Sell the rally, buy the dip’ is a common phrase used in the financial and investment ecosystem, a maxim that may or may not hold true with respect to Bitcoin‘s present surge. The world’s largest digital asset spiked by over 44 percent in 2020 and even though some may suggest waiting for the price to go down, the right time to cash in could be this very moment.
One of the strong arguments made in support of investing in Bitcoin is its correlation with the Stock-to-Flow model. Gold is one of the most liquid assets in the industry and its scarcity aspect improved its S2F ratio tremendously over time. Bitcoin adhered to most of gold’s characteristics as an asset, highlighting that it is 10x better than the precious metal.
In terms of factual data, Bitcoin has followed the S2F model almost consistently and over the past year, the deviations from the S2F projections have been few. However, the fact that Bitcoin’s market cap was only $190 billion at press time highlighted significant future potential. Gold’s market value is close to $8-1o trillion and considering the notion that Bitcoin is likely to follow the S2F model, this asset class may over the next decade easily reach the same market valuation.
Keeping in line with the current market, Bitcoin’s Fear and Greed Index recorded positive investor sentiment as well. At press time, the Index pictured a ‘greedy’ rating of 63, suggesting an inflow of traders. Such a scenario usually means holding back on sudden investment; alas, Bitcoin does not share the same properties as traditional assets.
In spite of being in existence for over a decade, Bitcoin remains a relatively new asset class. The digital asset is largely asymmetric, something that implies that it may not fall or dip significantly in the long-term. Short-term volatility is a thing of regularity for cryptocurrencies so, putting aside short-term dumps, Bitcoin checks all the right boxes from a long-term perspective.
The world’s largest cryptocurrency’s performance in 2019 did not disappoint either.
Source: BTC/USD on Trading View
Bitcoin registered an overall growth of over 95 percent and outperformed the likes of Gold, S&P 500, and even U.S treasury bonds. Here, it is important to note that Bitcoin did undergo a 50 percent correction from its year-to-date high of $13,800, but the rise in valuation was still substantial. The crypto-asset did not depreciate as it did after the bull run of 2017, a time when the slump pulled its valuation down from $20,000 to $3000.
The major difference between the bull run of 2017 and the present rally is market maturity and the circulation of coins. From a total of 21 million BTC, 18.2 million BTCS have already been minted. Moreover, three years ago, institutional adoption and constructive knowledge of Bitcoin was still lacking in the space, something that clouded people’s understanding of Bitcoin.
At press time, the financial industry and mainstream media are far more aware of the digital asset. In fact, regulatory agencies around the world are now taking Bitcoin’s position in the market seriously, with discussions on the regulation of digital assets common. The World Economic Forum in Davos announcing a consortium on the regulation of crypto-assets and stablecoins is evidence of the same.
While market critics around the crypto-space still believe that Bitcoin would eventually drop down to 0, market sentiment, past performance, and overall functionality of the crypto-asset disprove this argument.
The next few years should be better for Bitcoin in terms of valuation and adoption. However, it is important to note that risk remains a part and parcel of any asset in the industry. In fact, this is a sentiment shared by the Founder of Quantum Economics, Mati Greenspan as well who told AMBCrypto,
“There are many reasons to be bullish on Bitcoin at the moment, but we do need to bear in mind that as an emerging asset it is extremely risky. Investors should always take proper precautions and diversify their holdings and never invest more than they can afford to lose.”
Greenspan’s advice holds true but maybe, in order to accrue long-term profits from Bitcoin, a little leap of faith comes across as a necessity.
Bitcoin News Today – Headlines for February 22
- Analysts and traders have long been waiting for BTC to “moon” once again
- The $14k mark might be the key to send BTC back to the moon
- The forthcoming halving could send BTC price to between $55k to $100k
Bitcoin News Today – Ever since the price of Bitcoin surged by more than 1,000 percent in 2017 to hit an all-time high of $20k, analysts have been waiting for the digital currency to “moon” once again. It seems like the moon – a noun-turned-verb used to describe the price of an asset surging significantly higher – is rapidly drawing near, that is if Bitcoin can break over one key hurdle point.
Bitcoin Needs to Break Over a Key Hurdle to Head to the Moon
While the largest digital currency in the world by market cap surged as high as $20k in 2017, it did not stay on that level for long. The digital currency failed to establish any semblance of support in that area. In fact, it ended the month of December around the $14k level, a decrease of 30 percent from its all-time high as the bulls failed to maintain momentum.
Recently, Delboy – a chartist – doubled down on this in a recent tweet. In the tweet, he said that the long-term chart of Bitcoin is showing signs that the $14k level might be key in sending the price of the digital currency back to the moon.
Bitcoin (BTC) Price Today – BTC / USD
From the chart, it is obvious that once Bitcoin (BTC) surged over the monthly high of the 2013 bubble around the $1,150 mark, the bullish traction picked up quickly, taking the price of the digital currency to $20k by the end of 2017.
How High Can the Price of Bitcoin Go?
While the jury is still out on where exactly the next bull market can take the price of Bitcoin to, the consensus is a fresh all-time high of at least $50k, proven by a crazy accurate price model made by an institutional quantitative analyst. The model, which is known as a stock-to-flow model, equates to the scarcity of Bitcoin, derived from the above-ground supply divided by the rolling issuance of the digital currency, to the market cap of the asset.
It determined, to a 95 percent R squared, that after the reduction of block rewards on the Bitcoin network in May this year, the digital currency will have a fair value of anywhere between $55k to $100k. A Twitter user – GeertJancap – pointed out that according to his transfer function model of BTC’s price, the price of the digital currency will catch up to the model, created by PlanB – a pseudonymous analyst.
At press time, the world’s most dominant digital currency is struggling below the $10k level after several failed attempts to break over the $10,500 mark. Bitcoin is currently hovering around the $9,600 mark.
Bitcoin Has a Stale Block for the First Time Since 27 January 2020
- Bitcoin is known to be the most famous cryptocurrency with its price currently touching near $10,000.
- According to BitMex research, it announced Bitcoin had a first stale block since January.
- The stale blocks which are not part of the current best blockchain led to a small fork.
Bitcoin is known to be the most famous cryptocurrency with its price currently touching near $10,000 and beyond in good days. Millions of crypto-enthusiasts stalk the news about this cryptocurrency which uses peer-to-peer technology to operate with no regulations from a central authority or banks.
BitMex is a Peer-to-peer crypto-products trading platform.
According to BitMex research, it announced Bitcoin had a first stale block this morning reaching the height of 618,466 since January 27 of this year, and it was in a 19 second time gap. Stale Blocks are blocks that got successfully mined but not included on the current best blockchain, likely because some other block at a similar height who had their blockchain extended first.
A blockchain is a chain of increasing blocks contains information mainly related to finance attaching to make it a collection of records in a way which cannot be altered and every block record various transaction occurs in the blockchain. The stale blocks are newly mined and not part of the current best blockchain because it got overridden by a longer chain and the more the height of the blocks is always a good sign to the strength of the bitcoin.
The stale blocks which are not part of the current best blockchain led to a small fork. The small fork is a result of nodes when geographically closer they pick up the block that was mined near to them. The current block in bitcoin is, however, quickly accepted into the main chain.
In the blockchain, no double-spends has been observed, and the stale block contained 18 Txns excluded from the competing block.
According to the ForkMonitor
Bitcoin is at the height of 618,503
Mined by: ViaBTC
Accumulated log2(PoW): 91.692145
Latest Blocksize: 0.17MB
Latest block transaction count: 359
Gold or Bitcoin, Which will Hit $3000 First? : Peter Schiff
- Peter David Schiff is an American libertarian, Financial commentator, economist, and a stockbroker.
- Schiff earned a nickname of Dr. Doom when he more or less predicted the financial crisis of 2007-2010.
- Schiff tweeted on twitter a poll on gold and bitcoin.
Who is Peter David Schiff ?
Peter David Schiff is an American libertarian, Financial commentator, economist, and a stockbroker. He is CEO of the Chief global strategist of Euro pacific Inc and the founder the Euro Pacific Canada. Schiff as a stockbroker and Financial commentator attached strongly to Gold and sees it as a savior in times of Prolonged decline in US Dollar. His love of Gold can be easily seen through the actions in Euro Pacific Bank LTD named offshore bank, which he introduced as the first 100% genuine gold and silver physically embedded global debit card systems back in 2011.
Schiff is not a fanatic of Bitcoin and sees like any other currency or more like a tulip mania bubble. He firmly believes that like the Tulipmania bubble it is destined to fall soon and the high price is temporary, nothing can replace gold according to him.
Dr. Doom and his predictions
Schiff earned a nickname of Dr. Doom when he more or less predicted the financial crisis of 2007-2010. Schiff has been criticized a lot for his theory, predictions, and definition of inflation, which Schiff believes that the definition of inflation will increase in consumer prices after a not so certain waiting period.
Schiff is criticized on a daily basis for his predictions and today also from the official twitter handle @PeterSchiff he tweeted
Gold vs Bitcoin:
The gold vs Bitcoin debate is still on, peter Schiff’s tweet was about the performance of the Gold price in the market and compared it with bitcoin. He explained how gold is rising to $3000 and today it is up 27$ and rose up above $1,640 which is all-time high than any other currency.
As not a Bitcoin fanatic, he wrote about how Bitcoin is now trading at $9,700 and the whole cryptocurrency market is bearish which he feels could drag the Bitcoin to $3000.
The one he is not certain which he wants to get an opinion from us is from Gold or Bitcoin which one is going to reach $3000 first and people can vote it through clicking the option you feel like in the poll feature twitter provides.