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 in one link.
Top Stories This Week
Bitcoin price at $ 16,000 and beyond? Here are the cases of bears and bulls
We are undoubtedly in a bull market right now. This week, Bitcoin hit $ 16,000 for the first time in years.
Even this weekend’s volatility hasn’t been enough to detract from BTC’s momentum. Although the prices dropped abruptly At $ 15,670 overnight on Sunday, traders swiftly stepped in to defend $ 16,000.
It is exceptionally rare for bitcoin to do this well. The world’s largest cryptocurrency was only closed at the top $ 16,320 in 12 days in its history – only 0.28% all the time.
The question now, of course, is whether BTC’s strength will be sustained, considering how far it is from surpassing the current all-time high of $ 20,089.
Analysts at IntoTheBlock say there is little resistance between them $ 16,300 and $ 18,750This indicates that another uptrend is possible.
However, since “extreme greed” flashes in the Fear & Greed Index, Cointelegraph employee Michaël van de Poppe warns against a correction is almost inevitable in the short term.
Fund managers are offering $ 1M bets that fail to meet Bitcoin’s S2F model
PlanB, the inventor of the stock-to-flow model, made their claim that BTCs The best days are ahead of usand said he had “no doubt at all” that bitcoin prices will have reached $ 100,000 to $ 288,000 until December 2021.
His model has created controversy over the years, and now a hedge fund manager is inviting S2F enthusiasts to put their money where they please.
Eric Wall, Chief Investment Officer at Arcane Assets, is offering a $ 1 million bet that Bitcoin won’t be within 50% of PlanB’s target range by 2025, let alone next December.
“This is not a joke. I am willing to lock up the money for it with a third party whom we both trust, and so must you,” he wrote.
DeFi Chances of Winning: Total Users Increase 55% in Just Six Weeks
October was a grim month for many decentralized financial brands. Faced with heavy losses, some hastily announced that the DeFi bubble had really burst.
But wait a minute. Data from Dune Analytics shows that activity across the industry has grown steadily – with increasing user numbers 55% since the beginning of October.
Loan protocol compound and decentralized exchange dYdX were among the strongest winners from DeFi and increased their user base by in the last 30 days 250% and 50%, respectively.
Again this week, research by IntoTheBlock indicated that institutional money is flowing into DeFi – with Yearn.finances YFI being one of the main beneficiaries. On-chain transactions of $ 100,000 or more have increased by 282% in the past week, including almost $ 134 million Worth the activity on Tuesday alone.
PayPal’s crypto trading service goes live in the US.
The wait is over. PayPal is now available to all eligible US customers to buy, sell, and hold Bitcoin, Ether, Bitcoin Cash, and Litecoin.
Crypto purchases are limited to $ 20,000 a week – twice as much as originally announced $ 10,000 – and customers should be informed about the new services in the coming days. No fees will be charged for crypto transactions until the end of the year.
These features are expected to be introduced worldwide in early 2021, as will those of the e-commerce platform 26 million Merchants will soon also be able to accept crypto as a payment method.
It will be interesting to see if the rollout will encourage greater adoption of crypto among the masses, especially given the recent surge in BTC. Google Trends data suggests that retail interest in the Bitcoin boom has been low lately, suggesting that institutional investors have boosted cryptocurrency.
The EU will decide on the digital euro in January 2021, says the ECB President
The President of the European Central Bank, Christine Lagarde, said the bank should take a decision on the introduction of a digital euro early next year.
However, she stressed that the ECB was not “in the running for the first” when looking for a digital central bank currency.
Pointing out that the institution is looking to promote a central bank digital currency, she added: “My guess – but this is a decision that will be made together – is that we may be going in that direction.”
And Lagarde also announced that it will likely take “two, three, four years” for a digital euro to see the light of day.
A report from Deutsche Bank warned against this this week not urgent approach about CBDCs might not be good enough.
Germany’s largest banking institution said it was confident that CBDCs will replace cash in the future, and said the US and Europe could face ramifications if it doesn’t catch up now.
“You might find that your companies are being forced to adopt other countries’ digital currencies and policies as payment media,” Deutsche Bank wrote.
Winner and Loser
At the end of the week, Bitcoin is at $ 16,036.69, Ether at $ 455.47 and XRP at $ 0.27. The total market capitalization is 459,967,203,314 USD.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week SushiSwap (94.55%), THORChain (72.34%) and Uniswap (50.27%). The top three altcoin losers of the week are HedgeTrade (-14.86%), The Midas Touch Gold (-13.63%) and Augur (13.35%).
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“XRP would have been declared as security if the SEC had understood cryptos. This is a classic case of a market being manipulated by a bag holder. “
Peter Brandt, experienced dealer
“There’s a lot of headroom for upside movement. Most of the profits come in the year after the halving, and we are seven months after the halving this year, and Bitcoin is doing what it should be doing.”
Brian Kelly, BK Asset Management
“This is the death knell for Bitcoin. It was fun while it lasted. $ 3k here we come. “
“Many levels below the current price are untested in the weekly timeframe. A healthy way to build a new cycle is to backtest previous levels of resistance as new areas of support. “
Michaël van de Poppe, Cointelegraph Analyst
“Are you looking for confirmation that Bitcoin whales are convinced of their fortune? The number of addresses with at least $ 10,000 BTC has just hit a 2020 high of 111. Plus, addresses with $ 1,000 to $ 9,999 BTC are now just 6 below the ATH of 2,135 wallets. “
“[In January 2021] We will make the decision as to whether we will continue with the digital euro or not. My guess – but this is a decision that is made together – is that we may be going in that direction. “
Christine Lagarde, President of the European Central Bank
“#Apple could generate shareholder value of $ 100 billion or more if they integrate #Bitcoin with Apple Pay, add a secure crypto wallet to the iPhone, and buy #BTC with their treasury reserves.”
Michael Saylor, CEO of MicroStrategy
“I’ll bet $ 1,000,000 that the S2FX model will be broken in less than five years. That’s no joke. I’m willing to lock the money up with a third party we both trust, and so must you. I define “broken” = it didn’t even reach 50% of its target range. “
Eric Wall, Chief Investment Officer of Arcane Assets
“If you have not reported that you have returned Bitcoin or other virtual currencies in your past, or provided an incomplete or misleading picture of your cryptocurrency holdings, now is the time to take action to correct it.”
David W. Klasing’s tax office
“People ask if I still believe in my model. To be clear, I have no doubt that #bitcoin S2FX is correct and #bitcoin will tap between $ 100,000 and $ 288,000 before December 2021. “
Forecast of the week
Macro factors could bring Bitcoin to a market cap of $ 1 trillion, the strategic investor says
Lyn Alden believes that Bitcoin’s growing network effect, coupled with favorable macroeconomic factors, could bring market capitalization to $ 1 trillion in the next few years.
The strategic investor said the environment caused by the coronavirus pandemic is favoring Bitcoin.
Central banks have been forced to print money to shield their economies recently while interest rates have been at all-time lows.
All of this makes scarce assets that hold their value in an inflationary environment, like gold and bitcoin, far more attractive.
She assumes that there will be a significant excess of capital from traditional assets into the world’s leading cryptocurrency in the coming years.
FUD of the week
US law firm says IRS is coming after Coinbase users avoiding taxes
If you are a Coinbase user in the US, listen.
A California tax agency has warned that the IRS is stepping up its efforts against those who fail to comply with tax and reporting requirements.
Klasing Associates said, “If you have not reported Bitcoin or other virtual currencies in your past returns, or submitted an incomplete or misleading picture of your cryptocurrency holdings, now is the time to take action to correct it . “
The accountants added that it was too late to make changes once an audit or criminal tax investigation began.
The company’s warning stemmed from Coinbase’s first transparency report, which was released back in October. It was said that the hundreds of requests for information submitted by US agencies such as the IRS should serve as an “important wake-up call” for crypto owners.
“This data makes it clear that the IRS is requesting information from Coinbase to specifically compare it to its own tax records and look for inconsistencies where holdings were not reported to Coinbase in taxpayers’ tax returns,” the company added.
Sam Bankman-Fried believes that even ETH 2.0 cannot handle DeFi’s potential growth
Ethereum is about to launch a brand new blockchain that will significantly increase the number of transactions per second it can process. According to Sam Bankman-Fried, even this upgrade is not future-proof.
The co-founder of the FTX exchange has claimed that Ethereum 2.0 cannot handle the continued growth in decentralized funding as transaction fees have already skyrocketed.
He told that Defiant Podcast that Ethereum withheld DeFi and the only solution was to build on top of other networks.
Bankman-Fried claims to have tested more than 30 blockchains, including Ethereum, before deciding to build his DeFi project Serum on the Solana blockchain because of its speed and infrastructure.
He also predicted that DeFi could one day be used by 1 billion people worldwide, and said radical measures are needed to ensure blockchains can cope with such a user base. The entrepreneur set out what is needed and added: “We are not only 100 times faster than Ethereum, but also a million times faster than Ethereum.”
Crypto crimes fell in 2020, but DeFi hacks are on the rise, the report warns
Cryptocurrency-related crimes have slowed down in 2020 … but the decentralized financial sector has become a new hotbed for hacks and theft, according to CipherTrace.
The blockchain analytics firm announced that total losses from crypto theft, hacks and fraud in the first 10 months of 2020 fell from $ 4.4 billion in 2019 to $ 1.8 billion.
While these statistics seem very encouraging at first, they don’t tell the full story. DeFi hacks were “practically negligible” in 2019, but now account for 20% of all losses.
“Companies and individuals have brought DeFi products to market that have not passed security screening and validation. […] So people are realizing that there is a weakness here, ”said Dave Jevans, CEO of CipherTrace.
Best Cointelegraph properties
When the Bitcoin price rises, the institutions lose digital assets
Institutional interest in Bitcoin continues to rise as optimistic sentiment about BTC reigns.
Simple in Practice: Crypto education is key to curbing phishing scams
Although wallet operators play a huge role in protecting funds, customers also need further education to avoid phishing scams.
Silence isn’t golden: OKEx is still calm when customers are looking for answers
The way OKEx has handled its nearly month-long withdrawal ban has puzzled and angry many of the company’s loyal customers.