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Bitcoin Market Resembles 2016, Just Before Price Exploded

Bitcoin (BTC), together with the broader cryptocurrency market, has come to life during the past several months.

The BTC price crashed under $4,000 per Bitcoin in the broad March coronavirus crash. Afterward, it recently bounced to about $12,000, triggered by some high-profile investors betting on BTC.

As of now, Bitcoin and cryptocurrency asset manager Grayscale mentioned that the current BTC market structure parallels that of early 2016. This was before Bitcoin started its historic bull run. This indicates that the BTC price might head considerably higher.

Phil Bonello, Grayscale’s research director, noted, “Amid unprecedented monetary and fiscal stimulus, investors are searching for ways to protect against an ever-expanding monetary supply.”

Bonello added that they could leverage it as a store of value and as a way to escape monetary inflation. This is due to the unique qualities of Bitcoin, like its verifiable scarcity and supply that central authority can’t control. Several investors, including the prominent Paul Tudor Jones, have shifted to Bitcoin in recent months. They did this to fight the inflation they foresee. They anticipate such inflation due to the unprecedented coronavirus stimulus actions the U.S. government and the Federal Reserve imposed. The intention of these actions is to prop up the economy.

With that, the Bitcoin price had boosted to its highest since June last year. It also ignited a fresh wave of confidence among BTC investors that might head back to its all-time highs.

Joe Dipasquale, chief executive of San Francisco-based Bitcoin and crypto hedge fund BitBull Capital, wrote, “Bitcoin’s recent price action really took off the $10,000 level, indicating market confidence in the big move at the end of July.”

He also mentioned that BTC’s struggle to get past the $12,000 hurdle might be necessary for the market to ease and catch a breath.

The OneCoin Case

Elsewhere, Konstantin Ignatov agreed to testify against his sister. He is the brother of OneCoin’s fugitive founder Ruja Ignatova and a major figure in the $4 billion Ponzi scheme. This is all part of a settlement that saw Ignatov dismissed from civil litigation aiming at the scam.

A recent report regarding the settlement’s terms disclosed that Ignatov has agreed to both cooperate with the class of OneCoin investors, bringing the suit forward and testifying against Ignatova on their behalf if the suit goes to trial.

Aside from that, Ignatov is a defendant and cooperating witness in a parallel criminal case. His testimony will help secure the conviction of the alleged OneCoin money launderer and lawyer Mark Scott in November 2019.

Last October, Ignatov plead guilty to charges of money laundering and conspiracy to commit wire fraud. He is also facing up to 90 years of imprisonment in the criminal case. His sentencing will be on November 11.

Last November, Ignatov stated that Phoenix Thoroughbreds’ owner, Amer Abdulaziz Salman, was a key money-cleaner working within Mark Scott’s co-conspirator’s guidance and Ignatova’s former lover, Gilbert Armena.

Based on the report, the Phoenix Thoroughbreds racing company got banned from French competition for its alleged ties to OneCoin over the last week. The firm has also withdrawn from British events.

On the other hand, Abdulaziz and Phoenix Thoroughbreds both rejected the alleged association with the Ponzi scheme.



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