Archives January 2020

SmartCoin® on track for 30% growth in January in a record-breaking month..

This year started very well, after closing many positions on the run-up to Xmas, we placed many long bets on Bitcoin and Ethereum between 26 Dec and 4th January and we have been rewarded, with Bitcoin moving 35% YTD and Ethereum also posting 40% gains. The Bulls are running the show in 2020…we expect substantial price movements above this point… to find out more visit SmartCoin

Bitcoin Price Back at $8,700 As Institutional Investors Appetite for BTC Grows Exponentially..

  • Market gets excited as bitcoin makes way, a big move this week could be in order
  • Altcoins surged as well, with Bitcoin Gold, Dash, Zcash, and Bitcoin Cash being the top performers
  • Bakkt’s bitcoin futures delivery grows by over 1,600% while CME traders remain more bullish than any others

Today, Bitcoin yet again took a jump to climb to $8,700 level. This surge in price also saw the volume rising, from around $350 million, but it is still down at $522 million, as per Messari. Altcoins climbed in tandem, with Ethereum Classic (19.4%), Bitcoin Cash (13.09%), Zcoin (10.4%), EOS (7.56%), and Dash (7.45%) being the top performers, as per Coincodex.

Source: Coin360

As Bitcoin tries to run away with the bulls, it has key resistance present at $8.6 – $8.7k where trader Credible Crypto expects BTC to reject. He said,

“Could be something small, could be more significant. Once we get past that region we are off to the races.”

Meanwhile, popular trader Majin sees it testing $8,800 or $8,900. But trader BitBit is feeling extremely bullish as he says, “it’s getting bullish af here,” as he notes 8,250 support level, 8,500 resistance level, Mex OV above 100k, CME bitcoin futures Friday close was at 8,505, Jan futures expiry this coming Friday, and 106 days to end this buy the halving narrative.

All this means “Big move is coming this week,” he said.

Bakkt’s Futures Delivery Grows by 1,600%

Bitcoin price took a jump while the interest in the world’s leading cryptocurrency is growing among the institutional investors.

Bakkt by Intercontinental Exchange which is also behind Nasdaq delivered 230 BTC worth more than $2 million in notional value on January 17.

This has been a significant increase, of 1,625% from 2019’s average of 13.3 Bakkt Bitcoin futures contract deliveries. Last year, only 15, 17, and 8 BTC contracts were held on Bakkt until expiry in October, November, and December respectively.

Although a small amount in comparison to daily trading volumes, in itself, is huge as the physical delivery of Bitcoin shows that institutional investors not only want to trade in Bitcoin but are also interested in holding BTC.

CME Traders Remains More Bullish than any others

Last week we reported how CME traders have been more bullish than other platforms and they continue to be bullish as CME’s June futures contracts are close to a 5% premium.

The premium rate for June contracts suggests investors are bullish on Bitcoin in the mid-term. However, both January and March premium rates fell this week meaning short-term expectations are bearish.

In separate news, Bakkt and Twitter CEO Jack Dorsey’s Square might soon be competing against each other.

Recently, at the World Economic Forum (EEF) in Davos, while sharing the plans for their consumer-facing app, Bakkt president Adam White said this new offering would involve a range of digital assets including virtual goods, equities, and other forms of digital assets, making a shift from its original plan for being solely focused on Bitcoin.

Interestingly, payments company Square obtained a patent earlier this week that will allow the users to pay and receive in any denomination which may extend to support securities, and derivatives in the future as well.

There hasn’t been a crypto’s “killer app” created which has White confident in his latest product that he says would closely resemble PayPal for digital assets, instead of just an exchange.

Global Uncertainties and a Weak US Dollar to Raise the Price of Bitcoin in 2020

According to a Bloomberg report from Monday, it’s very likely the price of Bitcoin (BTC) will increase in 2020, as a result of a weak US dollar and global uncertainties.

The predictions say BTC can reach its 2019’s top range of $14,000 if the geopolitical situation is still tensioned and the stock market continues to be volatile. Bitcoin has always been seen as the digital version of gold, mainly because it’s a limited asset that can’t easily increase to meet demands, just like gold. The halving that will take place later this year should reduce block rewards to 6.25 BTC, not to mention the BTC supply is expected to increase by 2.5% in 2020 as a result.

BTC Investment May Take Many Forms

The more investments in BTC are increasing, the more they can take different forms, analysts are saying. More than this, the derivatives market is continuing to expand and integration to major markets is possible. All this may have incredible effects on the BTC price and decrease volatility. Not everyone is convinced though, that the BTC has a strong connection with gold. For example, Quantum Economics founder Mati Greenspan called this relationship weak and mentioned the 2 assets may grow to be negatively correlated.

Bitcoin Had Its Moments of Volatility

There have been many volatility moments for BTC. For instance, it surged over $10,000 immediately after China’s President Xi has made a speech in which he encouraged the adoption of blockchain technology. For now, analysts think volatility doesn’t help BTC to be a stable store of value. However, this won’t stop investors to value their digital assets and keep the BTC price stable. Bloomberg thinks the Tether market cap will continue to expand in 2020, so many other cryptocurrencies will struggle to keep their investors according to how supply outstrips are demanding. Here’s exactly what the report continues to say:

“Bitcoin should again outshine most crypto assets in 2020 as the unique and appreciating digital version of gold. Bitcoin is winning the adoption race, notably as a store of value in an environment that favors independent quasi-currencies.”

Bitcoin Rallying Hard, Gold Rallying Hard – Not a Coincidence

  • Bitcoin price jumps to almost $8,470 with strong volume after Iran fired a dozen missiles at US bases in Iraq
  • “A very classic risk off,” as both gold and bitcoin price jump
  • Bitcoin’s re-accumulation bottom completed, $10,400 coming?

This week Bitcoin is making a lot of movement that has us at the level we were at in mid-Nov.

First, on Jan 3rd, Bitcoin jumped from $6,850 to well above $7,400. Now today we shot past $8,000 to nearly $8,470.

The first surge in price has been after a US airstrike killed Iran’s general Qaseem Soleimani. Now, this another jump in price came after Iran’s missile attack on US-led forces in Iraq on early Wednesday. This attack came hours after the funeral of the Iranian commander whose killing in a US drone strike has raised fears of conflict in the Middle East.

Source: @Travis_Kling

Gold and Digital Gold in “Clear Focus”

This has the price of gold soaring, hitting their highest since March 2013 at $1,603.73 per ounce, as per “It’s a very classic risk off,” said Rob Carnell, Asia-Pacific chief economist at ING in Singapore.

As Mati Greenspan, founder of Quantum Economics says, “Gold rallying hard. Bitcoin rallying hard” is not a coincidence.

The jump in the price of gold and digital gold is viewed by investors as a safer asset in the time of political and economic uncertainty.

The data clearly points out that both Bitcoin and gold are in “clear focus” as tensions between the US and Iran escalate. As Bitcoin enthusiast Rhythm trader notes,

“This is one of the first times we’ve seen BTC trade w/ a correlation to macro headlines in ~2+ years (when it took a lot less $$). Correlation =/ causation but its enough to start a narrative around BTC as people enter the new year with 0 PnL and assess portfolio allocation.”