Legendary investor and chief executive officer of Berkshire Hathaway, Warren Buffett, is on record as having said that in the markets it is wise to exercise caution when everyone else is acting greedily. His exact words were ?Be fearful when others are greedy and greedy when others are fearful.?
It should therefore have come as no surprise when earlier in the year Buffett said that there will be a bad ending for virtual currencies. At the time he made the statement Bitcoin (BTC) had a few weeks prior just hit a record high and there was feverish excitement in the sector with more and more people piling in to invest in digital currencies.
During that period predictions were made that Bitcoin would hit a high of $100,000 before the end of this year. While the price of Bitcoin was around $14,000 at the time it is now hovering below $7,000. Other virtual currencies have also fallen drastically. This was not the first time that Buffett was dismissing virtual coins as he also raised the same concerns he has over them in 2014 when he called Bitcoin a ?mirage?.
By urging investors to be fearful when others are greedy and greedy when others are fearful it has been explained that Buffett meant that when there is greed in the market prices tend to rise dramatically as everyone wants a piece of the action. The reason Buffett advises caution during such a time is the fact that purchasing an asset then the price is likely to be high and one will thus overpay, a fact which will lead to anemic returns in future. However when market players are acting overcautiously and everyone is fearful, the price of assets is likely to be depressed and thus one is likely to get value for their money if they buy.
Examples of Buffett employing his strategy include the case of American Express. In the 1960s the stock of financial services company fell by half after a scandal was discovered where collateral that had be used was found to be non-existent. After undertaking a review of the business model of the company Buffett decided that there would be no material impact on the moat of American Express and thus invested in the stock. In the next half a decade the value of American Express had increased five-fold.
By warning against virtual currencies it is clear that Buffett does not see any ?American Express? in the sector that he would willingly invest in. However not all famed investors who come close to being compared to Buffett are heeding his advice and keeping away from digital currencies. Soros Fund Management, an investment fund that was started by George Soros, is for instance making plans to engage in the trading of cryptocurrencies. Per Bloomberg reports, the head of global macroeconomic investing at Soros Fund Management, Adam Fisher, has received approval to make investments in virtual currencies as well as trade in them. The amount of funds that Soros Fund Management currently manages is around $26 billion.
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Ethereum Price Prediction: ETH/USD Regains Ground But Yet to Break above the $420
ETH Price Prediction – October 27
The Ethereum price is seen climbing higher and settling above the main $400 barrier.
Resistance levels: $450, $460, $470
Support levels: $355, $345, $335
ETH/USD may continue to move above the 9-day and 21-day moving averages until it finds resistance at the level of $420. The fact remains that the Ethereum coin may continue to move at the upside in as much as the 9-day MA stays above the 21-day MA. Nonetheless, the price can still rise higher and break above the upper boundary of the channel if the bulls put more effort.
What to Expect from Litecoin (LTC)
If the buyers continue to add more pressure to the market, an initial resistance is expected at $425. Above this, further resistance can be found at $450, $460, and $470 levels. On the other hand, the moment the bears step back into the market and cross below the moving averages, initial support is located below the $370. Beneath this, additional supports are expected at $355, $345, and $335.
More so, the RSI (14) is trying to cross above the 60-level which shows that the bullish momentum may continue. On other hand, if the technical indicator fails to cross above the 60-level then the bears stand a chance to return back into the market. However, if it remains within this range, the cryptocurrency may begin a sideways movement.
Against Bitcoin, ETH is experiencing some difficulties, especially in the past few days. The Ethereum (ETH) recently broke under the 9-day and 21-day moving averages and may continue to fall towards the subsequent support of 3000 SAT. The critical support level is found around 2900 SAT as the RSI (14) moves into the oversold region.
However, ETH/BTC remains below the moving averages as it fails to rebound higher above the 3031 SAT. However, if it continues to drop beneath this level, then the market would be considered as bearish and could reach the critical supports at 2800 SAT and below. To turn bullish, ETH must rise much higher and break above the 3200 SAT level and above.
ETH Miners Start Selling Their Holdings As Sentiment Turns Bearish
ETH miners start selling their holdings as the sentiment turned quite bearish on Twitter so can we expect an incoming correction? Let’s find out in today’s ethereum news.
The recent data revealed that ETH miners start selling significant ETH holdings after the latest price jump to $420. The Twitter sentiment turned bearish for the cryptocurrency after the price drop. Ethereum miners which are the lifeblood for the algorithm behind the Ethereum blockchain, have gained the most from the ongoing decentralized finance craze. They made a total of $166 million in fees in September which is a new monthly all-time high and about six times more than Bitcoin miners.
As far as the balances go, they started accumulating bigger portions at the start of September as the graphs show. Apart from slight drops in holdings, the trend continued for a few days. However, the price of the second-biggest cryptocurrency surged to a 7-week high of $420 as miners started changing their minds. The data analytics company Santiment outlined the massive drop for the ETH miner holdings. The sell-off coincided with Ethereum’s price peak but the second-largest digital asset by market cap which lost some steam and trades now below $400.
Despite being one of the best-performing assets since 2020 started, Santiment’s data suggested that ETH could be heading further south. Apart from miners depositing their ETH coins, the analytics companies say that the traders’ FOMO and the increased on-chain data activity that is visible recently, slowed down. The Twitter sentiment turned against Ethereum which was expected but the sentiment performs in correspondence with the price most of the time. When ETH dipped to about $300 the metric remained in negative territory for a few weeks consecutively.
On the contrary, when ETH started pumping, the sentiment pumped as well. Now the trend reversed after a sharp spike but the analytics company concluded that since the sentiment flipped into bearish territory, the ETH token could be in for a few short-term price drops as well. As reported earlier, Ethereum is facing huge price movements as it is winding up for another shot of breaking the $420 level. The positive fundamentals for Ethereum are supporting the bulls in the near-term.
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IDEO CoLab Unleashes $21 Million Early Stage Crypto Fund
The venture fund has helped incubate more than 30 blockchain startups since 2018.
- IDEO CoLab Ventures is backed by IDEO, Avanta Ventures, GS Group, Hansha Asset Management, and Fineqia.
- The venture capital fund sees crypto and blockchain as a key driver of societal change.
- IDEO CoLab Ventures has already invested in Braintrust, Handshake, and FalconX.
IDEO CoLab Ventures, which has been investing in blockchain firms since 2018, has announced a $21 million fund specifically for early stage crypto firms. So far, the fund has invested in and helped incubate more than 30 crypto and blockchain startups.
IDEO CoLab Ventures is backed by design company IDEO as well as GS Group, Hansha Asset Management, Fineqia International, and Avanta Ventures (the venture capital arm of CSAA Insurance Group). Executives from Coinbase, Twitter, and Fortress have also signed on.
“Our deep capabilities in design, product development and blockchain technology enable us to attract world-class entrepreneurs and startups from around the world,” Ian Lee, managing director of IDEO CoLab Ventures, said in an announcement.
“This has led to unparalleled investment opportunities and the chance to collaborate with some of the world’s best founders and companies on the development of this important technology and the businesses that are being built on it.”
IDEO has helped incubate firms with a range of services, including product, design, and customer research. IDEO CoLab Ventures investments have included Braintrust, a user-controlled talent network; Handshake, a decentralized naming and certificate authority; and FalconX, a digital asset trading platform.
It’s looking to back blockchain and crypto projects focused on developing Web 3 infrastructure, open finance products, and innovative networks and marketplaces.
“We’ve had a longstanding partnership with IDEO CoLab, collaborating on investments and a blockchain solution for insurance verification,” Debbie Brackeen, executive vice president and chief strategy and innovation officer at CSAA Insurance said in the Medium post.
“Blockchain is a disruptive technology that will affect many industries, and we’re excited to continue our partnership with IDEO CoLab Ventures who is at the forefront of this important work.”
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