Author Archives: Bradley Taylor

90% Of Fidelity’s Biggest Clients Are Asking About Bitcoin

Fidelity Investments’ digital assets division has made Bitcoin its main focus. Christine Sandler, Fidelity’s head of marketing and sales, stated that 90% of its largest clients are asking about Bitcoin in an interview with The Boston Globe.

Fidelity’s president of digital asset business, Tom Jessop, stated to the Boston Globe, that Fidelity is making a long-term bet on the development of a new type of financial infrastructure around Bitcoin.

Jessop stated that Bitcoin is becoming a more popular asset in institutions.

Jessop answered a question about altcoin support and said, “I don’t believe we’ll ever become the most comprehensive provider in terms of asset coverage.” Fidelity currently mines Bitcoin and custodies it for institutions to ensure its safety, soundness, and security.

Christine Sandler said, “We’re dealing primarily with traditional investors, so the entry vehicle into this space is largely Bitcoin.” But she also stated that altcoins such as ethereum are not nearly as popular as bitcoin.

Jessop stated that institutions are increasingly using Bitcoin to hedge against inflation.

Jessop pointed out that the sharply rising Bitcoin price piqued interest in high-profile investors like Paul Tudor Jones and Stanley Druckenmiller as a store value. ‘That’s when the match to the bonfire was set.

Jessop expressed optimism regarding the recent push for regulation of Bitcoin, as long as it is not overregulated. He said that he was supportive of regulation. However, regulations must be proportionate to other asset classes in order for this asset class to grow and investors to trust what he and others are doing. While we don’t believe it should be excessively regulated, we do think it should be as consistent with other financial products purchased by consumers and institutions today.

Fidelity applied for approval of a Bitcoin ETF in March, as many other financial institutions did. This was due to the increasing demand for investment vehicles that have Bitcoin price exposure in the U.S.

Fidelity has been mining Bitcoins since 2015. According to the report, its operation now relies primarily on hydropower from Canada and other renewables. The scale of Fidelity’s bitcoin mining operation is unknown, but it is reportedly small yet profitable.

Youtube Superstar KSI ‘JJ’ Says ‘I’m Really Into Crypto, Bitcoin Is the Future

In an interview published Friday by GQ magazine, KSI, a well-known rapper and Youtuber, discussed bitcoin and cryptocurrency.

KSI is Olajide Olayinka Wilkins Olatunji’s real name. He is also known by the nickname JJ. The Sunday Times ranked him second in its 2019 list of top 100 U.K influencers. He is also part the British Youtube group, the Sidemen.

KSI responded to a question on what he would do if he was prime minister.

I would give everybody PS100 worth bitcoin. It’s like a Bitcoin stimulus package for everyone. Crypto is something I am passionate about. Bitcoin is my future.

He said, “It’s certainly going to be long-term, but in ten year’s time, people who invested” would be laughing.

KSI then compared bitcoin to fiat currency. “Just think about how inflationary money is compared to bitcoin. It is not. He emphasized that there is a fixed amount to bitcoin. You can’t increase it and that it has value.

It seems like many people don’t see that. They are looking for quick cash like “Oh, I want in and out.” This is a long-term thing, and I’m here to enjoy the ride.

Last month, he shared the story of how he made millions of pounds investing in cryptocurrencies, including bitcoin, and ‘lost it all’ when the crypto market ‘crashed.’ He believes that eventually, you will get a $100,000 bitcoin and a $500,000 Bitcoin, as well as a $1,000,000 bitcoin. It is going to happen.

Governments Need to Stop Dismissing Crypto as Illicit Payments and Reckless Speculation, Says El-Erian

Mohamed El-Erian, President of Queens College at Cambridge University, has called on the crypto community and western governments for cooperation.

This Egyptian-American businessman is also the chief economic advisor at Allianz. Allianz is the corporate parent to PIMCO, which is one of the largest investment management companies. He was previously CEO and co-chief investor officer. He was also elected chair of Gramercy Funds Management last year, an investment firm specializing in Emerging Markets.

El-Erian wrote this opinion piece in the Financial Times, published Thursday.

More western governments must stop dismissing crypto as a mixture of illegal payments schemes and reckless financial speculation.

He advised that they be more open to accepting the innovations of cryptocurrency and channeling them in the best direction for finance, society, and the economy.

He spoke out about this topic in a Yahoo Finance interview on Friday. He stated that both the crypto world as well as governments must come together to speak the same language. “We have important innovations in the crypto revolution that have to do the payment system. We must take this seriously.

He said, “Why must we take it seriously?” There are two reasons. It can improve financial intermediation efficiency. If we don’t pay attention, China may take a top-down approach and start to set the agenda.

Advisor also suggested that crypto supporters should be more involved in regulatory and energy issues. He suggested that they move away from a zero-sum mindset, where their gains are limited to the losses of the established financial systems.

Both sides of the crypto-world in the west might find their futures determined by the actions and intentions of a China that is faster moving than them if they don’t adopt a more cooperative approach.

El-Erian stated that the crypto community must be concerned about illegal payments, money laundering and energy use.

He explained that many countries, including the U.S. are skeptical about cryptocurrency. There are two possible risks if the governments and the crypto community don’t cooperate. The Allianz advisor explained:

Internal risk is that the government may see more adoption by the private sectors. It’s something we are already seeing every day so it’s not going away. China isn’t waiting.

El-Erian pointed out that China already has a decided on how digital money should look. Why? It gives it regional access to payment platforms. It also gives it access data. We must take it seriously or we will lose the narrative.

FOREX-Dollar, yen in retreat as risk sentiment revives, Musk lifts bitcoin

After recovering from multi-month highs, the safe-harbor U.S. dollar (yen) and yen were on the back foot Thursday. This was despite a recovery of risk appetite due to strong earnings that lifted Wall Street stocks.

After Tesla Inc TSLA, cryptocurrencies rallied. CEO Elon Musk stated that the company would most likely resume accepting bitcoin payments.

After a 3 1/2 month high of 93.194, the dollar index =USD, which measures currency against six major peers, fell to 92.810 on Wednesday.

The yen traded at 130.045 for euro EURJPY=EBS after a nearly four-month high of 128.610 earlier in the week and at 81.00 to Australia’s dollar AUDJPY=EBS after a five-month peak of 79.55.

Tapas Strickland, a National Australia Bank analyst, wrote that strong earnings had swept away Delta concerns from the U.S.

He stated that the consensus was that the Delta strain does not pose an immediate threat to recovery. This delay will be for three months, as countries increase vaccinations in response.

Sterling GBP=D3 traded for $1.3708, after recovering from a 5 1/2 month trough of $1.35725 on Tuesday. This was despite rising Delta variants cases in Britain, and confusion over the lifting of restrictions in England.

The Aussie AUD=D3 traded at $0.7350 after falling to $0.72895 eight months ago. This was despite half of Australia being under lockdown.

The euro EUR=EBS was at $1.1789. This is an increase from Wednesday’s 3 1/2-month low of $1.1752, ahead of the closely watched European Central Bank policy announcement later in the day.

The first changes in strategy will be made by policymakers. They are likely to promise a longer period of stimulus to fulfill their commitment to increase inflation.

Analysts believe that ECB dovishness will weaken the euro in the medium-term.

In a research note, Carol Kong and Kim Mundy, strategists at Commonwealth Bank of Australia, wrote that ‘on balance, the ECB’s new inflation target suggests monetary policies will remain ultra-accommodative over an even longer time’. This will be a headwind to the euro.

“Indeed we expect that the ECB is one of the last central bank under our coverage to tighten its policy.”

Bitcoin BTC=BTSP posted Wednesday’s 7.9% spike – the largest since June – to trade at $32,200.

After a 12% rise, Rival ether ETH=BTSP traded below $2,000

Are Bitcoin Prices Heading For Intense Volatility?

Bitcoin prices have been in a severe slump lately. They trade within a narrow range for many weeks.

The digital currency has remained between $30,000 to $42,000 since May end, coinDesk figures reveal.

Despite this, market observers believe that the digital currency could not only break out of its current range but also experience significant upside.

[Ed Note: Investing cryptocoins and tokens is highly risky as the market is not regulated. It is possible to lose all of your investment.

Oliver von Landsberg–Sadie, CEO of the payments company BCB Group recently spoke out.

He stated that all the analysis on-chain suggests that we are at the end of a slingshot. CoinDesk.

“It’s quiet right now, but don’t confuse that with lack of interest.”

Potentially Exorbitant Gains

Scott Melker, a crypto analyst and investor, was kind enough to share his thoughts.

He noted that the Bitcoin price had been steadily consolidating between 42K to 30K for more than 8 weeks with decreasing volume, volatility and liquidity.

The expected growth in volume and volatility when an asset’s price consolidates is greater the longer it takes. This has been proven numerous times with Bitcoin so we expect that the next move is explosive,” said Melker.

“On-chain analysis shows that supply is being transferred between impatient speculators and Bitcoin whales with large bitcoin wallets, with new wallets sold and older, larger wallets bought.”

“This theory suggests that smart money is building wealth ahead of the next big move to the upside.”

Jake Wujastyk (chief market analyst at TrendSpider) offered a different point of view. He stated that:

“I disagree in the short term. I believe the tension is to the downside right now, as Bitcoin holders need to surrender to reset the price.

“The anchored VWAP at the covid lows points towards a level of $27k above to be watched out for the short-term.

He said, “Based on historical seasonality, next month will be one of the most difficult months in the year with only 20% of August’s win rate over the past 5 years,”

Calculating Probabilities

Jeff Dorman, chief investor officer at asset manager Arca offered a third perspective.

“Bitcoin” is a binary option. He stated that it is either worth $0 or worth $10 trillion, which would translate to roughly $500k/BTC.

“Everything in-between is just a path function that depends on the probability and timing of hitting one of these extremes.”

Dorman stated that earlier this year, these probabilities rose as inflation talk increased, corporate treasurers bought, and Elon Musk gave confidence to retail traders’.

He stated that “Over the past three month, these probabilities fell as Elon pulled away, ESG fear sprang up and China cracked down.”

“Traders have the freedom to use whatever mumbo-jumbo about ‘tension’ or ‘breakouts they like, but it doesn’t really matter compared with how you evaluate probabilities.