Bitcoin price is rising higher than $ 50,000 but there is no denying that some of the momentum the asset gained at the beginning of the year was lost. The decrease in volatility may also indicate that the bull run may be over for the time being. But rather than witnessing a major correction, Bitcoin price action could instead trade sideways for longer, which should be healthy before making a push to new record highs.
BTC/USD 4-hour chart | Source: TradingView
The volatility disappearing could indicate Bitcoin price hype has subsided
According to statistics from CoinMarketCap, the volume of Bitcoin transactions in the past 24 hours was $ 51.3 billion, the capitalization was recorded at $ 1,019 billion.
Many professional investors believe that BTC is recovering and growing strongly thanks to the economic stimulus package overcoming the $ 1,900 billion COVID-19 epidemics of US President Joe Biden has just been approved by the Senate. The accelerated progress of the COVID-19 vaccination, making the US economic outlook much brighter than predicted, also had a positive impact on the cryptocurrency market.
Along with that, major financial institutions are still interested in Bitcoin and the crypto market. JPMorgan Bank recently announced it is recruiting 34 people to work in the blockchain sector in many countries such as the US, India, and Singapore. Similarly, German private bank Donner & Reuschel announced it will offer cryptocurrency buying and custody services to its customers.
Bitcoin soared with many other Altcoins. Ethereum up 4.79%, Binance Coin up 25.5%, Cardano up 7.4%, Polkadot up 11.7%, Ripple up 2.2%, Litecoin up 7.8%, Bitcoin Cash up 4.6% . The total market cap is currently recorded at $ 1,700 billion, up 5.8%.
Bitcoin has taken a central place in the world of finance during its ongoing pandemic. Unprecedented money printing to fund stimulus packages made hyperinflation a reality but turned the world’s attention to Bitcoin.
As the money supply expands exponentially, the crypto supply remains capped at just 21 million BTC. The uptrend has aroused interest in cryptocurrencies as a whole, however, the bull run could be nearing an end, according to the volatility.
Bitcoin volatility is disappearing as time goes on | Source: Arcane Research
The latest market report from Arcane Research calls attention to the fact that the volatility of Bitcoin – a feature where the asset is well known – peaked in February alongside local highs.
Since then, the volatility has begun to weaken, which the report claims could suggest that the peak of the hype is over. The peak crypto craze seems to have gone to hell after Elon Musk said the top coin appeared to be overvalued, just by the time the BTC market cap surpassed $ 1 trillion.
The dollar is also starting to wake up, and the stock market is showing signs of weakness which could put the cryptocurrency at risk of a price drop. But the report said that the downside is not necessarily imminent.
Instead, Arcane Research reconsidered 2017, before the final push to the top of the bull market began.
Bitcoin could go even more sideways soon | Source: TradingView
The chart above shows that there were at least three phases of sideways action before a bull run occurred. So far, Bitcoin has only completed one of these phases and is in the midst of another wave of consolidation.
If history does repeat, current sideways price action could take much longer and another similar trading range could be ahead before pushing the final parabol.
In Argentina, several businesses accept payments in BTC, DOGE, other cryptos
Imagine going on vacation and being able to pay both your Uber driver and Airbnb host with crypto. This sounds like a fantasy for many but is reportedly now a reality for users in Argentina.
Regional news publications announced that the crypto company Bitrefill was offering 138 prepaid cards in order to pay to different businesses. Some taking part in the initiative include Frávega, Lacoste, Dexter, Isadora, Cheeky, Airbnb, Uber, Movistar, Claro, and Personal.
Users can pay in six different cryptocurrencies, which are Bitcoin [BTC], Ether [ETH], Dogecoin [DOGE], Litecoin [LTC], Tether [USDT], and Dash [DASH]. However, in order to use the card, assets are first converted to dollars or euros, and then converted again to Argentine Pesos [ARS] to complete the transaction.
What does Bitrefill’s initiative reveal about the state of crypto adoption in Argentina? Data may hold the answer. The Blockchain LatAm Report 2021 by Sherlock Communications stated,
“…66% of respondents were most concerned with protecting their savings. This reflects recent inflation rates in the country: 36.1% in 2020 and 53.8% in 2019, the highest in 28 years.”
Furthermore, as people in Argentina are legally restricted from buying more than a small and taxable amount of U.S. dollars every month, the attraction of crypto is easy to understand. Adding to this, there are around 20 legal crypto exchanges in the country, and one of them – Ripio – hit a million users in 2020.
However, it’s worth noting that there is a tax of 15% on income gained from selling digital currencies. At the last count, there were 12 Bitcoin ATMs/tellers in Argentina. Out of these, 11 were located in Buenos Aires.
Not just a shopping spree…
Apart from crypto adoption, companies are also eyeing the country as a destination for Bitcoin mining. One major reason for this is the cheap cost of electricity in Argentina, with subsidies for the same.
In October, the Canada-based Bitfarms announced that it was constructing a 210 megawatt BTC mining farm in Argentina. More than 55,000 new mining rigs are expected to be on-site. According to the Cambridge Bitcoin Electricity Consumption Index, Argentina’s share of the average monthly hashrate in August 2021 was 0.05%.
Hedge Fund Billionaire Paul Tudor Jones Says Gold Losing the Race Against Crypto As Inflation Hedge
Hedge fund billionaire Paul Tudor Jones says that crypto is currently his preferred way of hedging against inflation.
In a new interview with CNBC, Jones says that crypto has acted as a great hedge as of late and is winning the race against gold.
“Crypto has been a great hedge… I said then, I said now, I’ve got crypto in single digits in my portfolio. I have a small trading position in our fund. I do think we’re moving into an increasingly digitized world. Clearly, there’s a place for crypto, and clearly, it’s winning the race against gold at the moment. So yes, I would think that would also be a very good inflation hedge. It would be my preferred one over gold at the moment.”
The billionaire, who heads investment management firm Tudor Investment Corporation, says that while the new Bitcoin futures exchange-traded fund (ETF) is a regulated and legitimate product, he thinks a better investment is to own physical BTC.
“I think a better way to get in would be to actually own physical Bitcoin, to take the time to learn how to own it and carry it. I think the ETF will be fine. I think the fact that it’s SEC approved should give you great comfort.”
The investor says that embracing Bitcoin is part of the American character and that China’s refusal to do so may have economic consequences for the country in the future.
“I think crypto is here to stay. Look, this is the United States of America right? The reason we’re the most dominant economic power [in] the world is because we unleash our individual entrepreneurialism and creativity. And you’re seeing China do the exact opposite. That place is on, economically, a slow boat to the South Pole. As long as the US can continue to unchain our entrepreneurs, we’re going to always be in the dominant position.”
The Real Opportunity for Bitcoin and Crypto Will Come From This Group of Investors, Says Shark Tank Star Kevin O’Leary
Shark Tank investor Kevin O’Leary says that a group of investors could transform Bitcoin (BTC) and the crypto markets when they decide to allocate capital to the space.
In a new interview with Bitcoin bull Anthony Pompliano on The Best Business Show, the celebrity investor says that there will be a massive opportunity for crypto once sovereign funds in the Middle East invest in digital assets.ADVERTISEMENT
“The real opportunity is not with the family offices or hedge funds that operate out of the Middle East. The real money is in the actual sovereign funds in both Saudi Arabia and the United Arab Emirates. It’s billions and billions and billions of dollars.
They have not allocated to crypto yet. When that happens, you’ll see it reflected in the price of Bitcoin. There’s no question about it. They have such long-term views in those funds, and the funds are so large.”
O’Leary says that given the size and number of the funds, even a 1% allocation would have an impact on the markets.
“They generally abide by discipline and principles of risk diversification, so they may have a mandate, for example, that no stock represent more than 5% of the fund or no sector more than 20%. Those are diversification mandates that are used all around the world, and they do that there, too.
But when you’re dealing with a multi-billion dollar mandate, and some of these, they’re the largest pools of capital in the world. A 1% allocation is a tremendous amount of money.”
The investor says at the moment, Bitcoin is the only digital asset on the sovereign funds’ radar. He predicts that they could easily decide to allocate 1-3% just on BTC.
“I speak to those guys almost every day. They would immediately go to 1% to 3% on Bitcoin alone. Just Bitcoin, let alone Ethereum or any level-1 or level-2s on the chain. They haven’t even thought about that. They’re just thinking about Bitcoin and owning that as an asset. The amount of capital that will come into this market when the regulator approves Bitcoin as an asset or currency or a security, or whatever they’re going to regulate it as is going to be unbelievable.”