Allied Payment Network to Put BTC on Balance Sheet & Allow Bill Pay In Bitcoin

Allied Payment Network to Put BTC on Balance Sheet & Allow Bill Pay In Bitcoin

Allied has partnered with NYDIG to offer Bitcoin services. According to its CEO, providing access to Bitcoin is a “game-changer.”

Fort Wayne-based Mobile digital payment services provider Allied Payment Network has partnered with NYDIG to become the first bill payment provider to allow its customers to buy, sell, and hold Bitcoin.

Allied will also add Bitcoin to its corporate treasury.

This partnership helps financial institutions meet the growing demand for Bitcoin, whose adoption has increased 207% over the 10-year period beginning July 2010. Ralph Marcuccilli, founder and CEO of Allied, said,

“Allied’s primary focus is to make it easier for financial institutions to provide value-based technology that differentiates them in the marketplace, attracts new depositors, retains through high engagement, and generates revenue.”

“Providing access to bitcoin does just that, and is a game-changer for many community institutions that are struggling to compete.”

Customers meanwhile get a secure, easy-to-use alternative to transacting with unregulated bitcoin entities. Allied and NYDIG will also provide additional capabilities for customers, such as the ability to make digital payments funded by BTC.

Recently, the Bitcoin service provider, which is a subsidiary of Stone Ridge, partnered with Fiserv, Q2, and enterprise payment giant NCR as well. As we reported, NYDIG’s banking infrastructure partnerships are estimated to let them offer bitcoin services to about 70% of US banks.

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Author: AnTy

Mexico’s 3rd Richest Man Bashes Fiat as “Fraud,” says BTC Should Be in Every Investor’s Portfolio

Mexico’s 3rd Richest Man Bashes Fiat as “Fraud,” says Bitcoin Should be in Every Investor’s Portfolio

Ricardo Salinas Pliego says he is working on making his bank the first in Mexico to accept Bitcoin, which he called “the new gold.”

Mexican billionaire Ricardo Salinas Pliego said his bank is on the way to start accepting Bitcoin.

“Sure, I recommend the use of Bitcoin, and me and my bank are working to be the first bank in Mexico to accept Bitcoin,” Mexico’s third-richest man and owner of Banco Azteca said in a tweet in response to Michael Saylor, the billionaire founder and CEO of Microstrategy.

Saylor quoted a video in which Salinas said Bitcoin should be part of every investor’s portfolio and bashed fiat currencies, calling them “fraud” and “stinky.”

Salinas shared that he has been studying cryptocurrencies a lot and found that it’s an asset that has international value and trades with enormous liquidity at a global level, and that is enough reason for it to be part of every portfolio.

According to him, the finite supply of Bitcoin, 21 million, is the “key” part, and that’s why he doesn’t believe anything that Ethereum does because it doesn’t have a finite supply.

“For all I know, they emit more, and your asset depreciates.”

Talking about the fiat being a fraud, Salinas explained how when he started in 1981, the Mexican peso was 20:1 against USD, and today it is at 20,000:1, and the situation is even worse in Argentina, Venezuela, and Zimbabwe.

He said fraud is inherent in the fiat system, pointing to the US where the monetary emission went to the moon, and the dollar as hard money is a joke.

When asked what he would take — gold, silver, Bolivars, Argentine pesos, and Mexican pesos, Salinas wasn’t interested in any of it, but he said,

“I would take Bitcoin.”

Last year, Salinas said that he holds 10% of his liquid portfolio invested in the cryptocurrency. The Mexican tycoon’s fortune has risen $2.8 billion this year to $15.8 billion, according to the Bloomberg Billionaires Index.

In response to MicroStrategy’s Saylor saying, “If you are hoping to preserve your wealth for a generation, Ricardo Salinas suggests you invest in bitcoin. The strategy is simple – choose the highest quality asset you can find and hodl,” Salinas said,

“Bitcoin is the new gold.”

The cryptocurrency is much more portable and so much easier to transport than having gold bars in your pockets, he added.

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Author: AnTy

MicroStrategy Now Owns 105,085 Bitcoin in Total After the Latest Buy at an Average Price of $37,600

MicroStrategy Now Owns 105,085 Bitcoin in Total After the Latest Buy at an Average Price of $37,600

Publicly-listed MicroStrategy has bought another 13,005 BTC for about $489 million in cash at an average price of approximately $37,617 per bitcoin.

Meanwhile, today the price of Bitcoin dropped as low as $31,750.

With this latest purchase, MicroStrategy now holds an aggregate of 105,085 bitcoins, which were acquired at about $2.741 billion, and an average purchase price of approximately $26,080 per bitcoin.

MicroStrategy CEO Michael Saylor, however, isn’t done with purchasing Bitcoin yet as about a week back, he announced that the company has filed with the US SEC to sell up to $1 billion in common shares to buy even more Bitcoin.

So far, he owns 0.56% of Bitcoin’s circulating supply, as of writing. The companys’ holdings also represent 0.5% of Bitcoin’s fixed supply of 21 million.

Now, given that Saylor has already bought BTC, the market doesn’t have this factor working in its favor. Combined with China aggressively going after crypto mining and trading ahead of the 100th anniversary of the ruling party on July 1st, puts BTC price and by extension altcoins in danger of more sell-off.

It needs to be seen if Bitcoin will hold the $30,000-$40,000 range or go for 2017 bull market ATH of $20k.

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Author: AnTy

Bitcoin’s Weekend Weakness: Yields Crash and Go Negative, OI Is Still Halved From Peak

While gold is getting crushed down 8.14% this month while the US dollar has soared to 92.4, aiming for a 2021 high of 93.43.

Right before the weekend, Bitcoin has dropped under $35,000 and is now aiming for $36,000.

Earlier this week, BTC’s price surged above $41,000, an increase of more than 30% from the previous week’s low of $30,000. But before even the week is over, the price has already lost 15.7% of its value.

Ever since the deep sell-off on May 19, the cryptocurrency has been trading sideways and remains in a crab market.

This week’s weakness came after the Federal Reserve started talking about tapering earlier than expected, with two hikes in interest rates coming in by 2023. Central bank turning hawkish has sent the prices in stocks crashing as well along with the yield on 10-year bonds.

The dollar is the only winner as it soared to 92.4, up from 89.5 late last month. 93.43 is greenback’s 2021 high set in late March.

Commodities are also getting crushed, with gold falling to $1,760 per ounce. The bullion is now down 8.14% this month after rallying 14.3% for two months straight in April and May.

For the past few months, we have been seeing the price of gold, the traditional store of value, and digital gold, bitcoin, moving in opposite directions. This actually started towards the end of 2020 when gold funds reported an outflow while the leading cryptocurrency saw increased interest from investors and inflows.

Bitcoin is basically gaining traction as the latest store of value and trying to capture precious metal’s market share.

This week, a German national weekly newspaper described bitcoin as “The Clever Gold.” One of the most popular news sources in the country, Die Zeit, said Bitcoin “is a new political movement of radical decentralization.”

In the meantime, the latest weakness in price has funding rates on Bitcoin perpetual contracts going negative on most of the cryptocurrency exchange with 0.01% the highest.

Back in February, 7-day APY went as high as just over 46% on Binance and above 128% on Bybit. In March, this spike again to 32% and 89% on Binance and Bybit respectively, and then 40.7% and 60.13% in April. As of writing, it is -0.06% on Bybit and -1.04% on Binance.

This is healthy for the market after experiencing high rates and yields for a long time. Spiking yields is actually a sign of lack of money, as they represent an “insane amount of leverage demand,” with billions of dollars sitting in quarterlies with *locked in* high annual rates, explained trade CL of eGirl Capital.

“When the most liquid interest rate market (huobi’s quarterlies) starts moving up aggressively as more open interest rush in, you can tell there’s no more money left on the sidelines because literally no one even had money left to even get the 30% or 40% for free.”

According to CL, Moreover, with yields on centralized exchanges already in negative, soon on-chain yields will be negative too, and “all defi protocol token holders will actually have to pay the protocol every year to continue bag holding their negative revenue bags.”

Meanwhile, open interest in the market has a long way to go, currently at just $12.61 billion, down from a $27.68 billion peak in mid-April. But the good thing is Grayscale Bitcoin Trust unlock is soon coming to an end. Discount on GBTC is currently around 14.44%, recovering from a 21.23% low last month, albeit slowly.

Amidst this, Michael Burry of “the Big Short” fame warned about losses “the size of countries” in the event of crypto and meme-stock declines.

“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry wrote in now-deleted tweets.

“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.”

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Author: AnTy

To Acquire Even More Bitcoin, MicroStrategy will Now Sell up to $1 Billion of its Shares

To Acquire Even More Bitcoin, MicroStrategy will Now Sell up to $1 Billion of its Shares

MicroStrategy Inc. has filed a “shelf” registration with the U.S. Securities and Exchange Commission (SEC) to sell up to $1 billion in common shares for general purposes.

These funds will be used to purchase more Bitcoin. The filing reads,

“We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin.”

Just this week, MicroStrategy completed a $500 million offering of 6.125% Senior Secured Notes due 2028. The company will be using the funds to buy BTC.

As of now, the company has a stash of 92,079 BTC, representing nearly 0.5% of Bitcoin’s circulating supply, which is held by a newly formed subsidiary of MicroStrategy, MacroStrategy.

MicroStrategy’s shares are currently trading at $546, down from Monday’s high of just above $600. MSTR’s share price is still down 58.5% from its all-time high of $1,315 in early February.

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Author: AnTy

Paul Tudor Jones Says 5% of Portfolio in BTC; A Store of Wealth the Same as Gold, Cash, & Commodities

Paul Tudor Jones Says 5% of Portfolio in Bitcoin; A Store of Wealth the Same as Gold, Cash, and Commodities

Paul Tudor Jones says “Go All-In” and “Buy Crypto”, Gold & Commodities if Fed Doesn’t Create A “Taper Tantrum” This Week

Legendary investor Paul Tudor Jones who called Bitcoin the “fastest horse” and was one of the first prominent investors to jump in on the cryptocurrency is now recommending 5% of a portfolio in the crypto asset.

To him, it is a way to “protect my wealth” as “over time it’s a great diversifier.”

“I look at bitcoin as a story of wealth. I look at crypto as a story of wealth. Others will argue this is a different ecosystem. It’s transactional in nature.”

Jones’ bullish comments on Bitcoin came during his interview on CNBC’s Squawk Box where he talked about inflation and how the Federal Reserve is handling monetary policy.

“You wonder why Bitcoin has a $2 trillion market cap and gold is at $1,865 an ounce. And the reason is that you have this dichotomy and policy that again questions the institution’s credibility.”

The hedge fund manager is paying close attention to this week’s Fed two-day policy meeting, which is scheduled to conclude Wednesday, in the light of recent higher consumer prices.

“If they treat these numbers… they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade.”

“If they say, ‘We’re on path, things are good,’ then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”

This is because transitory inflation doesn’t work for him, that is not how he sees the world.

In contrast, “taper tantrum” would mean correction but “that doesn’t necessarily mean it’s over,” added the founder and chief investment officer of Tudor Investment Corp.

A Great Portfolio Diversifier

According to Jones, the crypto asset is a great portfolio diversifier and he prefers 5% of his portfolio in it just like cash, gold, and commodities.

“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin. The only thing I know for certain is I want 5% in gold, 5% in Bitcoin, 5% in cash, and 5% in commodities. I don’t know what I will do with the other 80%. I want to wait and see what the Fed will do because what they do will have a big impact.”

When asked about his stance on cryptocurrency, the billionaire investor likened Bitcoin to math, saying:

“I like the idea of investing in something that is reliable, consistent, honest, and 100% certain.”

It is Bitcoin’s mathematical certainty that has appealed to him as it is in contrast to the unpredictability of the central bank’s policy which has the involvement of the human element.

“Bitcoin has appealed to me because it is a way for me to invest in certainty. Again, I look at the difference between the Fed of 2013 and the Fed of 2021. I look at the difference between Trump and Biden. Do I want to have faith in that same reliability and consistency of human nature and the linear nature of human nature which we know is anything but that?”

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Author: AnTy

Senator Ted Cruz: Investors Attracted to ‘BTC as a Hedge’ Against Inflation Due to Biden’s $7T Spending

Senator Ted Cruz: Investors Attracted to “Bitcoin as a Hedge” Against Inflation Due To Biden’s $7T Spending

Senate Foreign Relations Committee member Ted Cruz, R-Texas, believes Bitcoin has a lot of potential.

In an interview with Sean Hannity on Fox News, when asked about the cryptocurrency, Sen. Cruz said its growth is the result of inflation caused by monetary policy.

“I think it has a lot of potential. I think we’re seeing enormous growth in it. I think part of the reason we’re seeing people go to Bitcoin is because we’re on the verge of an inflation crisis. Joe Biden has proposed $7 trillion in spending and we’re seeing inflation.”

Cruz pointed out how the prices across different sectors have been going up, which is prompting people to turn to BTC as a hedge.

“We’re seeing lumber going up, homes going up, oil going up, gasoline going up, energy going up, commodities going up and I think people are going to Bitcoin as a hedge against that.”

However, he noted that there is an inherent risk with Bitcoin as an investment.

“That being said, it is a new cryptocurrency. To be honest, I don’t understand it. I think a lot of people don’t, and so I would say it has upside, but there’s risk there.”

Cruz’s bitcoin endorsement could be of significance as Bitcoin is particularly popular among millennials who see it as digital gold, a store of value, while 37% of Fox News viewers are 65 or older, according to research from 2020.

Not only the older generation has found it hard to grasp the cryptocurrency, but they are also the ones with the big pockets, with the biggest ever generational wealth transfer involving trillions of dollars underway.

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Author: AnTy

BTC’s An Alternative to Copper As A ‘Risk-On’ Inflation Hedge Instead of ‘Risk-Off’ Gold: Goldman Analyst

Bitcoin is An Alternative to Copper As A ‘Risk-On’ Inflation Hedge Instead of ‘Risk-Off’ Gold: Goldman Sachs Analyst

Instead of gold, cryptocurrencies are an alternative to copper as a hedge against inflation, said Jeff Currie, global head of commodities research at Goldman Sachs.

Bitcoin has been deemed as a hedge against the rising prices, giving competition to the traditional safe-haven asset precious metal. As inflation hedges, these assets aim to protect the investors against the fall in the purchasing power of money due to rising prices.

Inflation has been the major focus for weeks now, with the U.S. consumer price index seeing its sharpest increase since September 2008 after it rose 4.2% in April from a year ago.

Investors are worried that a quick rise in consumer prices would prompt the central bank to hike interest rates earlier than expected. As we reported, some talks of tapering can already be heard.

Legendary investor Stanley Druckenmiller also said recently that the biggest risk to the bubble that can be seen in everything would be without a doubt – “inflation strong enough that the Fed responds to it.”

“The minute they start tightening, the equity market should go down a lot.”

However, Federal Reserve officials are still of the opinion that this inflation is transitory, and they are very much willing to let it run above their 2% target for some time before raising rates.

Good Inflation And Bad Inflation

After topping out at $2,075 in August last year, bullion prices are finally showing some strength for the last two months. Gold is now back at $1,900 per ounce after falling to $1,675 in late March this year.

Bitcoin meanwhile had taken to trade sideways, currently around $37k following a 50% drawdown from ATH of $65k in mid-April.

According to Currie in an interview with CNBC, investors shouldn’t see cryptocurrencies as a substitute for gold when it comes to inflation hedges.

“You look at the correlation between bitcoin and copper, or a measure of risk appetite and bitcoin, and we’ve got 10 years of trading history on bitcoin — it is definitely a risk-on asset.”

He said Bitcoin and copper act as “risk-on” inflation hedges, unlike gold which is a “risk-off.” After surging to its ATH in mid-May before experiencing a sharp decline at the end of the month, Copper is rebounding yet again.

“There is good inflation and there is bad inflation. Good inflation is when demand pulls it, and that is what bitcoin hedges, that is what copper hedges, that is what oil hedges.”

Gold, on the other hand, hedges bad inflation, “where supply is being curtailed.”

In a note on Monday, Goldman Sachs suggested that commodities broadly remain the best inflation hedge while stocks are a good hedge against “anticipated” inflation.

Because commodities do not depend on forwarding growth rates but on-demand relative to supply, “they hedge short-term unanticipated inflation, created when the level of aggregate demand is exceeding supply in the late stages of the business cycle,” wrote Currie in the note.

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Author: AnTy

Gold Reverses the Trend as Funds Record Biggest Two Weeks of Inflows since October

Bitcoin, meanwhile, has been having its record outflows amidst the recent correction. Gold price is also on an uptrend above $1,900 while BTC is struggling for a strong move.

Gold has been performing well since March as it continues to climb towards its all-time high of $2,075 per ounce from August 2020.

Last year, in mid-March, the precious metal prices crashed along with the rest of the asset classes, falling to $1,450. And in less than five months, gold prices surged by over 43%.

But even since this ATH, gold has been going down, falling to about $1,675 in March this year. Now, yet again, following the 19.3% drawdown, gold prices are back on track to the upside.

This week, it went to $1,912 and is currently trading around $1,890, back at early January levels.

Interestingly, the upside in gold prices coincides with the downside in Bitcoin prices which has been falling throughout this month. Last month, BTC made its ATH at nearly $65k and then dumped about 54% to $30k low last week too late January levels.

Bitcoin price is being choppy right now, trading between $32k and $42k.

As we reported, towards the end of last year, gold started recording huge outflows. In the six months to April, over $20 billion left bullion-backed ETFs. Meanwhile, bitcoin started seeing tons of inflows helping the cryptocurrency break into new highs.

But, since late April, bitcoin has been seeing record outflows, though mere 0.2% of total assets under management (AUM). This is the exact opposite of what the bullion has been experiencing.

ETF Gold Assets Falling

Gold funds have had their biggest two weeks of inflows since October as traditional hedge gets back in the limelight partly at the expense of Bitcoin. While Bitcoin is struggling with weak price actions as it takes rest following its 1,610% uptrend from March 2020 to April 2021, gold is seeing its revival amidst weaker dollar and falling inflation-adjusted yields.

“There is still so much confusion between Bitcoin and gold,” wrote Charlie Morris, founder of ByteTree, in a note.

“They coexist, and they both thrive in an inflationary environment.”

According to Morris, fund flows have an unusually large impact in boosting the gold price, and Bitcoin’s outgoing flows are depressing prices.

Investors pulled almost $14 billion from the SPDR Gold Shares ETF through to the start of May; during this period, ETFs tracking gold sold almost 12 million troy ounces. Now, some $1.6 billion has flowed back into the fund to put May on course for the best month since July.

SPDR AUM, which had fallen $56.15 billion on March 30 from last August’s $84.24 billion high, is now back at $63.75 billion, as per Ycharts.

However, enthusiasm for Bitcoin hasn’t gone away, and Bloomberg Intelligence strategist Mike McGlone, who has a price target of $100,000 per BTC, says there’s still a chance crypto can become a digital reserve asset, and that makes it worth the risk.

“Gold may be losing its significance, so it may be simply prudent to diversify,” wrote McGlone.

“The human nature of acknowledging a new asset class is what we see as a primary Bitcoin support.”

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Author: AnTy

Former US Treasury Secretary says Crypto is “Here to Stay” as a “Kind of Digital Gold”

Former US Treasury Secretary says Crypto is “Here to Stay” as a “Kind of Digital Gold”

According to Lawrence Summers, “Crypto has a chance of becoming an agreed form that people who are looking for safety hold wealth in.”

Former US Treasury Secretary Lawrence Summers is a believer in crypto, and yet again, he came in its support as he said that it could be a feature of the global market like “digital gold” even if their importance in economies will be limited.

Cryptocurrencies offer an alternative to gold for those seeking an asset “separate and apart from the day-to-day workings of governments,” said Summers in an interview with Bloomberg.

Summers is on the board of directors of Square Inc.; the payments company revealed in its Q1 2021 results that its sales more than tripled, driven by skyrocketing Bitcoin purchases through its Cash App.

“Gold has been a primary asset of that kind for a long time,” said Summers, who believes crypto “is here to stay” and could do that “as a kind of digital gold.”

“Crypto has a chance of becoming an agreed form that people who are looking for safety hold wealth in.”

If the crypto captures even a third of the total value of gold which has a market cap of around $10 trillion, Summers said that would be a “substantial appreciation from current levels,” and that means there’s a “good prospect that crypto will be part of the system for quite a while to come.”

With Bitcoin’s current market cap around $683 billion, achieving gold’s market cap would have its price appreciating around 14-fold or more.

Yassine Elmandjra, a crypto analyst at Cathie Wood’s Ark Investment Management, is of a similar opinion and said earlier this month that if that is to happen, “it’s not out of the question that Bitcoin will reach gold parity in the next five years.”

Summer meanwhile said that cryptocurrencies do not matter to the overall economy. According to him, they were unlikely to ever serve as the majority of payments either.

Reiterating his worry about the US economy risking overheating in the interview, Summers said the Federal Reserve should be more aware of the inflationary threat.

“I don’t think the Fed is projecting in a way that reflects the potential seriousness of the problem,” he said. “I am concerned that with everything that’s going on, the economy may be a bit charging toward a wall.”

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Author: AnTy