Bitcoin Futures Trade Above $10,000 As Institutional Open Interest Explodes

[Bouncer]

It's not just gold that is celebrating the return of the race to the rates bottom which ensures that real rates around the globe are (or will soon be) negative for a long time, with analysts starting to whisper that NIRP may be coming to the US, making inert, zero-yielding assets attractive.

Bitcoin, left for dead as recently as one year ago, has exploded in the past two months, and after trading at $4,000 at the start of April, the cryptocurrency has been soaring and overnight spiked to just shy of $10,000, trading at $9,810 at last check.

But more important than what has happened is what will happen, and courtesy of our friends at sk3w.co , we find that crypto derivatives markets "are gearing up towards another big weekend as bitcoin approaches $10k."

More notably, all September futures have already breached $10k on the crypto native platforms.

https://www.zerohedge.com/news/2019-...erest-explodes

[Bouncer]

BTC above 11k just like that. Pretty Clear where the Macro Trend is headed. This is the monthly BTC chart going back to 2013. Pullbacks along the way but the upper range of the yellow trend line is 80-100k...

[Bouncer]

Volume spiked as Bitcoin surged past $10k...and accelerated above $11k - the highest since March 2018



In contrast with last year, Bloomberg notes that there are now signs of renewed mainstream interest in cryptocurrencies and the underlying blockchain technology, most prominently Facebook's Libra. The social-media giant is working with a broad group of partners from Visa to Uber to develop the system, which has already attracted attention and criticism from politicians raising privacy and security concerns.



https://www.zerohedge.com/news/2019-...ether-tops-300

[Bouncer]

Bitcoin Is Back – As A Safe Haven Asset

Back during the cryptocurrency mania of 2017 I explored Bitcoin as a foundational asset of a different monetary system. Built on blockchain I put together a crude crypto-version of Exter’s Pyramid to visualize this.

However, before I get started, let’s review what Exter’s Pyramid is and why Bitcoin, necessarily, today sits at the bottom of it in the crypto-space.

John Exter visualized the global financial system as an upside down pyramid.



Bitcoin being the oldest and most trusted blockchain imparts it with the most monetary character as a proxy or competitor to gold for safe-haven capital.

The crypto-world doesn’t look like the graphic today because Bitcoin still dominates with just under 59% of the total crypto ‘market capitalization.’

This is because cryptocurrencies are not dominating transaction settlement. If they were, we’d have a massive inversion of the market cap of the sector relative to it.

We’d also be having a much different conversation.

With that in mind (and the limitations of this presented analogy acknowledged) let’s review some history.

Like in most of Bitcoin previous spikes, this one, is happening as a safe-haven trade. Those looking for a way out of the current monetary system are worried the central banks are losing control of their carefully-prepared narratives.

In previous run-ups it was fears from China (2012-13) which saw Bitcoin top $1000 for the first time. Cracks appeared in China’s shadow banking system as the PBoC (China’s central bank) began cracking down on Wealth Management Products which were an outgrowth of massive capital inflow.

Later that morphed into copper-collateralized business loans and other Byzantine products created to maintain credit growth.

This helped support Bitcoin’s rise back to $1000 during 2014-16.

Today we’re seeing similar issues in China. We’ve had a couple of bank failures, some interbank lending seizures, etc.

Some of this is the product of the Chinese government’s latest attempt to prick its shadow banking bubble. Some of this is stress emanating from Trump’s trade war.

The early impetus for the 2017 rally came from Europe, however. The beginnings of the EU’s war on capital flight intensified thanks to the Brexit vote and the increasing need to control euroskepticism by the ECB.

Yes, eventually, speculation took over and we saw a classic blow-off top at around $20,000 in January 2018. The subsequent 85% correction looks just like the one in 2013.

But I think the history lesson is apropos given the period in history we are entering now. None of the issues that spawned Bitcoin in 2009 have been fixed. The monetary system broke in 2008. For the past eleven years the central banks have done yeoman’s work keeping it afloat.

But what is broken is still broken, no matter how much hay-string and duct tape they use to keep it together. Cryptocurrencies are exposing so many of the fundamental problems of the monetary system that they can’t help but eventually eat away at the confidence in it.

This is one of the philosophical reasons why I’ve been bullish on cryptocurrencies as safe-haven assets, even during the bear market of 2018 and early this year. It’s theory, not reality.

But a chart posted by one of my Patrons yesterday in our private forum elegantly highlighted what’s happening here. And this cannot be denied by the most religiously ardent Bitcoin-haters.

https://www.zerohedge.com/news/2019-...fe-haven-asset

[Bouncer]

futures now above 12k....

[Bouncer]

[Farah]

I suggest a normal person invest no more than 20% of their net worth under normal circumstances and should use a crypto bot to buy and sell in the market. And it generates a net portfolio with different bots/strategies and manages your portfolio with professional investment strategies.