Bitcoin Price In a Bullish Uptrend – Can We See $15k?

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Not only that we can see $15k for the Bitcoin price, but most likely $16k is in the cards too. How come? For one thing, Bitcoin price action remains bid. The market keeps forming higher highs and higher lows, a typical bullish formation.

Moreover, the cryptocurrency formed an inversed head and shoulders pattern. The dive in March represents the head for the pattern, then the market broke the neckline ($10k), retested it, and now is ready to go for the measured move.

A Surge in Cryptocurrency Deposits

The good news for Bitcoin continues to resurface. It started with MicroStrategy announcing an investment of over $100 million in Bitcoin. It continued with Square announcing $50 million. The PayPal news last week was responsible for a new leg higher in Bitcoin.

This week it is the Silvergate Bank. The California based bank just announced that it accepted deposits in cryptocurrency in excess of half a billion dollars. While not that high as in Q4 2017, it reflects a strong appetite for cryptocurrencies from the general public and something that keeps a bid tone behind the Bitcoin price.

Bitcoin Price Technical Analysis

A close look at the chart below reveals that the measured move (i.e., the blue line) exceeds $15k. In fact, it stretches all the way to $16k and a bit more. Therefore, any bullish trade should consider the $16k as the target.

After a head and shoulders formation, the price typically retests the neckline. While not a mandatory condition, it happens most of the time. Moreover, when it does, it is a sign that reinforces the pattern.

To make the most of this pattern, bulls may want to go long at the market and set a stop-loss order at the $10k level while targeting the $16k. While the risk-reward ratio is not that impressive, it allows traders to participate in the bullish price action.

source: investingcube.com

JPMorgan: Bitcoin has ‘considerable’ long-term advantage when competing with gold ‘More Intensely’

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The investment bank makes a bullish comment for bitcoin as an "alternative currency" that not only serves as a storehouse of wealth but also as a means of payment.

The tide is changing.

This week PayPal announced support for cryptocurrencies, and now JP Morgan is changing the tune, as it says, Bitcoin is competing with gold as an "alternative" currency.

The physical gold market, favored by older generations, is worth $ 2.6 billion, including assets held within gold ETFs.

Bitcoin, on the other hand, has a market cap of $ 240 billion and is mostly favored by millennial investors. In 2020, to date, Bitcoin has increased by more than 80% compared to almost 25% of gold.

To recover in terms of market value, the leading digital currency would have to rise more than 10x above current levels. JPMorgan said in a note on Friday,

"Even a modest agglomeration of gold as an 'alternative' currency in the long run would mean doubling or tripling the price of bitcoin"

Over time, the investment bank said that crypto could be owned for reasons other than just being a wealth store like gold is.

"Cryptocurrencies derive from value not only because they serve as stores of wealth, but also because of their usefulness as a means of payment. The more economic agents accept cryptocurrencies as a means of payment in the future, the greater their usefulness and value"

PayPal also mentioned that the payment company's endorsement is "another big step towards corporate support for bitcoin". This, they said, would further reinforce the use of BTC millennials as an alternative currency.

Greater interest in institutional investors

Overall, the long-term potential for bitcoin is considerable, as it competes more "intensely" with gold, "given that millennials would over time become a more important component of the investor universe," says JPMorgan.

Millennials and corporate support for digital currency have also sparked greater interest from institutional investors, the report says.

This is evidenced by the peak of activity in both bitcoin futures and options in CME. Prior to Paypal's announcement this week, open interest on CME's BITCOIN futures measured a record of 10.5K contracts per day in the third quarter, an increase of 32% in terms of the second quarter and an increase of 127% compared to 3rd quarter of 2019.

In addition, the institutional flow registered strong growth, with 692 new accounts added, and the number of large holders of OI also registered an average of 79 in the 3rd quarter, an increase of 64% in relation to the 3rd quarter of 2019.

"Holy Cow. Most of the bullish bitcoin comments I read from JP Morgan," noted Dan Tapiero, co-founder of 10T Holdings. "A piece of widespread investigation reaches all customers of the bank. Paypal has announced" coverage "for other traditional players to get involved," he added.

source: bitcoinexchangeguide.com

As Companies Build Bitcoin Bonds, We All Win

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The last three months in Bitcoin have been marked by large corporate entities that have transitioned significant parts of their treasury holdings to bitcoins. In August, software intelligence company MicroStrategy announced that it has bought 0.1 percent of the total supply of BTC (its CEO Michael Saylor has already reached the ceiling and become something of a celebrity in space).

The large payments company Square, which for some time has offered BTC exposure to users of its mobile payments platform, allocated $50 million of its assets to bitcoin in early October. And just yesterday, the British fintech company Mode allocated 10% of its cash reserves to buy BTC as a treasury asset.

To compile this trend into a single, easy-to-digest database, Rodolfo Novak of Coinkite, also known as NVK, has launched bitcointreasuries.org. It lists the companies that have made the transition to keep bitcoin as a treasury asset, along with its market limits, the base price of their investment relative to today's value, the amount of BTC they hold and, critically, the percentage of the total supply of BTC that each bought. The allocations listed a total 3.74% of all bitcoin that will exist.

"I always assumed there was a place where you could see, not a complete list, but a list of large bitcoin holders who are not private entities," Novak told Bitcoin Magazine. "Especially with publicly traded companies because they have all their public books anyway and it's all audited. But I couldn't find anything and I love buying domains, so I started bitcointreasures.org [ ] in the hope of creating more FOMO for other companies"

Why now?

The list consists mainly of blockchain-focused companies that have divested into BTC some time ago as part of their larger business missions. The Grayscale Trust, for example, holds the highest proportion of bitcoins on the list by far 2.17% of the total supply.

But many of the purchases or filings listed on the site occurred this year. Novak explained that while it may seem that many companies are jumping into Plan B at once, it is likely that even the most recent purchases have been planned for a long time, demonstrating HODLer's understanding of the asset.

"Corporate governance, especially for publicly traded companies, moves at a slug pace," he said. "So there must be some mechanisms in place - a kind of model of how to do this. And it took years to get done and, you know, bitcoin goes up, bitcoin goes down. And if you haven't been in this space for a decade, it's hard for you to understand that after bitcoin decreases, it increases again. The number goes up"

But the reasons for switching to a heavy treasure trove of bitcoins should be clear, especially in recent months.

"You have this value reserve, everything meets the pleasure of value booking," Novak said. "And, you know, you hold it because you still want to be above water 30 years from now…. It's like, 'Hey, I got money in the bank, it's going to suck, I need to find a solution.' And, you know, gold pet stones are not a solution"

What does this mean for Bitcoin?

As there is a finite supply of bitcoin (there will only be just a little less than 21 million BTC thrown into circulation), when any entity grabs a significant amount, it affects everyone who wishes to get their hands on some as well. And, as an important value proposition for bitcoin is this scarcity, these corporate purchases have implications for the price of bitcoin relative to fiat as well.

As a Bitcoiner who is ahead of corporate interests, Novak is optimistic about the trend.

"Everything is good for Bitcoin, right?" he asked. "The scarcity of bitcoins comes from the people who buy, right, and you have a stock limit for that. So the more these giants buy, the more the price goes up for everyone"

He also pointed out that the more different types of entities start retaining bitcoin, the more the network as a whole will benefit.

"You want your enemies to have bitcoin, you want your competitors to have bitcoin," he said. "Because the more types of people with different sets of preferences, different sets of incentives have, the more secure the network will be... If Kim Jong-un has bitcoin and the US has bitcoin and China has bitcoin, it's in everyone's interest not to make any changes to Bitcoin, right? Because if one wants a change that is beneficial to them, others will want that change as well. So it's a nice set of incentives"

Some retail investors may see this trend as a warning to stack satellites while they are still available. But Novak points out that while the list of bitcointreasuries.org is growing, there is still a significant opportunity to get ahead of most corporations.

"The little boy still has a chance to win a Berkshire Hathaway. You can even DCA for $10 a week or anything, and you can buy before them. So I don't think it's an opportunity that people should waste. It's a crime not to have exposure to bitcoin right now"

Where is this trend going?

When asked where the trend is going in the corporate allocation of BTC, Novak said he thinks bitcointreasuries.org will no longer exist in 10 years because "every publicly traded company that has treasury management in assets that are not just the dollar, they will have some exposure to bitcoin."

This seemed to be a matter of inevitable "hyperbitcoinization", but in the short term, it may help that some groups already on this list have published their disinvestment methodology in BTC. For example, Square has released a white paper detailing its investment. Novak could see this being used by other groups that are interested in following him toward Plan B.

"They have created a model that other publicly traded companies in the U.S. can simply follow and comply with regulations to do so. Now, just go to a [corporate] board and show that role. You go to your legal, show me that paper. Conformity, show me that paper, that's it. Just make the transfer and buy bitcoin"

A high run in the near future will likely also motivate more companies to follow Square's example. But the ultimate motivator may just be bitcoin's final game. Companies that have already arrived in bitcointreasury.org have adopted an amazing tool to choose to leave the legacy financial system if and when that is necessary. Others will want to join them.

"Now they have an instrument they can just send elsewhere. Let's say America decides to go to shit, right? They could just send this BTC, they don't need permission"

source: nasdaq.com

Ripple is a “Proud American Company” But Can Move to Japan or Singapore

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Cryptocurrency regulations should not be a guessing game. For this reason, Ripple, the San Francisco-based payment company behind RippleNet, will consider Japan, Singapore, the United Arab Emirates, Switzerland and the United Kingdom as potential destinations if they move from the United States, its CEO, Brad Garlinghouse Bloomberg said in an interview on October 21.

Ripple considers five countries if the United States is slow

Ripple is a for-profit company. Its executives, especially Brad Garlinghouse, have been urging U.S. regulators to formulate and implement appropriate encryption rules to help spur emerging sector growth in the world's leading economy.

Brad said that considering the weight of the regulation, there should be more clarity. In fact, regulations should not be left for interpretation. Instead of conjecture, U.S. lawmakers should clarify whether cryptocurrencies are commodities, properties, currencies or bonds.

While blockchain companies in the United States remain in limbo, Japan, Singapore and other countries that the payment company is considering have taken steps to develop appropriate laws that guide projects, clearly stating their expectations and what they must do to operate without problems within the limits of the law.

"The common denominator among all of them is that their governments have created clarity about how they would regulate different digital assets, different cryptocurrencies. Regulation should not be a guessing game. Ripple is definitely a proud American company and we would like to stay in the U.S. if that were possible, but we also need regulatory clarity so we can invest and expand the business."

Japan, for example, Brad said, has created an environment that allows the development of a very healthy market. It is in this jurisdiction that Ripple has a fruitful relationship with SBI Holdings, one of Japan's largest financial giants.

Through their partnership with the Yoshitaka Kitao-led company, they established SBI Ripple Asia, an alliance that helps drive the Ripple brand in Southeast Asia.

New Regulatory Framework in the United States

As BTCManager reported, the Conference of State Bank Supervisors - representing regulators from all U.S. states and territories in mid-September - launched a new regulatory framework for Fintech companies, including cryptocurrency companies.

They agreed on a single set of supervisory rules to reduce compliance costs, making it possible for money transmission companies, including cryptocurrency exchanges, to expand easily in different U.S. states.

source: btcmanager.com

Bitcoin Balance (BTC) on Exchanges Falls to Two-Year Lows

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  • The balance of Bitcoins on some of the major exchanges is falling rapidly, according to recent data.
  • There are many reasons why this may be the case, including the newly discovered appreciation of BTC.
  • With only a few exchanges seeing these reductions, many believe they are losing customer confidence.

The supply of Bitcoin (BTC) held by major exchanges has fallen to levels that have not been seen in the past two years. The last time BTC's balance on major trading platforms was so low was in 2018, according to data collected on October 20.

People are realizing the value of Bitcoin

The crypto industry grew rapidly throughout 2020 and for a number of reasons. The existing crypto community has been buying with the intention of HODLing since BTC fell for the third time, expecting prices to skyrocket.

Then there was the COVID-19 pandemic, which caused the global economic collapse due to pure fear of what it can do to various sectors. In the end, the world began to realize something that the crypto industry has known for years – BTC is the only asset that offers a solid monetary policy.

At least that's what Nexo co-founder Antoni Trenchev recently noted. He said BTC is the best performing asset of the decade and that the world has begun to realize this.

He added that the community is resorting to self-care solutions, which include platforms such as Nexo itself. These platforms allow tax-saving loans against assets that users already own.

There is no need to sell to win, and all the popularity has generated more discussions about crypto than ever before.

BitMEX and Bitfinex may be losing users' trust

Celsius co-founder Alex Mashinsky expects this state of affairs to continue unless the exchanges change the terms of the deals they are offering in order to lure users back to their platforms.

Not all exchanges are affected equally, of course. Platforms like Binance and Coinbase, which offer good conditions to their users, have kept their funds. Meanwhile, companies like Bitfinex and BitMEX have seen severe reductions in their assets.

The rise of the DeFi sector has undoubtedly contributed as well as the growing interest of institutional investors. They used companies such as grayscale and Microstrategy to accumulate large amounts of BTC throughout the year. Anyway, some exchanges seem to be losing the trust of their users, though not all, as mentioned.

source: digitalmarketnews.com

CFTC Issues Digital Currency Guidance to Futures Commission Traders

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The Commodity Futures Trading Commission (CFTC) has issued a warning to futures commission (FCM) traders, providing clarity on how to take care of users' digital currencies in segregated accounts.

  • According to a press release on Wednesday from the CFTC's Swap And Intermediate Supervision Trading Division, the consultancy informs FCMs on how to maintain and report certain digital assets held by clients in connection with physically delivered futures contracts or swaps.
  • A segregated account means that the client's funds are strictly separate from the company's money.
  • The CFTC noted that keeping client assets as segregated funds can allow greater risks to arise for other clients under the same banner.
  • Financial watchdog consulting also provides guidance on the best practices FCMs should follow when designing and maintaining risk management programs when dealing with digital assets such as client funds.
  • The consultancy does not refer to the custody of digital assets of foreign FCMs of client assets in relation to futures or futures options trading.
  • CFTC Division Director Joshua B. Sterling said in a statement that the commission is "committed to promoting responsible fintech innovation" as it works to create a "holistic framework for digital asset derivatives."

source: nasdaq.com

Billion-dollar Companies are Adopting DeFi to Improve Existing Services

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A new study has shown that traditional financial firms are exploring the use of decentralized finance (DeFi) to improve their existing services and create new revenue streams.

The study, conducted by Crypto.com and BCG Platinion, was first identified by CryptoBriefing and surveyed more than 400 financial firms in various sectors, including banking, insurance and commerce. The research focused on the challenges and opportunities associated with the adoption of DeFi.

He found that there is growing interest in space, with 86% of respondents revealing that they are already implementing or considering implementing cryptocurrency-based technologies to improve their services.

Kris Marszalek, co-founder and CEO of Crypto.com, was quoted as saying:

''Research shows that the adoption of DeFi is not limited only to the blockchain industry; traditional financial institutions of all sizes are seeing DeFi not as a competitive threat, but as a valuable tool for providing more decentralized and efficient financial services.''

Marszalek added that this is shown in "his warming attitudes toward DeFi and its integral role in future plans for the vast majority of them. It was also found that large billion-dollar companies were on board, some of the respondents revealing they had a balance sheet above £10 billion ($12.8 billion). Of these, 70% evaluated or implemented some form of DeFi in their operations.

Fund security and regulatory hurdles have been revealed as hindering the adoption of the decentralized financial space, with 70% of respondents saying concerns about fund security and fraudulent activities need to be resolved before space can grow, and 61% pointing to regulatory threats.

source: cryptoglobe.com

Bitcoin Crosses $12K as Pelosi and Mnuchin Close to Stimulus Deal

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Bitcoin rose with renewed optimism for the second coronavirus stimulus package, while the US dollar plummeted.

House Speaker Nanci Pelosi said a committed aid bill is on the way after confirming a fruitful 45-minute phone conversation with Treasury Secretary Steven Mnuchin. Simultaneously, Senator Mitch McConnell, the majority leader, warned his lot not to negotiate a pre-election agreement, stating that the U.S. cannot tolerate another major federal package.

In April, Congress approved a $2 trillion aid fund to help American families and businesses during the coronavirus blockade. The flood of new money into the economy through the Federal Reserve's unprecedented bond-buying program also fixed markets that had broken in March.

Bitcoin was among the fallen. The reference cryptocurrency plummeted more than 60% in just two trading days. However, his recovery gained momentum after the approval of the $2 trillion stimulus package. At one point in the third quarter, the BTC/USD exchange rate rose nearly 230 per cent from mid-March lows.

The stimulus, therefore, played a critical role in determining Bitcoin's next bias. But with the exhaustion of the existing package and a delay in the approval of the second before the U.S. presidential election, the cryptocurrency has entered into a medium-term conflict of prejudice.

Bitcoin Accumulation

On Wednesday, BTC/USD rose 2.79 per cent to $12,256. At its intraday high, the pair was trading at $12,322, their best level since August 2020.

source: bitcoinist.com

Anthony Pompliano, the co-founder of Morgan Creek Digital, said in a note to investors earlier this week that he expects Bitcoin to grow about 10 times its current spot rate.

"The Federal Reserve cut interest rates to 0%. They plan to keep us in a zero-rate environment in the near future. Several stimulus packages in 2020 now total more than $3 trillion in QE. We have another $2 trillion on the way… My base case for [Bitcoin] is approximately 10x to $100,000 and the bull's case is about $250,000 per Bitcoin"

At the same time, Pompliano warned that the cryptocurrency may suffer a wild fall correction as it aims for a valuation of $100,000 in 2021. But he remained confident that investors would continue to reallocate their portfolios to the nascent asset.

"I'm encouraging you to re-examine Bitcoin as a potential allocation of 1 to 10% in your portfolio over the next 15 months," he told investors.

Warning signs

The Bitcoin futures market has not shown as much enthusiasm for rising prices as the spot market. According to data collected by Glassnode, funding rates on major cryptocurrency exchanges, including Binance, Deribit and BitMEX, turned negative over the weekend. It was the same period when Bitcoin closed above $11,000.

The trend remained the same on Wednesday, as the cryptocurrency surpassed $12,000. This, at best, showed caution at the end of futures operators. This may lead to down corrections in the near future.

source: bitcoinist.com

Here’s The $8.5 Trillion Investor Group That Could Boost Bitcoin

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Bitcoin has seen massive capital flows from large investors and corporations throughout 2020, which may be what allowed its price to trade well above where the year began - despite the turbulence seen in the first few months.

There is a high possibility that BTC will continue to gain adoption among non-retail investors as well in 2021, with the trend of being a reserve asset gaining momentum as more companies, funds and large investors acquire it.

Retail investors are also rapidly using Bitcoin to protect against the turbulence and inflation seen around the world, which is elucidated by the growing number of new portfolios with sub-1 BTC balances.

There is a frequently forgotten investor class that could be the next source of fuel for Bitcoin: sovereign wealth funds.

One network analyst explained that there is currently $8.5 trillion being administered by nations, and virtually zero has been allocated to Bitcoin.

He says an ideal portfolio going forward will require this, which could mean that a big advantage is just around the corner.

Bitcoin continues to benefit from economic turmoil

At the time this article was written, Bitcoin was trading up to more than 2% at the current price of $11,800. This marks a remarkable increase from its recent lows of $11,200, set during a recent settlement.

The recovery from these write-offs, coupled with a drop above $11,800, significantly strengthened his short-term outlook.

Whether or not he can break above his next key resistance at $12,000 will likely have a serious influence on his short-term outlook, as a rejection here could trigger a long-range downtrend that degrades his current technical strength.

Network analyst: sovereign wealth funds are the next big buyer of BTC

Bitcoin is already being adopted by family offices, public and private companies, as well as by institutions. Still, there is an even larger group of investors who have not yet allocated in BTC.

A respected network analyst explained in a recent tweet that there are about $8.5 trillion in sovereign wealth funds belonging to nations. Currently, its BTC exposure is zero.

"We talked about $5T in cash in corporate treasuries of public companies. What has not been talked about are the $8.5T deposited in sovereign wealth funds, i.e. 'the wealth of nations'. Your exposure to Bitcoin is zero, your ideal portfolio will require it. "

If these investors allocate only a small fraction of their AUM to Bitcoin, this could be a source of serious capital entry into the reference cryptocurrency.

source: newsbtc.com

Tether May Become The Second-Largest Cryptocurrency Soon

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Will stable currencies eventually take over bitcoin? According to a new report, the controversial stable currency known as Tether is expected to become the second-largest cryptocurrency by market value as early as next year, and will only be smaller than bitcoin, but how long will it last?

Is Tether about to get much bigger?

The world of stable currencies has doubled in recent months, and it seems that ordinary traders and retailers are entering the craze for stable currencies. Even Atari, a video game company, has announced plans to enter the crypto space and reveal its own stable currency very soon. This currency can be used for in-game purchases and events.

Stable currencies are interesting because they are cryptocurrencies linked to fiat currencies such as the US dollar, the euro, the yen and the yuan. This is designed to help these stable currencies avoid volatility, which has become a kind of problem in the cryptographic world. Many assets, such as bitcoin and Ethereum, are vulnerable to price fluctuations that in the past have caused many traders to lose everything they have earned.

In 2018, for example, the price of bitcoin fell from about $20.000 per unit in December 2017 to about $3.500 when Thanksgiving arrived. That's a loss of almost $17.000. To say that volatility is a minor problem would be incorrect. Volatility has caused many people to become digital indigent overnight.

Tether is a very controversial coin for many reasons. On the one hand, many sources claim that it is not supported by the US dollar. In addition, it is widely believed - thanks to a report issued by John Griffin, a finance professor at the University of Texas - that Tether is responsible for the mega fall that occurred with bitcoin in late 2018. The currency was supposedly indexed to bitcoin in the sense that many individuals used it to buy BTC whenever the currency gave signs that it was falling. This occurred in 2017.

A year later, when Tether owners felt they had bought enough bitcoins and now had a bit of moolah to show off, they left the bitcoin space in a classic cash-take-the-money scenario. It took many months for the asset to start showing signs of recovery.

A controversial coin

Bloomberg senior strategist Mike McGlone explained about Tether:

"Tether represents what many of the so-called cryptocurrencies are not: a stable form of payment … Indicating demand for a digital version of gold (bitcoin) and a crypto-asset like a dollar, if current trends prevail, Tether's market capitalization could surpass Ethereum next year. Something significant must be needed to prevent tether's increasing adoption."

source: livebitcoinnews.com