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$4K gold target as Brandt eyes Bitcoin ‘big buy signal’

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Gold will gain regardless of whether Donald Trump or Joe Biden wins the election, one analyst says as Bitcoin (BTC) targets $11,000.

In an interview with the media division of precious metals giant Kitco on Oct. 7, Frank Holmes, CEO of U.S. Global Investors, said that he was “betting on gold” for bullishness by the end of the year.

“It’s love season. It’s the seasonality of two wedding seasons in India, it’s the season of lights of Diwali, then we have Christmas, and it peaks for Chinese New Year,” he told the network. 

“It’s an auspicious time for the consumption of gold, and it’s most highly correlated with GDP per capita growth.”

Gold, like Bitcoin, saw highs in August before a fall which came in line with renewed strength in the U.S. dollar currency index (DXY). The outcome of November’s U.S. election has the potential to influence USD standing considerably, but Holmes believes gold will shake off the result.

“Some are betting on blue, some betting on red, and I’m betting on gold,” he added.

As Cointelegraph reported, gold bug Peter Schiff has also painted a less-than-optimistic outlook for the dollar, arguing that a Biden win would be the worst case scenario.

Holmes confirmed that he was eyeing a $4,000 price target for XAU/USD.

Bitcoin vs. gold one-year chart. Source: Skew

Brandt focuses on weekly, daily Bitcoin price 

Bitcoin has seen inverse correlation with DXY, which has managed to claw back its losses from earlier this summer. Sideways trading has mimicked the lack of progress in gold, with $11,000 remaining out of reach so far in October.

News that payments giant Square had followed MicroStrategy in buying a large amount of BTC buoyed markets on Thursday, with BTC/USD nonetheless encountering resistance at $10,940 — the site of previous rejection late last month.

For analysts, however, the move is a conspicuous sign of good things to come.

“It is a major development that a global corporation is now putting $BTC onto its balance sheet,” veteran trader Peter Brandt responded on Twitter. 

“The weekly and daily charts [are] poised to flash a big buy signal.”

Bitcoin price analysis from Peter Brandt. Source: Twitter

Discussing Square, Cointelegraph Markets analyst Michaël van de Poppe warned that “dashes” of short-term bullish behavior may remain just that — unless Bitcoin can definitively overcome $11,000 resistance.





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Price analysis 6/14: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, UNI, LTC, BCH

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Bitcoin’s surge above $40,000 and the breakouts from select altcoins may be signals that the bottoming process has begun.



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‘Bitcoin is not an asset that is designed to be leveraged’ says Caitlin Long

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All eyes are on Bitcoin (BTC), as the largest cryptocurrency shot up past $40,000 on June 14. Unsurprisingly, the price increase happened shortly after Tesla CEO Elon Musk tweeted that the electric-car company would potentially accept BTC payments once more miners confirm green energy initiatives. 

Yet while Musk’s tweet may have driven the price of Bitcoin up, some industry experts believe that Bitcoin is not a cryptocurrency that should be leveraged. For example, during an exclusive interview at Bitcoin 2021 in Miami, Caitlin Long, founder and CEO of Avanti Financial, told Cointelegraph that unlike other cryptocurrencies, solvency matters more than leverage and liquidity when it comes to Bitcoin:

“Once you get into Bitcoin and you start losing money, I consider that to be really valuable tuition for really learning what Bitcoin is. We’ve got a lot of new people in this industry now who are going through those lessons, and hopefully folks will learn from them. Especially in this bull market, there’s been so much leverage added to the system. For those of us who’ve been around a long time, we’ve learned these lesson a long time ago – You don’t leverage Bitcoin.”

A regulatory push for Bitcoin and stablecoins

In addition to advising that Bitcoin shouldn’t be leveraged, Long mentioned that there are new regulations for Bitcoin coming out of Washington D.C., something which she believes has been coordinated with other government bodies. “It was Ray Dalio who said that Bitcoin’s biggest threat is success, because that means the regulators are going to be cracking down,” said Long.

Although this may be, Long pointed out that regulations will not ban cryptocurrency or Bitcoin — as long as users comply. She said:

“The punchline is that if you pay your taxes and you get regulated, and you don’t take shortcuts, you’re going to be okay. Those that are trying to commit crimes, or defraud consumers, or not pay taxes, and not comply with the law, then those people are not going to be okay.”

Long also noted that regulations around stablecoins are a priority for lawmakers. In particular, this will ensure that stablecoins don’t infect the U.S. dollar payment system with liquidity risk. To put this into perspective, Long mentioned the accidental hard fork that happened for a few hours in Ethereum (ETH) during November of last year, saying:

“At the time I was thinking what would happen if all the Ethereum ERC20 stablecoins had to be redeemed within the span of minutes because they had to be burned on one fork and reissued on another? That is not a risk that the traditional financial system has been thinking about.”

Moreover, Long commented on the risks associated with stablecoins back in May, warning that the entire stablecoin market has the potential to bring down other tokens upon a credit market correction.