Connect with us

Crypto

Bitcoin On Course To Hit $100K Nine Months From Now, Bitbull CEO Predicts

Published

on

Even in times of war, the intrigue and enigma that have always surrounded Bitcoin – the world’s most sought-after digital asset – still hog the headlines.

In cases like these, Russia’s protracted invasion of Ukraine has put the entire cryptocurrency market to the test multiple times over.

Despite a decline in the price of Bitcoin since November, the digital asset is still on course to hit the vaunted $100,000 per coin mark, according to the CEO of a cryptocurrency and blockchain hedge fund management firm.

$100,000 Still A Possibility For Bitcoin

Joe DiPasquale shared his viewpoints about Bitcoin’s role in the Russia-Ukraine war and his bullish forecast for the cryptocurrency markets in the coming months.

According to the Bitbull CEO, despite the gloomy mood that has dominated the crypto markets since the start of the year, Bitcoin is still on course to hit $100K within the next 24 months.

DiPasquale stated that the year 2023 is “a fair bet” and that people may require some time this year to “relax and let off some steam.”

Biden Crypto EO Lifts Bitcoin

On Thursday, a robust Wall Street surge — mixed with anticipation about US President Joe Biden’s cryptocurrency executive order — aided in the recovery of digital currencies such as Bitcoin, which gained nearly 10% to around $42,000.

Speaking of “safe bets,” it appears as though DiPasquale’s positive prognosis for Bitcoin carries a lot of weight, particularly now that the US government has expressed a strong interest in crypto and its potential to reshape the financial status quo.

Related Article | Yellen’s Positive Remarks About Biden’s Crypto EO Push Bitcoin Past $41,000

BTC total market cap at $741.70 billion on the daily chart | Source: TradingView.com

“The devil will be in the details,” according to Ryan Selkis, founder and CEO of Messari, a cryptocurrency research platform.

“While we’ll have to wait and see what the big regulators suggest in the months ahead, this is a positive move, and there were no red lights on the first read,” Selkis added.

Bitcoin As A Currency

Following the outbreak of the Russia-Ukraine conflict, Bitcoin displayed a mixed reaction, initially plunging alongside stocks but then making a significant recovery. Many questioned if cryptocurrency could still be called the digital equivalent of gold.

“We need to view Bitcoin as a currency, not as digital gold, but as one that is not subject to the whims of a central bank and instead has a very limited supply,” DiPasquale said.

Individuals are adopting cryptocurrencies in order to mitigate the effects of financial turmoil on both sides of the conflict.

Evading Sanctions

There are growing concerns that Russia’s elite will attempt to dodge Western sanctions through the use of cryptocurrencies.

According to analysts, Russia may shift to Bitcoin mining — an industry in which President Putin previously declared that Russia has a “competitive edge” — or to the use of non-compliant exchanges, a tactic currently exploited by Russian hackers.

As has been the case with a number of other analysts in recent weeks, DiPasquale believes bitcoin is unsuited for that purpose.

Related Article | Leading News Outlets In Ukraine Aim To Secure $1 Million By Selling NFTs

Featured image from NaijaGreen Movies-Music, chart from TradingView.com

Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Crypto

Why Gold Is Beating Bitcoin In 2022

Published

on

Bitcoin continues to underperform as a general “risk-off” sentiment has investors driving toward gold as a safe haven asset.

Not Risking It

Concerns about the Russo-Ukrainian war continue. The U.S. inflation struggles at a four-decade high and Fed rate hike fears prevail. The uncertainty extends to the world economy as a recession is expected instead of a recovery. The IMF’s managing director Kristalina Georgieva called it “a crisis on top of a crisis.”

“The war is a supply shock that reduces economic output and raises prices. Indeed, we forecast inflation will accelerate to 5.5 percent in advanced economies and to 9.3 percent in emerging European economies excluding Russia, Turkey, and Ukraine. ” The IMF stated last week.

Reuters recently quoted Commerzbank analyst Daniel Briesemann, who talked in a note about the factors that have “lent buoyancy to gold in recent days,” mentioning the “strong buying interest on the part of ETF (Exchange Traded Fund) investors” and news about the Ukraine war.

“Russia appears to be preparing to launch a major offensive in the east of the country – that is generating considerable demand for gold as a safe haven,” the analyst said.

This summarizes the “risk-off” sentiment at the moment. As expected, equities suffer as investors are selling risky assets and purchasing the ones negatively correlated to the traditional market. Thus, the crypto space is struggling alongside de stocks market and gold is rising.

Bitcoin Outperformed By Gold

Data from Arcane Research’s latest weekly report notes that it has been a gloomy year for the “digital gold.” In the first three weeks of 2022, Bitcoin sank 25% and it is still down by 18% in the year despite its slight recovery.

Similarly, Nasdaq records a 19% decline in the year, having underperformed against bitcoin “by a small margin,” notes the report, adding that “This is surprising given that bitcoin has tended to follow Nasdaq, albeit with higher volatility.”

The general fear over geopolitical and macroeconomic uncertainty has given gold the safe-haven asset spotlight once more. The asset outperformed all the other indexes seen below with a 4% gain.

Physical gold outperforming “digital gold” in 2022 | Source: Arcane Research

Meanwhile, the currency market is performing with “the same risk-off patterns.” The Dollar has been proving its “risk-off” dominance as the US Dollar Index (DXY) is up 7%. The Chinese yuan has taken a hit over concerns about the country’s “zero-covid” policy –which creates issues for the global supply chain– and the slowing down Chinese economy. In contrast, investors have been running to the US Dollar for safety.

Bitcoin supporters usually refer to the coin as “digital gold” alleging it is a safe haven asset, and this narrative had held well while BTC had been “uncorrelated with most other major asset classes,” but the tide is shifting with the 2022 scenario as investors are rather placing the coin “into the risk-on basket”.

A previous Arcane Research report indicated that bitcoin’s 30 -day correlation with the Nasdaq is revisiting July 2020 highs while its correlation with gold has reached all-time lows.

A pseudonym traded noted that “As Bitcoin adoption goes on and more institutional investors enter the market, the correlation of BTC and stocks becomes more and more tight. That is a paradigm that the crypto world struggled to come to terms with in the past but is now more real than ever. A healthy stock market is good for Bitcoin.”

Meanwhile, the general sentiment of traders seems to be bearish, with many saying that the coin could visit the $30k level soon.

Bitcoin
Bitcoin trading at $39k in the daily chart | BTCUSD on TradingView.com

Source link

Continue Reading

Crypto

Attendees talk the future of NFTs

Published

on

The crypto community headed to Nassau in the Bahamas this week for the inaugural Crypto Bahamas conference.

Like most conferences, panels fill up the agenda and on Wednesday the topics at Crypto Bahamas ranged from NFTs to crypto in sports and to asset allocation in Web3. During one particular conversation, titled Evolution of NFTs: Culture, Utility and Regulation, panelists had some insightful musings on the NFT market.

To put the Crypto Bahamas conference into context, Sam Bankman-Fried’s cryptocurrency exchange FTX moved its headquarters from Hong Kong to the Bahamas in Sept. 2021. It recently inked a multi-year partnership with Anthony Scaramucci’s investment firm SkyBridge Capital, and its events arm SkyBridge Alternatives, or SALT. They jointly presented the conference.

That’s why the NFT panel consisted of multiple perspectives from Tristan Yver, head of strategy at FTX U.S., Joseph Doll, attorney at Fenwick law firm, Roham Gharegozlou, the chief executive officer at Dapper Labs, and Sarah Hammer, the managing director of The Stevens Center for Innovation in Finance at The Wharton School. Zack Guzman, writer for the Meta-owned newsletter platform Bulletin, moderated.

Gharegozlou pointed out how new the NFT market truly is when “most people have only been thinking about it for a year and a half,” making valuations “very immature.” As the CEO of Dapper Labs, the company behind NBA Top Shot,  Gharegozlou recognized that “utility, rewards and the how you value and NFT is primarily based on the strength of that of the community.”

He added that a good way for an NFT collection to build a strong community is to have multiple tiers of scarcity. In the case of NBA Top Shot, at the higher price end there is extreme scarcity, but there are also millions of “common” moments so that people can “get their first NFT and see how it feels without breaking the bank.” 

Tristan Yver echoed that the current valuation and pricing model for NFTs is based on a collective perception on value based on the amount of people willing to buy an asset for a certain amount. He anticipated a “movement away from this consensus view to a more unique singular view where people buy things that resonate with them rather than what resonates with a larger community.”

Joseph Doll chimed in to say that “communities need to be thoughtful about democratizing access.” There are some “massive” barriers to entry to certain projects, he said, including not being early enough or not having enough capital at the time. He questioned, “That’s not what crypto is about, right? It’s kind of about the exact opposite of that.” Democratization, he suggested, can come in the form of derivative projects at better price points.

Another important point brought up by Yver was the reality of scams, especially on Discord and Twitter. He said that “we need to move past security aspects to be able to really bring in the next large mass of users.” He recommended talking among family and friends or asking a Discord moderator to make sure “you click the right link when minting that NFT” because “wallet security sucks right now.”

Gharegozlou even said that Elon Musk, the new owner of Twitter, should use Web3 to fix Twitter’s fraud problem, just as Discord should use Web3 authentication and verification as well. “Once NFT’s are the sort of identity bridge across all these different social networks, identity and assets, authenticity, provenance,” then the system can be more resilient he added.

When asked what “main alpha” the audience should bear in mind, Doll said to engage with and be part of these NFT communities even if it’s “scary,” because getting scammed is a “part of the journey.”

Sarah Hammer, who leads the Cypher Accelerator at Wharton business school, said that the school is launching an incubator specifically for NFT projects in partnership with Dapper Labs because the “NFT model is a business model for the future.” She emphasized that the greatest way to grow and innovate in the space is to increase education efforts in order to get more people learning and working together.

Related: Goldman Sachs reportedly eyes FTX alliance with regulatory and public listing assistance

Recently the Bahamian government allowed residents to use digital assets, including the world’s first central bank digital currency, or CBDC, to pay for taxes in 2022.