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New Report by Bloomberg Suggest Bitcoin Price at $400,000 This Year Already

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According to Bloomberg, Bitcoin price has an upper hand in comparison to Gold based on underlying factors.

In a newly published report dubbed Bloomberg Crypto Outlook April edition, the Bloomberg researchers suggest Bitcoin price could rally and close 2021 at $400,000. Bloomberg analysts used historical data, particularly a year later after the past halving events. According to the researchers, Bitcoin price is set for a similar rally as 2013 and 2017 that saw the asset at its highest point respectively.

“The technical outlook for Bitcoin in 2021 remains strongly upward if past patterns repeat. Common companions for strong annual rallies in the first-born crypto – low volatility and halvings – are aligned favorably. Our graphic depicts Bitcoin on similar ground as the roughly 55x gain in 2013 and 15x in 2017. To reach price extremes akin to those years in 2021, the crypto would approach $400,000, based on the regression since 2011 high. In September, 180-day volatility on the crypto about matched the all-time low from October 2015. From that month’s average price, Bitcoin increased a little over 50x to the peak in 2017,” the report noted.

Bitcoin Price and Bloomberg Crypto Report

Bitcoin price has traded around the current levels, below $60k and above $50 for the past few weeks. During that period, several fundamental aspects have accumulated that favor the bull market in the coming months. Besides, the technical point of view suggests the asset is on verge of a major breakout.

“Little changed near $58,000 for over a month, Bitcoin appears to be a bull market resting for the next leg of its stair-step rally. Its 20- week moving average has advanced above $40,000 for the first time,” Bloomberg noted.

According to Bloomberg, Bitcoin price has an upper hand in comparison to Gold based on underlying factors. Among them, Bitcoin price has significantly increased during the pandemic whilst Gold price has remained around $1700 an ounce for almost a year.

Moreover, Bitcoin has a fixed supply and has its volatility stabilized thus attracting institutional investors. Bloomberg also noted that the amount of Bitcoin units leaving cryptocurrency exchanges has increased, with the number of Bitcoins in exchanges at its lowest.

In its interpretation, the low amount of Bitcoin units in exchanges is a precursor to an imminent bull market. “Our graphic depicts the percentage of Bitcoin held on exchanges well below the peak from 2020, which marked a selling extreme. The patterns in this dataset from Coinmetrics suggest the Bitcoin price will gain elevated risk of sellers dominating buyers when the amount of the crypto held on exchanges exceeds the previous high. That’s what happened around the price high in 2017,” the report explained.

The report also noted that Bitcoin price remain bolstered by increased adoption and demand by institutional investors. Particularly as depicted by Grayscale Bitcoin Trust and also by Tesla’s involvement with digital assets.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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UK’s Financial Conduct Authority Working with Binance to Understand Tradable Stock Token Services Recently Unveiled

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Currently, it is not clear what the UK’s Financial Conduct Authority will see fit for the new Binance tradable stock tokens services.

The UK’s Financial Conduct Authority speaking to the Financial Times noted that it is working with cryptocurrency exchange Binance to understand its latest services that entail Tradable Stock Tokens. Reportedly, the regulator wants to understand the regulations that may apply to it and also how the firm markets the new feature.

Speaking to the FT, the regulator said that it is “working with the firm to understand the product, the regulations that may apply to it and how it is marketed”. Additionally, the regulator noted that the “firms and their senior management teams are responsible for determining whether their products and services fall within the remit of the FCA”.

Notably, the news outlet also talked to the German regulators who declined to comment on any private matter. “We cannot comment on the specific case due to confidentiality obligations. Fundamentally, however, the following applies: if tokens are transferable, can be traded at a crypto exchange and are equipped with economic entitlements like dividends or cash settlements, they represent securities and are subject to the obligation to publish a prospectus,” the German regulator noted.

Bigger Picture on UK’s Financial Conduct Authority Investigations on Binance

Binance, the largest cryptocurrency exchange by traded volume and ecosystem growth, recently unveiled a zero commission tradable stock token. Initially, the firm only listed Tesla Inc (NASDAQ: TSLA) stocks, whereby it later added the recently launched Coinbase Global Inc (NASDAQ: COIN) stocks. According to Binance, each stock token that is provided through its system will represent one share of equity stock. Additionally, the firm noted that the tradable stock tokens are “fully backed by shares stored in a depository portfolio of underlying securities, in cooperation with investment firm CM-Equity AG and asset tokenization platform Digital Assets AG.”

On its defense, Binance noted that the tradable-stock tokens are a CM-Equity product that is compliant with the European Union’s Mifid II markets rules and also BaFin’s banking regulations. “Currently users only buy and sell the tokens from and to CM-Equity AG, which does not require a prospectus,” Binance said.

During the launch date, Binance Chief Executive Officer Changpeng Zhao alias ‘CZ’ said that the “Stock tokens demonstrate how we can democratize value transfer more seamlessly, reduce friction and costs to accessibility, without compromising on compliance or security.” Further, added that “Through connecting traditional and crypto markets, we are building another technological bridge for a more inclusive financial future.”

Currently, it is not clear what the UK’s Financial Conduct Authority will see fit for the new Binance tradable stock tokens services. Binance Coin is up approximately 1.1% in the past 24-hours and over 3659% in the past year. However, there is a minimal connection to the BNB than to its stablecoin BUSD as it might lack notable volume in the future if found against the law.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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Thodex Cryptocurrency Exchange Allegedly Pulls $2B Exit Scam

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It is estimated that the Thodex exchange has shut down with between $2-10 billion of investors’ hard-earned money irretrievable.

Some cryptocurrency investors are in a state of shock after another exchange based in Turkey pulled an exit scam, according to reports, Thodex has vanished out of thin air without notice with the investments of over 391,000 people locked up.

It is estimated that the Thodex exchange has shut down with between $2-10 billion of investors’ hard-earned money irretrievable. For now, the exchange has not made any official announcement about the situation on the ground, but activities surrounding the key players of the platform raise alarm about their intention.

It started when Thodex posted on their Twitter handle about their intention to improve customer satisfaction by the introduction of a Peer-to-Peer cryptocurrency investment service from outside. Thodex in another statement notified customers that they would suspend their trading activities for 4 to 5 days. However, the CEO of Thodex Faruk Fatih Ozer has deleted his social media account and disappeared without a trace.

It is suspected that the whole scheme was planned as the company introduced a program from March 15 to April 15 to attract more customers by freely giving out 150 Doge to new users who signed up within the period.

Oguz Evren Kilic, the lawyer who represents the unspecified number of customers has confirmed to have filed a legal complaint against the exchange, and the prosecutor of Istanbul has launched an investigation into the alleged exit scam.

Kilic alleged that the CEO of the Thodex exchange has fled from Turkey through a commercial flight on Wednesday. Other reports speculate that Fatih has fled to Albania. It is important to know that the cryptocurrency market has long been associated with crime.

Many believe that the decentralized asset acts as a tool for money laundering with the so-called exchanges taking advantage of its boom to scam enthusiasts. For this reason, the Turkish officials have called for a fast regulation of the market especially in this time where global crime associated with the industry is rising.

According to the senior economic advisor to President Recep Tayyip Erdogan, Cemil Ertem, a cryptocurrency-related pyramid scheme has been rampant in the area, hence the need for the government to put measures in place.

Ertem stated that beyond doubt, the country will take action against the recent industry occurrence by putting regulations in place based on the level of its economy. This being said, they will do this by monitoring global development.

Not only Thodex, but also many cryptocurrency exchanges have pulled an exit scam since Bitcoin started going mainstream. The ones that had no prior motive to shutdown operations were forced to do so after losing millions of dollars to hackers who got access to their administrative panel like MT.Gox.

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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.





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Huobi Asset Management Lauches BTC, ETH and Crypro Mining Funds

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One of the funds launched by Huobi Asset Management is a private equity fund that will invest solely in cryptocurrency mining operations.

In a move that is geared to encourage institutional investors to adopt crypto, Huobi Asset Management, a subsidiary of Huobi Technology, has recently announced four cryptocurrency funds for institutional investors.

Huobi Asset Management is part of the publicly traded Huobi Technology which is listed on the Hong Kong stock exchange. With this initiative, it is expected that institutional investors will take advantage of this opportunity and the lenient laws of Singapore and Hong Kong to invest more in digital assets.

While Huobi Asset Management is independent of its parent company, it has its backing which many believe positions it to achieve its goal of becoming one of the reputable names when it comes to managing digital assets for institutional investors.

Of the four investment funds created, two are passive funds for Ethereum and Bitcoin. This is contained in a statement released by the company on Thursday through Technode. Another fund is for actively investing in several cryptocurrencies which forms one portfolio.

The fourth fund launched by Huobi Asset Management is a private equity fund that will invest solely in cryptocurrency mining operations.

Lily Zhang, CFO of Huobi Tech, in a recent interview says that “the bitcoin and ethereum tracker funds are fully compliant under the financial regulations in Hong Kong and give traditional investors a more liquid and compliant channel to directly invest in cryptocurrencies.” However, the top executive refused to reveal the management fees attached to the funds.

To restate the goal of the company which is to lure institutional investors, it has placed limitations on those who can invest in the funds. According to the company statement, only accredited professional investors like asset managers, high net worth individuals, and family offices can invest.

The exclusivity has not in any way limit the investment as the four funds have already raised $50 million from investors pledges, just half of the company target of $100 million by the third quarter of 2021.

Huobi Tech which is the parent company for Huobi Asset Management is owned by Huobi Global which operates the popular cryptocurrency exchange. It is the second-largest cryptocurrency exchange in the world, boasting a transaction volume of around $12 billion within the past 24 hours before this writing.

Back in March, The Hong Kong Securities and Futures Commission gave Huobi Asset management the license to manage digital assser portfolio, making. It one of the first to hold the license. Other companies are also seeking license in Hong Kong.

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Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.



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