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Bitcoin Price Prediction: BTC/USD Drops Under $10k; Can This Really Be for Bulls?

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BTC/USD has dropped lower losing the cost amount that was $10,000 that was crucial.

BTC/USD Extended Trend: Bullish (Daily parade )

Essential amounts:

Support Amounts: $9,000, $8,800, $8,600

BTCUSD – Daily Chart

Since BTC/USD adheres into the southeast, the cryptocurrency traded as low as $9,583, falling almost 4.64% in the neighborhood shirt at $10,318 seen earlier now. Only a couple of days before, Bitcoin (BTC) was changing hands for about $ 9,500; the simple fact that the cryptocurrency stays at $9,900, over the ever-important $9,500 degree, indicates bulls still stay in control. In the time of writing, BTC/USD proceeds to narrow down to $9,500. Taking a technical image utilizing the graph obviously shows the downtrend.

The bulls are fighting to hold a few significant supports around $9,600. The cost is very likely to last lower under the $9,200 and $9,100 support amount if there’s a downside break under the $9,500 service amount, the purchase cost could reevaluate the $9,400 service amount because the yields are pushing the bulls to comply with the tendency and there’s a danger of a sharp decrease to $9,000, $8,800 and $8,600 service amounts after the economy follows the downward tendency.

Furthermore, the sector is currently deciding on the 21-day and 9-day moving averages, and in which the buyers are expecting a rally. The $ and $10,500 10,700 levels may play outside as the resistances that are closest if the amount that is 10,000 holds. But the cost might be taken by a spike to $11,000 if the bulls can push the purchase cost over the averages. But the RSI (14) is diving beneath the 53-level.

Bitcoin’s cost is trading under the 9-day and 21-day moving averages about $9,653 after rebounding from $9,287 in now ’s trading. Taking a look at the 4-hour graph we can observe that the sparks are stepping back in the marketplace, however, the bulls are making attempt to defend the 9,500 support. The 9,200 support degree and below will get involved if the aid violates.

BTCUSD – 4 Hour Chart

In the event additional attempt is put-ined by the buyers and energize the marketplace, we can anticipate a immunity level. Breaking up the immunity that is above-mentioned can cause the immunity to be reach by the bulls over and of 10,400. More sothe RSI (14) is all about crossing over the 40-level, more bearish signs may resurface from the industry soon.

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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