Bitcoin Hitting $10,000 Will Kickstart Mass FOMO, Quadruple BTC in Months: Fundstrat | ELEVENEWS
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Bitcoin Hitting $10,000 Will Kickstart Mass FOMO, Quadruple BTC in Months: Fundstrat

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The Bitcoin (BTC) bull run has barely even started, but Fundstrat Global Advisors is absolutely euphoric. In a graphic published recently, the investment advisory firm suggested that the “Fear of Missing Out (FOMO)” is quickly materializing in the cryptocurrency markets, boding well for BTC’s performance in the short to medium term.

Fundstrat’s Lee Bullish on Bitcoin

In a recent research note, posted by Financial Times’ Adam Samson, the firm’s head of research Tom Lee explained that the Bitcoin market is currently experiencing “Level 5” FOMO according to Fundstrat’s  “Degree of FOMO” scale. As seen above, this doesn’t mean that the cryptocurrency market has peaked though.

Fundstrat notes that investors have yet to experience “full-blown” FOMO, marked by a reading of “Level 10”. It is unclear how Fundstrat came to such a conclusion, but the company’s analysts are known for using the Bitcoin Misery Index to determine overall investor sentiment and the market’s overall direction.

Related Reading: Institutional FOMO to Drive Bitcoin Price Beyond $20,000 And To Unseen Heights

Once Bitcoin reaches $10,000, “Level 10” FOMO will grace this market, which last occurred when BTC blipped above $4,500 in late-2017. If history is any guide, the cryptocurrency market will shoot even higher once $10,000 is breached. As Lee wrote on Twitter earlier this month, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.”

While Fundstrat has long had its eye on the $10,000 price point, its analysts never indicated a price target — until now anyway.

In a recent podcast with Binance’s chief financial officer, Wei Zhou, Lee explained that once $10,000 is breached, all hell will break loose for the cryptocurrency market. This corroborates the aforementioned analysis of this nascent market’s “FOMO levels”.

Per CCN, which reported on this first, the Wall Street analyst stated that once $10,000 is breached, there will be a “fast and furious” move to $20,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping move.

Is $40,000 Possible? 

While $40,000 seems miles away — and it is — many are sure that this price point is within Bitcoin’s grasp, even in the medium term. Analyst PlanB, known for his use of the stock-to-flow ratio (SF), recently explained that the impending block reward reduction will give Bitcoin a fair valuation of $55,000.

Per previous reports from NewsBTC, he explained that BTC abides by similar valuation rules than gold’s, in that you can use its inflation rate to determine a “fair” valuation. As it stands, Bitcoin has an SF ratio of around 25, implying an inflation rate of 4%. Once the halving hits, however, Bitcoin’s SF ratio will move past 50 to approach that of gold, giving BTC a lower inflation rate than most fiat currencies.

With there being a “nice linear relationship” between SF and the market valuation of an asset, PlanB suggests that Bitcoin would be fairly valued at $1 trillion, giving each coin a price of $55,000.

While $55,000 for each BTC seems irrational for most, PlanB writes that money from silver, gold, negative interest rate economies, authoritarian and capital control-rife states, billionaires looking for a quantitative easing hedge, and institutional investors will eventually flood into this space.

This in and of itself may seem like a pipe dream, but some are sure that this is likely, especially with the increase in hyperinflation, fiscal mismanagement, and speculators looking for attractive alternative investment opportunities.

Some have been even more optimistic, however, stating that $40,000 will be just the tip of the iceberg. In fact, many have looked to $250,000 or even $333,000 as long-term price targets. We’ll need to wait and see though.

by: https://www.newsbtc.com

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Coinsource Adds Dai Stablecoin to Bitcoin ATM in Preparation of Remittance Roll-Out

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Coinsource, a Texas-based bitcoin ATM operator, announced a partnership with the Maker Foundation to make the Dai stablecoin available on its machines this summer in preparation for the launch of a full remittance service.

Coinsource will be updating all of its 230 machines in 29 US states and the District of Columbia to allow customers to buy, sell, and store Dai stablecoins.

Phase two of the rollout will launch a remittance service allowing crypto ATM and Dai users to send cash from wallet to wallet, enabling recipients to instantly redeem funds at any Coinsource machine or supported location.

Like Facebook’s Libra, Coinsource is hoping to extend financial services to an underserved and unbanked population.

“By offering support for Dai, we can provide the benefits of crypto to customers who are without access to bank accounts, while at the same time allowing them to avoid the price volatility typically associated with today’s often fluctuating crypto markets,” said Sheffield Clark, CEO of Coinsource, in a statement.

MakerDAO limits the effects of market volatility through a 1:1 soft peg to the U.S. dollar, maintained with an underlying basket of crypto assets, Collateralized Debt Positions, and automated stability mechanisms.

Additionally, MakerDAO lets users lock up ethereum as collateral via a smart contract in exchange for Dai. Roughly 2 percent – equivalent to over $340 million – of all ethereum is locked in DAO’s decentralized finance application.

Steven Becker, COO of the Maker Foundation said this partnership will remove some of the barriers to enter the decentralized, permissionless economy.

The remittance service is currently only available in the U.S.

source:.coindesk.

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Coinbase Pro Lists Ethereum-Based Chainlink (LINK) After Google ‘Name Drop’

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Despite the fact that crypto assets are bleeding out against Bitcoin, the Ethereum-based LINK (Chainlink) has recently received the support of Coinbase. This comes amid BTC’s move to $13,400, marking a 333% rally from the cycle bottom of $3,150.

LINK Down 1.2% Despite Coinbase Listing

Announced Wednesday via a blog post, Coinbase Pro, the startup’s cryptocurrency exchange for professional traders, will soon be listing LINK.

Per the announcement, starting around an hour ago, the platform will be accepting inbound deposits for the Ethereum token. Once “sufficient supply” of LINK is established on Coinbase-owned wallets and 12 hours of depositing has elapsed, Coinbase will commence trading for the asset.

Trading will take place against U.S. dollars and Ethereum. And the asset on Coinbase Pro will be supported in all jurisdictions the exchange is available in, sans New York State due to regulatory concerns.

As normal, the launch of trading will take place in four steps: deposits, posting limit orders, matching limit orders, and then full trading.

Despite this listing, however, LINK is down in the past 24 hours. In fact, according to Coin Market Cap, the cryptocurrency is down 1.2%, and down nearly 20% against the market leader, Bitcoin. This confirms this outlet’s previous reports, which revealed that by and large, the so-called “Coinbase (Listing) Effect” is dead.

Google Lauds Chainlink

This news comes hot on the heels of a statement of support for the project from Google. Per previous reports from NewsBTC, Google Cloud, the firm’s cloud computing services platform, released an article titled “Building hybrid blockchain/cloud applications with Ethereum and Google Cloud”.

While this was big news in and of itself, the crypto community focused on the article’s mention of Chainlink, which is focused on facilitating data from the Internet to be translated to and verified for blockchain.

The Ethereum project’s claim to fame is its so-called “oracle” system, which is a recently-launched product meant to improve processes made via blockchain. For instance, if someone is betting on a real-world financial scenario with the Ethereum-centric Augur, an oracle can be used to make the outcome verification process much easier. In the recent post, Google’s Allen Day adds:

“Possible applications are innumerable, but we’ve focused this post on a few that we think are of high and immediate utility: prediction marketplaces, futures contracts, and transaction privacy.”

This recent integration will allow for Chainlink, and Ethereum smart contracts by extension, to interact with BigQuery, Google’s data analyzer and portal. What this does is allows for developers to build decentralized applications that can harness Google, theoretically improving the efficiency and viability of smart contracts.

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Bitcoin’s surge past $12,000 unrelated to Facebook’s Libra, claims Susquehanna executive

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The cryptocurrency industry shot back into the mainstream media’s spotlight on the back of Bitcoin’s phenomenal surge and Facebook introducing its cryptocurrency, Libra. The timing of the current bull run was attributed to Libra’s launch by some members of the community, while others vehemently disputed this fact.

One such critic is Bart Smith, Susquehanna’s Head of Digital Assets, who stated that Libra had nothing to do with the BTC’s price increase and credit had to be solely given to the world’s largest cryptocurrency.

Smith pointed out that Facebook had not yet confirmed whether Facebook’s connecting cryptocurrency wallet will actually support Bitcoin and unless that was proven, there was no way to congratulate Libra for BTC’s growth over the past week. Smith added,

“Unless details come out that Facebook will support BTC transfer, there is no reason to give Facebook credit. This is also a clear indication that the price rise is not driven by Libra but rather because of Bitcoin’s own attributes.”

According to Smith, once Bitcoin broke the $9000 barrier, it pushed through a psychological resistance point which allowed more investors to jump into the Bitcoin ecosystem. Another positive note is the fact that Bitcoin’s previous psychological resistance was in the $5000-$6000 range. However, the same was beaten by the king coin’s stellar rise over the past three months.

Bart Smith further pointed out that the Bitcoin futures market was trading at more than 100 dollars, when compared to the preceding day, with miners raking in profits. There was a general divide among BTC enthusiasts, with some claiming that miners were getting the short end of the stick when it came to profits. However, that has changed a bit right now. Smith said,

“The above-mentioned factors together contributed to Bitcoin’s growth and Libra’s association with it can only be seen as connecting nonexistent dots.”

Source :ambcrypto

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