Bitcoin Breaches $16K as (Committed) Holders Diss Dalio’s Diss

Bitcoin briefly climbed above $16,000 for the first time in three years before quickly falling back below the psychological threshold.

Digital-asset market traders and analysts say the cryptocurrency is likely to make another run higher, with strong demand expected from traditional investors looking for a hedge against inflation, at a time when sellers appear unwilling to part with their bitcoin holdings.

“Against the backdrop of stimulus from the Federal Reserve, we expect investors holding cash to continue to allocate to bitcoin,” said Kyle Davies, co-founder of the digital-asset fund Three Arrows Capital.

In traditional markets, European shares headed toward their first drop of the week on disappointing earnings reports, and U.S. stock futures pointed toward a lower open.

A powerhouse panel discussion between Federal Reserve Chair Jerome Powell, European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey is scheduled for 5:45 p.m. central European time (16:45 universal coordinated time, 11:45 a.m in New York). The topic is “central banks in a shifting world.”

Gold strengthened 0.2% to $1,870 an ounce.

Read More: Bitcoin Price Breaks Above $16K for First Time in 3 Years

Market Moves

Ok, so apparently hedge fund titan Ray Dalio doesn’t like bitcoin.

But guess who’s not selling? People who already own it – and look to profit handsomely from doing so.

The oldest and largest cryptocurrency doubled last year, and it’s doubled again in 2020. Compare that with the Standard & Poor’s 500 Index of large U.S. stocks, which has gained 44% since the start of 2019.

So what’s happened, according to data extracted from the Bitcoin blockchain, is that holders of a common form of the cryptocurrency are now nearly unanimously in the money – sitting on paper profits, as it were. And that might be because they simply don’t want to part with the digital asset that’s already made them so much money.

It also…

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