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Why Bitcoin Could Return To $28,000, But By The End Of 2022

Goldman Sachs analysts believe Bitcoin and the crypto market could see some relief, but only further short and mid-term turmoil. A recent report from the banking institutions claims the crypto market has been moving in tandem with the U.S. stock market and thus it has been affected by the macro-economic environment. Related Reading | Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry The analysis was conducted by Marion Laboure and Galina Pozdnyakova and it predicts a 30% rally for Bitcoin by the end of 2022. This is still far from the cryptocurrency’s previous all-time high of around $69,000. The report fails to provide reasons that support the bearish theory. The analysts believe that Bitcoin’s correlation with the stock market will continue to play against it, and while they predict a bounce in equities, they believe BTC’s price will lag in terms of performance. For the stock market, the Goldman Sachs analysis predicts a resume on its bullish momentum and a potential bounce to its January 2022 levels. In the meantime, Bitcoin could reach $28,000 which is over $10,000 less than its January 2022 levels. Why will BTC underperform the stock market? It is unclear. As usual for legacy institutions, the analysts dismissed Bitcoin’s fundamentals and compared it to the diamonds market which they claimed to bloomed on the back of “marketing”: By marketing an idea rather than a product, they built a solid foundation for the $72 billion-a-year diamond industry, which they have dominated for the last eighty years. What’s true for diamonds, is true for many goods and services, including Bitcoins. The analysts wrote the following on the factors that contribute to the complexities of measuring the value in Bitcoin and other cryptocurrencies, and why this could increase its downside risk: Stabilizing token prices is hard because there are no common valuation models like those within the public equity system. In addition, the crypto market is highly fragmented. The crypto freefall could continue because of the system’s complexity. The Short-Term Horizon For Bitcoin As NewsBTC reported, experts more familiar with the crypto industry believe Bitcoin and other large cryptocurrencies by market cap will keep on following the stock market. Former CEO of crypto exchange BitMEX Arthur Hayes expects this correlation to contribute to the decline in BTC’s price. However, at some point during 2022, the crypto market will start to decouple from stocks and the U.S. major equities indexes, the S&P 500 and Nasdaq 100. The bullish momentum for the digital assets could be supported by a decline in both the value of legacy markets and a downside trend in terms of correlation with cryptocurrencies. Related Reading | Ethereum (ETH) Bends Toward $1,000 As Doubt Fills Crypto Markets As Hayes explained, that’s when you want to pay attention: For me to hoist the flag in support of selling fiat and buying crypto in advance of an NDX meltdown (30% to 50% drawdown), correlations across all time frames need to trend demonstratively lower.

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BlockFi Clears Up Rumors, Crypto Exchange FTX Will Have $240 Million Purchase Option

Crypto lending platform BlockFi addressed the rumors of a potential purchase from major crypto exchange platform FTX. Initially reported by U.S. news outlet CNBC, the company was allegedly being bought by FTX at a $25 million valuation, a 99% discount from its nearly $5 billion 2021 valuation. Related Reading | Colombia Launches National Land Registry on […]

Bitcoin Crypto News

Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

Former hedge fund manager Michael Burry made another bearish prediction for Bitcoin and traditional equities. Renowned for his short position which preceded the U.S. housing market crash, and one of the periods in recent economic history for the world, Burry believes more pain for BTC’s price is ahead. Related Reading | Shiba Inu (SHIB) Shines Green In Pool Of Crimson – Who’s Buying? Currently, Bitcoin is trading at $19,400 with an 8% loss in the past 7 days. The cryptocurrency was moving sideways around its 2017 all-time high levels, $20,000, but the market took yet another turn to the downside and might re-test its yearly lows near $17,000. This could be a fraction of future losses, according to Burry. The former hedge fund manager has been bearish on BTC seems the cryptocurrency was trading north of $60,000, in October 2021. Via his Twitter account, Burry asked his followers tips on how to short a cryptocurrency: Ok, I haven’t done this before, how do you short a cryptocurrency. Do you have to secure a borrow? Is there a short rebate? Can the position be squeezed and called in? In such volatile situations, I tend to think it’s best not to short (…). A short time after, BTC’s price reached its current all-time high which could have resulted in major profits for Burry, if he was able to open a short position. In that case, he might still wait on taking profits, according to its latest prediction, traditional equities and BTC could experience more downside on the back of a bad earnings season: Adjusted for inflation, 2022 first half S&P 500 down 25-26%, and Nasdaq down 34-35%, Bitcoin down 64-65%. That was multiple compression. Next up, earnings compression. So, maybe halfway there. Some Good News For Bitcoin In The Short Term Two experts recently shared potential bullish catalyzers for Bitcoin, at least for a short period of time. Jurrien Timmer, Director of Macro for investment firm Fidelity, believes equities have a chance to rebound from their recent crash. However, Timmer believes the risk-off season could extend further while bond yields trend upwards. In the upcoming earnings season for U.S. publicly traded companies, one could provide more clues on what’s next for the market, including Bitcoin which has been displaying a correlation with traditional equities. With bond yields down and equities up, the correlation between the two asset classes remains slightly positive on a 12-month basis. It’s rare to see the Z-score for both stocks and bonds so negative at the same time. pic.twitter.com/BhJ8BklPmo — Jurrien Timmer (@TimmerFidelity) July 1, 2022 On the other hand, Bloomberg Intelligence Mike McGlone has been expecting a drop in the price of commodities. If these assets trend to the downside, the Fed might slow down on its economic tightening and provide risk-on assets like Bitcoin with some room for relief. Commodities rallying often indicate high inflation, they suggest the opposite when they trend to the downside which could suggest the U.S. financial institution might be succeeding at cutting down inflation, currently their apparent number one priority. McGlone said: Commodities Aren’t Complicated, 1H Was High: When the history of 2022 is written, there’s a good chance that the 1H pump in commodity prices will play out like similar surges in the past, with a reciprocal dump. Timmer and other experts believe that negative news on the economy, talks of economic recession, and a sustained market crash might allow the Fed to become more dovish on its monetary policy. The market has reacted to the downside as a result of the Fed, but some believe this will be insufficient to stop inflation. Related Reading | Ethereum (ETH) Bends Toward $1,000 As Doubt Fills Crypto Markets Fed Chairman Jerome Powell has expressed doubts about a less aggressive monetary policy. In an interview with The Wall Street Journal, Powell said bringing down inflation will result in “some pain” for global markets. Does this mean Burry will be right as in 2008?

Bitcoin Crypto News

Bitcoin Sees Worst Quarter In 11 Years

The leading cryptocurrency in the world, Bitcoin (BTC), saw its worst quarter-over-quarter drop in 11 years. According to data from CoinGecko, BTC has lost over 57.43% in the second quarter of 2022. Additionally, by selling below $19,000 on the final day of Q2, Bitcoin had its most significant quarterly loss in more than a decade. The current state of the Bitcoin market is not good. The position was favorable even at the end of Q1 when it was approaching close to $50,000. But after that, things became more complex, and the price kept dropping. Related Reading | TA: Ethereum Trims Gains, Why ETH Remains At Risk Below $1,100 From $45,524 at the beginning of the year, bitcoin slid to a low of $17,593.2 on June 18. It recorded its worst-performing quarter as a result of its persistently negative price moves, which have seen it drop below $20,000 several times in June. According to CoinGecko data, BTC dropped by 38% over the month of June and is currently trading at $19,447.62. Since its launch in January 2009, the price of bitcoin has been on an up-and-down Ferris wheel. Like Q2 2021, the second quarter of 2022 will be referred to as the “Bloodiest Quarter In Crypto. Quarter 2 of last year lost more than 40% of its value.  Concerns About Risks Due To Market’s Downturn Situation After the news that the Federal Reserve is preparing to reduce liquidity in the financial markets, Bitcoin fell precipitously and the downturn continued. Investors avoided riskier assets because of rising inflation and interest rates. As a result, the market lost huge profits.  Throughout the quarter, several significant problems have surfaced. For example, Celsius; recently, the firm decided to halt all account withdrawals, raising concerns that the business would soon go bankrupt. Cryptocurrency exchange CoinFlex also stopped customer withdrawals on June 23, due to the harsh market conditions. CEO of CoinFlex, Mark Lamb stated: Due to extreme market conditions last week & continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals. Moreover, on the other hand, regulators have become ever more concerned about cryptocurrencies’ hazards. Everyone is terrified due to the recent failure of TerraUSD (UST) and the issues experienced by crypto lenders, including Celsius. In order to address the possible threat that crypto-assets can bring to the financial system, the European Systemic Risk Board (ESRB) urged urgent regulation to solve the situation.  Related Reading | Avalanche Might Continue Its Downtrend As Price Slips To $16  In a report on June 30, the EU stated: While potential systemic implications stemming from these market segments currently seem limited, systemic risks could materialise quickly and suddenly. Europe is not the only one. There are 103 countries listed in November 2021 whose governments urged their financial regulatory agencies to set legislation and policies for financial institutions concerning cryptocurrency. Including France, Germany, Japan, Mexico, and many others.   Featured image from Flickr, chart from Tradingview.com

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MicroStrategy is buying the dip – Should you follow their lead?

microstrategy-is-buying-the-dip-–-should-you-follow-their-lead?

With smart money digging in, Bitcoin and Ethereum come across as worthy buys in the crypto dip. Key points: Smart money is buying crypto and could be a leading indicator that the market could rebound. Following the lead of institutional money, Bitcoin and Ethereum could be worthy buys today. MicroStrategy is buying the current Bitcoin… More

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VeChain At Risk Of Further Losses? VET Price Drops 30% In Downtrend

The crypto market continues on its downtrend, and VeChain (VET) follows after expiring some relief over the last weekend. The cryptocurrency recently breached a major level of support and seems poised to expand its downside price action. Related Reading | Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode At the time of writing, VET’s price trades at $0.022 with a 3% and 32% loss over the last 24 hours and the past month respectively. According to crypto analyst Justin Bennett, VeChain lost a major area of support when it broke below $0.024. As seen below, this area was the last line of resistance for a “neckline” or a trendline that saw VET’s price after an increase in previous selling pressure. Not everything is lost for the bulls, the analyst believes, as long as VeChain is capable of holding above $0.021. This area is a “much more significant support for the market”. In case of further downside action, VET’s price could drop into this support line before seeing some relief. If the price manages to get back above the neckline, it could support a bullish continuation. However, traders should wait for confirmation if VET’s price can return to $0.024 and then to $0.026. Beyond that point, $0.028 seems like a very important area of resistance. Bennett believes it seems more possible that VeChain will continue on its downtrend: Resistance for VET is around $0.0237, which is the neckline it broke below yesterday. All in all, the market looks relatively weak. So even if we do see some additional relief, I think a move to at least $0.016 makes the most sense right now. Traders should watch out for a daily close below current levels or $0.022. This could hint at potential losses targeting the levels mentioned by the analyst. What Could Save VeChain In The Long Run? As NewsBTC reported, VeChain is currently in the process of deploying a major consensus update. This could facilitate the corporate adoption of the blockchain VeChainThor and inject fresh capital into the ecosystem. However, this will positively impact VET’s price over the long run. In the short term, Bennett claims the current macro conditions don’t support bullish momentum in the crypto market. The analyst recently pointed out a “Head and Shoulders” pattern formed on the crypto market total capitalization 4-hour chart. Related Reading | Ethereum Rising Gas Fees are Still Concerning But Presents Opportunity For Decentralized Exchanges This pattern often precedes further losses by a certain asset. The total crypto market cap currently stands above $800 billion and could crash into the $700 billion if the pattern plays out. Any long positions, at current levels, seem at risk, as Bennett explained: $TOTAL is a perfect example of how to use a failed head and shoulders to your advantage. That failure offered a short opportunity. I never thought to long this because of the established downtrend. I was always expecting it to fail.

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Why Rich Dad, Poor Dad Author Will Wait For Bitcoin To Drop To $1,100 Before Buying More

Best-selling author Robert Kiyosaki offered his followers a “Rich dad lesson” on Bitcoin. Via his official Twitter account, the writer made a distinction between “winners” and “losers” in the crypto market. Related Reading | Reports: FTX Targeting BlockFi Purchase At $25M At the time of writing, Bitcoin has lost major support as it broke below $20,000 and it’s currently trading at $18,900 with a 6% loss in the last 24 hours. The cryptocurrency has lost over 75% of its value since reaching an all-time high at $69,000. At those levels, the Rich Dad Poor Dad author was a buyer and seemed more enthusiastic about BTC’s price future appreciation. Now, he has made a 180 degrees shift in his speech publicly bashing those investors which he classified as “losers”. Kiyosaki’s full message is rather grim, and might be aiming for an impossible level, for Bitcoin to crash all the way down to $1,100: RICH Dad lesson. “LOSERS quit when they lose.”  Bitcoin losers are quitting some committing suicide.’WINNERs learn from their losses. I am waiting for Bitcoin to “test” $1100. If it recovers I will buy more. If it does not I will wait for losers to “capitulate” quit then buy more. In the past, Kiyosaki highlighted $20,000 as the “buy the dip” level. The author called the cryptocurrency a hedge against inflation and called the BTC’s price crashing “good news” and predicted a “time to get richer” by increasing his holdings. The author was bullish on BTC and precious metals, but it’s unclear what has caused him to shift his views. On a different occasion, Kiyosaki foresaw the start of a depression, preceded by a “giant crash” across global markets. The main trigger for this scenario is the U.S. Federal Reserve (Fed) and its attempts to slow down inflation, which is currently at a 40-year high. At that time, Kiyosaki said: BIDEEN & FED need inflation to prevent New Depression. Inflation rips off the poor. Inflation makes rich richer. Biden and Fed corrupt. Prepare: Giant crash then new depression. Be smart Buy, gold, silver Bitcoin. Should You Listen To Robert Kiyosaki? Kiyosaki was almost right when he predicted Bitcoin would reach an all-time high near $75,000. However, as crypto users pointed out, he has been mostly wrong about his BTC’s price prediction. As seen below, Kiyosaki has been talking about this doomsday scenario for over a decade. In 2017, he tweeted about a potential crash in the real estate market, this prediction proceeded a major bull run in the sector. Related Reading | TA: Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up Therefore, it seems wise to take his words with a grain of salt. The crypto market seems soft and susceptible to macro-conditions, but for BTC to return to the $1,000 levels seems unlikely.

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Societe Generale – FORGE selects METACO to manage blockchain asset capabilities

Societe Generale – FORGE (SG FORGE), a fully integrated subsidiary of Societe Generale, providing issuers and investors with end-to-end services to issue, invest and manage digital-native security tokens registered on public blockchains, has selected METACO, a provider of digital asset management technology and infrastructure, to orchestrate its digital asset custody operations. Since 2019, Societe Generale and its […]

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