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Latest Crypto Highlights
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- Bitcoin is trading at around $16,400 as of the time of this newsletter.
It''s been another extraordinary week in the crypto markets. Over the course of Thursday, BTC surged by more than 10%. As well as breaching $15,000 for the first time since January 2018, the world''s biggest cryptocurrency jumped to highs of $16,450.
Over the same period, Bitcoin's price has appreciated 40%, according to
TradingView data. Year-to-date, Bitcoin price is up by 128%.
- Bitcoin spot volume reached a 2020 high as retail and institutional
interest surged.
Bitcoin (BTC) has had a great November so far, and many analysts believe the future remains bright for the top-ranked cryptocurrency.
Currently sitting at just around $16,400, its price has surged by 23% since the start of the month, rallying mostly after the completion of the United States presidential election. Now, Bitcoin spot volume has passed all previous records in 2020, showcasing the growing demand for acquiring BTC.
Not only is spot volume for Bitcoin reaching 2020 highs, but institutional
interest has also been rampant throughout November, with multiple high-
profile companies and high-net-worth individuals investing Bitcoin.
Increasing participation in both spot trading and regulated Bitcoin
investment products is clearly supporting Bitcoin''s current bullish trend and possibly altering how the digital asset is perceived by institutional and traditional retail investors.
- Bitcoin burgernomics: This is how many Big Macs you can buy with 1 BTC
The global Bitcoin purchasing power index, or PPI, which measures how many McDonald's Big Mac hamburgers you can buy with 1 BTC, rose 0.2% to 6,341.26 on Wednesday. Put differently, on average globally, a whole Bitcoin can buy you 6,341.26 Big Macs. Wohoo!
The last time Bitcoin's purchasing power was this high was during the 2017 bull market, when the digital currency peaked near $20,000.
Bitcoin''s store-of-value characteristics are perhaps its most compelling use case. The digital currency has emerged as a reliable inflation hedge
- Bitcoin at $16,000 is now bigger than PayPal, Coca-Cola, Netflix and Disney
This has also helped Bitcoin''s market cap rise by 50% to $285 billion - and it means the world's biggest cryptocurrency is now more valuable than most major companies.
Data suggests that, if BTC''s valuation is compared with publicly listed firms in the U.S., it would be the 18th largest. This dwarfs the likes of Verizon, PayPal, Disney, Netflix and Bank of America.
That said, BTC has a long way to go before it can catch up with Apple''s $2 trillion market cap, which makes it the most valuable company in the world. For Bitcoin to eclipse this, we'd need to see a price per coin of $120,000.
- Bitcoin''s surge could tempt traders to take some profit, and all of this could result in a pullback.
But the bigger danger is this: With Bitcoin prices touching their highest
levels in 33 months, we''re beginning to see greed seep into the crypto market once again.
As billionaire and former hedge fund manager Mike Novogratz noted: "The hardest thing to do in a bull market is to sit. My pal Paul Jones calls it the 'pain of the gain.' This is a $BTC bull market. Your job is to sit on
your hands and lock away your phone."
- This momentum was made alongside weakness in the U.S. dollar and many analysts believe that as long as the dollar remains weak, Bitcoin and other safe-haven assets will do well.
Since BTC cleared the last resistance level at $13.8K the $20K BTC is back on the table now.
It''s not likely to anticipate an apparent breakthrough in one-go as it''s the
first test of this resistance zone, but the overall weakness of the dollar is
signaling that the price of Bitcoin could only run higher.
- Whether the politics made it good or bad week depends on your view but if you're holding Bitcoin, it was certainly good.
It''s now well over $15,000 and has spent more than 100 days above $10,000.
That has some experts predicting a new jump. Others are looking back to 2016 for positive signs. Then too a period of pre-election stability was followed by a rally. The next level of resistance could be at $17,000. Will Bitcoin get there? Much depends on how far it falls first.
Whales certainly appear optimistic. Election day saw 58,861 BTC moving out of Binance. That's about $816 million. That might be the result of a deal but it could also be whales preparing for a price rally.
And the coin has a new friend in the US Senate. Republican Cynthia Lummis won her race to represent Wyoming. Lummis first bought Bitcoin in 2013, and sees the digital currency as a reliable store of value.
- PayPal''s crypto trading went live in the US on Thursday, Nov 12
Customers will be able to trade up to $20,000 a week, rather than the
originally announced $10,000.
PayPal ultimately plans to make crypto payments available at 26 million
merchants globally.
A representative told Cointelegraph that PayPal will notify U.S. customers about the general availability of crypto services in the coming days.
Much-anticipated global services are expected to launch at the beginning of 2021, alongside crypto payments on Venmo. PayPal initially announced its plans to integrate crypto three weeks ago. The announcement added to a boost in BTC price.
Dan Schulman, CEO of PayPal, noted that the shift to supporting crypto was driven by what he sees as an "inevitable" drift toward virtual currencies.
"The shift to digital forms of currencies is inevitable, bringing with it
clear advantages in terms of financial inclusion and access; efficiency,
speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly."
Mainstream awareness of crypto still remains very low. As data from a
Statista survey indicates, Bitcoin (BTC) use in countries with developed
economies is below 10%, with the lowest levels in Sweden, Denmark and Japan.
Meanwhile, some optimistically predict that this number will grow to 90% of the U.S. population by 2030.
Considering that PayPal had a reported 361 million active users in the third quarter of 2020 the decision to offer its customers services related to cryptocurrencies seems to be a significant step toward mainstream adoption. Most crypto experts agree that a platform with over 300 million active users definitely helps push forward crypto mass adoption.
- Why billionaires are suddenly accumulating Bitcoin even after 113% YTD gain?
Billionaires have been increasingly accumulating Bitcoin in recent months as four main factors are making BTC increasingly attractive to money managers.
> Investors increasingly viewing Bitcoin as "gold 2.0"
Investors consider gold as more of a method of insurance to protect a
portfolio from market corrections and macro uncertainty. As such, safe-haven assets typically do not return large gains in the short to medium term.
Bitcoin has the potential to achieve both, as it is evolving into a safe-
haven asset with massive growth potential. Gold's market capitalization is estimated to be around $9 trillion. In contrast, Bitcoin is valued at $285
billion, leaving a large gap between the two assets'' valuations.
> Large risk-to-reward potential
During his interview, multi-billionaire investor Druckenmiller noted that he
owns "many many more times gold" than Bitcoin. But the billionaire investor emphasized that if gold rises, Bitcoin would also see massive gains and "probably work better."
> Inflation play
The price of Bitcoin is often inversely correlated with the U.S. dollar
index. Like gold, when the dollar drops, BTC tends to increase.
Over the long term, investors including Tudor Jones consider Bitcoin as an ideal inflation play. Particularly after the Federal Reserve introduced the average 2% inflation target strategy, BTC has become more attractive to institutions hedging against inflation.
> Portfolio diversification
Bitcoin does not have to be a singled-out investment. It has historically
performed well as a portfolio asset, returning decent gains to a balanced
stock-based portfolio.
The combination of the abovementioned four factors are making Bitcoin an increasingly attractive portfolio asset for money managers.
We at Computta agree with the experts and look forward to see the worth of our BTC multiply inthe near future.
We have always believed in crypto and think a strong future is yet ahead of us and are excited to see where it takes us.
What about you? Are you as excited about BTC and crypto and what gains it will bring us?
Stay with us, stay positive, stay healthy and safe! 8-))
Good Luck to us all!
George and Team Computta |
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