JP Morgan on What Caused Bitcoin Price Crash to 8000

JP Morgan on What Caused Bitcoin Price Crash to $8,000

Bitcoin (BTC) hasn’t had the best week. In fact, the cryptocurrency is set to close down some 20% on the week, which is one of the asset’s worst performances since the bearish capitulation seen in November of last year.

A bit late to the party, JP Morgan recently came out with its analysis of the recent price crash, trying to explain to clients the cause behind Bitcoin’s precipitous plunge off a price cliff.

What Caused Bitcoin to Crash?

In a research note obtained by Bloomberg, JP Morgan analyst Nikolaos Panigirtzoglou and a team of strategists argued that Bakkt “probably depressed prices”, but not in the way that you may expect.

They wrote that instead of the low initial volumes, it “may be that the listing of physically settled futures contracts (that enables some holders of physical Bitcoin e.g. miners to hedge exposures) has contributed to recent price declines.”

Indeed, the launch of Bakkt’s physically-deliverable Bitcoin futures gives institutions and other larger market players another instrument through which they can play this market, potentially allowing for more complex price trends that might have been hard to obtain before.

That’s not all, however. Panigirtzoglou and the JP Morgan analysts explained that through analysis of Bitcoin futures markets, they determined that the past week saw a “mark marked capitulation” of Bitcoin long positions on BitMEX. They argue that this liquidation event “also likely contributed to the sharp falls in Bitcoin prices this week”.

JP Morgan’s analysis of the price crash is similar to others completed by other researchers, in that everyone widely believed that the launch of Bakkt and subsequent futures liquidations led to the -20% performance Bitcoin has incurred over the past week.

As reported by Ethereum World News previously, eToro’s Simon Peters said the following on the crash, echoing JP Morgan to a tee:

“Pessimism over the level of activity on Bakkt sparked this most recent sell-off. However, it was the liquidation of $600million worth of long positions on platforms like Bitmex that caused the price to dramatically slump by over a $1,000 in a 30 minute period.”

Soon to Recover

Despite the bearish price action, some analysts are expecting for Bitcoin to soon mount a recovery.

According to Josh Rager, as long as Bitcoin continues to “range between heavy support near $8,000”, the more likely it is that the cryptocurrency will see a nearly 10% bounce to $8,700.

The idea here is that as $8,000 has acted as an important historical level, it will here too. A close below it would be bearish; consistent closes above it implies that bulls have some semblance of control.

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

Article re-posted on Markethive by Jeffrey Sloe

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Report: Athletics Giant to Pilot Use of Cardano Blockchain

Report: Athletics Giant to Pilot Use of Cardano Blockchain

Cardano Sees Massive Adoption Event

While Cardano (ADA) has been slipping over recent months, losing its spot as a top ten crypto asset, the blockchain underlying the token recently saw a massive adoption event.

As reported by trade publication CryptoBriefing, Input Output (IOHK), a blockchain development studio that is one of the main maintainers of Cardano, has unveiled a partnership with New Balance — the massive athletics sneakers and sportswear brands. Per the report, IOHK and New Balance are teaming up to implement a pilot supply chain solution on the Cardano blockchain, which will allow New Balance to authenticate its sneakers through a decentralized solution. This out of left field partnership was announced at a conference in Bulgaria on Saturday by Charles Hoskinson, the CEO of IOHK and a co-founder of Ethereum.

New Balance’s sudden urge to use blockchain comes after its products have been copied by leechers, companies looking to use the design or name brand for their advantage. Indeed, if you were to visit any market selling cheap “name-brand” goods, you would find countless rip-offs of New Balance’s relatively luxury pieces of sportswear, especially their shoes.

Supply Chain a Blockchain Trend

New Balance’s initiative to use Cardano is similar to other high-profile forays into blockchain announced over recent months.

Announced via a press release, Walmart China, which presides over 424 retail stores, is now working with VeChain. The two partners join China Chain-Store & Franchise, a retail consortium that purportedly has 1,000+ members; Pricewaterhouse Coopers, a “Big Four” auditor; and the Inner Mongolia Kerchin, an Asian cattle company. The partnership intends to add another 100 product lines, including fresh meats, rice, mushrooms, and so on, to be tracked on VeChain’s Thor ledger by the “end of the year”.

By the end of 2020 — just over 15 months away — the collective wants to trace 50% of packaged fresh meat, 40% of packaged vegetables, and 12.5% of packaged seafood that Walmart China sells through blockchain technologies.

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Per the release, this partnership has been completed in a bid to “implement a traceability strategy for products and pioneer the large-scale application of blockchain traceability.” With this proposed system, consumers will be able to scan QR/barcodes on blockchain-enabled products to find out information about said products, including the source of the good, logistics process, quality assurance data, and “many more data points.”

The idea behind the moves from Walmart China, New Balance, and their counterparts is: with the widespread prevalence of fake goods and an inept court system not good with dealing with copyright at speed and scale, a digital solution must be used to maintain profits and deter rent-seekers.

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

Article re-posted on Markethive by Jeffrey Sloe

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Analyst Targets 10 Upside for Bitcoin As BTC Manages to Hold 8000

Analyst Targets 10% Upside for Bitcoin As BTC Manages to Hold $8,000

After Retaking $8,000, Bitcoin to Recover Further

Over the past 48 hours, Bitcoin (BTC) price has started to show some strength. After the brutal drawdowns that were seen early this week, which saw BTC unravel to $7,700 from $10,200 in a few days’ time, this strength has been welcomed.

According to one leading analyst, this mild recovery, which has seen BTC slowly tick higher to $8,200, may just be the start of a short-term bout of strength.

Luke Martin, a prominent cryptocurrency analyst recently featured on CNN, noted that he is “expecting upside on BTC towards $9,000” — representing a 10% gain from the current price level.

While he didn’t explain his analysis in full, he made reference to a chart he made regarding the CME’s Bitcoin futures. As seen below, Bitcoin gained an average of 11.4% one week after the expiry of the CME’s last monthly Bitcoin future. And historically, it gained just over 1% one week after the expiry of a monthly future.

What this implies is that going into the next week of trading, the week after the future’s expiry, Bitcoin has a very slight bullish bias.

Separately, analyst Financial Survivalism noted that Bitcoin’s four-hour chart recently flashed an array of positive technical signs — a bullish divergence on the RSI, a rollover in the ADX, and the SAR having broken bullish.

Back to Five Digits

While a 10% rally from current levels would obviously be welcomed by bulls, others are convinced that Bitcoin will soon return to $10,000 — the level the cryptocurrency sat it prior to the recent dramatic downturn.

Speaking to British paper The Independent, Simon Peters, analyst at eToro, opined that BTC is ready to soon retake five digits:

“Now that Bitcoin is now trading below $8,500, it could become an attractive proposition for investors who want to buy the dip. Fundamentals such as hashrate remains strong, and adoption of crypto is still moving forward at pace. With those conditions in mind, we could see the price rise back up to $10,000 within the space of the next month.”

And Joe DiPasquale, the chief executive of BitBull Capital, echoed this cheery analysis, even going as far as to tighten the timeline for recovery. The industry executive asserted to CNBC that as “Bitcoin’s fundamentals remain strong”, a “price [recovery] back towards $10,000 [can be had] in the coming days”.

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

Article re-posted on Markethive by Jeffrey Sloe

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300000-Employee Giant Trials Bitcoin BTC Payments for Staff

300,000-Employee Giant Trials Bitcoin (BTC) Payments for Staff

Pay for Lunch at Deloitte with BTC. Wait What?

Oh, what weird times we live in.

As first spotted by The Next Web, Deloitte was reported by the Luxembourg Times to have embraced Bitcoin (BTC) in a really weird way: by announcing intentions to purchase their lunches in-office with the leading cryptocurrency. The “Big Four” (the named given to a group of four massive auditing giants) professional services behemoth, which sports some 300,000 employees in offices across the globe, is purportedly integrating such a payments system to gauge the viability of BTC, which is an asset that auditing firms have increasingly had to deal with over recent years.

The report barely went into depth on this matter. First off, which is the payment processor being used to transact payments? Secondly, will the BTC received be converted back into fiat? And lastly, are people in line going to have to wait until their transaction is finalized on the blockchain before they can get their grub?

But, the report seems to be bona fide.

The report did not mention how far this pilot extends to through Deloitte, which itself is a giant that has branches across the globes that are manned by tens of thousands, even hundreds of thousands of staffers. However, seeing that this is a pilot, rolling out Bitcoin cafeteria payments to support 300,000 employees may likely be tough to get right on the first try.

Big Four Goes Big On Bitcoin (& Blockchain)

Deloitte isn’t the only “Big Four” firm to have recently given Bitcoin a positive nod. Previously, PWC Luxembourg revealed in a press release that it is “stepping further into blockchain” by accepting Bitcoin payments from its clients starting on October 1st.

While it isn’t clear how much actual demand PWC’s Luxembourg division will see for this solution, it asserted that it believes in Bitcoin’s future, hence its decision to accept it as a form of payment.

They called the cryptocurrency a “symbol of a revolutionary payment model”, touching on its status as the “first peer-to-peer payment mechanism that cannot be compromised and is based on a decentralized trust model”. PWC Luxembourg also accentuated the potential of blockchain in today’s society, calling the “technology underlying cryptocurrency” a likely “medium to long-term standard in the economy”. John Parkhouse, the chief executive of the regional division, stated in a press comment that he believes blockchain technologies have the potential to allow for dramatic cost savings in business, improvement of social capital, and unlocking value “currently stuck in the economy”.

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

Article re-posted on Markethive by Jeffrey Sloe

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Want to Win 100000 in Bitcoin by Eating Pizza? Here’s Your Shot

Want to Win $100,000 in Bitcoin by Eating Pizza? Here’s Your Shot

Pizza: A Bitcoin Staple

Pizza has long been an integral staple of the Bitcoin and cryptocurrency industry.

Back when Bitcoin was trading for literal cents, a computer programmer famously made the first real-life purchase with BTC, using 10,000 precious (then effectively worthless, as the market for them was so nascent) coins to purchase two pizzas from a user on BitcoinTalk, who ordered him Papa John’s. While 10,000 BTC was then chump change (then $40) for the programmer, Laszlo Hanyecz, that same sum of cryptocurrency is now worth some $100 million. Youch.

The trend of Bitcoin and pizza has continued years later. Earlier this year, Bitcoin payments upstart Fold recently released a fun portal based on the Lightning Network. Fittingly dubbed Lightning Pizza, it allowed consumers to purchase Domino’s with Lightning transactions, which are near-instant, effectively free, and (eventually) secured on-chain. Fold’s product lead, Will Reeves, told CoinDesk the following about his company’s newest venture:

“We’re trying to make bitcoin fun again and illustrate that lightning is at a point where it is mainstream-ready.”

And the crypto community celebrated.

Want To Win $100,000? First, Go to A Domino’s In France

The pizza motif has continued to make its presence known. As first spotted by Decrypt, the French branch of Domino’s Pizza is giving away $110,000 worth of Euros to celebrate its 30th birthday, giving customers of the chain a chance to win their prize in either fiat or Bitcoin. According to the website for this surprise competition, users will have a chance to enter into the draw from September 4th to October 6th.

The Importance of The Story

While some see the Bitcoin Pizza story as one that should be heeded as a warning not to spend BTC as a medium of exchange, some have begged to differ.

At an event in Los Angeles, Mati Greenspan, a lead analyst and cryptocurrency commentator at retail brokerage eToro, told a crowd that without Laszlo’s unfortunate run-in with pizza, “we likely wouldn’t be where we are today”.

Indeed, Laszlo’s showed the world — or all of BitcoinTalk at the time — that Bitcoin can actually be used as a medium of exchange, especially in a digital context.

While the dream of global payments hasn’t been had yet, with the CEO of Twitter even saying that Bitcoin currently isn’t equipped to become the Internet’s money, solutions like the Lightning Network are well on their way.

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

Bitcoin Price Recedes to 10000 Analyst Expects Another 4 Drop

Bitcoin Price Recedes to $10,000; Analyst Expects Another 4% Drop

Bears Take Over Bitcoin Price

Sorry bulls, it seems that bears want to play now.

In the past few hours, Bitcoin has shed $400, printing large red candles on short-term price charts as bears managed to take control of the market. While Bitcoin is still up by 4% over the past week, it seems that bears have managed to kill the uptrend that brought BTC from $9,300 to $10,900.

As of the time of writing this, Bitcoin is trading at $10,100, which implies a 3% to 4% loss over the past day.

Analyst Financial Survivalism believes that the recent price unwind could result in further losses for the leading cryptocurrency. In a recent tweet, he noted that Bitcoin has just dropped below the lower bound of a low time frame symmetrical triangle, which has a measured downward move of $9,620. Since BTC has managed to close under the triangle, a strong collapse to the aforementioned level — some 5% lower than the current price — could be had in the coming day.

That’s not all. According to Bytetree, a crypto analytics firm, Bitcoin’s “fair value”, which is derived from its network effects and transaction values, is currently around $7,500, implying that the cryptocurrency’s premium is at around 35%. While there is unlikely to be a full retracement to that level, BTC always ends up interacting with its fair value in the long run. So should the lack of usage of the Bitcoin network continue, a further drawdown could be observed.

Altcoins Strong In Pullback

What’s interesting about this pullback is that while Bitcoin has shed 4%, altcoins have managed to outpace the market leader, even in a dump.

For those unaware, in all previous flash crashes seen over the past three months, Bitcoin managed to outpace its crypto ilk, often resulting in short-term BTC dominance surges.

This latest unexpected divergence could be seen as a sign that altcoins are starting a return to their former glory. And while some say that this fabled “altseason” is coming far too soon, the technicals support a recovery in the value of the cryptocurrency asset class against BTC.

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According to Bitcoin Bravado’s former lead analyst, Jack, selling altcoins at this point in time is nonsensical.

He argued that BTC dominance, which recently hit a two-year high, is poised to “fall off a cliff”, potentially to collapse back to the low-60s or mid-50s. Jack backed his point by citing the fact that the aforementioned metric is currently looking as it did prior to altcoin’s strong bounce in April of 2018.

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

Article re-posted on Markethive by Jeffrey Sloe

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Investors Will Wake Up to Bitcoin at 1 Trillion Market Cap: Macro Investor

Investors Will Wake Up to Bitcoin at $1 Trillion Market Cap: Macro Investor

What Will Draw Investors to Bitcoin?

For the most part, investors abiding by traditional investment strategies have avoided Bitcoin like the plague. Legendary investor Warren Buffett, for instance, once called the cryptocurrency “rat poison squared”, later explaining that there isn’t much inherent value in the project. Other notable players in finance and politics, including U.S. President Donald Trump, have echoed this analysis, using phrases like “thin air” and “unbacked” to get their point across.

Unlike traditional stocks and assets, Bitcoin doesn’t provide a fixed yield, a dividend, or generate cash flow. And compared to traditional and modern fiat currencies, BTC isn’t backed by the power of a government or the scarcity of an underlying asset. The foreign elements of the cryptocurrency have thus led most traditional investors to cast it aside.

However, analysts are saying that investors may begin to flock to Bitcoin — if one requirement is fulfilled that is.

In a recent tweet, Dan Tepiero, the founder of investment fund DTAP Capital and co-founder of Gold Bullion International, argued that there is one thing that will drive investors to Bitcoin: a market capitalization of over $1 trillion, which BTC is still around 400% away from.

He wrote that if you boil down the demographics of the world’s largest money managers, you get “guys over 55”, most of whom he claims “can take the ‘leap’ to believe in the investment case for BTC as an asset”. But, once the cryptocurrency reaches the $1 trillion milestone, it may awake something in investors.

For those unaware, Tapiero is a global macro investor and hard money advocate that believes Bitcoin is seriously undervalued — being a secure network that can reach anyone with an internet connection. The investor made his case for the cryptocurrency in an interview with Real Vision, a finance media outlet run by some of the world’s largest fund managers and investors:

While a $1 trillion valuation for the world’s first cryptocurrency seems quite lofty, it may not be that far away. Twitter analyst PlanB’s seminal price model for Bitcoin, the stock-to-flow (SF) ratio model, has shown that after the May 2020 block reward halving, BTC’s fair market capitalization will swell to $1 trillion. This translates to $50,000 per coin.

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Why BTC?

So, what will draw investors to Bitcoin?

Well, to be frank, the first and foremost factor in getting traditional investors to allocate capital to this space is pure FOMO. We already saw this on a relatively small scale in 2017.

But also important is the fact that the leading cryptocurrency provides benefits in traditional portfolios. Delphi Digital, a crypto research outfit, found in late-2020 that “using a simple tiered-allocation analysis,” a portfolio that is made up of 57% stocks, 40% bonds, and 3% Bitcoin yielded the highest Sharpe Ratio (a popular measure of a portfolio’s risk-return potential).

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