Bitcoin

[Bullitt]

Minor technical break of that 45,000 level today with next real support at 40,000. All those accounts buying on leverage aren't going to like higher interest rates.

Now down 35% from it's peak, but don't worry, "this is normal behavior for crypto." :cheesy:

 

[Bullitt]

GS saying BTC could do a little more than double in five years.

Bitcoin could get to $100,000 if its market share of the “store of value” market were to increase to 50%, estimates Goldman analyst Zach Pandl.

Hitting $100,000 implies Bitcoin would see annualized returns of 17% over the next five years.

https://www.barrons.com/articles/bi...t-it-like-gold-goldman-sachs-says-51641407311

 

[tsptalk]

I've been buying GBTC and ETHE on the way down and it is starting to feel like a bottomless pit.

GBTC is currently at a 20% discount to the price of bitcoin, although it has been at some discount since about last spring.

https://ycharts.com/companies/GBTC/discount_or_premium_to_nav

 

[Bullitt]

"It's an inflation hedge."

 

[Bullitt]

For those watching recent Kazahkstan events.

Kazakhstan had also become in recent months a favored destination of Bitcoin miners who chose to leave China after Beijing’s recent crackdown on crypto assets. According to Cambridge University, it is only second to the U.S. for the amount of energy dedicated to crypto mining. The shutdown of the internet on government orders means that operations will have to cease for now, contributing to the fall in Bitcoin prices Thursday.

https://www.barrons.com/articles/ru...kazakhstan-fuels-markets-concerns-51641467131

 

[Bullitt]

Makes me think most of the buying here is on leverage in futures, GBTC and other trust funds where "owners" don't have their own keys.

The increasing correlation is slowly wiping out the perception that Bitcoin can help diversify risk and act as a hedge against wild swings in other asset classes. It has also been moving inversely to the 10-year Treasury yield, dispelling its characterization as an inflation hedge.

https://www.barrons.com/articles/things-to-know-today-51642068176?mod=hp_LATEST

 

[tsptalk]

Bitcoin Sags in 2022 Under Weight of Stock Selloff and Fed Policy
Crypto markets mirror traditional markets with surge of institutional investors

The Federal Reserve is casting a shadow over cryptocurrencies.

Like stocks, cryptocurrencies have extended a selloff to start the year because of expectations that the central bank will raise interest rates as early as March.

Bitcoin, the largest cryptocurrency, is down 8.7% year to date, according to CoinDesk, and the second-largest, ether, is down 14%.

https://www.wsj.com/articles/bitcoi...nmm1ieqpomy&reflink=desktopwebshare_permalink

 

[tsptalk]

The elites hate bitcoin...


IMF urges El Salvador to drop Bitcoin as legal tender

The International Monetary Fund wants El Salvador to drop the highly volatile cryptocurrency Bitcoin as legal tender and strictly regulate the electronic wallet the government has pushed adoption of across the country

https://abcnews.go.com/Internationa...l-salvador-drop-bitcoin-legal-tender-82468694

 

[Bullitt]

For insights into what real money (non-Robinhood) is doing with crypto, check out MicroStrategy earnings. Before the bell they disclosed most recently buying 660 Bitcoins for $25 million in cash, paying an average price of $37,865.

 

[Bullitt]

MicroStrategy really piled in at the top, but their cost basis is still decent. Below from yesterday's earnings.

We raised approximately $596 million in capital through the sale of Class A common shares as part of our at-the-market offering during the quarter. We used the net proceeds from this offering to purchase an additional 10,349 Bitcoins at an average price of $57,113 per Bitcoin, net of fees and expenses.

As of December 31, 2021, MicroStrategy own 124,391 Bitcoins that we acquired for a total of $3.75 billion or $30,159 per Bitcoin, net of fees and expenses.

 

[tsptalk]

Signs of life from bitcoin as it is back over $42K, but it is currently hitting the 50-day EMA.

 

[tsptalk]

Now that everyone hates bitcoin again, it's starting to make its move. Back above the 50-day EMA again for the first time since November.

 

[tsptalk]

Is this a bull flag?

 

[tsptalk]

The case for bitcoin as ‘digital gold’ is falling apart

Bitcoin fell to a two-week low Tuesday after Russia ordered troops into two separatist regions in eastern Ukraine.

Geopolitical tensions and climbing inflation are among the key factors weighing down on bitcoin’s price.

That’s led analysts to question whether its status as a form of “digital gold” still rings true.

https://www.cnbc.com/2022/02/23/the-case-for-bitcoin-as-digital-gold-is-falling-apart.html

 

[bmneveu]

It certainly doesn't act like gold. It seems to move more in line with the stock market (but with more volatility) than it should. I think it's called "beta", the measurement that tells us how volatile a particular stock is compared to the overall stock market. I wonder if there is a "beta" that compares bitcoin to the stock market...

 

[Bullitt]

Now that regulators have shown they can control the on and off ramps, "crypto" is showing that it's about as useful as a box of baseball cards from the wax packs era. If someone sends you 1 bitcoin you can't pay your mortgage with it until you convert it to fiat ($USD). As those truckers are finding out in Canada, if those accounts that convert to fiat are frozen, it's worthless.

 

[tsptalk]

Russia's Ministry Of Finance Submits Bitcoin Bill Proposal

Russia’s Ministry of Finance has submitted a draft bill on Bitcoin regulation in the country, weeks after the government approved the concept of creating legislation specifically for cryptocurrencies.

“The use of digital currencies as a means of payment on the territory of the Russian Federation will continue to be prohibited,” the Ministry of Finance said in a statement Monday.

“Under the proposed regulation, digital currencies are considered solely as an investment vehicle.”

https://www.zerohedge.com/crypto/russias-ministry-finance-submits-bitcoin-bill-proposal

 

[bmneveu]

So they are prohibiting their citizens from using it as a currency, but you better believe the government and oligarchs will be using it when they feel these sanctions hit.

 

[tsptalk]

Another try for bitcoin near 45,000.

 

[bmneveu]

Nice find with that moving average. Is that the 200?