Bitcoin (BTC) Could Reclaim $10k in 49 Days – Crypto Analyst

John P. Njui   •   BITCOIN (BTC) NEWS   •   JULY 2, 2020

In brief:

• Top crypto analyst, Timothy Peterson, has initiated a Twitter countdown for Bitcoin retesting $10,ooo.
• His prediction using Metcalfe’s law sees BTC hitting $10,000 in 49 days.
• Bitcoin is once again struggling to maintain the $9,000 support zone.

In a recent tweet, Timothy Peterson has predicted that Bitcoin’s price will once again revisit the $10,000 level in 49 days. Mr. Peterson is an Investment Manager at Cane Island Alternative Advisors and his prediction is linked to Tone Vays analysis that Bitcoin will continue to oscillate between $6,000 and $10,000 for the rest of the year. Additionally, his price prediction of Bitcoin is based on Metcalfe’s law. Mr. Peterson made the prediction of a $10,000 Bitcoin via the following tweet.

What is Metcalfe’s Law?

Metcalfe’s law is commonly used in the telecommunication industry and states that the effect of a telecoms network is proportional to the square of the number of connected users of the system.

However, the law has since found additional use in analyzing Bitcoin through its BTC network. In this case, Metcalfe’s law is adjusted for the creation/mining of new BTC over time and uses three datasets: wallets, number of BTC mined and Bitcoin price.

Timothy Peterson has further expanded on the use of Metcalfe’s law to analyze Bitcoin through a research paper titled ‘Metcalfe’s law as a Model for Bitcoin’s Value’.

Bitcoin is Once Again Struggling to Maintain the $9,000 Support Zone

At the time of writing this, Bitcoin has experienced a significant drop in value from around $9,260 to $9,024 in approximately one hour. The King of Crypto is once again testing the crucial support zone of $9,050 – $9,000. Checking the daily BTC/USDT chart once again, Bitcoin is still providing a mixed bag of signals and is still in a no-trade zone

(Click image for larger view)

Taking a closer look at the daily BTC/USDT chart, the following can be observed.

• Bitcoin’s current price at $9,060 is below the 50-day moving average and below the 100-day and 200-day moving averages.
• This points to an earlier predicted scenario where the latter two MAs provide adequate support at $8,600 and $8,300 respectively.
• Trade volume is reducing pointing to a possible continuation of the dip that started a few moments ago from $9,260.
• MACD and MFI are in neutral territory thus it might be wise to take a ‘wait and see’ approach with Bitcoin right now.

Conclusion

In conclusion, Timothy Peterson has predicted that Bitcoin will retest $10,000 in the next 49 days. His prediction uses Metcalfe’s law and means that BTC has until the 20th of August to return to bullish territory. Furthermore, his analysis is inspired by Tone Vays’ view that Bitcoin will remain under $10,000 for the rest of 2020.

At the time of writing this, Bitcoin has experienced a $200 drop and is relying heavily on the $9,000 support zone to avoid further losses.

As with all analyses of Bitcoin, traders and investors are advised to do their own research as well as use risk management techniques which include stop losses and low leverage during uncertain times. Alternatively, taking a ‘wait and see’ approach might also be beneficial given Bitcoin’s current unclear price movement.

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Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

B21 Launches Cryptocurrency App In India

By RTTNews Staff Writer | Published: 7/1/2020 2:27 PM ET

Digital asset investing company B21 Wednesday announced the launch of its B21 Invest app in India.

B21 Invest allows customers to easily purchase and manage cryptocurrencies including Bitcoin, Ethereum, and EOS straight from a mobile phone. The launch of the app in the country was made possible by with the help of a recent decision by the Supreme Court of India to reverse a circular that previously prohibited banks from providing services to crypto traders, exchanges and other businesses dealing in cryptocurrencies.

B21 Invest app supports investment for as little as INR 2,000 or $25 per transaction. Users in India can invest using local fiat currency and local payment methods including Unified Payments Interface, debit cards and bank transfers.

B21 Invest is available free of charge on the App Store and Google Play.

"India is fast becoming a major market for digital asset investing as the use of mob ile technology expands alongside interest in alternative asset classes," said Nitin Agarwal, Founder and Director B21.

The virtual currency market in India has improved since March when the Supreme Court lifted the Reserve Bank of India's ban on the trade of the cryptocurrency. The Reserve Bank of India had prohibited the use of the banking system for crypto-related payments in early 2018

Last month, cryptocurrency exchange, CoinDCX, launched an online platform and subsidiary, DCX Learn, to provide educational content for cryptocurrency and blockchain in the country.

CoinSwitch also launched an Indian rupee cryptocurrency exchange mobile application named Kuber last month. Kuber supports over 100 cryptocurrencies for users to buy, sell, and trade digital assets with the INR

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Second Red Dot Flashes On The Bitcoin Stock-to-Flow Model, Confirming $100K Bull Rally By Year-End

By Brenda Ngari – July 1, 2020

The stock-to-flow model designed by pseudonymous Dutch quantitative analyst PlanB has become widely accepted by the crypto community as an accurate model to project the price of BTC. The analyst has released a new update to the S2F flow which suggests that bitcoin is still on track for a mega rally to $100k by the end of this year.

Despite BTC’s Extended Consolidation, It’s Still On Course For $100K

June was a rather uninteresting month for the bitcoin price. The benchmark cryptocurrency hovered between $9,000 and $10,000, with a move either above or below these regions being short-lived.

PlanB recently shared the latest update of his stock-to-flow model which shows that the month of July has started exactly as expected for a massive bull market to commence.

In a tweet on July 1, he confirmed that the second red dot  – indicative of a bull run – is now present on the stock-to-flow cross-asset (S2FX) model. Worth noting that PlanB’s model uses colored dots to map BTC’s price until the next block reward halving. The red dots, in particular, have historically preceded an exponential growth in the price of bitcoin. 

Based on the model, the next insane rally is on the horizon and should put BTC at $100,000 before the end of this year. Between 2020 and the next halving in 2024, BTC should be valued at an average of $288,000 per coin.

According to PlanB, the first red dot is June’s closing price. The second one is today’s price and is bound to change and be fixed at July’s closing price.

Is The Stock-to-Flow Model Fatally Flawed?

Notably, the model has quickly gained acceptance from crypto enthusiasts including Blockstream CEO Adam Back who said back in February:

“Well, it’s just a backtested curve fit to historic data, affirmed by co-integration stats test. What's not to believe? More interesting is interpreting why, given good fit. It does seem logical that rate of supply halving, other things being equal, would tend to drive up price.”

Nonetheless, the model still has its detractors including Ethereum co-founder Vitalik Buterin. The latest market expert to show their disdain for the stock-to-flow model is the CIO and fund manager at Strix Levitan, Nico Cordeiro.

Cordeiro published a detailed post on June 30 entitled “A Chameleon Model – Why Bitcoin’s Stock-to-Flow Model Is Fatally Flawed”. He points out that gold’s stock to flow ratio over the past 100+ years has had no direct relationship with the price of the precious alloy.

The fund manager also argues that the fact that the S2F flow model forecasts $235 million per BTC by 2045 makes it irrational and reduces it to a “marketing piece in which the author is trying to convince readers that bitcoin is going to be worth a lot more tomorrow.”

In a different tweet today, PlanB has told his followers to look out for S2F critics who will try to discredit the model by claiming that it is “fatally flawed”, intended “to induce FOMO”, or that it has created a “cult”. He has previously coyly alluded that those criticizing the quantitative model should first disprove it.  

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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 Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin, Crypto Ownership Surges 1.1 million In Boost For UK Industry

Gary McFarlane   •   BITCOIN (BTC) NEWS   •   June 30, 2020

In a boost to bitcoin and the wider crypto industry, the UK ‘s financial watchdog says ownership has spiked by a massive 1.1 million since a survey it carried out a year ago.

The UK’s Financial Conduct Authority (FCA) found that a total of 2.6 million people have bought a cryptoasset.

The most popular holdings are:

Bitcoin 63%
Ether 33%
Litecoin 22%
Dai 6%
Tether 3%
USDC 3%

2,681 took part in the survey, which was conducted by YouGov.

Around 1.9 million consumers are estimated to still be holding the crypto that they bought. Of those more than half have holdings valued at more £260.

Savvy bitcoin Britons

The research note published by the FCA found an overwhelming majority to be highly knowledgeable about the asset class.

89% are aware that their cryptoassets do not have the same protection as that afforded to regulated investments. A further 92% were able to correctly define what a cryptoasset is.

Buyers were also well aware of the issue of price volatility.

The survey estimates that 80% of the cryptoasset wealth is held by just 1% of the population.

The breakdown of crypto holders skewed heavily towards higher earners and the better educated – The ABC1 social stratification categories account for 73% of crypto owners.

An overwhelming majority bought their crypto offshore, on non-UK based exchanges (83%).

(Source: UK Financial Conduct Authority) (Click on image for larger view)

In term of custody, most stored on exchanges (46%), followed by online wallets (34%) and 24% holding their crypto offline.

Encouragingly for the health of the industry, a surprisingly large number said they had used their crypto to purchase goods and services, coming in at 27%.

Not surprisingly, 77% bought cryptoassets through exchanges and only 8% have used borrowed money to finance purchases of crypto.

The research note can be downloaded from the FCA website here.

Crypto popularity increasing says FCA

Sheldon Mills, the FCA’s Interim Executive Director of Strategy and Competition, commenting on the research findings said: “This FCA report reveals the increasing popularity of cryptoassets among the UK consumer population and underlines the importance of our work to gain a deeper understanding of this market and how people interact with these assets.

“Cryptoassets present risks and opportunities for consumers and we hope these insights will help inform the policy debate in the UK and internationally as the use of these assets continue to grow.”

The FCA is aprt of the UK’s Crypto TaskForce along with the Bank of England and HM Treasury.

In its last tax and spending statement – the March 2020 Budget – the UK government said it would be looking to bring crypto fully under existing financial promotions regulation rules.

In the press release issued on the findings of the research, the regulator provided further detail on how the survey was designed and conducted:

“Of the 2,188 consumers who have heard of cryptoassets and completed the questionnaire, 165 had purchased cryptoassets. We boosted the sample of cryptoasset owners with a further 493 consumers and a total of 2,681 proceeded with answering a number of follow-up questions about their experiences .”

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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Original article posted on the EthereumWorldNews.com site, by Gary McFarlane.

Article re-posted on Markethive by Jeffrey Sloe

How The Pandemic Killed The Bitcoin Bull Run, According To Crypto Pundit

By Brenda Ngari – June 28, 2020

From the lows recorded in mid-March, bitcoin (BTC) is up by a whopping 120% at the time of publication. Even so, the cryptocurrency has not staged a steady uptrend. In fact, BTC has been stuck in a bout of sideways trading over the last three-plus months despite showing signs of a bull trend as it galloped to $10,000.

Now, well-known on-chain analyst Willy Woo is noting that the COVID-19 crisis that has ravaged the world was the key factor that brought the BTC rally to a standstill. But it’s not all doom and gloom; Woo believes we are not so far away from another bull market.

COVID-19 Stopped The Bitcoin Rally Right On Its Tracks

In a Twitter thread on June 27, Willy Woo unveiled a new model that can identify the start of massive bull runs. He goes on to posit that BTC was setting the stage for an exponential bull run before the coronavirus pandemic “killed the party”.

However, the model also suggests that we are very close to another bull run. In particular, BTC could have just one more month of consolidation before the next full-blown bull market phase commences. 

The Longer The Consolidation, The Higher The Next Peak Price

Woo also quipped that BTC being contained within a narrow trading range is not completely bearish. On the contrary, a long sideways accumulation band is actually a good thing. He explains that the longer it takes before the new bull market arrives, the greater the chance of a higher peak price.

“The longer this bull market takes to wind up, the higher the peak price (Top Cap model). A long sideways accumulation band is ultimately a good thing.”

(Click on image for larger view)

With Willy Woo’s analysis predicting more BTC consolidation before breaking out in a month’s time, investors should brace for a severe bout of turbulence in the near-term. Simply put, when the next price crash occurs, they should capitalize on the fear and panic-selling by accumulating as a mammoth rally will likely ensue.

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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 Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

PayPal Cryptocurrency Support: Why It’s A Huge Deal For Bitcoin

By Brenda Ngari – June 23, 2020

Cryptocurrency has posed serious competition to PayPal since its debut into the global finance scene. This is especially because the asset class significantly reduces the transaction charges that are inherent with traditional payments processors like Paypal, Payoneer, Amazon Pay, and the like.

Well, it appears that PayPal is paying regard to the old maxim: “If you can’t beat them, join them.” According to a recent report by leading cryptocurrency news outlet CoinDesk, the payments firm is set to introduce a cryptocurrency buying and selling service.

PayPal’s Strategy To Allow Crypto Buying And Selling

Per the report, a person familiar with the matter revealed that PayPal and Venmo (PayPal’s peer-to-peer payment platform), are planning to allow individuals and/or businesses to buy and sell cryptocurrency directly from the platforms. The source notes that they will introduce “some sort of a built-in wallet functionality so you can store it there.”

The source also notes that PayPal will rely on several exchanges as liquidity providers for the transactions. However, it is not clear which specific cryptocurrencies the firm will be offering to its users at this point.

A different source told the outlet that PayPal plans to launch this cryptocurrency buying and selling service over the next three months  —or even sooner than that.

It bears mentioning that PayPal recently hired a blockchain and AML strategy director, according to a job posting in March 2020. The blockchain strategy director is responsible for leading the firm’s market expansion efforts and identifying partnerships and opportunities that are blockchain-related.

Although PayPal did not officially confirm hiring the blockchain strategist, the job advertisement suggests that the firm has already completed the hiring process. However, it’s unclear whether the newly hired director is part of the new cryptocurrency buying/selling venture.

Big Boost To Crypto Mass Adoption

The reason why this is such a big deal for crypto is the fact that both PayPal and Venmo boast a customer base of nearly 400 million. This means that offering a crypto-oriented service will expose Bitcoin to the millions of users; subsequently bringing the mass adoption dream closer to reality.

Additionally, it is worth pointing out that this is not the first time PayPal has expressed keen interest in digital currencies and blockchain technology. The firm was one of the founding members of Facebook’s Libra Association that was announced in June 2019 but pulled out of the ambitious digital currency project last October.

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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 Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

SEC Charges NAC Foundation, CEO And Lobbyist For Fraudulent ICO

By RTTNews Staff Writer | Published: 6/26/2020 10:32 AM ET

The Securities and Exchange Commission (SEC) has charged Nevada-based NAC Foundation, its Chief Executive Officer Marcus Andrade, and political lobbyist Jack Abramoff with conducting a fraudulent, unregistered offering of AML BitCoin. They allegedly repeatedly misled investors into funding non-existent technology.

AML BitCoin is a digital asset security the defendants claimed was a new and improved version of bitcoin. It was portrayed to be superior to the original bitcoin, with anti-money laundering, anti-terrorism, and theft-resistant technology built into the coin on NAC's own "privately regulated public blockchain."

The SEC's complaints, filed in the Northern District of California, charges NAC, Andrade, and Abramoff with violating the antifraud and securities registration provisions of the federal securities laws, and also charge Abramoff with broker-dealer registration violations.

NAC Foundation is charged of raising at least $5.6 million from more than 2,400 investors by selling tokens that could later be converted to AML BitCoin. The SEC alleges that none of the claims about the coin existed and that the coin and NAC's blockchain were in very early stages of development.

According to the SEC, NAC and Andrade made false claims and misleading statements about the AML Bitcoin to lure investors. They claimed that multiple government agencies were negotiating to use AML BitCoin.

Abramoff and Andrade also falsely claimed that they were on the verge of advertising AML BitCoin during the Super Bowl to boost the offering. Abramoff also allegedly arranged for NAC to pay for purportedly independent articles about AML BitCoin.

The SEC further alleges that Andrade directed a market manipulation strategy to boost the token's trading volume and price and diverted approximately $1.1 million from the offering for his personal use.

The SEC seeks permanent injunctions, disgorgement, and civil penalties. It also seeks injunctions prohibiting NAC and Andrade from participating in future securities offerings, and barring Andrade from serving as a public company officer or director.

Abramoff has agreed to a settlement imposing permanent and conduct-based injunctions, officer-and-director, industry, and penny stock bars and disgorgement of the $50,000 in commissions he received, plus prejudgment interest of $5,501. The settlement is subject to court approval.

Meanwhile, the U.S. Attorney's Office for the Northern District of California announced parallel criminal actions against Andrade and Abramoff, charging Andrade with wire fraud and Abramoff with conspiracy to commit wire fraud and lobbying disclosure violations.

For comments and feedback contact: editorial@rttnews.com

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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Ethereum (ETH) is Also Highly Correlated with the S&P 500

Ethereum's correlation with the S&P 500 provides a more accurate measure of the overall health of the crypto markets.

John P. Njui   •   BITCOIN (BTC) NEWS ETHEREUM (ETH) NEWS   •   May 10, 2020   •   2 Min read

In brief:

• Bitcoin’s correlation with the S&P 500 is still very much intact as witnessed in yesterday’s dip.
• Ethereum is also highly correlated to BTC.
• Therefore, logic dictates that Ethereum is also highly correlated to the S&P 500.
• If ETH is a measure of the alt-market, then the entire alt-coin market is also correlated to the traditional stock market.

Bitcoin’s correlation with the traditional stock market has been the focus of many analysts with a majority picking the S&P 500 to demonstrate this fact. Yesterday’s dip by BTC once again reminded us that the future of the King of Crypto is firmly in the hands of institutional investors and the traditional stock market. The selling in the traditional markets was caused by an alarming increment of new cases of COVID19 and fears that a global second wave of the Coronavirus is very much a reality. These fears were organically transferred to the crypto markets as witnessed in the dip by Bitcoin (BTC) and Ethereum (ETH).

Ethereum is Correlated to Bitcoin and thus the S&P 500

As earlier mentioned, the majority of the correlation research between the crypto and the traditional markets is carried out by comparing Bitcoin to the S&P 500. This often leaves Ethereum investors with no other option than to opt to use this correlation indirectly since BTC pretty much dictates the direction of the crypto markets.

It is with this correlation between Ethereum and Bitcoin, that it can be concluded that ETH is also highly correlated to the S&P 500.

Exploring these correlations on Coinmetrics between the three pairs of Ethereum and Bitcoin, Bitcoin and the S&P 500, and Ethereum and S&P 500, results in the chart below.

(click image for larger view)

Further dissecting the chart, the following observations can be made.

• Ethereum’s correlation with Bitcoin is high at approximately 0.89.
• Ethereum’s correlation to the S&P 500 mimics Bitcoin’s correlation with the S&P 500.
• The correlation between Ethereum and the S&P 500 (0.31) is higher than between Bitcoin and the S&P 500 (0.197).

Conclusion

Since the Coronavirus crash of mid-March, Bitcoin has been highly correlated to the S&P 500 and has been the focus of many analysts thus far. This is done under the assumption that BTC dictates the crypto markets. However, Ethereum’s correlation with the S&P 500 is also very much evident and could be a better measure of the overall health of the alt-coin markets rather than using BTC. The latter’s dominance in the crypto markets often fluctuates and Ethereum is a better measure of the overall health of the alt-coin market.

Only time will tell if Ethereum’s correlation with the traditional markets will become the focus of analysts and even result in ETH’s very own stock-to-flow model.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe