Bitcoin News Roundup for Oct. 21, 2020
Bitcoin’s price clocked two-month highs above $12,370 on Wednesday. The options market expects a continued rally.
The New York Department of Financial Services license allows PayPal to offer cryptocurrency buying and selling through a partnership with Paxos.
The Bahamas has officially launched the world’s first national digital currency, the sand dollar.
Mode said it’s the first U.K.-listed firm to invest in bitcoin as part of its treasury management strategy.
The post Bitcoin News Roundup for Oct. 21, 2020 appeared first on BTC Ethereum Crypto Currency Blog.
Author: By TeamMMG
- Deutsche Bank: Investors Increasingly Choose Bitcoin Over Gold to Hedge Dollar Risk, Inflation | News Bitcoin News
- Bitcoin price breaks past $18.8K as bears and bulls map out its path
- Bitcoin daily chart alert – Bulls keep pedal to the metal – Nov. 20
- First company-sponsored Bitcoin retirement plans launched in US
- 10 Metrics Where Bitcoin Has Already Hit New All-Time Highs
Deutsche Bank: Investors Increasingly Choose Bitcoin Over Gold to Hedge Dollar Risk, Inflation | News Bitcoin News
Deutsche Bank’s strategist Jim Reid reportedly wrote that investors are increasingly demanding to use bitcoin instead of gold to hedge dollar risk and inflation. His research concurs with one recently published by JPMorgan’s analysts that shows institutional investors moving from gold to bitcoin.
In a report discussing the performances of several investments post-vaccine news, Deutsche Bank’s research strategist Jim Reid wrote that “One of the oddities has been the dramatic divergence between gold (-3.6%) and silver (-4.4%) on the one hand and bitcoin (+13.4%) on the other,” according to Zerohedge publication. Reid elaborated:
There also seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation and other things.
Reid noted that “Bitcoin is up another +3% overnight and seems to be creating momentum of its own. It’s up over 70% over the last six weeks as more and more investors are starting to see it emerge as a credible asset to invest in.” Reid recently wrote in Deutsche Bank’s November Konzept report that “In the long term, central bank digital currencies will replace cash.”
Recently, JPMorgan’s analysts also pointed out that institutional investors are moving from gold exchange-traded funds (ETFs) to bitcoin via Grayscale Bitcoin Trust (GBTC).
Several hedge fund managers have also said bitcoin could beat gold as a store of value, including famed billionaire investors Stan Druckenmiller. Another hedge fund manager, Bill Miller, said that every major bank will eventually have exposure to bitcoin.
Do you agree with Deutsche Bank? Let us know in the comments section below.
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Bitcoin price breaks past $18.8K as bears and bulls map out its path
There are both bearish and bullish scenarios for Bitcoin in the foreseeable future. The bear cases surround two key data points: rising BTC deposits from whales to exchanges and BTC’s lack of retests of crucial support levels. The bull cases are based on HODLer activity, address activity, the market capitalization gap between BTC and gold, and the favorable technical structure of Bitcoin.
Bitcoin surpassing $18,500 is critical for its near-term price cycle. There were large sell orders right above $18,500, which acted as a strong resistance area. In prior attempts to break past $18,500, BTC dropped substantially within a short period. This time, it exceeded the resistance level with ease, marking a clean breakout.
Despite the technically strong uptrend of BTC, whale data indicates that the selling pressure on Bitcoin could intensify. Cole Garner, an on-chain analyst, cited CryptoQuant’s Bitcoin Exchange Whale Ratio to say: “It’s likely there’s one more blow off leg left in the tank.” The price of Bitcoin saw a blow-off top on Nov. 18 when it abruptly dropped from $18,476 to $17,214 within two hours. Garner emphasized that the Bitcoin Exchange Whale Ratio has a “history of topping here.”
The price of Bitcoin (BTC) has stabilized above $18,000 as the market demonstrates strong momentum above what was once a heavy multiyear resistance level. On Nov. 20, BTC price hit a new two-year high at $18,828 on Binance, surpassing the previous peak from Nov. 18. Following the breakout of Bitcoin, analysts are divided on its future price trend.
The Bitcoin Exchange Whale ratio is an important metric to gauge selling pressure from whales because it shows the estimate of the amount of BTC that high-net-worth investors are depositing to exchanges. Typically, investors move funds into exchanges when they want to sell. High-net-worth investors prefer to store their funds in noncustodial wallets that they fully control. Hence, analysts track exchange deposits as a potential signal for a sell-off.
Atop the whale data that signals a minor pullback, the monthly chart of Bitcoin shows an overextended upside price movement. Sasha Fleyshman, a trader at the institutional cryptocurrency investment firm Arca, said on Nov. 1 that the $13,716 level is a crucial area. It marked the open and closing prices of the December 2017 and January 2018 candles, when Bitcoin price hit a new all-time high at almost $20,000. Hence, surpassing that level means $13,716 will serve as the major macro support area.
Albeit unlikely, if a deep correction does occur, Fleyshman said that he expects the “palpable” support level at $13,716 “to be the line in the sand support wise to maintain structure.” Whether BTC will see a major correction in the near term still remains uncertain. But in the case of a correction, Fleyshman said BTC has a big support area to defend the ongoing bull run.
Denis Vinokourov, head of research at crypto exchange and broker BeQuant, told Cointelegraph that similar price drops to the recent abrupt crash have happened before, and the recent dip was met with significant buyer demand. Hence, although BTC saw a major downside movement in a short period, he believes it’s not necessarily bearish:
“Bitcoin’s relentless surge higher came to what some may have misconstrued as an abrupt end. However, while the price swing from $18,500 to $17,200 is certainly not for the faint hearted, similar price swings in dollar terms occurred when Bitcoin was trading at a much lower valuation. In addition to that, the selling pressure was met with similarly aggressive dip buying interest and what’s more is that the aggregate open options interest (OI) is actually higher since the initial dip lower.”
Due to the breakout of Bitcoin above $18,500, analysts have said that the market sentiment around Bitcoin is generally optimistic. Speaking to Cointelegraph, Guy Hirsch, managing director of the United States at eToro, said it would be surprising to see Bitcoin not challenge the all-time high soon. There are many positive narratives — such as the support for BTC from PayPal and Cash App, alongside rising institutional adoption — that brighten the outlook for Bitcoin:
“Sentiment now is rather bullish, and a number of indicators including social media chatter, trade volumes and even web pages indexing marketing terms related to Bitcoin, are at or near all-time highs themselves — these are clear indicators that the appetite for an extended bull run is here; and the increasing adoption coming from all sides — PayPal and CashApp, Anthony Scaramucci’s Skybridge announcing intent to buy Bitcoin and many legendary investors also jumping in.”
While there have been discussions around the high time frame charts of Bitcoin, such as the weekly and monthly charts throughout November, technical analysts have said lower time frame charts also seem optimistic. Before the breakout of Bitcoin above $18,500, a pseudonymous trader known as “Benjamin Blunts” said that BTC left a sideways structure that formed in the previous 48 hours. After the breakout, the trader said this rally “should be the one to take us to $20k and back to all-time highs.”
In addition to the numerous technical and fundamental catalysts for Bitcoin, there is a strong argument to support an exponential growth trajectory for BTC in the long term. Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, said that at a market cap of just $300 billion, Bitcoin is far from reaching gold’s $10 trillion market cap. But, this also shows that there is a large valuation gap between Bitcoin and gold: “Bitcoin is on track to be a digital version of #gold, but remains far from it in 2020.”
Considering various trends Bitcoin has seen in the eight months since the March crash, Hirsch told Cointelegraph that there is a high probability Bitcoin will test $25,000. If Bitcoin breaks past $20,000, it would mean that BTC will look to explore a new ceiling. Hirsch has pinpointed the $25,000–$30,000 range as the potential top for Bitcoin in the near term:
“Should Bitcoin surpass $20,000, there is little to suggest that we wouldn’t make a run at $25,000 before the year is out. Though I would shy away from planting a flag in the ground and making a price prediction per se, the fundamentals behind the number of people who now have access to Bitcoin through apps like PayPal and can purchase it with very little barrier to entry suggests that even if a fraction of those people do so, the price has nowhere to go but up.”
However, when Bitcoin surpasses $20,000, there is no longer any historical context to predict the next move of BTC. Hence, above the current all-time high, it’s nearly impossible to predict BTC’s next top until it peaks at a certain level. Another variable is that retail investors are likely to enter after BTC breaks past $20,000, which would add to the high level of interest and fear of missing out, or FOMO, that the cryptocurrency market is already seeing.
Bitcoin daily chart alert – Bulls keep pedal to the metal – Nov. 20
(Kitco News) – Bitcoin-U.S. dollar prices are higher early Friday and near this week’s three-year high. Bulls are in strong technical control as prices are in a solid uptrend on the daily chart. There are no early chart clues to suggest a market top is close at hand. More upside is likely in the near term, but also expect much higher volatility to occur—both on the upside and on downside corrections. Stay tuned!
First company-sponsored Bitcoin retirement plans launched in US
November 20, 20200 Comments
U.S.-based asset manager, Digital Asset Investment Management (DAiM), has launched the country’s first employer-sponsored 401(k) retirement plans supporting Bitcoin.
According to a Nov. 19 announcement, DAiM will serve as the advisor and fiduciary in helping companies “create a 401(k) plan that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10% to Bitcoin.”
The BTC will be held in cold storage by Gemini Trust, allowing DAiM to transfer Bitcoin to former-employees who have left participating companies.
DAiM’s crypto-friendly plans are compliant with the Employee Retirement Income Security Act of 1974, and will be able to be offered by employers from 2021.
While U.S. citizens have been able to include crypto assets in their individual retirement accounts, 401(k) rollovers, and brokerage accounts since the Internal Revenue Service began taxing Bitcoin in 2018, DAiM COO Adam Pokornicky told Cointelegraph that, “It’s been impossible to offer Bitcoin inside actually company-based plans until now.”
“The difference is, you can take an old 401k plan and convert it to an IRA when you leave a job or employer to invest in Bitcoin, but it’s never been possible to invest in Bitcoin while working at a company without taking a penalty or quitting your job until now.“
Pokornicky said that the traditional wealth management industries have been “slow to warm up to Bitcoin,” noting there are “barely any investment advisors offering licensed and regulated access to Bitcoin directly in brokerage and retirement accounts.”
He attributes the sector’s reluctance to “serious regulatory red tape” surrounding crypto compliance, emphasizing that it took “almost a full year of slow-building” before DAiM was approved to offer its employer-sponsored services:
“As an advisor, you can’t just start managing and advising for Bitcoin because you want to. There’s an enormous amount of work and compliance that needs to be done to develop operational frameworks, infrastructure, and strategic partnerships that need to be married together to be compliant in every state you operate.”
Pokornicky also noted “booming” demand for retirement investments in Bitcoin, adding: “We’ve seen most demand from individuals between the ages of 28-45.”
Author: by admin
10 Metrics Where Bitcoin Has Already Hit New All-Time Highs
Home Bitcoin 10 Metrics Where Bitcoin Has Already Hit New All-Time Highs
November 20, 2020
While we haven’t achieved the elusive $20,000 spot price all-time high yet, these other metrics show where bitcoin has grown far beyond previous peaks.
In this piece, NLW goes over those metrics that have achieved all-time highs, and adds one more that happened after Nic published his piece. The metrics include: