It’s the first time since August 2017 than someone spent coins from early 2009.
It takes some temerity to stand by a bullish call when a security is looking increasingly bearish. Give Fundstrat’s Tom Lee some credit for sticking by his recently bullish view on bitcoin.
At this writing Wednesday, bitcoin was down more than 8% and barely clinging to the $7,550 level, giving the largest digital currency a market capitalization of $128.83 billion. After surging 35% in April, prompting some traders to opine that $10,000 was coming, bitcoin prices have been slammed this month, stoking speculation of a new bear market.
“I think the chart is pretty scary for folks because bitcoin was $20,000 in December and it’s less than half that now,” said Lee in an interview with CNBC. “But the reason is investors should care about this is, number one, the notion of blockchain as a way to solve trust in the digital world has gained a lot of traction. What investors aren’t connecting is that we can’t necessarily say ‘I believe in the blockchain.’ Bitcoin and cryptocurrencies are essential to how blockchains operate.”
Lee recently said bitcoin could rise to $25,000 as soon as later this year.
Lots Of Challenges
To be fair, Lee is not the only bitcoin bull. In fact, some recent forecasts from other market observers call for the digital currency to rise well into the six figures.
Regardless of the upside call, bullish views on digital currencies currently face myriad challenges. On Wednesday, each of the 30 largest alt-coins by market value finished lower during the U.S. trading session and of those 30, 24 finished with double-digit losses.
“The case I’d make for bitcoin is, number one, the cost of producing and replicating bitcoin today as a store of value is around $8,000 fully loaded so bitcoin is trading around cost,” said Lee. “Gold as another store of value is trading more than twice its extraction cost.”
Lee also highlights the potential for institutional investors to play a significant role in the digital currency market. The strategist said institutional investors are increasingly interested in cryptocurrency as an asset class, but they have not moved into crypto in a big way due to regulatory uncertainty.
“That sort of ultimate allocation into crypto as an asset class is going to be a powerful reason why bitcoin rallies,” said Lee.
Lee stands by the $25,000 forecast for bitcoin.
Bitcoin Price Rallies 13% to Break Through $11,000
Within the last hour Bitcoin (BTC) price pushed through the $11,000 level in a high volume surge which saw the price reach a new 2020 high at $11,394.
At the time of publishing the price has pulled back slightly to the $11,150 range but purchasing volume continues to rise on the 1-hour timeframe. This suggests that the top-ranked digital asset on CoinMarketCap may have another go at the daily high.
Crypto market weekly price chart. Source: Coin360
As reported earlier by Cointelegraph, on-chain activity registered a significant spike in exchange inflow as Bitcoin price rallied above $10,000 and Bloomberg analysts now estimate that Bitcoin price will rise above $12,000 this year.
Ether price (ETH) also surged above its previous high by rallying to $333.52 but at the time of writing the top altcoin has pulled back below $330.
Bitcoin daily price chart. Source: Coin360
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Did Satoshi Nakamoto Just Move 50 Bitcoin?
- 50 Bitcoin that haven’t moved since 2009 were transacted today.
- Some Bitcoin watchers speculate that these coins belong to Satoshi Nakamoto.
- The coins were from Bitcoin mining around a month after the network was created.
BTC from the earliest days of the network moved today. Could Bitcoin creator Satoshi Nakamoto be behind the transaction?
Was Satoshi Behind a Recent Bitcoin Transaction?
A 50 BTC transaction representing a block reward from a month after the Bitcoin network launched moved today.
The coins were awarded for mining block 3,654. Several pundits have naturally associated that early mining activity with pseudonymous Bitcoin inventor Satoshi Nakamoto.
Others Are Unconvinced
The Block’s head of research, Larry Cermak, believes the transaction is unrelated to Satoshi Nakamoto, identifying that there were several early miners on the Bitcoin network.
Blocks believed to have been mined by Satoshi have a particular pattern in their nonces, a cryptographic number that can help identify blocks. According to that pattern, these Bitcoin do not appear to have originated from Satoshi.
Another analyst noted that the transaction marks the first time that early 2009-origin Bitcoin has moved since August of 2017.
Nevertheless, on-chain sleuths will closely watch the path of the coins as the transaction was undoubtedly from an early Bitcoin miner and large holder. If these 50 BTC continue to move, then a lot more about this story will be revealed.
Bitcoin price rockets 23% as investors look for a new safe haven. ‘The crypto king is on fire.’
Cryptocurrencies have seen a remarkable resurgence as investors flock to relative safe havens amid a flurry of quantitative easing measures by global central banks.
Central banks including the European Central Bank, Federal Reserve, and the Bank of England have announced asset-purchase schemes in recent days. Bitcoin, a finite cryptocurrency with only 21 million units in existence, has seen a 23% one-day surge. Bitcoin is currently up 21% as of 10.10 a.m. in London (6.10 a.m. ET), per Coindesk.
The cryptocurrency had been down 30% year-to-date amid a sell-off fueled by market uncertainty about the outbreak of coronavirus. However, investors may be looking to digital currencies in the wake of easing measures elsewhere. Other cryptocurrencies like ethereum, XRP, and bitcoin cash all saw major reversals by more than 15% over the same period.
“When it comes to bitcoin, the crypto king is on fire, and we have seen a decent rally,” said Naeem Aslam, chief market analyst at AvaTrade, in a morning note.
“Given the fact that the price has crossed the $6,000 mark — an important level of resistance — the upward momentum is likely to pick up the pace, and if the price crosses the 200-day moving average on a daily time frame, it would be a huge buy signal.”
Volumes at cryptocurrency exchanges have jumped, with Coinbase, Bitstamp, and Bitfinex combined seeing a 19% bump in 24-hour exchange volume, according to data aggregator CryptoCompare.
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