Kvě 21

Wall Street Cryptocurrency Trading is Imminent, Former J.P. Morgan Exec Says

· May 20, 2018 · 7:00 pm

The cryptocurrency market continues to be a trending topic in the world of finance. However, the question remains; when will Wall Street banks begin crypto trading? The day is closer than we think, according to a former J.P. Morgan executive.


Big Banks to Start Trading Cryptocurrency Soon

Amber Baldet, formerly of J.P Morgan believes that the big banks will soon start trading cryptocurrency. She made this declaration during an interview with CNBC. According to her, such a move is even closer than many people think. This revelation holds a fair bit of weight given that it is coming from someone with insider knowledge of Wall Street.

Baldet used to head J.P Morgan’s blockchain division before leaving the bank in April. Goldman Sachs, another prominent Wall Street has already announced plans to establish a bitcoin trading service. When launched, it will be the first ever Wall Street crypto trading platform.

Amber Baldet

Baldet, however, identified some critical issues standing in the way of broader crypto adoption by big banks. Lack of regulatory clarity and problems concerning custodial services are among the main challenges preventing a greater institutional presence in the market. The major banks have no secure crypto custody framework at the moment. This lack of trusted safeguards for cryptocurrencies might soon be a thing of the past, however. Both Nomura and Coinbase announced last week that they were launching crypto custodial solutions.

Search Engine for the Blockchain Ecosystem

Baldet also spoke about her new venture since leaving Wall Street. The former J.P. Morgan executive unveiled Clovyr at the recently concluded Consensus conference in New York. Clovyr is designed to be an app store for blockchain DApps. Commenting on the project, Baldet said:

There’s no way to discover what’s out there right now; there’s no Google for finding applications. The ability to discover apps is helpful, but the ability to build them is also encompassed in there.

Thus, Clovyr is more than a blockchain search engine; it is also a platform that allows developers to create useful DApps. Baldet has a lot of experience with developing blockchain solutions. She was an essential member of the team that created J.P. Morgan’s legacy blockchain project, Quorum.

Will the entry of the likes of J.P Morgan and Goldman Sachs be a good thing for the crypto market? Please share your views in the comment section below.


Image courtesy of Twitter @AmberBaldet., Shutterstock

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Kvě 20

There’s no ‘Consensus’ Concerning the Direction of Bitcoin Price

· May 19, 2018 · 8:00 pm

Thomas Lee’s predicted post Consensus Bitcoin pop never happened. In fact, the market reversed and is now trading at a monthly low! As usual, investors are wondering where the market will go from here.


Market Overview

Contrary to popular expectation, Bitcoin failed to rally 69 – 130% after the Consensus conference in New York ended this week. In fact, it pulled back nearly 5% as the cryptocurrency market capitalization sank to $389 billion and it appears that the downtrend is set to continue for the short term.

Fortunately, things still bode well for crypto as:

  • Goldman Sachs is developing a dollar pegged cryptocurrency (USDCoin) through Circle which will finally provide an alternative stablecoin to Tether.
  • As Consensus wrapped up, the CFTC and SEC directors shared their view that they have no desire to stand in the path of blockchain development.
  • A platform for institutional investment in cryptocurrencies is gradually concretizing which further supports claims that institutional investors will boost cryptocurrency prices in the future.

Keeping this in mind, at present there is still more tangibly good news than bad news in the crypto-hemisphere and volatility is nothing new to cryptocurrency investors… though all of the moonshot valuations and promises of tripling market caps may have led us to forget this.  

Daily Chart

Bitcoin Daily Chart

After a nearly 5% drop, BTC briefly touched a monthly low at $7,925 on Bitfinex. As shown on the daily chart, this is a nearly 50% retracement of the pre-April rally low of $6,425.

On 18th May BTC had continued a pattern of lower highs and lower lows and the daily chart shows BTC below the 100 and 200-day MA and at the time of writing the RSI sits below the 50 indicating that bears have the advantage.

4HR Chart

Bitcoin 4HR Chart

There is a smidgen of positive news for the short term as around midday Saturday the 5 and 10-day MA changed direction and BTC is close to exiting the recently developed downward channel. On the other hand, both the 20 and 50-day MA are sloping downwards and BTC needs to cross the 50-day MA at $8,400. At the time of writing BTC still trades below the 50-day MA suggesting short term continuance of the bearish trend.

If BTC is unable to recover or hold above $8,000, there are long term supports at $7,800 and $7,600 but how likely these are to hold is questionable as $7,784 is at the 61.8 percent Fibonacci retracement. A close below $8,000 means that a reversal favorable to the bears is in place and the ensuing sell off could drop prices to $7,000 or lower.

Vision

  • BTC is close to crossing the 50-day MA at $8,400 and a close above the 50 would set BTC outside the recently developed downward trendline.
  • Failure to recover could lead BTC to touch the $7,784 support at the 61.8 percent retracement.
  • Traders are advised to watch from the sidelines as most technical indicators show bears having the advantage.

Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.

Where do you think Bitcoin price will go this week? Let us know in the comments below!


Images courtesy of Shutterstock, Tradingview.com

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Kvě 19

eToro’s 9M Users Set To Increase with US Exchange & Wallet Launch

· May 18, 2018 · 8:00 pm

UK-based trading platform eToro has announced it will launch an international cryptocurrency exchange and mobile wallet, debuting in the US for the first time.


$100M Series E Funds Put To Work

As part of a keynote speech at the Consensus 2018 conference in New York which finished May 16, eToro CEO Yoni Assia confirmed the move, which will provide US traders with ten cryptocurrency pairs.

etoro

“U.S. crypto holders have a strong appetite for diversified portfolios,” he said quoted in an accompanying press release.

The platform’s ambitious plans come as little surprise on the back of a $100 million Series E funding round which it completed in March this year.

Prior to that, eToro had revealed it now counted nine million users on its books as it targeted international markets in Asia.

China Minsheng Capital was the major force behind the funding round, Bitcoinist reported at the time, with Japan’s SBI Group, Korea Investment Partners and World Wide Invest also among the contributors.

Ex-Samsung Executive Leads eToro USA

For the US, which is notorious for its patchwork regulatory landscape regarding trading, the company will create offshoot eToro USA, led by ex-Samsung director of innovation strategy Guy Hirsch.

“We know that there is a strong demand in the U.S. for crypto and we are excited to be able to offer U.S. investors the opportunity to learn about and invest across multiple cryptocurrencies,” Hirsch commented.

It is not yet known how the company will navigate obstacles such as New York’s BitLicense scheme, which has seen multiple cryptocurrency operators deny service to its residents.

The wallet and exchange will see a gradual rollout “over the coming months,” the former “eventually” being available for both Android and iOS devices.

In addition to standard functions, the wallet will also contain as yet unspecified “other features.”

Will eToro’s expansion move boost cryptocurrency trading in the US? Share your thoughts below!


Images courtesy of Shutterstock, eToro, Twitter

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Kvě 18

US Securities and Exchange Commission Launches ‘HoweyCoins’ ICO

· May 17, 2018 · 8:00 pm

In a surprising turn of events, the US Securities and Exchange Commission has launched its own initial coin offering dubbed HoweyCoins.


‘A Hot Investment Opportunity’

Anyone looking for a hot new initial coin offering (ICO) should look no further than the US Securities and Exchange Commission’s brand new token sale for HoweyCoins. States the regulatory authority in an official press release:

If you’ve ever been tempted to buy into a hot investment opportunity linked with luxury travel, the Securities and Exchange Commission has a deal for you.

Check out the SEC’s Office of Investor Education and Advocacy’s mock initial coin offering (ICO) website that touts an all too good to be true investment opportunity. But please don’t expect the SEC to fly you anywhere exotic—because the offer isn’t real.

Unsurprisingly, the SEC isn’t actually launching its own token sale. Rather, the independent agency of the United States federal government has set up a mock website in order to educate investors about the perils of investing in fraudulent ICOs.

Clicking “Buy Coins Now” on HoweyCoins.com — a tongue-in-cheek reference to a landmark US Supreme Court decision in 1946 — will not actually sell you coins, but rather offer tools and advice from the SEC and other financial regulators.

The website has reportedly been set up to protect regular investors, and “features several of the enticements that are common to fraudulent offerings, including a white paper with a complex yet vague explanation of the investment opportunity, promises of guaranteed returns, and a countdown clock that shows time is quickly running out on the deal of a lifetime.”

The SEC’s Office of Investor Education and Advocacy’s Chief Counsel, Owen Donley — aka HoweyCoins’ Josh Hinze — explains:

Fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals. But fraudulent sites also often have red flags that can be dead giveaways if you know what to look for.

Likewise, SEC Chairman Jay Clayton states:

The rapid growth of the ‘ICO’ market, and its widespread promotion as a new investment opportunity, has provided fertile ground for bad actors to take advantage of our Main Street investors. We embrace new technologies, but we also want investors to see what fraud looks like, so we built this educational site with many of the classic warning signs of fraud. Distributed ledger technology can add efficiency to the capital raising process, but promoters and issuers need to make sure they follow the securities laws. I encourage investors to do their diligence and ask questions.

HoweyCoins.com does indeed look a lot like the vast majority of websites offering ICOs and may be interpreted as a clever and funny way to educate investors against fraudulent schemes — as opposed to simply providing bullet points on a government website.

What do you think of the SEC’s new mock ICO? Do you think this is a positive move in the education of investors against fraudulent ICOs and bad actors in the cryptocurrency space? Be sure to let us know in the comments below! 


Images courtesy of Shutterstock

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Kvě 17

Centra Tech Co-founders Indicted in $60 Million ICO Fraud

· May 16, 2018 · 7:00 pm

A grand jury in the Southern District of New York has indicted the three co-founders of Centra Tech. The U.S. Attorney’s Office of the district issued a press release on May 14 announcing the indictment.


The Centra Tech Fraud

Sorhab Sharma, Raymond Trapani, and Robert Farkas, the three co-founders of Centra Tech allegedly tried to defraud investors via a token sale. They were all arrested in April 2018 and charged with the same crimes. Commenting on the indictment, Deputy U.S. Attorney for the Southern District of New York, Robert Khuzami said that:

As alleged, the defendants conspired to capitalize on investor interest in the burgeoning cryptocurrency market.  They allegedly made false claims about their product and about relationships they had with credible financial institutions, even creating a fictitious Centra Tech CEO.  Whether traditional or cutting-edge, investment vehicles can’t legally be peddled with falsehoods and lies.

The indictment alleges that the three men solicited investors to purchase unregulated securities. The securities in the form of CTR digital currency tokens were sold in an illegal ICO.

The Centra Tech founders also deceived investors into thinking the company had struck partnership deals with reputable corporations. Part of the ICO marketing narrative included purported collaborations with Visa, Mastercard, Bancorp. They also said Centra Tech secured money transmitter license in 38 states in the U.S.

From Left to Right: Sorhab Sharma, Raymond Trapani, and Robert Farkas

Under these pretenses, investors put up about 91,000 ether tokens currently valued at $60 million. Celebrities like the boxer, Floyd Mayweather, and rapper, DJ Khaled also endorsed the project. The SEC soon discovered the Centra Tech project to be a fraud leading to the arrest of the co-founders.

Sharma, Trapani, and Farkas face a total of 65 years in prison based on the indictment against them. The three of them are also liable to pay financial penalties on account of the charges, and they will remain in custody pending subsequent action by the court.

Crackdown on Illegitimate ICOs

2017 saw ICOs dominate the crypto space for much of the year with numerous projects raising hundreds of millions of dollars. With the industry virtually unregulated, fraudulent schemes became the order of the day. In response, financial regulators have begun to adopt a more hands-on approach to monitoring and regulating the market.

From blanket bans in places like China to strict measures in the U.S., the wild west days of ICOs may soon be at an end. Since the start of 2018, the SEC has repeatedly declared its intention to keep a watchful observance of the ICO arena. The Centra Tech co-founders are also up on civil charges filed against them by the SEC.

Is the indictment of the Centra Tech co-founders a positive development? Will more robust ICO monitoring impact positively on the market? Let us know in the comment section below.


Image courtesy of Business Insider, Shuterstock

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Kvě 16

Move Over Ethereum: RSK to Enable Smart Contracts on Bitcoin Blockchain

· May 15, 2018 · 7:00 pm

Smart contracts and off-chain computing are coming to the Bitcoin blockchain, thanks to a partnership between RSK and iExec.


RSK to Add Smart Contract Functionality to Bitcoin

The RSK project — which aims to build Turing-complete smart-contract capabilities for the Bitcoin blockchain — is partnering with iExec in an effort to provide off-chain computing to Bitcoin applications and afford decentralized applications the ability to access on-demand and scalable cloud computing resources.

According to a Medium post from iExec editor Wassim Bendella, “the developers under RSK aim at adding value and functionality to [Bitcoin’s] ecosystem by enabling smart contracts, near instant payments and higher scalability.”

This seemingly makes RSK the first general purpose smart contract platform secured by the Bitcoin network, as it uses BTC as its native currency via a 2-Way Peg system. Said system guarantees a fixed conversion between SBTC and BTC at a ratio of one-to-one.

At the same time, iExec is busy developing the self-proclaimed “first blockchain-based decentralized cloud computing network,” which “allows participants who need computing power to meet those who own computing power, thus supporting the most compute-intensive blockchain applications.”

The Bitcoin blockchain is not only the originator but the most battle-tested on the planet. By joining forces, the two companies are pushing the tried-and-true Bitcoin blockchain even further into the future.

The next update from iExec will be coming this month. On Max 29, iExec is slated to release its V2, which is comprised of a decentralized marketplace for the trading of cloud resources. Explains Bendella:

Once V2 is made compatible with RSK as a next milestone, RSK applications and their smart contracts will be able to access the same decentralized cloud that Ethereum dapps make use of. Compute-intensive applications in the fields of fintech, artificial intelligence, scientific research or gaming will be able to leverage these resources, making RSK and iExec the backbone of the Bitcoin ecosystem.

What do you think about smart contracts on the Bitcoin blockchain? Does the prospect of off-chain computing for Bitcoin applications excite you? Be sure to let us know in the comments below!


Images courtesy of Pixabay, Twitter/@RSKsmart.

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Kvě 15

Blockchain Technology Will Usher in the Fourth Industrial Revolution

· May 14, 2018 · 7:00 pm

Steve Chiavarone is a blockchain believer. The portfolio manager at Federated Investors believes the technology behind bitcoin will help usher in the fourth industrial age. Many commentators have previously identified blockchain as having the potential to disrupt the global business process.


Blockchain: An Exciting Emerging Technology

Chiavarone is certain that the distributed ledger technology (DLT) framework is an essential cog in the wheel of emerging technologies that will transform the world. The Wall Street bull predicts that blockchain, along with robotics, automation, artificial intelligence (AI), and the Internet of things (IoT) will be the foundation of the fourth industrial age. Indeed, several experts believe blockchain can contribute to the technologies mentioned above.

Such is his conviction that the Wall Street expert is incorporating DLT into his stock market forecast. Speaking to CNBC, he reiterated the viability of the technology despite the struggles in the crypto market since the start of 2018. According to Chiavarone, the current price slump doesn’t diminish the importance of DLT implementation. Earlier in May, Wall Street analyst Nick Colas described bitcoin as the “FANG” stock of the crypto world. FANG refers to the most popular tech stocks; Facebook, Amazon, Netflix, and Google. Chiavarone is optimistic that blockchain technology could improve the business operations of the FANG stock companies.

Other corporations are also making forays into developing protocols that implement the technology. Companies like IBM and Maersk are leading the way in developing blockchain-based solutions for supply chain management (SCM) and general logistics. According to Chiavarone, big banks are also investing in DLT. Bank of America (BoFA) recently declared that it was contributing the most resources into blockchain research than anyone else.

Fourth Industrial Revolution

Blockchain Will Replace Reconciliation

Chiavarone is particularly confident that blockchain will disrupt business reconciliation process. He believes the technology is uniquely suited to improve the verification of account balances in the corporate world. According to him, blockchain will replace the expensive, inefficient and tedious reconciliation process. Thus, businesses will be able to reduce back and middle office costs while having more efficient supply chains.

Many in the mainstream finance arena aren’t sold on cryptocurrency. In fact, some of the staunchest crypto critics are from the organized business sector. However, only a handful of people in finance have dismissed the viability of the technology. It is even common to see notable figures declaring their interest in DLT while paying little or no attention to bitcoin and other cryptocurrencies.

Does blockchain technology have a pivotal role in the establishment of the fourth industrial age? Let us know in the comment section below.


Images courtesy of Twitter/@federatednews, Christoph Roser/AllAboutLean.com, Shutterstock

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Kvě 14

Nvidia Expects 2/3 Decrease in Sales to Crypto Miners in The Next Quarter

· May 13, 2018 · 7:00 pm

Nvidia announced that they had a successful 1st quarter in terms of sales, in part due to the fact that cryptocurrency-related sales boosted their revenues by 10%. Despite the good news, Nvidia expects that the sales generated by cryptocurrency enthusiasts will decrease by over ⅔ over the 2nd quarter, which ends in 2 months.


Nvidia’s Growing Business: Did Crypto Sales Help?

Nvidia’s Thursday release of their Q1 financial reports has shown that their revenues have gone up from $1.9 billion in Q1 of last year to a staggering $3.2 billion during this year’s first quarter. The latter figure is a ~$300 million dollar increase in revenue compared to the figures reported in Q4 of last year.

The other statements and figures given by Nvidia in their earnings call were also positive but did not meet all analysts’ expectations, as the price tumbled over 2.5% during after-hours trading. Jim Cramer, a popular financial analyst and personality, quickly jumped on analysts’ statements, calling them “total joker chowderhead analysts,” in an attempt to call off their allegedly unrealistically high expectations of the company.

The 10% in revenue growth since Q4 was quickly attributed to cryptocurrency mining sales which became so prevalent in the latter half of 2017 and the start of 2018. Hardware sold by Nvidia to miners over Q1 was revealed to have generated $289 million for the market leader in the computer hardware industry.

Taking a tally of the company’s profits overall, the $289 million generated by cryptocurrency sales have accounted for just around 9% of Nvidia’s total sales during the first fiscal quarter of the year. Considering the worldwide impact which Nvidia has, a 9% portion of the company’s revenues is quite substantial.

Nvidia’s Q1 cryptocurrency miner sales were actually above the expected amount, with a quantitative financial investment firm, Susquehanna, and its analysts expecting that sales brought in by the cryptocurrency industry would amount to a relatively small $200 million in a best-case scenario. This means that the figure revealed by Nvidia execs was over 44% higher than the anticipated figure. A welcome surprise, that’s for sure.

Is The GPU Mining Market Slowing?

Despite this good news, Nvidia expects for the $289 million made by sales to miners to drop by over ⅔ by the end of Q2 of this year.

Jensen Huang, Nvidia’s CEO, acknowledged the help cryptocurrencies had on Nvidia’s profits in a statement made during the earnings call with CNBC. Huang stated:

Crypto miners bought a lot of our GPUs in the quarter and it drove prices up,

For those who are unaware, the demand for GPUs over the course of the past year for mining purposes has caused the PC enthusiast community to go into an outrage over the current high prices, not to mention the lack of supply.

Cryptocurrency mining rigs

It is now clear that 2017 and early 2018 saw a multitude of cryptocurrency mining operations, individuals and corporations alike, buying as many GPUs as they could get their hands on. Although retailers did their best to prevent GPU shortages, by implementing restrictions on buyers, in the end, many mining companies still got their hands on the equipment.

Despite the rush of last year’s market, the GPU mining market has been slowing down as mining costs have gone up while profits have been decreasing, not a combination you want to see as a miner. As hype for GPU mining begins to subside, prices and supply for graphics cards will begin to return to numbers which resemble the MSRP prices.

This is not the only bad news for GPU miners worldwide. Bitmain’s announcement of 3 brand new ASIC miners which run on the Equihash, ETHhash, and Cryptonite algorithms have threatened the existence of the GPU mining industry. These ASICs provide an exponentially higher hashrate per dollar and watt of energy compared to traditional GPU processes.  However, ASICs have been rejected by a large majority of the cryptocurrency community as many see ASICs as a threat to the decentralized nature of cryptocurrencies.

The GPU mining community has been quick to jump on the announcements of the ASICs, calling for developers of GPU-mineable coins to fork away from ASICs. Despite the cries of the community,  Ethereum and ZCash’s developers have chosen to abstain or delay a fork away from ASIC miners.

With the threat of ASIC miners looming not too far in the distance, it is understandable to see Nvidia’s expectations that its cryptocurrency profits will take a beating. But the future could still be bright for Nvidia as they move into an era where technology use will become increasingly prevalent. In fact, Jim Cramer even called Jensen Huang, Nvidia’s CEO, the “Einstein of our era.”

Will BitMain shutdown the GPU mining industry? Do you think that Nvidia has a future as a mainstay in the cryptocurrency GPU mining industry? Please let us know in the comments below.


Images Courtesy of Wikimedia Commons/@Nvidia Corporation, Shutterstock, and Twitter/@business.

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Kvě 13

Reserve Bank of Zimbabwe Bans Cryptocurrency Trading, Financial Institutions Given 60 Days to Comply

· May 12, 2018 · 8:00 pm

The financial services regulator for the southern African country of Zimbabwe – the Reserve Bank of Zimbabwe (RBZ) – has banned all financial services institutions in the country from all forms of cryptocurrency trading. The directive was shared in a circular on virtual currencies distributed to all institutions on Friday.


Cryptocurrency Trading Banned Through Banking Services

According to a news report, the circular which was signed by the RBZ registrar of banking institutions Norman Mataruka, the central bank has said that it is taking these measures to protect the public and safeguard the integrity, safety, and soundness of the country’s financial system.

All financial institutions in Zimbabwe which include commercial banks and mobile money service providers have been told to ensure to not use, trade, hold or transact in virtual currencies or provide banking services that would facilitate any individual or entity in dealing with or settling cryptocurrencies.

The ban outlined a swathe of services that include maintaining accounts, registering, trading, clearing, collateral arrangements, remittances, payment and settlement accounts, giving loans against tokens, accepting tokens as collateral, opening accounts of cryptocurrencies exchanges and moving money in accounts relating to cryptocurrency trading.

The RBZ has also directed banks to terminate any existing relationships with virtual currency exchanges in sixty days to liquidate existing account balances.

Zimbabwe does not recognize cryptocurrencies as legal tender and the country does not have a regulatory framework for virtual currencies or cryptocurrency trading. However, it has managed to effect a ban by directing financial institutions to keep their hands off all transaction and services related to cryptocurrencies.

Cryptocurrency Trading Banned Through Banking Services

Exercising Caution and Choking an Industry at the Same Time

The stance that has been taken by Zimbabwe’s central bank isn’t new. The cryptocurrencies space is still facing a lot of scrutiny and regulators in other markets have taken a cautious approach, pushed by concerns around money laundering, tax evasion, fraud and in cases like Zimbabwe, the externalization of foreign currency in response to the country’s foreign currency challenges.

Countries like India and China have explored this route before and in Africa, Kenya’s regulator has also taken a hard stance against cryptocurrencies. They are all meant to be measures against potential risks in a new space.

However, such moves also have a negative impact on legal service providers including entities that solve some problems that affect the economy.

In Zimbabwe, a number of businesses that have emerged in this space over the past few years that include the local cryptocurrency exchanges like Golix as well as outfits that have been using cryptocurrencies to facilitate remittances such as Bitmari will be affected by the directive.

Do you think that regulators that put restrictions on cryptocurrency activities because of the risk of crimes like money laundering are justified? Please let us know in the comments below. 


Image courtesy of AAAB, Shutterstock

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Kvě 12

Bitcoin to Reach $64,000 in 2019, Based on Mining Economy, Says Fundstrat

· May 11, 2018 · 7:00 pm

Based on analysis of the bitcoin mining economy, the world’s most well-known cryptocurrency could reach as high as $64,000 USD by the end of next year.


Bitcoin Miners Do the Selling

According to independent research boutique Fundstrat, which provides market strategy and sector research, the bitcoin mining boom could potentially send the dominant cryptocurrency by market capitalization to upwards of $64,000 USD by the end of 2019. States the company’s head of research, Sam Doctor, in a report:

We believe the current path of hash power growth supports a BTC price of about $36,000 by 2019 year end, with a $20,000-$64,000 range.

Bitcoin is infamously volatile, creating FOMOers and naysayers on what feels like a weekly basis. Nevertheless, Fundstrat believes the economics behind bitcoin mining create key support levels — since bitcoin miners are less likely to sell their rewards during market downturns, and more likely to cash out during bull runs. Explained Doctor in a conference call to CNBC on Thursday:

The primary net sellers, in our view, are bitcoin miners, and the rest are transactions between investors.

Fundstrat has estimated that the current cash break-even price Antminer S7 models is $6,003 USD per bitcoin. The newer and more powerful Antminer S9, however, features a much lower break-even point at $2,368 USD. Both popular pieces of bitcoin mining hardware are manufactured by Bitmain, which boasted an operating profit between 3 billion USD to 4 billion USD in 2017. Doctor said:

The release of the next generation of rig hardware should trigger a new round of capex as well as hash power growth, which could accelerate if BTC price appreciates.

According to CBNC, Fundstrat co-founder Tom Lee is the only major Wall Street strategist to cover Bitcoin.

Lee previously predicted last July that Bitcoin may reach $20,000 to $55,000 by 2022. At the time of that prediction, bitcoin was trading at $2,540. Lee also noted that bitcoin could become a viable substitute for gold.

Do you think bitcoin can reach upwards of 64,000 USD by the end of next year? Do you think the miners’ break-even point is indeed a key support level? Be sure to let us know what you think in the comments below!


Images courtesy of Bitcoinist archives, Twitter/@fundstratQuant, Twitter/@@fundstrat.

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