Bitcoin price rally to $12K is meaningless until bulls flip it to support

Bitcoin price is near $12K again but this level may cause more harm than good if bulls fail to flip it to support.

Image courtesy of CoinTelegraph

            OCT 20, 2020

On Tuesday Bitcoin (BTC) bulls mustered enough strength to push BTC price slightly above the $12K mark, a level not seen since Sept. 1.

Cryptocurrency daily market performance snapshot. Source: Coin360 (Click image for larger view)

The move occurred after Monday’s (Oct. 19) high volume surge to $11,822 was followed by continued buying into Tuesday, providing enough momentum for bulls to push above the ascending channel to $12,038.

BTC futures volume by exchange. Source: Digital Assets Data (Click image for larger view)

The rally to $12K was also accompanied by soaring volumes across the top Bitcoin futures exchanges on Monday through Tuesday, and earlier this week Cointelegraph reported that the most recent CME commitment of traders report shows institutional longs reached a record-high.

At the start of the week traditional markets took a hit as investors feared a stalemate between Democrats and Republican lawmakers in Congress would prevent the passing of a second round of economic stimulus aimed at alleviating the financial pressure placed on small businesses and Americans in need of a second stimulus check.

Fortunately, by today’s market closure the Dow, S&P 500 and Nasdaq wrapped the day up with marginal gains.

Notably, the Dow closed 100 points higher after U.S. House Speaker, Nancy Pelosi said she felt “optomistic” about a deal being struck between the Congress and the White House.

Bitcoin’s recent price action has been somewhat dislodged from that of equities markets, leading some analysts on crypto Twitter to again call for a ‘decoupling’ but this all seems a bit premature.

Macro Assets 2020 returns. Source: Skew (Click image for larger view)

Regardless where one stands on Bitcoin price decoupling from traditional markets, the digital asset remains one of the top performers for 2020, currently up 65.4% year-to-date.

Macro Assets 2020 returns. Source: Skew (Click image for larger view)

Bitcoin bulls must flip $12K to support

BTC/USDT daily chart. Source: TradingView (Click image for larger view)

Today’s daily high at $12,038 is only $10 away from the previous high on Sept.1 when Bitcoin price formed a tweezer top and corrected 18.5% over the next few days. So naturally, traders have expressed mixed emotions about the price hovering near $12,000 again, especially considering that the last 5 visits to this resistance were followed by sharp sell-offs.

Price action wise, when an ascending channel is trendline is broken near a key resistance level, it’s normal for some profit booking to take place, and this typically results in the price dropping to retest either the ascending channel trendline or a former resistance like $11,900 to determine whether or not buyers remain bullish enough to confirm the level as support.

BTC/USDT 4-hr chart. Source: TradingView (Click image for larger view)

On the 4-hr timeframe we can see that this is what has occurred as the price dropped to $11,850 as investors pulled in profits.

At the time of writing, BTC is trading around $11,940 and with less than 2-hours until the daily close, a push to secure $12,000 before the day ends would be a positive sign.

Given the recent importance of the $12K level, multiple failed attempts to overcome the resistance or a clear loss of momentum might motivate bearish traders to open short positions from $11,900-$12,000. This would heighten the possibility of a repeat of the previous sell-offs from 12K.

As mentioned in a previous analysis, Bitcoin price has support at the 20-MA ($11,600) and at the $11,500-$11,400 level. If the price were dip below the ascending channel midline, there is also support at $11,200 and $10,900.

Over the next day or so some consolidation in the $11,950 to $11,800 zone could lead to the formation of a bull flag or a pennant so traders should keep an eye on the 4-hour chart and volume across the 1-hour to 4-hour timeframe.

A push to the daily high ($12,038) would put the price back at a key resistance level (see dotted blue line) which if flipped to support would put Bitcoin price back on the path to securing a new 2020 high.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Original article posted on the CoinTelegraph.com site, by Ray Salmond.

Article re-posted on Markethive by Jeffrey Sloe

FinCEN Penalizes First Bitcoin “Mixer” For Violating AML Laws

By RTTNews Staff Writer | Published: 10/20/2020 10:25 AM ET

U.S. financial watchdog has slapped Larry Dean Harmon and his two companies with a $60 million civil money penalty for violations of the Bank Secrecy Act (BSA) and its implementing regulations. Harmon is the founder, administrator, and primary operator of Helix and Coin Ninja, convertible virtual currency “mixers,” or “tumblers.”

The Financial Crimes Enforcement Network (FinCEN) found that Harmon operated Helix as an unregistered money services business (MSB) from 2014 to 2017 and Coin Ninja from 2017 to 2020.

Harmon, doing business as Helix and Coin Ninja, operated as an exchanger of convertible virtual currencies by accepting and transmitting bitcoin through a variety of means. Helix conducted over 1.23 million transactions to sent or received over $311 million.

FinCEN’s investigation has identified at least 356,000 bitcoin transactions through Helix. Harmon operated Helix as a bitcoin mixer, or tumbler which enabled customers to anonymously pay for things like drugs, guns, and child pornography. Harmon subsequently founded Coin Ninja and operated similarly.

According to FinCEN, exchangers and administrators of convertible virtual currency are money transmitters under the BSA and are obligated to register with FinCEN, maintain anti-money laundering compliance and meet all reporting and record-keeping requirements.

FinCEN had also clarified in 2019 that financial institutions that are mixers and tumblers of convertible virtual currency must also meet these same requirements.

FinCEN’s investigation revealed that Harmon willfully violated the BSA’s registration, program, and reporting requirements by failing to register as a MSB, failing to implement and maintain an effective anti-money laundering program, and failing to report suspicious activities.

Harmon also failed to collect and verify customer names, addresses, and other identifiers on over 1.2 million transactions. He deleted even the minimal customer information he did collect.

The investigation revealed that Harmon engaged in transactions with narcotics traffickers, counterfeiters and fraudsters, as well as other criminals.

Additionally, Harmon is currently being prosecuted in the U.S. District Court for the District of Columbia on charges of conspiracy to launder monetary instruments and the operation of an unlicensed money transmitting business in connection with his operation of Helix.

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

Michael Saylor explains the ‘winning investment strategy’ perfected by Bitcoiners

By Adrian Klent – October 20, 2020

One of the oldest investment strategies in the world of finance has been persistence. It is one of the oldest tradings and investing tactics among industry experts and in the world of digital currencies, it is called HODLing. Tweeting to nearly 200k followers, the founder, chairman, and CEO of Microstrategy is stating that this strategy remains one of the most useful in terms of investment and also one of the most used within the Bitcoin community.

He can be quoted saying :

“#Bitcoin investors understand that preserving energy in a world where everyone else is dissipating it is a winning strategy.”

Michael Saylor threw his full weight behind Bitcoin this year, when he and his company’s executives made a surprising entrance into the cryptocurrency industry, with the acquisition of thousands of Bitcoins. Michael Saylor’s entrance into the industry was particularly surprising because the CEO was publicly known for speaking against Bitcoin and digital currencies at large. In 2013, Michael Saylor weighed Bitcoin against gambling and in a rather certain manner, forecasted a bleak future for Bitcoin, propounding that Bitcoin would only be present for a limited time.

“#Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.”

Seven years later, Michael Saylor recounted his tweet with the eminent Bitcoin maximalist Anthony Pompliano on his podcast, where he can be quoted saying “I literally forgot I ever said that.” This is surfacing shortly after the intelligence company, now valued at $1.06 billion, turned bullish on Bitcoin, with a staggering one time purchase of $21,454 Bitcoin, valued at $250 million at the time of the purchase.

Taking it even further, Saylor went on to convince the company’s board members to allocate nearly all of the company’s $425 million cash position to bitcoin. With effect on his new tweets, Saylor is seemingly standing behind his proposed investment strategy, even as Bitcoin oscillates between two price marks while battling constant market volatility.

The traditional method for company risk procedure is usually to keep the company private, buy shares and wait through maturation and go public after it pays off, but Microstrategy is obviously taking a different route as the company went public before it purchased the Bitcoins.

Moving onwards, the year 2021 is expected to be one of Bitcoin’s best performing years. Technically, analysts are banking on chart patterns that cue a bullish trendline that could send Bitcoin above $20,000. It is also probable that many investment firms will break into the industry by 2021.

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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 Adrian Klent and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

This signal hints Bitcoin price could skyrocket past $20,000 within three months

By Olivia Brooke – October 18, 2020

Quite a number of fundamental signals have suggested that Bitcoin is steering in a very volatile direction in the coming weeks, some technical pointer has as well, and the most recent of it was Okex suspending withdrawals. Okex, being one of the leading exchanges in the crypto space, plays a major role in Bitcoin's daily trading volume as millions of users depend on the platform to trade cryptocurrencies.

Not only did its temporary withdrawal suspension affect the entire market as Bitcoin dropped by 2.5% upon the announcement, but the panic caused by the uncertainty of when the platform will reopen could also cause Bitcoin’s price to fluctuate, even in the tiniest way. Meanwhile, Weiss Crypto Ratings also disclosed that Bitcoin’s correlation with the equities market is leading the dominant cryptocurrency to a volatile position.

These are two of the few technical and fundamental factors that suggest a downward trend in the near term, but in contrast, a new signal on the charts, is affirming this analyst's standpoint; Bitcoin is on its way to break above $20,000.

This Ascending Triangle signals $20,000

As explained by Bitcoin trader Moon Carl, a single ascending triangle shows a trend line pattern that Bitcoin has consistently followed for more than three months. The trend pattern captures the movement of prices and included significant occurrences like bullish engulfing patterns and severe bearish models.

BTCUSD Chart By TradingView (Click image for larger view)

The ascending triangle as seen in Moon Carl's tweet could follow the pattern and in the next few months push Bitcoin to $20,000 and above. Unless there's a hindrance in the market, which is unlikely considering that the trend pattern has been consistent for a long period of time, a new Bitcoin all-time high could be recorded this year, or if extended, early next year.

Note that mild price retracements could still occur, regardless of the market's current strength, and if fundamental factors play into the market, the time needed to attain the $20,000 mark could increase.

Meanwhile, Bitcoin at or above $20,000 is not only a record-breaking high, it will also be an affirmation that Bitcoin could thrive even in the face of intense volatility. If Bitcoin is able to maintain that price mark and proceed to stay range-bound, above $20,000, it would mean that adoption is increasing and more traders are on the long end of Bitcoin.

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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

The next big treasure: Corporations buy up Bitcoin as a treasury reserve

The entry of firms like Square, MicroStrategy and Stone Ridge may open the BTC floodgates and provide “confidence for the rest to follow.”

Image courtesy of CoinTelegraph

            OCT 17, 2020

October is a time for surprises. On Oct. 8, right on cue, mobile payments giant Square, which boasts a market cap of $86.6 billion, announced that it had invested $50 million in Bitcoin (BTC). Five days later, asset manager Stone Ridge Holdings, which manages over $10 billion in assets, disclosed that it had purchased more than 10,000 BTC, worth around $114 million, as part of its treasury reserve strategy.

They both followed MicroStrategy, a Nasdaq-listed asset manager, which made known last month that it had accumulated $425 million in Bitcoin, making BTC the principal holding in its treasury reserve strategy.

Three publicly owned companies, three big BTC purchases — it may be mere coincidence. On the other hand, the Federal Reserve’s balance sheet has ballooned by $3 trillion since the beginning of 2019, while the U.S. dollar has depreciated 70% against BTC — as Stone Ridge founder Ross Stevens noted in the firm’s Oct. 13 press release.

BTC: The new reserve asset?

How do the cognoscenti explain it? The U.S. dollar is falling; bond yields are almost non-existent; and gold is underperforming. Liquidity-flush firms have fewer places to put their cash — so they are turning to cryptocurrency. “We are seeing a new trend emerge where corporations are using Bitcoin as a reserve asset for part or majority of their treasury,” pronounced Anthony Pompliano in his Oct. 15 newsletter. Saifedean Ammous, economist and author of The Bitcoin Standard: The Decentralized Alternative to Central Banking, told Cointelegraph:

“While I would have expected to see such firms take small positions more as a hedge, it speaks volume to the growing credibility of Bitcoin that as soon as they became intrigued by the value proposition, they chose to go with a large allocation.”

“Scrambling for alternative investments”

Edward Moya, a senior market analyst at Oanda — a forex trading company — told Cointelegraph that the COVID-19 pandemic has changed the macro backdrop for fiat currencies, adding: “The Fed, in particular, has clearly signaled an ultra-accommodative monetary stance will remain in place for a few years, and that is making many institutional investors scramble for alternative investments.”

Gold, the traditional safe haven in crisis times, has disappointed recently, and as a result, “Bitcoin has emerged as a favorite diversification play away from bonds and will likely steadily attract new institutional investors,” said Moya. Ammous further added: “There is the short-term concern about devaluation of the dollar in light of the increased amount of government spending and stimulus in response to the corona panic crisis.”

Paul Cappelli, a portfolio manager at Galaxy Fund Management, told Cointelegraph that “a more sophisticated investor base has come to understand its [BTC’s] value as a non-sovereign, fixed supply, deflationary asset.” Meanwhile, Lennard Neo, head of research at Stack Funds, commented to Cointelegraph:

“These firms probably see Bitcoin as a hedge or insurance against current market conditions. […] With these companies entering the markets, it opens the floodgates and establishes some form of confidence for the rest to follow.”

A longer-term worry

But COVID-19 distress may soon abate, or so one fervently hopes. This leaves “the longer-term critical problem faced by many companies with the diminishing yield they can get on their cash reserves by holding them in banks or treasury bonds,” according to Ammous. In the past, companies could hold their reserves in government bonds and be reasonably sure of outperforming the consumer price index (CPI) — i.e., inflation. But today, “there seems to be a growing segment of companies that no longer reasonably expect that into the future,” said Ammous.

Indeed, buried within Stone Ridge’s announcement was a call to banks and philanthropies to likewise make Bitcoin a principal component of their treasury reserve strategies. To that end, Stone Ridge was offering up the services of its New York Digital Investment Group unit, which holds a license from New York State to convert dollars into crypto and back again, along with core custody, financing, and Anti-Money Laundering and Know Your Customer capabilities.

Moya cautioned that BTC remains a risky asset, though that could soon change: “Both Europe and America are struggling with the coronavirus, and investors are widely expecting governments and central banks to continue providing massive amounts of stimulus into the economy. BTC for now remains a risky asset and primarily increases in value when risk appetite is strong. Eventually, once the dollar resumes a steady downward trend, Bitcoin and other cryptos will attract some safe-haven flows alongside gold.”

Will Square lead the way?

Apart from what may or not happen with corporate treasuries, the Square Inc. investment could have reverberations. A $50-million investment in BTC may seem modest for a firm whose market capitalization now surpasses Goldman Sachs’, but most analysts expect that crypto investment will grow.

Square has been bullish on Bitcoin for some years now. Its Cash App service enables users to buy and sell Bitcoin, and some analysts believe other payment firms will now have to facilitate crypto investment in some form — or risk being left behind. It hasn’t escaped notice, either, that the younger generation, the Millennials, are especially keen on cryptocurrencies such as Bitcoin.

But apart from payment firms, could institutional investors and/or Fortune 500 companies follow Square’s lead as well? “Yes. This trend has moved from an ‘if’ scenario to a ‘when’ scenario,” according to Cappelli. Institutional investors, too, will have to find new ways to diversify their portfolios and maximize balance sheet returns. Meanwhile, BTC has risen 50% since the beginning of the year.

But only 18.4 million BTC are now in circulation, and supply could be a problem. “With only roughly 2.5 million Bitcoin left to be mined, many institutional investors will look at other cryptocurrencies for better upside potential,” added Moya.

Ease of access and options that meet diligence and compliance standards are also critical, said Cappelli, adding: “Institutions mainly want their digital asset investments to look and feel like other more traditional investments in their portfolio with everything from service providers to reporting.” It’s helped that over the past three years, many traditional players have entered the space “like Fidelity, NYSE, Bloomberg, the CME, Deloitte, KPMG, etc. They’ve all expanded their offerings to include digital assets and this trend is growing,” Cappelli told Cointelegraph.

This transformation won’t fail for lack of infrastructure, added Neo, who applauded the institutional-grade platforms that have been built by Fidelity and others. “We view education and regulations as among the most significant barriers” that large firms must overcome if they are to adopt crypto into their core businesses.

What is a significant investment size?

What could be considered a significant crypto investment for a large hedge fund or institutional investor? “Given the volatility and where the asset class stands today, we have consistently recommended a 50 BP (basis point)-to-2% allocation for suitable investors,” answered Cappelli. As Bitcoin and the overall asset class matures, that allocation could grow further.

Moya told Cointelegraph that hedge funds and institutional investors will be more likely to have around 1% exposure to cryptocurrencies. Publicly held corporations, for their part, “will be more interested in creating their own cryptocurrencies, but the regulatory battle that hit Facebook’s Libra project has demotivated many companies.” He added: “Eventually, a large company will take a decent-sized investment, and that should be enough to force other firms to follow suit.”

A strictly limited supply

Reflecting on the recent public-firm announcements, Ammous told Cointelegraph: “What was most interesting for me about the MicroStrategy and Stone Ridge purchases is that these are not companies that deal with Bitcoin as part of their core business, and yet they chose to place the majority of their corporate reserves in Bitcoin, not just a small fraction.”

“We believe that Bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s chief financial officer, Amrita Ahuja. “As it grows in adoption, we intend to learn and participate in a disciplined way.”

It was Satoshi Nakomoto’s vision that in times of crisis, governments would never resist the temptation to print more money — even at the risk of debasing their currency — so Bitcoin’s founder wrote into the cryptocurrency’s code a 21-million BTC limit. No more than that could ever be minted, and that appears to have served Bitcoin well in the time of COVID-19. As Ammous told Cointelegraph, “There seems to be a growing recognition that the strictly limited supply of Bitcoin gives it a good chance at maintaining its value well into the future.”

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Original article posted on the CoinTelegraph.com site, by Andrew Singer.

Article re-posted on Markethive by Jeffrey Sloe

World's First Crypto Cruise Ship To Set Sail

By RTTNews Staff Writer | Published: 10/15/2020 10:10 AM ET

Ocean Builders is set to launch the world's first Crypto Cruise Ship named aptly as 'SATOSHI' for passionate crypto entrepreneurs to live and work in a crypto friendly environment. All on board businesses will accept bitcoin, US dollars, and other forms of payment.

MS Satoshi will provide a business focused environment where crypto entrepreneurs can relocate existing business, set up a new global head office, or start a new business with the support of an environment of like-minded entrepreneurs.

Chad Elwartowski, COO of Ocean Builders, says, "We look forward to creating a hub for technology and innovation here in Panama. Our goal is to figure out how to live sustainably on the sea and chart new waters in this new frontier."

MS Satoshi is welcoming everyone from digital nomads, cryptocurrency enthusiasts, expats, researchers, and entrepreneurs to Youtube influencers, startup teams, and established businesses to the office space available on board.

The Crypto Cruise Ship is being prepared to set sail from the Mediterranean and anchor in the Gulf of Panama. The 804 foot, 777 cabin ship, with a capacity of 2020 people plus crew and crew quarters, will be anchored a 30-minute ferry ride away from International hub, Panama City in the calm waters of the Gulf of Panama.

The cruise ship will also have all other facilities such as multiple restaurants, a theatre, casino, gym and wellness areas. The ship will be used for residency, tourism, research, and office space. It will also provide an incubator environment for entrepreneurs. Residents will pay an ongoing fee for the upkeep of the ship and amenities.

According to Ocean World, this could be the start of a modern floating Venice of the Americas and an important hub of innovation in the world, just like the man-made island of Venice Italy became an important center of commerce in the old world.

Ocean Builders will begin auctioning off the first batch of 200 rooms or cabins on November 5, 2020 to those interested in owning a permanent residence on the ship. Cabins are tentatively priced between $25,000 and $50,000.

The bidding for the rooms will close on November 28, 2020. The winning bids will be announced in the following week, with move in starting in January 2021. Vacation rentals will also be available.

Elwartowski, an American bitcoin entrepreneur, is also pioneering a movement called Seasteading, the concept of creating permanent dwellings at sea outside the territory claimed by government. Ocean Builders is currently building "floating, off-grid SeaPod homes on the Caribbean coast of Panama and they will begin building on the Pacific side as well.

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

‘I would not short’ — Bitcoin buy the dip zone now $11K, says Tone Vays

The veteran trader says bullish trends make shorting the current correction a dangerous move, and the dip “may already be over.”

Image courtesy of CoinTelegraph

            OCT 15, 2020

Bitcoin (BTC) is bullish in three key areas and a “perfect” buy-in is now no lower than $11,000, popular trader Tone Vays says.

In the latest edition of his Trading Bitcoin YouTube series on Oct. 14, Vays presented an optimistic take on the Bitcoin price, which he argues has barely any bearish characteristics.

Vays: $11,000 zone is “perfect” dip

Examining the weekly and daily charts, Vays noted that there was little reason to expect a significant pullback beyond a “one to four-candle correction.”

This is ongoing, with BTC/USD consolidating its gains from earlier in the week. Should this period last no longer than four days as Vays predicts, he said that he would look to “buy the dip” at $11,000.

“I would be looking to buy the dip or buy the breakout, but I don’t know which one it’s going to be,” he summarized.

“So if I am to buy the dip, where would the perfect dip be? Well, the perfect dip would be… around $11,000.”

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The advice came immediately after a warning not to short the current correction — a further indication that expectations remain skewed to the upside.

The trend towards $11,000 may also break down early, in which case a buy area of between $11,537 and $11,570 would be suitable, says Vays, pointing to two technical highs from previous daily candles.

BTC/USD 1-week daily price chart. Source: Coin360 (Click image for larger view)

Big buys fuel BTC bulls

Along with Bitcoin’s weekly and daily charts, new corporate buys are buoying Vays’ bullish view, but he is not alone.

As Cointelegraph reported, a number of analysts and traders, along with existing Bitcoin business executives, are becoming increasingly convinced that a watershed price moment is incoming.

Corporate interest, in particular, was highlighted by Grayscale CEO Barry Silbert this week, being followed by fund manager Dan Tapeiro.

A spike in Bitcoin futures interest further cements a return of institutional interest.

Long-term indicators complement the picture, with stock-to-flow performance on schedule and fundamentals such as hash rate lingering near all-time highs. Under current estimates, network difficulty will hit a new record at its next adjustment in two days’ time.

Original article posted on the CoinTelegraph.com site, by William Suberg.

Article re-posted on Markethive by Jeffrey Sloe

Grayscale Recorded $1 Billion New Crypto Investments In Q3 – Extremely Bullish For BTC And ETH

By Bernice Nyambura – October 14, 2020

The world’s largest crypto assets manager, Grayscale has caused a stir in the crypto market today, by announcing an all-time high of $1.05 billion worth of new crypto investments in the third quarter of 2020.

Grayscale’s Bitcoin Trust, which is by far its biggest portfolio has been recording a weekly average investment of $55.3 million, followed by its Ethereum Trust at $15.6 million. The Digital Large Cap Fund came in third at $3.5 million, bringing the total weekly average to $80.5 million. Grayscale wrote on Twitter:

“We just recorded our largest ever quarterly inflows-over $1.0 billion in 3Q20-making it the third consecutive record-breaking quarter. YTD investment into the Grayscale family of products has surpassed 2.4 billion.”

The news has been well received in the crypto community with many top analysts and crypto investors saying that this level of buying is extremely bullish, particularly for Bitcoin and Ethereum.

Surprisingly, 84% of the buyers, according to Grayscale, are institutional investors and especially hedge funds, which have seemingly been buying and increasing their crypto portfolios in silence.

“Majority of investment (84%) came from institutional investors, dominated by hedge funds.”

Grayscale’s Bitcoin Trust Records Fastest Growth

Grayscale’s announcement is the latest piling list of developments in the crypto market that indicates exponential trust in Bitcoin as a Store of Value. Not only has Grayscale’s AUM surged from $1.9 billion to $4.7 billion Year-to-Date, but its Bitcoin Trust has recorded the fastest growth of $719.3 million.

“If the Trust were compared to global ETPs and ETFs with over $1B AUM at the start of the year, it would rank as the third-fastest growing product YTD with an AUM increase of approximately 147%.”

The total amount of Bitcoin bought via Grayscale now accounts for 77% of the newly mined Bitcoin supply.  Grayscale also added that the rest of its alternative products, including Bitcoin Cash and Litecoin, have also experienced increased growth, accounting for 31% of total inflows in Q3 2020.

Hard Not to Be Bullish

Grayscale news follows in tandem with the rising institutional investments in Bitcoin, especially the latest $115million investment by Stone Ridge.

Square and MicroStrategy have also contributed to the bullish sentiment in the crypto market and particularly Square’s $50 million BTC investment that arguably pushed BTC over the $11,000 mark.

According to Bitcoin Partisan and Morgan Creeks’ co-founder Anthony Pompliano, the unfolding events in the crypto space indicate the onset of a new, extremely bullish cycle.

“Grayscale raised $1 billion in Q3, which is their largest quarter ever. Hard not to be bullish.”

BTC has so far shown little to no reaction to Grayscale’s announcement, at the current trading price of $11,336.

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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 Bernice Nyambura and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Crypto Analyst: 90% Chance Bitcoin (BTC) Never Closes Below $11k

John P. Njui   •   BITCOIN (BTC) NEWS   •   OCTOBER 13, 2020

In brief:

• Timothy Peterson of Cane Island Alternative Advisors has given Bitcoin a 90% chance at staying above $11k
• Bitcoin’s lowest price forward is $11,004 using Metcalfe’s law
• Mr. Peterson has used Metcalfe’s law to correctly forecast Bitcoin’s price movement since 2018
• He has predicted that Bitcoin will be valued at $12k by November 30th, 2020

In an October 11th Twitter thread, Crypto Analyst Timothy Peterson forecasted that Bitcoin had a 90% chance of continuing to trade above $11k and never dropping below this value ever again.

For his analysis of Bitcoin, Mr. Peterson has continually used Metcalfe’s law. By using this law, he has calculated that Bitcoin’s lowest price moving forward is approximately $11,004. Below is Mr. Peterson’s first tweet in the informative Bitcoin thread that provides a clear illustration of his method of analysis.

Bitcoin’s #10kCountdown on Twitter

Additionally and from around June this year, Mr. Peterson has used the #10kCountdown hashtag on Twitter to demonstrate his use of Metcalfe’s law to forecast Bitcoin’s journey towards $10k. He correctly predicted that Bitcoin would successfully break this psychological price zone and turn it into a support zone.

Bitcoin at $12k By November 30th

In the aforementioned 10 part twitter thread, Mr. Peterson gives a $12k forecast for Bitcoin by November 30th this year using his Metcalfe’s model.

On November 30th, 2020, #Bitcoin ‘s price will be at or above $12,000 (90% probability). Write it down, screenshot it, whatever. I don’t care if you believe me or not.

Metcalfe’s law is a mathematical and scientific fact, like gravity and E=mc2. I wrote 80+ pages of #bitcoin research backed by thousands of pages of supporting financial economics, as well as taught 2 semesters of MBA courses on network valuation.

Anyone interested in learning more about his Metcalfe model, Mr. Peterson has provided this link to his publicly available research papers on Bitcoin and its valuation using Metcalfe’s law. Mr. Peterson has also used the Metcalfe model to forecast the value of other digital assets such as ChainLink (LINK), Ethereum (ETH) and XRP.

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

Article re-posted on Markethive by Jeffrey Sloe

Bitcoin Is Sure Winning The Battle Of The Safe Havens As Another Publicly Traded Company Invests $115M In BTC

By Brenda Ngari – October 13, 2020

The king of cryptocurrencies is seemingly winning as a safe haven asset that sucks in capital during times of financial and economic uncertainty. While the price of bitcoin continues to struggle for upward momentum, it has continued to attract the interest of multi-billion-dollar corporations. After MicroStrategy and Square, the latest company is Stone Ridge Holdings Group via its subsidiary New York Digital Investment Group (NYDIG), which already holds $1 billion worth of digital assets.

According to an announcement on October 13, Stone Ridge purchased 10,000 BTC worth around $115 million. This bitcoin stash will be under the custody of its own spinoff firm NYDIG.

Stone Ridge is an institutional asset manager with $10+ billion assets belonging to top financial institutions and insurance companies under its management. The announcement indicates that the 10,000 BTC purchase by Stone Ridge was made pursuant to its treasury reserve strategy.

NYDIG CEO, Robert Gutmann, stated:

“As Bitcoin transitions to a predominantly institutionally-owned asset, NYDIG is better positioned than ever to be the leading provider of Bitcoin solutions to corporations, institutions, and banks. We are proud to have facilitated one of the largest commitments of treasury assets to Bitcoin announced to date, and see demand for our full suite of corporate treasury and investment solutions accelerating.”

Stone Ridge observed distinctive attributes of bitcoin that convinced it that investing in bitcoin would not only offer a global uniting force but also a reliable hedge against the rampant money printing happening across the world. In fact, Ross Stevens, the founder of both Stone Ridge and NYDIG, asserted that they have always deemed bitcoin as “superior to cash”, adding that NYDIG’s treasury solutions will prove to be “invaluable to other companies as they follow suit adopting the Bitcoin Standard for part or most of their treasury strategy” — especially since the US dollar has depreciated dramatically against BTC.

The news comes on the back of NYDIG raising an additional $50 million in growth equity funding.

Bitcoin: The Fastest Horse In The Race

So far, the bitcoin price has not reacted positively to the announcement of Stone Ridge splashing out $114 million on bitcoin. The cryptocurrency is trading at $11,373.94 at press time, down 1.56% over the past 24 hours. Nonetheless, with the ongoing global uncertainty, bitcoin is bound to attract more high-profile institutional players in the near term. As such, pundits believe selling the cryptocurrency right now would not be a good idea.

Bitcoin has been jockeying with gold for the status of the most preferred safe-haven asset in recent years. While more volatile than the precious metal, bitcoin’s stellar performance has made investors start to take a new, structured approach to a digital store of value.

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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