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Bitcoin Hits New All-Time High as Inflation Potentially Gets Worse

Bitcoin has been on a massive surge over the past few weeks. At the time of writing, the asset has reached a new all-time high of more than $35,000, putting 2017’s price of just over $19,000 to complete shame. The fact is that the price of bitcoin is near double what it was three years

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Bitcoin has been on a massive surge over the past few weeks. At the time of writing, the asset has reached a new all-time high of more than $35,000, putting 2017’s price of just over $19,000 to complete shame. The fact is that the price of bitcoin is near double what it was three years ago, and the currency is now trading at a level that few analysts ever saw possible within this timeframe.

Bitcoin Has Nearly Doubled Its Size in Three Years

But there are many things that have been pushing bitcoin along the way. Many factors that have contributed to such a massive jump. One is inflation and the idea that fiat currencies are allegedly not doing so hot. This is largely due to the coronavirus pandemic that has spread so heavily over the past ten months.

First hitting economic markets in March of 2020, the virus has managed to do incessant amounts of damage to the globe that will likely take quite a bit of time to solve. To make up for some of this damage, governments have been overprinting money and sending out stimulus checks to citizens that have been affected, though this has somehow managed to work against them in many ways.

Many analysts have scoffed at the idea of this overprinting, saying you can’t simply pull money out of thin air. There is a consequence of printing excessive amounts of paper money, and now the Federal Reserve and similar institutions feel that things are going to get a lot worse, which could potentially make it easier for bitcoin to move to the front of the financial line.

In a recent interview, Morgan Stanley equity strategists claimed:

With global GDP output already back to pre-pandemic levels and the economy not yet even close to fully reopened, we think the risk for more acute price spikes is greater than appreciated.

The fact is that bitcoin is now just $5,000 short of $40,000. Could this price potentially be reached sometime this month? Given how strong things have been as of late, the idea of bitcoin reaching six-figure territory suddenly doesn’t seem so out of place.

The overbuying of securities by governments all over the world has prompted several top-notch investors and institutions to jump aboard the bitcoin train. Charles Hayter – chief executive of bitcoin and crypto data site Crypto Compare – explained:

With the macroeconomic backdrop of unprecedented monetary expansion and negative real interest rates spurred on by Covid-19, it is no wonder that investors of all types are looking at hard assets such as bitcoin as a gold alternative and a hedge against inflation.

Things Are Set for Further Jumps

Brandon Mintz – chief executive of Bitcoin Depot – offered similar sentiment, and feels bitcoin is about to jump even further:

The value of bitcoin in the long-term is almost guaranteed to rise due to limited supply, which makes it attractive for underbanked populations and any other traditional investors, especially when compared to fiat currencies subject to crippling inflation and unlimited supply.

Tags: bitcoin, bitcoin price, coronavirus Source: https://www.livebitcoinnews.com/bitcoin-hits-new-all-time-high-as-inflation-potentially-gets-worse/

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Going long: 270K Bitcoin moved into storage in a month

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Despite surging prices, Bitcoin investors are rapidly locking up their BTC for the long-term, with 270,000 BTC being taken out of liquid supply in the last 30 days.

According to data published by crypto market data aggregator Glassnode, “liquid” Bitcoin wallets have shed 270,000 BTC over the past month, up from 175,000 Bitcoin at the start of January.

Bitcoin Monthly Liquid Supply Change. Source: Glassnode

The data shows that Bitcoin’s (BTC) liquid supply has consistently fallen over the last nine months, with liquid supply currently sitting at 21.3% and showing no signs of reversing.

Bitcoin’s increasingly illiquid supply could be bullish for its price, with new retail and institutional traders vying for an increasingly diminishing supply. Glassnode estimates that nearly 80% of the 18.6 million circulating Bitcoin are currently stored in “illiquid” wallets.

According to Glassnode, a Bitcoin wallet is considered illiquid if less than 25% of the Bitcoin received has been transferred out across the entity’s life. In contrast, to be deemed highly liquid, the majority of Bitcoin must be transferred back into circulation, with less than 25% of the inflows held onto.

Bitcoin liquidity supply. Source: Glassnode

Of the 3.9 million BTC Glassnode describes as being highly liquid, 61% or 2.38 million is held by centralized exchanges. Their balances have also been dropping, with data from analytics firm CryptoQuant indicating exchanges’ reserves have shrunk by 13.8% since July.

Increasing institutional investment may be a significant force driving the depletion of Bitcoin’s liquid supply, with wallet tracking service Bitcoin Treasuries currently estimates that 33 institutional entities have accumulated more than 1.2 million BTC or 6.5% of Bitcoin’s circulating supply.

In the last few days, Grayscale has increased its holdings by approximately 25,000 BTC with a portfolio of 641,523.7 BTC as of January 20, 2021. To put this in perspective, approximately 900 Bitcoin are minted each day. According to Glassnode, however, on average only one-third of those are actually being sent to exchanges since July 2020.

Data from Investment firm SwissBorg shows that in the second half of 2020, institutional investors purchased on average more than 230% of the newly minted BTC. Adding in the purchases from PayPal and Square (along with the estimated amount of Bitcoin lost each day) demand could be running as high as 500% of the new supply.

Earlier today, the world’s largest asset manager BlackRock filed with the SEC, listing Bitcoin Derivatives as a possible investment. The firm entered 2021 with $7.81 trillion in assets under management, more than seven times crypto’s entire market cap.

Source: https://cointelegraph.com/news/going-long-270k-bitcoin-moved-into-storage-in-a-month

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Justin Roiland’s tokenized Rick and Morty ‘crypto art’ sells for $150,000

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Animator and video producer Justin Roiland’s tokenized art piece has been sold for $150,000 in a silent auction on 19 January. The art work titled “First Rick and Morty Crypto Art” was sold on Nifty Gateway, a non-fungible token marketplace. 

The Rick and Morty co-creator’s art piece is a part of his collection dubbed “The Best I Could Do.” The crypto art collection also includes other works inspired by popular shows such as The Simpsons, as well as the Rick and Morty series, among others.  

At press time, there were about six hours left for Roiland’s The Smintons” auction. According to Nifty Gateway, all proceeds from this ongoing auction will go toward helping the Los Angeles homeless encampments. 

An early adopter of the leading asset, Roiland went public with his Bitcoin endorsement back in 2015.

However, this is his first venture into the NFT art sector—one that has a niche audience that propelled the market to fame after enthusiasts poured in huge amounts on crypto art.

On 14 January, Nifty Gateway welcomed Roiland for his first ever crypto art release. His entire collection went live on Tuesday, 19 January.

Nifty Gateway, which is owned by Gemini, crypto exchange facilitates a significant volume of NFT sales almost every day. According to the market place, a Star Wars-themed tokenized artwork sold for $777,777, last year in December, on the platform. 

Source: https://eng.ambcrypto.com/justin-roilands-tokenized-rick-and-morty-crypto-art-sells-for-150000

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After Notching A New All-Time High, Ethereum Is Now Eyeing $10,500: Fundstrat Financial Strategist

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After Notching A New All-Time High, Ethereum Is Now Eyeing $10,500: Fundstrat Financial Strategist

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Ethereum, the world’s second-largest cryptocurrency by market capitalization, has been blossoming with decentralized finance, better known as DeFi, and some market pundits believe the cryptocurrency could see further upside after recently hitting a new lifetime high. 

An analyst at leading market research firm Fundstrat Global Advisors, David Grider, says ETH could easily surge more than seven-fold to $10,500 by year-end, as reported by Bloomberg.

Fundstrat Issues A $10,500 Target On ETH

Only four weeks after bitcoin (BTC) crossed past its old record high registered back in December 2017, the price of ethereum clocked a new all-time high on Tuesday. The cryptocurrency rallied past $1,400 after breaking out of a week-long consolidation period.

Now, the second-biggest crypto could advance further to make a new all-time high of $10,500. Grider’s target is based on the popularized DeFi sector that makes it possible for people to lend and borrow without the complexities of a third party. DeFi, in particular, makes a very strong case for the real-world utility of the ethereum blockchain.

The strategist noted that “blockchain computing may be the future of the cloud.” He added that the ethereum cryptocurrency is currently “the best risk/reward investment play in crypto”. 

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The ethereum 2.0 network upgrade adds credence to the optimistic outlook. The blockchain recently transitioned smoothly to a Proof-of-Stake (PoS) consensus algorithm, an upgrade that promises high scalability and the ability to process awe-inspiring transactions just like card payment giants such as Mastercard and Visa, Grider observed.

The Beacon Chain went live early last month after months of delays. It should be noted that the launch set the stage for more transitions in the future that are aimed at making ethereum a blockchain network capable of supporting a new financial system. Grider believes that any delays to the forthcoming network upgrades could deal a heavy blow to the price of ethereum. Additionally, a crypto bear market could also pose a risk to his ETH rally forecast. 

What’s Next For Ethereum In The Short-term?

Ether has enjoyed a spectacular bull rally over the past couple of months. Its price rose from $305 lows in August 2020 to recently testing $1,437.

The price of ETH has, nevertheless, slipped since breaking records on Tuesday. The cryptocurrency is trading at $1,318.51 at press time, down 4.60% on the day.

After Notching A New All-Time High, Ethereum Is Now Eyeing $10,500: Fundstrat Financial Strategist
ETHUSD Chart By TradingView

ETH’s price trajectory in the short-term is largely dependent on the performance of the flagship cryptocurrency. This means that if BTC tumbles below the key $34K level, ETH and other altcoins may suffer a huge pullback. Similarly, if BTC recovers and soars to new highs, then ether and the altcoin market, in general, will likely start a fresh increase. 

Regardless, Fundstrat’s David Grider is confident that the world’s biggest altcoin is primed for massive gains in the course of 2021.


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/after-notching-a-new-all-time-high-ethereum-is-now-eyeing-10500-fundstrat-financial-strategist/

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