Reportedly, G7 leaders held a meeting recently in which they decided to impose a universal tax of digital activities. French Minister of the Economy and Finance Bruno Le Maire told the media,
“We hope between now and the end of August — the G7 heads of state meeting in Biarritz — will reach an agreement,”
Nevertheless, the US under Donald Trump is opposing the system, as they want to establish independence. This can be largely attributed to the fact that Facebook, the Social Media giant that came up with Libra is actually based in the US.
It is no secret that if the cryptocurrency plans go through Facebook stands to increase it’s revenue considerably. Mike Novogratz, an angel investor said in an interview,
If you’re the Federal Reserve of the treasury and Bitcoin was being used as a currency… starting to eat away the dollar. You’d be really nervous. That’s why I think they are more focused on Libra that Bitcoin…. Bitcoin’s got a long way to go…”
According to him, Bitcoin is not a threat to gold yet because of its comparatively low market capitalization. However, Libra is a greater threat because of its a direct challenge to the treasury.
Bitcoin [BTC] Price Analysis
The analysis that Mike Novogratz presented before us when Bitcoin touched a high around $14,000 on 26th June 2019 was simple. While some most traders were looking for another massive move in either direction, Mike Novogratz noted on 27th June,
I wish I sold a lot yesterday, I think we’re gonna be in a range between $10,000 and $14000.
Indeed, his prediction has been accurate for the past month. What’s more striking is how sentimental analysis is ruling over the TA at the moment. When Joe Kerner asked him if he felt Bitcoin would fall below $6000. Mike Novogratz, who holds a larger percentage of Bitcoin than gold noted,
I don’t think so. I think if it goes below $8,500 I’ll get nervous. If it goes below $6,000 I’ll get real nervous,
Moreover, the 8,500 predictions seemed to have stemmed from the Bitcoin gap analysis on the Futures market at CME. Richard Heart has been backing the analysis for a long time. Moreover, an update to it, he tweeted,
The $8500 gap fill might not happen. In a bull market you don’t get too much time to buy the dip. I think dip period time may have expired. Price is $10,000 #Bitcoin
While the timelines on the bullish target were not proposed, a bullish stance was largely maintained.
Do you agree with their analysis? Please share your views with us.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.