“We’re In A New Bull Market,” says Pantera Capital CEO But Warns Of A Bitcoin Bear Trigger

Pantera Capital CEO Dan Morehead is now calling for a new bull cycle as Bitcoin price moves towards $60,000 after recovering from the June low that was just under $29,000.

“​​We had a period of temporary insanity,” wrote Morehead in this month’s note to investors, pointing to China banning cryptocurrency mining and trading that had a negative impact along with the debate on the environmental impact of Proof-of-Work consensus mechanism, adding, “now we’re in a new bull market.”

Already up more than 30% in October, Bitcoin price is currently only 13% away from its all-time high of nearly $65,000. The market is hopeful of a strong performance this quarter, with Q4 being historically a bullish month.

According to Morehead, the deep bear markets where we experienced drawdowns of over 80% may be a thing of the past, and future bear markets will now be “shallower.”

“As the market becomes broader, more valuable, and more institutional, the amplitude of price swings will moderate.”

But at the same time, we won’t be seeing any more of the 100x-in-a-year rallies either, he added.

The Bear Catalyst

While Morehead is confident in the second round of the bull cycle, he warned of a potential bear catalyst in the form of the launch of the Bitcoin exchange-traded fund (ETF).

As we reported, the market is highly hopeful that the US Securities and Exchange Commission (SEC) will finally approve a Bitcoin Futures ETF this month. SEC Chair Gensler has also been hinting at a possible futures-based ETF for months.

This could be why Bitcoin futures on the regulated exchange CME is trading at a much higher price than other exchanges. The CME bitcoin futures basis increasing at a faster rate suggests that institutional investors are buying BTC futures that can further put upward pressure on the crypto asset and lead to an even steeper curve.

Interestingly, as NYDIG pointed out, the number of contracts that a participant such as an ETF can own on the CME is also raised to a total of 6,000 starting October 18th. The decision on the first ETF filed by ProShares falls on the same day.

If SEC says nothing on this, the ETF “will be free to launch on 10/18 as the 75 days req will have passed,” said Eric Balchunas, Senior ETF Analyst for Bloomberg. “No news is prob good news at this point,” he added.

Meanwhile, to Morehead, this approval could turn out to be a ‘Buy the rumor, sell the fact’ much like two other past events.

Will History Repeat Itself?

The Pantera Capital CEO pointed to the launch of Bitcoin futures on CME in December 2017 and Coinbase going public via a direct listing in April this year as examples. The market rallied 2,440% the first time and 822% the second time but resulted in an 83% and 53% bear market, respectively.

The same can happen when Bitcoin ETF gets approved, said Morehead as he concluded:

“Will someone please remind the day before the Bitcoin ETF officially launches? I might want to take some chips off the table.”

Trader @SplitCapital, however, is not of the same opinion as he argued that the CME futures launch came at a time when the market was “coming off of the most frothy period in crypto history,” and funding rates were at 30% for short-dated futures. Similarly, during Coinbase’s IPO, there was the most amount of bitcoin openly traded in history.

This time, however, financing rates are averaging below 15%, open value is at record lows, and we have a renewed macro tailwind in the form of fiscal and monetary policy, which means this is not a classic ‘sell the news’ event, and “this time really is different.”

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Author: AnTy

Block.one Capitalizing on Bull Market, Through “Bullish” Going Public in a SPAC Deal at a $9B Valuation

After EOS, Block.one Capitalizing on Bull Market Through “Bullish” Going Public in a SPAC Deal at a $9B Valuation

While EOS price is seeing a 10% jump from the news today, the token is down 82.6% from its all-time high of $22.7 three years back in 2018 and failed to reach its peak even in 2021, where crypto prices soared to new heights and made crypto over a $2.6 trillion industry.

Block.one’s Bullish is going public through a merger with a special purpose acquisition company (SPAC), Far Peak Acquisition Corp, that will put its valuation at about $9 billion.

The deal includes a $300 million private investment in a public entity with other investors, including funds and accounts managed by BlackRock, Galaxy Digital, and Cryptology Asset Group.

This merger will provide $600 million in net cash, according to the statement.

Block.one launched Bullish in May which plans to launch a cryptocurrency exchange later this year to capitalize on the growing adoption and the bull market.

Ahead of its public launch, which is anticipated later this year, Bullish will be running a private pilot program in the coming weeks.

Far Peak CEO Thomas W. Farley, a former NYSE president, will be the CEO of Bullish while Block.one CEO, Brendan Blumer, will become the chairman of the combined firm.

“With the increased interest from institutional players and sophisticated traders, it is critical to iterate on the existing exchange infrastructures we see today,” Farley said in the statement.

The deal, subject to approval by Far Peak stockholders and regulators, is expected to close by this year-end.

Block.one is backed by billionaire entrepreneur Peter Thiel and hedge fund managers Alan Howard and Louis Bacon, Galaxy Digital, Japanese bank Nomura, German investor Christian Angermayer’s Apeiron Investment Group, and Hong Kong billionaire Richard Li.

Block.one is the same company behind EOS and conducted the largest ever initial coin offering (ICO) of $4 billion in 2017.

ICO investors actually filed a lawsuit against Block.one for misleading them into believing that EOS would be decentralized. Last month, Block.one settled its class-action lawsuit for $27.5 million concerning the ICO itself.

The hefty ICO didn’t do anything for the EOS investors, with the cryptocurrency currently worth less than $3.8 billion at the 28th spot while the token trades under $4 per EOS.

While EOS price sees a 10% jump from the news, the token is down 82.6% from its all-time high of $22.71 three years back in 2018, as per CoinGecko. The cryptocurrency failed to reach its peak despite the raging bull market up until a couple of months ago, which put the crypto prices to new heights and made crypto over a $2.6 trillion industry. EOS 19.14% EOS / USD EOSUSD $ 4.27
$0.8219.14%
Volume 2.15 b Change $0.82 Open $4.27 Circulating 955.04 m Market Cap 4.08 b
9 h After EOS, Block.one Capitalizing on Bull Market Through “Bullish” Going Public in a SPAC Deal at a $9B Valuation 2 d NFT Mania Peaked in March But Play-to-Earn Games Leading the Market Now; Accelerating Mainstream Mass Adoption 2 w Venture Capital Funds Have Already Invested $17 Billion in the Crypto Market This Year

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“Bullish’s entry into the public markets allows our customers to take part in Bullish by holding a piece of our company, without any of the regulatory uncertainties or jurisdictional limitations of a profit-sharing token issuance,” Blumer told Reuters.

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Author: AnTy

Big Tech Critic at the White House is Revealed to Be A Bitcoin Millionaire

Tim Wu, who called Bitcoin a “bubble” at the height of the 2017 bull market while seeing its potential as a “store of value,” currently has Bitcoin as the largest holding in his financial portfolio.

Top antitrust expert at the White House Tim Wu has been revealed to be a Bitcoiner, according to a personal financial disclosure he recently filed.

A leading critic of Big Tech, Wu joined the Biden administration in March as a special assistant for technology and competition policy to the president at the National Economic Council.

While Wu has not been involved in the policy matters of cryptocurrency, this disclosure is a big support for the leading cryptocurrency and the market, which continues to see an increase in its adoption. An unnamed official White House official told Politico,

“Tim is recused from any particular matters involving bitcoin or cryptocurrency generally because of his financial interest, and has not worked on any such matters.”

Wu owns somewhere between $1 million and $5 million in Bitcoin, which is currently trading under $33k, down about 50% from its all-time high of nearly $65k two months back.

Besides Bitcoin, he also owns between $100,001 and $250,000 in FIL tokens, the native crypto of the storage platform Filecoin. FIL -6.73% Filecoin / USD FILUSD $ 76.29
-$5.13-6.73%
Volume 1.61 b Change -$5.13 Open $76.29 Circulating 77.7 m Market Cap 5.93 b
9 h Big Tech Critic at the White House is Revealed to Be A Bitcoin Millionaire 1 mon Filecoin (FIL) Launches Free Decentralized Storage Solution for NFT Markets 1 mon Microsoft-Led Consortium Invests $1.3B in Largest Decentralized Storage Facility in China to Mine Filecoin (FIL)

Bitcoin is the largest holding in his financial portfolio, between 25% to 43%, while much of the rest of his holdings are in Vanguard mutual funds. He is also an investor in a traditional store of value, owning between $15,001 and $50,000 in gold bars.

Wu actually called Bitcoin a “bubble” at the height of the 2017 bull market in December and questioned, “is it really worth anything at all?”

“Bitcoin isn’t backed by any sovereign, and unlike a stock or a bond, it gives you a claim to nothing other than Bitcoin itself,” he wrote at the time, although he added that that “illusory quality” describes most forms of money.

While its volatility makes its practical use in everyday purchases doubtful, Wu said the cryptocurrency “might work fine as a store of value that you can sell.”

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Author: AnTy

Bitcoin Bulls Cash In On ‘Rare’ Dip Below 100 Daily SMA; Retail Getting Out?

While the latest correction liquidated $4 billion to test weekly bull market support, BTC moves from weak to strong hands. Amidst this, today, Bitcoin mining difficulty increased by 21.5%, the largest positive difficulty adjustment in almost 7 years.

While Ethereum co-founder Vitalik Buterin wrecked the dog meme coins, Tesla CEO Elon Musk wrecked Bitcoin, and by extension majority of the cryptocurrency market.

This resulted in liquidating 393,593 traders for $4 billion in the past 24 hours, as per Bybt.

Crypto stocks from Coinbase Global Inc., Marathon Digital Holdings, Riot Blockchain Inc. to Microstrategy Jack Dorsey’s Square Inc., and Tesla, everything slipped.

Crashing to $46,000, Bitcoin price had managed to recover to $52,500 only to tumble back down to $48,420 today. As Bitcoin dips, Grayscale Bitcoin Trust (GBTC) rips, hitting a record discount of under 20% to net asset value (NAV).

While BTC was working on developing a range in 60K-46.5K, the actual range is currently 59.5K-46K.

However, nothing goes up in a straight line, and pullbacks are part of bull runs.

With the latest correction, the price has dipped below 100 daily SMA, which is rare and has historically identified major bottoms, noted Charles Edwards, founder of Capriole Investments. “Any sustained time under the MA100 would be very concerning,” he added.

What’s interesting is that while some people panic sold their BTC after Musk said Tesla wouldn’t be accepting Bitcoin as payment anymore, citing environmental concerns and saying Bitcoin’s “energy usage trend over past few months is insane,” many took advantage of this buy the dip opportunity.

As usual, Michael Saylor’s MicroStrategy announced the purchase of 271 BTC for $15 million at an average price of ~$55,387 per bitcoin and now holds a total of 91,850 bitcoins.

Jason A. Williams also went deep into the bitcoin buying spree and urged Dave Portnoy to join him on this dip and double his BTC holdings to 2 BTC.

10,000 Bitcoin has actually just flowed out from Coinbase as BTC moves from weak hands to strong hands.

SoftBank Group Corp. founder Masayoshi Son might not be one of them as he said on the company’s earnings news conference,

“There’s a lot of discussion over if it’s a good thing or a bad thing, what’s the true value or is it in a bubble — honestly speaking, I don’t know.”

But at the same time, he said cryptos popularity “can’t be ignored” like bonds or diamonds. “There’s no need to reject” the cryptocurrency either, he said. “We are always having such internal discussions.”

Amidst this price action, today, Bitcoin mining difficulty has increased by 21.5%, the largest positive difficulty adjustment in almost 7 years.

“Over a longer-term time horizon we definitely think this is the beginning phase of what’s going to be the birth of an entirely new asset class that we think will be in the trillions of dollars,” said Yassine Elmandjra, a crypto analyst at Cathie Wood’s Ark Investment Management LLC.

With much of the value “speculative,” Elmandjra said, ultimately, washout will happen, which is exactly what we experienced.

Meanwhile, Vanda’s Onatibia and Pierantoni wrote that “The short squeezes in GME and AMC were the prelude to the explosion of another Bitcoin bubble,” as retail investors poured their money into the crypto asset. According to them, a correction in crypto would push them back into equities, which are trading at a significant discount from the February highs.

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Author: AnTy

Anthony Scaramucci’s SkyBridge Files for a Bitcoin ETF

The Bitcoin bull is the latest to rush in with a Bitcoin ETF who defended Tesla’s BTC investment and said Elon Musk owns over $5 billion in the cryptocurrency.

SkyBridge Capital founder Anthony Scaramucci has filed for the Bitcoin exchange-traded fund (ETF).

As per the Form S-1 filed with the US Securities and Exchange Commission (SEC) on Friday, the company applied to offer the First Trust SkyBridge Bitcoin ETF Trust (the “Trust”). The document reads,

“The Trust seeks to purchase and sell such number of bitcoin so that the total value of the bitcoin held by the Trust is as close to 100% of the net assets of the Trust.”

First Advisor would be serving as the advisor to the ETF and SkyBridge as the sub-advisor. The shares of the fund would trade on NYSE Arca.

SkyBridge is the latest one to file for an ETF with many others already in this race, including WisdomTree, NYDIG, and Valkyrie. VanEck’s filing from December has officially put the SEC on the clock for approval or disapproval.

According to the SEC commissioner aka ‘Crypto Mom,’ Hester Pierce, the agency has “dug ourselves into a little bit of a hole” by refusing to approve a single bitcoin ETF.

The world’s largest digital asset manager, Grayscale Investments meanwhile is also working on its own ETF product as it begins hiring for several ETF executives. In the meantime, GBTC premium remains negative for the 17th day in a row.

Three Bitcoin ETFs have already been launched in Canada, while one was approved just this week in Brazil. The first-ever Bitcoin ETF (BTCC) by Purpose Investments has now amassed $1 billion in assets in one month on the market.

The dominant store of value

As we reported, Scaramucci is a bitcoin bull who recently likened his outlook on the crypto asset to the shares of Amazon, which provided massive gains in the first 12 years and, after that, a 64x return.

The former White House Communications director concluded that Bitcoin is in a transitory phase and “Once it fully scales, … you’re going to be looking at that situation and saying, ‘OK, it’s way less speculative.’”

He also took to Twitter to defend Elon Musk’s decision to invest $1.5 billion of Tesla’s funds in Bitcoin.

“Idea Elon Musk would invest in “dirty asset” is absurd. Future of bitcoin mining is renewable energy,” said Scaramucci. According to him, Musk sees the future is renewables replacing fossil fuels and that Bitcoin demonetized gold, equities & art to become the “dominant” store of value.

Scaramucci also believes that Musk didn’t stop with just Tesla and that SpaceX also owns Bitcoin on its balance sheet.

“Elon Musk owns over $5 billion in bitcoin via Tesla, SpaceX, and personally. No living person has done more to protect the planet against climate change,” he said.

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Author: AnTy

“It’s not a bull market without FUD,” says CEO as Binance Gets Probed by CFTC

“It’s not a bull market without FUD,” says CEO as Binance Gets Probed by CFTC

Jake Chervinsky is urging caution, to take this “seriously,” saying the “CFTC & SEC have fully shut down crypto companies for regulatory violations before.”

Leading spot cryptocurrency exchange Binance is being investigated by the Commodity Futures Trading Commission (CFTC) over concerns that it allowed Americas to trade on the platform that violated US rules.

The CFTC is investigating if the exchange permitted US residents to trade derivatives, reported Bloomberg on Friday. While the exchange says it doesn’t have a corporate headquarters, the report notes that it has a Singapore office.

Binance isn’t registered with the agency. However, unlike BitMEX, Binance hasn’t been accused of misconduct, and the investigation may not lead to enforcement action, the report added.

Interestingly, the news came on when the market saw a deep sell-off that took Bitcoin to $3,800 a year back. As of writing, BTC is trading around $57,400 while BNB, the native token of Binance exchanges at $272, down about 20% from its $340 peak hit on Feb. 19.

Amidst this, Binance Chief Executive Officer Changpeng Zhao made several tweets referencing the regulatory action as “FUD.”

However, Jake Chervinksy, General Counsel at Compound Finance, urges the crypto community to take things “seriously.” He said,

“Even without individual criminal charges, civil enforcement actions can have serious consequences. CFTC & SEC have fully shut down crypto companies for regulatory violations before.”

Just this week, Binance named a former U.S. politician Max Baucus as a policy and government-relations adviser. The 79-year-old Democrat has served as Senator from Montana for over three decades, including the Senate Finance Committee for seven years.

Baucus will provide guidance and policy advice and further liaise with U.S. officials on best practices and policies affecting the industry, said Binance in a statement. And today, Binance is facing scrutiny from the regulators. However, what’s important is that it has a San Francisco-based exchange Binance.US that was established in 2019.

In the past 24 hours, its US entity recorded $655 million in volume, nowhere near the $32.7 billion managed by Binance. In the Bitcoin futures market, Binance leads with $31.44 billion volume and $3.67 billion in bitcoin open interest, as per Skew.

The exchange also follows withdrawal limits, analyzes deposits for signs of illicit transactions, and implements know-your-customer (KYC) restrictions on its users.

“Binance is committed to working closely with governments around the world,” maintains “CZ.”

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Author: AnTy

Crypto Miners Taking Advantage of Hot Market to Raise Funds

Cryptocurrency companies are taking full advantage of the ongoing bull market. There is a lot of euphoria present in the market as Bitcoin becomes a trillion-dollar asset and the overall crypto market cap grows past $1.7 trillion.

Already, we have seen the leading US exchange Coinbase filing to go public with a whopping $100 billion valuation. This is only expected to lift the market mood further, described by some as a watershed moment for the crypto industry.

Another crypto exchange Kraken is on track to do the same, but not until next year. ICE backed Bakkt took the SPAC route, and so did the Bitcoin miner Cipher.

The same can be seen happening in China, attracting millions of dollars.

Chinese Bitcoin mining machine manufacturer Ebang International Holdings conducted two fundraising rounds just last month. The company that debuted on Nasdaq in June raised $170 million.

Eban plans to use the newly raised capital to expand into crypto mining, to open crypto exchanges in Canada and Singapore, and to launch a Robinhood-like Bitcoin trading platform. Guo Yi, COO at Univest Securities, which underwrote the deals said,

“Ebang’s growth story is very attractive to institutional investors … fundraising by all industry players is getting busier thanks to the bitcoin bull.”

Last month, it also announced that it would be launching Dogecoin (DOGE) and Litecoin (LTC) mining operations, for which they completed a design of a chip for simultaneous mining.

A newcomer, another Chinese company, Code Chain New Continent Ltd, the waste recycling company raised $25 million in February to foray into Bitcoin mining, for which it has ordered 10,000 machines. David Feng, co-CEO of Code Chain said,

“Bitcoin prices present us with a unique opportunity to establish mining operations.”

Another Nasdaq-listed Chinese Bitcoin mining machine maker, Canaan Inc., is expanding into mining.

In private markets, “competition is white-hot and filled with sharp elbows,” said Jehan Chu, managing partner at Hong Kong-based blockchain venture capital firm Kenetic Capital. “Every good-quality funding round is oversubscribed within a week of it being announced.”

Crypto miner Argo Blockchain announced this week that it had raised around £26.8mln (nearly $37.5 million) through a placing of new shares to institutional and other investors. It will allow the company to complete an investment in Pluto Digital Assets and pursue strategic opportunities in crypto mining, decentralized finance (DeFi), and Web 3.0 initiatives.

Cobo, a crypto custodian and wallet service provider, is also planning to launch a new round of venture capital funding this month to finance its international expansion. “The market is bullish, and our business is growing very, very rapidly,” said Jiang Changhao, co-founder and CTO of the Beijing-based company, aiming for tens of millions of dollars.

Amidst this, the world’s largest crypto-mining equipment maker, Bitmain, has been the target of an investigation into illegal talent from Taiwanese firms over a period of three years. Taiwan prohibits firms from China from recruiting locally or doing business without prior approval.

In other news, JPMorgan has filed for a “Cryptocurrency Exposure Basket” through companies that invest in digital assets. The referenced stocks are Riot Blockchain, NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company Ltd., and others.

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Author: AnTy

Chinese New Year, the Year of Ox (Bull), is Finally Here as Crypto Market Aims for the .5 Trillion Mark

Chinese New Year, the Year of Ox (Bull), is Finally Here as Crypto Market Aims for the $1.5 Trillion Mark

The bullish tailwinds for the Bitcoin market hold strong with negative rates, bond purchases, fiscal stimulus, a weaker dollar, mainstream adoption in this year of bull.

Chinese New Year is finally here. The festival celebrated around the world on Friday marks the beginning of the Lunar New year. The Chinese New Year is also called the Spring Festival.

Each year has an animal sign in the Chinese Zodiac, and this is the year of Ox. As an analyst, Mati Greenspan says, “The qualities of this particular four-legged animal are not so different from those of bitcoin itself,” very slow and steady paced but moves only forward and with a sense of purpose.

The crypto market has already been enjoying an uptrend ever since last year, with the overall market cap ready to hit $1.5 trillion, as per CoinMarketCap.

While Bitcoin seems primed for $50k, the fully diluted market cap of the leading cryptocurrency has already surged past the $1 trillion mark. The reported market cap still has a way to go, as the highest level was hit on Friday at $898 billion.

Going forward, Bitcoin is “quickly approaching the two-year MA multiplier upper resistance, currently at $56k,” as per trader Josh Olszewicz. “Ideally, we tap somewhere near $56k, slow down a bit, reconsolidate at the midline, then make the move past the resistance (ala 2017),” he said.

Bullish Tailwinds

Bitcoin hit a new ATH at $49,000 this week as the institutional adoption of the market continues to grow with more and more people and companies embracing cryptocurrencies.

With the names like Tesla, BNY Mellon getting in, it is expected to lay down the groundwork for even more mainstream adoption of cryptos.

The weakness in the dollar also helps the markets, currently around two-week lows after the release of weaker-than-expected weekly US jobless claims data, which is denting investors’ expectations about the pace of the economic recovery. Westpac strategists wrote,

“The U.S. economy will outperform most thanks to fiscal stimulus and faster vaccine deployment, but ongoing reflationary fiscal and monetary policy will leave DXY on a sustained medium-term bear trend.”

This week, as we reported, the Bank of Japan has been signaling its readiness to take interest rates deeper into the negative territory. European Central Bank is also planning to keep the fiscal spending going in 2022.

Federal Reserve Chairman, Jerome Powell, also said on Wednesday that continued aggressive policy support is needed to fix the issues like the dour state of the US employment. Powell said in a speech to the Economic Club of New York,

“Despite the surprising speed of recovery early on, we are still very far from a strong labor market whose benefits are broadly shared.”

The Fed has signaled that it expects to hold rates near zero at least through 2023, and Powell repeated that the central bank’s $120 billion monthly paces of bond purchases commitment would also continue until “substantial further progress” is recorded on employment and inflation.

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Author: AnTy

Bitcoin’s Bull Run Breaks Coinbase; Exposing Possible Issues Ahead of The Public Offering

Bitcoin’s Bull Run Breaks Coinbase; Exposing Possible Issues Ahead of The Public Offering

With Bitcoin ripping through milestones basically every week, investors are flooding the market, and activities are going through the roof. However, exchanges and trading platforms face the problem of sustaining their services with this influx of activities. Much like they did during 2017’s bullrun.

Activity Influx Downs Exchanges

Yesterday, top crypto exchange Coinbase reported that it experienced connectivity issues on its retail exchange and Coinbase Pro trading service.

In a tweet, the Silicon Valley firm apologized for the service outages on its mobile and web apps, adding that it worked on getting things back to normal.

The exchange provided an update a few hours later, confirming that operations had resumed. Of course, that is cold comfort for traders who have lost profit opportunities as Bitcoin BTC 2.83% Bitcoin / USD BTCUSD $ 40,843.19
$1,155.86 2.83%
Volume 86.71 b Change $1,155.86 Open $40,843.19 Circulating 18.59 m Market Cap 759.47 b
4 h Bitcoin’s Bull Run Breaks Coinbase; Exposing Possible Issues Ahead of The Public Offering 5 h Wrapped Monero (wXMR) Goes Live On Ethereum Extending DeFi Capabilities To Holders 5 h Gold Is Trashed As USD Regains Strength; Will Bitcoin Hold Onto its Gains?
made a historic push past $40,000.

In such a market rally, arbitrage and profit opportunities come and go in a flash. Exchanges that are unable to stay functional risk losing customers as efficiency now drives the market.

Coinbase isn’t alone in this problem. Kraken, another top exchange and trading platform, told customers on its website that response times on its platform were slower than usual, and its application programming interface (API) was operating sub-optimally. Some clients also claimed to have difficulties connecting to the exchange’s site and mobile apps.

Like Coinbase, Kraken’s issue stemmed from heavy traffic. The same can be said with Binance, Bitfinex and OKEx. The exchange explained that it saw an unexpected hike in trading and transaction volumes, leading to server outages. Hours later, the exchange’s service came back up.

The problem with outages isn’t entirely new for crypto exchanges. With each milestone that Bitcoin reaches, many trading platforms and exchanges have had issues dealing with the increased traffic. For Coinbase, however, this problem is quite a common one.

Last June, the exchange witnessed a 400 percent surge in trading activity as Bitcoin broke past $10,000 for the first time in months. Trading was halted once more in September when Bitcoin hit $12,000.

Time for Coinbase to Sit Up

Issues like these would undoubtedly hamper the company’s standing in the industry, and they couldn’t come at a worse time for it. Last month, Coinbase confirmed that it had sent draft legislation for an Initial Public Offering (IPO) to the Securities and Exchange Commission (SEC). The Form s-1 is a prerequisite for a public offering, and it solidifies rumors that the Silicon Valley firm has been working towards such a move for months now.

While analysts believe that Coinbase could be valued as high as $28 billion, service outages could hamper its plans and operations post-offering.

Robinhood, a crypto-friendly trading app, is rumored to be on the cusp of a public offering. However, with a history of service interruptions that marred its operations in 2020, the company decided to pause its expansion. This isn’t a line Coinbase would like to toe.

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Author: Jimmy Aki

Bitcoin’s Rising Popularity Not an ‘Existential Threat’ to Gold’s Last Resort Status

Amidst the wild bull rally of 2020, several mainstream firms have commented on Bitcoin’s ability to outdo gold in the long term. In its recent report, JPMorgan also said that if Bitcoin continues to see the institutional adoption it is seeing, which has just “begun,” gold can “suffer” over the coming years.

However, according to Goldman Sachs Group, Bitcoin and gold can coexist despite the largest digital currency pinching some demand from the traditional safe haven asset. The bank said in a note,

“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice.”

While the banking giant noted that there’d been some substitution, “we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort,” it added.

As we reported, Bitcoin flows have been increasing massively thanks to the cryptocurrency’s more than 210% rally this year. Meanwhile, the world’s largest gold ETF recorded the most significant outflow last month has not recorded any inflows. Goldman said,

“We do not see evidence that Bitcoin’s rally is cannibalizing gold’s bull market and believe the two can coexist.”

Dan Tapiero, co-founder-10T Holdings, a supporter of both Bitcoin and gold, agrees with Goldman Sachs and that there are not enough stores of value available for investors. He said,

“Non-financial market people do not understand that we have an overall SHORTAGE of stores of value available in the markets.”

“GOLD not losing its SOV premium any time soon, unlikely in my LIFETIME.”

According to Goldman, wealthy and institutional investors avoid digital assets due to “transparency issues,” and “speculative retail investment causes Bitcoin to act as an excessively risky asset.”

According to Jeff Currie, head of commodities research at Goldman Sachs, “Bitcoin is the retail inflation hedge.”

In an interview with Bloomberg, Currie said it is the copper chart that looks “similar” to Bitcoin, and what they have in common is they both are “risk-on growth proxies.”

He further added that gold remains a “defensive asset” and “there’s really no evidence” that Bitcoin hasn’t stolen demand from the precious metal.

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Author: AnTy