It scores highly among the possible options to counteract inflation.
Published on October 21, 2020
Famed Wall Street investor and billionaire Paul Tudor Jones said that he likes Bitcoin “even more than I did then,” referring to his initial investment announced in May 2020.
Jones praised Bitcoin on CNBC’s Squawk Box morning show, revealing that he holds a “small single-digit investment” in the asset.
His investment thesis remains unchanged — Bitcoin is an excellent hedge against inflation, which is expected to ramp up in the next few years due to central bank intervention. Unprecedented amounts of quantitative easing and balance sheet expansion, in addition to more aggressive commitment to inflation by the Fed, resulted in heightened inflation expectations.
Bitcoin, according to Jones, is one of the best “inflation trades” when compared to traditional options like gold, Treasury Inflation-Protected securities, copper and other more complex strategies.
“Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it,” Jones added. “It’s like investing with Steve Jobs and Apple or investing in Google early.”
Paul Tudor Jones is an industry veteran, first rising to fame for correctly predicting the 1987 stock market crash, known as Black Monday. Following his earlier statements, the Bitcoin community buzzed with excitement due to the endorsement. Some predicted that Jones would soon become the largest Bitcoin holder.
Some see Jones’s endorsement as a potential icebreaker for more institutional investors, who may feel more confident investing in the asset class after familiar names have already made the leap.
HODLers: Most Crypto Investors Hold Majority In Bitcoin Over Altcoins, Survey Finds
As Bitcoin price recorded a new yearly high, most of the participants in a recent survey shared that they hold the majority of their holdings in Bitcoin rather than altcoins.
Bitcoin traders are basking in profit as October turns out to be a good month for BTC.
Crypto commentator and analyst Josh Rager took to Twitter to ask crypto users how much of their portfolio is allocated to Bitcoin. Voters had to choose from one of four options that best describe their portfolio.
The result of the poll was quite interesting. As much as 35% of traders revealed they dedicated less than 10% of their portfolio to the most valuable cryptocurrency. This category is bullish on altcoins and had the highest number of votes in the poll.
A total of 23.2% maintained that Bitcoin holds a significant percentage in their portfolio. According to the results, these people dedicate between 51% to 89% of their portfolio to Bitcoin.
The third-highest category consists of Bitcoin maximalists who are very bullish on Bitcoin. These voters, which made up 22% of the poll result, said that 90 to 100% of their portfolio is allocated to the king coin.
Lastly, the fourth category, consisting of 18% of voters, said they allocate between 11 to 50% to BTC.
In other words, almost 46% of the respondents shared that they hold over half of their portfolio in Bitcoin rather than altcoins.
Elsewhere, altcoins have been experiencing terrible nightmares since last month. An earlier report suggested that Bitcoin’s fresh surge is crushing both altcoins’ prices and market dominance.
At the time of writing, Bitcoin has blasted through important resistance levels, reaching a fresh 2020 high of $13,217 on Binance. The cryptocurrency now holds a market dominance of about 61%.
Although the speculation around is the current surge is caused by money flowing from altcoins into Bitcoin, a fresh analysis debunked has debunked that. As CryptoPotato reported, Bitcoin’s rising value is likely caused by new money entering the crypto market.
Moreover, the latest surge seemed to be primed largely by the news that PayPal, the world’s largest online payment processor, will start allowing users to buy, sell, and hold Bitcoin and other cryptocurrencies.
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Bitcoin Surpasses USD 11,800, Ethereum, Altcoins Slide
Bitcoin value remained in a constructive zone above the 11,550 resistance. BTC prolonged its rise above the USD 11,800 resistance and it even spiked above USD 11,900. The worth is presently (13:00 UTC) up 3% and it’d quickly try an upside break above the USD 12,000 resistance.
Conversely, most main altcoins trimmed positive aspects and moved into the purple zone, together with ethereum, XRP, litecoin, EOS, XLM, LINK, BNB, TRX, bitcoin money, and ADA. ETH/USD didn’t settle above USD 380 and declined sharply beneath USD 375. XRP/USD can also be declining beneath USD 0.245 and it’d proceed to maneuver down.
Complete market capitalization
Previously two classes, bitcoin price principally traded with a bullish bias above the USD 11,550 stage. BTC prolonged its rise and broke the USD 11,800 resistance. The subsequent main resistance is close to the USD 12,000 stage, above which the bulls would possibly purpose for a take a look at of USD 12,000. An intermediate resistance is close to the USD 12,200 stage.
If there’s a draw back correction, the USD 11,650 stage is an preliminary help. The primary help is now forming close to the USD 11,550 stage (the latest breakout zone).
Ethereum price topped close to the USD 385 stage in the present day and began a contemporary decline. ETH broke the USD 375 help and it even spiked beneath USD 372. The subsequent key help is close to the USD 365 stage, beneath which the bears would possibly purpose for a take a look at of USD 360.
On the upside, the USD 375 stage would possibly as soon as once more act as a resistance for the bulls. The subsequent main resistance continues to be close to USD 380.
Bitcoin cash price didn’t surpass the USD 250 resistance. Consequently, there was a bearish response beneath the USD 245 help. BCH is now approaching the USD 240 help stage. Any additional losses might open the doorways for a take a look at of USD 232. On the upside, the USD 250 stage stays a serious hurdle for the bulls.
Chainlink (LINK) struggled to clear the USD 10.80 resistance and reacted to the draw back. The worth is down 4% and it broke the USD 10.50 help stage. It’s approaching the USD 10.25 help stage, beneath which the subsequent cease for the bears may very well be USD 10.00. On the upside, the USD 10.50 and USD 10.60 ranges are short-term boundaries.
XRP price is down 2% and it’s now buying and selling beneath the USD 0.245 help. An preliminary help is close to the USD 0.242 stage. The primary breakdown help is at USD 0.240, beneath which the value would possibly take a look at USD 0.232. On the upside, the USD 0.245 stage would possibly act as a pivot zone.
Previously few hours, many altcoins declined over 5%, together with AR, NEAR, OCEAN, UMA, NXM, THETA, BAND, COMP, UNI, AAVE, SNX, XTZ, CEL, REN, and ANY. Out of those, AR and NEAR are down 10%. DASH is one of the best performers in the present day.
General, bitcoin value is gaining momentum above the USD 11,800 resistance. BTC would possibly quickly take a look at the USD 12,000 resistance. If it fails to proceed increased, there may very well be a pointy bearish response to USD 11,550.
Bitcoin’s Rally to $12,000 Driven by Spot Buyers; Futures Remain Short-Biased
Bitcoin is currently approaching the critical $12,000 resistance level that analysts and investors have been closely watching throughout the past few days and weeks.
Its rally up to this level has come about throughout the past 24-hours, without any significant catalyst. One interesting trend that has coincided with this upswing is a selloff amongst altcoins.
Although major altcoins like Ethereum typically rise and fall alongside Bitcoin, the benchmark cryptocurrency has been rising at altcoins’ expense over the past day.
While breaking down what has driven this Bitcoin rally, one analyst noted in a recent tweet that spot buying pressure has been backing this move higher, while the futures market generally remains short-biased on BTC.
This is a positive sign for the cryptocurrency’s near-term outlook. It indicates that retail investors are driving this movement, which will provide far greater stability than a margin-driven rally.
Over the past few months, Bitcoin has been caught within a macro consolidation phase between $10,000 and $12,400.
Recently, bulls have been taking control of its price action and slowly pushing it up towards the upper boundary of this trading range, which is just a few percent above where it is currently trading at.
If it continues extending this trend and breaks $12,400, it could enter price discovery mode and rally significantly higher in the days and weeks ahead.
Altcoins are currently bleeding as BTC rises, with Ethereum breaking back below its key $380 level overnight while most other altcoins also plunge.
It remains unclear whether this is a fluke or the start of a new trend where BTC recaptures its dominance over the aggregated crypto market.
While speaking about what drove the recent Bitcoin rally, one analyst observed that it appears to have been driven by spot buying pressure.
He explained that those trading BTC’s perpetual swaps remain largely short-biased.
“Not exactly a ton of perp aggression by buyers up here. This seems mostly spot drive. Perps are still being used to bet mostly against,” he said while pointing to the below chart.
Image Courtesy of Cantering Clark. Source: BTCUSD on TradingView.
If Bitcoin shatters $12,000 and sets fresh yearly highs, it could soon enter a price discovery mode that allows its rally to turn parabolic.
Bitcoin Breaks USD 12,400, Altcoins Start Fresh Increase
Bitcoin price settled above the USD 12,000 level and it even surged above the USD 12,400 level to set a new monthly high. The price is currently (13:10 UTC) trading near USD 12,400, with many supports such as USD 12,150 and USD 12,050.
After BTC’s rally, most major altcoins started increasing too, including ethereum, XRP, litecoin, EOS, XLM, LINK, BNB, TRX, bitcoin cash, and ADA. ETH/USD is recovering, but it is still struggling to surpass the USD 380 and USD 382 resistance levels. XRP/USD settled above USD 0.245 and it could soon attempt to clear the USD 0.250 resistance.
Total market capitalization
In the past few hours, a few altcoins climbed over 5%, including AMPL, RSR, OKB, WAVES, MANA, LTC, KNC, EGLD and STX. Out of these, AMPL is gaining pace and it is trading above USD 1.00.
Author: Posted by George Harrison