Bitcoin price is now retreating from mid USD 9,000 levels, as we now see it descending to daily lows of about USD 9,014, just as North American traders enter the fray.
This means Bitcoin has dropped about USD 400 from its high (CoinDesk) of USD 9,485. Altcoins are also, predictably, shedding value off their previous days of gains, with all but a handful of alts partaking in the sea of red charts.
Peter Schiff, probably the most famous and covered gold advocate of recent times, will be one of the happier people with this development. This only a day after we found him taking out his frustrations on so-called Bitcoin whales, whom he accuses of using manipulative tactics on the crypto markets to squeeze out retail investors.
Schiff, who swears by the yellow precious metal and has dismissive ideas of Bitcoin, ranted on Twitter that Bitcoin holders will not sell for as long as they continue to believe that Bitcoin will “moon”:
“Bitcoin whales get rich by selling now to realize their paper gains before a market crash wipes them out. The whales must make sure the hodlers don’t lose faith and cash out so that they can cash in!”
This week, Bitcoin gained an impressive 30% gain in just two days over gold, amid an incredible growth trend for the entire market, on the way recording its highest ever intraday gain since 2011 at 42%. Schiff would have been one of the people most disappointed by this development, since he is waiting for Bitcoin to fall from its current position.
Bitcoin hodlers won't sell as they believe they'll get rich when #Bitcoin moons. Bitcoin whales get rich by selling now to realize their paper gains before a market crash wipes them out. The whales must make sure the hodlers don't lose faith and cash out so that they can cash in!
— Peter Schiff (@PeterSchiff) October 29, 2019
Comments came in thick and fast, as per usual, with Twitter followers noting that Bitcoin wasn’t the only asset to demonstrate this kind of behavior, while others more cynical said gold was the only one immune to market manipulations.
The day of his Tweet, gold lingered in a 1-week low with investors diversifying out to wider markets, with many banking on a new trade deal between the US and China. Of course, if the Federal Reserve does what most expect, cutting interest rates, gold could benefit from this via reduced opportunity costs.
Meanwhile, Schiff may have more to complain about as bullish news emerges from the speculator space. In response to weeks of supposed “death cross” indicators appearing on Bitcoin charts, famous crypto analyst filbfilb shared an indicator appearing on short term charts. He says that the notion that Bitcoin coming down from its recent highs above USD 10,000 is bearish, is not true. Instead, based on moving averages in the short term, technical signals are giving an overall indication of bullish trends. He says:
“Sure the 50/200 DMA $btc death cross is getting everyone super bearish but End of Nov/ Start of Dec the 50/100 WMA is due to cross which is far more significant.”
Referencing his yearly outlook shared earlier, he also said that everything regarding Bitcoin price action was going “according to plan“, since he said from now until May next year, Bitcoin would trade between a range of USD 7,500 and USD 10,000. After that, most analysts believe that Bitcoin would be ready for yet another parabolic era, as halving of block rewards for the Bitcoin network also occurs during that time, prompting demand and scarcity to boost price upwards.
And now, even the corporate institution is bullish on crypto, or at least, for central bank versions of them called central bank digital currency (CBDC).
According to IBM, in a joint research statement with the Official Monetary and Financial Institutions Forum (OMFIF), global central banks are conceding that CBDCs would actually be a better alternative to cash in some use cases, such as where point of sale merchants face trouble with network connection.
The ‘Retail CBDCs: The next payments frontier’ report apparently took data and respondes from 13 “advanced economies and 10 emerging markets” during the third quarter of 2019. It concluded:
“Central banks are responding to the reality that digital currencies, either privately or publicly issued, will soon be part of the global monetary system, and that it is in their interest to ensure they are neither left behind nor displaced.”
The belief is so strong, they think that we will even see the first CBDC by 2024, saying that this pioneer would either be “a complement to or as a substitute for notes and coins”. It even believes that a G20 central bank will be unlikely to be the first. Instead, “a smaller and less complex economy” will be choosing CBDCs to drive resilience to a national payments system or to promote financial inclusion.
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