Ark Invest Joins the BTC Futures ETF Race, Valkyrie Updates Prospectus for Potential Approval

Cathie Wood’s Ark Throws its Hat in the Bitcoin Futures ETF Ring, Valkyrie Updates Prospectus for Potential Approval This Month

Cathie Wood had joined the race of Bitcoin Futures exchange-traded fund (ETF) with its ARK 21Shares Bitcoin Futures Strategy ETF (ARKA).

The ETF plans to invest Bitcoin futures contracts on commodity exchanges, according to a filing with the Securities and Exchange Commission (SEC).

Alpha Architect, an issuer of ETFs, submitted the filing with Switzerland-based 21Shares AG’s US affiliate listed as the sub-advisor. Ark Investment will provide marketing support for the sub-advisor.

“It’s a no brainer for Ark because they will likely be able to instantly seed it with about half a billion that they currently have in GBTC,” said Eric Balchunas, a senior ETF analyst for Bloomberg Intelligence.

“Ark also has a strong base of younger investors who probably would use this as well. Closest thing to a surefire hit as you’ll see.”

Ark Investment has already given its name for the physically-backed ETF — ARK 21Shares Bitcoin ETF (ARKB) that would track the performance of the leading cryptocurrency as measured by the S&P Bitcoin Index, according to a June filing.

But all the attempts to get a physically-backed Bitcoin ETF since 2013 have failed so far, with the SEC rejecting every one of them. The hope for a Bitcoin ETF has rejoiced this month due to SEC Chair Gary Gensler hinting his support for a futures-backed ETF that offers greater investor protection for months now.

The optimism around the Bitcoin ETF approval is what’s driving the Bitcoin price action right now, which has surged to its highest level since May. Open interest on Bitcoin futures at CME has also hit a new ATH.

Ever since Gensler announced that he would be more open to approving an ETF submitted under the Investment company Act of 1940, nine Bitcoin futures ETF applications have been filed so far.

Everyone in the crypto industry is now eagerly awaiting October 18th, the day the SEC has to decide on ProShares Bitcoin Strategy ETF.

“No news from SEC over the next week is a positive for a potential ETF launch in our view,” said James Seyffart, ETF analyst at Bloomberg Intelligence.

However, only three filings are limited to futures, including Valkyrie Bitcoin Strategy ETF, whose deadline is on October 25th, BlockFi Bitcoin Strategy ETF, whose deadline doesn’t come until the end of the year on December 22nd, five days later, Ark21 SharesBitcoin Futures Strategy ETF.

Ark’s filing is actually the second one after Valkyrie that doesn’t seek to invest in Canadian-listed funds that provide exposure to bitcoin. Bloomberg’s Balchunas said the rumor is that SEC “wants them to be strictly futures,” which puts Valkyrie’s chance of getting an approval higher than ProShares.

On Wednesday, Valkyrie also updated their bitcoin futures ETF to add the ticker BTF, but information on fees still hasn’t been added. These types of updated prospectus filings, Balchunas said, “typically only happens when ducks in row ready for launch.”

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Author: AnTy

Assets in Crypto ETFs Triple in Just Six Months, Cathie Wood’s Ark to Start Investing in Canadian Bitcoin ETFs

Assets in Crypto ETFs Triple in Just Six Months, Cathie Wood’s Ark to Start Investing in Canadian Bitcoin ETFs

Bitcoin bull Cathie Wood’s Ark Investment Management is allowing one of its funds to invest in Canadian Bitcoin ETFs.

For this, the firm tweaked the prospectus for its $5.7 billion ARK Next Generation Internet ETF (ARKW).

This modification was made in a late-Friday filing that included that it may invest in “other pooled investment vehicles that invest in bitcoin (CRYPTO: BTC), such as exchange-traded funds that are domiciled and listed for trading in Canada (Canadian Bitcoin ETFs).”

A similar move was made by the $1.3 billion Amplify Transformational Data Sharing ETF (BLOK), a blockchain-focused product that showed a tiny stake in three Canadian Bitcoin ETFs.

Ark investment isn’t new to Bitcoin exposure, however, as ARKW has 5.5% of its fund invested in the Grayscale Bitcoin Trust, the second-largest holding in the fund.

Ark Invest owns more than 8.5 million shares of GBTC, which is currently trading at a discount of 14.58%.

Interestingly, the shares of this $30 billion vehicle have been trading at a discount ever since the first Canadian Bitcoin ETF, Purpose Bitcoin ETF (BTCC), was launched in February. GBTC is now aiming to convert its closed-ended trust into an ETF and has been making a lot of hires for the same.

The US ETF market is $6.8 trillion, more than 90% of which is controlled by BlackRock, State Street, Vanguard, Charles Schwab, Fidelity Investments, Invesco, and investors and issuers are eagerly awaiting the approval of a cryptocurrency ETF to invest in.

But the US Securities and Exchange Commission (SEC) has yet to approve a single Bitcoin ETF though the first such application was filed by Winklevoss twins in 2013. Ark itself has filed for a Bitcoin ETF by teaming up with Switzerland-based 21Shares AG.

SEC Chair Gary Gensler recently did signal openness to a futures-backed ETF.

Canada, meanwhile, has approved and listed several ETFs for both Bitcoin and Ether on Toronto Stock Exchange (TSX).

Total assets in the cryptocurrency ETFs globally have actually tripled to $9 bln as of June from $3 bln at the end of last year, according to data from ETFGI, a consultancy. The sums committed to leveraged and inverse ETFs, which amplifies gains, meanwhile has risen to a record $109 bln from $79 bln at the end of 2019.

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Author: AnTy

In 1971 President Nixon Broke Money, Giving Central Banks Absolute Monetary Authority

The Nixon shock and subsequent dissolution of the Bretton Woods system have resulted in untenable inflation, mounting national debt, and extreme income and wealth inequality as the world’s largest economy stands on the brink of hyperinflation.

In June this year, Deutsche Bank issued a stark warning to the US after the Federal Reserve’s balance sheet doubled during the pandemic,

“US macro policy and, indeed, the very role of government in the economy, is undergoing its biggest shift in direction in 40 years. In turn, we are concerned that it will bring about uncomfortable levels of inflation.”

How did we get here? How did money become so fundamentally broken? Who broke it? Let’s dive into that story.

Bretton Woods Agreement (1944)

The whole premise of the Bretton Woods agreement was to pursue a fixed exchange rates system backed by gold as the universal standard to forestall competitive devaluation of sovereign currencies and promote free trade in the aftermath of WWII.

Britain wanted flexible rates. However, given that Britain emerged from the war as the debtor and the US now poised to assume the role of creditor, Britain had to settle for a compromise of fixed but adjustable rates.

As per the agreement, the US had a commitment to back dollars held in foreign reserves with gold at a rate of $35 per ounce. Other sovereign currencies were pegged against the dollar and were required to be kept within 1% of the fixed-rate by buying/selling dollars.

Breton_Woods_Agreement

Foreign currencies pegged to the dollar. Dollar pegged to gold

For as long as the US held the majority of the world’s gold reserves, this system would work, and it did work well in the early years as the US had a surplus of balance of payments.

What led to the collapse of this system?

The Marshall plan and US adoption of expansionary policies in the late fifties reversed the balance of payments in favor of other nations. By 1960, the US began running a deficit.

This, combined with the depletion of US gold reserves, would portend the beginning of the end for the Bretton Woods system. As dollar claims on gold outpaced the supply of gold, it created an arbitrage opportunity for other nations to further deplete US gold reserves.

What prevented this scenario was that everyone had a common interest in preserving the system, but only if the US would not resort to devaluing the dollar. In 1960, even before assuming office, JFK was forced to quickly move to allay such fears.

But without the US devaluing the dollar, other nations were required to revalue their own currency to redress the balance, which they were not keen on pursuing as it would adversely affect domestic policy.

A gold pool, known as The London Gold Pool, was formed with European nations to pool all the gold reserves to keep the ratio in check. However, demand for gold soon outpaced supply, and the gold pool was abandoned by 1968.

Among other abortive measures, an international currency (imagine that!) to replace the dollar was mooted in 1964 to salvage this system, but an agreement on that (what eventually became SDR) could not be reached in time.

By 1969, there was a run on the US gold reserves as other nations tried to cash their dollars to redeem gold. This led to emergency measures from President Nixon, known as the Nixon shock, which canceled the convertibility of the US dollar to gold and closed the gold window.

Thus collapsed the Bretton Woods system, and it resulted in the stagflation of the ’70s, a combination of high unemployment and high inflation, as the US dollar lost a third of its value.

In hindsight, the system was always untenable in the long run as it tried to promote free trade while allowing one country, the US, the “exorbitant privilege” of having its currency serve as the international reserve currency in a highly competitive macro-environment post-WWII.

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The New York Times pans the Nixon’s paper standard, 1971

The Triffin paradox

In 1959, just as the US began running a deficit, Yale professor Robert Triffin proclaimed that the Bretton Woods system was unworkable and would inevitably collapse as the dollar could not retain its exorbitant privilege of being the reserve currency without running up deficits.

Any sovereign currency serving as a global reserve currency is required to run up a deficit to meet the world’s demand for the currency. This creates a conflict of interest between domestic and international monetary policies.

The Nixon shock and subsequent collapse of the Bretton Woods system proved the Triffin paradox right, but ironically only further exacerbated the exorbitant privilege of the US by now allowing the Federal Reserve absolute authority on monetary policy as the dollar was no longer required to be backed by gold reserves.

The Fed’s newfound ability to continually manipulate supply, interest rates, and velocity of money led to other deleterious consequences such as the Cantillon effect and exploitation of moral hazards that inhere within the fractional reserve banking system.

Perpetual expansion to spur economic growth sent deficits spiraling out of control, resulting in a vicious cycle of inflation and ever-increasing, now extreme, economic inequality. Let’s look at the metrics,

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US national debt has risen from $398 billion in 1971 to 29 trillion as of this writing.

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Income of the top 0.01 parabolic divergence from per capita GDP since 1980

Screenshot_63

Wealth owned by the top 0.1% crossed the bottom 90% in the aftermath of the global financial crisis of 2008

The Triffin paradox has remained an inscrutable puzzle for economists to this day.

What could solve the Triffin paradox?

Perhaps a decentralized, borderless, permissionless, durable, provably finite, infinitely divisible, instantly portable, objectively verifiable alternative to gold that doesn’t allow any one nation or its central bank an exorbitant privilege?

What if its monetary policy wasn’t arbitrary, couldn’t be controlled or manipulated by humans, but was predicated on a universal constant? Something like… mathematics?

Voila! Fix the money. Fix the world.

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Author: Lamps T

Cathie Wood’s Ark Investment Bets More on Both Bitcoin and Ethereum

Cathie Wood’s Ark Investment Bets More on Both Bitcoin and Ethereum

Cathie Wood’s Ark Investment has reported an increase in the ownership of Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) at the end of the second quarter.

In a new SEC filing, Ark reported 9,557,723 shares of GBTC, an increase of just over 10% from 8,675,881 GBTC shares reported at the end of March. In July, Ark bought just over 450k GBTC shares more, which would be reported after the end of Q3.

As for the ETHE shares, Ark reported owning 721,936 shares, which is a nearly 13% jump from 639,069 at the end of the first quarter.

Ark’s combined holdings of GBTC now represent a weightage of 0.65% across all of its funds, down from 0.9% at the end of March but up from 0.45% in June.

Grayscale Investments is the world’s largest digital asset manager in the world which; just this week hired ETF veteran David LaValle as its global head of ETF to convert its $26.6 billion Bitcoin fund into an exchange-traded fund (ETF).

US SEC, meanwhile, has yet to approve a single Bitcoin ETF while in an interview with CNBC this week, SEC Chair Gary Gensler said that he would anticipate that his staff will “review potentially some ETF filings around investing in bitcoin futures on the Chicago Mercantile Exchange under what we call in our craft the 1940 Act.”

The 1940 Investment Company Act regulates mutual funds and closed-end funds, which intends to provide significant investor protections.

Gensler shared a similar openness to a Bitcoin futures-backed ETF at the Aspen Security Forum on Tuesday, following which $364 billion Invesco and ProFunds which manages $60 billion, filed for ETFs that provide exposure to Bitcoin through futures.

“I’d be shocked if we don’t have a futures-based [ETF] product by year-end,” said Dave Nadig, chief investment officer and director of research of ETF Trends and ETF Database.

In the interview, Gensler also referenced GBTC, which, unlike an ETF, is a closed-end fund hence bearing a high premium or discount and not offering tax benefit either.

“We already have some funds in the crypto space. The largest has been around for about seven years, it’s not an ETF, but it’s been around; it’s about $20 billion in size,” Gensler said.

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Author: AnTy

Cathie Wood’s Ark Investment Buys Another Batch of Coinbase (COIN) Shares

Cathie Wood’s Ark Investment Buys Another Batch of Coinbase (COIN) Shares

This continuous addition of COIN stocks has Coinbase now accounting for 4.59% of ARK Innovation ETF (ARKK) Holding.

Cathie Wood’s Ark Investment started this week by adding to its COIN shares stash. On Monday, Ark bought another 113,043 shares of cryptocurrency exchange Coinbase.

Ark made a sizable purchase right on the first week of Coinbase’s direct listing on Nasdaq, and since then, the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF) have been gradually adding shares.

For the past two weeks, Ark has been continuously buying COIN shares, increasing its exposure to the largest crypto exchange in the US.

Ark buying COIN

This week, COIN shares were added to the ARK Fintech Innovation ETF (ARKF) that invests primarily in up-and-coming fintech stocks. Some of its biggest holdings include Square and PayPal — both of which offer cryptocurrency services, along with Zillow, Pinterest, and Alibaba.

The fund currently has $4.2 billion in net assets.

With this, Coinbase now accounts for 4.59% of ARK Innovation ETF (ARKK) Holdings, as of July 27, 2021. Coinbase is currently the top 10-holding, 7th largest, in ARK’s flagship Innovation fund that invests primarily in disruptive innovation across multiple industries.

Tesla is ARKK’s biggest holding with a 10.28% share, the only company with a share in double digits. The next biggest holding of 6.63% is Roku.

The electric car maker holds Bitcoin on its balance sheet and its CEO Elon Musk also personally owns BTC, ETH, and DOGE. Musk recently revealed that his other company SpaceX is also a long-term holder of Bitcoin. BTC 5.40% Bitcoin / USD BTCUSD $ 39,392.19
$2,127.185.40%
Volume 35.06 b Change $2,127.18 Open $39,392.19 Circulating 18.77 m Market Cap 739.34 b
3 h Bitcoin Miner Crusoe Energy Eyes Expansion Play, Seeks Outside Investment 9 h Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million 9 h Bitcoin Hash Rate Recovers to 110 TH/s as Price Rallies Past $40k, Thanks to Largest Short Squeeze Ever
ETH 2.68% Ethereum / USD ETHUSD $ 2,297.67
$61.582.68%
Volume 23.06 b Change $61.58 Open $2,297.67 Circulating 116.87 m Market Cap 268.52 b
9 h Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million 9 h Bitcoin Hash Rate Recovers to 110 TH/s as Price Rallies Past $40k, Thanks to Largest Short Squeeze Ever 10 h Goldman Sachs Applies For a DeFi ETF, But Without a Single DeFi Token
DOGE 0.46% Dogecoin / USD DOGEUSD $ 0.21
$0.000.46%
Volume 2.23 b Change $0.00 Open $0.21 Circulating 130.61 b Market Cap 26.9 b
9 h Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million 11 h Cathie Wood’s Ark Investment Buys Another Batch of Coinbase (COIN) Shares 1 d Robinhood Considering Offering US Retirement Accounts (IRAs), Which Are Holding $12.6 Trillion

As of writing, COIN shares are trading at $245.45, up from $220.61 a week back but still way off of its debut high of $429.54.

Meanwhile, a class-action lawsuit has been filed against Coinbase, its executives, and investors over the company’s Nasdaq listing. The lawsuit claims that the statements made by the company before its IPO were false and misleading.

The lawsuit is on behalf of investors concerning the company’s possible violations of federal securities laws.

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Author: AnTy

Crypto Bull Cathie Wood’s Ark Investment and 21Shares File for A Bitcoin ETF

Cathie Wood’s Ark Investment is interested in a Bitcoin exchange-traded fund (ETF).

Ark’s total ETF assets under management are currently at $47.8 billion, up from a 2021 low of $42.6 billion at the end of last month. Wood’s firm has taken in $15.8 billion in fresh cash this year.

After buying the latest dips on Coinbase (COIN) and Grayscale Bitcoin Trust (GBTC) shares, Ark seeks to lend its name to a Bitcoin ETF.

The ETF is called “ARK 21Shares Bitcoin ETF,” which will trade under the ticker ARKB. It will be tracking the performance of the world’s largest cryptocurrency as measured by the S&P Bitcoin Index.

Lukka Inc. is the data provider and calculation agent for the Index with the current exchange composition of the Index, including Binance, Bitfinex, Bitflyer, Bittrex, Bitstamp, Coinbase Pro, Gemini, HitBTC, Huobi, Kraken, KuCoin, and Poloniex.

US-based 21Shares is an affiliate of Zug, Switzerland-based 21Shares AG, which is listed as a sponsor of the proposed ETF in the SEC filing Monday. For this, Ark Investment will be providing marketing assistance.

“This makes a lot of sense because Cathie is on the board of 21Shares, which is a big progressive crypto issuer in Europe,” said Eric Balchunas, ETF analyst for Bloomberg Intelligence.

“This gives 21Shares penetration in the U.S. and it’s on-brand for Ark given how vocal and bullish they’ve been on crypto.”

Wood joined the board of Amun Holdings, the parent company of 21Shares, in May after personally investing in the company.

Regulators, however, have yet to approve a single Bitcoin ETF in the US while several have been filed with the Securities and Exchange Commission (SEC), which recently said that it was seeking more public comment on one such proposal.

“I don’t know if it increases the chances of it getting approved, but because she does have a loyal investor following when a Bitcoin ETF does get approved, she wants to be in the race,” said Mohit Bajaj, director of ETFs at WallachBeth Capital.

Wood’s ARK Next Generation Internet ETF (ARKW) holds GBTC. Should this Bitcoin ETF get approved, Wood can swap out of GBTC to hold shares of her own ETF, Balchunas said. Grayscale itself is planning to convert its closed-ended fund into an ETF.

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Author: AnTy

The Debate on Bitcoin’s Energy Consumption Continues

Twitter CEO Jack Dorsey, along with Cathie Wood’s Ark Invest, are working towards using Bitcoin mining to “accelerate the global energy transition to renewables.” According to CoinShares, an estimated 74% of the energy used in bitcoin mining actually comes from renewable sources.

While people argue that given the majority of Bitcoin’s hashing power comes from China, that it energy consumption is based on coal, but that’s not true because most of the Chinese miners depend on hydroelectric power; which is the cheapest power source.

Inner Mongolia, the second-largest coal producer, has shut down crypto mining, which could further push miners towards using renewable sources.

As a step towards making the world greener, the CEO of crypto exchange FTX announced the donation of $1 million to offset the blockchain resources it uses. Another exchange, BitMEX, has joined FTX in its green efforts.

Amidst the energy consumption discussion, Sam Korus, an analyst at Ark Invest, posted an update to ARK’s open-source solar, battery, and Bitcoin mining model, which now allows one to test how the system would have performed in historic Bitcoin bull and bear markets.

“The takeaway is that regardless of a Bitcoin bull or bear market, Bitcoin mining can incentivize additional solar and battery installations,” he said. “The next step is to dimension solar+battery+Bitcoin mining at the household level.”

Elon Musk also chimed in here.

As Brett Winton, Director of Research at Ark Invest, talked about Bitcoin mining being able to allow solar and battery systems to economically scale to provide a larger share of grid energy, Musk took part in this conversation by agreeing that “this can be done over time.”

However, “recent extreme energy usage growth could not possibly have been done so fast with renewables,” he added.

Musk then goes on to say how Bitcoin’s energy usage has started to exceed that of medium-sized countries, making it “almost impossible for small hashers to succeed without those massive economies of scale.”

As Bitcoiners have been pointing out, Bitcoins’ energy usage is what makes the network so secure and decentralized.

“Achieving truly decentralized finance – power to the people – is a noble & important goal. Layer count depends on projected bandwidth & compute, both rising rapidly, which means single layer network can carry all human transactions in future IMO,” said Musk. “For now, Lightning is needed.”

In a separate tweet, he continued to share his love for Dogecoin as he demonstrated a Doge dollar sticker that a Tesla supporter gave him in Berlin.

Musk further revealed that he actually owns DOGE, the sixth-largest cryptocurrency by the market of $50.3 billion, trading at $0.3574, and that he has no plans to sell any. DOGE -10.22% Dogecoin / USD DOGEUSD $ 0.36
-$0.04-10.22%
Volume 7.42 b Change -$0.04 Open $0.36 Circulating 129.69 b Market Cap 46.44 b
6 h The Debate on Bitcoin’s Energy Consumption Continues 3 d FTC Data Reveals Big Jump In Crypto Investment Scams, Losses Totaling $80M 3 d Coinbase Enables its Over A Million Wallet Users to Use DeFi — DEXs, NFTs, & More

“I haven’t & won’t sell any Doge,” said Musk.

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Author: AnTy

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million

Cathie Wood has rebalanced the company’s portfolio in favor of cryptocurrency stocks, yet again.

ARK funds bought 187,078 shares of Coinbase on Friday, adding to the 341,186 shares purchased on Thursday and 749,205 purchased on Wednesday. In total, Wood’s fund has 1,277,469 COIN shares worth almost $437 million at Friday’s closing price of $342.

The funds added to were the flagship ARK Innovation fund, the Next Generation Internet ETF, and the Fintech Innovation ETF.

Separately, it yet again sold 134,541 shares of electric car maker Tesla, valued at $99.5 million, from its flagship fund and Next Generation Internet ETF, but still, TSLA remains by far the firm’s biggest position by value on its major funds.

This big bet on Coinbase gives ARK more indirect exposure to cryptos on top of Tesla, which announced a $1.5 billion investment in Bitcoin this year and started accepting cryptos as payment for its cars.

Founded in 2014, Ark invests in companies involved with disrupting trends.

While up 6.6% from Thursday closing prices, COIN share prices it is still down 21% from its debut peak of almost $430, about 42% above the reference price of $250.

The uptrend in share prices came as the price of Bitcoin recovered after falling to $60,000, and Loop Capital Markets analyst Kenneth Hill advised clients to buy shares of the largest crypto exchange in the US. BTC -8.23% Bitcoin / USD BTCUSD $ 56,246.00
-$4,629.05-8.23%
Volume 97.65 b Change -$4,629.05 Open $56,246.00 Circulating 18.69 m Market Cap 1.05 t
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 10 h Cathie Wood’s ARK Funds Buy More Coinbase (COIN) Shares, Now Owning Just Under 1.3 Million 11 h BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000

The latest analyst to call for buy highlighted “lots of runways” for the company ahead of a “takeoff.”

“Coinbase’s market valuation may seem excessive to some given the prospects of increased competition in digital wallets business, which should rapidly eat into Coinbase’s sweet profit margins,” Ipek Ozkardeskaya, senior analyst at Swissquote, told Bloomberg.

“On the other hand, the competition is not here yet, while large trading volumes continue boosting Coinbase’s revenues for the moment.”

Besides the funds, retail traders also jumped in on COIN. Day traders purchased a net $57 million of shares during the debut on the Nasdaq Stock Market, as per VandaTrack.

Retail accounted for 7% of the $822 million individuals spent on all US stocks and ETFs on the day, making Coinbase the fifth-most popular debut with day traders since 2017.

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Coinbase was also the most traded stock on Fidelity’s platform on the day, with over 148,000 shares changing hands, nearly 9x more than Tesla.

The exchange going public has been seen as a watershed moment for the crypto industry, taking it further into the mainstream.

Coinbase CEO Brian Armstrong called this direct listing a “shift in legitimacy” for the entire industry.

“Crypto has a shot at being a major force in the financial world.”

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Author: AnTy

Renowned Analyst Chris Wood, Urges Investors to Buy BTC with the Halving Event Imminent

  • Chris Woods urged investors to buy more BTC before halving event as price is set to sky rocket as it did in the previous two halving’s. Despite BTC taking a hit in March, it still offers investors a unique opportunity to diversify their portfolios.

With the Bitcoin halving imminent, Chris Wood Global Head of Equity Strategy at Jeffries Financial Group has urged investors to invest in more BTC.

According to Wood, who is also the author of the firm’s popular weekly memo dubbed Greed and Fear, following the past halving events (2012 and 2016) the BTC has always increased the price with the assumption that the demand remains constant.

The Bitcoin halving event is set to take place on later on this month on May 13th. The event will be triggered when the network hits its 630000th block. The rewards for the miners are set to drop significantly from 12.5 BTC per block to 6.25 BTC per block. On both of the previous halving’s it has always dropped by 50%: 50 -25 BTC in 2012 and 25-12.5 BTC in 2016. Up to date there are at least 18 million BTC in circulation out of the possible 21 million.

BTC took a hit a heavy hit in March

The BTC however took a heavy hit earlier on in March plummeting by almost 57% from US$9,184 to meager US$3,915. This was alongside other assets as oil prices tanked to negative digits for the first time in history. This placed doubts on whether the BTC is really a safe haven asset as the main objective of its decentralized nature was as an alternative financial system free from inflation. Safe haven assets are usually expected to retain value or even appreciate despite economic downturns.

Notably, the BTC has since appreciated and has now soared to $8857.52 as per this writing according to coinmarketcap.

Gold and BTC’s decentralized nature makes them ideal investments

Wood shares the sentiment that BTC and Gold provide a unique opportunity as an investor could own both without conflict of interest with the other. The BTC also gives the investor the chance to expand their portfolio due to its decentralized nature. This combined with its uninterruptable supply made it immune from interference by the more centralized fiat currencies.

“This respect, GREED & fear continues to believe that investors should own both gold and Bitcoin in the sense that they are not mutually exclusive”

Latest Bitcoin Halving News and Crypto Market Updates

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Author: Lujan Odera

Bitcoin Price Jumps 9.7% But All Patterns Point to the Same Thing

  • Bitcoin recorded a spike of almost 9.7%, going as high as $7,772
  • But we are still not out of the woods, the price can very well go in the low $6,000s
  • 10,000 BTC added to longs, an increase of 43% and pushing for the ATH levels
  • Wall Street also recording gains after the Dow lost 457 points on Tuesday

In a sudden move, Bitcoin jumped to $7,772 level on Bitstamp. The world’s leading cryptocurrency has been trading just around $7,000 after recovering from the drop to $6,500 on Nov. 25. We dropped to the lowest point in five days at $7,087 today only to jump $500 in a few minutes.

Currently, BTC/USD is trading at $7,464 with 24 hours gains of 1.84% as per Coincodex. The trading volume has also seen a slight increase to $414 million from less than $200 million earlier this week. The 7-day average real trading volume has been slowly trending upwards since October as well.

“The technical pattern does look more bullish but the fact that it was a spike that carried it over, rather than more gradual growth is a bit suspicious. Now we’ll need to see how it closes,” wrote Mati Greenspan, founder of investment firm Quantum Economics in his daily newsletter.

The crossover between the 50-week moving average ad the 100-week moving average has been forming this week which is typically a bullish signal.

If BTC closes above these two moving averages, a trend shift might be on the line but if not, $5,000 is the most likely area next. And then, we could be looking at a bottom early next year.

Interestingly, 10,000 BTC has been added to the longs in the last 10 days on Bitfinex, which is an increase of 43% and pushing for the ATH levels.

“The steady rise after months of sideways makes me wonder if this is a single party trying to DCA in heavy,” said trader Jonny Moe about these longs.

However, in notional value — currently at $257 million, the longs are far from 2017 high at $619 million, even 2019’s notional value peaked at $323 million.

Bitcoin price might have seen some relief but it isn’t a guarantee that bulls are back in the market.

“If we need to capitulate, I don’t think it will happen now. More probably we will retest key resistance 7860-8090, and upper boundary of channel,” said analyst and trader CryptoWolf.

To be bullish, he said Bitcoin needs to break above and close above the key resistance area at $7,860-$8,090. Analyst Benjamin Blunts sees us eventually going to $6,800 but not before we make a few more ups and downs that won’t break above $7,600 level. Moe has even a lower target — it’s in the low $6,000s.

Wall Street is also looking good following a report that the US and China are moving closer to agreeing on the number of tariffs to be rolled back.

After losing 457 points at one point on Tuesday following President Donald Trump talking about waiting until after the election before making a deal with China, the Dow Jones Industrial Average rallied Wednesday. Nasdaq and S&P 500 also pointed to sharp gains.

However, disappointing jobs data — data from ADP and Moody’s Analytics reported private payrolls rose by just 67,000 last month, well below the estimated 150,000 — had futures pare their gains.

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Author: AnTy