Is Bitcoin [BTC] Running Out of Bullish Arguments Due to Stock Market Rally?

Bitcoin price plunged below $9000 mark yet again. What looked like a possible break above $10,000, has turned into longer days of consolidation.
The narrative for Bitcoin [BTC] investment has taken many shapes and forms over the years. After its failure as a payment mechanism in 2016-2017, the ‘safe haven‘ narrative has become wildly popular.
Kolanovic, JP Morgans’ global head of macro quantitative and derivatives strategy, suggests strong bullish growth of the equity markets.
Gold/USD Daily Price Chart (TradingView)
Gold prices slumped below $1500, at the beginning of the week. As the stock market continues to rally, and the trade tension relaxes and easing of the global monetary policies. Hence, the short term need for a safe haven, which was a strong catalyst in the upward price movement, seems to have slowed down.
Can Halving Keep the Momentum Going?
Bitcoin [BTC] halving is due next year in May. The event will reduce the rewards for mining Bitcoin by half. This represents a massive shift in the supply of the cryptocurrency. It acts as a reliable bullish indicator as the ecosystem looks to keep the price above the break-even price for miners.
Nevertheless, the overall demand for Bitcoin has been questionable with a lack of retail interest. An analyst, KernelTrader noted on Twitter,
$btc has shown one thing, with current supply, the demand just isn’t there to maintain 5 digit prices over a sustained period
Is a small reduction in daily issuance going to suddenly change that?
Based on current demand, I’m not convinced it will
But Bitcoin is More than That
Bitcoin [BTC] competes with gold as a store of value. However, the demand for gold has been subdued by the demand for other reserve currencies like USD, Euros, and YEN. While gold bugs continued to argue against them, the market went towards short term gains.
Hence, in a world where there isn’t a strong demand for sound money, how will Bitcoin present its case? Alex Kruger tweeted,
I think only a very small (loud) minority care or will ever care about “sound money”. Goldbugs did not succeed in getting widespread support for their sound money crusade. Don’t see why Bitcoiners will succeed were gold bugs failed.
Bitcoin investors are now counting on a ‘paradigm shift’ in the economy on a large scale. A fall in the economy of large proportions sounds like the perfectly opportune moment.
While it seems far fetched at the moment, the inflation and rising debts support the cause. Economist Ray Dalio reaffirmed his belief in the fall of the FIAT system under its massive debts.
Willy Woo, a prominent on-chain crypto analyst, replied to Kruger on similar lines,
n the 6000 yr arc of gold as money, this 48 yr reign of fiat is a stop-hunt wick on century candles. Fiat happened before, it’ll happen again far after this candle closes.
Do you think the end of the FIAT era is near as well? Please share your views with us. 
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Source: CoinGape

Investment Analyst: “Bitcoin has Become the Standard of All Crypto” and a “Convenient Safe-Haven”

According to the co-founder of DataTrek Research, current global instability is making Bitcoin a popular choice of safe-haven asset. Nicolas Colas believes that the leading crypto asset’s price swings can be used as an indicator for other markets and global events.
He also argues that Bitcoin’s relative immaturity compared with traditional asset classes will mean that the volatility that has become synonymous with crypto assets looks set to continue.
Cole: Bitcoin’s Rising Dominance  Makes it the “Standard of All Crypto”
Appearing in a CNBC interview earlier today, the co-founder of financial research and analysis firm DataTrek Research states that Bitcoin is serving as a convenient vehicle for capital flight out of turbulent economies.
Nicolas Cole argues that the current global economic picture is starting to resemble that of 2008-09 when Bitcoin was created. It was born in “turmoil”, he reasons.
The researcher goes on to comment on the global nature of the crypto asset and that its convenience may make it a more attractive safe-haven than other options.
Turning his attention to rising Bitcoin dominance versus the rest of the crypto market, Cole states:
“Over the last year or year-and-a-half Bitcoin has become the standard of all crypto.”
The leading digital asset has steadily been climbing in relation to other cryptocurrencies since it reached a market dominance low in 2018. From just one-third of the total market at the start of last year, Bitcoin now represents 67 percent of the all crypto coins’ market capitalisation combined.
Bitcoin dominance has been steadily climbing in recent years.
Cole speculates as to why this might be the case:
“A lot of scammy coins have died and Bitcoin has been left standing.”
In response to a question about whether Bitcoin and other crypto assets could be used as an indicator for shifts in other markets, the research specialist replied:
“We are definitely seeing that and it really perked up around the Hong Kong protests and some of the currency flights that happened out of Hong Kong and the mainland.”
Cole claims that Bitcoin was one of the few assets that “predicted that ahead of time”:
“Nothing else was really moving but Bitcoin was.”
He also states that similar crashes to that which shocks many newcomers to the industry in early 2018 definitely will happen again and that there is no way to avoid them. The relative immaturity of the market versus other asset classes makes it unreasonable to expect the price to behave in any other way at this point:
“It’s important to understand in all cryptocurrencies… they are always going to be very volatile. It’s still a very young technology, a very young safe-haven. It’s not going to be as stable as gold or bonds.”
Related Reading: Safe Haven? Bitcoin Price Falls Below $11,000 Alongside Gold Bull Rejection
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Safe Haven? Bitcoin Price Falls Below $11,000 Alongside Gold Bull Rejection

Bitcoin price has been rallying throughout 2019, and most believe that the crypto asset is about to embark on its greatest bull run yet. As global economic tensions and uncertainty rise, so does the price of gold and its digital counterpart Bitcoin. The rise has only further driven Bitcoin’s safe-haven asset narrative, suggesting it’s the best store of value during times of economic collapse.
Before the economy can collapse, the price of both Bitcoin and gold have begun to pull back, showing a continued correlation between the two safe-haven assets. Given gold’s longevity, it’ll always be favored as an economic hedge, but will this latest drop start to cause investors to question Bitcoin’s safe haven narrative or does the continued correlation only further solidify that the narrative has legitimacy?
Continued Correlation Between Gold and Bitcoin Price Movements Only Further Cements Safe Haven Narrative
Throughout much of 2019, Bitcoin price has grown substantially, making it the best performing asset of the year thus far. In recent weeks, as a trade war brewing between the United States and China heats up, gold – the long lauded safe-haven asset investors move capital into during economic downturns – has started to rise ahead of a potential economic collapse. The crypto asset skyrocketing alongside gold has only further driven the recent narrative surrounding Bitcoin as a safe-haven asset itself, due to its hard-coded digital scarcity.
Related Reading | Prominent Investor: Mainstream Finance Is Now Considering Bitcoin As a Safe Haven Asset 
The positive sentiment and interest from institutional investors as a safe-haven asset has helped Bitcoin price climb as high as $13,800 before it was rejected. Over the last few weeks, the crypto asset has maintained much of its bullish momentum and made another attempt at retesting the former high.

Gold, on the other hand, had a bull flag breakout, which has now been rejected back down to levels below where the breakout occurred. With Bitcoin price following gold with such parity, it’s not too surprising to see that BTC value has also fallen further, and has dipped below $11,000 on some exchanges. Price action has bulls trying to push the price of the leading crypto asset back above the important psychological price level.
Gold, which rallied over $100 since the start of the month, saw a rejection that retraced roughly 50% of the gains. Since August 1, Bitcoin price rose from around $10,000 to $12,000 where it topped out, making the current price level a 50% retracement that is right in line with gold’s drop.

The two assets have been tightly correlated for some time, and the more they show correlation the stronger Bitcoin’s safe-haven asset narrative becomes. Bitcoin, along with gold, has recently joined the same conversation as other safe-haven assets such as the Japanese yen and Swiss franc, all sought for their long-term relative stability, sans Bitcoin – known for its notorious volatility.
Related Reading | Bitcoin Store of Value Narrative Turning Toward Safe Haven Asset 
The increase comes from both institutional investors warming up to Bitcoin as they consider gold, and crypto investors taking an increased interest in gold as the global economy reaches the bring of potential destruction. The increased demand has caused more crypto exchanges, such as eToro and PrimeXBT, to offer gold prominently alongside Bitcoin to crypto traders.
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‘Bitcoin and Gold are Not Even Comparable’: E.B. Tucker on the Future of Store of Wealth

While Gold vs. Bitcoin is one of the hottest debate of the recent time. Its emergence can be attributed to the fact that investors are looking for a safe haven in apprehended tumultuous times in the world economy. While the proponents of Bitcoin hail it as a boon, Gold investors have completely bashed the theory of them being comparable.
E. B. Tucker is a Senior Analyst of Strategic Investor and Strategic Trader at Casey Research, LLC. According to him, Bitcoin and Gold are “not even comparable,” he said in a recent interview,
It’s not even a question. It’s walking versus air travel.
Tuckers’ believe in gold stands is due to its profound history of being a store of value for centuries. He said,
“With Bitcoin people don’t releasie the there is only about $160-$150 billion overall while gold is an 8 trillion dollar market. You see asset managers and people have to move funds in and out of these assets. Bitcoin is not a functional space to store money.”
Also Read: Peter Schiff Bashes Bitcoin [BTC] Again As “Gold is Skyrocketing”
Moreover, he acknowledged the economic crisis that is up in the world. Furthermore, he reasserted his belief in gold based on the very economic uncertainty. He said,
“Something [Gold] that has been around for thousands of years. As we go through the reset that’s coming you’ll see what has staying power.”
Ray Dalio is an American Billionaire investor and the founder of one of the most significant hedge funds in the world, Bridgewater Associates. Reportedly, he has also increased his hedge fund position in gold drastically in Q1.
Also Read: Bitcoin Vs. Gold 2.0: Only Indians and Central Banks Are Buying Gold, Peter Schiff Accepts
The proponents of Gold investors are also comfortable with gold being a comparatively fixed asset. According to Tucker, it’s a store of wealth, and “I would not go around buying sandwiches with it.”
Gold has been bullish in the past couple of weeks as it broke above $1300. The vast market capitalization of Gold makes it an efficient store of value and little effect on the price as people like to hold on it. Nevertheless, similar sentiments can be observed with Bitcoin but, on a much smaller scale.
Do you think that Bitcoin [BTC] will emerge as a powerful uncorrelated global asset in the future? Please share your views with us. 
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Source: CoinGape

Gold Demand Rising: Investors Turn to Precious Metal as Safe Haven Asset

Recent global economic concerns and stock market volatility seem to have increased demand for gold as a safe haven asset. The price of the precious metal hit its highest level since June in the yesterday’s trading session.
Investors are turning to the historical store of value in rising numbers to protect their wealth amid geopolitical tensions. Even recent news that gold’s use in manufacturing may be about to sharply decline has not lessened appetites for increased investor diversification.
Gold Prices Increase Over 4.87% in Last Month
Since November 27, the price of gold has increased from just over $1,211 per ounce to today’s price of almost $1,270. This represents over a 4.87% increase in the price of the precious metal.
In a note to clients and investors, the MKS PAMP Group – a precious metals products and services provider based in a Switzerland – stated:
“Gold has been tracking steadily higher through December… On the low side, there appears to be good support at $1,265 and we expect plenty of buying interest around the 200-day moving average at $1,251.”
According to a report in Reuters, much of this increased buying pressure is being driven by geopolitical tensions threatening to disrupt global markets, along with uncertainty in stock prices.
A report in the Wall Street Journal states that the Dow Jones Industrial Average, S&P5600 and Nasdaq Composite were down 1.1%, 1%, and 0.9% respectively after a brief rebound on Wednesday. This brief upswing comes after almost a month of downside for stocks generally.
Sugandha Sachdeva, the vice president of metals, energy, and currency research at Religare Broking Ltd., spoke of the increased demand for gold:
“Gold prices are primarily getting support on the back of safe-haven buying due to concerns about the health of the global economy and heightened volatility in risk assets.”
Demand for Gold Not Mirrored in Bitcoin Market
The price of gold is increasing despite recent reports of Chinese scientists managing to create a substitute for the historical store of value that serves many of the same industrial purposes as the metal yet does not appear similar enough for counterfeiting. Based on the theory of value offered by both gold bugs and many supporters Bitcoin Cash, the gold price should have decreased in line with its suddenly diminishing utility. Evidently, this has not been the case.
It appears that the properties of a known, controlled supply and an inability to reproduce gold are sufficient for it to be deemed an adequate store of value for global investors. It therefore seems odd that Bitcoin, which represents an even sounder form of money than the yellow metal, has not seen a similar increase in demand.
With growing evidence to suggest that utility is not indeed a necessary prerequisite for value, it seems only a matter of time before Bitcoin will be able to provide an uncorrelated safe haven for those wishing to protect their wealth against geopolitical tensions and stock market uncertainty. After all, the most popular digital asset by market capitalisation, hashing power, and overall adoption is even more scarce than gold, whilst offering greater functionality in terms of acquiring, storing, and transferring.
Related Reading: Crypto Economist Claims Bitcoin is the “Medicine You Need”

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