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This Week in Crypto: Bitcoin Dumps 20% After Hitting $10k, The Halving Is Here, Wall Street Buys …

May 14, 2020

Kerman Kohli is an Ethereum DeFi specialist and newsletter writer who is looking to sell $30,000 worth of KERMAN tokens. These crypto assets will …

Bitcoin Rallies to $10,000, Then Dumps 20% 

Last week, Bitcoin rallied as high as $10,000 — surging on the back of hype surrounding the block reward halving and a swath of positive fundamental trends. But, the cryptocurrency only traded above that key level for a short period of time, eventually crashing below the psychological resistance to a low of $8,100 in dramatic fashion. It was a drop that liquidated over $1 billion worth of crypto positions, data indicates.

Bitcoinpricechart

Despite the drop, many analysts remain bullish on Bitcoin.

One top trader made this much clear when he argued that there is a confluence of four fundamental factors that makes him “struggle to see a bearish case for Bitcoin.” These factors are as follows:

  • Bitcoin’s block reward halving is taking place in approximately one day.
  • Bitcoin’s narrative of being a hedge against economic downturns is “showing potential,” likely referencing how the cryptocurrency is the best-performing asset this year despite a global recession brewing.
  • BTC has seen incredible strength from the $3,700 lows seen in March.
  • Exchange dynamics are shifting in favor of growth, as buying increases and sell-side demand may slow.

Legendary Wall Street Investor Buys Bitcoin

 In a note titled “The Great Monetary Inflation” written by legendary macro investor Paul Tudor Jones, he wrote that Bitcoin in the ongoing macroeconomic backdrop is eerily reminiscent of gold in the 1970s. What happened with gold then, for those unaware, is the precious metal rallied hundreds of percent within years due to an influx of inflation (15% per annum at one point) and an abolishment of the gold standard.

Jones added while he subjectively sees Bitcoin as the worst store of value amongst fiat, gold, and financial assets, he sees the cryptocurrency as the “fastest horse in the race.”

Source

Defi Beeders

DeFi – Decentralized Finance

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