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What is key to Bitcoin hitting $300K in a year?

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Bitcoin’s market has been performing exceptionally lately, with the cryptocurrency recording YTD returns of 160%, at press time. It should be noted, however, that even though the gains in the present market are more “real,” compared to 2017, the inclination from institutions in the market has mainly been driven by the high volatility in the digital asset market.

According to data provider Skew, despite the high volatility, the close to close Realized Volatility of Bitcoin is half of what it was in 2017. In fact, it has moved less than 2% close to close in absolute value 207 days this year, making it less volatile than most technology stocks or commodities in the traditional market.

However, since Bitcoin has not yet surpassed its previous ATH, the cryptocurrency, in a way, is still in unchartered territory. Ergo, there could be a regime change if Bitcoin moves above $20K, especially in light of the record cheapness of Options skew.

Bitcoin and digital gold

The said volatility and price have definitely invited more institutions to invest in Bitcoin, but will this interest sustain itself above the $20K price level? This depends on how much of the ‘Bitcoin is digital gold’ narrative follows through.

Consider this – Recent entrant and prominent investor Stanley Druckenmiller noted that Bitcoin could be an asset class that has a lot of attraction as a store of value. This view definitely points to a shift in the thought process of big-time investors. In fact, while he conceded that he owned more Gold than Bitcoin, he added,

“I own many, many more times gold than I own bitcoin, but frankly if the gold bet works, the bitcoin bet will probably work better because it’s thinner and more illiquid and has a lot more beta to it.”

While the use of Bitcoin has remained limited to crypto-specific operations, most investors have not put their trust in it like they have in Gold. Thus, the possibility of Bitcoin’s price climbing to $300K by the end of 2021 (As assessed by Citigroup) will remain a far-fetched dream for now. This is simply because the narrative of ‘Bitcoin is digital gold’ has not been realized yet and it has not found its place among institutional investors.

That’s not all, however, as Ray Dalio believes that he cannot imagine Bitcoin being used by central banks, big institutional investors, businesses, or multinational companies, like they are using Gold. This highlighted the belief in Bitcoin being used as a hedge again inflation trades, while also underlining Gold’s precedence in comparison.

To grow as big as the Gold market, Bitcoin’s market cap has to reach $9T, which would mean a price of $485k per Bitcoin. This is higher than the estimated price put up by Citigroup. However, the only way this can be possible is if it attains the status of digital gold and if the investors believe that digital gold is indeed equivalent to physical gold.

Looking at the crypto-market right now, it is difficult to see Bitcoin climbing to $300K by the end of 2021.

Source: https://eng.ambcrypto.com/key-to-bitcoin-300k

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Crypto Community Calls Out Congresswoman Rashida Tlaib For Flawed Stablecoin Bill

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The new stablecoin bill proposed by Congresswoman Rashida Tlaib seems to have not gone down very well with the crypto community who believe the bill is completely flawed.

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The proposed bill called STABLE Act promises to protect consumers from the risks associated with emerging private digital stablecoins such as Libra. The bill would regulate any such issuance as well as their commercial activity in the future and the companies would be required to follow the following guidelines,

  • Require any prospective issuer of a stablecoin to obtain a banking charter;
  • Require that any company offering stablecoin services must follow the appropriate banking regulations under the existing regulatory jurisdictions;
  • Require that any company or bank issuing a stablecoin to notify and obtain approval from the Fed, the FDIC, and the appropriate banking agency 6 months prior to its issuance and maintain an ongoing analysis of potential systemic impacts and risks;
  • And require that any stablecoin issuers obtain FDIC insurance or otherwise maintain reserves at the Federal Reserve to ensure that all stablecoins can be readily converted into United States dollars, on-demand.

The Proposed Bill Does Exact Opposite of What it Promises?

The Crypto community believes the proposed bill is quite rigorous and punishes crypto companies for the sin committed by the banks over the years. They believe that the STABLEAct would give a monopoly in the hands of banks over Stable coin issuance in the US. Tyler Winklevoss, the co-founder of crypto exchange Gemini called out congresswoman Tlaib saying the idea behind the bill doesn’t make sense. He asked,

When has less competition and giving banks more power ever lead to more consumer protection?

Mike Dundas, the co-founder of The Block called the bill “hot garbage,” while the CIO of BlockTower Capital Ari Paul believe the bill would do the exact opposite of what it is promising. He noted,

The growing interest of institutional players and mainstream financial giants in bitcoin and cryptocurrency during the ongoing bull run made many optimists about its possible impact on bringing better regulations, however, the first bill introduced amid the ongoing bull run has broken that illusion quite fast. If the bill manages to get the nod and become a law, chances are crypto companies might look for other destinations like they did in the early stage of crypto license.

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Author: Prashant k Jha




An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Source: https://coingape.com/crypto-community-congresswoman-stablecoin/

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1 Million ETH Gets Locked up in Ethereum 2.0

Over $600 million is now staked on the world’s most-used blockchain, just days after its ‘beacon chain’ launched.

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A million ETH have found their way to the smart contracts of Ethereum 2.0, four days after the protocol successfully launched its beacon chain, as per on-chain explorer service Etherscan.

The amount is currently worth over $600 million and would reward stakers in the future when other phases are launched and the staked amounts open up for withdrawals. However, the annual yields on these staked funds remain unspecified as of today.

The locked up ETH is part of Ethereum’s multiphase move towards a proof-of-stake protocol, away from its current proof-of-work design. Such a shift would allow Ethereum to become a faster, low fee, and more scalable blockchain.

The much-awaited staking launch was initially met by a poor response, with only 50,000 ETH coming in the first week and 3,200 ETH of that coming from Ethereum’s creator, Vitalik Buterin, himself. But the Ethereum army piled on in the last few days before the December 1 deadline, pushing the deposits over the minimum required 524,000 ETH. This did, however, require some help from whales: Celsius Network, a lending protocol, claimed to fork up 25,000 ETH towards the Ethereum 2.0 cause, along with other large token holders and crypto funds.

As of today, the staked funds are 116% higher than the network required, as per on-chain analytics firm Dune Analytics. The amount consists of a total of 3,028 depositors, who staked a minimum of 32 ETH each (although the presence of pooling services like Stakefish may mean the number of depositors was higher).

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Bitcoin Price to Hit $36,000 in 2021: Kraken Crypto Sentiment Survey

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From what happened in the last couple of weeks, it appears that the crypto bull market is upon us. Bitcoin has been consistent with its volatility-induced rallies, and this is infusing confidence in investors.

So much, so that VIP clients in Kraken’s latest Crypto Sentiment Survey say that BTC will skyrocket to about $36,000 in 2021. They also feel that ETH could revisit its previous highs of $1500.

Bitcoin And ETH To Trade At Average Prices Of $15K and $549 By 2020 End

The latest Kraken Crypto Sentiment Survey covers investor sentiment for the second half of 2020. The exchange had already conducted a similar survey back in March this year. But then investors were way more optimistic about BTC and ETH price growth by December.

Now, the same respondents have retracted their bullish calls for bitcoin and ether (ETH) this year. According to the latest numbers,

The average bitcoin price target among 309 responses fell -35% surveyover-survey to $14,866, well below February’s average of $22,866. The median price target also retraced -28% from $19,424 to $14,000, and the most commonly cited price target was $15,000, down -25% from $20,000.

With respect to ether (ETH), the average price target among 289 responses was $549, off -32% from the previous survey’s average of $810. The median price target was unchanged at $500 and the most frequently cited price target was $500, up +66% from $300.

At 72 percent, traders and investors (down from 81 percent when the survey was conducted in March) comprised a majority of the survey responses. 18 percent of responses came from Institutions (broker, custodian, family office, hedge fund, lender, market maker, private equity firm, proprietary trading firm, or venture capitalist).

And the rest 4 percent – from crypto service providers (ATM, exchange, lender, payment processor) and miners. As compared to March, the researchers at Kraken anticipated a lower price growth optimism from the said respondents since the year is so close to its end.

The Outlook For 2021 Remains Super Bullish

When asked about how they see bitcoin and ether prices in the next year, respondents didn’t shy away from expressing their mega bullish calls. Survey participants called for an average bitcoin price target of $36,602 in 2021. Some put the median bitcoin price target at $25,000, but a lot of folks (approximately 61 percent) felt if not anything else, BTC will at least hit $20,000.

A small section of respondents reported hopium-induced ultra bullish calls.

Approximately, 8% of respondents provided a price target greater-than-or-equal-to $100,000, roughly 20% of respondents reported a price target greater-than-or-equal-to $50,000…

Survey participants were very optimistic about ETH’s outlook as well in the next year. This sentiment came from the discussions around Ethereum’s network upgrade and the growing popularity of the DeFi ecosystem. Respondents think ETH will trade at an average price of $1454 in 2021. Also, at the same time:

Close to 59% believe that ether will, at least, hit $800. Additionally, 22% of respondents see ether surpassing its previous all-time high of $1,595 set in early-January 2018 and just under 92% see ether, at the very least, trading higher than current price in 2021.

What becomes evident from the aforementioned numbers is that participants in a price prediction survey tend to project bullish figures for a longer-term.

Will Bitcoin(BTC) and ether (ETH) hit the above price targets in 2021? That still remains to be seen.

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Source: https://cryptopotato.com/bitcoin-price-to-hit-36000-in-2021-kraken-crypto-sentiment-survey/

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