Category Archives: Bitcoin

There arent many good ways to lose $220 million, but this New York Times article highlights a particularly egregious one losing millions of dollars in bitcoin because you forgot the password to your digital wallet.

Stefan Thomas 7,002 bitcoin (worth roughly $220 million) are locked away in an IronKey hard drive, according to NYTs Nathaniel Popper. The problem is he cant remember the password, and hes just two failed password attempts closer to losing them forever due to IronKeys strict security protocols. There is the possibility of paying someone to crack the drive, but Thomas would have to have the time and money to make that happen.

Its a darkly comedic scenario, and Poppers story hits all of the cryptocurrency classics to help explain it. Theres mention of the volatile nature of bitcoins value and the currencys mysterious creator, but what the article makes staggeringly clear is how common losing bitcoin actually is.

Two other people get singled out in Thomas story of woe, but its a surprisingly common tale. Of the 18.5 million bitcoin currently in existence, roughly 20 percent (around $140 billion) are lost in inaccessible wallets, Popper writes.

There have been other high-value wallets locked out in the past, with contents ranging from $30,000 to $300,000, but Thomas story is a reminder of how persistent this problem is among bitcoin users and how expensive it has become. The secure and decentralized nature of bitcoin is great until it collides with simple human forgetfulness.

You can read the whole story here and appreciate just how much schadenfreude bitcoin continues to generate.

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Go read this NYT story about losing $220 million in bitcoin - The Verge

At the beginning of 2020, bitcoin was at US $8000. In December 2020, the bitcoin price started surging again and it crossed US $ 20,000. The surge continued till this month as bitcoin price crossed US $ 40,000 for the first time ever. In the past 24 hours, bitcoin has seen the lows of US $32,636. "When bitcoin price surged in December 2020, everyone had a fear of missing out on the lucrative returns bitcoin was giving, so there was a huge demand from the institutional and retail investors across the globe, this led to a massive surge in the price of bitcoin," says Shivam Thakral, CEO, BuyUcoin.

"The recent drop from an all-time high of US $ 42000 is more than expected and should be simply seen as a price correction. This is a healthy pull back which will offer long term price sustainability for bitcoin," adds Thakral.

Also Read | Digital bank account sparks off a disruption

The largest crypto currency in the world has given more than 300% returns in 2020. It attracted many retail and institutional investors. But this correction tempered the mood and investors began to enquire if this price correction should be taken as a trend reversal from hereon. Should you sell Bitcoins given the price fall?

ZebPays CEO Rahul Pagidipati has predicted that Bitcoin will reach 1 crore by 2030, and according to him, thats a conservative estimate. "Bitcoin is designed to be inflation-proof. It has a fixed supply and no central bank or other entity can print more bitcoins, like they can dollars or rupees. Though its volatile right now because its new, Bitcoin will prove to be more inflation-resistant than even gold," he says.

Experts ask to hold the bitcoins for longer term to earn good returns.

"You need to follow the fundamental principles of investing for successful bitcoin trading. Investors who have stayed invested in bitcoin for 2-3 years have made substantial profits from their investments and there is data to prove it. Until and unless you have an urgent expense in front of you, it is advisable to hold bitcoin for the long term in order to generate maximum value from your investment portfolio," says Thakral.

Experts believe crypto industry is here to stay and grow further. They expect to see greater demand coming from the retail sector in the coming years. Institutions are expected to position Bitcoin as one of the primary investment assets in Users portfolios.

"In the recent past, we have seen many payment rails/gateways like PayPal, Square integrating cryptocurrencies into their services. The key lure is the sheer demand that is being witnessed in the cryptoindustry. NBFC units, such as Insurance giants like Massmutal have now made an entry with investments in Bitcoin. JP Morgan Chase suggests that the popularity of Bitcoin may match up to that of more traditional commodities, such as gold as per a research note shared with its clients," says Sumit Gupta , CEO & CO-Founder, CoinDCX.

In order to safeguard against volatility, experts suggest to invest a small amount consistently just like SIP in a mutual fund.

"The best way to safeguard against volatility is to invest a small amount consistentlywhat we call rupee cost averagingso that the average price that you invest is the best possible price you can get over time. Think of it like a Bitcoin SIP.

The evidence is in the numbers: Despite the dips, if you held bitcoin longer than 3-and-a-half years during any period up to now, you had a 99.9% chance of making a profit. Past performance doesnt predict the future, of course, but that kind of long-term trend is almost never seen in any asset class," says Vikram Rangala, CMO, ZebPay.

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Is it time to sell bitcoins? - Mint

The gyrating price of bitcoin has made headlines again this year, as has growing interest from institutional investors. But most vanilla financiers have more to lose than win by diving into digital assets.

Open interest in CME s bitcoin futures has surged by more than 250% since the beginning of October. Large trade sizes and the fact that bitcoin doesnt have to be held directly mean CMEs system is considered a benchmark of activity by institutional investors.

Crypto-focused hedge funds and individual buyers are free to invest as they like, of course. Buying a volatile asset without cash flow in a euphoric market is a risk they are willing to take. It has certainly paid off for those with iron stomachs.

The calculation for mainstream institutions should be very different. Many will take a small allocation that will make little difference to their bottom line if prices surge, but they will still be left to explain to clients why they invested in an entirely speculative asset if things go sour. By investing in such small amounts, they are crossing the Rubicon without getting to enter Rome.

Eighty-one percent of investment into the funds run by Grayscale Investments in the third quarter came from institutional investors, according to the company. Grayscales flagship Bitcoin Trust had assets under management of $1.9 billion at the start of 2020, $4.7 billion by the end of September and $21.1 billion as of Tuesday.

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Bitcoin Will Break Wall Streets Heart - The Wall Street Journal

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Watching the markets with an eye to the main chance, Raymond James strategist Tavis McCourt sees both risk and opportunity in current market conditions. The opportunity, in his opinion, stems from the obvious factors: the Democrats won both Georgia Senate seats in the recent runoff vote, giving the incoming Biden Administration majority support in both Houses of Congress and increasing the odds of meaningful fiscal support getting signed into law in the near term. More importantly, the coronavirus vaccination program is proceeding, and reports are showing that Pfizers vaccine, one of two approved in the US, is effective against the new strain of the virus. A successful vaccination program will speed up the economic recovery, allowing states to loosen lockdown regulations and get people back to work. The risks are also coming from the political and public health realms. The House Democrats have passed articles of impeachment against President Trump, despite the imminent natural closure of his term of office, and that passage reduces the chances of political reconciliation in a heavily polarized environment. And while the COVID strain is matched by current vaccines, there is still a risk that a new strain will develop that is not covered by existing vaccinations which could restart the cycle of lockdowns and economic decline. Another risk McCourt sees, beyond those two, would be a sharp rise in inflation. He doesnt discount that, but sees it as unlikely to happen soon. product/service inflation is only really a possibility AFTER re-openings, so the market feels a bit bullet proof in the very near term, and thus the continued rally, with Dems winning the GA races just adding fuel to the stimulus fire, McCourt noted. Some of McCourts colleagues among the Raymond James analyst cadre are keeping these risks in mind, and putting their imprimatur on strong dividend stocks. Weve looked into Raymond James' recent calls, and using the TipRanks database, weve chosen two stocks with high-yield dividends. These Buy-rated tickers bring a dividend yield of 7%, a strong attraction for investors interested in using the current good times to set up a defensive firewall should the risks materialize. Enterprise Products Partners (EPD) Well start in the energy sector, a business segment long known for both high cash flows and high dividends. Enterprise Products Partners is a midstream company, part of the network that moves hydrocarbon products from the wellheads to the storage farms, refineries, and distribution points. Enterprise controls over 50,000 miles worth of pipelines, shipping terminals on Texas Gulf coast, and storage facilities for 160 million barrels oil and 14 billion cubic feet of natural gas. The company was hurt by low prices and low demand in 1H20, but partially recovered in the second half. Revenues turned around, growing 27% sequentially to reach $6.9 billion in Q3. That number was down year-over-year, slipping 5.4%, but came in more than 6% above the Q3 forecast. Q3 earnings, at 48 cents per share, were just under the forecast, but were up 4% year-over-year and 2% sequentially. EPD has recently declared its 4Q20 dividend distribution, at 45 cents per common share. This is up from the previous payment of 44 cents, and marks the first increase in two years. At $1.80 annualized, the payment yields 7.9%. Among the bulls is Raymond James' Justin Jenkins, who rates EPD a Strong Buy. The analyst gives the stock a $26 price target, which implies a 15% upside from current levels. (To watch Jenkins track record, click here) Backing his bullish stance, Jenkins noted, "In our view, EPD's unique combination of integration, balance sheet strength, and ROIC track record remains best in class. We see EPD as arguably best positioned to withstand the volatile landscape With EPD's footprint, demand gains, project growth, and contracted ramps should more than offset supply headwinds and lower y/y marketing results" Its not often that the analysts all agree on a stock, so when it does happen, take note. EPDs Strong Buy consensus rating is based on a unanimous 9 Buys. The stocks $24.63 average price target suggests an upside of 9% from the current share price of $22.65. (See EPD stock analysis on TipRanks) AT&T, Inc. (T) AT&T is one of the markets instantly recognizable stock. The company is a member in long standing of the S&P 500, and it has reputation as one of the stock markets best dividend payers. AT&T is a true large-cap industry giant, with a market cap of $208 billion and the largest network of mobile and landline phone services in the US. Its acquisition of TimeWarner (now WarnerMedia), in a process running between 2016 and 2018, has given the company a large stake in the mobile content streaming business. AT&T saw revenues and earnings decline in 2020, under pressure from the corona pandemic but the decline was modest, as that same pandemic also put a premium on telecom and networking systems, which tended to support AT&Ts business. Revenues in 3Q20 were $42.3 billion, 5% below the year-ago quarter. On positive notes, free cash flow rose yoy from $11.4 billion to $12.1 billion, and the company reported a net gain of 5.5 million new subscribers. The subscriber growth was driven by the new 5G network rollout and by premium content services. The company held up its reputation as a dividend champ, and has made its most recent dividend declaration for payment in February 2021. The payment, at 52 per common share, is the fifth in a row at current level and annualizes to $2.08, giving a yield of 7.2%. For comparison, the average dividend among tech sector peer companies is only 0.9%. AT&T has kept its dividend strong for the past 12 years. Raymond James analyst Frank Louthan sees AT&T as a classic defensive value stock, and describes Ts current state as one with the bad news baked in. [We] believe there is more that can go right during the next 12 months than can get worse for AT&T. Throw in the fact that shares are heavily shorted, and we believe this is a recipe for upside. Large cap value names are hard to come by, and we think investors who can wait a few months for a mean reversion while locking in a 7% yield should be rewarded for buying AT&T at current levels, Louthan opined. In line with these comments, Louthan rates T an Outperform (i.e. Buy), and his $32 price target implies room for 10% growth from current levels. (To watch Louthans track record, click here) What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 7 Buy ratings, 6 Holds and 2 Sells add up to a Moderate Buy consensus. In addition, the $31.54 average price target indicates ~9% upside potential. (See AT&T stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Bitcoin Cores Latest Release Is Out: Heres Whats in It - Yahoo Finance

TipRanks

Watching the markets with an eye to the main chance, Raymond James strategist Tavis McCourt sees both risk and opportunity in current market conditions. The opportunity, in his opinion, stems from the obvious factors: the Democrats won both Georgia Senate seats in the recent runoff vote, giving the incoming Biden Administration majority support in both Houses of Congress and increasing the odds of meaningful fiscal support getting signed into law in the near term. More importantly, the coronavirus vaccination program is proceeding, and reports are showing that Pfizers vaccine, one of two approved in the US, is effective against the new strain of the virus. A successful vaccination program will speed up the economic recovery, allowing states to loosen lockdown regulations and get people back to work. The risks are also coming from the political and public health realms. The House Democrats have passed articles of impeachment against President Trump, despite the imminent natural closure of his term of office, and that passage reduces the chances of political reconciliation in a heavily polarized environment. And while the COVID strain is matched by current vaccines, there is still a risk that a new strain will develop that is not covered by existing vaccinations which could restart the cycle of lockdowns and economic decline. Another risk McCourt sees, beyond those two, would be a sharp rise in inflation. He doesnt discount that, but sees it as unlikely to happen soon. product/service inflation is only really a possibility AFTER re-openings, so the market feels a bit bullet proof in the very near term, and thus the continued rally, with Dems winning the GA races just adding fuel to the stimulus fire, McCourt noted. Some of McCourts colleagues among the Raymond James analyst cadre are keeping these risks in mind, and putting their imprimatur on strong dividend stocks. Weve looked into Raymond James' recent calls, and using the TipRanks database, weve chosen two stocks with high-yield dividends. These Buy-rated tickers bring a dividend yield of 7%, a strong attraction for investors interested in using the current good times to set up a defensive firewall should the risks materialize. Enterprise Products Partners (EPD) Well start in the energy sector, a business segment long known for both high cash flows and high dividends. Enterprise Products Partners is a midstream company, part of the network that moves hydrocarbon products from the wellheads to the storage farms, refineries, and distribution points. Enterprise controls over 50,000 miles worth of pipelines, shipping terminals on Texas Gulf coast, and storage facilities for 160 million barrels oil and 14 billion cubic feet of natural gas. The company was hurt by low prices and low demand in 1H20, but partially recovered in the second half. Revenues turned around, growing 27% sequentially to reach $6.9 billion in Q3. That number was down year-over-year, slipping 5.4%, but came in more than 6% above the Q3 forecast. Q3 earnings, at 48 cents per share, were just under the forecast, but were up 4% year-over-year and 2% sequentially. EPD has recently declared its 4Q20 dividend distribution, at 45 cents per common share. This is up from the previous payment of 44 cents, and marks the first increase in two years. At $1.80 annualized, the payment yields 7.9%. Among the bulls is Raymond James' Justin Jenkins, who rates EPD a Strong Buy. The analyst gives the stock a $26 price target, which implies a 15% upside from current levels. (To watch Jenkins track record, click here) Backing his bullish stance, Jenkins noted, "In our view, EPD's unique combination of integration, balance sheet strength, and ROIC track record remains best in class. We see EPD as arguably best positioned to withstand the volatile landscape With EPD's footprint, demand gains, project growth, and contracted ramps should more than offset supply headwinds and lower y/y marketing results" Its not often that the analysts all agree on a stock, so when it does happen, take note. EPDs Strong Buy consensus rating is based on a unanimous 9 Buys. The stocks $24.63 average price target suggests an upside of 9% from the current share price of $22.65. (See EPD stock analysis on TipRanks) AT&T, Inc. (T) AT&T is one of the markets instantly recognizable stock. The company is a member in long standing of the S&P 500, and it has reputation as one of the stock markets best dividend payers. AT&T is a true large-cap industry giant, with a market cap of $208 billion and the largest network of mobile and landline phone services in the US. Its acquisition of TimeWarner (now WarnerMedia), in a process running between 2016 and 2018, has given the company a large stake in the mobile content streaming business. AT&T saw revenues and earnings decline in 2020, under pressure from the corona pandemic but the decline was modest, as that same pandemic also put a premium on telecom and networking systems, which tended to support AT&Ts business. Revenues in 3Q20 were $42.3 billion, 5% below the year-ago quarter. On positive notes, free cash flow rose yoy from $11.4 billion to $12.1 billion, and the company reported a net gain of 5.5 million new subscribers. The subscriber growth was driven by the new 5G network rollout and by premium content services. The company held up its reputation as a dividend champ, and has made its most recent dividend declaration for payment in February 2021. The payment, at 52 per common share, is the fifth in a row at current level and annualizes to $2.08, giving a yield of 7.2%. For comparison, the average dividend among tech sector peer companies is only 0.9%. AT&T has kept its dividend strong for the past 12 years. Raymond James analyst Frank Louthan sees AT&T as a classic defensive value stock, and describes Ts current state as one with the bad news baked in. [We] believe there is more that can go right during the next 12 months than can get worse for AT&T. Throw in the fact that shares are heavily shorted, and we believe this is a recipe for upside. Large cap value names are hard to come by, and we think investors who can wait a few months for a mean reversion while locking in a 7% yield should be rewarded for buying AT&T at current levels, Louthan opined. In line with these comments, Louthan rates T an Outperform (i.e. Buy), and his $32 price target implies room for 10% growth from current levels. (To watch Louthans track record, click here) What does the rest of the Street think? Looking at the consensus breakdown, opinions from other analysts are more spread out. 7 Buy ratings, 6 Holds and 2 Sells add up to a Moderate Buy consensus. In addition, the $31.54 average price target indicates ~9% upside potential. (See AT&T stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Excerpt from:
Bitcoin Can Soar or Crash, but Square (SQ) Will Still Benefit, Says Analyst - Yahoo Finance

Edward Yardeni is concerned the market will get smoked.

The long-time bull, who spent decades running investment strategy for firms including Prudential and Deutsche Bank,is comparing Wall Street euphoria to the height of the dot-com bubble in 1999.

"The Nasdaq from late 1998 to early 2000 went up over 200%. Now, we're up almost 100%, and we may very well be on that same track," the Yardeni Research president told CNBC's "Trading Nation" on Friday. "Everything I'm looking at points to a melt-up."

The tech-heavy Nasdaq closed the week at a record high of 13,201.97. Yardeni is also highlighting bitcoin's meteoric rise as an example of extreme frothiness. It was up 36% in the first five trading days of the year and is above 300% over the past six months.

"It's just part of the bull market in everything," he said. "It's very important whether you're in or not in bitcoin to just stare at the chart, and realize when it's going straight up it's certainly a sign of exuberance, of speculative excess."

Despite his warning, Yardeni isn't sounding the alarm yet. He's optimistic on the economic recovery due to coronavirus vaccines and the fiscal and monetary landscape.

"The first half of this year, the blue wave will probably continue to be bullish," he noted. "We're going to get more government spending. We're going to have the Federal Reserve front a lot of that government spending through quantitative easing. I think interest rates will remain pretty low."

Plus, Yardeni believes widespread distribution of the coronavirus vaccine later this year will help normalize the economy in the final six months of 2021.

But that's where his forecast gets cautious. A booming economy, according to Yardeni, will lead to inflation risks due to the massive amounts of stimulus and demand increases.

"In the second half of the year, we may be on the lookout for some consumer price inflation which would not be good for overvalued assets," he said.

According to Yardeni, the Fed may also be challenged to keep the benchmark 10-year Treasury Note yield around 1%.

"We do see upward pressure on the bond yield. I think at some point the Fed says 'Maybe bond yields should be higher since the economy is doing well,'" said Yardeni.

For now, Yardeni is closely watching fundamentals and market indicators. He hopes they disprove his market melt-up thesis because they typically end in meltdowns.

"This market keeps stampeding ahead of my forecasts," Yardeni said. "I hope we get to 4,300, my S&P 500 [year-end] target, in a leisurely fashion."

On Friday, the S&P 500 index closed at an all-time highs of 3,824.68.

Disclaimer

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From tech to bitcoin, long-time bull Ed Yardeni worries a meltdown will strike the market - CNBC

Bitcoin on a mound of gold.

bodnarchuk | iStock Editorial | Getty Images

Bitcoin's remarkable ascent past $30,000 has stunned Wall Street and one of the biggest U.S. investment banks thinks the digital currency could have much further to run.

In a note published Monday, JPMorgan made a bold long-term price target for bitcoin, claiming the red-hot cryptocurrency could rally as high as $146,000 as it competes with gold as an "alternative" currency. But, there's a catch.

Bitcoin's market cap calculated by multiplying the price by the total number of coins in circulation currently stands at over $575 billion. According to JPMorgan, it would have to climb by 4.6 times to match the $2.7 trillion of private sector gold investment.

For bitcoin's market value to reach that level, its price volatility would need to drop substantially to give institutional investors the confidence required to make large bets. Bitcoin is known for its wild volatility, and it fell sharply Monday to briefly dip below $30,000 just days after reaching that level.

Bitcoin was up 1% in the last 24 hours Tuesday, trading at around $31,720, according to data from crypto market data provider Coin Metrics.

"This long term upside based on an equalization of the market cap of bitcoin to that of gold for investment purposes is conditional on the volatility of bitcoin converging to that of gold over the long term," JPMorgan's strategists wrote.

"The reason is that, for most institutional investors, the volatility of each class matters in terms of portfolio risk management and the higher the volatility of an asset class, the higher the risk capital consumed by this asset class."

Crypto bulls have said that bitcoin's recent rally is markedly different to a late 2017 bubble that saw it zoom close to $20,000 a coin, only to sink as low as $3,122 the next year. That's because institutional investors are starting to buy in, and this is seen as a crucial confidence boost for the digital asset.

Skeptics view bitcoin's 2020 rally which saw it advance more than 300% as reminiscent of the frothy 2017 market action. They see it as a speculative asset with no intrinsic value and a bubble that is likely to burst at some point.

Still, JPMorgan says there's "little doubt that the institutional flow impulse into bitcoin is what distinguishes 2020 from 2017."

"A convergence in volatilities between bitcoin and gold is unlikely to happen quickly and is in our mind a multi-year process. This implies that the above $146k theoretical bitcoin price target should be considered as a long-term target, and thus an unsustainable price target for this year."

Many institutional investors are using investment vehicles like Grayscale's Bitcoin Trust as a means of buying into bitcoin. According to JPMorgan, more than $3 billion has flowed into the Grayscale Bitcoin Trust since mid-October while gold ETFs have bled $7 billion.

Some investors may find JPMorgan's lofty price target for bitcoin quite jarring. The bank's CEO Jamie Dimon once called the cryptocurrency a "fraud" and said bitcoin mania is reminiscent of the tulip bulb craze in the 17th century.

Dimon is, however, more supportive of the underlying blockchain technology that served as the foundation for digital currencies like bitcoin. JPMorgan has invested heavily in the space, creating its own digital currency called JPM Coin and establishing a new unit devoted to blockchain.

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JPMorgan says bitcoin could rise to $146,000 long term as it competes with gold - CNBC

1. Bitcoin (BTC USD) Latest News, Quote: Prices Sink With XRP, Ether  Bloomberg
2. Bitcoin falls as record-breaking rally loses steam  CNBC
3. Bitcoin plummets 17% for its biggest drop since March as its record-shattering rally stumbles  Business Insider
4. Bitcoin Suddenly Drops 13% as Altcoins Continue to Rise  Yahoo Finance
5. Bitcoin hits record high on 12th anniversary of its creation  The Guardian
6. View Full Coverage on Google News

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Bitcoin (BTC USD) Latest News, Quote: Prices Sink With XRP, Ether - Bloomberg

SINGAPORE Bitcoin's record-smashing rally seen in recent weeks was partly driven by the entry of more big, institutional investors into the market, according to PwC's global crypto leader Henri Arslanian.

The digital currency surged over $30,000 for the first time on Saturday and had advanced more than 300% in 2020, Reuters reported. On Monday afternoon in Asia, Bitcoin traded at around $32,668.93, according to CoinDesk.

The cryptocurrency has been around for a little over a decade, but it only began to rise in popularity among mainstream institutional investors last year. Crypto bulls have said that bitcoin is seen as a hedge against inflation, similar to gold.

"When you look at this bitcoin rally that we have been seeing in the last couple of weeks and months, really, there's two big elements driving it. One is the continuous entry of institutional players," Arslanian said Monday on CNBC's "Street Signs Asia."

Bitcoin's price resurgence last year was in part fueled by well-known Wall Street billionaires publicly backing the cryptocurrency. Analysts said their endorsement gave confidence to otherwise skeptical, mainstream investors. Investors such as Paul Tudor JonesandStanley Druckenmillerhave both put money in bitcoin and pointed out its potential as an inflation hedge.

studioEAST | Getty Images

Large financial companies likePayPaland Fidelity have also made moves in the cryptocurrency while the likes ofSquareandMicroStrategyhave used their own balance sheets to buy bitcoin.

Arslanian said he expects that trend to continue over the coming months, pointing out that there are various instruments now that allow institutional players to get exposed to bitcoin. "But also there's a lot of regulated players as well. This was not the case a couple of years ago," he said.

A second development driving the current bitcoin rally is retail investors and their fear of missing out, according to Arslanian. He said a lot more people today have accounts on crypto exchanges than before as buying cryptocurrencies is easier now than before.

"With these two big elements driving it, there's a lot of momentum going on in the space. There's a lot of optimism in the crypto markets as well," he said.

Bitcoin's recent performance is reminiscent of its frenzied rally to nearly $20,000 in 2017, which was followed by a sharp pullback in 2018, wiping out billions of dollars in the market capitalization of major cryptocurrencies. But crypto fans say the current rally is different as it is driven by institutional buying rather than retail speculation.

For his part, Arslanian said one big difference between this rally and the one seen in 2017 is clarity in regulations, which was scarce back then. Today, he said, most regulators around the world have people working on crypto internally. Many of the large financial centers have "pretty good regulatory clarity on crypto markets and that is giving comfort, not only to institutional investors but also retail investors as well coming in the market," he said.

While Arslanian declined to put a price target on bitcoin for this year, he said the current momentum remains optimistic. "More than the price of bitcoin, I'm watching the number of new institutional players coming in, which I think have an outsized impact on the markets," he added.

CNBC's Ryan Browne contributed to this report.

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Bitcoin is breaking records because bigger investors are buying it now, says PwC - CNBC

getty

Just now I sold all my bitcoin (BTC) and ether (ETH), bar some bits and bobs to play in the DeFi pool while I collect my wits. It has been a wild ride.

The weekend was crazy, in a good way, and as someone who collected most of their crypto sub-$10,000 both highly profitable and extremely stressful. Dont believe for one minute Im a cool cucumber that can see huge sums flicker past without the merest flutter of an eyebrow. I would not a great poker player make.

Do I think that this is it for this boom? My answer is: this is enough for me. I dont want to try and get the top.

I feel there is a possibility of bitcoin running to $40,000-$60,000 during this move but my crypto was breaking my golden rule of diversification by miles.

I prefer now to sit back and lament my missed opportunity than face the prospect of a crash wiping out a huge chunk of paper profits. My utter confidence in the next BTC rally upwards has melted away, so now is the time to say farewell.

Yesterday I closed all my leery DeFi leveraged ether I had planned to capture at $750. At $1,050 the profit is even sweeter. I pocketed the balance and left the tokens parked yield farming away on Aave and Compound, ready for another campaign. Ill miss the 6% interest from Blockfi on the Ethereum but when the market goes ape, 6% a year is just noise. Ill be back there if I return to accumulation. Sites like blockfi.com are the future of saving and financial services. While the regulators and the banks will do everything possible to slow them down, the march of crypto-finance is unstoppable

Bulls get feed, bears get feed, pigs get slaughtered, so I keep reminding myself. To me it makes sense for bitcoin to go to twice its previous high, which would mean a peak of $40,000. Likewise I think it makes sense for ether to pass its previous high and power on to perhaps $1,800 and as I write I am having sellers remorse, but that is to be expected.

Bitcoin and ether have been great lovers and it pains me to sail away from their golden shores. Hanging on for the last vertical move kills the speculator time and time again. As they become more and more greedy for that final killing, they risk catastrophic losses as aptly shown yesterday (January 4, 2021) with BTCs precipitate fall to under $28,000 before a strong recovery. My intestines say No, stop the music.

Bitcoin will be worth $1 trillion but perhaps not this halvening.

I can draw these charts and you have seen them:

This is where I think bitcoin's top is

...and this is where I think the likely top is.

But I also predicted this one which now says, SELL as it has come to pass:

My previous prediction has come to pass, so I think it is time to sell

And the chart to $28,000 I posted is sobering because it paused there before roaring on:

Bitcoin paused here before roaring on

But voodoo charting aside, the law of diversification is the key one. You should never hold a single position that you cannot bear to go sour. Anything above 5% of your net wealth is getting too large, and anything over 10% needs a very careful look. As it spirals above that you dont need financial advice, you need psychotherapy.

Having been acquiring BTC and ETH for two years at a fairly good tempo, the move from $8,000 to $32,000 has forced me to leave the field to others. Good luck and $40,000 to those more stalwart than me.

I will now shift my focus to DeFi where projects will grow like weeds and some will become Sequoia. I will be able to spread my exposure out from there and be diversified within the crypto universe and ride the next decade of amazing crypto-developments without bearing the risk of one instrument carrying all the exposure.

Good luck hodlers, I wish you 1 satoshi = 1c and if BTC ever gets back to $10,000-$15,000 Ill join you again, meanwhile Ill be romping with the DeFi Degens. If bitcoin does fall back sometime in the future, Ill be back because bitcoin will see much higher highs but for me now, the medium-term risk reward is wrong.

Meanwhile gold is on the move and more games are afoot in these crazy times. By the way, I hope you made a packet with the help of my crypto columns it isnt over, its just the beginning.

Clem Chambers is the CEO of private investors websiteADVFN.comand author of 101 Ways to Pick Stock Market Winners andTrading Cryptocurrencies: A Beginners Guide.

Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018.

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Bitcoin: Time To Exit - Forbes