Key factors hindering the Bitcoin bull run despite massive institutional buy

By Olivia Brooke – December 14, 2020

Market psychology implies that an increase in buying activities, in this case for Bitcoin, has the capacity to launch a price rally, but this is not forthcoming, and Bitcoin is still range-bound at $19,000, although Bitcoin is still teasing a breakout. The technical charts do not reflect the impact of institutional buy in the market and the bullish pressure is still building up ever so slowly.

As usual, analysts and investors alike, have been paying close attention to this market trend and one analyst has proposed that few significant factors are behind this unusual market stagnation. First noting the sluggish pace at which the market is moving, Bitcoin entrepreneur and investor Alistair Milne shared from his Twitter handle, what the possible factors in play may be.

Investors are closing the year with eyes peeled for 2021

Institutional investors may be in the game of acquisition and holding, but independent traders and investors could be taking another strategic route. Cashing out and watching to key into an entry point in the following year is nothing new in the Bitcoin market.

This closing ritual is practiced among traders who are counting their profit and losses, making slight changes to their positions, and strategizing for new and promising zones in the following year. The pros and cons are similar; escaping the end of year pump or dump and the profit and losses that may follow.

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A new year sometimes sees the market at new lows and “buy-the-dip” traders may enjoy this advantage if that happens. Neutral market strategies are also likely in play. The market is fundamentally moving sideways and despite the bullish market sentiments, Bitcoin remains a volatile asset, and market trends have the tendencies to make swift changes. On the condition that that is the case, neutral players could see losses at a minimal, while salvaging a fair share of gains, given that the market flips.

The Asian market is yet to catch up

Perhaps the Asian market is yet to make a grand entrance, this could be for many reasons, but lack of awareness of western market activities seems unlikely to be the case as the Asian market is usually very active, perhaps the late investment could be due to previous marginal trade made at a loss.

At this time, retail sellers are one of the weakest links in the market. Buying and selling for quick returns is the job of a retail seller, but in the long run, their customers are strengthening momentum and positioning for the perceived incoming market rally.

Clearly, the market is still in a sideways position, hence institutional buy not being enough to sway market dynamics. The new year will see strategic market activities and possibly usher in the gargantuan bull run.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Olivia Brooke and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Jim Cramer bought Bitcoin while 'off nicely from the top' in $17,000s

The CNBC host said his Bitcoin portfolio could get "bigger and bigger and bigger."

Image courtesy of CoinTelegraph

            DEC 13, 2020

Three months after seemingly changing course on crypto, the outspoken host of CNBC’s Mad Money is claiming he made a well-timed Bitcoin investment on Friday.

In an interview with TheStreet, Jim Cramer says he purchased Bitcoin (BTC) Friday morning when the price dipped under $18,000. The Mad Money host added he was treating the crypto asset as any other investment in a diverse portfolio.

“I will buy — like I usually do — as something comes down," said Cramer. "I'll get bigger and bigger and bigger. I just think that you want to diversify into all sorts of asset classes. I have gold. I’m going to diversify into some Bitcoin — not a big position for me — but it's certainly important to be diversified, and Bitcoin is an asset and I want to have a balance of assets."

Cramer said he believed the price of Bitcoin might “come down again” given its volatile history. However, he personally saw the $17,000s — the price when he claimed to purchase more BTC — as a "decent level":

"[Bitcoin] is off nicely from the top. I like to buy something that’s off nicely from the top."

The CNBC host was once an outspoken Bitcoin critic prior to the 2017 boom, saying that the crypto asset was going to “run out of steam. However, since being a guest on Bitcoin bull Anthony “Pomp” Pompliano’s podcast in September, Cramer has said he might invest 1% of his portfolio in Bitcoin.

The price of Bitcoin is $19,192 at the time of publication, having risen 2.6% in the last 24 hours.

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Original article posted on the CoinTelegraph.com site, by Turner Wright.

Article re-posted on Markethive by Jeffrey Sloe

Bitcoin Gains Popularity Among The Rich As Bull Market Rages On

By Ponvang Bulus – December 13, 2020

More wealthy mainstream investors are getting attracted to the cryptocurrency space. This is particularly true for the number one cryptocurrency, Bitcoin. At the moment, Bitcoin has gained 270% since March this year. This is a huge return on investment that has left many top mainstream investors wondering if it is wise to continue standing on the sidelines while Bitcoin grows.

Earlier this year, Wall Street billionaires such as Paul Tudor Jones endorsed Bitcoin and even invested part of their portfolio in it. Corporate organizations are also not left out, with Square, Stone Ridge, and others buying significant amounts of Bitcoin this year as well. Perhaps this is fuelling the growing conviction among top investors that Bitcoin is now a worthy asset to include in their portfolios.

One such is Christian Armbruester the Founder of Blu Family Office, an investment firm that represents wealthy clients in London. He admits that Bitcoin has earned a place in a diversified portfolio. He is also considering investing more in the industry. Referring to Bitcoin, he said, “We’re now looking for trading opportunities in a very exciting field.”

He is just one of those who have come to accept Bitcoin as an investment even after criticizing it for years. An asset manager with Bernstein Research, a company with $631 billion worth of assets under management recently changed his mind on Bitcoin which he said was impossible to invest in, in 2018. Inigo Fraser-Jenkins now encourages his clients to get some Bitcoin as part of their portfolio.

According to digital assets management platform Grayscale, there has been an unusual influx of funds from both corporate and individual clients. The company has received $2 billion in the last two months alone and has been buying both Bitcoin and Ethereum on a massive scale. This can only confirm that more money is flowing into Bitcoin, a situation that JP Morgan says will make gold suffer for years as Bitcoin continues to grow.

Even financial institutions that once considered crypto to be a rival have jumped in. payment giant PayPal also decided to let its customers use Bitcoin for transactions. Reports indicate that over 20% of the company’s customers have so far used the app to trade Bitcoin and this number is expected to increase.

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The 2017 bull run is the most significant so far for Bitcoin as it took the price to the all-time high price of roughly $20,000. Although Bitcoin got close to that point, it has pulled back slightly. Nevertheless, investors are still optimistic that the asset is just starting and has the potential to go much higher than it did in 2017.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Ponvang Bulus and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bullish divergence, TD9 'buy signal' align for a new Bitcoin relief rally

The Bitcoin 4-hour price chart is seeing a bullish divergence and a TD9 buy as hopes for a relief rally rise.

Image courtesy of CoinTelegraph

            DEC 12, 2020

The price of Bitcoin (BTC) has rebounded strongly from sub-$17,600 to $18,400 in the past 24 hours. Now, two major technical indicators are signaling the likelihood for a larger relief rally.

The 4-hour price chart of Bitcoin is showing a bullish divergence just as it prints a TD9 buy signal. Both indicators typically light up when an asset sees a strong sell-off and the selling pressure gets exhausted.

The Bitcoin sell-off might be losing steam

The 4-hour bullish divergence and TD9 buy signal are conceptually similar in that they emerge after a steep correction.

A bullish divergence is a technical pattern that revolves around the Relative Strength Index (RSI). The RSI is a momentum indicator that gauges whether an asset is overbought or oversold.

The RSI has a scale of 0 to 100; under 35 means an asset is oversold and over 75 means an asset is overbought. If the RSI drops below 35 and it begins to recover with an asset, a bullish divergence emerges.

The Bitcoin 4-hour price chart with RSI. Source: TradingView, Scott Melker (Click image for larger view)

Scott Melker, a cryptocurrency trader, said that the 4-hour price chart of Bitcoin showed a bullish divergence as the price recovered above $18,150. He said:

“We all know that we have a beautiful confirmed oversold bullish divergence with RSI. RSI is currently pushing against descending resistance. If it pushes through, price should follow up. No intention of closing my long for now.”

As Cointelegraph previously reported, Bitcoin has seen large selling pressure from whales and miners in the past week. Consequently, the BTC price dropped steeply over the past two days, causing it to be heavily oversold on lower time frames, e.g. the 4-hour chart.

A pseudonymous trader known as “CryptoISO” emphasized that the TD9 buy signal is indicative of an overextended sell-off.

TD9, short for Tom Demark 9, is an indicator that also measures whether an asset is overbought or oversold, similar to the RSI. A TD9 buy signal emerges when the past nine candles are all lower than the four candles prior.

For example, let’s say that the price of Bitcoin has been below $19,000 throughout the past 36 hours. If the 4-hour candle that closed 52 hours ago was above $19,000, it would light up a TD9 buy signal.

The combination of the 4-hour bullish divergence and the TD9 buy signal is indicative that Bitcoin has been heavily oversold in the past three days.

What’s next?

As Cointelegraph reported, whale clusters show $17,170 and $17,700 as major support levels. Hence, as long as Bitcoin remains stable above those two levels, the chances of a continued rally remain high.

The Bitcoin price versus USDT supply. Source: Glassnode (Click image for larger view)

Another bullish factor above the two whale cluster support levels is the growing supply of Tether (USDT), whose market capitalization now close to $20 billion.

Across major Bitcoin exchanges, like Binance as an example, investors often store sidelined capital in USDT rather than cash, as it allows them to swiftly reenter into positions. The continuous increase in USDT supply is a positive sign of rising confidence toward Bitcoin.

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Original article posted on the CoinTelegraph.com site, by Joseph Young.

Article re-posted on Markethive by Jeffrey Sloe

Is Bitcoin Still An Underpriced Asset?

By Mr Oak – December 12, 2020

When it comes to Bitcoin, there is always a plethora of ideas, opinions, and theories coming from different people and angles. Since its breakthrough in the world of finance, there has been nothing but conflicting ideas and reports on what it is, how it should be used as well as what it could become. Bitcoin as an asset was disputed for quite some time before it was classified under that category by the Internal Revenue Service.

Before its recent surge on November 30, where it reached a new high of $19,834, the digital coin had been going back and forth, hovering around the $10,000 mark. Its previous high was recorded on December 18, 2017, when it traded at $19,783.21. The digital coin now continues to dazzle the global financial scene and some experts believe that it is underpriced.

BTCUSD Chart By TradingView (Click image for larger view)

Bitcoin is first a currency that can be used to purchase properties, foods, items, and many more. Its digital ownership is backed with a digital transaction record that can be traced to the first-ever transaction. The transfer of its ownership is secured and free from any third party interference.

Now, imagine a gold bar or coin with every gold transaction in human history recorded on it guaranteed and confirmed to be 100% true and unchangeable. That gold bar or coin would be considered by many as the most important or most valued financial instrument ever and that’s something Bitcoin offers.

Bitcoin is also an investment. Bitcoin investment over the years has become an everyday thing that saw the rise of Bitcoin HODLing, a situation where investors buy and hold them in hope of selling them when the prices go up. MicroStrategy and Square, recently bought up to $600 million worth of Bitcoin, further fueling the Bitcoin HODLing practice and affirming its investment status.

Bitcoin also comes with a pre-programmed number of coins on its network (21 million), a feature that places it on top when the supply and demand factors of pricing an asset come into play. With no unlimited supply, its supply decreases over time, which reduces inflation rates, unlike fiat currencies.

The creation of new tokens is also pre-determined and eliminates any existing central figure or authority such as a central bank or government. Bitcoin undergoes a halving event every four years which sees the number of new coins created, slashed into half by its network.

Bitcoin’s volatility, a factor that has often been used in trying to discredit the digital coin also does provide gains for investments. Bitcoin’s price has seen numerous double-digit percentage moves in a matter of hours and sometimes even minutes unlike traditional banks that provide 0% interest rates on deposits and according to reports, even go into negative territory in some countries.

Bitcoin’s price rise due to its volatility Eclipses multiple considerable price dives, which made it the best performing investment asset throughout the past 10 years with an ROI (Return of Investment) of 8,900,000% according to reports.

In these times of economic uncertainties, Bitcoin holders and investors see the digital coin as a safe haven asset. With the absence of high inflation levels and its decreasing supply everyday which tends to make it more valuable, Bitcoin seems like a bargain to buy.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Mr Oak and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin Acquisition: Why MicroStrategy, MassMutual Could Turn Out To Be Grayscale’s Biggest Competition

By Olivia Brooke – December 12, 2020

Grayscale has been making rounds in the crypto-landscape with its continuous astounding Bitcoin purchases since it made its entrance into the market. Ever since then, the investment firm has been buying Bitcoin non-stop, and within that time period, managed to acquire fair investment returns. Grayscale has been very bullish on Bitcoin and reiterated countless times that it was in the game for the long term, hence its unending Bitcoin purchases, although many analysts are suspicious of the company’s real intention.

Some credit it to debt, hinting that Grayscale may be depending on BTC to cover up its debts, others implied that this could be a ploy to induce market manipulation, control the market dynamics and benefit from a bullish Bitcoin in the near term.

BTCUSD Chart By TradingView (Click image for larger view)

Neither of these speculations has been accurate, but racing against its prospective competitors may actually be the case.

Grayscale, MicroStrategy, and MassMutual will go head-to-head in the coming months

Dabbling into the digital assets industry amongst institutional investors is becoming more common these days, but MicroStrategy being one of the most committed and talked about entrants since this year may have taken away from the bigger picture, which is that more traditional finance and technology firms have their eyes fixed on Bitcoin and the recent arrival of Massachusetts Mutual in the ecosystem is proof of this.

However, much more than is the fact that MicroStrategy may have welcomed its biggest competitor, for some significant reasons. The $100 million Bitcoin investment for its general investment fund made by the insurance company may have been an eye-opener for MicroStrategy as well, which is now reportedly looking to buy $650 million worth of Bitcoin.

Although no official sources from both firms affirm that this is a competitive move, it is inevitable that the market competition, as is the case with every industry will play out in the crypto-market. This past week, we’ve reported on several different companies making bullish comments on Bitcoin and other altcoins. Independent investors have also noted this, and following analytic predictions, next year will open the doors for more of these investment companies taking a chance at Bitcoin.

Keep an eye on the change in market dynamics

Market movement is certainly bound to change. This year alone, the market has at different times experienced the heat of buying pressure from institutions, which has resulted in swift price fluctuations. Asides from influencing market sentiments, these investment firms have also influenced on-chain activities; miners selling their Bitcoins, etc. Regular traders may also be forced to sell or hold their cryptocurrencies depending on the institutional standpoint.

In all, 2021 will have the Bitcoin market in a different movement pattern altogether, bullish rallies may last even longer with this new wave of institutional interest and Bitcoin’s price could potentially hit levels that we’ve never seen before.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Olivia Brooke and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Sweden Explores Moving to a Digital Currency

(Dreamstime)

Friday, 11 December 2020 07:32 AM

Sweden’s government will start exploring the feasibility of having the country move to a digital currency, marking another step into the unknown for the world’s most cashless society.

Per Bolund, financial markets minister, said a review launched on Friday is expected to be completed by the end of November in 2022. Anna Kinberg Batra, a former chairwoman of the Riksbank’s finance committee, will lead the inquiry.

Sweden is among the first countries in the world to consider introducing a digital currency. Its central bank is already running a pilot project with Accenture Plc to introduce an electronic krona based on the same blockchain technology that underpins digital currencies like Bitcoin.

Governor Stefan Ingves said in October that any decision on whether to issue an e-krona needs to be taken at the political level.

From the point of view of the government, Bolund said that “it’s crucial that the digitalized payments market functions safely, and that it’s available to everybody.”

“Depending on how a digital currency is designed and which technologies are used, it can have large consequences for the entire financial system,” he said.

The Riksbank estimated in October that Sweden’s cash usage dropped to its lowest level ever, as the pandemic accelerates the shift away from bank notes and coins. Less than 10% of all payments are made with cash in Sweden, according to the bank’s research.

The Bank for International Settlements estimated back in 2018 that Sweden is the world’s most cashless society, measured as usage as a percentage of gross domestic product.

© Copyright 2020 Bloomberg News. All rights reserved.

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The original is posted on Newsmax.com/Finance.

Article reposted on Markethive by Jeffrey Sloe

MicroStrategy completes $650 million bond sale to finance next Bitcoin purchase

The bond sale underscores MicroStrategy's conviction that Bitcoin is a generational investment opportunity.

Image courtesy of CoinTelegraph

            DEC 11, 2020

MicroStrategy (MSTR), a leading business intelligence firm, announced Friday that it has raised $650 million worth of convertible bonds to finance more Bitcoin (BTC) purchases, underscoring CEO Michael Saylor’s conviction in the flagship digital asset.

The company confirmed Friday that it had sold $650 million worth of convertible senior notes at a rate of 0.750% due in 2025. The interest rate is payable semi-annually on June 15 and December 15 beginning in 2021.

According to the press release:

“MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending identification of working capital needs and other general corporate purposes.”

The securities were issued under Rule 144A of the Securities Act of 1933 and will be available to institutional investors only.

The raise was finalized mere days after the company first announced plans to leverage bond proceeds to acquire more Bitcoin. As Cointelegraph previously reported, MicroStrategy was initially targeting a raise of $400 million. At $650 million, the firm can purchase over 36,300 BTC at current prices.

MicroStrategy shocked the world earlier this year when it announced that it would convert most of its balance sheet to Bitcoin. At the time, CEO Michael Saylor said his company was sitting on a “$500 million melting ice cube” of cash.

The company currently sits on 40,824 BTC representing over $734 million. That represents a gain of nearly $260 million from the basis acquisition price.

Wall Street analysts are concerned that MicroStrategy has become overexposed to Bitcoin, whose decade of volatility has kept many institutional investors on the sidelines until only very recently. Citbank recently downgraded MSTR to “sell” from “neutral” because of its “disproportionate” BTC focus.

MicroStrategy may be the largest corporate Bitcoin holder, but it isn’t the only one. On Thursday, Massachusetts-based insurance firm MassMutual announced it had purchased $100 million in BTC for its general investment account, making it one of the largest corporate holders. Publicly-traded companies like Galaxy Digital (GLXY), Square (SQ) and Hut 8 Mining Corp (Hut-8) have invested between $36 million and $134 million in Bitcoin. Each company is now sitting on significant profits.

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Original article posted on the CoinTelegraph.com site, by Sam Bourgi.

Article re-posted on Markethive by Jeffrey Sloe