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October 19, 2021

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EllioTrades Daily Roundups

October 19, 2021

A Record ETF-Launch and Bitcoin Closing in on Its All-Time High

Oliver Grah
Oct 19, 2021
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October 19, 2021

www.elliotrades.xyz

Introduction

It seems like a good part of Crypto Twitter is hanging out at crypto meetups in Dubai or Lisbon since it hasn't been as quiet in quite some time 😀 Or maybe everyone needs a bit of rest after the turbulent price action of the last weeks and before the next major market move?

One way or another, it seems like many traders are in a wait-and-see approach, attentively monitoring how the launch of the first Bitcoin ETF in the US plays out this week – or today for that matter since its launch day!

The First Bitcoin ETF Is Trading

  • “ETF, ETF, ETF…” It has been a lot of talk about the Bitcoin ETF lately and this will certainly change at some point. However, given that it’s such an important event, it makes sense to have a close eye on today’s Bitcoin ETF launch as it could give us clues to how this historic, new instrument will be adopted by traditional markets and how it could affect the crypto markets going forward.

  • While many were afraid of a sell-the-news event (mainly because of historic precedents like the CME Futures launch which marked the macro top in 2017), others expect this to be a major inflection point that will catalyze huge capital inflows into the cryptocurrency space. On-chain metrics unquestionably favor the latter but having an eye on sentiment and leverage will help navigate through short-term price moves.

Twitter avatar for @BitcoinMagazine
Bitcoin Magazine @BitcoinMagazine
OFFICIAL – The first #Bitcoin ETF $BITO is now trading.
Image
1:40 PM ∙ Oct 19, 2021
939Likes250Retweets
  • After less than an hour of trading, it has become clear: There is massive demand for the new Bitcoin Futures ETF.

Twitter avatar for @Blockworks_
Blockworks @Blockworks_
Official: ProShares #Bitcoin Futures ETF is now the biggest new launch of 2021. It's now number 7 on the all-time list. Via @EricBalchunas
2:38 PM ∙ Oct 19, 2021
102Likes17Retweets
Twitter avatar for @0xSisyphus
Sisyphus @0xSisyphus
Pretty good chance $bito sucks up equities trading volume just like $tsla did before it $qqq is dead, long live the new king (that goes up in price more) https://t.co/P70AMhaOkt
Twitter avatar for @EricBalchunas
Eric Balchunas @EricBalchunas
BIG NUMBERS: $BITO has traded $280m worth of shares in first 20min. That already puts it in Top 15 opening day launches of all-time, more than $GLD & $QQQ. $ARKX & $BUZZ were two from this year that made list. It has legit shot at $1b and top spot. We'll see, via @tpsarofagis https://t.co/DgjPA42TnB
2:07 PM ∙ Oct 19, 2021
103Likes7Retweets
  • By the way, if you haven’t already seen the ticker of the second Bitcoin ETF to be launched this week:

Twitter avatar for @EricBalchunas
Eric Balchunas @EricBalchunas
OMG, it looks like Valkyrie changed their ticker to $BTFD, they must of have listened to Twitter bc that was like all over my replies every time we talked about $BTF. Talk about an instant classic.
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9:39 PM ∙ Oct 18, 2021
3,733Likes583Retweets

Market Outlook

  • The last two days’ cooldown in the crypto markets has been remarkable so far: No major sell-off or massive liquidations but an “orderly closing of longs” and some minor profit-taking.

  • This is exactly what we want to see to avoid a massive leverage-induced shakeout, and it sets a base for further positive price action – potentially alleviating the need for a more prolonged correction… for now.

The market looks healthy here, although still quiet. Eerily quiet for being a light breeze away from the all-time high.

Twitter avatar for @TXMCtrades
TXMC @TXMCtrades
@WClementeIII Funding fell -75% in a few hours while OI and price both held steady, with no major liquidations in that span. Looks like the orderly closing of longs.
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2:16 AM ∙ Oct 19, 2021
91Likes2Retweets
Twitter avatar for @john_j_brown
John Brown @john_j_brown
Given we are close to ATH, fixed maturity premiums and perpetual funding rates are still rather moderate. There will be gunpowder left, if ATH breaks.
7:58 AM ∙ Oct 19, 2021
335Likes17Retweets
  • Historically, Bitcoin always needed some time from retesting old all-time highs to successfully breaking them. Thus, a couple of weeks of consolidation below $65k could be in the cards. However, things might also move faster this time with the Bitcoin ETF as a significant catalyst!

Twitter avatar for @rektcapital
Rekt Capital @rektcapital
#BTC failing to make new All Time Highs this month would be in line with what it has done at this point in the cycle in previous cycles But $BTC pressing against its final resistance right now is teasing that it may actually make history rather than repeat it #Crypto #Bitcoin
1:21 PM ∙ Oct 19, 2021
125Likes11Retweets
  • Fun fact: In some countries, Bitcoin has already broken its all-time high… Just not in the US due to the recent strength of the DXY (performance of the US Dollar vs other major currencies).

Twitter avatar for @PrestonPysh
Preston Pysh @PrestonPysh
New #Bitcoin ATH in Japan.
Image
3:36 AM ∙ Oct 19, 2021
5,960Likes708Retweets
Twitter avatar for @PrestonPysh
Preston Pysh @PrestonPysh
What #Bitcoin looks like in Turkey.
Image
3:34 AM ∙ Oct 19, 2021
1,921Likes172Retweets
  • Interestingly, it seems like most of the recent price action is dictated by long-term holders (who have been aggressively accumulating over the last few months) as well as institutional capital (aka “smart money”) buying in. Major retail participation is not yet visible and will likely set in once Bitcoin has broken its all-time high…

Twitter avatar for @_Checkmatey_
_Checkmate.btc 🔑⚡🎟🌱🌋checkonchain.com🌋 @_Checkmatey_
#Bitcoin is $3,000 below ATH and retail is still nowhere to be seen.
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10:02 AM ∙ Oct 18, 2021
1,327Likes117Retweets
Twitter avatar for @rektcapital
Rekt Capital @rektcapital
#BTC is one final resistance away from entering the Media Attention phase Media Attention occurs in the Mania Phase of the cycle $BTC #Crypto #Bitcoin
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12:57 PM ∙ Oct 19, 2021
341Likes61Retweets

How Long Do We Have to Wait for the Next Alt-Season

  • Right now it’s undoubtedly “Bitcoin season”. Just like we saw late last year, Bitcoin is leading the crypto markets attracting billions of dollars into the crypto space. The Bitcoin dominance is obviously rising in lockstep.

  • What came next oftentimes (e.g. last January to May) was an altcoin season of gigantic proportions. With all the innovation happening in the L1, DeFi, and NFT space right now, there is no question that a good chunk of the fresh capital attracted by Bitcoin will ultimately pour into altcoins at some point – the question is when.

  • While many expect Bitcoin dominance to keep making new highs and sucking the air out of the altcoin space for months to come, there are also contrarian voices:

Twitter avatar for @Nicholas_Merten
Nicholas Merten @Nicholas_Merten
(1/3) My rough thoughts on altcoin dominance: The top isn't in for altcoin dominance (will likely be 75% this cycle), and right now may be one of the worst times to rotate from altcoins to bitcoin. I know it's not what most are saying, but I tend to go against the grain.
Image
12:10 PM ∙ Oct 19, 2021
207Likes25Retweets
  • While we might not see a full-blown alt-season (where everything pops off left and right) for some time, it is highly likely that we will continue to see certain narratives produce massive gains (e.g. “DeFi 2.0”, Polkadot season, etc.). Continued massive incentive programs as the one just announced by Polkadot founder Gavin Wood will keep the excitement for L1s going for the coming weeks and months.

    Twitter avatar for @Cointelegraph
    Cointelegraph @Cointelegraph
    Polkadot founder Gavin Wood unveiled a $777 million development fund to support growth on the network.
    cointelegraph.comPolkadot unveils $770M development fund ahead of parachain auctionsGavin Wood has unveiled a $777 million development fund to support “building, improving, educating” Polkadot’s ecosystem.
    6:16 AM ∙ Oct 19, 2021
    1,013Likes243Retweets

Facebook Backpedaling to a Permissionless Blockchain (Ethereum)

  • It has been quiet around Facebook’s crypto ambitions lately after the social media giant had announced its plans many months ago and faced a lot of backlash from regulators and politicians. Now, Facebook seems to be ready to make its next moves, pushing both its Metaverse and crypto wallet ambitions ahead!

Twitter avatar for @APompliano
Pomp 🌪 @APompliano
Facebook just announced that they are launching a pilot that will allow users of their digital wallet Novi to send remittances using stablecoins (USDP). Every tech company is going to jump in the game.
1:17 PM ∙ Oct 19, 2021
970Likes147Retweets
Twitter avatar for @Blockworks_
Blockworks @Blockworks_
JUST IN: Facebook has chosen Coinbase as its custody partner for its pilot of the digital wallet, Novi. Novi enables people to send and receive money abroad instantly, securely, and with no fees. Source: @coinbase
Image
1:20 PM ∙ Oct 19, 2021
159Likes52Retweets
  • What is most important about today’s Facebook news is that the trials will include USDP, an established stablecoin living on the Ethereum blockchain. Apparently building a cryptocurrency wallet and plugging into the limitless potential of open blockchains (aka Ethereum) has turned out to be the most suitable approach for the tech giant (although Facebook’s plans to create their own stablecoin, Diem, are still pending).

Twitter avatar for @davidmarcus
David Marcus @davidmarcus
The Novi pilot uses USDP (Pax Dollar) through partnerships with @paxos and @coinbase. USDP is a well-designed stablecoin that’s been operating successfully for over three years and has important regulatory and consumer protection attributes. 4/8
1:03 PM ∙ Oct 19, 2021
66Likes13Retweets
  • Would you and I trust Facebook with our money? Probably not. But don’t underestimate the huge onboarding effect Facebook will have by introducing millions of people to the world of crypto! Facebook will be a massive onramp for many to experience the power of stablecoins – and eventually crypto.

Twitter avatar for @0xSisyphus
Sisyphus @0xSisyphus
This would be the most insane mass onboarding into crypto ever https://t.co/4m2bNM2me5
Twitter avatar for @CryptoAdmiral14
LotsOf.crypto @CryptoAdmiral14
@0xSisyphus I guess this means every FB account is getting a wallet.
1:19 PM ∙ Oct 19, 2021
116Likes14Retweets

The Fantom Ecosystem Is Chugging Along Nicely

  • An ecosystem largely unimpressed by the last days’ market-wide cooldown has been Fantom. Both the FTM price as well as the overall ecosystem have continued on their upward growth trajectory.

Twitter avatar for @safetyth1rd
𝕯𝖆𝖓𝖌𝖊𝖗 @safetyth1rd
"alts are gonna get rekt when bitcoin pumps" FTM : "hold my beer"
8:15 AM ∙ Oct 19, 2021
146Likes12Retweets
Source. CoinGecko
Twitter avatar for @CryptoRank_io
CryptoRank Platform @CryptoRank_io
📈@FantomFDN has achieved a new ATH today, take a look at the top 10 projects by TVL growth on the platform for more insights. 👉cryptorank.io/tag/fantom-eco…
Image
1:13 PM ∙ Oct 19, 2021
46Likes13Retweets

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October 19, 2021

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