investments - Pwim.Net

Post-Halving Prediction: Bitcoin Price Hitting $20,000 Only a Matter of Time

With the much-anticipated Bitcoin halving just around the corner, pundits, investors, and traders are keeping a keen eye on this event because mining rewards will be slashed from 12.5 BTC to 6.25 BTC. Crypto trader TheMoonCarl tweeted that the number of non-zero Bitcoin addresses has now exceeded 30 million.

Jumping on the Bitcoin (BTC) bandwagon

The trader added that this record-breaking gesture was instrumental in showing the way people were flooding the Bitcoin bandwagon. As a result, he believes that the all-time high Price of BTC of $20,000 will be broken.

This data corresponds with information availed by Glassnode, an on-chain crypto data provider, that the record of 30 billion non-zero Bitcoin addresses was noted in April 2020.

These figures, therefore, show that people’s interest in Bitcoin is on an uptrend before the third halving event as the previous ones happened in November 2012 and July 2016.

Importance of Bitcoin halvings

Bitcoin halving events usually happen after every four years as the coin supply is reduced by 50%, and if demand remains the same or increases, BTC price is anticipated to rise. They, therefore, make Bitcoin a deflationary currency as its value increases with time.

On July 9, 2016, the second halving incident happened, and the price stood at $664. An upward trajectory was witnessed because on February 23, 2017, it escalated to $1,167, and this served as the spark that triggered a bull run to an all-time high of $20,000 in December 2017.

With the BTC price having shattered the $8,000 mark, it seems investors are on a buying spree so that they cannot miss out before the halving event docks as history shows past incidents are followed by considerable bull runs. Notably, it was revealed that after some Americans received their Stimulus Checks to caution them against the harsh coronavirus effects, they decided to invest them in BTC.

Image via Shutterstock

Fidelity: 60% of Institutional Investors Believe that Digital Assets Have a Place in their Portfolio

Fidelity Digital Assets surveyed 774 institutional investors across the United States and Europe, and 80 percent of those who were surveyed found something appealing about digital assets.

The research was conducted from November 2019 to early March 2020 and is the second consecutive year that Fidelity Digital Assets has conducted this survey for US institutional investors and the first for European investors.

60 percent of the institutional investors surveyed believe that digital assets have a place in their investment portfolio.

Over a quarter of institutional investors surveyed by Fidelity Digital Assets are holding Bitcoin, while 11 percent have exposure to Ethereum.

36 percent of respondents, including 27 percent from the US and 45 percent from Europe say that they are currently investing in digital assets.

91 percent of respondents who are open to exposure to cryptocurrencies in a portfolio expect to have at least 0.5 percent of their portfolio allocated to digital assets. Investors in the US has seen a 9 percent increase this year (88%) compared to 79% in 2019.

Tom Jessop, the president of Fidelity Digital Assets commented, “These results confirm a trend we are seeing in the market towards greater interest in and acceptance of digital assets as a new investable asset class. This is evident in the evolving composition of our client pipeline, which spans from crypto native funds to pensions.”

The trend of cryptocurrency and digital asset adoption is expected to increase next year.

The Great Monetary Inflation

Billionaire hedge fund manager Paul Tudor Jones was reportedly looking to buy Bitcoin to hedge against inflation as central banks across the world are printing money to relieve economies affected by the coronavirus pandemic.

Jones is one of Wall Street’s most seasoned and successful hedge fund managers, CEO and founder of Tudor Investment Corp, a hedge fund that managed $8.4 billion assets under management as of March 30, based on data from the Securities and Exchange Commission.

Jones compared Bitcoin to gold by saying that the digital currency reminds him of the role that gold played in the 1970s. Jones was well known for his correct prediction of the 1987 market crash and shorted Japanese equities several years later before Japan’s economy crashed.

Jones said in an investor letter, called The Great Monetary Inflation, “The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”

Jim Rogers Predicts Economic Bailout Meltdown, Wall Street Investors will turn to Bitcoin Safe Haven

Chairman of Roger Holdings and prolific American investor Jim Rogers warns that the trillion-dollar bailout will lead to an economic meltdown. Another legendary Wall Street investor, George Ball predicts Bitcoin will be the safe haven of choice.

Jim Rogers said that the recent COVID-19 emergency stimulus programs and central bank bailouts will lead to the worst economic meltdown of his lifetime.

Rogers’ warning came in a recent interview, where he discussed the efforts of global central banks to stimulate their respective economies through the creation of trillions of dollars in currency. Despite the stock market now going back up and appearing healthy, Rogers predicts the bailout will ultimately end very badly in the long-term.

Rogers sees the US markets as a bubble that will pop when the US elections are no longer a priority. He said, “Remember there is an election in the US in six months in November and all those guys want to get re-elected. They do not care about you and me and our kids. They care about November and getting re-elected. So, all sorts of good things will keep happening and the markets will be ok for a while…”

Liquidity Flood Will Run Dry, Bitcoin Will Rise

While Jim Rogers has admitted in the past that he wished he had invested in Bitcoin in its earlier days, he said during the interview the he is putting his money in gold, silver and has bet on many of the industries that took a beating during the covid-pandemic—transportation, tourism and logistics.

In a recent interview with Reuters, George Ball the former chief executive of Prudential Securities and current chairman of Sanders Morris Harris said that despite being a long time Bitcoin opponent, he now sees Bitcoin as a safe haven asset following the United States government’s efforts to continue to stimulate the economy with liquidity.

Ball has joined the growing list of traditional financial industry experts to advocate for Bitcoin as a safe have asset and hedge against inflation. While Ball commended the efforts of the US government and the Federal Reserve and their attempts to offset the coronavirus pandemic’s disruption to the economy, he said, “The approach of the end of that road is going to be a lot closer by the fourth quarter than it is now and therefore both traders and investors should and probably will realign their portfolios substantially.”

While the impending collapse and debasing of the US dollar is currently being resisted by the Federal Reserve in its attempts to go digital with its central bank digital currency development and coming FEDNow digital payments platform, the news is a bullish indicator for the Bitcoin price and Ball predicts it will kick off on September 7, 2020.

The former Prudential Securities chief executive predicts that following September 7, Labor day, a migration will “ignite” from traditional finance to Bitcoin trading and hedging as citizens will look to secure their wealth in an asset that cannot be “undermined by the government.”

Billionaire Chris Kirubi Warns Followers of Bitcoin Scammers Impersonating the Kenyan Tycoon

Kenya’s billionaire businessman Chris Kirubi has once again tweeted a warning to inform his 1.4 million followers about cryptocurrency websites that have been using his name and photos to solicit investments in a scheme called “Bitcoin Profit.” The tycoon clarifies that he is not associated with such organizations, and the information provided is deceptive and misleading.

Industrialist and businessman Dr. Chris Kirubi is on the list of Africa’s wealthiest people by Forbes Magazine, with his total net worth valued at US$400 million (Ksh40 billion). He is known for sharing wisdom concerning business and investment tips through his credible websites and official verified social media handles. The scammers have been re-quoting well-known sayings and pieces of Kirubi’s typical advice on business and investment to appear authentic to unsuspecting Kenyans.

Renewed Warnings

The tycoon already sounded the alarm over a similar scheme in March.

The automatic trading software called “Bitcoin Profit” has been citing Kirubi as one of their investors to catch the attention of unsuspecting Kenyans.

The rogue website falsifies information, portraying Dr. Kirubi to have spoken these words on the fraudulent money scheme:

“I thought it wasn’t true when my older brother told me but after seeing with my own eyes, I am glad I tried it.”

The Ponzi scheme website goes further to fake detailed information regarding how Kirubi had ventured into this latest investment and was reaping big.

Kirubi, therefore, urges members of the public to exercise extreme caution when making any investments.

This is not the first warning alert. As early as 2015, Kenyans were warned against being duped by crypto fraudsters. During the same year, the Central Bank of Kenya issued a stern warning to the public against digital currencies. In 2018, the central bank blacklisted cryptocurrencies and warned banks against dealing with them, citing security concerns.

During early last year, a lesser-known Brazilian crypto platform called Velox 10 Global defrauded thousands of millions of Kenya shillings belonging to local Bitcoin investors. Last year, the Blockchain Association of Kenya stated that the total number of crypto transactions, particularly Bitcoin, in Kenya was approximated to be worth more than US$1.5 million.

Crypto Scammers Appeal to People’s Greed

Millions of crypto investors have been scammed out of huge amounts of money. In 2018, losses from crypto-related crimes amounted to US$1.7 billion. The fraudsters use new-technology and old-fashioned tactics to swindle their marks in schemes based on virtual currencies exchanged through online databases known as blockchain.

Many crypto scammers rely on the tried-and-true Ponzi schemes, which use the income from new clients to pay out returns to earlier investors. Others use highly sophisticated and automated processes, including automated software, which interact with social media channel systems among people interested in virtual currencies. Even in cases where cryptocurrency plans are legitimate, scammers can still manipulate their prices in the marketplace.

Guggenheim’s Scott Minerd Says Bitcoin Price Should Rise to $400,000

As Bitcoin trades at a fresh record high above $20,000, Scott Minerd, Global Chief Investment Officer at Guggenheim Investments, believes that the true value and scarcity of the leading cryptocurrency means that the BTC price still has the potential to continue rising exponentially.

In an interview with Bloomberg Television on Wednesday, December 16, Minerd said that Bitcoin’s scarcity together with the frequent money printing by the U.S Federal Reserve implies that the cryptocurrency would eventually increase its value to about $400,000. Minerd remarks came the same day when Bitcoin price reached $20,000 for the first time, thus bringing its gain in this year to 190%.

Minerd said:

“Our fundamental work shows that Bitcoin should be worth about $400,000. It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So, you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions.”

Guggenheim Investments is one of the several institutional investors that have embraced the crypto landscape. In the previous month, the global investment financial company reserved the right to invest up to 10% of its net asset value ($5.3 billion Macro Opportunities Fund) in the Grayscale Bitcoin Trust, which solely invests in Bitcoin, thus enabling investors to gain exposure to BTC in form of a security while avoiding the challenges of purchasing, safekeeping, and storing Bitcoin directly.

Bitcoin Gains Greater Acceptance

This year, Bitcoin, the world’s best-known cryptocurrency, has increased its value to new records, a phenomenon that has attracted a growing number of investors who have backed it as an alternative to other assets. In the last 24 hours alone the Bitcoin price has gained almost 10% and BTC is valued at $21,312 according to CoinMarketCap at the time of writing.

Just like Minerd, some Bitcoin advocates including famous macro investor Paul Tudor Jones have also stated similar sentiments. Earlier this year, Paul Tudor Jones said that he has been purchasing Bitcoin as a hedge against inflation that he sees coming from Central Bank money printing and muted rise of consumer prices. Galaxy Digital’s Mike Novogratz also stated that the cryptocurrency can assist in protecting against macro risks.

Bitcoin Has Surged by More Than 295% in 2020 as US Dollar Index Slips to a 32-Month Low

Bitcoin’s momentum is not showing any signs of slowing down as it has hit a new record high of $28,600. It has since corrected to trade at $27,808.00 at the time of writing, according to data from CoinMarketCap.

This bull run has made the leading cryptocurrency gain more than 295% this year amid an overwhelming appetite from institutional investors, according to Reuters.

Per the announcement:

“The world’s most popular cryptocurrency was last up 3.7% at $28,375. Since breaking $20,000 for the first time on Dec. 16 it has surged by nearly half.”

Things have not been turbulent-free for Bitcoin (BTC) in 2020, as it shed nearly 50% of its value in mid-March after plummeting to $3,800 amid the coronavirus (Covid-19) pandemic.

Uncertainty was triggered, which prompted investors to secure their hedges in assets like cryptocurrencies. Tables have turned because BTC has surged to levels not seen before thanks to huge institutional investments and financial initiatives like quantitative easing (QE) aimed at bailing out global economies from the turmoil caused by the pandemic. Reportedly, institutional investors own 16% of Bitcoin’s realized market capitalization.

Stimulus money printing makes Bitcoin more attractive

Bitcoin price is expected to rally higher as President Trump signed a $900 billion pandemic stimulus bill on Sunday night. This is a factor making the US Dollar Index (DXY) slip to levels not seen before in the recent past. IGSquawk, a trading insight provider, noted:

“The dollar index has hit its lowest level since April 2018.”

With analysis showing an inverse relationship between the DXY and Bitcoin, the latter is set to skyrocket as it has proved to be a safe-haven asset. Furthermore, investors have succumbed to the fear of missing out (FOMO). Nevertheless, data from crypto analyst Willy Woo has indicated that only 2% of the current world population owns Bitcoin.

Bitcoin Set to End the Year with a Bang With Biggest Monthly Gain Since May 2019

December 2020 will be written in Bitcoin’s history books as the month that saw the leading cryptocurrency shutter the all-time high (ATH) price of $20,000 it set three years ago. It will also serve as the time period when BTC zoomed off to new heights above the $28,500 mark.

Therefore, BTC has enjoyed a rollercoaster ride this month and it is set to close out a banner year with a bang. Market analyst Holger Zschaepitz has taken to Twitter to disclose that this month’s bull run has not been seen since May 2019. He said:

“Bitcoin is on track to close out a banner year with another bang: Cryptocurrency surged >$28k to a record high of $28,572, and is on track for its biggest monthly gain since May 2019 w/+46% in December so far.”

Bitcoin’s momentum is not showing any signs of stopping because it has gained by more than 4.5 percent in the last 24 hours, even though it has slid back to $27,873 at press time. This trend has made a Wall Street veteran and CEO of Real Vision Raoul Pal to stipulate that buying any dip will be of the essence.

Institutional investors have shown their overwhelming appetite for Bitcoin and this is one factor making its price to go through the roof. Earlier this month, leading business intelligence firm MicroStrategy purchased BTC valued at $650 million. Furthermore, GrayScale, an institutional-grade digital asset manager, revealed that its total asset under management (AUM) stood at $19 billion with the bulk being Bitcoin at $16.3 billion.

Bitcoin is, therefore, scheduled to end the year on a high, given that it has surged by more than 295% so far in 2020 even though it lost nearly 50% of its value back in March as the Covid-19 pandemic nearly brought the world to a halt.

Big Investors Are Fueling Bitcoin’s Record-Breaking Rally, According to PWC

Bitcoin (BTC) has been on overdrive because it has been scaling heights not seen in its twelve-year existence. Top-four accounting firm PricewaterhouseCoopers (PwC) has acknowledged that big investors have been driving BTC’s price upwards based on their overwhelming appetite for the leading cryptocurrency.

Institutional investors have been on a frenzy

According to PwC’s global crypto leader, Henri Arslanian:

“Bitcoin’s record-smashing rally seen in recent weeks was partly driven by the entry of more big, institutional investors into the market.”

The trigger towards the $30,000 price was pulled after Bitcoin surged past the all-time high (ATH) level of $20,000 in mid-December. On Dec 31, the price had skyrocketed to $29,200, and crypto traders were optimistic that it was just a matter of time before Bitcoin breached the $30,000. Over the weekend, BTC’s bull run pushed the price to $34,800 even though it has retracted to $32,093 at press time.

Arslanian added:

“When you look at this Bitcoin rally that we have been seeing in the last couple of weeks and months, really, there’s two big elements driving it. One is the continuous entry of institutional players.”

Institutional investors have been on a massive spending spree instigated by factors like the fear of missing out (FOMO). For instance, Nasdaq-listed MicroStrategy recently added Bitcoin worth $650 million to its portfolio. Furthermore, Grayscale Investments has been making headlines as its total asset under management (AUM) stands at $19 billion with Bitcoin taking the bulk at $16.3 billion.

Big investors’ endorsements are giving Bitcoin the upper hand

PwC alluded to the fact that institutional investors’ endorsement is watering down the skepticism by mainstream investors. As a result, confidence in the leading cryptocurrency has been pushed through the roof given that large financial companies like Fidelity and PayPal are making notable moves in the crypto space.

Retail investors also have a hand in the recent BTC rally. Arslanian acknowledged:

“A second development driving the current bitcoin rally is retail investors and their fear of missing out. A lot more people today have accounts on crypto exchanges than before as buying cryptocurrencies is easier now than before.”

Bitcoin’s existence in the financial scene is no longer in oblivion given that its rally towards $30,000 was recently featured on the front page of Financial Times.

Institutional Demand Can’t Keep Bitcoin Above $30K Says Guggenheim’s Minerd

Institutional investment in Bitcoin is not enough on its own to justify Bitcoin’s price levels said Guggenheim CIO Scott Minerd who predicts BTC will trend down below the $30K level.

Despite reports of the surging institutional demand for Bitcoin, Guggenheim’s Scott Minerd says these investors are not enough to keep the BTC price firmly above the $30,000 level.

In an interview with Bloomberg on Jan. 28, Miners said:

“Right now, the reality of the institutional demand that would support a US$35,000 price or even a US$30,000 price is just not there […] I don’t think the investor base is big enough and deep enough right now to support this kind of valuation.”

Minerd who manages over $310 billion in assets confirmed that he thinks Bitcoin is still a viable asset class in the long run. After making a huge prediction that BTC be worth $400,000 per coin in Dec.2020—Minerd said a month later on Jan. 20 that he felt that Bitcoin may have temporarily peaked and could retrace to US$20,000.

Institutional adoption has been the main narrative behind Bitcoin’s incredible price rally throughout 2020, and BTC recorded and all-time high of almost US$42,000 at the start of the year before a steady fall back to near US$31,000.

Recently institutional giant Blackrock became the latest corporate behemoth to buy into the crypto and companies like MicroStategy and Square and have thrown huge amounts of cash into Bitcoin for their corporate treasuries.

Cryptocurrencies are not the only speculative area of the market that Minerd has his eye on, saying that the frothiness surrounding heavily shorted companies like GameStop Corp. will continue through the end of the first quarter.

Minerd said:

“It’s not uncommon to see squeezes like this […] “Now that we have all these small investors in the market and they see this kind of momentum trade, they see the opportunity to make money and this is exactly the sort of frothiness that you would expect as you start to approach a market pop.”

He added:

“While there’s frothiness, while valuations are getting extended, these are poor timing tools […] So, this could go on for a quite awhile.”

Despite the current consolidation in the Bitcoin market, SkyBridge Capital founder Anthony Scaramucci believes that it is the new age of micro investors. Retail traders are now increasingly shunning Wall Street and triggering bull runs in stocks like GameStop Inc., and this is positive for Bitcoin (BTC).

Furthermore, Crypto exchange Luno and brokerage OSL believes that Bitcoin is still in the right trajectory and set to hit $50,000 in the long term. As hedges against inflation continue to be sought out by investors, Bitcoin’s neck-to-neck battle with gold as the better safe-haven asset continues.

The price of Bitcoin could receive a boost as the Federal Reserve (Fed) officials voted at the Federal Open Market Committee (FOMC) meeting on Wednesday to maintain federal fund rates near 0% and continue $120 billion per month in bond purchases while the economy heals. This would allow for similar market condition that aided Bitcoin’s parabolic bull run in 2020 to continue.

A further boost to Bitcoin’s price as data reveals that 100,000 BTC options are scheduled to expire on crypto exchange Deribit today, a bullish signal according to analysts.

Bitcoin price is currently trading at around $31,333 up from an intra-day low of $29,376 according to CoinMarketCap.

Bitcoin Price Not Everything Says Bitfinex CTO, as BTC moves Sideways

The Bitcoin price has stagnated, trending sideways between $32,000 and $34,000—but recognizing BTC’s true value is not all about the price of the crypto says Bitfinex CTO Paolo Ardoino.

Financial markets are still trying to cope with the trend of coordinated buying attacks of r/Wallstreetbets, which has spread into the cryptocurrency markets with subreddits like r/Satoshistreetbets and Telegram Groups that helped initiate the pumps and dumps of Dogecoin (DOGE) and Ripple’s XRP.

With the markets being driven by a profit-driving frenzy, there has even been chatter about a coordinated buying attack on Bitcoin, with some interesting data revealing hedge funds have been shorting Bitcoin and one of the most well-known online Bitcoin communities passed two million subscribers in a surge of activity on Friday.

However, as CTO of Bitfinex Paolo Ardoino said in a note to Blockchain.News last week, it’s not about the price of Bitcoin it is about the underlying technology that could create further democratization of the markets, an underlying narrative of the WSB squeeze on GameStop shares. Ardoino said:

“An increasing recognition of Bitcoin’s distinctive traits should outlast the current GameStop interest. While nascent, cryptocurrencies have the potential to invert the power structure of inequitable financial markets that are weighted against retail investors.”

The Bitcoin price surged to $38,000 over the weekend, following Tesla founder and CEO Elon Musk giving the cryptocurrency his endorsement. It has since returned to the $32,000 to $34,000 range and continues to move sideways. But more exciting to Ardoino is the recognition that Bitcoin is now seeing from figures such as Musk and institutions. In a new note today Ardoino commented:

“Bitcoin’s recognition as a ‘good thing’ has always seemingly been judged according to its price. Yet amid more feverish speculation in frothy markets, it is important to remember the underlying vision behind the king of crypto. Bitcoin is the base layer of an emerging alternative financial system. The discontent that has erupted as the r/WallStreetBets Reddit group does battle with citadels may well add further fuel to bitcoin’s ascent.”

Will Bitcoin Price Breakout Soon?

Despite the sideways price action, Ki Young Ju, the CEO of the cryptocurrency analysis firm CryptoQuant, identified a potential bullish indicator yesterday that may be signaling a BTC price breakout in the crypto’s near future.

According to the CryptoQuant CEO, more than 15,000 Bitcoin were recently withdrawn from Coinbase Pro with the outflows going “into custody wallets”—this indicates that OTC deals from institutional investors are likely occurring. Bitcoin price rallies have followed similar outflows in the past, and Ju sees this as a sign BTC will at least be able to “protect $33,000 in the short-term.”

The influx of institutional and corporate buyers into Bitcoin has added to the strong hands that currently make up the market. Industry data has consistently shown that more than 60% of BTC’s circulating supply is being held for the long-term.

It appears Bitcoin is headed in the right direction as the market matures and the nascent digital asset continues to gain support among S&P 500 companies. Ark Invest said in its latest Big Ideas report, that Bitcoin’s price is supported by “robust network fundamentals, ” and further stated the BTC price would increase by roughly $40,000 if “all S&P 500 companies were to allocate 1% of their cash” to BTC.

The scenario may seem a long way away, but it is becoming more and more realistic as institutional capital continues to be injected into the BTC network.

The Bitcoin price continues moving sideways and BTC is trading at $33,638.08 according to CoinMarketCap.