Bitcoin Volatility Decreasing as Price Movement Begins to Mirror Gold, Analyst Says

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The price of Bitcoin rose 100.8% in the first quarter and has increased 447.2% since October 2020, but reduced volatility may be the key to future price rises, analysts believe.

U.S. stocks gained 6.4% in the first quarter of 2020, while bond yields rose 3.6% and gold fell 10.3%.

"In the context of Bitcoin's historical returns, which have been quite remarkable, this period stands out as notable," Greg Cipolaro, global head of research at New York Digital Investment Group, said in a research report.

However, reduced volatility—not manic price swings ratcheting upward—could boost Bitcoin's long-term valuation as major institutions move into the cryptocurrency to diversify their holdings.

Continue reading at newsweek.com

Hedge Fund Manager Ray Dalio Thinks Bitcoin Could Be Outlawed

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Billionaire investor and the world’s biggest hedge fund founder Ray Dalio said that the history of money has left hints that bitcoin could face being outlawed by the U.S. government, just as gold was in 1934.

“I think that it would be very likely that you will have it, under a certain set of circumstances outlawed, the way gold was outlawed,” he said on the podcast Influencers with Andy Serwer on Friday (March 26). Serwer is editor in chief for Yahoo! Finance.

The Bridgewater Associates founder and co-chief investment officer pointed to the 1934 Gold Reserve Act, which prohibited people from holding gold and mandated the transfer to the U.S. Treasury.

“Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing because things can get out of control. So I think it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed,” Dalio said on the program.

Continue reading at pymnts.com

Why Bitcoin Is a Better Risk Bet Than a Stack of Penny Stocks

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Bitcoin is getting boring at a time when annualized 30-day volatility as of Thursday’s close has seen a sharp downward dip, in a March with its own type of (weather) volatility.

To emphasize the point, have a look at the chart above, which shows the volatility of bitcoin daily returns for the past month. To be fair, I’m employing a little chart crime here, starting the y axis at 40% in order to accentuate the drop between March 24-25, as all but the last days of February have disappeared from the 30-day look-back on the CoinDesk Bitcoin Price Index.

The boredom engendered by a tame month sparked a mild disagreement with “First Mover” show host Lawrence Lewitinn about penny stocks versus bitcoin. We were discussing the benefits of using indexes weighted either by price or by market cap. Price-weighted indexes can be more volatile because smaller-cap components can have a greater impact. I said a crypto index doesn’t need more volatility because crypto assets already have the volatility of penny stocks.

Continue reading at yahoo.com

Amundi warns bitcoin in for ‘brutal’ price correction as regulation hits sector

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Bitcoin and other cryptocurrencies could face a “brutal” price correction when regulators eventually weigh in on the sector, Europe’s largest asset manager Amundi has said.

The firm’s deputy chief investment officer Vincent Mortier said cryptocurrencies cannot be viewed as money or an asset worth investing in, in comments published as part of an upcoming report on the sector, seen by Financial News.

It is the first time Amundi – with €1.7tn of assets under management – has taken a public stance on cryptocurrencies.

“To date, [crypto] is neither a proven store of value, nor a recognised unit of account and even less a universal means of payment,” Mortier said. “Cryptocurrencies have no real economic underlying asset. As a result, there is no valuation model.”

Speaking to FN in a virtual interview, Mortier said the price of bitcoin above $50,000 was difficult to justify.

The cryptocurrency reached an all-time high of above $61,000 earlier this month, and was trading around $56,800 as of 12:20 GMT on 24 March.

Continue reading at fnlondon.com

Deutsche Bank Says 52% of Its Investors Expect Bitcoin Below $60K in 12 Months

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Deutsche Bank’s investor clients mostly see limited upside in bitcoin (BTC) this year and expect a decline towards $20,000-$40,000 in 12 months. Those are the highlights of a monthly market survey conducted by the German lender March 18-22 of 520 market professionals around the world.

Bitcoin has been trading in a sideways range over the past week after failing to sustain an all-time-high around $61,000 reached earlier in the month.

  • The 12-month BTC price forecast is more evenly distributed versus the three-month forecast, though a majority (52%) of respondents see prices under $60,000.
  • The most common predicted range for bitcoin prices in three months was between $60,000 and $80,000, expected by some 36% of respondents.
  • 69% of respondents think bitcoin is more likely to fall by half in 12 months, compared to 65% in February. BTC rallied by roughly 80% from February to March.
  • Only 23% of respondents said they had ever bought bitcoin for their personal investments. Just over 40% of respondents under 35 have bought bitcoin compared to just 13% of those over 55.

Continue reading at finance.yahoo.com

Bitcoin Traders Brace for Record $6B in Options to Expire Friday

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They call it “max pain” in the bitcoin options market: How to make one’s trading counterparty suffer the most. 

Although the largest cryptocurrency was changing hands Wednesday around $56,500, traders were handicapping the odds of a plunge to about $44,000 by Friday, when a record $6 billion of options contracts is set to expire. 

A drop to that price level would inflict “max pain” on buyers of options contracts, and it might be the most profitable price point for options sellers. It’s a remote risk, but not one to be discounted.

The max pain theory states that the market will gravitate toward the pain point while heading into the expiry. That’s because sellers – typically institutions or sophisticated traders with ample capital supply – often try to push the price toward the max pain point by buying or selling the asset on spot or futures markets. 

The bullish spin is that if bitcoin makes it through Friday without a major correction, a major overhang will be lifted.

Continue reading at nasdaq.com

Bitcoin Near $59K as Worries on Bond Yields Increase

Bitcoin’s price struggled to push higher after briefly touching $59,000 when markets opened in the U.S. on Friday.

Investors continued to monitor the potential fallout from U.S. Treasury bond yields, which some analysts warn could lead to a correction in risky assets from bitcoin to stocks.

The 10-year Treasury note yield went as high as 1.74% on Friday, the highest since January 2020, after the Federal Reserve signaled Wednesday it would keep loose monetary policy for the foreseeable future.

“If we continue to see the U.S. bond market questioning the Fed forward guidance, it could lead to more downside pressure in risk assets and start to weigh on bitcoin by extension,” Joel Kruger, cryptocurrency strategist at LMAX Digital, told CoinDesk. “We think this is a risk worth considering, especially with bitcoin already having moved so far and fast in 2021 thus far.”

Continue reading at finance.yahoo.com

Treasury Yields, Interest Rates, $1.9T Stimulus–What Does It Mean for BTC?

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As changes in US monetary policy continue, more institutional investors appear to be stacking BTC.

Bitcoin (BTC) reached another new all-time high last Saturday, March 13th, with its passage over $61,680. However, BTC was unable to maintain levels over $60K for the rest of the week. It slid briefly below $54K on Tuesday and has since recovered to nearly $58K at press time.

A number of analysts attribute the short spike above $60K to the passage of the so-called ‘American Rescue Plan’ on March 10th. The bill included plans to distribute roughly $1.9 trillion in stimulus payments across the United States economy. Officials at the US Federal Reserve have expressed that they expect to keep interest rates close to zero until at least 2024. Both factors have caused concern that USD inflation is in the relatively near future.

According to Coindesk, concerns about inflation were ignited by a marked increase in the 10-year Treasury note yield. The figure surpassed 1.75% for the first time since January 2020, two months before the pandemic began. While higher yields on long-term U.S. Treasuries can signal an increase in investor confidence, they can also be a signal of concern over rising inflation.

Continue reading at financemagnates.com

Cardano losing steam amid profit taking

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Over the past week, the bears took a grip on the crypto as its value plunged by  13.16%.

he fifth most valuable crypto is currently witnessing some sell-offs amid high profit-taking and a rising U.S dollar.

At press time, Cardano’s price was $1.06  with a daily trading volume of $5.3 billion. Cardano is down 4.68% for the day. It was the biggest one-day percentage loss since February 23.

It’s now the 5th most valuable crypto asset with a market value of about $34 billion.  At its highest, the popular crypto designed to help African farmers ease their payment challenges had a valuation of $41.6 billion.

Continue reading at nairametrics.com

American Residential Warranty (ARW) Invests in Bitcoin (BTC)

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American Residential Warranty (ARW) has announced that it’s now adding bitcoin (BTC) to its balance sheet and will accept the world’s flagship crypto as a legitimate payment option for its services.

ARW Joins the Bitcoin Movement 

American Residential Warranty (ARW), a Florida-based home warranty plan company established in 2009, has revealed via a recent statement that it’s now looking to add bitcoin (BTC) to its balance sheet.

To make its bitcoin investment move as seamless as possible, ARW has joined forces with the Gemini crypto exchange. Gemini will help ARW to purchase the crypto and provide custodial services to the latter. 

ARW says its decision to start playing an active role in the cryptocurrency ecosystem stems from the fact that large firms such as MicroStrategy, Microsoft, Square and Tesla, among others have invested in and integrated bitcoin into their processes in recent times and those forward-thinking moves have been yielding great results.

Continue reading at btcmanager.com