don’t have to pay back much more than you borrowed. High-interest rates make borrowing more expensive because you have to pay back the amount owed, plus perhaps an addition 5,10 or 15% more (depending on your level of trustworthiness as a borrower).

The Federal Reserve usually raises interest rates as a way to cool down the market in times of a bubble (when assets are overbought, and prices are too high compared to the real value of an asset).

Much of what drives people and businesses to invest in things such as real estate or stocks is access to low-interest rate loans. The easier it is for me to borrow more money, the more of that money I can allocate to stocks or other investments.

Low-interest rates can therefore often coincide with bull runs in the stock market.

Now when the Federal Reserve decides to increase interest rates (or even if there is mere speculation that interest rates could go up), investors become bearish and sell their stocks because they anticipate that fewer people will have access to cheap loans that they can pour into the stock market.

Interest rates rose by 2.5% yesterday, while the Dow Jones and S&P 500 dropped by about 5% each in the past five days leading up the interest rate hike.

Source: marketwatch.com

Meanwhile, Bitcoins price went up by more than $800 in the past 5 days.

A possible reason for this is that some stock investors may have decided to shift their funds from stocks to crypto. Usually crypto wouldn’t be the ideal second choice (Gold or Bonds are typically next in line after stocks for savvy investors). However, with Bitcoins price dropping by almost 50% in the past three weeks, it presented an excellent opportunity for stock investors to transition into an oversold asset at just the right time.

Ultimately, predicting which asset classes will perform well when others are performing poorly is never an exact science. However, with a basic understanding of economics and by observing patterns of overselling, a solid case can be made for Bitcoins current price hike. How long it lasts and where it will top off remains to be seen.

The post Did the Federal Reserve’s Interest Rate Hike Boost the Price of Bitcoin? appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin

Bitcoin hits $4,000, will this rally last?

This week’s more than 25% rally in Bitcoin is impressive, but it doesn’t signal a return to its erstwhile boom years, if its price history is a guide.

The momentum that saw it soar from under $1 to almost $20,000 between 2011 and the end of last year is gone and unlikely to return, according to traders and analysts who look to chart patterns for clues on price direction. That’s because a key uptrend on its logarithmic chart failed, they said.

Even crypto bulls—like Charlie Morris, a fund manager at Atlantic House, which manages $1 billion in assets, are skeptical that the future is as bright as the past. Having been active in the market since 2013, he said gains are likely to now be more modest in the wake of this year’s more than 70 percent decline.

“That trend has been a great ride, but it is broken,” Morris said in a letter to investors. “The long-term chart tells you to prepare for lower rates of return.”

Parallels could be drawn between the demise of last year’s bubble and the end of the dot-com boom of the 1990s, according to Paul Day, a technical analyst and head of futures and options at Market Securities Dubai. The Nasdaq Composite Index then also plunged almost 80%. When it finally recovered to its pre-crash highs more than 15 years later, many of the early stars were no longer around.

“If, and it’s a big if, crypto survives and the winners become viable mediums of exchange in the years ahead, there is…

Continue reading at FORTUNE.com

 

Bitcoin rally

Bitcoin Rallies and Altcoins Surge Higher

Wednesday, Dec. 19 — Cryptocurrency markets continue a fresh rally with Bitcoin (BTC) touching $3,800 and leading altcoins to claw back their latest losses.

Data from Cointelegraph’s own price index, CoinMarketCap and Coin360 confirms the extended rebound, which began late Monday and continued through Tuesday.

After a slight correction, almost all of the top 20 assets by market cap began climbing higher again, with BTC/USD finding support at $3,750.

Last week, the pair had dipped as low as $3,130 amid warnings that a much larger fall could be imminent, potentially taking Bitcoin to $1,300 or lower.

At press time, the largest cryptocurrency was trading on major exchanges for around $3,830…

Continue reading at COINTELEGRAPH.com

XRP Ripple

Could Ripple (XRP) overtake Bitcoin in 2019?

XRP has been dormant for a very long time and as the end of 2018 approaches, the much-needed news about Ripple’s partnerships with major financial institutions have started erupting in the crypto-space.

In addition to the above, XRP and cryptocurrencies are being backed by major players in the financial industries, like the managing director and the chairwoman of the International Monetary Fund [IMF], Christine Lagarde, which is a telltale of massive adoption of cryptocurrencies in real-world.

Ripple’s Partnerships

Ripple has now made massive partnerships with major banks and financial institutions around the world, like Israel’s GMT, Turkey’s Akbank, MoneyGram, AmericanExpress, CIBC, Earthport, and many more who have the access to use Ripple’s blockchain technology for cross-border payments and more.

Akbank announced that it was using Ripple’s blockchain technology [Ripple Net] to transfer the GBP to UK’s Santander, another financial services company. This announcement doesn’t clarify that it is not using XRP as a bridge currency, but it doesn’t mention that it isn’t either.

Moreover, the CEO of Ripple, Brad Garlinghouse’s words did come true, but partially because he had said that at least one bank will be using Ripple’s ‘xRapid’ by the end of the year 2018.

More specifically, he stated…

Continue reading at AMBCRYPTO.com

Bitcoin

Bitcoin moves more than 10% on the 1-year anniversary of its $19,000 record

  • The world’s largest cryptocurrency rallied as much as 11 percent to start the week.
  • Bitcoin has still fallen more than 50 percent in the past three month and is down 75 percent this year.
  • Monday was also the one-year anniversary of its all-time high near $20,000. It has since dropped 83 percent, according to data from CoinMarketCap.com.

Bitcoin staged a minor recovery on Monday, finally topping the $3,400 level after weeks of pain.

The cryptocurrency has nosedived by more than 80 percent from the all-time high hit exactly a year ago. On December 17, 2017 bitcoin peaked just above $19,475, according to CoinMarketCap.com. It has struggled to come anywhere close to that level since.

Monday’s move was its best daily performance since the last week of November, according to industry data site CoinDesk. The cryptocurrency jumped 11 percent to a high of $3,437.57, but has dropped by more than 50 percent in the past three months.

“As a relatively new concept, cryptoassets are still finding their feet in terms of value,” said Mati Greenspan, senior market analyst at eToro. “It’s important to remember that all assets, in every market, experience a process of price discovery and that cryptos are no different…

Continue reading at CNBC.com

Bitcoin Price Falls

Bitcoin price PLUMMET: Why is bitcoin falling? Will it rise?

BITCOIN (BTC) halved in value this month as the cryptocurrency revisited its lowest value level in 2018. So why is Bitcoin falling and will BTC ever recover?

Bitcoin slumped to a new yearly low of £2,556 ($3,218) on December 14, following a significant sell-off. The flagship cryptocurrency briefly showed signs of a bullish bounce on Monday but has been in decline ever since, hitting the bottom a couple of hours ago before recovering a little. Bitcoin has roughly halved in value since the same time in November, when it was trading closer to £5,082 ($6,400), leading to concerns for its future.

As bitcoin declined in value, other cryptos including ethereum and bitcoin cash followed suit, experiencing losses against the USD.

Bitcoin cash has in fact dropped 25 percent in value within a week, despite haemorrhaging nearly half of its value over the previous seven day period.

Most major cryptos have dived by 50 to 80 percent against bitcoin over the last two quarters, which fell by nearly 85 percent alone.

For BTC to fall by a similar amount as Ethereum, it would need to lose an additional 72 percent from its current price.

Analysts believe a fall to the new psychological level of…

Continue reading at EXPRESS DAILY

Ripple

Is Coinbase Going to Add Ripple to Its Exchange?

Nearly a week ago (December 7th), Coinbase announced that it would explore the possible addition of up to 31 new crypto assets. As one of the leading crypto exchanges, Coinbase plans to integrate additional digital assets into its exchange.

Ripple (XRP), is one of the digital currencies Coinbase is considering. Currently, this cryptocurrency stands as the second most valuable digital asset based on market valuation. XRP checks in at a little over $12 billion.

So with a valuation second only to Bitcoin, what is it that is keeping Coinbase from listing XRP? Especially when the exchange is willing to list smaller market cap currencies and other ERC20 tokens?

Coinbase Approach

Coinbase general manager and vice president Dan Romera announced that the exchange would like to list 90 percent of assets that are compliant. This comes with the caveat that these currencies meet certain expectations and qualities set forth by Coinbase.

omera emphasized that Coinbase wants its users to view it as a traditional stock market. Their aim is to provide as many options as possible. This will give users the opportunity to decide which digital currencies are right for them.

Coinbase has shown a shift in its strategy which is a result of customer feedback. Users want new cryptocurrencies on the exchange, so Coinbase is doing what it can to provide them. That doesn’t mean there won’t be bumps in the road along the way.

When Coinbase announced its new priority, XRP investors questioned the exchange’s commitment to providing the best digital currencies to its users. This concern has only gained momentum since Ripple…

Continue reading at TOSHI TIMES

Bitcoin Bull Mike Novogratz Issues a Warning to the Cryptocurrency Community

Bitcoin is down more than 80% from its all-time high, having plummetted since the beginning of this year, dragging most major cryptocurrencies with it, including the likes of ethereum and Ripple’s XRP.

This time last year bitcoin was fast approaching its all-time high of near $20,000 and investors and traders were euphoric over bitcoin’s epic 2017 bull run.

Now, bitcoin bulls have sobered up in the face of an overwhelming bear market that continues to maul the bitcoin price and former Goldman Sachs partner and founder of cryptocurrency merchant bank Galaxy Digital Holdings Mike Novogratz has a stark warning for the crypto faithful.

Many in the bitcoin and cryptocurrency community believe that adoption of digital tokens will revolutionize the financial services industry (and perhaps society itself), using blockchain, bitcoin’s underlying technology, to improve clunky and outdated systems.

But how exactly this bitcoin revolution is expected to happen is not entirely clear—nor is how long it might take.

“Revolutions don’t happen overnight,” Novogratz warned in an interview with Bloomberg. “While I believe in the underlying technology and believe in the crypto movement, when prices get stupid, I sell. A lot of my friends in crypto just couldn’t let go. They were saying, ‘This is going to change the world.'”

Earlier this year the bitcoin price appeared to have found a floor at a little over $6,000. Bitcoin hovered around there for months and many, including Novogratz, thought this was as low as it was going to go.

“I did think Bitcoin was going to hold at $6,200,” said Novogratz. “It stayed there for four months. It felt like the selling was finished. But then Bitcoin Cash decided to fork again.”

However, Novogratz remains confident that bitcoin will make a comeback.

“I do believe Bitcoin is going to be…

Continue reading at FORBES.com