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Adamant Capital: Bitcoin in ‘Accumulation Phase’ Before Next Bull Run

Bitcoin Price Prediction 2019

A new report by Adamant Capital concludes that the bear market for Bitcoin might be nearing an end, with the currency entering an accumulation phase before the next big bull run.

Compared to the crypto winter of 2018, during which investors were forced to shed BTC or suffer losses as the currency fell from $20,000 to a relative low of $3000, the current market has traders much more optimistic about on the price outlook. Investors are now accumulating Bitcoin, putting pressure on bears who may be selling just ahead of another big price rally.

Tuur Demeester and Michiel Lescrauwaet, co-authors of the report, said that the current price point for Bitcoin should be appealing to investors,

“Now, at 75% below its 2017 all-time high, we believe the current bear market represents an exceptional opportunity for value investors.”

In what Adamant Capital refers to as the ‘accumulation phase’ for Bitcoin, the analytics firm expects BTC to trade in a range of $3000 and $6500, as bears unload their coins to willing bulls who are looking to lock in a discounted price for the number one cryptocurrency by market capitalization.

The report also concluded that retail investors took a bath in November 2018, capitulating any previously made gains–or submitting to significant losses–in a capitulation event that saw the price of Bitcoin fall 48 percent. While some of the cryptocurrency price fall can be attributed to the market uncertainty of Bitcoin Cash’s hash war, investors were also fatigued from nearly 12 months of bear market prices. The end result is a glut of investors looking to re-enter the market at a favorable condition, especially if they sold out at Bitcoin’s relative price low during last November.

Adamant Capital has made a point of tracking unrealized Profit and Loss and indicator of market performance, and reports that the most recent price rally has had a substantial impact on that metric,

“The recent price rally from $4,000 to over $5,000 markedly improved HODLer’s Unrealized P&L improving our reported sentiment value from capitulation to hope,”

The report, in particular, looks at the claim that retail investors (individual investors as opposed to professional traders or institutions) have largely left the market following the last year of losses. Such a situation would indicate that the well of bearish sellers for Bitcoin may be smaller than previously thought. Adamant Capital points to Google Trends data that indicates “apathy and disinterest” on behalf of retail investors, with searches for Bitcoin dropping to as low as March 2017 values.

Adamant also points to gradual decline in Bitcoin price volatility over the last several months, a factor that has historically been attributed to the actions of retail investors,

“High Bitcoin volatility can be a proxy for the involvement of trigger-happy retail speculators, whereas low volatility tends to coincide with phases of consolidation, apathy, and accumulation.”

With finicky retail investors gone, long-term holders have come to make up the majority of the market, a group that will be looking to accumulate more BTC at current prices and avoid succumbing to the bearish sellers.

The combination of price anticipation and investor makeup has led Adamant to conclude that Bitcoin, at its current price point, is back in “undervalued territory.”

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Report: Bitcoin Wallet Activity Spiked Week Before Bull Run

Bitcoin Wallet Activity Price Rally 2019

Despite analysts scrambling to find the reason behind Bitcoin’s most recent price rally, during which the currency increased 25 percent in the span of days, one firm is pointing to wallet activity as a sign of increased adoption.

According to market intelligence firm Flipside Crypto, digital wallet activity for Bitcoin and other cryptocurrencies saw a spike in activity over the previous two weeks. The wallet activity gives some indication in an uptick of user activity and industry adoption, even before the most recent bullish turn in valuation.

Historically, around 40 to 50 percent of circulating Bitcoin has been held in wallets that are inactive for greater than a month, likely due to the bulk of investors keeping their coins on exchanges. However, Flipside Crypto reports that figure falling to only 10 percent since March 15, showing a significant increase in user activity over the last several weeks.

“If you are a crypto optimist, that’s good news,” Eric Stone, co-founder of Flipside, told Bloomberg. “There are more people warming up to the idea of buying Bitcoin.”

Stone also reports that the wallet activity and price movement for the most recent rally has been less attributable to the activity of whales. Instead, the sharp increase in wallet activity from accounts that have typically been dormant indicates a broad-based “waking up” of many smaller investors. Cryptocurrency investors, likely those who have remained inactive or price-stricken during 2018’s ongoing bear market, are now taking greater interest in market price movement.

While the previous 12 months may be referred to as a “crypto winter” for the marketplace, this week’s exponential price rally and data surrounding wallet activity contributes to a more holistically driven valuation, as opposed to the action of whales. Stone points out that the plummeting price of BTC in November 2018, when Bitcoin fell 40 percent, was the result of a few whale investors shifting positions. More price movement has given a much different indication, with Flipside Chief Executive Officer Dave Balter telling Bloomberg,

“We see this move much more valid than a few whale moves in October. This probably signifies a change in perception or confidence in this asset class.”

Some analysts have pointed to a massive BTC buy spread across several exchanges as being the primary catalyst for Bitcoin’s price movement. Community members have interpreted this as indication of institutional investors at long last entering the market of cryptocurrency, likely ahead of increased mainstream adoption building throughout 2019.

With the possibility of a Facebook Coin looming over the industry’s head, it is clear that cryptocurrency has turned a corner in terms of developing real world interest. While crypto, overall, may still represent a niche digital asset class, the boom that could follow major developments such as Facebook are too enticing for large capital investors to pass up.

Brian Kelly, speaking yesterday with CNBC, called for Bitcoin to continue to $6000 off the most recent price rally, and predicted that the market as a whole had found its bottom as coin prices have continued to rise throughout most of 2019.

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Analyst: Brexit No-Deal Will Favor Price of Bitcoin (BTC)

Brexit No-Deal Bitcoin BTC Price

Theresa May and the U.K. parliament are 9 days away from deciding upon the fate of the country in regards to Brexit, a decision that could have widespread and impactful results for the price of Bitcoin.

According to Jefferson Nunn, analyst and contributing author to Forbes, a no-deal Brexit decision will ultimately have the largest effect on Bitcoin. In terms of how the U.K. can handle its withdrawal from the European Union, a no-deal decision would result in the immediate withdrawal of the United Kingdom from the EU, with no negotiations in place to determine what that relationship would be like moving forward. Such a decision would lead to a massive disconnect in border flow between the UK and its European counterparts, leading to a disruption in trade and the ease of which people are currently able to travel.

If a no-deal goes through, Nunn predicts that the U.K. will enter a hyper-inflationary market, conditions that cryptocurrency has typically thrived under (look no further than the adoption of crypto in Venezuela and Argentina). Nunn continues,

“Unemployment will rise, the already strained UK central bank will be forced to “print cash” and Bitcoin will rise against the Pound.”

In addition to raising the value of Bitcoin against the British pound, Nunn finds it likely that cryptocurrency will find a favorable exchange rate against the Euro. The U.K. ranks 5th in terms of world economies, contributing a significant portion to the economy of the European Union. Brexit would cause a dramatic shift in the economic output of the EU, including the interchange between member countries such as Germany with the United Kingdom going forward, thereby contributing to the Euro’s decline against BTC.

Nunn also cites the contribution of the most recent bull run for Bitcoin and cryptocurrency, which is now caught inexorably with the proceedings of Brexit. Fears over the state of both the British Pound and E.U. Euro have likely contributed to the sudden investment in BTC. In a bizarre twist of fate, cryptocurrency may prove to be more price stable in the coming months than the market uncertainty that is being imposed over the Brexit ordeal. Decisions made in the coming weeks will contribute further to the price change of Bitcoin, however the groundwork built for BTC pricing throughout 2019 is already significantly different than that of the previous year.

December 2017 brought about a bullish sentiment and exponential price increase for cryptocurrency that was driven primarily by FOMO and hyper-inflated investor expectation. To put simply: cryptocurrency was not ready for the flood of capital that entered the market at the end of 2017, with adoption lagging behind valuation. Predictably, market prices tumbled in the following months, leading many analysts to refer to 2018 as the “crypto winter.”

The first quarter of this year has painted a different story for cryptocurrency, with figureheads and companies pushing adoption and industry growth ahead of price speculation. Brexit could force Bitcoin prices higher as both individuals and firms alike look to the usability of cryptocurrency as a more attractive means of currency than the uncertainty of their fiat alternatives.

At the very least, the next several weeks should prove to be even more exciting for cryptocurrency, and set the stage for potential BTC breakout adoption if the Pound and Euro falter.

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Messari CEO: ‘Wealth Transfer’ Will Take Bitcoin (BTC) to $50,000

Bitcoin BTC Price Prediction Messari

As the crypto markets enter their second straight day of bullish price movement, with Bitcoin trading above $5000 for the first time since last year, a number of analysts are weighing in with their prediction for the future of crypto asset value.

Ryan Selkis, founder and CEO of the cryptocurrency research firm Messari believes that Bitcoin will continue to climb in the coming years, gaining over 1,000% to reach a valuation of $50,000. Specifically, Selkis cites the mass “wealth transfer” that is going to occur in the coming years, as the baby boomer generation gives way to millenials, both in terms of capital and wealth inheritance.

Selkis referred to this mass movement of wealth in a tweet published on Mar. 28, just days before Bitcoin took off in price. According to Selkis, millenials stand to inherit $30 trillion in wealth from their baby boomer generation parents, which presents a vast amount of capital that could influence cryptocurrency,

“There’s a $30 trillion “great wealth transfer” expected in the next 20+ years (millennials inheriting money from their parents).

If 1% of that goes into cryptocurrencies, crypto will be a multi-trillion dollar asset class.

That’s the conservative case for $50k+ bitcoin.”

Messari’s CEO refers to the $50,000 prediction for BTC as “conservative,” explaining that his numbers only assume a 1 percent investment by millennials in the money they will be inheriting from their parents. Selkis also assumes that millennial generations will have far greater interest for investing in digital assets and cryptocurrency, a stat-line that has been largely confirmed over the last year through various polling organizations.

Millennials, on average, are both more interested in cryptocurrency and invested in the industry of digital assets. While cryptocurrency has its appeal to a younger generation–more upside in terms of reward, despite the increased investment risk of highly volatile assets–education and lack of understanding tends to be a sticking point for the industry as a whole. The majority of polled investors, moreso in older generations, report lacking a basic understanding of Bitcoin, cryptocurrency and digital assets–a feature that could be hampering the investment potential more-so than just age differences.

Mati Greenspan, senior market analyst for cryptocurrency trading and social platform eToro, agreed with Selkis’s prediction that wealth transfer would benefit the market for Bitcoin,

“The current market cap of bitcoin is around $73 billion. If an additional $300 billion were to flow into bitcoin than it could easily increase the total market cap by 10 to 20 times the incoming capital.”

However, some analysts continue to remain skeptical on the state of cryptocurrency and Bitcoin, despite the growing adoption and valuation throughout 2019. While the entry of Facebook and J.P. Morgan Chase into cryptocurrency, via stablecoins, has been hailed as a positive movement for the industry, others see it as a way of circumventing established currencies. Bitcoin and other top cryptos may continue to see their market share decline if Facebook and mainstream companies develop their own coin projects, thereby giving their massive user bases little reason to invest in or use BTC.

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Bitcoin-Backed Square Named Yahoo Finance Company of the Year

Bitcoin (BTC), Cryptocurrency–While no one will argue the fact that 2018 has been a horrible year for cryptocurrency valuation, with the majority of altcoins down 90 percent or more since the start of the year, Bitcoin-supported payment portal Square has been named a top finance company of 2018.

Yahoo Finance, in its end of the year roundup, named Square their 2018 Company of the Year. Square, which has been around since 2009 but only began offering BTC trading in November 2017, has been a supporter of cryptocurrency despite the down market. While fiat makes up the majority use of the payment platform, Co-Founder and CEO Jack Dorsey has managed to exert an influence over the company which has extended to digital assets.

According to the release by Yahoo Finance, the company’s stock has demonstrated just how powerful of a player Square has become in the fintech scene,

Square’s investors know it. The stock was up 72% through Dec. 14. Before the larger market pullback that began in October, shares were up 170% through the end of September.

The acquisitions Square has made over the last several years, leading the company’s offering and technology to outpace the growing competition of a digital payment processors, has led to Square being vaulted into the top echelon of a companies typically selected by Yahoo Finance for their end of the year reward,

Square, with $26 billion in market cap and 2,300 employees, might look like a surprising choice compared to our picks in the past few years, all much larger companies: Facebook in 2015, Nvidia in 2016, and Amazon last year. But Square is rapidly making itself a force to be reckoned with in financial services. In November, the company forecast 60% growth for 2018 and more than $3.2 billion in revenue.

With the help of Dorsey, who is also co-founder and CEO of Twitter, Square has managed to grow its Bitcoin division into a wing of the company that is seeing increased revenue. In November, Square quarterly reports announced that Q3 BTC revenue was $43 million, up $37 million from the previous quarter. While that figure represents a small drop in the bucket for the billion-dollar company, it also positions Square to be a market leader in the event of broader Bitcoin and cryptocurrency adoption.

Jack Dorsey, who has been outspoken in his support for Bitcoin, has been one of the most high profile tech industry figures to overlap into the world of cryptocurrency. In March, Dorsey made waves in the crypto space and beyond when he gave his opinion that Bitcoin could become the internet’s–and world’s–single currency over the next ten years,

“The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,”

Considering the position that Dorsey holds with both Square and Twitter, it could provide an interesting proposition for Bitcoin and cryptocurrency over the coming year. With the bombshell rumor out of Facebook that the social media giant is developing a stablecoin for its WhatsApp messaging platform, Twitter could find itself in position to follow suit in order to keep up with the competition. Square, given its high profile development and app-focused usability, could provide a conduit for Twitter to make the leap into cryptocurrency.

At the very least, Dorsey’s presence with Square and his influence in Twitter is a positive focus for cryptocurrency investors looking to 2019 for further industry growth.

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Bitcoin (BTC) Leads Google Trends Most Commonly Asked in 2018

Bitcoin (BTC), Cryptocurrency–While market prices continue to look shaky for cryptocurrency and the broader altcoin market, Bitcoin managed to score a minor win on the day. According to the analytics trending tool published by Google, “What is Bitcoin?” was the most searched phrase for the question-asking category for 2018. Both United States and United Kingdom Google users searched for information about the number one cryptocurrency by market capitalization more than any other topic, giving an indication that–while some would proclaim the technology a bubble in the process of bursting–there still remains interest in the field of cryptocurrency.

Rounding out the top five included “What is racketeering,” “What is DACA,” “What is a government shutdown” and “What is Good Friday.” Bitcoin’s top position for Google’s rankings comes at a time when the currency is experiencing its relative lowest point for the year. Last week EWN reported on the state of the crypto markets in 2018, with BTC experiencing its worst monthly loss in November since August 2011. The price fall for Bitcoin comes at the tail end of an already bearish year for cryptocurrency, seeing the entire market capitalization tumble from over $800 billion to its present value of $110 billion.

Bitcoin, in particular, has ceded its share of losses, dropping from close to $20,000 at the end of December 2017 to today’s trading price of $3500. While some analysts have pointed to indicators that BTC and the crypto markets may be entering oversold territory, with a potential bounce coming for investors, others have pointed to a much dire future for crypto into next year.

News of search interest for the cryptocurrency is a welcomed sight for investors amidst the price fall, with many claiming a fundamental lack of understanding by the general population for being a catalyst to Bitcoin’s recent price drop. As opposed to learning about the technology and the potential for cryptocurrency, investors through money at BTC, altcoins and ICOs with abandon throughout 2017’s bull run, leading to the bloated market prices to start the year that would inevitably lead to the crash.

With the conversation shifting from the daily price movement of Bitcoin and the money to be made from investing in the digital asset, industry enthusiasts are hoping to garner more focus on the development and adoption for the technology. Last year saw “blockchain” and “cryptocurrency” become to buzz words, similar to the social media and app-development frenzy in the early part of this decade, which fueled unrealistic expectations for the industry. Bitcoin, as a technology, was unprepared to handle the influx of consumers, which led to the service becoming nearly unusable with skyrocketing transaction fees and unacceptable confirmation times. Detractors of the digital asset quickly latched onto the flaws of the currency under high network stress, leading to a negative shift in sentiment for the viability of cryptocurrency and contributing to the growing investment uncertainty.

With the market turned at the start of the year, it did so with equal ferocity to the bull run which ended 2017. Now, entering the final month of 2018, the majority of currencies are sitting on over 90 percent losses since their last all time high, with most financial analysts calling for further crypto blood and claiming that the bubble has finally popped.

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Bloomberg Opinion Bitcoin Price Prediction: More FUD for 2019

Bitcoin (BTC), Cryptocurrency–While the crypto markets see a slight reversal in pricing to round out the final week of December, with Bitcoin creeping closer to $3700 after hitting a relative low earlier in the week, predictions on the outlook of the industry for 2019 continue to sour investors.

Last week, as reported by EWN, billionaire crypto investor Mike Novogratz lamented the state of the cryptocurrency markets throughout 2018, claiming in a conference call that,

“It’s been a horrible bear market in tokens. There’s plenty of reason to be depressed.”

However, Novogratz qualified his statement with some positive spin, reminding investors that coin prices may be down but adoption and general acceptance for crypto and blockchain has been on the rise throughout the year. Despite his crypto investment firm Galaxy Digital Holdings posting over $130 million in losses through 2018’s bear cycle, Novogratz remains confident in cryptocurrency extending into 2019 and beyond,

“I fundamentally think you’re going to see big adaption in 2019, 2020. Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”

While Novogratz, a long time Bitcoin bull and supporter for cryptocurrency, remains hopeful for a market recovery into next year, traditional financial outlets have fond more reason to be cynical. In a year end, opinion-based review for 2019 predictions, Bloomberg opinion column has struck a chord in crypto investors by publishing more of the FUD that has become part and parcel among mainstream publications.

Rounding out the top of the list for “egregious predictions of 2018,” the opinion piece by Barry Ritholtz lambasts Bitcoin and the litany of assumptions that were made at the start of the year in the midst of a bull run,

“The spectrum of predictions ran from the sublime to the criminally negligent to the utterly insane. It got so bad that a website was set up to track all of the Bitcoin prophesies.”

The article continues on to call out Fundstrat’s Tom Lee and the aforementioned Mike Novogratz for their predictions throughout the year,

“Fundstrat’s Tom Lee’s 2018 forecast for $25,000 Bitcoin was reduced last month to $15,000 by year-end. (The cryptocurrency recently traded at about $3,650.) As foolish as that sounds, it was modest compared to the rest of the asylum. Michael Novogratz forecast that ‘$40,000 was possible by the end of 2018.’”

While Bitcoin continues to trade close to a relative low for the year, with the digital asset slipping from near $20,000 in December 2017 to $3600 as of writing, the schadenfreude for BTC and cryptocurrency in general is mounting. From a combination of FOMO and “I told you so,” traditional finance analysts are lining up to cast stones at the number one cryptocurrency by market cap, despite failing to predict a similarly bullish run for the coin just a year ago.

Investors, still reeling from the losses of 2018’s ongoing bear cycle, have little to be excited for as we enter the final month of the year. However, they have managed to weather the storm of Bitcoin hate and claims of BTC “being dead,” which has led to the creation of websites tracking the obituaries for the coin. Time will tell if the current crop of predictions for the demise of Bitcoin will be added to the heap.

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Goldman Sachs CFO Calls Trading Desk Rumors “Fake News”

Bitcoin (BTC), Cryptocurrency–Despite reports surrounding a potential cryptocurrency trading desk by Wall Street goliath Goldman Sachs–and its subsequent closure–the company has since come out to debunk any such reports.

First reported by CNBC on September 6, Goldman Sachs Chief Financial Officer (CFO) Martin Chavez has explained that reports related to the company abandoning its intended cryptocurrency trading desk have been “fake news,” and described the entire scenario as a premature understanding. Speaking at the TechCrunch Disrupt Conference in San Francisco, the CFO of Goldman Sachs put the situation rather bluntly,

“I never thought I would hear myself use this term but I really have to describe that news as fake news.”

While Bloomberg had originally reported at the end of last year that Goldman Sachs was working on the implementation of a cryptocurrency trading desk to be launched in 2018, a story out of Business Insider earlier this week claimed that the project had been shuttered. The Business Insider report quoted unnamed sources as the basis of the information, giving evidence that the Wall Street firm had decided to do away with the previously hyped up trading desk. In addition, the story cited the unclear regulatory environment of cryptocurrency–a feature that many have been alluding to as a barrier to institutional investors–was the primary reason for Goldman shelving the project, at least in the interim.

Chavez has since come forth to say that the excitement over a Goldman Sachs crypto trading desk got ahead of the facts, with the industry not yet being at the point of maturation necessary for such a venture,
“When we talked about exploring digital assets […] it was going to be exploration that would be evolving over time. Maybe someone who was thinking about our activities here got very excited that we would be making markets as principal and physical Bitcoin, and as they got into it they realized part of the evolution but its not here yet.”

Chavez also went on to say that the bank has no intention to proceed with physical Bitcoin trading at this point in time, claiming that a more reliable custody solution was needed before they would consider the option. However, the company does still provide liquidity for BTC future contracts through CBOE and CME, a feature that some have seen as a prelude for the industry finally obtaining approval by the U.S. Securities & Exchange Commission for Bitcoin Exchange-Traded Funds. Expanding upon the idea of Goldman Sachs venturing into Bitcoin directly, Chavez called the idea “tremendously interesting,” but also went on to state that it would be challenging to implement in the current market form,

“Physical bitcoin is something tremendously interesting, and tremendously challenging. From the perspective of custody, we don’t yet see an institutional-grade custodial solution for Bitcoin, we’re interested in having that exist and it’s a long road.”

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Satis Group Price Analysis: Bitcoin and Monero Biggest Gainers Over 10 Years

Bitcoin (BTC), Monero (XMR)–According to a report by the initial coin offering (ICO) advisory and research firm Satis Group, both Monero and Bitcoin look to be the biggest winners in terms of price gain over the next decade. Satis, which publishes outlooks for both ICOs and current cryptocurrencies, as well as advising on  the forces that will shape the industry, has released a new forecast for the next ten years that puts XMR as the greatest price gainer while predicting XRP to be in for a historic crash.

According to the report, Monero is predicted to have a price appreciation of 38391 percent over the next ten years, bringing the price to a whopping $39,584 (up from its current value of $108 as of writing). The report also predicts Monero having a strong performance over the next year, predicting a four-digit percentage increase in price to bring the valuation of XMR to $1476.

In addition to being bullish on Monero, the new report also finds more profit to be made through Bitcoin, claiming that the number one currency by market capitalization will eclipse it’s previous all time high of $20,000 at some point in the next year to bring the total value of BTC to $32,914. The five and ten year outlook for Bitcoin is equally positive, with the coin poised to hit $96,378 and $143,900, respectively, over the coming decade. Ethereum and Litecoin were also listed in the report with positive gains, however Satis Group predicts neither coin to perform anywhere near as well as Monero and Bitcoin. Litecoin has an expected 10-year price outlook of $225, failing to eclipse December 2017’s all time high, while Ethereum’s outlook is pegged at $588–again failing to retest previous highs.

Interestingly, Satis Group finds XRP to have an overwhelmingly negative outlook, predicting the coin to reach a historic low in investment price. The former product of blockchain startup Ripple and current third overall cryptocurrency by market cap is predicted to be worth a penny in five-year’s time, and less than that over the full decade forecast. XRP, which once traded for as high as $3.84 per coin during the January’s bull run, is expected to continue a slow decline worth up to 90 percent of the current value, a price point that would result in a 99.7 percent decline since the last all time high.

The reasoning behind such a meteoric rise for Monero stems from the belief by Satis Group that anonymity-providing currencies will form the dominant share of the market rather than the current projection towards Dapps. Satis Group finds penetration into offshore deposit markets as the natural extension for the growth of cryptocurrency, making the value of a currency like XMR–which rebuffs censorship and can hide user transaction information–more attractive if the industry shifts towards providing greater privacy services.

Bitcoin also received a positive review from Satis Group, with the company highlighting that the high marketability and brand appeal of the coin would continue to climb with the growing penetration of cryptocurrency into society. Taken from the report,

“Despite a lack of appeal during retail frenzies, we continue to believe that BTC and its network effect will dominate end-market share within Currencies and the overall cryptoasset market, driven by: 1) increasing liquidity and purchasing avenues, 2) increasing brand recognition, 3) its position as the default base-pair within the crypto markets, 4) declining relative volatility, 5) relative lack of attack vectors, 6) network capacity alleviation through the maturity of layer-2 solutions, and 7) an increasingly high attack and overthrow cost.”

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Bitcoin (BTC) Price Dips Below $6800 Following ETF Delay

Bitcoin (BTC)–Bitcoin suffered another valuation blow today as the bears forced the price back below $6800. While the coin was experiencing a mild price rally after falling from $8200 to under $7000, news of the U.S. Securities and Exchange Commission (SEC) delaying their decision on a Bitcoin ETF until September 30th.

Most investors and cryptocurrency enthusiasts were hopeful that the SEC would deliver a favorable ruling on the creation of a Bitcoin Exchange Traded Fund, despite last month’s denail of a Winklevoss ETF. However, today news broke that the government body had decided to further put off a ruling on investment firm VanEck’s bid for creating an ETF, sending the market back into a turmoil. Despite the failure of the Winklevoss ETF proposal last month, New York based investment management firm was the frontrunner in the creation of a SEC-approved fund. Now, that ruling seems to be caught in limbo as the regulatory agency continues to punt away the issue to a later date.

Speaking in an earlier interview with CoinDesk, VanEck director of digital asset strategy Gabor Gurbacs was candid about his firm’s chance to create the first cryptocurrency ETF,

“Unfortunately, I don’t know the answer. I do know that we have addressed market structure issues and this is a chance for regulators to bring bitcoin under existing frameworks and protect investors.”

In addition, Gurbacs affirmed his company’s intention to create a product that serves the needs of institutional investors, as opposed to the retail market that dominates the investing side of cryptocurrency,

“Today, the bitcoin markets are still 90-95 percent retail and institutions are looking for a way to get into these markets so the physical ETF we have tailored to institutions.”

While some have questioned the emphasis and need for government regulated funds, VanEck is confident that such a move will bring improvement to the industry of cryptocurrency. Wall Street and institutional investors have thus far shied away from diving into the cryptomarkets, due to the volatility and lack of exchange security, in addition to murky legislation surrounding the investment vehicle. ETFs provide more certainty to these firms, in addition to revealing a pathway for more security and best practices in relation to handling the emerging crypto asset class.

Given the severe price movement following the SEC delay, Bitcoin investors across the globe are hanging on news of ETF approval. In July, Bitmex co-founder Arthur Hayes boldly predicted that the price of BTC would reach $50,000 by year’s end in the event of an approved ETF. The anticipation has caused erratic pricing in the market, with underlying technology and adoption having little to do with value swings at present.

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