Fundstrat: Bitcoin Fall to 10000 Healthy 20000 EOY Possible

Fundstrat: Bitcoin Fall to $10,000 Healthy, $20,000 EOY Possible

Bitcoin Correction to $10,000 is “Healthy”?

Bitcoin (BTC) has been absolutely slammed over the past five days. Since passing above $13,000 for the second time this year on Wednesday, the cryptocurrency has been on a clearly downward-sloping trend. As of the time of writing this, Bitcoin sits at $10,600 — down by around 25% from its year-to-date high of $13,900.

Despite this harrowing price action, which has resulted in a sentiment of “extreme fear” according to the Bitcoin Fear and Greed Index, Fundstrat’s Tom Lee is still quite bullish.

In a recent response to Morgan Creek’s Jason Williams, the Wall Street’s resident staunch cryptocurrency optimist, explained that it is “healthy” to see Bitcoin pullback here.

Backing his claim, Lee suggests that as Bitcoin’s search traffic, as calculated by Google Trends, is still low, the recent drawdown makes sense and could be deemed a “good sign”. You see, the fact that search interest for the “Bitcoin” and “crypto” keywords haven’t rallied to 2017 levels suggests that there isn’t “massive hype” gracing this budding market, which means that BTC has room to run and is only in the early stages of its next cycle.

And as The Crypto Monk, a popular trader, remarked in a tweet, in previous bull runs, BTC established a pattern of entering parabolic uptrends, breaking them, consolidating, before embarking on more parabolic uptrends. Barring that Bitcoin currently isn’t in a bull market, this same series of events could easily play out now.

$20,000, Maybe $40,000 by the End of 2019?

Lee’s persistent optimism comes as he has continued to eye $20,000, even $40,000 as price targets for Bitcoin to reach by the end of 2019. Here’s why he’s bullish.

In the interview, Lee said that all things considered, Donald Trump’s tweets regarding this industry are “positive” because they cement the idea that cryptocurrencies are a relevant topic on the global geopolitical and macroeconomic stage. Indeed, over the past few weeks, the words “Bitcoin”, “Libra”, and “Crypto” have begun to grace mainstream outlets and government hearings time and time again.

Lee expounded: Trump’s comments “makes the other 99% [of the world] more aware [of cryptocurrency].” And if 1% of this new audience somehow finds value in the cryptocurrency market, the size of the community surrounding this asset class would de-facto double instantly.

In previous interviews, the Fundstrat co-founder also looked to the launch of Libra; a growth in cases of dovish fiscal policy, which some say will increase the chances of a recession and large inflationary events; and geopolitical tension that could only bolster the fundamental need for decentralized money as other bullish catalysts.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

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New Model: Bitcoin BTC to Reach Peak of 80000 in Next Cycle

New Model: Bitcoin (BTC) to Reach Peak of $80,000 in Next Cycle

Long-Term Outlook for Bitcoin

With Bitcoin (BTC) rapidly rallying by over 300% from 2018’s brutal bottom of $3,150, analysts have been wondering where this asset is going to head in the long term.

You see, while BTC is at $13,000 — which many say is already expensive enough for a digital asset that isn’t tangible — many proponents of cryptocurrency and technological idealists have come to the conclusion that this isn’t where Bitcoin’s story ends. On the contrary, actually. This may be Bitcoin’s true story begins. Sound dramatic, I know, but this may very well be the case.

CryptoHamster, an up-and-coming Twitter cryptocurrency analyst, recently posted the chart below, speculating as to where BTC could end up at the end of this cycle, which is likely to end in late-2020 or early-2021. Per his projections, which is based off an ascending channel on the logarithimic chart, Bitcoin will peak at around $80,000 in the coming year or two. A move to $80,000 from current levels would represent a 515% rally from $13,000 — crazy, right?

Interestingly, this hasn’t been the first time that the $80,000 figure has been mentioned by a prominent analyst. Per previous reports from Ethereum World News, Level’s Josh Rager notes that over Bitcoin’s three completed cycles, the trough to peak gains decreased by around 80% each time, which is a concept defined by the law of diminishing returns.

As Rager notes, 2011’s rally saw a return of 320,000%; 2014, 58,500%; and 2017, 12,000%. Thus, if history is followed to a tee, BTC will rally by 2,400% off its bottom, giving it a potential high of just shy of $80,000, this being $78,500.

Some have frankly been even more optimistic. Earlier this year, prominent trader Galaxy, claims that Bitcoin’s current monthly chart looks eerily similar to that seen in late-2015, when BTC finally began to embark on a rally yet again.

This is notable, as the last time BTC’s chart structure looked as it did now (a massive green candle after ~one year of selling pressure), what followed was a 6,500% price surge in a two-year time frame. Thus, Galaxy notes that if historical precedent is followed to a tee, a bull run of the previous one’s magnitude will place BTC at over $333,000 per unit by the end of 2021.

That may be a tad optimistic, for now anyway.

What Will Drive BTC Growth?

But what the hell is going to drive Bitcoin’s long-term growth?

According to Mark Yusko and Anthony Pompliano of Morgan Creek Digital, the answer to this pertinent question is rather simple.

This being continued institutional involvement from investors and groups that want to gain exposure to one of the best asymmetric bets in finance, and a ticket to the future of finance; and irresponsible fiscal policy, which will both drive demand for Bitcoin in the short term and in the long term.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

Today’s Teens Don’t Like Bitcoin amp Crypto: What?

Today’s Teens Don’t Like Bitcoin & Crypto: What?

Gen Z Not in Love With Crypto Like Some Thought

You’ve heard what the talking heads say, Millennials, Generation Xers, and Generation Zers will be the first crypto-adopting demographic. You see, unlike baby boomers and those in and above that age range, those in recent generations grew up with technology in their hands, including video games that involved some form of digital money or digital item system, be that gold in Clash of Clans, skins in Counter-Strike or Team Fortress, EVE’s ISK, or what have you.

And, it has been a common trend that some of Bitcoin’s most staunch critics would be deemed “senior”. Just look to Warren Buffett, Peter Schiff, and Kevin O’Leary. These three investors have all bashed the leading crypto asset within the past few months.

Thus, many have drawn conclusions that the logical step will be for these technology adopters to find their way into the cryptocurrency industry to instantly fall in love with Bitcoin and its ilk.

According to a recent Business Insider report, a majority of those aged 13 to 21 surveyed by the outlet are not entirely bullish on Bitcoin. In fact, 52% of the 1,884 American respondents claimed that they are likely not going to invest in digital assets within the next six months.

It is important to note that this doesn’t mean Generation Z is bearish on Bitcoin per se. Instead, the harrowing figure may suggest that there is a lack of fiat onramps into the ecosystem for younguns, made clear by the fact that if you are legally considered a minor, it is very difficult for one to obtain Bitcoin or other digital assets with a debit card or PayPal. Also, this statistic could also be a sign that there aren’t enough proper educational portals for American teens about the value proposition of Bitcoin and cryptocurrency.

Still, with a mere 5% of Americans between 13 and 21 years of age claiming that they are most likely going to purchase cryptocurrency within the next half-year, it is apparent that there’s a copious amount of upside to be had. How can the upside be captured though? This writer has a few ideas

More likely than not, Bitcoin and crypto adoption via this demographic will not be had through inundating social media feeds with macroeconomic trends and why BTC is fiscally better than fiat currencies. Instead, adoption of this budding asset class could be achieved by showing how crypto and related technologies can improve the efficiency of transactions and digital processes.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

FT: Bitcoin BTC Rally Past 10000 is Making Wall Street Return

FT: Bitcoin (BTC) Rally Past $10,000 is Making Wall Street Return

Institutions Now Foraying into Bitcoin, Report Suggests

Bitcoin (BTC) may have lost its bullish momentum over the past few days, but institutions are purportedly still well on their way back to the crypto space.

Ever since 2017, crypto investors across the board have been eyeing institutions, trying to determine if giants in finance, technology, and retail were going to make a play in this embryonic industry. At first, Wall Street was all for Bitcoin: the CME and CBOE launched futures for the leading digital asset, Goldman Sachs hinted at its interest to launch a crypto asset trading desk, ETF giant BlackRock purportedly had a “task force” for digital assets, and a number of over-the-counter desks were propped up.

But, once BTC started to fall, institutions fell silent. Executives in finance stopped mentioning “cryptocurrency” or related buzzword, and some firms, like Goldman, dropped plans to make any ventures in the space. However, over the last couple of months, institutions have begun to express interest and Bitcoin and its ilk once again, likely recognizing that cryptocurrencies aren’t dead after all.

The New York Stock Exchange/Intercontinental Exchange launched Bakkt, a Bitcoin futures exchange and infrastructure play; Fidelity Investments launched its own crypto custody & trade execution service, all while continuing to mine BTC in-house; Nasdaq has claimed that it is working on cryptocurrency futures; and TD Ameritrade and E*Trade, two retail brokerage giants situated in the United States, are reported to have plans to launch spot Bitcoin trading to millions of investors shortly.

But, according to a recent report from the Financial Times, which, like many other mainstream outlets, have ramped up their coverage of cryptocurrency, the recovery in the Bitcoin price has rekindled Wall Street’s interest in crypto more than we may realize.

The outlet writes that “senior figures in the financial services industry” have begun to eye cryptocurrency. For instance, a Dutch exchange-traded fund firm, Flow Traders, added crypto assets. And, over 50 companies, including high-frequency trading/market making firms DRW and Jump Trading, have formed a group to “develop a ‘deep, efficient, and secure’ market”.

The Financial Times adds that there has been a resurgence in interest in the Asian market, especially Japan and China. Per David Mercer of LMAX Exchange, this shift in the market can be pinned to Bitcoin finding use as a hedge “against a deflationary monetary environment.” Indeed, Deutsche Bank analysts recently admitted that Bitcoin may find use as a way out of traditional finance, which many believe is on the edge of collapse, due to dovish fiscal policies on behalf of the world’s central banks.

Regardless of the exact reasoning institutions have for returning to the space, it seems that Wall Street and their counterparts in Asia and Europe believe that at long last, crypto is here to stay.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe