Bitcoin
Bitcoin Shrugs Off Bubble Burst Fears To Record $2,500 Single Day Gain
Bitcoin defied chatter about a bubble ready to pop, as it went on to record its biggest gain in a single day of $2,500. The cryptocurrency topped record highs of $14,400 after a stunning 18-hour run that saw it jump from under $12,000.
However, not everyone is convinced that Bitcoin gains are here to stay even as Institutional investors prepare to take positions. Nordea Bank CEO, Casper von Koskull, has already called the rally a ‘joke’ as the head of Denmark’s largest pension fund insists they are not comfortable with the spike. Amidst the sentiments, bitcoin has continued to surge.
The price of bitcoin can now buy more than 11 ounces of pure gold after a jaw-dropping tear the entire year.
Bitcoin Immediate Catalysts
The scorching cryptocurrency is up by more than 1500% for the year as it shows no signs of slowing down. Growing chatter about the launch of bitcoin futures contracts is believed to be the latest catalyst driving the digital currency’s price.
CBOE is set to launch bitcoin futures over the weekend as CME Group prepares for a similar launch on December 18, 2017. NASDAQ will launch futures trading in the summer of next year. JPMorgan Chase is set to launch its own future contracts despite the firm’s Chief Executive Officer taking a swipe at the cryptocurrency a few weeks back.
The sale of Futures contract poses the biggest test to bitcoin impressive run for the year. The derivatives is set to attract a flood of new capital, more so, from institutional investors who for the better part of the year have been on the sidelines.
Red Flags
Amidst the excitement about the Futures contracts, some investors have warned that such derivatives could have serious repercussions. Interactive Brokers CEO, Thomas Petterfy, has warned that the derivatives could trigger a 2008 style financial crisis.
Coutts Investment strategist, Lillian Chovin, has also warned about the instability the cryptocurrency faces given that its blockbuster rally is not based on any underlying fundamentals. Coutts is not only worried about bitcoin bursting but concerned that it could be part of a wider tech bubble.
“Our view at Coutts is that, as an investment asset, electronic currencies like Bitcoin have nothing but sentiment backing them up. We, therefore, have no current plans to include them in our investment strategy,” said Ms. Chovin.
The concerns have done little to sway investor’s sentiments on the digital currency. Reports indicate that exchanges are in the process of processing mountains of applicants waiting on verifications of new deposits. Once these new funds hit the market, the price of bitcoin is expected to rise as most of them are expected to enter long positions.
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Image courtesy of zacktionman 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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