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A Bitcoiner in the Senate? Is Bakkt CEO in US Govt. Good or Bad for Crypto?

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The CEO of the much-hyped Bitcoin futures platform Bakkt has been appointed to serve in the US Senate. Loeffler will replace Georgia Senator Johnny Isakson, who is due to retire at the end of this month.

At first glance, Kelly Loeffler’s appointment, like the launch of Bakkt itself, looks like an unmitigated success for the crypto industry. However, not everyone is so convinced that Bakkt and Loeffler have the best intentions for Bitcoin.

Bakkt CEO to Replace Georgia Senator, Will Bitcoin Benefit?

As widely reported this afternoon, Georgia State Governor Brian Kemp announced Kelly Loeffler as the outgoing Senator Johnny Isakson’s replacement. Loeffler is expected to take office on the first day of the new year, the day following Isakson’s retirement.

According to a report in NationalPublicRadio, many people had expected Loeffler to take Isakson’s place in the Senate, despite being a political newcomer herself. However, the Bakkt CEO is still a controversial choice. President Trump’s closest allies in the Republican Party had reportedly wanted Kemp to decide in favour of Rep. Doug Collins, an ardent supporter of US head of state.

At first glance, the appointment of a US senator so clearly identified with Bitcoin seems wildly bullish for the industry’s future. Loeffler has written optimistically about digital currency in many Medium posts previously. Meanwhile Bakkt itself purports to be an effort to bring regulation to Bitcoin market and to offer institutional investors a way to take exposure to take receipt of physical Bitcoin in a way more familiar to them.

Increasing trading volumes since Bakkt’s September launch have excited the crypto asset industry. However, as NewsBTC reported last week, this volume has been almost exclusively comprised of Bakkt’s monthly, cash-settled Bitcoin futures, rather than its daily physically-settled contracts that had so many people believing a wave of institutional investors would suddenly use the new platform to buy Bitcoin.

By never requiring traders to take receipt of actual Bitcoin, many analysts argue that futures contracts can be used to exert downwards pressure on the price of an asset. In fact, the CME Group’s Leo Melamed told Reuters at the December 2018 launch of his own trading venue’s Bitcoin futures contracts that the then new product was an effort to “tame” Bitcoin.

Other commentators on the industry have even gone so far as to say that Bakkt, like the CME Group’s futures contracts, represents an attack on Bitcoin. In the video below, YouTuber Chico Crypto (@ChicoCrypto) argues that since there is scant information about withdrawing from the Bakkt Warehouse custody solution, it’s unclear if traders could ever even take receipt of the actual Bitcoin themselves. The YouTuber contends that the lack of clear information about receiving the asset traded makes Bakkt’s futures different from any they’ve ever encountered before since such information is usually publicly available. For them Bakkt represents:

“… just another product to attack [Bitcoin’s] growth and keep the dollar dominant.”

In closing, Chico Crypto also raises a point about Loeffler’s own prior dealings with the US government. The YouTuber points out that the Bakkt CEO attended the final match of the FIFA Women’s World Cup as part of Trump’s Presidential Delegation. Such a selection seems curious given that Trump tweeted his strong disapproval of all things crypto the very same month he announced the names of those that would be accompanying him to the match.

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If Bitcoin Price Closes Under $7,400, Strong Drop Could Follow; Here’s Why

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Bitcoin has finally started to show some signs of weakness after stagnating above $7,500 for days on end, recently dipping under the key support in and around $7,400. As of the time of writing this, the cryptocurrency is trading for $7,350 on many major exchanges, posting a 2% loss in the past 24 hours.

While a 2% loss doesn’t seem decisively bearish, a leading analyst has said that a loss of the $7,400 price level, which currently doubles as the 100-period simple moving average for the four-hour chart, could imply that a strong drop in the Bitcoin price is coming. Here’s why.

Bitcoin Needs to Hold $7,400?

Nunya Bizniz, a popular cryptocurrency trader, recently noted that the 100-period simple moving average for Bitcoin has been a level of utmost importance over the past few months. He wrote that “For the past handful of months, a close above or below the 100ma has been indicative of continuation.”

Indeed, as Bizniz illustrated in the chart above, a price cross below the level always preceded massive price drops of anywhere from 10% to 20%, save for one occasion where only a 3% drop ensued.

Right now, BTC looks poised to break below that moving average, with bulls failing to keep up with bears. Should historical price action be of any current relevance, a close under $7,400 in around 30 minutes’ time (from the time of this article’s publishing) will show that the leading cryptocurrency could plunge by 10%, or maybe even more.

$7,400 is also important because it was the place where Bitcoin bottomed late in October, prior to the 40% jump to $10,500. As the below analyst pointed out in the tweet seen below, his bullish bias will break if BTC manages to close under $7,400.

While the short-term outlook for Bitcoin may be about to flip bearish again, some say that the medium to long-term directionality for the cryptocurrency remains in bullish territory.

Adaptive Capital partner Willy Woo recently noted that on-chain momentum, which the popular analyst has long claimed is correlated with Bitcoin’s macro price trends, is “crossing into bullish” territory after a multi-month downturn.

With this in mind, he asserted that the “bottom is most likely in,” meaning that any move lower than the $6,500 plunge “will be just a wick in the macro view.” He added that the unnamed indicator also implies that cryptocurrency investors will start to front-run the impending “halving,” the block reward reduction that will be taking place in May 2020.


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Bitcoin Price At $100,000 By December 2021: Anthony Pompliano

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  • Pompliano, the co-founder of Morgan Creek Capital, spoke about Bitcoin prices, the upcoming halving, volatility and so on.
  • He believes that Bitcoin prices will witness a lot of volatility in the next two years.

Anthony “Pomp” Pompliano, co-founder and managing partner at the venture capital fund Morgan Creek Capital, spoke to CryptoPotato on cryptocurrencies. The crypto community has been arguing about the “blockchain, not Bitcoin” narrative for a while now. This can particularly be noticed in China, where the government supports the development of blockchain-based technologies but outlaws the usage, storage, or trade of cryptocurrencies.

Pompliano said that the game-changer here is time. He added:

I think that everyone comes into the industry and they usually do it through Bitcoin. They hear about it, start looking at it, and then there’s the evolution.They go and check enterprise blockchain, check out tokenized securities, DeFi, but pretty much everyone comes back to Bitcoin. Now, that journey may take six months, 12 months, or 18 months, but I think the best thing for Bitcoin is time.

It takes time for people to get familiar with it, to start using it, to understand why it’s crucial. I think that’s going to happen at the government level, the private level, and the institutional level. So it’s just the time needed for people to get more familiar with it.

Notably, many financial and governmental institutions are welcoming blockchain-based technologies. Recently, Agustin Carstens, the General Manager of the Bank of International Settlements (BIS), suggested central banks embrace digital money. 

Pompliano said:

A great use case for blockchain is triple-entry accounting. Single-entry accounting was replaced by double-entry accounting. It’s pretty much true of all transactions and accounting for the last hundreds if not thousands of years. 

In that sense, I think the invention of triple-entry accounting is going to be huge for human development, and blockchain is a great way to do that in an automated fashion. We just announced that we led a series C funding for a company called Figure Technologies.

In that system, basically, what happens is, they created a digital mortgage, and the way that they transact with other people on Wall Street is through a decentralized settlement system. It’s triple-entry accounting that’s presiding over those transactions, so you don’t have a centralized party to do transactions.

Bitcoin halving is one of the most anticipated events in 2020. This is the event that will slash by half the miner’s rewards for adding blocks to the network. Several crypto enthusiasts expect the halving to have a significant impact on Bitcoin’s price since the supply of newly minted BTC will reduce. According to basic economic principles, when the supply of an asset is reduced while the demand remains the same or increases, its prices will surge. 

Pompliano believes the same and he added:

The halving will be a big moment for Bitcoin. I don’t think that the price will shoot up the day after it, but I do think that from the day we are right now, we will see Bitcoin’s price at $100,000 by December 2021.

With respect to the current price action, Pompliano anticipates a lot of volatility:

I think that we are now in a bull market that will extend to around two years. In that period, I think Bitcoin’s price will see a lot of volatility with days spiking up 10-12% as well as 30% crashes. Generally, though, it will continue to trend upwards.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source: fxstreet

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Bitcoin Technical Analysis: BTC/USD looks like it could break lower again

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  • There has been a fresh wave of selling in BTC/USD today.
  • There was some volume kicking in on the sell-side as the hourly trendline broke.

BTC/USD Hourly Chart

Looking at the 1-hour BTC/USD chart below you can see the trendline has broken and been retested. 

Overall this is a rejection pattern and could indicate that the price is heading lower.

Now 7,428.50 is the low that needs to be taken out for the bears to assert their dominance.

The volume pressure looks clearly like the sell-side are winning the battle at present.

On the topside the main resistance holds at 7,933.40 and we are pretty far from there at present.

Bitcoin technical analysis

Additional Levels

BTC/USD

OVERVIEW
Today last price7426.57
Today Daily Change-95.13
Today Daily Change % -1.26
Today daily open7521.7
TRENDS
Daily SMA207453.27
Daily SMA508200.62
Daily SMA1008741.52
Daily SMA2009381.18
LEVELS
Previous Daily High7576.77
Previous Daily Low7390.42
Previous Weekly High7770.78
Previous Weekly Low7082.55
Previous Monthly High9580.19
Previous Monthly Low6526.82
Daily Fibonacci 38.2%7505.58
Daily Fibonacci 61.8%7461.61
Daily Pivot Point S17415.83
Daily Pivot Point S27309.95
Daily Pivot Point S37229.48
Daily Pivot Point R17602.17
Daily Pivot Point R27682.64
Daily Pivot Point R37788.52

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Source: fxstreet

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