Čvc 14

Wells Fargo Won’t Allow Customers To Buy Bitcoin

Wells Fargo, a huge traditional bank founded in 1852 to provide banking services, and mail delivery through the Pony Express, has recently come out stating that it does not allow its customers to purchase Bitcoin with their own funds.


Wells Fargo ‘Does Not Allow Transactions Involving Cryptocurrency.’

Wells Fargo’s decision diverges from other leading financial institutions, who are becoming increasingly pro-crypto technology. For example, Nasdaq CEO Adena Friedman believes in the value of cryptocurrencies and predicts that Bitcoin could be the “global currency of the future.”

The CME Group saw Bitcoin promise when it started exchanging Bitcoin futures contracts in December 2017.

On the other hand, after bashing Bitcoin for years, JPMorgan Chase CEO Jamie Dimon made a U-turn by regretting having called the cryptocurrency a fraud, and now JPMorgan Chase is getting ready to release its own cryptocurrency.

Most recently, during his second day of testimony in the U.S. Senate, Jerome Powell’s testimony legitimized Bitcoin and as a store of value.

In contrast, Wells Fargo is turning in the opposite direction. Specifically, Wells Fargo displays its anti-Bitcoin stance by not allowing its customers to perform transactions involving cryptocurrencies, as the tweet below shows,

This prohibition is contrary to Wells Fargo’s vision, which states, “Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”

However, by forbidding a customer from performing transactions in Bitcoin, Wells Fargo is not serving its customers’ “full range of financial needs.”

Bitcoin and other cryptocurrencies are risky and volatile

In June 2018, Wells Fargo banned the purchase of Bitcoin and other crypto-assets using Wells Fargo credit cards. When the ban was announced, a company spokesperson stated,

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency […] We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”

When Wells Fargo claims that Bitcoin and other cryptocurrencies are risky and volatile, it may be forgetting its prominent and infamous role during the 2008-2009 financial crisis, when markets collapsed. As a result, millions lost their homes, and millions lost their jobs, producing economic mayhem all over the world.

But astonishingly, although Wells Fargo was a contributor to one of the largest-ever financial crises, and after a series of financial scandals, U.S. taxpayers had to bail out the bank.

Wells Fargo received USD 25 billion of Emergency Economic Stabilization Act funds through a preferred stock purchase by the U.S. Treasury Department. As CBS News put it,

“Wells Fargo hit the jackpot. It was one of the first banks to get bailout funds – the biggest amount awarded in a single shot: $25 billion tax dollars.”

Nevertheless, to return to its admirable roots and to satisfy its customers’ needs, Wells Fargo should join the bandwagon of the new economic model, which requires a decentralized, borderless, and secure digital currency, such as Bitcoin.

Why do you think big banks such as Wells Fargo do not allow transactions involving Bitcoin? Let us know in the comments below!
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Images via Twitter/@Ask_WellsFargo

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Čvc 08

Bearish Weekly Close Could Create More ‘Buy Bitcoin’ Opportunities

Bitcoin and crypto markets have been mostly sideways over the weekend. There has been little movement in either direction for BTC and most of the high cap altcoins and all eyes have been on the close of the weekly candle.


Bitcoin Price Closes Below Resistance

The four hour chart has been showing lower highs for the past week or so however the range is tightening up which could lead to a possible breakout. With an intraday high of $11,700 and a low of $11,000 BTC remains range bound for now trading at 00.

bitcoin

BTC price 1 hour chart. Tradingview.com

Trader and analyst Josh Rager has been eyeing the charts for the next move and is leaning towards a bearish one following the close of the weekly candle.

“Bitcoin closed below the resistance while at the same time tapped the tippy top of the support near $9,614. With lower-highs on the 4 hr chart, I’d look to lean bearish as we start the week. But you know that you’d love to buy more BTC and crypto under $10k”

On the upside, any move below five figures may well trigger another ‘buy Bitcoin’ frenzy as we witnessed last week when BTC fell to $9,600 briefly.

Full-time trader and self-styled financial revolution prepper ‘Financial Survivalism’ has also hinted at a move to the downside and expects Bitcoin price to drop back into four figures this week.

“I’m expecting $BTC to return to 4 figures within the next 48 hours. Main reason is the high volume shooting star from last week.
Confirmation comes from the charts below:
1st weekly Stoch sell signal since Dec 17
Overbought W ADX
Bearish TK Cross on D cloud
4h Bear channel”

The sentiment appears to be spreading across CT this Monday morning as others echo the possible end of the rally.

“In the near term, I think upside on $BTC is limited. Likely the top is in for the next 3-4 months. Better to build some support first before the 6 fig moon mission.”

Altcoins In The Green

Not all is bearish during Asian trading this morning. A number of the altcoins are actually posting pretty good gains over the past 24 hours. Ethereum has made almost 6% taking it back over $300 again, and Tron is on a flyer surging 9% to retake a top ten place.

Monero is up a similar amount as XMR reaches $105 and Crypto.com Chain is in double digits this morning with an 11% pump. Total market capitalization has added $8 billion so maybe the altcoins could be starting to finally decouple from their commander at the top.

Will Bitcoin price drop back to four figures this week? Will there be favorable situations to buy more Bitcoin?Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: Josh Rager @Josh_Rager, Financial Survivalism@Sawcruhteez

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Čvn 29

Grayscale Bitcoin Trust Surges 300%, Eclipses Oil & Tech ETFs

While Bitcoin price itself has begun the inevitable correction, dropping almost 17% since its recent high, investment funds for the asset are still hot potatoes. Grayscale Bitcoin Trust (GBTC) is a prime example as institutional interest has surged more than the asset itself.


Despite Bitcoin Price Correction, GBTC Investors “Hungry”

Bitcoin appears to be still in correction mode. It did climb back up to reach $12,400 for a few hours yesterday but has since dropped back to support at around $11,500. The lowest point in the recent pullback was $10,300, a drop of 25% from its $13,800 high. Many are expecting a 30% plus decline which would send BTC back into the mid $9,000s or lower.

Regardless of what the crypto asset itself does, institutional investors are hungry for more. Grayscale’s Bitcoin Trust (GBTC) has been performing exceptionally well since February and has surged over 300% according to Forbes.

The report added that the over the counter bitcoin backed security is trading at around $14 per share, up from $3.84 five months ago. In the same period bitcoin itself has gained over 220%. The discrepancy can be attributed to the increased premiums that institutional investors are charged as they are prevented from directly holding the asset.

GBTC Has “Destroyed” Gold, Oil & Tech ETFs

According to the editor of Forbes Dividend Investor newsletter, John Dobosz, the GBTC has destroyed other investments such as gold, oil, the S&P 500 and various tech ETFs.

“The total gain since that time for the GBTC, which tracks bitcoin pretty accurately, is up 341%. What comes in second best? You would have been okay with oil, even though oil has eaten dust and other particles in the last few weeks. Oil is up 12.8%.”

He added that the S&P 500 is up 8.5%, gold is up 7.7%, the iShares MSCI Emerging Markets ETF is up 1.4%, the Invesco QQQ for tech companies is up a lowly 1.7%, and the US dollar is up just 1%.

The report continued to state that the reason for this monumental performance could be the fund is the only publicly quoted US-based bitcoin investment product, which holds more than 1.2% of the total supply of BTC.

Grayscale Has $2.7 Billion of “Crypto” AUM

Grayscale has invested in other crypto assets including Ethereum, Bitcoin Cash, Litecoin, Stellar, Ethereum Classic, XRP and Zcash with total assets under management of $2.7 billion.

The fund is currently at an all-time high which is likely to continue when bitcoin resumes its bullish momentum. At the time of writing, BTC was trading at 00 and heading lower as the weekend begins. Further accumulation is likely to occur if BTC drops below five figures and this will drive the next wave of the uptrend.

Will institutional investment boost Bitcoin price even further? Add your thoughts below. 


Images by Shutterstock, Grayscale Investments

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Čvn 27

Bitmex Sees $500 Million Bitcoin Short Liquidation in 24hrs

Bitcoin trading activity is breaking all-time records in terms of volume and open interest in Bitcoin futures. The latest trading activity has caused Bitcoin’s value to reach an 18-month high, forcing a huge amount of Bitmex short-sellers to abruptly liquidate their positions.


Bitcoin Futures Hits Record Highs 4 Days Running

CME saw a record volume of USD 1.6 billion and record open interest for Bitcoin contracts of USD 373 million, on June 26, 2019.

The value of BTC rose to almost USD 14,000, causing short traders to liquidate over half a billion dollars in a single day.

At the Chicago Mercantile Exchange (CME) Bitcoin futures trading activity has been growing spectacularly in recent months, with institutional traders showing increasing interest. On June 20, 2019, CME reported,

CME Bitcoin futures open interest reaches a record for a fourth consecutive day, with 5,827 contracts traded on June 20 (29,135 equivalent bitcoin; ~$280M notional) and a 25% increase from last Friday.

Cryptocurrency optimists take long positions, while traders who are bearish take short positions. According to Commodity Futures Trading Commission (CFTC) data, big money traders, such as hedge fund managers, have been taking bearish positions. The Wall Street Journal reports,

Hedge funds and other money managers held about 14% more bearish ‘short’ positions in CME bitcoin futures last week than they did bullish ‘long’ positions, according to a recent Commodity Futures Trading Commission report.

So, when on June 26, 2019, the cryptocurrency neared the USD 14,000 mark, traders who had taken short positions were forced to execute massive liquidations.

Small Investors Remain Bullish

Hedge managers and other large traders have been bearish on BTC since February 2019. However, a bearish position taken by a hedge fund manager does not necessarily mean a bet against the cryptocurrency, as The Wall Street Journal explains,

Such data don’t necessarily mean hedge funds are placing outright bets that bitcoin will drop. The short bets could also be part of hedging strategies: for instance, a fund with a portfolio of bitcoins might go short at CME as insurance against the value of bitcoin dropping.

Moreover, positive signals about BTC continue to abound. For example, small investors remain bullish. According to The Wall Street Journal report, traders with fewer than 25 BTC contracts hold long positions outnumbering short bets by four to one.

What do you think about the latest Bitmex liquidation figures? Let us know in the comment section below!


Images via  Twitter/@skew_markets, Bitcoincharts.com, 

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Čvn 15

Hong Kong Protests Could Boost Bitcoin as Wealthy Move Assets Offshore

Bitcoin could be boosted by the current political unrest Hong Kong as the upper and middle classes are reportedly starting to move their assets offshore.


Hong Kong Begins Moving Wealth Offshore

Fears over the hated extradition bill, whose introduction the Hong Kong government has only suspended but declined to withdraw, are causing the wealthy to start moving their capital from Hong Kong to offshore.

People in Hong Kong vehemently oppose a proposed bill, which would give authorities the power to deport those suspected of crimes to mainland China.

hong kong

In protest, Hongkongers have been staging massive street demonstrations for several days, with varying degrees of violence. These demonstrations have caused widespread alarm, particularly for both government and business.

On June 10, 2019, the US State Department warned that “the amendments could damage Hong Kong’s business environment and subject our citizens residing in or visiting Hong Kong to China’s capricious judicial system.”

Moreover, the city is already suffering from liquidity problems, fueled in part by the China-U.S. trade war. Many now fear that if the extradition bill passes, it will increase capital outflows, thus further reducing liquidity.

As a consequence, rich people are now focusing on how to move their wealth offshore. According to Reuters,

Some Hong Kong tycoons have started moving personal wealth offshore as concern deepens over a local government plan to allow extraditions of suspects to face trial in China for the first time, according to financial advisers, bankers and lawyers familiar with such transactions.

In addition, many middle-class Hongkongers are withdrawing their money from Chinese banks in protest.

For many, these events explain in part Bitcoin’s present trajectory towards the $9,000 USD price mark.

Hong Kong authorities are now backing down. However, they are not withdrawing the bill.
On June 14, 2019, Hong Kong Chief Executive Carrie Lam announced that she was suspending the extradition bill she was trying to push through the Hong Kong Legislative Council.

But the mere suspension of the bill does not satisfy protesters. Therefore, they will go ahead with another massive demonstration on Sunday, June 16.

Thus, Lam’s latest move will not remove uncertainty from the political and business environment for a long time because she has not set a date for the next step forward.

Earlier this week Bitcoinist reported that Hong Kong is already seeing an uptick in Bitcoin trading volume on LocalBitcoins platform.

hong kong

If the political unrest continues, it will likely further encourage the rich and the middle-class to protect their assets by moving it elsewhere from the former British colony.

Hong Kongers, therefore, may already be eyeing the world’s first apolitical and borderless store of wealth, i.e. Bitcoin, to prevent the government from tracking their private data and confiscating their wealth. In fact, China is no stranger to paying a premium for cryptocurrencies to not only trade and invest but also as a means to circumvent capital controls.

In October 2018, a Chinese court issued a ruling saying there is no prohibition on owning and transferring bitcoin in China.

Will some wealthy Hong Kongers choose Bitcoin to protect their wealth? Let us know in the comments below!


Images via Twitter/@xinwenxiaojie, Shutterstock

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Čvn 12

Bitcoin Has Dwarfed Warren Buffet’s Berkshire Hathaway in ROI

Warren Buffett’s Berkshire Hathaway has seen an impressive increase of around 997,900 percent in its stock price since Warren Buffett took control. Bitcoin, on the other hand, is up 720,000,000% in its short 10-year history since its first recorded price. 


Berkshire Hathaway Up 997,900%

Berkshire Hathaway, a multinational conglomerate holding company, the CEO of which is no other but popular investor and one of the richest men alive, Warren Buffett, has seen an increase of 997,900 percent in its stock price since the prominent investor took control of it back in 1964.

The company is also well-known for the fact that it has been under the leadership of one of the most well-known investors, Warren Buffett. He is currently the CEO at Berkshire Hathaway.

Forbes’ latest listicle of the richest men puts Buffett as the third wealthiest man with an estimated net worth of $82.5 billion.

Bitcoin Up 720,000,000% in 10 Years

Bitcoin, on the other hand, has only been around in the past decade. However, in this relatively short amount of time, the cryptocurrency has managed to increase by a whopping 720,000,000 percent since its first ever recorded price.

Ironically, Buffett, being the prominent and well-known investor that he is, is a sworn Bitcoin-basher. In fact, Buffett has been particularly vocal on his stance on the matter, calling Bitcoin all sorts of things. Buffett said:

It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me. It’s a gambling device… there’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything.

If that’s not definitive enough, Buffett has also called the leading cryptocurrency “rat poison squared.”

Going even further, Buffett’s Berkshire Hathaway invested $340 into an alleged Ponzi-type scheme according to Bloomberg. Federal investigators maintain that DC Solar, the company which received Buffett’s backing has used new investors’ money to pay back existing investors.

So if Buffett, the infallible investment genius that everyone seems to believe he is, failed to recognize a Fed-investigated Ponzi-scheme, could it be possible that he’s also wrong about Bitcoin?

Facts Speak For Themselves

Regardless of whether Buffett likes it or not, this “rat poison” has massively outperformed the company he controls. It’s also worth noting that Berkshire Hathaway wholly owns prominent corporations such as Geico, Duracell, Long & Foster, and so forth. It also controls minority shares at American Express, Wells Fargo, and The Coca-Cola Company.

Bitcoin does none of the above and isn’t even a company with any central authority. It’s simply a decentralized protocol for money that ensures no one breaks the rule. Bitcoin is an asset class of its own that has managed to gain 722 times more money to its investors compared to Berkshire Hathaway. And it only took it 10 years.

So, in case anyone doubts John McAfee in putting a $1 million price target for Bitcoin, it’s perhaps worth considering all of the above. Sure, it may not happen by December 31st, 2020, but it’s certainly a possibility.

Maybe Buffett should reconsider. Though, perhaps Justin Sun is the one (not) to make him change his mind.

What do you think of Bitcoin hitting $1 million? Do you think it will happen? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

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Čvn 05

Long Bitcoin, Short Duetsche Bank Has Been The Best Trade in 2019

Buying Bitcoin while shorting the stocks of multinational investment bank Deutsche Bank in 2019 might be the best trade you could have done in 2019. 


Long Bitcoin, Short The Bankers

“Long Bitcoin, Short The Bankers” has turned into a somewhat popular catchphrase commonly used by Morga Creek Capital’s Anthony ‘Pomp’ Pompliano.

Looking at hard data and crunching the numbers, however, tells us that this might be a lot more than just a concept – it can actually be a rather profitable trade – at least so far in 2019.

As Bitcoinist recently reported, the stocks of the multinational investment bank based in Frankfurt, Deutsche Bank, have been in steady decline for the past five years. Year-to-date, their price has dropped by about 17.5 percent to a fresh record low.

Bitcoin, on the other hand, is having a stellar year so far. Despite the latest correction, which has driven BTC price 00 below $8,000, the cryptocurrency is still marking incredible gains of around 112 percent.

In other words, if you decided to long BTC/USD, while also shorting Deutsche Bank stock at the beginning of 2019, you would have been around 130 percent in the profits.

This number goes up to 139 percent if you had decided to make the trade back in September 2018, as noted by the popular trader and common cryptocurrency commentator Alex Krüger.

The trade ‘long bitcoin, short the Deutsche bankers’ is up 139% since September 2018.

BTC Outperforming S&P 500

Another interesting trade, as pointed out by Twitter user planB (@100trillionUSD), is the combination of 5 percent Bitcoin and 95 percent cash. According to him, this position beats the performance of the S&P 500 index every year in the past nine years.

As it turns out, not only is this position more profitable, but it’s also less risky. The max yearly loss of the bitcoin and cash position stands at -5% while the S&P recorded a loss of 6 percent in 2018.

Even if we look at Bitcoin’s performance alone in the years of its existence, we can see that it’s borderline unreasonable to compare it to that of the S&P 500.

Of course, it’s also worth noting that trading Bitcoin and ‘hodling’ it are two completely different things. The cryptocurrency historically generates its yearly gains 10 days, according to Fundstrat’s chief analyst Tom Lee. This suggests that the chances of you missing out on them if you’re trading regularly are substantially higher than if you’re simply holding for the long-term.

What do you think of Bitcoin’s performance year-to-date? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

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Čvn 01

Binance Research: ‘Non-Crypto Public’ is Now Getting Into Bitcoin

Institutional demand for crypto assets is decisively starting to affect the crypto space. Bitcoin remains the “bellwether” of the industry, while data showing that the crypto market has already bottomed out is becoming more explicit, according to Binance Research.


Institutional Appetite For Crypto Is Skyrocketing

The crypto industry will continue to gain momentum over 2019, with the pace of evolution potentially speeding up if crypto asset prices get a boost, according to a new Binance Research report released on May 31, 2019.

The report underscores the all-time high volumes of crypto assets recently traded on the CME Group. Indeed, over USD 1 billion were traded during a single 24-hour period in May 2019.

CME bitcoin futures

Specifically, as Bitcoinist reported, the CME Bitcoin futures reached a record high of 33,700 contracts on May 13, 2019. This impressive number of contracts was 50 percent higher than the previous record of around 22,500 contracts that had been reached on April 4, 2019.

This extraordinary flurry of trading reveals that institutional demand is entering the crypto market. Thus, the Binance Research report concludes,

Institutional investors, currently representing (in our conservative assumptions) less than 10% of all long-term investors, are growing their exposure to digital assets and cryptocurrencies, as illustrated by a premium of nearly 40% for Grayscale Bitcoin Trust (GBTC) over BTC spot price at the end of May.

General Public Getting Back Into Bitcoin

Investors’ interest in Bitcoin over-the-counter (OTC) trading is also increasing. According to the report, in May Bitcoin OTC trading surged, reinvigorating interest in the BTC-USD pair.

Moreover, during May, the OTC market saw the participation of investors previously unrelated to the crypto space. The report states,

We have definitely seen more interest from the non-crypto public this month, and hope that the market ‘behaves’ such that the interest continues to build.

The prospects for the crypto industry could be even rosier if projects in the pipeline, either running on private or partially private closed systems, materialize by providing blockchain-based business solutions to everyday users. And the report goes notes that,

Thanks to their large user-bases comprised of both retail and institutional clients, these initiatives could ultimately benefit the whole crypto asset industry, with new users moving onto decentralized, permissionless and non-custodial platforms.

Furthermore, Binance Research also extensively analyzed changes in crypto asset correlations based on market structure, concluding that “Bitcoin exhibited the highest correlation with other assets…”

This, the report notes, makes BTC “the bellwether of the industry.”

Given Bitcoin’s stellar performance so far in 2019, it also reiterates a conclusion from April 2019, declaring ‘crypto winter to be over.’

Having emerged from a period of the highest internal correlations in crypto history, the data may support the notion that the cryptomarket has already bottomed out.

What do you think about the growth of institutional investors in the crypto space? Let us know in the comments below!


Images via Tradingview.com, Shutterstock

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Kvě 30

Wall Street Bitcoin FOMO: Grayscale Gobbling Up 21% of Newly Mined BTC

Grayscale Bitcoin Trust (GBTC) is now buying up about 21 percent of newly mined BTC monthly suggesting increasing demand from Wall Street.


Insatiable Wall Street Appetite for Bitcoin

According to a Wednesday (May 29, 2019) tweet from Bitcoin analyst Rhythm, Grayscale bought more than 11,000 BTC in April 2019. With 54,000 BTC being mined per month, the largest cryptocurrency asset manager is buying up about 21 percent of the Bitcoin monthly supply.

This proportion represents a significant uptick in institutional BTC accumulation especially given the current price surge. It appears institutional interest is playing a leading role in the 2019 BTC price gain whereas the late 2017 bull market was most likely due to retail FOMO.

If Grayscale continues buying up BTC at the current rate every month then it could own 42 percent of the Bitcoin monthly supply post-2020 halving.

As reported by Bitcoinist on Wednesday, the GBTC premium now stands at about 37 percent of the retail spot market. Each share is currently worth 0.00098247 BTC which corresponds to about $11,600 for a whole Bitcoin.

With GBTC being eligible for some investment retirement accounts (IRA), the 37 percent premium might not constitute a significant bother for Wall Street and institutional buyers.

This insatiable institutional appetite seems to be mostly focused on Bitcoin. On Tuesday, Grayscale published an update showing that its BTC Trust was about 94 percent of its $2.1 billion asset under management (AUM).

Tuesday’s update also meant that its AUM had doubled in less than two months. Back in April, Grayscale announced that its AUM had crossed $1 billion for the first time since late 2018. Grayscale’s highest ever AUM was north of $3 billion during the bull market of late 2017.

Whales Accumulating BTC

In a related development, research published by cryptocurrency newsletter Diar shows that whale wallets were quietly accumulating BTC during the 2018 bear market.

Whale Wallets Accumulating Bitcoin During 2018 Bear Market

This conclusion comes from the increase in “Firm Size” Bitcoin address – wallets holding between 1k BTC and 10k BTC during the bear market period. According to the research, whales now hold $6 billion in BTC more than they did in August 2018 – corresponding to about 26 percent of the total Bitcoin circulating supply.

Earlier in May, Bitcoinist reported that the BTC “one percenters” were increasing their holdings with massive inflows and only a trickle of outgoing transactions. At the time, Bitcoinist even surmised that such outflows might even be attempts at breaking up their Bitcoin bags.

Will the increased institutional Bitcoin acquisition push the price to a new ATH in 2019? Let us know in the comments below.


Images via Twitter @Rhythmtrader, @GrayscaleInvest and Diar

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Kvě 24

Weiss Ratings: Bitcoin Correction The Best Buying Opportunity Since 2015

Weiss Ratings believes that bitcoin price surging to $8,373 will open the doors to a once in a lifetime purchasing opportunity.


Weiss Says Buy the Dip

On Thursday Weiss Ratings tweeted that Bitcoin’s current technical setup presents the best purchasing opportunity for investors since 2015.

The independent rating agency based their assessment on analysis from their chief crypto analyst Juan Villaverde.

The analyst explained that Bitcoin’s recent surge to a 2019 high at $8,373 has primed the market for an impending correction that will represent the greatest purchasing opportunity since 2015.

According to Villaverde, similar price action occurred in 2012 and 2015 and the cryptoanalyst explained that:

In January 2012, for instance, after Bitcoin has rallied to $7 per token from its bottom of $2 just months earlier, Bitcoin suffered a 45% correction down to about $4. But that was a launching pad for a bull run that would take Bitcoin into four-digit territory for the first time in its history, hitting a high of almost $1,200 by December 2013.

Villaverde then pointed to an identical occurrence in 2015 when Bitcoin price notched $500 in November only to be followed by a sharp 40% sell-off to $300 a week later.

Will Bitcoin Pull Off a ‘Three-Peat’?

Naturally, investors will be concerned about whether history will repeat itself and the phrase “past performance is not indicative of future results” comes to mind.

Villaverde addresses this valid concern by pointing out that that Bitcoin’s fundamentals have improved significantly over the past year and the fact that Bitcoin usage is near all-time highs, with daily transaction volumes nearly reaching levels not seen since late 2017 is encouraging.

According to him, Bitcoin’s 24-hour transaction volume recently reached a 2019 high of 450,000 and the previous all-time high occurred on December 13, 2017, just a few days before prices reached $20,000.

Weiss also pointed out that Bitcoin network fees remain at their lowest levels since August 2017 despite the consistent increase in transaction volume. Villaverde explained that there is a negative correlation between usage and fees and this is proof that upgrades like SegWit and the Lightning Network were paramount in making this possible.

Overall Villaverde encouraged investors to focus on the positives and reiterated that: the recent major rally confirmed the beginning of a bull market, Bitcoin’s fundamentals have improved the point of supporting increasing price and he cautioned investors to be attentive of an impending sharp correction, which could provide a fantastic purchasing opportunity.

Do you agree with Weiss Ratings advice to buy the next Bitcoin dip? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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