Category Archives: Bitcoin

$150 billion wiped off cryptocurrency market in 24 hours as bitcoin pulls back – CNBC

GUANGZHOU, China Bitcoin and other digital coins tanked on Monday, wiping some $150 billion off the cryptocurrency market.

The market capitalization or value of the cryptocurrency market was $931 billion around 6:00 p.m. ET, down from $1.08 trillion a day earlier, according to Coinmarketcap.

Bitcoin, the largest cryptocurrency, fell over 10% from a day earlier to $34,200, according to Coin Metrics data. It earlier sank to an intraday low of $30,863. Ether, the second-largest cryptocurrency, was down 15% to $1,060. It briefly tumbled below $1,000, hitting an intraday low of $945.

The sell-off in cryptocurrencies comes after a huge rally and perhaps signals some profit-taking from investors. Bitcoin is still up over 300% in the last 12 months and last week hit an all-time high just below $42,000.

"The correction we saw was expected as we believe the BTC price surge recently from under $20,000 to $40,000 in the past four weeks will induce sell pressure," said Simons Chen, executive director of investment and trading at cryptocurrencyfinancialservices firmBabel Finance.

The $40,000 mark could have been a trigger for profit-taking, Chen said.

Bitcoin's resurgence has been attributed to a number of factors includingmore buying from large institutional investors.

And it has also been likened to "digital gold," a potential safe-haven asset and a hedge against inflation. In a recent research note,JPMorgan said bitcoin could hit $146,000in the long term as it competes with gold as an "alternative" currency.The investment bank's strategists noted, however, that bitcoin would have to become substantially less volatile to reach this price. Bitcoin is known for wild price swings.

But some bitcoin critics such as David Rosenberg, economist and strategist at Rosenberg Research have called bitcoin a bubble.

Long-term bullishness around bitcoin remains however.

Jehan Chu, founder of cryptocurrency-focused venture capital and trading firm Kenetic Capital, said the pullback in bitcoin could be a buying opportunity for new investors.

"This short term correction is both natural and needed, and is a great entry point for long-term investors as we quickly reach $50k this quarter and $100k by year's end," Chu told CNBC.

Last week, Social Capital's Chamath Palihapitiya said bitcoin could go above six digits.

"It's probably going to $100,000, then $150,000, then $200,000," Palihapitiya told CNBC's "Halftime Report." "In what period? I don't know. [Maybe] five or 10 years, but it's going there."

The rest is here:
$150 billion wiped off cryptocurrency market in 24 hours as bitcoin pulls back - CNBC

What is bitcoin and why are so many people looking to buy it? – The Guardian

What is bitcoin?

Bitcoin is a type of digital currency that emerged after the 2008 financial crisis. It allows people to bypass banks and traditional payment methods. It has become the most prominent among thousands of so-called cryptocurrencies.

It relies on blockchain technology, which is a shared database of transactions, with entries that must be confirmed and encrypted. The network is secured by individuals called miners who use high-powered computers to verify transactions, with bitcoins offered as a reward. There are more than 18m in existence, and the mathematical system controlling the generation of new bitcoins which is decentralised and therefore has no overarching institution such as a central bank has a hardwired maximum of 21m coins.

There are several currency exchanges where consumers can swap traditional fiat money backed by governments for cryptocurrencies, which must be stored using a digital wallet. Some of the biggest exchanges include Bitstamp, Coinbase and Gemini. However, finance firms have also created new investment products based on bitcoin and other cryptocurrencies, such as contracts for difference, which are used to track the value of an asset without needing to directly own it.

There are problems when it comes to using bitcoin as a currency, with many people simply owning it as a speculative investment instead, given its tendency for extreme swings in value.

Within the space of a single hour on Monday alone, its value fell by about $3,000 (2,230), then rose again by about $2,000. This makes it almost impossible to put a reliable price on goods and services.

Instead, there are ways to pay using applications such as BitPay, which converts bitcoin funds in a digital wallet to pay for goods in traditional currencies used by retailers. Transactions are growing, more so online than in physical shops, with firms including Microsoft, Lush and Expedia accepting payments. The first-ever bitcoin transaction was made in 2010, when a Florida man paid a British man 10,000 bitcoins to order him two Papa Johns pizzas. Today that would be worth more than $300m.

The City regulator is concerned crypto investment firms could be overstating potential payouts, or understating the risks, from investing in bitcoin and products related to the digital currency.

As a newer and relatively lightly regulated market, consumers are unlikely to have access to state-backed compensation if something goes wrong. There has also been a boom in bitcoin scams.

There are three main factors influencing the bitcoin price. First, the media frenzy over its boom in value, drawing in new buyers looking to make money. Second, more traditional finance firms are investing in the market. And finally, comparisons between bitcoin and gold, which fit with trends in the global economy.

The development of Covid-19 vaccines could enable a swift economic recovery from the pandemic, at a time when governments and central banks are still providing vast amounts of emergency support which could trigger a burst of inflation. Some investors view bitcoin as a store of value, similar to gold, which can hold its worth during times of economic stress or rising inflation.

Bitcoins value is almost entirely defined by perceptions. Some economists believe it is entirely worthless. However, analysts at JP Morgan have said it could hit $146,000 if it became as established as gold for investors. However, to match this reputation built up over millennia as a thing worth owning, with otherwise little intrinsic value it would need to become much less volatile.

Original post:
What is bitcoin and why are so many people looking to buy it? - The Guardian

Bitcoin plunges more than 20% in three days. It’s now in a bear market – CNN

');$vidEndSlate.removeClass('video__end-slate--inactive').addClass('video__end-slate--active');}};CNN.autoPlayVideoExist = (CNN.autoPlayVideoExist === true) ? true : false;var configObj = {thumb: 'none',video: 'business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness',width: '100%',height: '100%',section: 'domestic',profile: 'expansion',network: 'cnn',markupId: 'large-media_0',adsection: 'cnnbusiness_investing_marketsnow_carousel_t1',frameWidth: '100%',frameHeight: '100%',posterImageOverride: {"mini":{"width":220,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-small-169.jpg","height":124},"xsmall":{"width":307,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-medium-plus-169.jpg","height":173},"small":{"width":460,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-large-169.jpg","height":259},"medium":{"width":780,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-exlarge-169.jpg","height":438},"large":{"width":1100,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-super-169.jpg","height":619},"full16x9":{"width":1600,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-full-169.jpg","height":900},"mini1x1":{"width":120,"type":"jpg","uri":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-small-11.jpg","height":120}}},autoStartVideo = false,isVideoReplayClicked = false,callbackObj,containerEl,currentVideoCollection = [{"title":"Strategist on bitcoin: Pullback is very expected","duration":"02:54","sourceName":"CNNBusiness","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness/index.xml","videoId":"business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-large-169.jpg","videoUrl":"/videos/business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness/video/playlists/business-digital-currency/","description":"BTIG's Julian Emanuel says the pause in bitcoin's rally is a "sentiment readjustment."","descriptionText":"BTIG's Julian Emanuel says the pause in bitcoin's rally is a "sentiment readjustment.""},{"title":"Scaramucci: Bitcoin is due for a correction","duration":"01:02","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2020/12/16/bitcoin-anthony-scaramucci-markets-now.cnn-business/index.xml","videoId":"business/2020/12/16/bitcoin-anthony-scaramucci-markets-now.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201216123432-20201216-markets-now-10-large-169.jpg","videoUrl":"/videos/business/2020/12/16/bitcoin-anthony-scaramucci-markets-now.cnn-business/video/playlists/business-digital-currency/","description":"Just how far can Bitcoin prices rise? Anthony Scaramucci tells CNN's Alison Kosik that Bitcoin's best days are ahead, but the ride will be volatile.","descriptionText":"Just how far can Bitcoin prices rise? Anthony Scaramucci tells CNN's Alison Kosik that Bitcoin's best days are ahead, but the ride will be volatile."},{"title":"Ripple CEO on what's driving cryptocurrency","duration":"02:26","sourceName":"CNNBusiness","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2020/12/02/ripple-ceo-cryptocurrency.cnnbusiness/index.xml","videoId":"business/2020/12/02/ripple-ceo-cryptocurrency.cnnbusiness","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201202111914-ripple-ceo-brad-garlinghouse-large-169.jpg","videoUrl":"/videos/business/2020/12/02/ripple-ceo-cryptocurrency.cnnbusiness/video/playlists/business-digital-currency/","description":"Brad Garlinghouse, CEO of Ripple, says the rally in digital currency is being driven by investors who see it as "an inflationary hedge." He also says the long-term value of cryptocurrency is in its ability to solve payment problems.","descriptionText":"Brad Garlinghouse, CEO of Ripple, says the rally in digital currency is being driven by investors who see it as "an inflationary hedge." He also says the long-term value of cryptocurrency is in its ability to solve payment problems."},{"title":"PayPal CEO: Our move into cryptocurrencies is to bolster utility","duration":"03:57","sourceName":"CNNBusiness","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2020/11/23/paypal-ceo-cryptocurrency-bitcoin.cnnbusiness/index.xml","videoId":"business/2020/11/23/paypal-ceo-cryptocurrency-bitcoin.cnnbusiness","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201123105600-paypal-cryptocurrency-large-169.jpg","videoUrl":"/videos/business/2020/11/23/paypal-ceo-cryptocurrency-bitcoin.cnnbusiness/video/playlists/business-digital-currency/","description":"Dan Schulman, President and CEO of PayPal, says the decision to accept digital currencies is to help shape the future of everyday commerce.","descriptionText":"Dan Schulman, President and CEO of PayPal, says the decision to accept digital currencies is to help shape the future of everyday commerce."},{"title":"He says Facebook's Libra is the future. Lawmakers aren't so sure","duration":"03:38","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/11/12/libra-calibra-david-marcus-facebook-risk-takers-orig.cnn/index.xml","videoId":"business/2019/11/12/libra-calibra-david-marcus-facebook-risk-takers-orig.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190923125500-20190919-rt-gfx-david-marcus-facebook-large-169.jpg","videoUrl":"/videos/business/2019/11/12/libra-calibra-david-marcus-facebook-risk-takers-orig.cnn/video/playlists/business-digital-currency/","description":"In the midst of intense regulatory scrutiny, is Facebook the right company to take cryptocurrency mainstream? Facebook executive David Marcus tells CNN Business' Rachel Crane why the world needs Libra.","descriptionText":"In the midst of intense regulatory scrutiny, is Facebook the right company to take cryptocurrency mainstream? Facebook executive David Marcus tells CNN Business' Rachel Crane why the world needs Libra."},{"title":"Facebook unveils Libra, a new cryptocurrency. Here are the details","duration":"02:08","sourceName":"CNN","sourceLink":"http://www.cnn.com/","videoCMSUrl":"/video/data/3.0/video/tech/2019/06/18/facebook-libra-cryptocurrency-sebastian-first-move.cnn/index.xml","videoId":"tech/2019/06/18/facebook-libra-cryptocurrency-sebastian-first-move.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190618091058-facebook-libra-large-169.jpg","videoUrl":"/videos/tech/2019/06/18/facebook-libra-cryptocurrency-sebastian-first-move.cnn/video/playlists/business-digital-currency/","description":"Facebook formally unveiled its highly-anticipated digital currency project called Libra. CNN's Clare Sebastian looks at what makes this different than other cryptocurrencies.","descriptionText":"Facebook formally unveiled its highly-anticipated digital currency project called Libra. CNN's Clare Sebastian looks at what makes this different than other cryptocurrencies."},{"title":"Winklevoss twins could work with Facebook again on crypto","duration":"03:22","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/08/14/boss-files-winklevoss-gemini-bitcoin-cryptocurrency-facebook-libra-orig.cnn-business/index.xml","videoId":"business/2019/08/14/boss-files-winklevoss-gemini-bitcoin-cryptocurrency-facebook-libra-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190814121011-winklevoss-twins-gemini-crypto-large-169.jpg","videoUrl":"/videos/business/2019/08/14/boss-files-winklevoss-gemini-bitcoin-cryptocurrency-facebook-libra-orig.cnn-business/video/playlists/business-digital-currency/","description":"Cameron and Tyler Winklevoss, co-founders of cryptocurrency exchange Gemini, explain why they are open to joining Facebook's Libra Association.","descriptionText":"Cameron and Tyler Winklevoss, co-founders of cryptocurrency exchange Gemini, explain why they are open to joining Facebook's Libra Association."},{"title":"Novogratz: Bitcoin will spike to $20k within 18 months","duration":"01:56","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/05/09/novogratz-bitcoin-salt-orig-gr.cnn/index.xml","videoId":"business/2019/05/09/novogratz-bitcoin-salt-orig-gr.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180926113325-092618-markets-now-mike-novogratz-large-169.jpg","videoUrl":"/videos/business/2019/05/09/novogratz-bitcoin-salt-orig-gr.cnn/video/playlists/business-digital-currency/","description":"Bitcoin bull Michael Novogratz tells CNN Business the cryptocurrency will triple to its all-time high of nearly $20,000 in the next 18 months.","descriptionText":"Bitcoin bull Michael Novogratz tells CNN Business the cryptocurrency will triple to its all-time high of nearly $20,000 in the next 18 months."},{"title":"Winklevoss twins call crypto the 'ultimate social network'","duration":"01:34","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/03/11/winklevoss-twins-crypto-app-zw-mc-orig.cnn-business/index.xml","videoId":"business/2019/03/11/winklevoss-twins-crypto-app-zw-mc-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190310213617-cameron-tyler-winklevoss-large-169.jpg","videoUrl":"/videos/business/2019/03/11/winklevoss-twins-crypto-app-zw-mc-orig.cnn-business/video/playlists/business-digital-currency/","description":"Cameron and Tyler Winklevoss sat down with CNN Business to discuss their crypto exchange, Gemini, and plans for their recently launched mobile app.","descriptionText":"Cameron and Tyler Winklevoss sat down with CNN Business to discuss their crypto exchange, Gemini, and plans for their recently launched mobile app."},{"title":"Company sells paintings using cryptocurrency","duration":"02:13","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/02/28/innovate-singapore-fin-tech-maecenas-vision.cnn/index.xml","videoId":"business/2019/02/28/innovate-singapore-fin-tech-maecenas-vision.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190228073219-innovate-singapore-fin-tech-art-large-169.jpg","videoUrl":"/videos/business/2019/02/28/innovate-singapore-fin-tech-maecenas-vision.cnn/video/playlists/business-digital-currency/","description":"In Singapore, one company is selling art market shares using cryptocurrency. But as CNN's Will Ripley finds out, paying with crypto is not all that simple.","descriptionText":"In Singapore, one company is selling art market shares using cryptocurrency. But as CNN's Will Ripley finds out, paying with crypto is not all that simple."},{"title":"JPMorgan launches crypto coin","duration":"03:02","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/02/14/jpmorgan-jpm-coin-cryptocurrency.cnn-business/index.xml","videoId":"business/2019/02/14/jpmorgan-jpm-coin-cryptocurrency.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190214120156-jamie-dimon-file-large-169.jpg","videoUrl":"/videos/business/2019/02/14/jpmorgan-jpm-coin-cryptocurrency.cnn-business/video/playlists/business-digital-currency/","description":"JPMorgan's "JPM Coin" is a prototype designed for institutional clients but executives wouldn't rule out that it could eventually be used for retail customers. CNN's Matt Egan reports.","descriptionText":"JPMorgan's "JPM Coin" is a prototype designed for institutional clients but executives wouldn't rule out that it could eventually be used for retail customers. CNN's Matt Egan reports."},{"title":"Quadriga assets frozen after founder dies","duration":"01:58","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/02/05/quadriga-cryptocurrency-exchange-ceo-death.cnn-business/index.xml","videoId":"business/2019/02/05/quadriga-cryptocurrency-exchange-ceo-death.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180927091832-01-bitcoin-illustration-large-169.jpg","videoUrl":"/videos/business/2019/02/05/quadriga-cryptocurrency-exchange-ceo-death.cnn-business/video/playlists/business-digital-currency/","description":"Quadriga, Canada's biggest cryptocurrency exchange, said it's unable to gain access to $145 million of bitcoin and other digital assets after Gerald Cotten, its 30-year old CEO and co-founder, died of complications arising from Crohn's Disease while traveling in India.","descriptionText":"Quadriga, Canada's biggest cryptocurrency exchange, said it's unable to gain access to $145 million of bitcoin and other digital assets after Gerald Cotten, its 30-year old CEO and co-founder, died of complications arising from Crohn's Disease while traveling in India."},{"title":"What is blockchain?","duration":"02:08","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2018/09/25/blockchain-dominos-digital-ledger-cryptocurrency-explainer-cnn-business-orig.cnn-business/index.xml","videoId":"business/2018/09/25/blockchain-dominos-digital-ledger-cryptocurrency-explainer-cnn-business-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180925120122-blockchain-dominos-thumbnail-large-169.jpg","videoUrl":"/videos/business/2018/09/25/blockchain-dominos-digital-ledger-cryptocurrency-explainer-cnn-business-orig.cnn-business/video/playlists/business-digital-currency/","description":"While some people are rushing to invest in cryptocurrencies like bitcoin and ethereum, other experts believe that the real value lies in the underlying technology, known as blockchain. CNN's Ramy Zabarah explains how it works.","descriptionText":"While some people are rushing to invest in cryptocurrencies like bitcoin and ethereum, other experts believe that the real value lies in the underlying technology, known as blockchain. CNN's Ramy Zabarah explains how it works."},{"title":"What is an ICO?","duration":"02:24","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2018/09/25/ico-initial-coin-offering-bitcoin-ethereum-cnn-business-orig.cnn-business/index.xml","videoId":"business/2018/09/25/ico-initial-coin-offering-bitcoin-ethereum-cnn-business-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180119104456-tokens-ico-explainer-thumbnail-large-169.jpg","videoUrl":"/videos/business/2018/09/25/ico-initial-coin-offering-bitcoin-ethereum-cnn-business-orig.cnn-business/video/playlists/business-digital-currency/","description":"You've probably heard of Bitcoin, but new cryptocurrencies get introduced almost every day through a process called an Initial Coin Offering. CNN's Ramy Zabarah breaks down how an ICO differs from an IPO and whether you should invest in one. ","descriptionText":"You've probably heard of Bitcoin, but new cryptocurrencies get introduced almost every day through a process called an Initial Coin Offering. CNN's Ramy Zabarah breaks down how an ICO differs from an IPO and whether you should invest in one. "},{"title":"How to buy and sell bitcoin","duration":"02:46","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/cnnmoney/2017/12/14/how-to-buy-and-sell-bitcoin.cnn/index.xml","videoId":"cnnmoney/2017/12/14/how-to-buy-and-sell-bitcoin.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/171214112035-bitcoin-explainer-thumbnail-large-169.jpg","videoUrl":"/videos/cnnmoney/2017/12/14/how-to-buy-and-sell-bitcoin.cnn/video/playlists/business-digital-currency/","description":"As the hype around bitcoin increases, CNN Tech shows you how to buy and sell it ... and why you might not want to.","descriptionText":"As the hype around bitcoin increases, CNN Tech shows you how to buy and sell it ... and why you might not want to."}],currentVideoCollectionId = '',isLivePlayer = false,mediaMetadataCallbacks,mobilePinnedView = null,moveToNextTimeout,mutePlayerEnabled = false,nextVideoId = '',nextVideoUrl = '',turnOnFlashMessaging = false,videoPinner,videoEndSlateImpl;if (CNN.autoPlayVideoExist === false) {autoStartVideo = false;if (autoStartVideo === true) {if (turnOnFlashMessaging === true) {autoStartVideo = false;containerEl = jQuery(document.getElementById(configObj.markupId));CNN.VideoPlayer.showFlashSlate(containerEl);} else {CNN.autoPlayVideoExist = true;}}}configObj.autostart = CNN.Features.enableAutoplayBlock ? false : autoStartVideo;CNN.VideoPlayer.setPlayerProperties(configObj.markupId, autoStartVideo, isLivePlayer, isVideoReplayClicked, mutePlayerEnabled);CNN.VideoPlayer.setFirstVideoInCollection(currentVideoCollection, configObj.markupId);var videoHandler = {},isFeaturedVideoCollectionHandlerAvailable = (CNN !== undefined &&CNN.VIDEOCLIENT !== undefined &&CNN.VIDEOCLIENT.FeaturedVideoCollectionHandler !== undefined);if (!isFeaturedVideoCollectionHandlerAvailable) {CNN.INJECTOR.executeFeature('videx').done(function () {jQuery.ajax({dataType: 'script',cache: true,url: '//www.i.cdn.cnn.com/.a/2.251.2/js/featured-video-collection-player.min.js'}).done(function () {initializeVideoAndCollection();}).fail(function () {throw 'Unable to fetch /js/featured-video-collection-player.min.js';});}).fail(function () {throw 'Unable to fetch the videx bundle';});}function initializeVideoAndCollection() {videoHandler = new CNN.VIDEOCLIENT.FeaturedVideoCollectionHandler(configObj.markupId,"cn-featured-2369hku",'js-video_description-featured-2369hku',[{"title":"Strategist on bitcoin: Pullback is very expected","duration":"02:54","sourceName":"CNNBusiness","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness/index.xml","videoId":"business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201124080935-02-bitcoin---stock-large-169.jpg","videoUrl":"/videos/business/2021/01/11/bitcoin-prices-plunge-julian-emanuel.cnnbusiness/video/playlists/business-digital-currency/","description":"BTIG's Julian Emanuel says the pause in bitcoin's rally is a "sentiment readjustment."","descriptionText":"BTIG's Julian Emanuel says the pause in bitcoin's rally is a "sentiment readjustment.""},{"title":"Scaramucci: Bitcoin is due for a correction","duration":"01:02","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2020/12/16/bitcoin-anthony-scaramucci-markets-now.cnn-business/index.xml","videoId":"business/2020/12/16/bitcoin-anthony-scaramucci-markets-now.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201216123432-20201216-markets-now-10-large-169.jpg","videoUrl":"/videos/business/2020/12/16/bitcoin-anthony-scaramucci-markets-now.cnn-business/video/playlists/business-digital-currency/","description":"Just how far can Bitcoin prices rise? Anthony Scaramucci tells CNN's Alison Kosik that Bitcoin's best days are ahead, but the ride will be volatile.","descriptionText":"Just how far can Bitcoin prices rise? Anthony Scaramucci tells CNN's Alison Kosik that Bitcoin's best days are ahead, but the ride will be volatile."},{"title":"Ripple CEO on what's driving cryptocurrency","duration":"02:26","sourceName":"CNNBusiness","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2020/12/02/ripple-ceo-cryptocurrency.cnnbusiness/index.xml","videoId":"business/2020/12/02/ripple-ceo-cryptocurrency.cnnbusiness","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201202111914-ripple-ceo-brad-garlinghouse-large-169.jpg","videoUrl":"/videos/business/2020/12/02/ripple-ceo-cryptocurrency.cnnbusiness/video/playlists/business-digital-currency/","description":"Brad Garlinghouse, CEO of Ripple, says the rally in digital currency is being driven by investors who see it as "an inflationary hedge." He also says the long-term value of cryptocurrency is in its ability to solve payment problems.","descriptionText":"Brad Garlinghouse, CEO of Ripple, says the rally in digital currency is being driven by investors who see it as "an inflationary hedge." He also says the long-term value of cryptocurrency is in its ability to solve payment problems."},{"title":"PayPal CEO: Our move into cryptocurrencies is to bolster utility","duration":"03:57","sourceName":"CNNBusiness","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2020/11/23/paypal-ceo-cryptocurrency-bitcoin.cnnbusiness/index.xml","videoId":"business/2020/11/23/paypal-ceo-cryptocurrency-bitcoin.cnnbusiness","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/201123105600-paypal-cryptocurrency-large-169.jpg","videoUrl":"/videos/business/2020/11/23/paypal-ceo-cryptocurrency-bitcoin.cnnbusiness/video/playlists/business-digital-currency/","description":"Dan Schulman, President and CEO of PayPal, says the decision to accept digital currencies is to help shape the future of everyday commerce.","descriptionText":"Dan Schulman, President and CEO of PayPal, says the decision to accept digital currencies is to help shape the future of everyday commerce."},{"title":"He says Facebook's Libra is the future. Lawmakers aren't so sure","duration":"03:38","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/11/12/libra-calibra-david-marcus-facebook-risk-takers-orig.cnn/index.xml","videoId":"business/2019/11/12/libra-calibra-david-marcus-facebook-risk-takers-orig.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190923125500-20190919-rt-gfx-david-marcus-facebook-large-169.jpg","videoUrl":"/videos/business/2019/11/12/libra-calibra-david-marcus-facebook-risk-takers-orig.cnn/video/playlists/business-digital-currency/","description":"In the midst of intense regulatory scrutiny, is Facebook the right company to take cryptocurrency mainstream? Facebook executive David Marcus tells CNN Business' Rachel Crane why the world needs Libra.","descriptionText":"In the midst of intense regulatory scrutiny, is Facebook the right company to take cryptocurrency mainstream? Facebook executive David Marcus tells CNN Business' Rachel Crane why the world needs Libra."},{"title":"Facebook unveils Libra, a new cryptocurrency. Here are the details","duration":"02:08","sourceName":"CNN","sourceLink":"http://www.cnn.com/","videoCMSUrl":"/video/data/3.0/video/tech/2019/06/18/facebook-libra-cryptocurrency-sebastian-first-move.cnn/index.xml","videoId":"tech/2019/06/18/facebook-libra-cryptocurrency-sebastian-first-move.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190618091058-facebook-libra-large-169.jpg","videoUrl":"/videos/tech/2019/06/18/facebook-libra-cryptocurrency-sebastian-first-move.cnn/video/playlists/business-digital-currency/","description":"Facebook formally unveiled its highly-anticipated digital currency project called Libra. CNN's Clare Sebastian looks at what makes this different than other cryptocurrencies.","descriptionText":"Facebook formally unveiled its highly-anticipated digital currency project called Libra. CNN's Clare Sebastian looks at what makes this different than other cryptocurrencies."},{"title":"Winklevoss twins could work with Facebook again on crypto","duration":"03:22","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/08/14/boss-files-winklevoss-gemini-bitcoin-cryptocurrency-facebook-libra-orig.cnn-business/index.xml","videoId":"business/2019/08/14/boss-files-winklevoss-gemini-bitcoin-cryptocurrency-facebook-libra-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190814121011-winklevoss-twins-gemini-crypto-large-169.jpg","videoUrl":"/videos/business/2019/08/14/boss-files-winklevoss-gemini-bitcoin-cryptocurrency-facebook-libra-orig.cnn-business/video/playlists/business-digital-currency/","description":"Cameron and Tyler Winklevoss, co-founders of cryptocurrency exchange Gemini, explain why they are open to joining Facebook's Libra Association.","descriptionText":"Cameron and Tyler Winklevoss, co-founders of cryptocurrency exchange Gemini, explain why they are open to joining Facebook's Libra Association."},{"title":"Novogratz: Bitcoin will spike to $20k within 18 months","duration":"01:56","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/05/09/novogratz-bitcoin-salt-orig-gr.cnn/index.xml","videoId":"business/2019/05/09/novogratz-bitcoin-salt-orig-gr.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180926113325-092618-markets-now-mike-novogratz-large-169.jpg","videoUrl":"/videos/business/2019/05/09/novogratz-bitcoin-salt-orig-gr.cnn/video/playlists/business-digital-currency/","description":"Bitcoin bull Michael Novogratz tells CNN Business the cryptocurrency will triple to its all-time high of nearly $20,000 in the next 18 months.","descriptionText":"Bitcoin bull Michael Novogratz tells CNN Business the cryptocurrency will triple to its all-time high of nearly $20,000 in the next 18 months."},{"title":"Winklevoss twins call crypto the 'ultimate social network'","duration":"01:34","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/03/11/winklevoss-twins-crypto-app-zw-mc-orig.cnn-business/index.xml","videoId":"business/2019/03/11/winklevoss-twins-crypto-app-zw-mc-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190310213617-cameron-tyler-winklevoss-large-169.jpg","videoUrl":"/videos/business/2019/03/11/winklevoss-twins-crypto-app-zw-mc-orig.cnn-business/video/playlists/business-digital-currency/","description":"Cameron and Tyler Winklevoss sat down with CNN Business to discuss their crypto exchange, Gemini, and plans for their recently launched mobile app.","descriptionText":"Cameron and Tyler Winklevoss sat down with CNN Business to discuss their crypto exchange, Gemini, and plans for their recently launched mobile app."},{"title":"Company sells paintings using cryptocurrency","duration":"02:13","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/02/28/innovate-singapore-fin-tech-maecenas-vision.cnn/index.xml","videoId":"business/2019/02/28/innovate-singapore-fin-tech-maecenas-vision.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190228073219-innovate-singapore-fin-tech-art-large-169.jpg","videoUrl":"/videos/business/2019/02/28/innovate-singapore-fin-tech-maecenas-vision.cnn/video/playlists/business-digital-currency/","description":"In Singapore, one company is selling art market shares using cryptocurrency. But as CNN's Will Ripley finds out, paying with crypto is not all that simple.","descriptionText":"In Singapore, one company is selling art market shares using cryptocurrency. But as CNN's Will Ripley finds out, paying with crypto is not all that simple."},{"title":"JPMorgan launches crypto coin","duration":"03:02","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/02/14/jpmorgan-jpm-coin-cryptocurrency.cnn-business/index.xml","videoId":"business/2019/02/14/jpmorgan-jpm-coin-cryptocurrency.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/190214120156-jamie-dimon-file-large-169.jpg","videoUrl":"/videos/business/2019/02/14/jpmorgan-jpm-coin-cryptocurrency.cnn-business/video/playlists/business-digital-currency/","description":"JPMorgan's "JPM Coin" is a prototype designed for institutional clients but executives wouldn't rule out that it could eventually be used for retail customers. CNN's Matt Egan reports.","descriptionText":"JPMorgan's "JPM Coin" is a prototype designed for institutional clients but executives wouldn't rule out that it could eventually be used for retail customers. CNN's Matt Egan reports."},{"title":"Quadriga assets frozen after founder dies","duration":"01:58","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2019/02/05/quadriga-cryptocurrency-exchange-ceo-death.cnn-business/index.xml","videoId":"business/2019/02/05/quadriga-cryptocurrency-exchange-ceo-death.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180927091832-01-bitcoin-illustration-large-169.jpg","videoUrl":"/videos/business/2019/02/05/quadriga-cryptocurrency-exchange-ceo-death.cnn-business/video/playlists/business-digital-currency/","description":"Quadriga, Canada's biggest cryptocurrency exchange, said it's unable to gain access to $145 million of bitcoin and other digital assets after Gerald Cotten, its 30-year old CEO and co-founder, died of complications arising from Crohn's Disease while traveling in India.","descriptionText":"Quadriga, Canada's biggest cryptocurrency exchange, said it's unable to gain access to $145 million of bitcoin and other digital assets after Gerald Cotten, its 30-year old CEO and co-founder, died of complications arising from Crohn's Disease while traveling in India."},{"title":"What is blockchain?","duration":"02:08","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2018/09/25/blockchain-dominos-digital-ledger-cryptocurrency-explainer-cnn-business-orig.cnn-business/index.xml","videoId":"business/2018/09/25/blockchain-dominos-digital-ledger-cryptocurrency-explainer-cnn-business-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180925120122-blockchain-dominos-thumbnail-large-169.jpg","videoUrl":"/videos/business/2018/09/25/blockchain-dominos-digital-ledger-cryptocurrency-explainer-cnn-business-orig.cnn-business/video/playlists/business-digital-currency/","description":"While some people are rushing to invest in cryptocurrencies like bitcoin and ethereum, other experts believe that the real value lies in the underlying technology, known as blockchain. CNN's Ramy Zabarah explains how it works.","descriptionText":"While some people are rushing to invest in cryptocurrencies like bitcoin and ethereum, other experts believe that the real value lies in the underlying technology, known as blockchain. CNN's Ramy Zabarah explains how it works."},{"title":"What is an ICO?","duration":"02:24","sourceName":"CNN Business","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/business/2018/09/25/ico-initial-coin-offering-bitcoin-ethereum-cnn-business-orig.cnn-business/index.xml","videoId":"business/2018/09/25/ico-initial-coin-offering-bitcoin-ethereum-cnn-business-orig.cnn-business","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/180119104456-tokens-ico-explainer-thumbnail-large-169.jpg","videoUrl":"/videos/business/2018/09/25/ico-initial-coin-offering-bitcoin-ethereum-cnn-business-orig.cnn-business/video/playlists/business-digital-currency/","description":"You've probably heard of Bitcoin, but new cryptocurrencies get introduced almost every day through a process called an Initial Coin Offering. CNN's Ramy Zabarah breaks down how an ICO differs from an IPO and whether you should invest in one. ","descriptionText":"You've probably heard of Bitcoin, but new cryptocurrencies get introduced almost every day through a process called an Initial Coin Offering. CNN's Ramy Zabarah breaks down how an ICO differs from an IPO and whether you should invest in one. "},{"title":"How to buy and sell bitcoin","duration":"02:46","sourceName":"CNN","sourceLink":"","videoCMSUrl":"/video/data/3.0/video/cnnmoney/2017/12/14/how-to-buy-and-sell-bitcoin.cnn/index.xml","videoId":"cnnmoney/2017/12/14/how-to-buy-and-sell-bitcoin.cnn","videoImage":"//cdn.cnn.com/cnnnext/dam/assets/171214112035-bitcoin-explainer-thumbnail-large-169.jpg","videoUrl":"/videos/cnnmoney/2017/12/14/how-to-buy-and-sell-bitcoin.cnn/video/playlists/business-digital-currency/","description":"As the hype around bitcoin increases, CNN Tech shows you how to buy and sell it ... and why you might not want to.","descriptionText":"As the hype around bitcoin increases, CNN Tech shows you how to buy and sell it ... and why you might not want to."}],'js-video_headline-featured-2369hku','',"js-video_source-featured-2369hku",true,true,'business-digital-currency');if (typeof configObj.context !== 'string' || configObj.context.length

Read more:
Bitcoin plunges more than 20% in three days. It's now in a bear market - CNN

Bitcoin Bull Run: OGs on Why This Ones Different – Yahoo Finance

Think back to 2017. Crypto was everywhere. The celebrities hawking ICOs included DJ Khaled, Floyd Crypto Mayweather and longtime blockchain enthusiast Paris Hilton. The most watched comedy on television, Big Bang Theory, named an episode The Bitcoin Entanglement. Long Island Iced Tea made the worlds most natural pivot, rebranding itself as Long Blockchain Corp. (The stock jumped 200%.)

And now? Crickets. Even though the price of bitcoin seems to break a new record every five minutes, erupting from $4K to $40K in less than a year, for some reason this bull run feels different not as mainstream, not as talked about, not as Paris Hilton-y.

So is it really different? There are many ways to measure a bull cycle. The most obvious is by looking at the price, another is to look at things like the frequency of bitcoin in Google searches and a third is to evaluate the technical and fundamental metrics smart analyses from the Nic Carters and Willy Woos of the world.

Related: As Bitcoin Regains Lost Ground, Options Traders Bet on $52K Move By Late January

But then theres the qualitative side. I wanted to find out how the bull run looks how it feels from the perspective of OG bitcoin hodlers. And if this cycle is different, why? And where are we headed?

Lets start with the kid.

When Erik Finman was 12 years old, his older brother took him to a very chill protest in Washington, D.C. This was in 2011. Finman happened to notice a guy wearing an orange shirt that had a big B in the middle.

Whats that? the 12-year-old asked.

Related: Eye-Popping Projection for $3T Crypto Market Underpins Bakkt Deal

Its bitcoin, man. Its going to end Wall Street, bro.

So the 12-year-old looked into this bitcoin thing. He grew curious, and so did his older brother. His grandmother had just given him $1,000. (She thought she didnt have much longer to live, so she gave checks to all of her grandchildren.) He tried to give it back. His grandma wouldnt take it. The check was supposed to go for a scholarship fund but instead the kid used it to buy bitcoin. The price of each coin was around $10, so he bought 100 bitcoin. Thanks, Grandma. (Happily, her health improved. Shes actually my only living grandparent now, says Finman.)

Story continues

See also: Jeff Wilser Cathie Wood: Ahead of the Curve

Bitcoin became an obsession, Finman remembers. While the rest of his friends were into Call of Duty or Pokemon, the 12-year-old hustled to get more BTC, texting with strangers to buy and sell. I felt like a Wall Street broker. He would eventually cobble together over 400 bitcoin.

You know those dot-com wunderkinds who drop out of college? Thats nothing. When Finman was 15 he dropped out of high school. Since then he helped start the crypto payments company Metal Pay, built a real-life Dr. Octopus suit (inspired by Spider-Man), and launched a satellite with Taylor Swift. (Its easy to connect with T Swift, says Finman. IMDBPro lists everyones agent; its only $30 per month, and the agents check their email.)

During the frenzied 2017 bull run, the media couldnt get enough of the Teenage Bitcoin Millionaire. The Guardian photographed him sprawled over a pile of cash, wearing sunglasses, a hundred-dollar bill sticking out of his mouth. GQ covered his streetware. But guess who also consumes the media? Hackers. They spotted a rich target and came for his digital gold. I was sick to my stomach, says Finman. I got emails that threatened to kill me if I didnt give them bitcoin. They also threatened his parents, even mentioning them by name along with their work addresses.

I was terrified to walk on the sidewalk, Finman remembers. He had insomnia for days. The worst of it came on Aug. 21, 2017 the day of the eclipse. Hackers knew that everyone would be staring at the sun and away from their computers, so they chose that precise moment to pounce. Erik watched the eclipse like the rest of the world but he happened to get tired of it a little early,. He returned to his computer to see crazy flickering and movements on his screen. Oh s**t, he said to himself, and somehow he booted them from his system just in time. (Amazingly, he didnt lose any crypto to hacks, but says his email and Twitter were compromised for months.)

And now, his life in the current bull run? There are no calls from GQ. No fawning from The Guardian. Finman has a theory for why this cycle feels so under the radar: The cultural space that was once occupied by crypto is now gobbled up by politics and the coronavirus pandemic.

[Donald] Trump gets more clicks than crypto, says Finman. He thinks of the earlier bull run of 2013 as a golden era, not just because of the wealth creation but because you could talk about things other than politics. Back in the day, cool young people were doing cool things, and building cool s**t. I feel like that has been lost.

He misses going to parties and talking about new apps and crypto, instead of Trump and pandemics. Maybe [President-elect Joe] Bidens not as interesting as a person and hell get less clicks, says Finman. Maybe bitcoin is more interesting than Joe Biden.

Finman and I spoke weeks before the mob of Trump supporters invaded the Capitol, but that wrenching day of Jan. 6 seemed to encapsulate his point. While most of the nation watched, horrified, as chaos engulfed the nations capital, which perhaps said something dark about America, the price of bitcoin surged another 10%. This is perhaps the great irony of blockchain in 2020 and 2021: the raucous celebrating of bitcoin, juxtaposed against so much real-world suffering (nearly 2 million deaths from the coronavirus) can seem tone-deaf.

As much of the world grieves for the dead, struggles to pay rent or simply tries to make it through the drudgery of quarantine, many of the bitcoin bulls whistle a different tune. 2020 was an excellent year! tweets a cheerful crypto investor. Another gushes that 2020 was a hell of a year. Ive never seen a market like it and Im fortunate to have closed it on a high note Not only did I finish at all-time highs, but #Bitcoin has finally given me a clarity that Ive been seeking for awhile. 2021 should be special.

Erik Voorhees, the CEO of ShapeShift, has also been around since near the beginning. He takes us down memory lane. In 2011, the price hit $31, then the bubble popped and it would crater to $2. These were dark days for bitcoin. Everyone who was skeptical had every reason to believe that it was over, remembers Voorhees. All the people hating on bitcoin had a field day for months and months. The next bull cycle wouldnt come for another two years, in 2013, when the price again cracked $31. Voorhees remembers giving a talk at New York University with Charlie Shrem, and during the talk the price pumped $5 as they celebrated. All of the students thought we were a little weird.

Voorhees has a contrarian take. It mostly feels the same, he says. When you go through several seasons of this market, it feels the same. You have this crazy bubble and then a period of denial after the bubble and then a dark bear market for a while and then a period of stabilization and then another period of growth. That cycle feels very natural to me. Voorhees says you cant predict how high it will get or when it will crash, but the overarching patterns feel consistent and predictable.

But does the actual price history bear this out? Lets go to the graphs. When you first look at a chart that displays the history of bitcoins price, these patterns are hard to spot. It looks like bitcoin is worth peanuts for years, then you see the to-the-moon bull run of 2017 then the crash and now today. Many traders look at it differently. They switch the scale of the chart to logarithmic, which basically plots the percentage change of the price.

For example, a jump in price from $1 to $1.1 is a 10% gain, just as a jump from $10,000 to $11,000 is a 10% gain. Both of those jumps would give an investor the same rate of return, so theyre displayed the same on the graph. And when you switch the chart to logarithmic, suddenly you do see the patterns. In fact, its easy to see. You see the bull and the bust cycles that repeat several times over the last decade, and you see that each time bitcoin crashes the new level is higher than the prior cycle. Looked through this prism, $40K prices look less like wild, uncharted territory and more like the smooth continuation of a decade-long trend. (If you squint.)

As for why we dont see the same breathless media coverage and why bitcoin is not in the larger cultural conversation? Thats a simple answer, says Voorhees, and then adds a slab of juicy red meat for the bitcoin bulls: Were not in the real bubble yet. His logic is that, yes, bitcoin has surpassed its previous ATH, but while everyone in crypto is freaking out and excited, because theyre like, Yes, were back! and while it prompts daily articles from CoinDesk on each new tick upwards (such as $27K, $28K, $29K) this is not yet interesting enough to curry much mainstream fascination.

A more useful and accurate time comparison for where we are in the current bull cycle, says Voorhees, is not the frothy top of December 2017, when bitcoin flirted with $20K and when the FOMO lured in bitcoin newbies. (Full disclosure: I was one of these newbs, and I bought bitcoin near the top that I still HODL.) Voorhees says a better comparison for where we are is February of 2017, when bitcoin had once again breached $1,000 after three years of wallowing in the triple-digits and established what was then a new ATH.

Follow the logic further. Its not yet interesting to the mainstream. The super mainstream interest occurs at the tail-end of the bubble. As for when that will happen? When we approach $100 grand, thats when youll see it all over the place. And that means [well be] in the latter stages of the cycle. Voorhees guesses that the current cycle will take bitcoin somewhere between $100k and $300k, and that this will occur between six and 12 months from now, and then the bubble will pop, and it will crash down over the next year, probably back below $100k, and probably never below $20K.

My personal theory: In the last bull run, there was still the widespread hope that we could use bitcoin as a way to buy a proverbial cup of coffee. This made bitcoin easy to understand. This made it easy to talk about. The How to Use Bitcoin! story was catnip for mainstream publications, offering easy hooks for pieces like Business Insiders I spent a day trying to pay for things with bitcoin and a bar of gold. But widespread merchant adoption never happened. Those stories faded. The mainstream lost interest and the actual use case of bitcoin is now trickier to convey. A hedge against inflation, as rampant monetary easing dilutes the dollar! is a tough bumper sticker.

Something else is different now. Back in 2017, much of the nation still had never heard of bitcoin, which made it easy for the producers of ABC News, say, to green-light a segment like What is bitcoin, the worlds most popular cryptocurrency? Segments like this were everywhere. The Today Show asked, What is cryptocurrency, and should you risk your money with it?. Now those explainer videos have already been done. That ABC producer would likely ask, Didnt we already run this story? Old news. Pass.

The peak of 2017-18s news coverage came in The New York Times Everyones Getting Hilariously Rich and Youre Not. The top image of that article featured two crypto bros one wearing a Bitcoin sweater, one wearing an Ethereum Sweater, which, it must be said, is tougher on the eyes than the Ugliest Christmas Sweater. I reached out to the Ethereum Sweater Guy, whose name is Mathieu Baril (whos now Operations Lead at DerivaDEX, a crypto exchange), to see whats changed between now and then.

The 2017 euphoria was strange, Baril remembers, as the San Francisco meet-ups became a bit more crazy and full of those trying to get rich quick. At one 2017 meet-up, Baril says, some people were walking next to Pieter Wuille and didnt even know he was a core dev. Baril says that while hes now seeing that same kind of get-rich-quick euphoria with decentralized finance (DeFi), the bitcoin run itself feels less hype-y, more solid.

To those following the space closely, the drivers of the bull run are now well understood: an influx of institutional capital (such as MicroStrategys trove of over 70,000 BTC), growing optimism from traditional finance (like JPMorgan floating a price of $146K), and a grudging appreciation for bitcoin as digital gold that can hedge against inflation.

This bull run was catalyzed by COVID, says Jill Carlson, principal of Slow Ventures and a CoinDesk columnist. Over 20% of all U.S. dollars were created in 2020. This staggering statistic rightly has asset managers fearing inflation and turning to bitcoin.

That institutional capital didnt just appear by magic. It took years of behind-the-scenes work. The secret engine of this bull run could have something to do with an obscure bit of paperwork called an SOC 2 audit, says Moe Adham, co-founder of Bitaccess, a Canadian startup. SOC stands for System and Organization Controls, and while it might lack the sex appeal of The Big Bang Theory or a 2017-era Jamie Foxx-backed ICO, it could have a more enduring impact.

In the last bull run of 2017, says Adham, it was extremely difficult, if not impossible, for listed companies and institutions to actually invest in bitcoin and carry that balance over a years-end, and satisfy a financial audit. Its one thing for you or me to scoop up some bitcoin on an exchange, but Adham says that a listed company (such as Square) needs a more buttoned-up custodian that can withstand the rigors of an SOC 2 audit.

For the last few years, the rise of institutional custodians such as BitGo, Gemini and Coinbase have quietly built out the pipes and plumbing to make these kinds of SOC audits doable. From a regulatory and compliance perspective, Bitgo has been hammering away at this problem for a very long time, says Mike Belshe, CEO of BitGo. Were a regulated institution. Anybody outside of our walls thats regulated needs to work with regulated parties, so now theyve got partners that they can work with.

Jill Carlson agrees with those who say that this bull run feels different. That institutional money will be stickier and have a stronger hand, she says, adding that it will open the door for even more institutional money to pour in. Unlike in 2017, Carlson notes, the bulk of the incoming funds are for the (relatively) more proven assets of Bitcoin and Ethereum, as compared to the rampant gambling on the more exotic blockchain projects that lured speculators with visions of 100X returns, many of which have gone bust.

The idea of institutional strong hands makes sense. Dovey Wan, founding partner of Primitive Ventures, says wealthy individuals who allocate only a small slice of their pie to bitcoin are able to outlast the inevitable dips in price, whereas the weaker hands dont have that luxury. If you have a small net worth, you cant HODL a large percentage of bitcoin due to price volatility, explains Wan. Or as she once posted on Weibo, Plebs buy to sell, chads buy to buy more.

While Wan (whos based in Hong Kong) agrees this is a fundamentally different bull market than in 2013 and 2017, she notes that its not perceived the same way around the globe. China still has a more bearish view. Most Chinese traders and crypto people have not been following the institutional influx from the West closely, and domestically crypto sentiment has always been more bearish due to local regulatory stiffening, explains Wan, such as the regulators cracking down on exchanges and mining, or the imprisonment of Chinese exchange founders like Star Xu.

Wan says the difference in crypto sentiment between the East and West is so stark, a savvy trader can make easy money by shorting bitcoin during Chinas daytime and going long bitcoin during the U.S. daytime. Its a simple straight alpha strategy since 2018.

Marshall Hayner started mining bitcoin on the original 2008 MacBook Pro, which fried his laptop. When he brought it into the Apple repair shop, the guys laughed at him for mining bitcoin, which they had never heard of. Trading was tough. There was no CoinBase or Binance or even a Mt. Gox. Back then they bartered with bitcoin for things like T-shirts, socks and Visa gift cards ironic, given bitcoins anti-bank ethos. I just wanted to prove to myself, does this really work? says Hayner. They traded in forums and chat rooms. The goal was not to make money, but to experiment and play.

In 2010, Hayner had scooped up enough bitcoin that he remembers thinking, If this thing ever goes to $20, Ill be a millionaire. When it did finally hit $20 he happened to arrive in Belize for a vacation with his girlfriend. Practically as soon as the plane landed he told his girlfriend that he needed to leave because he had to go back home and access the hardware wallet on his computer to sell crypto. She wasnt thrilled. So he raced back home to Boston, desperate to cash out and get rich but while he was on his flight the price plunged 90%, back to $2. The good news is he would eventually become a millionaire, the bad news is the girlfriend didnt last.

Then came the 2013-14 bull run, when bitcoin shot from $13 to $1,000 in just under a year. 2013 was the moment when it actually proved to have real commodity value, says Hayner, whos now the CEO of Metal Pay (he launched it with Erik Finman, the Teenage Bitcoin Millionaire.) Banks in Greece and Cyprus failed. ATMs ran out of money. Europeans were hungry for an alternative to fiat. This wasnt just speculation or FOMO people bought bitcoin to use it. Incremental demand for bitcoin is coming from the geographic areas most affected by the Cypriot financial crisis individuals in countries like Greece or Spain, worried that they will be next to feel the threat of deposit taxes, one fintech analyst wrote at the time.

If 2013 was driven by Greek and Cyprus demand and 2017 driven by retail speculation (or hype and FOMO), what does that mean for today? 2020 is the year where most people have heard about bitcoin, and most people have heard about cryptocurrency, Hayner reasons, so theyre investing with eyes wide open. This time around, almost everyone knows what this is.

If everyone knows what bitcoin is, that might explain why the Google search results arent anywhere near the booming heyday of December 2017. But that could be changing. Just a month ago, when I began researching this article, searches for bitcoin were only about 20% of that December peak. Now its climbing. Just in the past week, as the price of bitcoin shattered records by the hour, the searches more than doubled. This gives some ammo to Voorhees theory: The public will catch up if the price keeps rocketing.

Anecdotally, it does seem like the pace of bitcoin chit-chat has started to pick up. Im now getting texts from buddies asking how to buy crypto, which hasnt happened since early 2018. And now we see sentiments like this: Helped my 81-year-old grandmother put her $600 stimulus check in bitcoin yesterday, one user tweeted on Jan. 6. She gave me instructions to distribute it between her children in the case of her death. Her mother lived to 101. Personally helping mint a new hodler every week as of late.

I spoke with one last old-school bitcoiner to get some perspective. Ive lost count, but Ive been through seven or eight of these bull cycles, says Charlie Shrem, the founder of the early (and now legendarily defunct) exchange BitInstant, and who perhaps more than anyone has seen both the peaks (easy millions) and valleys (jail time) of crypto, and who is now hosting the podcast Untold Stories, chronicling the history of bitcoin. $1 to $10, $10 to $100, $100 to $1,000, and now $10,000 to maybe $100,000, or plus, says Shrem, almost nostalgically. This one was inevitable.

Shrem suspects the bitcoin price is filling itself out, in the same way that an air mattress needs to be filled before it can support your weight. In other words, if bitcoin is to actually be the relevant currency that its advocates envision, then the price almost must rise and keep on rising, just as an air mattress needs to be filled. Otherwise it wont do what its supposed to do. (He acknowledges its also possible that it goes to zero.)

I think bitcoin wants to be a six-figure number, says Shrem. And I think people who own bitcoin now want to see the value of one bitcoin be a six-figure number. Itd be tough to find a bitcoin owner who would disagree, but then again every owner of shares in Pets.com (a poster-child disaster from the dot-com era) wanted to see it go to the moon.

Shrem, like nearly everyone who spoke to me, says that this one really does feel different. For the prior bull cycles, even for the crypto-optimists, he says there was always an undercurrent of anxiety as the price ascended, like watching a rocket ship that takes off, and every time theres a 30% chance that something will go wrong. Now he doesnt feel that anxiety. He sees less of the FOMO, less of the hype, less of the greed. I dont see anyone talking about Lambos on Twitter, says Shrem.

Then again, as one crypto enthusiast tweets, Lambo bro, Bitcoin to the moon bro.

Read this article:
Bitcoin Bull Run: OGs on Why This Ones Different - Yahoo Finance

Bitcoin Plunges More Than 25%, Which Is Bad News For These Stocks Today – Motley Fool

What happened

The world's largest cryptocurrency is bitcoin, and its price is plunging. Bitcoin tokens nearly reached a price of $42,000 late last week. But on Monday, bitcoin briefly dipped below $31,000 -- more than a 25% drop in a matter of days.

As might be expected, any stock that has anything to do with bitcoin specifically or cryptocurrencies in general is down today. Several stocks are down by more than 20% as investors take profits off the table following a great run.

Among the hardest hit cryptocurrency stocks today are bitcoin miners like Marathon Patent Group (NASDAQ:MARA), Riot Blockchain (NASDAQ:RIOT), Bit Digital (NASDAQ:BTBT), and CleanSpark (NASDAQ:CLSK) which were down 10%, 13%, 25%, and 4% respectively as of 1:30 p.m. EST.

Image source: Getty Images.

While I don't know for sure, it's possible an article from British newspaper The Times sparked the bitcoin crash.According to that article, people won't be able to transfer profits out of cryptocurrency exchanges and into their HSBC bank accounts. If you're buying bitcoin and alt-coins as an investment, you're assuming you'll be able to realize those gains in fiat currency someday. But if HSBC can block transfers, could other banks make similar announcements? It seems the possibility is sparking a panicked rush for the exits from bitcoin.

Operational businesses like Marathon Patent Group, Riot Blockchain, Bit Digital, and CleanSpark are engaged in providing computing power to the bitcoin blockchain network and they generate revenue in bitcoin. So if bitcoin's value relative to fiat currency drops, then revenue for miners is worth less in the real world, explaining the drops in these stocks.

However, bitcoin mining stocks are probably among the most pumped small-cap stocks in this space as well. Many of these are multi-bagger stocks in a matter of weeks, and their trading volume is rivaling that of large-cap stocks. The implication is they're firmly controlled by traders with short-term interests.

RIOT data by YCharts

Generally speaking, if short-term traders have bid these stocks up, it's not surprising to see them fall with the first sign that the party is over. There wasn't any company-specific news from Marathon or Riot Blockchain to explain their drops, other than the price of bitcoin. CleanSpark was giving a virtual roadshow, but the stock fell long before it started -- nothing bad happened at the roadshow to explain why the stock is down.

As of this writing, Bit Digital's website was down, according to Isitdownrightnow.com. So it's unclear whether this bitcoin miner (which until recently was a car-rental business) has news relevant to shareholders. By the way, if it sounds crazy that a car rental company turned to bitcoin mining, wait until you meet Future FinTech Group (NASDAQ:FTFT), a former fruit juice company that's now developing blockchain technology for e-commerce. Both companies do business in China.

Future FinTech Group owns 60% of DCON DigiPay Limited, which operates in Japan. According to news released today by the company, DCON DigiPay Limited has completed work on a product that will allow e-commerce platforms to accept bitcoin as a form of payment. Since Future FinTech Group has e-commerce sites in China, this technology could likely be integrated quickly. It's the kind of news that would typically send a stock like this flying. But since bitcoin is down and hype is muted today, Future FinTech stock was down 16% despite its press release.

Image source: Getty Images.

So what if more banks start blocking transfers from cryptocurrency exchanges? If bitcoin remains a popular investment, then that might be good news for Grayscale Bitcoin Trust (OTC:GBTC), even though it's down 14% today. The fund trades over the counter, but holds bitcoin. The idea is it allows people to invest in bitcoin through their traditional stock brokerage accounts.

According to the fund's website, the current value of its bitcoin assets is significantly less than the price of shares. This of course seems illogical -- why would you pay more for shares of a fund than the underlying bitcoin is worth? But it shows there's demand for this investment vehicle. Not everyone wants to set up an account with a cryptocurrency exchange in order to own bitcoin directly, leaving Grayscale Bitcoin Trust as one of the only options.

If more banks block transfers, then investing through cryptocurrency exchanges would become less attractive. Therefore, it's possible there could be more demand for Grayscale Bitcoin Trust. However, the fund's value is still tied to the price of bitcoin. So investors must do research to form an opinion on where bitcoin is headed and whether this fund (with its associated fees) is something that fits their needs.

View post:
Bitcoin Plunges More Than 25%, Which Is Bad News For These Stocks Today - Motley Fool

From tech to bitcoin, long-time bull Ed Yardeni worries a meltdown will strike the market – CNBC

Edward Yardeni is concerned the market will get smoked.

The long-time bull, who spent decades running investment strategy for firms including Prudential and Deutsche Bank,is comparing Wall Street euphoria to the height of the dot-com bubble in 1999.

"The Nasdaq from late 1998 to early 2000 went up over 200%. Now, we're up almost 100%, and we may very well be on that same track," the Yardeni Research president told CNBC's "Trading Nation" on Friday. "Everything I'm looking at points to a melt-up."

The tech-heavy Nasdaq closed the week at a record high of 13,201.97. Yardeni is also highlighting bitcoin's meteoric rise as an example of extreme frothiness. It was up 36% in the first five trading days of the year and is above 300% over the past six months.

"It's just part of the bull market in everything," he said. "It's very important whether you're in or not in bitcoin to just stare at the chart, and realize when it's going straight up it's certainly a sign of exuberance, of speculative excess."

Despite his warning, Yardeni isn't sounding the alarm yet. He's optimistic on the economic recovery due to coronavirus vaccines and the fiscal and monetary landscape.

"The first half of this year, the blue wave will probably continue to be bullish," he noted. "We're going to get more government spending. We're going to have the Federal Reserve front a lot of that government spending through quantitative easing. I think interest rates will remain pretty low."

Plus, Yardeni believes widespread distribution of the coronavirus vaccine later this year will help normalize the economy in the final six months of 2021.

But that's where his forecast gets cautious. A booming economy, according to Yardeni, will lead to inflation risks due to the massive amounts of stimulus and demand increases.

"In the second half of the year, we may be on the lookout for some consumer price inflation which would not be good for overvalued assets," he said.

According to Yardeni, the Fed may also be challenged to keep the benchmark 10-year Treasury Note yield around 1%.

"We do see upward pressure on the bond yield. I think at some point the Fed says 'Maybe bond yields should be higher since the economy is doing well,'" said Yardeni.

For now, Yardeni is closely watching fundamentals and market indicators. He hopes they disprove his market melt-up thesis because they typically end in meltdowns.

"This market keeps stampeding ahead of my forecasts," Yardeni said. "I hope we get to 4,300, my S&P 500 [year-end] target, in a leisurely fashion."

On Friday, the S&P 500 index closed at an all-time highs of 3,824.68.

Disclaimer

Continue reading here:
From tech to bitcoin, long-time bull Ed Yardeni worries a meltdown will strike the market - CNBC

Bitcoin Is Tumbling Because Regulators Are Paying Attention – Barron’s

Text size

Few assets are more symbolic of the speculative fervor that has gripped the market than Bitcoin. And right now, few assets are falling faster.

Bitcoin traded under $33,000 Monday morning after nearly hitting $42,000 on Friday, a drop of around 20%.

With cryptos, it can be hard to figure out why they rise or fall. Not this time. The U.K. Financial Conduct Authority called crypto investments high risk and speculative, and reminded firms to tell investors they should be prepared to lose all their money.

Newsletter Sign-up

A morning briefing on what you need to knowin the day ahead, including exclusive commentary fromBarron's and MarketWatch writers.

Still, the speculative nature of Bitcoin isnt news to some crypto investors, and at more than $33,000, Bitcoin is still up about 15% year to date and 310% over the past 12 months.

Not all speculative investments are getting hit on Monday. Chinese electric vehicle stocks are rallying after NIO launched a luxury sedan over the weekend, and search-giant Baidu and Chinese auto maker Geely said they are developing a smart electric vehicle together. Expect EVs to big a big topic of conversation at the Consumer Electronics Show, which kicks off this week.

It will take more than just one regulators warning to pop this speculative bubble.

Al Root

*** Join Barrons for an outlook on financial markets, industry sectors, and individual stocks today at 12 p.m. EDT. Sign up here.

Articles of impeachment against President Donald Trump could be brought to the House floor Tuesday, House Speaker Nancy Pelosi said. However, the House may then decide to delay sending the articles to the Senate until well after President-elect Joe Biden takes office.

Whats Next: President-elect Biden has not said directly whether he supports impeachment, which may drag on well past his inauguration. The Senate is in recess until Jan. 19, and in a memo to his Republican colleagues, Senate Majority Leader Mitch McConnell said an impeachment trial would not be possible before Bidens inauguration.

Ben Walsh

Amazon cut off Parler, a social network that has become a favorite among conservatives, from its web hosting services because of the services lack of content moderation, particularly regarding threats or incitement to violence. For now, the site is offline, at least until it finds a new hosting service.

Whats Next: Its unclear how Parler can resume operation if the major hosting services other than Amazon decline to do business with it. There is a possibility that Parler will be unavailable on the internet for up to a week as we rebuild from scratch, the companys CEO John Matze said in a statement.

Ben Walsh

The U.S. plan to distribute Covid-19 vaccines has been sluggish, with just 7 million shots given out of the more than 22 million shipped, in part because of a decentralized strategy focused more on getting doses from the federal government to states than on how to deliver shots to patients.

Whats Next: Theres also the potential approval of Johnson &Johnsons single-shot vaccine, which does not require complex storage, on the horizon. Clinical trial results from its final trials could be available in the coming weeks, with the company expected to file for emergency use authorization soon after.

Ben Walsh

U.K. Chief Medical Officer Chris Whitty said Monday that England was facing a major health emergency unless people strictly abide by the lockdown rules set by the government, with the countrys health service threatening to be overwhelmed by the number of Covid patients.

Whats Next: The race between the vaccination campaign and the new variant of the virus is intensifying. The current U.K. lockdown is formally due to end on Feb 15, but there is little chance restrictions will be totally lifted then.

Pierre Brianon

China condemned the U.S. Monday for lifting curbs on interaction with Taiwanese officials and reiterated the governments policy that no one could prevent the countrys reunification.

Whats Next: The question now is whether the Biden administration will cancel Pompeos mostly symbolic decision, or wait until it has clearly formulated its own China policy.

Pierre Brianon

Why has the number of consumer bankruptcies decreased significantly during this time of financial stress for many Americans?

A MarketWatch correspondent will answer this question soon. In the meantime, send any questions you would like answered to thebarronsdaily@barrons.com.

Newsletter edited by Anita Hamilton, Stacy Ozol, Ben Levisohn, Matt Bemer

Read the original:
Bitcoin Is Tumbling Because Regulators Are Paying Attention - Barron's

Oil and bitcoin rise, but US small business optimism slides business live – The Guardian

The pandemic, and the waves of the restrictions that have accompanied it, have had highly selective effects. Theyve hit some areas of spending much harder than others.

The decline in aggregate consumer spending would almost certainly have been more protracted and more widespread affecting not just activities that involve infection risk but those that do not but for the furlough schemes. These have helped shield household incomes from the big drop in national income last year.

But thats not the only thing going on. Spending on some of these non-risky things have actually risen faster than incomes in some cases faster than they have for many years. So it looks as though consumers used some of the money they would have spent on riskier activities going to restaurants and so forth to buy other things instead.

This makes sense. A pound less spent on one thing neednt mean a pound less in total. Indeed under some (admittedly extreme) conditions youd expect substitution of this sort to be one-for-one. If people are entirely indifferent between different sorts of consumption if theyre just as happy with non-risky as risky stuff aggregate spending wouldnt fall at all (for given income). What they saved on one would be spent in its entirety on the other. The same is true if a rise in infection rates is expected to be permanent. If the future looks exactly like the present theres no reason for saving or therefore total consumption to change.

These conditions are obviously unrealistic. Some things are good substitutes for risky activities during the pandemic. Perhaps its not much harder to buy things online than in a shop. At a stretch, watching a film on a screen at home can replace a trip to the cinema. But going out with family or friends to a pub or a restaurant, listening to live music or watching a play for many of the things weve been denied for much of the past year, there is no good proxy. As for the dynamics of the pandemic, one thing theyre not is permanent or even slow-moving. Infection rates went up very rapidly in the spring and, once lockdown was in place, they fell almost as rapidly in the early summer. With the promise of looser restrictions as that happened, it would make sense for people to hold off on some spending until the day itself arrived.

Nevertheless, its clear that a fair degree of expenditure switching took place: some areas of consumption fared unusually well last year, even as others declined extremely sharply. Because its hard for economic resources to respond to large and rapid shifts in demand this may have softened somewhat the immediate impact of the downturn, enormous as it was, on inflation.

Go here to read the rest:
Oil and bitcoin rise, but US small business optimism slides business live - The Guardian

Insider Q&A: Bitcoin’s massive rise and what comes next – ABC News

By KEN SWEET AP Business Writer

January 11, 2021, 7:45 PM

3 min read

CHARLOTTE, N.C. -- The digital currency Bitcoin rocketed to a record high last week above $40,000 a coin. This comes after the currency languished for two years, plummeting from the previous high of $19,000 reached back in December 2018, when Bitcoin was subject to another round of media hype and investor interest.

Mike Venuto is co-portfolio manager for the Amplify Transformational Data Sharing ETF, a $391 million fund that focuses on companies that trade and develop uses for Bitcoin and other digital currencies, as well as the technology behind the currency, known as the blockchain.

He spoke to The Associated Press about Bitcoin's recent rise and what's different this time for the currency:

Q: Tell us a little bit about the fund.

A: We're an actively managed fund, because things in blockchain and this space are changing all the time it would be impossible to build a passively managed fund. We invest in blockchain companies, miners, and other companies in the space. We hold a small amount of Bitcoin and other currencies, but mostly get our exposure through the companies we own. But we would never hold more than 5% of the total fund in Bitcoin directly.

Q: It took two years for Bitcoin to rally back to its record hit in late 2018. What's different this time?

A: Nothing has changed with Bitcoin in the last two years. It's still a decentralized digital currency using the blockchain created years ago. What's changed is perception. Investors are looking for safe harbors for their assets, similar to how gold and silver are used.

Q: Should investors expect Bitcoin to keep going up?

A: Bitcoin is going to remain as volatile as ever, and there will be bumps in the road. You'll see massive moves up and massive moves down. What remains attractive are the companies who are using Bitcoin and the blockchain infrastructure to build use cases and practical applications for it.

Q: Evangelists of Bitcoin and other currencies talk about how it will replace paper money. In two years, that hasn't happened. Do you think it will ever happen?

A: The original argument for Bitcoin was it would provide the ability for the unbanked those without bank accounts to transact securely without a bank. Is that going to materialize? Will you be able to buy a cup of coffee with Bitcoin? Probably not with the current version of Bitcoin. It's largely become a store of value. But with other cryptocurrencies, we are seeing use cases like that.

Q: As of the writing of this article, Democrats look to be taking complete control of Congress. Will regulation impact Bitcoin's price or the technology behind it?

A: For the blockchain, the underlying technology of Bitcoin, regulation would be awesome. We can set some ground rules so it can merge more smoothly with the traditional financial system. But for Bitcoin itself, I think its decentralized nature will keep it relatively safe from interested governments. But you should expect there to be more scrutiny of Bitcoin, which could impact its price.

Originally posted here:
Insider Q&A: Bitcoin's massive rise and what comes next - ABC News

Bitcoin and Stellars Lumen Weekly Technical Analysis January 11th, 2021 – Yahoo Finance

Bitcoin

Bitcoin, BTC to USD, rallied by 15.8% in the week ending 10th January. Following on from a 25.6% breakout from the previous week, Bitcoin ended the week at $38,200.

It was a bearish start to the week. Bitcoin fell to a Monday intraweek low $28,540.0 before making a move.

Steering clear of the first major support level at $27,594, Bitcoin surged to a Friday intraweek high and a new swing hi $41,969.0.

Bitcoin broke through the first major resistance level at $36,608 and the second major resistance level at $36,608 on the way to a new all-time high.

A bearish end to the week, however, saw Bitcoin fall back to end the week at sub-$39,000 levels. In spite of the pullback, however, Bitcoin avoided a fall back through the second major resistance level at $36,608.

4 days in the green that included an 8.17% rally on Wednesday and a 7.18% gain on Thursday delivered the upside.

Bitcoin would need to move back through $36,236 pivot to support a run the first major resistance level at $43,933.

Support from the broader market would be needed for Bitcoin to break back through to $40,000 levels.

Barring an extended crypto rally, resistance at last weeks new swing hi $41,969 would likely cap any upside.

In the event of another breakout, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $49,665.

Failure to move back through the $36,236 pivot would bring 23.6% FIB of $33,008 and the first major support level at $30,504 into play.

Barring another extended sell-off, however, Bitcoin should steer clear of sub-$30,000 support levels. The second major support level sits at $22,807.

At the time of writing, Bitcoin was down by 8.79% to $34,844.0. A bearish start to the week saw Bitcoin slide from an early Monday morning high $38,277.0 to a low $33,642.0.

Bitcoin left the major support and resistance levels untested at the start of the week.

Stellars Lumen surged by 108.3% in the week ending 10th January. Following a 5.77% decline from the week prior, Stellars Lumen ended the week at $0.2849.

Story continues

It was a particularly bullish start to the week. Stellars Lumen surged from a Monday intraweek low $0.12852 to a Wednesday intraweek high and a swing hi $0.44.

The surge saw Stellars Lumen break through the weeks major resistance levels.

More significantly, Stellars Lumen also broke out from the 62% FIB of $0.1989 to form a near-term bullish trend.

A bearish second half of the week, however, saw Stellars Lumen slide back to end the week at $0.28 levels.

While avoiding the third major resistance level at $0.2016, Stellars Lumen fell through the 23.6% FIB of $0.3426.

The 38.2% FIB of $0.2823 limited the downside late in the week.

4-days in the green that included a 20.1% surge on Monday a 17.79% rally on Tuesday, and an 80.5% breakout on Wednesday delivered the upside.

Stellars Lumen would need to move back through 38.2% FIB of $0.2823 and the pivot level at $0.2845 to support a run at the first major resistance level at $0.4404.

Support from the broader market would be needed, however, for Stellars Lumen to break back through to $0.40 levels.

Barring another extended crypto rally, the 23.6% FIB of $0.3426 would likely leave Stellars lumen short of the major resistance levels.

In the event of another breakout, Stellars Lumen could test resistance at $0.50 before any pullback. The second major resistance level sits at $0.5960.

Failure to move back through 38.2% FIB and the $0.2845 pivot would bring 62% FIB of $0.1850 into play.

Barring an extended sell-off, however, Stellars Lumen should steer well clear of the first major support level at $0.1289

At the time of writing, Stellars Lumen was down by 12.55% to $0.2491. A mixed start to the week saw Stellars Lumen rise to an early Monday high $0.2856 before sliding to a low $0.2272.

While leaving the major support and resistance levels untested. Stellars Lumen fell through the 38.2% FIB of $0.2823.

This article was originally posted on FX Empire

The rest is here:
Bitcoin and Stellars Lumen Weekly Technical Analysis January 11th, 2021 - Yahoo Finance