Binance CEO Isn’t Worried About Bitcoin, Says “Demand is Increasing”

On February 17, the Dow Jones Industrial Average was near its peak at 30,000, driven by the longest US economic expansion in history. During that time, bitcoin was trading above $10,000. Over the next thirty days, the coronavirus (Covid-19) burst out of China with major outbreaks in Italy, South Korea, France, Spain, Germany, the UK, and the USA.

As countries shut down their borders and people were asked to be quarantined in their homes, businesses came to a sudden stop. The stock markets went into a meltdown and forced central banks to take emergency actions not seen since the 2008 global financial crisis.

The world’s leading cryptocurrency also crashed to $3,850 which was because of those relatively new to crypto who sell when they feel there are risks. Also, those who depend on short term gains in their investment portfolios to pay rent were forced to sell crypto to cover their living expenses.

According to the founder and CEO of Binance, Changpeng Zhao, when people fear the doomsday, they hoard cash with increased pressure to sell investments. But they will “eventually find out they no longer need to hoard it and will put it back on investment.”

But despite this Zhao isn’t “worried about crypto at all.”

“The fundamentals did not change. Unlike fiat, bitcoin remains a currency with limited supply. No one can print more of it. Demand is increasing, especially now. It will be fine,” said Zhao.

Things aren’t black or white but greyscale and fundamentally crypto still works and with fiat being printed at a record pace, “you decide what will happen, in time.”

But that would happen eventually as Zhao explained currently, “Markets are inefficient. The speed of change propagation is slow, which actually gives us plenty of opportunities.”

Binance founder is extremely bullish on Bitcoin and cryptocurrencies and the reason behind this is the broken current system which he said bitcoin fixes.

With central banks printing out money to bail companies out, “the taxpayers are robbed (made poorer) indirectly.” And bitcoin fixes this.

With cryptocurrencies, things are different because there are no government bailouts which he said, “breaks the cycle.”

But it doesn’t mean, problems will be magically solved as companies will still fall and users will still get hurt.

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Author: AnTy

Here’s How Bitcoin Bull Run Will Start at $20,000

  • CNBC call for a 17% upside in bitcoin price
  • A wave of investors driven by FOMO will enter when we break into a new high
  • Bitcoin’s investment flow presently growing an order of magnitude (10x) every 4 years – on-chain analyst

Bitcoin price is still hovering around $10,250, not continuing the momentum but not sliding down either.

However, with CNBC making a call for a bitcoin boom, it might be time to get ready for a drop as CNBC’s call for bitcoin works as a reverse indicator.

According to the mainstream media outlet, despite bitcoin’s pull back above $10,000, the rally is far from over. MKM Partners chief market technician JC O’Hara told CNBC on Wednesday,

“When we look at cryptos as a whole, they tend to trade in two distinct phases. The first being dormant consolidation, which is followed by phase two, which is a high-momentum phase.”

“When you look at bitcoin we’re starting to see signs that the dormant consolidation from the second half of last year is slowly starting to change in terms of positive bullish momentum here.”

CNBC: A 17% Upside Coming

On a year-to-date basis, the world’s leading cryptocurrency has surged over 38% after finding a bottom in December. Ever since then, bitcoin has been on a steady rise. O’Hara said,

“We broke out of the downward sloping trend channel. We’re breaking above the $10,000 psychological level, and we’re of the opinion that positive momentum will continue to follow positive momentum. So that’s why we think in the short term we could see $12,000 on bitcoin.”

Currently, bitcoin is trading at $10,250 and a move to $12,000 would imply an upside of 17% from the current levels. Back in July, last year bitcoin briefly topped at $13,900 but we have yet to break into an all-time high.

Open field above $20,000

Bitcoin, the best performing asset of the decade with an upside of nine million percent would pull in another wave of investors driven by FOMO when we break into a new high, according to Jake Chervinsky, Counsel at Compound Finance.

Bitcoin remains a speculative asset for the newbies, he said while sharing his first foray into bitcoin which was after the flagship cryptocurrency made an ATH during the bull market of 2017 at $3k despite having heard of it in 2015. And this is why the bull market will start at $20,000. Vijay Boyapati said,

“Once the prior all time high is breached, there is no longer an overhang of supply. The price is free to run wild in an “open field”. This is when Bitcoin’s price appreciation begins to accelerate apace.”

Bitcoin making new all-time highs, Boyapati explained last June, will trigger a “feeding frenzy,” that will see media attention returning and new entrants attracted by the “allure of quick profits” which in turn even drive prices higher even faster. And that’s when the price will “eventually reach a crescendo top.”

Still too early to be an alternative to traditional stocks?

Mark Tepper, president of Strategic Wealth Partners, is also dipping a toe into bitcoin as he shared with CNBC,

“Overall, we’re seeing investors just continue to diversify away from traditional stocks and bonds towards alternatives. Bitcoin could fit into that alternative sleeve, but I still think it’s a little too early.”

Tepper holds bitcoin but hasn’t become a believer yet because according to him, it is “not an investment just yet still a speculative play.

However, on-chain analyst Willy Woo noted, in 2019 Visa processed $8.8T through their network while Bitcoin processed $727b meaning Visa accounts for 10% world GDP (payments) and Bitcoin 1%. Analyst Woo said,

“Bitcoin’s investment flow (aka annual investment velocity) is presently growing an order of magnitude (10x) every 4 years.”

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Author: AnTy

3 Drivers That Will Push Bitcoin Above $14,000 in 2020: Fundstrat Research

  • BTC’s impressive 92% return in 2019 was driven by the significant policy and regulatory headwinds
  • In 2020, Bitcoin and crypto total return should exceed that of 2019, Tom Lee founded a research company

In 2019, the Bitcoin price surged about 90%, going from $3,750 to end the month at about $7,200.

What contributed to these gains in 2019 was the events in Q2 that took Bitcoin to its yearly high at $13,900, recording the gains of 160%.

According to Fundstrat Research, these were on the back of Facebook announcing its Libra plan in June and then US President Donald Trump, Federal Reserve Chairman Jerome Powell, and Treasury Secretary Steven Mnuchin publicly talking about Bitcoin and digital currencies.

“Bitcoin returned 92% in 2019, trouncing all other major assets classes, an impressive return given the significant policy and regulatory headwinds that emerged in 2019 — the Congressional blowback from Facebook’s Libra and the correlated White House bashing of Bitcoin marked the highs for 2019.”

In 2020, Fundstrat says Bitcoin would be seeing yet another such bullish momentum that would push BTC prices up by 100%, meaning we would be climbing to a level that would be higher than that of 2019 and moving closer to its peak of nearly $20,000. The 2020 Crypto outlook” report to its clients:

“For 2020, we see several positive convergences that enhance the use case and also the economic model for crypto and Bitcoin — thus, we believe Bitcoin and crypto total return should exceed that of 2019. In other words, we see strong probability that Bitcoin gains >100% in 2020,” states the company in.“

What will bring over 100% of restaurants for bitcoin in 2020?

But what would push BTC prices at above $14,000? According to Bitcoin bull, Tom Lee founded a research company that has three main drivers for this uptrend.

One of the drivers is the much-anticipated halving event scheduled to occur in May 2020. This event will decrease the coin reward from 12.5 BTC to 6.25 coins and cut down its inflation from 3.68% to 1.80%. This supply shock, while many commentators believe to be a non-event this time, Lee says,

“Bottom line: financial markets tend to discount 1-3 months, and maybe 6 months (max). So highest probability is halvening not priced in.”

The second driver is the 2020 United States presidential election to be held on Nov. 3. The race for the White House has already begun in earnest and the outcome of the election will not only have an impact on BTC but also around the world.

“We’ve never listed U.S. domestic politics as the top risk, mainly because U.S. institutions are among the world’s strongest and most resilient,” write Ian Bremmer and Cliff Kupchan, president of Eurasia Group, a New York City headquartered political risk research and consulting firm.

“This year, those institutions will be tested in unprecedented ways.”

Apart from the 2020 elections, Fundstrat believes geopolitical risks will also contribute to BTC’s 100% bull run.

We already saw Bitcoin reacting to the US-China trade war and US-Iran’s crisis. This year, US-China tensions, U.S. policy toward Iran, Iraq, and Syria, discontent in Latin America over sluggish growth, corruption, and low-quality public services, are some of the top geopolitical risks for the world in 2020 that could play a role in driving BTC prices up.

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Author: AnTy

Why is Tezos (XTZ) Enjoying a Rush of Green Amidst the Bloodbath on Crypto Street

  • XTZ up 70% against the USD and 82% against BTC in the past month
  • The basic supply and demand driven by staking are pushing the prices up

In the past 2 days, Bitcoin lost about 21% of its value. Altcoins followed the leading cryptocurrency and dropped 20 to 30%. This resulted in wiping out $50 billion from the total market cap.

However, Tezos is one cryptocurrency that is not following this trend. On Nov. 22, XTZ registered a loss of 14% but soon after it jumped over 27% to $1.40, last seen in early August.

At the time of writing, XTZ was trading at $1.33, as per Coincodex. Tezos is up 70% against the USD and 82% against BTC in the past month and 175% YTD in the USD market. But despite these gains, it is still down 88% from all-time high of $10.7.

Source: Coin360

What’s Driving XTZ Prices Up?

So, what’s behind this surge?

Recently, Tezos partnered with Tribe, a Singapore government-backed blockchain platform to launch a trading program for developers in the Tezos blockchain.

But there is more than this. It is actually, the basic supply and demand driven by staking.

Staking or called baking in Tezos is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network that adopt the Proof of Stake (PoS) consensus mechanism or its variants. In the process, the crypto is locked to receive rewards.

Most of the users delegate this to a baking service for a percentage of its rewards as a fee.

A few months back, Coinbase Custody announced staking for Tezos, offering rewards of about 6%. In the first two months of the baking, the US-based crypto exchange platform generated an estimated revenue of $7,580-$8,324 from Tezos rewards.

Initially, it was only available for institutional clients only to be extended to all of Coinbase Custody’s US customers. This week, it expanded its XTZ staking services to all of its global clients as well.

Last week, Amun AG launched Amun Tezos exchange-traded product (ETP) with staking rewards where the underlying asset is held by Coinbase Custody.

Over 70% of XTZ Supply is Locked in Baking

With Coinbase already stepped up XTZ staking, Binance, Kraken, and others are expected to follow up soon. Already, over 71% of the Tezos circulating supply has been staked, as per Messari which could be expected to rise further as “On-chain data shows demand for baking is steadily increasing.”

Jack Miller, a partner at Cosimo.fund shared that Coinbase is one of the reasons for the increasing demand by making staking extremely simple. The exchange automatically starts baking for XTZ holders if they have more than 500 XTZ in their wallet for a fee of 25% of rewards. He stated,

“Coinbase Custody is over-subscribed by 15,557,014 XTZ. They need about ~2 million tezzies ASAP to be able to pay out all delegated users. They will also have an insufficient security deposit for their existing users in 4 cycles (12 days).”

With 70% of XTZ already stored in baking, the supply of Tezos is shrinking while demand for XTZ is growing because of an increase in demand in baking and need to buy and hold a lot of XTZ to earn revenue via staking, as such pushing the price of Tezos up.

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Author: AnTy

Tom Lee Says This Bitcoin Crash Solidifies His ‘Unpopular’ Opinion About BTC

  • BTC followed the risk-off sell-off in equities – Tom Lee
  • BTC crash was simply driven by stops.
  • Upper 7000s is first ideal spot for longs – Alex Kruger

Since Bitcoin first started sliding down from $10,000 hitting $8,025 on Sept. 24, Bitcoin price has been stuck around $8,300. Though yesterday it went up yet again to $8,640, today, BTC has crashed yet again, dropping to almost $7,730.

At the time of writing, BTC was trading at $7,936 with 24 hours loss of 4.62%, as per Coincodex.

This crash Bitcoin bull and Fundstrat’s Tom Lee says “followed the risk-off sell-off in equities,” reinforcing his ‘unpopular’ opinion that Bitcoin doesn’t do well in a trendless macro environment. For BTC to blast off, new highs are needed in S&P 500, he said, adding, “crypto is retail and thus, risk on.”

Bitcoin Misery Index is saying “risk-off”

A couple of weeks back, Lee first shared this idea stating that Bitcoin won’t make a new high until the stock market makes a new high. Since 2019, he notes, the best years of Bitcoin has been when the S&P 500 was up over 15%.

The reason for the leading cryptocurrency being range-bound was because of macro trendless. This he further said is confirmed by the Bitcoin Misery Index.

Even currently, the index is saying “risk-off” that has been the case since July. The index needs it all to 40-53 reading to see better risk/reward and start surging.

BTC crash was simply driven by stops

However, economist and trader Alex Kruger begs to differ as he explains the reason behind Bitcoin’s plunge.

Larger time frame consolidation with stops consolidating at the edges of the range and range awaiting resolution to see who wins drove this fall.

Then, Bakkt disappointment acted as a trigger to a move lower. Once the momentum starts kicking in, large sellers come in at 9300, prior higher low, going for the break. Then, the bottom of the range at 9080/9000 breaks running the stops over in the process and all leveraged positions getting liquidated.

As such the liquidity vanishes and price first tanks to 8500, then to 8000, fast which he says was “expected.” Bitcoin price is plunging for a number of reasons but has nothing to do with stocks crash that responded to US President Donal Trump UN speech about China and impeachment news.

BTC crash was simply driven by stops. As for what’s next, according to him, bears will be in control until either price moves higher and sets in a bear trap, starting at $9,300 but no later than $9,500, or next flush is lower.

“Upper 7000s is first ideal spot for longs (all the 7000s for larger time frame longs),” he added.

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Author: AnTy