Comes every sunday Hodler’s digest will help you keep track of every single important message that happened this week. The best (and worst) quotes, highlights of adoption and regulation, leading coins, predictions, and more – one week on Cointelegraph all in one link.
Top Stories This Week
The bulls keep racing as Bitcoin hits a new 2020 high of $ 15,950
It was another extraordinary week in the crypto markets. Over the course of Thursday, BTC rose more than 10%. As well as breaking $ 15,000 For the first time since January 2018, the world’s largest cryptocurrency peaked at $ 15,950.
To understand the importance of this, data from Messari shows that BTC was only above this price point for 0.4% its existence. A rare occurrence.
“People will never say Bitcoin is dead again,” said Barry Silbert, CEO of Grayscale, approvingly.
Cointelegraph analyst Michaël van de Poppe said it was Bitcoin just before the last hurdle before a new all-time high can be reached, with a final zone of resistance in between $ 15,800 and $ 16,800 be in the way.
However, he warned: “The likelihood of a breakthrough all at once is not high as the price of Bitcoin has already risen by more than 50% in the past few weeks.”
Not all analysts agree. Some believe in BTC’s dazzling rally can not stop at the $ 16,000, with the number of Bitcoin held on exchanges continuing to decline.
Three Ways Bitcoin’s Price and Stocks Can React to a Biden Presidency
Bitcoin has maintained a reputation as a “safe haven,” which means that during times of uncertainty, investors tend to flock there.
We saw uncertainty from the bucket load this week. BTC rose steadily when the election result in the US on Wednesday was not clear and ballots continued to be counted. Donald Trump also claimed without evidence that many votes were fraudulent.
But look what happened on Saturday when major news outlets officially projected Joe Biden to be the next President of the United States. Bitcoin fell 5.67% in the hours that followed. And then it recovered in less than 24 hours.
So does this mean the crypto markets fear a Biden presidency? Do you love the idea? Not sure what to think? Or are we just seeing heat leave the market after the results are clearer? And what’s next for BTC?
Well, choosing Biden increases the prospect of a stimulus package by the end of the year – and that could have a positive impact on Bitcoin and increase investor appetite for risky assets. Analysts also expect the US stock market to rebound after the results are confirmed.
There’s something else we don’t know: the president-elect’s views on Bitcoin. “Right now it’s really not big enough to warrant his attention.” Jake Chervinsky from Compound Finance said.
At $ 15,000, Bitcoin is now bigger than PayPal, Coca-Cola, Netflix, and Disney
It seems like a lifetime ago now, doesn’t it? At the time, Bitcoin was around $ 10,000 with a market capitalization of around $ 190 billion.
Fast forward to now and BTC appears to have found support with $ 15,000. This has also contributed to Bitcoin’s market capitalization increasing by 50% to $ 280 billion – and that means that the world’s largest cryptocurrency is now more valuable than most large companies.
Data suggests that BTC’s valuation would be the 18th largest when compared to publicly traded companies in the US. This dwarfs Verizon, PayPal, Disney, Netflix, and Bank of America.
Bitcoin could now aim to overtake Home Depot, which ranks 17th with a market cap of 17 $ 306 billion. If BTC continues to rise and occupy 16th place, it would also downgrade the Mastercard – a strong signal as to where the future of money lies.
However, BTC has a long way to go before it can hit Apple’s $ 2 trillion market cap. This makes BTC the most valuable company in the world. In order for Bitcoin to dwarf this, we need a price per coin of $ 120,000.
Binance’s DeFi index crashes 60% as Bitcoin overshadows altcoins
Bitcoin’s time in the spotlight was bad news for altcoins … and it seems to have taken off the shine from DeFi, too.
Binance’s DeFi Composite Index is now trading below $ 400 – a 60% drop from its all-time high. To make matters worse, most DeFi tokens have deleted 70% to 90% of their profits since the beginning of September.
The exchange also said it was an “overwhelming month” for large-cap cryptos like ETH, XRP, BCH, and LTC, all of which only made “modest gains” in October.
Still, it’s not all doom and gloom for DeFi. While the value of governance tokens has lost its importance (which may not be surprising given that some of them, such as YFI, were designed to be worthless), the total value locked in logs has not crashed. It currently stands at $ 12.16 billion – not far from the record highs at the end of October.
Extreme Greed and FOMO grab hold of BTC as $ 16,000
Bitcoin’s surge could tempt traders to take profits, and all of this could lead to a retreat.
The bigger danger, however, is that Bitcoin prices will hit their highest level in 33 months and greed re-invades the crypto market.
The latest rating on the Fear and Greed Index shows a score of 82and classified it firmly in the “Extreme Greed” category. The score hit earlier this week 90. The last time it was this high was last June when it reached 92 as BTC to 2019 highs of $ 14,000.
As a billionaire and former hedge fund manager, Mike Novogratz noted: “The hardest thing in a bull market is to sit down. My buddy Paul Jones calls it the “pain of profit”. This is a $ BTC bull market. Your job is to sit on your hands and lock your phone away. “
Winner and Loser
At the end of the week, Bitcoin is at $ 15,336.80, Ether at $ 452.55 and XRP at $ 0.25. The total market capitalization is $ 443,512,630,806.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week Aave (76.51%), HedgeTrade (56.00%) and Synthetix (49.09). The top three altcoin losers of the week are ABBC coin (-16.15%), CyberVein (-13.61%) and Crypto.com coin (-13.13%).
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“All eyes may be on Bitcoin and its surge above the $ 15,000 level. However, the recent development update regarding Ethereum may see some capital pouring back into Ethereum and its wider ecosystem. “
Denis Vinokourov, Bequant Head of Research
“Regulation will certainly be a focus in the crypto space next year. It is only a matter of time before more jurisdictions abide by regulations. “
Sasha Ivanov, Waves CEO
“All in all, sentiment is very bullish at this point. The price is at a multi-year high and there is only one major resistance level at $ 16,000 before a new all-time high comes into play.”
Michaël van de Poppe, Cointelegraph Analyst
“Thank you for flying with us today, ladies and gentlemen. On the left you can see that we have just passed $ 15,000 #Bitcoin. On the right side you will see $ 16,000 Bitcoin. Please buckle up when we rise to the moon. “
Cameron Winklevoss, Gemini co-founder
“Rising prices during an uptrend with rising open interest could also lead to new money coming into the market.”
Forecast of the week
Bitcoin sees a record of 100 days above $ 10,000 as an analyst views 2021 as “parabolic”
If all that excitement wasn’t enough, Bitcoin officially broke a new record after trading above $ 10,000 for 100 consecutive days.
Now a well-known analyst believes BTC could go “parabolic” in 2021 if it follows its behavior after previous halving.
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, says it’s a simple matter of supply and demand. The number of new Bitcoin mines fell again in May, but institutional investors’ appetite for crypto is growing.
“New highs are the next possible iteration and may just be a matter of time, unless something we don’t anticipate starts the trend towards greater acceptance and demand versus limited supply,” he predicted.
FUD of the week
“I Destroyed My Life” – Uniswap Merchants spend $ 9,500 in fees on $ 120 transactions
Aside from Bitcoin, let’s check out some FUD stories. And we start with a clumsy trader who says he “destroyed” his life after accidentally paying $ 9,500 in fees for a $ 120 Transaction on Uniswap. Oops.
On Reddit, ProudBitcoiner revealed that they accidentally collapsed 23.5172 ETH in fees after confusing the Gas Limit and Gas Price input fields in the MetaMask wallet.
Uniswap is a non-custody exchange for ERC-20 tokens. This means that trades are executed directly from a user’s wallet so that they can manually set the gas prices they are willing to pay for a transaction.
Other Reddit users are now calling on MetaMask to put in place security measures that force users to confirm a transaction if the gas price entered is significantly higher than the estimated price calculated by the wallet.
The QuadrigaCX trustee has only $ 30 million to settle claims valued at $ 171 million
Ernst & Young has received $ 171 million Claims from customers who lost their money when the doomed crypto exchange QuadrigaCX collapsed. There’s only one problem: the trustee only has $ 29.8 million in funds to distribute.
More than 17,000 Users filed claims – with $ 90.2 million in Canadian dollars, 24,427 BTC, 65,457 ETH and 87,031 LTC among the missing assets.
Gerald Cotten, the founder of QuadrigaCX, died in India of complications related to Crohn’s disease. He was the only one with keys to the exchange’s wallets – and in recent months speculation has grown that he may not be dead at all.
Ernst & Young also found that Cotten was trading in client money, which likely contributed to the asset-liability discrepancy.
For the first time since 2015, $ 1 billion has moved out of the Silk Road purse
An anonymous crypto user has just moved 69,370 BTC from an address connected to the Silk Road Darknet Market.
According to CipherTrace, the transfer occurred in two transactions. The crypto user sent 1 BTC first, likely as a test transaction, before moving the bulk of the coins.
The blockchain intelligence firm speculated that the anonymous user conducted the transactions “to keep up to date with the Bitcoin network” by switching between address formats.
It’s possible that hackers were responsible for moving the funds.
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