Connect with us

Blockchain

Bitcoin Shoots Past $18,000; Analysts Discuss Why

Avatar

Published

on

Bitcoin has shot past the $18,000 mark, the highest it’s been since 2017. The currency remains on one of the biggest runs of the past three years. Many analysts are now convinced that the asset will reach its all-time high yet again before the year is out.

Bitcoin Continues to Rock the Boat

So, why is bitcoin doing so well as of late? Several industry experts are weighing in. For one thing, bitcoin is a rare asset. It was decided in 2009 when it was first brought to the financial table that the currency would only have 21 million units, a limited supply. As it stands, about 90 percent of the units out there have already been mined and are in circulation. Thus far, about 18.5 million of the 21 million units are available and ready to be traded.

Satoshi Nakamoto – the creator of bitcoin – designed the currency to be harder to mine and extract as we got closer and closer to the 21 million. As it stands, that final bitcoin isn’t set to be mined for another 120 years or until 2140. Thus, even though there are only 2.5 million bitcoins left to be placed in circulation, they will take some time to garner.

In addition, bitcoin has a different structure than most other financial tools. It is not heavily correlated with other assets, meaning others are looking at it as a potential hedge against poor economic circumstances, such as inflation. Catherine Coley – CEO of Binance US – mentioned in a recent interview:

Derivatives have taken a robust role in these markets, aiding the product variety available for active traders to advance their understanding of market dynamics and core risk management.

Right now, the government is continuing to print several additional forms of fiat currency. There is a serious overprinting of bills and similar products, which means the economy is weakening and bitcoin is rising in stability.

This is one of the main reasons why bitcoin was initially created over ten years ago. During the Great Recession, the U.S. also found itself in a position of overprinting funds, and as a result, the markets found themselves tanking. Bitcoin was established to give people more financial independence during this period.

At the time of writing, the dollar is down by more than four percent this year, according to the ICE U.S. Dollar index. This platform measures USD against several other types of currencies including the euro. Thus, the dollar has experienced its worst drop of the last three years.

So Many Doors Are Opening for the Asset

Charles Hayter – founder and CEO of Crypto Compare – explains:

Bitcoin as a form of digital gold is also seeing its time in the sun as we see the floodgates open on monetary policy. Closing the sluice gate is more difficult than opening it.

Tags: , , Source: https://www.livebitcoinnews.com/bitcoin-shoots-past-18000-analysts-discuss-why/

Blockchain

Japan’s SBI Holdings is launching a Bitcoin lending service

SBI Holdings has announced the launching of a crypto lending service, beginning with Bitcoin. The service will be available on the digital currency trading platform, SBI VC Trade. SBI Holdings, the leading financial services company in Japan, announced on Tuesday that it launched a cryptocurrency lending service. Starting with Bitcoin (BTC), the service will be […]

Avatar

Published

on

  • SBI Holdings has announced the launching of a crypto lending service, beginning with Bitcoin.
  • The service will be available on the digital currency trading platform, SBI VC Trade.

SBI Holdings, the leading financial services company in Japan, announced on Tuesday that it launched a cryptocurrency lending service. Starting with Bitcoin (BTC), the service will be rolled out later to include other popularly-traded digital currencies, including Ether (ETH) and Ripple (XRP). The Japanese financial services giant mentioned in the announcement that the crypto lending service will also feature optimal trading opportunities. 

SBI Holdings debuts Bitcoin lending service

According to the announcement today, lending service is made available on SBI Holdings digital currency trading subsidiary, SBI VC Trade. As the service debuted with Bitcoin, the customers can lend out their Bitcoin to the crypto company, which would attract interest for them after the stated lending duration expires. The works are similar to other digital currency lending platforms. SBI Holdings accepts a minimum of 0.1 BTC and 5 BTC as maximum lending quantity.

For a lending period of 84 days, customers will earn 1.0 percent (tax included) annually of the deposited coins annually. As noted earlier, SBI Holdings intends to expand the services to include Ether and Ripple, as well as the types of lending periods, per the announcement. The development is coming after recent reports that a crypto lending platform, Cred, filed for bankruptcy, with many sources citing mismanagement of funds as a cause.

Reliability is a factor

“One of the risks of cryptocurrency lending service is the risk of bankruptcy of the lender,” the SBI Holdings’ translated page reads. “All of our customers’ lending destinations for our cryptocurrency lending service are SBI Group companies that boast high reliability, so you can use it with confidence.” 

The company further revealed its intentions to introduce more market-suited trading opportunities.

Continue Reading

Blockchain

Max Keiser: Institutions Will Purchase Bitcoin Directly From Miners And Box Out The Public As Price Reaches $1M

Avatar

Published

on

Max Keiser: Institutions Will Purchase Bitcoin Directly From Miners And Box Out The Public As Price Reaches $1M

Advertisement &  & 

Amid the COVID-19 crisis, economies worldwide have shuddered and governments have been forced to introduce drastic measures to resuscitate the ailing economy. As a result of this uncertainty, bitcoin has become an attractive investment for institutions. The spark that started with MicroStrategy’s jumbo bitcoin purchase morphed to an institutional frenzy around the flagship cryptocurrency.

The increased appetite for bitcoin from institutions comes from its budding image as a digital store of value. As the demand grows, the supply for BTC shrinks. Max Keiser, vocal bitcoin champion and founder of crypto-focused venture capitalist firm Heisenberg Capital, thinks this serious supply pressure will drive the price of bitcoin to $1 million.

Speaking with Express, Keiser noted that bitcoin’s supply is fixed at 900 BTC per day and will be slashed in half again to 450 BTC in 2024. And this is why he’s of the opinion that institutional players will devise ways of purchasing bitcoin directly from the miners, subsequently shutting out the public. This will be accompanied by the incredible price growth to $1,000,000.

Keiser goes on to predict that Generation Zs who purchased bitcoin while it was trading below $100 will be “the new global elite”. “The world order is about to flip”, he added.

The daily demand for bitcoin from leading crypto exchanges currently exceeds the supply minted by miners on a daily basis. To put things into perspective, the daily demand on these trading platforms totals 2,600 BTC, while miners can only produce 900 BTC per day. Keiser described this supply-demand disparity as “amazing”.

Advertisement &  & 

Bitcoin has especially attracted the attention of multi-billion-dollar corporations and billionaires this year. Besides MicroStrategy, Square and Stone Ridge also allocated significant portions of their idle cash reserves to bitcoin, while PayPal recently launched a crypto service that allows users to buy, hold, and sell bitcoin and other cryptocurrencies. Interestingly, according to Pantera Capital’s Dan Morehead, PayPal and Square’s Cash App are buying more than 100% of newly-minted bitcoins.

And there are also renowned investors putting their money into bitcoin including Paul Tudor Jones and Stan Druckenmiller. Celebrities like Game of Thrones actress Maisie Williams have also come out as BTC HODLers.

As more institutions and billionaires come to the bitcoin space, the supply scarcity will intensify. The only way supply and demand counterbalance are at a higher price.


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/max-keiser-institutions-will-purchase-bitcoin-directly-from-miners-and-box-out-the-public-as-price-reaches-1m/

Continue Reading

Blockchain

A $20K Bitcoin Likely as Trump Authorizes Biden Transition

Avatar

Published

on

Bitcoin is looking to retest its all-time high, near $20,000, as Donald Trump authorizes his administration to cooperate with president-elect Joe Biden’s transition team.

The flagship cryptocurrency rose cautiously on Tuesday, hours after the General Services Administration’s head Emily Murphy informed Mr. Biden that Mr. Trump had approved the official government transition process.

The statement came after Michigan certified the election results. The state found no evidence of significant voter fraud, as had claimed by Mr. Trump.

Bitcoin Boom Continues

As of 0755 UTC, the bitcoin-to-dollar exchange rate was up 0.17 percent, much in line with the US stock futures that too climbed in the pre-session trading Tuesday. Futures tied to the benchmark S&P 500 — for instance — ascended by 0.6 percent ahead of the London opening bell. Stocks in Asia surged likewise.

Markets had expressed uneasiness after the sitting US Treasury Secretary Steven Mnuchin refused to extend support to the Federal Reserve’s emergency lending facilities. Analysts noted that Mr. Trump used his human resource tools to constraint Mr. Biden’s administration’s powers to tackle the US economic fallout.

Bitcoin remains one of the biggest beneficiaries of the Fed’s lending programs.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin rallies 400% from its mid-March lows. Source: BTCUSD on TradingView.com

The central bank printed about 20 percent of the US dollar bills that has ever existed in 2020 alone. On the other hand, Bitcoin did the complete opposite with an inherent economic policy that cut its supply by half every four years.

Fears of inflation, coupled with negative-yielding debts, pushed investors towards scarcer alternatives like Bitcoin. The cryptocurrency rose by more than 350 percent after the Fed announced its expansionary programs. The Trump administration attempted to end a big part of those aids, thus hurting Bitcoin’s further bullish prospects.

The GSA statement eased a pressing source of uncertainty for investors about the smooth White House handover to Mr. Biden. Robert Rennie, global head of market strategy for Westpac, told FT that the transition would limit the impact of Mr. Mnuchin’s decision.

Stimulus Package

A clear transition for Mr. Biden further paved the way for the long-pending coronavirus relief package.

The president-elect has earlier committed to increasing government spending to tackle the rising unemployment alongside COVID-19 infections. Should the Democrats win a majority in the Senate and Congress, the second stimulus package will face no political resistance.

Retail and institutional investors (read PayPal) have increased their Bitcoin exposure against a similar outlook. More stimulus reduces the US dollar’s purchasing power. It turns more people towards the safety of scarce assets like Bitcoin, so says Alex Mashinsky of Celsius Network. Excerpts:

“People must understand that there is no return in bonds, and they carry many risks. And buying into the stock market at all-time highs in the middle of a pandemic and a recession does not sound like an appetizing proposition.”

That somewhat justifies why Bitcoin would retest $20,000 by the end of this year — or in the first quarter of 2021 on tops.

Source: https://bitcoinist.com/a-20k-bitcoin-likely-as-trump-authorizes-biden-transition/?utm_source=rss&utm_medium=rss&utm_campaign=a-20k-bitcoin-likely-as-trump-authorizes-biden-transition

Continue Reading
Blockchain3 days ago

Bitcoin Suisse to Deposit Nearly 100,000 ETH to Ethereum 2.0

Blockchain3 days ago

Bitcoin supply shortage is due to overwhelming PayPal support

Blockchain3 days ago

US Government to Use USDC Stablecoin to Bypass Venezuela’s Maduro

Blockchain4 days ago

Bitcoin Is the Biggest Big Short

Blockchain5 days ago

“The Great Reset” Close to Overtaking Ethereum in Searches

Blockchain4 days ago

HEX Dumps Amid 24-hour LiveStream

Blockchain3 days ago

Ethereum 2.0 Deposits Near 200,000 ETH

Blockchain5 days ago

Elastos Network Selected by World Economic Forum to Accelerate Blockchain Adoption

Blockchain4 days ago

How to Invest in DeFi (The Sequel)

Blockchain4 days ago

Companies Like PayPal Are Adopting Crypto Quicker Than Ever

Blockchain3 days ago

Why this Ethereum DeFi coin has surged 400% in two days

Blockchain4 days ago

Simon Peters: $20,000 is next target for Bitcoin

Blockchain3 days ago

DeFi Protocol Pickle Finance Hacked For $20 Million

Blockchain3 days ago

Cardano on schedule to deliver Goguen, reveals Hoskinson

Blockchain5 days ago

The Complete Case for $100K Bitcoin

Blockchain4 days ago

CorionX to be listed on BitMart Exchange

Blockchain3 days ago

The Long Arm of Justice: How Far Can the DoJ Really Go in Prosecuting Foreign Actors?

Blockchain3 days ago

Chainalysis Becomes Newest Crypto Unicorn After $100M C Funding

Blockchain3 days ago

Argentina and Brazil Get Their Own Stellar Stablecoins

Blockchain3 days ago

SushiSwap’s SUSHI Continues Ascent, Rallies 10% on $1B in Deposits

Blockchain3 days ago

Is current Bitcoin trend a Bull trap – $20K beckons extended BTC/USD rally

Blockchain3 days ago

Market Wrap: Bitcoin Hits $18.8K as Total Crypto Locked in DeFi Passes $14B

Blockchain3 days ago

Uniswap User Loses $20,000 With a Fake Google Play Store App

Blockchain5 days ago

News of News For Bears and Bulls

Blockchain5 days ago

Bitcoin and Ether Market Update November 19, 2020

Blockchain4 days ago

BlackRock’s Rick Rieder Says Bitcoin Could Replace Gold

Blockchain3 days ago

3 Reasons Why Analysts Think Bitcoin Will Move Higher After Rally to $18,800

Blockchain3 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain4 days ago

Navigating through the challenges of Blockchain Tech to fast track development of the FinTech Market

Blockchain3 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain3 days ago

US Regulator Seeks End to Bank Deplatforming of ‘Disfavored’ Industries (Like Crypto)

Blockchain5 days ago

In this bull run, why are price rallies of Bitcoin and ETH not the same?

Blockchain3 days ago

Uniswap User Loses $20,000 With a Fake Google Play Store App

Blockchain1 day ago

Crypto.com Launches Visa Cards for Canadians

Blockchain4 days ago

Poker players now request more cash out in Bitcoin

Blockchain1 day ago

Chainlink Likely to See an Impulse Higher as Bulls Break Key Range

Blockchain2 days ago

XRP Surges 30% Higher—and Analysts Think There’s Upside to Come

Blockchain2 days ago

Bitcoin’s 14% Weekly Increase Eyes the ATH: The Crypto Weekly Market Update

Blockchain3 days ago

Uniswap User Loses $20,000 With a Fake Google Play Store App

Trending