"The market looks to begin a consolidation phase above $22,000," according to Matt Blom, head of sales and trading for the cryptocurrency firm Diginex. "Further attempts to drive the market lower are likely to be met with firm support from the bulls."
XRP (XRP), the digital asset used for payments, fell for a fourth straight day, down 17% over that stretch, after Brad Garlinghouse, CEO for San Francisco-based Ripple, said he had been informed by regulators that the company would be sued by the U.S. Securities and Exchange Commission. The coming suit is believed to relate to sale of XRP, and whether the tokens represent securities that needed to be registered with authorities. Ripple disputes the claim and argues that other branches of the U.S. government have deemed XRP to be a currency.
“It’s an attack on the entire crypto industry and American innovation,” Garlinghouse said in an emailed statement.
In traditional markets, European stocks recovered some of Monday's steep losses while U.S. stock futures wavered between gains and losses, as investors assessed elevated coronavirus case levels alongside the rollout of vaccines and economic-stimulus measures.
Bitcoin was launched in early 2009, and during its first decade a lot of notable and well-respected investors, economists, bank executives and financial-news commentators said a lot of things about the cryptocurrency.
Times change, and it's arguable that, in the push and pull of global markets, all that's now old news or maybe just water under the bridge.
But as First Mover reviews the year that was, anything said in 2020 is fair game. Here's a brief rundown of some notable pronunciations on bitcoin, in chronological order, as bitcoin tripled in price to about $23,000 from $7,168 at the start of the year.
Jan 22, 2020. Peter Schiff, CEO, Euro Pacific Capital, via tweet: "I concede that many people who bought bitcoin in the past and sell it now will profit. But those who buy it now and hold will suffer a loss."
Feb. 28, 2020. Greg Cipolaro, then-co-founder of Digital Asset Research, now head of research for NYDIG, in interview: “As interest rates decline, you’re more likely to tip the seesaw toward assets that don’t have yield, such as collectible assets like artwork or gold or bitcoin.”
May 18, 2020. Arcane Research, a cryptocurrency analysis firm, in report: “Bitcoin has been performing well, while the stock market has struggled... . If this trend continues, it could also be strengthened by people finally believing the narrative and then becoming a self-fulfilling prophecy.”
May 27, 2020. Goldman Sachs Consumer and Investment Management Division, in presentation: "Cryptocurrencies including bitcoin are not an asset class. ... We do not recommend bitcoin on a strategic or tactical basis."
July 13, 2020. Arca Funds, digital-assets investment firm, in weekly update: “We believe bitcoin will remain the best insurance policy against currency collapse and a complete unwind of the financial system as we know it.”
Aug. 14, 2020. Lennard Neo, head of research at Stack Funds, in a report: “Bitcoin could be a ‘risk-on hedging-type asset,’ where it performs relatively well in thriving markets, yet acting as a hedge to global uncertainties, displaying financial attributes that fall in between that of equity and gold.”
Oct. 9, 2020: Mati Greenspan, founder of the foreign-exchange and cryptocurrency analysis firm Quantum Economics, tells subscribers: “It’s a bit surreal to see gigantic corporate entities now going knee-deep in bitcoin.”
Nov. 10, 2020. Michael Saylor, MicroStrategy CEO, in interview: "Ultimately you have to find something which you can’t print more of that doesn’t have its fundamental underpinnings tied to a fiat currency, and the only thing that I can find right now is bitcoin.”
Nov. 30, 2020. Inigo Fraser-Jenkins, co-head of portfolio strategy team for Alliance Bernstein, in report: "The volatility of bitcoin has significantly reduced, making it more attractive in its potential twin roles both as a store of value and as a medium for exchange."
Dec. 16, 2020. Scott Minerd, chief investment officer of Guggenheim Partners, in interview with Bloomberg TV: "Bitcoin has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions."
- Bradley Keoun
(Editor's Note: CoinDesk's Omkar Godbole, who writes Bitcoin Watch, is off this week.)
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