Connect with us

Bitcoin

Is Bitcoin Set to Hit an All-time High of $60,000 This Week?

Published

on

Bitcoin - Investors King

The Bitcoin price is likely to hit an all-time high of $60,000 this week as the U.S. House of Representatives is expected to pass Democrats’ $1.9 trillion stimulus bill this week, predicts the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The forecast from Nigel Green, the chief executive and founder of deVere Group, comes as the cryptocurrency hit a market capitalisation of $1 trillion Tuesday, as prices reached $54,900 on the deVere Crypto exchange app – which comes just short of February’s $58,000 all-time high.

Mr Green says: “The price of Bitcoin, the world’s most dominant cryptocurrency by market cap, is climbing again this week following its impressive bull run earlier this year.

“It’s already closing in on its record high hit in February and I believe that we can expect it to surpass this – likely reaching $60,000 – this week.

“The recent surge is largely due to the U.S. Democratic leaders aiming to get the legislation on the $1.9 trillion stimulus package through the House as soon as Tuesday, if not Wednesday.”

The stimulus package will be a considerable driver for the price of Bitcoin for three reasons, according to the deVere CEO.

“There’s a risk of a debasement of the dollar, the world’s reserve currency, from such an enormous stimulus package.  Bitcoin, of course, cannot simply be printed. Indeed, it is living up to its reputation as ‘digital gold.’ Like the safe-haven precious metal, it’s widely accepted as being a store of value, a medium of exchange, and is valued for its scarcity.

“There’s also some concern that the relief plan will trigger longer-term inflation.

“In addition, others have suggested stimulus checks could be used by recipients to invest in cryptocurrencies for the first time or expand their existing crypto portfolios.”

Other contributory factors toward Bitcoin’s new rally include growing interest from institutional investors.

This week, PayPal, the payments giant, confirmed that it is to acquire Curv, the cryptocurrency security firm.

It follows their decision last year to allow customers to buy, sell and hold Bitcoin and as Wall Street giants explore Bitcoin and crypto asset custody.

Mr Green concludes: “This week is set to be one to remember for all the right reasons for Bitcoin holders.”

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Continue Reading
Comments

Bitcoin

US Bitcoin ETFs Suffer Record Net Outflows Amid Global Market Uncertainty

Published

on

US Bitcoin exchange-traded funds have posted their longest run of daily net outflows since listing at the start of the year, part of a wider retreat from riskier assets in a challenging period for global markets.

Investors pulled close to $1.2 billion in total from the group of 12 ETFs over the eight days through Sept. 6, data compiled by Bloomberg show.

The drop comes amid a rocky period for shares and commodities on economic growth worries.

Mixed US jobs data and deflationary pressure in China are both taking a toll on traders. The uncertainty is buffeting the cryptocurrency market, whose gyrations have become more closely tied to moves in stocks based on a rising short-term correlation between the two.

Bitcoin has struggled in September, posting a loss of approximately 7%. But the largest digital asset eked out modest gains over the weekend and climbed roughly 1% to $54,870 as of 1pm on Monday in Singapore.

“The small relief rally seems to be driven in part by some prominent influencers closing out their shorts,” said Sean McNulty, director of trading at liquidity provider Arbelos Markets.

He cited as an example a recent social media post from Arthur Hayes, co-founder of the BitMEX trading platform.

An improved showing by Donald Trump, the pro-crypto Republican nominee for the US presidential election, in polls and prediction markets may also be playing a role, McNulty said.

He reported greater demand for options hedges in case Tuesday’s debate between Trump and Democratic nominee Vice President Kamala Harris stirs volatility. Harris has yet to detail her stance on crypto.

The US Bitcoin ETFs investing directly in the original cryptocurrency debuted in January with much fanfare. Unexpectedly strong demand for the funds helped to drive the token to a record high of $73,798 in March.

The inflows subsequently moderated and Bitcoin’s year-to-date rally has cooled to about 30%.

The token will likely trade in its recent $53,000 to $57,000 range until the US releases consumer-price data on Wednesday, said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for trading in digital-asset derivatives.

The inflation numbers may shape expectations for the pace of anticipated monetary easing by the Federal Reserve in the US.

Continue Reading

Bitcoin

Bitcoin ETF Allocations Surge 14% as Institutions Embrace Volatile Market

Published

on

Institutional investment in Bitcoin exchange-traded funds (ETFs) has surged by 14% in the second quarter of 2024, according to a recent report by asset manager Bitwise.

This increase in allocations comes despite a 12% decline in Bitcoin’s price during the same period, signaling a robust appetite among institutional investors for cryptocurrency assets.

The report, released on Monday, highlights that the number of institutional investors holding Bitcoin ETFs rose from 965 in the first quarter to 1,100 in the second quarter.

This uptick showed a growing institutional interest in Bitcoin, with these investors now accounting for 21.15% of the total assets under management (AUM) in Bitcoin ETFs, up from 18.74% in the previous quarter.

Bitwise Chief Investment Officer, Matt Hougan, said “The biggest question in crypto right now is whether institutions and professional investors will allocate to crypto in a major way. The fact that they are increasing their Bitcoin ETF allocations even when prices are down is a promising sign.”

Despite the drop in Bitcoin’s price, which fell by 12% in Q2, institutional investors have continued to show strong support for Bitcoin ETFs.

This trend suggests that these investors are either confident in a future price recovery or are strategically positioning themselves for long-term gains.

The report notes that institutional investors ended the quarter holding $11 billion in Bitcoin ETFs, a significant commitment that contrasts with some criticisms suggesting that these ETFs are primarily dominated by retail investors.

Bitwise disputes this view, highlighting that Bitcoin ETFs have seen adoption at an unprecedented rate among institutional players.

“The institutions are coming, and they’re coming in size,” Bitwise’s report asserts. “If institutions are willing to invest in Bitcoin during such a volatile period, it’s exciting to consider what might happen if we enter a bull market.”

This institutional enthusiasm for Bitcoin ETFs is further supported by major financial players such as Goldman Sachs, which disclosed in a recent 13F filing that it holds positions in seven out of eleven Bitcoin ETFs available in the U.S.

This level of engagement from Wall Street giants signals a broader acceptance and potential mainstreaming of Bitcoin investment.

Looking ahead, Bitwise predicts that Bitcoin ETF inflows will continue to grow, with expectations for larger allocations in 2025 and beyond.

The report suggests that the increasing institutional investment in Bitcoin ETFs could be a precursor to more substantial market shifts, particularly if the cryptocurrency market experiences a significant upswing.

Continue Reading

Bitcoin

Bitcoin Slips as US Government Moves $600 Million in Seized Crypto

Published

on

bitcoin to Nigerian Naira - Investors King

Bitcoin declined by approximately 9% in August amid the US government’s decision to move $600 million worth of seized Bitcoin to a wallet on Coinbase, the prominent cryptocurrency exchange.

The latest market turmoil has raised concerns among investors as they grapple with the potential for further government sales of confiscated digital assets.

The US government, which is believed to control roughly $12 billion in cryptocurrency, has recently transferred a significant amount of Bitcoin, sparking worries about a potential market flood.

According to Arkham Intelligence, the move is a response to the ongoing investigation into the seizure of Bitcoin from illicit activities.

The transfer to Coinbase has led to increased speculation and selling pressure in the market.

Khushboo Khullar, a venture partner at Lightning Ventures, noted, “The temporary downward pressure on Bitcoin prices is largely due to the market’s reaction to these large-scale transfers. We anticipate that this gap will close as market conditions stabilize.”

The broader cryptocurrency market has mirrored Bitcoin’s struggles. A gauge of the top 100 digital assets saw its sharpest decline since November 2022 on August 5, aligning with a broader slump in risk assets worldwide.

This downturn in digital assets contrasts sharply with the performance of global equities, which have rebounded to near record highs after initial fears of a US economic slowdown were allayed by reassuring data.

Bitcoin’s price, which reached a record $73,798 in March due to optimism over looser US monetary policy and rising interest in exchange-traded funds (ETFs), has since faced headwinds.

The funding rate for Bitcoin perpetual futures on the Binance exchange, a key indicator of speculative interest, has become notably negative, reflecting a decrease in enthusiasm from fast-money traders.

In addition to the governmental actions, the ongoing US presidential race adds another layer of uncertainty. With pro-crypto Republican candidate Donald Trump and Democratic Vice President Kamala Harris both vying for influence, the future regulatory landscape for digital assets remains unclear.

Harris, in particular, has yet to outline her stance on cryptocurrency regulation, adding to the market’s apprehension.

As of Monday morning in London, Bitcoin was trading at $58,630, with other major cryptocurrencies such as Ether and Solana also experiencing mixed performance.

Despite the current challenges, some market analysts remain hopeful that Bitcoin’s price will stabilize as the market absorbs recent developments and adjusts to the evolving regulatory environment.

Investors and analysts will be closely monitoring the impact of these government actions and broader market trends in the coming weeks, as they navigate the volatile landscape of digital assets.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending