Bitcoin bull outlines 7 steps to more fiscal stimulus and higher BTC prices

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Cointelegraph 20 July, 2021 - 09:30am 12 views

When is grayscale unlock?

On July 18, the Grayscale Bitcoin Trust (GBTC) will be unlocking shares valued at 16,240 BTC. Economic TimesCrypto Week at a Glance: Crypto market feels the blues as GBTC shares unlock

Bitcoin's drop below $30,000 has sparked worries that it is heading to $20,000 next, but is such a massive drop feasible against the backdrop of current macro fundamentals?

While the cryptocurrency's move downhill prompted many analysts, including Luno exchange's Vijay Nayyar and Kinetic Capital's Jehan Chu, to predict a further depressive move below $25,000, Anthony Pompliano offered a contrasting bullish outlook.

The Morgan Creek Digital Assets founder pitted risk-on markets against the fears of the fast-spreading Delta variant of COVID-19. He noted that governments, on the whole, would introduce "more aggressive monetary stimulus" programs should the new coronavirus strain spread at the scale of its Alpha version.

"History is not necessarily an indicator of the future, but it is hard to imagine a scenario where if we had a second wave of lockdowns, we wouldn’t also get more aggressive monetary stimulus efforts," Pompliano wrote in a newsletter.

In saying so, Pompliano envisioned that the road to more dollar liquidity would like come in seven successive stages, as shown in the snapshot below:

Pompliano's statements appeared as the Bitcoin market fell in sync with other risk-on assets across the globe on July 2.

For instance, all three Wall Street indexes — the S&P 500, the Nasdaq Composite and the Dow Jones Industrial Average — logged their steepest declines in weeks. Also, gold fell to as low as $1,795.12 an ounce but later recovered to $1,812.145 an ounce.

Meanwhile, United States government bonds rallied alongside the dollar, showing that investors are heading for safe-havens amid the global market turmoil.

Behind the rout, global media outlets reported, was a growing list of worries about economic recovery. The Delta variant of COVID-19 has spread rapidly, reigniting the dialogue in several countries about whether authorities should reimpose lockdown and curb economic activity.

"The hope was that [COVID-19] vaccines would provide us with the endgame," Mohammed Kazmi, a portfolio manager at Union Bancaire Privee, told the Financial Times. "Now investors are looking at the UK and there’s a bit of fear with regards to reopening so aggressively when cases are still so high."

Kazmi added that markets are now stepping back from hopes of a V-shaped recovery and are feeling uncertain about the future of their economies.

Pompliano's comments also appeared as the Federal Reserve flirted with the idea of hiking its near-zero lending rates by the end of 2023 to curb rising inflation.

Additionally, several central bank officials also favored the idea of tapering their aggressive $120 billion per month asset purchase program, although Fed Chairman Jerome Powell clarified that the Fed intends to run the quantitative easing policy hot until the U.S. economy recovers completely.

James Wo, founder and chief executive officer of global blockchain and digital asset investment firm Digital Finance Group also noted that even though the Bitcoin industry has encountered downside volatility during this current market cycle, the fundamentals that have driven the value of its and other markets higher all across 2020 continue unaffected. He added:

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read full article at Cointelegraph

Bitcoin Falls Below $30,000 and Crypto Stocks Slide

TheStreet 20 July, 2021 - 05:49am

Stocks related to cryptocurrencies also declined, extending Monday's losses.

At last check, Bitcoin was down 3.8% at $29,494, while Ethereum, the world’s second-biggest digital currency, was down 3.95% at $1,741.10. XRP was down 6.3%, Cardano was down 7.98% and Stellar was down 6.58%. Meme token currency Dogecoin was down 5.1%.

Cryptocurrency-exposed stocks were also down in premarket trading Tuesday, extending Monday’s losses, with Coinbase  (COIN)  down 2.3%, Marathon Digital  (MARA) - Get Report down 7.2%, Riot Blockchain  (RIOT) - Get Report down 6.39% and MicroStrategy  (MSTR) - Get Report down 4.56%.

Stocks plunged and Treasury yields surged Monday as investors reassessed both the U.S. and global economic outlook and the prospects for corporate earnings amid the rapid surge in the delta variant of COVID-19, which has caused infections to skyrocket in the U.K. and other parts of Europe as well as in the U.S.

While Bitcoin and other digital currencies have been viewed by some as a safe place to park capital amid broader economic uncertainty and market volatility, Bitcoin’s lagging performance this year as well as questions surrounding how cryptocurrencies are priced has pushed values considerably lower. Year to date Bitcoin has declined 2%.

Officials around the world are also intensifying scrutiny of cryptocurrencies. On Monday, Treasury Secretary Janet Yellen pushed top U.S. financial regulators to accelerate their consideration of new rules to police so-called stablecoins.

“I applaud those with the energy to continue asking the hard questions and applying the lens of rigorous skepticism all technology should be subject to,” Dogecoin creator Jackson Palmer wrote. "New technology can make the world a better place, but not when decoupled from its inherent politics or societal consequences."

Bitcoin drops back below $30,000, heads toward new low for the year

CNBC 19 July, 2021 - 10:56pm

The price of bitcoin dropped below $30,000 late Monday night for the first time since Jun. 22, dragging other digital coins lower with it.

Bitcoin is trading in the $29,000 range, about 3% lower on the day, according to Coin Metrics. Ether is down 1.25% and XRP fell 4%. Even with the plunge bitcoin is up 2.3% for the year, according to CoinDesk data. Ether and XRP are both up about 140% for the year.

The plunge in bitcoin came after a big sell-off in global stock markets. On Monday, the Dow Jones Industrial Average had its worst day since last October.

"There's been a broad sell-off in global markets, risk assets are down across the board," Annabelle Huang, partner at cryptocurrency financial services firm Amber Group, said.

There are "concerns of the quality and strength of economic recovery" and "broader risk assets turned weaker including high yields," Huang said. "Coupled with recent BTC (bitcoin) weakness, this just sent crypto market down further."

At one point early Tuesday, about $89 billion was wiped off the entire cryptocurrency market in a 24-hour period. Since bitcoin's all-time high of nearly $65,000 in mid-April, its price has plunged over 50%.

A renewed crackdown in China on cryptocurrency trading and mining has weighed on the bitcoin price.

Major regions responsible for bitcoin mining in China have forced operations to shut down. Bitcoin mining is an energy-intensive process that facilitates bitcoin transactions and creates new coins.

China's central bank has also spoken to finance and fintech companies reminding them not to offer crytpo-related services to customers.

China banned local cryptocurrency exchanges in 2017 forcing them to move offshore. That did not stop Chinese traders buying and selling digital coins. But the tough actions this year from Chinese regulators has looked to further tighten restrictions on trading and mining.

"All signals are red as BTC (bitcoin) continues to be weighed down by China's ultimate crypto ban and worsening macro economic conditions from a surge in covid variants," said Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital.

Regulators around the world are also looking more closely at the crypto space.

Binance, the world's largest cryptocurrency exchange, last month was barred by U.K. authorities from carrying out any regulated activities in the country. Regulators in Japan, Canada and Thailand have also issued warnings about Binance.

"In general we're seeing more regulatory focus on crypto and bitcoin," said Vijay Ayyar, head of business development at cryptocurrency exchange Luno.

Bitcoin's fall below $30,000 could be important, according to Ayyar, who said the sell-off could go lower to test the $22,000 to $24,000 level.

From then on, bitcoin could trade in a range.

"I would see bitcoin between 20-40K ($20,000 to $40,000) for a while now before any bullishness returns," Ayyar said.

Kinetic Capital's Chu also sees potential selling ahead.

"Q1's crypto market momentum has stalled and is threatening further reversal potentially below the $25K levels," Chu said.

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