Interest rates, political landscapes, and even Bitcoin’s own evolving technology – we’ll dissect how each of these elements could shape the cryptocurrency’s future. So, whether you’re a seasoned crypto investor or just dipping your toes into the digital waters, this deep dive is for you.

We’ll also share insights to sharpen your investment smarts, and perhaps learn something new about Bitcoin. Plus, we’ve got a few fun facts and tidbits sprinkled throughout to keep things interesting. Because who said finance can’t be fun?

Settle in and get ready to uncover the forces that could set Bitcoin’s next rally in motion.

This Week I Learned…

Bitcoin Beyond the Hype: The Tech Transformer

Ever think of Bitcoin as more than just a digital piggy bank? It turns out it’s a bit of a chameleon, constantly adapting and expanding its skill set. This isn’t your grandpa’s cryptocurrency.

Bitcoin’s blockchain, the currency’s technology, is undergoing a metamorphosis. While it was originally designed as a secure way to transfer money digitally, developers are now building upon this foundation to create a new world of possibilities.

Think of it like this: if Bitcoin’s blockchain were a car, it started as a reliable sedan for getting from point A to B (i.e., transferring funds). But now, innovators are transforming it into a multifunctional vehicle with features like a built-in entertainment system (NFTs) and even the potential for self-driving capabilities (smart contracts).

One of the most exciting developments is using Bitcoin’s blockchain for things like non-fungible tokens (NFTs). These unique digital assets can represent anything from artwork to music to virtual real estate, and they’re being bought and sold on Bitcoin’s blockchain like hotcakes.

Another area of innovation is the development of “smart contracts” on the Bitcoin blockchain. These self-executing contracts could automate everything from insurance claims to supply chain management, making processes more efficient and transparent.

So, what does this all mean for you, the investor? It means that Bitcoin’s potential extends far beyond its current role as a store of value or speculative investment. It’s evolving into a versatile platform for all sorts of digital interactions, which could significantly increase its long-term value.

The Fun Corner

Bitcoin’s Identity Crisis: Cryptocurrency or Collectible?

If Bitcoin were a high schooler, it would have a serious identity crisis. Is it a digital currency meant for everyday transactions, or is it a shiny collectable to hoard and admire?

With the introduction of the Ordinals protocol and the ability to create NFTs on the Bitcoin blockchain, the lines are getting blurrier. Bitcoin is simultaneously trying to be the star quarterback and the lead in the school play.

Who knows, maybe Bitcoin is just a multi-talented overachiever, but it makes things interesting in the crypto world. We’ll watch to see which personality ultimately wins: the practical payment system or the digital art connoisseur.

Perhaps, like many of us, it’ll embrace a little bit of both. Either way, grab your popcorn and enjoy the show!

Bitcoin’s Next Act: What’s Fueling the Anticipation for a New Rally?

Bitcoin’s 2023 performance has been nothing short of impressive, with milestones like spot ETF approvals and the halving event pushing its value to new heights. But as these catalysts fade into the rearview mirror, the question on everyone’s mind is: what’s next?

The answer, it seems, lies in a confluence of factors. Analysts are eyeing a quartet of potential game-changers that could reignite Bitcoin’s upward momentum:

1. The Fed’s Balancing Act: The Federal Reserve’s potential interest rate cuts could spark a broader market rally, lifting Bitcoin along with it. With a history of thriving in low-interest-rate environments, Bitcoin’s performance may hinge on the Fed’s monetary policy decisions.
2. Regulatory Winds of Change: The regulatory landscape for cryptocurrencies is in flux, with the possibility of new stablecoin legislation and a recently passed regulatory framework in the House. While regulatory clarity could boost investor confidence, the outcome of the upcoming presidential election may be the ultimate decider.
3. Election-Year Expectations: The political arena is heating up, and the cryptocurrency industry is watching closely. A potential shift in presidential leadership could bring a friendlier regulatory stance, potentially fueling Bitcoin’s growth. Additionally, concerns about the national debt under either candidate may lead investors to seek alternative havens like Bitcoin.
4. Bitcoin’s Expanding Toolkit: Bitcoin is no longer just a digital currency. It’s evolving into a versatile platform, thanks to developments like the Ordinals protocol, which allows for the creation of NFTs on the Bitcoin blockchain. This expanded functionality is attracting both investor interest and venture capital.

As Bitcoin transforms from a simple store of value to a multifaceted digital asset, its future trajectory becomes increasingly intriguing. The convergence of these four catalysts could set the stage for Bitcoin’s next big act, and investors are watching with bated breath.

The Last Say

Bitcoin’s Uncharted Territory

The cryptocurrency arena is dynamic, and Bitcoin, as its pioneer, is leading the charge. This week’s Market Pulse has highlighted the forces at play in Bitcoin’s current direction. From the Fed’s monetary policy decisions to the potential regulatory shifts following the upcoming elections, the path ahead is anything but predictable.

However, perhaps the most intriguing development is Bitcoin’s own evolution. As it transcends its original purpose as a digital currency and embraces new functionalities, its potential for growth and impact expands exponentially.

Whether you’re a seasoned crypto enthusiast or a curious observer, it’s clear that Bitcoin’s journey is far from over. The coming months and years promise to be a fascinating chapter in the ongoing narrative of digital assets, and we’ll be here to guide you through it every step of the way. Stay tuned to The Market Pulse as we continue to explore the world of cryptocurrency and finance.

The post Bitcoin: Beyond the Boom – The Next Wave of Catalysts appeared first on Global Investment Daily.

The popular cryptocurrency still has a way to go to get back to its historic price level of nearly $69,000, set in November 2021. 

It appears that Bitcoin and other cryptocurrencies are shaking off the doldrums from scandals like the collapse of Sam Bankman-Fried’s FTX crypto exchange and numererous issues with Binance and other exchanges.

In short, the entire unregulated crypto industry was turning into the Wild West, and it prompted regulators to step in.

Some of the key regulatory concerns have been:

1. Investor Protection
   One of the primary regulatory concerns is ensuring the protection of investors and consumers in the cryptocurrency space. Cryptocurrencies are known for their volatility and susceptibility to fraud and scams. Regulatory authorities aim to establish safeguards to prevent fraudulent activities, market manipulation, and Ponzi schemes. They may require cryptocurrency exchanges and other service providers to implement anti-money laundering (AML) and know-your-customer (KYC) procedures to verify the identity of users.
   
2. Financial Stability
   Governments and financial regulators are concerned about the potential impact of cryptocurrencies on the stability of traditional financial systems. The rapid growth and adoption of cryptocurrencies could pose risks to financial stability if not properly regulated. Authorities may worry about issues such as the potential for cryptocurrencies to be used for money laundering, tax evasion, or as a means to bypass capital controls.
   
3. AML/CFT Compliance:
   Anti-money laundering (AML) and countering the financing of terrorism (CFT) are significant regulatory concerns related to cryptocurrencies. Regulatory bodies often require cryptocurrency businesses to adhere to AML/CFT regulations to prevent these digital assets from being used for illicit purposes. This includes reporting suspicious transactions and complying with international standards for financial regulation.

With regulatory policies kicking in, coupled with the emergence of new cryptocurrency ETFs, Bitcoin and other cryptos are making a comeback. Since October 2023, here’s how some other cryptos have fared:

• Ethereum (ETH/USD) has climbed 51% from $1,548 to $2,340
• XRP (XRP/USD) jumped 36% from .47415 to .64521
• DOGE climbed 68% from 8.267B to 13.883B

Gold Is Also on the Move

Gold has also move up above the key $2,000 level, and is currently priced at $2,029 – up 11 percent since October.

Gold is rising on geopolitical tensions, interest rate concerns and U.S. dollar strength issues.

Conclusion

Gold, Bitcoin, and cryptocurrencies have all emerged as potential safe haven assets in today’s volatile financial landscape. 

Gold, a traditional store of value for centuries, retains its reputation for stability and is often seen as a hedge against inflation and economic uncertainty. 

Bitcoin, on the other hand, has gained traction as “digital gold” due to its limited supply and decentralized nature, making it an attractive option for those seeking a modern safe haven. 

Cryptocurrencies, as a broader category, offer a diverse range of assets with varying degrees of stability, with some investors considering certain cryptocurrencies as a form of protection against economic turmoil. 

While these assets share the potential for safeguarding wealth during turbulent times, it is important to acknowledge that they also carry risks and uncertainties, and their effectiveness as safe havens can vary depending on the specific economic and geopolitical conditions. As such, individuals and investors must carefully evaluate their risk tolerance and diversify their portfolios accordingly when considering these assets as safe havens.

The post Bitcoin, Cryptos and Gold on a Tear appeared first on Global Investment Daily.

Then on Monday. October 16, Bitcoin broke through the 200 SMA, and a frenetic rally followed.

What’s Behind this Rally?

Fast Company reports that an uptick in demand is being fueled by investors anticipating the approval and listing of Bitcoin ETFs. 

Reuters suggests that Bitcoin can be ‘immune’ to the same risks that led to the demise of Silicon Valley Bank, Credit Suisse and Signature Bank.

“Bitcoin’s recent bull run looks to be mainly supported by individual investors – ranging from retail to whales – as we have seen evidence of institutions exiting during this rally,” said Zhong Yang Chan, head of research at crypto data firm CoinGecko.

Crypto skeptics aren’t convinced.

“It’s rather narrow-minded to say that bitcoin is going to succeed because a bank failed,” said Usman Ahmad, CEO of Zodia Markets, the crypto exchange of the venture arm of Standard Chartered (STAN.L) and Hong Kong crypto firm BC Technology Group.

“But confidence is almost a critical factor – confidence in the banking system has been damaged.”

Whether you’re a fan of Bitcoin or not, the bulls are clearly in charge, for now.

A Short-Term Technical Outlook fo Bitcoin

While Bitcoin shows no stopping in growth, a small pullback to the 32500 level isn’t out of the question.

When you look at the 8 Exponential Moving Average (8EMA, shown in purple), notice how price has a tendency to hug that line. The 3 EMA also has a tendency to hug the 8 EMA. When the 3 EMA gaps away from the 8 EMA, price usually snap backs like a rubber band being stretched and released. It’s mean-reversion in motion. If that happens, then we will witness a short-tem pullback from 34299 baack to somewhere around 32500.

After that, it’s anyones guess, but I plant to keep an eye on the 50 SMA, plotted in white. If it crosses the 200 SMA, then a “Golden Cross” is in play, which could fuel the resumption of a rally.

Bear in mind that all trading involves risk. Never trade with funds you cannot afford to lose.

Stay tuned to Global Investment Daily as we monitor the recent rally in Bitcoin and other cryptos.

The post What’s Behind the Bitcoin Rally? appeared first on Global Investment Daily.

The rally is proving to be a speculator’s dream, with bitcoin now boasting a 334% gain over the past 52 weeks. 

Even better for the bulls is that this megarally appears to have  real legs unlike the 2017 rally that ended in disaster after the crypto market crashed spectacularly.

The best part, however, is that the financial regulatory authorities and Wall Street finally appear to be fully embracing cryptocurrencies, with Coinbase set to go public in the current year while the Fed has just approved the first digital bank ever.

Hot on the heels of the Coinbase IPO is Bakkt, another crypto exchange which recently announced plans to go public via a SPAC merger.

And, suddenly, Guggenheim Global’s CIO, Scott Minerd’s $400K price target for bitcoin does not appear too far-fetched.

Source: Coindesk

Coinbase IPO

A month ago, Coinbase, the biggest and best-known U.S. cryptocurrency exchange, filed its S-1 with the SEC to go public. Coinbase’s timing looks impeccable after the mammoth crypto rally that has seen the crypto market surpass a market capitalization of $1 trillion for the first time ever.

But that’s just one of several factors working in Coinbase’s favor. Other unicorn listings that took place last year including Airbnb Inc. (NASDAQ:ABNB), the popular online home rental marketplace, and DoorDash Inc. (NYSE:DASH), an On-Demand logistics based startup, have been home runs with ABNB stock up nearly 150% and DASH having gained 83% since their respective IPOs. 

Airbnb is currently valued at $107B, significantly higher than the valuation of older peers such as Booking Holdings (NASDAQ:BKNG) and Expedia Group (NASDAQ:EXPE) with market caps of $86.8B and 19.9B, respectively.

The giant exchange has 35 million customers, and was valued at $8 billion when it last reported in 2018. 

Being the first crypto exchange to go public, it’s hard to project how the market will value the company. 

However, here’s an encouraging sign for the bulls: Coinbase pre-IPO shares trading on crypto exchange FTX have lately soared. Further, Coinbase has been consistently profitable for years, something few unicorns including Airbnb and DorDash can lay claim to.

That said, Coinbase still has to clear several hurdles before it can finally join the thousands of other companies in the public arena.

Controversy

Coinbase is not a stranger to controversy and heavy scrutiny by regulatory bodies.

Indeed, Coinbase has had to deal with regulator scrutiny over the years, including having to  submit information on 13,000 customers accounts to the IRS in 2018 who held more than $20,000 in cryptocurrencies between 2013 and 2015.

Further, Coinbase has had to deal with its fair share of disgruntled customers, with Mashable in 2018 uncovering more than 115 customer complaints over issues ranging from site outages and missing funds to lack of customer service.

Coinbase has frequently suffered website outages at critical times including during periods of heavy trading with the outages becoming a reputation hazard for the exchange. Further, Coinbase’s recent decision to halt trading in XRP on Jan. 19 due to the latter’s spat with the SEC has rubbed dozens of customers the wrong which would lead to drawn out court cases.

Given its checkered track record, not least because it’s a big and highly prominent cryptocurrency company, Coinbase might find itself encumbered with regulatory red tape that could lead to many months elapsing before the SEC finally gives the nod for the much-awaited listing.

But crypto bulls have been waiting for this moment for years, and waiting for several more months or maybe even a year cannot hurt too much. In fact, some crypto insiders have welcomed the imminent regulation, seeing it as another step in the crypto legitimization drive which is likely to attract more institutional capital to the industry.

As Flori Marquez, founder of crypto lender BlockFi, has aptly put it:

“There’s been an increased focus on regulators, in terms of looking at this asset class. To know that you have a crypto company in front of the SEC, having active conversations in terms of thinking, How do we make it easier for U.S. consumers to invest in this asset class, is just huge news for the space as a whole… I think it bodes extremely well for future development within bitcoin and what companies can do in the space going forward.”

Bitcoin is emerging as the biggest winner in the latest shift, with big investors now dumping the yellow metal for digital gold citing frustration with traditional financial institutions coupled with a growing lack of engagement.

Perhaps it’s not by coincidence that Bitcoin has shot to record highs at a time when institutional dollars have been fleeing gold.

At a time when bitcoin and cryptocurrencies have been flying, gold has been steadily losing momentum after hitting its historical high of $2,075 per ounce in August.

The Grayscale Bitcoin Trust (GBTC) has recorded inflows of almost $5 billion since October, compared with outflows of $7 billion for gold ETFs, according to JPMorgan. GBTC now boasts $1.27B in assets under management (AUM).

As former commodities hedge fund manager Jean-Marc Bonnefous has noted, gold was the leading safe haven of the past world and baby boomer generation but is now being replaced by automated assets like Bitcoin. A recent global survey by deVere, one of the world’s largest independent financial advisory and fintech organisations, has revealed that millennials, too, prefer bitcoin to gold as a safe-haven asset.

Indeed, Scott Minerd says he arrived at the $400,000 target for bitcoin based off his analysis of gold, and that crypto is now more desirable than the yellow metal. In other words, bitcoin could see gains of 1,000% from here as it continues to replace gold as the preferred safe haven.

Nevertheless, Minerd himself says the crypto’s latest parabolic run has been driven by a speculative frenzy that could result in near-term weakness. Minerd has advised investors to take some profits at this point.

The post Why Bitcoin Could Be Headed to $400,000 appeared first on Global Investment Daily.

Suddenly, last year’s bullish predictions that BTC could eclipse the 2019 high of $12,920 do not appear so far-fetched. 

Meanwhile, the rest of the crypto universe has been even more impressive: The collective market cap of altcoins such as Ethereum, Ripple, Bitcoin Cash and Bitcoin SV have nearly doubled since the beginning of the year.

There are several reasons that can explain the strong performance by cryptocurrencies in the current year including gradually filling their boots as a safe haven during turbulent times, stimulus packages, a weakening dollar as well as Bitcoin’s third halving, which happened in May 2020.

Source: CoinMarketCap

Source: Investing.com

But predicting long-term crypto trends can sometimes be a fool’s errand due to the extreme volatility of cryptocurrencies, the still nascent state of the industry, the fact that crypto performance is mainly driven by speculation, and also because the space remains largely unregulated.

Nevertheless, here are our top 5 long-term trends to watch in the sector:

#1 Transition to digital gold

Source: TradingView

Since its inception 11 years ago, Bitcoin has frequently been touted as digital gold. However, the Covid-19 pandemic has finally allowed Bitcoin’s safe haven credentials to truly shine through. 

Following the disruptive effects of the pandemic on economies, the world’s governments have unveiled massive monetary and fiscal stimuli (over $15T) in a bid to forestall an economic meltdown. Huge cash injections into the global economy can weaken currencies such as the dollar and potentially trigger inflation which in turn encourages investors to park more of their money in safe haven assets such as bitcoin and gold.

This appears to have started already.

The U.S. dollar has declined 10.2% against a basket of the world’s leading currencies since March shortly after the Senate approved the historic $2 trillion stimulus package. Meanwhile, Bitcoin and gold have rallied sharply in tandem, with Bitcoin having more than doubled from its March lows while gold is now hovering at all-time highs.

Last year, U.S. Congressman Brad Sherman (D-CA) claimed that Bitcoin posed a threat to the dollar’s dominance in the global economy. You can expect Bitcoin’s safe haven credentials to continue to shine especially as economies begin to grapple with the unintended consequences of the generous stimulus packages.

#2 More Institutional Money

After initial resistance, institutions and even central banks have warmed up to the idea of cryptocurrencies.

In 2019, the U.S. Securities and Exchange Commission (SEC) approved the first Act-regulated Bitcoin fund thus opening the doors further for Bitccoin’s adoption by institutional investors. Analysts now believe that a Bitcoin ETF might not be far off. Meanwhile, the Grayscale Bitcoin Trust (BTC), a fund that facilitates investor exposure to BTC without the hassles of buying, storing, and safekeeping actual BTC, has seen its Assets Under Management (AUM) soar to $4.5B. 

In January, a survey by Bitwise and ETF Trends found that 9% of independent registered investment advisors (RIA) allocate client funds to cryptos with financial advisors planning to double their allocations to 12% in the current year. Meanwhile, the Fed is mulling launching a currency-backed stablecoin like Ripple in order to facilitate secure, real-time payments and settlements. Facebook has launched the Libra cryptocurrency project while the New York Stock Exchange’s parent company Intercontinental Exchange (ICE) and Microsoft are backing the Bakkt crypto exchange.

In May, famous hedge funder Tudor Jones told Bloomberg that he believes Bitcoin is a good hedge against “great monetary inflation’’ and that his $22B Tudor BVI fund could increase Bitcoin futures allocations into as much as the low single-digit percentages.

With institutions increasingly opening up to cryptos and the SEC more willing to authorize more crypto-backed funds, it might only be a matter of time before cryptocurrencies finally move into the investment mainstream.

#3 Bitcoin Upgrades

Unlike smaller cryptocurrencies, Bitcoin does not receive serious upgrades very often mainly in a bid to maintain its soundness and stability. However, the leading cryptocurrency could see a flurry of upgrades in the coming years.

Bitcoin is expected to receive the so-called ‘soft forks’ in the form of Schnorr, Taproot, and Tapscript. The soft forks–which are mainly intended to improve Bitcoin’s privacy and scaling– are still under review and could be launched later during the year or in the next year.

Source: CoinTelegraph

Meanwhile, new developments are expected to take place on layers above the base Bitcoin protocol. Notably, the Lightning Network is a solution that is expected to make Bitcoin transactions faster and also enhance cheaper Bitcoin micropayments. The argument goes that Bitcoin transactions need to be verified much faster if it ever hopes to become a fully-fledged alternative that can compete with currently existing payment systems. For perspective, the Bitcoin network processes a mere 7 transactions per second compared to Visa’s average of 24,000.

#4 Rise of the Altcoins

Source: TradingView

We have so far focussed our cryptocurrency navel-gazing on Bitcoin, and for good reason: Bitcoin remains, by far, the most dominant cryptocurrency. According to CoinMarketCap, currently there are 5,837 cryptocurrencies in circulation with a combined market cap of $328.6B. Of this, Bitcoin commands a market cap of $205B, or 62.4% of the entire market.

Nevertheless, altcoins have been enjoying another stellar run even bigger than Bitcoin’s. The tilt back towards altcoins can be chalked up to several factors. First off, there’s renewed confidence in the value proposition of Bitcoin alternatives after JP Morgan reported positive progress with its ethereum-based interbank payments system.

Second, the launch of Ethereum 2.0, an extensive upgrade that’s  intended to radically transform the Ethereum smart-contract platform, remains on track for year-end. The highly ambitious project is likely to bolster interest in Ethereum and other leading altcoins.

#5 Crypto Shakeout

On the opposite side of the spectrum, a shakeout for the crowded crypto space could be looming.

Nouriel Roubini, an American economist and avowed crypto sceptic, belongs to the camp of those who believe that a cryptopocalypse is not far off. Roubini told delegates at a recent CC Forum conference in London that in years to come, there won’t be thousands of competing cryptos as is currently the case. Brock Pierce, an entrepreneur and chairman of the Bitcoin Foundation shares similar views.

There’s some credibility to their bearishness though. 

Some Bitcoin experts believe that upcoming innovations such as the Lightning Network and Bitcoin Sidechain are likely to eventually render many altcoins worthless.

The post Top 5 Long-Term Cryptocurrency Trends To Watch appeared first on Global Investment Daily.