Review of the crypto space latest news 22.12.2020
Against the background of all that is happening in the world, crypto-industry news are: the rise of Bitcoin and the fact that more and more institutional investors are buying it to buy hundreds of millions of dollars is like a breath of fresh air.
Past week news digest
This weekend, a new record was set for the price of Bitcoin. The price of BTC rose to $24,171.
The cryptocurrency market is optimistic about this price, which should soon adjust to absorb this significant increase in the value of the Bitcoin.
Altcoins such as Ripple, Ethereum, and Litecoin have followed this rise in BTC. And the rest of the market will still have to wait for its alternative season to see how the prices of small cryptocurrencies finally move.
So, let’s take a look at the important news of the past crypto week
Bitcoin soared to $22,000 and Ethereum to $650
The entire crypto community was looking forward to seeing BTC cross the symbolic $20K mark. And that moment came, and Bitcoin soared right up to 22,000, and then began to skyrocket.
The media will no doubt be talking widely about this important news. Bitcoin is often predicted to die soon when it returns to very low prices in its bearish cycles.
There is a big difference with the end of 2017 with the euphoric wave of ICOs, and the massive arrival of institutional investors who buy crypto assets worth hundreds of millions of dollars.
While there is no euphoria among the general public, the rise of BTC is attributed to these growing companies looking to invest in BTC and other cryptocurrencies such as Ethereum.
The general public and individuals will also increasingly buy Bitcoins. So, the price of BTC will continue to rise because Bitcoin will eventually become more rare, and more expensive.
Faced with growing demand from institutional investors who are more likely to invest some of their capital in Bitcoin, BTC is expected to hit new highs in the coming months.
On Bloomberg, the chief investment officer of the Guggenheim investment Fund said that the price of Bitcoin should be $ 400,000.
“This is a snowball effect: large companies will want to invest in this asset, which is now considered the new gold”.
Altcoins are growing
The altcoin market is still at its lowest point for a significant number of crypto assets that have yet to recover from the last bear market.
- The price of Ethereum has risen to $ 650
- Ripple (XRP) is recovering at $ 0.58, after the drop that occurred at the end of the airdrop of the Spark token.
- Litecoin (LTC) is approaching $ 100.
- LINK again exceeds $13.
Thus, with a direct increase after $ 22k, the price of Bitcoin is in uncharted territory, so It can quickly continue its course much higher, especially if there is a certain euphoria.
The Bitcoin price is expected to be $400,000
The value of BTC has broken new records, exceeding $22,000, and some analysts believe that the price should be much higher.
Scott Minerd, chief investment officer of Guggenheim, an investment fund that manages at least $275 billion in assets worldwide, told Bloomberg that the value of Bitcoin should be $400,000.
This figure rather surprised Bloomberg journalists, who asked him how he came to this astronomical price, many times higher than the current one.
“Our fundamental analysis shows that Bitcoin will be worth about $ 400,000. We are going to, and we have the opportunity to do it today, we are going to watch the market and see how the trading goes, ” he said in Bloomberg.
The chief information officer of Guggenheim briefly explained that Bitcoin will become increasingly scarce and, therefore, this shortage will significantly affect its valuation in the future.
Scott Minerd also described the properties of Bitcoin, similar to the properties of gold:
“Bitcoin is very much related to gold, and at the same time has an unusual transaction value”.
The investment Manager at Guggenheim also reports that the investment Fund actually bought Bitcoins when its value was $ 10,000. Thus, the Wall Street giant has already received 100% (unrealized) profit from its investment in BTC.
Thus, institutional investors are investing in BTC as we have recently seen in numerous articles. Here’s a little proof of that:
- The Guggenheim investment Fund has asked the SEC to allow it to invest several hundred million dollars in Bitcoin through its macro opportunity fund.
- American insurance company MassMutual recently bought a $ 100 million cue Ball.
- MicroStrategy has just raised $ 650 million to buy even more crypto (it already has 40,824 BTC).
- JPMorgan Bank estimates the demand for buying Bitcoin in the near future at $ 600 billion!
Demand for BTC continues to grow from institutional investors, and indeed should significantly increase the price of the crypto asset in the coming months.
One River investment Fund to hold $ 1 billion in Bitcoin and Ethereum in 2021
Institutional investors continue to struggle to buy BTC, as well as other cryptocurrencies such as Ethereum.
Another hedge fund has released astronomical figures regarding its purchases of BTC, as well as its future commitments to hold $ 1 billion in Bitcoin and Ethereum in 2021.
Eric Peters, CEO of the One River investment Fund, told Bloomberg that the company has already bought $ 600 million worth of Bitcoin.
To do this, he created a company dedicated to these new investments.
In order not to affect the value of the crypto asset, its traders quietly bought BTC until they received them in the right amount in November 2020, before the value of the asset reached $ 16K.
One River, founded in 2013, uses volatility and trend-following strategies to play up or down the price of certain assets, such as gold.
Peters believes that the price of BTC and Ether can far exceed the increase in the price of gold. He said in this interview that the company fully intends to target the growing interest in cryptocurrency among institutions.
One River Digital Asset Management has selected Northern Trust Corp. as an administrator of funds, and Coinbase as a partner for performing cryptocurrency transactions and storing assets.
So, it’s more like a race between investment giants to buy Bitcoin, as MicroStrategy intends to buy $ 650 million worth of BTC again.
The Ruffer Foundation just publicly stated that it bought BTC for $ 745 million.
Purchases of BTC by institutional investors are just beginning, as the CEO of One River points out. High demand for Bitcoins, which will gradually reduce the supply of available coins, and increase the cost.
Regulation of the cryptocurrency in Russia
For reasons of transparency and anti-corruption, politicians elected to responsible and administrative positions must declare their assets.
The practice of preventing cases of illicit enrichment is now more widely used in the Russian Federation. Indeed, Vladimir Putin signed a decree obliging officials to report any storage of digital currency. Since cryptocurrencies are very often out of tax control, this decision should allow us to correct this phenomenon.
The Declaration of crypto assets applies to all members of the officials` family.
Current and future Russian government officials must now provide a report detailing the digital assets they own. This includes both cryptocurrencies and digital securities owned by their spouses and children. The first reports of this kind should be submitted by interested parties no later than June 30, 2021. Detailed information, such as the place of purchase or origin, as well as the quantity of these digital goods, should also be indicated in the relevant reports.
The measure also applies to candidates in various elections. The move followed the passage of a law recognizing cryptocurrencies as a type of property in the country. It will take effect early next year when reports begin.
For tax purposes, several draft laws on the Declaration of crypto assets have been proposed so far. All that can be said is that these were rather harsh conditions for the population. In one of these versions, individuals and legal entities were required to report their assets as soon as the mark of 600,000 Russian rubles for annual transactions was exceeded. Failure to comply with this rule will therefore result in a fine or imprisonment of up to three years.
After consulting with various industry stakeholders, a compromise was finally found to facilitate the content of the law. Thus, a fine of 50 thousand rubles will now be imposed for the delay in the Declaration process. For undeclared assets, the perpetrators will face a fine of 10% of the amount of all transactions, depending on which amount is greater.
Initially silent on this issue, the government has now gradually provided a clear regulatory framework for the ownership and use of cryptocurrencies in the country. However, some restrictions were imposed, most likely to promote CBDC by next year.