WallStreetBets Investors Are Coming to the Conclusion that ‘Bitcoin is the Way to Beat Wall Street’

WallStreetBets Investors Are Coming to the Conclusion that ‘Bitcoin is the Way to Beat Wall Street’

After all that occurred last week between Wall Street Bets and Robinhood, the retail traders who make up what’s been described by some supporters like Reddit founder as “revolution” recognize the need for decentralization.

“You can’t beat Wall Street using Wall Street. Switch to Bitcoin and watch the powerful become powerless,” tweeted WSBChairman to his more than 949k followers on Twitter.

This is not the first time that a crypto-friendly tweet came from WSBChairman. On Monday, the Twitter handle posted about Bitcoin being the “only way to truly stick it to Wall Street.”

“The era of cryptocurrency has arrived,” he tweeted the very same day only to add in a subsequent tweet, “Cryptocurrency has never had a better argument for its use.”

Interestingly, unlike Wall Street, where a few powerful people hold the majority of the stakes, in the world of Bitcoin, it’s the smallest participants that hold less than 1-10 BTC, that are estimated to have increased by 130% since 2017 bull market, as per Glassnode data.

The second smallest participants, those holding between 10% to 100%, grew by 14%, while the large entities, those with 100-1k BTC and 1k-over 5k, have decreased by -3% and -7%, respectively.

This movement is also seeing former President of TD Ameritrade, Asif Hirji calling out for a “decentralized stock exchange.”

Muck like Hirji, billionaire Mark Cuban also feels stocks will make their way on the blockchain in the future “and that will make the markets much more efficient, transparent and available to the small investor,” he wrote during his Reddit AMA session on Tuesday. He also said: “I think blockchain is the future, I don’t know if it’s decentralized or private.”

The owner of Dallas Mavericks, who has started seeing the potential in the cryptocurrencies and NFTs, also said he sees DeFi and non-fungible tokens having the potential to “explode in the next 10 years.” But “there will be a lot of ups and downs along the way,” he added.

He also revealed that he owns DeFi tokens AAVE and Sushi and Eth, BTC, and LTC.

As we reported, the cryptocurrency market has been capitalizing on this opportunity as crypto exchanges like FTX and Bitfinex listed the popular stocks among the retail traders. FTX’s crypto tracking app Blockfolio also jumped in and announced crypto and stock trading.

Crypto trading platforms already started to register record user sign-ups, traffic, and volume amidst the “marketing ad for Decentralization.”

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Author: AnTy

“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor

“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor

Much like young women “became very depressed by sitting in their rooms looking at Instagram,” said Scott Galloway, who also feels these men staring at their phone watching BTC and AMC price are “not having (enough) sex.”

On one side, we have the likes of the billionaire owner of Dallas Maverick Mark Cuban and Social Capital CEO Chamath Palihapitiya, who are calling what transpired around heavily shorted stocks like Gamestop and AMC as a change in the financial system.

On the other side, we have Scott Galloway, a professor of marketing at NYU Stern, according to whom the matter is much simpler — these retail investors on Reddit are actually “young men not having (enough) sex,” he said. It’s just not related to sex alone, either; according to Galloway,

“We are setting ourselves up similar to how there’s a ton of young women out there who became very depressed by sitting in their rooms looking at Instagram, self-cutting and self-harm skyrocket.”

He goes on to say that this will result in an “explosion” of depression in young males only to add further, “it is going to be reverse engineered to apps that convince you, you’re part of a movement or physically addict you to your phone.”

The Biggest Loss of Capital

Galloway started with his theory on Twitter last week when he explained how:

“Arm young men, in a basement, not at work, not having sex, not forming a connection, with an RH account, a phone, and stimulus, and you have the perfect storm of volatility as they wage war against established players while squeezing the dopa bag, harder and harder.”

He further pushed his theory on MSNBC when he said the “biggest loss of capital” is the loss of human capital of “young men sitting and staring at their phone and watching the price of Bitcoin, or the price of AMC.”

Galloway basically wants these young men to form relationships with people rather than be “the person on the other side of the trade.”

Galloway, who has been around the markets for two decades, went on with, “the arc of the market is jagged and irrational, but it typically bends towards reattaching to the fundamentals,” which puts these stocks “much lower,” so “be prepared to lose 80% to 90% of it.”

“The greatest loss in capital here is from young men who are more prone to gambling addiction, who don’t understand the markets.”

It’s nothing new, he said, noting that hedge funds haven’t played out already. Just an age-old contract of “old men” to “stick it to the man and have young people attack the castle so they can get wealthier.”

Galloway is not alone in this; such attempts have been made by wealthier investors since last week. However, this time, the losses were felt by international investors as well as hedge fund Melvin Capital lost 50% of its investment.

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Author: AnTy

The UNI Airdrop is Now Worth Over $7k as Google Searches Rise Up & Volume Hits New Highs

The traditional investors are coming to the world of decentralization. Uniswap allows users to front-run the rest of the world amidst the ongoing censoring.

UNI, the 13th largest cryptocurrency by market cap of $5.14 billion, is the largest DeFi token. The digital asset that enjoyed an uptrend throughout last week to reach nearly $20 is up 275% YTD.

These gains made the UNI airdrop currently worth a whopping more than $7,000. The popular decentralized exchange (DEX) Uniswap launched its governance token UNI in September, less than five months back. UNI tokens were airdropped to all of the users who provided liquidity to the platform before Sept. 1st.

UNI tokens’ worth is increasing as more and more users are using the decentralized exchange, which gained momentum after the Robinhood fiasco. The zero-commission broker halted the trading of popular stocks like GME and has now limited the number of shares that can be purchased. The popular retail app also halted crypto trading last week.

This pushed the traditional investors to the world of decentralized finance (DeFi).

Uniswap is actually allowing traders to front-run the rest of the world as it is open for trading 24/7/365, as is the entire crypto space.

This can be seen in the Google search volumes for “Uniswap,” which is now reaching their DeFi summer levels. The search volumes gained momentum last week just as the WallStreetBets vs. Wall Street battle intensified with trading platforms and social media platforms limited the retail traders’ scope.

Google Trends for the search term “Uniswap”

Source: Google Trends “Uniswap”

Another indicator showing an increased interest in using Uniswap can be seen in its volumes.

Interestingly, throughout January, the decentralized exchange (DEX) has been recording higher than ever volumes. All four weeks of Jan. saw $5.5 billion of volume, as per Uniswap.info.

When it comes to daily volume, it kept above $700 million, and several times it went over $1 billion.

According to Dune Analytics, Uniswap did over $25 billion in volume in January, while its competitor Sushiswap did $12.17 billion, and $6.7 billion was recorded by Curve.

The total DEX volume recorded in the last 30 days was $54 billion, with Uniswap accounting for 48.4% of the share, followed by SushiSwap’s 23.5% and Curve’s 9.6%.

“The writing is on the wall. The majority of non-fiat trading will end up on decentralized, borderless, uncensorable venues,” commented Erik Voorhees, the CEO of the self-custody crypto platform ShapeShift, which is integrating with decentralized protocols and apps.

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Author: AnTy

As Adoption Sets In, 60% of Crypto Investors Are Storing Funds On Exchanges: Binance

As Adoption Sets In, 60% of Crypto Investors Are Storing Funds On Exchanges: Binance

Binance’s latest report shows that most crypto owners are hodlers. The prevalence of Bitcoin hodlers could also lead to a liquidity crunch as traders’ demand rises.

The cryptocurrency market is getting more diverse. Many have had different preferences and reasons to stay in the market, with different facets and sub-industries available.

In a new report, top crypto exchange Binance shared details of the market’s status and how investors see digital assets in general.

Hodl, Hodl, Hodl

This week, the top exchange shared its 2021 Global Crypto User Index, a report showing crypto users’ perception of digital assets across the board. The report outlined a survey conducted between September 15 and October 25, 2020. Binance took responses from 61,000 crypto users across 178 countries and regions.

Most prominent in the report is the distribution of crypto users by reason. As Binance noted, the vast majority of crypto users are “hodlers.” Hodlers is a crypto term used to describe investors who purchase digital assets to keep long term. The poll shows that 39 percent of respondents are hodlers, followed by 28 percent who claimed to be keeping their cryptos to buy other cryptos.

22 percent of respondents said that they primarily use their digital assets for lending and staking, the latter of which has been prevalent in the past year. Only 11 percent of investors claimed that they use their cryptocurrencies for payments, showing that the asset class has yet to fulfill its potential as a viable payment method.

Solidifying Fears of a Liquidity Crisis

The prevalence of hodlers in the industry shows that a lot of investors are using their assets as a store of value. While many in the traditional finance space have criticized digital assets for their volatility, assets like Bitcoin have consistently delivered higher returns than their competitors.

However, having more hodlers in the industry also reinforces the fears of a possible liquidity crisis. Day traders have been left to fend for themselves, with Bitcoin in short supply. Earlier this month, Glassnode reported that 78 percent of the Bitcoin available in circulation is illiquid, with only 4.2 million tokens changing hands. Mining rig manufacturers are also working extra to push out new hardware to mine new bitcoins.

Last week, Reuters reported that mining companies had been running out of inventory as miners are working double-time to meet the increasing demand for Bitcoin. Bitmain, the industry’s top mining rig manufacturer, has maxed its production capacity and won’t have any inventory until August.

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Author: Jimmy Aki

Fireblocks Introduces Crypto Staking for Institutional Investors

Fireblocks Introduces Crypto Staking for Institutional Investors; Ethereum, Tezos and Polkadot

Fireblocks wants to help institutional investors access crypto staking opportunities. The company’s institutional focus comes at a time when interest in crypto is high.

Digital asset security platform Fireblocks has been working over the past year to improve institutional access to cryptocurrencies. Following the success in decentralized finance (DeFi) and more, the company is now turning its sights to the burgeoning staking scene.

Staking is for Everyone

Fireblocks plans to support hosted proof-of-stake (PoS) services for Ethereum 2.0, Tezos, and Polkadot, as it opens up token staking to its institutional client base.

Fireblocks has over 165 clients, which includes heavyweight crypto lenders Salt, Celsius, and UK-based Fintech firm Revolut. The crypto custodian is partnering with popular staking providers Staked and Blockdaemon to pull this off.

Company chief executive Michael Shaulov confirmed that the move was largely due to increased investor demand.

As he pointed out, most of Fireblock’s customers hold Bitcoin, while a small minority hold altcoins. That small minority is split in assets such as XTZ, DOT, and ETH, which total about $1 billion.

Institutional investors with idle funds, should expect between 5 and 15 percent in yields annually if they lock up their funds on the platform.

Fireblocks’ customers will maintain custody of their funds in their MPC-based wallets. From there, they can monitor their performance on Staked and Blockdaemon.

Data from Staking Rewards shows that the two are ranked first and sixth, respectively, on the list of crypto assets by staked value. With Polkadot staking in particularly high demand, Fireblocks appears to be in an excellent position to land its desired institutional clients.

Staking on Ethereum 2.0 is also on the rise. Industry news sources recently confirmed that Ethereum 2.0 staking on top crypto exchange Kraken had surpassed the billion-dollar mark.

Fireblocks’ Encompassing Institutional Crypto Play

Fireblocks’ cryptocurrency staking service is the latest in a flurry of efforts to drive institutional crypto investment.

Last June, the firm created an open network called Secure Asset Transfer Network, for institutions to connect, trade, settle and transfer crypto on-chain. The network launched with over 55 institutions and 26 exchanges. Participants included brokers, liquidity providers, asset custodians, and market makers. Shaulov said at the time,

“The launch of the Fireblocks Network makes it possible for users to store and transfer assets across the entire institutional ecosystem and removes the need for any middle-men. We’re redefining on-chain settlement processes by adding an unprecedented layer of security and efficiency, preserving the decentralized nature of blockchain, and allowing it to operate at the institutional level.”

The Asset Transfer Network was built on its multiparty computational technology (MCT). The Network also provides access to easy on-chain transfers while streamlining post-trade operations and settlements.

Fireblocks also has interests in the decentralized finance (DeFi) space. Last March, the company partnered with leading lending protocol Compound to allow institutional investors to access DeFi opportunities. Thanks to the integration, Fireblocks customers can now earn interest via Compound’s lending protocol.

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Author: Jimmy Aki

New Zealand’s Financial Markets Authority Warns Crypto Investors to Watch Out for Scams

New Zealand’s Financial Markets Authority Warns Crypto Investors to Watch Out for Scams

New Zealand’s Financial Markets Authority (FMA) has become the latest financial watchdog to issue cryptocurrency risk warnings to crypto holders and investors.

The warning is coming as the crypto market is witnessing a gradual contraction in market prices. The financial watchdog has warned citizens dealing with crypto assets to be wary of the risks since digital assets are not regulated in the country. FMA stated,

“Cryptocurrencies are not regulated in New Zealand and are often exploited by scammers and hackers.”

A rise in crypto scams

Based on NZ Herald’s report, the FMA has expressed worries about the increasing cryptocurrency scams in New Zealand, with several unregulated digital exchanges promising unusually high returns that are unrealistic.

This latest announcement from the FMA is coming barely 24 hours after the UK’s Financial Conduct Authority (FCA) issued a warning about the risk of cryptocurrency investments in the country.

Highly volatile market

The watchdog added that New Zealanders looking to invest in Bitcoin and cryptocurrencies should be very careful because they are highly volatile and risky investment vehicles.

The FMA said it shares the FCA concerns, and crypto holders and investors should be prepared to lose all their invested funds if they continue in the highly volatile crypto market.

Many cryptocurrency exchanges based overseas are not regulated, as they carry out their business exclusively online. As a result, investors of such exchanges are at high risk of losing their entire investments if something goes wrong in the market. The FMA noted that there is no assurance that their funds will be safe since it’s difficult to find out who is selling, buying, exchanging, or offering the cryptocurrencies.

In the past year, the crypto market has risen substantially, as almost all the digital assets added considerable gains. Now the overall market cap of crypto assets stands at over $1 trillion, with Bitcoin having about 70% of the share.

In 2020, the world’s most valuable cryptocurrency rose by more than 300%. But with the rise in the value of cryptocurrencies, more people became interested in the crypto market. As a result, crypto scams more than doubled as well.

Elliptic, a crypto assets risk management provider, reported recently that threat actors are hiding stolen Bitcoin in privacy wallets. Some criminals are also using pictures and details of famous people to deceive crypto holders on fake news websites.

The threat actors have used scam Bitcoin ads featuring unauthorized pictures of celebrities and personalities like Waleed Aly, Chris Hemsworth, and Andrew Forest to lure their victims to part ways with their cryptocurrencies. The report revealed that these cybercrimes are linked to threat groups from Moscow.

Verifying registration status of the exchange

New Zealand’s watchdog has also issued an advisory to crypto investors who deal with crypto exchanges. According to the regulator, users should verify whether the exchange holds their New Zealand dollars in a trust account. They should also ensure that the exchange is dully registered with the Financial Service Providers Register (FSPR), which is required in the case of a dispute resolution.

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Author: Ali Raza

Grayscale Reopens Deposits for New Investors In Its Crypto Trusts; Excludes Ethereum & XRP

Grayscale Reopens Deposits for New Investors In Its Crypto Trusts; Excludes Ethereum & XRP

Grayscale’s Bitcoin Investment Trust and Digital Large Cap Fund Trust are now open for investments from new customers.

Grayscale Investments is gearing up for a healthy 2021 as it finally reopens most of its investment trusts and allows deposits.

According to an update on the company’s website, clients can now deposit funds into its Bitcoin Investment Trust and the Digital Large Cap Fund Trust.

Grayscale trusts

All Systems Go

As the update shows, the Grayscale Ether Trust is still unavailable, and not everyone on Crypto Twitter is taking that very well. However, that could change any moment for now considering the interest in Ether. The company’s XRP Investment Trust remains unavailable, which is not surprising considering the legal battle Ripple Labs has with the SEC.

Grayscale closed all of its investment trusts last month, as reported on  Twitter. A company spokesperson later confirmed that the move was due to a mandatory lock-up period for selling recently purchased shares of its Bitcoin Investment Fund.

Now that investments are opening up again, Grayscale appears set to continue with the momentum it held in 2020. Buoyed by increased institutional investment and the Bitcoin rise, Grayscale was able to solidify its place as the crypto industry’s top asset management firm. It currently holds $24.5 billion in assets under management and controls three percent of Bitcoin tokens in circulation.

Markets Open as Investors Eye 2021

The firm is also seeing a significant opportunity for growth in 2021. Last Thursday, company CEO Michael Sonnenshein told Bloomberg that Grayscale had seen a considerable increase in activity and commitments from pension funds and endowments.

With institutional investment hopefully increasing, Grayscale will be looking to benefit and add to its vast portfolio. The development could also bode well for the crypto market at large. Many believe that institutions were the driving force behind last year’s crypto rally, and a continuation of that trend should improve confidence in the marker’s long-term viability.

Retail investors also appear to be making significant moves. Yesterday, Alex Saunders, an Australian crypto-focused journalist, reported that crypto trading activity on PayPal had reached a new all-time high of $242 million. As the journalist put it, this surge shows an increased interest in the crypto space from retail traders.

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Author: Jimmy Aki

Bitcoin Hits a New All-Time Record High Against the Traditional Safe Haven Gold

The Bitcoin market is working on broadening the universe of its investors even more.

On New Year’s Day, Bitcoin made yet another all-high against USD at about $29,620.

But in 2020, USD and several other fiat currencies aren’t the only ones against BTC which made new highs. Even against gold, the digital asset hit new highs.

Bitcoin made a new all-time record high against gold at the end of the year.

2020 has been a roller coaster ride for the world and the asset classes as we saw deep retracement in March. But ever since then, every other asset class has jumped to new highs.

Bitcoin, however, was the clear winner of the year, with 318% gains.

While oil still remains deep in red, -22% returns in 2020, other asset classes rallied but are nowhere even close to Bitcoin’s levels. Private assets were up 9% while equities recorded a 15% uptrend in the year, cash 16%, and bonds 20%.

The precious metal had only 28% year-to-date performance after breaking the ATH in August, which was last seen in 2011. After the consolidation for the last nearly four months, the bullion managed to rise back to $1,900 to mark the end of the year.

Bitcoin, on the other hand, had a wild year. Up 675% from the March lows, and in the past fortnight, it broke several levels in succession without any meaningful pullbacks ever since the uptrend started in Sept.

Broaden the Universe Some More

This year, things are going to get even more interesting as the rate at which institutions started to trickle in gained speed towards the end of the year will flood in in 2021.

Another exciting and bullish thing is the Bitcoin ETF. After getting rejected every single time over the past couple of years, this week VanEck filed another proposal for a Bitcoin exchange-traded fund (ETF) with the SEC, and this one will also physically hold BTC.

A change in SEC leadership, Jay Clayton not being a chairman anymore, has the cryptocurrency market’s hopes high of approval this time. Also, with all the institutions, big names, corporates, insurance companies, and high net worth individuals jumping on Bitcoin, the odds of regulatory approval have improved.

“All indications from the SEC are that a bitcoin ETF still faces an uphill battle,” said Nate Geraci, president of the ETF Store, an investment advisory firm.

“That VanEck has the confidence to file for a Bitcoin ETF might indicate some shifting viewpoints within the SEC. Clearly, a key to watch as this drama continues unfolding is who President Biden taps as SEC chair.”

In the case of the precious metal, the launch of the gold ETF had a very significant impact on the gold market. The first gold-backed ETF in the US was launched in Nov. 2004. The largest gold ETF, GLD, is one of the biggest funds in terms of the value of the assets it manages.

And the same is expected to happen with the digital gold – Bitcoin, once its ETF gets approved.

An ETF “could be taken as bullish for Bitcoin because it does broaden the universe of investors who could be aware of Bitcoin,” said Everett Millman, a finance expert with Gainesville Coins.

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Author: AnTy

Bitcoin’s Mainstream Media Mentions in December Beats Gold

A weaker dollar, investors betting on more US stimulus, and Britain and the EU appearing to be close to clinching a trade deal is pushing the markets higher.

Trading around $1,875, up from the $1,760 bottom at the end of November, gold is enjoying an uptrend on the back of a weaker dollar, which is currently hovering around 90.

Also, investors are betting on more US stimulus, as President Donald Trump urges for $2,000 stimulus checks, calling the $600 direct payment a “disgrace,” which has found support from House Speaker Nancy Pelosi and other Democrats as well. Margaret Yang, a strategist at DailyFX said,

“Gold prices are riding a near-term bull trend, propelled by a weaker dollar and a new strain of coronavirus that could derail the (economic) recovery, hinting at further stimulus ahead.”

However, precious metals’ 23% year-to-date performance is nothing on digital gold’s more than 220% gains this year.

Bitcoin is simply crushing in 4Q20, having made a new all-time high at $24,300 this past weekend and still holding on strong to its $23k level.

Besides money printing, the reports of Britain and the European Union appearing to be close to clinching a trade deal are pushing the US dollar down and lifting the pound and euro up. Jeffrey Halley, a senior market analyst at OANDA, said in a note,

“The overnight rally leaves gold parked in the middle of its one-week range, lacking the drivers and momentum to attempt a directional move either way.”

Gold’s ranging and bitcoin’s explosion has pushed people to BTC which continues to enjoy a strong uptrend, thanks to all the institutional demand.

As we reported, Christopher Wood, global head of equity strategy at Jefferies cut down the gold exposure by a whopping 50%, for the first time in several years, in favor of BTC.

Interestingly not just in terms of price performance, but Bitcoin has also been seeing more mentions than gold in mainstream media financial publications in the last month of 2020. BTC mainstream media mentions are up more than 1,000% since January, as per The Tie.

image1

However, much like some skeptics, Shark Tank’s Kevin O’Leary sees gold as a hedge against inflation and says it won’t be replaced by Bitcoin anytime soon. But the chairman of O’Shares ETFs said that the digitization of America is here to stay.

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Author: AnTy

$50,000 Per BTC ‘Is A Reasonable Price Target Even For Q1 To Q2 Of Next Year’

The appetite for Bitcoin among institutional investors continues to grow at a fast pace.

Every week, a new company or public figure announces its investment in Bitcoin or the digital assets’ potential as a store of value, much like gold.

This appetite can be seen with the Bitwise’s Crypto Index Fund — with 75% BTC, 13% Ethereum, and 12% other crypto assets weightage — which surged more than 70% in a couple of days of its launch, that too while the digital assets slipped by a few percentages.

But over the weekend, the crypto market took over as BTC went from $17,600 earlier in the week to $19,500 on Sunday.

Today, BTC/USD is trading around $19,150, down 0.09% with $2.24 billion in volume.

Ultimately Bullish

Still, the largest cryptocurrency is up 166% YTD, and this Bitcoin rally is “fundamentally sound,” according to Antoni Trenchev, co-founder of Nexo.

According to him, any dips are just Christmas coming early — “a great entry point for you to purchase some Bitcoin just before liftoff,” said Trenchev in a recent interview with Bloomberg.

These price drops, according to him, are profit-taking and the rumor about last-minute legislation from the Trump administration, which according to him are just going to be more anti-money laundering and know-your-customer policies “just like in the banking sector.”

However, the new legislation will ultimately be a “very valid bridge bullish sign for Bitcoin, and that will set the stage for the next leg up,” he said.

The regulatory threat has been taking the edge off the market, and Trenchev is extremely bullish on BTC price.

Nowhere Near the Top

According to Trenchev, his predicted a $50,000 BTC target price by the end of the year “is a reasonable price target even for Q1 to Q2 of next year.”

The reason for his bullishness is simple, since the summer, the market has seen retail, institutional investors, high net worth individuals, and family offices positioning themselves and purchasing Bitcoin and other cryptos. And this is

“very different from what we had 2017 and 2018 where this was a really retail-driven frenzy where everybody was maxing out on leverage and credits to buy bitcoin.

This has not yet happened.”

Although retail has come, it is nowhere near what we saw in 2017, which makes this rally “fundamentally much more sound,” he added.

In the macro scheme of things, all the stimulus unleashed by the central banks and government in 2020 will continue moving into next year. As we reported last week, the ECB has already announced its big numbers, and the US might reach a compromise on the relief package soon.

Morgan Stanley chief rates strategist also noted that G10 central banks would inject another US$2.8 trillion of liquidity next year – just in their government bond purchases.

This is to be seen if and when all this liquidity will find its way into the financial and Bitcoin market. We are already seeing some rotation out of gold and into Bitcoin this year, thanks to the latter’s digital gold narrative.

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Author: AnTy