Comes every saturday 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
Bitcoin’s price correction continues, hoping for $ 20,000 in 2020
What a difference 10 days makes. At the beginning of the month, the markets were euphoric as Bitcoin hit a new all-time high. But in a few places this week BTC is down 10% from those levels and hit lows of $ 17,600 – the lowest level since November.
The Prospect of new crypto regulation in the US Perhaps they scared traders, and it is indeed worth noting that stocks have cooled this week too.
Cointelegraph analyst Michaël van de Poppe raised hopes $ 20,000 in 2020 seem to have been dashed, in writing: “Overall, the downtrend will see lower and lower highs and lows until a clear bottom is found.”
In order to become bullish in the short term, BTC has to reclaim that $ 18,600 to $ 18,800 Area of support that will invalidate the bearish divergence and any bearish outlook for the moment.
Not everyone is pessimistic. Some price analysts expect that BTC’s downtrend will be limited and a gradual uptrend will follow as we near the end of December. Denis Vinokourov, head of research at Bequant, predicted that uncertainty about Brexit and the US stimulus package could have a positive impact on BTC in the short term.
Guy Hirsch, CEO of eToro in the US, added: “We may see a slightly larger decline towards the end of the year, but many investors see these drops as a buying opportunity and are likely to keep Bitcoin from correcting as dramatically as it was last up over $ 19,000 as of December 2017. “
MicroStrategy completes sale of $ 650 million bonds to fund next Bitcoin purchase
Institutions continue to grab bitcoin like there’s no tomorrow. This week, MicroStrategy announced that it had sold $ 650 million convertible senior notes to buy even more BTC. That’s 60% more than that $ 400 million originally reported.
Even before that purchase begins, the company sits up 40,824 BTC value $ 751 million at current prices. This corresponds to a gain of approximately $ 275 million from the purchase price.
Other institutions also join the party. The insurance company MassMutual bought bitcoin worth $ 100 million for its general investment account – a drop in the ocean considering it has a war chest of $ 235 billion.
Meanwhile, the number of major banks announcing plans to offer crypto custody services is increasing rapidly and rapidly. Standard Chartered, one of the UK’s largest banks, said it will Introduction of a platform for institutional investors in 2021.
However, MicroStrategy’s bitcoin binge has drawn criticism. Citi analysts downgraded the stock from “neutral” to “sell” as fears the company is now overexposed and investors are at significant risk due to their “disproportionate focus on Bitcoin”.
Bitstamp apologizes after posting a report calling XRP “toxic waste”.
Messari released a (rather ridiculous) report on crypto trends for 2021 this week, but the colorful language got one of his sponsors in trouble.
The company’s founder and CEO, Ryan Selkis, described XRP as “toxic waste” and branded Bitcoin Cash and Bitcoin SV as “heaps of s -“. He wasn’t that nice to Stellar and Litecoin either.
Overall, the report used the word “f -” five times and “s -” nine times – something Bitstamp didn’t know when it shared the report with its followers.
After some of its users received a backlash, the exchange tweeted: “We did not examine the 130-page report thoroughly enough before it was published. It’s up to us, we should have done better. “
Selkis said he regretted Bitstamp was put in that position but stood by his decision to use a “no-BS tone”, adding: “Humor is the only thing that makes people read 134 pages in a world of 280 characters.”
Oh Diem: Lawsuit threatened over Facebook’s Libra rebranding
Facebook hoped the Libra to Diem rebranding would usher in a fresh start for its controversial stablecoin project – and eventually convince regulators that there is nothing to worry about. But the headaches keep coming back for the tech giant.
It now emerges that there is another fintech company called Diem, and executives say they were “baffled” by the name change because it could create confusion for customers and “could have a significant impact on our growth.”
Chris Adelsbach, co-founder of Diem, said legal action is being considered, adding: “It wouldn’t have taken that much effort if Facebook had found out if there was another financial services diem.” […] They apparently believed that “we can just destroy them, we are Facebook”. “
German politicians weren’t too impressed also with the new name, with the warning from Finance Minister Olaf Scholz: “A wolf in sheep’s clothing is still a wolf. It is clear to me that Germany and Europe cannot and will not accept market entry as long as the regulatory risks are not adequately taken into account. “
With all that said, Facebook CFO David Marcus remains confident that the Diem Stablecoin and Novi wallet can hit the market next year and is calling on regulators to abandon the project. “the benefit of the doubt. ”
Awkward the US Federal Trade Commission filed a lawsuit against Facebook Days later it was alleged that the company had engaged in anti-competitive practices.
Circle’s CEO joins the appeal against the Treasury Department’s proposal to ban self-hosted wallets
Jeremy Allaire has warned that the Treasury Department’s proposed ban on self-hosted wallets would not address industry risks, undermine American competitiveness, and provide “economic and industrial advantage” for Chinese companies.
The co-founder of Circle, the peer-to-peer payments company, has spoken out against the alleged restrictions along with several members of Congress.
Four members of the Blockchain Caucus of Congress – Warren Davidson, Tom Emmer, Ted Budd and Scott Perry – urged Treasury Secretary Steven Mnuchin to participate in the face of fears that the US would not participate in the “technological innovation that is currently happening across global finance can rethink the system. ”
The letter also warned:: “Such a regulation could actually prevent the finance department from preventing illegal actors from exploiting the financial system within both the traditional banking system and the digital asset ecosystem.”
Winner and Loser
At the end of the week, Bitcoin is at $ 18,698.08, Ether at $ 562.67 and XRP at $ 0.50. The total market capitalization is $ 545,775,291,506.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week Block stack, CyberVein and Nexo. The top three altcoin losers of the week are Sufficient, Numeraire and Horizons.
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“Obviously, miners sell a lot of BTC these days. I’m still long but this is not a good signal in the short term. “
Ki Young Ju, CEO of CryptoQuant
“Yesterday we released a syndicated report from Messari, some of which contained language and content that did not reflect Bitstamp’s beliefs or values. We’re sorry about that. “
“Bitcoin Cash can’t stop struggling and forking, and it becomes a soap opera (or underage telenovela) with Cryptos formerly important persons. “
Ryan Selkis, Messari CEO
“Humor is the only thing that makes people read 134 pages in a world of 280 characters.”
Ryan Selkis, Messari CEO
“In the next few decades there will be more digital assets of all kinds. I anticipate there will be many opportunities to enable fair exchanges between different types of assets and move from one ecosystem to another. “
Vitalik Buterin, Co-founder of Ethereum
“We are close to what I like to see as the broadband digital currency moment.”
Jeremy Allaire, Circle CEO
“I think a new investor could invest 5% in Bitcoin. Bitcoin doesn’t go back to zero […] It could certainly go back to $ 14,000 – you could lose 30-40%, but you won’t lose 80-90% of your money. “
Mike Novogratz, Founder and CEO of Galaxy Digital
“I think there are some issues that are still preventing the majority of institutional investors from freely allocating capital for Bitcoin.”
Robert Li, Draper Dragon Analyst
“We believe that ultimately the cryptocurrency will be powered entirely by clean electricity, which will remove the carbon footprint and drive the global adoption of renewable energy.”
Jack Dorsey, Square CEO
“Facebook wouldn’t have gone out of their way to find out if there was another financial services diem.”
Chris Adelsbach, Diem co-founder
“A wolf in sheep’s clothing is still a wolf.”
Olaf Scholz, Federal Minister of Finance
Forecast of the week
According to JPMorgan, Bitcoin will devour gold’s market share
According to analysts at JPMorgan Chase, the increasing adoption of BTC as a reserve asset in the mainstream has a direct impact on gold.
Quantitative strategists believe that Bitcoin’s digital gold narrative will distract investors from precious metals – possibly for years to come.
In a note to clients, JPMorgan analysts added: “The adoption of Bitcoin by institutional investors has only just begun, while the adoption of Bitcoin by institutional investors is very advanced. If this medium to longer-term thesis proves correct, the gold price would suffer structural headwinds in the years to come. “
Also this weekTakis Georgakopoulos, head of wholesale payments at the investment bank, confirmed that JPMorgan has “softened” its stance on Bitcoin in recent years.
FUD of the week
France bans anonymous crypto accounts to prevent money laundering
In France, new restrictions are being put in place to ban anonymous crypto accounts in the hopes that digital assets will not be used for money laundering and terrorist financing.
While Finance Minister Bruno Le Maire said digital assets offer “significant business opportunities,” he also warned that crypto carries significant risks.
In September 2020, 29 people were arrested on suspicion of using crypto to send funds to al-Qaeda and Islamic state fighters in Syria.
The “low-income” founder of the Oyster Protocol allegedly owned a $ 10 million yacht full of gold bars
The founder of a now defunct cryptocurrency was arrested and charged with a “multi-million dollar tax evasion program”.
Amir Bruno Elmaani – also known as “Bruno Block” – allegedly claimed he earned only $ 15,000 on his 2017 tax return and earned nothing in 2018. Even so, he is charged with buying a $ 10 million yacht, two houses, and $ 700,000 in hardware stores.
The 28-year-old is said to have kept gold bars in a safe on his yacht and used large sums of money to cover his personal expenses.
If convicted, Elmaani faces a five-year prison sentence for any tax evasion.
“After this arrest, he will soon be sailing nowhere,” added FBI assistant director William Sweeney.
99% fake execs exchange market manipulation fees
Executives of what was once the third largest cryptocurrency exchange in South Korea have been charged with market manipulation allegations.
Prosecutors are preparing a case against Coinbit chairman Choi Mo and two unnamed executives for fraud and forgery.
In a series of raids in August, police searched and seized a number of Coinbit-related objects. At the time, the authorities estimated that 99% of the exchange’s volume had been forged through laundering of BTC and other cryptocurrencies and that those responsible for the exchange’s fraudulent activities had grossed $ 84 million.
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