Trump administration to illegally divert an additional $7.2 billion to border wall construction – World Socialist Web Site

Trump administration to illegally divert an additional $7.2 billion to border wall construction By Jacob Crosse 17 January 2020

Reports leaked to the Washington Post and confirmed by two sources in the New York Times indicate that the Trump administration is repeating last years unconstitutional violation of the congressional power of the purse. It is invoking a mythical national emergency to divert $7.2 billion dollars from the obscene $738 billion Department of Defense budget to hasten the construction of the border wall and further cultivate his fascistic base of support ahead of the 2020 election.

Congressional Democrats gave Trump a clear path to once again circumvent congressional authority by passing the National Defense Authorization Act this past December, which provided the Trump administration with record funding for the military and stripped out language that would have barred the siphoning of funds from the Pentagon to border wall construction.

The Constitution of the United States explicitly states that, No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law. This has become a dead letter, like many other constitutional provisions, as decades of aggressive war, years of extrajudicial assassinations, the building of concentration camps on the border, the suspending of habeas corpus, and the continued support for unlimited NSA spying and warrantless wiretapping has shown.

The funding, similar to last year, will be pulled from military construction projects such as repairing schools and water treatment centers on US bases, counter-drug insurgency operations, and the minimal funds that have been made available to the Puerto Rico National Guard for rebuilding efforts following 2017s Hurricane Maria and the recent barrage of earthquakes that have struck the island.

While last year the Trump administration shifted $2.5 billion from counter-drug programs and $3.6 billion from military construction, those figures increased this year to $3.5 and $3.7 billion respectively. Overall, the Trump administration, with Democratic acquiescence, has allocated $18.4 billion to the construction of a symbol to the anarchy, stupidity, and cruelty of the capitalist system.

For the 2019-2020 school year, Collegeboard.org estimated that the average US college student spends an estimated $21,950 for four years of in-state tuition with room and board included. If the $18.4 billion that is currently being used for border security were instead put towards funding higher education, some 833,268 students could attend state public colleges at no cost for the next four years. If one just allocates the funds to tuition, not including room and board, then over 1,762,452 students would be able to further their education.

According to the plans revealed to the Post , the additional funding would be sufficient to complete approximately 885 miles of wall by 2022. Trump has pledged throughout his presidency that by November 3, 2020, US election day, 450 miles of the wall would be complete. As of today, roughly 101 miles has been completed, nearly all of it on federally owned land. Trump is using the threat of eminent domain to intimidate landowners along the border into selling their property.

A legal barrier to the continued construction of the wall was lifted this past week by the US Court of Appeals for the 5th Circuit, in New Orleans, which overturned a ruling from a federal district court in El Paso, Texas that had frozen the $3.6 billion in military construction funds from last year, barring them from being used towards a purpose that had not been approved by Congress.

This ruling, along with the Democrats complete withdrawal from any defense of immigrants rights, has according to the Post, provided the administration with additional encouragement to continue to violate the Constitution.

There were mild grumblings about the Trump administrations actions from a few Republican Senators such as Richard Shelby (R-AL). In statements to reporters, Shelby wished that theyd get the money somewhere else, instead of defense, before quickly adding that he support(s) building the wall. And I support funding money directly ... to help the president.

Playing their part as a resistance party in name only, the Democrats have continued to center their so-called resistance to Trump on a right-wing anti-Russia campaign. This latest violation of the Constitution was not brought up before the committees involved in the impeachment inquiry, despite the obviousness of the transgression.

The Democrats, striking a similar tone to their GOP collaborators, once again bemoaned that the Pentagons war machine was being denied resources; Representative Katie Porter lamented that the diversion hurts military readiness, and that we should stand by our troops.

In prepared statements Tuesday, three leading Democrats, House Appropriations Committee Chairwoman Nita Lowey (D-NY), Defense Appropriations Subcommittee Chairman Pete Visclosky (D-Ind.) and Rep. Debbie Wasserman Schultz (D-Fla.), all issued statements which made reference to the further violence to the Constitutional separation of powers that is inherent to our democracy. However, their main objection was once again centered on the fact that the funding would be forcing service members and their families to pay for his wall, while funding that was intended for meaningful counter-drug priorities, would be neglected.

The truth is none of these funds, whether they remained in the Pentagon or were unconstitutionally shifted to border wall construction, will do anything to help better the lives of working people either within the borders of the US, or outside of them.

2019 has been a year of mass social upheaval. We need you to help the WSWS and ICFI make 2020 the year of international socialist revival. We must expand our work and our influence in the international working class. If you agree, donate today. Thank you.

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Trump administration to illegally divert an additional $7.2 billion to border wall construction - World Socialist Web Site

Institutional Money May Be Igniting the Current Bitcoin Rally – CCN.com

Bitcoin recorded another fresh 2020 high Friday as it climbed to $9,000.

There are different theories as to why the number one cryptocurrency suddenly came back to life. Just over a week ago, bitcoin rallied along with gold and oil after geopolitical risks in the Middle East escalated. Some analysts claim that speculators are already positioning for the May 2020 halving. Others claim that the loose monetary policies of central banks is driving investors to take on riskier assets.

While these theories have their own merit, new information tells me that institutional money may be powering bitcoins ascent.

In the fourth-quarter of 2019, the top cryptocurrency struggled to keep its head above water. From a high of $10,350 in October, it nosedived to $6,425 in December. At the time, the atmosphere was so pessimistic that calls for a drop to $5,000 or lower were dime a dozen.

At the same time, however, Grayscale was raking in institutional money. Last year, the Grayscale Bitcoin Trust drove demand as institutions invested $471.4 million. Nearly 200 million were raised in 2019.

This new information tells me that institutional investors helped carve the bitcoin bottom in December. It is no coincidence that the orange coin bottomed out just as institutional money came pouring in.

$200 million is a lot of money for an asset class with a market cap of about $162 billion. The impact of institutional money is magnified if you consider that more than half of BTCs in circulation have not moved in a year. Only $50 billion worth of BTCs have been changing hands over the past 12 months.

The chart shows that 64% of the over 18.04 million BTCs in circulation are dormant. Only 6.46 million BTCs are being used for trading or payments. These numbers indicate that the cryptocurrency is bound to soar if $200 million of new money enters the market.

While $200 million may be enough to carve a bottom, its not sufficient to push bitcoin to greater heights. Should the current bull rally fail to entice new investments, the coin will likely struggle to maintain its momentum. Whats even worse is that institutions might cash out just as new money from hyped retail traders enter the market.

If that happens, we might see bitcoin capitulate to $5,000 as trapped retail money rush to exit the cryptocurrency.

Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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Institutional Money May Be Igniting the Current Bitcoin Rally - CCN.com

Weak Hands Are Out Trader Who Called $20K Bitcoin Top Calls Bottom – Cointelegraph

Bitcoin (BTC) investors who are waiting for a price dip to even $6,000 have missed their opportunity already, veteran trader Peter Brandt says.

In a market discussion with Cointelegraph on Jan. 17, the 40-year market stalwart said that contrary to what some believe, BTC/USD has already hit its floor.

They all now want to sit and buy a break back to $6,000 or $5,000 and theyve missed the bottom and during that bottom, I think you had a lot of people accumulate with strong hands, he summarized.

Brandt continued:

The weak hands are out; the strong hands own it.

As a long-time Bitcoin advocate, Brandt was continuing a bullish streak he began on social media earlier this month.

As Cointelegraph reported, his personal sentiment has undergone a change since late 2019 as recently as December, he had warned there remained a chance for Bitcoin to put in lower lows in 2020 thanks to novice investors he described as cryptocultists.

In early 2018, one month after Bitcoin reached its all-time highs of $20,000, Brandt warned markets would not be going any higher, and that an 80% retracement was likely. BTC/USD hit local lows of $3,100 84.5% lower a year later.

Now, however, the danger has subsided, Brandt suggested, in comments echoed in the discussion by fellow trader Alessio Rastani.

I think anybody who is interested in what Bitcoin has to offer has to have at least 10-20% of an ownership position relative to the capital that they could commit to Bitcoin in a bigger perspective, he advised.

Bitcoin has sealed monthly gains of around 35%, with 2020 progress alone at 25%. Markets reached local highs of $9,000 on Friday, before encountering resistance, which coincides with the 200-day moving average price, something which has historically stifled bullish progress.

The latest statistics meanwhile suggest that interest in Bitcoin extends beyond lay consumers volume surges on futures markets signal institutional commitment as well, commentators have said.

Cointelegraph regularly produces Market Discussions, Interviews and Documentaries. To watch more of our videos, subscribe to Cointelegraphs YouTube channel.

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Weak Hands Are Out Trader Who Called $20K Bitcoin Top Calls Bottom - Cointelegraph

New Analysis Finds That Mondays Are the Best Days to Buy Bitcoin – Cointelegraph

This week saw Bitcoin price (BTC) hitting the $9,000 barrier amid the launch of CME Bitcoin options and Plaids acquisition by Visa, reaching a record price for the last two months.

Bitcoins 27% price gain since the beginning of the year along with the future bullish scenarios laid down by investors may attract new crypto holders. But since BTC/USD is traded 24/7, new investors may be wondering: is there a difference between investing on a particular day of the week?

Figure 1. Crypto market data, 1-day performance. Source: Coin360

The basis of a difference in a day of a week returns comes from traditional stock markets. It has been shown that stock returns on Mondays are, on average, negative. This is called the Weekend Effect. One explanation is that the effects on a particular stock will only be felt on Monday since the market is closed during the weekend. However, the cryptocurrency market is always open: Could we expect the same behavior on Mondays for Bitcoin?

Analyzing Bitcoin returns from the beginning of 2019 until Jan. 13, 2020, data shows that Fridays present the highest average return across the days of the week at 1.1%. In contrast, only two days of the week show negatively average returns, Tuesday (-0.24%) and Thursday (-0.97%).

If an investor only started investing at the start of 2019 on a particular day of the week, Friday would present the best cumulative return, followed by Monday (Figure 2). Taking Fridays as an example, its assumed that the strategy would be to buy BTC closing price on Thursdays and sell it at the closing price on Fridays.

The closing prices (UTC timezone, a rolling 24-hour period) are used for simplicity reasons since the desired time to buy and sell during those days is based on the investors preference. The same buy/sell rationale applies if another day of the week is chosen to conduct the strategy (i.e. Monday).

Figure 2: Cumulative Return for investing on a specific day only between January 2019 and January 2020

Taking a deeper look at Bitcoin returns for a longer time period, as seen from Figure 3, we can conclude that Mondays offer the best average return from all the days of the week (0.54%).

On the other hand, Thursday and Wednesday are the worst days of the week to invest in Bitcoin with an average return of -0.09% and -0.23%, respectively.

Bitcoins Monday anomaly case is reinforced from a statistical perspective since Monday is the only day of the week with a statistically significant result from the used regression models.

Curiously, as a truly anti-status quo coin, Bitcoin shows a mean positive return on Mondays, in contrast to traditional stock markets Weekend Effect.

Figure 3: Average Daily Return for each Day of the Week between April 2013 and January 2020.

Using the same long-term sample starting in April 2013, an investor choosing exclusively one day of the week as a strategy would get the best option by choosing Mondays, followed by Saturdays, as seen from Figure 4.

Figure 4: Cumulative Return for specific day investment during the entire sample analyzed (Between April 2013 and January 2020)

We cannot ignore Bitcoins explosive gains from two highly volatile periods seen in 2017 and how those influence the average returns for the longer time sample. By isolating that year, we find that Monday still shows the highest average return (1.5%) across the days of the week, followed by Thursday (0.55%).

Figure 5: Average Daily Return for each Day of the Week between during 2017

In summary, Bitcoins unique features reveal an opposite behavior to traditional stock markets, showing a positive average return on Mondays when considering wider time periods. However, when dealing with shorter time frames, we identify Fridays as the day with the highest average returns across the days of the week.

As reported by Cointelegraph, a study in September 2019 showed that Bitcoin holders make a profit after an average of 1,335 days, or roughly three years and eight months. Overall, holding BTC has been profitable for over 94% of days Bitcoin has existed, according to the latest data from Bitcoin Hodl Calculator.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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New Analysis Finds That Mondays Are the Best Days to Buy Bitcoin - Cointelegraph

Bitcoin Just Plunged $700 Upon Reaching The MA-200: Healthy Correction or Reason To Panic? Price Analysis & Overview – CryptoPotato

Today we got another reminder that volatility is working both ways.

Bitcoin has fabulous times since entering the new decade. However, when we see such a parabolic move to the upside, we can expect volatile moves to the other side, as well.

Just yesterday, we mentioned Bitcoin price reaching its first major test the 200-days moving average line (marked light green on the following chart). Many analysts see this tough resistance as the barrier between Bear and Bull markets.

Today, Bitcoin surpassed the crucial moving average line (roughly around $9060). However, shortly after recording a daily high (and year to date) at $9188 (Bitstamp), we received a MEGA dump.

Besides, on the 4-hour chart, we can clearly see Bitcoin reaching the top area of the marked ascending channel.

Bitcoin lost over $700, plunging to the $8400 old resistance level. As of writing these lines, Bitcoin had recovered a bit, trading above the $8600 resistance level.

So far, there is no reason to panic, in my opinion. Its OK not to overcome the significant MA-200 at the first chance.

Another thing to keep in mind is the CME Futures Friday low at $8720. This means that as of now, there will be a positive price gap.

Following the drop, the total market cap had reached $250 billion at the top before losing over $13 billion in less than 60 minutes.

Total Market Cap: $237.5 billion

Bitcoin Market Cap: $157.5 billion

BTC Dominance Index: 66.4%

*Data by CoinGecko

Support/Resistance levels: Bitcoin is now trying to keep above the $8600 resistance turned support level. If the last breaks, then the $8300 $8400 strong support area will be the next level, along with the Fibonacci retracement level of 38.2%.

Further below lies the $8000 area, along with the 100-days moving average line (marked by white). This also contains the bottom trend-line of the ascending channel.

From above, $8730 will be the first level of resistance Bitcoin will face (38.2% Fib level). The next major resistance is $8900, along with the Golden Fib of %61.8.

Further above is $9000, along with the most significant resistance at the current price area the 200-days moving average line.

The RSI Indicator: The RSI that was hovering at its highest levels since June had plunged together with the price. It will be interesting to see if the RSI can hold the mini-ascending trend-line.

A bearish sign might be coming on behalf of the Stochastic RSI oscillator, as it made a bearish cross-over and about to enter the neutral territory, which can ignite a further correction.

Trading volume: We need to keep in mind that the vast move is taking place during the weekend when its easier to shift the markets.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency chartsby TradingView.Technical analysis tools byCoinigy.

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Bitcoin Just Plunged $700 Upon Reaching The MA-200: Healthy Correction or Reason To Panic? Price Analysis & Overview - CryptoPotato

Bitcoin Holding $8K as Support but What Will it Take to Break $10K? – Cointelegraph

Bitcoin price (BTC) closed the week at $8,180 representing an 11% gain for the week after struggling to break the resistance at $7,600 for most of November and December. The price is down around 1% on Monday but the bulls have retained the $8K handle.

Total market cap excluding Bitcoin was up 12.5% last week meaning that altcoins are starting to gain some market share from Bitcoin, which is impressive given BTCs impressive week and counter to the general downtrend that has been in place since summer.

Cryptocurrency market 24-hour view. Source:Coin360

After an impressive week of gains, Bitcoin is now trading above the 50,100 and 200 weekly moving averages while staying above $8,000 on Monday, which is one of the larger areas of volume from 2019.

The bulls started the week on a positive note having broken the 7-week resistance of $7,600 and retaining the $8K level early through the week. Maintaining above $8,000 and printing higher lows will be an important task to demonstrate that the bulls have the strength to reclaim the higher trading range between $7.5K and $9.5K.

BTC USD Weekly chart. Source: Tradingview

The weekly Bollinger Bands show Bitcoin hard up against the 20-week moving average. Losing this level in September was definitive in confirming the downtrend in recent months and breaking it back in March 2019 defined the following uptrend.

In both of the previous two occasions, it did little to act as resistance but it did act as initial resistance last week. Clearly, this will be important to watch in the coming weeks.

BTC USD Weekly chart. Source: Tradingview

The spot volume for BTC/USD has been in decline since the climactic selloff in June 2019. It is notable that the most significant weeks of volume have all been supporting a move higher. The moving average convergence divergence indicator, or MACD, has been showing divergence on its histogram since October but requires a bullish signal cross to confirm it.

Given where the MACD is, this would most likely coincide with it crossing its zero line, which would add confluence to it being bullish. Until this occurs, however, this remains an unconfirmed signal.

BTC USD Weekly chart. Source: TradingView

The daily Bitcoin chart shows that BTC has broken both the 50 and 100-day moving averages relatively quickly over the past two weeks.

The 100-day moving average is now acting as support after Bitcoin was held up around the mid-$8,000s, which is the middle of the previous trading range that Bitcoin held through October.

BTC USD 1 Day Chart. Source: TradingView

Bitcoin price is currently consolidating above resistance and the most significant volume node on the visible profile visible range, or VPVR. If Bitcoin can complete bullish consolidation above $8,000, a measured move to the upside would take the price of Bitcoin to the top of the previous range at $9,500 and possibly as high as the next high volume node of $10,100.

The MACD has remained crossed bullish, trending above zero so the outlook remains positive for the bulls who need to show strength turning previous weekly resistance into support.

BTC USD 1 Day Chart. Source: TradingView

The 4-hour chart shows that consolidation is occurring around the $8,000 level. There is a hint of a general descending diagonal resistance in price but selloffs have been met by buying interest so far resulting in a sideways action.

Should the price of Bitcoin break down at this point, it seems likely that there would be a response around the 61.8% level of the bounce last week, which would potentially lead to a higher low between $7,800-$7,900.

Failure to find support here would lead to Bitcoin painting an Inverted Adam and Eve topping pattern, which would put downward pressure on previous support, suggesting that demand may need to be retested back at $7,000.

BTC USD 4-hour chart. Source: TradingView

Looking at the CME futures, the price gap created over the weekend was filled quickly on Monday. One thing to note is the volume on the futures contract was largest during the most recent bounce backtesting the mid $7,000s. Volume overall is in decline through this period of consolidation and looks likely to be reaching a pivotal point within the next 24 hours.

The premium has now settled to around $50 above the spot price, having been as high as $180 at the highs last week, meaning the market has returned to a more modest state of contango, which is a healthier outlook.

The BitMEX funding rate is also above zero, which generally has an inverse relationship with price as a leading indicator. Despite this, it is by no means near the overheated levels seen at market tops.

BTC USD 4-hour chart. Source: TradingView

The picture is fairly clear for Bitcoin. Previous horizontal resistance has been broken and the bulls need to turn this now into support. There is a debate about whether Bitcoin has broken out of its diagonal resistance so this will remain a key point of contention, which many are looking towards as a sign of a definitive change in trend.

Breaking above key moving averages, supported by a local trend change in volume, paints a positive picture. But failure to capitalize on the early 2020 gains could see the bears reclaim control and take Bitcoin to new lows.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Bitcoin Holding $8K as Support but What Will it Take to Break $10K? - Cointelegraph

Bitcoin (BTC) Pop to $1 Million Not Happening This Cycle, Heres Where It Will Land According to Analyst Josh Rager – The Daily Hodl

Crypto analyst Josh Rager is calling out a myriad of predictions that say Bitcoin could hit anywhere from $100,000 to $1 million in a new bull cycle.

In an update for his 62,000 followers on Twitter, the popular analyst is outlining what he says is a much more realistic target.

Unpopular Opinion: The next Bitcoin peak high will not be as high as most people think.

Lots of analysis out there point from $100k to $300k to $1M. Simple rate of return will show you bottom to peak return reduces by around 20% each cycle. In my opinion, next high hits $75k to $85k.

Just a word of caution for some of you who wait until $100k to $1M Bitcoin to take profits. Dont let greed get the best of you this time. When you see Bitcoin all over media and everyone outside crypto Twitter talking about crypto, its likely the top in, whether thats $50k, $75k, or $100k.

If Bitcoin can break $10,350, Rager says its game on for a new long-term rally.

Prices to Watch: $9400s Held as support for June-Sept range, significant area to break

$10,350s Point of control, highest volume traded at this price point from May to December

Breaking $10,350s, In my opinion, will confirm next big uptrend with 5-digit BTC for months to come.

Rager is also outlining the lowest he thinks BTC could drop in the weeks and months ahead. He expects $6,400 to act as a floor and highlights $10,000 as a critical line of support in a new bull phase.

Fixed range volume profile shows the importance of point of control (POC) for a major range to act as support. 2018 POC held as support at $6,400s. In my opinion, we should see the 2019 POC act as support at $10,100. Price should stay above $10,100 on its way to new all-time high.

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Bitcoin (BTC) Pop to $1 Million Not Happening This Cycle, Heres Where It Will Land According to Analyst Josh Rager - The Daily Hodl

$140,600,000 in Bitcoin (BTC) Exits Cryptocurrency Exchange As Whale Moves $6,320,422 in XRP – The Daily Hodl

Whale activity is picking up steam as a big week in the crypto markets comes to a close.

In a 12-hour span, an anonymous crypto whale moved 16,001 Bitcoin (BTC), worth $140.6 million, from the crypto exchange OKEx to an unknown wallet.

While its possible that the whale is OKEx itself moving funds on behalf of its customers, the exchange has not announced plans to move mass funds. The transfers come a day after Bitfinex reportedly moved 123,447 Bitcoin worth $1.1 billion between two of its wallets.

Heres a look at all of the large OKEx transfers in the last day.

Meanwhile, traders are also following a lone crypto whale who moved 27,000,000 XRP worth $6.3 million from the crypto exchange Bithumb to an unknown wallet.

27,000,000 #XRP (6,320,422 USD) transferred from #Bithumb to unknown wallet

Tx: https://t.co/cTFFpOSJ3e

Whale Alert (@whale_alert) January 17, 2020

Both Ethereum and XRP whale activity has been limited over the past week.

Regarding the second and third largest cryptocurrencies by market cap, the most talked-about transfer was a movement of 100,000,000 XRP from Ripple. The payments startup, which owns more than half of all XRP in existence, moved the trove of XRP, which is worth $21.8 million, out of an escrow wallet on Tuesday.

The transfer frees up funds for Ripple to sell to institutions over-the-counter and on crypto exchanges. In recent months, Ripple has reduced the amount of XRP its selling. In the third quarter of 2019, the company reported selling XRP totaling $66 million, down from $251 million in the second quarter.

Ripples fourth quarter report is expected this month.

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$140,600,000 in Bitcoin (BTC) Exits Cryptocurrency Exchange As Whale Moves $6,320,422 in XRP - The Daily Hodl

Why Analysts Are Bullish After Bitcoin Just Rallied to $8,300 – newsBTC

Over the past few hours, Bitcoin (BTC) has started to show signs of a bullish trend. As of the time of writing this, the leading cryptocurrency has reached $8,290 the highest price the BTC has traded at since the local top at $8,450 put in on January the 7th from the $8,050 daily low put in on Monday.

While this 3% jump is far from a stable uptrend, analysts are convinced that the crypto markets short-term rally isnt done yet.

Full-time trader Cold Blooded Shiller noted that this latest move has allowed Bitcoin to decisively break out of a pennant chart pattern. This breakout suggests BTC will rally 6% in the coming days towards $8,750 in a best-case scenario.

Joe McCann, a prominent cryptocurrency analyst and Cloud and AI specialist at Microsoft, noted in his Telegram channel that the 10-day moving average and 100-day moving average have just seen their first bull crossover since September.

McCann did note that he has some worries about the BitMEX funding rate, which implies too much optimism in the crypto market, but noted that the crossover an a triangle pattern that has formed suggests a move to $8,800 in the coming week.

It isnt only the short-term outlook for BTC that is looking strong; key indicators on a weekly basis have started to favor bulls.

Per previous reports from NewsBTC, Murad Mahmudov, CIO of Bitcoin fund Adaptive Capital, recently shared a textbook chart that applies to any financial market which shows what trends in an assets volume, open interest, and price mean for assets.

The chart shows that the most optimistic scenario for any market is if the assets price, volume, and open interest for its futures market rise in tandem, suggesting strength, bullish price action, and an overall trend of prices rising.

And what do you know! Bitcoin, over the past few weeks, has seen its price, volume, and open interest increase all at once, showing effectively no signs of weakness

On the technical side of things, the Lucid Stop and Reversal indicator, which tracks entries for Bitcoin and other assets, just printed its first buy signal since March 2019.

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Why Analysts Are Bullish After Bitcoin Just Rallied to $8,300 - newsBTC

Heres Why Some Financial Advisors Are Adding Bitcoin To Client Portfolios – Forbes

Getty

A new report (PDF) from Bitwise and ETF Trends has looked into how financial advisors think about Bitcoin and other cryptocurrencies.

Notably, the report indicates that roughly 9% of independent registered investment advisors (RIA) currently allocate a percentage of client funds to crypto assets. According to the report, the rate of crypto investment among independent RIAs is higher than the rates found with financial planners, wirehouse representatives, and broker dealers due to the relative lack of restrictions independent RIAs face in terms of the types of investments theyre able to make on behalf of their clients.

While overall allocation among financial advisors is still low at around 6%, the report indicates a potential doubling or more for this sort of activity in 2020 based on survey responses.

A variety of reasons for potentially adding Bitcoin exposure to client portfolios are provided in the survey, but the fact that the cryptocurrency is largely uncorrelated with other asset classes is the most highly-cited factor for financial advisors.

According to the report from Bitwise and ETF Trends, 54% of financial advisors view Bitcoins lack of correlation to other asset classes as a reason to add the crypto asset (or one of its competitors) to client portfolios.

That finding aligns with Bitwises qualitative view of how the primary narrative surrounding the investment aspects of crypto evolved in 2019, the report adds. From our perspective, 2019 saw a significant uptick amongst both the mainstream media and traditional Wall Street analysts in discussing crypto as a safe haven asset and a new form of digital gold. That messaging appears to have resonated with the financial advisor community.

To Bitwises point, data from the second half of 2019 appears to show that Bitcoins role as a digital gold is going from theory to reality. Additionally, one industry executive pointed to this increasing view of Bitcoin as a digital gold when making a $50,000 Bitcoin price prediction for 2020.

That said, only 9% of financial advisors surveyed in the report view inflation hedging as a reason to add crypto assets to a portfolio. The report states that part of the reason for this seemingly low positive response rate could be due to a lack of concern regarding inflation today.

Notably, the percentage of financial advisors who said they would choose commodities as the area from which to pull capital for a potential crypto asset investment doubled from the 2019 version of the same survey, which could be viewed as another indication of growing sentiment around Bitcoin as a digital gold.

In addition to the potential for returns uncorrelated with other assets, 30% of financial advisors said the high potential returns found in the crypto market made exposure to this asset class attractive for client portfolios. Additionally, 26% of financial advisors view client demand as a reason for Bitcoins attractiveness, with another 23% enjoying the fact that its simply something new to offer their clients.

Of course, there are still a number of issues with allocating client funds to the crypto market, which is why the vast majority of financial advisors still do not feel comfortable with this proposition.

In terms of specific road blocks in making a crypto asset investment with client funds, financial advisors included in the survey pointed to these issues:

According to the report, the high degree of concern around regulation could be related to the level of scrutiny Facebooks Libra project received from regulators and lawmakers after it was announced. Of course, there are key differences with how Libra and Bitcoin work at a fundamental level.

Additionally, the first 40 Act-approved Bitcoin fund was recently announced, which has led ETF Trends CEO Tom Lydon to claim there is a 60% chance for the approval of a Bitcoin ETF in 2020.

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Heres Why Some Financial Advisors Are Adding Bitcoin To Client Portfolios - Forbes