Crypto billionaire Mike Novogratz says bitcoin holding at $40,000 shows the market is in good shape – and recommends buying the dip

GettyImages 1036973496 (1)
Mike Novogratz is one of the biggest names in crypto.

  • Mike Novogratz said bitcoin bouncing off $40,000 is a good sign for the crypto market.
  • He said he’s not worried about the recent sell-off and that it’s a “buy-the-dip” opportunity.
  • Bitcoin and ether fell sharply on Monday as the Evergrande crisis rattled financial markets.
  • See more stories on Insider’s business page.

Billionaire crypto investor Mike Novogratz has said bitcoin holding firm at $40,000 during the recent sell-off is a good sign for the market, and recommended buying the dip in digital assets.

Speaking after cryptocurrencies sold off sharply at the start of the week, Novogratz told CNBC earlier this week that he thought the market remained in good shape. Cryptocurrency prices rallied on Thursday, with bitcoin and ether rising along with altcoins.

“We held $40,000 overnight in bitcoin and $2,800 in ethereum. I think those are very important levels for people to watch. As long as those hold a think the crypto market is in good shape,” he said.

Bitcoin rallied 5% to $44,159 on Thursday, according to Coinmarketcap, while ether – the cryptocurrency on the ethereum network – rose 6.4% to $3,122.

Yet both remain considerably lower than on Monday, when bitcoin stood above $47,000 and ether was above $3,300. They fell sharply on Monday, with bitcoin testing $40,000 on Tuesday, as worries about Chinese property developer Evergrande shook markets, causing investors to ditch riskier assets.

Read more: 3 altcoins to buy: a crypto consultant explains why ether could surge to $15,000 and flip bitcoin, and criticizes one token as an overvalued ‘joke’

Novogratz said he’s not nervous about the declines, however, and said he thinks it’s a “buy-the-dip” situation.

The crypto billionaire, a former hedge fund boss who founded the digital assets investment firm Galaxy, said he’s seeing lots of engagement and activity in the crypto market. He pointed to SoftBank’s participation in a $680 million funding round for sports NFT marketplace Sorare.

Novogratz said he thought Monday’s sell-off was also driven by concerns about regulation in the US. “The market got itself a little too long,” he said.

Read the original article on Business Insider

Bank of America is allowing some clients to trade bitcoin futures, report says

BofA logo
Bank of America is reportedly addressing demand for bitcoin access by clients.

  • Bank of America has approved access to bitcoin futures to some clients, CoinDesk reported Friday.
  • The bank gave the green light due to the large amount of margin required to trade the futures, the report said.
  • Bitcoin is trading at less than half its all time high of near $65,000 achieved earlier this year.
  • See more stories on Insider’s business page.

Bank of America is allowing some of its clients to trade bitcoin futures, according to a CoinDesk report, a move that highlights the growing push by institutions into the cryptocurrency market.

The second-largest bank by assets in the US has been conservative in dealing with cryptos but it has approved giving some clients access to the market due to the large amount of margin required to trade the futures, CoinDesk reported Friday, citing an unnamed source. Another source told the site some of BofA’s clients are setting up to trade bitcoin futures and that one or two may have already started trading.

To address institutional interest in digital currencies, Bank of America recently launched a cryptocurrency research team, according to a memo obtained by Insider.

“Cryptocurrencies and digital assets constitute one of the fastest growing emerging technology ecosystems,” said Candace Browning, head of global research, in a July 8 memo addressed to Merrill Lynch Wealth Management employees and partners.

Goldman Sachs has expanded its presence in the bitcoin market by offering non-deliverable forwards, a derivative tied to bitcoin’s price that pays out in cash, Bloomberg reported in May.

The news of BofA’s bitcoin move comes as the market value of the global cryptocurrencies has dropped to $1.3 trillion from a high of more than $2.4 trillion in May, led largely by a selloff in bitcoin. Bitcoin traded below $32,000 on Friday and was headed toward its worst weekly performance in more than a month.

The crypto market has been struggling in part on the back of regulatory headwinds from China and the US. This week, Federal Reserve Chairman Jerome Powell said the US won’t need stablecoins and cryptocurrencies if the central bank were to issue its own digital currency.

Read the original article on Business Insider

Bitcoin bull Michael Saylor says the cryptocurrency’s volatility will always hurt those who invest purely to trade

Michael Saylor, CEO of MicroStrategy
Michael Saylor, CEO of MicroStrategy

  • Michael Saylor said bitcoin’s volatility will always be disappointing for some investors.
  • In an interview with Sven Henrich, Saylor said anyone who invests purely to trade could run into trouble.
  • The MicroStrategy CEO also said he views his bitcoin holdings as long-term tech and savings investments.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin bull Michael Saylor said the cryptocurrency’s volatility will always hurt those who invest purely to trade or based on speculation in a recent interview with Northman Trader’s Sven Henrich over the weekend.

“The people that invest in bitcoin as traders – and they don’t, they don’t have a technology view or the macro view – they’re always going to be disappointed because of volatility,” Saylor said.

He urged investors not to put more money than they can lose into bitcoin and crypto markets, especially if they were basing trades on speculation and said he is not in a place to give advice to anyone planning to invest or trade with bitcoin over a short timeframe.

“If on the other end you have a 10-year technology conviction and a 10-year macroeconomic conviction, or if you have an ideological conviction, then take money that you can hold for ten years,” Saylor said, adding that the volatility of bitcoin does not impact him personally as he has invested money he can afford to lose and can wait for the cryptocurrency to pick up from bigger sell-offs.

MicroStrategy CEO Saylor is a key figure in the online bitcoin and crypto space, who has consistently said the cryptocurrency is a form of investment. He sees it as a way to store value in place of traditional assets like gold and a way to protect his investments from increasing inflation and taxes.

In recent months, he has made bitcoin part of his company’s financial. Just last month MicroStrategy sold shares worth $1 billion, in parts to purchase more bitcoin, after having already completed a $500 million bond sale to raise cash for more crypto buying.

At the time, the company owned 92,079 bitcoin – currently worth over $3.2 billion based on the most recent price of bitcoin according to Coingecko data.

In comparison to those who buy bitcoin to trade with it or based on speculation, Saylor told Henrich that he is focused on the long-term and views himself as somewhat of a tech investor – not least because of bitcoin’s functionalities including ease of transfer and bitcoin applications.

“I am on the tech long-term tech investment, like the decade-long trend, and on the savings side,” Saylor said.

Read the original article on Business Insider

Crackdowns by regulators could pop the crypto bubble and mean bitcoin is unsuitable for professional investors, says UBS

China bitcoin mining crackdown Chinese flag cryptocurrencies
China is increasingly cracking down on bitcoin.

  • Crackdowns by regulators make bitcoin unsuitable for pro investors and could pop the bubble, UBS said.
  • The bank pointed to China clamping down on mining, and the growing concern over crypto in the UK and US.
  • It also said the common practice of trading crypto with leverage is likely to draw regulators’ attention.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Regulatory crackdowns could pop bubble-like crypto markets and mean bitcoin is unsuitable for professional investors, Swiss banking giant UBS has warned its clients.

In a note sent out last week, UBS’ global wealth management team said China’s latest crackdown had hurt crypto prices and operators. It also said there were signs that tougher rules could be in the pipeline in Western markets such as the US and UK.

“Regulators have demonstrated they can and will crack down on crypto,” the note read. “So we suggest investors stay clear, and build their portfolio around less risky assets.”

It added: “We’ve long warned that shifting investor sentiment or regulatory crackdowns could pop bubble-like crypto markets.”

Read more: The top US portfolio manager at $2 trillion Amundi explains why bitcoin and ether won’t play a bigger role in the financial system in 10 years than they do now – and says a regulatory storm is coming for crypto

UBS’ warning to clients said a number of recent regulatory developments were a concern for cryptocurrencies.

China renewed its restrictions on the computing process known as cryptocurrency “mining” in June, with authorities in Sichuan province closing down numerous sites.

In the US, Boston Federal Reserve’s president Eric Rosengren said stablecoin Tether was one of the “financial stability challenges” it is watching. And the UK’s Financial Conduct Authority banned crypto exchange Binance from operating in the country.

UBS’s note added: “Crypto trading practices, such as extending 50X or 100X leverage, appear fundamentally at odds with mainstream finance regulation.”

The Swiss bank’s concern about cryptocurrencies is shared by many other lenders. Goldman Sachs analysts in May said bitcoin is “not a suitable investment” and listed concerns about its volatility and lack of cash flow.

However, Wall Street is divided on cryptocurrencies – as are banks themselves. Goldman Sachs, for example, relaunched its crypto trading desk this year to take advantage of the crypto boom, in spite of its reservations.

UBS said in its note: “While we can’t rule out future price gains in cryptos, we see this as a speculative market that poses significant risks to professional investors.”

Read the original article on Business Insider

JOIN US JULY 15: Crypto experts from Ark Invest and more share their industry outlooks and the biggest opportunities they’re pursuing

“What’s Next for Crypto” Webinar poster featuring Mrinalini “Ria” Bhutoria of Castle Island Ventures, Yasshine Elmandjra of Ark Invest, and David Grider or Fundstat Global Advisors.
What’s Next for Crypto featuring Mrinalini “Ria” Bhutoria of Castle Island Ventures, Yasshine Elmandjra of Ark Invest, and David Grider or Fundstat Global Advisors.

No asset class has evoked shock and awe across financial markets this year in the way that cryptocurrencies have.

The relatively nascent market pushed the boundaries of what investors had thought was possible. From the record $69 million sale of a non-fungible token to the explosive gains of memecoins, investors have had to quickly smarten up on the space.

To help you get even smarter and distinguish the real opportunities from the noise, Business Insider will host ‘What’s next for crypto?” a webinar on Thursday, July 15 at 2 p.m. ET. Join Insider’s senior investing reporter Vicky Huang, and senior investing editor Akin Oyedele, in conversation with Yassine Elmandjra, the blockchain and cryptoasset analyst at Ark Invest; David Grider, the head of digital assets research at Fundstrat; and Ria Bhutoria, the principal at Castle Island Ventures.

The panel of these three experts will discuss topics including:

  • Investing ideas, opportunities, and use cases in crypto broadly and in specific tokens or coins.
  • Whether the bull market in bitcoin is over for this cycle, and what may happen next following the largest crypto’s plunge from its all-time highs.
  • The prospects for wider and deeper adoption of crypto by institutional asset managers.
  • Price targets for bitcoin, ether, and other major cryptocurrencies, including breakdowns of the theses that back them up.
  • And, the debate around bitcoin’s environmental impact.

The webinar will touch on other major developments in the volatile and evolving space.

Join us on July 15 at 2 p.m. ET/11 a.m. PT for the live conversation. You can register here if you’re an Insider subscriber.

Read the original article on Business Insider

Crypto startup Amber Group hits $1 billion valuation on fresh fundraising, as famed hedge fund Tiger Global joins Coinbase as backer

GettyImages 1312850757
Bitcoin picked up on Monday after sliding the previous week.

  • Crypto startup Amber Group has hit a $1 billion valuation after a $100 million fundraising round.
  • Famed hedge fund Tiger Global injected cash, as did Chinese bank China Renaissance.
  • It’s the latest sign of institutional interest in crypto startups, which continues despite bitcoin’s crash.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Crypto investment startup Amber Group has hit a $1 billion valuation after a $100 million fundraising round that saw famed hedge fund Tiger Global Management invest in the Coinbase-backed company.

The round was led by Chinese bank China Renaissance, while Tiger Brokers, Arena Holdings and DCM Ventures also injected money, Hong Kong-based Amber Group said on Sunday.

Amber Group is now worth more than 10 times what it was in 2019, when the company raised $28 million at a $100 million valuation. Its $1 billion valuation makes it a so-called tech unicorn.

The startup said it’s expanding its operations globally to bring its crypto financial services to more customers around the world.

Founded in 2017 by a group of ex-Morgan Stanley traders, Amber Group provides institutional investors with a range of ways to get involved in the crypto world. It offers trading, lending and asset management products, among others.

Between 70% and 80% of Amber’s revenue comes from the spread between the company’s deposits and loans, CNBC reported, while around 15% comes from trading fees.

The fundraising round is the latest sign of institutional interest in the crypto space, which is continuing despite the recent crash in the bitcoin price.

Tiger Global, which earned investors more money than any other hedge fund in 2020, also invested in Chinese crypto lender Babel Finance in a $40 million fundraising in May. The hedge fund was founded by Chase Coleman, a protege of Tiger Management boss Julian Robertson.

In April, Ethereum-focused development company ConsenSys raised money from JPMorgan and UBS, among other investors.

Read the original article on Business Insider

Hedge funds expect to hold $310 billion in cryptocurrencies within 5 years – more than 7% of their assets

Institutional interest in cryptocurrencies like bitcoin has jumped in 2020.

  • Hedge funds plan to ramp up their crypto holdings to more than 7% of assets by 2026, a survey showed.
  • That would equate to around $313 billion of cryptocurrency holdings, Intertrust Group said.
  • Hedge funds have been drawn to the volatility and huge price rises in cryptocurrencies such as bitcoin.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Hedge fund bosses are planning to ramp up their holdings of cryptocurrencies, predicting that an average of 7.2% of their assets under management will be held in digital tokens by 2026, a survey has found.

That would equate to around $313 billion of cryptocurrency holdings, based on an estimate of the future size of the hedge fund industry, according to Intertrust Group, which carried out the research.

The finding is a sign that many potential institutional buyers are not being put off by bitcoin’s recent plunge, but see cryptocurrencies as a long-term strategy.

“Certain cryptocurrencies, such as bitcoin and ethereum, have delivered incredible – albeit volatile – performance in recent years,” said Jonathan White, global head of fund sales at Intertrust, a Netherlands-based professional services group.

“Inevitably, they have drawn growing interest from hedge funds as well as institutional and retail investors.”

Intertrust’s survey, first reported by the Financial Times, found that one in six respondents expect their funds to have more than 10% in cryptocurrencies in five years’ time. Just shy of all respondents said they expect to have at least some crypto investments by then.

The company polled 100 chief financial officers at hedge funds around the world, with average assets under management of $7.2 billion.

North American hedge funds were the most bullish on crypto, predicting that they would hold around 11% of their assets in digital tokens by 2026.

Given the secretive nature of the hedge fund industry, it’s unclear how much crypto exposure these institutions currently have. Yet most hedge funds that have moved into the space have only committed a small amount. For example, Brevan Howard plans to invest up to 1.5% of its main $5.6 billion fund in cryptocurrencies, it said in April.

Read the original article on Business Insider

Bitcoin may have to tumble below $30,000 before major buyers are lured back in, JPMorgan’s crypto expert says

Bitcoin symbol at Bitcoin conference people
Bitcoin has fallen more than 40% from its April record high.

  • Bitcoin may have to drop below $30,000 to lure back institutional investors, a JPMorgan strategist said.
  • Nikolaos Panigirtzoglou told Insider that big players started to go off bitcoin over its high price.
  • He said there is little sign of a buy-the-dip mentality and that the bear market may last months.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Bitcoin may have to slide below $30,000 before institutional buyers are lured back into the market and start pushing the price up again, according to a crypto expert at JPMorgan.

One of the key reasons for the recent tumble in bitcoin’s price has been a sharp decline in interest from big players, Nikolaos Panigirtzoglou, a managing director and global market strategist at JPMorgan, told Insider.

Panigirtzoglou said major buyers were drawn towards bitcoin as the price started shooting up in 2021. But he said the soaring cost then began to put them off.

“If you ask, right now, institutional investors whether $50,000 or $60,000 is looking like an attractive level for bitcoin, they will most likely say no,” Panigirtzoglou said.

“I fear we might need to see bitcoin moving below $30,000 for that institutional interest to pick up considerably.”

Read more:Meet the 11 crypto masterminds at Wall Street firms like JPMorgan, Bank of America, and Morgan Stanley who are helping clients understand the mania

Panigirtzoglou’s view differs from some strategists, who think a drop below $30,000 would likely spell further trouble for bitcoin. Edward Moya, senior market analyst at currency firm Oanda, said on Tuesday that “a break of $30,000 could see a tremendous amount of momentum selling.”

Bitcoin traded at around $37,500 on Friday. That was more than 40% off April’s record high of close to $65,000, but it was around 25% higher than at the start of the year.

Despite bitcoin’s rally in recent days, Panigirtzoglou said he saw little sign that institutions were moving back in. “If I look at these bitcoin fund flows, there is no evidence here of a buying-the-dip mentality,” he said.

He pointed to the futures market, where prices for bitcoin futures have been trading lower than the spot price. Panigirtzoglou said this suggested demand from major institutions – who often use bitcoin futures to gain exposure – was weak.

Bitcoin soared in the first few months of 2021, and was at one point up more than 120% for the year, spurred on by companies such as Tesla adopting the cryptocurrency.

Yet the price began to crater in May after Tesla boss Elon Musk said the electric car company would no longer accept bitcoin as payment due to its “insane” energy use. A fresh crackdown by Chinese authorities also soured the mood.

However, Panigirtzoglou said there were signs as early as March and April that institutional interest was waning, particularly in a sharp slowdown of flows into bitcoin products such as Canada’s exchange-traded funds.

Panigirtzoglou, who edits JPMorgan’s weekly flows and liquidity note, which regularly looks at bitcoin, said the lesson from 2018’s price crash was that the current phase of lower prices could last months.

He said one important metric of whether institutional demand was picking up again would be rising futures prices relative to the spot price. Another positive signal would be if the share of bitcoin in the cryptocurrency market began to grow again, after shrinking in recent months.

Read the original article on Business Insider

A group of MIT alums in their 20s could be sitting on 13,000% bitcoin returns after taking part in a school project that gave them free crypto

Bitcoin generic images
  • A group of MIT college grads could be sitting on 13,000% bitcoin returns after participating in a 2014 project that gave away free crypto, Bloomberg first reported.
  • It’s unclear how many students are still holding on to their bitcoin, however.
  • Insider followed up with Mary Spanjers, a 24-year old who was profiled by Bloomberg and hasn’t sold the $100 of bitcoin she first received in 2014.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

As a college student, Mary Spanjers was always willing to participate in academic experiments on campus. She enjoyed getting a firsthand look at research, and the compensation in the form of cash or food was often an extra incentive to get involved.

Years later, a free giveaway from one experiment is still paying off: one-third of a bitcoin.

In 2014, the MIT Bitcoin Project allowed every undergraduate on campus to claim fractional ownership of a bitcoin, for free. Spanjers, who was first profiled in a Bloomberg article about the experiment, applied for the study along with about 3,100 other students.

Each student had to fill out a questionnaire and go over an educational handout, then they set up a digital wallet with $100 worth of bitcoin, according to Bloomberg.

One-third of a bitcoin is now about $13,000, meaning anyone who held on to the cryptocurrency has seen a roughly 13,000% return.

It’s unclear how many participants still own the bitcoin. One in ten cashed out in the first two weeks, and one in four had sold by the time the experiment ended in mid-2017, Christian Catalini, an MIT associate professor who oversaw the study, told Bloomberg.

Many students sold the bitcoin to pay for items like food, not wanting $100 to sit idly.

“It dropped down from $100 to $50 pretty soon after the study started, and a lot of people freaked out and got pizza,” Spanjers told Insider.

The 24-year old MIT graduate and now software engineer knew very little about bitcoin when she first participated in the experiment.

She didn’t check her holdings that often, but she did need to move the bitcoin a few times into new wallets as previous ones stopped accepting the cryptocurrency or shut down. She now said it’s incredible that she sometimes questioned whether it was worth it to go through the effort to change the wallet.

Read more: A 22-year Wall Street veteran who is now the CEO of a crypto bank told us how the 2008 global financial crisis led her to bitcoin – and breaks down where the real value of cryptocurrencies lies today

The MIT experiment was created by Dan Elitzer, then an MBA student who had just founded the school’s Bitcoin Club, and Jeremy Rubin, an undergrad computer science major. The students sought to “to take a glimpse into the future and see what’s possible with this technology,” Elitzer told Bloomberg.

Elitzer now runs crypto investment firm Nascent, while Rubin is the CEO of Judica Inc, a bitcoin research and deployment organization. Professor Catalini co-created Facebook’s cryptocurrency Diem, formerly Libra.

Spanjers told Insider she has no plan to sell her bitcoin anytime soon. Instead, she’s curious to see how far the investment could go, and if the cryptocurrency will ever be used as a form of payment.

“It’s a little like when you go to the casino and they give you the $20 of free play,” she told Insider. “It’s just like, ‘no problem, I’ll take that $20 of free play and just keep playing with it.”

If her one-third bitcoin ever grew to more than the price of MIT tuition, then she’d consider selling.

“That would be like, ‘okay, MIT paid for itself now,”” Spanjers said.

Read the original article on Business Insider

Billionaire investor Ray Dalio says he’d rather own bitcoin than bonds as inflation surges – and reveals he’s bought some of the cryptocurrency

GettyImages 1178614090
  • Ray Dalio said he’d rather own bitcoin than bonds in a CoinDesk interviewed aired Monday.
  • The Bridgewater founder also said he owns “some bitcoin,” the first time he’s ever disclosed a position in the cryptocurrency.
  • Dalio has been bearish on bonds for a while, saying they pay less than inflation.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Billionaire investor Ray Dalio said he would rather own bitcoin than bonds in an interview aired on Monday at the Consensus by CoinDesk 2021 convention.

The Bridgewater Associates founder reiterated his view that the US dollar is on the verge of a devaluation, and he suggested that bitcoin could be an attractive savings vehicle in an inflationary scenario.

“The more we create savings in it, the more you might say, ‘I’d rather have bitcoin than the bond,'” Dalio said. “Personally, I’d rather have bitcoin than a bond.”

The billionaire investor has been bearish on bonds for quite some time, saying that the financial instruments pay less than inflation.

“I have some bitcoin,” Dalio also said during the interview, which was recorded on May 6. The investor didn’t say how much he owned.

Bitcoin rebounded as much as 15% on Monday to trade around $38,683 per coin after a vicious sell-off over the weekend.

He added that bitcoin’s greatest risk is its success. If it becomes a larger asset class and starts to pose a real threat to others like bonds, that could prompt a regulatory crackdown that could hinder the cryptocurrency. He said right now, bitcoin isn’t a true threat because it’s still small relative to other assets. The total value of bitcoin is slightly over $1 trillion, while the value of US bonds is about $23 trillion, according to Dalio.

In March, Dalio said that the government could ban bitcoin altogether if it becomes too successful.

The investor was skeptical about the cryptocurrency as recently as November, but he began to warm-up to the idea of bitcoin at the start of 2021. In an investor letter, he said that bitcoin is “one hell of an invention,” and said there exists a possibility that bitcoin and other cryptos could become an alternative gold-like store of value.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

Read the original article on Business Insider