Bitcoin’s next breakout may have nothing to do with stock prices rising 0 votes 18 views
Wall Street’s first analyst to cover bitcoin is debunking a popular bitcoin investment strategy.
According to DataTrek Research co-founder Nick Colas, a vast number of investors erroneously believe that if the stock market rallies, so will bitcoin.
His finding is based on correlation analysis that goes back to the beginning of last year.
“Bitcoin doesn’t necessarily go along for the ride,” Colas said Wednesday on CNBC’s ” Trading Nation .
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Bitcoin prices and stocks may not rise in tandem, but he did detect one clear trend that could be useful for investors.
“During the recent market drawdown in the early part of February, the correlation was really high. As stocks went down, bitcoin went down,” Colas said.
“Bitcoin faded just like a stock.
However, as stocks began to rebound that correlation fell apart.”
Colas, who owns a quarter of one bitcoin (worth about $2,700), contends investors may be better served by using a highly accessible strategy that relies only on an internet connection.
“The precursor for opening a wallet for many people is just googling the term ‘bitcoin,’ ‘how to buy a bitcoin wallet,’ ‘how to buy a bitcoin’ and so forth. So, as bitcoin searches go up, it’s a precursor to bitcoin prices appreciating as well,” he said.
The correlation was particularly significant between Thanksgiving and Dec. 17, when bitcoin was surging to its $19,843 record. Since then, the emerging asset has plunged 45 percent and is now bouncing along the $10,000 level.
Bitcoin’s next catalyst
For bitcoin to stage another breakout, Colas says it would take a major announcement from a retailer such as Amazon about using it for payment. Right now, price volatility and underdeveloped technology is a roadblock.
Even though he doesn’t see a near-term surge, he is far from bearish.
His 2018 average price for bitcoin is $14,000 — noting that there is a fair amount of crossover between people who own bitcoin and stocks.
“It’s such a polar discussion with people. We have clients who love it [bitcoin], and clients who hate it. And, there’s really nobody in the middle,” Colas said. “Every day it doesn’t go to zero is another day it lives. And, every day above ground is a good one.
That applies for people and bitcoin.” References posted 1 hour ago by Rishabh Rawat Promote This Blog Your comment on this post: Email me at this address if a comment is added after mine: Email me if a comment is added after mine Privacy: Your email address will only be used for sending these notifications. Anti-spam verification: To avoid this verification in future, please log in or register . Related Blogs Crypto price prediction: Could Ripple, Bitcoin and Ethereum return to previous high? CRYPTOCURRENCIES such as Bitcoin, Ripple and Ethereum are all in the green now after a turbulent start to the year.
But could all three top tokens return to their previous record highs? Here are the latest price predictions.
Bitcoin had a good weekend after a poor start to 2018, dropping to under $6,000 at the start of February.
As of February 20, CoinDesk’s Bitcoin Price Index (BPI) highlights a peak up to $ 11,279.18 (£8,068.54) at the time of writing – the first time the currency has broken through the $11,000 mark since January 29.
Ethereum is up at $949.19 with Ripple up 0.
73 percent at $1.15. While LiteCoin Cash, a Litecoin fork that occurred on Sunday night, is currently $ 7.33 (a rise of some 141 percent).
The total market cap for all cryptocurrencies stands at $484,989,000,000.
The rises come after a damaging month for cryptocurrencies as a whole. After peaking at about $834billion on January 7, the market plunged an eye-watering 66 percent, wiping out some $553billion, according to CoinMarketCap.
But with Bitcoin, Ripple and Ethereum all back in the green today, many Crypto experts are confident that the market can reach new heights this year.
Thomas Glucksmann of GateCoin told CNBC: “Increasing regulatory recognition of cryptocurrency exchanges, the entrance of institutional capital and major technology developments will contribute to the market’s rebound and push cryptocurrency prices to all new highs this year.
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He added bitcoin, the biggest and best-known cryptocurrency, could be “pushing $50,000 by December”.
Jamie Burke, CEO at Outlier Ventures, is bullish about the cryptocurrency market, insisting it has the potential to reach $1trillion.
He told CNBC: “We believe after February the market will likely go on a bull run comparative if not greater than last year potentially reaching the trillion-dollar mark before a proper crypto winter sets in where the market becomes more focused on proper market fundamentals.”
And Panos Mourdoukoutas, writing for Forbes, suggested that after “ being in a deep correction for a few weeks, Bitcoin, Ethereum, Ripple, and Litecoin have been coming back nicely over the last week, gaining 19.
87%, 10.48%, 30.57%, and 53.90% respectively”.
He added the crypto turnaround after the recent crash comes as equity markets rebounded from the sell-off early in the month.
And he also wrote the cryptocurrency “technicals” remain strong, saying “83 cryptocurrencies [are] advancing and only 17 declining among the top 100 listed currencies.”
Dennis de Jong, managing director of UFX, says he believes cryptocurrencies remain strong and will not plummet for good in 2018.
He told Express.
co.uk: “It may not capture the headlines like the volatility of bitcoin has in recent months, but there have been considerable advances in the underlying technology of the blockchain.
“Many industries are already live with, or in the process of testing, blockchain use cases that have potentially huge knock-ons for data management and security advancements.
“The relationship between crypto usage and investment in the space underpins bitcoin’s value to an extent, and for this reason I can’t see it going anywhere soon.
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But as central banks attempt to kickstart regulation – Citibank India being the latest financial authority this week to ban cryptocurrency payments on debit or credit card – some investors believe the market slump could be an indicator of an overall crash in all financial markets.
Bleakley Financial Group CIO Peter Boockvar said: “If bitcoin resumes its decline here, I think that equity investors should pay attention.” 0 votes Most digital currencies are unlikely to survive according to Goldman Sachs investment research
The fall in cryptocurrencies that wiped nearly $500 billion of market value over the past month could get a lot worse, according to Goldman Sachs’s global head of investment research.
Most digital currencies are unlikely to survive in their current form, and investors should prepare for coins to lose all their value as they’re replaced by a small set of future competitors, Goldman’s Steve Strongin said in a report dated 5th February. While he didn’t posit a timeframe for losses in existing coins, he said recent price swings indicated a bubble and that the tendency for different tokens to move in lockstep wasn’t rational for a “few-winners-take-most” market.
“The high correlation between the different cryptocurrencies worries me,” Strongin said.
“Because of the lack of intrinsic value, the currencies that don’t survive will most likely trade to zero.”
Today’s digital coins lack long-term staying power because of slow transaction times, security challenges and high maintenance costs, according to Strongin. He said the introduction of regulated Bitcoin futures hasn’t addressed those concerns and he dismissed the idea of a first-mover advantage — noting that few of Internet bubble’s high fliers survived after the late 1990s.
“Are any of today’s cryptocurrencies going to be an Amazon or a Google, or will they end up like many of the now-defunct search engines? Just because we are in a speculative bubble does not mean current prices can’t increase for a handful of survivors,” Strongin said. “At the same time, it probably does mean that most, if not all, will never see their recent peaks again.”
Strongin was more upbeat about the blockchain technology that underlies digital currencies, saying it could help improve financial ledgers.
But even there he sounded a note of caution, arguing that current technology doesn’t yet offer the speed required for market transactions. 0 votes Law to Legalize Crypto Mining Introduced in Armenia
Armenia may soon follow in the footsteps of countries like Belarus in regards to crypto regulation. Newly proposed legislation provides the basis for legalizing and regulating cryptocurrency mining in the country. Tax exemptions and other incentives will be offered to miners. If the draft law is adopted, businesses will be able to operate mining facilities without any licensing. This will indirectly legalize cryptocurrency transactions. Time to Move with the Times
The bill to regulate the mining of cryptocurrencies like bitcoin has been introduced in the parliament in Yerevan. If Armenian lawmakers vote for the new legislation, their country will become the second member-state of the Eurasian Economic Union (EAEU) to demonstrate positive attitude towards the crypto sector.
Belarus has already taken steps in that direction legalizing cryptocurrencies, regulating ICOs, and exempting miners from taxation.
The proposed amendments are quite liberal. Every private individual and corporate entity in Armenia would be allowed to set up facilities and start mining, Eurasia Daily reports. No special permits or licenses will be required.
The draft exempts miners from taxation until December 31, 2023, and that incentive is retroactive. Mining companies may enjoy other benefits like preferential customs tariffs.
Behind the initiative to legalize cryptocurrency mining is Edmon Marukyan, member of the parliamentary minority, who says he was motivated by “the need to move with the times”. Despite his affiliation with the opposition, Marukyan may succeed in pushing through his Law “On Digital Technologies”, as there have been some positive developments in the same direction throughout the whole region.
Armenia’s neighbor Georgia is a real pioneer in crypto legalization among countries in the South Caucasus. The implementation of blockchain technologies there has been expanding for several years, in both the private and the public sector. The first bitcoin mining farm in Transcaucasia was set up in Georgia, and since 2016 the country’s land register has been maintained on a blockchain. Eurasian Winds of Changes
The Armenian government has its doubts about the expediency of crypto legalization and Yerevan has already shared its concerns. The Central Bank came out with a statement warning against the use of bitcoin before it is regulated. “According to the law, virtual currencies are not electronic money”, the bank said three years ago. It promised to study the “emission and circulation” of cryptos and user protection practices. The ubiquitous “absence of clear international approach” was also mentioned.
According to experts quoted by Eurasia Daily , Armenian authorities are wary because they realize that current control mechanisms are insufficient. The weakness of government institutions and the proximity to conflict zones increase the risk of cryptocurrencies being used for illicit activities like money laundering and terrorism financing.
It seems, however, that Armenia is shaking off its cryptophobia. Recently, a government think-tank made proposals to place different state registers on a blockchain.
Plans to create a free economic zone for startups developing distributed ledger applications were announced in January.
Winds of change are blowing in Eurasia and warming up the crypto climate across the Eurasian Economic Union. The leader in cryptocurrency adoption, Belarus, is preparing to legalize the whole spectrum of bitcoin-related activities. The presidential decree about cryptos, ICOs and smart contracts will come into force by the end of March.
In Russia, the Finance Ministry has already published the draft law “On Digital Financial Assets”.
Despite its reservations towards cryptocurrencies, the Central Bank has signaled it would not mind the legalization of crypto mining and coin offerings. Russian Prime Minister Dmitry Medvedev recently stressed the need to synchronize efforts with the other EAEU countries and called for a common approach to cryptocurrency regulation. Kazakhstan, where government leaders met last week, and Kyrgyzstan, which is also a member-state, have taken steps to appear on the global crypto map. 0 votes The Next Stage of the Crypto boom is Starting to Take Shape
Last year, crypto-currencies burst on to the scene. Bitcoin saw incredible gains in 2017, rising from $1,000 all the way to $19,000 in mid-December. But regular investors have so far missed out on the cryptocurrency craze, as not only is the technology behind cryptocurrencies confusing, but the investment process is intimidating or at least it used to be.
Now investors looking to score on the crypto-currencies market in their regular brokerage account are in luck.
Hashchain Technology Inc. is a bitcoin miner and blockchain innovator with a wide exposure to a wide range of crypto assets.
Buying into KASH is a bit like buying a crypto ETF: you get the value of the sector’s growth without having to invest directly in crypto or understand this new asset class.
Even with crypto prices falling from the incredible highs of 2017, bitcoin and its brethren are here to stay. Investors could use a firm like KASH to give them exposure.
Plus, KASH is working on the future of crypto too including proprietary regulatory software to bring greater security to those using it.
In the highly profitable world of crypto, this is definitely a company worth looking at.
Here ‘ s five reasons investors should get excited about Hashchain Technology Inc.
( KASH.V ; HSSHF )
# 1 Superior Miner
KASH is first and foremost a crypto-currency miner. The crypto mining sector, which scarcely existed five years ago, has become multi-billion dollar industry.By mid-2017, crypto miners had earned $2 billion. But that was just the beginning. At the height of the crypto-boom in late 2017, miners had made more than $50 billion measured in value of cryptocurrencies then.
That’s a 2500 percent increase in less than a year, although that increase has now fallen from peak prices.The top 25 crypto projects have provided major value gains for buyers of coins: the currency Verge, for example, delivered a return of 257,000 percent.
In the last year, most cryptos have seen their value shoot through the roof.And investing in KASH is a great way to get crypto mining exposure.Investing in crypto mining is like investing in a gold mine: the miner delivers product, deducts costs and delivers a return.But even gold miners have only been able to deliver an 11 percent return in the last year.Crypto miners like KASH could make gold mine returns look miniscule. The company has big ambitions and intends to dramatically scale up its operation.Right now, KASH has 870 mining rigs, and the company has a commitment for mining up to 20 MWs in a facility in Montana. The company is also set to purchase an additional 5,000 rigs.
Combined with its current rigs, KASH should be able to mine 8.7 MW.To put that in perspective: when the crypto-miner Hive started out, they had a capacity of 4 MW. The company positively exploded late in 2017, and for a time had a market cap of $1 billion.
When KASH scales up, it could be the biggest crypto-miner in the business. It has a market cap of $45 million , but once its committed Montana facility space is fully utilized it should be able to mine 20 MW.But that’s not all its got going for it.
#2 Mastering the Masternodes
With literally dozens, if not hundreds of currencies out there, new-to-crypto investors often feel overwhelmed or don’t have the time to research the variety of cryptos available to invest in.
Owning KASH (KASH.V; HSSHF) could be a solution to that problem. So, not only do they provide mining exposure but they also provide exposure to tokens too.
How? The company has holdings of the Dash cryptocoins, now worth a lot more than KASH paid only a few months ago.A key currency in the company’s portfolio is Dash. The company also owns a Dash ‘masternode’, which KASH acquired after a $280,000 investment in 1000 Dash Coins (which is now worth $560,000).
The Dash network currently rewards masternodes at a rate of 6.67 Dash per month.
That gives KASH a steady stream of income.Ownership of a rare masternode has been giving KASH a return on its masternode investment of 8 percent.Dash is a smaller currency but its growing fast. With a market cap of $4.2 billion compared to Bitcoin’s $135 billion, Dash is being produced at a rate 8x that of Bitcoin.The leadership at KASH knows the Dash crypto-currency well, and is prepared to capitalize on it. Perry Woodin, the head of the KASH advisory board, also sits on the advisory board of Dash and has more than 20 years of experience in managing web-based applications.
CEO Patrick Gray is a tech pioneer.
He sold his first start-up to Xerox for $220 million, and he’s raised millions for a number of successful ventures.The goal of the company, according to Gray, is to give investors access to a lucrative market “that they can’t take advantage of themselves.”KASH recently announced the acquisition of the business of Node40 , an experienced blockchain firm, for approximately $8 million in cash and stock consideration. Node40 is a crypto-currency exchange management software that delivers up-to-date information on the changing state of crypto.Regardless of changing prices, Node40 will give KASH an edge on navigating the crypto market.
The company’s stock in some ways functions like an ETF for crypto-mining: investors will get exposure to a valuable index of crypto-currencies, without taking on the risk of picking and choosing specific volatile coins.And things may only get better from here.
# 3 Wall Street Takes Notice
After years of scoffing at Bitcoin and other crypto-currencies, the financial industry is finally paying attention.
Blockchain and crypto-currency form an important component in the fintech revolution. The opportunities for investors grow greater and greater every month.One Wall Street analyst recommended investors be ready to see billions surging into crypto, fintech and blockchain assets: “get ready for an explosion.”There’s talk of crypto-currency hedge funds, particularly one featuring Ripple, one of the most competitive cryptos.Pretty soon, crypto-currencies are expected to be integrated into the financial system, to the point that everyone (including the reader) will have a stake in the blockchain of cryptos.But while Wall Street wakes up to the potential of cryptos, KASH offers exposure that is not available in most other single companies.
And KASH is also looking to the future.
That’s because KASH, unlike other crypto firms, wants to be part of the coming regulatory landscape.
#4 Regulation Innovation
KASH is quickly establishing itself as a provider of accounting solutions for Blockchain. Through its recently announced acquisition of NODE40 the company is focusing on developing accounting software that can integrate directly with the crypto market with certain major cryptocurrency exchanges.The company’s goal is to bring blockchain and crypto-currency up to the regulatory standards enjoyed by other parts of the financial sector.And regulation is something the crypto market is going to need.For example, last year, the IRS subpoenaed information from Coinbase regarding transactions it processed for 14,000 Coinbase users. It’s only a matter of time, and KASH is building software that can help keep users compliant.
There needs to be a company like KASH that takes regulation seriously.And KASH has acquired proprietary software that analyzes the blockchain to determine accurate valuations for every input and output comprising a transaction.
Once a value has been assigned to every transaction, the service can report the current total asset value, income, and any realized gains or losses. This will help keep crypto markets regulated, preventing fraud.Think of this aspect of the company’s business like Quickbooks for bitcoin.
# 5 Crypto Exposure
Investing into a smart, responsible and ambitious firm like KASH gives investors exposure to the red-hot world of crypto-currency mining, software and hosting.The company’s stock is like a crypto basket: as the firm’s profile grows and it diversifies its holdings, KASH could function something like a crypto ETF, offering investors the diversity of different aspects of the crypto market.If KASH reaches full capacity at its Montana facility, it will be mining crypto at rate of nearly twenty MW per year.All for a firm that has only a $45 million market cap
KASH’s acquisition of Node40 will allow it to navigate the choppy waters of the crypto market. Regardless of the fall in prices, the number of crypto transactions are on the rise, which means that investors will need a firm with KASH’s skillset to navigate the new economy.
Once you throw KASH’s proprietary accounting software into the mix, the potential starts to look really appealing. Demand for regulation in the Bitcoin market is likely to shoot up in 2018 as Wall Street embraces the crypto revolution.That means that a company like KASH with its own crypto regulation software could charge a premium for its services, especially if it becomes the industry standard.Considering the value of the whole crypto-currency market is currently about $640 billion, KASH’s regulatory software could eventually be worth a lot more than it is now.
In short: KASH provides smart wide exposure to the crypto market – from mining to cryptocurrencies, to crypto assets and software – right in your stock trading account. Other firms in the tech space taking security, compliance, and innovation to the next level: Microsoft ( NASDAQ: MSFT ) is one of the most innovative and well-known companies within the tech sector, but its Windows platform is the most widely used operating system on the planet. First launched in 1985, Windows has shaped what is expected from a personal home computer. Intel Corporation ( NASDAQ: INTC ) is a leader in multiple fields of technology.
The forward-thinking industry giant is the backbone of many laptops and PCs running the Windows operating system. The company has been so successful in its deal-making and advertising that it is impossible to escape its influence. Accenture ( NYSE: ACN ) , the global consulting and technology firm, is arguably at the forefront of blockchain technology. Accenture can claim leadership on multiple fronts in the blockchain space, working with industries, governments, the academic community and crypto-tech experts.
Blackberry Ltd ( NYSE: BB ) This well-known cell-phone pioneer is engaged in the sale of smartphones and enterprise software and services. The Company’s products and services include Enterprise Solutions and Services, Devices, BlackBerry Technology Solutions and Messaging. Blackberry used to be a worldwide leader in phones, but Apple, Google and other Android manufacturers have rapidly acquired market share. Celestica Inc. ( NYSE: CLS ) is a manufacturer of electrical devices used in IT, telecommunications, healthcare, defense and aerospace industries. The company has seen strong growth YoY which we expect to continue as the sales expectations are almost 3% better than last year’s.
Digital money Mining Demand Exceeded the Expectations of Nvidia in Q4
Bitcoin and digital money mining have given a steady and developing business sector for the PC equipment makers that create the pertinent chips for each fragment. The primary player on the GPU side (rather than ASIC mining) in 2017 was Nvidia, yet even it couldn’t envision the solid request from excavators as the year advanced
Mining Boosts Earnings
Nvidia Corporation (NASDAQ: NVDA), the illustrations handling unit (GPU) producer, has announced a record income for the final quarter (which finished January 28, 2018) of $2.91 billion, up 34 percent from $2.17 billion a year sooner. The organization accomplished this pinnacle money related execution, at any rate to a limited extent, because of solid request from digital currency diggers which purchase its illustrations cards in mass.
“We accomplished another record quarter, topping a fantastic year,” said Jensen Huang, originator and CEO of Nvidia.
“In a capable indication of our advance, participants at Nvidia’s GPU Technology Conferences achieved 22,000, up ten times in five years, as programming designers working in AI, self-driving autos, and an expansive scope of different fields kept on finding the quickening and cash sparing advantages of our GPU figuring stage.”
Up to $230 Million in Mining Revenue
“Solid request in the cryptographic money showcase surpassed our desires,” Nvidia Chief Financial Officer Colette Kress said in the organization’s final quarter income call. “While the general commitment of cryptographic money to our business stays hard to evaluate, we trust it was a higher level of income than the earlier quarter. All things considered, our principle concentrate stays on our center gaming market, as digital currency patterns will probably stay unpredictable.” He included, “We demonstrated crypto roughly level” for next quarter.
Investigators following the stock evaluated the effect, which the CFO was hesitant to measure, in the several millions. RBC Capital Markets’ Mitch Steves assessed that Nvidia’s digital money income rose to $180 million in Q4 from just $70 million the past quarter. BMO Capital Markets Ambrish Srivastava anticipated that altogether the mining section constituted more than $230 million for the period.
“We had said the organization expected to beat and raise, and it beyond any doubt did, to say the least,” Srivastava wrote in a note to customers.
“Crypto likely had a hand to play in the outcomes.” .
