On-chain cryptocurrency analyst Willy Woo says Bitcoin could eclipse gold’s use as a financial hedge in less than a year.
Woo tells his 210,000 Twitter followers that the portion of gold’s market cap that is actually used as a hedge against inflation could rapidly lose its dominance to Bitcoin.
Woo says only two-fifths of gold’s supply, worth $4.4 trillion, is currently serving a financial purpose. Assuming the price of gold stays constant, BTC would overtake the yellow metal as a financial hedge at a price of $240,000. Woo says the “flippening” could happen in a matter of months.
“The Flippening. 40% of gold’s supply is available for financial use; the rest locked up in jewelery/industry.
Gold cap: $11T
Gold’s “financial use” cap: $4.4T
At gold’s present price, #Bitcoin at $240k will flip Gold’s use as a financial hedge. This could happen in 12 months.”
Bitcoin is currently trading at around $37,500 and would have to appreciate by about 540% to reach Woo’s price target.
Woo says he believes Bitcoin will never again revisit the $20,000 price level.
“We’ll never see $20k BTC again. $24k support would need a black swan event to breakdown.”
The cryptocurrency analyst further predicts that the number of Bitcoin users will grow by over 600% by January 2025 to reach one billion users.
137m users, 18.6m BTC, 3.8m lost
=> 0.11 BTC per person
1b users (estimated), 19.8m BTC, 3.8m lost
=> 0.016 BTC per person
At full global adoption:
8b+ users, 21m BTC, 3.8m lost
=> 0.002 BTC per person
That’s how early you are.
— Willy Woo (@woonomic) January 4, 2021
Woo says that as Bitcoin continues on its major upward rally, investors should deploy strategies used by venture capitalists buying into new technology.
“In the traditional world, good investors sell near highs and buy near lows. These are assets at market saturation. With technology gaining adoption, the VC strategy is to buy successive rounds at ever increasing highs, they don’t invest in down rounds. Treat BTC as the latter.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Mia Stendal
Binance Coin, Dash, Synthetix Price Analysis: 17 January
Binance Coin looked to revisit $38.72 as the price failed to hold up above its present resistance. Dash formed a symmetrical triangle on the charts and presented the possibility of a breakout above $135.69 resistance while SNX reversed course and fell by over 12% after hitting record levels.
Binance Coin [BNB]
Binance Coin retested $41.8 and moved lower as the bulls failed to lift prices towards $44.82 resistance. Prices could revisit the $38.72 support if the fall continues over the next few trading sessions. If the price rises, that would present an upside of $44.82. However, indicators favored the bears and suggested that a move towards immediate support could be a likely outcome.
The MACD was on the verge of a bearish crossover as the signal line eyed a move above the fast-moving line.
The Awesome Oscillator agreed with the MACD and indicated that momentum was shifting towards the bears.
Dash flashed red at press time, as prices traded at $121.84, down by 3.87% in the past 24 hours. A look at the 4hr chart showed that the price had formed a symmetrical triangle, and a breakout could be witnessed over the next few trading sessions. A bullish outcome could see the coin’s trading price rise above its immediate resistance and target a move above the next resistance at $135.69. On the flip side, a downward breakout could see the coin move below support $113.1.
The Stochastic RSI moved in the oversold territory and signaled a potential pullback if the index reverses direction.
The Parabolic SAR’s dotted markers were below the candlesticks and indicated that the price action was in an uptrend.
Synthetix hit an all-time high of $17.24 but immediately dropped by over 12% in the last few trading sessions. For now, losses were cut short at $14.63 support, but a fall below the present defense would confirm a bearish pullback.
The Relative Strength Index pointed downwards from the neutral zone. If the index moves into the oversold region, the price could follow suit and drop towards $13.41 support.
The MACD witnessed a bearish crossover as the price fell from record levels. The red bars on the histogram suggested the likelihood of a further pullback in prices.
Monero Price Analysis: 17 January
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The Monero market has been descending over the past couple of days. The overall trend in the market has not been actively bullish, and for Monero the trend has turned to a bearish one. As the price climbed down the price ladder, the market may witness more bearishness.
At the time of writing the price of Monero was $152.24.
Monero daily chart
The Monero chart has been showing that the price has been dropping after it hit the resistance at $170.89. This retracement has been currently testing the support at $151, and the price has been witnessing a strong downward pressure.
As the value of the digital asset continued to see a push and pull at the level, it may force the price to sink further down to the second support at $146. This would be an opportunity for traders to make a profit.
The 50 moving average has already been spiking above the candlesticks highlighting the downtrend of the coin. The RSI has moved closer to the overbought zone from the equilibrium zone, which suggested that the sellers in the market were growing.
Meanwhile, the MACD indicator was noting a rise in bearishness in the market. The strong red bars were growing and have continued in the market for a few days now. Whereas, the MACD line although under the signal line for a couple of days now, was witnessing its gap grow.
The current market conditions indicated an increased bearishness in Monero’s price action. As the digital asset trades close to the support, and if it ends up breaching it, the coin’s price is likely to drop to the next level of support at $146 which will, in turn, provide only a minimal profit to the short traders.
Litecoin, VeChain, Ethereum Classic Price Analysis: 17 January
Litecoin struggled to break above its current resistance, and sellers pushed prices towards $133.03 support. VeChain retested $0.026 and moved lower as buyers struggled to maintain control of the price while ETC traded within a restricted channel and relied on broader market cues for its path forward.
Most of Litecoin’s gains since the start of the month were negated after Bitcoin’s correction dragged LTC towards its $124.7 support. In fact, LTC’s weekly fall of over 22% was the highest among the top 10 cryptocurrencies by market cap. At the time of writing, LTC’s price was trading between $133.03 and $150.2 and seemed bearish. On the flip side, a broader market rally could boost its price above the upper ceiling and push them towards $155.5.
The Relative Strength Index was moving lower from the neutral zone, a sign of the price being bearish.
The Bollinger Bands indicated that the price could remain constricted over the next few sessions, as the bands were compressed.
After a breakout from the $0.026 resistance, VeChain retested the level once again. For now, sellers seemed to be in control and the price moved back towards its $0.024 support. On the other hand, a bullish scenario could see prices head towards the next resistance mark at $0.030.
Although the Awesome Oscillator registered two points of bearishness, it indicated a potential shift of momentum towards the market bears.
Lastly, Chaikin Money Flow suggested that capital inflows could keep prices from falling below their present support level.
Ethereum Classic [ETC]
At press time, Ethereum Classic was trading at $7.43, up 1.48 percent in the past 24 hours. Despite the move into green territory, ETC has been largely uneventful in the last few days. Prices have traded between a thin channel of $9.66 and $8.34, with momentum resting with neither the bulls nor the bears. The period of inactivity could perhaps be justified by slow growth in market leaders BTC and ETH, since the correction. A broader market trend could define a path forward for ETC, but for now, prices could continue to trade within their present channel.
The MACD was bearish-neutral as the red bars stayed below the zero line.
If the Stochastic RSI continued its trajectory into the oversold zone, and prices could fall and test the next support at $$7.77.
Will exchanges run out of Ethereum?
Trader comforts the market’s traumatized first timers amid falling prices
SolidX Sues VanEck Over Bitcoin ETF Plagiarism
Uniswap’s growth lead bites back over Yearn Finance’s SushiSwap merger
Crypto Lawyer Sees Incoming SEC Chair as a Win for Bitcoin, Not XRP
Update on Ethereum 2.0 Staking Rewards
Consob Blocks 6 New Illegal FX Websites
‘Why I’m not investing in nothing burger Bitcoin’: Shark Tank’s Kevin O’Leary
Landmark Real Estate Listing Offers Two New York Bars For 25 Bitcoin
WAX launches new token model to share revenue earned from NFT sales
SIMBA Chain receives $1.5M contract from the U.S. Office of Naval Research
EOS Price Analysis: 13 January
Transaction Fees Have Skyrocketed: Here’s How to Save Money
BitMex turns to Chainalysis to solve legal woes, or at least soften the CFTC’s blow
3 Bitcoin price indicators prove pro traders are still bullish on BTC
Ethereum is Struggling to Hold This Crucial Level Following Recent Rebound
What’s stopping Ethereum from climbing to its new ATH?
Ripple partners Mobile Money for wallet-to-wallet payments between Malaysia and Bangladesh
3 key reasons why the DeFi sector is booming again
CoinGate Delists XRP as Gatehub Holds Fort
Blockchain1 week ago
Norwegian Block Exchange secures large private investment
Blockchain6 days ago
Ethereum Whale Addresses With Over 10,000 ETH Continue to Grow In Numbers, Price Holds Above $1000
Blockchain5 days ago
‘Crypto is exactly like dot com bubble; Bitcoin, Ethereum can survive it’
Blockchain5 days ago
As Bitcoin Regains Lost Ground, Options Traders Bet on $52K Move By Late January
Blockchain5 days ago
Ethereum Price Analysis: 12 January
Blockchain6 days ago
Shanghai Government Invests $5M in Blockchain Startup Conflux
Blockchain5 days ago
Brian Brooks, Crypto-Friendly OCC Leader, Steps Down
Blockchain5 days ago
Coinbase Custody Lists DeFi Project BarnBridge