Dollar Sends Warning Signs for Risky Assets including Bitcoin and Crypto

The US dollar has hit a new all-time high today at 96.6, last seen in mid-July 2020. In mid-March last year, USD went as high as 103, and after bottoming out in late May and early June, it has been mostly trending up ever since.

The latest uptrend in USD came as Federal Reserve Chair Jerome Powell was reappointed for a second term, encouraging bets on higher US interest rates.

With the Fed already announcing the paring of its bond purchases, the growing expectation for tighter monetary policy and an acceleration in economic data has the dollar well-positioned against other major currencies.

As we have been noting, the slowdown or removal of liquidity from the market is not good for the prices of risky assets, which could negatively impact crypto prices.

“A stronger greenback would have you believe the same tailwinds that propelled global asset prices—including BTC and crypto—over the last 18 months are starting to reverse course,” commented Delphi Digital.

Already, this week, crypto-asset prices tumbled, with Bitcoin going to $55,600 and Ether to $4,020.

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As a result, funding rates are resetting and even briefly turning negative since last week as after hitting ATH at $69,000 two weeks back, the market has been struggling to be bullish.

On most exchanges, funding rates are hovering in neutral territory, the highest on OKEx at 0.0257%, indicating bullish demand is muted. At $23.36 bln, Bitcoin’s open interest meanwhile remains significantly higher than September lows of $13.11 bln but down from $28.85 bln ATH on Nov. 10.

This USD is also rallying to a 16-month high amidst renewed lockdown fears in Europe after last week investors sought a safe haven on inflation worries. Surging US inflation and the prospect of a sooner than expected rate hike by the Fed has helped DXY run higher, putting pressure on riskier assets and emerging market currencies.

Emerging markets are already struggling with rising inflation and especially as the dollar strengthened. The Turkish lira (TRY) actually hit record lows against the USD.

This devaluation of lira since September (-35%) has been mirrored by strong growth in BTC-TRY trade volumes, noted digital asset data provider, Kaiko. The increase comes despite Turkey banning the use of crypto for payments back in April.

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According to Chainalysis, currency devaluation has been among the main drivers of crypto adoption in the country, accounting for a large percentage of crypto use in the Middle East.

Meanwhile, the Turkish central bank has cut its policy rate by 100bsp, further contributing to the lira’s historic meltdown. “This could favor crypto assets which are seen as a more stable investment alternative,” said Kaiko.

The post Dollar Sends Warning Signs for Risky Assets including Bitcoin and Crypto first appeared on BitcoinExchangeGuide.

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Author: AnTy

Bitcoin $50k Incoming? Bulls Take a Hit, Wipes Out Billions of Dollars from Crypto Market

The crypto market is taking a beating today, in a continuation of the losses seen on Monday.

Just last week, Bitcoin hit a new all-time high at $69,000. But while the market ticked up, on-chain metrics were actually flat last week.

According to CoinMetrics, Bitcoin transactions grew by only 2.9% week-over-week while Ethereum transactions actually dropped by 0.6%, and stablecoin activity also fell off after a recent surge. USDC active addresses declined substantially by 8.9% on the week, while Tether (USDT) active addresses fell by 2.1%.

Following the ATHs, Bitcoin today dropped more than 11% to as low as $58,650. Much like always, Ether dropped even harder. A 14% drop sent ETH to nearly $4,100.

Following the latest drop, the total crypto market cap has slid down to $2.72 billion, down from over $3 trillion last week.

However, the latest pullback only sent the price to the level seen in late October, so just three weeks back.

As Vijay Ayyar, head of Asia Pacific with crypto exchange Luno, said, it “would be unusual to keep moving up without corrections” and argued that it is “a healthy pullback” after a prolonged rally.

Bulls Need More Beating?

The pullback has wiped out $1.3 billion of the Bitcoin open interest from yesterday’s high of $25.96 bln and $4.2 billion from $28.85 billion ATH on Nov. 10. As for Ether OI, just over $1 billion has been nuked to $12.06 bln, down from $14.66 bln ATH on Nov. 10.

The funding rate, as a result, has normalized, and in some cases like OKEx and BitMEX have even gone negative, as per Bybt. The highest funding rate for Bitcoin futures contracts is currently on Bybit at 0.0678%, while for Ether perpetuals, it is at 0.01% on Bybit as again.

BTC annualized daily basis on Binance has now fallen to 5.68%, down from 12.92% last week and 15.32% from late October but still extremely high from -0.96% in late September.

This resetting comes after the liquidation of 219,010 traders for $885.62 million in the past 24 hours. Binance accounts for 37.46% of it, despite not putting out complete numbers.

But is it over yet? That’s hard to know though trader CryptoCobain who called for a “savage dip” after the ATH breakout “to crush late longers then real ATH breakout,” early last month now sees the ​​worst-case scenario to be Bitcoin dropping as much as to $48,000 or $52,000.

Basically, to a level where “it looks bad enough for bears to gloat,” he commented.

Speculators Need To Be “Shaken Out”

While Bitcoin has taken a drop, you wouldn’t want to be paper hands like economist Mohamed El-Erian who shared his crypto experience in an interview with CNBC, revealing that he bought some Bitcoin in the “crypto winter” of 2018 when the digital asset plunged to $3,000 only to capitulate well ahead of the face-melting rally.

“I felt compelled to buy it — I really did,” said the Allianz chief economic advisor. “I felt like I had framed it. I had this level, I had an entry point.”

But he ended up selling in late 2020 once Bitcoin went to 2017 all-time high of $20,000 due to “behavioral mistakes” as BTC went on to hit $65k in April and $69k last week, propelled by inflation fears.

While El-Erian didn’t comment on valuations, he categorized Bitcoin investors in three buckets: day-trading “speculators,” professional investors looking to diversify their portfolios, and “fundamentalists” who are in it for the long haul, with the last two types “really strong foundations for that market long-term.”

As for when to buy again, El-Erian said he would feel comfortable buying again once some of the speculators in the market are “shaken out,” which seems to be the case currently.

“These other two levels are pretty solid in terms of supporting bitcoin and other cryptocurrencies.”

“The key thing here is the underlying technology and the model. And those two things are going to be very influential in the period ahead.”

A Disruptive Force

According to El Erian, the cryptocurrency is a “very disruptive force,” but he doesn’t see it ever becoming a “global currency” and replacing the U.S. dollar either.

While it can’t be “regulated out of existence,” the former PIMCO CEO thinks the crypto industry should start engaging with regulators sooner rather than later to avoid the regulatory headwinds faced by giants like Amazon, Google, and Facebook.

The crypto industry has a “responsibility not to repeat the mistake of Big Tech,” El-Erian said. “The big mistake of Big Tech was they didn’t realize they were becoming systemically important, so they didn’t engage in preemptive regulatory discussions.”

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Author: AnTy

Bitcoin In “A Strong Position To Trend Higher” Due To Ongoing Supply Shock And Increasing Demand

“Renewed demand for BTC is increasingly clear,” as per different metrics while USD rebounded sharply today after its weakest one-month level on Friday, with the Fed expected to begin tapering from next month.

Bitcoin miners are accumulating more and more of the leading cryptocurrency, driving a supply shock, powering its rally, according to a report by the research arm of cryptocurrency exchange Kraken.

In its latest report, the exchange said that long-term holders and whales, along with crypto miners, are behind the ongoing supply shocks.

The report said that these long-term holders continue to hold onto their Bitcoin stash unperturbed by the drop in Bitcoin price in September or the surge in prices in October. Instead of reacting to the prices, they keep on accumulating Bitcoin.

An indicator called the o-hop supply that determines whether the miners are holding onto the coin they have mined has also risen about 50% since last month. Not just large-scale entities but even smaller miners and players are also beginning to hold, which can further exacerbate the short supply, said Kraken.

Renewed Demand Is Clear

The largest publicly traded miners, including Riot Blockchain, Marathon Digital, and Hut 8, have reported hoarding Bitcoin they mined last month. Some of the mines are even using these BTC to boost their balance sheets and funding.

The supply shock and the increased demand “put BTC in a strong position to trend higher,” Kraken wrote. One metric further shows that bitcoin sits below the halfway point between overbought and oversold territory, “suggesting that there’s still room for BTC to run,” it added.

This month, Bitcoin has rallied 42%, putting in a new all-time high at $67,000 in anticipation of the launch of the first Bitcoin ETF in the US. As of writing, BTC/USD is trading around $61,300.

“Validating the uptrend and highlighting strong demand for BTC, the excitement in the market is evident across several metrics and indicators.”

“Renewed demand for BTC is increasingly clear when looking at active addresses, new addresses, transaction count, velocity, and other metrics.”

Hedge Funds Go Record Short

Meanwhile, bitcoin net shorts hit a new record this week, but given that institutional investors always hedge their bets, these hedge funds whose short positions have climbed to $2.84 bln are also long Bitcoin.

According to crypto exchange OKEx, retail, however, is favoring longs. The BTC long/short has been keeping above 1.0 after first testing it last week.

“The ratio is bullish now and shows that retail investors are starting to believe in the possibility of higher prices in the near future. As long as this trend remains above 1.0, we can expect BTC to remain on an uptrend.”

This can also be seen in the basis for BTC futures contracts which has seen a minor retreat in line with Bitcoin’s price sliding from its ATH.

Time To Settle Down

Interestingly, the US dollar also weakened to its lowest level in a month due to a stronger euro on the back of earlier the expected hike in European interest rates. But today, in a sharp rebound from yesterday’s weakest level of 93.284, the greenback went up to 94.3 and is currently at 94.13.

This week, billionaire hedge fund manager Bill Ackman also called for the Federal Reserve to begin raising interest rates “as soon as possible” and start tapering its monthly asset purchases “immediately.”

Ackman further said on Friday that in response to this, they are hedging their exposure to an upward move in rates, “as we believe that a rise in rates could negatively impact our long-only equity portfolio.” He said,

“We are continuing to dance while the music is playing, and it is time to turn down the music and settle down.”

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Author: AnTy

BTC Shoots Above $50k as Funds Start Recording “Modest” Inflows, Ether’s Inflation Rate on A Downtrend

Bitcoin has hit $50,000 yet again.

The leading cryptocurrency went as high as $50,350 on Coinbase today, a level last seen on August 23rd and before that May 15.

Confidence is returning in the second leg of the bull market as bitcoin recovered sharply from its July low of around $28k.

“Purely from a TA basis, it looks like if $50 goes (it prob will), $58k will be on deck in no time. Then it’s a battle for new ATHs and potentially beyond,” said Travis Kling, who’s running Ikigai Fund.

The price appreciation, more importantly, has come during a period of the lowest spot volume in the last year, which has been due to seasonality. Kling added,

“The biggest risk to this scenario playing out is increased tapering fears. That was a much bigger concern pre-Jackson Hole. But Powell seems content to punt on tapering at least until YE. If we print strong jobs numbers in the coming months, there’s risk that timeline moves up.”

The price action turned positive as Bitcoin fund flows finally stabilized and even recorded inflows, though modest, for two consecutive days, according to ByteTree data. Transaction counts are picking up from low levels as well, up from 1.35 million in early July to now approaching 1.75 million.

Additionally, “miners inventories have now peaked, and they are selling again. This is normally bullish as it implies the market is strong enough to take the pressure,” noted Charlie Morris of ByteTree.

While Bitcoin (BTC) finally made a big move, Ethereum (ETH) has been leading the market this time around.

The second-largest cryptocurrency rallied high at nearly $3,845 late on Wednesday, a level last seen on May 16, just four days after hitting ATH at $4,380. Since July 20 low, Ether has soared 122% in value.

ETHBTC also surged to roughly 0.0785, not seen since May 19th, after breaking out of a multi-year long-term wedge.

All of this has been while ETH perpetual record low funding rates leading to optimism that this breakout can run even higher.

However, according to Loomdart, popular crypto trader, it might be time to deleverage here as “think a lot of catch up leverage stepped in yesterday to kinda hope other L1 strength can be matched, think we go higher eventually regardless, but yeah not bad place to tp,” he said.

Amidst the rising price and continued NFT mania, average gas fees on the network have risen past 136 Gwei, which is leading to more burns. 170,000 ETH worth $545 mln has been burned since EIP 1559 was implemented on August 5.

OpenSea’s contracts alone contributed to 30.67% of all ETH burned (~27k ETH), followed by Uniswap V2 and V3 contracts contributing 20.44%.

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This increasing amount of ETH getting burned has resulted in Ether’s annualized daily inflation falling to 1%, from ~3% before EIP-1559 activation. This week’s data revealed sub 1% inflation rates, hovering around 0.6% annual inflation, which is significant.

“Although it’s unlikely that this sustains until the PoS merge, EIP-1559’s impact on ETH’s inflation is the equivalent of two BTC halvings (using 3% as pre-London inflation),” noted Delphi Digital.

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Author: AnTy

Macro Suggests Crypto Cycle Top Might Not be In, Risk-on Could Become a Key Narrative Once Again

After going to nearly $40,000, Bitcoin is down at $38k yet again today. Meanwhile, Ether, currently above $2,600, went as high as $2,770 late on Wednesday ahead of its much anticipated London upgrade that will activate EIP 1559.

The total crypto market cap is also back near $1.7 trillion, up from a $1.29 trillion low a fortnight back.

As crypto asset prices make a strong recovery, the fear of a prolonged 3-year bear market, like after the 2017 bull market, following the new all-time highs in April and May, has been subsidizing. Some traders and investors expect to see a repeat of the first half of 2021.

“Hard to see the cycle top while the Fed remains dovish,” said trader and economist Alex Kruger.

“The Fed remains dovish even as it starts to discuss tapering as it’s concerned with jobs, while it sees inflation as transitory. Jobs are taking longer to recover as remote work has increased productivity. NFP data is key.”

As we have reported, Federal Reserve Chair Jerome Powell has assured the market at every turn that there is still a way to go before fiscal support is removed as employment targets are not met yet. He will tell in advance when the tapering would officially begin.

Divided Views

Fed Vice Chair Richard Clarida, a key architect of the US central bank’s new policy strategy, also said this week that an interest rate hike was likely in 2023, while he could “certainly” see an announcement on a taper “later this year.”

“Commencing policy normalization in 2023 would, under these conditions, be entirely consistent with our new flexible average inflation targeting framework,” he said in a webcast discussion hosted by the Peterson Institute for International Economics.

Fed officials, however, seem divided over when to start tapering, with St. Louis Fed President James Bullard calling for a quicker reduction of the bond-buying. Bullard said earlier on Wednesday,

“So you’d be sitting here next summer, with inflation well above target and jobs on the way back to pre-pandemic levels. That sounds to me like that’s something we should be prepared for.”

While Dallas Fed President Robert Kaplan is also endorsing tapering to start “soon,” his views differ from Bullard in the sense that he wants to pare the pace of purchases gradually.

Market at Glance

Amidst the tapering talks, the dollar has gained strength as it trades above 92.2 while spot gold is around 1,811.62 per ounce.

S&P 500 meanwhile fell from its record high of 4,429 hit on July 29 to 4,402 after data signaled a slowdown in job growth last month. The benchmark index has been on the rise ever since the March sell-off when it fell to 2,200.

Robinhood Markets (HOOD) is actually leading after having a slow start of its debut when it opened at $33, but on Wednesday, it went as high as $85 and is currently trading at $70.39.

The actual yield on 10-year Treasuries fell to a record low as corners over the outlook for economic growth mounts. The exact rate which removes the expected impact of inflation over the next decade is at minus 1.13%

Meanwhile, the cryptocurrency market is also enjoying recovering after experiencing a sharp pullback, 50% to as high as 95%, despite the ongoing regulatory scrutiny. Kruger said,

“Family offices and HNI (high net worth individuals) still coming in. Real yields just hit a new historical low (negative) that pushes speculators out the risk curve. Could become a key narrative once again.”

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Author: AnTy

Bitcoin Surges Above $41k — MacroStrategy, PTJ, FOMC Meeting, BCIE ‘Adopting BTC for Legal Use’

Today, the price of Bitcoin surged to hit $41,076 on Coinbase, last seen on May 21st.

While up more than 32% from last week’s low of $31,000, it’s hard to know if the cryptocurrency will be able to continue its way up towards the all-time high of $65,000 or people will use this bounce to exit after the recent sell-off.

For now, the market is enjoying greens today, which comes packed with a lot of good news.

For starters, MicroStrategy announced on Monday the completion of its $500 million offering of 6.125% senior secured notes due 2028. This will be used to buy even more Bitcoin and add to the company’s stash of 92,079 BTC that are being held in a newly formed subsidiary, MacroStrategy LLC.

MicroStrategy shares are also enjoying an uptrend, going past $600, last seen in early May. The company has yet to buy BTC with the latest proceeds.

As we reported today, billionaire investor Paul Tudor Jones is very bullish on Bitcoin as a portfolio diversifier and wants to have 5% of his portfolio in Bitcoin, the same percentage as gold, cash, and commodities.

“So, I like that idea of investing in something reliable, honest, secure, and 100 percent certain.” “Bitcoin has an appeal to me in being able to invest in certainty.”

PTJ’s net worth is $7 billion, which would put this 5% at $350 million, while his hedge fund Tudor Investment Corporation has about $44 billion assets under management (AUM) which would put this 5% at $220 million, not including his 2% Bitcoin allocation from last year.

The hedge fund manager is paying close attention to the Federal Reserve’s two-day policy June meeting this week, which is scheduled to conclude Wednesday.

According to Jones, if the Fed treats recent higher consumer prices with nonchalance, that is the “green light to bet heavily on every inflation trade” — “then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold,” he said.

But if they throw a “taper tantrum,” that would mean correction, but “that doesn’t necessarily mean it’s over,” he added.

According to Goldman Sachs, it’s too early for Fed Chairman Jerome Powell to begin the “taper clock,” they expect the first hint to be delivered in August or September.

“Powell likely agrees with Governor Brainard and President Williams that the labor market has not yet come far enough,” noted GS.

Additionally, Tesla CEO Elon Musk, who sent the prices crashing last month, helped bolster the positive sentiments after he said the electric car maker would accept Bitcoin payments once miners start using 50% clean energy.

As we reported, the world’s sixth-largest, $10 trillion economy India, a G20 member, is also planning to classify the cryptocurrency as an asset class.

Already, El Salvador has become the world’s first country to declare Bitcoin legal tender. While using BTC for payments, the country will also use volcanic geothermal energy to mine the cryptocurrency.

Now, the Central American Bank for Economic Integration, which is made up of 17 member states, is sharing their support for El Salvador’s Bitcoin move, calling it a “really big deal,” adding, “we’re really proud that they’ve made us part of this new policy.”

“The signal that I want to leave you today is that the BCIE is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use,” said president Dante Mossi.

He further said that BCIE would work with the Salvadoran Government “because it is a modern way of doing business.” Though being the first country to adopt BTC as widely is a challenge, they would “take it head-on and find the best way to protect the user,” Mossi added.

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Author: AnTy

Brave Browser Launches News Recommendations Engine that Protects Users’ Privacy

Privacy-centric browser, Brave, announced the launch of Brave Today, a new privacy-preserving content stream, aiming to offer news recommendations without using users’ data. Instead, the platform uses an algorithm to rank stories with several factors, such as the publishing date and browser history.

Nearly every social networking app recommends content, whether YouTube videos, Spotify music, or Google News. The feature, which is popular on most websites and apps, uses recommendation algorithms mainly focusing on your online behavior.

According to a release from Brave, the newsreader will preserve users’ online privacy by sourcing content from popular RSS feeds using a custom algorithm using different factors. The statement reads,

“This stream is designed to help people discover interesting new content throughout the day while respecting the user’s privacy.”

“By using Brave’s new private CDN to deliver RSS feeds to the browser anonymously, there is no data trail available for third parties to collect or track.”

The stream will allow readers to choose from up to 15 categories of news, including global news, business and finance, sports, fashion, food, lifestyle, tech, and crypto news. Users will also be able to customize their own news streams on Brave Today.

According to the statement, Brave is looking to beat top browsers such as Chrome and Safari via the new framework that bypasses checking users’ private browsing information. Using the Federated Learning with Privacy, a technique to improve machine learning while maintaining the data on the local device, Brave Today will keep users’ data away from third parties (including Brave), which suggests news stories.

The privacy-enabled news stream will be supported by two exclusive offerings at launch – Brave Offers and Brave Promoted Content. The former launches a marketplace on the browser that allows users to indulge in e-commerce while curating their shopping experience across various “deals of the day” promotions.

The Promoted Content stream will focus on advertisements and influencing brands as part of the Brave Ads campaign. The product is yet to launch to the wide market.

“It [Promoted Content] provides brands and media partners with a new unit to promote relevant content seamlessly to Brave Today readers.”

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Author: Lujan Odera

Celsius Network Grew 10x in 2020; ‘Huge’ Interest from Retail & Institutions for BTC, ETH & Others

Today, Bitcoin is keeping around $33,000 after recording an approximately 30% correction from January’s all-time high of $42,000.

The mainstream media and the likes of Scott Minerd of Guggenheim and JPMorgan are getting skeptical of this bull run extended further. Still, the cryptocurrency market has seen three of these bull runs and is expecting more uptrend.

According to Alex Mashinsky, CEO of Celsius Network, “seeing a small correction is probably healthy for Bitcoin,” which is still the best performing asset class across 10, 5, or three year periods.

Not to mention, “at the same time, we are also seeing some of the other old coins close to hitting new highs. It is not just bitcoin outperforming. I think it was just a lot of migration of capital from the traditional markets, from the bond markets, from the stock markets into this non-correlated asset class,” Mashinsky said on Bloomberg.

Celsius, the second-largest asset management in the world, manages under $5.3 billion and works with over 350 institutions.

“We grew 10 times during 2020… We have seen huge adoption both in retail and from institutions,” he added.

Retail Front Running the Institutions

Bitcoin skeptics like UBS global wealth management still see Bitcoin failing due to regulatory threats and central banks issuing their own digital currencies.

However, while China is issuing a central currency, they do not promise limited supply, and just like the Fed is printing dollars, they will continue to print their digital versions, Mashinsky said. He added,

“The beauty of bitcoin is that it has limited supply. Everybody in the world knows that no one can print more of these, and the more people come in and buy Bitcoin, the higher the price is going to go.”

Besides the CBDCs, the mainstream media likes to point out how only 2% of buyers hold up to 95% of all Bitcoin. But what they miss about this data is that exchanges hold the BTC of a lot of users.

Mashinsky explains how Celsius has a bitcoin wallet with over $2 billion in it, but it doesn’t belong to one person. Unlike the traditional equities, you can’t really point to the owner. “We have 350,000 users that aggregate their coins into this wallet to earn yields,” he said.

“What we are seeing is that this is the first time in history where the retail guy got in on the next big thing ahead of institutions. The institution is just now running in,” with JP Morgan and Citi recommend Bitcoin for the first time.

The OG’s of the cryptocurrency space has been here for years, which are retail and the ones selling to the institutions.

This is why this time is different from 2017 as we see “some of the world’s smartest investors not just looking to diversify the asset class, but also generating yields and generating alpha on Bitcoin, and Ethereum and 42 other assets we manage. This is a new asset class that is now being adopted by a very broad base of investors,” said Mashinsky.

These institutions are coming in because of the macro environment. The problem is with the monetary system, which saw a half of the world’s dollars created in the last 12 months, basically when corona started.

This currency debasement is making a lot of people nervous and in their search for non-correlated assets to move away from the dollar or the euro, and because there are very, very few options, it is resulting in a stampede in Bitcoin, Mashinsky said.

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Author: AnTy

Bitcoin Goes Ballistic on Christmas; Will BTC Hit $25k in 2020?

Bitcoin has hit a new ATH today at $24,720. Grayscale Bitcoin Trust meanwhile holds 607.27k BTC.

Bitcoin is looking ready to smash $25,000 on Christmas. A new day, a new ATH is the theme of 4Q20 for the BTC.

Given that the world’s largest cryptocurrency is on a price discovery, after breaking the 2017 peak of $20,000, it is what Bitcoin is now all about.

The week started on a red note and we dropped to $22,100 but ever since hitting a new peak, these small pullbacks BTC have been seeing have been reversed very shortly.

This week has been in contrast with the last week when BTC went from $18,000 to last weekend’s $24,300 high. Trader and economist Alex Kruger said,

“The crypto market became extremely levered up since the 20K breakout, which can be appreciated in futures basis and open interest spiking across the curve, and implied volatility spiked higher as traders repriced. High leverage translates into weaker hands and makes price vulnerable to large corrections. That is why we have been seeing such large two-way price moves since 20K. This is normal given such market dynamics.”

Strong Accumulation

To celebrate Christmas today, Bitcoin is looking to break through multiple levels. After yesterday’s brief trace to $22,600, we are onto new heights with a 5.5% spike and over a $1,000 green candle.

But the volume is currently low at just about $4.14 billion.

“BTC will break $25k without retesting $21k,” is what Ki Young Ju, CEO of data provider CryptoQuant expects to happen.

An interesting facet is the number of addresses holding at least 1 BTC on Christmas Eve.

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Source: Glassnode

These numbers have been consistently going up ever since the beginning of the Bitcoin, with the 2018 bull market exception when they saw a small drop. It was in December of 2018 that bitcoin bottomed at around $3,200.

Gobbling up Every Dip

Amidst all the price weakness, institutional buyers have been scooping off these dips in BTC that are followed by sharp reversals.

Coinbase has been seeing big outflows lately, reflective of massive OTC deals. On Wednesday, it hit 24,000 BTC, and then yesterday another big outflow was recorded from the San Francisco-based cryptocurrency exchange, as per CryptoQuant.

Everyone wants in on Bitcoin in the current uptrend. ByteTree founder Charlie Morris has “identified 50 companies, typically in the tech space, with surplus cash,” which are growth companies but not high dividend payers presenting a huge opportunity for BTC, if they decide to follow the same path as MicroStrategy and Square.

Also, Grayscale AUM has reached $16.4 billion while its BTC holdings have climbed to 607.27k BTC, representing 3.2% of Bitcoin’s circulating supply.

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Author: AnTy

Bitcoin Uptrending on the Weekend; But Not Everyone Wants to Bet Against the Brute Force of Billionaires

After yesterday’s drop to $17,600, today Bitcoin is back around $18,500.

Given it’s the weekend and the Bitcoin market is being led by US investors, with only $2.44 billion in ‘real’ volume, BTC is keeping around $18,450.

“Bitcoin looks like it could be ready to range higher over the weekend,” noted Hxro Labs. “If it manages to break into the VPVR value area around $18400, expect to see it trend up to the Point of Control ($19,086) shortly after.”

Compared to Bitcoins’ gains, ETH only managed to get to $560 while other altcoins are rallying much harder, including BASE (132%), NEM (25%), HAKKA (20%), YFI (12%), AAVE (11%), Monero (10%), IOTA (9%), Cardano (7%), and Litecoin (6%).

However, it’s still not known in which direction Bitcoin will move next. Many expect the pain to continue and even get us a better ‘buy the dip’ opportunity, while others expect the momentum to take us upwards.

As one trader noted, “One of the reasons I forfeited on the idea to get another significant short position is that I don’t want to be betting against brute force of billionaires.”

It has only begun

2020 for Bitcoin has been all about institutions; everyone wants a piece of the largest digital asset. It’s just that a few of them have revealed their positions while many are expected to be doing it without public disclosure.

“Reality is that I don’t know what will happen from here. Big cash flows are entering Bitcoin. Technicals that say downside is possible can be blown out of the water, whilst we should also not forget that institutionals don’t dictate bitcoin entirely, yet,” wrote the trader on Twitter.

Wall Street legends Stanley Druckenmiller, Paul Tudor Jones, Bill Miller, and others like Mexican media billionaire Ricardo Salinas Pliego have been endorsing Bitcoin. After influential money manager Rick Rieder said Bitcoin “is here to stay,” Larry Fink, CEO of BlackRock, also noted that this untested and small market has “caught the attention and imagination of many people.”

However, “the adoption of Bitcoin by institutional investors has only begun,” as written by the analyst team of JPMorgan led by Nikolaos Panigirtzoglou.

Christian Armbruester, the founder of Blu Family Office, a London-based investment firm for wealthy clients, told Bloomberg that he wishes he’d bought more BTC, which he dabbled in a few years ago.

“We’re now looking for trading opportunities in a very exciting field,” said Armbruester, who manages $670 million for Blu Family Office.

Thanks to currency devaluation

This traction has been particularly the result of central banks and governments flooding economies with cash and dropping the interest rates to zero and sub-zero to address the coronavirus pandemic.

As we reported this week, first, ECB announced a $600 billion COVID-19 stimulus only for German Chancellor Angela Merkel to unleash another monstrous fiscal stimulus package to pump €750 billion directly into the economy, the very same day.

“Normally in times of crisis people run to cash but who in their right mind wants to be cash-rich at a time when major economies are devaluing their currencies?” says Kevin Murcko, the founder, and CEO of CoinMetro, an Estonia-based crypto exchange.

Even Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, said cash is trash and bitcoin can act as an “interesting” investment diversifier.

“You could say that Covid-19, the U.S. election, Brexit, and, well, the entirety of 2020 have altered the way many in traditional finance view the value of digital assets,” Murcko added.

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Author: AnTy