bitcoin

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• Cryptocurrency value rises over $14 billion in 24 hours as bitcoin rallies 10% - CNBC
• Will Bitcoin Emerge As A Winner? 5 Things To Expect - Forbes
• 3 Reasons Why Bitcoin Price is Bullish Right Now - Bitcoinist

Cryptocurrency value rises over $14 billion in 24 hours as bitcoin rallies 10% - CNBC Posted: 23 Mar 2020 09:13 PM PDT A bitcoin logo on a mobile phone. Omar Marques | SOPA Images, LightRocket | Getty Images Cryptocurrency prices rallied on Tuesday even as equity markets continue to come under pressure due to coronavirus fears weighing on investors' sentiment.  Bitcoin was up over 10% from 24 hours previously, trading at $6,569.17 at around 11:57 a.m. Singapore time, according to data from Coindesk. Ethereum was up over 7% while XRP saw a more than 5% jump in its price.  The market capitalization — or entire value of the cryptocurrency market — rose over $14 billion in 24 hours at 11:47 a.m. Singapore time to reach $182.62 billion., according to data from Coinmarketcap.com.  Cryptocurrencies took a beating earlier this month. On Mar. 8, the whole market sold off following a plunge in oil prices. Then on Mar. 12, cryptocurrencies saw $93.5 billion wiped off their value in 24 hours and a 48% crash in the price of bitcoin.  Much of the selling off of cryptocurrencies has happened in lockstep with the equity market. Over the past few years, bitcoin has been likened to "digital gold" and has been seen by some as a safe haven asset to invest in when markets are under pressure. But bitcoin, which is still priced lower than where it was at the start of the year, appeared to be behaving more like a risk asset such as an equity. Stocks in Europe and the U.S. closed lower again on Monday with cyptocurrencies bucking the trend. In Asia, stocks were broadly higher in Tuesday morning trade after the U.S. Federal Reserve announced an open-ended asset purchase program on Monday to support markets as the number of coronavirus cases globally continue to rise.  "We're seeing some really bullish bitcoin price action today along with other asset classes after the Fed announced unprecedented measures yesterday to shore up the economy," Vijay Ayyar, head of business development at cryptocurrency exchange Luno, told CNBC by email. "This has given a lot of confidence to investors." "It will be interesting to see how bitcoin fares in such an environment, given this is its first test as a safe haven asset in a market downturn and is yet to be proven."

Will Bitcoin Emerge As A Winner? 5 Things To Expect - Forbes Posted: 23 Mar 2020 05:29 PM PDT A Bitcoin exchange shop in Krakow, Poland on March 5, 2019. (Photo by Jakub Porzycki/NurPhoto via ... [+] Getty Images) NurPhoto via Getty Images Right now, the global economy is in total shock. The Washington Post reports, "Nearly every asset class—stocks, bonds, gold, oil—came under siege, with the Dow plunging more than 1,300 points." On March 12, this sent the crypto markets tumbling into panic mode. During the panic, bitcoin was oversold. In just 24 hours, $93 billion was wiped from the crypto markets, resulting in a 48% plunge in bitcoins' price which came quickly.  Bitcoin bull, Tim Draper says, "It will be bitcoin, not banks and governments that save the day." With the bitcoin halving event scheduled to take place in May, Draper believes that the price of bitcoin could reach an all-time high of $250,000 by 2022. With the bitcoin halving event around the corner, here's what you could expect to happen. Extreme price volatility Despite the recent downturn in bitcoin prices and the crypto market as a whole, Richard Ells, the CEO of Electroneum believes that the global economy hasn't seen anything like what is happening right now since the Second World War.  Ells says, "For the very short term, it would be foolish to expect anything but severe volatility in the crypto market. However, once the dust settles, I'm positive that we will see it flourishing again." As of the time of writing, bitcoin has since had an impressive 80% rebound off its price low of $3,800 to $6,206. Ells further goes on to say, "The next bitcoin halving is right around the corner and crypto adoption has been rising all around the world in the past few months. For instance, our recently launched freelance platform AnyTask has recorded more than 51,000 signups only within a week." Bitcoin resilience  Dan Schatt, CEO of the crypto lending platform Cred believes that whilst the current global liquidity crisis has the potential to destroy some asset classes, in the short-term bitcoin and cryptocurrencies will prevail. "Bitcoin has proven to be very resilient. It is still up 33% from a year ago. Why? It continues to gain favor as a store of value that will not be diluted. A dollar in 1970 is worth $0.15 today due to inflation. 50 years from now, we will not see the same rate of inflation on bitcoin," says Schatt. Schatt adds, "Bitcoin could have a massive run if more investment funds are permitted to invest in the form of ETFs or other financial vehicles. The floodgates will open when the regulatory environment becomes more clear for pension funds, insurance funds and endowments."  "Especially here in Australia, the regulators will have a field day in this asset class with regards to ETFs. They [the regulators] are conservative, risk-averse. Volatility in bitcoin is one thing but also liquidity provisions required for ETFs are another", says Camilla Love Managing Director, eInvest, an active ETF provider in Australia. "It will be a while before a bitcoin ETF is quoted on the exchange in Australia." Bulls to buy up bitcoin lows Just over a week ago, the price of bitcoin dropped an unprecedented 50%, falling from $7,700 to $3,800 in 24 hours. However, that price-point didn't last for long and is now up 80%. Jeffery Liu, CEO of the crypto processing company XanPool says, "It's been quite heavily argued that the recent bitcoin price plunge was primarily caused by the future markets." "Despite recent bitcoin sell-offs, we're still very bullish on the bitcoin price. Through our XanPool platform, which has over 20,000 transacting users across South East Asia—we currently see customers heavily buying, and very few customers selling. This indicates that the recent price movement downwards was derivative market heavy." This means that when institutional investors pull out of bitcoin, bulls step in, to it buy up.  Liu further adds, "With the bitcoin halving event around the corner, there will be less than half of the usual supply of bitcoin being sold on the open markets. As a result, "Assuming the demand stays relatively similar, the outcome of the event will trigger an increase in bitcoin price." Bitcoin prices could be bolstered by closed economies With the global economy in turmoil, bitcoin prices are likely to be bolstered by closed economies. Tim Shaler, the Chief Economist at iTrustCapital believes, "Investment product prices are driven by investors' demand for future returns for that particular product, which is a function of the overall economy and the possible returns from other products."  "We believe digital currencies have many constituent markets. Ripple seems to be driven by investors who believe digital currencies will have some future role in the interbank lending market and/or in international bank transfers. Bitcoin demand seems to be bolstered when people in closed economies (I.e. China, Iran, Venezuela) purchase bitcoin to protect their wealth—when they feel that their domestic currency is likely to lose value," says Shaler. Shaler adds, "As the threat of war between the US and Iran intensified in January 2020, bitcoin went from $7,000 to about $10,000. The run-up in 2017 may have been partially caused by China's growing effectiveness at capital controls. So, bitcoin seems to be a great purchase consideration for many well-diversified portfolios." Bitcoin prices may not rise during the halving Bitcoin halving is an event that takes place every four years, which halves the rates at which new bitcoins are created. The next halving is scheduled to take place in May. From a historical standpoint, bitcoin prices have increased due to supply and demand. This leads to two situations: The supply is high and the demand is low, which leads to a decrease in the price of the asset/product. The supply is low and the demand is high, which leads to an increase in the price of the asset/product. Bitcoin halving history Coindesk via Trading View Many crypto traders are bullish on the upcoming May halving, however, not all are convinced. Nikolai Udianskyi, CEO of BTCU and co-founder of Coinsbit Exchange says, "Many people think that after halving, the price of bitcoin will increase. But they all do not take into account one fact —the previous 2 halvings raised a stir around bitcoin. During that time, the market was full of enthusiasts who were ready to invest money and take risks."  Udianskyi adds, "Now the situation has changed a lot. There is no longer a line of people who want to buy bitcoin and other cryptocurrencies, almost all investors already have similar experience and made some conclusions for themselves whether they want to continue or not. Halving is not a key argument in the issue of bitcoin price growth."

3 Reasons Why Bitcoin Price is Bullish Right Now - Bitcoinist Posted: 24 Mar 2020 06:01 AM PDT Bitcoin price has jumped over 15% during the last 24 hours, currently trading above $6,700. Here are three main reasons behind the surge: Congress Discuss Digital Dollar by Fed to Fight Crisis House Democrats proposed two bills that revolve around the creation of a digital dollar and digital wallets, so that the Federal Reserve (Fed) could transfer digital cash directly to individuals and businesses. The move is meant to support the economy amid the COVID-19 pandemic, as the US is only after China and Italy by the number of confirmed cases. The draft bills are called "Take Responsibility for Workers and Families Act" and the "Financial Protections and Assistance for America's Consumers, States, Businesses, and Vulnerable Populations Act." According to authors of the legislation, the Fed would use a digital USD and digital wallets to transfer money to "qualified individuals," which amount $1,000 for minors and $2,000 for adults. Both draft documents use the same definition for the digital dollar: The term 'digital dollar' shall mean a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve bank; or an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System). The law might be supported by Congress, and the Fed wouldn't mind since it previously admitted that it was thinking about issuing a digital currency. Fed Pumping Unlimited Cash; Stocks, Bitcoin React Yesterday, the Fed surprised the market when it announced its unlimited support for the economy. Besides buying more Treasuries and mortgage-backed securities, the central bank would also buy corporate bonds and related exchange-traded funds (ETFs). Johnny Fine, Goldman Sachs' head of Investment Grade Bonds told CNBC: This is unprecedented action by the Fed. Wow. The Fed will be buying investment grade corp bond #ETFs like presumably $LQD $VCIT $SPIB. These funds have diversification and liquidity but demand for underlying bonds has weakened. This is a whole new world. https://t.co/LflFWLGOiX — Todd Rosenbluth (@ToddCFRA) March 23, 2020 The Fed will buy corporate bonds under a program called the Secondary Market Corporate Credit Facility. The Fed's unlimited quantitative easing boosted stock markets, which encouraged many institutional investors to look through other assets, including Bitcoin. China Has Almost Beaten COVID; Potential Cure Tested Worldwide China has reported zero local cases for several days in a row, though the number of imported cases increases. Nevertheless, businesses in many regions are reviving. However, many are skeptical of China's reporting, and there are concerns that the imported cases might spark another wave. Another sign of hope is the antimalarial drug called hydroxychloroquine, which was recently touted by US President Donald Trump. The drug, which has been around for over 70 years, has been successfully used against COVID-19 in many hospitals in China, South Korea, and in France. However, many experts warn that the drug and its predecessor, chloroquine, haven't been officially approved as a COVID treatment. Moreover, several people got poisoned and even died of overdose by taking chloroquine after Trump's comments. While the drug is known to have potentially severe side effects especially when the dosage is ignored, many trials have already started in Europe as it is among few medications that showed impressive results against the new coronavirus. Do you think Bitcoin can break above $7,000 soon? Share your expectations in the comments section! Images via Shutterstock, Twitter @ToddCFRA The Rundown

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