Bitcoin Trades Above $50000 as Cryptos Gain Steam. What's Behind the Rally.

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Barron's 03 September, 2021 - 12:27pm 44 views

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Cryptocurrencies’ hot summer shows no signs of cooling off.

Bitcoin (BTC) was trading around $50,500 on Friday, up 1.7% in 24 hours for a gain of more than 30% over the past month. Ethereum (ETH) was hitting record highs with a gain of 5%, topping $4,000 for the first time. Other cryptos are rallying too: Solana (SOL), Litecoin (LTC), and Avalanche (AVAX) had all gained more than 10% over the last 24 hours.

The rally is lifting crypto-related stocks even as regulatory pressure mounts on both the state and federal levels. Coinbase Global (ticker; COIN) was up 2% on Friday. The Global X Blockchain ETF (BKCH), a basket of crypto-related companies, was ahead 4.3%.

Bitcoin appears to have broken through technical resistance at $50,000. Its next level of resistance is at $58,000, according to Fundstrat Global Advisors.

Some large investors appear to be buying more Bitcoin. Bill Miller, the veteran value-fund manager, had amassed 1.5 million shares of the Grayscale Bitcoin Trust (GBTC) in his Miller Opportunity Trust mutual fund (LGOAX), according to securities filings. That equates to roughly 1,400 underlying Bitcoin tokens, worth about $70 million at recent prices. Still, the fund hasn’t been a strong performer this year, gaining 10% and trailing behind 98% of its peers, according to Morningstar.

Ethereum, meanwhile, is benefiting from a technical upgrade to its underlying network a month ago. According to Fundstrat, over 180,000 ETH tokens—about $720 million at recent market prices—have been “burned,” or taken out of supply since then, resulting in pressures that may be lifting the price.

Crypto apostles like Jack Dorsey, CEO of Twitter (TWTR) and Square (SQ), are expanding their investments, aiming to build out crypo-related revenue streams. Dorsey said on Twitter last week that Square is building an “open-platform decentralized exchange” for Bitcoin. The platform, dubbed TBD, will make it easier to fund a noncustodial Bitcoin wallet anywhere in the world, expanding access from current crypto on-ramps like Square’s Cash App or Coinbase, according to a tweet by Mike Brock, who is leading the project for Square.

Some small banks are also getting into cyrpto. Vast Bank, based in Oklahoma, has become the first federally chartered lender, backed by the Federal Deposit Insurance Corp., to offer crypto banking, according to Vast CEO Brad Scrivner. The bank offers crypto trading on a mobile app, acts as a custodian, and offers insurance on crypto assets through Coinbase.

Yet the financial investments are occurring in the face of a tougher regulatory climate. The top U.S. securities regulator, Gary Gensler, chairman of the Securities and Exchange Commission, is warning crypto companies not to launch products or services without registering first with regulators, saying they shouldn’t come “begging for forgiveness” after launching without doing so.

The SEC has launched an investigation of Uniswap Labs, developer of one of the largest decentralized finance, or DeFi, exchanges, according to a report in The Wall Street Journal. The SEC’s enforcement attorneys are seeking information about how investors use Uniswap and its marketing practices, according to the Journal. Uniswap said it is “committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry.”

Gensler also appears concerned about DeFi—decentralized computer networks that may be used for a variety of financial transactions and trading—indicating they may be in for more regulatory actions, according to his recent public comments.

State securities regulators are also circling, looking at crypto-lending platforms like BlockFi, where investors can earn high yields on their digital assets. Regulators in New Jersey have ordered BlockFi to stop offering new interest-bearing accounts, though the effective date has been postponed to Sept. 30.

BlockFi said in a statement it believes its accounts are “lawful and appropriate for crypto market participants.”

Prices for Bitcoin may be due for a pause. September has been the only month with a negative average return since 2011, according to Fundstrat. The crypto has fallen an average 7% in the month. Prices have historically rebounded after that, averaging 13% gains in October, 53% in November, and 14% in December.

The pattern is one reason Fundstrat is urging investors to view any pullbacks as buying opportunities.

“We continue to maintain a bullish stance through the remainder of the year,” its analysts wrote in a note this week. The Fed’s more dovish stance lately should support ample liquidity for crypto assets as investors leverage up, Fundstrat says. While the data trends can quickly change, “we think the setup for a prolonged bull run remains intact,” it said.

Write to Daren Fonda at daren.fonda@barrons.com

Cryptocurrencies’ hot summer shows no signs of cooling off.

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This Perspective Shows What The Last Leg Up In Bitcoin Looks Like

bitcoinist.com 03 September, 2021 - 03:00pm

Bitcoin price is back at $50,000. The market is still undecided about the ultimate direction the cryptocurrency moves next. But according to a repeating fractal pattern that has appeared again and again, the only direction for the next several weeks could be up.

Here is a closer look at a side-by-side comparison that has appeared several times over, and the consistencies with the current crypto market cycle.

Is Bitcoin bullish or bearish? That is the question so many across crypto are wondering. There are some signs that a bear market could be starting, but bullish sentiment leftover from the last major rally might prove to be too strong for bears to take control just yet.

What goes up, must ultimately come down so bears will have their reign of terror in crypto once again. But for now, a fractal says that bulls are in charge.

September is a month that has historically closed red, but bulls are ready for shock and awe. That is because the last leg up of the bull market might be here.

A large pole-like structure forms after the initial breakout, followed by brief period of consolidation. A second, mid-impulse selloff takes place, making market participants believe the cycle has finished, but are taken off-guard when the final wave rises to highs.

Related Reading | New To Bitcoin? Learn To Trade With The NewsBTC Trading Course!

It is at the point where the market becomes convinced of the only up price action that the trend reverses and bears will regain the upper hand. When they do, a proper bear market should arrive.

The two middle impulses are the early 2019 and late 2020 rallies, respectively, while the far right is the final stretch of the 2017 bull market – all of which exhibit key similarities in the structure and support levels in the price action that followed.

The above chart is only worth considering if you believe that fractals exist in Bitcoin. They exist elsewhere all around nature. Fractals follow the same repeating patterns regardless of size, so why can’t the same work in cryptocurrency price action?

I'm Tony Spilotro. Behind the pseudonym, I'm a digital media executive and global remote work leader with a decade of content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter and feel free to drop me a line if you would like to work together.

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Fox Business 03 September, 2021 - 12:25pm

Should You Buy Bitcoin at $50,000? | The Motley Fool

Motley Fool 03 September, 2021 - 09:20am

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It's 10:05 a.m. EST on Sep. 3 and Bitcoin's (CRYPTO:BTC) price is hovering right around $50,000. The leading crypto asset has staged an epic comeback to the upside after languishing below $40,000, and even briefly below $30,000, throughout the summer. 

Volatility is par for the course when it comes to cryptocurrencies. However, it's still helpful to make a game plan for when crypto prices move rapidly in either direction. Since Bitcoin is currently on an uptrend, it's a perfect time to ask yourself if it is worth buying -- even at a higher price tag.

Bitcoin has faced its share of criticism from reputable investors who see it as a scheme to make money. It's common to attribute Bitcoin's success solely to speculation. Even Charlie Munger, Warren Buffett's right-hand man, has been vocal about his disdain for investing in Bitcoin. Putting your hard-earned savings in contrarian asset classes is difficult when investors you admire say it's a bad idea.

It goes without saying that greed and speculation have played a large role in Bitcoin's ascension. But saying they are the only reasons behind Bitcoin's rise is a bit of a cop-out.

Amazon has been a great stock because it redefined e-commence and leads one of the largest cloud computing platforms. Netflix spearheaded a paradigm shift in home entertainment. Yes, people ultimately bought these stocks because they thought they could make money off them. But the real reason Amazon stock and Netflix stock have done well is that the companies themselves have grown in influence and value. Bitcoin doesn't have a management team or quarterly financials. But it does have core attributes that give it inherent worth.

Cathie Wood, CEO of Ark Invest and a big supporter of Bitcoin, believes that Bitcoin can grow in value over time for the simple reason that more and more companies will carry it on their balance sheets as both an investment and as a hedge against inflation. Bitcoin's underlying value stems from its security, track record of fending off cyberattacks, global transferability, and independence from fiat currency. A capped supply of 21 million tokens, over 90% of which are already in circulation, means that the added supply from mining will soon become negligible. Companies, especially those headquartered in countries with unstable fiat currencies of their own or difficulty accessing U.S. dollars, are finding value in Bitcoin due to its inherent scarcity. Compound this viewpoint on a global scale, and we could see strong underlying demand for Bitcoin from companies around the world for a very long time.

No one can tell you what Bitcoin is worth now or what it could be worth in the future. Valuing Bitcoin is far more abstract than the already difficult task that analysts embark on when setting price targets on a stock.

A simpler way to think about Bitcoin, and other crypto assets like Ethereum (CRYPTO:ETH), is to ask yourself if the story is played out. If Bitcoin were a baseball game, what inning are we in? Is there more room to run? Or is the market saturated and it's all downhill from here?

Even a surface-level glance at the crypto market would tell you that it's still fairly rough around the edges. A lot of the reasons for Bitcoin's price appreciation over the last few years have to do with the asset class becoming more sophisticated in terms of institutional adoption, accessibility, and the potential for regulation. These themes look to be early in their development. However, that's a discussion open to interpretation.

If an investor thinks that the crypto story is played out, then it's OK to simply avoid the asset class altogether. And since Bitcoin has gone up in price over the last few months, there's even less incentive to buy.

Every investor has a different reason why they would buy in the first place. And if they haven't already, maybe they have a reason why they would prefer to buy sometime in the future. Like any asset, it's much easier to buy something if you understand how it works. Getting a basic understanding of the Bitcoin mining process and a summary of what's been happening over the last few years in the crypto space can provide the essential due diligence needed to invest, or not invest, with confidence.

Regardless of the price, it's best not to think about buying Bitcoin because you think it will go up, but rather, buying Bitcoin if you think its influence will grow. It's tough to answer that question without doing some homework. Even so, there are good arguments on both sides about whether Bitcoin can grow from here. Therefore, before deciding if Bitcoin is worth buying at $50,000, it's best to ask if Bitcoin makes sense for you in the first place.

Bitcoin, Ethereum, and high-yield stablecoins have different characteristics that could be better suited for an investor based on their risk tolerance. So, if Bitcoin isn't a good option, there's a chance a different crypto asset could be a better fit. 

Bitcoin's collapse in May and June had little to do with fundamentals, though China's regulatory crackdown on cryptocurrencies did exacerbate the price slide. That said, the ultimate level to which the price fell was nothing but pure speculation. Similarly, the cryptocurrency's rebound over the last month is simply market volatility. Zooming out, not much has changed about the investment thesis in Bitcoin since its initial collapse in May.

Investors interested in Bitcoin could benefit from keeping track of regulatory updates, institutional moves such as PayPal's decision to open crypto trading for its U.K. clients, and other news that adds to the long-term growth story. Ultimately, Bitcoin's success over the next few decades depends on its stickiness in financial markets around the world. If that's something an investor believes in, then there are valid reasons to buy Bitcoin, even at $50,000.

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Bitcoin price tops $50K in September push

USA TODAY 03 September, 2021 - 08:41am

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Bitcoin is hitting September at a good clip. 

The largest cryptocurrency by market value rose above the $50,000 level Friday for only the fourth time in the last four months. Bitcoin is at the highest intraday level since Aug. 23, 2021, when it hit $50,477.86.

Other popular cryptocurrencies, such as Ethereum and Cardano, are also up big in the first days of September. 

Ethereum, like Bitcoin, hit its highest price since May on Friday morning, reaching $3981.53 per Ether. 

Cardano, the third-largest cryptocurrency by market cap, reached an all-time high of $3.10 per ADA on Sep. 2 and has since been hovering around $3.

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BTC price dips to test $48K ‘springboard’ for potential new Bitcoin bull run

Cointelegraph 03 September, 2021 - 03:07am

A brief but timely reversal sees BTC/USD attempt to establish a firm foundation for its next stage of bullish upside.

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping to lows of $48,350 on Bitstamp overnight before recovering.

That level represents an important zone to hold, trader and analyst Rekt Capital said Friday, and success will allow a solid attack on resistance at $51,000 and beyond.

“BTC is still in the process of retesting this blue diagonal as support,” he commented on an accompanying chart.

As Cointelegraph reported, beating out this resistance should lead to fairly swift BTC price gains, given the lack of selling friction for much of the remaining $50,000–$60,000 corridor.

“To me, Bitcoin still has to break that $51K level here for further bullish momentum,” Cointelegraph contributing analyst Michaël van de Poppe added Thursday.

He noted that while BTC/USD ranges, altcoins should continue to benefit.

Elsewhere, excitement was brewing about the bullish underlying metrics that have precluded the latest Bitcoin price run-up.

In focus, Friday was hash rate, the comeback of which has all but mitigated the impact of the May Chinese miner rout.

“Bitcoin’s hash rate recovery is perhaps the most bullish chart available today,” celebrated commentator Vijay Boyapati argued.

The hash rate, which joins difficulty in continuing its upward path, measured an estimated 129.2 exahashes per second (EH/s) at the time of writing, already up 5 EH/s from the start of the week.

Five Bitcoin Price Charts That Suggest Bulls Have Little To Fear

NewsBTC 02 September, 2021 - 12:17pm

Bitcoin price is back at $50,000 and until either support at $30,000 is broken to the downside or a new all-time high is set, the direction of the market won’t be as distinguishable.

Fundamentally, the network continues to grow, and sentiment remains high surrounding the cryptocurrency space. Better yet for bulls, here are five outrageously bullish charts filled with technical signals that suggest that bulls have very little fear about what could come in the months ahead.

For those looking for evidence of a bear market, you won’t find it on the chart above. After the peak was put in December 2017, Bitcoin price immediately plummeted below the line to kickstart the most recent bear market. The weekly RSI is back holding above this line – which following the December 2013 peak was lost and a bear market began.

A parabolic curve supports the price action in all examples above and below. Also in the chart directly below, the Ichimoku shows that during past bearish phases, Bitcoin price action sliced through a steep and thin cloud, while price action today is well above the cloud on weekly timeframes.

Bitcoin is currently above the baseline (Kijun-Sen) and conversion line (Tenken-Sen), but the two lines are still crossed bearish. A bull cross driven by another impulse could do the trick.

Elliott Wave International recently shared a video discussing Bitcoin and a potential fifth wave brewing. Packaged with the video was a detailed explanation of the study where Elliott Wave Theory was compared to a “roadmap” that could potentially be followed.

For added measure, the Parabolic SAR is turned on, highlighted in green for the sake of showing a new uptrend could be in its early stages. But the real meat and potatoes of the chart are the waves and their structure.

Drawn from where Bitcoin broke down to bear market lows to across both major local highs since the bottom was put in, we have a potential target for where a wave five might end. According to Elliott Wave Theory,  wave two and four alternate in length and severity, and the third wave is typically the longest, strongest, and easiest to recognize.

Wave five is usually around the same length in power and duration as the first wave – and also just so happens to line up with the previous mid-cycle pullbacks. If accurate, the cryptocurrency could run around 325% or higher from the bottom around $30,000 and bring the high of this cycle to around $125,000 to $150,000 per BTC.

Fifth waves can extend, however, and match or even exceed the length of a wave three, so truly any outcome is possible with an asset with this much potential application.

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

© 2021 NewsBTC. All Rights Reserved.

© 2021 NewsBTC. All Rights Reserved.

Five Bitcoin Price Charts That Suggest Bulls Have Little To Fear

Cointelegraph 02 September, 2021 - 12:17pm

Bitcoin price is back at $50,000 and until either support at $30,000 is broken to the downside or a new all-time high is set, the direction of the market won’t be as distinguishable.

Fundamentally, the network continues to grow, and sentiment remains high surrounding the cryptocurrency space. Better yet for bulls, here are five outrageously bullish charts filled with technical signals that suggest that bulls have very little fear about what could come in the months ahead.

For those looking for evidence of a bear market, you won’t find it on the chart above. After the peak was put in December 2017, Bitcoin price immediately plummeted below the line to kickstart the most recent bear market. The weekly RSI is back holding above this line – which following the December 2013 peak was lost and a bear market began.

A parabolic curve supports the price action in all examples above and below. Also in the chart directly below, the Ichimoku shows that during past bearish phases, Bitcoin price action sliced through a steep and thin cloud, while price action today is well above the cloud on weekly timeframes.

Bitcoin is currently above the baseline (Kijun-Sen) and conversion line (Tenken-Sen), but the two lines are still crossed bearish. A bull cross driven by another impulse could do the trick.

Elliott Wave International recently shared a video discussing Bitcoin and a potential fifth wave brewing. Packaged with the video was a detailed explanation of the study where Elliott Wave Theory was compared to a “roadmap” that could potentially be followed.

For added measure, the Parabolic SAR is turned on, highlighted in green for the sake of showing a new uptrend could be in its early stages. But the real meat and potatoes of the chart are the waves and their structure.

Drawn from where Bitcoin broke down to bear market lows to across both major local highs since the bottom was put in, we have a potential target for where a wave five might end. According to Elliott Wave Theory,  wave two and four alternate in length and severity, and the third wave is typically the longest, strongest, and easiest to recognize.

Wave five is usually around the same length in power and duration as the first wave – and also just so happens to line up with the previous mid-cycle pullbacks. If accurate, the cryptocurrency could run around 325% or higher from the bottom around $30,000 and bring the high of this cycle to around $125,000 to $150,000 per BTC.

Fifth waves can extend, however, and match or even exceed the length of a wave three, so truly any outcome is possible with an asset with this much potential application.

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

© 2021 NewsBTC. All Rights Reserved.

© 2021 NewsBTC. All Rights Reserved.

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