Image Source: Pixabay

Bitcoin breaks new records

Bitcoin has reached yet another peak, this week breaking through the $50,000 mark to trade at an all-time high above $58,000 on eToro. Buoyed by last week’s big-name investments and news of a number of large global banks considering the launch of crypto services, interest in the market continues to grow.

That being said, there are also some red flags which could slow its progress. Technical indicators such as the RSI (Relative Strength Index) and Stochastics across numerous chart timeframes are indicating that the crypto asset is overbought, implying that we could soon see a retracement. We’re also seeing signs of divergence, which will be a warning to many investors that the current price trajectory may be weakening, and that consolidation or change in price direction is on the horizon. 

Having spiked above $58,000 on Sunday, this morning it was trading off marginally at $55,800 (at 07:15 am).

David Derhy

Is the bubble burst imminent or are these yet more false promises?

Alongside the technical indicators, we’ve seen business personalities and economics experts weighing in on bitcoin’s future. Economist Nouriel Roubini, or Dr. Doom in some quarters, this week poured cold water again on bitcoin, stating that the Flintstones had a better monetary system. A long-time detractor of crypto’s potential, he asserted his views that it’s a bubble waiting to burst, with the market liable to manipulation. 

This is in stark contrast to Elon Musk, who last week said that bitcoin is a better investment than owning fiat currency. Following Tesla’s $1.5billion bitcoin purchase earlier this month, Musk last week tweeted: “When fiat currency has a negative real interest, only a fool wouldn’t look elsewhere”.

Simon Peters

Will America follow Canada and launch a Bitcoin ETF?

The New York Digital Investment Group (NYDIG) has submitted paperwork to launch a new bitcoin exchange-traded fund. As papers were filed with the SEC on Tuesday, it named NYDIG Trust Company LLC as the fund’s bitcoin custodian and Morgan Stanley as an authorized participant, following rumors about the bank’s appetite to get more involved with cryptoassets. Morgan Stanley’s role will revolve around selling shares to the public at prices that reflect the fund’s assets, supply and demand, and underlying market conditions.