Shift to Risk-on: Bitcoin Is Up 12% Already in Uptober Amidst Stock Market Weakness

Starting the month around $44,000, Bitcoin price went as high as $49,300 late on Sunday. As of writing, BTC/USD is trading around $47,650 with $26 billion in trading volume.

Last week Friday’s uptrend in Bitcoin’s price was the biggest daily gain since July, which was also seen in other crypto assets as well. After rising as high as $3,490, Ether is currently around $3,330.

In the past week, the biggest gainers include AXS, leading the gains with 137%, then OMG 100%, OHM 52%, QTUM 48%, XTZ 38%, OKB 38%, dYdX 37%, and LUNA 35%. Some other decent gainers in the past 24 hours include ALGO 14%, SHIB 9%, ENJ 8.5%, and HOT 7%.

The total market cap is now back around $2.2 trillion.

The fact that Bitcoin is holding on to the 12% spike in the price of the leading cryptocurrency may have significantly changed its technical setup, said Tom Lee’s Fundstrat. According to strategists at Fundstrat, the breakout “looks important technically.”

“Prices have eclipsed weekly highs as well as one-month downtrends,” they said. While trends turned negative last month, “Friday’s move is a big positive in helping to resolve this consolidation.”

So, it makes sense that Fundstrat is bullish and looking upward for its next key levels. “The first upside target lies at September highs at $52,956, then $64,895,” the strategists said.

The Micro and Macro Effect

This latest increase in Bitcoin’s price may be fueled by a short squeeze in part of the market, as per JST Capital co-founder Todd Morakis and Jonathan Cheesman, head of OTC and institutional sales at crypto derivatives exchange FTX.

According to Joseph Edwards, Enigma Securities’ head of research, the spike in volume on crypto derivatives exchange was a possible driver for the moves. In the futures market, Bitcoin had a net short position of -883, the smallest since mid-August.

After the brutal September — which has been historically expected and the value of Bitcoin dropped 7.2% — amid concern about increasing regulatory pressure in China and the U.S, October is looking more and more like Uptober.

Technically, “the rally has also preserved positive intermediate-term momentum” through the moving average convergence/divergence indicator, said Fairlead Strategies LLC’s Katie Stockton in a note. But at the same time, she sees a counter-trend signal coming from another technical framework, DeMark indicators, that could prevent follow-through on the move.

“We would feel more comfortable moving to a bullish short-term bias once this signal is invalidated — which in our work would require two closes above $48,800,” she said.

After trading sideways for weeks, the market was particularly excited last week, with Federal Reserve Jerome Powell saying they have no intention to ban cryptocurrencies.

This “combined with weakness in the stock market, and the month of October being a typically bullish time for crypto markets, could signal a shift to risk-on trading in crypto markets for the next several weeks, as investors seek returns in non-traditional assets,” said Leah Wald, chief executive of crypto asset manager Valkyrie Investments.

However, the dollar has been showing strength, hitting a new 2021 high at 94.5 on Sept 30 and currently at 93.84. USD is headed for its best week since June, which could spell some trouble for crypto prices.

Overall, seasonality and positive market fundamentals see the crypto market primed for substantial gains in Q4, which has often seen strong performances.

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Author: AnTy

Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market

September is turning out to be a historically accurate month so far.

More than half of the month is gone, and Bitcoin’s price hasn’t done anything but either drop or trade sideways.

After starting the month above $47,000, the price of bitcoin went on to hit $53,000 before the first week of September was over. But from there, we only dropped lower to as low as $42,000 before even Sept. 8 was here.

Since then, not much has occurred with Bitcoin, keeping between $43k and $49k.

Like Bitcoin, Ether rallied from about $3,400 to just past $4k only to drop to $3k.

As of writing, BTC/USD is trading around $44,500 and Ether $3,100, with the total market cap also back around $2 trillion.

As we reported earlier this month, September has historically seen an average return of negative 7.8%. And currently, Bitcoin is about 4.2% down from where it started the month and Ether about 7.3%.

While the majority of the cryptocurrencies are down, some altcoins did outperform in the first half of the month, such as Solana, Avalanche, and Cosmos. SOL -13.93% Solana / USD SOLUSD $ 132.02
-$18.39-13.93%
Volume 5.61 b Change -$18.39 Open $132.02 Circulating 296.97 m Market Cap 39.21 b
5 h Bitcoin Price Flash Crashes to $5,400 on Solana-based Oracle Pyth Network Causing Liquidations 9 h JPMorgan says Ether Is Overvalued at Current Prices and DeFi’s Institutional Adoption Is Above 60% 11 h Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market
AVAX -19.02% Avalanche / USD AVAXUSD $ 57.01
-$10.84-19.02%
Volume 2.35 b Change -$10.84 Open $57.01 Circulating 220.29 m Market Cap 12.56 b
10 h Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 11 h Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero
ATOM -23.10% Cosmos / USD ATOMUSD $ 33.88
-$7.83-23.10%
Volume 3.47 b Change -$7.83 Open $33.88 Circulating 221.69 m Market Cap 7.51 b
11 h Bitcoin, Crypto, and Stocks Dip While USD Rips as Money Flows into the Private Market 1 w More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits 2 w “Moon” Is Not the Limit for Bitcoin, says Chainalysis CEO But be Wary of Downside Risk & Level of Retail Mania

Dollar Is Showing The Strength

The crypto market, however, is not alone in seeing losses. S&P 500 has also been on a decline this month, having dropped 2.5% after hitting a new all-time high right at the beginning of September at 4545.85.

Tech-heavy Nasdaq, which also hit a new peak this month, has been down for less than a fortnight, down just over 2.3%.

As for the Dow Jones Average Index, it has slipped 3% since reaching a new high in mid-August.

While the stock and crypto market are both going down, the USD Index has been on an uptrend since last week to hit 93.432 on Monday, the second-highest level this year. The greenback aims for a 2021 high of 93.74, which it hit on August 20 and before that seen in early November 2020.

As the dollar shows strength, gold isn’t faring any better either. The bullion is trading at $1,758.71 per ounce, on a decline since early August 2020 ATH of $2,075 per ounce. Between March and May, the precious metal did get some relief rally of 14.3% above $1,900 but is now back down.

We Don’t Need Institutions Anymore

Yet another weekend of sell-off action saw $818.55 million of liquidations, with 40.86% of it happening on Bybit and 19.2% on Binance.

Due to this, open interest on Bitcoin futures dropped $1.34 billion in just two days, and Ether’s slid $360 million in four days.

While public markets are not doing well, showing a lack of institutional capital inflow, private markets see exactly the opposite.

In the month of August, the crypto and blockchain sector raised nearly $2.1 billion in private investment across over 100 rounds. The highest rounds at 65 were recorded in Seed and Pre-Series A but amassed the lowest amount at $190.6 million. The later stage gained the highest amount at $663 million but the lowest rounds, just 4.

“The overall funding environment for crypto this year – the depth, breadth, quality and size – is the single biggest factor that would lead you to believe the “four year cycle” that has historically driven crypto is likely coming to an end in real time,” commented Travis Kling who’s running Ikigai Fund, on the amount of capital being invested in the crypto infrastructure.

According to Three Body Capital, with crypto here to stay as people adopt it as money, crypto no longer needs institutional validation or capital as it is getting both from people, who are the ones that matter.

“TradFi institutions remain hamstrung by the very rules and regulations they put in place to cement their prominence,” it noted.

“We think crypto’s breakthrough moment is now in progress, finding product-market fit with the average person on the street, not in DeFi or trading, but in ‘normie’ things like gaming and art.”

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Author: AnTy

Bitcoin Price Trading Analysis July 1: BTC Still In Accumulation But Potential for A Bullish Breakout

On the face of it, June may seem like it was an uneventful month for BTCUSD. The pair closed the month at $35,037, down 6 percent from the closing price of May.

Price action remained somewhat stagnant, and trading volume was modest compared to the first five months of this year. But this is what accumulation phases typically look like, rife with indecision at large for several weeks, if not a few months.

While the second quarter of this year turned out to be the worst in 2 and a half years since Q4 2018, there are reasons to suggest that, despite the sharp correction, we’re likely in a cooling-off period similar to mid-2013 and mid-2017 before resuming the second half of this post-halving bull cycle. It’s also worth noting that this negative quarter follows the first successive quarters of the price surge in excess of 100%, and BTCUSD is still up 15% YTD while Gold is down 7% YTD amidst fears of rampant inflation.

BTC_Quarterly

A 2-month long head and shoulders pattern dating back to March with the head formation coinciding with the 3.618 Fibonacci extension broke down in mid-May around the 2.618 extension, securing the target of $33,000 fairly quickly and finding support at the 1.618 extension. This first extension at $29,890 is critical for the pair to avoid revisiting the long-term R/S flip at $19,666.

BTC2

Contrary to what Michael Burry posted on Twitter, the entire formation with a neckline around $30,000 is not a head and shoulders pattern. There are several technical reasons to refute it, but two very fundamental – the head formation should not be more than 2/3rds higher than the shoulder formations measured from the neckline and, more importantly, the extension of the trend line preceding the left shoulder formation should cut across the reaction low preceding the right shoulder formation.

While being known for his notorious 2008 “big short” call when the impending catastrophe was arguably obvious, although not expressly acknowledged, to any fundamentalist in Wall Street, Burry has had more misses than hits in his career as a doom-monger or, as he styles himself, a Cassandra.

The Wyckoff accumulation phase identified in my previous analysis is still valid, only that we now have a W bottom spring with a bullish RSI divergence, pending a retest of the support lines. Should this hold, we may enter the final phase of this accumulation with a hash rate expected to return to the Bitcoin network after difficulty retarget in a couple of days. With difficulty set to adjust down by 25 to 30% for the next epoch, we should see a lot of hash power enticed to get back online.

BTC1

Much of the talk in June was regarding the dreaded death cross, and while it’s unlikely to have a long-term impact on the price, we’ve seen the price at which the death cross occurred turn out to be a level of strong resistance in the last couple of weeks. Fibonacci retracement levels with the current bottom of $31,597 correspond perfectly with previous support levels now potentially flipping to resistance, 200ma, and resistance lines within the Wyckoff trading range. This is typically seen as confirmation of price bottom.

BTC3

Looking at on-chain data from Glassnode, we can see that supply from miners has sharply gone down in recent weeks, which may also be a consequence of reduced hash rate, and accumulation addresses, which are long-term holder addresses, are on a sharp uptrend since mid-June when the price briefly dropped below $30,000.

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Market Summary

  • Key support levels – $33,000, $31.600
  • Key resistance levels – $36,000, $39,100
  • Market outlook – Accumulation with potential for a bullish breakout

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Author: Lamps T

Bitcoin’s Weekend Weakness: Yields Crash and Go Negative, OI Is Still Halved From Peak

While gold is getting crushed down 8.14% this month while the US dollar has soared to 92.4, aiming for a 2021 high of 93.43.

Right before the weekend, Bitcoin has dropped under $35,000 and is now aiming for $36,000.

Earlier this week, BTC’s price surged above $41,000, an increase of more than 30% from the previous week’s low of $30,000. But before even the week is over, the price has already lost 15.7% of its value.

Ever since the deep sell-off on May 19, the cryptocurrency has been trading sideways and remains in a crab market.

This week’s weakness came after the Federal Reserve started talking about tapering earlier than expected, with two hikes in interest rates coming in by 2023. Central bank turning hawkish has sent the prices in stocks crashing as well along with the yield on 10-year bonds.

The dollar is the only winner as it soared to 92.4, up from 89.5 late last month. 93.43 is greenback’s 2021 high set in late March.

Commodities are also getting crushed, with gold falling to $1,760 per ounce. The bullion is now down 8.14% this month after rallying 14.3% for two months straight in April and May.

For the past few months, we have been seeing the price of gold, the traditional store of value, and digital gold, bitcoin, moving in opposite directions. This actually started towards the end of 2020 when gold funds reported an outflow while the leading cryptocurrency saw increased interest from investors and inflows.

Bitcoin is basically gaining traction as the latest store of value and trying to capture precious metal’s market share.

This week, a German national weekly newspaper described bitcoin as “The Clever Gold.” One of the most popular news sources in the country, Die Zeit, said Bitcoin “is a new political movement of radical decentralization.”

In the meantime, the latest weakness in price has funding rates on Bitcoin perpetual contracts going negative on most of the cryptocurrency exchange with 0.01% the highest.

Back in February, 7-day APY went as high as just over 46% on Binance and above 128% on Bybit. In March, this spike again to 32% and 89% on Binance and Bybit respectively, and then 40.7% and 60.13% in April. As of writing, it is -0.06% on Bybit and -1.04% on Binance.

This is healthy for the market after experiencing high rates and yields for a long time. Spiking yields is actually a sign of lack of money, as they represent an “insane amount of leverage demand,” with billions of dollars sitting in quarterlies with *locked in* high annual rates, explained trade CL of eGirl Capital.

“When the most liquid interest rate market (huobi’s quarterlies) starts moving up aggressively as more open interest rush in, you can tell there’s no more money left on the sidelines because literally no one even had money left to even get the 30% or 40% for free.”

According to CL, Moreover, with yields on centralized exchanges already in negative, soon on-chain yields will be negative too, and “all defi protocol token holders will actually have to pay the protocol every year to continue bag holding their negative revenue bags.”

Meanwhile, open interest in the market has a long way to go, currently at just $12.61 billion, down from a $27.68 billion peak in mid-April. But the good thing is Grayscale Bitcoin Trust unlock is soon coming to an end. Discount on GBTC is currently around 14.44%, recovering from a 21.23% low last month, albeit slowly.

Amidst this, Michael Burry of “the Big Short” fame warned about losses “the size of countries” in the event of crypto and meme-stock declines.

“All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry wrote in now-deleted tweets.

“When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.”

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Author: AnTy

Ether Flippining Bitcoin a Real Possibility But What’s the Caveat

In less than a month, the price of ETH went from about $2,000 to $4,380.

This new ATH came while Bitcoin price chopped, which helped send ETH to nearly 0.081 BTC, a level not seen since May 2018.

ETH has been enjoying a massive run-up, finally catching up to Bitcoin’s late 2020 rally, and is currently moving towards becoming a half a trillion-dollar crypto asset.

In addition, it’s not just Bitcoin that has been seeing institutional adoption; Ethereum is attracting the attention just as much. Eth investment vehicles have been continuously seeing inflows, and several ETH ETFs are also trading on TSX. Reportedly, a good amount of institutional capital is sitting on the sidelines, waiting to enter ETH.

Furthermore, regular bitcoin futures on CME that were launched in Dec. 2017 have been lagging in volume over the past couple of months, only to hit $4 billion on Wednesday, for the first time since April 22nd, as per Skew. Ether futures, meanwhile, in a matter of three months, have exploded, with volume surpassing over $2 billion on May 13 on CME, up from just $200 million on April 15. Trader CL wrote,

“At the moment, CME participants want ETH, not BTC, it seems, BTC open interest has been stagnant, meanwhile ETH demand from CME has blown my expectation by magnitudes for some reason I thought it was gonna be a dead product.”

Tesla CEO Elon Musk citing environmental concern, which has been gaining a voice for some time, has also put forward a new hurdle in front of Bitcoin.

All of this, combined with the EIP 1559 that burns gas fees, effectively making ETH a deflationary asset, has people seeing Ethereum flipping Bitcoin as the number one crypto asset becoming a reality.

Su Zhu, the CEO of Three Arrows Capital, who believes we are in a supercycle, estimates that there is a 50% probability that the Ether market cap would surpass Bitcoin’s during this bull run.

While brief, it is entirely possible, given that Ether has always outperformed the leading trillion-dollar cryptocurrency, the long term is anyone’s guess.

Former BitMEX CEO Arthur Hayes, who, along with two other exchange executives, are set to appear for trial in the US next spring, sees this probability of the flippening occurring to 30%. This probability is revised from 0%, affected by a lengthy report by Nikhil Shamapant, who sees ETH reaching $150,000 by Jan. 2023.

While Hayes is bullish on Ethereum and sees a big number for the crypto asset himself, in his latest note, he points out the issues in both the cryptocurrencies that they need to overcome.

He pointed out that while the Bitcoin community fears that Ether will one day overtake their beloved currency, “mETH heads” believe Ether can be both the hardest form of crypto money and the world’s best-decentralized computer.

But “the best forms of money have no industrial use case. Fiat currencies are very useful for commerce because they are intrinsically worthless. The demand to use a particular fiat is completely tied to the usefulness of its network,” he wrote.

Ether’s case is not purely monetary, Hayes said, pointing to the DAO hack when the community chose to roll back the blockchain and giving confidence to investors to continue experimenting with DeFi applications rather than upholding the blockchain’s immutability by letting the funds be drained and be more akin to a hard monetary instrument. He said,

“When in doubt, the Ethereum community will always elevate the needs of the decentralized computer over the needs of being a true hard monetary instrument.”

As history presents, the current EIP-1559 inflation schedule will change too because as the platform becomes more useful, more gas is spent and more ETH burned, making it deflationary.

“If we are underestimating the impact of DeFi on human economic interactions, there is a future where there isn’t enough Ether supply to allow the system to function,” he said. And according to him, a high ETH price won’t solve the supply issue because there is “no magic ETH in the ground” to be exploited.

However, scaling, Rollups, L2, sidechains, and sharding, will lower the floor equilibrium. These scaling solutions that the community is currently working on and are increasingly gaining traction are meant to make the network fast and cheap.

The “shortcomings pointed out by Arthur are solved by scaling solutions and dynamic burn rates,” says Tetranode, an early investor in Ethereum.

While Ether can’t be both, the hardest form of crypto money and power the world’s decentralized computer, Hayes said, it doesn’t mean Ether’s market cap cannot eclipse Bitcoin’s.

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Author: AnTy

1.5B New DAI Minted in The Past Month, Maker Now Earning $400k per day in Revenue

1.5 Billion New DAI Minted in The Past Month, Maker Now Earning $400k per day in Revenue

Stablecoins have been ruling the crypto world since last year.

The total stablecoin supply is ready to hit $90 billion, up from $28 billion at the beginning of this year and $5.87 billion in January 2020.

Tether (USDT) remains the dominant stablecoin at over $56 billion market cap, followed by USDC at $16 billion, BUSD at $8 billion, and DAI at about $4.7 billion.

DAI is a fully collateralized stablecoin native to Maker’s decentralized autonomous organization (DAO), whose supply has gone vertical this year, adding almost 4.5 billion to its supply after starting the year around a $1.1 billion market cap.

The surge in DAI supply first started in July 2020, around the time the DeFi mania took flight when it was just at $130 million. Now, in less than a fortnight, DAI has minted $1 billion.

Interestingly, Maker is earning 4% APY on every dollar of DAI in circulation right now.

Maker, the original DeFi protocol itself, is one of the most profitable decentralized finance projects whose revenue is increasing on a constant basis.

At the beginning of the year, Maker was earning just over $52k per day, and by the end of the same month, it had hit the $100k mark, which after constant increments is now earning almost $463k in revenue daily.

Maker (MKR) has been earning $400k in revenue per day since April 28th.

This has the monthly revenue of Maker hitting $10.45 million in April, up from $2.55 million in January, an increase of 310% YTD. Already, so far in May, the project has generated $3.55 million in revenue.

Popular DEX Uniswap (UNI) is leading with its $113 million revenue, followed by Compound (COMP) by $46 million last month. Both Sushiswap (SUSHI) and Aave (AAVE) also made it to the top DeFi earners list with $35 million and $24 million respectively.

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Author: AnTy

Billionaire Investor Daniel Loeb’s Third Point “Outed as a HODLr”

Billionaire investor Daniel Loeb’s Third Point LLC is the latest firm to own cryptocurrency.

Last month, Loeb took to Twitter to share that he has been “doing a deep dive into crypto.” On the reports of Third Point owning crypto, Loeb tweeted, “Outed as a hodlr.”

The $17.6 billion hedge fund holds an unknown amount of cryptocurrency through crypto exchange Coinbase’s custody arm.

The biggest crypto exchange in the US is all set to go public through a direct listing on Nasdaq next week. The company had said that it expects “meaningful growth” thanks to custody in part, driven by the increased institutional interest in the crypto asset class.

In its earnings call, Coinbase revealed that out of the $223 billion held by the exchange, $122 billion belongs to institutions.

Additionally, in Q4 of 2020, 64% of its volume came from institutions which is a drastic change from Q1 of 2018 when retail accounted for 80% of the volume.

Coinbase helped several big names accumulate Bitcoin, including Tesla, MicroStrategy, Meitu, Ruffer Investments, and Paul Tudor Jones.

Three Point’s crypto exposure, it had said, could be direct or indirect through derivatives contracts and is also open to staking and lending cryptos.

The company is also backing crypto and stock exchange eToro, which announced that it is going public through a merger with FinTech Acquisition Corp. V ( FTCV).

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Author: AnTy

FinTech, Investview, Reports a Record Month Adding $1M in Bitcoin & Crypto to Its Holdings

FinTech, Investview, Reports a Record Month Adding $1 Million in Bitcoin & Crypto To Its Holdings

Fintech company Investview Inc. reported the highest monthly gross revenue in the month of February in the company’s history. A public company, Investview, is listed on the OTC Markets Group.

The company had $5.5 million gross revenue last month and another record high of $1.9 million net income. Yet another record high monthly performance was recorded in terms of operating margin, which is estimated at 30% for February.

“It was a record month for gross revenue demonstrating strength and growth from multiple subsidiaries,” said Joe Cammarata, Chief executive Officer at Investview.

Investview also reported more than $1 million worth of digital currency holdings consisting of Bitcoin (BTC) and other digital assets as of Feb. 28, 2021.

Its subsidiaries are involved in providing financial education tools, content, research, and management of digital asset technology that mines cryptocurrencies, with a focus on Bitcoin mining and the generation of digital assets.

“Financial education remains a driving force with individual demand growing rapidly, especially with greater participation from Gen X and Y.”

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Author: AnTy

MicroStrategy’s Massive Premium Implies Bitcoin Price of $122k, says Investment Firm Short on MSTR

The price of the MSTR shares have crashed 60% in less than a month since company executives started selling some stocks.

Bitcoin bull Michael Saylor, the co-founder, and chief executive officer of publicly-traded business intelligence company MicroStrategy, has been betting big on the leading digital currency.

The company bought another 205 BTC on Friday, bringing its total holdings to 91,065 BTC, representing 0.488% of Bitcoin’s circulating supply.

While the company continues to bet more and more on Bitcoin, its share prices are not feeling the same bullishness. MSTR share prices have crashed nearly 60% in less than one month from their all-time high of about $1,314 on Feb. 9.

On Friday, the MSTR shares fell as low as $537 before recovering to $620. Interestingly, MSTR is suffering from losses more than Bitcoin.

During the same period, the price of Bitcoin went from $46,500 to an ATH of $58,300, only to see a correction of 26% to almost $43k. Currently, BTC is consolidating in the $40k-$50k range.

The losses in the cryptocurrency market have actually been the result of the weakness in the stock market, which has been reacting to the rising bond yields. “The bond market selloff is showing some signs of stability, and that could mean the bitcoin pullback is nearing its end,” said Edward Moya, a senior market analyst at OANDA.

In related news, MicroStrategy President and CFO Phong Le sold 10,000 shares of MSTR on March 2nd, at an average price of $802.46 a share. Company CTO Timothy Edwin Lang sold 10,000 shares of MSTR stock on Feb 22nd.

Moreover, General Counsel Wei-ming Shao sold 5,000 MSTR shares on March 3rd. Director Jarrod M Patten and Stephen X Graham also sold 1,150 shares and 2,000 shares respectively on Feb. 24.

Distorted from fundamentals

The traditional media and funds have voiced their opinion against the company’s increasing Bitcoin bet. This week, WSJ called MicroStrategy’s Bitcoin buying spree “irresponsible,” based on Marc Lichtenfeld, chief income strategist at The Oxford Group’s view, who calls Bitcoin a “very speculative and volatile asset.” He said,

“I have never seen a company do this. This is beyond the excesses I have seen during the dot-com boom, and I think it makes them very, very vulnerable.”

According to Lichtenfeld, MSTR shares are “completely distorted from (its) business fundamentals” and simply linked to Bitcoin.

Another criticism came from investment management firm Bireme Capital which published its Q4 2020 Investor Letter, revealing that it is short on MicroStrategy, declaring $450 as its fair value.

The fund that had a net return of 47.1% for the year ending 2020 said MicroStrategy has a massive premium, its market cap increasing by $9 billion on a ~$3b windfall on its bitcoin purchases.

According to Bireme Capital’s calculations, MSTR’s current share price implies a bitcoin price of $122,000. The letter reads,

“MicroStrategy (MSTR) is the latest firm with shrinking revenues and negligible profits to pivot to the blockchain. Rather than attempt to start a cryptocurrency business, MSTR pivoted in the most straightforward way possible: it simply bought hundreds of millions of dollars worth of bitcoin overnight. In one light, this is an utter abdication of all the principles of corporate finance. Why not return the money to shareholders, who can decide for themselves whether or not they want to own bitcoin? But in another light, this was a brilliant end run around the SEC, who has been denying bitcoin ETF proposals le and right for years. MSTR went from being a mere stagnant software business to the de facto bitcoin ETF.”

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Author: AnTy

Ledger Reveals 3 Month Policy for Keeping Buyer Info; 2k New Users Affected in Data Breach

Ledger Reveals 3 Month Policy for Keeping Buyer Info; 2,000 New Users Affected in Data Breach

This time the information was leaked by the hardware wallet’s e-commerce provider Shopify’s rogue employees. But “these attacks have only strengthened our resolve to build and release products that keep you and your crypto safe,” says Ledger.

Hardware wallet Ledger, which is meant to “provide security to critical digital assets for consumers & institutional investors,” keeps leaking information about its customers.

After the last data breach affected 272,000 customers, yet another one has leaked the customer records of additional 20,000 Ledger customers.

On Wednesday, Ledger informed the crypto community that in an incident in the first half of 2020 (April and June), its e-commerce provider Shopify’s team members illegally exported merchants’ customer databases.

Shopify alerted Ledger about this incident on December 23rd, in which 93% of the information obtained was similar to the previous data dump, 7% of the customer records breached were new.

Reportedly, this incident affected over 200 merchants of Shopify, but the e-commerce giant didn’t discover that Ledger was also targeted in this attack until Dec. 21st, 2020.

As for why Ledger would keep the information, the company says, “our goal is to completely delete your personal data (such as your name, address, and phone number) as soon as possible.”

However, the company stores e-commerce information for “accounting and legal obligations,” in a segregated environment — “separate, dedicated, and encrypted storage inaccessible from the internet or external devices, with limited access rights” — for “as short a period of time as necessary” which is 3 months after the order is shipped.

The company has already contacted the concerned users directly to inform them about this incident.

“We are dedicated to taking action against this incident,” wrote Ledger while advising users to never share a 24-word recovery phrase.

If a user purchased a Ledger product after the end of June 2020 or outside of the Ledger.com site, their data is not exposed.

“We are deeply sorry that these incidents occurred and for any pain or stress they’ve caused our customers,” reads the official announcement in which the company says it will

“soon release a technical solution that will remove the 24 words as the single pillar of the security of our hardware wallets and will open the door to funds insurance for individual customers.”

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Author: AnTy