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Bitcoin (BTC) Can Surmount $8 Trillion Gold, Argues Crypto Billionaire

Digital Gold

Mike Novogratz, a long-time Bitcoin (BTC) bull, sat down with Morgan Creek’s Anthony “Pomp” Pompliano for the renowned Off The Chain podcast. Reports indicate that in the interview, Novogratz, a Wall Streeter turned fervent crypto proponent, purportedly stated that while BTC is still valued of 1% of gold’s $7 to $8 trillion valuation, the crypto will reach there eventually.

He argued that this is a journey that could occur over a 20-year period, rather than a one or two year period. Although such a time frame may turn off those with low time preference, the former Goldman Sachs partner noted that this could “easily happen.” Funnily enough, EOS’ Brendan Blumer also drew attention to this specific period too, explaining in a recent tweet that Bitcoin will make a move on gold’s de-facto go-to store of value status within the next two decades.

Anyhow, this interestingly isn’t the first time Novogratz has touted this thought process. He once stated that if the cryptocurrency market was the periodic table, BTC would be the only one with an atomic number of 79, much like how only gold is gold.

Bitcoin To Surpass Fiat?

While Bitcoin has effectively been proven to have better properties than gold, giving it precedent to become the go-to store of value, the pressing question remains about the asset’s ability to surmount government-issued currencies. Some argue that this is nonsensical, drawing attention to the lack of scalability, minimal adoption, and other shortcomings.

But minds like Tim Draper and John McAfee, on the other hand, have been a tad more cheery. In a recent Youtube interview with a crypto content creator, the former-mentioned venture capitalist argued that fiat currencies are “poor,” citing their controllability, lack of transparency, and subjectivity to political and social whims on the day-to-day.

And as the American investor argues that most of the brightest developers, engineers, and academics are working on digital assets — Blockchain Capital’s Spencer Bogart would agree — Draper notes that there could be a capital flight from fiat to crypto over time. He elaborates:

“My belief is that over some period of time, the cryptocurrencies will eclipse the fiat currencies. That would be a 1,000 times higher than what we have now.”

Draper isn’t the only one touting this thought process. Anti-establishment figure Max Keiser once told Bitcoinist that the flagship cryptocurrency is much like a monetary black hole, and will “gobble up all fiat” over time as the ongoing (in Keiser’s eyes) financial crisis continues to wreak havoc on society.

But will these lofty dreams really come to fruition? To be honest, it seems a bit hard to believe when the market is depressed.

 Photo by Clem Onojeghuo on Unsplash

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Bitcoin (BTC) trading volume clarity actually brings ETFs nearer

Research by Bitwise Asset Management rocked the crypto industry this week, after it concluded that 95% of reported bitcoin trading volume is fake.

However, that might not be such a bad thing as it may encourage the industry to clean up its act and traders to shun dishonest exchanges.

San Francisco-based Bitwise is a respected player in the
space having brought the first crypto index fund to market and its Bitwise 10 Index,
which tracks large cap crypto, is widely followed.

In January it announced that it had submitted a proposal to
the US Securities and Exchange Commission (SEC) for a physically backed bitcoin
exchange traded fund, and as a part of ongoing discussion with the regulator, has
just shared with it its findings on the true state of crypto trading markets.

Bitwise analysed trading at 81 exchanges and found that reported
trading volume at 71 of the total was suspect, according to a Wall Street
Journal report.

Looking at four days in March using a software program
specially developed for the task, Bitwise concluded that of the $6 billion reported
daily volume on market-leading data site coinmarketcap.com, only a tiny fraction
was in fact real – $273 million.

Its findings are in line with previous analysis from other research
firms. Crypto Integrity puts the fake trade figure at 88% while TIE estimates 75%
as suspect.

Suspicious bitcoin (BTC) trading patterns

Comparing trading patterns at regulated exchanges such as
Coinbase, Bitflyer and Gemini with unregulated venues, there were some marked
differences.

For instance, trading at regulated exchanges conformed to
patterns that saw marked dips in trading when traders in the most active
markets by time zone could be expected to be asleep. Unregulated exchanges tended
not to have such troughs (and peaks).

Other suspicious patterns concerned the spreads between buy
and sell prices, which tended to be much wider on unregulated exchanges, in
some case as much as $300 – that can be taken to be an indication of the low
liquidity and high volatility.

There is also a noticeable lack of smaller trades on the
unregulated exchanges and trading in round numbers, which would tend to indicate
a human behind the execution, tends to be lacking too.

Significantly, there was also indication of massive wash
trading. This is a technique that inflates trading volume by making simultaneous
buy and sell orders that cancel each other out but nevertheless appear to add
to trading volume.

The Wall Street Journal contacted one unregulated exchange,
Coinbene, which, in common with its unregulated peers, reports trading volumes
far larger than those at regulated exchanges, for a response to the Bitwise
findings.

Bitwise’s report showed that across the days it studied,
CoinBene reported daily volume of $480 million compared to $27 million on
Coinbase, the popular US exchange. CoinBene has not responded.

Dishonest volume
reporting – what about manipulation?

Website traffic site Alexa ranks CoinBene 55,097th
and Coinbase 1,500th ,which makes the trading figures at the former even
more inexplicable.

It has long been posited that the lack of market
surveillance of exchanges means that they are wide open to manipulation.

Given the charge that unregulated exchanges are themselves not
averse to inflating their trading volumes, it makes it more likely that they
are not going to be too bothered about other illegitimate trading practices that
are banned in other asset classes.

Insider trading, cornering a market and spoof trading, where
orders are made but not executed to give the impression of high buying interest
in a particular market only for the same trader to open orders in the opposite
direction that are executed in order to benefit from the price rise encouraged
by the spoof trades.

Exchanges have an interest in exaggerating their daily
volume figures so their businesses are more attractive to new cryptoassets looking
for listings. Some exchanges also accept a fee for listing coins.

Sifting fact from
fiction is a good thing

The Bitwise research has been interpreted negatively by some
as yet another reason why the crypto Wild West will struggle to generate
substantial institutional interest.

However, the sifting of fact from fiction is surely a
welcome development that brings transparency to the marketplace.

In its ETF proposal Bitwise says it will be taking price
data from regulated exchanges and its research was aimed at communicating the
validity of this approach to the regulator.

Instead of reporting the Bitwise research in doom-laden
tones as CNBC, MarketWatch and Barron’s have done, it should be greeted as a welcome
sign that at least some in the industry are capable of a serious attempt at
self-regulation, or are at least willing to call out those who are happy to
take traders (and listees) for a ride.

Coinmarketcap needs to clean its data

And given that reports of inflated trading volumes are far
from new it also begs the question what is coinmarketcap doing to clean its
data?

Why is it still reporting trading volumes for the likes of CoinBene
which are clearly inaccurate if not downright fraudulent?

Go over to data site cryptocompare.com and take a look at
the daily trading volume for BTC – it is $1.17 billion at the time of writing.
On coinmarketcap it is supposedly $8 billion.

Most market participants quote the coinmarketcap data, which
last week reached a near 12-month high of $11 billion for bitcoin daily trading
volume.

On one level the headline figure doesn’t matter so much and it’s
the percentage change that should be watched. Maybe, but for a serious asset
class having such widely varying data points for the same markets shows the
problem faced by regulators, and those seeking approval for crypto ETFs.

Vote with our feet and shun the charlatans

Here’s a solution – only take data from regulated exchanges.

And traders might want to do likewise and start shunning the
exchanges that are making things up. If you can’t trust them not to wash trade
on their own exchanges it is probably not a very good idea to trust them with
your money.

Bitwise has done the SEC and CFTC a favour. If they hadn’t
already come to the conclusion themselves – namely to exclude all exchange data
and take prices only from regulated exchanges – then hopefully Bitwise has
helped them to see a clearer way forward to approving an ETF.

The regulators should take the Bitwise approach as a model –
base prices only on those that prevail on regulated exchanges.

They should also treat the unregulated jokers as beyond the
pale. Of course not all unregulated exchanges are run by less-than-honest
management teams, but it will encourage the honest ones to seek regulation to
avoid being tarred by the same brush of dishonesty. This will have the overall
effect of making trading fairer and safer while speeding the pproval of crypto ETFs.

And come on coinmarketcap – start making an effort to report
more accurate data.

Why not ask exchanges to explain the strange trading
patterns picked up by Bitwise’s software?

Maybe tell them that unless they put in place market
surveillance or independent reporting their data will not be referenced? The
prospect of their exchange being removed from coinmarketcap might concentrate
minds of exchange managements and incentivise the worst offenders to change
their ways.

Bitcoin futures – forget about the CBOE

Lastly, if we are to scrub out 95% of trades as made up garbage,
it starts to make the cash-settled bitcoin futures markets look much healthier
than otherwise assumed.

In that light, perhaps the Chicago Board of Exchange (CBOE)  has been a bit hasty in deciding to freeze new
contracts – another piece of news that has been seen as throwing shade on
bitcoin prospects.

But while CBOE has been reporting waning volumes its much
larger competitor, the Chicago Mercantile Exchange (CME), has seen record
trading, with 18,000 contracts traded on 19 February, representing an all-time
high. Each CME contract represents 5 BTC while the CBOE contract is 1 BTC.

So, put that another way, CME dollar volume was $360 million
on 19 February. That compares very favourably with the $273 million daily
volume estimated by Bitwise, averaged over four days in March.

The CME CF Bitcoin Reference Rate and Bitcoin Real Time
Index take their data from four exchanges: Bitstamp, Coinbase, itBit and Kraken.
The CME even made public the methodology that underpinned constituent exchange
selection, which is still available here.

CBOE bitcoin futures, however, rely on just one exchange,
using Gemini’s daily auction price, which some would say is inferior to the CME’s
composite data approach.

CME published all the research that went into its selection
of exchanges for price data while CBOE’s has divulged no published research.

The much higher volumes in bitcoin futures indicate that
institutions and trading firms prefer the more robust CME product. CBOE should
perhaps have put a bit more work into their offering.

But the main reason we shouldn’t take CBOE shuttering its
product too seriously is because it is cash-settled (as is the CME’s) so it doesn’t
in fact impact the price of bitcoin because the contract is not delivered with bitcoin.

The only cash-settled bitcoin future to date was announced by
CoinFLEX and will trade in the Asian market.

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Crypto Community Roars In Response to China’s Scathing Ranking of Bitcoin

Bitcoin Hammered In CCID Ranking

The China Electronic Information Industry Development (CCID) seems to be back at it again with (yet another) crypto ranking. If it wasn’t bad enough already, it apparently got even worse in the March installment, as the group bashed this industry’s beloved Bitcoin (BTC) with a hammer.

china crypto rankings, bitcoin

Bitcoin plunged from 13th to 15th, as it was smashed in the applicability department. On the other side of the proverbial coin, EOS, Tron, and Ethereum got a nice boost, as their creativity and basic-tech points gave them a hefty tailwind. In the middle lay projects like NEO, Steem, Lisk, Stellar, among others, whose ratings were neither spectacular nor harrowing.

Crypto Community Up In Arms

While some TRX, EOS, and ETH maximalists (of which there are many) were in love with the ratings, some were skeptical. The Block’s Mike Dudas joked that the Chinese government and FlipsideCrypto must be using the same algorithm, drawing attention to a debacle in which the latter entity bashed BTC and praised the smart contracting platforms mentioned above.

Joseph Young, a leading crypto journalist, opined in a recent CCN article that the aforementioned ranking should be a mere reference at best, rather than a “definitive ranking of blockchains.” He adds that the CCID ranking scheme naturally gives more brownie points to DApp chains, as its criteria focused on technology, applicability, and creativity.

As Bitcoin is the world’s first blockchain, with a limited premise and raison d’etre, it’s standings in the aforementioned ranking scheme would be rather low. But, that’s not to say that BTC doesn’t have some semblance of a use case in the real world. Far from. In fact, an argument has been made that the cryptocurrency is the world’s best digital asset, and the only one that is truly needed. Even if it isn’t the end all and be all of blockchain use cases, it would be hard to doubt the traction Bitcoin has gained.

Just look to institutions for some evidence. The few mainstream firms that have looked into this space have focused their efforts on Bitcoin and Ethereum, more the first rather than the latter though. Fidelity Investments, for one, launched its custodial offering and trade execution platform for Bitcoin first, as it weighs the addition of other digital assets.

Bakkt, too, will center its efforts around the flagship crypto. While the ICE-backed platform has been delayed many a time, it has been made clear that a physically-delivered BTC futures vehicle will be the Atlanta-based project’s first venture, as Bitcoin would get the most demand and love from its expansive clientele. It’s a similar sight around the rest of the industry.

Sure, CCID’s rankings may be entirely fair for the list of standards it is enlisting, but it would be hard to deny that BTC is still booming. And at the end of the day, who’s really listening to the Chinese agency’s quips about the cryptocurrency space anyway? The topic is effectively banned in the nation…


Photo by FuYong Hua on Unsplash

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Heads Up, Bitcoin (BTC) Could Plunge If History Rhymes

“Awfully Similar”: Trader Wary Bitcoin Could Plummet

Although analysts have been surprisingly cheery over recent days, some have kept a level head. Amarok, a crypto-centric chartist, recently issued a warning to his investors via Twitter about the short-term prospects of Bitcoin.

He drew attention to BTC’s price action from mid-December to mid-January. During that time, the leading cryptocurrency traded within a $3,564 to $4,241 Fibonacci range. While this isn’t anything notable in and of itself, the asset failed to break above its 0.786 Fibonacci ($4,096) prior to falling dramatically — all on somewhat declining trading activity.

While the current chart is far from identical with zero impurities, BTC recently failed to surge past its 0.786 Fibonacci ($4,072 — see the similarities?). Again, this all has been underscored by somewhat waning trading activity.

Amarok seems to be implying that BTC could soon trade near its 0.0 Fibonacci at $3,640, putting the cryptocurrency below the ever-important $3,900 level of support.

He isn’t the only one keeping his head on a swivel, especially as many are sure that Bitcoin establishing fresh lows is out of the realm of possibility. Crypto Krillin recently explained that there’s a high likelihood that the “moment of truth” for BTC is very near.

To back his idea that the stars are aligning, Krillin looks to a long-term declining trendline drawn from the top of 2017’s bubble, a long-term triangle that squeezed BTC throughout 2018, and a recent ascending pattern spotted by Galaxy. As so many lines are converging, Krillin remarks that there are two possible scenarios: BTC breaks through the Ichimoku Cloud it sits under to $5,500, or it falls to $3,000 as sell-side pressure disallows it from breaking the aforementioned lines.

Buoyant, Cheery, Optimistic

Although the cards are surely on the table for Bitcoin to revisit its 12-month lows, others have been a tad more cheery. BitMEX’s Arthur Hayes, for instance, recently published his latest issue of the profanity-ridden, joke-rife “Trader Digest,” which painted a bullish picture for this nascent market.

Hayes, infamous for calling for Bitcoin hitting $50,000 at one point (no, make that multiple points) in early-2018, explained that BTC is likely to return to its former glory in the coming year. The former Wall Street trader, who was slammed by the 2008 Great Recession, gave his thoughts on Bitcoin’s road to $10k.

As reported by this outlet previously, the BitMEX chief executive, who recently proclaimed that “winter ain’t over yet,” noted that $10,000 by year’s end isn’t unlikely.

He wrote that while the markets will be “intense,” Bitcoin will claw its way back to $10,000 — a “very significant psychological barrier.” Hayes even calls upon CNBC’s Melissa Lee, who has pressured the industry CEO to give predictions multiple times, in a bid to cement the veracity of his statement.

But will it happen? Maybe…


Photo by Jakub Kriz on Unsplash

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Once Breakout Is Confirmed, Bitcoin (BTC) Could Rally To $5,500

Bitcoin Could Surge By 35%

Hopium has seemingly started to return to the crypto market en-masse. Sure, Bitcoin (BTC) and other digital assets are trading sideways, but the sentiiment displayed by cryptocurrency investors is buoyant.

GalaxyBTC, a leading analyst and self-proclaimed “accumulation machine,” recently revealed why there’s a likelihood that BTC could easily break to $5,500 in the near future.

He drew attention to a study from Thomas Bulkowski, a leading stock market trader. Galaxy states that more than 60% of ascending triangle patterns that are experiencing declining volume break upward. Each of these breakouts yield an average rally of 35%.

As Bitcoin is currently undergoing this pattern to a tee, with there being a series of lower lows, a number of bearish tests, and slightly declining volumes, Galaxy explained that BTC could hit $5,500 from here.

In response to Galaxy’s simple analysis, commenters expressed optimism. Anton Pagi wrote that it looks as though Bitcoin has entered an “A&E bottom with a handle” pattern, setting a strong precedent that a long-term floor may be in.

It is important to point out, however, that the average pullback if an asset fails to break convincingly above an ascending triangle is 19%, meaning that $3,300 would be the low-end target.

$5,000 May Very Well Be On The Table

Galaxy isn’t the first to have looked to $5,000 for BTC to breach in its next bullish breakout. In a number of recent tweets, pseudonymous British analyst Filb Filb has drawn attention to the aforementioned price point, citing a number of indicators that could push the cryptocurrency to that auspicious level.

As reported by Ethereum World News previously, the ratio between long and short positions on Bitfinex’s BTC market could be signalling an impending surge. Filb explained that when Bitfinex’s BTC long-short (L/S) ratio rose above 1.5, returned to one or below, and then moved back above 1.25 over the past year, the asset moved by higher by approximately 25% to 50%. On the other hand, when the L/S ratio failed to break 1.25 after a move under one, BTC entered “very bearish territory,” resulting in fresh lows for crypto.

Currently, the L/S ratio recently surpassed 1.5, collapsed to one, and could potentially rebound to or well past 1.25. And with that, the trader remarked that Bitcoin is “likely to break higher based on this metric alone,” drawing a hypothetical 25% rally, which would bring BTC up to $5,000, and potentially into a longer-term run.

In another bit of analysis, Filb touched on the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero and the Chaikin Money Flow (CMF), which is marking growing levels of buy-side volume. He noted that this could help propel BTC higher in the coming months.

 Photo by Dmitry Moraine on Unsplash

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BitMEX CEO Arthur Hayes Turns Bullish! BTC at $10,000 “Is My Number” For 2019, He Predicts

It seems that crypto bears are losing ground and the strong 2018 bearish trend is giving way to a period of relative stability prior to an upcoming bull run. Arthur Hayes, CEO of BitMEX expressed this in his “Crypto Trader Digest” of March 22, 2019

Arthur Hayes is known in the crypto verse for his
controversial opinions, which on many occasions have gone against the trends
and sentiment of the community. However, time has proven him right, showing
that as an investor, he knows when to be long or short without letting his
feelings affect his judgment.

The Worst Times Are Over… BTC is [Slowly] Heading To Green Days

After predicting a drop in the BTC to sub-5k figures, Mr. Hayes seems to have joined those who consider that Crypto Winter is over. In the publication, Hayes explains that although it is not yet possible to speak of a bull run, there are signs that point to a small growth by the end of 2019.

“All is not lost; nothing goes up or down in a straight line. 2019 will be boring, but green shoots will appear towards year end.”

The market has already surpassed the critical levels of 2018. This behavior, coupled with the growing enthusiasm around altcoin trading may result in a stimulus that protects the BTC from retesting 2018 supports changing trends for the coming months.

Bitcoin (BTC) Price in BitMEX during 2019. courtesy: Tradingview

Hayes is optimistic. He explains that because of the same
market sentiment, it may be difficult to quickly get out of this “boring”
period of stability. However, once we surpass the 10k mark, 20k seems to be an
easier goal to achieve:

“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. It’s a nice round sexy number. $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.

Melissa Lee peep this. $10,000 is my number, and I’m stickin’ to it.”


Altcoin Season is Here?

Another interesting comment relates to altcoins. Hayes shares the opinion of other analysts like Mati Greenspan, who are confident that the market is reacting positively to trading. Despite some sarcasm, Hayes seems to be positive that the alt season is here:

Do not despair. CRipple is still worth more than zero. And Justin Sun’s new age religion TRON, paired with the Pope CZ, tells us there are those still willing to eat shitcoins with a smile.

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Crypto Bulls On Alert As Bitcoin (BTC) Flip-Flops Around $4,000

Bitcoin Could Turn Bearish Under $3,900

Ever since Bitcoin (BTC) breached $4,000 a few days back, the market has entered a lull. Cryptocurrencies have held within a tight range, failing to show signs of either a bullish breakout of bearish reversal. Yet, some analysts are starting to fear a short-term collapse, as BTC flip-flops around $4,000 with indecision, a sign to some that a sell-off is in the works.

Luke Martin, better known as Venture Coinist, remarked that if Bitcoin heads higher in medium-term time frames, like the four-hour or one-day, but closes below $3,930, he would start being “bearish short-term.”

Another popular trader going by the moniker “DonAlt” expressed a similar sentiment. He explained that $3,900 is an essential level to watch from his point of view, adding that if it falls under this support, he would expect “$3,500 or even lower.”

Indeed, from a technical point of view, the aforementioned price point seems to have some semblance of importance. Prior to Bitcoin’s most recent move above $4,000, BTC was having trouble breaking past $3,900, holding in that region for nearly around 12 hours. And in a recent rapid sell-off, $3,900 became the level to watch, as the leading cryptocurrency was seemingly on the verge of (yet another) collapse.

Technical indicators around this level have seemingly some level of importance too. CryptoChartsJoe recently stated on Twitter that $3,900 is where the 50 six-hour moving average and uptrend line is currently situated.

While bulls seem to have the upper hand as it stands, some are fearful that BTC breaking under $3,900 is on the horizon, as bulls fail to show signs that $4,400, let alone $4,200 is on the table.

Bullish Outlook On Crypto

Then again, some have kept their heads up high.

Satoshi Flipper, a well-known industry commentator, remarked that over the past few months, BTC has touched a single resistance line ($4,050) six times. Each time it has done this though, it receded quickly, falling by a number of percentage points to return to a mean. But with the cryptocurrency currently slated to be on track for a seventh touch, Satoshi hinted that there’s a chance it could break through, pushing Bitcoin into a rally.

Sentiment-wise, crypto’s prospects are looking bright too. Ryan Selkis, the chief executive of cryptocurrency analytics provider Messari, remarked that he would be “extremely surprised” if Bitcoin hasn’t found a floor in this bear market. Selkis, a hard-line believer that BTC is best used as a digital store of value, explains that for long-term bulls, waiting to catch the final capitulation event is nonsensical, as the five-year expected value of crypto assets is “25 to 50 times” current prices.

And last but not least, fundamentals. Arguably, fundamentals, or industry developments rather, is the best tailwinds that cryptocurrencies have at the moment. Over recent weeks, Samsung, Facebook, Kakao, among countless other institutions have announced forays into this ecosystem. These moves could spark global adoption, subsequently bolstering the value of BTC through simple network effects.

Title Image Courtesy of Andre Francois Mckenzie Via Unsplash

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Report: Bitmain to Launch 200,000 Crypto Mining Rigs in China

Bitmain Bitcoin Mining China 2019

According to a report published by CoinDesk on Mazar. 21, cryptocurrency mining conglomerate Bitmain is looking to launch up to 200,000 new mining rigs in China, at a conservatively estimated cost of $80 million.

The move will allow Bitmain to take advantage of the relatively cheap hydroelectric power in China during the summer of 2019, with CoinDesk also reporting that the expensive deployment of equipment may end up being more cost-effective for the company than outright selling their inventory. CoinDesk also reports that the decision by CoinDesk is positive for the industry and miners, sending a signal of a “broader shift in the market, with miners preparing to invest again following last year’s contraction in capacity.”

Bitmain, which holds the distinction of being the largest manufacturer of cryptocurrency mining equipment by market share, can take advantage of the excess hydropower in China’s southwestern province for cheap mining costs relative to the broader market. According to sources in the region familiar with the situation, Bitmain has “already started discussions and making deals with farms to host its equipment so that it can be fully prepared.”

The report also includes information that Bitmain will be primarily deploying its newer model mining rigs, the AntMiner S11 and S15, which retail for around $500 and $1000, respectively, per unit. It is also unclear according to the sources which proof-of-work cryptocurrency Bitmain will be targeting to mine for. As CoinDesk points out, even at $80 million in projected costs to deploy the equipment in the new region, the move represents a “non-negotiable opportunity cost” considering Bitmain’s primary revenue source is from mining equipment sales as opposed to actual mining.

However, the company is caught in a difficult position due to the ongoing bear market that has extended into the beginning of 2019. While the company could attempt to selloff the bulk of their 200,000 intended units for deployment, the marginal profits that could be made from mining in the presence of cheaper electricity may provide the better sunk cost. CoinDesk calculates that, using conservative estimates, Bitmain may be able to secure a monthly profit of $7.7 million.

CoinDesk also reports that Bitmain’s scaling up in mining operations could send a strong signal to the broader market, particularly as cryptocurrency mining and coins prices continue to linger at relative lows. Estimated reports found that over 600,000 Bitcoin miners shut down operation in 2018 due to the falling con prices no longer proving profitable relative to mining costs, leading to the market being flooded with second-hand rigs being sold at a discount.

Despite the decline, Bitmain and other miners deploying to China in the upcoming wet season to take advantage of excess hydroelectric power could bring about a sharp increase in Bitcoin’s hash rate, with some estimates putting it at 70 quintillion hashes per second (EH/s), well above the all time network high of 60 EH/s.

Renewed mining interest in conjunction with building crypto adoption that has already started in 2019 could lead to a reversal in both coin prices and increased competition to capitalize on the market while prices are still depressed. With increased mining competition for Bitcoin, the selling price for newly minted coins should also rise, which could have a broader effect on BTC pricing.

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Bitcoin At $400,000 Isn’t A “Fool’s Paradise,” Claims Crypto Analyst

Analyst Calls For Bitcoin To Breach $100,000 Or Even $400,000 In Next Rally

It’s been over 15 months since Bitcoin breached $20,000. And since then, mainstream media, cynics, and representatives of traditional institutions have done their utmost to put down cryptocurrencies.But, industry commentators have kept their heads high, as they await BTC’s next move higher.

Naeem Aslam, a crypto-friendly analyst at Think Markets, recently divulged his thoughts on the current state of the digital asset market. Unsurprisingly, he was rather bullish.

In a March 19th blog post on Think Markets’ website, Aslam noted that while the tussle for BTC holding above $4,000 has often been won by bears, “long-term investors” shouldn’t “worry about these short-term levels.” Echoing comments from Alec Ziupsnys, he explained that “catching the extreme low (bottom)” is “extremely arduous,” Aslam goes on to explain that more likely than not, the so-called “crypto winter” is coming to an end.

He writes that the next bull rally in the cryptocurrency asset class will likely push BTC a minimum of five times higher than its previous all-time high, meaning his low-end target is $100,000. His high-end target, on the other hand, is $400,000, as Aslam explains that this would mean history would have repeated itself (2017’s Bitcoin run was from $1,000 to $20,000 — a 20x return). It was elaborated:

This number is not a fool’s paradise. $400,000 is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run.

Not The Only Optimist

While BTC breaching $400,000 is likely hard to imagine for most traders, many analysts expect the cryptocurrency market to embark on another parabolic rally… eventually. In a comment issued last July, The Crypto Dog, a “STEM Ph.D. drop-out” turned crypto trader, explained that Bitcoin still holds the “same economic properties” that allowed it to go to the moon at least four times now.

Thus, he determined, who’s to say that a rally to “astronomical levels” won’t happen again? In a later tweet, he remarked that greed is a “huge potential factor” that could be behind future bull markets, adding that there’s “more than one path to hyperbitcoinization.”
Hyperbitcoinization, for those who missed the memo, is a term often used by Bitcoin crusaders to describe BTC consuming fiat currencies.

Crypto Dog is far from the first to have touted this theory. Crypto personality $carface recently noted that it would be unfair to claim that there’s a high likelihood that Bitcoin cannot undergo a “boom and bust” cycle again. Backing his prediction, he cites a quote from Sir John Templeton, in which the economist said that the four most dangerous words in investing are “this time it’s different.” This reference is, of course, rebutting cynics’ claim that Bitcoin won’t rally to new all-time highs… eventually.

$carface writes that investors should “roll the dice” and buy Bitcoin, as BTC could appreciate to $102,000 to $336,000 if it follows historical trends of rallying 5.1 to 16.89 times higher than its previous peak.

Title Image Courtesy of Tim Mossholder 

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Bitfinex’s Bitcoin Markets Could Be Signalling a BTC Rally To $5,000

Bitcoin “Likely” To Break Higher

Over recent weeks, the cryptocurrency market has seemingly began to embark on a slow and steady recovery. While the asset class took a slight tumble on Thursday, with Bitcoin (BTC) falling by 1.33%, cryptocurrencies are still nearing their year-to-date highs. The simple fact has led some crypto analysts to begin touting bullish sentiment, as the technical and fundamentals tides have seemingly begun to turn in BTC’s favor.

Prominent trader Filb Filb joined in with his own optimism recently, issuing a number of charts accentuating his/her belief that digital assets, especially Bitcoin, are poised for a rally.

Filb explained that from a 12-month perspective, when Bitfinex’s BTC long-short (L/S) ratio rose above 1.5, returned to one or below, and then moved back above 1.25, Bitcoin moved by higher by approximately 25% to 50%. On the other hand, when the L/S ratio failed to break 1.25 after a move under one, BTC entered “very bearish territory,” resulting in fresh lows for crypto.

Currently, however, the L/S ratio has reached 1.5, fallen to one, and could potentially rebound to or past 1.25. And with that, Filb remarked that Bitcoin is “likely to break higher based on this metric alone,” drawing a hypothetical trading range of a 25% rally, which would bring BTC up to $5,000 for the first time in mid-November.

$5,000 BTC?

This isn’t the analyst’s first time mentioning $5,000, believe it or not. As reported by Ethereum World News previously, Filb remarked that a number of technical measures have started to turn in Bitcoin’s favor. Filb specifically drew attention to the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero. The analyst also touched on Chaikin Money Flow (CMF), which measures buying and selling pressure, which has begun to signal that there is underlying buying pressure in BTC markets.

He adds that over recent days, Bitcoin has begun to test a “macro 14-month resistance” downtrend, and could break into higher lows if it surpasses that level, which would then turn into support. A move above this level, which would push BTC into a “huge void” of volume, meaning that rallies and drawdowns could be accentuated with little-to-zero volume, could indicate that Bitcoin could hit $5,000 by May.

In a recent interview with BlockTV, Filb also expressed hope in regards to the crypto market’s short-term prospects. He explained that why he expects for BTC to “certainly rally” in the near future is due to the Bitcoin block reward reduction, adding that the emission reduction will make miners less incentivized to sell, therefore granting this market with a reason to move higher.

Moreover, he drew attention to the Lightning Network, especially in regards to the recent exposure that Jack Dorsey has given the scaling solution. Filb notes that this is a strong fundamental factor that could push Bitcoin higher.

Title Image Courtesy of Icons8 Team Via Unsplash

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