Marc Faber is a market über-bear and sound money advocate. For years, his distinct voice has been circling in the alternative media, as well as in mainstream outlets, with the same message: government budget deficit spending is lunacy, and will result in disaster. He is even nicknamed “Dr. Doom.”
Faber had been critical of Bitcoin in the past but now he’s endorsed it with a Bitcoin around the end of February, when prices were hovering around $3,800 per BTC. This sort of open-mindedness typically occurs right before paradigm shifts. I remember that when bottled mineral water came out. Wall Street was convinced that NO ONE would pay for water with a price tag higher than gasoline when they can use the tap for free.
J.P. Morgan CEO Jamie Dimon was also a staunch critic of Bitcoin, even going so far as to call it a “fraud.” And yet, in February, J.P. Morgan became the first major bank to launch its own proprietary cryptocurrency for cross-border payments, which they’re calling “JPM Coin.”
First Jamie Dimon, now Marc Faber – one after another, famous billionaires are backing cryptocurrency and blockchain technology. Dr. Faber even admitted in an interview that it’s possible “that Bitcoin will be the standard for money transfers.”
We see Dr. Faber’s endorsement as significant because his opinion is highly respected and closely followed in the global financial community. His major accurate prediction was that of foreseeing the Black Mondaystock market crash of 1987.
Now that Dr. Faber is bullish on Bitcoin, it’s time to see if his long BTC position will be as successful as his past calls and investments.
Bitcoin still needs to prove itself on a technical level before a sustained breakout can happen. Currently BTC has found itself stuck in a range – something we have seen before, and we don’t want a repeat of what took place in 2018.
Bitcoin’s psychologically significant $4,000 resistance level, which has been tested on multiple occasions recently, must be broken with conviction. Otherwise, we could see another leg down, similar to last year’s breakdown to $3,000 after BTC failed to break through the $6,000 resistance level.
One possible factor we view as weighing on Bitcoin right now is the Chicago Board Options Exchange (CBOE)’s delays in listing Bitcoin futures. Their currently listed Bitcoin futures, XBTM19, will expire in June, and these futures are still available for trading. However, in a recent statement, the CBOE announced that they will not be adding a Bitcoin XBT futures contract for trading in March 2019.
This is only a delay rather than the end of the road for Bitcoin or for the future of blockchain technology. Here’s the bottom line on this – CRYPTOCURRENCIES will rally when new investing dollars come in, but not due to the existing pool of people. New investors create demand. That, in turn, jacks up the price.
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