Bitcoin vaults to new record above $4K, boosted by Japan and multiplying its value fourfold
https://www.cnbc.com/2017/08/12/bitcoin ... rfold.html
The total value of the 750 or so digital currencies is approaching $150 billion. Of course, that still makes them a minnow in the world of currencies where about $5 trillion is traded daily.
The supply of bitcoins is capped at 21 million. To date, there have been about 16.5 million Bitcoins “mined”.
Ark Innovation ETF (NYSE: ARKK). This ETF owns a position in the Bitcoin Investment Trust (OTC: GBTC), from a company called Grayscale, and which does own some Bitcoins.
However, I do not recommend you buy the Bitcoin Investment Trust directly. Since it is the only publicly-traded investment vehicle that owns Bitcoin, it trades at a huge premium to net asset value. That premium will disappear as Bitcoin ETFs and other instruments become available.
However, it makes up only 8.95% of the overall ARKK.
Its other holdings are spread across sectors that Ark calls the Genomic Revolution, Web x.0 and Industrial Innovation.
Some of the other large holdings in the ETF include Tesla Motors (Nasdaq: TSLA), Amazon.com (Nasdaq: AMZN), Athenahealth (Nasdaq: ATHN), Illumina (Nasdaq: ILMN) and Nvidia (Nasdaq: NVDA).
This week, for example, the Chinese authorities acted on their much-anticipated crackdown on cryptocurrencies by banning “initial coin offerings,” or ICOs.
The regulator said that those who have already raised money must provide refunds, though it didn’t specify how the money would be paid back to investors.
It also said digital token financing and trading platforms are prohibited from doing conversions of coins with fiat currencies.
Digital tokens can’t be used as currency on the market and banks are forbidden from offering services to initial coin offerings.
What if you can’t use bitcoin without risking jail time? What if you can’t convert your cryptocurrencies into regular, government-issued paper? What good is a better form of money if you can’t use it?
Bitcoin triggered a long-term bull trend continuation signal last week as it broke out above $4,979.90 to a new record high. Since then we’ve seen short-term weakness after the digital currency hit a record high of $5,846.78 last Saturday. That price area was subsequently tested as resistance over the following four days before Bitcoin fell on Thursday. The low of the pullback so far has been $5,101.36, which put Bitcoin 12.7 percent off the high.
Given the strong long-term uptrend and the trend continuation trigger last week, a resumption of the bull trend can be anticipated following the completion of the current pullback. Nevertheless, there are several technical reasons to prepare for a deeper pullback than what’s been seen so far.
First, Bitcoin failed to break out above Saturday’s high after a four-day attempt. The failure was indicated on a drop below the five-day low of $5,380.00 on Thursday. Also, we now are starting to see the beginning of a series of lower daily highs and lower daily lows. That’s the beginning of a downtrend, although in this case the expectation is for a short-term counter-trend decline given the larger and more significant long-term bull trend. In addition, the Saturday high was right in the area of two Fibonacci measurements, marking potential resistance. One ratio was the 141.4 percent extension of the most recent 40.3 percent correction at $5,842.73, and the other the 200 percent projection of the first leg up in the current near-term uptrend at $5,815.38.
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