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So Much for $6000 Resistance, Bitcoin Price Dominance Reaches Sixteen Month High

Bitcoin BTC Price 7000 2019

After a week of bullish price movement, U.S.-based investors awoke May 11 to the sight of Bitcoin up 8 percent, approaching a relative high of $7000.

Despite April’s bullish turn in the crypto markets, analysts were calling for substantial resistance in BTC surmounting $6000. In November 2018 the price of Bitcoin plummeted from the market uncertainty of the BCH contentious hard fork and general investor fatigue. Retail investors fled the crypto markets in droves, cashing out at a loss. The remaining investors were thought to pose tough resistance for Bitcoin eclipsing $6000, marking the point where traders could recoup on losses incurred in the sudden plummet.

Instead, the price of Bitcoin has smashed the $6K mark and continued steadily towards $7000. Some analysts are calling for even greater price gains ahead, with the bullish sentiment and overwhelming effect of FOMO at a near-high not seen since 2017’s epic price rally. Others are pointing to the coin in danger of being overbought, after more than doubling in price since the start of the year and generating a near-continuous upward climb since the beginning of April.

Facebook, for what it’s worth, has played a role in the renewed interest in the crypto markets. While Bitcoin had likely reached a point of being oversold, falling close to 90 percent from it’s all-time high, the social media goliath has injected confidence and renewed interest in the industry. Prior to 2019’s string of adoption for cryptocurrency, which includes Wall Street bank J.P. Morgan Chase, retail giant Rakuten and Facebook, the industry was in danger of suffering from the backlash of 2018’s ‘crypto winter.’ Developers and crypto enthusiasts may have remained bullish on the outlook for the technology, but outside investors remain wary.

Facebook’s show of confidence in digital currencies has brought the interest of both institutional and retail investors, giving crypto a base that extends beyond 2017’s constant news headline of Bitcoin as an empty “get rich quick scheme.” Investors are finding more reason to be bullish on the long-term prospect of cryptocurrency, as opposed to cashing out at the first sign of market downturn. The Facebook Coin may eventually come to compete with BTC, as some analysts have predicted, but the more likely situation is synergistic for the price of Bitcoin due to increased exposure.

Compared to the price rally of 2017, this year’s bullish turn for cryptocurrency could receive a substantial boost from the foundation of adoption that has been slowly built over the last sixteenth months. Investors are responding to the belief that Bitcoin will continue to lead cryptocurrency, with the number one coin by market capitalization also achieving an increase in market dominance. BTC’s >58 percent market dominance is at its highest point in sixteenth months, dating back to the last bull rally of December 2017.

Altcoins might be making a general resurgence on the day, but investors are clearly putting their confidence in BTC as the coin that will continue to lead throughout the rest of the year.

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SFOX: Bitcoin Looks ‘Mildly Bullish’ For May 2019

SFOX Bitcoin Price Analysis 2019

Crypto analytics firm SFOX has released their most recent report on the state of the crypto markets, finding the outlook for May to be ‘mildly’ bullish for Bitcoin.

According to the most recent report and SFOX’s Multi-Factor Market, BTC continues to look mildly bullish entering the new month. While the final week of April appeared to show some price contraction for BTC, with the currency experiencing a sudden dip following news of Tether and Bitfinex being accused of market manipulation, SFOX continues to support positive price growth for the currency.

SFOX also claims that Bitcoin has continued to hold  control over the marketplace despite the rally in coin prices for other top cryptos. BTC market dominance climbed throughout the last month, with the original cryptocurrency piling on valuation compared to other currencies. SInce the start of April, Bitcoin has grown to 6 percent in market dominance, rising from near 50 percent to 56 percent, as of writing. SFOX writes that Bitcoin movements for other top cryptos, such as Ethereum, Litecoin and Bitcoin Cash correlated with Bitcoin throughout last month, despite the latter’s growing development.

SFOX also writes that, moving forward, investor interest should turn towards developments related to a Bitcoin Exchange-Traded Fund and other indications of substantial institutional investment Overall, the change in market sentiment from SFOX has not changed in the last month, with Bitcoin continuing to register a “mildly bullish” indicator from the analytics firm–the same metric it generated last month.

However, the company reports that the primary metrics used for gauging Bitcoin price performance–price momentum, market sentiment, and continued advancement of the sector–gives a positive outlook for both the price of BTC and the overall industry of cryptocurrency. Nonetheless, SFOX’s rating for BTC has ranked as ‘mildly bullsih’ for the fourth month in a row, a condition that the firm addressed in the more recent update,

“We determine the monthly value of this index by using proprietary, quantifiable indicators to analyze three market factors: price momentum, market sentiment, and continued advancement of the sector. It is calculated using a proprietary formula that combines quantified data on search traffic, blockchain transactions, and moving averages.”

SFOX cites strong Bitcoin fundamentals for being the primary driver for its rating into the fifth month of the year, with both price momentum and institutional interest showing signs of growth and giving an overall bullish indicator for BTC. The start of April, which kicked off one of the most bullish rallies for Bitcoin valuation in over a year of trading, was largely driven by one institutional or whale purchase–at least according to data compiled by the analytics firm,

“The beginning-of-April crypto rally, despite having injected the market with renewed volatility, appears to have primarily been driven by one large buy order rather than fundamentals, and the market appears to have largely normalized again at new levels post-rally.”

Despite featuring heavily into previous years of investment, SFOX claims that FOMO has taken a passenger seat to overall industry growth, leading investors to buy cryptocurrency for reasons supporting long-term valuation and market interest.

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Bitcoin at $6000 Could Prove Pivotal for Institutional Investors

Bitcoin Institutional Investors 2019

As the crypto markets make a slight recovery following their plummet earlier in the week, all eyes turn to the continued price gains of Bitcoin. Since the start of the year, BItcoin has posted more than 50 percent in gains, with the $6000 price mark becoming the next significant hurdle for the currency. Average investors may consider the psychological value of BTC at $6000, but institutional investors and their behavior will be the true indicators of market direction moving forward in 2019.

Tom Lee, Fundstrat cryptocurrency analyst and regular Bitcoin commentator, has pegged current market sentiment for BTC at its highest point in his Bitcoin Misery Index (BMI), a value not yet seen under bearish conditions. While Lee give some hope that having an elevated BMI in the midst of a bear market may give indication that the bulls are in for a turn, he also cautions that a rising BMI has historically correlated with a sudden downturn in pricing.

His prediction may have come true last week, as the price of Bitcoin crashed from $5400 to $5000, with the majority of the crytpo markets experiencing an acute retraction in price. However, most of the sudden price movement was brought about by the actions of the New York Attorney General’s office, who issued a court filing accusing Bitfinex and Tether of market manipulation. In the report, the New York AG’s office claimed that Bitfinex was in danger of insolvency, and used $850 million worth of Tether funds to cover the losses–funds that are supposed to be backing the value of USDT 1:1 with U.S. dollars.

The market uncertainty generated by the report, in addition to confusion surrounding Bitfinex user funds, led to a flash crash in the Bitcoin and altcoin markets. While BTC has steadily recovered to $5300 throughout the weekend, investors are still unsure which was the market will move entering the fifth month of the year. More than any other metric, the $6000 mark for BTC could prove a severe litmus test for the commitment of institutional investors.

Previous reports by analytics firm Adamant Capital report that the majority of retail investors, at long-last, fled the bear market of cryptocurrency in November 2018 following the collapse of BTC pricing. Since that time, the valuation of Bitcoin has seen a drop in price volatility, owing to the decreased actions of retail traders.

At the beginning of April a series of coordinated Bitcoin buys across multiple exchanges, totaling over 20,000 BTC, kicked off the present price rally which has taken Bitcoin to highest valuation in six months. While no single trader has come forth to claim responsibility for the transactions, analysts are owing the behavior to institutional investors–rather than crypto whales. The coordinated actions of a well-capitalized trader(s), who sunk nearly $100 million in BTC, means that the market is currently operating at the behest of institutional investors. And some analysts have pointed out, these large-capital investors could be riding short-term sentiment.

Considering the bullish turn in crypto market prices ignited from a series of transactions, it could be that these traders are waiting for the $6000 mark to take action again. For one, Tom Lee’s BMI measures market sentiment for Bitcoin, with that value reaching its highest point since 2017. Retail investors are looking at Bitcoin prices favorably, for now, but that could change with the looming hurdle of BTC at $6000. BItcoin was hovering around $6000 before its crash in November 2018, meaning a number of investors could be looking to recoup on losses at that threshold.

If this proves to be the case, the institutional investors which catalyzed the most recent bullish run for BTC could look to make a killing in the short-term, playing off the change in market sentiment that could accompany steep BTC resistance at $6000.

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Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise

Bitcoin BTC Market Dominance 2019

On April 23, the crypto markets took a turn that have some questioning the outlook on altcoins. While the altcoin market has been holding its own against Bitcoin, with currencies like Binance Coin posting 300 percent gains since the start of the year, the market appears to be swaying in favor of Bitcoin.

Long time cryptocurrency investors will be familiar with the the tug-of-war price movement between Bitcoin and altcoins. At times, the entire cryptocurrency marketplace buoys on positive sentiment and increased investment. However, a shifting between the pool of capital in alts and Bitcoin is also a common occurrence. For one, investors avoid the headache generated by taxes and capital gains by trading between currencies.

But for the most part, investors have recognized that Bitcoin tends to be a more price stable currency relative to the rest of the market, while also offering the ability to appreciate during periods of positive price movement–a feature that stablecoins are unable to offer. In times of bullish market sentiment, such as what is brewing for the industry at present, investors grow fearful of missing out on massive BTC leaps, such as the epic run which took Bitcoin to $20,000 in December 2017.

Despite the development interest and growth into platform currencies such as Ethereum, EOS and TRON, the marketplace for cryptocurrency continues to flow through the original cryptocurrency. Bitcoin holds a wide margin in market capitalization over the second highest coin Ethereum, a gap that is greater than $80 billion. In addition, Bitcoin market dominance has continued to climb throughout 2019, up from 51 percent at the start of the year to over 53 percent. Today’s price action has taken BTC dominance to just under 54 percent, its highest point since September 2018.

In fact, Bitcoin dominance has largely been on the rise over the last 12 months, with the coin reaching a relative low of 35 percent dominance in May 2018. While BTC experienced a slight retraction during the market fall of last December, the coin is making a recovery that could be trending towards the >80 percent dominance the coin historically experienced prior to early-2017.

More than likely, Bitcoin will not be able to eclipse its 2017 dominance of 85 percent, given the changing landscape of cryptocurrency. While BTC is by far the most recognizable currency in the industry, with Bitcoin holding household-name status familiarity (the coin is largely synonymous with cryptocurrency in mainstream markets), altcoin projects like Ethereum and EOS have carved out a substantial amount of developer interest. With Bitcoin yet to overcome the hurdle of scalability, its price is likely to stall again at upper limits in the absence of a solution like Lightning Network.

Cryptocurrency, assuming it can gain price traction again as in 2017, is still in need of proven usability. Investors and speculators may continue to drive up the price of Bitcoin and contribute to its market share dominance, but the entire landscape of currencies have to generate scalability in order to become an accepted technology.

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Tom Lee Updates Bitcoin Misery Index, At Highest Level in Bear Market

Bitcoin Misery Index BTC Tom Lee

Popular cryptocurrency pundit and Fundstrat Global Advisors analyst Tom Lee issued an update on his “Bitcoin Misery Index” in an interview with CoinTelegraph published on April 19. According to the analyst, Bitcoin is reaching new heights by the BMI indicators, establishing new markers that have yet to occur in a bear market.

While analytics firms differ in the market indicators they follow, Fundstrat uses the cleverly titled Bitcoin MIsery index as a way of gauging investor sentiment for the leading cryptocurrency by market capitalization. Lee designed the BMI as a way to inform investors on the relative misery of Bitcoin holders based on values such as coin price and volatility.

On April 2nd, the currency hit a BMI of 89 out of a maximum score of 100 (with the upper limit being associated with positive sentiments and 0 being outright misery). According to Lee, Bitcoin did not once break the 50 during all of 2018, despite the coin entering an extended bear market. In fact, Lee reports that Bitcoin has never achieved a BMI of greater than 67 in the midst of a bear market, giving some indication into the current state of cryptocurrency prices, leading Lee to conclude,

“It means that a bull market is likely starting.”

Lee had previously reported that the Bitcoin’s massive leap in BMI was giving mixed signals, saying

“Good–> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad –> BMI >67 after peak, $BTC falls ~25% = Profit taking ST.”

However, he cautioned in the interview that elevated BMI values have traditionally correlated with a market drawback. Values above 67 have been an indicator to sell BTC, despite the positive sentiment for Bitcoin and its future outlook, as such elevations tend to be short lived. Values below 27 have been associated with buy signals, and give some indication that the currency is bottoming out and ready to swing in the other direction.

The index has not been full proof in predicting short term market movements, but has done fairly well in indicating longer trends. The last time BTC logged a score of 67 on the BMI scale was August 14, 2017. Selling at that time would have caused investors to miss out on Bitcoin’s epic bull run which took the currency to nearly $20,000, but did fall within several months of the coin turning bearish after positive price movement throughout 2017.

However, BTC’s last relative low in BMI was November 27, 2018, generating a score of 24. Following the buy signal at the time would have led investors to catch the relative bottom for Bitcoin as the currency traded near $3000–which would have result in over 80 percent profits at current price levels.

According to Lee, BTC trading at such a high level (>67) has led to a downturn in market prices “six out of six times,” with the average drop in price around 25 percent. Lee also pointed out that price retractions for Bitcoin following elevated BMI could be investors moving their profit into altcoins, as the market cycle for cryptocurrency has historically followed bullish runs for BTC followed by an elevation in alts.

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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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Analyst: Bitcoin Moving Average Points to More Gains Ahead

Bitcoin BTC 200 Day Moving Average

While the crypto markets are showing slight contraction, with Bitcoin holding trading above $5000 in the hope for renewed price action, several analysts are pointing to the 200-day moving average as a bullish indicator.

The most recent bull run for Bitcoin and the larger cryptocurrency marketplace gave BTC its best day of trading since the massive valuation increases seen during the final month of 2017. After a strong weekend of growth, BTC price shot to $4700 on April 1, and continued to gain an additional 20 percent on April 2 to take the currency above $5000. The next two days brought about a consolidation in trading, with the price of BTC fluctuating around the $5k as both bullish and bearish investors weigh in on establishing a new floor or ceiling for the coin.

However, the market price for BTC represents a substantial increase over prices experienced earlier in the year, when Bitcoin appeared to be destined for $3000 or lower. The recent price rally has given a strong indicator to analysts that the top cryptocurrency by market capitalization likely found its bottom at $3000, with the next movement representing a broader trend in how the coin will proceed into the remainder of the year.

New York-based Fundstrat Global Advisors finds that Bitcoin could be about to extend into a 200 percent price surge, making the currency worth $13,500 if current indicators hold true. According to the research firm, Bitcoin closed above its 200-day moving average on April 2nd for the first time in more than a year, mostly due to the massive price rally that initiated the price kick-off.

In a note to clients, Fundstrat explained that closing above the 200-day moving average has been a historically bullish indicator for BTC, with a win-ratio of 80 percent compared to that of 36 percent when the coin trades below,

“Based on bitcoin’s trading history, a move above the 200-day moving average for bitcoin is meaningful statistically. When bitcoin is above its 200-day moving average its win-ratio is 80% compared to a mere 36% when it is below its 200-day.”

Fundstrat continued that trading above the 200-day moving average significantly increases six-month forward returns, which average 193 percent compared to a “measly 10% when below its 200-day moving average–hence, being above the 200-day moving average is a big deal.”

While investors, both bullish and bearish, attempt to sort through what the most recent price rally means for the valuation of Bitcoin, most community members are looking at market conditions differently than they did in 2017. Compared to that time, cryptocurrency adoption has grown substantially, with major companies such as Facebook and J.P. Morgan Chase now providing a new face of confidence for the industry.

The fear that cryptocurrency may once again find itself over-extended, with coin prices vastly outweighing the actual valuation and impact of the technology has been dwindling since the start of the year. Already industry hopefuls and cryptocurrency enthusiasts are finding reasons to own crypto outside of what they can accomplish through price speculation.

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Parliament Blocks Brexit No-Deal But Bitcoin (BTC) Still in Play

Brexit Bitcoin Cryptocurrency Price Prediction 2019

On April 3, UK lawmakers were able to pass a preventative measure by one vote that would stop the possibility of No-Deal Brexit. Compared to alternative outcomes over how U.K. transition away from the European Union will occur, No-Deal has been hailed as one of the more catastrophic. The move would have entailed an immediate cease in relations between the U.K. and E.U, with no clear path forward on how the two would interact going forward–in effect producing massive economic, trade and travel uncertainty.

However, cryptocurrency analysts have pointed out that such a situation would likely have a favorable impact on the price of Bitcoin. Historically, Bitcoin and top cryptos have thrived in markets of volatile fiat. Thus far, Venezuela has been the primary testing ground for cryptocurrency adoption as an alternative currency, with digital assets also being an attractive store of value during times of high economic uncertainty.

Even with the most recent movement to prevent a No-Deal Brexit situation, Bitcoin is likely to thrive regardless of the plan of action Theresa May creates for her country by April 12th’s looming deadline. For one, the monumental event of Brexit and the economic implications it holds for the majority of Europe is likely to impact the price of both the Pound and Euro. Given the uncertainty of what is to follow a U.K. transition away from the European Union, Bitcoin could find itself in a favorable trading position relative to the Pound, with the latter at risk of entering into an inflationary period.

Bitcoin and cryptocurrency prices may have seen some retraction on the day following their monumental bull run, but the price of BTC could receive an injection of investment if Brexit negotiations continue to falter. Cryptocurrency has been pointed to as an alternative vehicle for investment in the event of another economic recession in the United States, similar to the 2008 stock market crash.

While some analysts think economic downturn could prove fortuitous to cryptocurrency investors, it also highlight the necessity of digital assets and an alternative currency market to government fiat. Cryptocurrencies provide citizens with a global means of operating outside their individual fiat, including a removal of the geopolitical ties and policy making inherent in U.S. Dollars and British Pounds.

The severity of economic collapse that could occur in the event of a contentious Brexit or another stock market collapse would be devastating and unwanted in the broader financial landscape. However, it does provide an opportunity for cryptocurrency at a time when digital assets and coin adoption are reaching their historic zenith.

The advent of Facebook Coin and the J.P. Morgan Chase JPMCoin in development send a positive message that the industry of cryptocurrency is every bit legitimate and capable of handling real world issues. Many investors and outside analysts may look at the erratic and volatile price of BTC and see a currency failing to thrive, while those within the development space would argue that adoption for the technology is following a typical curve of finding its acceptance.

Either way, the April 12th deadline for Theresa May and the U.K. legislators to decide upon the Brexit handling is looming large over both the traditional financial markets and those of cryptocurrency.

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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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