Should the markets clean up before a possible continuation of the bullish rally that began in October 2020?
4 arguments work in favor of a continued rise in the price of Bitcoin (BTC) towards 20,000 USD. Today, November 7, 2020, seems to plead the opposite.
The Bitcoin price of the day is offered to you in partnership with the application Swissborg. For a simple registration and a deposit of 50 euros, you will receive up to 100 euros in bitcoins as a welcome gift by following this link.
Bitcoin approached $ 16,000 yesterday, November 6, 2020. The question now is whether the BTC will be able to continue its ascent or if a correction is inevitable.
4 on-chain indicators show a Bitcoin able to go much higher:
Bitcoin dipped below $ 15,000 today. It is trading at $ 14,991 as of this writing.
The BTC records a daily loss of over $ 500. We will be fixed in the hours which follow on the capacity of the 15 000 USD to play or not the role of support for a continuation of the bullish rally.
Ascension or correction: the verdict in 24 hours. Bitcoiners must be patient like the supporters of Joe Biden who had to take their troubles patiently.
Litecoin, welcome in the Silver Age
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- Bitcoin has broken above $15,000 just as Square reported almost 80% of its Q3 Cash App revenue came from the digital token | Currency News | Financial and Business News
- Taking on Bitcoin and S&P 500 returns
- 3 ways Bitcoin price and stocks may react to a Biden presidency
- 8,000 Bitcoin Scam Victims Get Refunds From US Regulator – news.kuaidiantou.vip
- Famous Rapper Logic Just Made a “Big Investment” In Bitcoin
Bitcoin has broken above $15,000 just as Square reported almost 80% of its Q3 Cash App revenue came from the digital token | Currency News | Financial and Business News
Thomas Trutschel/Photothek via Getty Images
Bitcoin hit a 3-year-high by rising 6% on Friday just as US payments firm Square reported that almost 80% of its Cash App revenue came from the digital token.
Bitcoin’s value climbed to $15,547 as Joe Biden surpassed President Donald Trump by more than 1,000 votes in Georgia. If Biden wins Pennsylvania’s 20 electoral college votes, he will surpass the 270 needed to win the presidency.
A Biden win and a Republican Senate would be great for Bitcoin because his presidency would probably drive the dollar lower, according to Bill Noble, a chief technical analyst at Token Metrics.
Separately on Thursday, Square said it generated $1.63 billion in Bitcoin revenue and $32 million of Bitcoin gross profit during the third quarter of 2020 from its Cash App. Including Bitcoin earnings, Square’s net revenue rose 140% year-on-year to about $3 billion in the quarter.
For comparison, Square sold $875 million worth of Bitcoin with $17 million in profit in the second-quarter. The company sold a comparatively smaller amount of $516 million in Bitcoin over the entire year of 2019.
The company emphasized it makes only a small margin by selling Bitcoin, but its third-quarter earnings have risen 15 times year-on-year.
Author: News Bureau
Taking on Bitcoin and S&P 500 returns
Bitcoin has been one of the best-performing assets on the planet since its launch in 2009. The digital coin rose nearly 9 million percent in price between 2010 and 2019. Simply holding or averaging into Bitcoin (BTC) positions yields a certain profit benchmark. Finding an investment or trading strategy that outpaces Bitcoin’s performance can prove difficult, but a financial fund known as Off The Chain Capital has claimed to do just that. The fund has also outpaced the S&P 500, a popular mainstream financial market index, although the S&P stands as a less formidable opponent in terms of price gains.
“It’s easy to outperform the stock market because if you look at Bitcoin relative to other assets like dollars, gold, stocks and bonds, Bitcoin is sucking in all the value out of those,” Brian Estes, the fund’s founder and chief investment officer, told Cointelegraph. Bitcoin naturally provides greater profit than other mainstream financial assets, such as stocks and gold, he explained, adding: “The hard part is to outperform Bitcoin.”
Estes created Off The Chain Capital in 2016 as a financial fund open only to his friends and family. A number of years later, the fund began letting other members of the public invest, Estes explained. “We have over 90 partners now in the fund,” he noted. “The reason I decided to open up the fund to outside investors was I finally figured out how to outperform Bitcoin.”
CT: Can you explain how the fund works? Such as what is in the fund and what your mindset regarding that is?
BE: What I figured out was that the best way to outperform Bitcoin is to buy Bitcoin below what other people could buy it at or sell Bitcoin above what the spot market is. We found ways to buy Bitcoin at a discount, and we found ways to buy Bitcoin at spot prices and then sell it for above to people who are willing to pay us a premium for Bitcoin — and that’s pretty much all we do in the fund. So, we’re a value investor in Bitcoin and blockchain assets.
CT: When you buy below and sell above, are you talking more about long-term action or are you talking about short plays?
BE: We don’t trade. Our average holding period is over 12 months, so we’re not traders. We don’t use leverage. We’re not leveraging up the portfolio to outperform Bitcoin. We’re using a traditional, Graham-Dodd, Warren Buffett value method to buy Bitcoin for cheap.
We’re one of the largest buyers in the world of Mt. Gox bankruptcy claims. So, when you buy a Mt. Gox bankruptcy claim from people who have a claim on the company, our average cost is about $1,000 per claim, and we’re getting almost $3,000 worth of assets.
Those assets inside of a claim are 0.1785 Bitcoin, 0.18 Bitcoin Cash and there’s about $784 of just cash, like currency, in there. When you add all that up, there is about $3,000 worth of value. Like I said, our average cost is about $1,000. These claims will eventually get paid out over the next few years, and when these claims get paid out, even if Bitcoin doesn’t move, we’re almost tripling our money because we’re buying this Bitcoin at a discount through these claims.
Mt. Gox started as one of the earliest Bitcoin exchanges. The marketplace operated from 2010 to 2014, ultimately ending in disaster. The exchange suffered an infamous hack in which nefarious parties reportedly pilfered roughly 850,000 BTC, leading to the exchange’s demise in 2014.
Fast-forward to 2020, and authorities are still sorting through the rubble and aftermath of the affair. Part of the process has seen victims who lost funds from the Mt. Gox ordeal submit claims for compensation for their losses. Entities such as Off The Chain Capital look to buy these claims for profit, albeit in the form of delayed gratification.
Essentially, due to the red tape involved and legal processes around Mt. Gox, these claims do not pay out right away and have suffered many delays. Mt. Gox rehabilitation trustee Nobuaki Kobayashi oversees the ordeal. The payout for the claims has seen a number of delays. Kobayashi must provide the courts with a plan of action. Most recently, the proposal’s due date was moved from Oct. 15 to Dec. 15.
In addition to the Mt. Gox claims, Off The Chain Capital employs other strategies, although the firm does not divulge these tactics to the public, Estes explained. Off The Chain Capital is not the only player interested in this type of financial play, however. Fortress Investment Group stands as another example of a party that has expressed interest in buying Mt. Gox claims.
Buying these claims also helps the victims of the Mt. Gox ordeal. They can receive compensation for their losses sooner, albeit at a discount, through selling their claims.
CT: So, the Mt. Gox claims: The reason you’re getting the discount is because you are not being paid out until the future, correct?
BE: Exactly, yeah. So, we’re giving people liquidity. They have a claim, so they get liquidity, and they get $1,000 per claim. What we get is value. We get $3,000 of value, but we get the illiquidity. So, these are illiquid investments until the Japanese trustee decides to distribute the Bitcoin, Bitcoin Cash and currency out. When that happens, we become liquid. We’re willing to be illiquid for the return — for a three-times return. That’s a good trade-off for us.
It benefits the people selling the claims too because they’ve been sitting on these claims for almost seven years. Most of the people selling these, they have life events that happened to them. They need the money, so they’re happy to sell them and to have someone to sell them to. They’re getting married, having a baby, buying a new house or they wreck their car, and they need liquidity.
CT: Is there any idea of when the claims will be paid out? Will they all be paid out at once, or are they being paid out every couple of months?
BE: On Oct. 15, the Japanese trustee was supposed to update the distribution plan. They postponed it until Dec. 15, so on Dec. 15, we’ll have more clarity. It’s kind of anyone’s guess. Some people are thinking six months, but we’re planning for about two years, hoping that it’ll be a year or less, but it could be another three to four years. No one really knows.
This interview was condensed and edited for clarity.
3 ways Bitcoin price and stocks may react to a Biden presidency
On Nov. 7 several major media outlets announced that after 4 days of rigorous vote-counting in key battleground states Joe Biden had managed to secure enough electoral votes to become the 46th President of the United States.
As the excitement over an incredibly close election starts to abate, analysts will take a closer look at how a Biden presidency may impact traditional markets and Bitcoin price. Three key factors to consider are the eventual passage of a new round of economic stimulus, a strengthening U.S. dollar, and the possibility of a stock market recovery.
Prior to the election, U.S. President Donald Trump said he intended to delay stimulus discussions until after the election. Consequently, the Democrats and Republicans struggled to come to a consensus on a deal.
The election of Biden brightens the prospect of a stimulus package by the year’s end. Democrats in the U.S. Congress already proposed a $2.2 trillion stimulus bill in October, but it failed to gain support in the Senate.
The second round of stimulus could positively affect Bitcoin because it significantly relaxes the financial conditions in the U.S. It would also uplift the U.S. economy, and in turn, stimulate investor appetite for high-risk assets.
The perception of Bitcoin has evolved from a risk-on asset to a safe-haven asset and an inflation play in recent months. Despite this, there are still multiple instances where Bitcoin price moves in tandem with the stock market so in the absence of appetite for risk-on assets, Bitcoin price can still rise.
If the Biden administration approves a stimulus package, then the U.S. dollar will rise. The eurozone, as an example, saw the euro rapidly surge after passing a major stimulus proposal.
The U.S. dollar has been underperforming against reserve currencies since March. Consequently, it aided the recovery of gold, Bitcoin, and other alternative stores of value, as they are priced against the dollar.
As such, there is a possibility that a second round of stimulus and improving investor confidence could initially have a positive impact on the price of Bitcoin. It is also important to note that over time, the strengthening dollar could apply additional selling pressure on Bitcoin and gold.
Analysts also anticipate the U.S. stock market to recover following the confirmation of the election result.
Although many analysts believe Biden’s tax and environmental policies may eventually lead to a stock market slump, there is a high probability that stocks may rally in the short-term.
The stock market fell steeply throughout August and September as analysts warned against a contested election. The speculation around the result of the election is unlikely to have fueled a sell-off across risk-on assets.
Rather, the fear that the election would drag on without a clear winner caused the markets to rattle.
Following the conclusion of the 2020 race, there is less uncertainty in the markets and this could allow stocks to recover alongside other risk-on assets.
In terms of regulation, Compound Finance’s general counsel Jake Chervinsky said Biden has not expressed any public stance towards crypto. He wrote:
“President-elect Biden hasn’t said anything publicly about his views on crypto. For now, it really isn’t a big enough issue to warrant his attention. The next four years of US crypto policy depends on who he appoints to key positions; we’ll know more as the transition gets going.”
While the media has announced that Joe Biden is the winner of the 2020 election, President Trump has yet to concede and it is widely expected that Trump’s legal team will dispute the results and attempt to force a recount in each battleground state.
If this occurs, fear and volatility could quickly re-enter the markets and lead to a pullback in stock and crypto prices.
8,000 Bitcoin Scam Victims Get Refunds From US Regulator – news.kuaidiantou.vip
The U.S. Federal Trade Commission is refunding about 8,000 victims who lost money from investing in two bitcoin scams. The fraudulent schemes promised that investors could turn their cryptocurrency payments of about $100 into $80,000 in monthly income.
The Federal Trade Commission (FTC) has started sending refunds to victims of two cryptocurrency investment scams: Bitcoin Funding Team and My7network.
According to an announcement by the FTC on Wednesday, the two schemes “falsely promised that participants could earn large amounts of money by paying cryptocurrency such as bitcoin or litecoin to enroll in the schemes.” However, the FTC detailed:
Bitcoin Funding Team and My7network were chain referral schemes that depended on the recruitment of new people to make money. In fact, most participants failed to recoup their initial investments.
The FTC is sending 7,964 refunds through Paypal totaling more than $470,000 to victims of the two schemes beginning on Nov. 5. “The average refund is approximately $59. Recipients who receive a refund via Paypal will have 30 days to accept the payment,” the FTC clarified.
The promoters of the two schemes — Thomas Dluca, Louis Gatto, and Eric Pinkston — were shut down in March 2018. They claimed that Bitcoin Funding Team “could turn a payment of the equivalent of just over $100 into $80,000 in monthly income,” the FTC explained, adding that the two schemes were “chain referral schemes — a type of pyramid scheme.”
The FTC alleges that a fourth defendant, Scott Chandler, promoted Bitcoin Funding Team and another deceptive cryptocurrency recruitment scheme called Jetcoin. This scam claimed that investors could double their investment in 50 days, but the FTC says “the scheme failed to deliver on these claims and ceased operation within two months of launching.”
The defendants violated the FTC’s “Act’s prohibition against deceptive acts by misrepresenting the chain referral schemes as bona fide money-making opportunities and by falsely claiming that participants could earn substantial income by participating in the three schemes,” the federal agency explained.
In August last year, the promoters settled with the FTC. As part of their proposed settlements, Dluca would pay $453,932 and Chandler $31,000. “Pinkston also agreed to a $461,035 judgment, which will be suspended upon payment of $29,491, due to his inability to pay the full amount. If he is later found to have misrepresented his finances, he will be required to pay the full amount,” the regulator noted.
In addition to the monetary judgment, all four defendants “are permanently prohibited from operating, participating in, or assisting others in promoting or operating any multi-level marketing program, pyramid, Ponzi, or chain referral scheme,” the FTC stated.
What do you think about the FTC refunding bitcoin scam victims? Let us know in the comments section below.
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Famous Rapper Logic Just Made a “Big Investment” In Bitcoin
Bitcoin trended on Twitter this past week as its price shot higher in the biggest move in months. In the span of a day, the price of BTC rallied by approximately $2,000, shocking most investors.
The move garnered so much attention that famous celebrities began to discuss the cryptocurrency once again. One such celebrity was Sir Robert Bryson Hall II, also known as Logic. Logic is a now-retired rapper and content creator whose records have topped the charts on many occasions. His net worth is estimated to be $15 million.
Logic tweeted on November 6th, a day after the $2,000 move higher, that his manager Chris Zarou convinced him to buy Bitcoin. Zarou is the chief executive of Visionary Music Group, the label for Logic, along with a number of other artists such as Jeremy Zucker.
My manager @ChrisZarou has been bugging me so I finally made a big investment in #Bitcoin
Days prior to Logic announcing his support for Bitcoin. Zarou tweeted that he is “irresponsibly long” on Bitcoin.
Irresponsibly long is the term phrased by Raoul Pal, CEO of Real Vision and a retired hedge fund manager. Pal has over 60% of his liquid net worth in either Bitcoin or Ethereum, citing how he expects macroeconomic trends to send the cryptocurrency much higher than it is today.
Pal said that the price of Bitcoin could hit $1,000,000 in this market cycle due to institutional interest. He says that central banks and large corporations may soon own BTC to hedge their portfolios against inflationary risks.
While Logic and other celebrities such as TikTok star Bryce Hall are buying Bitcoin, public interest is not yet on the rise as per Google Trends.
Google Trends shows that the search interest in the term “Bitcoin” and other crypto-related terms are still at multi-year lows.
Many see this as a sign that it is largely institutional players and those in the know like Logic that are driving the rally. This is made clear by institutional investment numbers reported by Grayscale, Stone Ridge Asset Management, and other fund managers and institutions dabbling in the space.
Analysts hope that once retail investors begin to enter the market, then the true market will begin. Retail investors are believed to be what drove the previous Bitcoin rally from the thousands of dollars range toward $20,000.
This post was originally published on www.newsbtc.com