'Strong Signals': Crypto Winter Might Be Over, Bitcoin Could Surge Past $100,000, Analyst Argues

Omar Faridi

Naeem Aslam, the chief market analyst at ThinkMarkets, a financial services firm focused on forex, equities, and cryptocurrencies, has noted that “questions are being asked constantly when it comes to Bitcoin’s (BTC) battle with the $4,000 mark.”

Aslam, a business and financial economics graduate from the University of Leeds, argued in a blog post (published on March 19th, 2019) on ThinkMarkets that “the result of this battle sets the tone for a bullish or bearish trend.” He explained:

Since December 14th, 2018, there have been several battles between bulls and bears at the price level of $4,000. In each of these battles, bulls have lost the war because after the first attack at the $4,000 level, the bears have been able to gain enough strength to push the price back below this critical mark. It is in this essence, that this level has become a matter of life or death for crypto traders.

Aslam, who received his qualified financial advisor certification from the University College Dublin, stated that “if you are a long-term investor, you will not really worry about these short-term levels.” He also wrote:

The element of risk premium is of critical importance here and I find this immensely interesting ... For instance, Bitcoin … is trading at $3,962 [at the time of writing this article] and the recent meaningful low was formed on March 4th when the [cryptocurrency] touched the price level of $3,671. The difference between the two is your risk premium.

He added that “it is all about making an intelligent choice and buying when the price is still close enough to its bottom. For investors who are buying at these levels, they usually have a target of [the] previous high, and for Bitcoin, it needs to be the level of $20K.”

"High Chance" Next Bull Market Will Push BTC Price Past $100,000 

According to Aslam, there is a fairly “high chance” that the next cryptocurrency bull market will push the price of bitcoin (BTC) “over $100,000.” He also believes that Bitcoin’s value can potentially surge to $400,000 and that “crypto winter is coming to an end.”

Going on to explain why he thinks that cryptocurrency prices will recover, Aslam pointed out that in 2011, bitcoin’s price dropped about 93% from its all-time high (at that time). In 2014, BTC price fell by 84% from its previous high and “as for the most recent price crash … the most important part is that the price has started to rally [again].” Because bitcoin price “broke its longest streak of monthly losses,” Aslam believes it’s “the strongest signal” of the beginning of another crypto bull market.

Israel Bitcoin Association Petitions Banks to Reveal Crypto Policy

Neil Dennis

A number of Israel's bitcoin traders have already filed lawsuits against the country's banks and on Monday traders lodged a formal petition demanding that the financial industry explains its cryptoasset policy.

Israel's banks have barred the country's crypto investors from depositing the returns on their bitcoin and other digital currency investments due to the nation's strict laws on money laundering and the financing of terrorism.

In recent months banks have even blocked investors who are known to trade cryptoassets from opening accounts, according to a report by Israeli business journal Globes.

Central Bank Warning

Israel has seen strong growth in digital currency investment in recent years and in 2014 the Bank of Israel, the nation's central bank, issued a warning - in co-operation with the Tax Authority and several regulatory agencies - about the dangers associated with the use of virtual currency, including fraud and money laundering.

Taking aim directly at financial services providers, the statement said:

As the use of virtual currencies enables their anonymous transfer, in many cases evading the need to use financial institutions that are subject  to an anti-money laundering and terror financing prohibition regime, this is an activity with a high risk co-efficient in terms of money laundering and terror financing. Therefore, financial institutions must take this into account within the framework of their risk management policy.

Injunction

Israel's top legal authority is well aware a problem exists. In February 2018, the Supreme Court issued a temporary injunction prohibiting a bank from blocking activities in an account held by a company that engaged in bitcoin trading.

The bank, however, countered the Supreme Court's injunction, citing the 2014 Bank of Israel warning regarding the risks of bitcoin trade. The bank alleged that activities exposing the bank to such unlawful acts might "harm its reputation and public trust in the bank".

While the injunction stood, it did not affect the bank's right to examine individual activities in the account, nor did it affect the bank's ability to take steps to minimize risks associated with the business activities of the company.

Freedom of Information

The freedom of information petition filed in the Jerusalem District Court on Monday by the Israel Bitcoin Association demands that commercial banks make public their policies on cryptoassets.

Jonathan Klinger, legal adviser to the Bitcoin Association, told Globes:

Under the Banking (Licensing) Law, it is the duty of a bank to state to the Bank of Israel the policy under which it refuses to conduct transactions. We therefore contacted the Bank of Israel and asked for this information, but the Bank of Israel did not agree to disclose this policy to us. We therefore decided to petition the court to force the Bank of Israel to provide us with a copy of the policy submitted to it by the banks.

Lawsuits

Last week the Tel Aviv District Court received a petition for approval of a 75 million shekel ($21.3 million) class action suit against Bank Hapoalim that alleges the bank refused a customer seeking to deposit money from the sale of digital currencies.