Home Coins Bitcoin (BTC) Bitcoin price holds strong amid negative news blitz, says CoinShares report

Bitcoin price holds strong amid negative news blitz, says CoinShares report

- Advertisement -

Blockchain headlines have been awash with negative news tidbits lately. KuCoin suffered a major hack on Sept. 26; two United States regulatory bodies went after BitMEX on Oct. 1; the United Kingdom’s Financial Conduct Authority, or FCA, banned crypto derivatives on Oct. 6; and news came to light that U.S. stimulus payment talks had stalled around Oct 9.

Bitcoin’s (BTC) price has appeared largely unfazed, however, despite this array of seemingly unfavorable stories. This could be indicative of upside potential in the coming weeks, according to a report Monday from crypto investment solution company CoinShares. 

“It tells me holders are not nervous and leverage is low — a theory supported by wallet activity and traffic — and skews my short term price expectations from neutral to positive,” wrote Danny Masters, executive chairman of CoinShares. 

In the days following each of these events, Bitcoin’s price mostly held, dropping only slightly in comparison with its usual price activity, and often rising shortly thereafter.

“In my 30 years in trading my top golden rule was to act when the news was not matched by price movement,” Masters wrote. “Having been around crypto during MtGox, the China ban, Bitfinex Hack, Trump comments and many of the other market-smashing stories that punctuate bitcoin’s history I was struck by the lack of negative price movement, particularly around BitMEX,” Masters added after noting the FCA and BitMEX events as recent, potentially bearish happenings. 

Bitcoin has gained a number of large mainstream participants in the past several months, partly in an effort to preserve these speculators’ capital against inflation. Masters details these mainstream entrants in the first part of the report, mentioning Square and MicroStrategy as two examples. MicroStrategy allocated $425 million of its treasury reserves to Bitcoin between August and September. Square picked up roughly $50 million in Bitcoin at the beginning of October.

“We think these actions are but the beginning of a treasury diversification strategy which will appeal to technology and payments companies around the globe,” Masters wrote.

Earlier in the year, billionaire hedge fund manager Paul Tudor Jones placed his own heavy bet on Bitcoin as a hedge against inflation. 

First published here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,558FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.21
GBP
1.34
CHF
1.12
NOK
0.11
JPY
0.01
CAD
0.78
AUD
0.74

Most Popular

Ripple has sold $15M of its stock in MoneyGram

Ripple Labs has sold a huge chunk of its 2019 investment in MoneyGram. Per a Friday night filing with the Securities and Exchange Commission...

Coinbase becomes a founding member of Square’s crypto patent group

The Cryptocurrency Open Patent Alliance, or COPA, headed up by finance company Square, recently picked up Coinbase as a cornerstone participant. Square unveiled...
bitcoin
Bitcoin (BTC) $ 18,900.28
ethereum
Ethereum (ETH) $ 580.16
ripple
XRP (XRP) $ 0.579743
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 282.69
bitcoin-cash-sv
Bitcoin SV (BSV) $ 182.03
litecoin
Litecoin (LTC) $ 81.59
eos
EOS (EOS) $ 2.91
binancecoin
Binance Coin (BNB) $ 29.23
okb
OKB (OKB) $ 5.11
tezos
Tezos (XTZ) $ 2.27
leo-token
LEO Token (LEO) $ 1.37
cardano
Cardano (ADA) $ 0.153643
monero
Monero (XMR) $ 127.90
stellar
Stellar (XLM) $ 0.168080
chainlink
Chainlink (LINK) $ 12.96
huobi-token
Huobi Token (HT) $ 3.90
tron
TRON (TRX) $ 0.029939
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 99.39
neo
NEO (NEO) $ 17.70
iota
IOTA (MIOTA) $ 0.333483
nem
NEM (XEM) $ 0.262532
zcash
Zcash (ZEC) $ 70.43
maker
Maker (MKR) $ 525.06
paxos-standard
Paxos Standard (PAX) $ 1.02
ethereum-classic
Ethereum Classic (ETC) $ 6.07
vechain
VeChain (VET) $ 0.016404
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 4.39
kucoin-shares
KuCoin Shares (KCS) $ 0.819343
waves
Waves (WAVES) $ 7.69