Bitcoin price took a wild swing just hours ago as London trading had yet to begin, registering a daily and weekly high at USD 8,796 at almost exactly 6:00 am London (CoinDesk). Minutes later, however, it dropped suddenly to a daily low, and has now been dipping ever lower, as price now trades three hours later at USD 8,344.
What caused this sudden and unexplained drop may not really be more than simple profit taking in Central Europe, although the sudden climb is less than logical. Could it have simply been a failed attempt by buyers to attempt a climb for USD 9,000 and form a breakout pattern? As we have been saying for weeks now, these will all likely fail if they cannot be achieved at volume and momentum. For now, momentum is there, but without the proper volume to back it up, heavy falls, corrections and retracements are bound to continue, as they have been today.
One wonders though if Asian markets have been buying up Bitcoin, especially since the riots and protests have been going on and in fact, escalating.
Morgan Creek Digital co-founder Anthony Pompliano notes, as others have before that Bitcoin presents one of the few currencies repressed citizens can look to store value in, when other assets are either unstable or are being monitored by states.
Bitcoin is different things to different people.
When you’re worried about your assets being seized or becoming inaccessible to you, Bitcoin’s non-seizability becomes very attractive.
This aspect of Bitcoin just became important for 1+ billion people in India & Hong Kong. pic.twitter.com/nLLaUlRpBz
— Pomp 🌪 (@APompliano) October 6, 2019
Writing only days after the worst protests seen during the entire period of rioting, marking China’s 70th anniversary, Pompliano said:
“When you’re worried about your assets being seized or becoming inaccessible to you, Bitcoin’s non-seizability becomes very attractive. This aspect of Bitcoin just became important for 1+ billion people in India & Hong Kong.”
It is a mark of true decentralization and how far Bitcoin has come in just ten years or so, that the network is not under the control of any single entity, nor can it be confiscated if you are the only one in control of your private key. This is much unlike national currencies and funds held in banks, where states or banks can easily take control of, freeze and even remove funds from account holders.
Hong Kongers are definitely a worried bunch, with queues forming outside bank tellers and ATMs, and trading volume peaking on peer-to-peer Bitcoin trading platform Localbitcoins. Volume reached a never-before-seen USD 1.57 million in just the last week.
BitPay once more came into criticism when it failed to pass on a Bitcoin donation made to the Hong Kong Free Press (HKFP). We reported some weeks ago that BitPay had done the exact same thing (or rather, failed to do) when the Amazon forest fires had critically needed funds.
BTCPay, the open source payment processor, turned out to be the hero in the end, according to HKFP founder Tom Grundy.
HKFP has escaped the clutches of BitPay and – with the kind help of @LeoAW – now accepts Bitcoin again via BTCPay: https://t.co/RdUnfImJ5O Thank you Leo!
— Tom Grundy (@tomgrundy) October 10, 2019
Meanwhile, US investment manager VanEck, has just released a new report entitled ‘The Investment Case for Bitcoin’, which it presented as a pitch to potential institutional investors. In it, VanEck insists that adding Bitcoin to any investment portfolio improves it thanks to its potential as digital gold.
Although relatively short, the presentation does talk about key concepts such as scarcity, and its nature as a bearer asset, while trying to explain its monetary and intrinsic value. In explaining why institutional investors have not gotten into Bitcoin, VanEck says that the difficulty in adoption is largely due to Bitcoin’s nature as a bearer asset and that there is very little “plumbing” that connects it to capital markets, with a lack of custodians, prime brokers, clearing entities, settlement entities, and transfer agents — things that are taken for granted in stocks and bonds, for instance.
It sums up the pros of a small Bitcoin investment easily:
“Bitcoin may enhance the risk and return reward profile of institutional investment portfolios. A small allocation to bitcoin significantly enhanced the cumulative return of a 60% equity and 40% bonds portfolio allocation mix while only minimally impacting its volatility.”
As it stands, all crypto is down heavily from yesterday, though still slightly above value from a week ago. Will London and then Wall Street traders later in the day bring price back up or will they also be cutting off their losing longs before the weekend is over? Hard to say in this current sentiment, but we will have nothing better to do than to find out.
BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Image Courtesy: Pixabay
The post Daily Trending News and Market Sentiment: Hong Kong Demand, Digital Gold Upside appeared first on BitcoinNews.com.
from BitcoinNews.com RSS Feed
via TOday BItcoin New
0 Comments:
Post a Comment