- Sentiment among Bitcoin buyers hits all-time high.
- More investors are moving their wealth into BTC.
- Wall Street continues to struggle as economy metrics suffer under COVID.
The score, based on a variety of different sources including market movements, volatility and social media tipped into the 90s. The last time it was higher was in June 2019 when Bitcoin’s price began picking up after its protracted pull back from 2018.
The sentiment comes as celebrities and investors alike have poured into the space looking to sate their FOMO and become one of the 25,000 Bitcoin millionaires currently enjoying the boom.
On the celeb side, Game of Thrones star Maisie Williams has taken the plunge after she asked Twitter whether she would go long on Bitcoin and got 900,000 replies.
On the investor/ludicrously rich side was Mexico’s, second-wealthiest man. Ricardo Salina Pliego has moved 10% of his net worth - around $1.3 billion - into BTC.
Even Bitcoin critic Ray Dalio is changing his tune. The head of the world’s largest hedge fund admitted on Twitter that he “might be missing something” about Bitcoin’s good fortunes. Of course, he still caveated the statement with the idea that central banks or big institutions are unlikely to ever use it.
But as a series of responses from crypto luminaires attested, it seems like its only a matter of time.
While the Bitcoin party bus continues its tour of crypto critics, on the fringes there are a few signs some investors are beginning to take note of.
Over in the futures markets - while the moving averages are firmly in the “strong-buy” category, looking at the oscillator index - which looks at two different moving averages to get an indication of whether an asset is being over bought or oversold - sentiment is ticking towards the former.
And on the Mayer Multiple, a measure of whether Bitcoin is in a bubble, while things are far from over-inflated, the charts are moving in that direction.
There's also Bitcoin's rising volatility. While Bitcoin has been sitting steadily below 3%, it's 60-day moving average went above 3%, seen yesterday as Bitcoin dumped $1,000 in 20 minutes. There have also been strong outflows from crypto exchanges over the past week.
Proceed with caution, all ye who enter BTC.
Stocks dip as economies continue to suffer under COVID
It’s becoming a familiar story over on Wall Street. Investors are looking at the horizon for signs of calmer seas, but struggling to ignore what’s happening right in front of them.
European stock markets opened lower on Wednesday as the fall out from COVID has yet to bottom out.
Britain’s FTSE 100 dropped 0.5% at the open, while Germany’s DAX lost 0.4% and France’s CAC 40 dropped 0.3%.
Over in the US, it was another record day of COVID cases, surpassing 160,000 for the first time. On top of that, consumer spending data was at its lowest since April. As various states step up lockdown restrictions, and a stimulus package is still far from being approved, investors are preparing for a tough winter.
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