According to the Los Angeles Police Department (LAPD), a 26-year-old man was arrested and charged with stealing 9,000 worth of application-specific integrated circuit (ASIC) bitcoin miners. Local reports confirmed that the man has been released from jail, and the LAPD stated that the investigation is ongoing. Canyon Country Resident Accused of Stealing 9K Worth of […]
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Prime Suspect in $2.2M Crypto Fraud Faces Up to 20 Years in Prison
The U.S. Department of Justice (DOJ) announced on Friday that Robert Wesley Robb, 46, from Colorado, pled guilty to wire fraud for deceiving investors with false promises about a Maximum Extractable Value (MEV) cryptocurrency trading bot. Robb solicited investments via social media, claiming high returns and pressuring individuals to invest quickly. On Sept. 8, 2023, […]
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Analysts Suspect Banking Crisis Triggered ‘Resting Bull Market’ in Gold, Silver Could Print Much Higher Gains
At the start of the week, a troy ounce of .999 fine gold was trading at ,813 per unit. Seven days later, gold rose 9.65% against the U.S. dollar to the current spot price of ,988 per ounce. Gold’s rise comes at a time when confidence in the global banking system is at an all-time low, and five major banks have received bailouts. An ounce of fine silver also increased in value, rising more than 12% from .01 to .59 per ounce this week.
Gold and Silver Prices Surge Amid Banking Crisis and Expectations of a Dovish Fed
The price of gold is approaching the ,000 per ounce mark after numerous U.S. and international banks showed signs of extreme weakness. The Federal Reserve lent banks 4.8 billion in five days, erasing almost 50% of the U.S. central bank’s monetary tightening policy. As a result, the market expects a dovish rate hike this month, possibly around 25 basis points, or even no rate hike at all after the financial calamity the banking industry has faced. According to TD Securities’ global head of commodity strategy Bart Melek, this is “good news for gold,” he told Kitco News.
“Markets are concluding that we’ll see the Fed go for another 25bps increase and then probably sit on it for a while and see what happens,” Melek explained. “The view from the gold perspective is that given disruptions in the banking system and the U.S. Treasury Department’s willingness to help, we might get accommodation that allows inflation to hang around longer at a higher level.”
Gold surged 9.65% against the U.S. dollar this past week, and silver also rose 12.61% higher over the last seven days. Meanwhile, the U.S. Dollar Index (DXY) has fallen from 105.65 at the start of the week to the current level of 103.864. Statistics analyst and market movement forecaster Northstar tweeted about gold’s performance over the years compared to the DXY 21 days ago. “In 1974, the DXY was 105 [and] gold was 0,” Northstar said at the time. “In 1981, DXY was 105 [and] gold was 0. Today, DXY is 105, [and] gold is ,810. Do not fear a rising U.S. Dollar Index – over time, gold faithfully tracks purchasing power destruction.”
Bloomberg’s senior macro and commodities strategist Mike McGlone referred to gold as a “resting bull” three days ago, on March 15. “Gold appears to be a rare resting bull market compared to most risk assets and commodities that are reverting from getting overextended, on the back of pandemic-related excess liquidity,” McGlone said in an investors’ note. “Plunging crude oil may be part of the deflationary spark for the metal to breach resistance of ,000 an ounce. If history is a guide, 300 rapidly declining commodities, a banking crisis, and Federal Reserve tightening pose an oxymoron and could trigger a Fed pivot buoying gold,” McGlone added.
Silver Could Post Much Larger Gains than Gold; Bitcoin Poised to Trade like Gold and U.S. Treasury Long Bonds
Richard Mills, the owner of aheadoftheherd.com, explained on Friday that he believes silver’s rise is understated. “Current indications show that silver is way undervalued,” Mills said. “Right now, on the morning of March 17, the gold-silver ratio is 88:1, meaning it takes 88 ounces of silver to buy one ounce of gold.” Mills added that when gold reached ,000 per ounce, “silver rallied to nearly an ounce, a 147% increase.” The investor said that the silver-gold ratio just fell from over 100:1 to just over 64:1, and he opined that a significant rise in silver’s value “could easily happen again.”
Many gold and silver proponents have high hopes for the precious metals going forward. Moreover, while McGlone believes gold will be affected by the current macroeconomic events, the market strategist also thinks the banking issues may be a defining moment for bitcoin (BTC). “Bitcoin may be progressing to trade more like US Treasury long bonds and gold as banks come under stress on the back of the bond-price collapse. Bitcoin sustaining above ,000 is a clear sign of divergent strength,” McGlone tweeted.
What are your thoughts on the current state of the global banking system and its potential impact on the value of gold, silver, and other assets like bitcoin? Do you think we’re headed for a major financial crisis, or is this just a temporary blip? Let us know in the comments section below.
Institutional Buyers the Likely Suspect Behind Latest Bitcoin Rally; What’s Next?
- Bitcoin has seen some turbulent price action throughout the past couple of days, but it has primarily favored bulls
- The cryptocurrency was able to rally from the lower-,000 region to highs of ,000 before it once again faced some intense selling pressure that sent it reeling lower
- The benchmark crypto has been able to find some strong buy-side support, however, and appears to be well-positioned to see further upside in the days and weeks ahead
- Where the market trends next will undoubtedly depend on Bitcoin. Any strong rejection or continuation of its recent downtrend could lead to deeper losses
- While sharing his thoughts on the current market, one analyst explained that institutional TWAP buying appears to be the driving force behind this rally
Bitcoin and the entire market have been flashing mixed signals to investors as of late, with BTC struggling to maintain its momentum as it nears the top of a long-held trading range.
Where the crypto trends next will undoubtedly depend, at least partially, on whether or not BTC can sustain the rebound it has seen following a dip earlier today.
One trader is noting that institutional buyers may be the source of strength over the past couple of days, as it appears there has been strong spot bidding going on.
Bitcoin Sees Strong Momentum as Bulls Absorb Latest Selloff
At the time of writing, Bitcoin is trading down marginally at its current price of ,350, which marks a notable decline from its recent highs of nearly ,000 set just a couple of days ago.
Earlier today, BTC’s price dipped as low as ,200, but the buying pressure here was quite significant and allowed the crypto’s price to rocket quite rapidly.
Analyst: Institutional Bidding Likely the Force Behind Latest Rally
One analyst explained that bidding for the crypto on Coinbase is likely the source behind the recent rebound, which may be due to an institutional investor TWAPing.
This seems to be a pattern with every dip, which heavily favors long positions.
“The market was overheated IMO but I spooked myself for no reason. Apes got bailed out by a strong Coinbase spot bid. Kinda looks like an institution was twapping again.”
Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.
Unless this heavy spot bidding suddenly disappears, the ongoing Bitcoin upsurge is likely just getting started.
Featured image from Unsplash. Charts from TradingView.
19-Year Old Suspect Charged With $1 Million Crypto Heist via SIM-Swaps
n A 19-year old Brooklyn resident faces a nine-count indictment for an alleged million crypto heist targeting at least 75 victimsn
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A Suspect Crypto Site Stole My Identity and Im Furious
A site called US Veteran Token looks to be using goodwill toward military vets to scam investors. And one of our bios was stolen to promote it.
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Brazilian Police Arrest Suspect for Money Laundering With Bitcoin
n The State Department of Drug Trafficking in Porto Alegre, Rio Grande do Sul, arrested a man for alleged money laundering using bitcoinn
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An Unlikely Suspect May Push Bitcoin’s Market Cap to Over $1 Trillion
Although the crypto markets are currently caught in a bout of sideways trading, many analysts and investors are closely watching some newly formed technical levels for insight into where Bitcoin (BTC) is heading next.
While looking through a long-term lens, however, the recent price gains the markets have incurred will (hopefully) be a drop in the bucket, and one prominent venture capitalist now thinks Bitcoin alone will be worth trillion during the next bull run.
VC: Bitcoin Bull Run Likely to Bring BTC’s Market Cap Up Towards Trillion
At the time of writing, Bitcoin’s market capitalization is roughly .4 billion, accounting for 52.8% of the aggregated crypto market’s total capitalization.
At the height of the late-2017 bull run, BTC’s market cap hit highs of 7 billion, nearly one-third of the coveted trillion level that would be a monumental milestone for the cryptocurrency – if it were ever to be reached.
Chris Burniske, a venture capitalist and partner at Placeholder VC, spoke about the likelihood of BTC’s market cap hitting trillion in a recent tweet, explaining that he believes it is a real possibility.
“Looking at the top 10 cryptoassets at the end of each year makes me think #bitcoin (blue) gets to trillion on its own in the next bull market,” he noted.
Looking at the top 10 cryptoassets at the end of each year makes me think #bitcoin (blue) gets to trillion on its own in the next bull market. pic.twitter.com/75YaGesYxR
— Chris Burniske (@cburniske) April 20, 2019
If this were to happen during the next bull run, Bitcoin’s price would have to surge to over ,000 per BTC – a possibility that many analysts think is highly probable.
Could Retirees Be the Unlikely Group that Pushes BTC’s Market Cap to Over Trillion?
Although most investors and analysts are looking towards institutional and corporate investors as the groups that have the ability to push the crypto markets to stratospheric prices, retirees in the United States may be an unlikely suspect that could have a huge impact on the markets.
A recently conducted survey found that nearly 90% of retirees over age 50 in the US either don’t know what Bitcoin is, or aren’t interested in learning more about the nascent technology.
This lack of interest amongst a group that controls a significant amount of US wealth likely stems from the technological complexity surrounding both the technology itself, and the methodological requirements for acquiring it.
Despite this, the advent of regulated and easy-to-use crypto exchanges, in combination with growing involvement in the industry from US regulatory authorities, may lead more retirees to direct a portion of their wealth into the crypto markets, which may act as fuel for the crypto market’s next parabolic price surge.
Featured Image from Shutterstock.
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Bitwise Tells US SEC That 95 of Volume on Unregulated Crypto Exchanges is Suspect
n 95 percent of volume on unregulated exchanges appears to be fake or non-economic in nature, an analysis from Bitwise Asset Management arguesn
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Taiwan Suspect Arrested for Stealing $3 Mln of Electricity to Mine Crypto
n A Taiwanese man has been arrested for allegedly stealing electricity worth over million to mine Bitcoin and Ethereum worth around .5 millionn
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