Bitcoin futures hit $20.3K right before BTC price drops $1K in 10 minutes
Bitcoin (BTC) futures hit $20,000 on Dec. 1 as all-time highs finally began to convert into a new price era for BTC/USD.
Data from TradingView showed Chicago Mercantile Exchange Bitcoin futures heading past the historic $20,000 mark during Tuesday trading.
At press time, highs of $20,300 had appeared amid characteristic volatility, which saw BTC/USD crash to $19,000 in under ten minutes.
“Worth noting that a $1,000 swing is just 5% now. Adjust accordingly,” popular pseudonymous trader CryptoBull tweeted in response to the flash crash.
The move is nonetheless a momentous occasion for Bitcoin, which today has officially broken above its all-time high of $19,892 established nearly three years ago.
With futures normally a modest percentage higher than the spot price, CME and other operators’ order books were already primed to head into uncharted territory first. CME in fact passed $20,000 when it launched at around $20,700 in December 2017, with the market still waiting for new all-time highs on Tuesday.
- Coinbase executed MicroStrategy’s $425M Bitcoin purchase in September 2020
- Bitcoin (BTC) Gives Highest Ever Monthly Closing At $19,700 in November 2020 | Headlines | News
- Bitcoin peaks at record high close to $20,000
- Former Trump Economic Advisor and Goldman Sachs President Gary Cohn Warns Bitcoin May Fail
- 3 reasons why Bitcoin price violently rejected near $20,000
Coinbase executed MicroStrategy’s $425M Bitcoin purchase in September 2020
Coinbase, the United States’ largest cryptocurrency exchange, announced that itfacilitated one of the largest institutional Bitcoin (BTC) purchases in 2020.
According to an official announcement, Coinbase was selected as the primary execution partner for MicroStrategy’s $425 million purchase of Bitcoin in September 2020.
Brett Tejpaul, head of institutional sales at Coinbase, provided more details about the purchase as well as the company’s aim to facilitate institutional purchases in a Dec. 1 blog post.
“Using our advanced execution capabilities, leading crypto prime brokerage platform, and OTC desk, we were able to buy a significant amount of Bitcoin on behalf of MicroStrategy and did so without moving the market,” Tejpaul said. According to the post, MicroStrategy chose Coinbase because the platform provides a number of market tools like smart order routing and algorithmic trading tools.
According to a case study on the MicroStrategy trades, Coinbase conducted a series of pre-trade calls with MicroStrategy prior to the $425 million purchase in order to better understand trade execution goals and develop a trading plan.
Following the successful test, Coinbase began to execute the larger trade, involving the “Time Weighted Average Price” algorithm to execute the trade over a period of five days.
Over the course of the trade, MicroStrategy had a 9 a.m. call each day with the Coinbase trading team to start trading and report overnight fills. After completing an initial $250 million investment over a period of five days, MicroStrategy went on to invest an additional $175 million in Bitcoin following the success of the first trade, for a total investment of $425 million.
In the post, Coinbase expressed its willingness to help more institutions looking to buy crypto:
“We hope that this is an inflection point for the cryptoeconomy and look forward to helping more corporate companies and institutions looking to diversify their capital allocation strategies with crypto. Working on an agency basis, clients can be sure our interests are aligned as we seek to find the best prices available in the market.”
Bitcoin (BTC) Gives Highest Ever Monthly Closing At $19,700 in November 2020 | Headlines | News
Over the last two days, Bitcoin (BTC) has given a phenomenal move as its trades just short of its all-time high of $20,000. On Monday, November 30, the world’s largest cryptocurrency gave the biggest ever monthly closing in history at $19,700.
🔴 My fellow bitcoiners, the bull market is upon us. Like clockwork November red dot closed above all other red dots .. at $19,700 .. a new #bitcoin ATH. This is just the beginning. We will see volatility (e.g. -35%), but also new ATH’s. Enjoy the ride!🚀🚀🚀 pic.twitter.com/27fmkCOoEY
— PlanB (@100trillionUSD) December 1, 2020
After last Wednesday’s major market correction, the Bitcoin bulls raged-in over the weekend and Monday adding $2000 to its price in just 48 hours. At press time, Bitcoin is trading at $19,313 with a market cap of just $360 billion. In November itself, the Bitcoin price has surged a whopping 47% as institutional money continues to flow in.
The Bitcoin bulls raged-in soon as the news arrived that global investment giant Guggenheim Partners is willing to invest a massive $500 million in Bitcoin through the Grayscale Bitcoin Trust (GBTC). Bitcoin continues to take a lead as an inflation hedge over its popular competitor Gold. Veteran Investors Raoul Pal said that he is shifting all his gold money to Bitcoin.
Appearing at the recent interview on CNBC’s Squawk Box, Bitcoin billionaire Tyler Winklevoss called BTC as Gold 2.0. The BTC price is already up 175% year-to-date as Winklevoss calls it the best performing asset of the decade.
#Bitcoin is up 175% YTD and will be the best performing asset of the decade. Read all about it! https://t.co/Zyu5oxJ2bV
— Tyler Winklevoss (@tyler) November 30, 2020
Tyler Winklevoss expects the BTC price to 25x from here and touch the level of $500,000 at which it will be a larger asset class than gold. He noted:
“We think it will be the best performing asset of the current decade. Our thesis is that Bitcoin is gold 2.0 and it will disrupt gold. If it does that it has to have a market cap of $9 trillion. So we think bitcoin could price one day at $500,000 a bitcoin. So at $18,000 bitcoin it’s a hold or if you don’t have any its a buy opportunity because we think there’s a 25x from here”.
The twin brother Cameron Winklevoss further explained how Bitcoin is better than gold over many fronts. He notes that Bitcoin’s supply is fixed at 21 million and is easy to transfer worldwide.
With Monday’s BTC price surge, the total assets under management of the Grayscale Bitcoin Trust (GBTC) surged past $10 billion once again. The GBTC holds more than half-a-million Bitcoins as of date. Even Guggenheim plans to invest in Bitcoin through the Grayscal’es GBTC investment vehicle.
Grayscale Director Michael Sonnenshein that craze in altcoin is also catching and he thinks that “we are just getting started”. Interestingly, Sonnenshein adds that a third of its investors are investing in its other altcoin investment vehicles apart from the GBTC.
“If our inflows at Grayscale are any indication of the types of investors that are interested in this asset class or the sizes of allocations being made, we’re just getting started,” says @Grayscale’s @Sonnenshein on the price of #bitcoin #btc pic.twitter.com/6d0GUBqgaM
— Squawk Box (@SquawkCNBC) November 30, 2020
Bitcoin continues to challenge traditional financial companies with its every rising move. On Monday, Bitcoin surpassed MasterCard in terms of its market size.
The post Bitcoin (BTC) Gives Highest Ever Monthly Closing At $19,700 in November 2020 appeared first on Coingape.
Bitcoin peaks at record high close to $20,000
It took the virtual currency nearly three years to top its previous record, when it peaked about $137 lower.
Bitcoin has risen in value by more than 170% since the start of the year.
Analysts suggest some investors have treated it as a “safe haven asset” at a time of uncertainty caused by the coronavirus pandemic, but others warn that it remains volatile.
Bitcoin fell below $3,300 at one point after reaching its previous high.
And even this Tuesday, it briefly dipped below $18,300 a couple of hours after setting its new record.
Other factors that have supported its recent rise include PayPal allowing its platform to be used to buy and sell the virtual coins in October, and a number of large institutional investors declaring interest in buying into funds tied to the crypto-currency.
These include Guggenheim Partners, a Wall Street firm that announced on Friday it might put as much as $530m into a Bitcoin-related investment trust.
“It seems that barely a day goes past when we don’t read a headline about a mainstream fund or company expressing an intention to put some of their holdings into Bitcoin,” said Rhian Lewis, author of The Cryptocurrency Revolution.
“Price predictions are notorious for being wrong, so it’s entirely likely there will be more dips and volatility.
“But this time it feels very different from the 2017 high – there seems to be more real demand, and the narrative is more measured.”
She added that another factor was that investors are concerned that central bank efforts to deal with Covid-19 will fuel inflation.
Gold and other precious metals are traditionally used to hedge against such a risk.
But because in theory only a limited amount of Bitcoin can ever be created – it was designed to only let 21 million bitcoins be produced, of which about 18.6 million already exist – some favour it as an alternative.
If it does climb higher there could be sudden drops in value, however, as some traders will have set automatic sell orders pegged to it reaching the $20,000 mark.
One expert warned members of the public to be careful.
“Never invest money you can’t afford to lose,” said finance and economics writer Frances Coppola.
“Bitcoin is a speculative asset and has a history of sudden crashes. It’s not worth risking your house or your life savings for it.
“And borrowing to invest in Bitcoin or other crypto-currencies is a bad idea unless you are a professional trader.”
Bitcoin is often referred to as a new kind of currency.
But it may be best to think of its units being virtual tokens rather than physical coins or notes.
However, like all currencies its value is determined by how much people are willing to exchange it for.
To process Bitcoin transactions, a procedure called “mining” must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.
For each problem solved, one block of Bitcoins is processed. In addition the miner is rewarded with new Bitcoins.
This provides an incentive for people to provide computer processing power to solve the problems.
To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.
To receive a Bitcoin, a user must have a Bitcoin address – a string of 27-34 letters and numbers – which acts as a kind of virtual post-box to and from which the Bitcoins are sent.
Since there is no register of these addresses, people can use them to protect their anonymity when making a transaction.
These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.
They operate like privately run bank accounts – with the proviso that if the data is lost, so are the Bitcoins owned.
Former Trump Economic Advisor and Goldman Sachs President Gary Cohn Warns Bitcoin May Fail
A former top economic advisor to President Donald Trump and president of Goldman Sachs has shared his view about bitcoin. He claims that the cryptocurrency “lacks some of the basic integrity of a real market,” warning that it “may fail.”
Former White House chief economic advisor Gary Cohn said in an interview with Bloomberg’s Emily Chang, published Monday, that bitcoin “may fail.”
Cohn served as president and chief operating officer of Goldman Sachs for 26 years. He left the firm in 2016 to become President Donald Trump’s chief economic advisor, the position which he resigned from in 2018.
During the interview, Cohn was asked: “how bullish are you on bitcoin and cryptocurrencies and how much do you believe they will fundamentally transform our economy?” Admitting that he does not have a strong opinion about bitcoin, he said: “I’m not a strong believer in bitcoin.” The former Goldman Sachs executive elaborated:
It is a developing asset class, potentially. And for all the reasons it’s a strong developing asset class, it may fail.
The former top economic advisor to President Trump explained that “part of the integrity of an asset class or part of the integrity of a system is knowing who owns it, and knowing who has it, and knowing why it’s being transferred. And is it being used for legitimate causes, is it being used for good, or is it being used for illegitimate causes, is it being used in corrupt practices in corrupt ways?”
Claiming that “The bitcoin system today has no transparency to it,” the former Goldman Sachs president asserted: “So there are a lot of people that question why would you need a system that does not have an audit trail, does not have integrity, you don’t know who owns it, you don’t know exactly how much exists today, how much has been mined, how much has been lost, how much has been thrown away on hard drives because they don’t exist anymore.” Cohn concluded:
So it [bitcoin] lacks some of the basic integrity of a real market.
While pessimistic about bitcoin, Cohn said he is “very bullish” about blockchain technology, noting that they are the “highways and the pipes that are necessary for bitcoin” and “for many other applications.” He added, “they’re very useful.”
Bitcoiners on social media were flabbergasted and amused by Cohn’s comments about bitcoin. Satoshi Nakamoto Institute co-founder Pierre Rochard tweeted in response: “I formally challenge Gary Cohn to a televised debate on Bitcoin’s auditability. Bring him to me.” Castle Island Ventures partner Nic Carter wrote that Cohn saying that “bitcoin comes up short on the domain of auditability” is “Mystifying.”
Bitcoin evangelist and chairman of Divvy Systems and Barefoot Mining Bob Burnett tweeted to Cohn: “Lots of errors here. We know exactly how many bitcoin are mined. We know exactly how many bitcoin are left to be mined and when they will be mined. It doesn’t lack transparency, it defines it. And that no one owns it, is the very point.”
What do you think about Gary Cohn’s view on bitcoin? Let us know in the comments section below.
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3 reasons why Bitcoin price violently rejected near $20,000
Bitcoin (BTC) finally managed to secure a new all-time high but the digital asset rejected strongly near $20,000. On-chain analysts say a sell-off from whales and miners, combined with the $20,000 level acting as a resistance level caused a fierce drop.
For whales and high-net-worth investors, liquidity is the most important factor. Since they deal with large orders, they need to calculate the slippage their sell orders would cause.
Typically, the best period for whales to sell is when there is peak euphoria in the market met with large buyer demand. This allows whales to more efficiently sell their holdings without causing massive volatility.
When the price of Bitcoin officially surpassed its all-time high on Coinbase, it caused the market sentiment to become highly bullish. Shortly thereafter, whales started to sell, causing large liquidations across major exchanges.
CryptoQuant CEO Ki Young Ju explained that whale withdrawals were slowing down on Nov. 30. He said :
“I called short-term bearish based on miner-selling, whale activeness on exchanges, and no whale withdrawals. But I knew enough exchange stablecoin reserves would break $20k by this year. If ATH rejection happens, it could be a huge pullback as whales would sell BTC heavily.”
The confluence of whales keeping BTC on exchanges, which means higher selling pressure, and the sell-off from miners amplified BTC’s downturn.
Ki also noted that whales began to deposit Bitcoin into exchanges once again, which happens when whales want to sell their holdings.
Whales are depositing $BTC
+ Miners are selling $BTC
+ No exchange withdrawals from whales
+ $20K rejection
= Huge pullback ($19.9k -> $18k) https://t.co/F1n7ypl4kT pic.twitter.com/NnJJxzIcAV
— Ki Young Ju 주기영 (@ki_young_ju) December 1, 2020
The price of BTC recovered swiftly after dropping to around $18,200, surging back above $19,400 within hours.
The speedy recovery occurred likely due to the nature of the drop. As the price declined, exchanges saw cascading long liquidations. As such, BTC likely dropped harder than it should have if it weren’t for the large liquidations.
The recovery was equally intense to the upside for that reason. Late short-sellers could have gotten aggressive as BTC dropped, leading to a short-term short squeeze.
In the near term, Bitcoin could see two major scenarios. First, it could consolidate above $19,000, which would allow the derivatives market to find composure and the open interest to rebuild.
Second, BTC could continue to drop as traders anticipate a blow-off top after achieving an all-time high.
But, the macro outlook on Bitcoin still remains highly optimistic. Scott Melker, a cryptocurrency trader, emphasized that the monthly candle for November closed at BTC’s all-time high, which paints a positive long-term picture for BTC. He said:
“Last month closed right at the previous all time high monthly candle close. This month closed right at the all time high. Really impeccable chart.”
In the near term, the key support levels for Bitcoin are $18,200, $17,700, and $16,200. There are still large whale clusters in these areas, which could cause a reaction from buyers.