Segurem seus cavalos! $9K Bitcoin queda de preço não muda a tendência, dizem os dados

Os comerciantes estão se assustando com a queda dos preços atuais de 27% de Bitcoin, mas os dados históricos mostram que correções bruscas são naturais mesmo durante os mercados de touro.

Depois que o preço da Bitcoin (BTC) flertou com um pico de $42.000 em 8 de janeiro, ele se estabilizou em uma faixa de aperto entre $39.000 e $41.500 por dois dias e a estrutura do galhardete nos prazos mais curtos sugeria que uma fuga para $45.000 era uma possibilidade.

Tudo isso mudou de repente em 10 de janeiro, pois o suporte de $39.000 não conseguiu se manter e o preço da Bitcoin entrou com uma correção íngreme.

Uma queda de 26,6%, que foi cruel e turbulenta, fez o BTC baixar para US$ 30.100 nas 30 horas seguintes e US$ 1,5 bilhão em liquidações em cascata nas bolsas de derivativos impulsionou a correção. Curiosamente, isto ocorreu exatamente quando os juros abertos sobre os futuros do BTC atingiram um máximo de US$ 12,7 bilhões em todos os tempos.

Como mostra o gráfico acima, o BTC recuperou 11% uma hora após cair abaixo do nível de 28.000 dólares. O que pode ter surpreendido os comerciantes desta vez é o salto de 13% de $32.200 para $36.400 que criou um fundo falso.

Para entender se este é o caso, deve-se analisar a relação criptográfica entre os melhores negociadores e as liquidações por hora.

OKEx os melhores negociantes compraram a parte superior

Os dados fornecidos pelo intercâmbio destacam o posicionamento da rede dos comerciantes de longo a curto prazo. Analisando a posição de cada cliente no local, contratos perpétuos e futuros, pode-se obter uma visão mais clara se os comerciantes profissionais estão inclinados para a alta ou baixa.

Com isto dito, há discrepâncias ocasionais nas metodologias entre as diferentes bolsas, portanto, os telespectadores devem monitorar as mudanças ao invés de números absolutos.

Este movimento ocorreu quando a BTC quebrou a resistência de $37.000 e abriu caminho para $41.500. Portanto, os principais negociadores de Binance têm reagido principalmente após cada movimento de preços do BTC, em vez de tentar antecipar-se a ele.

Esta tendência reverteu à medida que o BTC perdeu o suporte de $39.000, e os principais comerciantes da Huobi reduziram seus 28% de vendas líquidas para 4%, numa tentativa de alcançar a base.

Por último, os principais traders da OKEx têm adicionado posições compradas (long), impulsionando o indicador de 1,00 (flat) nas primeiras horas de 8 de janeiro para uma relação de 1,79 favorecendo os longs nas primeiras horas de 11 de janeiro.

Estes comerciantes compraram o topo e foram os que foram fortemente liquidados, pois o preço do BTC caiu 26%. A relação entre longo e curto bateu novamente em 1,00 (flat), assim como o BTC bateu em $34.000 em 11 de janeiro.

Os comerciantes de Bitfinex também foram pegos de surpresa

Bitfinex reúne semanalmente dados sobre os lucros e perdas dos principais comerciantes, embora seja possível aos usuários „opt-out“ deste ranking. Durante as últimas 24 horas, os 10 últimos perderam um total de $153,3 milhões.

Perdas relevantes durante um acidente surpresa não devem significar que os comerciantes de Bitfinex tenham entendido tudo errado. Alguns comerciantes podem ter sido mal posicionados, mas em geral eles têm tido lucros durante o rally. A partir de agora, os comerciantes de Bitfinex estão de volta a uma posição „neutra“, de acordo com seus níveis históricos.

Dados fornecidos pelo intercâmbio mostram que a relação Bitfinex de longo a curto prazo aumentou de 2 para 9, favorecendo os longos períodos entre 25 de novembro e 21 de dezembro.

Para colocar as coisas em perspectiva, sua média móvel de 6 meses fica em 6, inclinando-se para os longos. Assim, considerando seus dados de alavancagem dos produtos de margem, estes comerciantes têm sido surpreendentemente lucrativos.

20% dos crashes são a norma e não a exceção

Também é importante considerar que a Bitcoin tem uma volatilidade média diária de 3,75%. Portanto, estas grandes correções devem ser esperadas.

A Bitcoin enfrentou um declínio intradiário de 50% em 12 de março de 2020, mas para aqueles pacientes que aguentaram esses períodos de baixa, seguiu-se um rally de 11x enquanto a moeda criptográfica caminhava de $3.600 para quase $42.000.

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PayPal’s daily crypto volumes surpassed $125 million with the latest Bitcoin rally

IN BRIEF

  • ItBit, which handles PayPal transactions, surpassed $125 million in daily transaction volume on January 7.
  • Transaction volume has grown exponentially since PayPal began supporting digital assets.
  • Volume is expected to increase as PayPal gradually immerses itself in this asset class.

Daily cryptographic transactions on PayPal have exceeded $125 million. These volumes are expected to continue to grow as the service expands.

PayPal’s transaction volume has exceeded $125 million, according to transaction volume data from ItBit, which manages transactions for the payments giant.

PayPal’s crypto volume skyrockets

The 24-hour trading volume on January 7 shows that trading volume reached a record level, with Bitcoin and Ethereum forming the majority. This represents a five-fold increase in transaction volume since PayPal recently began supporting encryption.

The ItBit exchange belongs to Paxos, which PayPal chose to manage its transactions in October 2020. Nomics‘ data shows a substantial increase in exchange volume since the collaboration. PayPal currently has about 340 million users, although most of them do not have access to the service.

The large volume suggests that PayPal could play a role in spreading the asset class to the general public. It is also expected to offer crypto genius services to its 26 million merchants in the coming months. Combined with a very optimistic market sentiment, PayPal could very well match its CEO’s high ambitions for digital assets.

With further updates and expansions expected soon, this could be the beginning of a flood of retail investors. Existing users can easily store Bitcoin on the platform, and this user base could become quite lucrative for the company.

Advantageous market position

ItBit’s growth in trading volume unsurprisingly accompanies the market’s bullish rally, which saw Bitcoin break through $37,000. Market capitalization has now surpassed $1 trillion, or about one-third of private gold investments.

Analysts have questioned whether PayPal’s entry into the market has had a significant impact on the market. Most agree that the real impact will not be visible until 2021, when the service will be integrated into the market. This year will also see the service expand internationally, with potentially more functionality in the pipeline.

PayPal’s support for encryption was considered a huge victory by the crypto community, which celebrated it as a sign of legitimacy. There were occasional criticisms, however, as some users reported being suspended after trading. PayPal has been working on adjusting purchase limits due to the huge interest in the service.

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Ethereum traded over $1,000 to reach maximum in three years

Ether (ETH) reached a three year high a few hours ago when it passed the $800 mark trading over $1,000 in cryptomorphic purses

Bitcoin (BTC) is currently capturing most of the attention in the world of crypto, while continuing in its record bull race. The leading digital currency reached a new all-time high (ATH) during the week after passing the $30,000 mark to reach $34,000 – its highest level since the first BTC was extracted on January 3, 2009.

However, while Bitcoin is setting new ATHs every few days, other altcoins have not been left behind.

The blockchain Ethereum’s native Crypto Engine and the second largest cryptomote in market capitalization, passed the $800 mark over the weekend to trade at $1,000. This is the first time Ether has reached the $1,000 mark since January 2018.

The rise to $1,000 pushed Ether’s market capitalization to $116 billion, losing only to Bitcoin. Its market capitalization is almost $100 billion higher than that of Tether (USDT), which replaced XRP as the third largest cryptomoeda in market value.

Ether’s rally coincides with growing institutional interest in cryptomeda. Recent data show that 39 new whale accounts with 10,000 or more ether have been added in the last two months. The entry of whales may signal a growing demand for ETH.

Last month, the Chicago Mercantile Exchange (CME) announced it would launch a future contract on ether. WEC-Futures on ETH will start on February 8 and each contract will consist of 50 units of Ether.

Market analysts believe that WEC’s entry into the Ethereum market shows that institutional demand is expanding to other leading altcoins.

Although Bitcoin experienced an electrical start in 2021, Ether’s performance in the last 24 hours outperformed that of the leading cryptomeda. The ETH has increased 33% in the last 24 hours, while the BTC rally has slowed, and is currently 2% below.

The price increase for Ether has not been as dramatic as Bitcoin. It broke $600 for the first time since May 2018 in November 2020. Ether hit the $700 mark the following month and had to wait until the weekend to reach $800. The second largest cryptomeda then went from $800 and $900 the same morning and kept its price above $1,000 in the last few hours.

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Bitcoin’s highs are „just getting started“

Mati Greenspan: Bitcoin’s highs are „just getting started“.

The analyst believes that price jumps of more than 250 percent could become the norm in the future.

In his new newsletter, the founder of Quantum Economics reiterates that Bitcoin’s recent jump above the US$23,000 mark, which saw a gain of almost 29 per cent within the last week, is not necessarily a Bitcoin Legacy sign that the market is „overheating“ and will soon crash as it did during its record run in December 2017.

„In our view, it’s just getting started,“ as Mati Greenspan writes accordingly. „We probably shouldn’t use old benchmarks to assess the current gains.“

Accordingly, a sharp rise does not necessarily indicate an all the more severe downturn; rather, a new normality of large price jumps could be establishing itself.

To this end, he explains:

„If demand continues to increase and supply continues to decrease, then it’s very conceivable that on some days we’ll see price jumps of 250% or even more.“

Greenspan also says that „no one in the world can say for sure“ when Bitcoin (BTC) will start to go down again, considering price values between US$23,800 and US$1m per coin conceivable.

Accordingly, he also sees Scott Milner’s forecast as quite realistic, according to which a price of 400,000 US dollars would be justified.

„Now that we have broken through the previous record high, there are no more landmarks in the price chart that would indicate a ceiling formation,“ as Greenspan explains the changed situation. He continues, „There will be a ceiling formation somewhere, of course, that’s for sure.“

Other voices in the crypto industry also see the current surge as evidence of sustainable growth for the market-leading cryptocurrency, with Catherine Coley, managing director of Binance.US, saying:

„As long as the US central bank and country governments around the world take the impact of inflation on their national currencies, there will be a swerve to Bitcoin that will lead to new record highs.“

At press time, Bitcoin is at US$22,863, up 9.8 per cent in the last 24 hours.

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Market capitalisation of Bitcoin to exceed that of gold, according to Winklevoss twins

The Winklevoss twins asked participants at the Singapore Fintech Festival to educate themselves about Bitcoin, predicting that BTC’s market capitalisation will exceed that of gold.

Bitcoin market capitalisation will outstrip gold, according to WinklevossBLOCKSHOW twins

Speaking during the Singapore Fintech Festival 2020 on December 7th, pioneering Bitcoin investors Cameron and Tyler Winklevoss reaffirmed earlier predictions that the price of Bitcoin will end at $500,000 per Bitcoin.

The twins said their $500,000 forecast is based on the assumption that Bitcoin’s market capitalisation will increase 40-fold in the future, exceeding the market capitalisation of approximately $9 trillion of gold .

Cameron pointed to the „tremendous amount of money printing that is happening“ in debt and trust regimes, and inflation concerns such as increased demand for „tangible assets“ like gold and Bitcoin.

Cameron says Bitcoin offers significant advantages over gold as a monetary commodity, such as its ease of transfer and immunity from external forces that influence the rate of its production.

Despite their optimistic outlook, the twins noted that the cryptomino sector has experienced a totally uneven geographical advance, with a lack of regulatory clarity impeding the growth of business and services around technology in many emerging economies.

However, they saw the promise of technology to keep the world without a bank, looking at a plan to expand the Gemini exchange in emerging regions.

They argued for legislators to use regulatory sandboxes to reduce the barriers faced by startups working with cryptomorphs, warning that heavy regulatory requirements can stifle innovation. Cameron said:

„Apple started in a garage in Silicon Valley, I think Facebook started in a dormitory […] you have to be careful that the burden is not so great that many people can’t innovate in this space. ”
Tyler also rejected the „provocative rhetoric“ of the cryptomaniac community about Bitcoin’s potential to make the legacy sector obsolete, saying that the growth of the cryptomaniac industry depends on collaboration with banks:

„If people want to buy Bitcoin, its correct value is generally not in the cryptomaps, because cryptomaps are new. So you have to build a bridge between the world and this new crypt world and you need banks to do that. ”
Despite the tremendous year of Bitcoin, Cameron predicts that the sector „is just beginning“. Tyler encouraged people to educate themselves about Bitcoin, saying:

„Pay attention to Bitcoin and crypto and educate yourself, because this is the biggest financial and technological revolution since the Internet itself. It’s not a passing fad, it’s here to stay – and it will transform money, the Internet and much of the world around it. And it’s just beginning. ”

Translated with www.DeepL.com/Translator (free version)

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This is what the crypto-economy will be doing in 2021

Silicon Valley and Wall Street showed in the last quarter of the year where the crypto economy will head in 2021. In addition to new groups of investors, it is also about new rules of the game. Why private keys are being forgotten and why a diversified storage strategy also makes sense for digital assets.

As we have already reported in detail , the current momentum in the crypto market is mainly coming from institutional investors. This means that large investors such as hedge funds, financial service providers and companies in particular are responsible for the rising prices of Bitcoin Evolution and Co. However, this new form of establishing and institutionalizing the crypto-economy also brings about changed rules of the game. What became visible in the last quarter of 2020 will accelerate further in 2021: the move away from self-custody from the investor’s point of view.

New whales and re-centralization of Bitcoin

With the emergence of these new major Bitcoin investors, there is a further centralization of Bitcoin, at least from a custodial perspective. So far, even the largest Bitcoin assets have been distributed relatively unevenly across a few wallet addresses, but these have often been privately owned. Should mean that a single Bitcoin investor has his private keys.

This is changing significantly with hedge funds like Guggenheim Macro Opportunity Fund or PayPal’s crypto service . It is true that through PayPal a further distribution of Bitcoin also takes place on the small investor side, and accordingly also a decentralization, but not from the point of view of „physical custody“.

It doesn’t matter whether you buy shares in a documented Bitcoin ETC from HANetf / ETC Group (ISIN: DE000A27Z304) or VanEck Vectors Bitcoin ETN (ISIN: DE000A28M8D0) or whether you load cryptocurrencies into your account via PayPal, you hand over access and control of your Bitcoin to a financial intermediary. Few players manage ever larger amounts of crypto currencies.

Who needs private keys?

While many institutional investors have no other choice but to accept the safekeeping offers, as they are not allowed to keep the private keys themselves, there is also a tendency that even small investors of the recent hour come less and less into contact with the option of self-safekeeping. The most user-friendly offers, regardless of whether PayPal, Revolut or the Bison crypto app from the Stuttgart Stock Exchange, only offer a custodial wallet in which the private keys are with the respective custodian.

Not only does the supply exert an influence on the demand, but it also shows, conversely, that a new, less idealistic, less state-critical or politically libertarian crypto-investor body is establishing itself. The mantra “Not your keys, not your coins” looks antiquated to them with a view to the year 2021 and its new offers.

In practice, decentralization and personal responsibility take a back seat. The motto is clear: You want to participate in the growth in value of digital assets as easily and conveniently as possible. However, self-custody does not belong to this rather pragmatic understanding of crypto.

The fruits of crypto corporate lobbying

The big players in particular are reinforcing this tendency because they don’t want to mess with politics and the regulatory authorities. The state has no interest in Bitcoin investors holding their own private keys. After all, the state doesn’t want you to keep your cash under your mattress or bury your gold in the garden. Accordingly, it can be assumed that the highly regulated and thus also centralized offers will be given the green light by politicians.

Basically, politicians can be grateful for any Facebook Libra or PayPal – even if they wouldn’t admit it – that guides new investors into a centralized, very controllable ecosystem. Really decentralized alternative offers through decentralized financial applications (DeFi), which work via a non-custodial wallet, have to be contained from the perspective of politics at all costs.

That now politicians like Olaf Scholz critical of Facebook’s Libra express , gives little sense in this context. If not long ago, the lobbyists from Facebook or PayPal in Brussels, Berlin or Washington will articulate the options clearly. To put it simply: either the politicians allow corporations with crypto ambitions and thus retain access to the transactions and users, or they prevent group crypto services and thus open the door to decentralized offers that are difficult to control.

The mere report that Facebook’s Libra would like to start with the first stable coins as early as January 2021 indicates that such an agreement has already been found.

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Uma garota compra Bitcoin: Maisie Williams se junta ao Rally Histórico

Apesar dos conselhos do Twitter, a Maisie Williams do Game of Thrones ainda comprou a Bitcoin.

Quando Maisie Williams, também conhecida como Arya Stark, Badass of Winterfell, vencedora do Game of Thrones (desculpe, Bran), pediu conselhos de investimento ao Twitter ontem, mais de 900.000 pessoas responderam.

Sua pergunta foi simples e elegantemente formulada, sem a necessidade de capitalização (Bitcoin é capital): „devo me alongar no bitcoin?“ E a resposta foi clara.

Não.

Mas Maisie Williams não é de se sentar em um castelo e deixar que você diga a ela para não comprar Bitcoin, pois seu preço acelera rapidamente em direção a máximos recordes. Ela não se senta e espera que a economia zumbi se desenrole. Não, Maisie Williams queria aquele BTC. Então, ela o comprou.

„Obrigado pelo conselho“, ela declarou à sua multidão de potenciais novos fãs, que estavam ansiosos para abraçá-la como uma de suas próprias fãs. „Eu comprei alguns de qualquer forma“.

É difícil dizer se o „de qualquer forma“ se referia aos resultados da votação ou ao comentário interminável que ela recebeu dos maximalistas da Bitcoin.

Como uma verdadeira Bitcoiner, Maisie não se importa com o que as outras pessoas pensam (a menos que concordem com sua avaliação de que a Bitcoin vai para 100 mil dólares). Os legumes são necessários para uma dieta saudável? Maisie só come carne agora, muito obrigado. A queixa do homem é uma coisa? Somente em Westeros.

É claro que ela não poderia ter escolhido melhor hora para pular a bordo (bem, exceto por todas as vezes que o preço da Bitcoin estava bem abaixo de 17.700 dólares, mas não se preocupe com isso). Bitcoin está em uma corrida épica de touros. Há um mês atrás, era em torno de 11.300 dólares. Agora, está batendo na porta de $18.000, e o preço máximo do mercado atingiu o máximo de todos os tempos hoje.

„Sim, temos Maisie“, pensou um pomp jubilante (talvez) a si mesmo. „Agora vamos pegar Jon Snow“.

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BTC-pris exploderar med 15%, handeln till nya höga nära $ 16K

BTC-priset fortsatte att höjas högre på fredagen inför en ytterligare nedgång i US-dollarn. Jämförelsekryptovalutan bröt motståndszonen på 15 500 dollar och handlades till en ny 2020-topp på 15 974 dollar på ledande platsbörser.

Bitcoin har nu stigit från lägsta nivåer på 11 200 dollar sett för bara några veckor sedan för att handla till 15 559 dollar under presstiden. Den ökningen markerar en vinst på 36,5% under tjugo dagar, vilket gör det digitala myntet till den övergripande bäst presterande tillgången under den tidsperioden.

Detta inspirerande rally beror på flera intressanta trender på Bitcoin-marknaden. Först och främst finns det en stor förskjutning av priserna mellan terminsmarknaden och spotmarknaden.

Denna marknadsförskjutningsnivå, där till och med vissa spotmarknader släpar efter andra spotmarknader, sågs senast under höjden av 2019. Den mycket förskjutna marknaden verkar vara en bieffekt av att OKEx-börsen stänger av uttag, vilket tvingade många investerare att stablecoins och Wrapped Bitcoin.

Dessutom har flaggskeppets kryptos pågående stigning högre uppmanat investerare att avveckla dussintals miljoner långa positioner under det senaste dygnet. Vissa handlare försökte korta rallyt för att hitta den paraboliska toppen, men misslyckades då BTC fortsatte att montera uppåt.

Bitcoin Bulls har fortfarande utrymme att köra

Bitcoins snabba steg uppåt har chockerat investerare och orsakat oro för att inflytelserika handlare och valar sannolikt kommer att avveckla sina mynt i väntan på en stark retracement.

Flera trender på kedjan motverkar emellertid känslan att BTCUSD är överutvidgad till uppåten. För det första visar data som delas av analysföretaget Glassnode att BTC-marknaden kan hållas högre.

Rafael Schultze-Kraft, CTO Glassnode, delade diagrammet nedan och indikerade att världens första kryptovaluta fortfarande har utrymme att samlas. Han förklarade att den ”relativa orealiserade vinsten” för BTC för närvarande ligger långt under bubblornivåer sett tidigare.

En annan viktig trend inom kedjan som kan stärka BTC-priset är den enorma tillströmningen av nya användare som interagerar med blockchain.

Enligt data från analysplattformen Santiment nådde antalet adresser som interagerar med BTC-nätet 1,17 miljoner igår. Det är det högsta varumärket sedan 10 januari 2018.

ETH-priset förstör tungt motstånd

Ethereum har fått betydande fart under de senaste timmarna och har lyckats bryta sig över flera viktiga motstånd.

ETHUSD-paret rensade $ 405 och $ 410 i början av sitt rally på fredag och fortsatte med att skjuta upp 6% och bryta motståndsnivån på $ 420. Dagens uppåtgående rörelse var så intensiv att ETH till och med spikade över $ 440.

Vid tidpunkten för publicering byter det översta altcoinet händer för 441,7 dollar, med ETH-priset som förväntas följa Bitcoins kraft och överstiga 450 $.

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The best asset in the world: Asymmetrical returns with Bitcoin investments

This can be checked with government bonds. German government bonds, rated with the top AAA rating, promise a return of -0.59 percent over ten years. Not a particularly good investment, but pretty safe. Meanwhile, the current interest rate for 10-year Brazilian bonds is 7.84 percent. The rating agency Fitch rated the paper BB-. Investors have to take into account a potential bankruptcy of the Brazilian budget when investing.

Conversely, what percentage of the portfolio investors invest in which type of security depends solely on their risk tolerance. Risk-averse investors are likely to prefer a portfolio that relies more on safe bonds and more aggressive investors focus more on stocks, ETFs and alternative investments.

Safe is not always better

Anyone who follows the textbook opinion about the linear relationship between risk and return runs the risk of missing out on the really good opportunities. There are investments that don’t quite fit into the described pattern. One of them, as you can already guess, is Bitcoin. Not only is Bitcoin retrospectively the best performing asset in human history; Even in relation to the associated risk, BTC beats the competition by far. Depending on where you start measuring, BTC has grown by over three million percent in the first decade of its existence.

So do investors have to be extremely willing to take risks in order for a BTC investment to be considered? Limited. Because, contrary to what modern portfolio theory suggests, Bitcoin is less risky than assumed. Sure, digital gold is quite volatile – significantly more volatile than gold, oil and the S&P 500, for example. But not as volatile as the price should theoretically be with such a return. In other words, Bitcoin is what is known as an asymmetrical investment.

Exponential growth possible

With cryptocurrency no.1, risk and return are not linear, but rather convex. The return does not increase proportionally to the risk, but increases exponentially.

This already intuitively conclusive description of the course events can be measured with the Sharpe ratio . This is a quantitative indicator that relates risk, measured by volatility, to return. A Sharpe Ratio> 1 means an excess return on the asset in relation to the risk assumed. It turns out that when compared to assets like gold, stocks and oil, Bitcoin is the big winner in terms of asymmetry. BTC currently has a Sharpe ratio of 2.62. The next best asymmetrical asset is gold with just 1.66.

One thing is clear: if you are looking for the asset with the best asymmetrical return, you will find it with Bitcoin.

The Bitcoin train hasn’t left yet

Nobody knows how Bitcoin will fare in the future. Investors should keep in mind that BTC is still a risky investment. The cryptocurrency has been working flawlessly for 10 years with a reliability of 99.99 percent. A bug or other as yet unknown risks could still endanger the project. It therefore makes sense to participate in the course with moderation and moderation – the growth potential is large enough.

Even if it feels different for some: Bitcoin is still in its infancy ten years after its genesis. Optimistic estimates assume that just one percent of the world’s population owns Bitcoin. An asset that has what it takes to become a world reserve currency is still very modestly capitalized at 242 billion US dollars (USD). Anyone who invests now is still an early adopter and is betting on a continued bullish course.

The bottom line is that there is still massive upward potential – and the signs point northwards. With the halving in May of this year, supply growth tightened again, and news like MicroStrategy’s USD 425 million allocation are massive harbingers of exponential price growth similar to 2017.

With each passing day, the likelihood of failure decreases and the risk of investing in BTC decreases. Presumably the risk / return ratio has never been better than it is now.

Asymmetric investing is the holy grail of investing and Bitcoin is holy water.

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Analyst: That’s why Ethereum crashed 4% in a single second yesterday

Ethereum has seen a sharp correction in the past few days while Bitcoin has slid down.

At the time of writing, ETH is trading for $ 370 – roughly 7.5 percent down from its high of $ 400 set just 36 hours ago. The cryptocurrency failed to overcome the crucial resistance of $ 400, despite Bitcoin hitting a new annual high of $ 14,100 over the weekend.

The sell-off at ETH was marked by a series of rapid sell-offs, suggesting that there may be a contingent of Ethereum investors who are seeing a bear trend in the asset in the short term and are therefore trying to liquidate their coins as soon as possible.

Ethereum sell-off marked by selling pressure from large investors

As the crypto asset analyst „CL“ notes, the decline in Ethereum began on Monday with a rapid sell-off on Binance’s futures market.

According to his data, the coin fell $ 15, or about four percent, in a single second. CL claims the decline was due to cascading „trigger orders“ on Binance’s futures – suggesting that there are whales or big traders who didn’t expect the coin to drop much lower.

While the movement was initially bought up, the cryptocurrency continued to move down after that rapid sell-off.

The pressure from the spot market also drove ETH down.

For example, shortly after the Ethereum correction, the crypto asset analysis and data firm Coin Metrics reported that users had deposited 4,000 ETH into Binance twenty minutes before the downturn began. 4,000 ETH is currently around 1.5 million dollars.

Coin Metrics‘ chart also shows that thousands of ETH were sent to Binance hours before the downward move – along with thousands of ETH sent to exchanges like Kraken after the first part of the downward move.

Another risk of falling for ETH

Analysts fear that after falling to $ 370, ETH will have more leeway to move down.

Su Zhu, CIO and CEO of Three Arrows Capital, joked on November 2nd that a valid „yield farming“ strategy would be to deliver wrapped bitcoins to Compound, lend ETH, sell that ETH for wrapped bitcoins, and then repeat . This would create a leveraged short position on Ethereum versus Bitcoin while also adding COMP.

„Safe idea: deliver wBTC to Compound, lend ETH and sell uniswap to wBTC, supply wBTC again, manage COMP + generate permanent profits from ethbtc and reap the benefits.“

Others take a similar view and comment that the macroeconomic aspects are much clearer for Bitcoin at the moment than for Ethereum.

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