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John Pfeffer, founder of Pfeffer Capital, together with Travis Kling, founder and CIO of Ikigai Asset Management and Charles McGarraugh, head of markets for Blockchain, discussed Bitcoin (BTC) in the context of Brexit, trade wars and geopolitical uncertainty.

On Nov. 20, the panel of three sat down for an interview with Bloomberg’s Alastair Marsh at the Future of Digital Assets briefing in London, where they took a closer look at the idea that Bitcoin becomes more attractive as an investment during times of global uncertainty.

Bitcoin the ultimate store of value?

(1:20) Charles McGarraugh started off the conversation by agreeing to the idea that BTC does indeed become more appealing during threats of recessions and general global times of uncertainty. “I totally buy into that idea,” he said.

(3:12) John Pfeffer continued by saying that BTC is poised to become digital gold. “Sooner or later that is going to happen,” Pfeffer said, pointing out that if BTC were already considered today’s digital gold, the upside of BTC would not be the same, as it would be worth at least one or two orders of magnitudes more. He added:

“We think of [BTC] in our portfolio as it goes into our venture portfolio. […] It is a venture that aspires to become digital gold, and is showing great promise of doing that. Because it hasn’t done that yet […] there is a lot of upside, but also downside.”

(5:35) Travis Kling gives perhaps the most direct answer when he says that Bitcoin is a risk asset, one with specific investment characteristics “that become increasingly more attractive the more irresponsible monetary and fiscal policy is from central banks and governments globally,” adding:

“Investors in BTC today aren’t investing in Bitcoin as a store of value today, we’re speculating that it may become a store of value because it has the characteristics to be a good store of value.”

(11:00) Kling further points out that if the United States was still on the gold standard, and was balancing its budget every year instead of spending a trillion dollars more than they collect, “we might not need Bitcoin so much.” However, as Kling puts it, “that ain’t the world we’re living in.”

US national debt growth is not sustainable

In November, the head of the United States Federal Reserve Jerome Powell noted that currently, U.S. national debt is growing faster than nominal GDP. He admitted that the current economic policy is not sustainable, but that it is not its job to fix it. “Ultimately in the long run that’s not a sustainable place to be,” he said. 

U.S. debt has now topped $23 trillion, which adds up to $70,000 per head of the population, or more than $1 million for every Bitcoin that will ever exist.

Cointelegraph By Joeri Cant , 2019-11-20 22:57:00 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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