Bitcoin
Bitcoin (BTC) Continued Rise Precursor for Regulation
Bitcoin continued rise could attract more regulation as authorities around the world become intrigued. According to Galaxy Investment Partners CEO, Michael Novogratz, regulators are becoming increasingly nervous as the digital currency continues to hit record highs.
Bitcoin Regulation
The sentiments follow yet another record-breaking spree that saw the largest cryptocurrency record its biggest single-day gain of $2,500. The digital currency has since risen to record highs of $14,000 and showing no signs of slowing down.
Given the impact that the cryptocurrency is set to have especially in the financial sector, the former Fortress hedge fund manager, believes regulations may be inevitable.
“One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk,” said Mr. Novogratz.
However, Novogratz has warned that it won’t be easy for regulators to have control over the havoc-causing cryptocurrency. According to the Executive Officer governments, regulation could take much longer to have a significant impact.
Novogratz is planning to launch a $500 million fund focused on cryptocurrencies investments. According to the Hedge Fund manager, bitcoin is winning mostly because of its underlying technology and not its digital currency credentials
“Bitcoin is winning out as digital gold. I don’t think it’s going to be a currency.… Nothing that volatile is going to be a currency,” said Mr. Novogratz
Bitcoin Futures Impact
Bitcoin has soared by more than 1500% this year. The surge has catapulted it from being just a fringe asset to being a globally traded product. However, it faces its biggest test heading into the year-end as some of the biggest exchanges in the world introduce Futures Derivatives.
Kick-starting the Futures spree is CBOE which is set to launch its own Bitcoin Futures over the weekend. CME Group is set to follow suit before the Christmas holidays as the NASDAQ exchange prepares for its Bitcoin exchanges in the summer of 2018.
Bitcoin has mostly been on the rise with slight pullbacks. However, with the introduction of Futures contracts, it will be much easier to bet on declines as Hedge Funds make an entry. For long, the digital currency has risen on the speculation of bullish traders but with institutional investors entering the foray the landscape could significantly change.
Even though there are traders that are waiting for the Futures contract to go short on Bitcoin, there are also those that plan to use the opportunity to go long. It awaits to be seen what will be the result given that talk of bubble burst around the cryptocurrency has been gaining momentum in the recent past.
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Image courtesy of Acumen_ via Flickr
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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