Fundstrat’s Tom Lee Increases Bitcoin Price EoY Target to $125k Following Elon Musk Bashing BTC

Fundstrat’s Tom Lee Increases Bitcoin Price EoY Target to $125k Following Elon Musk Bashing BTC

VC Pantera Capital is of a similar opinion, saying Bitcoin price is on track to their prediction of $115,212 in August 2021 and if the market takes longer, natural trend growth would hit that level in Feb. 2022.

Fundstrat Global Advisors managing partner Tom Lee is unperturbed by Tesla CEO Elon Musks’ warnings about Bitcoin. He continues to be bullish on the largest cryptocurrency and doesn’t see this having a negative impact on it either. Lee said in an interview with Insider,

  • “I don’t think it’s going to get people negative on bitcoin, but it is going to get people to focus on the problems that are being created by digital assets.”
  • “It is probably better to view it as a call to action for the bitcoin industry to focus on renewables or more efficient ways to provide proof of work.”

Talking about Musk suspending Bitcoin payments, Lee said it makes sense given that Tesla is preferred for being ESG-friendly. He said,

“I imagine it would have been tough to accept bitcoin as payment because of the volatility.”

“So as a practical, treasury matter, unless Tesla is hedging the bitcoin transaction at the time of purchase, I don’t know if it’s great from a company perspective.”

Bitcoin Price on Track

In response to Musk calling Bitcoin an environmental concern and being highly centralized, the price of BTC fell to $42,150, a pullback of 35% from its ATH.

However, Lee is confident in Bitcoin and actually upgrades his BTC price outlook from $100,000 to $125,000 by the end of this year.

VC Pantera Capital is of a similar opinion, saying Bitcoin is at “fair value.” The company May investor letter said,

“Bitcoin has been remarkably steady in having a compound annual growth rate of 230% — over ten years. There’ve been a few bubbles…a few bursts…but generally it’s been consistent. The 10-year regression value for bitcoin today is $55,350.96 – which is exactly where it is.”

Fair value marks “a good time to buy” Bitcoin per Pantera, which means the current price of $45,600 makes it cheaper.


Pantera Capital further shared a “fun perspective” noting in 2013, Bitcoin peaked 1,678% above fair value against the current regression model while the 2017 peak’s premium was 667%, 60% lower, 1,477 days later. It added,

“If the same amount of time occurred between that peak and the next and the premium fell by 60% again, Bitcoin would hit $370,554 on New Year’s Day, 2022.”

According to them, Bitcoin is on pace for Pantera’s price prediction from April 2020, according to which BTC would be worth $115,212 in August 2021. If the crypto asset takes longer, “the natural trend growth would hit that level February 20, 2022,” it added.

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Author: AnTy

Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman

SUSHI price has been moving back upwards while SushiSwap enjoys high volume, keeping between $500 million and $1 billion, and liquidity around $5 billion this month.

After bottoming out at about $10, SUSHI is back to moving towards its all-time high of $23.38 as it trades around $17.5. If Bitcoin doesn’t correct and takes the entire crypto market down with it, SUSHI has a good chance to rally here and make a new ATH just like other cryptos. BTC -5.95% Bitcoin / USD BTCUSD $ 46,944.92
Volume 58.82 b Change -$2,793.22 Open $46,944.92 Circulating 18.71 m Market Cap 878.39 b
9 h 70% Bitcoin Mining Pools Give Signal to Taproot’s Second Attempt 9 h Ether Will “Keep Gaining Market Share Relative to Bitcoin,” Says Pantera Capital 9 h Aker ASA Considering Accepting Bitcoin as Payment; Elon Musk’s Remarks Change Nothing

And this high can be a lot higher as according to Jeff Dorman, CIO of digital asset investment management firm Arca, Sushi is currently the “most undervalued token” in the crypto market.

In a detailed thread on Twitter, Dorman shared his reasoning for why the recent downward price action will be short-lived.

SUSHI, the native token of Sushiswap, which accounts for the second-largest DEX market share at 15.5% after Uniswap’s nearly 60% dominance, has been underperforming both UNI and the broader DEX market since the beginning of the year, as evident in the 50% peak-to-trough decline in March and Apri.

This is because of Uniswap V3 hype, PancakeSwap growth, and rolling 6-month vesting unlocks from initial Sushi yield farming, said Dorman.

SUSHI’s biggest competition is likely to be CAKE and not UNI, whose high gas fees turned CAKE into a viable DEX which is why we  zsaw flat TVL on SushiSwap & lower volumes in March / April, as users paid nothing in gas and earned higher LM rewards on Pancake, he added. CAKE -8.87% PancakeSwap / USD CAKEUSD $ 28.77
Volume 313.42 m Change -$2.55 Open $28.77 Circulating 164.9 m Market Cap 4.74 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 1 w Cryptocurrency Related Stocks Tumbling in a Massive Divergence from Crypto Assets 1 w Ethereum Fork ETC Trading 12% Higher on Coinbase, CAKE Wicks Down Over 13.5% on Binance


While these factors don’t have any actual impact on the token’s valuation and core business, they are affecting the price.

When it comes to vested supply, “dilution from yield farming can be just as painful when an asset is out of favor,” as happened with CRV and UNI during their short yield farming stint. CRV -12.47% Curve DAO Token / USD CRVUSD $ 3.23
Volume 443.42 m Change -$0.40 Open $3.23 Circulating 354.56 m Market Cap 1.15 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 1 w Sushi Goes Live on Polygon (MATIC), Andre Cronje Proposes A Curve like Mechanism for it 3 w Uniswap Hits $10B In Weekly Trade Volume; DEX’s Current Pace Would Be Half A Trillion-Dollars per Year
YFI -13.92% / USD YFIUSD $ 66,807.76
Volume 851.97 m Change -$9,299.64 Open $66,807.76 Circulating 36.64 K Market Cap 2.45 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 3 d Aave Is Testing Private Pools for Institutions to Ape into DeFi, Reveals CEO Stani Kulechov 3 d Yearn Capitalizes on Retail Mania, Sends YFI to Nearly A Six-Figure ATH

According to Dorman, some of Sushi’s inflation could be mitigated through an ongoing proposal made by Yearn creator Andre Cronje that recommends looking up additional SUSHI into oSushi. Currently supported by 97% of the community, SUSHI tokens will be locked for up to 3 years if this passes.

Another proposal, SIMP, has been introduced, which allows SUSHI rewards to be claimed immediately instead of vesting it over a six-month period with a penalty that is to be decided which will be directly sent to xSUSHI stakers. This is expected to end distraction and allow the project to focus on building.

With over 68% votes, currently, the community has chosen 0% penalty and unlock.

While the overhangs are impacting the price, they haven’t affected SUSHI’s performance as the DEX enjoys high volume, keeping between $500 million and $1 billion, and liquidity around $5 billion this month.

Sushi is also launching cross-chain and seeing traction with Polygon (MATIC) TVL at $400 million. Also, there is an ongoing Treasury Diversification Proposal that would diversify the SUSHI-only treasury into a basket of blue-chip DeFi tokens, de-risking & strengthening the balance sheet. MATIC 8.50% Polygon / USD MATICUSD $ 1.60
Volume 5.93 b Change $0.14 Open $1.60 Circulating 6.12 b Market Cap 9.77 b
10 h Sushiswap’s SUSHI is the “Most Undervalued Token,” says Arca CIO Jeff Dorman 2 d Ethereum Scaling Solution Arbitrum Opens its Mainnet with Sequencer for Developers 2 d Decentralized Trading Platform Slingshot Launches Open Beta On Polygon (MATIC)

So, “as investors rotate back into DeFi (and they are), these are the opportunities to look for,” said Dorman.

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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

Bitcoin Dominance on a Decline for 8 Weeks Straight to Hit Three-Year Low

Time and again, the Bitcoin price will make a strong upward movement, but instead of continuing the momentum, it ends up back down again. As of writing, BTC/USD has been trading around $57,500.

It has been due to lack of momentum in Bitcoin and the surging Ether prices, which hit a new all-time high yet again at $3,550 and 0.06348 BTC, that the dominance of the leading cryptocurrency continues to decline. ETH -1.11% Ethereum / USD ETHUSD $ 3,488.63
Volume 44.11 b Change -$38.72 Open $3,488.63 Circulating 115.77 m Market Cap 403.87 b
8 h Tala Partners With VISA To Drive USDC Adoption in Emerging Markets 9 h Bitcoin Dominance on a Decline for 8 Weeks Straight to Hit Three-Year Low 10 h Uniswap V3 Recording $265M in Liquidity and $70M in Volume After Going Live on the Ethereum Mainnet

Bitcoin dominance has been declining throughout this year, so far, and for seven straight weeks, it has printed only red candles.

On Dec. 28, 2020, BTC dominance was at 73.67%, which has now fallen to nearly 45%, last seen in mid-July 2018. The lowest it even went down was at 35.5% on Jan. 8, 2018, when altcoins peaked during the last bull market.


Since the beginning of 2017, when initial coin offerings (ICOs) first became popular in the market, Bitcoin dominance has been on a decline. The metric, however, has become meaningless over time, noted Qiao Wang.

“BTC dominance is now at ~45%, and is probably heading lower,” because of a combination of reasons including the success of Ethereum and other smart contract crypto-commodities, the proliferation of crypto-equities, and froth, he added.

Party to Continue

With Bitcoin price around $58,000, Ether around $3,500, and the total crypto market cap on its way to hit $2.5 trillion, we are experiencing a bull rally, which according to some, could very well be a super cycle.

While that remains to be seen, the ongoing lack of momentum in Bitcoin along with other risky assets is the result of inflation expectations keep on rising and bond yield having stalled, which has real rates falling and deep into negative territory, said Charlie Morris, founder of ByteTree.

“It’ll be back when yields turn up assuming inflationary pressures remain,” he added.

This week, as we reported, Treasury Secretary Janet Yellen, who previously served as the chairman of the Federal Reserve, spooked the market with the talks of raising the interest rates to prevent overheating of the economy.

But Yellen does not directly impact rates in her current position, and the markets have recovered nicely since then.

It is Fed Chair Jerome Powell who is in charge, and he remains dovish as he has repeatedly said that rates will be kept low at zero and inflation target 2% until full employment and economic recovery is achieved.

So, “the party will continue for as long as the fundamentals stay the same,” writes analyst Mati Greenspan.

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Author: AnTy

One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory

Despite the volatility this week, due to Coinbase making its debut on Nasdaq, the Bitcoin price is holding strong above $62,000.

Amidst this, over $623 million worth of BTC stolen in the Bitfinex hack in 2016 moved, representing 10% of the total 119,756 BTC originally stolen. This could have been an attempt to move unseen amidst all the worldwide frenzy around “COIN” listing.

After hitting nearly $65,000 on Wednesday, BTC took a hit to $61,500, which in part could be due to stolen bitcoin moving and in part COIN shares ending up lowering 24%. But the market expects BTC to be back to a new ATH before taking over $70k.

While anything can happen in the market, we are far from topping out based on past performance.

As CoinGecko notes in its latest 2021 Q1 report on the cryptocurrency industry, the ascent of Bitcoin in this cycle (2020- 2022) is mimicking the trajectory it took in the last cycle (2016-2018).


As we recently reported, despite rallying 1,610% from March lows, due to a wave of institutional adoption amid a conducive macro-environment, BTC is only 225% above its 2017 peak of $20,000. By comparison, the 2017 peak was 1,578% above 2013 ATH, and the 2013 peak was 3,590% higher than the 2011 ATH.

Interestingly, unlike last year and the previous cycle, this cycle we see very low volatility despite bitcoin becoming a trillion-dollar crypto asset, making its way to a six-figure price.

One reason why bitcoin might continue its trajectory, according to the report, is inflation. After spending trillions of dollars, another $1.9 trillion bill was passed this week that will again pour more money into the market.

Moreover, with the Federal Reserve determined to keep interest rates low, there is a growing fear of rising inflation, a setup that has made Bitcoin an increasingly viable hedge against the inflationary macro-environment stated Coingecko.

As we have seen, Bitcoin continues to outperform all major asset classes, but while the stock market is doing good, making new ATHs, gold, and bonds (TLT) did not amidst a “rally” in the U.S. Dollar index and rising bond yields.

Bitcoin’s market capitalization is actually just 10X away from flipping gold.


When it comes to the rest of the market, Ether is finally moving up, hitting $2,400 this week. But with rising prices comes congestion and fee spikes, making it not conducive for retail users to do even a simple swap using DEXs. ETH 3.60% Ethereum / USD ETHUSD $ 2,523.06
Volume 32.2 b Change $90.83 Open $2,523.06 Circulating 115.48 m Market Cap 291.37 b
3 h European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain 3 h Gitcoin Spins Out of ConsenSys After Raising Over $11M in a ‘Strategic’ Capital Move 4 h Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)

With ‘Ethereum-Killers’ racing to offer the cheapest gas fees, this turned out to be good for Binance’s BSC. SOL 6.43% Solana / USD SOLUSD $ 27.85
Volume 221.45 m Change $1.79 Open $27.85 Circulating 270.02 m Market Cap 7.52 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Solana’s Data Aggregator Step Finance Raises $2 Million in Private Sale 3 d BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’
BNB 0.93% Binance Coin / USD BNBUSD $ 544.29
Volume 4.59 b Change $5.06 Open $544.29 Circulating 154.53 m Market Cap 84.11 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week’s Victory; XRP Jumps On the News 1 d Binance Is Listing A Tokenized Stock of Coinbase, CZ says ‘Rooting for $COIN’
ADA 1.61% Cardano / USD ADAUSD $ 1.48
Volume 5.34 b Change $0.02 Open $1.48 Circulating 31.95 b Market Cap 47.39 b
6 h Cardano Releases Plutus Smart Contract Language in Preparation for Alonzo Hard Fork 6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 6 d Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

“Total TVL is growing, but BSC’s TVL appears to be stealing Ethereum’s thunder – in Q1 2021 alone, BSC’s TVL rose from 3% to 27%. Apr-21 Ethereum is likely losing ground because of rising gas fees which drives away retail users,” noted the report.

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Author: AnTy

Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’

BTC price goes down to about $55,600 and Ether as low as $1,930 as 366,073 traders get liquidated for $2.02 billion. But the crypto market is already recovering the losses.

Historically, April is one of the best months for Bitcoin’s price, however, the beginning of the month is anything but so.

Today, the price of Bitcoin took a fall to $55,600 and is still not looking done with the correction. In tandem with BTC, the majority of the cryptocurrency market has gone down with it too, which has been enjoying an onslaught of bulls while the leading cryptocurrency consolidated.

Down 5% to 20%, Ether is back at $1,945, XRP near $0.880 with FIL, UNI, DOT, XLM, TRX, BTT, IOTA, BSV, AAVE, XTZ, ATOM, KSM, ENJ, STX, DENT, and UMA recording double-digit losses.

As a result, the total market cap, which surged past $2 trillion for the first time this week, is now near $1.90 trillion.

However, the market hasn’t topped as Ki-Young Ju, CEO of data provider CryptoQuant, points out people are holding and not selling their BTC.

“Are we in the market cycle high? No. When the market reaches its peak, everyone deposits BTC to exchanges to sell. The number of inflow addresses across all exchanges was at its highest in 2018 Jan, while it hit a three-year low a few days ago.”

And bitcoin shorts continue to be punished.

Overeager and overleveraged longs, however, aren’t unaffected. As a matter of fact, the degen traders are the reason Bitcoin sees pullbacks time and again.

In the past 24 hours, over $613 million Bitcoin positions have been liquidated, as per Bybt. In total, 366,073 traders have been liquidated for $2.02 billion.

Following this, funding rates on Bitcoin perpetual contracts have gone down some, with the highest on Huobi at 0.1051%.

Long Bitcoin, Short U.S. 5 Year Treasury

In other news, Bitcoin bull Mike Novogratz is shorting the five-year Treasury as a hedge against policymakers pulling back their monetary support, saying, “Everyone long bitcoin should be short the five year.”

“I’m short a lot of interest rates,” Novogratz, chief executive officer of Galaxy Digital, said in a Bloomberg Television interview.

“To me, being short the five-year part of the yield curve is a great hedge for any portfolio, crypto or non-crypto.”

U.S. 5 Year Treasury yield is currently at 0.866%, down from 0.97% last week. The yields on these bonds have been rising since last August when it was at 0.193% but still nowhere near the 9.52% in late 1988.

The billionaire investor, who is a former partner at Goldman Sachs, further said in the interview that the price of the assets is rising for the very same reason, central banks relentlessly printing money.

This week, the total cryptocurrency market capitalization hit a new all-time high above $2 trillion, and according to Novogratz, we can easily rise twice as much this year.

“We’re up to 0.5% of global wealth in crypto, and it will be 1% by the end of the year.”

While bullish on crypto and short on bonds, Novogratz is also betting on Facebook in anticipation of the social media giant introducing the Novi digital wallet this quarter. “All of a sudden, you’ll have 2.4 billion people connected to this crypto space,” he said.

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Author: AnTy

Bitcoin and Ether Kimchi Premium Picks Up as Bulls Reappear

As the price of Bitcoin continues to climb up, so does the popular Kimchi premium.

As of writing, the price of Bitcoin is $59,063 on Binance and $59,087 on Coinbase Pro, but the highest price of BTC is on South Korean exchanges, which is up more than 5.5% than other platforms.

$62,368 is the highest on Upbit, on Coinone BTC price is $62,022, $61,738 on Bithumb, and $61,628 on Korbit, as per CoinMarketCap. The same is the case for Ether which is firmly trading above $1,900 on South Korean crypto exchanges as high as $1,941 compared to $1,844 on Coinbase.

The premium on both Bitcoin and Ethereum was first seen during this bull market earlier in 2021, and it continues to soar as prices go higher and higher.

“Korean premiums in both BTC & ETH surged to 2021 highs on the dip below $54k last week. As prices plummeted, Asian investors aggressively scooped up Bitcoin & Ethereum, creating near record-breaking 9.48% & 9.61% premium percentages over Western exchanges year-to-date,” noted The TIE.

However, the South Korean market’s capital controls are making it hard to capitalize on this arbitrage opportunity.

In an interview with The TIE, Alex Friedberg and JJ Petersen, co-founder at BXB Capital, shared the situation around the Kimchi premium and how they managed to make more than $1 million a day in 2017 because of this.

“Korea is a very capital control heavy country,“ said Friedberg noting how if you are a Korean, there are limitations and a lot of restrictions on money that you can wire outside of the country.

“Korea is a very isolated ecosystem, and so if you’re trying to connect the global crypto ecosystem or even global financial services, there are very strict and few routes that you can go through.”

While in 2017, when the premium first came into the scene, they were able to make a fortune on it, at the beginning of 2018, a lot more guidelines from the Korean Financial Intelligence Unit (FIU) have been introduced. Banks were also asked not to process any types of crypto-related transactions.

“So, there’s a lot of government pressure to tighten up the capital controls again because it just got so blown out crazy,” and it made arbitrage really difficult.

Also, with everyone from uncles and aunties getting in crypto, and because Korea is very protective of their citizens in terms of investment losses, authorities wanted to curb all the craziness through more tightening of restrictions and policies on the exchanges.

Last year, new legislation was introduced to provide a framework for the regulation and legalization of crypto, and exchanges were also passed.

Crypto activity that has been subdued has also started to reemerge this year. Just a couple of weeks back, South Korean crypto volume beat its stock market numbers. Also, there have been reports of Morgan Stanley participating in the acquisition of Bithumb.

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Author: AnTy

Tesla CEO Now Sets His Eyes on DeFi, But The Elon Effect on Price Is Absent

Tesla CEO Now Sets His Eyes on DeFi, But The Elon Effect on Price Is Absent

Tesla CEO Elon Musk continues to get deeper and deeper into cryptocurrencies, having covered Doge, Bitcoin, NFT to now DeFi.

On Thursday, Musk took to Twitter to announce “Don’t defy DeFi.”

This obviously sent the Crypto Twitter (CT) into euphoria and, of course, to Musk’s comment section with their memes and shills.

“Replacing banks with code,” commented David Gokhshtein.

Arthur_0x of DeFinance Capital took this as an opportunity to propose adding support for fiat-backed cryptos as well. “Do allow us to pay for Tesla in stablecoins as well,” commented Arthur.

Bitcoin Fork or Doge?

Just yesterday, Musk announced that the electric car maker would now be accepting Bitcoin as payment. Adding to this bullish news is the fact that any BTC received will be retained as Bitcoin and not converted to fiat currency.

The company’s supporting documentation clarified that any crypto asset other than Bitcoin, name mentioning the forks BCH and BSV, isn’t accepted. “Our Bitcoin digital wallet is not configured to detect or receive digital assets other than Bitcoin,” the company said.

Internet entrepreneur Kim Dotcom argued that Bitcoin transactions involve high costs compared to its fork Bitcoin Cash (BCH). BCH -0.21% Bitcoin Cash / USD BCHUSD $ 478.21
Volume 2.43 b Change -$1.00 Open $478.21 Circulating 18.69 m Market Cap 8.94 b
8 h Tesla CEO Now Sets His Eyes on DeFi, But The Elon Effect on Price Is Absent 1 d Free Crypto Trading App Robinhood Files S-1 Paperwork With SEC to Go Public 4 d Fortress Investment Offering an Early But Discounted Payout to Mt. Gox Creditors

“Try and buy a Soda with Bitcoin,” Dotcom tweeted while sharing that Bitcoin’s median fee is $8.92 while BitcoinCash’s median fee is a mere $0.001.

“Over half of all cash payments worldwide are under $10. BCH is serving the mass market, not just the 1%,” he said. “That’s why Bitcoin Cash.”

Musk responded to Dotcom’s argument with “Fair point.”

Musk also responded with the emoji of a pair of eyes to one Twitter user, suggesting that Dogecoin DOGE -1.30% Dogecoin / USD DOGEUSD $ 0.05
Volume 1.09 b Change $0.00 Open $0.05 Circulating 128.91 b Market Cap 6.62 b
8 h Tesla CEO Now Sets His Eyes on DeFi, But The Elon Effect on Price Is Absent 1 d Free Crypto Trading App Robinhood Files S-1 Paperwork With SEC to Go Public 6 d Robinhood Is Working Fast on A ‘Wallet’ Feature; CEO says Might Add New Coins Too
would rather be the best choice with “fast speeds and low fees,” making for ”an actual spendable cryptocurrency.”

Not Effect on Price

Musk’s announcement sent the price of Bitcoin higher above $57,000, only to lose all the gains the same day. Today the BTC price fell even lower to $50,350, down 18.5% from March 13 all-time high shy of just $62,000. BTC -2.33% Bitcoin / USD BTCUSD $ 51,579.86
Volume 66.93 b Change -$1,201.81 Open $51,579.86 Circulating 18.66 m Market Cap 962.71 b
5 h Coinbase Selected By Meitu For $90 Million Crypto Purchase and Custody 5 h CBOE Now Wants Back In, CEO says ‘Haven’t Given Up’ on Bitcoin Futures & We ‘Need’ to be Here 6 h $1.2 Billion Liquidated on Binance, Taking the Lead like Always, on Bitcoin’s Drop to Nearly $50k

As we started to see with DOGE, Musk’s tweets about crypto, which has been increasing in number, have been losing their effect on prices, or they soon get reversed as in Bitcoin’s case.

As for the DeFi market, the prices have been declining since yesterday in tandem with Bitcoin and that continues today with DeFi coins down 10% to 20%.

This week, the DeFi sector has wiped out about $15 billion from its market cap, which currently stands at $82.8 billion, as per CoinGecko.

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Author: AnTy

Bitcoin as a Treasury Asset Goes Global Amidst Renewed Bullish Sentiments

Bitcoin funding rates are gearing up as the price aims for $55,000. Substantial demand for crypto assets from institutions is also here.

Bitcoin had a promising start of the week as we aim for $55,000. In tandem with Bitcoin, Ether and other altcoins have also shaken their uncertainty and recovered strongly.

Traders are getting bullish as the funding rate starts heating up some. On Bitcoin perpetual contracts, the rates are currently between 0.0291% (Deribit) and 0.1908% (Bybit), as per Viewbase. As for Ether perpetual contracts, it is between 0.0550% (OKEx) and 0.1939% (BitMEX). However, the funding rates are still far from February levels.

While the open interest on CME’s Bitcoin futures, which dropped $1 billion to $2.1 bln suggests some cautiousness from institutional investors, the same cannot be said about the digital assets’ addition to balance sheets.

This wave of publicly listed companies using BTC as a reserve asset which was kickstarted by Microstrategy in the US, is now going global as it reaches Scandinavia and Hong Kong.

This week, oil billionaire Kjell Inge Rokke came out strongly in favor of Bitcoin as he said it’s not inconceivable that BTC could one day “be worth mil­lions of dollars.”

Norway’s second-richest person with an estimated $5.4 billion net worth is the co-founder of Aker ASA, which has more recently branched out into green tech and renewable energy companies. And the company is also setting up a new business Seetee AS, to tap into the potential of Bitcoin. It has already deployed $58 million in Bitcoin.

Recently, China’s publicly listed company also added Bitcoin and Ether to its balance sheet. Lennix Lai, director at crypto exchange OKEx commented,

“Meitu is the very first listed company in HK that publicly announced they invested in Bitcoin for cash-hedging purposes. It’s just the beginning of all cash-rich HK-listed companies’ start allocating to crypto.”

“Huge” institutional demand

The $1 trillion market cap crypto asset has been gaining the support of some notable endorsements lately, such as Elon Musk. On Wall Street as well, from custody banking giant Bank of New York Mellon Corp., Mastercard, Morgan Stanley, and JPMorgan, a growing number of companies are warming up to Bitcoin.

However, when it comes to adding Bitcoin to corporate Treasuries, the companies are finding issues with the accounting of the digital asset as the Financial Accounting Standards Board doesn’t have guidance specific to the accounting for cryptocurrencies.

“I don’t think it’s the best accounting so far,” said Robert Hertz, a former FASB chairman. “I am hoping that if more mainstream companies get into bitcoin, the accounting standards board may revisit the accounting treatment.”

According to US research firm Gartner’s survey of 77 executives last month, about 5% of chief financial officers (CFOs) and senior finance leaders said they plan to hold bitcoin on their balance sheets this year.

While some feel companies would avoid adding Bitcoin to the balance sheet as they are “happy sinking money into very safe places with low interest” to focus on growing the company through its operations, others point out how the value of the dollar continues to get weaker and “Bitcoin flips the script on that.”

Just last week, Goldman Sachs reported substantial demand for crypto assets from institutions. In a survey of nearly 300 clients conducted by the bank, 40% currently have crypto exposure.

Matt McDermott, global head of digital assets for Goldman Sachs Global Markets Division, said in an interview that the current situation is different compared to 2017 due to “huge” institutional demand from private banking clients and across different industry types.

Blockchain technology offers “a real diverse set of opportunities for the financial industry and something that there’s a huge amount of momentum” for in the market, said McDermott.

“We know firsthand just given the various different projects we’re working on. And we see this as a hugely exciting time exploring the potential of that technology.”

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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