Bridgewater Associates CEO Ray Dalio Owns Bitcoin, But Cautions its ‘Greatest Risk is its Success’

We’re in the part of the cycle where gold, bitcoin, real estate, everything is going up, but with the US dollar on the verge of devaluation and inflation looming, future expected returns go down after a point, meaning there’s “no longer the incentive to buy those things.”

“I have some bitcoin,” revealed Ray Dalio, the founder, and CEO of the world’s largest hedge fund Bridgewater Associates.

Dalio revealed this during the Consensus event held by CoinDesk that was recorded on May 6, joining the herd of institutional investors warming up to cryptocurrencies.

This is because he would rather “have bitcoin than a bond” in an inflationary scenario, he said.

This makes sense given that since March 2020, the price of Bitcoin has gone from $3,800 to $65,000, and even after the recent 54% sell-off, it is trading around $37,500. Meanwhile, the yield on benchmark notes, US 10-year Treasury bonds, has only managed to move from 1.473% to 1.62%.

The yield on treasury bonds has been falling for decades, which was at 15.82% back in late 1981. Bitcoin, on the other hand, has been hitting a new ATH every cycle.

Dalio was previously skeptical about Bitcoin and later said he is learning about it and then wrote about it having the capacity to be an alternative store of value. Now, he has finally come around and invested in cryptocurrency. Recently, as we reported, Bridgewater’s chief financial officer, John Dalby, left the firm to join bitcoin custodian NYDIG.

Bitcoin looks appealing in the current environment where the US dollar is on the verge of devaluation, last seen in 1971, said Dalio. China is threatening USD’s role as the world’s reserve currency.

Here, Bitcoin with its gold-like properties is looking increasingly attractive as a savings vehicle, he said.

However, for him, the biggest concern remains regulatory crackdown. Dalio said,

“Bitcoin’s greatest risk is its success.”

Losing Control

During his interview, Dalio talked about how the greenback is in the mid of the first cycle, “debt and credit create buying power,” of the rise and fall of the global reserve currencies.

The second cycle is an “internal cohesiveness clash cycle” as both the wealth gap and political groups grow and then the rise of another great power that challenges the existing top currency.

The first cycle started as the government created buying power, a “stimulant” in the short term, but eventually, they have to pay back their debts, becoming long-term “depressants.”

So, if they need more money, they have to keep printing, and then taxes go up, leading to capital controls as happened in 1971 when President Richard Nixon took the U.S. off the gold standard, making dollar “fiat” currency, and stocks went up.

“It causes… gold, bitcoin, real estate, everything to go up because it’s really going down in dollars. And that’s the part of the cycle we’re in.”

Inflation is of importance here, especially monetary inflation that happens due to a devaluation of the currency, rather than the other one caused by supply and demand.

While pushing the prices of real estate, stocks, and cryptocurrencies up, their future expected returns would go down after a point. Once they come down to the interest rate level, “then there’s no longer the incentive to buy those things.”

However, a neutral cryptocurrency such as Bitcoin can act as gold, but the government has the capacity to control anything. And as more people start preferring Bitcoin than bonds, like him, the more savings go into BTC than into credit, “then [governments] lose control of that,” he said.

And such a situation, he said, can lead those governments to crack down on bitcoin holders, he said. Overall, it’s about technology and whoever wins this race wins it all, Dalio said.

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Author: AnTy

Macro Investor Raoul Pal Goes ‘Irresponsibly Long’ on BTC, But More Bullish on ETH

You got faith in it; bet everything on it. This seems to be the philosophy of Raoul Pal, a former Goldman Sachs hedge-fund manager who announced over the weekend that he is going all-in in Bitcoin.

However, he did clarify that he can afford to take this road and cautioned others to do the same as him and “do your own research and size accordingly.”

By betting his 98% liquid net worth, Pal has beaten another vocal Bitcoin bull Anthony Pompliano who says his 90% investment is in BTC. But as Pal points out, he is

“older and in a position to take more risk. And it is risk, no guarantees.”

The prominent bitcoin bull is putting it where his mouth is as he prepares to sell all of his gold and invest it all in Bitcoin and Ethereum. Pal, the co-founder of Real Vision tweeted,

“I have a sell order in tomorrow to sell all my gold and to scale in to buy BTC and ETH (80/20). I don’t own anything else (except some bond calls and some $’s). 98% of my liquid net worth. See, you can’t categorize me except #irresponsiblylong.”

While only 20% of the latest investment is in Ethereum, Pal has a “hunch” that it would be Eth that would beat Bitcoin in price performance. Explaining the reason behind his 80/20 allocation, he said,

“I think ETH outperforms possibly by 5 to 1 but who knows. BTC is the easy bet.”

It would be no surprise if Eth actually outperforms Bitcoin because it did so in the last cycle too.

Compared to Bitcoin’s 1,300% gains in 2017, ETH rallied 9,162% the same year. Moreover, while BTC is just over 7% away from its all-time high of $20,000, ETH has yet to surge 63% to reach its all-time high of $1,570.

In terms of year-to-date performance as well, ETH has gained 341% to Bitcoin’s 156% while trading at $575 and $18,470, respectively.

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Author: AnTy

ETH Gas Prices Explode Higher After Ethereum Dumps to $480

Everything is going as expected and as seen by the crypto market so many times.

The market has been given a Thanksgiving sale as the price of Bitcoin fell hard, to about $6,300 level.

This obviously led to an even bigger sell-off in the price of the altcoins.

After the rally seen by the cryptos in the past few weeks, a correction was expected, and retail flows into the sector further meant “it’s time to be cautious.”

ETH Got Cheap Again

The second-largest cryptocurrency market cap went down to as low as $480.

Just the day before yesterday, ETH went as high as $620, a level that was last seen in May 2018, thanks to the confirmation of the ETH 2.0 launch on December 1st.

“While Bitcoin has understandably dominated market attention over the past number of weeks, Ether has been quietly building steam in its shadow,” said Konstantin Richter, founder of Blockdaemon. As ETH 2.0 comes closer, “market confidence is peaking,” he said.

After reaching the $600 mark, Etherem faced strong selling pressure. As per the IOMAP indicator of IntoTheBlock, “the strongest level of support for ETH is located between $531 and $547, where 499k addresses previously bought 6.43m ETH.”

As a result, on several of the top centralized exchanges, the funding rate for Ethereum got positive, meaning long traders started paying the shorters to keep the price of perpetual futures contracts near the index price.

Then last night, the price of ETH dropped more than 20% to $480, seen last Friday only.

At the time of writing, ETH/USD has been trading around $500 with $3.4 billion in ‘real’ trading volume.

And Network Becomes Too Costly

Not just ETH but DeFi tokens much like most of the cryptocurrency market are in losses; these cryptos are actually down 15% to 30%.

CREAM, up 14%, is among a handful of tokens that are in the green at the moment.

As a result of these losses, people are changing their positions, and a lot of activity on the Ethereum network is leading to a surge in gas prices.

“Gas has exploded higher since the flush. DeFi traders are active rebalancing positions,” noted trader and economist Alex Kruger.

Ethereum gas fees have surged to 180 Gwei, up 200% from yesterday’s 60.7 Gwei, as per Blockchair.

Earlier this week, the gas fees went down to 29 Gwei, declining from the Sept. 17 high of 539 Gwei when DeFi was topping out.

As such, average Ethereum fees went up to $7.48, an increase of 236% from yesterday’s $2.28. The all-time high in average fees was achieved on Sept. 2nd at $15.2.

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Author: AnTy

XRP Climbs to 24-Month High with Monster Green Candle; Now Everyone Wants a Piece of It

Finally!

This is what a bull market looks like… when everything explodes without reason but because it is a wild bull season.

Today, in a violent move, XRP moved and posted a giant green candle. Such a big move was last seen in mid-September 2018 when the digital asset went from about $0.26 to $0.78 before continuing its descent into the darkness.

Such giant monster candles were previously seen only during December at the peak of the 2017 bull market.

At the time, the first green candle took it from about $0.22 to $0.90, another one was seen from $0.9 to $0.245, and the last one took it to an all-time high of $3.3.

It just might be the time for the fourth-largest digital currency to make some moves.

Amidst all this also came the reports of Ripple officially adding Bank of America. It has a long history of partnership that was never confirmed but has been finally included in its official website.

Going to nearly $0.440 over the weekend, XRP recorded gains of 40% in just one day. Continuing this uptrend, XRP went up further as high as $0.554 — a last seen level in November 2018.

At the time of writing, XRP has been trading at $0.533 with $2.59 billion in volume, the fourth largest volume after BTC ($3.52 billion), ETH ($4.06 billion), and USDT ($9.45 billion).

The digital asset first started trending up on Thursday when trading was at $0.283, and in just four days, XRP price has surged more than 95%. This strong breakout means everyone wants a bite of XRP, with analyst Mati Greenspan saying,

“When I sold 1000 XRP in 2017 for $1.08 a piece, I never thought that I’d be buying back in at 52 cents in 2020.”

Altcoins have started to pop out because Bitcoin has been taking a breather around $18,000, just inches away from its all-time high of $20,000.

Besides XRP, other notable movers on the first day of the week included DXT (424%), ZEN (67%), OXT (23%), and VeChain (14%). In this month alone, the total market has added $143 billion.

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Author: AnTy

Bitcoin Decoupling from The Stock Market is Here as BTC Eats Up Altcoin and DeFi Market

Bitcoin 2, everything else 0.

This is the tally after Bitcoin continues to move up following yesterday’s jump above $11,800.

Today, the leading cryptocurrency actually hit $12,000 on Bitfinex, last seen on Sept. 1st.

Since yesterday, BTC/USD has jumped over 5% on the back of $1.7 billion in real trading volume.

Interestingly, altcoins are not following this move up; as a matter of fact, they are recording losses, which means money is flowing out of the altcoins and into Bitcoin.

“Bitcoin about to consume the entire DeFi market and all the alts in the greatest consolidation crypto has/will ever see,” noted analyst Mati Greenspan.

Among the top cryptos, Chainlink is down the most, 5.43%; however, according to IntoTheBlock data, the number of LINK holders keeps on growing to hit a new record of 249.55k.

Ether is also down about 3% to just under $373.

“Eth is really lagging now but I think this recent move was probs some derivs bears tryna get out of their underwater btc shorts by nuking alts lol, waiting for eth derivs to give me more market info but honestly might actually punt an eth long soon,” said trader Loomdart.

DeFi tokens are experiencing even more severe losses between 5% to 15%, and in the past week, it has been up to 35%.

Besides altcoins, everything else is also not feeling as good or as bullish as BTC.

The equity market started with greens but soon dropped with S&P 500 trading at 3,448. The same is the case for tech-heavy stocks Nasdaq at 11,532 and Dow Jones Industrial Average at 28,370.

Unlike yesterday, today, gold is making some moves as it rises to $1,910. The USD Index actually went under 93 and is currently trading around this level.

“The decoupling is upon us. Makes sense that BTC will continue to be correlated in short timeframe trading; but not in the longer timeframes. BTC is a safehaven, just that “risk-on” (meaning it’s very new) is skewing this fact,” said on-chain analyst Willy Woo.

Meanwhile, for Bitcoin, the ongoing spike in the price is resulting in millions in liquidations, with the largest single liquidation order happening on Bitmex-BTC value $5.57 million.

The good thing for the Bitcoin market is that the BTC exchange balance continues to fall ever since March 15th. During this period, the net outflow has been 450,000 BTC, and the total exchange balance has reached the lowest point since November 2018.

On the other hand, the number of addresses holding at least $1 worth of BTC topped 24 million for the first time last week.

Additionally, institutional sized traders on CME, although don’t make up much of the open interest (OI), were only holding long positions last week. Overall, CME futures OI rose sharply yesterday, adding nearly 1,500 contracts on the October expiry.

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Author: AnTy

Is it that Time Again? Yes it is! The Market is giving All the Signs that it is an Alt Season

Everything is popping!

Is anyone getting 2017 vibes?

Tis’ the time when gains floweth over.

Today, even bitcoin jumped to $9,480 with $1.2 billion in ‘real’ trading volume.

Now, when it comes to altcoins, even XRP spiked more than 7% to nearly $0.20. And yes, Chainlink (LINK) continues to make new highs every day, the latest one being $6.38.

Cardano (ADA) has started to simmer down after days of pumping while Dogecoin (DOGE) is still going strong after Tik Tok users took it upon themselves to push it to $1, but it is still almost 27,000% off from the target. So, that’s to be seen.

VeChain (VET) is also popping today with 24.3% greens; in the past week, it has been up 125%.

So, why are Altcoins’ Surging?

In 2020 after the March sell-off, cryptocurrencies, including bitcoin, recovered handsomely, but while the world’s leading digital asset entered into a tight range, altcoins took this time to fire off.

For the past couple of months, bitcoin’s dominance has also been chipping off, which has been working in favor of altcoins.

Moreover, as we saw in the second quarter of 2020, the stock market has been growing off the charts as well. This growth was propelled by young investors who were at home during the lockdown with free time, internet, and of course, stimulus money in their hands and apps like Robinhood that charges zero commission at their disposal.

The young generation put their money in the stocks that have the least value, even if they were of bankrupt companies. And now, their attention seems to be on crypto.

Robinhood, however, only has seven cryptos listed viz. Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), and Dogecoin (DOGE), and the last one is already being pumped.

This time zoomers had Tik Tok with them to advertise it among their peers and sent the prices mooning.

“Think TikTok will actually become the biggest distribution channel for crypto products,” said Qiao Wang, an independent trader, and startup investor. And if the US bans it, “Then a TikTok copycat will be built and *it* will become the biggest distribution channel.”

This also means, ‘one-man marketing army,’ Tron founder Justin Sun has also found a way to pump his coin.

Does this mean the alt season has officially kicked off?

It looks like it!

But according to analyst Mati Greenspan, “This is more like Alt-Wednesday with a hope of turning into Alt-July,” because “a season implies that it lasts a while.”

But given that “It’s officially “refresh blockfolio every 30 seconds” season,” we are getting signs that say it is an altcoin season.

According to analyst Rekt Capital, over the years, Dogecoin has played an important role in crypto, it either predicts altcoin season or confirms them.

“This time Dogecoin has confirmed Altseason,” he said.

And who doesn’t believe it’s all season, technical analyst Pentoshi has all the checkpoints including soaring Doge price, BTC dominance which has broken a 3-year trend, and the retail on Robinhood and Tik Tok.

Some believe this wildness in the market means Chainlink won’t stop here either; it will only go on to make even new highs.

Amidst this frenzy, trader Crypto Yoda warns about staying vigilant. “Remain cautious about the possibility of BTC suddenly ending this momentum with an impulsive move.”

Meanwhile, Binance CEO, Changpeng Zhao feels, “Not all alts will pump during the next #altszn,” which is “more like 95%.”

“If a project has been around for 3 years but not much to show for, then…A few that have consistently pushed development will thrive,” he said.

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Author: AnTy

Demand for Internet Dollars: Crypto Investors Pile into Stablecoins for Safety

Over the past few weeks, stocks markets, crypto markets, everything took a brutal beating amidst the fear of coronavirus pushing the market into recession. Investors have been selling everything they can get their hands on, even safe haven assets like gold and bonds got sold off in a rush to the safety of cash.

From bankers, companies to individual investors, everyone has been dashing to stock up on cash to ride out the chaos. This flight to cash is causing havoc in a market that hasn’t been seen since the financial crisis over a decade ago.

The key concern now is liquidity, the ready availability of cash and other easily traded financial instruments for which the central banks have been pumping trillions of dollars in the market.

The lack of liquidity also saw non-US borrowers paying a premium to access dollars. The forex markets have been extremely volatile this week as small currencies depreciated dramatically against the US dollar as the investors seek a safe haven.

The three-month euro-dollar and dollar-yen swap spread rose to their widest levels since 2017 only to drop after central banks pumped in cash.

Central banks all over the world have also lowered their interest rates and introduced stimulus packages to dampen the negative effects of the coronavirus crisis.

Cryptos’ “Flight to Safety”

The same way there is a flight to the US Dollar amidst the global instability, in the crypto market, money is pouring into stablecoins.

While during the past few weeks, bitcoin and altcoins got hammered, the market cap of most of the stablecoins increased, reinforcing that investors are piling into crypto cash equivalents.

From March 10th through March 15th, Ethereum-issued Tether (USDT_ETH) market cap increased by about $300M. Coinbase and Circle’s joint effort, USD Coin (USDC) also had a huge gain, growing close to $150M in market cap since March 10th, reported Coin Metrics.

Recently, Circle CEO Jeremy Allaire tweeted about USDC’s market capitalization reaching ATH, “Fascinating to see “flight to safety” within the crypto macro market, but also demand for high quality USD liquidity for markets.”

In his series of tweets, Allaire shared his excitement, “It’s still rewarding to see that this entirely new, entirely digital, blockchain based monetary infrastructure is working.”

“Demand for internet dollars — digital, fast, global, secure, cheap to use — should increase significantly. People and businesses will want an architecture where they can make and receive payments with less counter-party risk and more security,” added Allaire.

Fiat is Winning

Stabelcoins provide ease of access to investors and traders along with enhanced liquidity. This led popular stablecoin Tether (USDT) to surpass the market capitalization of $5 billion “amid a surge in interest in crypto’s most liquid, stable and trusted currency,” and take over XRP’s second position, as per Messari.

Binance’s stablecoin also jumped into the race, the US-dollar pegged Binance USD (BUSD), which surpassed $100 million in mark cap in just six months. Ethereum-based BUSD trades almost exclusively on the Binance exchange and is backed by US dollars in an FDIC-insured US bank and audited on a monthly basis.

Cash is king and as evident from the increase in the stablecoins’ market cap, even in the crypto space, fiat is winning.

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Author: AnTy

Hacker Returns Stolen Ethereum Domains Names; Offered 25% Of Auction As Bug Bounty Reward

It’s easy to fall into a lull of new technology. To accept that everything new that comes your way, and is already tested for every possible mishap.

A hacker broke this illusion when they first stole, then returned the 17 Ethereum Name Server (ENS) domain name’s to OpenSea. They managed to exploit a bug that allowed them to buy the ENS domains for a lower bid than everyone else. Whoever it was tried to capitalize on their discovery, but was already within Opensea’s radar before they could get a large number of domains.

Among the short names of their acquisitions, apple.eth, love.eth, and wallet.eth stand at the forefront. Highly lucrative domains to own and then sell back to major groups. The way blockchain works is a beautiful thing, but it’s sheer immutability made it impossible for OpenSea to get it back after the hacker had captured them. Their only option was to blacklist the names and ask the hacker very nicely to give it back.

And the hacker did, but not out of love and charity. OpenSea promised the hacker a hefty 25% commission on every auction of the domain names they gave back. Whether or not the hacker’s intents were genuine or not, it’s honestly impossible to say.

The mystery with hackers, mainly unidentified ones like this one, is the intent. There are white hats, those out to better the Internet as a whole with their hacks. There are black hats, those out just for their own personal gain. There are even red hats, a weird mix of both.

OpenSea Owns Up, Plugs the Leak, Returns to Business

OpenSea had released an official statement apologizing for the exploit even existing. It’s sometimes easy to forget that massive bodies like these can also only be human. This hacker that captured those 17 domain names is the only one that managed to exploit an existing bug and get noticed. OpenSea is asking all individuals who gained ENS domains unfairly to return it, promising the same 25% commission for each.

They stated they’re going to extend invalidated auctions and plug the leak that made it happen to begin with. They’re going out of their way to notify users who suffered from the bug so they will have a clean, fair chance at winning the bids they were aiming for.

After that, it’s back to business, probably older and wiser from experience. Blockchain is the future, but the future is untested. It’s something many people forget in their over-eagerness to go to the new, profitable ideas of the future. OpenSea was not the first, nor will it be the last entity to make a mistake. It’s only their crack team that stopped the hacker from gaining more names as they slowly mapped out the exploit to its fullest extent.

In other news, Opensea promises to make a more enticing UI as well, and are going forward, stronger than they were before this.

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Author: Ali Raza

Mainstream Opportunity for Cryptos: Aussies Can Now Pay Bills with Cryptocurrencies via Cointree

Crypto enthusiasts in Australia now have everything to smile about after they were handed a massive opportunity to pay their bills using cryptocurrencies. Aussies can now pay bills via over 100 cryptocurrencies.

A Mainstream Opportunity

As one of the objectives of making cryptocurrency payments a daily option for folks and businesses, an intelligence bill payment solution, Gobbill, and crypto exchange platform, Cointree, has publicized a way of making bill payments through cryptocurrency.

The ‘pay any bill with any coin’ service is a fully standardized method for domestic as well as the local industries.

Currently, it’s directing a pilot to pay BPAY bills with several recognized coins including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and XRP. The move is undoubtedly a massive mainstream opportunity for cryptos in the country in which the crypto sphere has highly welcomed.

According to Jess Renden, operations manager at Cointree, the firm had received several requests for a bill payment mechanism via crypto. After the experimental stage, ETH, BTC, and BCH can as well be used by Aussies for making bill payments. Cointree expanding the service across their crypto portfolio sees it offer the largest selection of cryptos to pay bills across the APAC region.

Furthermore, it will offer the lowest fees in the market for bill payments when compared with similar services currently charging even 4.2% for a bill payment.

Promising Use Cases

According to Jess Renden, the early use cases were promising with a plethora of individuals as well as businesses turning to the service and putting crypto assets into some practical use.

Perhaps, the service is easy as well as a safe way of using cryptocurrency given the massive utility for personal as well as business transactions. The service will significantly reduce fraud hence ensuring the security of the members.

Undoubtedly, it’s a significant step in the right direction for cryptocurrencies, and perhaps realizing mass adoption sooner than expected. Considering the recognition given to Cointree in Australia as the safest as well as trusted blockchain businesses, who knows maybe paying bills in the country may soon turn to be entirely in cryptocurrency.

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Author: Ali Q