With so much of the talk about price action and trading, I felt it important to get back to reviewing some fundamentals and check out what’s been happening in the world of Bitcoin as we are now a little over one month into the third halving. With Bitcoin ranging for many weeks the below chart shows you 2019 $6,000 support broken and the subsequent move to $3,000. Now here in 2020 the ceiling of $10,000 best tested multiple times I still believe a move higher is what will happen. A lot of times it just does not happen on our timeline. This is why I preach discipline and patience so often.
Whether its support or resistance it doesn't matter necessarily which one but the more times you test something more times than not it has a higher probability of breaking that tested level. Failures happen and we must be ready for anything however we need to focus on what trend the market is in. We are in a more bullish trend than bearish so the thesis that BTC will break out once it eclipses the $10k level to me is where I would lay my chips.
Now onto the fundamental news and updates within the world of cryptocurrency.
I cut out the most important notes I found interesting over the past 2 weeks as well as put some of my thoughts in italics.
In the below comment section feel free to email any discussions or coin requests for my next SmartMoney Algo analysis. The email for requests is email@example.com and or post in the show notes below.
Should you want more info on each topic, cut and paste some of the clips in Google and it will bring up articles and information about each topic. I hope you enjoy this weekend update.
While Bitcoin has a finite supply, the United States Federal Reserve is aiming to print $10 Trillion in USD by the end of this year! The Fed also said most recently that inflation isn’t as much as we think but unless wages and/or the money you and I get from working were to go up drastically its nearly impossible to fight the fact that more money than ever is being printed. Bitcoin as we know it’s impossible to print more, the demand continues to rise and price should continue to rise as a result.
If Western Union buys MoneyGram, where does that leave Ripple?
- Last week, Bloomberg reported that Western Union had made a takeover bid to MoneyGram
- If the deal actually goes through – there’s no guarantee, of course – what does it mean for Ripple?
More Troubles and Competition For XRP (Ripple) - XRP is just a macro cap coin I could never wrap my head around. I have traded this coin three times in three years and I can’t recommend it based on two factors.
- Their business model & founders rewards
- The chart is brutal
Since hitting $3+ in 2017 it hasn’t been a good run for the coin and so I stay away.
Bitcoin derivatives market is growing faster than spot market, suggesting rising institutionalization in the space
The bitcoin derivatives market, or futures and options, is growing faster than the spot market, according to research conducted by The Block’s Larry Cermak.
The trend, which is common in traditional financial markets such as forex, suggests that the crypto space is increasingly getting institutionalized.
Last month, both bitcoin futures and options hit yearly highs. The former saw volumes of $558 billion, while the latter saw $3.1 billion worth of trades. The legitimate spot volume, which excludes fake volumes, was about $106 billion in May.
The growth of the derivatives is outpacing the growth of the spot markets. The trend is not going to go away.
What Exchanges Hold The Most Bitcoin? The Top 5:
- Coinbase is the largest BTC holder, with around 984,300 BTC in its wallet;
- Huobi (413,000 BTC),
- Binance (318,000 BTC),
- OKEx (268,000 BTC), and
- BitMEX (217,000 BTC).
Please continue to project yourself with money on exchanges. Always use 2FA on SMS Verification.
Digital asset intelligence firm CipherTrace released a report on Tuesday revealing that in the first five months of this year so far, the value of ill-gotten funds siphoned through cryptocurrency crimes has reached almost $1.4 billion.
I’ve been following this hack for the past week and it’s just scary how rogue this employee was. I really do not trade on any exchanges other than the big ones like Binance, Bitstamp, and or Bitfinex.
Simple Seed/ Password Security Protection
Coinsquare CEO confirms client data was stolen by a former employee after report of SIM swap threat
Canadian crypto exchange Coinsquare said that an internal theft last year by a former employee resulted in personal information on some of its customers landing in the hands of a hacker or group of hackers.
Details of the incident were included in a story published earlier this week by news outlet Vice, which reported that the hacker or hackers intend to use the information – which contains email addresses, phone numbers and, in some cases, physical addresses – to perform SIM swap attacks. A SIM swap attack involves a fraudulent actor who uses personal information to effectively hijack a person’s phone number.
According to Cole Diamond, Coinsquare’s chief executive officer, the person quoted in the article is likely a former employee that stole data a year and a half ago.
I heard this recently while watching a documentary with my wife and it immediately resonated with me. I thought you know what this is so powerful that I need to write it down. I hope you can find some value in this thought as well.
It’s not the number of minutes in a day that make a day-long or short, it never changes.
Its experiences and perceptions.
You don't appreciate this until you're living in the worst way possible.
I listened to this Podcast recently and enjoyed the overview of Bitcoin as I still love hearing about the workings of how BTC works. Check it out here.
[The What Bitcoin Did Podcast] Bitcoin in One Lesson #theWhatBitcoinDidPodcast
This project has always piqued my interest. It has had some pumps along the way the past few years but the fundamental ideas behind Numerai is what kept my interest throughout that time. I held a position in 2017.
- Numerai, the startup known for hosting data scientist tournaments to find the best trading strategies for its hedge fund, has concluded a $3 million token sale of its native token, NMR.
If you’re interested in this project the website and fundamental overview can be found here…https://numer.ai/
Number of Institutions Buying Crypto Futures Doubled in 2020: Fidelity Report
Fidelity Digital Assets said institutional sentiment was improving in relation to cryptocurrencies. “[A]lmost 80% of investors surveyed finding something appealing about the asset class,” it said.
But what’s far more interesting is right down in the guts of the survey. Talking about how institutional investors are increasing their portfolio allocation to cryptocurrencies – the top one, unsurprisingly, being bitcoin – it goes on to say, “22% of U.S. respondents invested in digital assets have exposure via futures, which is a substantial increase relative to 9% of U.S. investors surveyed in 2019.”
As an American one of the concerns is that not enough Americans or even my friends or family are investing or interested enough in cryptos. To me, the Eastern world is ahead of us in this regard and I think over time it will continue to show this lag.
- the Digital Dollar Project, the high-profile partnership between Giancarlo’s nonprofit Digital Dollar Foundation and consulting firm Accenture, released its first “white paper”
- The paper warns that if the U.S. government doesn’t start thinking seriously about how to design the digital dollar, it could end up losing its ability to impose the nation’s values on the financial system
Samsung Blockchain Wallet now allows users to buy and sell crypto via Gemini
Crypto exchange Gemini has partnered with Samsung to allow Samsung Blockchain Wallet users in the U.S. and Canada to trade cryptocurrencies.
Announcing the news on Thursday, Gemini said the partnership would allow over 4 million Samsung users in the U.S. and Canada to buy and sell cryptocurrencies.
Samsung Blockchain Wallet is a non-custodial crypto wallet and is available for select smartphones, such as Galaxy S10 and S20 series. Gemini said users can store their crypto funds in the blockchain wallet or can transfer it to Gemini Custody.
The Market structure continues to mature as the demand for options continues to rise.
- As market structure continues to mature, options are seeing explosive growth in 2020
- Liquidity for options platforms is difficult to obtain as there can be countless different options contracts available for any one asset
- Liquidity attracts more liquidity and the most complete and trader-friendly platform is Deribit
- Deribit’s domination is unlikely to go away
The aggregated open interest of Bitcoin options is currently at an all-time high of $1.16 billion after being at less than $310 million at the beginning of January. And there are no signs of the growth slowing down
Bitfury announces institutional investor program for mining farms
Bitfury has announced the launch of an institutional investor program that offers exposure to bitcoin by way of the mining company's data centers.
The program touts "bespoke" investment vehicles, including direct investment and indirect opportunities with funds and private equity, among other modes.
Goldman Sachs says bitcoin is not a viable investment for client portfolios
Goldman Sachs analysts are not buying the idea that bitcoin — or any cryptocurrency — should be seen as a worthwhile investment for the firm's clients.
When I read things like this the first thing that crosses my mind is that they want their clients investing in the products that make GS the most amount of money. Should clients get interested in Cryptos they lose control? They realize crypto is permissionless and their business model runs on asking for permission. So as this headline comes across as bearish. To me, it is fear-based. Just adds that much more firepower to the growth of crypto in years to come.
That's it for now, have a great start to the week!