Category Archives: Altcoin

3 Reasons Why Ethereum Price Rallied 75% to Hit a 2-Year High at $400 – Cointelegraph

In the last two weeks, Ether (ETH) price increased by 75% as the price rallied from $222 to $400. Many investors believe Ethers momentum is buoying the entire market, and possibly even pushing Bitcoin (BTC) upwards.

ETH-USD daily chart. Source:

Three factors that appear to be triggering the strong Ether rally are: DeFi, ETH 2.0, and the current prolonged rally taking place in the altcoin market.

Since mid-June, the total value locked in decentralized finance (DeFi) protocols has continuously surged. The launch of protocol-specific tokens, like Compounds COMP as an example, led to growing demand for DeFi.

Eventually, users discovered a phenomenon called yield farming, which involves users searching for higher yields in the DeFi market and switching from one protocol to another to obtain incentives.

The explosive growth of the DeFi market in a short period led many DeFi-connected tokens to surge rapidly. In July, investors seemingly sold off DeFi tokens and other small market cap altcoins, moving back to Ether and Bitcoin.

On August 1 Ether price reached a 2-year high as it surged to $395 on BitMEX but this has traders warning against a potential pullback. In fact, crypto-trader Edward Morra said:

Yeah, parabola coming out of another parabola is a sight to behold tbh. Also, this isn't sustainable and will correct. If you are new to this space - buy dips, don't FOMO at the top.

A consistent positive factor that supports the upward momentum of Ether is the anticipation for ETH 2.0. In August, Ethereum developers expect to launch the final testnet of ETH 2.0 called Medalla.

When fully launched, ETH 2.0 would gradually eliminate miners from the network and reward users for participating in the network. The incentive system would enable users to earn a yield on their Ether holdings over a long period.

Kelvin Koh, the co-founder of a venture capital Spartan Black, recently suggested that every phase of Ether would strengthen Ethereum. Koh said:

Every phase of ETH 2.0 over the next 2-3 years brings Ethereum closer to its final state and will be catalysts for ETH.

The Ether and Bitcoin rally over the last three days coincided with a drop-off in altcoin prices. In the near-term, the cycle of profit taking could continue if altcoins see regular uptrends.

In previous bull markets, major cryptocurrencies and small altcoins showed an inverse correlation, meaning, as the price of Bitcoin surged, altcoin values dropped.

The opposite remains true when Bitcoin price is stable or consolidating. This creates a cycle that causes BTC and ETH to benefit from multiple profit-taking rallies.

Satoshi Flipper, a popular trader on Twitter, suggested that in the longer-term there is a key resistance for Ether at $780.

ETH-USD 1-week chart. Source: Satoshi Flipper

It remains to be seen whether the confluence of ETH 2.0, profit-taking rallies, and DeFi growth could push Ether price to higher resistance areas. For now, the sentiment around the altcoin generally remains positive in the medium-term.

View post:
3 Reasons Why Ethereum Price Rallied 75% to Hit a 2-Year High at $400 - Cointelegraph

Bitcoin SV Price Analysis: BSV/USD takes the altcoin rally a notch higher, approaching $250 – FXStreet

Bitcoin SV is among the altcoins that are outperforming themselves on Saturday. In the last 24 hours, the cryptoasset has surged over 10%, breaking above the key 38.2% Fibonacci retracement level taken between the last drop from $455.74 to a low of $77.49. In addition, the spike made it above key moving averages including the 50-day SMA and the 200-day SMA.

BSV/USD is trading at $239 at the time writing in the wake of a minor retreat from $245. However, the technical picture remains positive, especially with the RSI and the MACD moving higher within the overbought and positive regions respectively.

On a wider scope, gains towards $250 seem to be brewing and the hurdle at $245 seems temporal. If the RSI contains movement within the overbought region, buyers will remain in control a while longer. Similarly, the bullish divergence from the MACD cements the buyers position in the market. For now, seeking support above $240 is top on the bulls priority list as it gives them ample time to push for gains above $250.

Originally posted here:
Bitcoin SV Price Analysis: BSV/USD takes the altcoin rally a notch higher, approaching $250 - FXStreet

DataDash: Two Crypto Newcomers Will Surge Alongside Bitcoin, Ethereum and XRP in New Bull Cycle – The Daily Hodl

Crypto analyst Nicholas Merten says two mid-cap crypto assets will soar along with Bitcoin, Ethereum, and XRP as a new bull market emerges.

On the latest episode of DataDash, Merten says a broad correction in the altcoin markets is offering investors a chance to hop in before the next big rally explodes. He says traders should keep an eye on the relative crypto newcomers Cardano (ADA) and Tezos (XTZ) in preparation for the next bullish breakout.

Now that we have had this pullback here, [it] does provide an opportunity for some bulls who have missed out on a lot of this kind of exponential portion of the rally to get back in

The major thing to focus on, as I think really a lot of the large caps and a lot of the established protocols, so some of the new emerging protocols, I know some of you are going to be excited for me to say this. Plays like Cardano, plays like Tezos, some of the other ones alongside some of the large caps like Ethereum, Litecoin, XRP, this is going to be our major focus here.

As for Litecoin, Merten says bulls will spark a new rally if they can capture a key level.

Just like Bitcoin, just like Ethereum, building up long-term technical formations, Litecoin has very clear points of resistance and support. It looks like here, if you really take a look at the log chart, we just need to basically get above $70, we could really start to see this take off.

Meanwhile, the crypto analyst is also long-term bullish on Ethereum. He believes the second-largest cryptocurrency will continue its hot streak en route to a new all-time high as long as the coin properly scales.

Its already built up support on previous resistance and broken out here I think its going to continue to go up, eventually to set all-time highs and accelerate towards even higher levels.


Featured Image: Shutterstock/Art Furnace

Read the rest here:
DataDash: Two Crypto Newcomers Will Surge Alongside Bitcoin, Ethereum and XRP in New Bull Cycle - The Daily Hodl

As Altcoin Season Presses on, Whats Next for Crypto Futures? – Finance Magnates

Bitcoin seems as though it may be finally breaking out of its two-month long period of stagnancy: this week, BTC shot up and over the $10,000 mark, and at press time, had landed around $11,000. This could have big implications in terms of renewed on Bitcoin in spot marketsand in derivatives markets.

Previously, Bitcoins long period of stagnancy seemed to have a major effect on the distribution of investors attention as well as their cash: the crypto crowd, which typically loves rapid price movements, temporarily turned to altcoins to get their volatility fix. As a result, a number of altcoinsboth in spot and derivatives marketsare approaching new highs.

The Most Diverse Audience to Date at FMLS 2020 Where Finance Meets Innovation

The extended period of stagnancy that Bitcoin was experiencing prior to this week was not limited to spot markets.

As the lack of volatility in spot markets continued, trading volume in derivatives markets also dipped. In mid-June, market data firm Skew published findings that trade volume on Bitcoin (BTC) futures exchanges has plummeted to new lows for 2020. Specifically, BTC futures markets collectively posted less than $5 billion in 24-hour volume on June 13.

Open interest measures the raw amounts that issuers and buyers have at stake in futures contracts that have yet to expire. This is different than futures volume, which measures the value of existing futures contracts being traded during a given period; futures contracts can be traded like any other derivative.

While trading activity in Bitcoin derivatives markets may have been limited, however open interest in Bitcoin futures seems to be on the road to recovery. Open interest in Bitcoin futures contracts took a major hit on March 12th, a day that is colloquially known as cryptos Black Thursday.

Aaron Gong, VP of Binance Futures, told Finance Magnates that since Black Thursday, when the entire market crashed more than 50% in a single day, he has also observed signs of recoveryand of changeacross cryptocurrency futures markets.

Both BTC and altcoins have slowly recovered over the last 4 months, Aaron told Finance Magnates, adding that more recently, altcoins have dominated headlines, which has led to a shift in users attention towards exchanges that offer the most comprehensive selection of altcoin contracts.

This shift toward exchanges with higher levels of variety in altcoin contracts could be a continuation of the ways that user distribution on futures exchanges have shifted since Black Thursday. A major redistribution in futures exchange users began when a service outage on cryptocurrency exchange BitMEX led some of its users to take their business to other platforms.

Now, however, the trend in user redistribution seems to favor futures exchanges with the most pairs of altcoins, which gained more momentum throughout the altcoin season, Aaron said, adding that this increased trading activity has caused a reorganization of market share across derivative exchanges.

On his own exchange, Binance Futures the altcoin futures market share has doubled since the start of July as volume quadrupled in less than a month.

We observed that market share has shifted in favor of Binance as the exchange dominated altcoin futures volume. In particular, contracts such as LINK and ADA, where Binance processed the most volume in the industry, he added.

The shift in focus toward altcoin futures seemed to steadily grow as Bitcoins period of stagnancy throughout May, June, and part of July, went on and on.

Aaron Gong said that while Bitcoins stagnation has been rather unusual, crypto markets have provided ample trading opportunities in the last two months, Aaron said in an email.

In particular, on his own platform, the much anticipated ETH upgrade, as well as other protocol upgrades has led to increased trading activity in altcoin futures contracts on Binance, Aaron said, adding that last week, ETH futures on Binance marked its highest weekly volume in the last three months, while open interest has almost tripled in the same period.

The increase in activity on ETH-related futures trading on Binance coincides with more expansive growth in the ETH futures market more generally. Blockchain data analytics firm Skew reported findings earlier this month that the total amount of open interest in Ethereum-based futures contracts had surpassed $1 billion for the first time ever.

The reach past $1 billion in Ethereums open interest represented an increase of nearly 30% since June 20, when the total amount of open interest in ETH futures contracts was under $800 million.

At press time, Skews data showed that OKEx and Huobi appeared to have the lions share of open interest in Ethereum contracts, with BitMEX, Binance, and FTX also held sizeable chunks of the market.

As a result of the increased levels of interest in ETH futures contracts, some futures trading platforms are taking rapid steps toward building out new futures for the ETH futures market.

For example, Aaron Gong said that in order to keep up with demand, Binance has launched two Binance Leveraged Tokens: BLVT (ETHUP, ETHDOWN).

What Trading Companies Really Need to Increase Their RevenuesGo to article >>

This new addition is expected to provide more options for traders to gain exposure to ETH and anticipate the positive impact of the ETH 2.0 upgrade, he said.

Additionally, OKEx recently added three new expiration dates to its ETH/USD contracts: daily, two-day, and monthly options, in addition to its weekly, bi-weekly, quarterly, and bi-quarterly options. The new dates are also available for its BTC/USD and EOS/USD contracts.

Bilal Hammoud, President, CEO, and Founder of Canadian digital asset exchange, also pointed out to Finance Magnates that the ETH futures momentum could continue to build if regulated ETH futures contracts hit the US market.

Indeed, speaking in an event at Georgetown University in October of 2019, CFTC Chairman Heath Tarbert said that Id say it is likely that you would see a futures contract in the next six months to a year, and that the volume to which itll trade, no idea, thats where the markets decide.

For his own part, Bilal has also observed a surge in the popularity of ETH and ETH-based futures contracts: we have seen a lot of interest in the spot market where volume is comparable and at points exceeding that of bitcoin in the past month, and it will be no different for ETH derivatives, he said.

In addition to the coming launch of Ethereum 2.0, some of the enthusiasm for ETH-based futures contracts may also have been driven from a sense of increased interest in the decentralized finance, or Defi, space.

Specifically, Aaron Gong noted that the enthusiasm surrounding DeFi seems to have increased the amount of open interest in contracts based on altcoins, many of which belong to DeFi platforms.

While there is limited data on the total amount of open interest in altcoin contracts as a whole, Aaron told Finance Magnates that on Binance Futures, altcoin volume has grown significantly since July 1st, with altcoin volume now contributing 60 percent of total exchange volume.

Additionally, our daily volume on altcoin contracts has grown fourfold in two weeks from under $500 million to $2 billion.

However, the order of things could soon be up for another change as Bitcoins push over $11,000 may signal the return of BTC volatility: just over the last two days, there is evidence that traders are showing higher levels of interest in BTC futures than ever.

For example, for the last two days, the volume of Bitcoin futures being traded on Bakkt has broken records. July 28th closed out the day with 11,506 contracts an 85 percent increase over the previous record. OnJuly 29, Bakkt topped the new record again, with 11,706 contracts traded.

Although Bitcoin as struggled to establish a foothold above the $10,0000 level previously, this time around, it does look like Bitcoin is finally building momentum and may go beyond in the coming months, Aaron Gong told Finance Magnates.

As such, we are expecting large market movements in the near future, particularly in Bitcoin, which seems to be revived after an extended period of consolidation.Bitcoins recent breakout has drawn speculations that a bull market is on its way.

And indeed, if that happens, BTC futures markets could potentially set a new record volume and open interest that we have not seen in recent months.

In other words, if BTCs volatility returnsand the increased interest in ETH and other altcoins continuesthere could be a sort of crypto futures renaissance around the corner.

As such, the increase in the number of products and features that have recently been built out for ETH and altcoin markets on some exchanges could translate into a bolstered set of BTC futures features on other exchanges.

This, in turn, may lead to a sort of virtuous cycle that causes the entrance of more and more capital into the crypto futures space: as futures trading platforms become more developed, higher-volume institutional entities may be more likely to take part in these markets.

In the long term, this could accelerate the rate of cryptocurrency asset price discovery, and could therefore lead to lower levels of volatility in crypto markets in the future.

For now, thoughit may be a wild ride.

View original post here:
As Altcoin Season Presses on, Whats Next for Crypto Futures? - Finance Magnates

Altcoin Price Analysis Bitcoin Cash, Tezos and IOTA: BCH/USD and IOT/USD look to break past key levels – FXStreet

BCH/USD bulls stay in control for the third straight day as the price went up from $289.50 to $291. The MACD shows increasing bullish market momentum. Healthy support lies at $273.35 (SMA 200), $256.50, $248.35, $241 (SMA 20) and $236.20 (SMA 50).

XTZ/USD is trending in a downward channel formation. The price dropped from $2.842 to $2.787. The Williams%R has dipped into the oversold zone and Elliott Oscillator has had four straight red sessions. These two indicators show that the market sentiment is presently bearish.

IOT/USD bulls took charge and bouncing up from the upward trending line, going up from $0.2737 to $0.286. The MACD shows sustained bullish momentum, while the RSI has dipped into the overbought zone. The price has healthy support levels at $0.279, $0.268, $0.259 (SMA 20) and $0.24 (SMA 50).

Go here to read the rest:
Altcoin Price Analysis Bitcoin Cash, Tezos and IOTA: BCH/USD and IOT/USD look to break past key levels - FXStreet

Bitcoin Price Touched $11,400, Altcoin Season Over? – CryptoPotato

Its safe to say that Bitcoins dull days are behind the asset as it continued its bullish run to reach $11,000. Despite gaining against the dollar, most altcoins are trailing compared to Bitcoin, questioning the state of the altseason.

After finally breaking above $10,000, the question remained if BTC can maintain its price surge, especially when it came face to face with the significant resistance at $10,500. A daily close above would have validated the bull-run and indicate that Bitcoin has a new highest price level in 2020.

Just a few hours ago, the primary cryptocurrency indeed faced the $10,500, but shot pass by it in a matter of minutes. Bitcoin kept its decisive move going and reached $11,400, where it got rejected and retraced slightly to $10,945. This represents a 20% increase in a week for BTC.

Despite the excitement and the impressive increase, though, it remains to be seen if Bitcoin will sustain its performance, or it will drop to $9,600 to close a CME gap, as it has done multiple times in the past.

According to popular cryptocurrency analyst Mati Greenspan, this breakout above $10,500 could likely be the ignition to a much bigger Bitcoin bull-run.

The narrative has now shifted to match whats happening in the rest of the economy, and investors will likely begin looking specially for hard money assets and digital scarcity, Greenspan told CryptoPotato.

His comments come at a time when gold also surged to a fresh all-time high and continued forwards to nearly $1,980 per ounce. However, it got rejected and retraced to $1,937/oz.

Greenspan also touched upon the ongoing altcoin season. However, his opinion was quite negative, saying that in regards to altcoins the alt season is over.

Before BTCs breakout a few days ago, most alternative coins were pumping hard and managed to reduce Bitcoins dominance over the market to a yearly low of 60.4%. However, the largest cryptocurrency reacted swiftly and has increased its dominance now to 62.9%.

Although some large-cap and lower-cap alts have charted gains against the dollar in the past 24 hours, their performance against Bitcoin is in the red. From the top 10 coins, only Bitcoin Cash, Bitcoin SV, and Litecoin have slightly increased their value against BTC.

On the contrary, Ethereum, Cardano, Chainlink, Tezos, and Stellar are between 6% and 8% down compared to the primary cryptocurrency.

Other significant losers against Bitcoin include Celsius (-12%), ABBC Coin (-12.21%), Elrond (-13.6%), Augur (-14.7%), Flexacoin (-20.44%), and Ampleforth (-26.5%).

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency chartsby TradingView.

Enjoy reading? Please share:

Read more from the original source:
Bitcoin Price Touched $11,400, Altcoin Season Over? - CryptoPotato

Bitcoin Struggles At $11,000: Altcoins Starting To Regain Momentum? – CryptoPotato

Bitcoin attempted another bullish movement yesterday, but it got rejected when it approached the next resistance line. The majority of the altcoin market is retracing slightly today, following a few days of gains.

The S&P 500, Dow Jones, and Nasdaq marked increases yesterday, following an announcement from the Fed pledging to keep the interest rates unchanged near zero.

The primary cryptocurrency has been on a roll ever since it broke out of its $9,000 $9,300 range last week. In a few consecutive days, BTC shot up to about $11,000 and yesterday attempted to conquer the next resistance at $11,390. However, to no avail, as it got rejected before having a real chance to face it. At the time of this writing, Bitcoin hovers again at about $11,000.

Should BTC successfully break above $11,390, it has to face a key weekly resistance at $11,490 before coming up against the psychological $12,000 level. In contrast, $10,800 and $10,400 are Bitcoins line of defense in case the asset heads downwards.

Ethereum, Ripple, and Bitcoin SV have kept steady over the past 24 hours with insignificant changes. Losses are visible from Cardano (-2.7%) and Litecoin (-2.5%) after yesterdays gains. Chainlink (-2%), Tezos (-4.2%), Stellar (-2.3%), Monero (-2.2%), and Tron (-3.5%) are also in the red today.

However, Ampleforth continues to showcase double-digit price losses. AMPL has tanked by nearly 60%, and its even below $1. This may cause issues for investors as its protocol will start deflating the existing tokens in circulation to stabilize the price at around $1.

Travala.coms AVA coin is the most significant gainer with a 21% increase, while THORChain and Aave follow by 14.16% and 12.14%, respectively.

The US Federal Reserve left benchmark interest rates unchanged near zero. Fed Chair Jerome Powell doubled-down on his assurance that the US government will provide all the necessary support to Americans until the threat of the novel COVID-19 to the US economy passes.

These events had a positive effect on the most prominent Wall Street stock market indexes. During yesterdays trading session, the Dow Jones closed with an increase of 0.60%, while the S&P 500 and the Nasdaq Composite gained over 1%.

Despite the short-term beneficial effects on the markets, prominent economists continue to warn that such actions could ultimately tank the system.

I think they are playing with fire. If Congress was counting on the fact that the economy was going to reopen, then they wouldnt need to do another package, clearly, that Plan A is gone. commented senior portfolio manager at TCW Diane Jaffee, referring to the massive stimulus packages initiated by the government.

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency chartsby TradingView.

Enjoy reading? Please share:

Read more here:
Bitcoin Struggles At $11,000: Altcoins Starting To Regain Momentum? - CryptoPotato

Litecoin spikes 10% to lead top altcoin gains today | – CoinJournal

Litecoin pushed more than 10% into the green following Bitcoins run to $11k

Bitcoins latest spike in trading price is having a positive impact on that of Litecoin, the altcoin that is often dubbed silver to the crypto kings gold.

While Ethereum has struggled in the last few hours after trailing Bitcoins march to $10k, Litecoin has broken out of its tight channel to post a remarkable upside over the past 48 hours.

ETH/USD has soared by more than 30% over the past week to trade above $330. However, increased selling pressure during the Asian trading session has pushed its price about 3% down on the day to currently see it exchange hands at $315.

The price of Ripples XRP token is up by 2.3% in the past 24 hours, while BCH/USD and BSV/USD have both spiked by nearly 6%.

Litecoin is nonetheless seeing the most gains, with the LTC/USD pair spiking more than 10% in the past 24 hours.

As of writing, the pair is trading at $53.50, so bulls are likely to aim at consolidating support above $50 to help propel the price higher should Bitcoin explode above $12,000.

Similar to Bitcoin, the price of Litecoin has also just broken out of a tight channel that had capped prices for the past several weeks. The surge above $50 is the first time the cryptocurrency has traded above the level since March 8, 2020, and represents LTC/USDs best period since the run from lows of $40 to highs of $49 at the end of April.

LTC/USD on the upside will very much follow the pattern of higher highs and higher lows that Bitcoin posts. Key price levels are the resistances at $57.107, $61.208, and $66.38. Above that, Litecoin bulls face minimal resistance and the price could hit February highs of $83.

The technical picture is strengthened by the MACD indicator that is well-placed above the Signal line. The Parabolic SAR on the daily chart is also bullish for the altcoin, with the dotted markers giving it room to expand as they cut well below the price candles.

However, a run to higher price levels depends on whether bulls will hold gains above $50. If theres a bearish breakdown, bulls may rely on major support at $48.179 and $43.00. These levels are critical to keeping levels where they are to avoid a scenario where a rejection sends prices back below a long term descending trendline.

Go here to see the original:
Litecoin spikes 10% to lead top altcoin gains today | - CoinJournal

As Bitcoin tops $11,000 level, investor interest in India on the rise – Livemint

Bitcoin prices surged past the $11,000 level on Tuesday, marking a steep recovery from its recent lows of around $5,000 in March 2020. The cryptocurrency was trading at around $10,972 at the time of writing this report on Wednesday.

The covid-19 crisis had battered financial assets across the world in March, including cryptocurrencies. Along with the rebound in prices, interest in cryptocurrency in India has also staged a recovery, say experts. A Supreme Court of India ruling in March, striking down the Reserve Bank of Indias (RBI) ban on crypto payments imposed in 2018 has also acted as a tailwind for the cryptocurrency investment.

There is a huge positive sentiment around Bitcoin right now. With its prices going up, a lot of dormant holders are coming back and traders are trading more to book profits. Bitcoins price rally is also causing other altcoin prices to increase. As a result, were seeing a big jump in our trading volume. It will be exciting to see where Bitcoin price lands next," said Nischal Shetty, founder and CEO, WazirX, a cryptocurrency exchange in India.

Altcoins are other cryptocurrencies that were launched after the success of Bitcoin.

Sumit Gupta, co-founder and CEO, CoinDCX, another cryptocurrency exchange, outlined two reasons for the rebound. The surge in bitcoin prices comes amid a rush for safe-haven assets that are considered alternatives to cash and stocks. It has been fueled by the covid-19 pandemic that has driven the global economy into a recession," he said. Theres also the decreased supply of available bitcoin, attributed to the halving of coins in circulation that happened earlier this year," he added.

An inbuilt feature of bitcoin mining is the halving of rewards given to bitcoin miners for mining the cryptocurrency periodically (usually every four years). This tends to cut in half, the new bitcoin that is released into circulation.

Ajeet Khurana, member, Blockchain and Cryptocurrency Committee of the Internet and Mobile Association of India (IAMAI) and former CEO of Zebpay focused more on the participants in the crypto market to explain the surge in bitcoin prices.

The common investor in any asset class is primarily driven by asset price inflation. The trader in an asset class is driven by volatility, and expects to make money on price movements in both directions. For both of these, bitcoin has been a delight in the recent past," he explained.

Khurana also believes that crypto investors do not invest in other asset classes and hence the rise in bitcoin prices could fuel a surge in crypto market participants, both investors and traders. In other words, the cult-like following of cryptocurrency gets strengthened when there is a rally in its prices.

Despite the Supreme Court ruling on RBIs payments ban, cryptocurrency still does not have a regulatory framework in India. Moreover, a draft government bill may criminalize the mere possession of cryptocurrency in its current form as we reported here.

Investors should take this into account while evaluating the cryptocurrency market.

Subscribe to newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

See the article here:
As Bitcoin tops $11,000 level, investor interest in India on the rise - Livemint

Long Gold, and Long Cryptos – InvestorPlace

Gold sets a new all-time-high why its gains will keep coming bitcoin and altcoins are also poised to jump get some of your wealth outside the dollar

Last night, gold exploded through its prior all-time high of $1,920.

The precious metal reached as high as $1,944 before slightly pulling back.

As I write, its trading at $1,938.

About three weeks ago, we wrote the following in theDigest:

within the next three months, (gold) will set a new all-time high.

the media will be filled with headlines about the new record the start of a new, gold bull market various gold mining stocks enjoying double- and triple-digit gains

As the broader population slowly becomes aware of all this, well see a new host of investors piling into gold

this flood of new dollars will drive prices higher. Higher prices will attract more investors. More investors will drive the price higher the trend will surge

With that in mind, note the current headlines:

***We believe that, while remarkable, $1,920 is just a milestone within a far bigger move for gold

Thats because the fundamental reasons why the precious metal is climbing arent due to short-term, quick-fix issues. Golds gains are rooted in the precarious reality of todays global macroeconomic situation.

A quick glance around our world reveals a pandemic thats not going away persistent unemployment massive sovereign debt (which is growing) social unrest and an avalanche of newly printed fiat currency.

Consider whats happened since our most recentDigestthat focused on gold from a few weeks ago.

One, European leaders just agreed to create a 750 billion EUR ($858 billion) recovery fund to support the EU economies that have been hobbled by the coronavirus crisis. The European Commission is going to borrow this money so, more debt.

Two, here in the U.S., the CARES 2 Act appears right around the corner with another check coming to qualifying Americans.

CARES 2 will likely be another $1 trillion+ package, so fire up the Feds printing press again. And prepare for our national debt-to-GDP ratio to climb to even more stratospheric, record levels.

Three, the U.S. dollar continues weakening.

After spiking in the panic of the March market-lows, the Dollar has been falling hard. In recent days, its flat-out fallen off a cliff, as you can see below

Top to bottom from the spike in March, thats about a 9% drop in just four months.

Four, the CARES Act temporary moratorium on evictions, which protected some 12.3 million rental units nationwide, officially ended this past Friday.

Data from the U.S. Census Bureau found that nearly one in five renters roughly 14 million renters either didnt pay the rent last month or delayed their payment. Landlords can now begin to take action.

Yes, some renters are covered by a patchwork of state and local eviction bans that dont end until this fall. But in general, unless our officials extend the national moratorium in the next relief package, this could end in a wave of evictions with ripple effects extending throughout the broader economy.

Of course, if the moratorium is extended, the problem doesnt disappear, it simply shifts the economic pain to a different group.

Instead of renters, landlords without deep pockets will face a cash-flow problem, which puts them at risk of defaulting to their banks and lenders. If banks are left footing the bill, we can expect losses and stricter tightening of lending requirements that will hamper economic growth even more.

Bottom line, someone has to pay the bill. And if the government eventually has to swoop in to absorb all these rental payment losses, that means the taxpayer is booting that bill.

Five, and also from the economic arena, Markits U.S. preliminary composite purchasing managers index data for July was weaker than expected. The numbers are adding to the growing concern that our economic growth is stalling as our nation struggles to reopen.

Six, the U.S. ordered China to close its Houston consulate, citing Chinese efforts to steal U.S. trade secrets. In response, China has ordered the U.S. to close its Chengdu consulate. This is a new escalation in the rapidly deteriorating relationship between the superpowers.

Put it all together more sovereign debt, more fiat currency creation, more Dollar weakness, more economic pain, more geopolitical tension

While all terrible, its also highly bullish for gold.

***Its not just gold that will benefit bitcoin and altcoins are poised to climb as well

Shortly after its late-March low, bitcoin rallied alongside stocks until May.

Since then, it had been trading sideways, establishing a base. It also began trading in a tighter pattern.

But in that last few days, bitcoin has exploded out of its recent compressed trendlines. Its now back above $10,000.

Well show you this in the chart below.

But I would also draw your attention to the bottom pane beneath bitcoins market price. The pane features the readings of an indicator called Average True Range (ATR).

ATR is a volatility indicator. It shows how much an asset or security is moving up and down in a given time frame.

Higher ATR readings are higher volatility readings, and vice versa.

Well add commentary on the ATR below. For now, just note bitcoins price action breaking through its recent trend lines, as well as the level and curve of the ATR.

As you can see, bitcoins ATR has been trending lower and lower and lower. But in recent days, its stopped its decline and taken a sharp upward turn as bitcoins price pierced its upper trend line.

A study of market history shows that assets often make strong moves after going through periods of compressed price action and compressed volatility.

The reversal in the ATR coming from such low levels, alongside bitcoins explosion above $10,000, is another reason why we believe a larger price-breakout may have just started.

***While we expect gains for bitcoin, we anticipate even bigger moves from elite altcoins such as those held in Matt McCallsUltimate Cryptoportfolio

For context, Matt introduced his crypto service with his first altcoin recommendations back on January 7th. Since then, bitcoin has tacked on 33% as you can see below.

Meanwhile, whats the average gain of Matts 11 altcoin recommendations over the same period?


Again, thats theaveragegain.

As I write Monday morning, Im seeing individualaltcoin gains of 180%, 225%, and 272%.

***At the end of the day, the long-term case for gold and cryptocurrencies reduces to one thing getting some of your wealth outside the U.S. Dollar

While theres still a tug-of-war today between deflationary and inflationary forces, in the longer-term its hard to see how the trillions of dollars of new fiat currency creation wont result in significant inflation.

For savers with a large portion of their wealth in the dollar, this could be disastrous.

While we believe gold and elite cryptos are two of your best preventatives against such an inflation-disaster, they arent your only options.

You could invest in real estate or collectibles or a storage-units or fine art and yes, even stocks.

The reality is that companies with the ability to increase the price of their goods and services to match inflation rates will be better able to protect your wealth that plain ole dollars.

Bottom line move some of your wealth outside the Dollar to an asset that will retain value regardless of what happens with the Dollar itself.

As we wrap up, todays macroeconomic environment points toward a simple takeaway long gold, and long cryptos.

Have a good evening,

Jeff Remsburg

Read the original:
Long Gold, and Long Cryptos - InvestorPlace