Why is Bitcoin dropping today?
Bitcoin (CRYPTO:BTC) tokens are worth about 15% more than they were at the start of 2021. Today, Bitcoin is dropping as investors digest both China's recent actions related to the cryptocurrency and a major bank's opinion on its future. Motley FoolHere's Why Bitcoin Dropped Today
Why is crypto going up?
Rising inflation and the potential for even more stimulus continues to push people to safe-haven assets. Increased adoption from payment applications like PayPal will give far more people easy access to cryptocurrency. Publicly traded companies purchasing Bitcoin shows a high level of confidence in its appreciation. InvestopediaCrypto News: Why Is Bitcoin's Price Rising?
Recently, popular pseudo-anonymous crypto analyst “KALEO” (@CryptoKaleo on Twitter) explained why he expects Bitcoin to outperform tech stocks and the Bitcoin price to go over $100K in the long term.
On June 17, KALEO told his 321K+ followers on Twitter that he expected to see in H2 2021 the Bitcoin price to go over $100K, the Ethereum price to fo above $10K, more institutional adoption, and more FUD.
As for 2022–2023, he said that he expected to se major regulation against crypto, the Bitcoin price to fall to below $50K, the Ethereum price to drop below $1K, and for other cryptoassets to once again suffer heavy losses.
Then, on June 20, KALEO took to Twitter again to tell BTC holders to be a little bit patient and not to panic-sell:
“I’ll repeat what I’ve been saying – you can attempt scalp trading in this range, there are some traders killing it, but 95% of you will chop yourselves to negative PnLs in the process. Or you can buy here, hold, be patient for a bit and thank yourself later. Bitcoin isn’t dead.
“That’s why I literally give zero sh*ts when we get these little dips. $100K+ is inevitable. These LTF moves are just distractions to make you forget the big picture.“
He then went on to say:
“Being HTF bearish here doesn’t make sense. The tech market has recovered from its spring depression back to new all time highs and is on the verge of exploding into price discovery. Why should we expect #Bitcoin to decouple and continue lower?
“Money is continuing to be printed at an unprecedented rate. Inflation isn’t going anywhere until the Fed decides to actually do something and raise rates. In my opinion, there’s no way that happens in the first year of Biden’s presidency. Terrible optics. When it’ll happen is When they realize the market is bubbling out of control (aka tech bubble 2.0 narrative). Bitcoin will catch up to tech, and once again will outpace it at the peak of the madness.“
Read full article at CryptoGlobe
26 June, 2021 - 04:10pm
Bitcoin formed a base above the $32,000 zone to start a fresh increase. BTC broke the $33,500 resistance the 100 hourly simple moving average to move into a positive zone.
The upward move gained strength above the 50% Fib retracement level of the downward move from the $36,200 swing high to $28,850 zone. There was also a break above a major bearish trend line with resistance near $33,500 on the hourly chart of the BTC/USD pair.
The pair is now trading nicely above $34,000 and the 100 hourly simple moving average. Bitcoin is now trading above the 76.4% Fib retracement level of the downward move from the $36,200 swing high to $28,850 zone.
If bitcoin fails to clear the $36,200 resistance or the $37,000 resistance, it could start a downside correction. An immediate support on the downside is near the $34,500 level.
The next major support is near the $34,000 level. The main support is now forming near the $33,500 level and the 100 hourly SMA. A downside break below the 100 hourly SMA could open the doors for a fresh drop towards the $32,000 zone in the coming sessions.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.
Major Support Levels – $34,400, followed by $33,500.
Major Resistance Levels – $36,200, $37,000 and $38,000.
Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.
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.
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© 2020 NewsBTC. All Rights Reserved.
26 June, 2021 - 10:00am
Kryptoin’s bitcoin ETF has been in the news since 2019 and may find approval alongside the cryptocurrency market’s success in 2021.
Institutional involvement in bitcoin and other cryptocurrencies has ramped up in recent years. The turning point for this change was introducing the world’s first bitcoin derivative products by Cboe and CME in late 2017.
In the years between then and now, several other reputable names in finance have also joined the cryptocurrency bandwagon. These include Intercontinental Exchange, the company that operates the New York Stock Exchange (NYSE).
Several crypto-oriented hedge funds have also emerged of late. The most notable being Grayscale Investments. A recent forecast estimated that hedge funds would increase its exposure to cryptocurrency to 7% within the next five years.
However, the average individual isn’t likely to approach a hedge fund or similar high-profile investment offerings.
Instead, they’re much more likely to invest in a retail or consumer-focused product, similar to how index funds work in the world of traditional finance.
To that end, a handful of North American companies have been trying to launch their own Exchange Traded Funds (ETFs) that track bitcoin or ethereum’s price instead of a stock market index.
The Kryptoin Bitcoin ETF is a financial product sponsored and launched by Kryptoin Investment Advisors LLC — a Delaware-based company.
The firm is headed by Jason Toussaint, who was once the CEO of World Gold Trust Services. Most notably, the firm is the sponsor of the world’s largest Gold ETF, the SPDR Gold Shares (GLD).
Toussaint has also taken up ETF and investment roles at Morgan Stanley and JP Morgan Asset Management in the past.
If approved, Kryptoin’s ETF would be listed on the CBOE BZX exchange, according to the firm’s S-1 filing with the SEC on April 9.
Notably, prior applications indicated that the firm was initially looking to be listed on the NYSE instead.
According to a filing published by the United States Securities and Exchange Commission (SEC), the ETF will trade under the KBTC ticker symbol.
In addition, the firm has stated that Gemini, the cryptocurrency exchange owned by the Winklevoss twins, will act as its custodian for any BTC acquired for the ETF. The Bank of Mellon New York, meanwhile, will serve as Kryptoin’s transfer agent.
On April 23, the SEC acknowledged that it had received Kryptoin’s ETF application and said it would begin the review process.
At that point, the commission had 45 days to either approve, deny or extend the review time for the application. Thus, in total, the agency cannot take longer than 240 days to make a decision.
Since the cryptocurrency market trades 24/7 and across many exchanges worldwide, fund operators need to settle on an accurate and acceptable rate to their investors.
In its S-1 filing with the SEC, Kryptoin disclosed that it had been licensed to use CME’s Bitcoin Reference Rate (BRR) to measure bitcoin’s price.
Using CME’s BTC Reference Rate means that Kryptoin’s ETF will update its prices once a day. This instead of tracking the cryptocurrency market in real-time.
The metric considers several factors, including the prevailing trading price at large cryptocurrency exchanges over the preceding time period.
More specifically, a volume-weighted median trade price is calculated across Bitstamp, Coinbase Pro, itBit, Kraken, and Gemini to determine the true price of bitcoin.
As a result of this diversification, CME’s Bitcoin price considers billions of dollars worth of trading volume rather than just the spot price on any one cryptocurrency exchange.
Having said that, a daily snapshot of bitcoin’s price is a double-edged sword.
On the one hand, it shields retail investors from sudden changes in bitcoin prices. This solves the common complaint of volatility.
On the other hand, however, it also prevents investors from buying or selling at opportune moments. Still, given the passive nature of most ETF investors, it’s likely that Kryptoin’s market research has found that this approach is the best middle ground.
As of June 2021, the SEC is currently evaluating three separate ETF applications. Namely those from VanEck, WisdomTree, and Kryptoin.
A total of nine applications are sitting with the SEC, including a growing appetite for regulated financial products in the United States.
While Kryptoin had first submitted its bitcoin ETF application in October 2019, it failed to convince the SEC at the time.
This was consistent with all other applications as well. The leadership said that operators did not sufficiently prove they could combat fraud and market manipulation in the cryptocurrency market.
Whether the SEC will approve Kryptoin’s ETF remains to be seen. However, many believe that the fund will be approved alongside others to ensure that one company does not get a head start.
In fact, this is exactly what happened with Grayscale Investments. The aforementioned hedge fund that first began accepting clients in 2019.
The Grayscale Bitcoin Trust (GBTC) routinely trades at a significantly higher price than the underlying asset, bitcoin.
While the difference is often around the 5% to 10% mark, it has exceeded 30% on occasion as well. This is because Grayscale dominated the regulated financial offerings market and had a limited number of competitors.
Today, Grayscale’s GBTC premium is much lower. This indicates that the market has finally caught up with the demand.
But, the same will eventually happen in the ETF space. Especially now with the increasing interest from multiple firms.
As for Kryptoin in particular, it is notably among the few ETFs that have listed all service providers in its application to the SEC.
However, the SEC has not declined any ETF for lack of credibility in the past. Instead, it alleges that the crypto market’s overall lack of transparency is a bigger issue.
A lot has changed since the SEC’s string of bitcoin ETF rejections in 2019 and 2020, though.
A member of the SEC, Hester Peirce, has stated that approval is long overdue. In an interview earlier in 2021, Peirce said,
“It’s well past time that we approve an exchange-traded product in Bitcoin. We have a lot more information now than we did. I’m hopeful that because we have a new chairman and one that’s interested in this space, we’ll have a chance to take a fresh look.”
On June 9, 2021, the SEC posted a notice stating that it would need additional time to review Kryptoin’s ETF. This is a strategy the agency has used several times, with WisdomTree’s ETF being delayed in the same month.
Nevertheless, the decision to approve or deny these applications will be made by the end of this year. For now, the SEC has invited public discourse on the ETF applications. Kryptoin’s ETF has received two such comments.
One individual has submitted a lengthy rebuttal against the growing demand for cryptocurrency ETFs. They ended with, “There is something more liquid than bitcoin, and it is the dollar. You can never pay tax with bitcoin.”
Meanwhile, the other comment speaks favorably of bitcoin ETFs. It pointed out that the general public deserves a low-cost and risk-free adoption method. After all, large firms and hedge funds can already hold cryptocurrency without restrictions.
With this much contention in public view, the SEC’s decision will be a landmark and historic moment in bitcoin history.
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