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Investors are More Interested in Bitcoin Than Stocks: TD Ameritrade

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A news segment on TD Ameritrade Network portrayed Bitcoin as a better investment than the US stocks.

Lead anchor Oliver Renick, at the end of his six-minute-long market wrapup, claimed that investors are more interested in owning Bitcoin than the equities. He said the cryptocurrency has “a lot to go” since it is the only asset that performed bullish on the positive US stimulus news on Wednesday.

Bitcoin Ditches Stock Correlation

The White House and Democrats in the US Congress came closer to an agreement over the size and details of the next coronavirus relief package. President Donald Trump said that he is willing to allow a broader aid despite facing opposition from his own Republican party members.

House Speaker Nanci Pelosi also said that she is hopeful about the possibilities of a fresh deal. Nevertheless, she acknowledged that it won’t pass until the November 3 presidential election.

It was optimistic news for risky assets. So far, prospects of a second coronavirus stimulus package weakened the US dollar, which, in turn, benefited the US stocks and Bitcoin. But on Wednesday, as Mr. Renick pointed out, the Wall Street indexes slipped alongside the US dollar index.

“Bitcoin breaks higher while the stock market is not responding to the lower dollar and stimulus, it is the most positive thing for the [cryptocurrency] bugs since we [TD Ameritrade] started covering it three years ago,” the news anchor commented.

Nowhere Else to Turn

A section of mainstream media also reported that investors are not optimistic but uncertain about the next stimulus package. That served as part of the reason why the US dollar and stocks declined on the same day.

In his comments to Bloomberg, NatWest Markets’ Global Head of Desk Strategy James McCormick said that “there is increasingly a recognition that no fiscal package agreement ahead of the election is likely.” He further noted that investors are not focusing on the coronavirus resurgence issue – all eyes are on the stimulus deal.

Their uncertainty was visible across the safe-haven market. Hedging asset gold surged 0.91 percent on Wednesday, its best daily close since October 9 on falling dollar sentiment. The precious metal showed worked as an alternative to the market that was seeking insurance against their exposure in the stocks.

Bitcoin-Gold correlation grows stronger. Source: XAUUSD on TradingView.com

Bitcoin, in a way, acted more like a safe-haven on Wednesday.

It rose alongside gold as investors assessed its growing prominence as a store-of-value asset among mainstream firms. That includes Square, a multinational payments firm, that bought $50 million worth of BTC last week; and MicroStrategy, a public-traded software firm, that replaced $425 billion of its cash reserves with BTC.

Investors also picked Bitcoin after PayPal announced its foray into the cryptocurrency industry on Wednesday. The global payment giant will enable users to spend, buy, store, and sell Bitcoin.

Many analysts noted that the cryptocurrency would surge to at least $15,000 by the end of this year. It was trading at $12,748 at the time of this writing.





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PlanB feeling ‘uneasy’ as 41% of his followers tip $100K BTC won’t happen this year

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PlanB, the brainchild behind the Bitcoin stock-to-flow model, has revealed he is feeling “uneasy” about his renowned price predictions due to the recent downtrend in markets.

The stock-to-flow (S2F) model, which has predicted BTC prices with some degree of accuracy over the past two years, has been called into question by some of his followers in a recent Twitter poll.

The anonymous analyst surveyed his followers on June 21 asking them what price they thought BTC would reach by the end of the year. He used the results to compare them to a similar survey in March when market sentiment was overwhelmingly bullish.

Of the 124,595 respondents to the latest poll, 41% thought that BTC prices would remain below $100K by the end of the year, which would invalidate the S2F model. That’s two and a half times the 16% in the previous poll who thought the lazer eyes crowd would be disappointed this year.

PlanB who originally published the price predictor in March 2019, pinned a message admitting that even he feels a little “uneasy” when BTC prices deviate from the model. However, the analyst noted that the model had managed to hold previously in March 2019, again in March 2020 when the pandemic caused a global market meltdown, and once more in September 2020.

Preston Pysh, the founder of The Investors Podcast Network, commented that it was difficult for a model to account for a blizzard of bad news that has accelerated the market downturn.

“You mean your model doesn’t account for 40%+ of mining rigs getting banned & forced to turn-off & relocate to various parts of the world…and with no forward notice to companies/entitles for the extraordinary expense to their heavily denominated BTC treasuries/retained earnings.”

The model is a calculation of a ratio based on the existing supply of Bitcoin against how much is entering circulation. The scarcer the asset becomes due to the four-year halving cycles the higher the price. PlanB’s model predicts an average price of $288K over the next three years.

Related: $288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

At the time of writing, Bitcoin had gained 2.9% over the past 24 hours to trade at $34,450 according to CoinGecko. The asset is currently 45% down from its all-time high of $64,800 on April 14.





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Bitcoin in uptrend but BTC may never beat gold’s $10T market cap — ex-NYSE head

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Bitcoin (BTC) is on a “lower left to upper right trend” and its volatility should not scare investors, the former head of the New York Stock Exchange says.

In an interview with CNBC on June 23, Thomas Farley revealed long-term convictions about Bitcoin and dismissed concerns over BTC price losses.

Bitcoin: Going up, but not “up only”

Coming a day after CNBC pundit Jim Cramer admitted that he sold his Bitcoin stash, suggesting that BTC/USD was going as low as $10,000, Farley provided some much-needed mainstream bullishness.

“With respect to the recent price moves, I’m kind of sanguine about them — Bitcoin’s a very volatile asset class, in part because it’s a new asset class,” he told the network.

“I have no doubt it’ll go up, it’ll go down over the long term — I still think it’s a lower left to upper right trend and I think we’re going to see that play out over five years.”

With mining upheaval coming from China still on everyone’s lips, popular mainstream criticism of Bitcoin’s energy usage was also swiftly cast aside as a temporary issue.

“I think this kerfuffle is an interesting conversation, but by and large I think it’ll be resolved because I think the blockchain at its core adds to its efficiency and in fact will add to energy efficiency over time,” he continued.

Less convinced on gold. vs. Bitcoin

When it comes to Bitcoin as “digital gold,” however, Farley was more conservative in his predictions.

Now firmly beneath a trillion-dollar market cap, Bitcoin must transform in order to take on store-of-value safe-havens.

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

“I think the upper bound for now is gold, which is about a $10 trillion market cap,” he added.

“In order for Bitcoin to one day exceed gold, it’ll have to be more of an accepted form of currency — I’m not sure, frankly, if it ever gets there.”

Proponents argue that Bitcoin, by its very nature, faces just a matter of time before eclipsing gold thanks to the latter’s ultimately infinite supply and inability to beat Bitcoin in all aspects of “money.”

The precious metal saw a major sell-off last week after comments on policy from the United States Federal Reserve.

To beat gold, Bitcoin would need to trade at more than $533,000 with the current supply.