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2021 Promises A Choppy End for Bitcoin Bulls – Here Is Why

The volatility in the crypto market in recent weeks has been quite concerning for Bitcoin (BTC) bulls. Although the recent FOMC meeting by the US Fed led to a decent bump in BTC prices, overall, the trend has been quite bearish. We don’t expect this to change; in fact, 2021 could end on a choppy note, backing a bear trend that we have seen for nearly the whole of Q4. Here is why this will happen:

  • Pandemic fears are still ripe with the massive spread of Omicron

  • The supply chain crisis and inflation in the US and Europe remains high, which could threaten global economic recovery

  • There is talk of potential regulation in many countries

Data Source: Tradingview.com

Bitcoin Price Analysis and Prediction

BTC saw a massive pullback this week. At the time of writing this post, the mega-cap coin was trading slightly above $45 000. It is nearly 30% down from its all-time high of slightly above $ 70 000. Also, the technical charts don’t offer a lot of promise, at least not until the year is out. 

First, the price has already fallen below the 200-day exponential moving average. It is also very likely that in the coming days, BTC prices will test the 200-day simple moving average. We saw this type of trend in May 2021, and it took nearly 2 months for BTC to have some semblance of recovery. At this rate, it could be a very anxious time for BTC bulls out there.

Should You Buy Bitcoin

Bitcoin is the go-to crypto for any investor. Although it may seem like the recent pullback offers a nice dip to buy and ride the upward trend, it’s still early days. BTC could fall further before 2021 is out and some experts feel that the trend will continue into early 2022. So, it is best to wait for now.

The post 2021 Promises A Choppy End for Bitcoin Bulls – Here Is Why appeared first on Coin Journal.

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Hedge fund billionaire Ray Dalio reveals he now holds ether, slams cash

Ray Dalio told Yahoo Finance that cryptocurrencies have become an impressive asset class, but he thinks cash could become a “problematic asset”

Bridgewater Associates founder and co-chief investment officer Ray Dalio has revealed that other than Bitcoin, he also now holds a small amount of Ether (ETH), the native cryptocurrency on the world’s largest smart contract platform Ethereum.

The billionaire investor, who’s been at the global hedge fund giant for over three decades, also expressed his admiration of the crypto space terming its growth as “impressive.” But the hedge fund manager did not spare cash, slamming it as possibly the “worst investment.”

Dalio expressed these sentiments during an interview with Yahoo Finance, published Thursday.

First Bitcoin, and now Ethereum

As with many other big-money individuals, hedge fund billionaires, and family offices, Ray Dalio took a negative view of cryptocurrency even as the emerging technology saw massive growth in the last decade.

But in May his stance flipped as he bought Bitcoin (BTC) amid a broader institutional adoption of the flagship cryptocurrency and other digital assets. An explosion of interest in decentralised finance (DeFi), non-fungible tokens (NFTs), and most recently the metaverse only served to increase inflows in this new asset class. 

So, a few months down the line, the American investor has revealed he recently added Ethereum (ETH) to his crypto portfolio.

„I don’t own a lot of it,” he told Yahoo Finance, referring to his ETH holdings. He also pointed out that he could not reveal just how much BTC he holds at the moment.

Talking about Bitcoin, the investor said he thought of it as a very impressive technology that has managed to remain safe for so long and continues to get adopted across the world.

„I think it’s very impressive that for the last 10, 11 years, its programming has still held up,” he noted.

Investors might need to diversify out of cash

Dalio also expressed his views on cryptocurrencies as an investment vehicle, noting that he views these as alternative money and good investments.

But he slammed cash saying that although most investors see it as a safe investment, his opinion is that it’s “the worst investment.“ 

According to him, the dollar’s debasement, for instance, means inflation-adjustment puts losses on dollar-based investments at 4% to 5%. He urges diversification, noting that its likely cash will become “a problematic asset.”

The post Hedge fund billionaire Ray Dalio reveals he now holds ether, slams cash appeared first on Coin Journal.

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Experts Predict Bitcoin Will Hit $100, 000 – But When Exactly?

Many Bitcoin (BTC) experts and bulls see the crypto hitting $100, 000 in the near time. But many also remain split on when exactly this will happen. The large-cap coin has experienced massive headwinds this year.

It hit its all-time high just last month after scaling well over $68, 000. However, the surge did not last long sine in early December, Bitcoin tumbled to $46, 000. But considering BTC started the year at $30, 000, it’s still outperforming a lot of assets. But could Bitcoin really hit $100, 000?

Bitcoin’s Bullish Sentiment

Conservative analysts at Fidelity Investments are looking at the $100, 000 price target by 2023. But optimistic bulls see this coming rather sooner. In fact, some even predict that the crypto will hit $100, 000 in Q1 2022. Much of this growth is expected to be driven by solid organic demand. Bullish analysts at Token Metrics feel that the currency will hit $75, 000 by year-end.

Data Source: Tradingview.com

Others like Parallax Digital, a digital assets marketing and consulting firm, are looking at $307, 000 by October 2021. This is by the most bullish prediction of them all. Analysts at Parallax argue that inflationary pressures occasioned by the COVID 19 pandemic and the supply chain crisis will push more investors towards cryptocurrency. So, here is an expected timeline of events based on these predictions:

  • Bitcoin Starts the year at $30, 000 

  • Hits an all-time high of $60, 000 in September 2021 

  • Surges to $75, 000 by year-end and goes on to hit $100, 000 in Q1 2022

Short Term Volatility Still Remains a Concern

Despite these bullish predictions, the short-term volatility of Bitcoin is expected to remain a big concern for investors. This has been a feature of Bitcoin for the last three months or so, and analysts feel it will continue in the short term.

The looming threat of potential regulation also remains a risk factor. However, analysts say that if indeed the crypto hits $100, 000, it will trigger a “euphoric” bull run that could send it to incredible heights.

The post Experts Predict Bitcoin Will Hit $100, 000 – But When Exactly? appeared first on Coin Journal.

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Bitcoin below $40K is a buying opportunity, says Kraken CEO

  • Jesse Powell says he bought more Bitcoin when it dropped to lows of $30,000 a few months ago.

  • He says Bitcoin is more a “buy and hold” investment, while his forecast for the US dollar is markedly bearish.

Kraken CEO Jesse Powell has said the current downward pressure would provide another buying opportunity for investors if the price of Bitcoin were to dip below the $40,000 level.

In an interview on Bloomberg TV, the Kraken chief talked about the crypto space and even revisited his earlier prediction that had BTC rallying to $100,000 by the end of the year. 

While he notes that’s unlikely to happen given the market outlook, he believes the froth seen over the past several weeks would lead to a crucial buy the dip chance if the bears pushed below $40k-ish.

“I was buying when we dipped close to $30k a few months ago and you know I think a lot of people have a lot of dry power on the sidelines just waiting to come in at rock bottom prices,” he told Bloomberg’s Emily Chang.

Bitcoin is a „five-year plus“ investment

Acknowledging that his previous predictions for Bitcoin might have been a miss, Powell noted that it’s hard to tell what happens next in the market. He however feels it’s better for anyone looking to invest in Bitcoin to look at it as a “five-year plus investment.”

He also talked about Bitcoin’s more volatile nature, noting that such an outlook is more pronounced on shorter time frames- its price can swing massively in a day or over a week. He believes the strategy should be to look at the crypto as a “buy and hold investment.”

Powell sees the dollar crashing to „zero“

But while he remains bullish on crypto, especially Bitcoin, Powell paints a grim picture for the US dollar. He says that with interest rates likely to go negative and the dollar towards “zero”, the best scenario for investors would be not to have their currencies held in the greenback.

Powell also mentioned Kraken’s plans as the crypto market sees more and more activity, noting that the exchange wants to help fight the misinformation likely to impact negatively on new investors. Kraken is also looking to unveil a non-fungible token (NFT) platform to seize on the opportunity provided by the great interest in the space.

The Kraken CEO also commented on the need for proper regulation in the sector, noting that the exchange is pro-regulation but these should be clear and designed to support the industry grow.

Bitcoin currently trades around $46,800 as bulls battle to reclaim the $50,000 support level. The cryptocurrency has declined by about 8% in the past week, though it’s 140% up over the past year. In September, Bitcoin bounced off the $40,000 level after a brutal sell-off, and despite a choppy October, reached an all-time high above $69,000 on 10 November.

This time, Galaxy Digital CEO Mike Novogratz says the $42,000 level might be a key support level for Bitcoin.

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Dogecoin (DOGE) skyrocketing after Elon Musk says Tesla will start accepting it as payment

On 14th December, DOGE price went up by over 25% and became the only major cryptocurrency to deliver gains for the day as the rest of the coins including Bitcoin (BTC) and Ethereum (ETH) nose-dived.

After consolidating, DOGE is currently trading at $0.1819 and still in the green with a 13.17% rise in the last 24 hours.

Why is Dogecoin (DOGE) price rising?

Previously, DOGE had followed Bitcoin (BTC) and other major Cap tokens in the drop over the course of the week.  

The current DOGE price rise is attributed to Elon Musk’s announcement that DOGE will soon be accepted as payment for merchandise by Tesla.

The current turnaround for the meme coin that had been on a slippery slope has given DOGE holders 10% weekly gains.

Musk tweeted that Tesla will make some merchandise buyable using DOGE and see how it goes.

After the announcement, Tesla adopted the unusual way of only accepting one cryptocurrency (Dogecoin) out of all possible cryptocurrency options.

The move is seen as a risk by Musk to challenge Bitcoin supporters after he disqualified BTC purchases for Tesla vehicles allegedly due to environmental concerns.

Musk ‘’person of the year’’ as declared in the Time Magazine, said that Dogecoin is better for transactions than Bitcoin, adding to the longstanding public praise record for DOGE.

“The total transaction flow that you do with Dogecoin, like transactions per day, is much higher potential than Bitcoin.” 

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