Showing posts with label bitcoin. Show all posts
Showing posts with label bitcoin. Show all posts

April Crypto Outlook: Why The Crypto Rally Could Intensify in April...

Welcome to the April Crypto Outlook with Contentworks, an agency specialising in content marketing for financial services, crypto and blockchain.

March was a difficult month for the crypto markets. Actually, it was a difficult month for everyone! In the past 30 days, most cryptocurrencies declined by more than 10%. Ethereum dropped by more than 40% while XRP and BTC dropped by more than 28%. At the same time, March was a month of recovery as BTC rose by more than 40% from its monthly low.

BTC, ETH, and XRP dropped in March

Why Bitcoin Dropped in March
There were several reasons why the price of Bitcoin and other cryptocurrencies dropped in the past month. First, the overall sentiment in the market was relatively weak as investors dumped their holdings. In March, major global indices like the Dow Jones, Nasdaq, DAX, and CAC dropped by more than 10% as investors worried about the impact of Coronavirus.

Secondly, the price dropped as more people moved to fiat currencies as more countries and states started lockdowns. In such lockdowns, fiat currencies like dollars, euros and pounds become more valuable because they are accepted in most retail shops.

Thirdly, most investors sold their crypto holdings to cover margin calls in other assets. Fourth, there was a lack of demand from institutional investors, who had seen their other holdings drop by more than 10%. Finally, and most importantly, there were concerns among investors about whether Bitcoin would survive a recession.

April Bitcoin Outlook
In April, the focus will remain on these issues. Investors will still be concerned about Coronavirus, which is continuing to kill thousands. The performance will depend on how long international markets will remain closed.

However, the outlook for Bitcoin and other cryptocurrencies will be better in April. This is because the perception among many investors is that the price has already bottomed. This could lead to more demand in the coming month.

Another factor that will influence its price is the decision by the Federal Reserve to accelerate money printing, through the process of quantitative easing. The process, together with large stimulus packages could force many people to question the health of their fiat holdings. More so, people could learn from how the dollar weakened when the Fed started its first quantitative easing. Therefore, all this could lead to more inflows into the crypto market and push their prices higher.

In addition, May is approaching. Between May and June, the number of Bitcoin blocks distributed to miners will be cut into half (halving). This process reduces supply, which is a positive thing for the price since there will be demand. As shown on the chart below, the price of Bitcoin has risen before and after the previous two halvings.

Bitcoin price tends to rise before and after halving

Bitcoin April Technical Forecast
On the four-hour chart below, we see that the BTC/USD pair has pared back its earlier losses and is trading at the 38.2% Fibonacci Retracement level. The price has also found significant resistance slightly below the 7,000 level. Meanwhile, the pair has also formed a triangle pattern, which is nearing its tip. This implies that the price could soon breakout to the upside, and possibly move to the 78.6% Fibonacci level of 9,000.

Final Thoughts
Bitcoin has bounced back from its monthly low of less than $3,500 as sentiment in the market has improved. Similarly, gold too, has managed to recover from its March lows and is currently near its 7-year high. In April, we expect that BTC will make some significant gains as markets stabilize, demand rises, and halving optimism returns.

At Contentworks, our team of financial professionals closely follows market movements for FX, Crypto and other tradable instruments. We are proud to serve some of the biggest crypto and fintech companies in the world by delivering high-impact articles, videos, PRs and white papers.

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Information Provided via Press Release
Distributed by Global Crypto Press Association Press Release Distribution for industry.

US Gov Opens Cashflow Floodgates - How Will Crypto Market React When MILLIONS Of Millennial's Get Payouts?

crypto and the Coronavirus Aid Package
We're on the verge of the biggest relief fund ever being sent to the people it's supposed to help.

The $2 Trillion Coronavirus Aid Package includes $500 billion for large companies, $339 billion for local governments, $377 billion for small business, and a long list of smaller allocations for specific or specialized purposes (such as stocking up on supplies in the case of future pandemics).

But the portion that could impact the markets - $560 billion, dedicated to helping individuals...

Distributed as direct payments appearing automatically in people's bank accounts, checks arriving in the mail, and additional payments on top of these which people can apply for online, such as unemployment.

Worth mentioning - for the first time ever unemployment will cover freelancers and gig workers, such as Uber drivers.

The basic breakdown is, any American earning under $99k will receive a payment of approximately $1200, then if they're not working at the moment (and most people are not) they qualify for unemployment - another $600/week. The unemployment is supposed to last up to 4 months, and while the $1200 is currently a 1 time payment, politicians are already discussing a possible second payment.

Stuck at home, no work, but still bringing in $3600 throughout April - this has to impact the market somehow...

Who else feels like most crypto traders will make sure at least some of this ends up in their portfolio?

I can confirm within the circle of friends I've been keeping in contact with while under these 'shelter in place' orders - some already know the first several trades they'll be making as soon as the funds appear in their bank account balance.

But that's hardly surprising among Silicon Valley millennial's - so i'm wondering, how about this generation in general?  Keep in mind, the 'millennial' label covers everyone 22 to 38 years old, and while nobody can be sure, the crypto market is estimated to be made up mostly of people under 45.

With that in mind, I asked some experts from the tech and crypto world for their predictions on how these funds will be spent...

IBM Blockchain developer, Co-Founder of MarketOrders, and #1 best selling author Sukhi Jutla believes people will be putting a lot of thought into their spending, telling me "I think it’s becoming increasingly clear that the coronavirus pandemic is pulling us into uncharted territory and truly unprecedented times. I think they will be inclined to spend the money on essentials" that doesn't mean we won't be seeing the effects in the market, she added "I expect to see the crypto markets react in a volatile manner to the continued uncertainty in the markers and it is where ironically the most profits are made (in volatile markets) so we will see investors buying up a lot of cheap assets and also offloading them."

Steve Ehrlich, CEO and Co-founder of Voyager Digital believes many know how to play things smart, explaining "Initially, they’ll cover their basic needs and essentials first" but acknowledged, this is a generation that has learned to hustle "While many are concerned about their future, it’s this same worry that could lead them to investing for the future, by wanting to generate more from this money than received at face value. Keep in mind, millennial's are less risk-averse than older generations and more likely to see how they can put that money to work, whether through a side-hustle or investing".

On the other hand, Head of Product Strategy at TradeStation Crypto, James Putra, seems to share a similar view as my peer group. I asked him if crypto's current low prices are just too tempting to pass up, he said "Sure, those that are into trading and investing will likely seize the opportunity to go bargain hunting in the stock or crypto markets. I’m pretty sure that my check will go to cryptocurrency. It seems unlikely that those who are not currently investing will drop this found cash into stocks or crypto currency. This money gets them one step closer to that trip, house, retirement or other long-term financial goal." 

Jonathan Keim, Director of Communications at InvestorBrandNetwork & CryptoCurrencyWire, balanced out the above points, he thinks if they have some savings already, these funds are prime to put into the market.  Otherwise, they will likely guard any funds they need to survive on until they're able to work again "It’s very hard for someone who has never invested on their own to put money into anything with risk. I believe we’re more likely to see the parents of the millennial's put money into cryptocurrencies as a result of the lower prices and concerns over potentially unprecedented inflation."

But everyone, myself included is simply giving their best guess - it's going to be an interesting few weeks as these funds land in the hands of the people who will decide where they'll be spent.

We've never seen these conditions before, and no scenario in the past was similar enough to attempt to draw comparisons from history - there's nothing but uncharted waters ahead, as far as the eye can see.

Author: Ross Davis
E-Mail: Twitter:@RossFM

San Francisco News Desk

BEGGING For Permission To Search The City Trash Dump, PRAYING To Find His Hard Drive with 7,500 Bitcoins On It...

This story is painful to watch.  Follow the man who was one of (perhaps the first) person to ever mine Bitcoin.  Back then it was easy, and his old computer held a nearly worthless 7500 BTC on it when he became bored and moved onto other things.

Smart enough to save the hard drive in case Bitcoin became popular in the future, but not careful enough when he was cleaning up... days later realizing he threw away the wrong one.

Worth about 50 MILLION today, he knows where it is - the massive city trash dumps.

But so far local leaders haven't let him conduct a search.  He has investors willing to bring machines and man power, and even offered to give a cut to the city government.

Video courtesy of Strive Finance

Crypto Markets Surge and "Leave Stocks In The Dust" - Plus, Let's Clear Up Confusion Around Bitcoin Being a 'Safe Haven' Asset...

Bitcoin Recovery under coronavirus
It's been an intense week, especially here in Silicon Valley, the first area of the US given 'shelter in place' orders. Why we were first hasn't been explained, but it's likely because of the amount of economic power in an area where Google, Apple, and Facebook employees live on the same street.

Since the Coronavirus pandemic took full effect, Bitcoin crashed down to the low $5000 and spent over a week floating around this zone.

Stocks performed the same, causing many to point out once again how the two markets often mirror each other, even though there's major fundamental differences.

Those differences may allow for a much easier recovery, as stocks continue to suffer, Bitcoin broke out with a 20% surge, peaking around $6900.

Read more on this in the Forbes article "Bitcoin Rally Leaves Stocks In The Dust".

With the initial shock of everything wearing off,  I wanted to take a deep breath, followed by a rational look at where things stand, and where they could go next.

No Safe Haven In a Panic...

While some have used the last couple weeks as evidence against claims Bitcoin was a safe-haven asset, I have to say - I never thought we were talking about situations like this.

Rather, a safe haven for crashes like the one we saw in 2008, where bankers and Wall St abused the traditional finance system, and the public would then be asked to trust that the people who just destroyed the system would now turn around and fix it.

That situation (which describes most historical economic crashes) makes Bitcoin look pretty damn appealing, and I think we will see a lot of people turning to it the next time it happens.

But scare like a virus, with people panicking and seeking cash fast - they're going sell whatever gets them that cash.

I'm not sure why anyone ever thought that wouldn't include crypto.

I'll take it one step further and say - an asset immune to panic selling triggered by global pandemic does not exist.

Crypto May Be First To Recover...

When something major happens that causes investors to panic sell, it's no surprise both crypto and stocks take a hit.

But crashing together doesn't mean they need to recover together.

Recovery is a very different game for each. The stock market wants to hear about company profits, see earnings reports, and hear statements from CEO's about their path forward.

The decentralized nature of cryptocurrency means the traders and investors alone can drive recovery - we're not waiting to hear from any person or company. 

There's no "CEO Of Crypto Inc" putting out statements for the media to pick apart - for or better or worse, we're on our own.

Currently it seems to be for the better, but keep in mind this is a double edged sword - for example, we'll never see a bailout for the crypto industry, or a coin considered "too big to fail" and government stepping in to save it.

What To Watch For Next...

What happens in the US will determine what happens next in the market.

The panic has is gone, but people are still on edge - there's two very different possibilities.

The best case scenario - we continue as-is for the next few months.  Cases of the virus popping up at a pace they can be dealt with, eventually ending with a vaccine or some other viable treatment that officially puts an end to the whole thing.

The worst case scenario - as you know people can carry the virus for weeks without feeling ill, and during this time they can spread it to others. It was just a week ago where people were still gathering in large crowds - Las Vegas for example just went dark days ago.

There could be a massive number of people infected who currently don't know it. Not saying there is, just saying it's possible.

So we now enter a phase that could last for 1 to 2 weeks, of waiting to find out which scenario is real.

Author: Ross Davis
E-Mail: Twitter:@RossFM

San Francisco News Desk

Bitcoin Isn't The Only Coin That Will Be 'Halving' In 2020 - Here's What You Should Be Ready For...

Bitcoin halving
We're going to assume you already know what halving is, and have seen at least some the hype surrounding the upcoming halving of BTC.

For the few who haven't, the shortest explanation we can give so you know the basics is:  As you know, mining a cryptocurrency will earn you some of that cryptocurrency.  Halving is when miners pay gets cut in half. Token creators plan this from day one to occur in the future as a way to keep the coin scarce when millions of their coins total supply has already been released. The idea is, the more coins that are already floating around the market, the harder it should be to earn free coins by mining.

There's a several reasons why people believe this will trigger an increase in a coin's price.

First, it has in the past.  In the case of Bitcoin, halving has happened before, and each time was followed by a price increase.  When Bitcoin launched, 50 BTC per block was given out to miners. Halving has occurred every 4 years since then, and the next halving will bring it down from 12.5 to 6.25 BTC.

Second, many miners sell immediately. Especially the large mining operations, these are big companies with investors who want to see quarterly profits like any other company. They tend to immediately sell the coins they mine. But halving has already caused some to sell less and HODL more as they became harder to get. More coins off the market increases the value of those on it.

Lastly, simply the concept of scarcity. The market knowing less coins are being created every day, means any dilution that may have caused now happens at a rate half of what it was before.

But Bitcoin isn't the only one coming up this year, so we thought it would be worth taking a look at the other potential chances to profit from coins that will be going though the halving process.

The Big One - Bitcoin...

Bitcoin's halving is expected May 12, 2020.  Expect to see prices rise before this, as many people plan to load up their bags weeks/months ahead of this date. What will happen on this date is a mystery, the market is so different than it was the last time, I don't like looking back at anything from 2016 as a way to predict what will happen in 2020.

There's a lot more people in it, but among them is a lot more looking for a quick profit.  Will the halving date simply be when they plan to dump? Or, will they want to horde/HODL their coins believing the value will continue to climb, especially now that it's become more scarce?

Your guess is as good as mine.

Both of the other Bitcoins too...

Everyone has an opinion when it comes to Bitcoin Cash (BCH) and Bitcoin Satoshi Vision (BSV) and the miners are no exception.

Currently, most miners for these coins already work for a loss, that's how you know they're die-hard believers, they're betting it all on the token's value increasing in the future.

Regardless, all you need to know is - both have halvings coming sometime in April 2020.|

Zcash Follows in Bitcoin's footsteps...

Just like BTC, there will only be 21 million coins ever created.

The current reward for miners is also the same - 12.5, and will be reducing to 6.25 ZEC.

The block that will trigger the halving will come sometime in October 2020.

Ethereum Classic...

Not to be confused with ETH, Ethereum Classic (ETC) does basically the same thing, but calls it a tithing. In ETC's case, the mining reward is reduced by 20% every 5 million blocks.

At the time of publishing, they're on block 9,949,107 - block 10,000,000 will bring about the tithing and will hit sometime in 2020.

Dash, but don't get too excited.

Just including this to be complete, but I wouldn't expect a huge price increase here... a slight one perhaps.

Dash decreases mining rewards by 7.14% every 210240 blocks.

It's on block 1,234,495‬ as of publishing this article, with the halving coming on block 1,261,440 - so, very soon.

In Closing...

My strategy (insert standard 'don't blame me, do your own research' disclaimer here) is to watch how BCH and BSV perform in their halvings, since they come first. Then assume Bitcoin will do whatever they do but on an even larger scale, then assume Zcash will react similar to BTC.

In other words, be positioned for the best case scenario, but have those stop-losses ready just in case of the worst.

What's your predictions for the 2020 halvings? Tweet us @TheCryptoPress

Author: Ross Davis
E-Mail: Twitter:@RossFM

San Francisco News Desk

March Crypto Outlook: Will Bitcoin's Role as a Haven Continue?

Contentworks Outlook
Welcome to the March 2020 Crypto Outlook with Contentworks, an agency specialising in content marketing for financial services, crypto and blockchain.

Cryptocurrencies saw mixed outcomes in February. In total, Bitcoin rose by 3% while Ethereum and Ripple gained by 3.15% and 34% respectively. Gains made in the first two weeks of the month were erased. As of writing, Bitcoin, Ethereum, and Ripple are 16%, 24%, and 32% below their monthly highs.

Will the current bear market remain in the coming month?

Crypto price chart
Many traders focused on coronavirus in February. The disease, which originated in China has infected more than 80k people and killed more than 3,000 around the world. The disease has caused global stocks to tank and safe-haven assets like gold and government bonds rise. Many market participants continue to view Bitcoin as a safe haven. In fact, while Bitcoin has risen by more than 3%, the S&P500 has dropped by more than 5%. The MSCI world index also declined by more than 5%. To some, this is a validation of Bitcoin’s role as a safe haven. We will continue watching these turns of events in March.

Political temperatures in the United States are rising. The Democrats have already carried out three primaries. In the first week of March, we will see the so-called Super Tuesday, where most democrats vote for their preferred candidate. Early results show that Bernie Sanders, the Democratic Socialist from Vermont, will be the flagbearer. Many crypto enthusiasts believe that a Sanders’ win would be positive for crypto. First, his socialist policies are disliked by most stock investors. These investors prefer Joe Biden or Mike Bloomberg, who are relatively moderate. Therefore, investors are likely to rush to safe havens if he wins. Second, Sanders has pledged to provide high speed internet across the country. Such action will likely provide a boom for Bitcoin and other cryptocurrencies.

We will continue to watch Ripple in March. We have been watching the currency after its parent company raised $200 million to accelerate its development. In March, we will be following a recent lawsuit that alleged that the company violated securities laws. On Wednesday, Judge Phyllis Hamilton said that the suit will be allowed to move forward. It is still early to predict how the case will go. It is also early to predict its impact on XRP’s price.

In the coming month, we will also focus on Sweden. In February, Riksbank, the country’s central bank announced that it was conducting a pilot project for e-krona. It has partnered with Accenture to achieve this. E-krona will be a digital version of the country’s currency. It will simplify access to cash and help banks save money transporting physical cash. The Chinese central bank is also created a digital version of the yuan. These projects are in reaction to Facebook’s Libra.

In March, we will focus on a few crypto events. Some of these events could be cancelled or postponed because of the virus. Some of the key events we will be watching are: Crypto Assets Conference in Munich, Germany, London Asset Management Summit, and Syncronize Conference in New York.

At Contentworks Agency, our team of financial professionals closely follows market movements for FX, Crypto and other tradable instruments. We are proud to serve some of the biggest crypto and fintech companies in the world by delivering high-impact articles, videos, PR and white papers.

Information Provided via Press Release
Distributed by Global Crypto Press Association Press Release Distribution for industry.

Bitcoin is Best Performing Asset, Period. Beating All Stocks, Gold, Silver....and Everything Else!

Outperforming any stock, gold, silver - and everything else! Bitcoin is the official top performing asset. 

A few reasons include: Miners selling less as they prepare to earn less (aka the halvening), institutional investor money pouring in to the crypto market, and growth as indicated by the amount of newly created wallets.

Video courtesy of CNBC

Don’t Sell Bitcoin (Yet): BTC Bull Run Fueled by “Phantom Money?”

Crypto loans with youhodler
With Bitcoin’s recent price rally to $10,000, cryptocurrency enthusiasts everywhere are buzzing with excitement, looking for a potential repeat of the legendary 2017 bull run. However, an influential crypto whale is saying it’s not time to sell bitcoin just yet as “phantom money” may be the driving force behind this new rally. In the meantime, let’s see how Bitcoin lending platforms can help you reap the benefits of the price jump while protecting your assets for the future. 

Crypto whale “Joe007” says it’s not the right time to sell bitcoin

One of the most well-known cryptocurrency whales in the community goes by the name of Joe007. Regarding the recent Bitcoin price action, Joe008 stated that “you can push the price only so long with fantom money. At some point, people would want to cash out their mad gainz only to find no one on the other side of the market.”

So is it time to sell Bitcoin? Not just yet. At the moment, there is a lack of fiat flowing into crypto markets and that, is a worrisome statistic. Furthermore, looking at the market cap of stablecoin, one will see it’s not the right time to exit the market. 

Don’t sell Bitcoin; look at the stablecoin charts

If we use Tether (USDT) as an example, one will see that a growing USDT market usually signifies an influx of cash entering the market. This is because traders are exiting the market, and putting their Bitcoin into stablecoin to avoid losses from volatility. While there is some amount of fiat flowing into the crypto market, it may not be enough to signify there is substance behind this bull run. That being said, there is still a way to capitalize on this event using crypto lending platforms. 

Don’t sell bitcoin; use it as collateral for crypto loans

For Bitcoin HODLers, they have a growing asset on their hand. It’s tempting to sell bitcoin now and enjoy the new influx of cash but there is another way to do that without having to say “goodbye” to BTC forever. Crypto lending platforms let you use Bitcoin as collateral in exchange for a loan in fiat. That way, HODLers can get cash when they need it but also protect their assets for later use.

Platforms like YouHodler for example offer crypto loans with 90% loan to value (LTV) ratio and fiat options like EUR, USD, and GBP. This Bitcoin lending strategy is a terrific way to get the best of both worlds during a crypto market.

So if you have your finger on the “sell” button right now, perhaps it’s better to wait a minute and see how the market plays out. 

Author: Matt Miller
London News Desk