Rivemont Crypto Fund on Bitcoin: Any Price Above $6,000 Support Level ‘Remains Positive to Our Eyes for Future Price Action’

Siamak Masnavi

On 10 August 2018, Rivemont Investments, which manages the Rivemont Crypto Fund (the "only actively managed cryptocurrency fund in Canada"), in a note to investors posted on Facebook, discussed Bitcoin's recent price action, and stressed the importance of the BTC price staying above the $6,000 support level.

The fund, which launched in December 2017, currently invests in the following cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP, Bitcoin Cash (BCH) and Ethereum Classic (ETC). 

In its update for the week ending 10 August 2018, Rivemont explained that "the correction initiated two weeks ago" was due to market players' overly negative reaction to the news of the U.S. Securities and Exchange Commission (SEC) rejecting (for the second time) the Winklevoss Bitcoin ETF application (i.e. proposed rule change by the Batz BZX Exchange):

"The market is particularly sensitive to any news related to the introduction of a bitcoin-based ETF. As Dan Morehead, CEO of the Pantera Cryptocurrency Fund, says, one could even call the market players' reactions exaggerated. This reality may be due to a lack of understanding of the complexity of introducing such a financial product, or to the large number of projects currently under study by SEC."

Next, Rivemont noted that a lot of positive news, such as the Bakkt announcement by Intercontinental Exchange (ICE), seemed to be getting ignored due to the cryptocurrency market's obsession with Bitcoin ETFs:

"Much more positive news was virtually ignored in comparison to the reaction created by these ETF projects. Indeed, ICE, the parent company of the New York Stock Exchange, announced the creation of its cryptocurrency platform named Bakkt last Friday. The company is working with Microsoft to put this new ecosystem for digital assets in place. Strategic partnerships with BCG and Starbucks have already been signed."

Finally, Rivemont moved to its prediction for the movement of the BTC price in the short term:

"After the rapid correction of the last two weeks, a rebound that could be described as technical rather than fundamental is predictable. This is also the action we can observe since Thursday. It is too early to know if this will translate into a rebound on the strong support around $ 6,000, or if it is only a temporary relief from the current trend... It goes without saying that the support around $ 6,000 is crucial. A period of consolidation is normal and even desirable after the incredible rise seen in 2017. Any price above this threshold remains positive to our eyes for future price action."

The "technical" rebound Rivemont talked about seems to be in progress, with Bitcoin currently well above that "crucial" $6,000 support level; at press time, BTC is trading at $6,475, up 2.17% in the past 24-hour period, according to data from CryptoCompare.

 

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Tim Draper Calls Indian Government “Pathetic and Corrupt” Over Bitcoin Ban

  • Tim Draper calls the Indian government "pathetic and corrupt" over a proposed ban on cryptocurrency.
  • Unofficial drafted bill has emerged online making the use of cryptocurrency punishable with 10 years in prison.

American billionaire investor Tim Draper has called out the Indian government over its purported plan to ban bitcoin and all forms of cryptocurrency. 

Proposed Bitcoin Ban

On July 14, blockchain lawyer Varun Sethi published to Twitter an unofficial draft of a bill circulating the Indian government that would ban the use of cryptocurrency. 

In addition to prohibiting the use of bitcoin, the bill seeks to impose a 10-year prison sentence on Indian citizens who “mine, generate, hold, sell, transfer, dispose, issue or deal in cryptocurrencies.” The bill does allow one caveat for the digital rupee, which is a token issued and backed by the Reserve Bank of India (RBI). 

Pathetic and Corrupt

In response to the proposed ban, Tim Draper took to Twitter to vent his feelings against the Modi government. 

Draper, who is known for his massive investments in Baidu, Skype, and Tesla, has become a bitcoin bull over the years, in addition to issuing some of the more far-fetched price predictions.

The American investor has also been an active presence encouraging developing countries to consider the benefits of bitcoin and digital currencies. More recently, he advocated the utility of bitcoin to the Argentine government, a country that has been combating fiat hyperinflation for years. 

Others Weigh In

Other high profile individuals have voiced their disapproval over the Indian government considering a bitcoin ban, including Barry Silbert who predicted the decision having the opposite effect on bitcoin adoption. 

John McAfee also chimed in with his belief that governments have little control over the use of bitcoin. 

Supporters of the Ban

However, not everyone took kindly to Draper’s harsh criticism of the Modi government. Given the rise in cryptocurrency-related scams over the past two years, some Indian citizens believe banning bitcoin will be a net positive for the country. 

While Draper may be stirring national sentiment related to cryptocurrency, it’s worth noting that the Indian government has yet to impose a ban of any sort. However, given the amount of rhetoric over the last several months and the more recent emergence of the drafted bill, it appears the Modi government is indeed contemplating decisive action against bitcoin and digital currencies.