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November 1, 2021

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November 1, 2021

What Can Stop BTC and ETH from Price Discovery This Week?

Oliver Grah
Nov 1, 2021
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November 1, 2021

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Introduction

In the last few days, we have seen BTC and ETH consolidate while Metaverse projects and quite a few altcoins popped. What will the fresh week bring?

Without getting too ahead of ourselves, with a new all-time high monthly close, Bitcoin is looking very strong going into November. At the same time, ETH is on the cusp of breaking out while DOT is already in price discovery mode. Things could get interesting this week…

Twitter avatar for @BTC_Archive
Bitcoin Archive 🗄🚀🌔 @BTC_Archive
When #Bitcoin makes a new ATH monthly close, it's usually just getting started!🚀
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10:53 AM ∙ Nov 1, 2021
1,843Likes295Retweets

Market Watch

  • Of course, it shouldn’t come as a surprise that DOT, with crowdloans opening up this week, is breaking into price discovery mode today. DOT is probably the safest, fundamentals-based bet anyone could have made in the last few months with such a clear catalyst…

Twitter avatar for @DonnieBigBags
Donnie @DonnieBigBags
What's going on guys, $DOT seems to be breaking out again? I heard the auctions start next week, is it true?
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1:42 PM ∙ Nov 1, 2021
424Likes72Retweets
Twitter avatar for @Polkadot
Polkadot @Polkadot
The motion to enable parachain registration and crowdloans has passed Polkadot's council and gone to a public referendum. If passed, parachain teams will be able to register their parachain and open their crowdloan on Nov. 4, 2021 at approx. 19:15 CET.
polkadot.polkassembly.ioPolkassemblypolkassembly, discussion platform for polkadot governance
1:16 PM ∙ Nov 1, 2021
2,437Likes633Retweets
  • Another winner in the last days has been RUNE, up 22 % today and doing an impressive 2x in just seven days. We have stated numerous times in recent weeks that with Thorchain coming back online after its setbacks it would likely be one of the best performers in Q4.

Twitter avatar for @DeFi_Dad
DeFi Dad ⟠ defidad.eth ≡🦇🔈 (0/0/0) @DeFi_Dad
Why isn't there more hype that @THORChain's swap is working? I just realized I can finally swap tokens cross-chain between: ⚡️ Ethereum ⚡️ Bitcoin ⚡️ BSC ⚡️ Thorchain Am I missing something? 👉 app.thorswap.finance
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2:45 PM ∙ Nov 1, 2021
37Likes3Retweets

ETH’s First Deflationary Week

  • In the last four days, Ethereum has been net-deflationary, meaning more ETH has been burnt than issued! What is certainly positive from a monetary perspective and shows the huge demand for valuable Ethereum block space, is the result of the continuous high gas fees last week.

Twitter avatar for @WuBlockchain
Wu Blockchain @WuBlockchain
According to oklink data, Ethereum has been in a state of deflation for four consecutive days, and it has decreased by 8,572 in four days.
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7:09 AM ∙ Nov 1, 2021
234Likes45Retweets
  • The good news here is that ETH scaling, particularly roll-up solutions like Arbitrum and Immutable X, are making significant strides.

Twitter avatar for @ChainLinkGod
ChainLinkGod.eth 2.0 @ChainLinkGod
@guzzler_3 @lostinjonestown @ercwl @TusharJain_ Arbitrum has $2B TVL with Reddit launching a rollup dYdX has $1B TVL and hits more volume than Coinbase Immutable has zero gas fee NFT mints and is working with TikTok Loopring is bringing composability across rollups with dAMM
11:54 PM ∙ Oct 31, 2021
Twitter avatar for @safetyth1rd
𝕯𝖆𝖓𝖌𝖊𝖗 @safetyth1rd
Arbitrum is the best EVM experience hands down.
8:31 AM ∙ Nov 1, 2021
128Likes9Retweets
Twitter avatar for @safetyth1rd
𝕯𝖆𝖓𝖌𝖊𝖗 @safetyth1rd
Other L1s are fast -- but you still need to wait. Arbitrum - you click the button and the transaction quickly confirms. No waiting - Instant.
8:32 AM ∙ Nov 1, 2021
  • With ETH 2 inbound next year it’s no surprise that even the likes of Goldman Sachs are very bullish on ETH.

Twitter avatar for @zerohedge
zerohedge @zerohedge
Why Goldman Sees Ethereum Soaring To $8,000 By Year End
zerohedge.comWhy Goldman Sees Ethereum Soaring To $8,000 By Year End“This lines up rather well with the Ethereum chart, suggesting a late stage rally with longer term market top ahead.”
7:36 PM ∙ Oct 31, 2021
1,031Likes229Retweets

Avalanche Doubles Down on Its Incentive Strategy

  • The last three months have demonstrated impressively what good tech combined with a multi-million dollar incentive program can do to a L1 ecosystem: After its $180 million incentive fund had been announced, Avalanche’s TVL rose from $312 million to $2.6 billion in less than a month while AVAX’s market cap skyrocketed from under $2 billion to almost $17 billion!

  • Of course, the question arises what happens after these millions in incentives dry up… Well, the Avalanche foundation has just announced its fix: Another incentive fund, even bigger than the first one!

  • While this is of course good news for AVAX holders and yield farmers, the question about the long-term sustainability of this type of program is postponed into the future. Will the “snowball” of user and developer adoption be large enough to keep the momentum going? Or does it create the potential for a deeper drop in the future? We likely won’t know the answers before 2022 or even later down the line.

Twitter avatar for @TheBlock__
The Block @TheBlock__
Avalanche launches fresh $220 million incentive fund
theblockcrypto.comAvalanche launches fresh $220 million investment fundThe Avalanche Foundation has announced another mammoth incentivization scheme to lure developers to the Avalanche blockchain.
2:01 PM ∙ Nov 1, 2021
78Likes14Retweets

Why 4-Year Cycles Might Be a Thing of the Past

  • Crypto bull and bear market cycles have so far been clearly dictated by Bitcoin’s halvings – which made sense with the drastic impact that the halvings had on Bitcoin’s inflation rate.

  • Going forward, however, the impact of Bitcoin’s halvings will be much more subdued. Firstly because of Bitcoin’s decreasing market dominance and secondly because most of Bitcoin’s supply has already been mined. Thus, every additional halving of the inflation rate has a diminishing effect on supply and demand dynamics.

  • Willy Woo illustrates how these dynamics have already shifted:

Twitter avatar for @woonomic
Willy Woo @woonomic
The BTC network undergoes a constant daily sell pressure independent of investors selling. 2017 was simple, 2021 is more complex. Oct 2017 Miners: 2134 BTC Oct 2021 Miners: 917 BTC Futures Fees Revenue: ~944 BTC GBTC Fees Revenue: 30 BTC Proshares ETF Contango Rollover: 8 BTC
7:52 AM ∙ Nov 1, 2021
1,375Likes226Retweets
Twitter avatar for @woonomic
Willy Woo @woonomic
This study illustrates how we can't just assume the 4 year halvening of miners sell pressure will just keep us locked into a 4 year cycle. There are other important factors at play in 2021... The newer impacts will further dilute mining influence as the ecosystem matures.
7:52 AM ∙ Nov 1, 2021
270Likes8Retweets
  • Does this mean that we can throw the 4-year cycle theory out of the window right now? Probably not because market cycles are to a large extent influenced by psychology and market sentiment. With 4-year cycles being ingrained in many investors’ and traders’ minds, there is a case to be made that another 4-year cycle could play out as a self-fulfilling prophecy.

  • I guess we just have to remain open to different outcomes and keep our eyes on the data!

Stablecoin Report Out Today?

  • For quite some time the fears of a regulatory crackdown on stablecoins in the USD have been lingering. Today we expect to get news on how the US wants to approach stablecoin regulation, a very important matter for the whole crypto space.

  • While we don’t expect any sudden or radical blows, the report will be critical to determine how the crypto ecosystem and stablecoins will develop going forward – which certainly involves some fundamental structural changes.

  • Meanwhile, USDC issuer Circle and its CEO Jeremy Allaire don't seem to be too worried about the impending report.

Twitter avatar for @jerallaire
Jeremy Allaire @jerallaire
CIRCLE DROPS THE BOMB - While the world waits for the White House crew to drop their bomb with the PWG Stablecoin report today, we decided to drop our own bomb, The Circle Bomb. (1/3)
youtube.comThe Circle BombAfter making a promise to produce a rap video once USDC hit 30 Billion in circulation, Jeremy Allaire (MC JA) and crew lay it down at Circle Forward 2021.Lyr...
12:54 PM ∙ Nov 1, 2021
69Likes13Retweets

Mainstream Resistance to Crypto is Crumbling

First they ignore you, then they laugh at you, then they fight you, then you win.

  • While on the edge of being overused, this quote (which actually originates from Nicholas Klein and not Gandhi) is arguably the best way to describe the path of crypto into the mainstream.

  • We have shown several stories lately that highlight the increased crypto adoption by banks and corporations. Today, The New York Times has published an eye-catching article on this trend.

Twitter avatar for @Matt_Hougan
Matt Hougan @Matt_Hougan
Wow. You can hear the panic starting to set in at the banks in every line of this New York Times article. They are starting to feel crypto breathing down their necks.
nytimes.comBanks Tried to Kill Crypto and Failed. Now They’re Embracing It (Slowly).Digital payments technology is forcing the financial system to evolve. Banks feel their power waning and want to regain control.
1:44 PM ∙ Nov 1, 2021
31Likes5Retweets
Source: The New York Times

Digital payments technology is forcing the financial system to evolve. Banks feel their power waning and want to regain control.

Twitter avatar for @iamDCinvestor
DCinvΞstor @iamDCinvestor
TradFi financiers wake every morning and ask “how can I create a product which will extract as much value as possible from as much fund flow / AUM as possible?” instead of “how can I create a product which helps people with needs that they have?” this is why crypto will win
11:25 AM ∙ Nov 1, 2021
164Likes23Retweets
  • Not just banks, also many of the largest corporations in the world have shunned crypto until recently. Now we see the likes of Amazon and Google slowly but surely taking their first steps into crypto.

Twitter avatar for @zerohedge
zerohedge @zerohedge
Principal Digital Assets Specialist at Amazon
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11:25 AM ∙ Nov 1, 2021
369Likes98Retweets
Twitter avatar for @Blockworks_
Blockworks @Blockworks_
BREAKING: Digital Currency Group, which owns @Grayscale raises $700 million at a $10 billion valuation. Google's parent company invested in it.
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11:14 AM ∙ Nov 1, 2021
654Likes120Retweets
  • We also see more and more mainstream brands enter crypto in one or another way. Seeing McDonald’s and Burger King compete for crypto users is a thing of its own…

For the next three weeks, Burger King customers can enjoy a side of BTC, ETH or DOGE with their Whopper, thanks to a partnership with Robinhood.

Twitter avatar for @Blockworks_
Blockworks @Blockworks_
We all witnessed the McDonald's vs Burger King ad rivalry in the early 2000s. Today, they're competing for crypto users' attention. Burger King is giving $2.6 million of crypto. McDonald's is giving 10 NFTs.
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2:45 PM ∙ Nov 1, 2021
83Likes24Retweets

The SQUID Rug

  • What we, unfortunately, had to expect with the advent of this massive meme coin season of the last few weeks, is materializing today: SQUID, a token based on the popular Korean Netflix series Squid Game has – what a surprise – turned out to be a scam, leaving thousands of people with a valueless token.

  • What do we learn from this meme coin saga? Investing in a random token without checking its fundamentals is extremely risky…

  • Unfortunately, stories like these don’t help at all to promote crypto to the mainstream. On the contrary, millions of people turn away from crypto after being victims of scams. In addition, the big headlines that such scams create also inevitably cause regulatory ripple effects…

Source: Finbold
Twitter avatar for @el33th4xor
Emin Gün Sirer🔺 @el33th4xor
99.99% drop on the squid game token. I mean, what did you guys expect? There's nothing behind this coin except it stole its name from a popular show.
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12:46 PM ∙ Nov 1, 2021
834Likes91Retweets
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November 1, 2021

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