A well-known crypto analyst says Bitcoin has completed step one in a new bull market cycle.
Willy Woo, who invented the Network Value to Transactions Ratio (NVT), told his 102,000 followers on Twitter that he believes a long-term, sustained rally is now on deck, once BTC finds its next bottom.
“Stage one of the bull market is completing, once we bottom stage two begins, promising the long sustainable bull drive that takes us through all of 2020 (if BTC continues its personality). Stage one was trader driven dominance squeezing us up and driving fomo. Fomo complete, stage set.”
Woo is also responding to Bitcoin critic and gold bug Peter Schiff, who says Bitcoin’s success is based on clever marketing, with early investors hoping they can cash out as institutions jump in.
An analyst at the financial services firm Edward Jones, which oversees $1 trillion in assets, is siding with Schiff. Kate Warne tells Business Insider the firm doesn’t believe anyone one should be a long-term investor in BTC.
“We don’t like the specifics of Bitcoin, and we really think the price is moving around on speculation, rather than something else. When you think about bitcoin, you’re looking to buy something that you hope to sell for more to somebody else who’s more excited than you are. That’s the essence of speculation…
“We would not advise investing in them or speculating in them. If it goes up, sell it. If it goes down, sell it. But get out quick.”
Galaxy Digital CEO Mike Novogratz tells Bloomberg he believes the number of institutional investors entering the space will continue to rise.
“So ya, there’s some skeptics out there, but the probability of this really working has gone limit-up.”
Investment giant Fidelity is already serving institutional clients through its subsidiary called Fidelity Digital Assets.
Back in January, the $7.4 trillion asset manager revealed the platform is live, with an undisclosed number of investors on board.
“We are currently serving a select set of eligible clients as we continue to build our initial solutions. We’ve established a robust set of technical and operational standards at a level that institutions have come to expect from Fidelity.
Our initial clients are an important part of our final testing and process refinement periods, which will eventually enable us to provide these services to a broader set of eligible institutions.”
New analysis from Coin Metrics shows 3,847,859 BTC has not moved in the last five years, which is an all-time high. According to the report, the data signals that “BTC is increasingly becoming a store of value, as opposed to a medium of exchange.”
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