The headlines about blockchain have been filled with negative news lately. On September 26, KuCoin underwent a major hack; On October 1, two US regulators pursued BitMEX; UK Financial Conduct Authority (FCA) Banned Cryptocurrency Derivatives October 6; News of the suspension of talks on stimulus payments in the US around October 9th.
Bitcoin (BTC) price seems to have largely remained unchanged despite this seemingly unfavorable set of stories. This could indicate upside potential in the coming weeks, according to a Crypto Investment Solutions report from CoinShares released on Monday.
CoinShares CEO Danny Masters writes: “This tells me that stock holders are not nervous and that leverage is low — a theory supported by portfolio activity and traffic — and is causing short-term price projections to shift from neutral to positive.”
In the days following each of these events, the price of bitcoin has largely remained unchanged, only marginally declining from its normal price activity, and rising frequently shortly thereafter.
Masters wrote, “In my 30 years of trading, the most important golden rule has been to act when news doesn’t coincide with price action.” Masters added, “Having been around cryptocurrencies during MtGox, the Chinese embargo, the Bitfinex hack, Trump’s comments and many other market-disruptive stories throughout Bitcoin’s history, I was amazed at the lack of negative price action, especially around BitMEX.” FCA and BitMEX events as potential bearish events.
Over the past few months, Bitcoin has acquired a number of major players, in part in an attempt to keep these speculators’ capital from inflation. In the master’s program, these key participants are detailed in the first part of the report, with examples of area and microstructure. MicroStrategy allocated $ 425 million to Bitcoin from its Treasury reserves between August and September. In early October, Square raised nearly $ 50 million in Bitcoin.
“We believe these measures are just the beginning of a treasury diversification strategy that will attract technology and payments companies around the world,” Masters wrote.
Earlier that year, billionaire hedge fund manager Paul Todor Jones made a big bet on bitcoin as a hedge against inflation.