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Tag: BTCUSD

  • Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

    Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services

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    According to Bloomberg, Coinbase Global has recently experienced a change in leadership within its custody division. The departure of Aaron Schnarch, former CEO of Coinbase Custody, has been confirmed by a spokesperson, who also revealed that Schnarch was replaced by Rick Schonberg in August.

    Per the report, the transition aligns with Coinbase’s efforts to offer services to applicants of spot Bitcoin (BTC) exchange-traded funds (ETFs).

    Coinbase Affirms Readiness For Bitcoin ETF Approval

    Rick Schonberg, who joined Coinbase in 2021, aims to provide experience to his new role, having previously worked at reputable financial institutions such as Goldman Sachs, State Street, and Tagomi, according to Bloomberg. 

    Coinbase on the other hand, has emerged as the preferred choice for custodial services among Bitcoin ETF applicants, including industry giants like BlackRock, Franklin Templeton, and Grayscale Investments.

    Custody services play a crucial role for potential managers of spot Bitcoin ETFs, as investors rely on these providers to securely safeguard their digital tokens.

    Notably, a Coinbase spokesperson emphasized the company’s preparedness for ETF approval, stating to Bloomberg: 

    We have extensively prepared for ETF approval. Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.

    Coinbase Custody, operating as a trust company, falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche.

    Countdown To Historic Decision

    The race to obtain regulatory approval for the first ETF directly investing in the largest cryptocurrency, Bitcoin, is entering a critical phase. 

    The US Securities and Exchange Commission (SEC) faces a deadline of January 10 to decide whether to approve a spot Bitcoin ETF application submitted by ARK Investment Management, led by Cathie Wood, and 21Shares, along with potentially other similar filings.

    Overall, the departure of Aaron Schnarch and the subsequent appointment of Rick Schonberg within Coinbase Custody highlight the company’s strategy to the growing demand for custodial services from Bitcoin ETF applicants. 

    With the potential approval of spot Bitcoin ETFs on the horizon, the industry eagerly awaits the SEC’s decision, which will have far-reaching implications for the adoption and mainstream acceptance of cryptocurrencies.

    The 1-day chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSDT on TradingView.com

    Bitcoin, the largest cryptocurrency in the market, is currently trading at $42,100, representing a 1.1% decline over the past 24 hours. 

    In recent weeks, BTC’s price has been consolidating above $40,000, exhibiting sideways movement since the beginning of December. However, it has achieved a notable gain of over 11% in the last 30 days.

    It remains to be seen how the price of BTC will react to the potential approval of these index funds by the largest asset managers in the world, and what other impact it will have on the overall crypto market.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Record Crypto Options Volume Expires Pre-Bitcoin ETF Deadline: Analyzing BTC And ETH Reactions

    Record Crypto Options Volume Expires Pre-Bitcoin ETF Deadline: Analyzing BTC And ETH Reactions

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    The recovery of the overall crypto market this year has spurred a surge in the digital-asset derivatives market as institutional investors seek exposure to the crypto space. 

    According to a recent Bloomberg report, the deadline for US regulators to approve or reject Bitcoin (BTC) exchange-traded funds (ETFs) has prompted traditional investors to turn to crypto options and futures, leading to unprecedented trading volumes.

    Crypto Options Trading Hits Record High

    Before the options expiry on Friday morning, crypto options trading volume reached a new all-time high, with options worth a notional value of $11 billion, as highlighted by Bloomberg. Of this total, Bitcoin contracts accounted for $7.7 billion, while Ethereum (ETH) options represented $3.5 billion.

    Despite the expiration of many options, the impact on the major cryptocurrencies has been limited.  With its strong support floor at $42,000, Bitcoin has maintained its position for a potential uptrend once bullish momentum returns and buying pressure increases. 

    Over the past 24 hours, Bitcoin has traded within the same range as the previous day, at $42,200, experiencing only a 0.4% decline. Nevertheless, Bitcoin has yet to fully recover from its 3.4% drop over the past seven days.

    In contrast, ETH was hit by the expiration of options contracts. Ethereum, the second-largest cryptocurrency on the market, fell more than 2%. EHT dropped to $2,316 after hitting an annual high of $2,445 on Thursday.

    However, while heightened trading activity may accompany the expiration of options, it is unlikely to impact spot market prices, according to Luuk Strijers significantly, Deribit’s chief commercial officer. 

    Strijers notes that clients are rolling their positions to 2024 expiries, and additional activity is anticipated after the expiry. The focus of attention and trading activity will primarily be on the impending ETF decision, Bloomberg notes.

    Surge From Traditional Asset Managers 

    The cryptocurrency market has undergone a strong rally this year, with Bitcoin surging nearly 160% following a turbulent 2022 marked by industry scandals and price declines. 

    The recovery has been fueled partly by the optimism surrounding the potential approval of spot Bitcoin ETFs, which would attract a broader range of investors to the asset class.

    Ryan Kim, head of derivatives at digital-asset prime brokerage FalconX, highlights the growing participation from crossover macro accounts, referring to large traditional asset managers allocating a small percentage of their portfolios to cryptocurrencies and crypto-focused hedge funds.

    In addition, according to Bloomberg, perpetual futures, a favored tool for leveraging crypto trades, are trading at a significant premium compared to spot prices, indicating rising demand for such products.

    Overall, the surge in the cryptocurrency derivatives market, driven by options expiry and the pending decision on Bitcoin ETFs, reflects the growing interest of institutional investors in the crypto space. 

    The record-breaking trading volumes and increased participation from traditional asset managers highlight the evolving landscape of digital assets. 

    As the market awaits the regulatory verdict on Bitcoin ETFs, it remains to be seen how these developments will shape the future trajectory of the crypto market and its integration with traditional financial systems.

    Crypto

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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  • Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

    Major Acquisition: MicroStrategy Grows Bitcoin Reserves By 14K BTC Ahead Of ETF Approval

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    MicroStrategy (MSTR), a prominent Bitcoin holding company, has once again expanded its BTC holdings with a substantial purchase of 14,620 Bitcoin, amounting to a staggering $615.7 million. 

    The former CEO of the American business intelligence (BI) firm announced the acquisition, highlighting the company’s continued confidence in Bitcoin’s long-term potential. 

    With the potential approval of Bitcoin spot exchange-traded funds (ETFs) on the horizon, MicroStrategy aims to capitalize on the positive impact on BTC’s price and the company’s profitability in the leading cryptocurrency market.

    MicroStrategy Stock Skyrockets 337%

    According to a CNBC report, MicroStrategy’s stock has experienced a remarkable 337% surge in 2023, making it one of the top gainers among US companies valued at $5 billion or more. 

    This success surpasses the rallies of industry giants like Nvidia and Meta. Unlike its tech peers, MicroStrategy’s appeal to investors stems primarily from its Bitcoin holdings. 

    The 1-day chart shows MSTR’s continuous uptrend. Source: MSTR on TradingView.com

    MicroStrategy’s market capitalization currently stands at $8.5 billion, with a staggering 90% directly tied to its Bitcoin holdings. The company’s stock price closely mirrors the performance of Bitcoin, with significant fluctuations in response to the cryptocurrency’s price movements. 

    Per the report, in 2022, when Bitcoin experienced a 64% decline, MicroStrategy’s stock plummeted by 74%. Despite the substantial gains achieved this year, MicroStrategy shares are still below their peak levels in 2021, during the cryptocurrency’s peak.

    Michael Saylor’s Vision

    MicroStrategy’s decision to invest in Bitcoin dates back to July 2020, when the company recognized the potential of alternative assets, including digital currencies. 

    At that time, MicroStrategy had a market capitalization of around $1.1 billion, primarily driven by its software business, which has been shrinking since 2015. Co-founder Michael Saylor, who was CEO then, saw an opportunity to put the company’s idle cash reserves to work, considering low interest rates and the need for diversification.

    Saylor’s conviction in Bitcoin as a digital form of gold led MicroStrategy to prioritize Bitcoin purchases over equities and precious metals. This strategic move exposed investors to Bitcoin indirectly through MicroStrategy’s stock. 

    Saylor, who transitioned to executive chairman, remains optimistic about Bitcoin’s future, expecting the bull market to continue into the next year. Despite its growing popularity, Saylor emphasized that Bitcoin still represents only a fraction of global capital allocation, with ample room for further growth.

    As of December 27, 2023, MicroStrategy’s latest purchase adds to its already impressive Bitcoin portfolio, bringing the total holdings to 189,150 BTC. 

    The company has invested approximately $5.9 billion, with an average purchase price of $31,168 per Bitcoin. These strategic acquisitions position MicroStrategy as a major player in the crypto space, aligning its interests with the anticipated growth and adoption of Bitcoin.

    Microstrategy
    The daily chart shows BTC’s sideways price action over the past 24 hours. Source: BTCUSTD on TradingView.com

    The current market data shows that Bitcoin is trading at $42,900, reflecting a marginal 0.5% increase over the past 24 hours. The cryptocurrency briefly dipped below its critical support level of $42,000 but has since regained its position.

    The market is anticipating the potential approval of the Bitcoin Spot ETF applications between January 5 and 10, 2024. 

    This development holds significant promise for Bitcoin, as it could drive the cryptocurrency’s price well beyond $50,000, establishing a new yearly high and edging closer to its historical peak.

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Crypto Trading Firm Expects Bitcoin To Crash To $36,000, Here’s Why

    Crypto Trading Firm Expects Bitcoin To Crash To $36,000, Here’s Why

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    A recent market update by the trading firm QCP Capital has provided insights into how Bitcoin’s price would react if a Spot Bitcoin ETF gets approved in January. The firm predicts that there could be a major retracement before any move to the upside.

    Bitcoin Could Retrace To $36,000

    QCP Capital predicts that Bitcoin could retrace to around $36,000 before an uptrend resumes. At the same time, they expect Bitcoin to face a topside resistance between the $45,000 and $48,500 region. These projections are based on what they expect to happen if the Securities and Exchange Commission (SEC) approves Spot Bitcoin ETFs in January.

    QCP Capital is of the opinion that the actual demand for these investment funds might fall short of market expectations at the beginning. If so, it set things up for the classic ‘sell the news’ scenario, which would cause Bitcoin’s price to dump.

    The trading firm had previously opined that Bitcoin could hit its all-time high of $69,000 if these Spot Bitcoin ETFs saw enough capital upon launching. Then, they also warned that approval could end up being a sell-the-news event if inflows into these funds were below par. Now, they seem to be suggesting that the latter is likely to happen.

    However, they don’t expect that Bitcoin will stay down for too long as they are confident that Bitcoin’s recent resurgence will continue at some point. They estimate that this will likely happen after a few weeks, especially as traders position for a strong rally ahead of the next big thing – the Bitcoin Halving. This event is projected as what will spark the next bull run.

    BTC price at $43,278 | Source: BTCUSD on Tradingview.com

    All Attention Will Turn To Ethereum

    Ethereum might be the next big play once the pending Spot Bitcoin ETFs are approved. QCP Capital foresees the market’s anticipation, quickly turning to the Ethereum Spot ETFs. Just like with the Spot Bitcoin ETFs, a number of asset managers have also filed to launch a fund that offers direct exposure to Ethereum.

    In anticipation of a potential approval of the Ethereum Spot ETFs, some crypto investors could move their capital from BTC to ETH ahead of an expected rally in Ethereum’s price. The trading firm stated that they are “leaning against very strong support in the ETHBTC cross at the 0.051 level.”

    QCP Capital, however, believes that any approval of an Ethereum Spot ETF is still “many months away.” In the meantime, they expect that Ethereum’s price will notable rallies based on such speculations. This could be something similar to what happened with Bitcoin, as the flagship cryptocurrency enjoyed significant rallies on the back of the Spot BTC approval rumors.

    Featured image from Freepik, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Bitcoin Millionaires Rise By 246% In 2023, Here's How Many There Are

    Bitcoin Millionaires Rise By 246% In 2023, Here's How Many There Are

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    Bitcoin’s resurgence in 2023 has created wealth for many crypto investors, as there has been a significant rise in the number of Bitcoin millionaires. These Bitcoin millionaires happen to be wallet addresses whose BTC holdings equal $1 million or above. 

    Number Of Bitcoin Millionaires

    According to data from BitInfoCharts, there are currently 97,497 Bitcoin millionaires. This represents a significant increase from the beginning of the year when the number of wallet addresses equal to $1 million and above stood at 23,795, according to data from Glassnode. 

    This development is attributed to the resurgence in Bitcoin’s price this year, with the crypto token seeing over 158% gain year-to-date. At the beginning of the year, Bitcoin’s price stood at just over $16,000. However, as the flagship cryptocurrency’s price began to rise, so did its number of millionaires. 

    Further data from BitInfoCharts breaks down these Bitcoin millionaires into two categories. The number of addresses that are greater than $1 million stands at 90,040, while 7,457 wallet addresses hold $10 million or more. 

    Meanwhile, other addresses below $1 million have also seen enormous profits. Market intelligence platform Santiment recently reported that 89% of the total Bitcoin supply is in profits. 2024 could be a better year for these addresses, considering that the Bull market is expected to kickstart next year. 

    In the meantime, some of these Bitcoin millionaires and persons with significant holdings seem to be taking profits. NewsBTC recently reported how Bitcoin whales had sold around 50,000 BTC which equals to about $2.2 billion. 

    BTC price retraces to $42,600 | Source: BTCUSD on Tradingview.com

    About Two Weeks To Go For Spot ETFs

    One of the biggest moments for Bitcoin and the crypto industry could come as early as January 10. This is around the period when experts are predicting that the Securities and Exchange Commission (SEC) will approve the pending Spot Bitcoin ETFs, and there is optimism in the air as many actions point to an approval happening. 

    Crypto stakeholders have had their eyes fixed on developments revolving around these Spot Bitcoin ETFs. The reason isn’t farfetched, as these funds could unlock fresh liquidity into the Bitcoin ecosystem. Trading firm QCP Capital had highlighted this as the catalyst to Bitcoin hitting its all-time high (ATH) and possibly new ATHs. 

    At the same time, people like the former CEO of crypto exchange BitMEX, Arthur Hayes, will be hoping that these ETFs don’t achieve much success as he says they could lead to Bitcoin’s downfall. 

    At the time of writing, Bitcoin is trading at around $42,678.76, down over 1% in the last 24 hours according to data from CoinMarketCap.

    Featured image from Crypto News, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Bitcoin Price Eyes Fresh Bullish Breakout, Can BTC Make It To $45K?

    Bitcoin Price Eyes Fresh Bullish Breakout, Can BTC Make It To $45K?

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    Bitcoin price corrected gains and tested the $42,650 zone. BTC is again attempting a fresh increase and eyeing a move above the $43,750 resistance.

    • Bitcoin found support above the $42,500 zone and started a fresh increase.
    • The price is trading below $43,550 and the 100 hourly Simple moving average.
    • There is a connecting bearish trend line forming with resistance near $43,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could start a fresh increase if it clears the $43,750 and $44,300 resistance levels.

    Bitcoin Price Holds Ground

    Bitcoin price failed to clear the $44,300 resistance zone and started a downside correction. BTC declined below $43,500 level, but the bulls were active above the $42,500 zone.

    A low was formed near $42,860 and the price is now attempting a fresh increase. There was a move above the $43,200 resistance zone. The price climbed above the 50% Fib retracement level of the downward move from the $44,429 swing high to the $42,680 low.

    Bitcoin is still trading below $43,550 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance near $43,600 on the hourly chart of the BTC/USD pair.

    The trend line is close to the 61.8% Fib retracement level of the downward move from the $44,429 swing high to the $42,680 low. On the upside, immediate resistance is near the $43,550 level. The first major resistance is forming near the trend line.

    Source: BTCUSD on TradingView.com

    A close above the $43,600 resistance could start a decent move toward the $44,300 level. The next key resistance could be near $45,000, above which BTC could rise toward the $46,500 level. Any more gains might send the price toward $47,200.

    Another Decline In BTC?

    If Bitcoin fails to rise above the $43,600 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $43,000 level.

    The next major support is near $42,600. If there is a move below $42,600, there is a risk of more losses. In the stated case, the price could drop toward the $42,000 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now losing pace in the bearish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

    Major Support Levels – $43,000, followed by $42,600.

    Major Resistance Levels – $43,600, $44,000, and $44,300.

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Aayush Jindal

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  • Bitcoin Price Dips On The Christmas Day But Dips Still Attractive

    Bitcoin Price Dips On The Christmas Day But Dips Still Attractive

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    Bitcoin price failed to extend gains above the $44,300 resistance. BTC is now moving lower and might find bids near the $42,400 support zone.

    • Bitcoin started a downside correction from the $44,300 resistance zone.
    • The price is trading below $43,500 and the 100 hourly Simple moving average.
    • There is a key declining channel forming with support near $42,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could start a fresh increase from the $42,400 support zone.

    Bitcoin Price Tops Again

    Bitcoin price attempted a fresh increase above the $43,500 resistance zone. BTC climbed above the $44,000 level, but the bears were active near the $44,300 zone.

    A high was formed near $44,300 and the price started a fresh decline. The price declined below the $44,000 and $43,500 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high.

    Bitcoin is now trading below $43,500 and the 100 hourly Simple moving average. There is also a key declining channel forming with support near $42,850 on the hourly chart of the BTC/USD pair.

    The pair is now testing the channel support, below which it might accelerate lower toward $42,400 or the 50% Fib retracement level of the upward move from the $40,515 swing low to the $44,300 high. If the bulls protect the channel support, there might be a fresh increase.

    On the upside, immediate resistance is near the $43,500 level. The first major resistance is forming near $44,000 and $44,300. A close above the $44,300 resistance could start a strong rally and the price could even clear the $45,000 resistance.

    Source: BTCUSD on TradingView.com

    The next key resistance could be near $46,500, above which BTC could rise toward the $47,200 level. Any more gains might send the price toward $48,000.

    More Losses In BTC?

    If Bitcoin fails to rise above the $43,500 resistance zone, it could continue to move down. Immediate support on the downside is near the $42,800 level.

    The next major support is near $42,400. If there is a move below $42,400, there is a risk of more losses. In the stated case, the price could drop toward the $41,200 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now gaining pace in the bearish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

    Major Support Levels – $42,400, followed by $41,200.

    Major Resistance Levels – $43,500, $44,300, and $45,000.

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Aayush Jindal

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  • Bitcoin Downfall: Arthur Hayes Reveals What Will Make The Pioneer Crypto Fail

    Bitcoin Downfall: Arthur Hayes Reveals What Will Make The Pioneer Crypto Fail

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    The former CEO and co-founder of crypto exchange BitMEX, Arthur Hayes, has shared his thoughts on what could lead to Bitcoin’s downfall. His recent comment also echoes the reservation that the crypto founder has about the potential launch of Spot Bitcoin ETFs.

    TradFi Could Lead To Bitcoin’s Downfall

    In his last article for the year, Hayes stated that TradFi asset managers would “completely destroy Bitcoin” if the ETFs managed by them were a huge success. He made this assertion as he alluded to Bitcoin’s uniqueness. Hayes mentioned that the foremost crypto token is different from “every other monetary instrument humanity has ever used.”

    Due to Bitcoin’s uniqueness, Hayes believes that it wasn’t created to be in the hands of these asset managers. As such, they could end up destroying the crypto token, especially in a world where the world’s largest asset managers end up holding all the Bitcoin in circulation. If that were to happen, these firms would end up storing these crypto tokens, which shouldn’t be so in Hayes’ opinion.

    The BitMEX co-founder noted that Bitcoin “only exists if it moves” and that it will “die” if it isn’t used. His stance stems from the fact that he sees Bitcoin more as an asset that is meant to be actively traded rather than just being a store of value. He also highlighted the fact that the Bitcoin network would also die if this were to happen.

    Miners are known to earn transaction fees from the network being utilized. However, if these tokens were no longer traded but all stored up, these miners would have no choice but to wind up their operations. Without these miners, “the network dies, and Bitcoin vanishes,” Hayes asserted. 

    BTC maintains $43,000 level | Source: BTCUSD on Tradingview.com

    Hayes’ Reservations About A Spot Bitcoin ETF

    Arthur Hayes’ latest comment comes ahead of a potential approval of the pending Spot Bitcoin ETF applications. The former BitMEX CEO has previously made his reservations known about these funds and their issuers. Then, he mentioned that these TradFi institutions weren’t bullish on Bitcoin but were simply making this move to become “crypto gatekeepers.”

    Hayes also went as far as to discuss how these firms’ interest in Bitcoin goes against Satoshi’s vision of a decentralized system. However, unlike Hayes, some are looking to look at the bright side and how institutional interest in the foremost cryptocurrency can help with mainstream adoption. 

    Bloomberg Analyst Eric Balchunas had once touched on the importance of these Spot Bitcoin ETFs, especially considering that many could just choose to hold Bitcoin instead. In his opinion, these ETFs are important because of the convenience they provide investors. Meanwhile, others are excited about the amount of capital that could flow in when these ETFs get approved. 

    Featured image from Forkast News, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • MicroStrategy's Michael Saylor Calls Bitcoin An Institutional-Grade Asset Destined For $1 Million

    MicroStrategy's Michael Saylor Calls Bitcoin An Institutional-Grade Asset Destined For $1 Million

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    Microstrategy’s Executive Chairman and Co-founder, Michael Saylor, is one who always uses every opportunity to heap praises on the flagship cryptocurrency Bitcoin. Once again, he didn’t disappoint, as BTC was the center of discussion in his latest media appearance. 

    Bitcoin Going To $1 Million

    In an interview with CNBC, Michael Saylor stated that Bitcoin is going to $1 million if it isn’t going to “zero.” He noted that the “big question” in relation to BTC’s potential was whether or not the digital asset was legitimate. According to him, if Bitcoin is a “legitimate institutional asset,” then everybody is “under-allocated” to it. 

    His comment about Bitcoin possibly hitting $1 million seems to stem from his belief that Bitcoin as an asset is still untapped, as he expects many institutional players to get in on the crypto token. He noted how 99.9% of the world’s capital is currently tied to other global assets like bonds, real estate, stocks, and precious metals. However, expects that to change soon enough.

    That change, he believes, will stem from education about digital assets. From that, Saylor says more and more people will realize that they ought to be allocating more and more of their capital to digital assets. Interestingly, he labeled BTC as a “digital transformation of capital,” alluding to its disruptive nature. 

    These institutional players could well be allocating more of their capital to BTC as early as 2024. The new rule by the Financial Accounting Standards Board (FASB) recently opened the door for firms to include cryptocurrencies like Bitcoin on their balance sheet. As such, we could see other tech firms adopt Microstrategy’s “Bitcoin Strategy.”

    BTC price reclaims $43,000 | Source: BTCUSD on Tradingview.com

    BTC Is Going Foward In 2024

    Saylor also discussed several macro factors that he considers bullish for Bitcoin going into the new year. These factors include the potential approval of a Spot Bitcoin ETF, the loosening of monetary policies, and wider BTC adoption in countries suffering from inflation. 

    He also alluded to the BTC Halving event, which he believes is also bullish for the Bitcoin ecosystem. All these factors form a “confluence of very bullish milestones,” which Saylor projects are going to happen over the next six months.  

    Saylor will undoubtedly be fulfilled when his company’s Bitcoin strategy has panned out as Microstarategy is currently in profit with its Bitcoin acquisitions. The company’s stocks are also flying high as it recently hit a 2-year high, thanks in part to its BTC exposure.

    At the time of writing, BTC is currently trading at around $43,000, up over 4% in the last 24 hours according to data from CoinMarketCap. 

    Featured image from Yahoo Finance, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Crypto Analyst Who Predicted Bitcoin 2023 Bull Run Releases New Target

    Crypto Analyst Who Predicted Bitcoin 2023 Bull Run Releases New Target

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    A crypto analyst who correctly predicted that Bitcoin would hit the heights it is currently enjoying has once again given projections as to Bitcoin’s future trajectory. As part of his predictions, he highlighted the best and worst-case scenarios for the flagship cryptocurrency going forward. 

    Bitcoin Could Ride To $60,000

    In a live stream on his TechnicalRoundup YouTube channel, crypto analyst DonAlt noted that Bitcoin could rise to the resistance level of $60,000 based on historical patterns. The analyst had highlighted a bullish setup on the quarter timeframe, which had occurred both in 2018 and 2021. He also mentioned that the current quarterly is strikingly similar to those periods. 

    The analyst believes that the road to $60,000 would be fuelled by the Spot Bitcoin ETF rumors (as has been the case so far) before an approval possibly comes in January. However, it is not all good news from the $60,000 price level, as DonAlt believes that the approval will be a ‘sell-the-news’ event.

    If that were to be the case, he predicts that Bitcoin will drop to $35,000 before it trends upward afterward. He also provided a bearish side to the quarterly timeframe setup as he suggested that this is more likely to happen as it is more “accurate.”  For the bearish setup, he projects a close below the resistance level of $35,000. 

    He stated that this would suggest a bearish restest and that investors could expect lower prices as a result of this. 

    BTC price looks to retest $43,000 | Source: BTCUSD On Tradingview.com

    Why An ETF Approval Will Be A ‘Sell-The-News’ Event

    DonAlt further elaborated on his stance of a possible Spot Bitcoin ETF approval in January being a ‘sell-the-news’ event. He explained that the reason for this belief is because Bitcoin has ridden high (up about 3x from the bottom) on the back of these rumors. As such, this would naturally suggest that it is already priced in.

    He further noted that he would have had a different opinion if Bitcoin had, for example, traded at around $25,000 and then an approval came. He believes that would have been an easy trade as the flagship cryptocurrency will undoubtedly fly high on the back of such development. 

    Renowned Economist Peter Schiff shares similar sentiments as he once noted how Bitcoin has rallied significantly on the back of the ETF rumor. According to him, there will be no more “good news” to spark a Bitcoin rally once the pending Spot Bitcoin ETFs are approved.

    However, trading firm QCP Capital recently highlighted what could prevent this from happening. The firm stated that a significant amount of inflows into these ETFs in the first few weeks of trading could prevent the classic sell-the-news event from happening. If these funds see enough liquidity, they project that Bitcoin could hit its all-time high (ATH) of $69,000 instead. 

    Featured image from The Block, chart from Tradingview.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Scott Matherson

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  • Bitcoin Deja Vu: Capital Inflows Mirror Pre-2021 Bull Run Momentum

    Bitcoin Deja Vu: Capital Inflows Mirror Pre-2021 Bull Run Momentum

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    On-chain data shows the cryptocurrency capital inflows currently look similar to December 2020, right before Bitcoin rallied from $18,000 to $65,000.

    Bitcoin & Ethereum Are Getting $19.7 Billion In Capital Injections Currently

    As explained by analyst Ali in a new post on X, Bitcoin and Ethereum are receiving a large amount of capital inflows currently. To showcase these positive flows, the analyst has referred to the “BTC + ETH Net Position Change” indicator from the on-chain analytics firm Glassnode.

    What this metric does is that it keeps track of the 30-day change taking place in the combined realized cap of these top two cryptocurrencies. The “realized cap” here basically refers to the total amount of capital (in USD) that investors have used to purchase a given asset.

    As such, the metric’s net position change could provide hints about whether the total money invested into the coin in question has gone up or down during the past month.

    Now, here is a chart that shows the trend in this indicator for Bitcoin and Ethereum over the past few years:

    The value of the metric appears to have been going up in recent days | Source: @ali_charts on X

    As displayed in the above graph, the Bitcoin + Ethereum Net Position Change has been inside the positive territory recently and has only been climbing up. The trend naturally makes sense, as both of the assets have registered some sharp rises during the past month.

    Currently, the indicator has a value of $19.7 billion. As Ali has pointed out, “This is around the same capital inflow we saw back in December 2020 before BTC surged from $18,000 to $65,000!”

    In the same chart, data for two other metrics is also shown. The first is the “Stablecoin Net Position Change,” which, as its name suggests, keeps track of the monthly inflows and outflows for the major USD stablecoins in the sector.

    Unlike Bitcoin and Ethereum, though, this metric doesn’t make use of the realized cap, but simply the supply of the stables. This is obviously due to the fact that these coins have mostly the same value at all points, so the realized cap wouldn’t be any different from the market cap (which itself is equivalent to the supply as the price is $1).

    From the chart, it’s visible that the stablecoins have also enjoyed positive inflows recently. This means that all three major asset classes in the sector, Bitcoin, Ethereum, and the stables, are receiving capital injections currently.

    Most of the capital inflows and outflows towards the cryptocurrency sector happen through these three. The altcoins only receive their capital through a rotation from these core assets.

    Thus, the stablecoins and top two cryptocurrencies simultaneously enjoying positive inflows have historically been a very bullish combination for the sector as a whole. This constructive combination didn’t form for most of this year but finally has during this latest leg in the rally.

    The last indicator on the chart keeps track of the net incomings and outgoings from the sector as a whole by simply summing up the netflows for BTC + ETH and the stables. As is apparent, this metric also has a value similar to December 2020 at the moment.

    Looking at Bitcoin’s historical performance following December 2020, it could mean that the BTC price is set for another price surge going forward.

    BTC Price

    Bitcoin had recovered above the $43,000 level just earlier, but it appears the coin has seen a setback as it’s now once again trading below the mark.

    Bitcoin Price Chart

    Looks like the price of the asset has shot up during the past day | Source: BTCUSD on TradingView

    Featured image from Shutterstock.com, charts from TradingView.com, Glassnode.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Keshav Verma

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  • Bitcoin Price Surges On Positive News: FASB's Fair Value Recognition Reignites $42,000 Support Recovery

    Bitcoin Price Surges On Positive News: FASB's Fair Value Recognition Reignites $42,000 Support Recovery

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    The Bitcoin price experienced a notable downturn as selling pressure intensified, resulting in a decline of over 4% from its annual peak of $44,500. This downturn was further exacerbated by the loss of the crucial $42,000 support level. 

    However, the largest cryptocurrency in the market received a substantial uplift from the US Financial Accounting Standards Board (FASB), which has spurred a rapid 1.8% surge in BTC’s value within the past two hours. As a result, Bitcoin has successfully recovered the $42,000 support level.

    FASB’s Fair Value Recognition Brings Clarity To BTC?

    In a significant development for the cryptocurrency industry, the FASB has announced new accounting rules that require companies, including prominent entities like MicroStrategy, Tesla, and Block, to measure their cryptocurrency holdings at fair value. 

    These rules, set to go into effect in 2025, allow businesses to capture the real-time highs and lows of their Bitcoin and Ethereum (ETH) assets, providing a more accurate representation of their holdings.

    Under the previous accounting practices, companies were only allowed to record the lows, resulting in a one-sided accounting treatment that often led to reduced valuations and diminished earnings for businesses holding cryptocurrencies. The highly volatile nature of crypto values further exacerbated the issue.

    The FASB’s new rules address these concerns by mandating the recording of cryptocurrencies at fair value, a measurement technique aimed at reflecting the most up-to-date value of these assets. 

    Changes in fair value will now be recorded in net income, allowing companies to account for fluctuations in the value of their crypto holdings more comprehensively.

    The positive news for BTC lies in the fact that the new FASB rules provide greater transparency and accuracy in assessing the true value of cryptocurrency assets. By capturing fluctuations in fair value, companies will have a more realistic representation of their holdings, enabling better decision-making and financial reporting.

    Bitcoin, being the most widely recognized and valuable cryptocurrency, stands to benefit significantly from these changes. The recognition of its fair value allows companies to showcase the true worth of their BTC holdings, potentially boosting investor confidence and attracting further institutional interest.

    Turbulent Times Ahead For Bitcoin Price

    Following these recent developments, the Bitcoin price has successfully rebounded to previously lost levels, demonstrating heightened volatility after a brief consolidation phase just below $42,000.

    However, according to CoinGlass’ liquidation heatmap, Bitcoin’s price may be facing further volatility that could lead to a significant amount of liquidation of both long and short positions. 

    BTC’s 3-day liquidation heatmap. Source: CoinGlass on X.

    The liquidation heatmap from CoinGlass highlights substantial indications of liquidation leverage exceeding $200 million both above and below the current Bitcoin price. 

    Of particular concern is the thick liquidation leverage below $41,000, as seen in the chart above, which, combined with the prevailing trend, could become a probable target for the Bitcoin price in the coming days.

    Conversely, following BTC’s correction, additional liquidation leverage has emerged in CoinGlass’s heatmap, particularly in the $42,000 and $43,000 range of short positions. This added selling pressure has contributed to the retracement of the Bitcoin price.

    This potential scenario suggests a potential price swing up and down before a stable continuation of either the downward or upward momentum. The outcome remains uncertain as to which side will give way first and what prevailing trend will shape the latter part of the year.

    Bitcoin price
    The daily chart shows BTC’s $42,000 support recovery. Source: BTCUSDT on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Bitcoin Price Holds Key Support, Can Bulls Overcome This Key Hurdle?

    Bitcoin Price Holds Key Support, Can Bulls Overcome This Key Hurdle?

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    Bitcoin price dived again and retested the $40,000 support zone. BTC is rising, but it must clear $42,350 to move into a positive zone.

    • Bitcoin is attempting a fresh increase from the $40,000 support zone.
    • The price is trading below $43,600 and the 100 hourly Simple moving average.
    • There was a break above a connecting bearish trend line with resistance near $41,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could gain bullish momentum once it clears the $42,350 resistance zone.

    Bitcoin Price Remains Supported

    Bitcoin price dropped heavily below the $43,500 and $43,200 support levels. BTC even dived below the $41,200 support before the bulls emerged. A low was formed near $39,999 and the price is now attempting a fresh increase.

    The price climbed above the 23.6% Fib retracement level of the downward move from the $44,699 swing high to the $39,999 low. Besides, there was a break above a connecting bearish trend line with resistance near $41,300 on the hourly chart of the BTC/USD pair.

    However, Bitcoin is still trading below $43,600 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $42,000 level. The first major resistance is forming near $42,350. It is near the 50% Fib retracement level of the downward move from the $44,699 swing high to the $39,999 low.

    Source: BTCUSD on TradingView.com

    A close above the $42,350 resistance might start a steady increase. The next key resistance could be near $43,000, above which BTC could rise toward the $44,000 level. A clear move above the $44,000 level could set the pace for a test of $45,000.

    Dips Present Buying Opportunity In BTC?

    If Bitcoin fails to rise above the $42,350 resistance zone, it could start another decline. Immediate support on the downside is near the $41,200 level.

    The next major support is near $40,550, below which the price might test the $40,000 zone. If there is a move below $40,000, there is a risk of a sharp decline. In the stated case, the price could drop toward the $38,500 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now gaining pace in the bearish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.

    Major Support Levels – $41,200, followed by $40,000.

    Major Resistance Levels – $42,400, $43,200, and $44,200.

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    Aayush Jindal

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  • Hold Your Horses: Bitcoin Could Fall Back To Under $38,000, These Analysts Say

    Hold Your Horses: Bitcoin Could Fall Back To Under $38,000, These Analysts Say

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    Over the past 24 hours, the cryptocurrency market has witnessed Bitcoin consolidating its position in the digital financial space.

    Amidst a wider cryptocurrency selloff, Bitcoin offered yet another example of its infamous volatility, plunging sharply toward the $40,000 region.

    The leading cryptocurrency saw an 8% decline to $41,900 before reversing part of the losses and opening Monday’s trading 5% down at $42,090.

    Bitcoin Momentum Could Lose Steam

    CoinGecko’s price updates show that Bitcoin has only shown slight variations over this period, indicating that it is in an equilibrium phase after its recent price spikes.

    The subtle fluctuations in the price of Bitcoin indicate not just a break but also a chance for market players to evaluate the situation as it stands.

    The well-known cryptocurrency trader Josh Olszewicz, who goes by the handle CarpeNoctom on X, completed an empirical study that suggests there is a considerable chance that Bitcoin (BTC) could collapse and possibly drop below the $38,000 mark.

    Based on his analysis of the daily Kijun line—a pivotal technical signal in the world of cryptocurrency trading—Olszewicz maintains a gloomy outlook.

    A crucial medium-term trend indication in cryptocurrency trading is the Kijun Line, which is a component of the Ichimoku Cloud indicator.

    Averaging the highest high and lowest low across 26 periods, it helps traders determine levels of support and resistance as well as the general direction of the trend.

    Bitcoin slightly below the $42K level today. Chart: TradingView.com

    Prices may suggest a bullish or bearish trend depending on whether they are above or below the Kijun Line.

    When Goichi Hosoda created the Ichimoku Cloud in the late 1930s, the Kijun Line was one of the main components.

    Meanwhile, prominent asset management company VanEck has emphasized that Bitcoin’s (BTC) historical performance does not guarantee future outcomes.

    Dark Road Ahead?

    This word of caution is important because VanEck is investigating the possible effects of adding Bitcoin to conventional portfolios, which puts the typical 60/40 investment approach to the test.

    Justin Bennett, another cryptocurrency trader and analyst, is issuing an alert that Bitcoin (BTC) might revers its upward trajectory following another surge.

    Bennett informs his 110,600 X social media followers that Bitcoin may rise one more time before making a correction.

    The analyst provides a chart demonstrating how, on the daily chart, Bitcoin is presently trading inside a sizable ascending channel, with the pattern’s horizontal resistance located at roughly $48,000.

    Based on the trader’s chart, it appears that he believes that after reaching his upside target, Bitcoin will drop below $38,000.

    (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

    Featured image from Pixabay

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    Christian Encila

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  • Bitcoin Price Crashes 8% and Wipes Weekly Gains, Dips Supported?

    Bitcoin Price Crashes 8% and Wipes Weekly Gains, Dips Supported?

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    Bitcoin price started a sharp decline after trading close to $45,000. BTC is down over 8% but the bulls seem to be active above $40,000.

    • Bitcoin is showing a few bearish signs from the $44,699 high.
    • The price is trading below $43,500 and the 100 hourly Simple moving average.
    • There was a break below a key bullish trend line with support near $43,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
    • The pair could find strong buying interest near the $40,000 zone.

    Bitcoin Price Drops Heavily

    Bitcoin price remained in a bullish zone after it broke the $40,000 resistance. BTC climbed higher steadily above the $42,000 and $43,000 levels. The price even rallied above $44,000.

    However, it failed to test the $45,000 resistance. A high was formed near $44,699 and the price started a sharp downside correction. There was a move below the $44,000 level. Besides, there was a break below a key bullish trend line with support near $43,500 on the hourly chart of the BTC/USD pair.

    The pair declined below the 50% Fib retracement level of the upward move from the $39,398 swing low to the $44,699 high. Bitcoin is now trading below $43,500 and the 100 hourly Simple moving average.

    However, the bulls are protecting the $40,000 support and the 76.4% Fib retracement level of the upward move from the $39,398 swing low to the $44,699 high. The price is attempting a recovery wave and facing resistance near the $42,400 level.

    Source: BTCUSD on TradingView.com

    The first major resistance is forming near $43,2000, above which the price might gain bullish momentum and rise toward $44,000. A close above the $44,000 resistance might start a strong upward move. The next key resistance could be near $44,200, above which BTC could rise toward the $45,000 level.

    $40K Is The Key For BTC

    If Bitcoin fails to rise above the $43,200 resistance zone, it could start another decline. Immediate support on the downside is near the $41,200 level.

    The next major support is near $40,500, below which the price might test the $40,000 zone. If there is a move below $40,000, there is a risk of more downsides. In the stated case, the price could drop toward the $38,500 support in the near term.

    Technical indicators:

    Hourly MACD – The MACD is now gaining pace in the bearish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 30 level.

    Major Support Levels – $41,200, followed by $40,000.

    Major Resistance Levels – $42,400, $43,200, and $44,200.

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    Aayush Jindal

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  • Ethereum Rises: ETH Remains Steady At Over $2,300

    Ethereum Rises: ETH Remains Steady At Over $2,300

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    Recent patterns indicate that the impetus fueling Ethereum’s climb is far from diminishing, and the price trajectory of the cryptocurrency has shown resilience. Ethereum may not be as advanced as some of its L1 competitors, but it stands out from the crowd thanks to its large developer community, immense acceptance, and crucial role in DeFi and other blockchain-based applications.

    Ethereum Remains Firm At $2,347

    At the time of writing, ETH was able to keep a strong footing at the $2,300 level, trading at $2,347, nearly unchanged in the last 24 hours, but tallied a 10% increase in the last seven days, data from Coingecko shows.

    There is still a lot of room for profit in the current bull market, even though Ethereum’s price spike hasn’t been as dramatic as other altcoin’s. Size, liquidity, and being the leading platform for smart contracts all contribute to Ethereum’s continued appeal as an investment.

    Ethereum currently trading at $2,341.6 territory. Chart: TradingView.com

    This means that ETH’s price performance could be greatly enhanced by any further market increases. Ethereum, according to technical research, is about to see growth, and it is now testing key resistance levels. Both retail and institutional investors would be interested if the price breaks out above these levels, as it could indicate that the positive trend would continue.

    For the first time in more than a year, Ethereum’s price has moved into a new range. The accumulation patterns seen in several top addresses indicate that this new range has created a chance for persistent price increases.

    Ethereum’s Growing Holdings And 2024 Roadmap

    The most popular Ethereum addresses on exchanges and those outside of them have shown clear patterns of accumulation in the last several months, according to new data from Santiment.

    A large number of top non-exchange addresses have been buying Ethereum at different prices, which has caused their holding volume of ETH to rise steadily and now surpass 54 million.

    At the same time, following their most recent execution layer meeting on December 8, Ethereum developers have laid out a detailed strategy for the network’s future in 2024, including new suggestions, major upgrades, and more.

    Meanwhile, Ethereum is predicted to significantly outpace mega-cap tech stocks. After the Bitcoin miners’ payouts are halved,  investment firm VanEck thinks Ethereum will soar. In the past, this has caused a fresh spike in the price of Bitcoin, with the proceeds going into altcoins.

    Ethereum won’t surpass Bitcoin, despite surpassing large stocks, and what “flippening” rumors claim. It is still believed that Bitcoin will continue to lead in market capitalization even though there is a chance that ETH may gain value in daily transaction volume.

    (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

    Featured image from Shutterstock

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    Christian Encila

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  • Bitcoin Bull Signal Returns: Exchange Supply Hits Lowest Level Since 2017

    Bitcoin Bull Signal Returns: Exchange Supply Hits Lowest Level Since 2017

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    On-chain data has revealed an increasing sentiment of holding Bitcoin among investors. Bitcoin has been on a roll since the start of the month, pushing its price to new yearly highs. At the same time, exchange data from CryptoQuant reveals that the crypto might be gearing up for a sustained bull run. According to the on-chain analytics platform, Bitcoin’s exchange supply, the amount available for purchase on exchanges, has dropped to its lowest levels since 2017 

    Exchange Supply Drops To Lowest Level In Six Years

    The Bitcoin market is flashing a bull signal that correlates with anticipation of spot Bitcoin ETF applications. CryptoQuant’s exchange reserve chart demonstrates that the supply of Bitcoin has been steadily decreasing from centralized exchanges since 2020 when it reached a high of over 3.2 million BTC. The outflow was particularly aggravated in the last quarter of 2022, when the collapse of crypto exchange FTX led to panic and investors started to opt for self-custody in cold wallets. During this period, exchange reserves dropped from 2.512 million BTC to 2.158 million BTC in a month.

    https://x.com/cryptoquant_com/status/1733005131216744749?s=20 

    Reserve on exchanges started to increase slowly in the early months of 2023, climbing back up to 2.240 million in May. However, things started to change in June, as filings by BlackRock and other investment companies for spot Bitcoin ETF trading in the US led to the start of a bullish sentiment. 

    Bitcoin slightly below the $44K level today. Chart: TradingView.com

    The reserve on centralized exchanges has been on a steady drop since then. At the time of writing, the exchange reserve has now crossed below 2 million BTC, a level it has yet to reach since December 2017. This metric’s six-year low is particularly interesting, considering Bitcoin’s total circulating supply has increased since 2017. Bitcoin’s total supply now stands at 19,564,812 BTC, a 16% increase from December 2017’s supply of 16.78 million BTC.

    Outlook For Bitcoin Price: Bull Signal?

    Although there are technically more bitcoins now available to go around, the increase in adoption is making it increasingly harder for traders to get a hold of the asset. Dropping exchange supply is a bullish signal for crypto assets and periods of low exchange supply have historically been associated with the beginning of significant Bitcoin bull runs. The last time Bitcoin had a drastic drop in exchange reserve was in 2020, and the crypto would later go on to reach its all-time high the year after.

    Bitcoin is currently spearheading new inflows into the crypto industry, with Coinmarketcap’s Fear and Greed Index now pointing to an extreme greed of 82. The industry’s leading asset recently broke over $44,000 for the second time this week and is now up by 14% in a 7-day timeframe. Bitcoin is poised for extreme gains in 2024, and many analysts have predicted a price target above $100,000.

    (This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

    Featured image from Freepik

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    Scott Matherson

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  • Crypto Pundit Reveals Why Bitcoin Is Worth As Much As $17 Million

    Crypto Pundit Reveals Why Bitcoin Is Worth As Much As $17 Million

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    A crypto pundit and Bitcoin maximalist, Mark Harvey, has explained why he believes the foremost cryptocurrency Bitcoin, is far off from its true potential. According to him, the crypto token could be worth close to $17 million in the future. 

    Why One Bitcoin Could Worth $17 Million

    In a post shared on his X (formerly Twitter) platform, Harvey made a strong case for Bitcoin on why it could on why a price even greater than $17 million is likely. He referred to Bitcoin’s use case as a store of value and how it could further chop into the market share of other asset classes. He noted Bitcoin’s “tremendous upside” despite being a relative newcomer.

    Bitcoin is said to have 0.1% of the $871 trillion which are invested in global assets. Other global assets that hold a substantial market share include gold and silver, bonds, equities, real estate, and fiat money. Harvey believes that Bitcoin’s price could rally significantly as the foremost cryptocurrency becomes the most preferred option for people to preserve their money.

    Source: X

    Harvey stated that the monetary premium of those global assets highlights how much they are used as a store of value. The crypto pundit asserts that Bitcoin has the potential to capture the monetary premiums of other asset classes, which would see its price rise to $17 million with a market cap of $356.7 trillion. 

    Bitcoin 1

    Source: X

    In his opinion, this is very likely because Bitcoin is a “superior form of property.” If it does happen, the crypto token could also end up capturing 41% of the $871 trillion in global assets. Harvey also provided a more probable scenario as to Bitcoin’s future price. He noted that the crypto token could still rise to as high as $415,000 per token if it captures 1% of global assets.

    Bitcoin 2

    Source: X

    Is BTC Superior To Other Asset Classes?

    Harvey labeled Bitcoin as a “superior form of property,” and there is evidence to back up this assertion. As highlighted by the Director of Global Macro at Fidelity Investments, Jurrien Timmer, Bitcoin stands out in comparison to other asset classes. 

    Bitcoin 3Source: Fidelity Investments

    According to data from Fidelity, the flagship cryptocurrency provided the best risk-reward with a 58% return from 2020 to this year. In terms of drawdowns and rallies, Bitcoin also stood out with an 84% gain from its 2-year low.

    Meanwhile, a recent report by Glassnode noted that Bitcoin continues to lead as one of the best-performing global assets, with a gain of over 140% year to date (YTD). Specifically, Bitcoin has more than doubled in relation to Gold. 

    Bitcoin price chart from Tradingview.com

    BTC price remains above $43,000 | Source: BTCUSD on Tradingview.com

    Featured image from Coin Culture, chart from Tradingview.com

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    Scott Matherson

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  • Is Bitcoin Overvalued Yet? What Historical Data Suggests

    Is Bitcoin Overvalued Yet? What Historical Data Suggests

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    Here’s what the data of this historical on-chain indicator suggests regarding whether Bitcoin has become overvalued after its latest uptrend.

    Bitcoin MVRV Z-Score Hasn’t Climbed Too High Yet

    As the Reflexivity Research co-founder pointed out in a post on X, the BTC MVRV Z-Score readings have heated up little compared to the values observed in past bull runs.

    The “Market Value to Realized Value (MVRV) ratio” is an indicator that measures the ratio between the Bitcoin market cap and the realized cap. The “realized cap” refers to a capitalization model for the cryptocurrency that assumes the “true” value of any coin in circulation is the price at which it was last transacted on the blockchain.

    Since the last transaction price of any coin was likely the price at which it changed hands, one way to interpret the realized cap is that it represents the total capital the holders have invested into the asset.

    Since the MVRV ratio compares the market cap (the spot price) against this model, it can tell us whether the investors are holding more value than they put in right now.

    If the investors are holding more than what they bought the coin for (that is, they are in net profits), they might be tempted to sell, and thus, BTC might be likely to see a correction. Similarly, the market being in losses can suggest the cryptocurrency’s price is currently undervalued and might be due to a rebound.

    Now, here is a chart that shows the trend in the Z-Score of the Bitcoin MVRV ratio over the history of the coin:

    The value of the metric appears to have been going up in recent days | Source: @WClementeIII on X

    The “Z-Score” is a statistical tool used to measure how far a data point is from the mean. In the graph, the analyst has marked two zones for the Bitcoin MVRV Z-Score where BTC has attained an overbought/underbought condition.

    It would appear that historical bottoms in the asset’s price have formed when the metric has dipped inside the green zone. The tops haven’t been so simple, though, as they fluctuate a bit.

    One common thing between all tops is that they have occurred at decently high values of the indicator. At such values, the investors make very high profits, so tops naturally become significantly probable.

    The chart shows that the Bitcoin MVRV Z-Score has been climbing recently as the asset has rallied, but it’s yet to arrive at levels similar to past tops. “There will be corrections along the way, but zooming out Bitcoin is far from overvalued based on historical readings,” notes the analyst.

    BTC Price

    At the time of writing, Bitcoin is trading at around $43,800, up 15% in the last week.

    Bitcoin Price Chart

    Looks like BTC has registered a sharp uptrend over the last few days | Source: BTCUSD on TradingView

    Featured image from iStock.com, charts from TradingView.com, Glassnode.com

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    Keshav Verma

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  • SEC Insider: Bitcoin ETF Approval Probability Surges Beyond 99% As BTC Hits Fresh Yearly High

    SEC Insider: Bitcoin ETF Approval Probability Surges Beyond 99% As BTC Hits Fresh Yearly High

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    In the countdown to the deadline for the long-awaited Bitcoin ETF applications by major asset managers worldwide, predictions regarding the rate of approval have significantly improved. 

    Inside sources from the US Securities and Exchange Commission (SEC) indicate that Bloomberg’s initial 90% chance prediction of approval has now surged beyond 99%. 

    This development has heightened the excitement surrounding this investment vehicle, which has the potential to bring substantial inflows of capital into the Bitcoin market and further amplify its year-to-date gains of over 153%.

    Market Sentiment Soars As Bitcoin ETF Approval Probability Surpasses 99%

    Andrew, an SEC insider, shared an update on X (formerly Twitter), stating that the 99% probability of a Spot Bitcoin ETF being approved is no longer deemed high enough. 

    While acknowledging that nothing is ever certain, the source emphasized that the current likelihood of approval surpasses the 99% estimate from the previous week.

    The sentiment in the market is clearly reflected in the price movement of Bitcoin, as it continues to establish new yearly highs and display unwavering bullish momentum. 

    Currently trading at $42,900, Bitcoin recently reached a fresh annual peak of $43,400 on Tuesday. Over the past 24 hours, the largest cryptocurrency has surged by 4%, and it has witnessed a remarkable increase of over 14% in the past seven days.

    BTC’s uptrend on the daily chart. Source: BTCUSDT on TradingView.com

    It is worth noting that the prospect of a Bitcoin ETF being approved has captured the attention of investors and industry participants alike. If approved, the ETF would provide a regulated and accessible investment vehicle for institutional and retail investors, potentially bringing significant liquidity to the cryptocurrency market. 

    The spike in approval forecasts to over 99% has further fueled optimism that this milestone decision is imminent. While nothing can be guaranteed, the growing confidence in Bitcoin ETF approval and the cryptocurrency’s impressive price performance underscores the potential for a significant positive impact on the market. 

    As the final deadline approaches, market participants eagerly await the SEC’s decision, anticipating a potential game-changer for the Bitcoin ecosystem and its ongoing growth.

    BTC Faces Crucial Range High Resistance

    Renowned crypto analyst Rekt Capital has shed light on Bitcoin’s recent price action, emphasizing the significance of key support and resistance levels within a specific price range. 

    In late November, Rekt Capital identified a range between $36,120 and $43,200, highlighting the importance of the lower boundary for a potential upward move.

    Bitcoin successfully tested and held the range’s lower boundary as support, resulting in a substantial rally in recent days. The primary objective now, according to Rekt, is to revisit the upper boundary, known as the black $43,900 range high resistance, as seen in the chart below.

    Bitcoin ETF
    BTC’s next target at $43,900. Source: Rekt Capital Newsletter.

    Rekt Capital underscores the importance of the black Range High resistance as a crucial reference point for Bitcoin’s price. During the parabolic phase of the 2021 Bull Market, Bitcoin managed to break above this level relatively easily. 

    On two occasions, the cryptocurrency surged beyond the black level, with the first instance followed by a retest of the level as a new support, leading to further upward momentum. 

    The second instance occurred later in the year when Bitcoin successfully retested the black level as short-term support before continuing its ascent.

    However, late in 2021, Bitcoin lost the black level as support (first red circle from the left) and experienced a fake breakout above it, subsequently entering a multi-week downtrend. 

    Rekt Capital highlights that Bitcoin’s historical performance suggests the cryptocurrency needs to successfully retest the black $43,900 level as support to pave the way for further upward movement.

    Featured image from Shutterstock, chart from TradingView.com 

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    Ronaldo Marquez

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