Kategorie: Bitcoin News

• Bitcoin slumped to lows of $33,064 and could tank further given the negative sentiment seeping through the markets.

• Robert Kiyosaki says he’d buy more BTC if prices sink to retest the $20,000 region.

“Rich Dad, Poor Dad” author Robert Kiyosaki says he’s ready to add to his Bitcoin holdings if further declines in the benchmark crypto’s value take it to prices around $20,000.

The bestselling author, who is one of the prominent crypto proponents, said this on Monday as bulls battled to keep prices above $34,000.

But Bitcoin has slipped to lows of $33,600 in intraday trades, the sharp sell-off coming off the back of a brutal week where the flagship cryptocurrency’s value tanked below the key support levels of $40,000 and $37,300.

Kiyosaki says a fresh downturn that intensifies the losses will be “great news.” According to him, this would offer a buy-the-dip opportunity he will seek to exploit.

“Your profits are made when you buy, not when you sell,” he offered in his ‘Words of Wisdom’ tweet.

The US businessman and founder of Rich Global LLC revealed he bought Bitcoin twice in the past- when the cryptocurrency traded around $6,000 and then at $9,000.

“I will buy more if and when BC tests $20k,” he added, striking an optimistic outlook for the market.

The investor has previously explained his distrust of the legacy financial system, predicting a crash for the US dollar.

WOW:Words of Wisdom. “Your profits are made when you buy, not when you sell.” Price of Bitcoin crashing. Great news. I bought BC at $6K and 9K. I will buy more if and when BC tests $20k. Time to get richer is coming. Silver best bargain today. Silver still 50% below high.

— therealkiyosaki (@theRealKiyosaki) January 24, 2022

In May 2020, Kiyosaki predicted that BTC price would hit $75,000, with the target missed when prices topped out at around $69,000.

Bitcoin price is down over 50% since that ATH in November, with the volatility seeing some say the crypto bubble has burst. However, according to Digital Chamber founder Perianne Boring, “volatility is not necessarily a bad thing.”

Speaking to CNBC’s “Squawk Box” she added:

“It’s normal to see 30-50% volatility in the crypto markets in any given month. The markets are behaving just as expected.”

In her view, Bitcoin price will likely rebound higher given the cryptocurrency’s fundamentals “are as strong as ever.“

BTC/USD currently trades around $33,833, down about 6% in the past 24 hours and more than 21% in the red this past week. The intraday low of $33,064 is the lowest BTC has slipped to since July 2021.

The post I will buy more if BTC tests $20k, says renowned author appeared first on Coin Journal.

If you’re looking to invest in cryptocurrencies. In that case, you have a lot of options at your fingertips, so much that it can be hard to decide what assets to invest in or what cryptocurrency to buy. Over 8,000 cryptocurrencies are begging for your attention, but there are also a few that stand out. Bitcoin is at the top of that list.

Odds are, you might already be considering buying some, but you’re not sure why you should choose it over the rest of the other assets. If you belong in this category, good news because you will learn five reasons why you should buy Bitcoin in this article.

1. Bitcoin is the currency of the future.

In 2008, not many people were willing to accept bitcoin as a store of value. However, individuals and beyond have a growing wave of its applications.

There are Bitcoin ATMs worldwide for individuals who intend to make bitcoin transactions. This need arises from its growing demand. Considering just America, over 100 million bitcoin wallets are held by over 15% of Americans. Of that percentage, more than 1 million users buy and sell bitcoin on a daily basis.

2. The Scarcity of Bitcoin will bring more value in the future

The fiat currency system proved to be quite effective, but there was a basic flaw. Any nation’s government can decide to print as much of it as they’d like to. Even though it can be a good way to create or control inflation, it means that the value of money is subjective to whatever the government chooses to do at any point in time.

Here’s where bitcoin is very different. Bitcoin is limited in supply. Only 21 million bitcoin exist and can ever be minted or mined. This helps to protect its value as it is not subject to the laws of inflation or deflation.

The scarcity of bitcoin makes it more like digital gold. It is difficult to mine; it is limited in supply. Think of it this way: the demand for bitcoin is continually growing. From basic economics, the greater the demand, the greater the price of an asset. Now, add the fact that bitcoin is very scarce; the value is even bound to increase to more astronomical levels.

Remember when bitcoin was trading at less than a dollar? Now, it’s bounced up more than 5 million percent above that. That rise is almost unimaginable, but it happened. Guess what else can happen in 20 years when you choose to buy bitcoin now.

3. Bitcoin allows you full anonymity and privacy.

Bitcoin operates a fully decentralised system. Unlike centralized systems that are controlled by third party central banks that have the ability to hold or suspend accounts, bitcoin transactions can be made without the watchful eyes of any institution or agency. Your bitcoin cannot be confiscated. Your wallet cannot be frozen. More companies and well-known institutions adopt cryptocurrency for payments and settlement of purchases. The blockchain ledger system of record keeping is even more useful for institutions. Transactions are recorded as they happen. They cannot be altered, and every transaction is adequately confirmed before any action is taken.

Even banks are beginning to experiment with bitcoin. Some countries have already accepted bitcoin as their first choice method of payment.

Also coupled with anonymity, bitcoin allows you to transact faster. All of those put together make bitcoin the perfect choice for investment.

4. Bitcoin has a first-to-market advantage.

Just about any product that’s the first of its kind has an advantage over the other products in the same class. The same goes for bitcoin. It is the alpha of all cryptocurrencies. The pioneer asset for other cryptocurrencies.

This means that while new cryptocurrencies and altcoins will continue to rise by the day, bitcoin will still be the most trusted. The price tells the story. Bitcoin is still the most valuable cryptocurrency out there. But, if that doesn’t convince you, check the market cap. It shows that more people are willing to invest in bitcoin than any other cryptocurrency.

It might be easy to forget about dogecoin or litecoin, but do you ever see bitcoin going away? Can you imagine it fading into the background and fizzling out like a cloud of steam? I can’t, and I bet you can’t too.

In fact, I challenge you to gather a hundred people or as many as you can and give them 10 seconds to mention five cryptocurrencies. I assure you that bitcoin will appear on every single list. It’s settling for every investor to know that his chosen digital currency or store of value is the most trusted of all the others and has the best results in terms of value and market capitalisation.

5. Bitcoin makes for a safe and secure investment.

One of the reasons people trust bitcoin so much is its clear-cut reputation. Bitcoin has a track record of safety. There’s no doubt about its regulation with the SEC, ASIC, and other crypto regulating entities. Other cryptocurrencies might make for scary investments. For one, you have to research its founder, research whether it’s regulated and controlled, and consequently decide whether it would make a worthy investment or not. The credibility of bitcoin, however, cannot be doubted. As long as you have a well-protected crypto wallet to hold your addresses and keys, your bitcoin couldn’t be any more secure.

Ending Note

The facts are there. Bitcoin makes a great investment. But ultimately, it’s up to you to decide whether bitcoin would make a good store for your value or an addition to your investment portfolio. It’s your money, after all. Whatever you decide, though, make sure you’ve weighed the upsides and downsides before reaching that conclusion. Most importantly, be sure you’ve thought through all these reasons.

Remember, the cryptocurrency market is very volatile. Do not invest money you cannot afford to lose. This is not investment advice. Do more research before you buy bitcoin or any other cryptocurrency.

The post 5 Reasons you should buy Bitcoin appeared first on Coin Journal.

The analyst says another leg down for Bitcoin could bring the $30,000 support level into play.

Bitcoin price fell to lows of $34,800 on Friday to extend its decline that now risks further losses to $30,000.  

Currently, the BTC/USD pair is hovering around $34,825, nearly 12% down in 24 hours and just over 20% in the red this past week. 

The broader crypto market also remains on track for its worst weekly performance since mid-December. At the time of writing, the total cryptocurrency market cap is at $1.7 trillion after a 14% rout in 24 hours. 

All the top 10 largest cryptocurrencies by market cap have logged double-digit losses on the day.

Technical analyst Katie Stockton of Fairlead Strategies told Insider on Friday that breaking below $40,000 could see bulls seek support around $37,361. She said that a breakdown to this “secondary support level” would see the flagship cryptocurrency’s overall decline total 22% from the recent highs to $30,000.

In a note to Insider, Stockton highlighted the area around $37k as one that presented a significant buffer zone. It also characterises the benchmark digital asset’s long-term uptrend line, below which lies the potential for more pain.

But she also noted that a rebound for BTC/USD that leads to a weekly close above $37,361 would likely invalidate the negative outlook. The analyst points to the technical picture that show oversold conditions as one likely to aid a short-term uptick in price movement.

However, things will be tough for bulls if the downturn leads to further rot and turns the highlighted level into a supply wall. According to the analyst, whose forecast came before BTC’s plunge to $35,262, another leg down would signal the start of a fresh bearish reversal.

The bearish run for crypto comes as the stock market also sinks amid increased risk aversion among investors. The drawdown across risky assets has heightened as the market prepares for the first of potentially three or more Federal Reserve interest rate hikes.

On Friday, crypto billionaire and Galaxy Digital CEO Mike Novogratz said that crypto faced a rough time and could potentially only rally once stocks „find a base.“ Investors might thus watch the stock market keenly next week even as the Fed’s January meeting takes place.

The Nasdaq closed 2.2% down on Friday, while the S&P 500 and Dow also edged lower by more than 1% to see stocks post another negative week. 

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Crypto billionaire Mike Novogratz says markets are now in bear territory after recent sell-offs.

In December last year, Galaxy Digital CEO Mike Novogratz said Bitcoin needed to hold support at the $42,000 level or risk further declines below $40,000. In a bullish outlook for crypto, the crypto billionaire noted that the pullback would however present a decent buying opportunity for institutional investors.

This week has seen the broader crypto market track sell-off pressure in the equities, with Bitcoin and Ethereum both sliding below key support levels.

According to Novogratz, the tumbling stocks have exacerbated the negative outlook across crypto and the drawdown seen in Nasdaq and other stock indexes means the bear market is here.

Commenting on the crypto market outlook as well as the sell-off on Wall Street, he noted:

“The Russel index broke a major support and today’s roll over confirmed it’s broken. This is now a bear market. There is 1.2tr of bad equity longs above the market. Sell rallies. Don’t buy dips.”

Earlier, he had pointed to the retreating yields and the general downturn in the bond market and the impending interest rate hikes as spelling bad news for Nasdaq and cryptocurrencies.

However, he stated that the stock market and crypto would remain vulnerable to further rot if rates went up. To him, higher rates would see the 10-year Treasury yields jump to 2%, squeezing crypto and stocks lower.

Despite this projection, the Galaxy Digital chief believes cryptocurrencies have a chance at bouncing from recent lows. He notes that the crypto space has already felt the pain and currently looks set for “some buying pressure.”

But he warns the expected upside might not come unless the stock market stems the slide seen year-to-date. If the stocks continue to tank, Novogratz forecasts a “hard time.” He believes that a scenario where stock markets sink even deeper would limit any potential rally for crypto.

2) crypto will have a hard time rallying until stocks find a base. That said, crypto already had a decent sell off and is running into some buying support.

Finally, the best traders get good at gallows humor 😂

— Mike Novogratz (@novogratz) January 20, 2022

All the top ten cryptocurrencies by market cap are currently down double digits. The sell-off has wiped billions off the total crypto market capitalisation, cutting it by 11% to push it below the $2 trillion mark.

According to Stash CEO Brandon Krieg, the sharp declines across crypto offer a „perfect“ opportunity for retail investors to get exposure to cryptocurrencies.

In stocks, the Nasdaq is down 2.4% on Friday after entering a correction earlier in the week with a 10% slump. The S&P 500 is also tracking huge losses for the week, currently 1.4% down.

The post Crypto will have a hard time rallying until stocks find a base, says Mike Novogratz appeared first on Coin Journal.

Invesco’s Global Head of Asset Allocation likens Bitcoin’s staggering rally in 2021 to a financial mania, saying it could deflate to see BTC reach lows of $30,000 by October.

Bitcoin’s price could drop below $30,000 this year if the crypto bubble bursts and follows historical patterns seen in other crashes, an investment strategist at Invesco has said.

According to Paul Jackson, the Global Head of Asset Allocation at the investment firm, there is a possibility of this happening as the “mania” that drove Bitcoin to highs of $69,000 in November wanes.

In his forecast of the “improbable but possible outcomes for 2022”, Jackson says the year could see BTC price eventually post a 45% dump from its peak. And with bubble crashes extending for much longer, it’s probable the flagship cryptocurrency could end up valued at less than $30,000 from around October.

„The mass marketing of bitcoin reminds us of the activity of stockbrokers in the run-up to the 1929 crash,“ the Invesco strategist said.

The reference to 1929 relates to the stock market crash that hit Wall Street beginning Black Thursday on 24 October. By the following week, Black Tuesday happened as a sharp sell-off wiped off billions of dollars from the market.

„We know how that ended and Bitcoin has already fallen to around $42,000 (as of 7 January 2022), following closely the downward path of our mania template,” he added.

Jackson said that a bubble crash template features a 45% dip that occurs over the 12 months following an asset’s peak, which he called “a typical financial mania.“

In this case, he speculated, Bitcoin price could decline to lows of $37,000-$34,000 by the end of October. He then believes a potential trajectory tracking historical bubble patterns could push BTC below the $30k level given typical booms extend their burst over a further two years.

„Hence, we think it is not too much of a stretch to imagine Bitcoin falling below $USD 30,000 this year,” he stated.

But Jackson was quick to note that the forecast could still be wrong, as was the case of last year’s prediction of Bitcoin diving below $10,000. According to him, there’s a “healthy chance” of the cryptocurrency tagging last year’s upside cycle.

Bitcoin fell below $40,000 earlier last week but quickly rebounded to test resistance near $44,000. The cryptocurrency’s price has however tracked sentiment across the broader markets.

Analysts have pointed out that Bitcoin has been trading in lockstep with stocks, suggesting a fresh decline in traditional assets could be replicated in crypto or vice versa. Since late last year, one of the macro pressures on equities has been the Fed’s indication of an interest rate hike in Q1, expected to be early March.

Bitcoin is trading around $41,685 as of writing, nearly 3% down in the past 24 hours.

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