CNBC’s Jim Cramer sold some of his Bitcoins to pay for a home mortgage

Jim Cramer, the Mad Money host on CNBC media company, has revealed that he recently paid off a mortgage using profits generated from his Bitcoin investments. On Thursday, April 15, Cramer disclosed that he paid off his mortgage the day before by selling half of his Bitcoin investments.

Cramer stated on CNBC’s Squawk on the street: “From the chart, I may be the only natural seller, but it was so great to pay off a mortgage.”

He further added: “It was like, kind of, phony money paying for real money. I now own a house—lock, stock, and barrel—because I bought this currency. I think I won!”

He stated that he purchased a significant amount of Bitcoin when the price was at around $12,000. Yesterday on April 15, Bitcoin price was selling at $64,829.

Cramer appeared to suggest that he followed investment advice he normally gives to his viewers: “Trimming positions to take profits after seeing considerable gains.” He said that he had sold half of his Bitcoin holdings.

Cramer has been a vocal supporter of Bitcoin for a while now. In February, he talked about his motivation for owning Bitcoin describing the crypto as “an alternative to a cash position, where you make absolutely nothing.” He therefore mentioned that it would be “almost irresponsible” not to include Bitcoin in a portfolio.

Last month, Cramer stated that he made more money from his investments in Bitcoin than what has on gold.

Although Cramer did not specify exactly how much money he generated from his Bitcoin sales, in other interviews, he stated that he invested $500,000 in Bitcoin after he faced frustrations with gold. That could put his profits from yesterday’s sales at over $1 million.

Why Bitcoin Is A Good Thing

Bitcoin continues to gain more and more authority as more investors are allocating part of their cash into the cryptocurrency. Most prominent entrepreneurs have adopted the alternative store of value. Michael Saylor, the founder and CEO of MicroStrategy software firm, was the first ever institutional investor to bet on Bitcoin. Jack Dorsey’s Square became the second to invest in the crypto asset and among other investors, Tesla became the biggest.

Many investors together with Saylor are borrowing money at low-interest rates to purchase even more Bitcoins. The reason is that Bitcoin is a relatively safe bet.

Recently, Saylor hosted a seminar for institutional investors to help them understand the benefits of purchasing and holding onto Bitcoin when reflected in the current conditions of the economy. The economy is unstable and with inflation and decreasing buying power of fiat money, investors see Bitcoin as the solution.

Source: Blockchain News

MicroStrategy purchased an additional $ 15 million in Bitcoin, upgrading its total assets to more than $ 5 billion

Michael Saylor’s business intelligence firm MicroStrategy bought an additional $ 15 million in Bitcoin on Friday for an average price of $ 57,146, bringing the company’s total BTC holdings to 91,326 units.

MicroStrategy’s BTC holdings are now worth about $ 5,159 billion. Of which, MicroStrategy’s total cost to buy bitcoins is about $ 2.211 billion, which translates to an average price of around $ 24,214 per coin.

Michael Saylor has long been an advocate of digital currencies, especially bitcoin. He even held a conference called “bitcoin for corporations” on February 4 to attract more institutional investment. Saylor said the conference was held after receiving questions from fellow CEOs about his company’s bitcoin purchases.

MicroStrategy for the first time to invest in bitcoin was in August 2020, for a total of $ 250 million.

Since then, Saylor has changed its policy to make bitcoin the treasury reserve asset of MicroStrategy, and continued to enter the digital currency market.

Saylor resumed buying $ 50 million worth of bitcoin on December 4, then quickly made another $ 400 million bitcoin purchase on December 8.

When MicroStrategy ran out of money to buy bitcoin, Saylor switched to convertible bonds to continue its bitcoin buying habit. On Feb. 17, MicroStrategy’s convertible bond reached $ 900 million, and the company used the proceeds to buy more bitcoin.

Since then, MicroStrategy has taken advantage of the market sell-off opportunity to buy more bitcoin. As of now, the number of BTC held by the company is 91,326.

Recently, MicroStrategy’s business and operations plan took a step back from its bitcoin purchases. The company boasts a market cap of around $ 7.71 billion as of March 12, but achieves revenue of just $ 480 million by 2020 while a net loss of around $ 7.5 million, according to records of SEC.

MicroStrategy is down 4.70%, at $ 770 per share, at 9:38 am ET on Friday.

What happened after 1 year of Bitcoin Black Friday and what happened next?

Exactly a year ago, when the world first began to face an extremely dangerous pandemic and panicking global markets, Bitcoin ran into one of the biggest incidents in its short history. it. Prices almost halved within hours, to as low as $ 4,600 and is often referred to as “Dark Thursday Market Incident”.

The drop in price at the time was the largest percentage drop for Bitcoin since its first launch in 2009 and led to serious questions about the perceived value of the cryptocurrency as a ‘fortune.’ safe-haven assets “,” unrelated to “other assets.

Bitcoin Price on Black Thursday | Source: TradingView

Since its mid-March 2020 crash, Bitcoin has taken off like a rocket, breaking every conceivable record on its way and is now poised to break all-time highs as access to $ 60,000.

In fact, when you scale down the chart, that dreadful Black Thursday crash doesn’t seem so serious any longer.

Bitcoin one year after the COVID | Source: TradingView

“The March 12, 2020 crash affected all categories – even traditional safe-haven assets like gold – in a frenetic flight to cash in on Bitcoin. treat like any other”, said Jason Deane, a cryptocurrency market analyst at Quantum Economics.

“However, the perpetual change in the macro-finance landscape that followed created a new wave of trust in crypto assets, especially Bitcoin, from being an experimental concept and a fringe concept. into a serious contender for the long-term store of value, ”he said.

It only took Bitcoin about a month and a half to regain losses incurred on Dark Thursday – but it did not reach itself as it is today and may even have received some help from competing assets.

A fiery DeFi summer

The DeFi craze during the summer of 2020 is believed to have helped fuel the crypto market’s recovery. Decentralized Finance (DeFi) stands for a set of financial products and services that operate like a bank without the need for an intermediary like a bank. All the actions are peer to peer, and the majority happens to ETH, the second largest cryptocurrency by market cap.

When DeFi started to flare up in the mid-2020s, it caught the attention of investors as well as risk lovers – and as the dominant cryptocurrency in the market, Bitcoin provided a portal to infiltrate this new territory.

As more and more people flocked to participate in DeFi and more Bitcoin was traded, the price of BTC slowly recovered.

DeFi channel | Source: TradingView

Institutional investors add oil to the fire

But if DeFi lit the game, institutional investors fueled it, starting with cloud software company MicroStrategy.

The publicly traded company is probably not entirely new to most crypto market observers as early as 2020. But by August, the company has become a household name in the crypto space.

MicroStrategy made the first jump into Bitcoin with a $ 250 million investment – a modest sum compared to what company CEO Michael Saylor subsequently made. Throughout the year, MicroStrategy continued to make notable announcements about major Bitcoin purchases. The company currently holds more than $ 5 billion in Bitcoin as part of its reserves.

After MicroStrategy, other companies quickly followed suit.

Jack Dorsey’s Square announced a $ 50 million Bitcoin investment in October 2020, before the price spike. A few days later, PayPal announced the launch of a service to buy, sell and store cryptocurrencies. That has helped push prices even higher.

The story does not stop there. Earlier this year, Elon Musk’s Tesla revealed it had invested $ 1.5 billion in Bitcoin, helping BTC finally reach the completely undiscovered territory it discovers today.

Certainly, MicroStrategy’s initial move with Saylor’s new Bitcoin evangelization on Twitter Crypto led the way for people like Musk and others to follow suit.

Organized channel | Source: TradingView

Deane said:

“When the first public company MicroStrategy released strong financial reporting on Bitcoin’s sustainability, it was a clear path for other global institutions and payment systems to follow suit, driving trust. , accept and care more. The network effect of Bitcoin has increased, so has the price ”.

And the result of these moves is that the “typical Bitcoin investor today” is much more aware of the financial reason to invest in Bitcoin, rather than the original buyers who jumped in with “dream thinking. pure dreams in the past ”.

What should Bitcoin Hodler to expect?

For now, according to the analyst, Bitcoin appears poised to continue to reach new heights, although the price drop in the process should not come as a surprise. After all, Bitcoin recently experienced its worst dollar-denomination in history just a few weeks ago.

“We expect the cryptocurrency ecosystem to continue to grow exponentially, cross boundaries, test new concepts and create new services. Some of them will bring new challenges and failures, but the upward trajectory of the operation is now inevitable and unstoppable, ”said Deane.

It all sounds very gratifying if you are a Bitcoin hodler.

Bad crypto news of the week – MicroStrategy’s bottom line gets beefier on Bitcoin moves

It’s been another strong week for Bitcoin. The dollar price is up about 2.5 percent over the week, although that’s still something of a decline from its recent high above $13,400. At one point, Bitcoin fell 4 percent in 24 hours. But bulls remain optimistic and see the price advancing towards $20,000, possibly as early as March. That future price movement will depend on a number of factors, including whether banks follow Paypal into cryptocurrency acceptance; the size of the stimulus expected to counter the new coronavirus outbreak; and the pattern of the hash rate, among other factors. One point of volatility could come at the end of the month: that’s when the BTC options market reaches a $750 million expiration. In the meantime, large amounts of Bitcoin are on the move. A whale has recently transferred a billion dollars’ worth of Bitcoin. It cost them $3.58.

Despite that volatility, Anthony Pompliano, the co-founder of Morgan Creek Digital, thinks that Bitcoin has broken away from its correlation with the stock market and is now a safe haven for investors. Mike Novogratz agrees. He sees Bitcoin as a kind of digital gold: a good way to store value but not something that will function as a currency in the next five years. That opportunity, though, may only be available for Bitcoin. Altcoins are doing less well; Ethereum, for example, has been looking relatively weak despite Bitcoin’s growing strength.

Some companies have been doing well out of that strength. Business intelligence firm MicroStrategy has made more than $100 million in profit from its Bitcoin investments. That’s more than it’s made analyzing business. Visa might struggle to follow them. The US Department of Justice is now investigating the company’s acquisition of Plaid, a fintech company.

The government has also been investigating social media. A Senate Commerce Committee hearing gave the CEOs of Google, Facebook, and Twitter, a partisan grilling. One solution to the opacity of the companies’ content moderation, though, might be open-source algorithms.

Senators haven’t been alone in engaging in partisan hackery. A group of hackers took over President Trump’s campaign website. The hackers said that they had evidence proving the president’s “criminal involvment and coorperation with foreign actors” (sic)… and asked for funds.

In Japan, a group of companies have come together to create a blockchain-based trade data management system. In Siberia, a new Bitcoin mine will create 100 jobs. Singapore’s biggest bank, DBS, is launching an exchange to swap fiat for cryptocurrencies. And in China, charities are using the blockchain to give donors trust as they raise money for people in Wuhan, the epicenter of the coronavirus outbreak. In the US, though, while Nasdaq CEO Adena Friedman has said that machine learning and cloud tech will drive evolution in capital markets, the adoption of the blockchain is “complicated” and “will take longer.”

At least the art world is moving ahead. From art inspired by the blockchain to crypto art and digital marketplaces, artists and auction houses have found new opportunities in blockchain technology. Another reason for optimism.

Both of these indicators suggest a large buy signal for Bitcoin

Bitcoin’s NVT (value transacted over the network) metric is used to determine whether an asset is up or down. However, using it in tandem with other metrics / metrics will work best.

What does NVT mean?

To put it simply, the NVT metric shows whether the network is being used a lot or not. If the NVT is high, it means the network is in demand and usage is high, it appears to be investing more in it. Conversely, if the NVT is low, it means that people are not using blockchain as much.

Usually, when the NVT ratio is low, it means less network usage and investors are not actively investing.

Source: Woobull

At press time, Bitcoin’s NVT is at a level last seen during the COVID epidemic’s prior period. This means that the Bitcoin network is not being used much, investors are not actively investing in Bitcoin.

It sounds like a bearish sign, but it’s not, and it even sounds absurd considering MicroStrategy and CashApp’s investments. However, as mentioned earlier, this data is recommended to be used in conjunction with other metrics.

Here’s why low NVTs are bullish for Bitcoin:

Low NVT ratio is often seen near the bottom: So the price can be expected to go higher. Last time, NVT at this low price was at $ 5,000. Since then, the price has more than doubled. So we can expect the same thing to happen even now.

Difficulty range – This metric takes into account Bitcoin miners and network difficulty, which is essentially the backbone of the Bitcoin network. This metric tends to increase when the bands are tight and is also a good time to invest. The bands consist of simple moving averages of the difficulty of the Bitcoin network so the rate of difficulty change can be easily seen.

The Mayer multiple index for Bitcoin has also lit up a bullish sign.

For the most part, the on-chain metrics for Bitcoin look strong and suggest Bitcoin will soon increase in price.

Technically, Bitcoin has seen 6 consecutive green candles. In the past, this has happened 15 times since 2015 and shows an average increase of 36.14% over the course of 14 days.

Hence, we can conclude that both on-chain engineering and fundamentals favor Bitcoin bulls.

Bitcoin prices stabilized as asset management giant Stone Ridge followed MicroStrategy for 10,000 BTC acquisition

Bitcoin is winning the war of safe haven, seeing a business just adding $ 115 million in Bitcoin to its balance sheet.

Property management giant Stone Ridge confirmed that it made a massive purchase through the New York Digital Investment Group (NYDIG), which has more than $ 1 billion in assets under management.

The Fed needs to print $ 5 trillion by 2021

“The macro landscape versus the public health landscape has made many people rethink the composition of their portfolios,” the company’s new CEO, Robert Gutmann, told Forbes on October 13.

Michael Saylor, CEO of MicroStrategy purchased $ 425 million of Bitcoin in August and September, replied:

“When trillions of dollars on the balance sheets of banks, wealth managers, insurance companies, foundations and family companies start to move to the Bitcoin space, they will need companies companies as NYDIG instructions. It can be reduced to 1 billion dollars or more ”.

This news comes when a new report warns that the US Federal Reserve (Fed) will need to print $ 5 trillion next year.

Announced on October 12, a report by economists Lawrence Summers and David Cutler calculated the indirect cost of the corona virus to be $ 16 trillion.

“Total costs are estimated to be over $ 16 trillion, or 90% of the annual US gross domestic product. For a family of 4, the estimated damage would be close to $ 200,000, ”the report summarized:

“About half of this is the income lost due to the recession caused by COVID-19, the rest is the economic impact of a shorter and less healthy life.”

Commenting on the results, David Rosenberg, chief economist at Rosenberg Research & Associates concludes that the Fed alone will need to print $ 5 trillion in liquidity by 2021.

This will add to the insecurity that began with mass printing of money this year, bringing the national debt of the United States to more than $ 27 trillion.

Rosenberg told Twitter followers to buy gold, but for Max Keizer, there is an obvious alternative that makes more sense.

“Gold works well, but Bitcoin is the fastest horse in the race,” he wrote in reply to Rosenberg.

Bitcoin hit a peak of $ 11,690 on Tuesday before reverting back to $ 11,400 right now, a monthly gain of 10.5% and an annual return of 60%. As The Bitcoin Journal reported, there are growing hopes that in the short term further returns, possibly even reaching $ 17,000 if $ 12,000 is moved in support.

From a V shape to a K shape

For the fiat economy, however, the picture looks a lot bleaker, according to new comments from the International Monetary Fund (IMF).

Speaking to CNBC last week, IMF Director-General Kristalina Georgieva said that the prospects for many countries are not now a V-shaped recovery but a K-shape.

“Most countries will face uneven recovery and we see in many cases the“ K ”, with parts of the economy doing really well, and parts of the economy doing well. The other is significantly decreasing, ”she predicted.

For Keizer, this is the textbook definition of a phenomenon he calls “neo-feudalism.” This involves concentrating more wealth in the world closer to the state at the expense of those who are farther away, creating a modern equivalent between lords and peasants.

“The intense concentration of wealth created by Covid becomes eternal. This will be a new Dark Era, ”he tweeted on Wednesday.

“Bitcoin fixes this”.