Shark Tank’s Kevin O’Leary Reverses Stance on Bitcoin, Says Crypto Is Here to Stay, Invests 3% of His Portfolio

Shark Tank’s Kevin O’Leary Reverses Stance on Bitcoin, Says Crypto Is Here to Stay, Invests 3% of His Portfolio

Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has begun investing in bitcoin. Having previously called the cryptocurrency “garbage,” he has now changed his mind and believes that cryptocurrencies are here to stay. He is also getting used to the volatility of bitcoin and believes that institutional investors are willing to hold through price fluctuations.

Kevin O’Leary Now a Bitcoin Believer

Canadian investor and television personality Kevin O’Leary has changed his mind about bitcoin. He previously called the cryptocurrency “garbage” and a “giant nothing burger,” but now he has invested in bitcoin and thinks that it is no longer a fad.

“I actually think that digital currencies are here to stay,” he said in an interview with CNBC last week. “Most people that are willing to hold them, including institutions over the last 90 days, are willing to deal with the volatility.” O’Leary elaborated:

I am fascinated. I’m investing. I’m holding a 3% weighting in it between ethereum and bitcoin. The volatility sickens me but I’m getting used to it.

“And, finally, I’m starting to think about how do I invest in the infrastructure of mining bitcoin,” Mr. Wonderful added.

Commenting on bitcoin’s volatility, O’Leary shared: “Given the volatility of cryptocurrencies, the main decision you have to make after you decide to participate in the first place is what % of your portfolio do you allocate. For me, 5% is the maximum.”

Morgan Creek Digital partner Anthony Pompliano, who had been trying to convince O’Leary to invest in BTC for years, responded to the Shark Tank star’s 5% allocation statement. “You forbid me to have 50% and you called it all ‘garbage,’ but now you think 5% is acceptable. Eventually, you will be 50% yourself.”

O’Leary replied, “Correct, I change when facts change.” He emphasized:

Canadian, Swiss and many other regulators have done a 180% on BTC. This is a game changer for many investors including me.

O’Leary had always been worried about regulators coming down hard on bitcoin. In December, he warned that “Grown men are going to weep when that happens. You will never see a loss of capital like that ever in your life. It will be brutal.” Nonetheless, he said that if a bitcoin ETF is approved, he would be willing to put 5% of his portfolio in it. Recently, Canada’s securities regulator approved two bitcoin ETFs.

Do you think Kevin O’Leary will keep putting more money in bitcoin? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Breaking Down Square’s Bitcoin (BTC) Position

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Breaking Down Square’s Bitcoin (BTC) Position


The recent push to the $1 trillion bitcoin market cap can at least be partially attributed to institutional investors; firms investing on the behalf of others or as part of their asset allocation strategies.

Square, One of the Largest Corporate Holders of Bitcoin

Alongside MicroStrategy, now Tesla, Square is one of the largest institutional purchasers of the asset. However, unlike these other two companies – Square purchases bitcoin to provide it to its users directly through its app. A potential signal on the strong retail interest behind bitcoin, a driving force behind Bitcoin’s rally to $57K.

The CEO of Square, the publicly traded financial payments company, aiming to disrupt traditional finance, Jack Dorsey, is a staunch supporter of bitcoin. 

Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose”

In January, one million users bought bitcoin for the first time last month through Square’s Cash App, with 24 million monthly users on Cash App, this is still a 23 million user untapped source of investors for Bitcoin.

Possibly to capitalize upon this and expand its Bitcoin revenues, in its fourth quarter release  Square announced another $170 million purchase of BTC.

Square is estimated to have paid $51,000 per BTC  based on its timing in Q4. Bitcoin is currently at $44,800 at the time of writing, meaning that their position is down ~12% since the time of purchase. However, Jack Dorsey and the Square leadership indicate no signs of wanting to sell their large position, which offers both a message of hope and possible concern for the average retail investor.  Square, as a public company, is first obligated to its shareholders – and if leadership came under pressure from its other institutional shareholders to sell the asset if it declined dramatically in price due to volatility, this event may cause a weakening in the market and trigger a further sell-off.

But if shareholders and leadership are more optimistic about the asset’s price, it may buy other Bitcoin with its reserve capital to DCA (dollar cost average) into its position, increasing demand and pushing the price up.

A significant concern with institutional purchasing, such as with Square, is that it defeats the purpose of Bitcoin’s inherent decentralized nature by concentrating tokens into centralized financial organizations. But for the mass adoption needed to truly cement BTC as a store of value, acquisitions such as these done by Square are helpful and frankly necessary.

Bitcoin investors should keep a careful watch on the future purchases of Square and the value of its total holdings to gauge possible market action.

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Top 5 cryptocurrencies to watch this week: BTC, BNB, DOT, XEM, MIOTA

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Crypto Analyst Ivan Liljeqvist Expects These 3 Cryptoassets to Do Well in March

In a recent interview with Carlin Martin, the host of YouTube Channel “The Moon“, crypto analyst and developer Ivan Liljeqvist, who hosts the YouTube channel “Ivan on Tech“, named three cryptoassets that he is excited about.

PancakeSwap is “a decentralized exchange running on Binance Smart Chain (BSC).” Liljeqvist finds PancakeSwap interesting because a lot of smaller volume traders find the transaction fees on Ethereum-powered Uniswap too high and even though BSC is not as decentralized as Ethereum, these people don’t care.

1inch is a DEX aggregator. Liljeqvist says 1inch has seen a lot of growth. Why? Because for large transactions, 1inch’s higher fees (compared to, say, Uniswap) are not a big concern since by going to multiple DEXs, it can get a better “execution price”.

Polygon (formerly known as “Matic”) is “a protocol and a framework for building and connecting Ethereum-compatible blockchain networks.” According to Liljeqvist, many projects are expanding to Polygon.

Featured Image by “Austin Distel” via Unsplash.com

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

Stone Ridge’s Open-End Mutual Fund to Invest in Bitcoin — SEC Filing Opens the Door for Other Mutual Funds to Add BTC

Stone Ridge’s Open-End Mutual Fund to Invest in Bitcoin — SEC Filing Opens the Door for Other Mutual Funds to Add BTC

Asset management firm Stone Ridge has filed with the U.S. Securities and Exchange Commission (SEC) for its open-end mutual fund to invest in bitcoin. “This is a big deal. Stone Ridge filing opens the door for every mutual fund to add bitcoin,” said a fellow asset manager.

Stone Ridge Wants Its Mutual Fund to Invest in Bitcoin

Stone Ridge Trust filed Form N-1A with the U.S. Securities and Exchange Commission (SEC) last week. The filing, which is expected to become effective on April 26, relates to the Stone Ridge Diversified Alternatives Fund.

The fund “seeks to generate total returns from diverse investment strategies that we believe have the potential for attractive returns and are diversifying from stocks and bonds,” the filing details. “These strategies include reinsurance, market risk transfer, style premium investing, alternative lending, single-family real estate, healthcare royalties, and bitcoin.”

For the bitcoin investment strategy, the filing explains:

[The fund] seeks to generate returns by gaining exposure to the price of bitcoin by selling put options on bitcoin futures contracts. This strategy may also invest in pooled investment vehicles, such as registered or private funds, that themselves invest in bitcoin.

Anthony Scaramucci, founder of another asset management firm Skybridge Capital, which itself has about half a billion dollars worth of bitcoin in its bitcoin fund, commented on the filing last week. “Important development in bitcoin. Stone Ridge filed with the SEC to become the first open-ended mutual fund to buy bitcoin,” he wrote. Scaramucci also sees heavy demand for bitcoin from his clients and expects the BTC price to reach $100K by year-end.

Noting that “Stone Ridge will be able to start buying bitcoin on April 26 (when their prospectus goes effective),” he opined:

This is a big deal. Stone Ridge filing opens the door for every mutual fund to add bitcoin (if they want to).

Stone Ridge founder Ross Stevens also founded the New York Digital Investment Group (NYDIG), a bitcoin-only financial services firm. Early this month, the firm filed for a bitcoin exchange-traded fund (ETF) with the SEC. Stevens recently said that he sees “a wall of money” coming into the asset class. NYDIG already has over $6 billion in bitcoin and the firm expects to have over $25 billion in the cryptocurrency by the end of the year.

What do you think about mutual funds investing in bitcoin? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Bitcoin Miners Net Position Turn Positive: A Crypto Bull Case?

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Bitcoin Miners Net Position Turn Positive: A Crypto Bull Case? 


Bitcoin in Downtrend

After another week of turbulent market volatility, the cryptocurrency market saw severe drops with Bitcoin (BTC) and its peers plummeting nearly 25% from recent highs. This selloff caught many speculators and traders off-guard, causing a panic reaction across the market.

The Crypto Fear and Greed Index shifted from a weekly high of 94 back down to a more modest 55. However, analysts have reiterated that minor corrections are both necessary and organic, as Bitcoin looks to consolidate around its hard support levels.

Analyzing Miners Net Position Change

For the first time since late December of last year, Bitcoin miners’ net position change reverted back to positive. Some analysts have seen this renewed accumulation by miners as a bullish indicator, citing that the recent selling pressure may subside. Still, it’s unclear whether decreased selling from mining pools will leave a noticeable impact on Bitcoin’s price.

Historically, there has been little correlation between Bitcoin price and miner behavior. Research from Clain, a Crypto analytics company, supports this claim further. There was no proven statistical significance between the price action and the volume of Bitcoin that miners sold to exchanges–at least up to 2019. 

The only sizable correlation that we were able to detect was a correlation between USD value of flows and the BTC price. The USD flow variable is a derivative of BTC price, so it factors in a huge deal of BTC price itself and thus shall not stand for a fair relationship. Dismissing that strong correlation, we are left with no interesting insight.”

It’s certainly possible that positive net positions are a sign that miners see Bitcoin’s current price levels as undervalued. With more corporations like Tesla, Square, and MicroStrategy adding Bitcoin onto their balance sheets, future growth prospects for the cryptocurrency space and mainstream adoption seem almost set in stone.

However, based on historical data and past research, it would be a mistake to suggest that the sudden accumulation by miners will directly serve as a catalyst for another breakout rally.

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Bearish Outlook as Bitcoin’s Seven-Day Average Sinks 25%, ADA Shines During the Storm

Bearish Outlook as Bitcoin’s Seven-Day Average Sinks 25%, ADA Shines During the Storm

Digital currency markets have been bearish in recent days as prices have continued to sink lower. The entire market capitalization of all the crypto assets in existence is down over 8% on Sunday at $1.25 trillion. Bitcoin has plummeted from its all-time high (ATH) of $58,350 last Sunday to today’s low of $43,189 per unit.

  • Bitcoin (BTC) prices have dropped -25.98% since last Sunday and today the crypto asset has touched a new low. At 10:48 in the morning, New York time, BTC prices touched a low of $43,189 per coin. BTC is down over 7% today but is still up 28% during the last 30 days and 122% for the last three months.
  • BTC dominance or the market valuation in comparison to the rest of the crypto economy’s valuations is around 61.23% today.
Bearish Outlook as Bitcoin’s Seven-Day Average Sinks 25%, ADA Shines During the Storm
Bitstamp BTC/USD 3-minute interval chart on February 28, 2021. At the time of publication, BTC has been trading hands at prices between $43,600 to just above the $44k handle.
  • The second-largest crypto asset by market valuation is ethereum (ETH) which is swapping for $1,318 per coin on Sunday. ETH prices have dipped over 10% today and lost 31% during the last week.
  • Cardano (ADA) currently commands the third-largest market cap, and each ADA is exchanging hands for $1.20 per unit. ADA has been a coin that has notably outperformed other crypto assets during the last two days while most markets have been down. ADA is down 12% today but seven-day stats show cardano is up over 10%.
  • Cardano (ADA) is expected to upgrade on March 1, 2021, which introduces native token functionality to the Cardano network.
  • Meanwhile, tether (USDT) now holds the fourth position and behind it is binance coin (BNB) trading for $197 per coin. The Binance-created token is down 11% on Sunday and 31% for the last week. Behind BNB is polkadot (DOT) trading for a touch over $30 per DOT.
Bearish Outlook as Bitcoin’s Seven-Day Average Sinks 25%, ADA Shines During the Storm
Bitstamp BTC/USD 4-hour candle chart on February 28, 2021.
  • XRP has been pushed down to the seventh position and is down 10% today. Each XRP is trading for $0.39 per unit. Litecoin (LTC) is swapping for $155 a coin and is down a touch over 9% this weekend.

  • The stablecoin USDC that’s managed by the crypto firm Circle has made it into the top ten crypto market cap positions. Currently, USDC is the eighth largest market valuation with $8.97 billion worth in circulation.
  • Lastly, stellar (XLM) holds the tenth top position amongst the 8,000+ crypto tokens in existence. A single XLM is currently trading for $0.39 per unit and interestingly, is roughly the same value as XRP, as the Stellar network blockchain was designed in a similar fashion.

Want to check out all the crypto asset prices and market movements in real-time? Check out markets.Bitcoin.com today!

What do you think about all the market action on Sunday, February 28? Let us know what you think about this subject in the comments section below.

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