With a solid recovery in March, crypto investment analysts appear to be more bullish on the sector in the future.
Eliézer Ndinga, Research Director of Index Token Issuer Amun, said: Developments that may be due to growing interest in the NFT ecosystem in measuring a 48% surge in network NFT sales, and the excitement surrounding the extension of Terra’s anchor money market protocol to AVAX networks. “
Ndinga said the market is gaining “slightly bullish” momentum against the backdrop of the massive outflows that have occurred across the Bitcoin exchange.
“This indicates that institutional investors and high net worth individuals may be using this $ 38,000 to $ 42,000 price level to withdraw BTC holdings to refrigerated warehouses for long-term holdings. It is possible. A precursor that usually occurred before the rally, as shown below in November 2020 and September 2009. “
Crypto’s also seems to have solidified its reputation as an alternative asset in times of stock market conflict. That may be true, but industry experts warn when turning cash into crypto assets.
“Cryptocurrencies can be a great potential alternative asset. Don’t confuse them with valuable stores like gold,” said Doug Milnes, head analyst at MoneyGeek.
Money Geek has published a new report assessing the difference between investing in equities and investing in cryptocurrencies. Let’s take a look at some important findings. The $ 1,000 crypto investment has increased to $ 27,000 over five years. From 2016 to 2021, this is a combined annual growth rate of 94%.
- The S & P 500 surpassed the cryptocurrency index in 2021. From 2013 to 2022, cryptocurrencies were four times more volatile than S & P 500 and 26 times more volatile than bonds over the same period.
- After an initial period of low correlation between assets, cryptocurrencies and equities became more correlated from 2021 to early 2022, suggesting that cryptocurrencies may not be viable as a store of value. I am.
- Incorporating cryptocurrencies as a small percentage (3%) into a reasonably aggressive long-term portfolio of 70/30 shares / bonds from 2017 to 2021 will increase the return on investment by 42%. This comes at the cost of an 18% higher portfolio volatility.
“Our analysis found that both equities and cryptocurrencies can bring significant gains and losses to the value of our portfolio,” Money Geek’s Geoff Williams reported. “Our analysis pointed out the benefits of investing in more equities than cryptocurrencies if your investment duration and risk tolerance are suitable for these investments.”
“But we also found that holding a small portion of our investment in cryptocurrencies could be useful.”
With crypto upside, TheStreet’s investment experts are paying attention to this sector this week:
Bitcoin and Dogecoin are heading here.
Cryptocurrency owners have enjoyed trading in the last few weeks with Bitcoin, Ethereum and Dogecoin soaring lows. According to Bret Kenwell of The Street, minors are also moving.
“The stock market has enjoyed trading in the last few weeks, and so does this group,” Kenwell said. “Watching both rallies, in my opinion, adds to the” risk-on “observation. “”
Some bounces are expected as the code has been broken this year.
“It’s going even longer than most investors expected,” says Kenwell. “Looking at Bitcoin, we see a 27.5% increase from mid-March lows to Monday highs. In that stretch, it rose in 11 of the last 15 sessions and now 7 times. I am. Straight session. “
How long can the rally last? Kenwell looks closely at the chart and pitches in.
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“On Sunday, March 27, Bitcoin created what I call a” intentional “breakout,” he said. “The reason I call it intentional is that assets have passed some important level when they can easily assemble in this area and fail.”
But the Bulls deliberately Bitcoins are jammed through this key zone. The zone ranged from $ 45,400 to $ 45,900.
In that area, Bitcoin has turned from previous support to resistance ($ 45,400), followed by last month’s high of $ 45,900, “Kenwell said. “Bitcoin rose every month after clearing the February highs, but this zone also includes 50-week and 21-week moving averages, as well as weekly VWAP readings.”
According to Kenwell, it would have been easy for Bitcoin to withdraw, given how many measures were taken in this area-especially in a great series of daily profits.
“Now I would like to push it further and see how it handles channel resistance and the 200-day moving average.” “If we can clear these steps, $ 50,000 will be valid, followed by 50% and 61.8% retracements, respectively.”
On the downside, the Bulls wants the $ 45,400 to $ 45,900 area to be held as support, along with a 10-day moving average. Under that, 50-day MA could work, says Kenwell.
As for Dogecoin, if you can pass the level of 15 cents, it could be a little better. “If we could do that, Dogecoin could push it to a February high of nearly 17.3 cents,” Kenwell added.
These look like small moves, but a rise from 15 cents to 20 cents represents a 33% increase.
“If you need to withdraw Dogecoin because it has risen in 7 of the last 8 sessions, check to see if the 10-day and 50-day moving averages are supported,” Kenwell said. Says.
Meta (MVRS)-Get Meta Report is beginning to bend its muscles in the field of cryptocurrencies.
It was after the company filed eight crypto-related trademark applications covering crypto exchanges, wallets, tokens and more. In fact, six of the eight applications focus on encryption and blockchain.
This move takes place in the company’s ongoing efforts to rebrand Metaverse’s efforts months after Meta’s abandonment of its quest to launch its own coins.
Rosmuck Makonomics In the latest episode of Crypto Minute, we analyzed what the trademark can say about Meta’s future cryptocurrency ambitions. Street.
“After the announcement of the NFT, where South by Southwest is coming to IG, Mark Zuckerberg seems to continue trying to dominate the crypto space,” Mac said. “Currently, Meta has joined other companies such as the New York Stock Exchange to file a trademark application for Metaverse.”
Notable in this news, according to the Mac, is months after Meta finished tracking its own coin, formerly known as Libra, called Diem.
“But does Meta’s rebranding and focus on the Metaverse allow them to launch new tokens?” He asked. “If so, are you buying?”
Difference between Bitcoin and Ethereum
Last week, Rob Lenihan of The Street interviewed Egor Volotkovich, Executive Director of EVO DeFi, a cross-chain solution, about the similarities and differences between Bitcoin and Ethereum.
For investors unfamiliar with crypto, it’s a debate worth following.
“Bitcoin is the most popular cryptocurrency, but Ethereum is the second most popular global computing platform with the native cryptocurrency Ethereum,” explained Renihan. “But both are decentralized, which means they are not issued or regulated by central banks or other authorities.
Volotkovich pointed out that the two cryptocurrencies “occupy different positions in the crypto ecosystem and have significant uniqueness in both.”
“While Bitcoin continues to maintain its stance as a legacy settlement asset in the blockchain world, Ethereum has expanded its reach as a decentralized financial fuel in the growing blockchain world,” he said. rice field.
In terms of benefits, Volotkovich said Bitcoin maintains a high level of advantage in terms of security infrastructure because the blockchain is not built for easy use.
Ethereum, on the other hand, has a large number of decentralized applications (dApps), “some of which have been hacked, compromised, or misused in some way,” he said.
Volotkovich said a more obvious advantage in the investment scene is the cheaper price of Ethereum when compared to the price of Bitcoin.
“Literally, investors believe the former is more prone to growth than the latter,” he said.
The obvious negative of Ethereum is its high level of congestion, which continues to cause high transaction fees called gas charges. “The observable minus of Bitcoin associated with it in Ethereum is its average transaction time, which is fixed at an average of 10 minutes compared to that of ETH of a few seconds,” Volotkovich said.
He added that institutional investors generally prefer Bitcoin allocations to Ethereum.
From Tesla (TSLA)-Get Tesla Ink Report to MicroStrategy (MSTR)-Get MicroStrategy Incorporated Class A Report, Get Jack Dorsey’s Block Ink (SQ)-Get Block Ink Class A Report All BTC It is assigned in, but not in ETH.
“But the private investor and the wider DeFi world have found a lot of usefulness in Ethereum, which makes Ethereum a reliable digital asset for them,” he said.
Pipeline Big Bitcoin Loans
After a rough start in 2022, Bitcoin has resumed its progress, and crypto investors are seeing some easing in late March. According to experts, the price of top cryptos in terms of market value could exceed $ 50,000 in the next few days. Bitcoin is currently trading at $ 47,351.57, according to CoinGecko.
Now, more investment companies are trying to get the job done with a fair amount of loans and get more Bitcoin.
A good example. MacroStrategy, a subsidiary of MicroStrategy, has acquired a Bitcoin-backed $ 205 million term loan from Silvergate Bank, a subsidiary of Silvergate Capital Corporation (SI). A service for the growing digital currency industry.
According to SEC filing from MicroStrategy, the loan was secured at the time of closing by Bitcoin worth approximately $ 820 million placed in a collateral account with custodians mutually approved by the lender and the borrower.
“Under the terms of the agreement, MacroStrategy will use the proceeds of the loan to buy Bitcoin, pay fees, interest and expenses related to loan transactions, or for general corporate purposes of MacroStrategy or MicroStrategy,” the two companies said in a press release. It is stated in. ..
“The loan gives Bitcoin the opportunity to further enhance its position as a major public company investor,” said Michael Saylor, Chairman and Chief Executive Officer of MicroStrategy. collateral. This allows you to further execute your business strategy. “
Luc Olinga of The Street reported this week that a new investment in Bitcoin could benefit MicroStrategy.
“Bitcoin seems to be on the rise and could reach a record level of $ 69,000, which crossed on November 10,” Olinga said. “Even if the most difficult part remains in this regard in the United States, some uncertainty has been removed, especially with regard to regulation.”
According to Olinga, Russia’s invasion of Ukraine has shown other uses of cryptography and has helped facilitate its adoption. And large investors like the old hedge funds seem to be a little more crypto-friendly.
“In addition, the reduced fear of a global recession has led investors to buy so-called risk assets to which Bitcoin belongs because of their high volatility,” Olinga said.
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