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Bitcoin was down early Thursday to about $11,250, extending Wednesdays sell-off and falling to its lowest price since early August.[Update: At press time prices had slumped further to around $10,850.]
The cryptocurrency tumbled 4.4% on Wednesday, the most in a month, leading to a heightened level of margin calls and position liquidations. Prices appeared to fall in sync withgold and silver prices, which tumbled as the dollar reboundedfollowing a recent slide.
Failure to hold at the $12,000 level has turned the milksour, the crypto trading firm Diginex wrote in a note to clients. Leveraged longs have been forced to drink it.
With stocks soaring to new records after a decade-long climb, traders in traditional markets are asking how much higher theycango in the midst of a global pandemic, openly discussing whether the market is justpropped up by government stimulus checks and Federal Reserve money injections.
The conversation around bitcoin is very different. The assumption among many digital-asset investors is the cryptocurrencys price will definitely, inevitably go higher, much higher. Its only a matter of time.
Cameron and Tyler Winklevoss, who run the cryptocurrency exchange Gemini, wrote last week thatbitcoin prices could reach $500,000, in an extensive analysis that somehow relates to adatabase of 600,000 asteroids.
Nobody really knows if any of that will pan out, of course. Whats clear is a lot of investors have bought bitcoin because they see it as a deep out-of-the-money option (with no expiration date) on financial Armageddon, severe currency debasement or at the very least an inflation rate well above the Federal Reserves 2% annual target. According toCoinDesk Researchs monthly review published this week, bitcoins price appears to be rising whenever the dollar falls in foreign-exchange markets.
Bitcoin costs $11,200 now, and it might be possible to lose it all, but it also might be worth $500,000 at some point. Thats the general gambit anyway.
Invented just 11 years ago, bitcoin is exceedingly difficult to value partly because it has such a short track record. Similar to gold and many other commodities, the cryptocurrency offers no yield,so bond math wont work. Bitcoin has no earnings or dividend, so stock analysis wont work either.
Philip Bonello, director of research for the money manager Grayscale (owned by CoinDesk parent Digital Currency Group), says his favorite chart for thinking about bitcoins price trajectory might be one showing holders versus speculators. A holder in this case is defined as a bitcoin that has not moved for one to three years, while a speculator coin has moved in the past 90 days.
An increase in holders is considered likely bullish, while an increase in speculators is likely bearish, according to arecent Grayscale report. The idea is that its positive for the market if more investorsappear to be holding the cryptocurrency for the long term, versus those who merely appear to be in it for a quick volatility ride.
Right now, the chart shows holders increasing and speculators decreasing. According to Grayscale, its a similar structure to that of early 2016, just before bitcoin went on a bull run toward its all-time high around $20,000.
Its reassuring, Bonello said Wednesday in a phone interview, that the sentiment of the investor base is growing day by day. The holders appear to have been unfazed by the volatility witnessed in March, when the spread of the coronavirus quickly sent bitcoin prices swooning from above $9,000 to below $5,000. Its probably unlikely that theyre going to sell right now at $11,000, Bonello said.
All of this might mean nothing for the future price of bitcoin. It just shows that a growing number of investors are holding onto their tokens in a bet that the cryptocurrencys price will or even that it might eventually go up. By a lot.
Ether (ETH):Open positions in Deribits ether options hitrecord high above $500 million.
Bitcoin Cash (BCH):Proposed changes by development team couldreduce rewards for miners, splitting community support.
OKB (OKB):OKEx CEO says foundation burned 3.8 million of its utility tokens, just over 1% of total supply, deepening commitment to deflation at time when central banks around the world are ceaselessly printing money.
Theta Network (THETA):Decentralized streaming network says DeFi could be used to pay content providers who arejust starting out, with few followers.
The latest on the economy and traditional finance
Tweet of the Day
- Bitcoin now has a 7% chance of beating $20K highs in the next 2 months - Cointelegraph - October 23rd, 2020
- For the first time since 2018 Bitcoin balances on exchanges fell below 2.5M - Cointelegraph - October 23rd, 2020
- Bitcoin top signal from 2017 reappears, but heres why it may not matter this time - Cointelegraph - October 23rd, 2020
- First Mover: PayPal Rushes In and Bitcoin Breaches $12K, While USDC Gains on Tether - CoinDesk - CoinDesk - October 23rd, 2020
- Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States | News - Bitcoin News - October 23rd, 2020
- Ban All Ransomware Payments, in Bitcoin or Otherwise - CoinDesk - CoinDesk - October 23rd, 2020
- Hotel Bitcoin ATMs on the Rise With Addition of Swiss Hotel Dolder Grand | News - Bitcoin News - October 23rd, 2020
- World Gold Council Survey Shows Cryptocurrency Investment the 5th Most Popular in Russia - Bitcoin News - October 23rd, 2020
- Ethereum Q3 Volume Dwarfs Bitcoin's, Fueled by DeFi - Decrypt - October 23rd, 2020
- Crypto fans rejoice: Bitcoin rallies to the brink of $12,000 - Aljazeera.com - October 23rd, 2020
- 187,000 BTC Drained: Over $2 Billion in Bitcoin Leave the Top Exchanges Since June | Exchanges - Bitcoin News - October 19th, 2020
- A Former Goldman Sachs Hedge Fund Chief Has Predicted Bitcoin Will Surge To $1 MillionHeres Why - Forbes - October 19th, 2020
- Bitcoin minings future is green, and Russia has the best chance - Cointelegraph - October 19th, 2020
- Has Bitcoin Finally Met Its Match? - Forbes - October 19th, 2020
- Bitcoin rips and cruise ships: Bad crypto news of the week - Cointelegraph - October 19th, 2020
- Where Does Bitcoin Fit in the Global Reserve Currency Game? - CoinDesk - Coindesk - October 19th, 2020
- Enormous wall of money will send Bitcoin to $1M in 2025 Raoul Pal - Cointelegraph - October 19th, 2020
- Bitcoin's Intrinsic Value: Crypto Community Responds to Bank of England Governor | News - Bitcoin News - October 19th, 2020
- Bitcoin Price Ready For a New Pop Will It Do It Today? - InvestingCube - October 19th, 2020
- 'Enormous Wall of Money' Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal - Bitcoin News - October 19th, 2020
- Bitcoin and Ripple's XRP - Weekly Technical Analysis October 19th, 2020 - FX Empire - October 19th, 2020
- Blockchain Bites: Bitcoin on Ethereum The Whos, Whats and Whys - CoinDesk - CoinDesk - October 19th, 2020
- First Mover: Privacy Is Litecoin's Ace in the Hole as JPMorgan Touts Bitcoin - CoinDesk - CoinDesk - October 19th, 2020
- Hathor Merge Mining Pool Commands 33% of the Bitcoin Cash Hashrate - Bitcoin News - October 19th, 2020
- Cashfusion Use Increased by 328%, $200M in BCH Fused and Close to 20,000 Fusions | Privacy - Bitcoin News - October 19th, 2020
- The Silk Road Balance Sheet Discrepancy: Bitcoin Worth $4.8 Billion Still Missing | Featured - Bitcoin News - October 19th, 2020
- Bitcoins Taproot is ready to go, but it's unlikely to be included in the next release - Cointelegraph - October 19th, 2020
- How will the US presidential election affect the price of Bitcoin? - Cointelegraph - October 11th, 2020
- $12K Bitcoin price back on the table after BTC rallies above $11.4K - Cointelegraph - October 11th, 2020
- Coinbase's 'Mission' Violates the Spirit of Bitcoin - CoinDesk - CoinDesk - October 11th, 2020
- Bitcoin: the UK and US are clamping down on crypto trading here's why it's not yet a big deal - The Conversation UK - October 11th, 2020
- Lyn Alden: Bitcoin Correlations Depend on What Phase It Is In - CoinDesk - CoinDesk - October 11th, 2020
- UK Bans Sale of Crypto Derivatives to Retail Investors from January 2021 | News - Bitcoin News - October 11th, 2020
- Yearn Finance Token Value Slides 67%, While Locked Value Loses Over $300M | Altcoins - Bitcoin News - October 11th, 2020
- Bitcoin price holds $10.5K but a $30M sell wall looms overhead - Cointelegraph - October 6th, 2020
- Bitcoin To Hit $100,000 in Five Years as Demand and Adoption Increase - Report | Markets and Prices - Bitcoin News - October 6th, 2020
- Trump, price dots and COVID-19: 5 things to watch in Bitcoin this week - Cointelegraph - October 6th, 2020
- $8M Worth of 'Sleeping' Bitcoin Rewards from 2010 Moved the Day Before 'Black Thursday' - Bitcoin News - October 6th, 2020
- Interest in Bitcoin Soars in Egypt Amid Economic Crisis and Unemployment | News - Bitcoin News - October 6th, 2020
- A Major Tesla Investor Has Predicted Bitcoin Will Be Worth More Than $1 Trillion In Under 10 Years - Forbes - October 6th, 2020
- Crypto for Congress: Bitcoin Sent to All Congress Members' Campaigns | News - Bitcoin News - October 6th, 2020
- Stacking Satoshis: Leveraging Defi Applications to Earn More Bitcoin | Featured - Bitcoin News - October 6th, 2020
- FCA bans the public from Bitcoin and other cryptocurrency derivatives - Evening Standard - October 6th, 2020
- Pro-Crypto PAC Giving $50 in Bitcoin to the Campaign of Each Member of Congress - CoinDesk - CoinDesk - October 6th, 2020
- Ethereum Transaction Fees Fall 82%, as Defi Hype Eases | Altcoins Bitcoin News - Bitcoin News - October 6th, 2020
- Crypto for Congress sends $50 in Bitcoin to all US Congress members - Crypto News Flash - October 6th, 2020
- Abkhazia Lifts Two-Year Ban on Bitcoin Mining, Moves to Regulate the Sector | Regulation - Bitcoin News - October 6th, 2020
- Why reduced Bitcoin futures volume may signal the start of a new bull trend - Cointelegraph - October 2nd, 2020
- Market Wrap: Bitcoin Rebounds to $10.5K; Stablecoin Market Cap Goes Parabolic - CoinDesk - CoinDesk - October 2nd, 2020
- Spike in new participants buying Bitcoin is obviously bullish Analyst - Cointelegraph - October 2nd, 2020
- Romania set to auction Bitcoin and Ether confiscated in criminal case - Cointelegraph - October 2nd, 2020
- Bitcoin Balances on Exchanges at 2-Year Low and That May Be a Bullish Sign - CoinDesk - CoinDesk - October 2nd, 2020
- Venezuela To Start Using Cryptocurrency in Global Trade in Efforts To Fend off US Sanctions | Emerging Markets - Bitcoin News - October 2nd, 2020
- Bitcoin Posts a 66-Day Consecutive Streak Above the $10K Price Range | Markets and Prices - Bitcoin News - October 2nd, 2020
- Aurus Disrupts the Gold Industry Today Its Ecosystem Lists at a Value of $75m | Sponsored - Bitcoin News - October 2nd, 2020
- Satoshi Nakamoto's Peer-to-Peer vision for Bitcoin - Korea IT Times - October 2nd, 2020
- Crypto Bets on the US Election Show Joe Biden Winning the Presidency by 60% - Bitcoin News - October 2nd, 2020
- At $10,600, Bitcoin price is on track for its second-best quarter ever - Cointelegraph - September 30th, 2020
- Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a Generation | Finance - Bitcoin News - September 30th, 2020
- Ex-CEO of Bitcoin.com, a Leading Proponent of Bitcoin Cash (BCH), Joins Nodle's Board to Help Develop the Nodle Cash Ecosystem - GlobeNewswire - September 30th, 2020
- Trump, tax and hacks: 5 things shaping Bitcoin price action this week - Cointelegraph - September 30th, 2020
- One of Hal Finney's lost contributions to Bitcoin Core to be 'resurrected' - Cointelegraph - September 30th, 2020
- French police arrest terror financing ring that used Bitcoin coupons - Cointelegraph - September 30th, 2020
- What The IRS's Interest In Your Bitcoins Says About The Future Of Cryptocurrencies - Forbes - September 30th, 2020
- New DeFi Project NEW KANGEN (NEWG) Presale Will Start on 2nd October 2020 | Press release - Bitcoin News - September 30th, 2020
- Token Projects to Recover $130M from the Kucoin Hack, Devs Condemned for Centralization - Bitcoin News - September 30th, 2020
- A Record $1.2 Billion in Bitcoin Has Now Moved to Ethereum - Decrypt - September 30th, 2020
- USDT Trading Arrives on Bitcoin Global - Yahoo Finance - September 30th, 2020
- The Bitcoin Family: Still on the RoadAfter Three Years! - Decrypt - September 30th, 2020
- What REALLY Moves Bitcoin? - Elliott Wave International - September 30th, 2020
- Listen to Calvin Ayre talk about how he found opportunity in Bitcoin - CalvinAyre.com - September 30th, 2020
- Would Bitcoin suffer if the lead maintainers were kidnapped by aliens? - Cointelegraph - September 12th, 2020
- New DeFi Project Xfinance(XFI) ILO Presale Will Start Today | Press release Bitcoin News - Bitcoin News - September 12th, 2020
- Working in the Cryptocurrency Industry as a Woman | Op-Ed Bitcoin News - Bitcoin News - September 12th, 2020
- On-chain data signals increasing Bitcoin activity But theres a catch - Cointelegraph - September 10th, 2020
- Bitcoin and cryptocurrency are no hedge for inflation - Cointelegraph - September 10th, 2020
- TOP 5 Popular Cryptocurrencies Other than Bitcoin - Analytics Insight - September 10th, 2020
- 'High' Severity Bug in Bitcoin Software Revealed 2 Years After Fix - CoinDesk - Coindesk - September 10th, 2020
- Number of Bitcoin Addresses Holding at Least 1 BTC Hits New ATH - Ethereum World News - September 10th, 2020
- The adjusted on-chain volume of Bitcoin and Ethereum hit a 30-month high in August - Yahoo Finance - September 10th, 2020