Kvě 26

Bitcoin as a Store of Value Could be Worth $40K Within the Next Decade, Says Matt Hougan

· May 25, 2018 · 9:00 pm

Matt Hougan of Bitwise Asset Management believes that the price of Bitcoin could increase by 500 percent in the next ten years. Hougan hinges his prediction on the cryptocurrency becoming an actual store of value and the blockchain permeating several facets of human life.


Is Bitcoin a Store of Value?

Finding a consensus on any argument related to Bitcoin is almost a futile effort at this point. There’s the bubble argument, the economic definition argument, and of course, the store of value argument. Matt Hougan, in a recent op-ed for Forbes, examines the store of value debate for Bitcoin, drawing some interesting parallels with gold.

Right from inception, the virtual currency has been compared with gold. Some proponents are even in the habit of calling the crypto “digital gold.” Critics, however, dispute this idea, saying that the cryptocurrency cannot be compared to gold because it is highly volatile and, as such, cannot be a store of value.

Matt Hougan

One of the most basic definitions of a store of value is an asset that is both tradable and can be stored for future use. By this definition, a store of value must maintain some stability over a reasonable period. Bitcoin is a volatile asset, no arguments there. However, is the volatility exhibited by the number one crypto a misnomer in the finance world? It turns out the answer is no, and Hougan provides hard evidence.

A Little Bit of History Featuring the Post-1971 Gold Market

Today, gold is not only solid based on its physical form, but as an asset, it maintains some level of price rigidity. However, it wasn’t always so. In 1971, U.S. President Richard Nixon dropped the gold standard for the USD. The price of gold and the value of the dollar was no longer tethered together. What happened next? Well, the table below gives an idea of the wild volatility in prices of gold in the decade following 1971.

Gold pricesToday’s crypto critics would be bellowing that gold isn’t a store of value if they examined these figures. However, today, it is universally accepted that the precious metal is indeed a store of value. So, what has changed? The answer isn’t utility as some might point out. Gold has some industrial application use cases but that it is not enough to justify its current price. According to Hougan:

[Gold] is worth $1,300 per ounce because people are willing to pay $1300 per ounce for it as a store of wealth.

Bitcoin price chart

Bitcoin Mirrors Post-1971 Gold

Bitcoin is less than a decade old, which means it isn’t yet a fully formed asset. Hougan believes that expecting the cryptocurrency to behave like a fully matured asset is an argument that lacks economic merit. According to the cryptoanalyst, Bitcoin is passing through the two-stage process of rapid appreciation and declining volatility over time.

2017 saw a parabolic rise in prices that seem to have plateaued in 2018. The Bitcoin volatility, while still considerably high, is declining over time. This pattern exhibited by the number one crypto bears striking similarities to gold after 1971.

Bitcoin volatility chart

Speculative Investment Will Give Way to Real World Use

If Bitcoin follows the pattern set by gold, then it is well on its way to establishing itself as a store of value. Right now, the crypto is held as a speculative investment, but within the next decade, as blockchain utility increases, Bitcoin will become an even more significant part of global finance. The current market capitalization for the virtual currency is $130 billion, which is approximately two percent of the $7.5 trillion gold market cap.

In ten years, Bitcoin could comfortably hold 10 percent of the value of gold, which would mean a conservative price estimate of $40,000. A lot of this depends on how quickly real-world utility applications can be implemented for the cryptocurrency and the assumption that it continues on a similar trajectory to gold.

Do you agree with the argument that Bitcoin is like gold, and as such, a store of value? Will an increase in real-world utility drive the price of Bitcoin higher? Let us know your thoughts in the comments below.


Images courtesy of MarketsMuse, Forbes, Macrotrends, Shutterstock, and Buy Bitcoin Worldwide.

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Kvě 23

John McAfee Says the Cryptocurrency Bull Rally is Near

· May 22, 2018 · 9:00 pm

John McAfee believes the march of the cryptocurrency bulls is at hand. The renowned tech activist and internet security expert has added his voice to the growing crypto institutional investment narrative.


Prices Will Go Through the Roof

In a tweet on Monday, McAfee urged traders to gear up for the next crypto price rally. He based his assertions on the influx of cash from institutional investors trooping into the market.

He also said that with the money flowing into cryptocurrencies, prices of the top ten coins will increase dramatically. McAfee also believes that other altcoins will experience growth as investors diversify their cryptocurrency trading portfolios.

When challenged on Twitter as to the veracity of his claims, McAfee gave no basis for his declaration. Instead, the controversial crypto proponent told responders to “use their heads,” “check recent news on institutional investors,” and “apply reason.” Safe to say, this is another one of McAfee’s bold assertions, much like his famous 2017 prediction that “Bitcoin will be 500k in the year 2020.”

The Emerging Trend of Institutional Cryptocurrency Investment

While McAfee did not provide any backing for his claims, there is some merit to his position regarding the flurry of institutional interest in cryptos that have made the news in recent times. A few days ago, Coinbase launched four new products targeted at institutional cryptocurrency investors. Goldman Sachs is also making plans to open Bitcoin trading to large investors as well.

Bitcoin

The overarching consensus is that the crypto market is maturing after a parabolic growth spurt in 2017 which saw prices hit record highs. Since the start of 2018, the market has declined in value, dropping 50 percent of its market cap in February. According to an April survey conducted by Fundstrat, 82 percent of institutional investor believe Bitcoin bottomed out when it fell below $6,000 in April.

The entry of hedge funds into the crypto market should increase the perceived level of legitimacy of cryptocurrencies. One important part of the emerging trend of institutional investment in digital currency is the establishment of trusted custodial services. In the past few months, there has been some progress on this front with a significant announcement by Nomura during the recently concluded Consensus conference in New York.

Do you agree with John McAfee’s assertions of an impending crypto price boom? Which altcoins do you think will dominate the market? Let us know your thoughts in the comment section below.


Images courtesy of Twitter/@officialmcafee, Flickr, and 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 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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Kvě 03

Coinmarketcap Launches iOS Mobile App

· May 2, 2018 · 7:00 pm

Coinmarketcap (CMC) has released its first-ever mobile app. The cryptocurrency price and market capitalization website announced the release of the app on April 30. The launch of the app is part of CMC’s five-year anniversary celebration.


The Coinmarketcap App for iPhones

The new CMC mobile app is compatible with the iOS smartphone platform. It enables users to view crypto price, market cap and 24-hour price changes on the go. App users can select from a variety of filter options to see all tokens, the top 100 tokens or their watchlist tokens.

Watchlist tokens are specific cryptos that the users have selected. To include a cryptocurrency in the watchlist, users have to push the star-shaped icon on the token page. The app also uses tokens so people can record save and sync their watchlist between different devices.

The new app doesn’t appear to bring any novel feature. Many crypto traders already use different platforms to monitor price movements in the market.

Commenting on this observation, a spokesperson for CMC told TechCrunch that:

Are there other places where people can get the data and do we have copycats? Sure. However, we are the only site that you can guarantee is sourcing, gathering, and verifying the data itself, and we pride ourselves on being the first and best regarded within the industry.

Five Years in the Business

May 1, 2018, made it five years of CMC being in the business. The platform has grown tremendously to become the 175th most visited website in the world, according to Alexa rankings. Also, more than 60 million people have visited the site so far in 2018. The CMC Twitter account currently has 425,000 followers.

When CMC began, it was reportedly tracking seven cryptos and a few exchange platforms that amounted to about $1.6 billion in market cap. Presently, the website monitors over 1,600 cryptocurrencies and 200 exchange platforms that amount to more than $400 billion in market capitalization. In January 2018, a decision by the site to delist South Korean cryptocurrency exchange platforms caused a wave of massive panic selloffs.

Rebranding the Coinmarketcap Platform

The website has also made some changes to its brand image with a new logo, color scheme, and font. The new Coinmarketcap logo contains the CMC initials and a wavy design that depicts the volatile nature of the crypto market. CMC has also made changes to the website API. The website still plans to release a new commercial API that includes historical data.

A statement by CMC commenting on these latest developments said that:

We pay close attention to the needs of our users and always encourage people to leave us feedback. We are hard at work to bring you more features that will give you more control over your experience while exploring our data.

Do you think the Coinmarketcap mobile app will be as popular as the website? Please share your views in the comment section below.


Images courtesy of Coinmarketcap and Twitter.

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Dub 27

Crypto Arbitrage Trading – The Pursuit of Happiness

· April 27, 2018 · 5:00 pm

Arbitrage exists as a result of market inefficiencies and would therefore not exist if all markets were perfectly efficient. How does one capitalize on this market phenomenon?


A trader who, in 1970, pioneered a computerized trading system once said:

The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance.

This is, of course, Ed Seykota, a former commodities trader. A lot has changed since he first introduced this system, with the onset of blackbox and algorithmic and high-frequency trading, it is harder than ever for point and click traders to make money.

The market has evolved and the inefficiencies that it suffered from in the 70s are unlikely to return. However, while the capital and debt markets are now highly efficient and, for the most part, very liquid, the same cannot be said for cryptocurrency markets. For one, the dissemination of information to the trading community is highly inefficient. The systems that aggregate volume and other data from various exchanges are still in their infancy and most importantly, the size of the trading community is growing every day.

Trading

Nobody Knows If a Stock Is Going to Go Up, Down, Sideways or in Circles

Those that have seen the film “Wolf Of Wall Street” will remember the scene with Matthew McConaughey and Leonardo DiCaprio, where Matthew McConaughey goes on to say “Nobody knows if a stock is going to go up, down, sideways or in circles.”

Is trading an art, a science, or is it no different than gambling and simply requires a degree of luck? Whatever camp you side on, crypto markets provide a unique opportunity to make very good returns on your investment. You don’t always have to be a trend follower or a contrarian, the smart way to approach crypto trading is by applying arbitrage models. The problem, of course, is standardizing the API data from the exchanges. While it is not an impossible task, it can be very laborious and requires a great amount of checking to ensure consistency between the different data feeds.

Despite the fact that the cryptocurrency markets are trading with extremely high-volume levels, they are not nearly as liquid as we might think. This market is still highly fragmented in a web of exchanges under very different jurisdictions. The liquidity is spread through various more or less trustworthy exchanges all over the world. The emergence of more trustworthy regulated exchanges has boosted the overall liquidity but has not yet delivered the desired effect of lowering spreads and slippage costs. Furthermore, increasing liquidity would definitely encourage significant institutional investments and promote mainstream adoption.

Arbitrage

Trading Edge

Volatility is something that has discouraged this much sought after mainstream adoption. This measure is related to uncertainty with regard to the extent of price changes. High volatility is evidenced in sharp and unpredictable price swings, while assets with low volatility will see little or minimal fluctuation in prices over a short-term horizon.

There are various strategies one can follow to capitalize on the potential arbitrage opportunities that currently exist across crypto markets. No one can tell for sure how long these opportunities will remain available, as the broader adoption of these assets by the general public will invariably reduce bid/ask spreads and increase trading volumes. However, for now, one can simply make comparisons between different exchanges to understand the magnitude of potential returns on capital.

The following numbers should be taken as an indication, these are not fixed levels and are subject to change. The price of Bitcoin on HitBTC is 2.55% higher than the price of the same asset on Exmo. Nowhere in capital markets can such discrepancy occur with what is said to be a leading asset in the digital economy and the spread on altcoins can sometimes be even greater.

There are different ways to trade the same markets, directional, technical, contrarian, fundamental – or you can utilize a combination of the above and create a strategy that works for you.

What do you think of market structure and is regulatory uncertainty to blame for such fragmented markets? Let us know in the comments below.


Images courtesy of Pxhere and Shutterstock.

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Dub 22

Home Run or Swing and a Miss? Cryptocurrency Winners and Losers for the Week Ending April 22, 2018

· April 22, 2018 · 5:15 pm

As John F. Kennedy was wont to say, “a rising tide lifts all boats.” Essentially, what benefits one, benefits all. When Kennedy first uttered those words, it was in 1963 and he was talking about the economy. Flash forward 55 years and – as the cryptocurrency market appears to be recovering from a depressing Q1 2018 bear run – the same sentiment is applicable once again.


This past week has been extremely gratifying for crypto community members who weathered Q1 2018’s bear market and made the choice to ‘hodl’ when others were panic-selling. At press time, the total cryptocurrency market cap was just over $394.9 billion – a more than 18% increase from the same time last week.

With the total crypto market cap on the rise, how have Bitcoin and its altcoin brethren fared over the past week? Well, Bitcoin is up roughly 8% – landing at a respectable $8957.95, up from its 7-day low of $8286.88. As to the altcoins? Let’s take a look…

Top 3 Cryptocurrency Winners…

Top 3 Cryptocurrency Winners…

These are the top three best performing cryptocurrencies based on 7-day market activity and with a 24-hour volume of at least $750,000.

Game.com (GTC)

24-Hour Volume: $252,617,000
Gain: 592.80%

Game.com is an ambitious project that combines several elements into a total blockchain-based gaming environment. A combination gaming platform, digital asset wallet, crowdfunding platform, and instant messenger, Game.com is riding high on a rising swell of popularity.

This time last week, GTC was trading at around $0.05 and has climbed to just under $0.35 per token. The sudden spike in value is no doubt due in large part to their partnership with Tron and this week’s announcement that Game.com would be running for a super delegate position in Tron’s upcoming Super Representative vote. A win in this election could not only push GTC prices even higher, but it would give Game.com a seat at the table and a voice in deciding Tron’s future.

Pundi X (NPXS)

Volume: $7,257,560
Gain: 234.72%

Pundi X is a project that aims to make every day crypto usage “as easy as getting bottled water.” It is a POS (point of sale) solution for retail businesses that will make it easy for brick-and-mortar businesses to accept cryptocurrencies in-store.

Earlier in the week, Pundi X’s token (NPXS) was trading at just over $0.0014. On Friday it peaked at an all-time high of $0.0054 before settling down to around $0.0048.

So why the sudden rise in price?

First, the token was recently added to Korea’s Coinrail exchange, which currently accounts for more than 25% of the token’s trade volume. Next was a favorable review of Pundi X’s new POS terminal in this month’s issue of The Nilson Report. Finally – and probably most significantly of all – Pundi X executed its first NPXS token buyback of roughly 200 ETH worth of tokens at a price more than triple that of the then-current market value.

Prices continued to climb in the wake of the buyback but are slowly starting to settle back down. Whether it settles in at a price higher than that of its 7-day low remains to be seen.

XinFin Network (XDCE)

Volume: $899.141
Gain: 201.51%

XinFin is a hybrid blockchain network that combines the power and transparency of public blockchains with the security and speed of private networks. Designed primarily to serve the global trade and finance industries, XinFin has been met with enthusiastic response and successfully concluded their ICO last month.

Since being listed on CoinMarketCap in mid-April, XDCE has been holding steady at around $0.003 per token. Last week, however, things started looking moonish for the cryptocurrency. Trading at $0.0034 this time last week, XDCE reached an all-time high of $0.0168 on Saturday before settling down to around $0.0115 at press time.

The sudden spike in price is most likely largely attributed to XDCE’s upcoming listing on Singapore’s largest crypto exchange – COSS – as well as a 12.5 million XDCE trading promotion. That, coupled with growing interest in XinFin as well as project team that is absolutely doing everything right, could spell continued gains in XDCE’s future.

…and the Top 3 Cryptocurrency Losers

…and the Top 3 Cryptocurrency Losers

Unfortunately, not all altcoins were watching the crypto market through green-tinted glasses this week. These are three worst performing cryptocurrencies based on 7-day market activity and with a 24-hour volume of at least $750,000.

Octoin Coin (OCC)

Volume: $878,826
Loss: -28.96%

Octoin combines crypto trading, mining, p2p exchange, and multi-cryptocurrency wallet functionality into one easy to use platform. The platform’s token, OCC, has been steadily declining ever since peaking at an all-time high of $19.02 in mid-March, however, this past week saw a bit sharper of a decline than in previous weeks. Trading at $3.21 just one week ago, the price has dropped by nearly a third to $2.26 at press time.

As far as what factors could be influencing the price drop, there isn’t much out there that is concrete. The Octoin team are hyping the hell out their platform through a series of mini-conferences and meetups, but there is also a lot of speculation as to the legitimacy of the project. A quick search on Google turns up numerous ‘Octoin: Legit or Scam?’ type articles and their BitcoinTalk thread is rife with investor complaints as well.

Mind you, none of this has been proven, but if I were a betting woman, I’d bet against a recovery for Octoin.

Ormeus Coin (ORME)

Volume: $8,212,730
Loss: -27.56%

Ormeus Coin is a digital money system that is backed by a $250 million crypto mining operation that – according to a February press release – is one of the largest industrial crypto mining operations in the world.

Prices for ORME have been all over the map, ranging from a low of $0.56 in September of 2017 to an all-time high of $3.62 in December that same year. Presently, however, things look quite different. Last Sunday saw ORME trading at $2.58, followed by a blink-and-you’ll-miss-it spike to $3.38 ahead of Ormeus’ global launch party and subsequent Ormeus Cash airdrop. Since then, however, ORME has resumed its downward slide and currently sits at $1.90.

Considering that Ormeus’ crypto operation is reported to be pulling in $6.7 million per month, what gives with the poor token performance?

The decline could be FUD-related. There were allegations on Reddit about market manipulation, but nothing was proven. The more likely scenario, however, is that we’re looking at a selloff in the wake of last week’s airdrop.

Will it recover? Given the team’s active participation within the community and that the mining operation does appear to be legit, I can see this one going back up.

Dragon Coins (DRG)

Volume: $8,404,190
Loss: -26.80%

Dragon Coin (DRG) is the native cryptocurrency of the Dragon Platform, which connects VIP gamer with “junkets”, casino VIP rooms across the globe that host private games and have a system of transferring funds via junket agents.

DRG has slowly been declining since it first started trading in late March of this year and that downward trend appears to be continuing. At this time last week, DRG was trading at $0.975 and it just kept meandering downward to a price of around $0.704.

I honestly can’t pinpoint any one single reason for the decline. The Dragon Coin team seems to be doing everything right, so perhaps it is just post-launch malaise and/or whales dumping.

One of Dragon’s milestones is to launch their own branded junket in Macau. If that happens, I can absolutely see prices going back up to previous highs – and higher.

Do you think that these tokens will continue their current price trends? Let us know in the comments below!


Images courtesy of AdobeStock, iStockPhoto

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect those of Bitcoinist.com. Claims made in this article do not constitute investment advice and should not be taken as such.

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Dub 06

$25 Billion Owed in Crypto Taxes Causing ‘Massive’ Selling, Wall Street Analyst Says

· April 6, 2018 · 3:00 pm

‘Massive’ selling of cryptocurrencies into fiat by mid-April to be expected, as U.S. crypto holders ‘likely’ owe $25 billion in capital gain taxes according to Tom Lee, head of Fundstrat Global Advisors.


Tom Lee, the former chief equity strategist at J.P. Morgan Chase is amongst the few, if not the only Wall Street analysts who are providing regular thoughts and analysis on Bitcoin and the overall state of the crypto market.

Pressure Rises as Deadlines Approach

As the mid-April tax filing deadlines approach, Lee says that cryptocurrency selling pressure rises. In a report for CNBC, the analyst says that he estimates an approximate $25 billion being owned in capital gain taxes for cryptocurrency holdings by U.S. Households. And that’s the ‘low estimate’.

As the tax day approaches, we could witness ‘massive’ selling of cryptocurrencies into U.S. dollars.

Lee explained:

This is a massive outflow from crypto to USD and historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.

Going further, the expert believes that selling pressure is also being piled up by crypto exchanges.

Many exchanges have net income in 2017 [of more than] $1 billion and keep working capital in Bitcoin or Ethereum and not in USD — hence, to meet these tax liabilities, are selling BTC/ETH.

Taxes are No Joke

In late March, the IRS reminded that virtual or digital currencies are taxable by law just as transactions of any other type of property. The taxman also went on reminding that steep penalties are in for those who fail to properly oblige by mid-April’s tax day.

While administrative cash penalties and interest are awaiting low-key crypto investors for failing to report their taxes, those who deal in larger quantities definitely have a lot more on the line to worry about, according to the release from the IRS:

Criminal charges could include tax evasion and filing a false tax return. Anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000.

Yet, a recent poll in twitter held between more than 7,500 people revealed that 53% of them aren’t really worried about taxes on the premise that “They’ll never catch me”.

What Does This Mean for the Crypto Market?

Tax-related selling would certainly add to the tough start of the year for Bitcoin. Yet, Tom Lee and other proponents remain positive.

When asked about Lee’s previous prediction of Bitcoin’s price, the analyst maintains his full-fledged positivity:

“We’re still positive. The important trends to focus on crypto are that there’s a lot of underlying progress, adoption is still growing,” adding that “Ultimately, we expect bitcoin to find footing after April [17], tax day.”

Do you think the price of Bitcoin will be affected by mid-April’s tax deadlines? Please let us know in the comments below!


Images courtesy of Bitcoinist Archives; Pixabay

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Bře 21

Altcoin Bear Market ‘Over’, Bitcoin ‘Less Miserable,’ Tom Lee Declares

· March 21, 2018 · 1:30 pm

Fundstrat Global Advisors’ Tom Lee has declared the altcoin bear market “is over” and urged investors to buy Bitcoin.


Tom Lee: Investors ‘More Comfortable’ With Bitcoin

In a note to investors which he followed up live on CNBC’s Fast Money segment, the firm’s head of research said investors were becoming “more comfortable” with Bitcoin as an asset.

Cryptocurrencies began rallying this week after the ongoing G20 Summit produced positive regulatory noises from the outset.

Tom Lee

“I think the headlines were less draconian than many people were worried about, but that’s really been the case every time there’s been a regulatory event,” Lee told CNBC.

The reality is I think Bitcoin is starting sit away from the line[…] I think investors are comfortable that Bitcoin is likely to viewed as a commodity; whether regulations change around security tokens and registration, Bitcoin sits in its own sphere.

Bitcoin Misery Index Perks Up At $9k

Altcoins had felt the pressure from Bitcoin’s downward trend, showing a delayed response after BTC/USD began falling late December but with many assets subsequently falling more steeply.

According to observations from Lee and his team, this trend bottomed out around March 20, and could now point to new upside, subject to a similar delay to the initial descent.

“The altcoins don’t really rally until mid-August, mid-September,” he forecast, adding that ‘altcoin’ for Fundstrat meant cryptocurrencies outside the top 50 by market cap.

In terms of buying Bitcoin, however, Lee hinted now was the time. Using his Bitcoin Misery Index, which Bitcoinist previously reported on earlier this month, he told viewers that Bitcoin’s score was still within the ‘buy zone’ below 27 out of 100.

At the time Lee issued the index, that score was just 18. “It’s still in the zone of misery, but of course it’s less miserable,” he added.

Lightning Network Is Happening! First Physical Item Purchased on LN

Technical upgrades such as a Lightning Network production beta last week have contributed to broader positive sentiment on Bitcoin meanwhile, with Weiss upgrading its rating for the cryptocurrency from C+ to B-.

BTC/USD was holding support around $9000 on major exchanges as of press time March 21.

What do you think about Tom Lee’s altcoin forecast? Let us know in the comments below!


Images courtesy of Shutterstock, CNBC.com

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Úno 22

Bitcoin Price Under $10k As Big Resistance Triggers ‘A Few Days Of Bears’

· February 22, 2018 · 10:30 am

Bitcoin price dropped below $10,000 again Thursday as analysis warns traders to prepare for “FUD” from detractors.


$11,700 The Target To Beat

Data from Bitstamp showed a sudden $500 dip over three hours, taking Bitcoin from around $10,300 to current lows of $9677.

Having traded as high as $11,762 this week, markets appeared to encounter a lack of support closer to $12,000 Wednesday, creating a rapid drop and reversing gains which began around February 17.

“We’re seeing some weakness; this is not good,” analyst Tone Vays told viewers during a Bitcoin weekly chart performance analysis Thursday.

Others mirrored the sentiment behind a temporary fresh downturn, with the altcoin trader known on Twitter as Squeeze forecasting that “bears are likely to take over for a few days.”

Bitcoin’s turbulence continues to have a more profound effect on altcoin markets. A glance at the top 50 assets tracked by Coinmarketcap shows declines in line with Bitcoin but around 30% steeper in the past 24 hours.

Ripple, Bitcoin Cash, Litecoin and others in the top ten all lost around 13%.

Sore Losers Wait For Cashout

“This rebound took a lot of pressure off of BTC owners, but we will start running into overhead resistance,” Jani Ziedins of Cracked.Market meanwhile said in a research note quoted by MarketWatch.

“Many premature dip-buyers jumped in between $12k and $15k and we should expect many of those regretful owners to sell when they can get their money back. Their selling will slow the assent over the near-term.”

The lackluster performance of Bitcoin so far in 2018 has also served to temper the outlook for some of the community’s most ardent proponents.

Ronnie Moas, who led the charge of the bulls during the all-time highs in December 2017, most recently stated the likely finishing point for BTC/USD at the end of this year would now be around $28,000 – nonetheless a record high in itself.

What do you think about Bitcoin’s price dip? Let us know in the comments section below!


Images courtesy of Shutterstock, Twitter

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