81% Using Bitcoin for Long-term Investment, S2F Analyst PlanB’s Poll Reveals

A whopping 81% of people say that they are primarily using Bitcoin as a long-term investment, according to a recent poll. The poll was conducted by popular analyst PlanB who is known for using the scarcity-based Stock-to-Flow model to determine the price of BTC.

While 7.3% used BTC for trading purposes, only 3.1% used the digital asset for payments and purchases. This makes sense given the scarcity of Bitcoin, which means the scarcer the object the more its value.

Bitcoin climbed to its all-time high of $20,000 during its 2017 bull rally and currently trading around $7,000, BTC/USD is still down 64% from its ATH. With price prediction going as far as $100k by December 2021 and a million dollar per BTC further in the future, investors would want to HODL it till a higher price. PlanB said,

“These invested bitcoins are locked away for years. The amount of bitcoin available for buyers might be far less than we think. And the 1800 available miner coins per day is going to 900 in about 18 days.”

Interestingly, these long-term investors are currently increasing their positions and accumulating more BTC each day as per the data provided by Glassnode which reported,

“Bitcoin HODLer Net Position Change has been growing daily since the end of March and is now hitting yearly highs.”

Also, new money is flowing into the crypto market via stablecoins. USDT addresses with a holding period of over 30 days have doubled since February as their volume increased 135%. IntoTheBlock tweeted, Tether is actually being,

“used as a store of value as the demand for USD is increasing worldwide due to the current crisis.”

Cryptos on the right track for mass adoption

A recent survey on Bitcoin and other cryptocurrencies usage, however, revealed that 34% of the survey respondents use digital currency for online purchases and payments.

While 23% use digital currency for long-term investment, 20% see it as a safe haven/digital gold, 16% for portfolio diversification, 16% for control of their own data, 24% because they have a general interest in the technology and another 24% consider it for short-term investment/speculation purposes.

A small survey pool, 3,000 respondents compared to 14,370 voters on the poll, too many options, and inclusion of other cryptos like Ether, XRP being part of the survey could be the reason for the differences in results.

Given that digital payment methods are faster with lower cost while offering convenience, digital currencies like XRP are gaining traction in the payments field. However, they were the least popular method amidst the likes of online baking, PayPal, and mobile apps like Google Pay and AliPay. Eric Anziani COO of Crypto.com, the company that conducted the survey along with Economist Intelligence Unit said,

“This is a strong indicator of a trend that shows digital currencies are on the right track for mass adoption; with its potential to enhance the existing payment infrastructure and efficiency.”

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Author: AnTy

Bitcoin & Gold Outperform Traditional Equity/Bond Portfolios In Q1 2020

  • Over the long-term, Bitcoin and S&P 500 correlation likely to return near zero levels
  • Allocating a small percentage to either gold or bitcoin increases the resistance of a portfolio

Historically, Bitcoin has been relatively uncorrelated with the S&P 500, staying between .15 and -.15 since 2012. Over the last month, however, the correlation shot up. It peaked on Black Thursday when both crypto and equity markets experienced historic and sudden losses.

But it doesn’t mean Bitcoin and S&P 500 are suddenly correlated because this short-term correlation spike has been under very unique circumstances, shared Coin Metrics in its latest report.

The news of spreading COVID-19 pandemic also has the correlation between SPY and GLD suddenly surging to its highest level since 2013, likely due to liquidity crunch leading to sell-offs across the board.

As a matter of fact, Bitcoin fundamentals didn’t change over the last month although the outside world did. In the short-term, it is expected to continue but in “over the long-term, Bitcoin and S&P 500 correlation are likely to revert to the mean and return to levels of near zero.”

As for its correlation with gold, historically it wasn’t very strong but suddenly increased in March just like with SPY.

“Although Bitcoin and gold may not act as safe havens during a global liquidity crisis, they may act as a safe haven during increases in monetary inflation and quantitative easing.”

Just a small allocation to Bitcoin outperforms other portfolios

Interestingly, both bitcoin and gold outperformed traditional equity portfolios.

In Q1 of 2020, risky assets across the world retracted as lockdowns to curb the spread of COVID-19 put pressure on the world economy. While both of these hard assets declined alongside US equities as investors fled to cash, Bitcoin and gold have recovered the majority of their losses.

Crypto data tracker TradeBlock analysed three different model portfolios, Equity + bond 60:40, Equity + bond + bitcoin 55:35:10, and Equity + bond + gold 55:35:10.

This revealed that a portfolio with just a modest allocation to bitcoin outperformed the equity and bond only portfolio and also the one containing gold.

“Allocating a small percentage to either gold or bitcoin increased returns.”

Source: TradeBlock

This week, US banks will be reporting their first-quarter earnings which were ridden with the challenge of near zero interest rate and a free-falling US economy.

Japanese conglomerate SoftBank is expected to lose nearly $17 billion for their tech-focused Vision Fund. Wells Fargo’s profits plunged about 50% in the Q1 and its shares dropped over 40% YTD while JP Morgan’s net income was down 69% and its shares are down 30% YTD.

Public crypto companies also reported losses but for Q4 2019. In the past week, Galaxy Digital reported a net income loss of $32.9 million and experienced layoffs in February 2020. Canaan reported a net income loss of $148.6 million loss for the fourth-quarter ending 2019. The Bitcoin miner equipment manufacturer’s net income declined and its share price (CAN) dropped 60% since its IPO.

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Author: AnTy

BTC’s Correlation With Gold Has Increased, Hinting At A Growing Safe-Haven Status: VanEck

  • Long-term bitcoin correlations with traditional asset classes remain low
  • Bitcoin ETF may have “significantly” reduced the volatility during the recent sell-off

In the past few weeks during the COVID-19 pandemic, we saw the correlation between bitcoin and the stock market surging to a new high. However, according to Gabor Gurbacs, a digital asset director at VanEck, bitcoin’s correlation to gold also jumped in 2020.

Talking about the investment case for Bitcoin, in his latest report Gurbacs said, previously, because of bitcoin’s low correlation to traditional asset classes including broad market equity indices, bonds, and gold, it has been good for portfolio diversification.

But its correlation with traditional assets began to increase during the COVID-19 induced global market sell-off. And still, “a small Bitcoin allocation may have reduced volatility for 60%-equity/40%-bond portfolios.”

Even during sell-off, Bitcoin reduced volatility

Notably, Bitcoin’s correlation with gold reached levels never seen before in the past four years.

Source: VanEck Report

Over the past four weeks, Bitcoin’s correlation with gold was 0.49, 0.19 with the Nasdaq 100, 0.17 with U.S. bonds, and 0.15 with the S&P 500. Also, we saw Bitcoin’s correlation with emerging market currencies at 0.31, 0.27 with oil, and 0.18 with U.S. real estate.

Overall, in 2020, so far, Bitcoin’s correlation with gold is 0.42, 0.16 with the Nasdaq 100, 0.13 with U.S. bonds, and 0.13 with the S&P 500. As for its correlation with emerging market currencies and oil is 0.29 and 0.15 with U.S. real estate.

Coming onto the investment case, when having a proportional addition of 0.5%, 1%, and 3% allocation to bitcoin in a 60% equity/40% bond blended portfolio, although the YTD portfolio performance with a BTC allocation was only slightly better than the 60-40 blend, just a small addition of BTC to a portfolio “significantly” reduced the volatility.

This volatility reduction was even “more pronounced” during the market sell-off in mid-March. This means, even when crashing, bitcoin is a better bet. Gurbacs said,

“We conclude that while long-term bitcoin correlations with traditional asset classes remain low, in the short-term, the COVID-19 induced market sell-off increased bitcoin correlations with gold may potentially hinting to bitcoin’s increasing safe-haven status.”

Bitcoin ETF further helpful

A Bitcoin ETF, according to Gurbacs may have further “significantly” reduced the volatility during the recent sell-off.

Besides reduced volatility, ETFs offer daily proof of reserves (NAV), transparent holdings, transparent prices, high liquidity, proper tax documents, and investor protection, he said.

For now, there is no Bitcoin ETF proposal left for the SEC to review after rejecting the last one in February this year.

Recently, we reported that Kraken’s VIP traders and investors are hopeful of a Bitcoin exchange-traded fund (ETF) this year.

As per the exchange’s 2020 Sentiment Survey, a staggering 48% of respondents said “yes” to a Bitcoin ETF approval by the US Securities and Exchange Commission (SEC) in 2020 while the majority 52% still leans towards a “No”.

Regionally, 60% of South Americans, 51% of Europeans, 49% of North Americans, 46% of Middle Easterns, 30% Asians, and 14% of Africans comprise the “yes” people.

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Author: AnTy

ZCASH Price Prediction: Long-term (ZEC) Value Forecast – July 28

Zcash Says Goodbye to Its Name, Rebrands as 'Electric Coin Company'
  • The journey to the south may be sustained in the long-term outlook.
  • $56.77 in the demand area is the bears’ targets in days ahead.

ZEC/USD Long-term Trend: Bearish

Supply zone: $120.00, $140.00, $160. 00
Demand zone: $50.00, $40.00, $30.00

The cryptocurrency long-term outlook remains in a downtrend. The bears attained their dominance in last week session with a low at $66.31 in the demand area on 27th July.
The trendline is a strong resistance with a bounce to the downside each time price touches it. The touch came during yesterday session as ZECUSD rose to $75.22 in the supply area.

$56.77 in the demand area remains a target as the momentum increased down south. This was a market correction of the bears’ impulsive move.

The new week is starting on a bearish note at $69.03 with a drop at $66.77 below the two EMAs. It suggests a strong bears pressure on the cryptocurrency in the days ahead coupled with the signal of the stochastic oscillator pointing down at 20%.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha

IOTA Price Prediction: Long-term (MIOTA) Value Forecast – July 28

Iota-Foundation-partners-with-City-of-Austin-to-better-the-transportation-systems-in-the-city

The bears sustained momentum in the long-term outlook.
$0.02500 in the demand area is on the card.

IOTA/USD Long-term Trend -Bearish

Supply zone: $0.6000, $0.7000, $0.8000
Demand zone: $0.1000 $0.0800, $0.0600

IOTA long-term outlook continues in a down-trending market. With a low of the week at to $0.2768 in the demand area within the 23.6 fib area, the bears are set for a long journey down south in the new trading week.

The week opened on a bearish note at $0.2869 and price already down to $0.2753, the journey down south in the long-term may be confirmed.

Price is below the two EMAs and the stochastic oscillator signal points down at 36%. These suggest a downward momentum in price. Increased bearish momentum may result in new candles opened and closed below the two EMAs.

$0.2510 in the demand area may be retested as the bears’ pressure becomes stronger in days ahead.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha

MONERO Price Prediction: Long-term (XMR) Value Forecast – July 28

Monero-Fixes-All-Vulnerabilities-Found-During-Second-Audit-Of-Bulletproof-Protocol

• The long-term outlook is in the downtrend.

  • $72.00 in the demand area is the bears’ target in the new week.

XMR/USD Long-term Trend: Bearish

Supply zone: $140.00, $180.00, $220.00
Demand zone: $40.00, $20.00, $10.00

XMR remains in a bearish trend in its long-term outlook. The bears held on to the market during last week session with a drop to $78.43 in the demand area on 24th July. This is within the 23.6b fib area a trend continuation zone.

The resistance at the 10-EMA rejected further upward price movement at $83.71 in the supply area.

$83.71 in the demand area was the low of the week as the bears’ momentum increased.
Exhaustion denoted by wicks in the candles is seen in yesterday and today’s candles with today’s opening price at $83.71. The sustained pressure by bears has the coin down to $78.14 in the demand area.

Price is below the two EMA and the stochastic oscillator signal points down at 34% which suggest downward continuation in price in the long-term.

$72.00 in the demand area is on the card for a retest as the journey down south continues in the new week.

The views and opinion as expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Azeez Mustapha

BINANCE COIN Price Prediction: Long-term (BNB) Value Forecast – July 28

Bitcoin-Dominance-to-Last-in-2019-Says-Binance-Survey

• The coin long-term outlook is a bearish trend.
• $24.00 in the demand area is on the card.

BNB/USD Long-term Trend: Bearish

Supply zone: $60.00, $80.00, 100.00
Demand zone: $10.00, $8.00, $6.00

BNBUSD is in a downtrend in the long-term outlook. The bears’ strong pressure on the coin led to the breakdown at the lower demand area of the range at $28.00 on twice on 24th and 27th July.

The bulls had a brief push back up at $30.13 on these two days. The week ended with the cryptocurrency dropping to $26.69 in the demand area.

The new week began opened at $27.69 with a brief retest at the broken demand area as price rose to $27.97. These confirmed the correction and resumption of the bearish momentum in the long-term.

Price is below the two EMA crossover and the signal of the stochastic oscillator points down at 48%. This suggests downward momentum in price in the new week with target initially at $24.00 in the demand area.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha

IOTA Price Prediction: Long-term (MIOTA) Value Forecast – July 21

  • The long-term outlook is in downtrend trend.
  • The bears may retest $0.2500 in the supply area is on the card.

IOTA/USD Long-term Trend -Bearish

Supply zone: $0.6000, $0.7000, $0.8000
Demand zone: $0.1000 $0.0800, $0.0600

IOTA long-term outlook remains a down-trending market. The downward price movement due to the bears’ pressure was strong with the coin plunging to $0.2515 in the demand area on 16th July. This was a15pips away from the target at $0.2500 predicted in last week article.

With the inside bar formation of 17th July, the bulls stage a comeback with the cryptocurrency up at $0.3491 in the supply area but end the week with as an inverted hammer an indication of exhaustion.

Price is below the two EMAs as the week opened on a bearish note at $0.3194. This is at the 38.2 fib area a trend continuation zone suggesting a continuation in the coin downward movement in the long-term with $0.2500 as bears target.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha

NEO Price Prediction: Long-term (NEO) Value Forecast – July 13

Singapore based COSS exchange lists NEO With 4 Different Trading Pairs

NEO/USD Long-term Trend: Bearish

Supply zone: $15.00, $20.00, $25.00
Demand zone: $2.00, $1.00, $0.50

NEO is in a bearish trend in its long-term outlook. The tweezer top formed at $17.99 in the supply area on 9th July at the 23.6 fibs implies upward price rejection and subsequently the bears’ return. NEOUSD plunges to $15.40 in the demand area breaking the 10-EMA.

The resistance at the 50-EMA was broken due to increased bears pressure as price drops further down to $13.20 in the demand area today 13th July as the trading week draws to a close.

The demand area is the 61.8 fibs a trend reversal zone. Exhaustion of the bearish momentum was not obvious hence reversal at the fib area may occur hence a deeper retracement to 78.6 or 88.6 in the new trading week may occur as the pressure on the coin becomes much stronger in the long-term.

The signal of the stochastic oscillator points down at 15% in the oversold region suggesting a downward momentum in price of the cryptocurrency.

The views and opinion as expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha

TRON Price Prediction: Long-term (TRX) Value Forecast – July 13

TRON-Weekly-Update-Shows-The-Rise-In-Their-dApp-Performance-Active-Users-Over-700K-Now

• The bears are in control of the long-term outlook.
• Traders may consider selling after pullbacks with bearish candle reversal pattern as confirmation

TRX/USD Long-term Trend: Bearish

Supply zone: $0.0500, $0.06000, $0.000
Demand zone: $0.01000, $0.00800, $0.00600

Tron long-term outlook is a down-trending market. The bears were back in control within the range after the bullish exhaustion at $0.03579 on 8th July. The break of the resistance of the two EMA confirmed the bears’ takeover as price fell further to $0.03106 within the range on 10th July.

The large bearish candle at $0.03190 broke the lower demand area as price fell to $0.02690 in the demand area on 11th July which is the low of the week.

Price is below the two EMAs crossover with the signal of the stochastic oscillator pointing down at 15% in the oversold region which suggest downward movement in price the days ahead.

$0.02400 in the demand area is a key demand area and may be retested as the bears continue the journey down south

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha