Bitcoins Bulls Are Revving Up the Lamborghinis

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A one-standard-deviation increase in the Twitter post count for the word “Bitcoin” yields a 2.5% increase in week-ahead Bitcoin returns. By Lionel Laurent | Bloomberg May 13 at 1:50 PM Bitcoin’s cheerleaders are making the most of this year’s Blockchain Week, the annual New York junket where past promotional stunts have included renting Lamborghinis to park outside events (to create an impression of the untold wealth inside). Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. Regaining control of the narrative on price today is critical to the price of Bitcoin tomorrow. A study by Yale economists last August found that gains beget gains: A one-standard-deviation increase in the current day’s Bitcoin return predicts a 0.33% increase in the next day’s.

Article PreviewBy Lionel Laurent | Bloomberg May 13 at 1:50 PM

Bitcoin’s cheerleaders are making the most of this year’s Blockchain Week, the annual New York junket where past promotional stunts have included renting Lamborghinis to park outside events (to create an impression of the untold wealth inside). After a deeply chastening 2018 for cryptocurrencies, you might have expected a little more circumspection from the digital money crowd. Think again.

Over the past month, the price of a Bitcoin has jumped by 40% from about $5,000 to more than $7,000 (it hit a low of just below $3,500 earlier this year), and crypto celebrities have been quick once more to play on the public’s Fear Of Missing Out. Cameron Winklevoss, one half of the famous Facebook twins, tweeted: “‘I wish I bought more.’ — Said Everyone.” Vinny Lingham, known as the “Oracle” for his knack of timing crypto trades well, said he would become a “raging bull” if Bitcoin’s price held above $6,200.

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