cryptocurrencies

/

bitcoin

Crypto SWOT: Galaxy Digital’s Mike Novogratz says Bitcoin is stuck in a narrow trading range

Kitco Media
By Frank E Holmes
Published
Updated
Kitco Commentaries
Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Crypto SWOT: Galaxy Digital’s Mike Novogratz says Bitcoin is stuck in a narrow trading range teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the 
    week was Floki, rising 23.98%.
  • El Salvador now owns 5,750 Bitcoin worth about $353 million at today’s prices,
    according to its government. The National Bitcoin office this week launched a 
    tracking website for the Treasury’s holdings of the coin, according to Bloomberg. 
  • Coinbase Global shares rose as much as 5.3% on Friday after BofA Global 
    Research analyst Mark McLaughlin raised the recommendations to neutral from underperforming, Bloomberg reports.

article image

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the 
    week was Ethena, down 13.44%.
  • TeraWulf shares dropped 8% in premarket trading after the Bitcoin miner posted first quarter revenue that missed the average analyst estimate. Revenue was $42.4 million and the estimate was $45.1 million. The company’s gross profit was $28 million and the estimate was $32.6 million, reports Bloomberg. 
  • Bitcoin could be losing its sizzle and the next rally looks like a hard sell, according to some industry experts. The disappointing halving year appears to have dented the long-term bullish thesis and may drain money out of an industry that’s yet to prove its worth, writes Bloomberg.

Opportunities

  • Michael Novogratz, the founder of digital-asset financial services firm Galaxy Digital Holdings, said Bitcoin is likely to remain stuck in a relatively narrow trading range for at least the current quarter while the adoption of crypto in traditional finance continues.
  • CME group, the world’s largest futures exchange, is planning to launch Bitcoin trading, writes Bloomberg, aiming to capitalize on surging demand this year among Wall Street managers.
  • Michael Ashby, who most recently led the digital-asset strategy implementation at hedge fund Point72, has joined a proprietary crypto trading firm AlgoQuant. He has joined as CEO and relocated to Dubai as part of AlgoQuant’s plans to build out operations in the UAE, reports Bloomberg.

Threats

  • Alexey Pertsev, the developer of cryptocurrency mixing service Tornado Cash,
    was sentenced to five years and four months in prison by Dutch authorities for 
    helping launder more than $2 billion, Bloomberg reports. Pertsev co-founded 
    Tornado Cash with two other men in 2019 as a tool to make financial transactions harder to trace using a cryptocurrency.
  • BlockTower Capital’s main hedge fund has been compromised and partially drained by fraudsters, according to people familiar with the matter. The funds are still missing, and the hacker has not been apprehended, according to Bloomberg. 
  • China busted an underground bank that illegally used cryptocurrency to conduct currency exchange operations between the Chinese yuan and the south Korean won involving at least 2.14 billion yuan ($295.8 million), writes Bloomberg. The local police arrested six suspects who allegedly facilitated the case in China and South Korea.
Kitco Media

Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark tracking the world’s leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series encompasses all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces a year, and that derive 75% or more of their revenue from mined gold.

Holdings as a percentage of net assets as of 6/30/07: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).

Mdi Earth Logo

Tags:

Bitcoincryptocurrencies

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.