Bitcoin Price Prediction 2018: Can cryptocurrency hit $50,000 this year?

Global Stock Markets

Can Bitcoin hit $ 50,000 this year? While most of the cryptocurrencies are much below their earlier highs but there are newer and newer predictions coming up for cryptocurrencies. One such prediction is that Bitcoin can rise to as high as $ 50,000 in the calendar year 2018.

A cryptocurrency portfolio manager by the name of Jeet Singh, stated at World Economic Forum in Davos, that the current volatility is completely normal when it comes to the cryptocurrencies space. He also stated that it is normal for cryptocurrencies to fluctuate by 70% to 80%. This is one of the main reasons why the current volatility does not worry him at all. [sm_bitcoin_price]

He compared cryptocurrencies to the current bellwether companies like Microsoft as well as Apple. Initially, their stocks were also pretty volatile. However, as the companies develop their business model, the stocks not only rose but they become much more stable as well.

However, many of the investors are actually currently worried due to the high volatility in cryptocurrencies. According to him, however, long-term investors need not fear the volatility at all. Since they are here to stay for a longer period of time, they would have no problem at all in holding the cryptocurrencies for a longer period of time as well.

He further added that Bitcoin would reach as high as $ 50,000 this year. If indeed that happens, the current price of Bitcoin being around just $ 10,000, that would be a fivefold increase once again.

Whether the portfolio manager is right or wrong, only time would be able to tell. The truth is that currently, many of the investors are worried about putting new money into Bitcoins. Only once they are sure that the volatility would end and the Bitcoin resumes its uptrend you can be sure that most of the investors would actually get ready to invest in this cryptocurrency.

For now, however, most of the investors are keeping away from the cryptocurrency boom. Many of the investors are just holding their holdings patiently in order to find out whether the cryptocurrencies resume their uptrend or not. It is still too uncertain for most of the investors to take a call. On the other hand, institutions are increasing their presence in the cryptocurrencies pace as well which is sure to benefit the cryptocurrencies space and would add value and credibility to the cryptocurrencies in the future as well. This is one of the main reasons why it is not seeing further fall after creating a bottom few weeks back. Also, once the regulatory hurdles are sorted, you can be sure that the value of cryptocurrencies would again more.

Bitcoin prices in 2018 have been marked by volatility which has made bitcoin price prediction in short-term a bit of a challenge, even for the experienced analysts. As at the time of writing, the price of Bitcoin took a dip from 10k to under 8k following news that search engine giants, Google will ban crypto-related ads. So far, 2018 has presented its own surprises though not a dramatic as the rollercoaster we say in 2017.

History generally has a way of repeating itself but bitcoin has a lot of history which makes it an equal challenge predicting which history will be repeated. It takes more than a study of past trends to get predictions spot-on this time and so we ended this article by highlighting certain area expert analysts were looking at.

Analysts, enthusiast, and industry figures have very diverging opinions and bitcoin price predictions for both long and short-term. Optimism is still high in many quarters—reports of a new survey among British financials suggest a wide majority will buy more coins in hope of price resurgence later this year.

Bitcoin Price Continues to Decline as Bears Continue to Reign

Global Stock Markets

Today will prove to be another difficult day for all cryptocurrency markets. The bearish pressure is not relenting by any means, as market makers are intent on keeping the prices down for some time to come. 

With the Bitcoin price now dropping below $8,200, it seems to be a matter of time until the value dips below $8,000 once again. That would certainly trigger an even bigger sell-off in the altcoin department.

It has been documented over the past few months how the Bitcoin price is seemingly incapable of catching a break. No solid positive momentum has been achieved at this stage, and it seems things will not necessarily improve in the near future either. The past three months have seen some attempts at recovering losses, but ultimately seem to result in lower lows for the Bitcoin price.

More specifically, three months ago, the Bitcoin price was hovering near the $12,0000 mark. Ever since that time, it has dipped below $11,000, then $10,000, and even hit $7,200 a few weeks later. While that is still the proverbial bottom as of right now, it remains to be determined if any positive momentum can be generated before the year 2018 comes to a close. The current trend doesn’t look all that promising so far, but things are always subject to change in the world of cryptocurrency.

Over the past 24 hours, the Bitcoin price has lost another 1.95% of its value. This decline pushes the price per BTC below $8,200, and will seemingly result in a price dip below $8,000 by the time the weekend has come to a close. It remains unclear what is causing all of this negative Bitcoin price pressure this year, but it seems evident things will not improve anytime soon.

Even the Bitcoin trading volume is on the decline as of late, which is anything but promising. More specifically, the trading volume has dropped to $8.894bn, which is $2bn below what one would expect to see these days. This seems to indicate the overall demand for the world’s leading cryptocurrency is on the decline, which doesn’t bode well for Bitcoin and any other cryptocurrency on the market these days.

OKEx is still leading the charge in terms of Bitcoin trading volume, which is a bit surprising. Its USDT pair remains extremely popular and is well ahead of Bitfinex’s USD pair and the USDT market on Binance. All three platforms generate over $215m in 24-hour volume, which is rather interesting to keep an eye on. With Huobi and OKEx’s TRUE pair in the five as well, there is only one fiat currency market to speak of. That can prove to be problematic for the Bitcoin price moving forward.

Whether or not the Bitcoin price can recover from this latest setback, remains to be determined. Anything is possible in the world of cryptocurrency these days, even though the current trend looks anything but promising. Then again, the weekend is usually very different from the rest of the week when it comes to cryptocurrency trading, and this weekend may prove to be somewhat interesting in this regard.

Ethereum May Take Over Bitcoin As the Most Popular Cryptocurrency

Global Stock Markets

Roger Ver, aka Bitcoin Jesus, predicts that Ethereum will soon take over from Bitcoin as the most valuable cryptocurrency in the world.

Roger Ver, a cryptocurrency advocate who has been actively involved in the cryptoverse since 2011, believes that cryptocurrencies that are more technologically secure like Bitcoin Cash, and, Ethereum will overtake Bitcoin in time.

While this cryptocurrencies will have a massive increase in value, the price of Bitcoin will only see modest gains, according to Ver. This will lead to what analysts refer to as “The Flippening”. This marks a time when Bitcoin will no longer be the leading cryptocurrency with the highest market capitalization.

During an interview with The Independent, Ver said:

“The Flippening is imminent, and I see it happening. Before the end of 2020, I see Bitcoin Cash overtaking Bitcoin, and before the end of this year, Ethereum will do the same.”

Ver talked about the obvious issues with the Bitcoin technology citing that it was unable to scale through the problem of slow transaction speed and high transaction fees that came along with increased popularity.

Is a Take Over Possible?

Over 1,500 cryptocurrencies have been created since Bitcoin was launched in 2009. Each one was created in a bid to improve on Bitcoin’s flaws.

Within the last 12 months, the price of Bitcoin has gone up from $1,700 to about $9,360 which reflects a 450% increase in price. Ether had a 1,000% increase in price with its current value at $764. Bitcoin Cash, on the other hand, hiked from $500 in August last year to $1,655.

Even if the price of Ether is still far from the price of Bitcoin, Ether is in circulation five-times more than Bitcoin. The market capitalization of Ethereum is just about half of the market cap for Bitcoin.

Despite Ver’s opinion, some other experts in the market believe that Bitcoin cannot lose its position because it is already well established in the industry.

Although Ver said that there is a chance that Bitcoin will continue to dominate the market, he doesn’t believe it is likely.

Cryptocurrencies are failing as a form of money

European Share Markets

Cryptocurrencies are failing as a form of money and have shown classic signs of being a financial bubble, requiring regulators to protect consumers and stop their use for illegal activities, Bank of England Governor Mark Carney said on Friday. 

Cryptocurrencies are failing as a form of money and have shown classic signs of being a financial bubble, requiring regulators to protect consumers and stop their use for illegal activities, Bank of England Governor Mark Carney said on Friday.

Carney, who heads the Financial Stability Board, a global financial rule-making body, expressed doubts about cryptocurrencies earlier this year and his speech for a Scottish student economics conference expanded on these.

For now, they posed little financial stability risk to Britain as whole, due mostly to major banks’ limited involvement with them.

But for individual investors, they were a major risk.

Bitcoin prices have fallen sharply since December 2017. 

However, the distributed-ledger technology underlying cryptocurrencies did have potential for improving cash settlement in the banking system and other asset transactions, he added.

Millennials Love Bitcoin And Hate Stocks

Global Stock Markets

Financial pundits the world over, more comfortable in dealing in tangible commodities and assets, have described the cryptocurrency scene as too volatile to risk long-term investment. 

Whether you agree with them or not, it’s hard not to see why they should reach such a conclusion.

Almost all of the large financial and commercial institutions have taken a pass when it comes to utilising Bitcoin or its competitors in anything but the most experimental test markets.

So much so that when Banco Santander recently announced its roll-out of an altcoin powered money transfer application, it was big news.

Meanwhile, the digital currency market has had more ups and downs than a rollercoaster, from immense highs at the end of 2017 to more than a two-thirds drop in value over the following six or seven weeks, resulting in a loss of $100 billion in real terms. It’s little wonder those whose job is essentially predicting the future are a little cagey.

However, if market experts are put off by cryptocurrencies, some millennials are taking quite the opposite view, finding investment in altcoins considerably less intimidating than playing the stocks and shares game.


But despite the unpredictable nature of cryptocurrencies, some millennials find investing in it less intimidating than putting money in the stock market or other traditional investments.

Those aged between 18 and 39 seem less willing to take a chance with traditional investment opportunities, with many of them being put off by the financial crisis of 2008, which saw a global stock market loss of $14 trillion.

Clearly, if you were growing up or entering adulthood during those dark days, as most millennials were, the memories of the market crash will have left certain psychological scars, whether you’re aware of them or not.

Bitcoin and its ilk might be more volatile, at the moment, but it’s also more open. Indeed, the very foundation upon which altcoins are based – the blockchain – is all about transparency.

There is no insider dealing: transactions are there on the blockchain for all to see – if they have a will to. And, as for rises and drops, compared to the $14 trillion lost by the traditional markets in ‘08, $100 billion is suddenly chicken feed.

Besides, with bankers, investment firms and hedge fund managers out of the equation (for the time being, at least) many see digital finance as leaving them in control of their own money.

Bitcoin slides further, headed for worst week since 2013

Global Stock Markets

THE SUDDEN plunge of bitcoin has continued as the cryptocurrency’s value dropped to just $8,369 (£5,870) after it plunged by more than 17 per cent in 24 hours.

The online currency has so far seen a turbulent 2018, with its value continuing to all after it reached an all time high of nearly $20,000 (£14,000) in December last year.

Since the turn of the year Bitcoin’s value has decreased by more than 50 per cent.

Throughout 2017 Bitcoin saw its price rise by more than 1,500 per cent from the beginning of the year after the value of a single Bitcoin has soared from $954 (£668) in January.

The decline over the past month comes after experts warned that the digital currency was in a bubble that would eventually crash.

Despite the trend in the collapse of the value of the original online currency, there are some who believe the current drop is due to confusion surrounding the Indian Government’s stance on cryptocurrencies.

 

India is not the only country to have announced its intentions to crackdown on the use of the digital money.

In January South Korea introduced a raft of measures aimed at regulating Bitcoin and similar currencies such as Ripple and Ethereal.

A ban on anonymous trading was implemented by the Asian power in a bid to crack down on all possible criminal activities the secret nature of trading Bitcoin allowed.

The taxman is after your bitcoin profits — though the law is a grey area

Australian Stock Markets

Regulators are playing catch-up when it comes to the brave new evolving world of cryptocurrencies.

The Australian Taxation Office believes bitcoin, ripple, ethereum and hundreds of other digital currencies are "a form of property".

What bitcoin says about us

"Any financial gains made from the selling of bitcoin will generally be subject to capital gains tax (CGT) and must be reported to the ATO," a spokesperson from the tax office said.

But this remains a grey area that is yet to be tested in a court of law.

Until that happens, the ATO has advised cryptocurrency owners to keep good records of their intentions, transactions, and who received payments.

It might be wise to heed that advice, given the tax office has warned it will be looking out for tell-tale signs of crypto tax dodgers living beyond their means.

"The ATO is here to help those that are genuinely trying to meet their tax obligations," the spokesperson said.

This includes using "a range of existing powers" which are used to address "unexplained wealth and conspicuous consumption that may arise through profits derived from cryptocurrency investment".
Beware crypto taxes
 

One of Australia's leading tax experts has warned that many investors mistakenly think their cryptocurrency profits are tax-free.

This means the gains they make from investing in cryptocurrencies may be taxed fully as income — rather than capital gains — so they will miss out on the tax discount after holding the currencies for more than a year.

Some tax experts believe at least 90 per cent of people who claim to be "cryptocurrency investors" are really speculators, even if they have held the asset for more than 12 months.

The crypto revolutionOnce the preserve of criminals, cryptocurrencies have become the vehicle of choice for speculators and dissidents.

Their rise in popularity has largely been due to people's "fear of missing out" (when one sees their friends and neighbours investing and making huge gains).

Another reason is their mistrust and hostility towards the traditional banking system.

So having the option of using a currency that is not affected by the government is a good thing."Too much of a good thing it seems for governments to remain on the sidelines.

Bitcoin To Hit $50,000

Global Stock Markets

It has been predicted that Bitcoin could reach prices as high as $50,000 this year, although it will be as volatile as ever.

These predictions have been made by Jeet Singh, who is a cryptocurrency portfolio manager, who has also said that it is common for virtual currencies to fluctuate by as much as 70 or 80 percent. He compared Bitcoin to technology giants.

He say, If you look at Microsoft or Apple, when they went public, their stocks were very volatile because the market wasn’t mature.

This volatility might have worried new traders, but experienced traders are likely to be much less concerned, as they are used to larger fluctuations.

This does mean though that as Bitcoin becomes more mainstream, and even inexperienced traders get a better understanding of cryptocurrencies as a whole, this volatility is likely to calm down, which has led him to make huge predictions

The fact that Bitcoin is so volatile has meant that it has received a lot of criticism, and even that it is a bubble that will soon burst.

Stephen Poloz, the boss of Bank of Canada, has previously claimed that virtual currencies would never be used as a real currency, and have even branded it as a form of gambling, and not a legitimate investment.

Ripple Good Company Bad Crypto - Part I

FM Wealth Management News Letter

For the last few months we have had a barrage of comments and questions regarding the Crypto Currency phenomenon.  Since the beginning of the year many have turned their attention to Ripple (XRP).  We have seen the articles by other analysts and we simply don’t agree.

Before we get started, we want to make sure that you completely understand that this Newsletter is not focusing Ripple the company. As a company Ripple has developed innovative solutions for the transfer of money and has signed deals with many major banks. We believe that RippleNet is likely become a replacement for the SWIFT payment system, which is over 40 years old, slow, and expensive in comparison.

In this Newsletter we will be talking about the Ripple token (XRP) which we will argue has practically no function at this moment, apart from letting speculators bet on Ripple’s success (which is making Ripple’s creators very rich).

In the Beginning
At its inception Ripple created 100 billion XRP tokens of which 20 percent were retained by the creators, and the rest was retained by Ripple labs to use (55 billionn tokens are held in escrow) and distribute to market makers in order to provide liquidity.

The mistake that investors are makind is that XRP is related to equity shares, but beware the tokens themselves do not give holders any rights to ownership. In addition to that, the Ripple Token is barely used in any of Ripple’s systems. So therefore there is a risk that XRP could be completely useless;
So we want you to consider that Ripple the company could actually continue successfully even if all the tokens were taken out of circulation and “destroyed”.

Realistically we don’t believe that’s not going to happen. The continued increase of XRP has made the creators very wealthy and we must admit that they have played their game beautifully. They are currently sitting on billions of dollars worth of  a potentially useless token and at the same time earning from Ripple’s revenue streams (which is not reliant on XRP). The cherry on the cake of course is that they are not regulated by the SEC, and can be as opaque with the public as they see fit.

Ripple Payment Systems
Currently Ripple has three main products, only one of which uses XRP the token. This is a quick run down, with quotes from the Ripple site itself.

XCurrent is Ripple’s enterprise software solution and is the backbone of Ripple’s business.  This software or Block-Chain essentially enables banks to instantly make and settle cross-border payments with end-to-end tracking.  American Express and Santander Bank recently announced they would use this system for Cross-Border Business-to-Business Payments. XCurrent has been so successful that it has attracted the interest and support of big banks to the point where over a hundred members are now signed up, but of course XRP is not required or used in this system.

XVia is basically a payment interface for payment providers, corporations, and banks who want to send payments across various networks using a standard interface. The system uses a simple API that requires no software installation and enables users to seamlessly send payments globally with transparency on the payment status and with other information, like invoices, attached.  Here again the Token is not needed or used.

XRapid is for payment providers and other financial institutions who want to minimize liquidity costs while improving their customer experience and yes this system uses XRP tokens. Due to the fact that payments into emerging markets often require pre-funded local currency accounts around the world, liquidity costs are high. This system dramatically lowers the capital requirements for liquidity.
The way it works is that the token acts as a bridge between different fiat currencies and so in theory cheaper than currently available systems and even the xCurrent system as it could eliminate the need for Nostro accounts.

For example I send money from the US to Mexico, a payment provider using XRapid would convert US dollars to XRP over a US exchange, send the XRP to a Mexican exchange through RippleNet, then convert to Mexican Pesos to complete the transaction. All of this would take place in seconds.

So Where is the Problem
Let’s start with the fact that there are many unanswered questions while at the same time very little information is out there on the mechanics.  Unlike the detailed twenty pages dedicated to the processes involved in XCurrent, XRapid has very little info on the Ripple website; it simply links to the page below with a blurb about liquidity.

South Korea to ban cryptocurrency traders from using anonymous bank accounts

Asian Stock Markets

South Korea will ban the use of anonymous bank accounts in cryptocurrency trading from Jan. 30, regulators said on Tuesday in a widely telegraphed move designed to stop virtual coins from being used for money laundering and other crimes. 

The measure comes on top of stepped up efforts by Seoul to temper South Koreans’ obsession with cryptocurrencies. Everyone from housewives to college students and office workers have rushed to trade the market despite warnings from global policymakers about investing in an asset that lacks broad regulatory oversight.

The bitcoin price in South Korea extended loss following the latest regulatory announcement, down 3.34 percent at $12,699 as of 0409 GMT, according to Bithumb, the country’s second-largest virtual currency exchange.

Bitcoin BTC=BTSP slumped nearly 20 percent last week to a four-week low on the Luxembourg-based Bitstamp exchange, pressured by worries over a possible ban on trading the virtual asset in South Korean exchanges. In Tuesday afternoon trade, it was up 5.4 percent at $10,925.

Policy makers around the world are calling for tougher, coordinated regulation of cryptocurrency trading. South Korea’s chief financial regulator last week said the government may consider shutting down domestic virtual currency exchanges.

South Korea’s Presidential office has clarified that an outright ban on trading on the virtual currency exchanges is only one of the steps being considered, and not a measure that has been finalized.
“The government is still discussing whether an outright ban is needed or not, internally,” a government official who declined to be named said after Tuesday’s briefing.

Over the past month, government statements have underscored differences between the Justice Ministry, which has pushed for a more hardline approach, and regulators who have shown a reluctance to enforce an outright ban.

Starting Jan. 30, cryptocurrency traders in South Korea will not be allowed to make deposits into their virtual currency exchange wallets unless the names on their bank accounts matches the account name in cryptocurrency exchanges, Kim Yong-beom, vice chairman of the Financial Services Commission told a news conference in Seoul.

“Everyone knew this was coming, as the government already said they will enforce the real-name system before. Rather, I can see this as a chance to go in, not out. I don’t see any reason to take my money out,” said a local bitcoin investor who only agreed to be identified by his family name Ahn.
The regulator has previously said it will come up with detailed guidelines for local banks to properly identify its clients by their real names in cryptocurrency transactions.

To make deposits into virtual coin wallets, cryptocurrency traders will need to identify themselves with their real names at the exchange and have those matched with information at local banks by Jan. 30.

Bitcoin hits new records, heads for $10,000 as bubble fears grow

European Stock Markets

Bitcoin soared to fresh records Tuesday, putting it on course for $10,000, but the virtual currency's stratospheric rise has fuelled fears of a bubble after a 10-fold increase this year.

The cryptocurrency, launched in 2009 as a bit of encrypted software written by someone using the Japanese-sounding name Satoshi Nakamoto, has had a roller-coaster ride that has taken it from just a few US cents to its current sky-high valuation.

Traded on specialist platform, with no legal exchange rate and no central bank backing it, Bitcoin is monitored and regulated by its community of users, and is used to buy everything from pizza to a pint in a London pub. But it has attracted widespread criticism, from financial industry titans to governments.

JP Morgan Chase boss Jamie Dimon in September slammed the unit as a "fraud" and said he would fire his employees if they were caught trading it, while China has shut down Bitcoin trading platforms and South Korea's prime minister Tuesday voiced fears it could lead the young to get involved in fraudulent crime.

Still, the opposition has not stopped a dizzying surge in bitcoin this year, with its value jumping a 2017 low of $752 in mid-January to a record high above $9,895 Tuesday afternoon. Its value has rise about 45 percent in the past two weeks alone.

Analysts say the popularity has been driven by growing interest from major investors and a decision last month by exchange giant CME Group to launch a futures marketplace for the currency, which has not been listed on a major bourse before.

As its fortunes have improved, retail investors have also rushed to jump on to the Bitcoin bandwagon, although fears of a bubble are growing, having witnessed wild swings in the past.

Transactions happen when heavily encrypted codes are passed across a computer network.

Bitcoin and other virtual currencies use blockchain, which records transactions that are updated in real time on an online ledger and which are maintained by a network of computers.

Hundreds of other digital currencies have been created since its launch, but Bitcoin remains by far the most popular. Its supporters insist it offers an efficient alternative to traditional currencies because it is not subject to the whims of a state that may, for example, devalue its money to boost exports.

Commentators also suggest some are buying it as an alternative bet in times of global economic uncertainty. But critics point to its volatility, an apparent vulnerability to theft and its use in illicit purchases online.

In one of the most high-profile scandals to hit the currency, major Tokyo-based bitcoin exchange MtGox collapsed in 2014 after admitting that 850,000 coins—worth around $480 million at the time—had disappeared from its vaults.

Bitcoin's use on the underground Silk Road website, where users could use it to buy drugs and guns, was also presented as proof it was a bad thing.

Despite concerns, most observers believe it is unlikely to suffer heavy falls soon.

Bubble or breakthrough? Bitcoin keeps central bankers on edge

Global Stock Markets

Central bankers say the success of bitcoin and other cryptocurrencies is just a bubble. 

But it keeps them awake at night because these private currencies threaten their control of the banking system and money supply, which could undermine the monetary policies they use to manage inflation.

With bitcoin smashing through the $8,000 level for the first time this week after a 50 percent climb in eight days, they are also worried they will be blamed if the market crashes.

This is why several central banks are advocating regulations to impose control. Others are even looking at whether to introduce their own digital currency and are testing payment platforms.

The global cryptocurrency market is worth $245 billion which is tiny compared to the trillion dollar plus balance sheets of the Bank of Japan, the U.S. Federal Reserve or the ECB.

These institutions issue yen, U.S. dollars and euros, both by creating physical cash or by crediting banks’ accounts, as is the case with their bond-buying programmes.

Cryptocurrencies, however, are not centralized. They do not pass through regulated banks and traditional payment systems. Instead, they often use blockchain, an online ledger of transactions that is maintained by a network of anonymous computers on the internet.

This has raised concerns about their vulnerability to hackers, as underlined by a score of incidents in recent months, and their use to finance crime.

Cryptocurrencies holders also have a claim on a private, rather than a public entity, which could go bust or stop functioning.

For these reasons, and given their low adoption by retailers, central banks have dismissed cryptocurrencies as risky commodities with no bearing on the real economy.

This Gold Fund Is Joining the Bitcoin Frenzy

Global Stock Markets

The Old Mutual Gold & Silver Fund, which manages $220 million of mostly precious metal equities, is jumping on the bitcoin wagon.
 

The fund started buying in April with a mandate to allocate as much as 5 percent to cryptocurrencies, according to its manager, Ned Naylor-Leyland. The idea is to take profits from bitcoin as it advances to reinvest in gold and silver assets, he said in an interview on Nov. 16.

Bitcoin was explicitly designed to be digital gold, said Naylor-Leyland. “So if you’re going to have a small proportion of a fund in bitcoin, it should be in a gold fund, because that’s exactly the point. It’s about bringing the ownership of disciplined money into the modern world. Bitcoin is paving the way for the reintroduction of gold as global money.”

Bitcoin’s up more than eight times this year to top $8,000 as entrepreneurs in the field say its value lies in proof of concept for a new kind of payment system not reliant on third parties like governments, big banks or credit-card companies. By contrast, gold’s held in a tight range since February, with a short break upward in September as U.S. and North Korea tensions spiraled.

The virtual currency has many backers and detractors. Mike Novogratz, who’s starting a $500 million hedge fund to invest in such assets, said bitcoin will likely end the year at $10,000. Standpoint Research’s Ronnie Moas on Monday raised his 2018 price target for the second time this month, to $14,000 from $11,000. But Goldman Sachs Group Inc. last month said gold wins out over cryptocurrencies when assessed on most of the key characteristics of money.

Bitcoin and blockchain resolve gold’s problems of divisibility, ownership and speed of transmission, said Naylor-Leyland, who’s investing through a Swedish-listed exchange-traded fund. “We’re going to revert to sound money,” he said. “If you imagine sound money and blockchain together, there’s quite an exciting potential outcome.” His fund has about 80 percent in gold and silver equities and most of the rest in physical metal.

Bitcoin traded at about $8,250 as of 1:26 p.m. in Singapore on Thursday, some $120 short of its record on Tuesday. Spot gold was at $1,289 an ounce.

Ethereum, the other cryptocurrency giant

Global Stock Markets

Contracts bound by Ethereum aren't based on trust between buyers and sellers but the software it uses. One difference separates Ethereum and Bitcoin: Ethers are infinite, while Bitcoin has a maximum circulation

Cryptocurrencies have become one of the most popular assets in trading in recent times, but digital currencies are much more than Bitcoin. Ethereum is another of these big virtual exchanges created in the last few years, and is currently known as the second most-valued and used in the world.
Bitcoin and Ethereum share technology in which they are based, the ‘blockchain’, which has the objective of figuring out and verifying the process of cryptocurrencies.

Ethereum is a de-centralised platform which executes intelligent trades: applications that execute exactly what they are programmed to do without possibility of inactivity times, censure or fraud from third parties. However, one key difference separates them: ethers are infinite, while there are a finite number of Bitcoins.

In addition, Ethereum is bound to the development of intelligent contracts. This format consists of a programme which ensures that the terms of the contract are closed based on the previous agreement. These contracts are not based on trust between those that sign them, but the software in charge of completing the contracts. Ethereum stops you from modifying or cancelling the contract and avoids third parties and delays in transactions. All this process can also be done through Bitcoins but it still lacks the software to carry it out. With Ethereum its technology does everything for you.

As with many other digital currencies, Ethereum has become a staple in many brokers’ portfolios. Thanks to the likes of eToro, trading in Ethereum and other digital currencies is secure for all types of traders, which can open a long or short position according to the current price of Ethereum in a matter of seconds.

The value of the cryptocurrency was worth little more than $8 at the start of the year but now passed more than $300, growing more than 3,650%. Knowing which moment is best to invest in Ethereum is difficult, as in other assets, but thanks to eToro, the investor will have the help of a community of more than six million users to learn different investment strategies and even replicate some of the best. As if that wasn’t enough, eToro is offering new clients 100,000 virtual dollars so they can start to invest and test their strategies or other members of the community.

Bitcoin Hurtles Past $8,000

Global Stock Markets

Cryptocurrency’s value is up more than 700 percent this year. Three slumps of more than 25% have all given way to rallies 

Bitcoin’s relentless and volatile rally shows no sign of abating, with the world’s largest cryptocurrency defying growing bubble fears to hit yet another milestone.

Bitcoin rose 4.5 percent to $8,045.45 as of 11:34 a.m. in London after climbing as much as 5.2 percent during Asian hours. It’s been a tumultuous year for the virtual currency, with three separate slumps of more than 25 percent all giving way to subsequent rallies.


Even as many skeptics call the asset a bubble waiting to pop, it’s becoming too big for many on Wall Street to ignore. CME Group Inc., the world’s biggest exchange, will start offering futures trading on bitcoin next month, while senior executives at Goldman Sachs Group Inc. and Citigroup Inc. have said they are researching cryptocurrencies and the blockchain technology that underlies them.

Recent volatility has stemmed from a pickup in people switching to alternative virtual currencies, notably bitcoin cash.

That’s gaining popularity due to lower transaction costs and faster speed.

New cryptocurrency iterations are springing up as disagreements over bitcoin’s design persist and opportunities for making a quick buck prove hard to pass up.

Bitcoin cash advanced 2 percent on Monday to trade at $1,194.88, down from a high of $1, 388 on Nov. 12, Coinmarketcap.com prices show. Bitcoin has advanced more than 700 percent this year and now boasts a market value of more than $130 billion.

What Drives Bitcoin

FM NEWSLETTER

The media has been full of conversation regarding bitcoin bubbles, and crypto-mania, we are looking higher and see $14,000 plus over the next few months provided the September 15th low holds. 

We could even make an argument for extensions to just over $20,000.

We think that before we see those figures, we are looking for an interim top in the $6650-$7250 region. This will gives us an entry point at the $4000-5000 region.
 
We would like to remind you that these are general guidelines, whereas we look for more specific targets in real time as we analyze the market through the day.
 
All this should not be a surprise for those who track sentiment and know that a market can rally while bubble talk fills the news. At the same time, the people everywhere are slowly adopting bitcoin, and new crypto investors are being born every day.
If we are to believe rumors then Amazon could start accepting Bitcoin, and Apple and Google are building crypto payment systems into their browsers. Speculation is building upon expected mass adoption even while the ‘bubble maniacs’ warn.

Who is right? We don’t really care.

We do not try to be participators in sentiment but analyze it objectively, using the FM Wealth Management Wave analysis, with which we measure that sentiment with objective price measures.

So far, this method has kept us on the right side the bitcoin market, while taking profit at key long term targets, so we have funds to benefit during those inevitable deep corrections.

What Drives Bitcoin

So Bitcoin is worth over $6500? Yes, that was the price traders are bidding for Bitcoin at the time this article was written.

Fundamental oriented stock traders tend to use ratios like Price to Book, Price to Sales Price to Earnings or Price to Earnings to value stocks. If you attempt to apply any of the above mentioned methods, you will quickly realize that you are missing values to insert to your formula, because assets, earnings, cash-flow don’t exist. So, basically, you’re out of luck.

But you will argue that Bitcoin is not a security but a currency so what if we analyze it as a currency. Current accounts of sovereigns, balance of payments interest rate differentials are all methods we read about and yet they are all useless here.

Next up to bat would of course be the popular behavioral economics. So we have to ask does bitcoin have ‘utility’, that abstract concept that gives an good or asset a value? This is subjective.

We submit to you that since there is no means by which to value bitcoin, or any other crypto currency, it is possibly the most purely sentiment driven market in existence. While investors may give subjective reasons for its value, there is no valuation model that is widely accepted. There are analysts attempting to do this, but even if accepted, would they work? We don’t think so.

While there is currently no objective means of valuing crypto currencies, there are no shortage people calling for bubble bursts and of course claims that the crypto mania is akin to the tulip mania of 1636-1637. Furthermore there is no shortage of of analysts saying that bitcoin will one day reach astronomical values. John MacAfee claims it will reach US$500,000 or he’ll make a spectacle of himself on TV. Yet he uses subjective arguments to make his claims.

How is it possible for one to trade something purely sentiment driven, with no means to valuation? FM Wealth Management wave analysis, coupled with our Fibonacci method, is proving reliable in determining price ranges, targets and supports for sentiment driven markets.
We start by looking at the history of bitcoin and its boom and bust cycles. We’ve ‘color coded’ past corrections with red, signifying 80%+ price corrections. Orange signifies 50-79% corrections, and yellow are corrections that are 25-49%.

 
If history is a guide, those people calling for Bitcoin to reach six or even seven figures in the future must expect brutal corrections. In fact the corrections in the Bitcoin market makes a stock market correction look like a walk in the park. On the other side, those calling for the bitcoin bubble to burst should not make the assumption that even if bitcoin gets a 90% haircut it is the beginning of its demise.

Booms and busts cycles equity markets are normal, but those in crypto can be extremely volatile, and you should expect it to happen again. The real question is when? The retail investor would do well to avoid these large drops, which can sometimes be prolonged. Likewise, they would do well to take profit at times of high risk to lock in gains.

Accelerated Pace

In our opinion we would characterize the crypto market as operating on an accelerated time scale. Using our analysis method can work quite well through all time frames, crypto simply moves much faster than any other market.

So lets try to put the speed of this market in context, Coinbase founder, Fred Ehrsam, gave us an interesting perspective.  In a recent interview he was asked whether cryptos were in a bubble, to which he responded, “I have seen several boom and bust cycles in only his seven years in the business.”

Bruce got his feet wet trading Ethereum very early in its history. Within months of our first trade in early 2016 it was three multiples higher, but in December 2016, it sank 60% in a six-month bear market. Bruce exited the positions at the time after it broke bull market support level. We re-entered the market at the $7 to $10 dollar region after trading patterns presented a new impulsive structure. It is now hovering around $300.

Through the lens of the FM Wealth Management analysis system we call the current rally under way in Ether the third wave, based upon our Fibonacci based method. By applying this method we derived the targets as shown in 1 in Fig. 1.

Fig. 1 chart of Ethereum waves 1, 2, and 3.

If we compare the third wave in Ethereum, (which is still in progress) to the great bull run of the stock market. Essentially that means that we are comparing 84 years in the S&P500 to just over six months in Ether. We can see from the above graphic that in that six months, Ether has outperformed the S&P by many fold. This gives further evidence to the accelerated return in time, but one must realize that also means the ‘busts’ come with similar acceleration (can anyone remember the one about roses and thorns).