Recently, blockchain headlines have been flooded with things of negative news. KuCoin was hacked on September 26; Two US regulators followed BitMEX on October 1; The UK Financial Conduct Authority (FCA) banned cryptocurrency derivatives on 6 October; It became known that negotiations on stimulus payments in the United States stopped around 9 October.
However, the price of Bitcoin (BTC) has generally remained unchanged, despite many seemingly unfavorable stories. This could indicate a potential rally in the coming weeks, according to CoinShares’ report released on Monday.
CoinShares CEO Danny Masters writes: “It tells me that shareholders are not nervous, and that leverage is low – a theory supported by portfolio activity and traffic – and makes short-term price prospects happen from neutral to positive.”
In the days after each of these events, the Bitcoin price generally held up, fell only slightly from the normal price action and increased a lot shortly afterwards.
Masters wrote: “In my 30 years of trading, my most important golden rule has been to trade when the news does not coincide with price action.” Speaking of events, the Masters added: Given that I was around the cryptocurrency under MtGox, the China ban, the Bitfinex hack, Trump’s comments and many other market-shaking stories that highlighted Bitcoin’s history, I was surprised at the lack of negative pricing, especially around BitMEX. . FCA and BitMEX. Like recent events, they are potentially bearish.
Bitcoin has gained a number of major players in recent months, in part in an attempt to keep these speculators capital from inflation. Masters describes these important contributors in part one of the report, citing Square and MicroStrategic as examples. MicroStrategy allocated $ 425 million to Bitcoin from the Treasury reserves between August and September. In early October, Square earned about $ 50 million in Bitcoin.
“We believe these initiatives are just the beginning of a Treasury diversification strategy that will attract technology and payment companies around the world,” Masters wrote.
Earlier that year, billionaire hedge fund manager Paul Todor Jones placed a major bet on Bitcoin as a hedge against inflation.