Tag: Bitcoin Investment

Microstrategy’s Bitcoin Investment Turns Green Again

by Blockchain News

Fortune 500 company Microstrategy’s investment in Bitcoin has once again turned profitable as the leading cryptocurrency hit a new 10-month high of $30,163. The firm started investing in Bitcoin in the second quarter of 2020 when the BTC price was trading around $10,000. Since then, it has made a series of BTC purchases over a period of two years and accumulated a total of 140,000 BTC for nearly $4.17 billion at an average price of $29,803 per BTC.

Microstrategy co-founder Michael Saylor introduced the Bitcoin strategy as a treasury hedging asset over the US dollars, and the firm has held BTC both personally and on its balance sheet. Saylor also convinced several public companies, including Tesla and SpaceX, to accumulate BTC on their balance sheets.

The Bitcoin bet made by Microstrategy looked lucrative throughout the bull market in 2021, with the BTC price hitting an all-time high of nearly $65,000 in April 2021. However, the prolonged crypto winter in 2022 fueled by multiple crypto contagions crashed BTC price by over 70%, resulting in a loss for Microstrategy’s Bitcoin investment.

Critics of Microstrategy’s Bitcoin investment were quick to point out the losses incurred during the bear market in 2022. However, the BTC price has shown strength throughout 2023, with a 55% increase in the first quarter of the year. The price has closed above the previous month’s high for three months in a row, considered to be a bullish market indicator and a sign of another bull run on the horizon.

Bitcoin has outperformed most traditional stocks and bonds this year and has even eclipsed the losses incurred from the crypto contagions caused by FTX and Terra-Luna saga. The resilience of Bitcoin and its increasing adoption by public companies like Microstrategy and Tesla is a testament to the growing importance of cryptocurrencies in the global financial ecosystem.

Background information on Microstrategy’s Bitcoin investment strategy:

Microstrategy’s investment in Bitcoin is unique and unconventional, given that it is a business intelligence firm and not a financial institution. However, the company’s CEO, Michael Saylor, is a vocal proponent of Bitcoin and believes that it has the potential to replace fiat currency in the long term.

Saylor introduced the Bitcoin strategy as a treasury hedging asset over the US dollars, which are subject to inflation and depreciation. By holding BTC on its balance sheet, Microstrategy can protect its treasury against the devaluation of fiat currency and earn higher returns on its investment.

The company’s Bitcoin investment has attracted criticism from some analysts who view it as a risky bet that could potentially harm the firm’s financial health. However, Saylor has defended the strategy, stating that Bitcoin is a store of value that has appreciated over time and that the company’s long-term investment horizon mitigates short-term price fluctuations.

Microstrategy’s Bitcoin investment has also inspired several other public companies to add BTC to their balance sheets, including Tesla, Square, and Marathon Digital Holdings. 

Source

Tagged : / / / / /

The Uber Rich Investors Are Picking This Altcoin Over Bitcoin

by NEWSBTC

For many years and likely many years to come, bitcoin has been the number 1 digital asset for investors, especially those looking to invest in the long-term. When big money started entering into the crypto space, bitcoin was the first stop before it diversified into other assets. However, as time as gone by and more altcoins are beginning to gain popularity, bitcoin is losing its hold as the number 1 choice for investors.

A recent survey that featured respondents from the ultra-wealthy class showed that they did not favor bitcoin as their first choice. Rather, they picked an altcoin whose growth has rivaled and even surpassed that of bitcoin since its inception.

Ethereum Comes On Top

Crypto.com revealed that the wealthy are gradually moving away from bitcoin. Their obvious choice besides the leading cryptocurrency is ethereum, which is currently the second-largest cryptocurrency by market cap.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The numbers provided by the crypto exchange showed that ethereum has made its mark on the wealthy. With its broad range of use cases and applications, like decentralized finance (DeFi) and NFTs, the value of the cryptocurrency has shot up exponentially. And with that has come more confidence from investors.

Related Reading | Ethereum Bullish Signal: Number Of Holders With 1 ETH Touches New ATH

Crypto.com reached that that ethereum beat out bitcoin by 1% when it comes to the number of high-value investors going into crypto. Bitcoin came out at 33%, while ethereum made the top of the list at 34%, proving to be the preferred digital asset for investment purposes. Crypto funds came in third at 23%, other altcoins dominated at 15%, while Dogecoin, surprisingly, made the list with 2% of investors wanting to invest in the meme coin.

Get 110 USDT Futures Bonus for FREE!

The crypto exchange also noted that about 1 billion people are expected to be invested in the crypto market by 2022. By the look of things, ethereum may see a larger share of investors compared to bitcoin.

But Why ETH?

Well, for those investing in the crypto space, there could be a number of factors. One is the low-interest rates offered by banks and returns from traditional investment avenues like stock and bonds being too low to combat the inflation rate. So in order to keep inflation from eating away at their wealth, these investors have chosen the crypto market for their needs.

Ethereum price chart from TradingView.com

ETH recovers to $2,600 | Source: ETHUSD on TradingView.com

Bitcoin had been the inflation hedge of choice for years before now. But all of that is changing as the ethereum network has taken major steps towards becoming deflationary. President and Founder of TIGER 21, Michael Sonnenfeldt, notes that the high inflation rates are what is pushing the uber-wealthy investors towards crypto, and by extension, ethereum.

“Like all investors, the super-rich are concerned about inflation and are looking to preserve their wealth in 2022,” said Sonnenfeldt.

Related Reading | Ethereum Whales Quietly Filled Up On ETH While Broader Market Panicked

Likewise, another member of TIGER 21 explained that investors are starting to favor ethereum over bitcoin. Additionally, similar projects like Solana and Avalanche are also enjoying this support.

“I am very bullish on both Bitcoin and ETH. My personal assessment is that the tide is turning in favor of ETH. I also like Ethereum alternatives like Solana and Avalanche.” – Andy Sack, member of TIGER 21.

Featured image from The DO, chart from TradingView.com

Source

Tagged : / / / / / / / /

Bitcoin Whales Take Advantage Of Market Crash To Gobble Up Millions In BTC

by NEWSBTC

The bitcoin crash rocked the market to its core when the digital asset had lost over 50% of its all-time high value to bottom out at $33,000. It was as a result of market sell-offs across the financial space, sparking a ripple effect that was felt heavily in the crypto market. Market sentiment had crumbled during this time as investors had scrambled to sell their holdings.

However, not everyone saw the declining prices as a signal to sell before prices tank even more. Whales, who control a large portion of the circulating supply, took this as a cue to buy and have been filling their bags with all of the bitcoin being dumped on the market by panicking investors.

Whale Gobbles Up Traded Bitcoin

In a report from CC15Capital, the trading activities of a whale are outlined. In what came out to be a long document, it shows that the whale had been purchasing tens of thousands of bitcoin every few hours while traders dumped their coins. CC15Capital which is an asset allocator tracked the wallet and discovered that a single bitcoin wallet had been purchasing millions of dollars worth of bitcoin.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Related Reading | Market Sentiment Crumbles As Sell-Offs Drags Bitcoin To $33,000

In the event of the past week’s price crash, this single whale had accumulated millions in bitcoin. Each purchase ranged from $2 to $18 million worth of BTC every few hours, averaging 48,000 BTC per purchase.

It looked like the whale was buying up all coins being dumped on the market. By the weekend, the wallet had successfully increased its holdings by a couple of hundred thousand BTC. The more the price dropped, the more bitcoin the whale bought.

Get 110 USDT Futures Bonus for FREE!

Bitcoin price chart from TradingView.com

BTC trading above $36k | Source: BTCUSD on TradingView.com

CC15Capital, in response, called for bitcoin investors to stop dumping their coins, which are being bought by whales, thereby increasing the concentration of bitcoin supply in the hands of large investors.

Tradable BTC On The Decline

CC15Capital also noted that the volume of bitcoin that is available for sale has gone down. Currently, 14.5 million of the total bitcoin supply is illiquid. This means that this supply has not moved, neither have they been traded. It is the highest concentration of supply which looks to be held for the long-term.

In the same tweet, the asset allocator explains that if the wallets holding this illiquid supply were to increase their holdings by a mere 27%, a total of 4 million BTC, there would be no coins left for sale, driving the supply to zero.

Related Reading | Has Bitcoin Reached Its Bottom? Analyst Says It Still Has A Long Way To Go

Other whales have also taken advantage of the sell-offs happening in the market. As the exchange supply is dwindling, these large investors are making sure there is no shortage on their end when a supply squeeze happens.

In two months, a whale wallet that had zero BTC in November has managed to gather an impressthatalance of over $1 billion in BTC. This account looks to have started buying with the crash and has continued to do so ever since. At the time of writing, the wallet balance sits at $1,013,777,643.51.

Featured image from TokeneoBit, chart from TradingView.com

Source

Tagged : / / / / / / / /

I Only Hold 1 Bitcoin, Real Vision CEO Raoul Pal Reveals

by NEWSBTC

Millionaire investor Raoul Pal has revealed how much he owns of bitcoin, a cryptocurrency that he has been known to actively promote in the past. In what was a shocking revelation, the CEO and founder of Real Vision posted his bitcoin holdings on Twitter, which turned out to be lower than everyone’s expectations. Pal disclosed that he only owned a measly 1 bitcoin.

Why Does Raoul Pal Only Own 1 Bitcoin?

The CEO got into a heated Twitter argument with Greg Foss after Foss insulted Pal. In a response to another user who defended the CEO saying they liked him, Foss explained that he was “just calling out the BS.” This is where Pal came into the conversation demanding to know what exactly it was that Foss was accusing him of as he’d like to know.

Related Reading | Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Foss continued on to explain that he did not agree with Pal promoting his trading mechanism to other traders who were less inclined to understand how it worked, pointing towards bond math. Pal however disagreed with Foss’s assessment, stating that he did not hold his views on bonds as a philosophy, rather just a mechanism which he uses to trade.

The argument continued on, eventually culminating in Pal stating how much bitcoin he owned, which it turns out is a single bitcoin. The founder and CEO of Real Vision explained that it was because of the bitcoin community’s approach to inclusion that led to this decision. Pal lamented the exclusion of others from the space who happen to share a different viewpoint from the accepted majority.

Bitcoin price chart from TradingView.com

Get 110 USDT Futures Bonus for FREE!
BTC price recovers above $43,000 | Source: BTCUSD on TradingView.com

“This is why I hold only one bitcoin, the community has lost sight of inclusion and you sir, are helping reduce the network effects by excluding people who don’t share your view from the network,” said the CEO.

It eventually ended with Greg Foss conceding and acknowledging he was wrong to have attacked Pal in the first place. In a separate tweet, Foss tendered an apology to the CEO, stating that he regretted his actions.

Not Completely Out From Crypto

Despite his views on the bitcoin community, Raoul Pal has not entirely ruled crypto. Even bitcoin has not been completely ruled out as evidenced by his tweet stating that he does own one BTC. However, Pal has moved on to other things in the crypto space. Given his comments not too long ago, the CEO is now more bullish on ethereum compared to bitcoin.

Related Reading | Bitcoin Implied Volatility Plummets To Pre-Bull Market Levels: What This Means

Pal noted back in November that he expected ethereum to continue to outperform bitcoin given its performance in previous months. The millionaire investor still holds a well-rounded bullish view on bitcoin but expects ethereum to be the better investment of the two going forward.

A month before this, Pal had received that he made the biggest personal position of his life in ethereum. He explained that he is long the digital asset which he placed at the $20,000 mark by the second quarter of 2022, less than six months away from now.

Featured image from iGaming.org, chart from TradingView.com

Source

Tagged : / / / / / /

American Rapper Lil Baby On Holding Bitcoin And Ethereum Over Fiat

by NEWSBTC

For years now, some investors have preferred to hold their wealth in cryptocurrencies like bitcoin and ethereum as opposed to cash. As cryptocurrencies become more popular, this school of thought has become more widely shared to the point where even billionaires and celebrities have publicly come out to say that they would rather hold their wealth in digital assets rather than fiat.

One of the latest celebrities to profess their support for bitcoin and ethereum is American rapper, Lil Baby. The rapper who rose to prominence in the last couple of years has said that he would rather hold his wealth in cryptocurrencies such as bitcoin and ethereum as opposed to holding cash.

Lil Baby Wants His Money In Bitcoin And Ethereum

American rapper Lil Baby was shopping on Icebox when he was asked about where he puts his money. The rapper is known to be a regular at the luxury jeweler with a running internet joke that people will “run into Lil Baby” when they visit the jeweler.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Related Reading | What’s In Store For MicroStrategy Going Forward? CEO Michael Saylor Reveals

While shopping, the rapper expressed his displeasure with cash. When asked what he would prefer to cash, Lil Baby explained that he would rather have all of his money in bitcoin and ethereum, the top 2 cryptocurrencies currently in the space.

Pointing to the bag of cash he brought with him to purchase jewelry, he said that was the last bit of cash he had. The rapper is known to drop thousands of dollars at a time for some ‘iced out’ jewelry, which has grown to be somewhat of a status symbol among famous people.

Get 110 USDT Futures Bonus for FREE!

Bitcoin price chart from TradingView.com

BTC trading at $41K | Source: BTCUSD on TradingView.com

Lil Baby also expressed his interest in the metaverse. He told the attendant that he didn’t live in the real world, living instead in the metaverse. As for cash, he said that he wasn’t carrying any more cash, stating “I ain’t walking around with cash no more.”

Celebrities Dive Into Cryptocurrencies

Lil Baby is not the first to show support for cryptocurrencies such as bitcoin and ethereum. Some might even say he’s a little late to the game. 50 Cent made headlines in the 2017/2018 bull market when he revealed that he had found 700 bitcoins generated from album sales which were then worth millions.

Related Reading | Altcoins Are Encroaching On Bitcoin’s Dominance On Digital Payments

Rapper Busta Rhymes showed interest in the market last year during the peak of the Dogecoin hype. After what seemed to be a rollercoaster of a learning curve, he had finally settled on investing in bitcoin, later revealing his intention to charge bitcoin for future deals.

Hip Hop star Megan Thee Stallion teamed up in August with Cash App to educate fans on cryptocurrencies. The partnership involved video tailored towards her fanbase, as well as a $1 million in bitcoin giveaway on the app.

Featured image from XXL Mag, chart from TradingView.com

Source

Tagged : / / / / / / / / /

What’s In Store For MicroStrategy Going Forward? CEO Michael Saylor Reveals

by NEWSBTC

MicroStrategy has been topping its bitcoin holdings in the last year and is now the public company with the largest bitcoin holdings in the world. Presently, the firm holds over 124K BTC on its balance sheet, worth over $5 billion, remaining in profit despite the recent downtrend. However, with such a large holding, one tends to wonder what the company plans to do with the digital asset in the future.

Bitcoin Is Unstoppable

MicroStrategy CEO Michael Saylor was on CNBC to talk about the future of the firm which had made a name for itself due to its various bitcoin buys. Saylor who is a big proponent of the digital asset and a BTC maximalist talked about what the firm had planned for the future, as well as what it planned to do with its bitcoin holdings going forward.

Related Reading | Bitcoin Is Massively Overvalued, Billionaire ’Bond King’ Jeff Gundlach

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

The CEO starts out by explaining that he remains a strong supporter of bitcoin, which he refers to as “compelling and unstoppable.” This has previously been highlighted at various times by Saylor with his public support for the digital asset. At every possible moment, the CEO has said that bitcoin is the answer to major problems like inflation and is the leading digital property.

On the topic of regulation, Saylor explains that he believes that regulation would, in the end, be beneficial for the digital asset. “The regulatory clarity is going to accelerate institutional adoption of bitcoin and you’re going to see large flows of capital enter the asset class as this continues,” the CEO said.

Bitcoin price chart from TradingView.com

Get 110 USDT Futures Bonus for FREE!
BTC trending at $43K | Source: BTCUSD on TradingView.com

What MicroStrategy Has Planned For The Future

As for MicroStrategy’s plan for the future, the CEO explained that the company will continue to operate as it always has. The company which sells enterprise software has been very profitable so far. With its bitcoin plan, it has seen an uptick in profitability and its stock is up by a factor of four, according to Saylor.

Related Reading | Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022

“Look, our long term strategy is kind of like Harvard University. We’re running a university but we have an endowment. MicroStrategy is selling enterprise software. We generate $100 million in cash flow a year – in a good year – and we are reinvesting that cash in our endowment. Our endowment is 100% bitcoin.”

Saylor adds that MicroStrategy plans to acquire and hold bitcoin as a balance sheet. As for the operations, the company will continue to sell its enterprise software everywhere in the world.

Featured image from CoinDesk, chart from TradingView.com

Source

Tagged : / / / / / / /

Why Sovereign Nation States May Begin Acquiring Bitcoin In 2022

by NEWSBTC

Bitcoin has grown from being ‘internet money’ used by only a few thousand people during its first few years to being part of the balance sheets of big companies and sovereign states. El Salvador is a case in point for a country that has committed fully to the bitcoin mission, putting millions of dollars into the digital asset as a national reserve.

While bitcoin is still a long way from being the de facto reserve currency of all countries, its growth points to countries not being able to ignore it for much longer. That’s why it is expected that more nation-states will purchase the cryptocurrency in the next year.

Fidelity On Why Countries Will Purchase Bitcoin

In a recent report published by Fidelity, it goes into depth about bitcoin and the role it may play in deciding which countries are the economic leaders of the world. This is because as the asset becomes more widely spread as a reserve currency, the countries who hold bitcoin may see their influence grow higher than those who do not, despite where they might stand today.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Related Reading | Jack Dorsey Launches Bitcoin Defense Fund To Aid Devs Facing Litigation

History has always shown that those who are quick to accept innovation and new technology have always ended up faring better compared to those who do not, and that may well be the case with bitcoin and other cryptocurrencies.

Fidelity also refers to it as a “very high stakes game theory.” If bitcoin adoption continues to grow, then those who got in earlier will no doubt be better off than the rest. This will push other countries to also acquire the digital asset as “insurance” so as to not be left behind even if they do not believe in the investment thesis or the adoption of the digital asset.

Get 110 USDT Futures Bonus for FREE!

Basically, sovereign nation-states would purchase bitcoin sort of as a hedge, in case it does end up being important in the future. “In other words, a small cost can be paid today as a hedge compared to a potentially much larger cost years in the future.”

A Total Ban Will Be Difficult

Touching on the ban debate that has raged on in the space, the report explained that banning bitcoin outright would be hard to achieve. Although not impossible, it could certainly lead to a significant loss of wealth and opportunity, it added.

Related Reading | Highlighting Risk: These Crypto Coins Carry The Most Leverage

There is yet to be an all-encompassing bill passed in regards to cryptocurrencies which provides total regulatory clarity. The infrastructure bill which was passed last year and scheduled to go into effect in 2024 continues to be subjected to numerous amendments, and with such a long time frame till implementation, there is no telling where the bill might end up.

However, Fidelity noted in its report that a digital asset regulation being passed into law will be a milestone for bitcoin, stating that “what we think is most notable is that digital asset regulation becoming law is another milestone as the asset class comes of age and establishes itself.”

Bitcoin price chart from TradingView.com

BTC trending above $43K | Source: BTCUSD on TradingView.com
Featured image from Bitcoin News, chart from TradingView.com

Source

Tagged : / / / / / / /

Bitcoin Is Massively Overvalued, Billionaire ’Bond King’ Jeff Gundlach

by NEWSBTC

Billionaire Jeff Gundlach has shared his thoughts around bitcoin, saying that the digital asset is massively overvalued. Gundlach who is also known as the ‘Bond King’ is the founder of the investment firm, DoubleLine Capital.

Bitcoin which has suffered numerous dips that have caused it to lose over 30% of its all-time high value continues to struggle, but even at these low prices, the billionaire does not believe that the cryptocurrency is actually worth its current value.

Related Reading | ARK Invest CEO Cathie Wood On What Will Drive Bitcoin Correction

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin Is A Spectator’s Market

Gundlach appeared on Yahoo! Finance to talk about a number of issues surrounding the financial markets. The billionaire is infamous among bond investors but talked about why bitcoin remains too high to purchase. For Gundlach, buying bitcoin now is a bad business move. This is because people are getting out as the price is falling and would cause the digital asset to become even more volatile.

However, the billionaire did not warn against purchasing the asset at all. In fact, Gundlach gives a price range at which he thinks that buying bitcoin would be a great move. He explained that investors should purchase the digital asset when it loses another $15,000 from its current value, putting the sweet spot for purchase at $25,000.

“Bitcoin is for speculators at the present moment. I would advise against buying it. It will be volatile as people get out. Maybe you should buy it at $25,000.”

Gundlach, who has always been a big proponent of bonds, continued to push for it. He explains that bitcoin is for momentum investors, which he likened to FAANG stocks, and for him who is an anti-momentum investor, bonds are the perfect fit, saying, “Bonds fit my culture of cowardice.”

Get 110 USDT Futures Bonus for FREE!

“If you’re a momentum investor, it’s like playing roulette with a strategy that works as long as the wheel doesn’t come up on the zero or double zero. You’re making money, making money, and then eventually you get a double zero and you’re busted. Momentum investors tend to go out in a blaze of glory.”

Bitcoin price chart from TradingView.com

BTC trading at $43,750 | Source: BTCUSD on TradingView.com

NFTs Are Junky Stuff

Bitcoin was not the only crypto asset that Gundlach touched on in his interview. The billionaire also focused NFTs, a fast-growing space that has gone from obscurity to one of the biggest markets in the crypto space in a matter of a year.

He explained that the growth of NFTs was too fast and like bitcoin, was an investment for “investors on large doses of steroids.”

Related Reading | Jack Dorsey Launches Bitcoin Defense Fund To Aid Devs Facing Litigation

Gundlach further said that for him, when it comes to buying things like art, he would only buy quality. Comparing it to real estate, he states that “You should really buy the highest quality, as these assets can appreciate very steadily.”

As the financial markets await a decision from the Fed, the billionaire also warned that the Fed could send the economy into recession if it tightened its monetary policy.

Featured image from Bitcoin News, chart from TradingView.com

Source

Tagged : / / / / / /

Bitcoin Discount? Peter Brandt On Why You Shouldn’t Buy The Dip

by NEWSBTC

Bitcoin has been dropping consistently for the past week and the crypto market has lost over $500 billion following this dip. Like with any crash, there have been the expected calls of ‘buy the dip’ from investors who believe that the dips are only temporary and that the digital asset will soon recover all of its lost value.

While this advice is sometimes sound, there is no doubt that there are some drawbacks with it, which could range from adding to a losing position that ends up losing more, to sinking more money in projects that may already be doomed to fail. Veteran trader Peter Brandt has addressed these calls of ‘buy the dip’, explaining why investors should not follow it.

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

You Could Lose More Money

Famed trader Peter Brandt responded to a tweet from CEO of Vailshire Capital, Jeff Ross, saying that the price dips that are being experienced by bitcoin presented an opportunity for long-term traders to increase their holdings. Brandt’s tweet was vehemently against this school of thought, proposing instead “a sacred trading rule” for investors during times like these.

The veteran trader compared the current movement of bitcoin to the Silver $SI_F of 1980, which had grown to its $50 top after a massive run. It had subsequently sunk to $3.65, leading people to purchase it in the hopes of catching the dip, but the asset ended staying low for more than two decades.

Get 110 USDT Futures Bonus for FREE!

Basically, the investor urged investors to not rush to purchase bitcoin because it is low and they think it will not go lower.

Bitcoin price chart from TradingView.com

BTC continues downward trend | Source: BTCUSD on TradingView.com

Comparing Gold And Bitcoin

In a subsequent tweet, Brandt did a similar comparison to the price of bitcoin. This time around, he focused his attention on gold, calling out the fact that just like silver in the 1980s, gold experienced a similar trend.

He explained that gold had first hit its all-time high of $873 in 1980, followed by a drop in price to $255. The asset which had been the inflation hedge of choice for many decades had remained in this territory for almost three decades following this and would only beat this previous all-time high 27 years later.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

Brandt admonished the author of the previous tweet by asking, “Is this your definition of a ‘long-term’ investor?”

Naturally, Brandt’s comment regarding bitcoin had drawn the ire of bitcoin maximalists who flocked to explain to the older trader why the digital asset would not follow the footsteps of gold and silver.

One user tweeted that “Difference is btc is technology, not a rock”, while another pointed out that bitcoin had more utility, saying, “Gold has been a disastrous investment. Not much utility in it. Hard to carry your gold with you in the event of political system or economic collapse. Hence #Bitcoin.”

Featured image from Blogtienao, chart from TradingView.com

Source

Tagged : / / / / / / / / /

Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

by NEWSBTC

Bitcoin has been on a downward streak since the last quarter of 2021, and this has spilled into the new year. As January goes into full bloom, it has come with discouraging movements for investors as over $500 billion has been wiped off the market. This has sent bitcoin’s price down to the dreaded $40,000 price range.

One question that remains in the mind of investors is, has the market seen the bitcoin bottom? Billionaire Mike Novogratz attempts to answer this as he puts forwards his thoughts on the issue and predicts the bitcoin bottom.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Bitcoin Should Bottom Out Between $38,000 to $40,000

Galaxy Digital CEO Mike Novogratz has always been an active voice in the crypto space and has at various times given his thoughts on the market. This time around, Novogratz sat down with CNBC’s Squawk Box, where he predicted where the bottom of the current bitcoin downtrend will be.

The billionaire CEO placed the floor of the current downtrend at $38,000 which he does not see bitcoin going under. Currently, bitcoin’s lowest during the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are anything to go by, then the market may see another dip before there is a full-blown recovery trend.

Bitcoin price chart from TradingView.com

Get 110 USDT Futures Bonus for FREE!
BTC price tumbles down to $41,475 | Source: BTCUSD on TradingView.com

The CEO gives his reason for this bottom as institutional investors taking advantage of the low prices to get into the digital asset. I” know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,”  Novogratz said.

“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.

Inflation Will Drive Growth

Continuing on, Novogratz shares more regarding his stance on this predicted bitcoin bottom. One of those has been inflation.

Those who have been following the markets know that rising inflation rates have led to increasing concerns among investors who have begun to look for alternatives to gold to serve as an inflation hedge. Bitcoin has naturally become the option for these investors.

The Fed believes that inflation rates will begin to come down, but the CEO explained that if this does not go as planned, then “all bets are off.”

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

Digital Galaxy, on which Novogratz heads as CEO, has made a name for itself in the space as being a big bitcoin proponent. The company currently holds over 12,000 bitcoins, making it one of the companies with the largest bitcoin holdings in the world.

Mike Novogratz himself also has a personal stake in cryptocurrencies, revealing that he holds about 85% of his net worth in cryptocurrencies, which at the time translated to up to $4.8 billion held by the billionaire in crypto.

Featured image from Stock Hax, chart from TradingView.com

Source

Tagged : / / / / / / / / /
Bitcoin (BTC) $ 26,124.00 1.84%
Ethereum (ETH) $ 1,577.44 1.18%
Litecoin (LTC) $ 64.43 0.72%
Bitcoin Cash (BCH) $ 206.86 1.17%