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Bitcoin Medium Term Outlook: This Is Why BTC May Evaluation $6.5K

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  • Bitcoin Cost is currently at a downtrend under the 9,100 pivot Degree against the US Dollar.
  • The cost is currently trading well under the 8,500 support along with the 100-day easy moving average.
  • There’s a crucial bearish tendency line forming resistance around $8,880 about the daily graph of this BTC/USD set (data feed in Kraken).
  • When the present trend stays intact, the cost can check $7,400 or perhaps $6,500.

Bitcoin cost is after a substantial downtrend within the daily timeframe from the US Dollar. In case BTC fails to remain over $ 7,400, the service region could be hit by it.

Bitcoin Price Evaluation (Daily parade )

Against the US Dollar, bitcoin began a sharp rise In the conclusion of this October 2019. BTC surged over the 8,000 and $9,100 opposition degrees. In addition, there has been a dreadful spike over the 10,000 immunity area.

The cost failed to repay over the moving average and the immunity. Prior to a decline was started by the cost, A large was formed close to $10,576.

Last past month, the cost lost nearly all of its earnings and traded under the initial $9,100 pivot degree. In any case, the cost broke the 61.8% Fib retracement level of this October’s rally in the 7,283 reduced to 10,576 high.

It’s currently trading well the moving average as well as support. An immediate service is close to the 8,060 level as it complies with the 76.4% Fib retracement level of this October’s rally in the $7,283 reduced to $10,576 high.

Bitcoin is very likely to slip towards the $ 7,400 service place or even the $, When there’s a break under the $ 8,060 and $ 8,000 service amounts cost.

From the instance, the cost may {} check the 6,500 service . It signifies the 1.236 Fib expansion level of this October’s rally in the 7,283 reduced to 10,576 high.

There are resistances for your bulls, beginning with $8,500. Furthermore, is a crucial tendency line forming resistance close to $8,880 about this BTC/USD pair’s graph.

Bitcoin Price

Taking a look at the graph , bitcoin cost is obviously following a dreadful downtrend about the daily graph below $8,500 and $8,700. It’s very likely to check $7,400 or maybe $6,500 unless there’s a daily close above the 8,880 resistance.

Technical indicators:

Daily MACD — The MACD is currently gaining speed in the zone that is.

Major Support Amounts — $.

Major Resistance Amounts — $ 8,700 $ 8,500 and $ 8,880.

Bitcoin

Gold Tokens Reach Milestone Market Cap; Does This Pose a Threat to Bitcoin?

Bitcoin and gold have been rising in tandem, as the dollar has been falling. It has also driven the growth of the market cap of digital gold tokens, backed by the precious metal commodity, to record highs. What exactly has caused this rapid growth in market cap, and does this pose any threat against Bitcoin? Market Cap of Commodity-Backed Gold Tokens Soars 1000% In 2020 Bitcoin and gold share several key similarities, such as supply […]

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Bitcoin and gold have been rising in tandem, as the dollar has been falling. It has also driven the growth of the market cap of digital gold tokens, backed by the precious metal commodity, to record highs.

What exactly has caused this rapid growth in market cap, and does this pose any threat against Bitcoin?

Market Cap of Commodity-Backed Gold Tokens Soars 1000% In 2020

Bitcoin and gold share several key similarities, such as supply scarcity. Bitcoin’s benefits soon begin to outweigh the precious metal, especially in terms of storage and security.

Gold existing in a physical form makes it far less portable and often requires storage in a vault or safe. It also leaves the asset highly vulnerable to theft, unless kept secure in this way.

To alleviate any challenges faced with storing gold and to avoid the high premiums gold bars are currently fetching, a new trend of digital gold tokens has emerged.

RELATED READING | HOW “PICTURE PERFECT” MACRO UNCERTAINTY WILL KEEP METALS, CRYPTO TRENDING

These tokens are backed by a corresponding amount of the commodity, and often represent digital ownership over a real bar stored in a security facility elsewhere.

The recent 2020 gold rush due to the economic uncertainty of 2020 has prompted the market cap of these commodity-backed tokens by 1000% to over $100 million and climbing.

The total gold token market cap has achieved a total of $139 million, with $82 million attributed to Tether Gold (XAUT) and $56 million to Paxos Gold.

commodity backed digital gold tokens market cap bitcoin tether paxos

Why Commodity-Backed Tokens Pose No Threat To Bitcoin and Crypto

If Bitcoin has long been considered digital gold due to important comparative attributes, then are these commodity-backed tokens competitors to the cryptocurrency?

In a sense, yes. All other tokens and gold itself are all competing against Bitcoin for capital. However, these assets pose no serious threat to Bitcoin.

For one, the combined market cap has only reached $140 million. Bitcoin’s market cap is over $200 billion. Bitcoin also has a hard-capped supply of only 21 million. While gold may be finite, it has an undetermined remaining supply.

Bitcoin is also a decentralized, non-sovereign network, while these gold tokens are backed by a commodity held by a centralized company that is bound to local government laws. The cryptocurrency existing outside of these barriers offers a value precious metals simply cannot match.

RELATED READING | WHY SILVER’S PERFECT STORM SURGE WON’T SPILL INTO CRYPTO

Instead, these tokens are providing investors an alternative to gold, not Bitcoin, as an easier way to store the asset, access the market, or perhaps own a smaller sum. Like other crypto tokens, commodity-backed coins are divisible by decimal points.

Further fueling the growth is the recent increase in security fears from the wealthy. According to recent reports, investors in Hong Kong have been moving their precious metals offshore to Switzerland and elsewhere fearing theft or seizure. Instead, their wealth could be stored digitally, in tokens backed by the same commodity they are sweating over.

It is for reasons like that, that these commodity-backed tokens will continue to grow, but also will continue to pose no threat to the top cryptocurrency.

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Bitcoin Reaches “Now Or Never” Moment: Fund Manager on Institutional Adoption

2020 so far has proven to be Bitcoin’s year. The asset has beaten stocks, gold, and nearly every other asset in year-to-date ROI. With all eyes now on the first-ever cryptocurrency, one British fund manager with billions of pounds of assets under management claims Bitcoin has reached its “now or never moment.” Hedge Fund Managers Prepare To Dump Gold Holdings For Bitcoin Cypherpunks, tech enthusiasts, and dark web users were among the earliest to take […]

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2020 so far has proven to be Bitcoin’s year. The asset has beaten stocks, gold, and nearly every other asset in year-to-date ROI. With all eyes now on the first-ever cryptocurrency, one British fund manager with billions of pounds of assets under management claims Bitcoin has reached its “now or never moment.”

Hedge Fund Managers Prepare To Dump Gold Holdings For Bitcoin

Cypherpunks, tech enthusiasts, and dark web users were among the earliest to take an interest in Bitcoin and cryptocurrencies. Once the mainstream public caught wind of the financial technology’s disruptive potential – and the wealth it could generate – retail investors piled into the asset at the peak of the bubble.

The next uptrend in the cryptocurrency is expected to be driven by institutional money coming in. While that narrative has now existed for years, dating back far further than Bakkt’s launch in September last year, it has failed to take hold.

Only recently, has institutional interest begun to rear its head, following hedge fund manager Paul Tudor Jones comparing the cryptocurrency to the role gold played in the 70s.

RELATED READING | WHY TOPPLING SILVER AND GOLD PRICES COULD BE ESPECIALLY BAD FOR BITCOIN

At the time, the asset traded at just $35 an ounce. Today it is worth over $2,000 an ounce thanks to decades of mismanaged monetary policy and inflation. Like gold, Bitcoin’s digital scarcity is said to cause it to behave similarly when faced with an economic environment rife with inflation.

With the Federal Reserve printing more money each quarter, institutions are finally looking toward Bitcoin for this reason. And it’s brought the cryptocurrency, according to on hedge fund manager, to the asset’s “now or never moment” with institutions.

Bitcoin BTCUSD Hedge Fund Manager Five-Fold Target By 2023 | Source: TradingView

How The First Ever Cryptocurrency Overcomes Its Credibility Hump

In an interview with Telegraph Money, a British hedge fund with “tens of billions of assets under management” says that the market is “approaching the now-or-never moment for bitcoin before institutional investors adopt the asset.”

The hedge fund manager is considering adding Bitcoin to its fund, potentially allocating as much as 30% of the fund’s gold holdings into Bitcoin instead. The fund managers expected at least a five-fold increase by 2023 if Bitcoin can overcome its “credibility hump.”

The cryptocurrency market rising alongside precious metals bodes well for the budding financial asset class. It is proving to the world that the safe haven narrative has legs, and the asset’s digital scarcity is demonstrating its value in the current economic climate.

RELATED READING | HOW “PICTURE PERFECT” MACRO UNCERTAINTY WILL KEEP GOLD, BITCOIN TRENDING

Further potential to prompt more of gold’s market cap to melt into crypto lies in the growing security threat across the globe. In Hong Kong, the wealthy are moving their gold offshore. In the United States and the rest of the world, unrest, and protests have led to violence and looting.

Storing assets digitally, instead of physically, could prove to be yet another important reason for gold capital to flow into Bitcoin, further driving the asset’s perfect storm institutional rally – a rally that starts now, or never, according to the types of investor behind the wheel.

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Why Toppling Silver and Gold Prices Could Be Especially Bad for Bitcoin

In March 2020, the stock market dragged cryptocurrencies down to their Black Thursday bottom. Since then, however, soaring gold and silver prices have helped restore interest in Bitcoin and altcoins. These hard, digitally scarce assets are expected to perform similarly to precious metals due to similar supply attributes. Still, it also could cause a disastrous crash in crypto as a result. Silver and Gold Rally Ready For Pullback And Dollar Stages Overdue Recovery The dollar […]

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In March 2020, the stock market dragged cryptocurrencies down to their Black Thursday bottom. Since then, however, soaring gold and silver prices have helped restore interest in Bitcoin and altcoins.

These hard, digitally scarce assets are expected to perform similarly to precious metals due to similar supply attributes. Still, it also could cause a disastrous crash in crypto as a result.

Silver and Gold Rally Ready For Pullback And Dollar Stages Overdue Recovery

The dollar has been in steady decline, with top financial market analysts from the likes of Goldman Sachs and more calling for its eventual demise. The once almighty dollar is at risk of losing its global reserve currency status, and it has caused a domino effect across the global finance market.

RELATED READING | GOLDMAN CHIEF THAT SLAMMED BITCOIN SAYS GOLD HAS NO ROLE FOR CLIENTS

Stocks have stayed relatively stagnant, waiting for news of the coming stimulus before reacting. Ahead of the United States government finalizing what the next round of stimulus entails, hard assets like gold, silver, and Bitcoin exploded over the last couple of weeks.

Gold set a new all-time high price record, and silver tapped nearly $30 an ounce. Investors flocked to these safe-haven assets with scarce supplies ahead of more money supply entering the market.

gold and silver chart

Silver and Gold Comparison | Source: TradingView

But the dollar is preparing a rebound, reaching the lowest level in two years and a point in sentiment in which reversals have occurred in the past. Various technical signals also suggest a resurgence in the global reserve currency is due.

It may be promoting profit-taking in silver and gold that could cause a short to medium-term pullback. And if crypto-assets like Bitcoin and altcoins remain correlated with precious metals, silver and gold toppling now could be disastrous for the asset class just getting started on a new bull run.

Bitcoin, Ethereum, XRP, and Other Altcoins May Fall If Precious Metals Melt Down

When gold set its record and silver soared, Bitcoin and major altcoins followed. The leading cryptocurrency by market cap breached above $10,000 and, in a flash, rocketed to $12,000. Ethereum is up over 200% year to date, and XRP, a poor market performer, saw a 45% weekly gain.

Altcoins especially are performing well, acting as the silver to Bitcoin as digital gold. And with these assets behaving similarity and sharing similar economics, the two classes of distinctly different assets could all fall together against the dollar.

gold silver bitcoin altcoins crypto

Bitcoin, Altcoins, Silver, and Gold Comparison | Source: TradingView

Layering the same gold versus silver chart from above with Bitcoin and the total altcoin market cap shows an uncanny resemblance between them all.  And although they are standing united, the only thing divided if they fall together will be any recent returns not already locked in for profit.

RELATED READING | WHY SILVER’S PERFECT STORM SURGE WON’T SPILL INTO CRYPTO

Is the gold and silver rally coming to a halt? And if so, will the crypto market feel the meltdown of these precious metals?

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