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.
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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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.
Blockchain technology outshines Bitcoin and Gold during global pandemic
As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.
However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world.
Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.
What is blockchain technology?
Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see.
Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).
Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…