Showing posts with label Wall Street. Show all posts
Showing posts with label Wall Street. Show all posts

December 21, 2017

Be Smart dont sell your Bitcoin or Steem cheap to the wallstreet traders

By bitcoincompany - December 21, 2017 (steemit.com)


Be smart guys wallstreet is trying to get some cheap bitcoin dont sell any of your coins for now holdd together and let them buy after us please share this..

please resteem upvote share if you love bitcoin and steem.

Closing summary: Bitcoin futures fall as CME trading begins

Time for a recap.

Bitcoin has made a subdued debut onto the world’s largest futures exchange, as a series of politicians and officials voiced concerns about the digital currency.

The Chicago Mercantile Exchange (CME) became the second exchange to offer bitcoin derivatives trading last night. And right now, bitcoin futures contracts which settle in 2018 have all fallen below their opening value.

The January 2018 contract, which initially spiked over $20,000, has now dropped back to $18,920 - having been originally priced at $19,500.

Contracts that mature in February, March and June are all in the red (although they’ve received little attention compared to the January option).
Bitcoin futures: all down today
Bitcoin futures: all down today Photograph: CME

Futures contracts allow traders to bet against an asset, so today’s moves could suggest that bitcoin’s stunning rally is running out of steam. But, less than 1,000 contracts have been traded today (each one is worth 5 bitcoins).

The spot price of bitcoin has also dipped, currently down 1.6% at $18,640 - having hit a new alltime high near $20,000 last night.

CME’s launch of bitcoin futures was accompanied by a series of warnings. For example:

November 29, 2017

“Avoid Bitcoin like the plague”, We’ll talk when it’s $100: Vanguard Founder

Another Wall Street giant joins the bitcoin bashing brigade.

By Samburaj Das - November 29, 2017 (www.cryptocoinsnews.com)


Wall Street magnate John Bogle has warned investors to keep their money away from the bitcoin industry.

Jack Bogle, a legendary investor and founder of Vanguard Group, an investment firm managing $4.5 trillion in global assets, has poured scorn on bitcoin as an asset at a time when the decentralized cryptocurrency is valued above $10,000.

At 88 years old, the now-retired chairman of the Vanguard Group was present at a Council on Foreign Relations event in New York on Tuesday when an audience member sought his opinion on bitcoin.

In remarks reported by Bloomberg, Bogle was sharp in his response, stating:

"Avoid bitcoin like the plague. Did I make myself clear?"

“Bitcoin has no underlying rate of return,” Bogle added, pointing to bonds relying on interest coupons, stocks with earnings and dividends. “Gold has nothing,” he added, before quickly turning to bitcoin again. “There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it,” he reportedly said.

Bitcoin has gone stratospheric this year, rising nearly 1,100% since the turn of 2017 after hitting a fresh all-time high of $10,948 (Coinbase) today.

Bogle is adamant in his belief that bitcoin is overvalued, opining that the value of the world’s first cryptocurrency could double before predicting a seismic correction.

“It’s crazy to invest in the digital asset,” he said, adding:

"Bitcoin may well go to $20,000 but that won’t prove I’m wrong. When it gets back to $100, we’ll talk".

Bogle is only the latest Wall Street figure to join the list of nearby naysayers. The most vocal and infamous quote of all came earlier in September when noted skeptic and JP Morgan Chase chief Jamie Dimon labeled bitcoin a “fraud” that will see someone “going to get killed.”

Featured image from YouTube/Morningstar, Inc..

Bitcoin Futures Trading is coming to Nasdaq, the World’s Second Largest Stock Market

By Joseph Young - November 29, 2017 (www.cryptocoinsnews.com)


The $6.831 trillion stock market Nasdaq, the world’s second-largest stock exchange behind New York Stock Exchange, will enable bitcoin futures trading by mid-2018.

Nasdaq and Cantor to Integrate Bitcoin by First Half of 2018


A Wall Street Journal report revealed that Nasdaq and Cantor Fitzgerald & Co. will list bitcoin futures within the first half of 2018. The two financial institutions are “rushing” the integration of bitcoin given the cryptocurrency’s recent surge in price, to $11,441.

According to sources familiar with the Nasdaq’s plans for a bitcoin futures exchange launch, Nasdaq’s bitcoin futures and contracts will be listed on Nasdaq Futures. Through that, investors in the traditional finance sector and stock brokerages will be able to engage in bitcoin trading.

In an interview with WSJ, Cantor, a major US-based financial firm, also revealed that it intends to launch bitcoin futures and derivatives on its flagship exchange.

Shawn Matthews, chief executive of Cantor Fitzgerald & Co., stated that cryptocurrencies are a new asset class that “is not going away,” and that bitcoin is here to stay.

He stated:

"The asset class is not going away. If you look at the next level, it will be the institutions coming in and being larger participants in the marketplace, especially as liquidity gets better".

Cantor’s futures exchange has already been approved by the US Commodities and Futures Trading Commission (CFTC), and considering that CFTC has approved several bitcoin futures listings including the bitcoin options, derivatives, and futures exchange of LedgerX, regulatory hurdles of Cantor in listing bitcoin are expected to be minimal.

Nasdaq’s Bitcoin Integration Will Trigger Other Exchanges to Adopt Bitcoin


Other major exchanges including Nodal Exchange are actively investigating the potential of listing bitcoin futures on their regulated exchanges and trading platforms.

John D’Agostino, a former Nymex executive, told WSJ that every department of every regulated exchange is considering listing bitcoin futures, and that the number of bitcoin futures exchanges will drastically increase throughout 2018, as leading exchanges and markets such as CBOE, CME, Nasdaq, and Cantor move to implement bitcoin.

“Every research department of every regulated exchange is saying, ‘Can we do this?. The majority of costs associated with that are marketing. If people want to trade this thing, why wouldn’t you?. This is a gift from the heavens,” said D’Agostino.

In early 2017, the integration of bitcoin futures could have required marketing to a certain extent to attract investors within the traditional finance sector. Currently, the mere act of integrating bitcoin is an impeccable marketing strategy. Some reports revealed that if multi-billion dollar companies like Overstock switch their businesses to cryptocurrency-focused ventures, they are likely to see 70 to 100 percent increase in sales and market valuation.

Given the rapid increase in the mainstream adoption of bitcoin and the rise in demand for cryptocurrencies, every exchange in the US and in the global finance market is planning to integrate bitcoin in the short-term. Nasdaq’s listing of bitcoin futures will trigger more exchanges to pursue the path of bitcoin futures in the upcoming months.

Featured image from Shutterstock.

November 26, 2017

Bitcoin will be safe haven during next stock market crash, Says expert

By Gareth Jenkinson - November 26, 2017 (cointelegraph.com)


As Bitcoin powered ahead to a new high for a second week in a row, some have speculated that institutional investors could seek safe haven in the virtual currency in the future. The prevailing rhetoric over the past month has been more affirming than damning of cryptocurrencies, with the likes of Ronnie Moas and Max Keiser predicting new highs in 2018. Speaking to RT, eToro analyst Mikhail Mashchenko says financial institutions could look to Bitcoin if a major financial crash hits global markets.

“The demand for Bitcoin is growing as the crypto market has become less volatile, and an increasing number of professional investors see it as insurance.”

Second-oldest bull market


The current bull market in stocks is the second-longest in history, according to Fortune, having lasted 104 months so far. The longest bull market in history ended in 2000 after an impressive 113 month run. With the current rally getting a bit long in the tooth, many on Wall Street are making contingency plans for the stock market’s inevitable turn. If Mashchenko is right, Bitcoin will have a role in some of these plans.

Shifting opinions


Mashchenko’s statements come on the back of changing sentiment in the mainstream financial sector. Last week, JP Morgan Chase announced plans to offer Bitcoin futures on the Chicago Mercantile Exchange - an important move by one of the biggest banking and financial services providers in America. Even more satisfying, this moves comes only months after Chase CEO Jamie Dimon condemned Bitcoin as a scam.

Online banking service providers and exchange operators LedgerX and Revolut are also adopting Bitcoin support. The former was recently cleared to offer Bitcoin derivatives as people look to do more than just trade the cryptocurrency.

“LedgerX launched its first long-term options for Bitcoin, with an expiration date of December 28, 2018. In the coming months, we will continue to see the ‘domestication’ of Bitcoin: the Chicago Board Options Exchange and the Chicago Mercantile Exchange are planning to launch tools based on the cryptocurrency in the near future.”

Big money


If and when a stream of institutional investors start investing large amounts of capital into cryptocurrencies, some of the stunning predictions made by Bitcoin bulls could well be realised. However, Mashchenko’s prediction was quite conservative, suggesting that Bitcoin reaching a $10,000 high by the end of 2017 would be driven by emotion rather than fundamentals:

“We could see a Bitcoin at $10,000 in a month or so. However, such a surge will be based on emotions, not on fundamental factors. So, further growth of the cryptocurrency will require something more than euphoria.”

Having hit the $8,000 mark last week, Bitcoin surged another $1,000 dollars in just a few days, breaching the $9,000 level during the Thanksgiving weekend. At press time, the price of Bitcoin sits at $9,500, just $500 below Mashcenko’s predicted level.

November 22, 2017

‘Bitcoin will end the year at $10,000,’ Says billionaire investor Mike Novogratz

BY Bhushan Akolkar - November 22, 2017 (www.coinspeaker.com)


Renowned Bitcoin investor and crypto-hedge-fund manager, Mike Novogratz believes that Bitcoin can touch $10000 by the end of this year.

Legendary hedge fund manager and a billionaire trader – Michael Novogratz – is yet again seen pumping confidence in Bitcoin investors with his recent prediction.

It was just last month in October when Novogratz predicted Bitcoin to touch $10,000 in a time-frame of six months from then i.e. possibly my April 2018. However, these predictions were made before the announcement of Bitcoin-futures contract by CME group which catapulted Bitcoin prices to an unprecedented rally from over $5,500 to $8,000.

Now, in his recent interview with Bloomberg, Novogratz seemed to have turned more bullish than he was a month earlier and has reduced the time-frame of his previous to the end of this year. This means that as per Novogratz Bitcoin prices could touch $10,000 by this year-end.

Novogratz compared Bitcoin to an asset like gold calling it as the new ‘digital gold’ stating that “gold has value solely because people say it has value; bitcoin is built on an amazing technology, there’s a limited supply of it.

This whole revolution came out of a breakdown in trust in the 2008 crisis.” In addition to this, Novogratz also believes that the second-most popular cryptocurrency Ethereum will also surge considerably and trade above $500 by the year-end.

Mike Novogratz is very bullish on the future of Bitcoins and has established a $500 million Galaxy Digital Assets Fund which is the biggest-of-its-kind crypto-hedge-fund. The fund will focus on investing in the blockchain and cryptocurrency space looking to its revolutionary applications and a great future potential.

Novogratz’s hedge-fund has already started active investments in the blockchain space with its first investment in Worldwide Asset eXchange (WAX) which is a decentralized blockchain platform for the development of secure and transparent online in-game virtual item exchanges.

Following Novogratz’s comments, Bitcoin prices were seen shooting up again above $8300 after the prices fell by over 5.4% on yesterday’s news of $31 million worth Tether tokens getting stolen. Novogratz comments however instilled back the lost optimism in the market. It has to be noted though that Bitcoin has witnessed quite a bumpy ride in the past month with a huge volatility and price fluctuation.

According to CoinMarketCap, currently, it is trading at $8253.41 and is seen to be consolidating there. Commenting on the latest price fluctuations in Bitcoin prices, Novogratz said: “We’re in the second or third inning. Because prices have moved so far people are nervous. You made a whole lot of money, there’s news, so you want to book your profit and get out.”

The ambitious launch of $500 million worth crypto-hedge-fund marks Novogratz comeback as a prominent investor after suffering major losses at Fortress Investment Group LLC. Novogratz, who was away from Wall Street for over two years is back in action and is quite optimistic about the new blockchain revolution and the world of virtual digital currencies.

However, many of his peers from the Wall Street are quite skeptical about cryptocurrencies with some few prominent personalities like Jamie Dimon even calling Bitcoin as a big “fraud”. Neil Dwane of Allianz Global Investors said it’s a “scam for criminals around the world,” while Larry Fink of BlackRock Inc. said Bitcoin to be the best tool for money laundering activities.

Quickly pointing out to all his critics, Novogratz who is currently 52 said: “all of those guys are over 60 and I’m not. There’s some truth to that in that it’s difficult for someone who didn’t grow up in a digital world to understand that we’re moving into a digital world.”

In addition to Novogratz, there are several other prominent figures who have increased their targets for Bitcoin prices after the recent bull run. Standpoint Research’s Ronnie Moas has corrected his target second time this month from $11,000 to $14,000. There are several factors which can contribute to next upward journey for Bitcoin from here.

November 15, 2017

Massive Hedge Fund likely to begin trading Bitcoin

By David Dinkins - November 15, 2017 (cointelegraph.com)


Reuters reports that Man Group, a UK-based hedge fund, will be getting involved in Bitcoin trading if CME Group’s plans to open a regulated futures exchange are approved. According to Business Insider, Man Group is “one of the largest hedge funds in the world” and the fund’s website points out that they manage $103.5 bln in funds.




































Effects


Even a fraction of $103.5 bln could make a big impact on the markets, but more important, Man Group’s announcement continues to solidify digital currency as being worth of Wall Street’s attention. Bitcoin in particular is finding more and more acceptance in traditional markets. Likewise, futures markets and hedge fund involvement create more on-ramps into the mainstream financial system and more ways for large but cautious investors to get involved.

Hedge funds are only open to accredited investors, that is, those whose net worth exceeds $1 mln. However, such funds have a much wider latitude to trade whatever types of assets or instruments it thinks would be profitable for its clients. Mutual funds, on the other hand, are open to regular retail investors but have greater restrictions as to how they can invest their funds.

The holy grail for retail investors would be an exchange traded fund, or ETF. A Bitcoin ETF would allow ordinary investors to easily gain exposure to Bitcoin by adding it to their brokerage or retirement accounts. Greater acceptance by Wall Street and greater liquidity on regulated futures markets, such as CME’s, will almost certainly usher in an ETF.

November 09, 2017

Fiat Currency will be laughable in five years - Says billionaire Tim Draper

By Darryn Pollock - November 09, 2017 (cointelegraph.com)


Tim Draper has every reason to be bullish on Bitcoin as he has seen his $20 mln investment in the digital currency grow by over 1,000 percent in just three years. Draper is now predicting that in five years fiat will be so obsolete, it will be laughable.

The tech investor has made a fortune backing companies like Skype, Tesla and Twitter. He first got involved in Bitcoin after he bought 30,000 of them in 2014 in a government auction of assets seized from Silk Road.

Don’t be a laughing stock


While Draper may be on the defensive after his ICO baby Tezos became embroiled in scandal, leading to a class action lawsuit, he is still highly bullish about the future of the grand-daddy of digital currencies. Draper told Forbes:

"In five years, if you try to use fiat currency, they will laugh at you. Bitcoin and other cryptocurrencies will be so relevant ... there will be no reason to have the fiat currencies."

Bitcoin, and the rest of the cryptocurrency market, recently made it over $200 bln in a rally that saw Wall Street again add fuel to the fire by announcing trading in Bitcoin futures. This pales in comparison to the trillions of dollars in global fiat currency supply. Nonetheless, the fact that Bitcoin has appreciated over 600 percent this year is reason enough to believe it is on a rocketing trajectory, aiming at the fiat market.

Fiat bound


Draper goes on to explain how fiat has its limitations, the same limitations that are really starting to bug a progressive and forward thinking global population.

Crossing the border for any currency is never a pleasing or easy exercise. The Nigerian Naira drops 30% when you cross the border. Outside Argentina, the country's peso is currency nearly worthless, and there are other countries where this is true as well.

In Zimbabwe and Venezuela, their currencies have either disappeared totally, or are on the brink of total collapse, and already Bitcoin is doing its bit to pick up the pieces.

Seeing a future for ICOs


Draper may have been stung by Tezos, however, he still sees a future for altcoins and ICOs. The billionaire sees a future with hundreds, if not thousands, of different digital coins. Draper added:

“They’re all going to interrelate … and there will be exchange rates for all of them. My guess is that it will centralize around a wallet that you have, and when you pay for that Starbucks, your wallet will optimize to whichever currency has most value."

November 04, 2017

Equities brokerage warns against CME’s Bitcoin Futures plan

By Lester Coleman - November 04, 2017 (www.cryptocoinsnews.com)


Themis Trading LLC, an equities brokerage agency for institutions, has joined the attack on CME Group’s decision to launch bitcoin futures. A recent blog on the company’s website argues that the U.S. Commodity Futures Trading Commission (CFTC) should not approve CME’s bitcoin futures.

Other Wall Street investors have also spoken out against CME’s bitcoin futures and compared it to collateralized debt obligations that caused the 2008 financial crash.

Calling themselves “market structure critics,” Themis Trading states right off the bat that they are “by no means cryptocurrency experts” and have joked that they would never write a note on blockchain.

CME Reverses Its Position


The blog takes CME Group President Bryan Durkin to task for reversing his position from a couple of months ago that he had no intention to launch bitcoin futures. The blog cited a Bloomberg TV interview in which Durkin said he doesn’t see going forward with a futures contract in the near future since bitcoin is “very nascent right now.”

The reason for his reversal can be found in CME CEO Terry Duff’s acknowledgment that clients are demanding such a product, the blog noted. Another reason is that CBOE announced plans to list bitcoin futures and LedgerX is already trading options and swaps.

Exchanges Cave To Demands


Themis Trading views bitcoin futures as part of a problem that has been going on in the equities market for years. Big, high-frequency clients demand a product from exchanges that are willing to comply because they don’t want to lose an opportunity, even if they themselves have reservations about the product.

Major equities exchanges such as BATS and NYSE get fined millions of dollars as a result of caving in to big clients for sending market data to certain customers before other customers and for not disclosing special types of orders.

Themis Trading believes CME knows the underlying bitcoin market is “very suspect.” CME knows, according to the blog, that bitcoin exchanges have been subject to many fraud cases over the past few years, and that there is no regulation of bitcoin exchanges.

CME rationalizes creating a futures product based on “an underlying market of bucket-shop type exchanges” by creating a reference price called the CME CF Bitcoin Reference Rate, a volume-weighted average of 5-minute time intervals that a select group of bitcoin exchanges provides. The averages were necessary since bitcoin spot prices have varied a lot across trading venues, especially during periods of high volatility, CME has noted.

The creation of an index serves to legitimize bitcoin trading, the blog observes.

Also read: World’s largest derivatives exchange CME Group to launch bitcoin futures

Bitcoin Still Risky


The SEC stated in denying the Winklevoss bitcoin ETF there is a lack of regulation of bitcoin exchanges. One observer noted at the time that illegal practices would be easy to implement and impossible to detect.

Themis Trading claims it would be dangerous for the CFTC to approve the bitcoin futures proposals, given the SEC’s concerns about lack of regulation. Themis Trading compared the proposal to collateralized debt obligations sold during the financial crisis – instruments that gave a sense of approval for high-risk mortgages. A bitcoin future would give a similar approval to an unregulated and risky instrument with a history of fraud.

Themis Trading further fears that such approval would sway the SEC to approve bitcoin ETFs, which would get buried in portfolios that lack risk tolerance for trading unregulated assets.

The company claims it is not anti-futures, anti-bitcoin or anti-ETF, only anti-fraud. Until bitcoin exchanges “clean up their act” and address the surveillance issue, derivative cryptocurrency products should not be approved.

Featured image from Shutterstock.

October 21, 2017

$25,000 Bitcoin price prediction is ‘conservative’ - a Wall Street strategist

By Josiah Wilmoth - October 21, 2017 (www.cryptocoinsnews.com)


FundStrat Global Advisor co-founder Tom Lee turned heads when he first predicted that the bitcoin price could reach $25,000 by 2022, but he has maintained this bullish stance even amid the severe downturn that immediately followed China’s ban on initial coin offerings and bitcoin exchanges.

One-Year Bitcoin Price Chart from Coinbase



In the first episode of Business Insider’s web segment “the bit”, Lee explained his methodology in arriving at the $25,000 number — which he says is a conservative estimate. He revealed that FundStrat values bitcoin similarly to how it would value a social network — using a principle known as Metcalfe’s law. He says that, according to Metcalfe’s law, the value of a network is the square number of its users:

“And so if you build a very simple model valuing bitcoin as the square function number of users times the average transaction value. 94% of the bitcoin moved over the past four years is explained by that equation,” Lee explains.

He adds that, in the digital age, “personal information is our gold”, and because bitcoin is essentially a database with an unprecedented level of security, it is digital gold. He uses this comparison quite literally; he expects that younger investors who have never known a world without the internet will increasingly use bitcoin as a store of value in place of precious metals, as their parents and grandparents did:

“And if personal information is our gold, bitcoin is our digital gold. So we think that the gold market, which is 9 trillion, and for a generation of investors gold was their store of value. I think this next generation of young people view bitcoin as their store of value.”

He estimates that if bitcoin captures 5% of the gold market, it should achieve a fair market value of $25,000. “It’s actually the most conservative collection of elements to get to [that number],” he asserts, as it ignores inflation and assumes that investors will hold a smaller percentage of alternative currencies in their blended portfolios than most cryptocurrency investors currently do.

“You could easily get to $100,000, $200,00 numbers,” he adds, stating elsewhere that, “I think you can easily see a liquidity-based move in bitcoin that’s much beyond our target prices” if institutional investors enter the crypto markets.

Indeed, hedge fund manager Mark Yusko — relying on similar analysis to that of Lee — believes there is a 75% chance that the bitcoin price will reach $500,000 within two decades and states that it could rise as high as $1 million.

For the short-term, meanwhile, Lee has set a mid-2018 bitcoin price target of $6,000 — a forecast that initially appeared optimistic but increasingly appears quite conservative.

Featured image from Shutterstock.


Posted by Josiah Wilmoth

Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth@cryptocoinsnews.com. Website.