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Bitcoin [BTC]: Architecture for rich institutions to safely store Bitcoin is being built, says Mike Novogratz

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Bitcoin [BTC]: Architecture for "rich institutions" to safely store Bitcoin is being built says Mike Novogratz
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Bitcoin proponent Mike Novogratz, spoke at the MENA Summit 2019, where he discussed the volatility of Bitcoin and cryptocurrency markets and its transition into a store of value and a competitor for gold.

The world had witnessed a “once in a generational bubble in cryptocurrency” which was oozing with volatility, he said. He further added that volatility would eventually come back, some of it owing to U.S government politics.

Mike Novogratz also said that politics would create a period of volatility, affecting a rally where people would “buy the dip market and not stay long market.” Speaking about the drawbacks of the traditional markets, Novogratz stated,

“One of the real reasons everybody should have one percent of their portfolio in Bitcoin are these reasons. Bitcoin is becoming a digital gold and really the only crypto that has value just because it does. It is the hedge against these Minsky Moments…”

He continued,

“If we start having a real financial crisis, the breakdown in trust in government securities, then it’s going to skyrocket ’cause it really is hard money… it’s going to replace gold.”

Novogratz also said that Bitcoin’s store of value was one of the reasons why financial institutions were getting into the crypto-space.

Fidelity and NYSE are some of these institutions that have shown a liking towards Bitcoin. To this, Novogratz said that these institutions would become, “the architecture for the rich guy and rich institutions to safely store money in Bitcoin” in the upcoming future. He said that these two institutions would start by June and pension funds would also start accumulating Bitcoin in small amounts.



@JT_XRP, a Twitter user commented,

“Mike @novogratz is the biggest bag holder of $XRP; he promotes Bitcoin because he needs to unload his bags on naive new investors. After all, he has invested in the company @Ripple”

@DutchXRP, another Twitter user commented,

“I think he is saying: Regulation is US is coming by June. From that moment, these pension company’s can hold thes assets not their balance sheets.”





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

XRP

Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?

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Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
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Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:

“DO ME A FAVOR OPEN UP A BTC/USD CHART AND AN XRP/USD CHART. THEY HAVE DECOUPLED AND ARE MOVING DIFFERENTLY.”

In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:



Conclusion

XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.





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