Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks Bull Market End Game Bear Start Strategy - 20th Mar 25
Gold and System Collapse: Charting the Bank Run of the Mighty US Dollar - 20th Mar 25
Tesla's Troubles — Is it Musk or is it More? - 20th Mar 25
The Stock Market Bear / Crash indicator Window - 9th Mar 25
Big US Tech Stocks Fundamentals - 9th Mar 25
No Winners When The Inflation Balloon Pops - 9th Mar 25
Stocks, Crypto and Housing Market Waiting for Trump to Shut His Mouth! - 27th Feb 25
PepeCoin (PEPE): Anticipating Crypto Reversals using Elliott Waves - 27th Feb 25
Audit the Fed, Audit Fort Knox, Audit Everything - 27th Feb 25
There Are Some Bullish Indicators in the Silver Market - 27th Feb 25
These Metrics Identify Only 10 AI Related Stocks That Are Undervalued - 27th Feb 25
Stocks, Bitcoin, Gold and Silver Markets Brief - 18th Feb 25
Harnessing Market Insights to Drive Financial Success - 18th Feb 25
Stock Market Bubble 2025 - 11th Feb 25
Fed Interest Rate Cut Probability - 11th Feb 25
Global Liquidity Prepares to Fire Bull Market Booster Rockets - 11th Feb 25
Stock Market Sentiment Speaks: A Long-Term Bear Market Is Simply Impossible Today - 11th Feb 25
A Stock Market Chart That’s Out of This World - 11th Feb 25
These Are The Banks The Fed Believes Will Fail - 11th Feb 25
S&P 500: Dangerous Fragility Near Record High - 11th Feb 25
Stocks, Bitcoin and Crypto Markets Get High on Donald Trump Pump - 10th Feb 25
Bitcoin Break Out, MSTR Rocket to the Moon! AI Tech Stocks Earnings Season - 10th Feb 25
Liquidity and Inflation - 10th Feb 25
Gold Stocks Valuation Anomaly - 10th Feb 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bitcoin Halving Passes with no Fanfare, but Smart Money is Accumulating

Currencies / Bitcoin May 14, 2020 - 11:10 PM GMT

By: Submissions

Currencies

After flirting with the 10k level, bitcoin has retraced to find support around $8,700 as the long-awaited halving event passes.

This milestone sees the block reward sliced in half, effectively acting as a supply shock by reducing the profits of miners by 50% and halving the amount of new bitcoin that enters the network.

With central banks embarking on massive money printing operations to tide over stalled economies, this event makes bitcoin look increasingly attractive as a deflationary asset — and this is reflected by the increased presence of institutions.


Big investors—known as 'whales' in crypto parlance—have been making a splash on the CME exchange, where open interest in bitcoin futures hit an all-time high last week.

As a regulated platform, CME is home to well-heeled hedge fund traders like Paul Tudor Jones II, who told CNBC that he has allocated 1-2% of his assets to bitcoin. He sees the leading cryptocurrency as a possible hedge against the inflationary activities of central banks, and wrote in a letter to investors that the cryptocurrency reminds him of the role gold played as a hedge against inflation in the seventies.

Pioneering investor Tudor Jones is not the first mainstream hedge fund manager to consider bitcoin, and he joins one of the most successful hedge funds ever—Renaissance Technologies' Medallion—which has been eying the bitcoin futures market since April.

BTC/USD Daily Chart


On the chart, bitcoin is now sitting at the 0.236 Fibonacci retracement level, after printing a 'darth maul' candle with long wicks on either side indicating short-term indecision.

Immediate resistance lies at $10k. Once this level is surpassed, we may see more traders enter the market with the expectation that bigger players—miners and large investors—are now holding on to their bitcoin in the hopes of price once again surpassing previous all-time-highs.

BTC/USD Long-term Log Chart

After previous halving events in November 2012 and July 2016, bitcoin consolidated for several weeks before embarking on a bull run. But based on a sample size of only two, expecting a similar trajectory to play out again would be a foregone conclusion.

By Kieran Smith

Website: http://www.bitcopy.co.uk

Bio: Bitcoin writer, analyst and content marketing consultant, Kieran Smith is the founder of Bitcopy.

© 2020 Copyright Kieran Smith - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in