All posts by flippener

Roses are red, violets are blue, Bitcoin hits $49K and a new all-time high too

The price of Bitcoin broke past $49,000 to achieve a new all-time high across major exchanges.

The price of Bitcoin (BTC) achieved a new record above $49,000 on Valentine’s Day on Feb. 14, rising to as high as $49,344 on Coinbase.

There are three main reasons Bitcoin surged to a new all-time high, namel high stablecoin inflows, clean break of the $38,000 resistance area, and a prolonged consolidation phase.

High stablecoin inflows were key

Throughout the past several days, despite Bitcoin’s consolidation below $38,000, on-chain analysts pinpointed the continuous increase in stablecoin inflows.

According to data from CryptoQuant, a data analytics platform, the Stablecoin Supply Ratio (SSR) rose significantly as it rallied from the mid-$30,000 region.

The SSR indicator shows the ratio of the market cap of Bitcoin relative to the aggregated market cap of stablecoins.

When the price of Bitcoin rises in tandem with the SSR ratio, then it means it is likely being driven by sidelined capital re-entering the market.

Bitcoin Electronic Currency (Image: CanonEOS/MaxPixel)
Bitcoin Electronic Currency (Image: CanonEOS/MaxPixel)

This trend is highly optimistic because it shows that the rally was not just driven by an over-leveraged futures market. In fact, it was genuine demand from the spot market that led the uptrend.

Atop the high stablecoin ratio, analysts also pinpointed the decline in selling pressure coming from miners.

The combination of the lower selling pressure from miners and the increasing stablecoin inflows into exchanges catalyzed the ongoing Bitcoin rally.

$38,000 resistance cleanly breaks

Bitcoin was consolidating under the $38,000 resistance area for a prolonged period. This presented a risk to the short-term bull cycle of Bitcoin.

When the price of Bitcoin hovers under a key resistance area for a long time, it increases the probability of BTC dropping to a lower support area to tap lower liquidity.

This is partially the reason why Bitcoin regularly dropped to around $44,000 before its eventual impulse rally above $38,000.

Long consolidation was beneficial for BTC price breakout

A relatively long consolidation period normally leads to two scenarios: a severe breakdown or a major breakout.

If Bitcoin rallies without strong fundamentals to support the rally, there is a bigger chance that the consolidation leads to a deep correction.

Read more: COINTELEGRAPH

Bitcoin could surge if ‘avalanche’ of companies invest and accept it as payment

BITCOIN could soon surge with one expert claiming there will soon be an “avalanche of thousands of companies” ready to invest in the cryptocurrency.

On Monday a report from RBC Capital Markets stated that Apple is well “positioned” to accept bitcoin as payment on Apple Pay. Originally reluctant to adopt the new digital monetary technology, the company banned cryptocurrency wallets from its App Store in 2014. However, they later reversed the decision and now allows them.

On Wednesday Mastercard Inc announced a plan to offer support for cryptocurrencies on its network in 2021.

This means Mastercard will sit alongside BlackRock Inc, Square and PayPal, who all have recently decided to support cryptocurrencies such as bitcoin.

Mastercard said: “Doing this work will create a lot more possibilities for shoppers and merchants, allowing them to transact in an entirely new form of payment.

Bitcoin Network (Image: MaxPixel)
Bitcoin Network (Image: MaxPixel)

“This change may open up merchants to new customers who are already flocking to digital assets”.

Speaking to Express bitcoin pioneer Max Keiser said: “As money printing by central banks goes parabolic all companies with cash on hand will start moving it into Bitcoin.

“In which order depends on how the board of directors are set up.

“Michael Saylor and Elon Musk control their boards and acted quickly.

“Apple’s board is more bureaucratic, so may take longer to approve.

“I’m hearing Larry Ellison at Oracle will announce a bitcoin position soon.

“Bitcoin payment rails will dominate.

“It might be Apple Pay on top, but it’ll be Bitcoin running underneath.”

Today bitcoin payment service BitPay announced its prepaid Mastercard is now compatible with Apple Pay for purchases in stores, in apps, and online.

Speaking to Express.co.uk Ben Gagnon, Director of Mining Operations at Bitfarms, said: “Fortune 500 companies like Apple and Tesla accepting Bitcoin for payment is a major accomplishment.

“Not because Apple or Tesla are likely to sell any more products as a result but because they will lead the way for many more businesses around the world to also accept Bitcoin as payment.”

Entrepreneur Michael Saylor speaking to Yahoo Finance predicted there would be a move from traditional treasury assets like cash and bonds into bitcoin, which he has labelled, “digital gold”.

Read more: Express

First Bitcoin ETF in Canada Approved, Is US Next?

A Bitcoin ETF has been approved in North America. Canadian securities regulators on Thursday approved the first publicly traded Bitcoin exchange-traded fund Purpose Bitcoin ETF.

While everyone was looking at the SEC to approve the first ETF in the US, Canada has made a move for it and proven its progressive view of Bitcoin and crypto at large. The Bitcoin ETF is set to provide exposure to long term, “high-risk” investors. The approval is set to cover these territories, British Columbia, Alberta, Saskatchewan, Yukon, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Labrador and Newfoundland, Northwest Territories, Manitoba, and Nunavut.

The Purpose Bitcoin ETF will debut in the Toronto Stock Exchange BTCC.U. The fund will buy Bitcoin that investors can buy in Canadian or US Dollars. It is reported that it will offer its units at market price plus management fees and expense fees.

Bulls Celebrate Bitcoin ETF Approval in Canada

In past interviews, the founder and CEO of Accelerate, the firm behind an ETF seeking to offer ABTC units on the Toronto Stock Exchange, has talked about the opportunity firms see in the new asset class.

“Bitcoin has been one of the best-performing asset classes on a 1-year, 3-year, 5-year, and 10-year basis, both absolute and risk-adjusted. Given Bitcoin’s historical track record and future potential, along with its portfolio diversification properties, we are looking forward to offering investors exposure to the asset class in an easy-to-use, low-cost ETF.”

Bitcoin (Image: Antana/CCBY-SA2)
Bitcoin (Image: Antana/CCBY-SA2)

Notably, this is the second ETF approval in the world this week. Earlier in the week, Bermuda approved a Hashdex and US stock exchange Nasdaq ETF that is set to expose investors to Ethereum, Bitcoin Cash, Stellar Lumens, Chainlink, Litecoin, and Bitcoin of course.

In Canada, there are still a number of filed ETFs. The decision to reject or approve remains with the regulators. But following the approval of the Purpose Bitcoin ETF, most look set to pass.

Following this news, bulls seem to have taken control of the market. Bitcoin has gained around 5% at the time of press. This has successfully pushed prices back above $47K. However, the ETF news is not the only positive development in the last few hours. Miami Mayor Francis Suarez has contributed after announcing that his Bitcoin resolution has been approved. The Mayor has the approval to pay employees in BTC, allow for city fees and taxes in BTC. It further looks into investing part of the city treasury in BTC.

Read more: Coinspeaker

Why Bitcoin and gold can work together for your portfolio

The largest digital currency, Bitcoin has been referred to as a robust store of value, digital gold, and a hedge against the US dollar. At a time when the USD looks weak and Bitcoin’s value has been increasing in the market, some onlookers believe that gold could act as a hedge for cryptos.

Bitcoin has currently seen its demand exceeded most digital assets as Elon Musk got on the Bitcoin bandwagon. Musk’s company Tesla recently announced its purchase of nearly $1.5 billion in Bitcoin, which triggered BTC to a new all-time high. Such drastic volatility in the market, although followed by gains, has many new investors worried but according to the CEO of Newcrest Mining Ltd. Sandeep Biswas,

“If you’re into cryptos, you want to consider having some gold.”

Gold and Bitcoin have been acting as a hedge against global trends, but now that things have become even more unpredictable and Bitcoin’s value has spiked, the digital asset has become unaffordable for many.

Interestingly, the Bitcoin and gold correlation which had remained strongest for some time now has been falling. The reason for this fall could be associated with the rising volatility in the market.

Bitcoin split (Image: MaxPixel)
Bitcoin split (Image: MaxPixel)

The above chart demonstrates the high correlation witnessed towards the end of 2020, but as Bitcoin’s price rallied higher towards the beginning of 2021, the correlation started to drop. It fell from 0.1329 and dropped under zero recently to -0.0089.

This fall in correlation makes gold an ideal alternative to its so-called digital version – Bitcoin. Biswas shared a similar sentiment as he stated that bullion “may act as a bit of a hedge” against crypto volatility.

There are no doubts about the coexistence of Bitcoin and gold. Even though their correlation has taken a hit we may see the two assets’ correlation rise with time. However, does this mean the volatility may also be shared by the two assets?

The analysts at JPMorgan Chase & Co. believed that “a convergence in volatilities between Bitcoin and gold is unlikely to happen quickly” despite the similar reasons shared by the users to invest in the two assets. For Bitcoin to compete with Gold, its market capitalization has to multiply at least four times but till then, the chances for volatility to jump from the Bitcoin market to gold will be a play only visible in the long-term.

Read more: AMB CRYPTO

Bitcoin At $50K Could Be A Distraction, On-Chain Data Points To $110K

Since Bitcoin topped $40K, investors have been obsessed with the $50K price target. Not only is this a major psychological position but a new ATH as well.

With prices currently hanging just below, $50K looks inevitable. Some will look to cash out here and we could very well see a major pullback once this target is hit. But on-chain data suggests that investors could miss out on a larger move if they treat $50K as Bitcoin’s top. In fact, this data suggests that $50K will be half the levels it could achieve in the current bull cycle.

As of publication, Bitcoin is enjoying moderate gains of a little over 5%. These gains take Bitcoin above $47K and come following several positive developments both in the last few hours and throughout the week. One key development, regulatory, is the confirmation that Miami Mayor, Francis Suarez has gotten his resolution to adopt Bitcoin in a number of strategic ways. These include allowing employees to receive payment in BTC, collect city fees and taxes in BTC, and investing the city treasury in BTC.

Bitcoin mining (Image: Pixabay)
Bitcoin mining (Image: Pixabay)

With Wallstreet already warming up to the idea, regulators getting on board will set a clear path for Bitcoin to achieve mainstream adoption in the next few years.

Target: $110K BTC In A Month

For most, by then it could be too late as prices could easily be over $100K. Co-founder and CTO of Glassnode, Rafael Schultze-Kraft, has shared a chart that shows Bitcoin pumping another 135% in the current bull cycle. The on-chain analyst follows the market cap to Thermo cap ratio and their roles in past price trends. He notes that the last time the current ratios were at current levels, Bitcoin went on to surge another $135%. If successful, this will push Bitcoin to around $110K which could be as soon as in a month.

In recent weeks, Bitcoin price seems to be moving to positive news. The hype and speculation have been enough to push prices to nearly $50K. Once the news slows, the charts will be back on trend, but by then some investors will have been distracted by $50K top losing out on a chance to double this.

Read more: ZyCrypto

American Political Leaders Playing High-stakes Bitcoin Pledge War

Politicians appear set to use bitcoin (BTC) and altcoins as tools to score points with crypto-keen voters and citizens in some of the USA’s biggest cities – as would-be New York mayor Andrew Yang and current Miami mayor Francis Suarez appear keen to outdo each other with far-reaching new promises and manifesto pledges that can also help attract new investments into these cities.

Suarez, per Bloomberg, has proposed investing a “limited amount of government funds” in bitcoin, and said that he “is committed to promoting the emergence of bitcoin as it continues to gain mainstream acceptance.”

And the Miami political chief might not stop there: He also proposes paying municipal workers in BTC and allowing citizens to use the token to pay their tax bills.

On Twitter, he confirmed that he was “exploring paying employees in bitcoin” and “investing city treasury in bitcoin.”

Suarez wanted city commissioners to vote to begin using BTC without hesitation. However, per a Miami Herald report, after a long discussion where commissioners raised several questions about moving into the world of cryptocurrency, they agreed by a 4-1 vote to require analysis before the city hires a company to process transactions.

Meanwhile, Yang, a former candidate for the Democratic Party’s presidential nomination, appears keen to trump Suarez with some bold promises of his own.

On Twitter, Yang wrote that should he win his bid to lead “the world’s financial capital” he “would invest in making the city a hub for BTC and other cryptocurrencies.”

Democratic and Republican primaries will be held in June this year, and New Yorkers will head to the polls on November 2. Yang is the overwhelming favorite to win with almost all British bookmakers, per data from Oddschecker.

Meanwhile, responding to Yang’s pledge, Wyoming’s so-called bitcoin senator, Cynthia Lummis, who is now also serving on the US Senate Banking Committee, quipped that her connections would happily assist Yang if he decided to do away with the state’s much-maligned crypto service providers operating permit system, the BitLicense. She wrote on Twitter,

“Wish ya the best of luck keepin’ up with Wyoming. Reach out when you need to unravel the BitLicense. I know some folks who would be happy to help.”

Wyoming is already known for its pro-crypto and blockchain policy.

Read more: cryptonews

Does Tesla buying over £1.1bn of Bitcoin signal big business is getting on board with crypto or is it a one-off?

  • Bitcoin’s value has now soared by 364 per cent over the last year to $45,791  
  • Apple, Google and Twitter have been touted as potential future investors 
  • A major issue with cryptocurrency is its vulnerability to wild price swings

Bitcoin’s value hit another record this week after Elon Musk’s electric car company Tesla revealed its $1.5billion (£1.1billion) investment in the cryptocurrency and said customers would soon be able to buy its vehicles with it.

The virtual currency’s value has now soared by 372 per cent in the last year to over $45,000, and remains way out in front of other digital currencies.

But what does Tesla’s purchase mean for Bitcoin and the wider cryptocurrency market? Is this investment a sign of how the business world is about to change?

Why has Tesla put its money into virtual currency?

In a filing with US authorities, Tesla said it had changed its investment policy to ‘provide us with more flexibility to further diversify and maximize returns on our cash that is not required to maintain adequate operating liquidity.’

Buying Bitcoin and promising to accept it in payment form soon is part of that strategy, as is a possible investment in other reserved assets like gold bullion.

Tesla thinks its Bitcoin holdings are ‘highly liquid,’ though it admitted that digital currency prices can become very volatile, and could hurt them should they need to be liquidated.

Simon Peters, a cryptocurrency analyst at eToro, says he thinks Tesla’s action ‘cements a long-term interest in Bitcoin’s potential,’ partly through its use as a bulwark against traditional currency devaluation.

Bitcoin Cryptocurrency (Image: MaxPixel)
Bitcoin Cryptocurrency (Image: MaxPixel)

Will other big corporate names follow Tesla in?

Digital currencies are becoming increasingly popular with businesses, both as a means of transaction and investment. 

Twitter founder Jack Dorsey has a lot of Bitcoin on the balance sheet of his mobile payment company Square, while Silvergate Bank revealed in its latest earnings report that it had about $5billion of digital currency, most of it in Bitcoin. 

Peters says: ‘Twitter has revealed it has laid the groundwork for the integration of Bitcoin into its business, strengthening the long-term prospects for the world’s largest cryptoasset.’

‘Amid all the doubts around its use in the real world, the simple fact is people want alternatives to the existing financial system. They want democratisation of money and Bitcoin and other cryptoassets represent a chance to achieve that.’

‘We would expect many more companies to follow suit by both integrating Bitcoin into payrolls, or by investing in it as part of a diversification of their balance sheets.’

Tesla’s announcement sent shares in other virtual currency investors higher, such as software giant MicroStrategy, which bought $250million of Bitcoin in August and now has over 71,000 of them on hand.

Many analysts, including Eric Turner of cryptocurrency research firm Messari, also believe Tesla’s investment will encourage more companies to follow suit.

Apple and Google are rumoured to want to get involved, while Paypal is already in the process of rolling out full Bitcoin integration for its millions of users.

Read more: This is Money

Bitcoin investors: From buying a Bentley to losing it all

Bitcoin has soared to trade at an eye-watering $48,000 (£34,820), following the news that Tesla has bought $1.5bn of the crypto-currency.

Enthusiasts will tell you it’s the future of money – but investing in the notoriously volatile virtual currency can be a rollercoaster, and it’s not without risk. The hunt for new coins, using powerful computers, is also causing a surge in energy demand – which is not so good for the environment.

Here are some of your Bitcoin adventures.

‘It paid for a holiday in Iceland’

James Saye, tech consultant

I first invested in Bitcoin in 2017 – I was nervous about putting too much in, so I went for around £500.

I cashed it in for £2,500 during one of its peaks, and had a great holiday in Iceland – the cash came in handy, Iceland is lovely but expensive.

I bought in again in 2018 when the price was lower so I’m still in but I don’t regret cashing out when I did.

Bitcoin Electronic Money (Image: MaxPixel)
Bitcoin Electronic Money (Image: MaxPixel)

‘It’s part of my pension plan’

Heather Delaney, founder of Gallium Ventures

I’ve been the silent crypto-investor. I put in £5 at the very beginning and I’ve built it slowly and steadily over time. I see it as a long-term strategy, meaning the rapid highs and lows are not ones that cause me anxiety – although ask me as I near my retirement and we shall see what I think then!

Based on how much I have invested in Bitcoin over time versus what I see today, I have a 585.41% increase in my investment.

I’ve never cashed it out – but I have converted some to other currencies as the market has fluctuated.

I know loads of people who have done exciting things with their investments but for me it’s part of my pension plan. I know I’m not typical.

‘He didn’t get a single penny back’

David Stubley, founder of 7 Elements cyber-security firm

We had a client whose Bitcoin wallet was fraudulently accessed and all the money was transferred out of it. He had intended to use it as a deposit on a house.

The man had been spooked by reports of fluctuations in the currency and decided to check his wallet. But he clicked on a fraudulent link, which led him to a phishing site, a complete clone of the real thing.

He had 84 bitcoins, and the fraudsters transferred 83 of them. At the time, in 2017, they were worth $475,000.

We tracked the payment on the blockchain [a kind of shared digital public ledger] – we could see it rolling across various wallets and finally it reached a wallet containing $15m of currency.

While the final identity of the fraudsters could not be identified, we were able to have the wallets frozen, so at least denying access to the stolen funds.

Our client was irate but philosophical. Today, that stolen Bitcoin would be worth £2.8m.

Once it’s gone, it really has gone.

Read more: BBC

Bitcoin investments may pose a real threat to the dollar

  • The conversion of cash to Bitcoin is a threat to traditional currencies.
  • The U.S. may impose a ban on cryptocurrencies if a threat is seen. 

Recently, the rate of Bitcoin investments in the U.S. has become increasingly worrying for its administration, with reports suggesting that a decision to ban the use of cryptocurrencies may arise. A famous analyst in the U.S. said that the government might have no option other than to regulate the digital currency once seen as a threat to the nation’s fiat currency, the dollar.

Bitcoin investments dominating markets

After Elon Musk’s Dogecoin tweets, Tesla is the recent top name to show interest in cryptocurrency. Presently, Tesla’s Bitcoin purchase is topping the charts as per Bitcoin investments. Now, every crypto investor is looking to convert cash into BTC. However, the cash conversion may have a negative effect on the value of the dollar. 

Last year, an analyst from JP Morgan spoke about Bitcoin investments. He claimed Grayscale’s GBTC investment dominated Gold ETF distribution in two years, thereby predicting that Bitcoin’s value will dominate the digital market and Gold will only come close. 

Bitcoin investments a real source of insurance for organizations

The recent investments in BTC by top companies like MicroStrategy and Tesla are a good source of insurance. However, these investments are threatening to destroy the value of the dollar. In contrast to the value of USD, Bitcoin is looking to hit $50000. If the trend of converting BTC to cash continues, the value of the dollar may yet decrease. 

Presently, the value of BTC is rising at a high rate, and it is expected that the quality of Bitcoin investments will increase as well. Tesla’s BTC acquisition is just a start as the world should expect more companies to follow suit. With more billionaires looking to add Bitcoin to their portfolios, the fiat system may be at the brink of extinction. One question that persists will be when or if cryptocurrencies may eventually end the reign of fiat currencies. 

Read more: Cryptopolitan

Bitcoin price to hit $100,000 Novogratz predicts

  • Mike Novogratz makes new Bitcoin price prediction.
  • Novogratz’s previous Bitcoin price prediction.

Popular Hedge investor and founder of crypto firm Galaxy Digital Michael Novogratz has said that Bitcoin price would hit $100,000 this year. He predicts that every company in the U.S would invest in Bitcoin this year.

The investor who said this in a Bloomberg interview reacted to Tesla’s recent Bitcoin investment. He said Tesla CEO, Elon Musk, is a genius for listening to people and investing in Bitcoin. “You’re going to see every company in America do the same thing. It doesn’t have to be a lot. It’s the messaging that matters, you’re seeing the herd here, and it’s coming, he said.

Why firms would invest in Bitcoin

The investor said that U.S firms would invest in Bitcoin as a Hedge investment and because of a falling dollar. He noted that a rising generation includes cryptocurrencies, Tesla, Solar stocks, and ESG investing. Novogratz said that young people are buying into the future as they see crypto as their currency.

He revealed that his firm’s coins are now worth over $760 million after they invested $134 million to buy 71,079 coins. He also said the richest man in the world has now invested in cryptocurrency, which he predicts has seen CEOs’ and CFOs’ thinking about investing in the crypto asset.

Bitcoin split (Image: MaxPixel)
Bitcoin split (Image: MaxPixel)

Michael Novogratz previous Bitcoin price prediction

Last year, the hedge investor predicted that the price of Bitcoin was going to hit $65,000 as he advised Maisie Williams to invest in the crypto asset. While responding to Maisie’s poll on Twitter on if she should buy Bitcoin, Novogratz said he expected the price to hit $20,000 before getting to $65,000 because of a “network effect” in which there are a ton of new buyers and low supply.

“So YES, buy it,” he said.

Back then, Bitcoin was priced around $18,480. Bitcoin began to surge in October when PayPal announced it would allow its users to buy, sell, and hold the cryptocurrency on its network. The price gained 70 percent in August alone last year. Novogratz has long advocated Bitcoin and said he expected its price to keep increasing as more people warm up to the idea of adding it to their portfolio.

Read more: Cryptopolitan