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June 9th, 2018- In This Issue:
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BITCOIN PRICE ALERT???
ACTUALLY NO...
Bitcoin has been locked into this very narrow trading range for some time now.
In the past consolidations such as this has led to big moves, sometimes to the upside and sometimes not so much.
It is our opinion that although these prices are currently an excellent area to buy in at, especially if you're accumulating for the long term. However, we can't seem get over the fear of at least one more test of the $7,000 support level and the real possibility that the institutional investors are likely to pressure the market to the downside to force out the weak hands and those that haven't taken the time to fully understand what bitcoin is and will be in the future.
Our
belief,
as always is to buy the dips, take advantage of any opportunity to add to your positions and be glad you were able to scoop up cheap coins before the big money institutional buyers start investing in earnest.
As always, buy the dips, hold on to your bitcoins for as long as you can and spread the word. Tell your friends, your relatives and anyone else who will stand around long enough to listen about Bitcoins, believe me you will be doing them a huge favor.
Visit BitvestIRA for information on using your IRA to invest in bitcoin at 20% below spot price. Or call us directly with any questions at 1-844-BIT-VEST (1-844-248-8378)
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BITCOIN PRICE FORECAST TO DOUBLE AS EXPERTS REVISE CRYPTOCURRENCY PREDICTIONS
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Bitcoin will double in value by the end of the year despite its recent price stagnation, according to several
cryptocurrency experts.
The last six months has seen bitcoin's price fall from more than $19,000 in December, to today's value of below $7,700.
The falling price has been attributed to uncertain regulation, as well as the seizure of bitcoins in different legal cases, such as
MtGox, which were then sold on exchanges.
While the cryptocurrency markets continue to settle, the short-term forecast is expected to remain relatively stagnant.
"I believe bitcoin's price will continue to fluctuate between $6,500 and $8,500 in the coming weeks," David Hanson, a blockchain expert and CEO of the gaming platform Ultra, told The Independent.
"In the medium-to-long term, bitcoin's value should go up, as big institutions enter the crypto space in a bid to gain first-mover advantage, further legitimising the market."
This view that major institutions will provide a boost to bitcoin and other cryptocurrencies is shared by other figures in the space, who believe bitcoin will finally break back above $10,000 in the coming months.
"As the regulatory landscape clears up we can expect far more investors, including big ticket institutions, to make their first cryptocurrency investments," Iqbal Gandham, the UK managing director of the investment platform eToro, told The Independent.
"For the first few months of this year, the crypto industry has been jogging along at a relatively slow pace, waiting for the opportunity to stretch into a sprint. This may just be that moment."
Bitcoin price predictions were very positive at the beginning of the year, buoyed by the price explosion at the end of 2017. Celebrated investor Tim Draper said bitcoin could hit $250,000 by 2022, while self-described "bitcoin evangelist" Alistair Milne said he believed bitcoin would reach between $35,000 and $60,000 by the end of next year.
In January, a panel of cryptocurrency experts compiled by price comparison site Finder forecast that bitcoin would hit $33,000 by the end of this year. A new prediction released this week revised that figure to less than half that initial outlook at just $14,638.
Despite being more modest, if it is realised it would still represent almost a 100 per cent gain on bitcoin's current price.
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Bullish Signals Hint at Bitcoin Price Breakout
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Still stuck in a narrowing price range, BTC could soon rise to resistance above $8,000 if the bulls are able to leap the 50-week moving average hurdle.
As of writing, the cryptocurrency is trading at $7,770 on Bitfinex, having been stuck in a narrowing price range (pennant) for months now.
Defense of $7,000 last week and the 9.3 percent rise since then have neutralized the immediate bearish outlook and got investors
talking about a possible rally to pennant resistance at $8,870.
While that target may appear far-fetched, it may be put to test if bitcoin can first scale the key 50-week moving average (MA) resistance (currently located at $7,819) in a convincing manner.
BTC narrowly avoided a downside (bearish) break of the narrowing price range last week, turning higher from $7,040. A bearish breakdown would have signaled a resumption of the sell-off from the record high of $19,891 and could have pushed BTC below $6,000 (February low).
However, the subsequent rally to close to $7,700 has neutralized that threat. While it's still too early to say that bitcoin is now aiming for $8,880 (pennant resistance), the probability would rise sharply if we see an aggressive run above the significant resistance of the 50-week MA.
Such a move would invalidate the long-run bearish reversal indicated by the weekly close in the third week of May below the moving average. A move above the 50-week MA would also need to be backed by a solid rise in trading volumes to break out of the pennant.
The upside break of the falling channel seen earlier this week indicates a short-term bearish-to-bullish trend change. The 5- and 10-day MAs are also biased to the bulls, as is the higher lows pattern indicated by the rising trendline.
So, a break above the immediate resistance at $7,780 (June 3 high) could yield a quisignificantck rally to over $8,000. The bullish move would also add credence to "
6th of the month" theory, which had hinted at a major bullish reversal based on an alternating monthly cycle.
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Coinmint Unveils $700 Million Bitcoin Mining Facility In Upstate New York
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Coinmint, the cloud mining platform has unveiled its latest Bitcoin mining facility located in upstate New York. The company revealed the new site in a statement released on June 5, 2018. The Coinmint facility becomes the latest Bitcoin mining farm in North America as there continues to be an influx of cryptocurrency miners into the
region
.
Coinmint obtained approval in January to establish a Bitcoin mining farm in the 1,300-acre facility that was once an aluminum smelting plant in Massena, New York. Alcoa owned the plant before shutting down its operations in 2013. Since then, Alcoa had been in search of new tenants for the facility. Coinmint secured a 10-year lease agreement with Alcoa, plus an option to renew. The deal finally came to fruition after a robust back and forth negotiation process.
Mining operations are already ongoing in the facility and will continue under the aegis of the North Country Data Center Corporation - a new Coinmint subsidiary. The company plans to invest about $700 million in repurposing the plant into one of the largest Bitcoin mining centers in the world. The 435-Megawatt complex is expected to be completed in the next one year.
"The start of operations is a key milestone towards the Massena site reaching its full capacity. The area's citizens and its hydroelectric power - a green alternative to the less sustainable energies used at other digital asset infrastructure data centers - was the catalyst for our move and will be foundational assets for continued expansion. The reduced electricity costs will enable us to compete in the rapidly emerging digital currency global marketplace"
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Bitcoin ETF Up for a Revival with "VanEck SolidX Bitcoin Trust" But at a Hefty Price
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VanEck in partnership with SolidX is again making the attempt to get the Bitcoin ETF approved by SEC after failing the first time. However, these physically-backed ETFs will cost a hefty price of about $200,000 that will be targeting the institutional investors.
Bitcoin ETF with a share price of $200,000
Bitcoin (BTC) Exchange Trading Fund (ETF) might see the daylight again. In its latest attempt, Van Eck Associates Corp. along with SolidX Partners Inc. has again
filed
for a Bitcoin ETF to the US SEC.
According to Bloomberg, these funds will be physically-backed that means it will be holding actual bitcoins. Furthermore, it will be insured against the theft and loss of the particular cryptocurrency. However, it is going to cost you big.
In comparison to most of the ETFs that launch with a double-digit share price, this fund will be having the share price of about $200,000 in order to target the institutional investors. This would further bring a shift from the usual individual investors to Institutional ones in ETF industry.
In January, the SEC asked the companies to go about a number of applications. Also, SEC rejected the Bitcoin Trust ETF of Winklevoss brothers last year.
According to the CEO of SolidX, Daniel H. Gallancy, this time they have made the required changes of increased share price and using regulated trading firms for price basis in the new and joint request.
Bloomberg quoted Gallancy commenting:
"Based on various comments, it seems that regulators are concerned right now about having an ETF that is available to retail investors. We think that will change over time, but right now a good place to start is with a product geared purely toward institutional investors."
Eliminating the concern of high volatility
Last year, when CME Group Inc. and Cboe Global Markets Inc. launched the
Bitcoin futures, Bitcoin ETF looked like it could be a reality. It has been speculated that the agency just might approve the funds that are linked to those financial instruments that are being traded on prominent exchanges.
However, that were just that, speculations as nothing came to fruition. SEC cited the high volatility one of the prime reasons along with lack of knowledge about pricing and trading in the market, the reason behind not approving the ETF option.
Now, both the companies, VanEck and SolidX are addressing these concerns by using those indexes to use the basis of price for "VanEck SolidX Bitcoin Trust" that tracks over-the-counter trading by US-based institutions that are further regulated by the CFTC.
For the index compiling, VanEck's subsidiary MVIS is assigned that will also publish the price updates. With over $45 billion assets and more than 70 exchange-traded products managed by VanEck along with the New York-based SolidX which is a financial technology company, Bitcoin ETF might just become the reality this time
Through a cold-storage solution, private keys will be kept offline while "funds will be insured one-to-one by a syndicate of insurers."
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Universities Have Started to Invest in Bitcoin, Start of Institutional Adoption
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According to John Lore, the founder of Capital Fund Law Group, academic institutions and universities have started to get involved in the cryptocurrency market, acknowledging the long-term potential of cryptocurrencies like bitcoin and ethereum.
"We're seeing some academic institutions getting involved on a limited basis for strategic reasons. I can't say the names of [the academic institutions] because that's attorney-client but we have people mostly on the East Coast that have begun doing investments in this space on a fairly modest basis,"
Real Institutional Adoption
By definition, an
institutional investor
is an entity that garners funds from different sources to purchase properties, securities, and assets. Institutional investors include entities like banks, insurance companies, hedge funds, endowments, and mutual funds.
Small hedge funds and medium-sized investment firms cannot be considered as institutional investors, contrary to the views of many investors in the cryptocurrency market. But, entities like universities and endowments are proper institutional investors that can allocate many billions of dollars into the cryptocurrency market and increase the liquidity of cryptocurrencies.
However, for academic institutions and endowments to commit large sums of capital into the cryptocurrency market, proper custodian solutions are necessary, as cryptocurrency hedge fund Blocktower founder Ari Paul previously stated:
"Institutional money started trickling into cryptocurrency in mid 2017, but it's been slower than many (including myself) expected. That doesn't mean it's not coming. There are a lot of pieces that need to come together, one big piece being third party custody. Custody isn't binary. It's not like Coinbase custody will launch and suddenly every pension will throw $100m into BTC. It takes time for custody solutions to gain trustworthiness. But, I think we'll have solid third party custody by September of this year."
Lore echoed a similar sentiment to Paul and noted that the majority of investment that has come into the cryptocurrency market has come from high net-worth individuals and family offices, not institutional investors. But, Lore emphasized that there are several institutional investors that are actively involved in the cryptocurrency market, and once potential regulatory conflicts are avoided, institutions will begin to invest in the market.
Still, Lore said that university endowment funds have already started to invest in the cryptocurrency market in a limited basis, adding that the growing interest toward the market by endowments show the strong potential of cryptocurrencies in the long-term.
"We see academia as a tie between these somewhat young and enthusiastic fund managers and capital raising," Lore added.
Significance of University Endowments Showing Interest in Crypto
University endowments often manage many billions of dollars and the priority of endowments is to invest in safe haven assets that can sustain stability over the long run.`
The growing demand for cryptocurrency by academic institutions signify that institutional investors have started to acknowledge cryptocurrencies as a stable asset class that will eventually compete against traditional assets.
Read More...
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Data Shows Switch From 'Hodlers' to Speculators in Bitcoin in Last 6 Months
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Data from Chainalysis shows that the amount of Bitcoin owned by long-term investors is now almost equalled by short-term speculators, according to Financial Times
report June 8.
Chainalysis is a blockchain research company that analyzes "connections between entities on the Bitcoin blockchain."
Since December 2017, the amount of Bitcoin held by day traders has risen to 5.1 mln BTC, almost equaling the amount held by long-term investors - those who have held the coins for more than a year - which equals about 6 mln BTC, in what has been called Bitcoin's "liquidity event."
The Chainalysis data, which was shared with the Financial Times, also shows that "[Bitcoin] trading volumes have now fallen in tandem with the prices, from close to [$4 bln] daily in December to [$1 bln] today." Philip Gradwell, the chief economist at Chainalysis, believes this sudden rise in liquidity has been a "fundamental driver" behind Bitcoin's recent decline in price.
in the wealth distribution of Bitcoin, with a small number of investors - colloquially termed "
whales" - holding a disproportionate amount of the cryptocurrency.
Of the roughly 17 mln Bitcoin available, the data shows that, as of April 2018, around 1,600 Bitcoin wallets hold at least 1,000 bitcoins each, equalling almost 5 mln BTC and accounting for almost a third of all Bitcoin in circulation.
The data from Chainalysis raises questions concerning
manipulation of crypto markets by a small number of investors. While institutions
have begun carving out a share of the market, many believe that the future of Bitcoin will depend on which approach regulators take.
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Bitcoin Set to Challenge Downtrend in 'Next Couple of Days', Says Fundstrat Advisor
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Robert Sluymer of Fundstrat Global Advisors spoke to
CNBC
Thursday, June 7, about his view that
Bitcoin
(BTC) is set up for a price breakout in the near future.
During a Bitcoin price explanation, Sluymer said that he believes there is "some very important levels coming up for Bitcoin literally in the next couple of days." Even though Bitcoin's price had
failed
to make the expected rally in May -- one predicted by Fundstrat's
Tom Lee
-- Sluymer notes that Bitcoin's longer term price trend is still "technically up" with $9,500 as its critical level.
According to Sluymer, Bitcoin is now set up to "challenge its downtrend:"
"When we think about what does it take to turn a security, a market, a cryptocurrency around, it first needs to bottom, then it needs to reverse through that uptrend or downtrend, and then it needs to turn that trend positive. So we have step one in place."
luymer did note that there are "plenty of technical bears out there" that are predicting price bottoms as low as $5,000 or $3,000, but Sluymer believes that Bitcoin will rally if it just gets through the $7,800 level.
In spite of the failed rally, Tom Lee stated in May that he
still maintains his prediction of Bitcoin hitting $25,000 by the end of the year.
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Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. BitvestMint LLC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred
BitvestIRA suggests that you research and evaluate the risks and rewards associated with investing in digital currencies before you make your purchase. Information on the website represents past performance and may not represent future results. BitvestIRA's representatives are not licensed as investment advisers and, accordingly, cannot offer investment advice regarding client's personal investment portfolios..
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