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Bitcoin’s 7-Day Charts Flash Green: Are Things Looking Up for BTC?

Bitcoin’s 7-Day Charts Flash Green: Are Things Looking Up for BTC?

Following a significant haircut in May, the price of Bitcoin has been meandering between $30K and $40K for the better part of a month. While some analysts are relieved at the fact that Bitcoin has not crashed through the $30K support line, and, heck, may even be building momentum to move back above $40K, others are not so sure about the future of BTC.

On the other hand, Bitcoin’s 7-day chart appears to have crossed into green territory for the first time in a great while. At press time, BTC’s 24-hour gains were sitting at roughly 2.6 per cent, while the seven-day price chart showed gains of 1.4 per cent.

Some Good News for Bitcoin

Additionally, Bitcoin has seen a bit of positive news in recent weeks that may be bolstering its price after it collapsed in May. On Wednesday, the nation of El Salvador became the first country in the world to adopt bitcoin as legal tender.

Michael Sonnenshein, the Chief Executive of Grayscale Investments, said on CNBC’s ‘ETF Edge’ earlier this week that: “As we think about nation states and central banks exploring digital currencies, we’re not surprised to see places that have historically relied on the dollar or folks who have experienced hyperinflation exploring the potential merits of digital currency.”

“We would not be surprised to see states and central banks beginning to think about adding bitcoin and other crypto to their balance sheet.”

Additionally, the conclusion of the Miami Bitcoin conference seems to have pumped a new bout of enthusiasm into the cryptocurrency industry (though positive COVID test results may be a mitigating factor).

Speaking of the event on the same episode of ‘ETF Edge’, Osprey Funds founder and CEO, Greg King said that: “It feels a lot like 2017 felt but with a broader base. It’s taking the movement forward from where it’s been over the last 12 years.”

Beyond El Salvador and Miami, a group of North American Bitcoin mining companies formally debuted The Bitcoin Mining Council on Thursday with the goal of addressing concerns about the amount of energy used in cryptocurrencies.

“The Bitcoin Mining Council is a voluntary and open forum of Bitcoin miners committed to the network and its core principles,” MicroStrategy Inc. Chief Executive Officer, Michael Saylor, who helped to form the association, wrote on Twitter, with a call to “Join us.”

What Does Bitcoin’s Stock-to-Flow Model Say?

Bitcoin’s stock-to-flow model has hit a rebound level that has not been seen since Bitcoin’s all-time high in 2017, a factor that some investors and market participants could find relieving after a month of price stagnancy.

“It’s a long time since [Bitcoin’s] price has been this far below [the stock-to-flow] line,” wrote Philip Swift, Creator of LookIntoBitcoin, on Twitter. “The Divergence oscillator at [the] bottom of the chart is highlighted by the orange dotted line and arrows to show comparable historical periods…#bitcoin price rebounded hard from such divergence previously (sic).”

A stock-to-flow measures the relationship between the currently available amount of an asset and its production rate. While this model is typically applied to commodities (i.e. precious metals), some analysts have applied it to Bitcoin: the amount of circulating BTC available is measured against the amount of new BTC that are being mined.

How Effective Is Bitcoin’s Stock-to-Flow Model?

The purpose of a stock-to-flow model is to show how much supply of an asset or resource (BTC, in this case) enters the market each year relative to the total supply. According to Binance Academy, “the higher the Stock to Flow ratio, the less new supply enters the market relative to the total supply.” And, therefore, an asset with a higher Stock to Flow ratio has higher scarcity, and should therefore retain value well over the long-term (at least, in theory).

Measuring Bitcoin’s price against stock-to-flow appears to have been originated by a pseudonymous Bitcoin institutional investor who goes by the name PlanB. While Philip Swift optimistically compared what is happening in the stock-to-flow model at this current moment with what happened in 2017, CoinTelegraph reported that even PlanB is nervous about the future of Bitcoin.

According to CoinTelegraph, this model “has been widely praised and is the leading valuation model for bitcoin proponents.” However, some analysts find the model to be fundamentally flawed.

“SF has achieved viral popularity and inspired rags-to-riches dreams for those gambling it all on the future of bitcoin,” CoinDesk reported in June of 2020. “However, we believe the model’s accuracy will likely be about as successful at forecasting bitcoin’s future price as the astrological models of the past were at predicting financial outcomes.”

2013 All Over Again?

However, if the stock-to-flow model is to be trusted, PlanB said on June 1st that while Bitcoin’s latest price movements do have some similarities with 2017, Bitcoin’s latest price movements are much more reminiscent of the year 2013.

“New dot: May close $37,341.. -35% .. we knew bitcoin would not go up in a straight line and several -35% drops are possible (and indeed likely) in a bull market,” he wrote on Twitter, adding that BTC’s movements were “Starting to look like 2013. [Stock to flow] model intact.”

However, while there are some important differences between Bitcoin’s price movement in 2013 and its movements in 2017, both years have something important in common: each of them saw a two-tiered run-up to a new all-time high. According to CoinTelegraph, “The first peak was followed by a significant drawdown in each instance, which then reversed to spawn a run to a new top.”

If history repeats itself a third time, Bitcoin’s second bull run of 2021 will take place later this year, which could lead BTC far beyond its previous all-time high of roughly $60K. In fact, PlanB believes that $100,000 is still in the cards for BTC. The stock-to-flow calls for an average price of either $100,000 or $288,000 between 2021 and 2024.

“Everybody Wanted to Buy #Bitcoin at $60,000, Nobody Wants to Buy Now.”

However, not everyone is so optimistic. Fortune reported this morning that Bookmakers at US-Bookies.com have “raised the odds that Bitcoin drops to $10,000 this year to 8-to-11—a 57.9% implied probability.”

And indeed, BTC investors seem to be fearful that Bitcoin is in for further drops down the line.

BItcoin market analyst, Michaël van de Poppe (@CryptoMichNL) wrote on Twitter that: “Everybody wanted to buy #Bitcoin at $60,000, nobody wants to buy now. Why? People are scared of red candles and expect a further dip.”

However, as BTC loses its grip, altcoins appear to be stepping up to the plate. At the beginning of 2021, BTC’s market dominance was over 70 percent. At press time, that figure had fallen below 44 percent.

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Nukkleus Inc. Expands into Crypto Investment with Match Financial Acquisition

Nukkleus Inc. Expands into Crypto Investment with Match Financial Acquisition

Nukkleus, Inc. (NUKK), a leading software and technology solutions firm, announced the recent acquisition of Match Financial Limited. The acquisition was completed on 28 May, 2021.

Match Financial is a financial services firm that wholly owns Digital RFQ Limited, an FCA registered EMD agent enabling frictionless and efficient conversion of FIAT to crypto through multiple banking facilities allowing for global same day settlement.

Match Financial will be absorbed into Nukkleus as the company looks to scale its operations and increase its service offerings in direct response to client demand.

Through the acquisition, Nukkleus will be able to offer a full-service digital asset platform with unique access to deep liquidity and a comprehensive suite of crypto products and services.

Nukkleus and Match Financial are primarily focussed on advanced multi-asset trading technology, institutional digital asset execution, crypto-backed product investment management and global payment services.

With the belief that multi-asset investment strategies must include digital assets, Emil Assentato, CEO of Nukkleus said: “As digital assets continue to be widely adopted, we believe that the best guarantee of acceptance and longevity will be transparency, governance and oversight. This is what Match Financial provides Nukkleus, underpinned by performance, security, integrity and the right partnerships”.

Jamie Khurshid, the Founder and Managing Director of Match Financial, spoke on the vision to de-risk investing through regulated products and regulated firms: “Digital Assets are especially exciting as they are a technology that has the opportunity to be massively beneficial in everyday lives. As an industry, we are at the early stage of fully appreciating the impact and benefits, but we have run into a number of fairly predictable issues that are preventing mainstream adoption. In creating Match Financial, we have specifically gone out to address these issues in a structured way to enable crypto to become a legitimate part of an investment portfolio for the long term.”

Nukkleus and Match Financial share a vision of healthy, customizable approaches to digital asset investment.

Providing stability and legitimacy to volatile assets

Over the last year, cryptocurrencies have seen tremendous growth. As they enter a new period of price discovery, investors are presented with huge opportunities to enter the crypto market at a crucial time.

However, as with all opportunity, comes risk and managing a risk-reward investment strategy is a delicate balance.

This is the challenge that led to the addition of Match Financial’s capabilities into the Nukkleus suite. Now Nukkleus can combine its best-in-class technology with Match Financial’s superior institutional crypto advisory, over-the-counter brokerage, and exchange execution services.

Nukkleus will be able to extend its full service offering and compete effectively in the multi-asset space.

Investors seeking customized crypto investment approaches now have a one-stop-shop that matches their understanding of technology, the markets and available investment products with their associated risk.

If the last year and a half have shown us anything, it’s that having a multi-asset approach to investing, including cryptocurrencies, is key for both investors and brokers. This is something Match Financial and Nukkleus understand as well as the unique challenges in the cryptocurrency investment space.

Like any emerging market, cryptocurrency is largely unregulated and that increases the level of risk for investors. While more regulation has been making its way into the crypto space, there’s still a long way to go.

For example, more than 800,000 leveraged Bitcoin accounts were liquidated in May 2021 as a result of price volatility – and markets still haven’t recovered.

Cryptocurrency investments have unique requirements and challenges. Along with regulatory and volatility-related concerns, secure cryptocurrency custody remains an infrastructural and insurance challenge, particularly for high-volume traders and trading platforms.

Additionally, crypto market participants are battling against fraud and other kinds of financial crimes, including money laundering.

This means crypto and digital assets are not suitable for everyone.

However, for those who understand the asset class and the risks, Match Financial and Nukkleus offer what is believed to be the safest possible mechanism to enter the market and gain exposure to the performance of crypto assets.

This is where Nukkleus can deliver real value to investors. With the acquisition of Match Financial, investors aware of the risks of buying and holding the physical asset, can safely access cryptocurrencies through their network of regulated business partners and liquidity providers.

Investors not previously comfortable with the risks in cryptocurrency technology or the available cryptocurrency investment products, will now be able to take advantage of the vast opportunities presented by digital currencies.

With a strong background in traditional financial markets and investment banking, the Match Financial team consists of experts in regulation and consumer protection for institutional businesses, as well as for professional and accredited investors.

Nukkleus, through Match Financial will also provide unique access to the first fully-regulated and cleared crypto instruments on a fully-regulated market.

Access to these products is only possible through Match’s wholly-owned subsidiary and crypto-backed financial product investment manager, Digital RFQ Limited, a leading institutional cryptocurrency to FIAT exchange service, token advisory and OTC brokerage registered with the UK FCA as an EMD Agent with full banking level KYC, KYB and AML.

About Nukkleus, Inc.

Nukkleus, Inc. (OTC Pink: NUKK) combines its world class technology with institutional digital asset advisory and exchange execution services, giving Nukkleus the full-service offerings needed to compete effectively in the multi asset world.

Nukkleus is a digital financial services company with a suite of financial technology to provide institutional counterparts with unique access to global liquidity and a comprehensive suite of products and services ranging from advanced trading and technology to trusted token advisory services.

Our technology delivers counterparts institutional-grade access to traditional and digital asset markets globally along with a fully regulated EMD agent status for handling professional and accredited client funds and conducting cryptocurrency conversion into FIAT currencies.

Forward-Looking Statements

Certain statements contained in this press release may constitute “forward-looking statements”.  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (http://www.sec.gov).  In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, governmental and public policy changes, Nukkleus’ ability to raise capital on acceptable terms, if at all, Nukkleus’ successful development of its products and the integration into its existing products and the commercial acceptance of the Nukkleus products.  The forward-looking statements included in this press release represent Nukkleus’ views as of the date of this press release and these views could change.  However, while Nukkleus may elect to update these forward-looking statements at some point in the future, Nukkleus specifically disclaims any obligation to do so.  These forward-looking statements should not be relied upon as representing Nukkleus’ views as of any date subsequent to the date of the press release.

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The Future of BTC? ”Until There’s Clarity, There’s Going to Be Chaos.”

The Future of BTC? ”Until There’s Clarity, There’s Going to Be Chaos.”

BTC’s price movements over the past several weeks have had many critics making doomsday claims.

However, Monica Eaton-Cardone, founder of Chargebacks 911, thinks that it may be too soon to make the call. “Let me gently paraphrase Churchill: ‘This is not the end. This is not the beginning of the end. But guess what — it’s not even the end of the beginning.”

“The crypto marketplace is going to be an epic, long-form rollercoaster ride for investors, and we’re just getting started. The steepest curves and the wildest climbs are still to come.”

“Why did the market drop? When there’s an absence of evidence–or when the evidence is unclear or incomplete–investors are forced to connect the dots on their own,” she continued. “But everyone connects the dots a little differently, and these connections are greatly influenced by our personal biases.” And of course, “The crypto market is no exception.”

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Monica Eaton-Cardone, co-founder & COO of Chargebacks 911.

What’s happening?

Let’s review: the most popular narrative behind Bitcoin’s price drop points to two pieces of news that hit the crypto scene in mid-May: firstly, that Tesla would no longer be accepting Bitcoin as payment for its famous electric vehicles, and secondly, that the Chinese government would be taking further steps to crack down on crypto–specifically, that it would be barring banks and payment companies from working with crypto platforms.

Analysts have also pointed out that both of these events seem to have triggered a “domino effect” of cascading liquidations. More than $12 billion in leveraged positions spread across over 800,000 accounts was liquidated in the price crash that followed the news of China’s crackdown and Tesla’s step back from BTC payments.

After days of death drops, the price of BTC finally seemed to stabilize between $34K-$38K from May 24th to June 7th. However, Bitcoin took another hit on Monday night, suddenly dropping 9 percent to $31,295.

Since then, BTC has recovered once again to $34K. Still, the drop has analysts wondering: could BTC retest $30K? If so, what would happen next? And what caused the drop in the first place?

Is the perception of BTC shifting?

Harriet Chan, the co-founder of software development firm CocoFinder, told Finance Magnates that “The ‘sudden’ drop in the value of BTC is actually a ripple effect of the criticism it has been getting in recent times about how green and sustainable it is.”

“Before, BTC was [seen as] a safe haven for many that wanted an alternative store of value for their money,” Harriet said. However, “it is now coming under strict criticism, especially over concerns about power consumption and its link to various criminal activities.”

Harriet also pointed to another hit to Bitcoin’s public image–”it is the subject of a ransomware demand in the US,” she said, increasingly the power of the narrative that Bitcoin is “linked to crime and terrorism.” On June 8th, Reuters reported that Colonial Pipeline paid $5 million to regain access to hacked systems that were causing massive shortages at gas stations on the eastern coast of the United States.

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Harriet Chan, co-founder of software development firm CocoFinder.

“BTC dropping below $30k is not as far-fetched as it used to be.”

As Bitcoin continues to lose momentum under the $40K mark, “BTC dropping below $30k is not as far-fetched as it used to be,” Harriet Chan said. “At this point, it is actually likelier than ever that it will drop below that point, and recovery might be an even more dream-like idea.”

BTC’s price could be in particularly bad shape if another negative news event breaks for the coin. “If BTC comes up in another crime scandal, its road to below $30K is as sure as done,” Harriet said, adding that “exactly how low it could go is not easy to determine.”

Doug Schwenk, Chairman of Digital Asset Research (DAR) told Finance Magnates that “more minor negative news stories could add to the pressure and given how far we are above last year’s levels, it is conceivable that below $30k happens.

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”A negative regulatory story, such as a ban on BTC from a major economy, would probably be the most damaging.”

However, Schwenk does believe that a regulatory slam could send the price of BTC hurtling toward the ground: “A negative regulatory story, such as a ban on BTC from a major economy, would probably be the most damaging cause absent a security bug or other catastrophic failure of the network.,” he said.

But is regulation likely to come for BTC anytime soon? “It’s hard to pinpoint one reason, but speculation and headlines in the news can cause massive swings in the valuation of cryptocurrency, like Bitcoin.”

Mark Henry, founder and CEO of  Alloy Wealth Management, told Finance Magnates that it’s not impossible. “Most recently, we saw the price go down after news investigators were able to recover about half of the ransom collected by hackers who attacked the Key East Coast pipeline in May. The involvement of the U.S. government shows assets can be taken back, which is causing fear of more regulations.”

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Doug Schwenk, Chairman and chief executive of Digital Assets Research (DAR).

“One of [investors’] biggest fears is about how cryptocurrency, like Bitcoin, will be regulated. Bitcoin is going to fluctuate. We could see it go well above $60k again this year, then drop and do it all over again.”

Still, he added, “Bitcoin is here to stay–be mindful that it is still up 14% from the start of the year.”

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Mark Henry, founder and CEO of Alloy Wealth Management.

”[…] We are going to see the price fluctuate.”

However, while Bitcoin may be here to stay, the events of the past month may have an important influence on the way that Bitcoin is used and perceived over the longer term.

“Currently, institutional investors that were looking to BTC as the tool to navigate the post-pandemic era are changing their opinion on that,” Cocofinder’s Harriet Chan said. “The effect of this is that other investors are also buying into the idea that BTC is very volatile and that won’t change soon.”

Mark Henry added that “The long-term investor who understands volatility and isn’t new to the investment world knows we are going to see the price fluctuate.”

“It may lose standing with the investor who doesn’t understand the markets and will panic when prices drop.”

”Until there’s clarity, there’s going to be chaos.”

In any case, the bottom line is that when it comes to Bitcoin, there are a lot of unknowns–as Monica Eaton-Cardone said, “we’re just getting started.”

“We’re still waiting to see if crypto will become an internationally accepted, ubiquitous presence, or a niche payment tool of dubious utility and/or legality,” Monica explained. “We’re still waiting for that seminal, paradigm-shattering moment when we’ll know for sure. So, in the meantime, we overanalyze and overemphasize every last bit of minutia, and that’s what’s triggering so much volatility. Until there’s clarity, there’s going to be chaos.”

“The crypto true-believers won’t be going away. They’re in it for the long haul. But until there’s long-term clarity, the crypto marketplace will continue to attract a large number of speculators who will come and go at various points.”

“Not everyone will have the stomach for the ride. This will exasperate the drops, and elevate the peaks. I can’t tell you how the crypto rollercoaster will end in 2021–but I can guarantee you, it’s going to be a helluva ride.”

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Bitcoin Sell-Off and Crypto Meltdown Deepen amid China, US Headlines

Bitcoin Sell-Off and Crypto Meltdown Deepen amid China, US Headlines

Bitcoin (BTC) and the rest of the cryptocurrencies, at least most of the top ten coins by market capitalization, suffered substantial losses across the board on Tuesday. BTC plummeted over 9% to reach a low at around $31,013.86 and now is settling its price at $33,490 as of press time. Ethereum (ETH) also followed the bearish path by plunging towards the $2,306 level. However, now it’s losing -2.95% and exchanges hands at $2,516.

Altcoins such as Binance Coin (BNB) and Cardano (ADA) had some declines over the day, now hovering at $351.55 and $1.57, respectively, according to Coinmarketcap data. Overall, Bitcoin prices’ fall to their lowest point in ten days can be attributed to a strain of news from the US and China fronts. First, Weibo accounts from opinion leaders in the crypto sphere had been blocked, as the Chinese crackdown on virtual currency trading and mining keeps strengthening.

However, accounts not involved in the advertising of exchanges have not been blocked as of press time, but such maneuver triggered part of the sell-off that Bitcoin has seen in the last 24 hours. “This time is much more widely cleansing it seems like, many industry players like wallets, individual influencers, media outlets, top traders and even meme accts are all shut,” Dovey Wan, founding partner of crypto-asset holding company Primitive Ventures, commented.

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Eyes on the Federal Reserve

Furthermore, investors globally have been paying closer attention to the latest moves from the US Federal Reserve, which could start to deploy its quantitative easing program, aiming to boost liquidity.

But another headline could have been fueled the strength of the bears across the markets, which came from the former US President, Donald Trump. “Bitcoin, it just seems like a scam. I don’t like it because it’s another currency competing against the dollar,” Trump said during an interview with Fox Business.

Moving onto other altcoins, specifically to the meme coin, Dogecoin, it has been hovering around $0.3328, down -1.95% as of press time. Finance Magnates reported that digital bank Revolut expanded its offerings with cryptocurrencies by adding Dogecoin on its platform.

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Russians Could Inherit Cryptocurrencies with New Law Proposed by Lawmakers

Russians Could Inherit Cryptocurrencies with New Law Proposed by Lawmakers

A proposed law in Russia seeks to allow citizens to inherit Bitcoin and cryptocurrencies to include them in divorce settlements and wills. According to RBC, Russian lawmakers want such a legal framework to allow creditors to access virtual currencies in case of successful bankruptcy claims, despite crypto’s legal status still being unclear in the country.

Pavel Krasheninnikov, the head of the State Duma’s Committee on State Construction and Legislation, stated that there is a growing mood to change the current inheritance law before the end of the current parliamentary session. If they don’t manage to pursue such a proposal in this period, Krasheninnikov hinted at the possibility of moving it until the next one in September.

“We will remove this paradox when there is a cryptocurrency and is not regulated by anything. Will we have time to do it before the end of the spring session or not? I would really like to have time,” the head of the State Duma’s Committee on State Construction and Legislation commented on the matter.

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Treating Bitcoin as Property

In fact, the lawmakers seek to grant cryptocurrencies in Russia the status of “property,” whose amendments should be done on the Civil Code. “It will not be necessary to deduce the legal regime of cryptocurrency every time from the general principles of civil law,” Efim Kazantsev, Moscow Digital School’s expert, said, who also added that such treatment of property had been given already by Russian courts.

That said, further amendments should point towards clarifying any doubts about the legal status of cryptocurrencies, the expert stated. If the proposed law is bumped until September’s session and gets the green light for approval, the ruling will be promulgated starting January 1, 2022.

Regarding crypto-related regulatory affairs in Russia, the Russian parliament initially passed a new bill that will start taxing profits from cryptocurrencies. However, it is unclear if the taxation will apply to mining operations and income from crypto-based fundraising campaigns.

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