October 23, 20200 Comments
Microstrategy CEO Michael Saylor said he will hold his company’s Bitcoin (BTC) for 100 years, and has no intention of selling it.
On Aug 11, the business intelligence firm announced it had purchase of 21,454 BTC for $250 million. This investment is now worth more than $278 million, representing an 11% increase in two months. The firm has purchased more Bitcoin since.
In a new interview with Real Vision CEO Raoul Pal, Saylor said the decision to invest $250 million was informed by a discussion between its board of directors and the firm’s investors, auditor and executives. Saylor explained:
“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”
Microstrategy decided to restructure its treasury in response to recent global economic uncertainty, looking to explore assets suited to providing a long-term store of value
But after considering a variety of options with a 100-year outlook, Saylor decided Bitcoin was the only option. Tax and fees kill almost all other assets, he concluded, and those that aren’t killed, are crippled because they are controlled by a CEO, government or country.
Bitcoin, on the other hand, is evolving, and over time it gets harder, stronger, and faster, Saylor concluded, describing BTC as a “hive of cybernetic hornets protected by a wall of encrypted energy.”
When looking at Ethereum as an alternative to Bitcoin, he told Pal, it didn’t compare as they are “still chasing after functionality.” He explained that “it still has to be proven,” adding:
“There are centralized competitors to it and they’re [Ethereum] not done with the functional architecture yet.”
The fact that Bitcoin is so big, compared with all other cryptocurrencies, is “the market screaming to you there is a winner, […] it’s eating the world.”
Saylor asserted Bitcoin is the world’s best collateral and doesn’t even compare to gold or any other commodities. He told Pal that if you hold $100 million in cash over 100 years, you will lose 99% of it, and if held in gold, you will still lose 85% at best.
Saylor described Bitcoin as performing similar monetary utilities as gold, only better and without the fear of dilution — likening BTC to gold as what steel is to bricks:
“Bitcoin, if it’s not a hundred times better than gold, it is a million times better than gold, and there is nothing close to it.”
With Bitcoin, Saylor argued, “anybody can inspect the fact that I own the Bitcoin in one second”, and yet it can be “sent anywhere in the world for $5.” He added that he could liquidate $100 million BTC on “a Saturday afternoon.”
Saylor told Pal that many people believe he has weak hands, saying “‘Ya, Saylor’s going to buy it and he’s going to dump it. He’s going to buy it and then buy another company with it. He’s going to buy it until he gets this profit and do whatever.’” but in reality, he isn’t going to sell it, explaining that he is in it for the long haul:
“They don’t understand the mindset of long. I’m buying it for the dude that’s going to work for the dude that’s going to get hired by the guy who takes over my job in 100 years.”
Saylor finished the two-hour-long interview by noting that his executives are closely watching developers in the crypto space:
“My whole board is listening to what you guys are saying.”
Author: by admin
Bitcoin Futures – October 22
Dear traders, nice to meet you.
“Like” is a huge force for me.
By “following” you can always get new information quickly.
Thank you for always supporting me.
We have to see if we can climb above the 12974.0 point.
It remains to be seen how the volatility around October 22nd (October 21-23) will turn out.
It remains to be seen if it can rise to the 14299.0-14962.5 interval with the Fibonacci retracement rate interval.
If it falls, you need to make sure it is supported by the uptrend line (4).
(1h chart)-short-term strategy
It was ended because it entered the LONG strategy among the previous short-term strategies and touched above the target point.
The important point in our current location is 12974.0.
Also, the volume profile point of the 1h chart is formed at 12471.0 point.
Therefore, we believe that a short-term strategy should be established according to the flow that deviates from the 12471.0-12974.0 range.
Entry: When supported in the 12471.0-12974.0 section and break above the 12974.0 point
(If you touch the rising trend line (C) and go up, or touch the 12471.0 point and go up, a bigger rise is expected.)
Target point: 13272.0 point or higher
Entry: When resistance is received in the 12471.0-12974.0 section and breaks down the 12471.0 point
(You can touch and climb the Fibonacci retracement rate point of 12308.5, so you need to enter carefully.
Depending on whether you get support or resistance at the uptrend line (4), it remains to be seen whether SHORT’s strategy will continue or Stop Loss.)
Target point: 12163.5 points or less
( CME Bitcoin ( BTC1! ) 1D chart)
Today’s gap range is 12755.0-12965.0.
We have to see if it falls below the 12755.0 point to fill the gap.
It remains to be seen if the volatility around October 22nd (October 21-23) could rise above 13600.0 points.
If it falls, you need to make sure you get support at 12590.0.
13600.0-14470.0 is the gap that was formed before.
It remains to be seen if it will fill the gap this time.
(BAKKT Bitcoin ( BTM1! ) 1D chart)
Today’s gap is 12977.5-13010.0. (Not shown on the chart.)
New High is updated on the BAKKT chart, so there is no point for reference.
Accordingly, let me talk to the Fibonacci retracement ratio point.
The Fibonacci retracement rate point is on the rise after breaking through the 12342.5 point.
If it falls, you need to make sure it is supported by the uptrend line (1).
The next support and resistance interval in the Fibonacci retracement ratio is between 14302.0-14955.0.
If you get support in this segment, you’re likely to touch more than 16261.5 points.
If you get resistance and fall in the 14302.0-14955.0 interval, there is a chance it will fall below the 12342.5 point.
The trend line that is important in your current position is the uptrend line (1).
We have to see how volatility around October 23rd (October 22-24) goes on.
( BTC Dominance 1D Chart)
It can be seen from the BTC Dominance Chart that the coin market funds are concentrated in BTC .
(USDT Dominance 1D Chart)
There was a trend that deviated from the downtrend line (1)-(3).
You need to make sure you can get resistance at point 4.163.
You also have to watch if you can touch the uptrend line (4).
If the USDT dominance continues to decline in this way, it is expected that the coin market will begin an overall bull market in the near future.
As altcoins’ prices have fallen to near the lowest point this year, we must see if they can gain momentum from the upward trend.
I think this is the beginning of the last fireworks show of this year that I mentioned earlier.
** Check support, resistance, and abbreviation points.
** Support or resistance is based on the closing price of the 1D chart.
** All explanations are for reference only and do not guarantee profit or loss on investment.
Explanation of abbreviations displayed on the chart
R: A point or section of resistance that requires a response to preserve profits
S-L: Stop-Loss point or section
S: A point or segment that can be bought for profit generation as a support point or segment
(Short-term Stop Loss can be said to be a point where profits and losses can be preserved or additionally entered through installment trading. You should trade from a short-term investment perspective.)
GAP refers to the difference in prices that occurred when CME and BAKKT exchanges were closed because they do not trade 24 hours a day.
G1: closing price when closed
G2: Market price at the time of opening
Bitcoin surpasses $ 12,000 by crushing altcoins
Bitcoin has surpassed $ 12,000 for the first time since September 1. Most of the altcoins were crushed while Bitcoin was rising.
Bitcoin price has risen above $ 12,000 for the first time since September 2. The largest cryptocurrency by market value today saw $ 12,059 as of 20.48 TSI.
While Bitcoin left behind 12 thousand dollars in global crypto money exchanges, it exceeded 94 thousand 600 TL in domestic crypto money exchanges. This level became a new record level for Bitcoin.
In Bitcoin, the price and dominance rate are parallel. According to CoinMarketCap data, while the Bitcoin price rose, its dominance rate exceeded 60.5 percent.
Altcoins did not accompany the price increase today. While many of the altcoins are losing value, the biggest loss in the top 10 is in Chainlink (LINK) with 9 percent. LINK, which saw $ 20 in mid-August, is currently changing hands at $ 10.
The mining race in Bitcoin has heated up recently. With the difficulty adjustment made a few days ago, the mining difficulty in Bitcoin has increased to 20 trillion. This figure has never been seen before. On the other hand, according to Blockchain.com data, the hash rate was measured as 147 eksahash on October 18. 147 eksahash is a new record high for Bitcoin.
“Bitcoin has risen steadily in recent weeks, partly due to news about Square’s $ 50 million acquisition of Bitcoin, and perhaps more importantly, US Federal Reserve Governor Jerome Powell’s comments on CBDC,” said Simon Peters, analyst at popular investment platform eToro. It is necessary to wait to see how the market will react to $ 12,000. This year, prices have not remained convincingly above this level. For a bull run, the price should stay above $ 12,000 for a long time. If it manages to hold above $ 12,000, the next target is $ 14,000. ” used the expressions.
$ 12K is a strong resistance point for Bitcoin. Tim Enneking, managing director of Digital Capital Management, described the $ 12,000 level as “the mother of all resistances,” and “All price movements over the past five months revolve around this level, and it still is.” used the expressions.
Enneking suggested that after Bitcoin holds above $ 12,000, it will face a 16-month wall at $ 14,000.
Author: News Bureau
DeFi season could be over as Bitcoin and Ether pack bags for the moon
With Bitcoin price successfully punching through the $12,000 barrier after PayPal announced that it would be venturing into digital assets, October is delivering on the excitement that September failed to provide. And with on-chain and market data continuing bullish signs for Bitcoin (BTC), experts believe that a 2017-style rally may be on the way.
Ether (ETH) price has also picked up, although confidence in decentralized finance is beginning to shake as the industry’s growth and hype are slowing down. DeFi has been the major kick-starter for cryptocurrency popularity in 2020, but now, other digital assets seem to be ready to start thriving and could reach considerable heights by the end of the year.
According to a recent report by Finder — an online comparison resource — featuring 30 experts from the industry, Bitcoin’s price is likely to reach $14,283 by the end of the year. And according to Finder’s cryptocurrency editor, Andrew Munro, Bitcoin’s reputation as a reliable store of value is the main reason behind the generally bullish outlook. He told Cointelegraph:
“Many panellists noted that BTC is increasingly finding a place in traditional portfolios and is being bought by both institutional and retail investors as a hedge against inflation. Given the unprecedented quantitative easing efforts by central banks around the world some panellists speculated that BTC would become a widely adopted ‘store of value’ asset.”
Other experts have cited numerous reasons for a rally in the price of Bitcoin, namely an increasingly clear regulatory framework in the digital asset market and the many setbacks associated with fiat currencies, such as inflation and negative rates.
While the panel average predicted a $14,283 Bitcoin price by the end of the year, other predictions point to a much higher price tag, especially considering the famous stock-to-flow model created by anonymous analyst PlanB.
While Bitcoin is beginning to show signs of strength over other cryptocurrencies, with increasing trade and market capitalization dominance, industry participants also hold a positive outlook on Ether, with a panelist average of $513, a 40% increase by the end of the year. However, in the long term, experts are not so sure about Ether’s sustainability. Munro said: “The most commonly cited factor behind bullish near-term Ethereum predictions was the expected launch of Ethereum 2.0 before the end of the year, and the impact of staking on circulating supply.”
Ethereum has seen increased popularity throughout 2020 due to the rise of DeFi, but some skepticism is being voiced over the long-term prospect and sustainability of DeFi. While many are hoping for the launch of Ethereum 2.0, that may take years to finalize. According to Jonathan Hobbs, author of The Crypto Portfolio and a former digital asset fund manager, told Cointelegraph that it’s one of the reasons for the positive returns on Bitcoin:
“Defi plays got overly speculative earlier this year, as they often do in this industry. We can see some of those flows now moving back towards bitcoin, with bitcoin dominance trending upwards post the DeFi sell-off.”
As profits from the DeFi alt season trickle back into Bitcoin, the long-term sustainability of decentralized finance may come into question. In fact, a survey by CryptoCompare asked 26 exchange operators in leading trading venues about the future of decentralized exchanges, with only 7.7% finding it likely that DEXs will overtake centralized exchanges in two years’ time.
It is clear that DeFi activity is slowing down, but some believe this is actually good in the long run. Lanre Jonathan Ige, a researcher at Amun AG — an issuer of cryptocurrency exchange-traded products in Europe — told Cointelegraph:
“The mellowing in immediate hype for DeFi will be disappointing for the short-term trader but is likely good overall for the industry. The bubble over the summer was not sustainable but did show that various aspects of DeFi (lending, trading, DAOs) are actually useful for particular use cases.”
While sustainability seems to be the main blocker for any long-term success of decentralized finance, both when it comes to the returns on DeFi and to the technical aspects of Ethereum, others have cited a shady crypto industry, complicated interfaces and a general lack of popularity as deterrents to the continued growth of DeFi. Munro stated: “73% of the panel said ‘scams, excessive hype and market manipulation’ were a key obstacle to DeFi growth, and some likened DeFi to the ICO boom in 2017.”
Nevertheless, many remain hopeful about DeFi. In fact, the majority of panelists in Finder’s cryptocurrency report said DeFi applications will likely continue to steadily grow over the next 12 months in terms of value locked and the number of users. Ilya Abugov, lead analyst at DappRadar also believes this to be the case, telling Cointelegraph: “There is less media hype in DeFi right now. There was a lot of buildup in the summer, so now there is a bit of a sobering up moment.”
While DeFi may have been the catalyst for the summer’s crypto activity, institutional interest may be the driving force for Bitcoin going forward, according to Lanre, especially because big corporations such as MicroStrategy, Stone Ridge and Square are now getting involved,
Exchange operators queried in the CryptoCompare survey believe this to be the case as well, with 92.3% stating that there will be a rise in institutional investment in digital assets in the next two years. According to Hobbs, Bitcoin’s scarcity and deflationary nature are some of the factors influencing why institutions are becoming interested in digital asset investment: “Ninety percent of the world’s bitcoin has already been mined. Ninety percent of the world’s dollars, however, have definitely not been printed. I believe this narrative is starting to catch on more with institutional players.”
In the meantime, some institutions are still betting on the DeFi sector, with Pantera Capital recently disclosing during a webinar that DeFi will be at the center of the upcoming bull rally. But while many still believe in DeFi, most seem to think that the DeFi price hype cycle is done and that slower growth for the industry will follow, especially as Ethereum is able to scale.
While the outlook is generally positive, many are still concerned with the latest news pertaining to regulation, such as the United States’ lawsuit against BitMex and the United Kingdom Financial Conduct Authority’s ban on cryptocurrency derivatives for retail. Will more regulatory constraints follow, or is it clear sailing for Bitcoin and crypto from now on?
Crypto Whale Says Group of Altcoins Will Underperform in Next Cycle, Warns Bitcoin (BTC) Bull Run Facing Final Roadblock
A wealthy Bitcoin investor says traders hoping for a revival of interest in the previous generation of altcoins will likely be disappointed.
The pseudonymous trader Joe007 says new and “shinier” altcoins are coming out every day, fiercely competing for the same pool of money. He believes older altcoins will eventually be forgotten and left behind.
The trader says PayPal’s plan to support Bitcoin and a number of altcoins is overblown, because the company will not allow investors to move their crypto to private wallets.
“It may be a nothingburger, except for the news that they’ll allow users to pay in crypto, converting the proceeds into fiat for merchants.
OGs might remember erstwhile bullish hopes for ‘merchant adoption’ that turned into increased BTC sales by said merchants.”
When it comes to Bitcoin’s trajectory the trader says he would be completely bullish if the macro economy was in better shape.
He predicts a major economic crisis is coming, which could delay the next big Bitcoin bull run.
“I think it’s more likely than not that a major macro crisis will unfold before parabolic rally happens in BTC. This is pretty much the only reason I’m not fully invested. Other than that, I suppose BTC is good to go.”
Joe007 says the crisis will occur because governments mistakenly believe they can print their way out of the economic shock. He believes the consequences “should be catching up with us pretty soon.”
Bitcoin Remains The Best Protection Against A “Devalued Dollar”
During a time when money has become more difficult to come by for many, and the fiat monetary system is on the brink of collapse, Bitcoin might be the best chance at protecting wealth.
One CEO of a risk management firm that educates investors on how to protect capital, claims that the leading cryptocurrency by market cap “remains the best short-term macro correlation” versus a “devalued dollar.” Here’s what that could mean and how that could benefit investors in what could be a very bleak future.
Bitcoin was designed as the first-ever peer-to-peer digital version of cash, but aside from that mention, the similarities with the dollar end. Whereas traditional fiat-based cash currencies can be printed at a whim, only 21 million BTC will ever exist.
The rarity gives the crypto asset a quality like a commodity and imposes a unique impact on the normal supply and demand dynamics. All markets are driven by these dynamics, but in Bitcoin, the relatively low supply and block reward reduction caused the asset to behave very differently than others.
For one, when demand outstrips supply, prices run parabolic. And because the cryptocurrency has such a limited supply, it is directly opposed to the dollar and the potential next successor as the global reserve currency should it lose that status.
Bitcoin is quickly becoming the most likely candidate to do so and remains the “best short-term macro correlation” versus a dollar that has been in decline since the pandemic began, according to Hedgeye Risk Management CEO Keith McCullough.
#BITCOIN: remains the best short-term macro correlation vs. a Devalued Dollar pic.twitter.com/vpJliX0pEF
— Keith McCullough (@KeithMcCullough) October 23, 2020
Interestingly, McCullough sold his Bitcoin recently, only to buy it back last week ahead of the big impulse to $13,000. Data McCullough shared on Twitter shows BTC beating out gold, Brent Oil, the S&P 500, and the CRB Index as the most inversely correlated asset to the dollar.
During periods when the dollar fell in the past, Bitcoin had its most explosive bull runs.
The chart above shows the dollar’s recovery from the 2008 economic crisis caused the 2014-205 bear market in Bitcoin. After the peak was in, the crypto asset soared to its all-time high of $20,000.
That peak was also when the dollar was at its weakest in the last five years, but the DXY Dollar Currency Index shows that the greenback is nearing a similar low point, on the heels of ongoing stimulus money printing and being on the cusp of printing more.
If the DXY plunges deep, the catalyst for Bitcoin’s next bull run is here, and it is primarily due to the design choice to hard-cap the asset at just a 21 million supply. It was done to ensure its value only strengthens as the dollar weakens. And as data shows, it is doing as it was intended.
Author: Posted By: Tony Spilotro