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More Stimulus Money Could Have Positive Effect on BTC

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New research is suggesting that if a second round of stimulus checks are approved, the bitcoin price is likely to react positively.

More Stimulus = Higher Bitcoin

When the coronavirus pandemic first struck global markets in March of this year, bitcoin sunk down to the high $3,000 range. The asset struggled to make a name for itself the way cash and stocks did, with the former struggling due to inflation. However, many people, over time, began to see bitcoin in an entirely new light, feeling that it would potentially serve as a “safe haven” or a hedge against economic strife and potentially keep their wealth safe during moments of uncertainty.

Bitcoin has since moved beyond the $11,000 mark, garnering roughly $8,000 more in about seven months, though at one point, the world’s number one cryptocurrency by market cap was trading for well over $12,000. Still, the currency has shown great improvement in all this time, and the asset’s latest reputation has placed it in a position of greater dominance and respect.

It can be argued that one of the big things that potentially put bitcoin back on the map was the first round of stimulus checks that were first issued in April and May of this year. Following the approval of the checks, Americans who were struggling got a little bit of money back in their pockets, and they began to feel a little more confident that things wouldn’t turn out poorly.

This ultimately helped to make bitcoin stronger and more stable in the coming months, with the asset shooting up upon approval. It was during this time that the asset initially rose to about $8,000 and $9,000. It would then go on to reach $10K briefly during early May just shy of its third halving, though this spike wouldn’t last long.

However, that first round of stimulus checks saw things improving in the economy, and crypto and stocks began to surge back to their initial positions. CEO of Coinbase Brian Armstrong even reported that his exchange was seeing bitcoin purchases of approximately $1,200 each, which is how much the stimulus checks were for. It is widely whispered among crypto executives that many people utilized their stimulus funds to purchase crypto and establish a bit of digital wealth for themselves.

So Much Money Around the World

America wasn’t the only country to issue such funds to its citizens. The same behavior was witnessed in nations such as Japan and the UK, as well as several countries that are part of the European Union. This global distribution of funds helped bitcoin reach a new pinnacle on the world’s financial ladder.

The fact is that much of the stimulus money was spent rather than saved, which was what the cash was designed for. It was printed to stimulate the economy, and it looks like most people got that message and took the right action. Should another set of checks make their way into our pockets, we can expect bitcoin to see brighter days soon.

Tags: , , Source: https://www.livebitcoinnews.com/more-stimulus-checks-could-have-positive-effect-on-btc/

Blockchain

Bitcoin Price Paints A Fresh All-Time High Against Two National Currencies

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While most cryptocurrency community members speculate when or if Bitcoin will ever top its all-time high against the dollar, the digital asset has already marked an ATH against other government-issued fiat currencies – the Brazilian Real and the Turkish Lira.

Bitcoin Smashes Through BRL ATH

The past several days have been significantly exciting for the cryptocurrency industry, especially for its most well-known representative. Compared to the US dollar, BTC dipped to $11,200 on Friday, but since then, it has been on an impressive ride, resulting in a new 2020 high.

As CryptoPotato reported earlier, BTC pushed above $13,000 and topped at above $13,200. Looking at its price developments from the past few years, it’s easy to spot that this is still $7,000 less than its highest level of nearly $20,000.

Naturally, Bitcoin is compared with the US dollar as the latter is the world’s reserve currency. However, since BTC operates internationally without border limits, it’s compelling to follow its performance against other national currencies.

For example, during the December 2017 boom, one bitcoin cost 69,000 BRL in Brazil. Despite being officially ranked as the world’s ninth-largest economy by nominal GDP, Brazil’s currency has suffered since then.

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BRL’s decline in value, combined with Bitcoin’s recent increase, has resulted in a new all-time high. According to data from TradingView, the trading pair BTC/BRL reached 72,000 BRL today.

BTC/BRL. Source: TradingView
BTC/BRL. Source: TradingView

Bitcoin Sees New High In Turkey As Well

The Turkish Lira is another national currency that has dumped in value lately. The country, led by President Recep Tayyip Erdogan, experienced rising inflation and borrowing costs, resulting in loan defaults in 2018. The COVID-19 pandemic only accelerated its economic decline.

As the virus infiltrated the nation in April, the central bank enhanced its efforts to keep credit flowing through the economy by cutting interest rates from 12% at the end of 2019 to 8.25% in May.

Despite Erdogan’s intentions, the loan growth increased by 40% and even 50% – record numbers not seen since the previous financial crisis in 2008.

Ultimately, this credit explosion, the need for foreign currencies, and the rising imports led to a near 12% domestic inflation increase in July alone.

Amid Turkey’s declining currency, Bitcoin took advantage and marked a fresh ATH in August this year. One bitcoin equaled 83,500 liras at the time.

The situation has only worsened for the TRY since then, while BTC has grown to new highs as described above. The chart below illustrates that BTC/TRY has surged to a six-digit territory at 101,200 TRY per one bitcoin.

BTC/TRY. Source: TradingView
BTC/TRY. Source: TradingView
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Source: https://cryptopotato.com/bitcoin-price-paints-a-fresh-all-time-high-against-two-national-currencies/

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I Like Bitcoin Even More, It’s The Best Inflation Trade: Billionaire Investor Paul Tudor Jones

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  • Billionaire hedge fund manager Paul Tudor Jones III has become an even bigger Bitcoin fan following the most recent price developments.
  • As CryptoPotato reported back in May, Jones bought an undisclosed amount of BTC to protect himself amid the rising fears of increased inflations.
  • In an interview with CNBC’s Squawk Box, the prominent investor doubled-down on his words that Bitcoin serves as a hedge against the failing traditional financial world.
  • Jones noted that “I like Bitcoin even more now than then [when he bought BTC in May]. It’s in the first inning and has a long way to go.”
    Paul Tudor Jones
    Paul Tudor Jones
  • He also clarified now that BTC has a single-digit percentage in his investment portfolio. However, he believes that Bitcoin could outperform all other traditionally regarded as safe-haven investment assets:
  • “The reason I recommended Bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being a long yield curve and I came to the conclusion that Bitcoin was going to be the best inflation trade.”

  • Jones is not the only representative of the traditional investment world to have come on board the Bitcoin bandwagon. The Former CEO of the insurance giant Prudential and current Chairman of Sanders Morris Harris, George Ball, recently said that BTC is an attractive long-term investment.
  • In addition, giant companies like MicroStrategy and Square recently purchased millions of dollars worth of Bitcoin.

Featured Image Courtesy Of CNBC

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Source: https://cryptopotato.com/i-like-bitcoin-even-more-its-the-best-inflation-trade-billionaire-investor-paul-tudor-jones/

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XRP Bulls Step in With a 5% Daily Increase, Is $0.30 Next? (Ripple Price Analysis)

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XRP/USD – Buyers Finally Break Above Symmetrical Triangle

Key Support Levels: $0.26, $0.251, $0.245.
Key Resistance Levels: $0.261, $0.271, $0.279.

XRP went through a rollercoaster of price action yesterday as it reached as high as $0.271 (bearish .618 Fib) and as low as $0.228 (.618 Fib) during the 24 hours.

The cryptocurrency had been trading within a symmetrical triangle and rebounded from the lower boundary at the start of the week. Despite the whipsaw like movement yesterday, the daily candle still closed beneath the triangle’s upper boundary.

Today, XRP pushed higher to break toward the upside of this triangle. It reached the resistance at $0.261, provided by a bearish .5 Fib Retracement level.

xrpusd-oct22
XRP/USD Daily Chart. Source: TradingView

XRP-USD Short Term Price Prediction

Moving forward, if the buyers can break the current $0.261 level, higher resistance lies at $0.271 (bearish .618 Fib Retracement). Following this, resistance lies at $0.279 (1.414 Fib Extension), $0.286 (bearish .786 Fib), $0.295 (bearish .886 Fib), and $0.3.

On the other side, the first level of support lies at $0.26. Beneath this, support is expected at $0.251, $0.245 (100-days EMA), and $0.237 (200-days EMA).

The Stochastic RSI produced a bullish crossover signal, which helped the recent push higher.

XRP/BTC – XRP Briefly Penetrates Beneath 2000 SAT.

Key Support Levels: 2000 SAT, 1960 SAT, 1915 SAT.
Key Resistance Levels: 2050 SAT, 2127 SAT, 2200 SAT.

XRP has been struggling throughout the entire month of October against Bitcoin. Yesterday, the coin fell from 2050 SAT and broke beneath 2000 SAT. It continued to spike as low as 1915 SAT where it found support at a downside 1.618 Fib Extension.

The coin managed to close the daily candle at the 1960 SAT level (downside 1.272 Fib Extension) and it has rebounded back above 2000 SAT today as it trades at 2015 SAT.

xrpbtc-oct22
XRP/BTC Daily Chart. Source: TradingView

XRP-BTC Short Term Price Prediction

Looking ahead, if the buyers continue higher, the first level of resistance lies 2050 SAT. Above this, resistance lies at 2127 SAT (bearish .236 Fib), 2200 SAT, and 2260 SAT (bearish .372 Fib & 100-days EMA).

On the other side, if the sellers break back beneath 2000 SAT, support lies at 1960 SAT, 1915 SAT, and 1900 SAT.

The Stochastic RSI is in extremely oversold territory as we wait for a bullish crossover signal to send the market higher.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/xrp-bulls-step-in-with-a-5-daily-increase-is-0-30-next-ripple-price-analysis/

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