In an extensive blog post about potential major trends in the cryptocurrency space in 2020, Coinbase CEO Brian Armstrong said that hundreds of institutional investors are already investing in the crypto market.Throughout 2019, with the launch of Bakkt, much of the year’s narrative surrounded the entrance of institutions into the crypto sector.According to the CEO of one of the biggest cryptocurrency exchanges globally, institutions are already actively investing in the emerging asset class and the trend is likely to continue throughout 2020.Will institutions further bolster the crypto market in 2020?Prior to 2019, institutional investors only really had Bitcoin Investment Trust (GBTC) by Grayscale and CME Group’s futures market to invest in bitcoin.There were not many options available to high net worth individuals, funds, and investment firms to invest in the crypto market securely with insurance and custodians.Starting mid-2019, a growing number of exchanges and regulated service providers have started to provide custodial solutions targeting institutions. It led to the establishment of a more efficient and stable environment for institutions to invest in cryptocurrency.Armstrong said:“We’ve already started to see small institutions enter the cryptocurrency space. Hundreds have joined Coinbase Custody in the past 18 months. I would expect this rapid growth to continue in 2020, with larger and larger institutions coming on board. Eventually just about every financial institution will have some sort of cryptocurrency operation, and most funds will keep a portion of their assets in cryptocurrencies, partially due to the uncorrelated returns.”Both Bakkt and cryptocurrency exchanges offering custodial solutions are yet to see large volumes, mostly because it takes time for institutional infrastructure to become more established.“Bakkt will be likely first a trickle and then a flood. The reality is that most regulated futures contracts get low adoption on day1 simply b/c not all futures brokers are ready to clear it, many ppl want to wait and see, the tickers are not even populated on risk systems, etc,” Three Arrows Capital CEO Su Zhu said.Independent funds seeing more institutional inflowDespite a noticeable decrease in deal value in the latter half of 2019, in October of last year, Anthony Pompliano of Morgan Creek Digital said that the firm’s crypto fund secured $60 million from institutional investors.Morgan Creek Digital crypto fund raised $60 million in October 2019 from institutions (Source: Pomp Twitter)Independent crypto funds, on top of exchange custodial platforms and futures markets, seeing an inflow of capital from institutions could be another catalyst that adds to an increase in institutional adoption in the upcoming 12 months.
Archives for January 5, 2020
Bitcoin might be starting a strong bullish wave above $7,500 against the US Dollar. However, BTC bulls must be careful considering a cluster of resistances between $7,700 and $8,000.Bitcoin price is gaining traction above the $7,400 and $7,500 resistance levels against the US Dollar.There are many hurdles on the upside, starting with $7,640 and up to $8,000.There is a connecting bullish trend line forming with support near $7,360 on the hourly chart of the BTC/USD pair (data feed from Kraken).A continuous failure near $7,700 and $7,800 could spark another bearish wave.Bitcoin Price Approaching ResistanceIn the past few sessions, there was a decent increase in bitcoin above the $7.300 resistance against the US Dollar. Moreover, BTC settled above the $7,400 level and the 100 hourly simple moving average.Recently, there was a break above a short term bearish trend line with resistance near $7,455 on the hourly chart. It opened the doors for more gains above the $7,500 resistance.The price traded to a new 2020 high at $7,572 and it is currently correcting lower. An initial support on the downside is near the $7,500 level. Besides, the 23.6% Fib retracement level of the recent rise from the $7,301 low to $7,572 high is also near the $7,500 area.On the upside, an immediate resistance for bitcoin is near $7,580 and $7,600. The first key resistance is near the $7,640 level. More importantly, there is a cluster of hurdles between the $7,700 and $8,000 levels.Therefore, the bulls need to be careful as the price approaches the key $8,000 barrier. If there is a successful break above the $8,000 resistance, the price could surge towards $8,500 and $8,800.What if BTC Fails Near $7,700 and $7,800?As mentioned, there are many hurdles between $7,700 and $8,000. So, it’s hard to discard chances of a bearish reaction below $7,500 and $7,450.The first main support is near the $7,400 level, followed by a connecting bullish trend line near $7,360 on the same chart. If the bears succeed in pushing the price below the trend line, there is a risk of a larger pullback towards the $7,200 support area.Bitcoin PriceLooking at the chart, bitcoin price is rising steadily towards many barriers on the upside, starting with $7,640. If the bulls remain in action, we are likely to witness a break above $8,000. If not, the price might revisit $7,200.Technical indicators:Hourly MACD – The MACD is currently losing momentum in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is correcting lower towards the 50 level.Major Support Levels – $7,450 followed by $7,360.Major Resistance Levels – $7,580, $7,640 and $7,780.
Ripple is grinding higher above $0.1950 against the US Dollar, whereas bitcoin and Ethereum surpassed key hurdles. Therefore, XRP price is likely to climb above $0.2000 and $0.2100.Ripple price is showing positive signs above the $0.1920 resistance against the US dollar.Bitcoin rallied above $7,500, opening the doors for more gains in the near term.There is a key rising channel forming with support near $0.1940 on the hourly chart of the XRP/USD pair (data source from Kraken).There are high chances of a crucial upside break above the $0.2000 resistance area.Ripple Price Could Surpass $0.2000Recently, there were strong gains in bitcoin and Ethereum above $7,500 and $135 respectively against the US Dollar. It sparked bullish moves in XRP above the $0.1900 resistance area.Moreover, there was a break above $0.1940 and the 100 hourly simple moving average. Ripple price even surpassed the 76.4% Fib retracement level of the downward move from the $0.1974 high to $0.1937 low.It seems like the price may soon surpass the $0.1974 swing high in the near term. The next key resistance is near the $0.1985 level. It coincides with the 1.236 Fib extension level of the downward move from the $0.1974 high to $0.1937 low.In the mentioned case, there are high possibilities of an upside break above the main $0.2000 resistance area in the near term. The next target for the bulls above $0.2000 might be $0.2120 since it represents a major pivot area.Any further gains is likely to lead the price towards the $0.2250 resistance area in the coming days.What If XRP Fails Near $0.2000?If ripple fails to surpass the $0.2000 resistance area, there could be another downside correction. An initial support is near the $0.1950 level. However, the main support is near the $0.1940 level.Additionally, there is a key rising channel forming with support near $0.1940 on the hourly chart of the XRP/USD pair. If there is a downside break below the $0.1940 support, the current bullish bias is likely to invalidate in the short term.Ripple PriceLooking at the chart, ripple price is clearly trading with a positive bias above the $0.1920 and $0.1940 support levels. If the bulls remain in action above $0.1980, the price is likely to surge above $0.2000 and $0.2050.Technical IndicatorsHourly MACD – The MACD for XRP/USD is slowly moving into the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 50 level.Major Support Levels – $0.1950, $0.1940 and $0.1900.Major Resistance Levels – $0.1985, $0.2000 and $0.2050.
Ethereum gaining bullish momentum above key hurdles versus the US Dollar, similar to bitcoin. ETH price is likely to accelerate higher towards $145 and $150 in the near term.Ether price is rising steadily and trading above the $135 resistance against the US Dollar.BTC is also showing a lot of positive signs above the $7,400 resistance area.There is a key bullish trend line forming with support near $134 on the hourly chart of ETH/USD (data feed via Kraken).ETH remains well bid above $130 and it seems to be aiming a 10% rise in the coming days.Ethereum Price Rising SteadilyIn the past few sessions, there were mostly bullish moves in Ethereum above the $130 resistance against the US Dollar. Moreover, ETH surged above the $135 resistance and settled above the 100 hourly simple moving average.It opened the doors for more gains and the price traded above the $138 swing high. The price is now trading near the 1.236 Fib extension level of the recent decline from the $138 high to $133 low.The current price action suggests that the bulls are aiming an upside break above the $140 and $142 resistance levels. Once bitcoin climbs above the $7,580 and $7,600 resistance levels, Ethereum might follow and climb above $142.An intermediate resistance could be $141 or the 1.618 Fib extension level of the recent decline from the $138 high to $133 low. A successful close above the $142 resistance may perhaps set the pace for an upside continuation towards the $150 barrier.Dips In ETH Remain SupportedConversely, there could be short term downsides in ETH if the price fails to climb above the $142 resistance. In the mentioned case, the bulls are likely to protect downsides near the $135 and $134 levels.Additionally, there is a key bullish trend line forming with support near $134 on the hourly chart of ETH/USD. Should the price fail to stay above the trend line, it could correct further towards the $130 support level in the near term.Ethereum PriceLooking at the chart, Ethereum price is clearly gaining bullish momentum above the $130 and $135 resistance levels. Thus, there are high chances of a sustained upward move above the $140 and $142 resistance levels in the coming days. The main target for the bulls this week could be $150.Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly moving into the bullish zone.Hourly RSI – The RSI for ETH/USD is currently rising towards the 70 level.Major Support Level – $134Major Resistance Level – $142
Bitcoin (BTC) bulls seem to be having quite the streak. For the third or fourth day in a row, the leading cryptocurrency has posted gains. As of the time of writing this, Bitcoin has broken to highs it hasn’t seen in two weeks, rallying as high as $7,580 just minutes ago.Related Reading: Early Bitcoin Adopter Throws Cold Water On Halving Narrative; Here’s WhyWhile the momentum isn’t as strong as some analysts would like, more and more traders and starting to say that this price action confirms their ideas that a long-ish bull trend is about to play out, thereby ending the range-trading that has taken place for some five or six weeks.Bitcoin Ready to Stretch HigherJosh Olszewicz, an analyst at Brave New Coin, recently noted that an inverse head and shoulders chart pattern — a bullish pattern that is likely to mark a strong bottom for BTC — is playing out for Bitcoin.He remarked in a TradingView post outlining his trading idea that should BTC hit $7,525 (and it has), a move to the $8,100 to $8,700 range — an 8% and 16% rally, respectively — is likely to play out. As to why the rally will stop there, he cited a confluence of a few key resistances: the 200-day exponential moving average, the daily Ichimoku Cloud, a yearly pivot point, and the weekly 20 moving average.But that’s far from the end of the optimism.Cryptocurrency and forex trader Livercoin posted the below tweet on Saturday, showing that he believes Bitcoin has been trading like a textbook Wyckoff Reaccumulation-esque pattern over the past few days.The textbook pattern, should BTC follow it to a T, suggests that BTC will break higher and higher in the coming days, in an upward move that will bring the asset back to the high-$7,000s.Hi, I am Livercoin and I like wyckoff reaccumulation. $BTC #Crypto pic.twitter.com/JH2HouSFTG— Livercoin (@livercoin) January 4, 2020The technicals are starting to favor Bitcoin from a longer-term perspective as well.Related Reading: This Scary Fractal Suggests Bitcoin Price Is On Its Way to $3,000Long-Term Bull Case ReappearingPer previous reports from NewsBTC, CryptoHamster recently noted that Bitcoin’s on-balance volume reading — an indicator which “uses volume flow to predict changes in stock price” — is printing a clear falling wedge pattern, a chart pattern marked by falling prices (or in this case, a reading) and a tightening range.In this case, the falling wedge seems bullish, with the Bitcoin-related on-balance volume reading rallying, implying imminent continuation to the upside.Also, Su Zhu, the chief executive officer of forex and crypto fund Three Arrows Capital, recently remarked on Twitter that he believes Bitcoin’s price outlooking heading into 2020 is looking rather bullish. The prominent commentator specifically cited his analysis of the BTC/USDT trading pairs and their premiums to BTC/USD markets and the overall price action, which shows there are “clear signs of accumulation and money flow back into risk.”BTC/USDT premiums and price action show clear signs of accumulation and money flow back into risk.Would not surprise me to see 9K+ before end of Jan.— Su Zhu (@zhusu) December 28, 2019Featured Image from Shutterstock. Chart from TradingView.com
A prominent cryptocurrency fund manager and former Wall Street household name is bullish on both Bitcoin and gold. The reason: the U.S. killed Iranian General Qassem Soleimani by an airstrike.Related Reading: Bitcoin Poised to Collapse Under $5,000? Market Cycle Fractal Suggests SoBitcoin Bullish Because of Iran?On Jan. 2, U.S. officials confirmed that Iranian General Qassem Soleimani was killed in Baghdad in an airstrike directed by President Donald Trump. Due to Soleimani’s status as a key leader in Iran, media—mainstream and social media alike — erupted; every commentator was trying to weigh in on what this event meant for foreign policy, a potential World War 3, oil, and — you guessed it—Bitcoin.
They say that a rising tide lifts all boats, and this saying is especially true within the crypto markets, with Bitcoin being the tide and the various major altcoins being the boats that tend the follow its lead.Bitcoin’s recent surge from lows of $6,800 has revitalized the markets, allowing multiple altcoins to post decent recoveries from their recent lows, and one analyst is now noting that many crypto’s ability to surge concurrently with BTC is a bullish sign.Bitcoin’s Momentum Creates Bullish Tailwinds for Crypto Markets At the time of writing, Bitcoin is currently trading up over 2% at its current price of $7,500, which marks a slight climb from its daily lows of $7,300, and a notable climb from its recent lows of $6,800.It is imperative to note that this rally has not come about at the expense of other cryptocurrencies, as many major altcoins have similarly been able to put some significant distance between their current prices and their recent lows.Ethereum is one such altcoin that has climbed significantly from its recent lows of $126, as it is now trading at nearly $140. Litecoin has also been able to surge, jumping from weekly lows of $39 to highs of $45.Because the markets are tracking Bitcoin – for both better and worse – it does appear that all eyes are closely watching to see where BTC goes next, and one analyst thinks the next move could greatly favor bulls.“$BTC People are gonna call inverse head and shoulders on this one. That makes me think we go and test the neckline (upper red line). Once there I think we either fake-breakout and dump back down or breakout for real which will lead to a short-squeeze. I remain bullish,” DonAlt, a popular crypto analyst on Twitter, explained in a recent tweet.$BTCPeople are gonna call inverse head and shoulders on this one.
That makes me think we go and test the neckline (upper red line).
Once there I think we either fake-breakout and dump back down or breakout for real which will lead to a short-squeeze.I remain bullish. pic.twitter.com/ozhOdHlWV7— DonAlt (@CryptoDonAlt) January 3, 2020Will the Ongoing Altcoin Rally Falter, Or Continue Strong?DonAlt also shared his thoughts on the state of the general crypto market in a tweet from a couple of days ago, explaining that the fact that altcoins have been able to climb in tandem with Bitcoin may signal that this recent rally has some long-term significance.“Pumps like this are usually not significant but considering that this happened to multiple big alts WHILE BTC was also going up is something I find significant. We’ll have to wait for some ranges to get reclaimed to be reasonably sure but the initial step sure looks nice,” he explained while pointing to the chart seen below.Pumps like this are usually not significant but considering that this happened to multiple big alts WHILE BTC was also going up is something I find significant.We’ll have to wait for some ranges to get reclaimed to be reasonably sure but the initial step sure looks nice. pic.twitter.com/nAMMvxgHlD— DonAlt (@CryptoDonAlt) January 3, 2020How the crypto markets trend in the coming few days could offer deeper insight into how they will trend throughout the first half of the new year.Featured image from Shutterstock.
More funny business surrounding the HEX token. Should we really be surprised? | Source: Jaiz Anuar/Shutterstock.com
- The HEX purchase address used 50 ETH to buy more tokens.
- The tokens were then sent to an exchange to provide liquidity for HEX traders.
- HEX continues to benefit its founder, to the severe detriment of its investors.
Ethereum (ETH) from the flush address of the controversial HEX cryptocurrency is being recycled to buy more tokens, as shown by a breadcrumb trail of transactions on Etherscan.
The ETH were then sent to a cryptocurrency exchange with the apparent intention of boosting the liquidity of the alleged “scam token.”
Creator Richard Heart claims he doesn’t know who controls the $6.5 million worth of Ethereum that sits in the flush address. Regardless, it has been estimated Heart will control from anywhere between 45-70% of all HEX tokens in existence via the token’s origin address.
Ethereum Tokens Recycled Back Into HEX
ETH from the HEX smart contract finds its way back into HEX’s circulation. Recycled in four steps. | Source: @Run_BTC, Twitter, Gruffalo, HexRekt Telegram
The screengrab above illustrates the recycling of 50 ETH, which begins in HEX’s flush address and ends up back in its token supply – via a series of dummy addresses and exchanges.
While Richard Heart – also known by a number of aliases – continues to refute any association with the Ethereum flush address, he still stands to profit greatly from his creation.
HEX is designed so that the origin address (i.e., Heart’s address) receives copies of all the bonuses gained by investors. That’s in addition to a portion of any penalties incurred by HEX stakers.
Some have estimated that the origin address (OA) received bonuses of around 500 million crypto tokens per day in December. From a Reddit post which delves into HEX’s “We are all Satoshi” bonus:
This bonus is essentially all of the unclaimed HEX that is to be paid out proportionally to all stakeholders after the initial BTC free claim and AA (Adoption Amplification) phase is over with. Since a copy of all bonuses and penalties in HEX get paid to the OA, this bonus is also being paid proportionally on a daily basis to the OA which amounts to about 520 million HEX per day.
Heart’s margin for profit is encoded in the cryptocurrency itself.
Stake HEX Again
But wait, there’s a third layer to this pyramid, and that’s the HEX staking system. Assuming tokens from the origin address made it onto the staking net, they would reap yet another round of bonuses.
…those same HEX tokens in the OA that were created as a copy of the WaaS bonus out of thin air, are now being staked for 10 years in other addresses, and YES these address will get another significant chunk of the WaaS (We are all Satoshi) bonus + interest that is meant to benefit all of the other HEX stakers.
Despite marketing his crypto token as being “designed for 10,000x returns over 2.5 years,” Heart appears confident that he will avoid the dragnet of the SEC. That’s largely thanks to hiding behind a series of automated smart contracts which he claims to have no control over.
This article was edited by Josiah Wilmoth.
Last modified: January 5, 2020 7:12 PM UTC
If you’ve been following Bitcoin over the past few years, you likely remember John McAfee’s crazy BTC price prediction. As the cryptocurrency market was blowing up in 2017, McAfee, the creator of the cybersecurity company that shares his name, posted the below tweet, claiming that he is betting that Bitcoin will hit $1 million by the end of 2020.On the line: his family jewels, which McAfee claimed he would eat on national television of the price target was not hit.When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD— John McAfee (@officialmcafee) November 29, 2017While many thought he was kidding, he continued to double down on this stance over the years. Late last year, he took an interview with Forbes, in which he stated that he believes BTC will surpass $1 million apiece simply due to the scarcity of the asset:“Let’s get real, there are only 21 million bitcoins. Seven million of which have been lost forever, and then, if Satoshi [bitcoin’s anonymous creator] is dead, add a few more million.”What he’s arguing is that with increased demand for Bitcoin, the ultra scarce nature of the cryptocurrency will lead to a surge in price as there won’t be enough coins being fed into the market at low price points to satisfy demand.Related Reading: Bitcoin Poised to Collapse Under $5,000? Market Cycle Fractal Suggests SoHe continued to tout this line, saying in an interview with AIBCSummit: “Run the f***ing numbers. If Bitcoin is less than $2 million by the end of 2020, then mathematics itself is a flawed disappointment.”But according to a latest tweet from the crypto promoter and hardline libertarian, this was all a “ruse.” Considering that the original prediction was crazy anyway, is this really surprising?Bitcoin Price Prediction Just a RuseIn a tweet published on Sunday, McAfee branded the prediction and his bet “a ruse to onboard new users,” presumably citing the mass media coverage this oddball price target created. He went on to write that he thinks while Bitcoin was the first of the cryptocurrencies, “it’s an ancient technology,” before likening the first blockchain to the Model T of automobiles.Eat my dick in 12 months?A ruse to onboard new users. It worked.Bitcoin was first. It’s an ancient technology. All know it.Newer blockchains have privacy, smart contracts, distributed apps and more.Bitcoin is our future?Was the Model T the future of the automobile?— John McAfee (@officialmcafee) January 5, 2020McAfee concluded by noting that newer blockchains, be it Ethereum or Monero, have privacy features, smart contracts, distributed apps, and more, seemingly pointing to the sentiment that Bitcoin’s purpose as digital money for the internet is a shortfall.Related Reading: This Scary Fractal Suggests Bitcoin Price Is On Its Way to $3,000Featured Image from Shutterstock
Ethereum (ETH) has found itself caught within a firm uptrend over the past several days, which has allowed it to quickly near its next key resistance level at $140, with a break above the resistance that exists here potentially allowing it to climb significantly higher.In spite of the bullishness of this rally, it is important to note that analysts are still explaining that ETH is in a corrective phase and may be on the cusp of incurring another massive drop that could send it as low as $80 in the near-term.Ethereum Outperforms Bitcoin as It Fast Approaches Another Key Resistance LevelAt the time of writing, Ethereum is trading up nearly 4% at its current price of $139, which marks a notable climb from its recent lows of $126 that were set last week when the aggregated crypto market incurred a sharp sell off.Ethereum’s recent climb has been perpetuated by the momentum Bitcoin has found in the time since its drop to $6,800, and the aggregated crypto market is showing some signs of potentially forming a long-term bottom.This recent bullishness has allowed ETH to climb towards where it was trading at in mid-December prior to its capitulatory sell-off that sent it as low as $120.Livercoin, a popular analyst on Twitter, explained in a recent tweet that he believes that ETH may soon incur a massive sell-off that sends it reeling lower, as it is currently trading within a bearish technical pattern.“Sure, this rally is pretty but I don’t see a reason to be HTF bullish on USD pairs just yet. On $ETH, price is forming a “corrective” consolidation and there is a big chance that we will dump again after filling the weekly price inefficiency. Stay safe bros,” he explained.Sure, this rally is pretty but I don’t see a reason to be HTF bullish on USD pairs just yet.On $ETH, price is forming a “corrective” consolidation and there is a big chance that we will dump again after filling the weekly price inefficiency.Stay safe bros pic.twitter.com/ZK7VBuO1HZ— Livercoin (@livercoin) January 5, 2020Where Will This Next Drop Lead ETH? DonAlt, another popular crypto analyst on Twitter, explained in a recent tweet that he believes Ethereum is currently range bound within a massive trading range, with an upside target of $260, and a downside target around $80.“$ETH Time to play the range,” he explained while pointing to the chart seen below.$ETHTime to play the range. pic.twitter.com/I5EFZpG6Tt— DonAlt (@CryptoDonAlt) January 1, 2020If the pattern discussed by Livercoin does prove to be valid, it is highly possible that ETH will soon find itself caught within a violent downtrend that causes it to form fresh multi-month lows.Featured image from Shutterstock.