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Bitcoin

Here’s One Data Point That Suggests Bitcoin (BTC) Has Bottomed Out

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Here is an interesting one. Take a look at the price of bitcoin as illustrated on the bitcoin price chart (taken from CoinMarketCap) below.

BTC Chart

BTC Chart

The chart shows the action that has been covered across so many of the major news media outlets over the last six weeks or so, with bitcoin sliding from highs at more than $20,000 a piece to current levels in and around $8000.

The 60% decline is one that has come as painful for many longer-term holders but the pain that said holders feel is no doubt insignificant as compares to that felt by anybody that picked up an exposure in or around mid December pricing and have subsequently ridden price down throughout the first half of the first quarter of this year.

Anyway, now take a look at the second chart, this one taken from Google’s Trends platform.

Google Trends Bitcoin

Google Trends Bitcoin

The chart illustrates interest over time in bitcoin, with the metric based on the frequency and volume with which people search for it through Google’s search engine. Official numbers suggest that around 60% of search traffic goes through Google but, in reality, it’s probably considerably higher than that.

Anyway, whatever the numbers, interest over time was at 12 (out of a possible 100) back during the first week of October. By the week of December 17, this had risen to 100 (so, representative of peak interest). That suggests an increase in the wider market attention of around 700% across what is essentially a fraction of bitcoin’s lifespan.

Almost immediately subsequent to this interest peaking, however, search volume fell off a cliff and currently sits at around 49, meaning we have seen a decline of around 100% from December.

So why is any of this important?

Well, it’s reasonable to assume that the uptick in attention and interest during the final quarter of last year is comprised primarily of mainstream attention as opposed to those already familiar with the space increasing the amount of times they type bitcoin and its related terms into Google.

In turn, it’s equally reasonable to assume that the subsequent downturn in interest during the first couple of months of this year is the removal of this same portion of global search volume from the picture.

So, taking these two assumptions into consideration, we can make a further assumption based on price. Specifically, that the portion of the inflowing volume that resulted in the bitcoin price running up to $20,000 and above derived primarily from the increase in mainstream speculation (as opposed to existing holders adding to their positions), at least for the main part.

What does this all mean?

We think that, at current prices, and taking into consideration the recent slight upturn we have seen in the markets, the portion of capital that flowed into bitcoin and pushed price up has now flowed out of the market, meaning balance is restored in the sense that the vast majority of the capital that now supports price derives from long-term holders as opposed to fly-by-night speculators.

In turn, we think that this level represents the level at which it’s perfectly reasonable to assume price should start turning around.

It’s unlikely that we’re going to see a run towards $20,000 short-term since that would mean the volume that entered (and then exited again) entering the market once more. However, within a six-month period, say, the traction that pushed bitcoin towards current levels during the first 6 to 8 months of 2017 could easily push BTC towards $15,000 plus between now and September 2018.

We will be updating our subscribers as soon as we know more. For the latest on BTC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Global Coin Report Archives

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

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Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

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