October 20, 2021

Bitcoin Smashing Its Old All-Time High with a "God Candle"

Oct 20, 2021

Introduction

Yes, here we go! Bitcoin has SMASHED through its old all-time high with a vengeance today 🤯 Congrats to everyone who hodled through this summer’s “bear market” or bought the dip…

Blockworks @Blockworks_

BREAKING: Bitcoin hit a new all time high

Rafael Schultze-Kraft @n3ocortex

Every satoshi is in profit. Congrats, HODLers. #Bitcoin studio.glassnode.com/metrics?a=BTC&…

In case you are still sitting on the sidelines or impatiently awaiting alt season, here is some advice by Grayscale CEO Barry Silbert 😉

Barry Silbert @BarrySilbert

Now would be a good time to mute "bitcoin"

Barry Silbert @BarrySilbert

Twitter is going to be so annoying when bitcoin hits an all time high

While this is certainly a euphoric moment for every crypto holder (yes, also the time for altcoin degens will come), this doesn’t mean there will be smooth sailing from now on: Corrections and shakeouts are par for the course and the next FUD wave will certainly show its ugly head again. But remember: Retail is not here yet so there is still a ways to go in this bull market…

RIZZO @pete_rizzo_

So so early #Bitcoin

So, strap in for the ride, don’t forget to take profits on positions that have done well for you, and keep your eyes on this space, because the number of opportunities – especially in the altcoin space – in the next weeks will be tremendous.

Ansem🃏🃏 @blknoiz06

bitcoin smashed thru all time highs & alts didnt even dump, we're entering genius szn boys

Some Hopium For ETH Bulls

There is no doubt: Right now, Bitcoin is drawing all the attention, with ETH following at a slower pace. Historically, however, as soon as everyone has piled into BTC and the “crypto king” has made its major move, ETH started moving even more violently. It might take some time until ETH starts really going though since BTC’s run is likely not over yet (this doesn’t mean that ETH’s price won’t rise too, just not as much as BTC’s…)

Token State (TokΞnizΞ ThΞ World ΞIP-1559) 🦇🔈 @tokenstate

That perfect cup n’ handle on the ETH chart. I doesn’t get any better. See you at $10,000 soon.

It will strongly depend on the unfolding of different narratives in the coming months: Will BTC as a (finally) ETF-supported store of value remain the preferred bet for investors? Or will the innovation and ESG-narrative kick in again and lift Ethereum out of BTC’s shadow? It’s likely that both assets will do well in the comings months, the question is just: Which narrative will attract more capital?

Adriano FΞRIA 🦇🔊 @AdrianoFeria

Brazilian investment company Kinea just bypassed $BTC and went straight into $ETH. Institutions are starting to figure out what is what... 👀 news.bitcoin.com/brazilian-asse…

Brazilian Asset Manager Kinea Makes Exploratory Investment in Ethereum – Bitcoin NewsOne of the biggest asset managers in Brazil, Kinea, disclosed it made an exploratory investment in ethereum two months ago.news.bitcoin.com

Adriano FΞRIA 🦇🔊 @AdrianoFeria

Too many people in the crypto space are still in complete denial about the growing level of interest intuitions have in $ETH and its potential to overtake $BTC's market capitalization. It's time to shed some light on this subject. 🧵👇

Adriano FΞRIA 🦇🔊 @AdrianoFeria

2/It is extremely difficult to understand $ETH and #Ethereum. This has been the source of a lot of information asymmetry, which is one of the reasons why there is seemingly no consensus regarding investment theses for $ETH as an asset.

Adriano FΞRIA 🦇🔊 @AdrianoFeria

3/However, this is rapidly changing. An increasing number of retail and institutional investors are starting to view $ETH as an asset with spectacular monetary properties. For this reason, many respectable private investors and institutions are formulating investment theses

Adriano FΞRIA 🦇🔊 @AdrianoFeria

4/that support the idea of $ETH flipping $BTC. In a nutshell, $BTC is viewed as a low-risk, high-friction monetary asset similar to gold, while $ETH is starting to get recognized as a form of money that services its own digital economy where a new financial system is

Adriano FΞRIA 🦇🔊 @AdrianoFeria

5/being built. It is also a yield-bearing asset that can be compared to a "internet bond". It has a higher appreciation potential, but also a higher relative risk. Many institutions feel that $ETH has a superior risk-reward ratio when compared to $BTC. This has

Adriano FΞRIA 🦇🔊 @AdrianoFeria

6/lead to a noticeable trend that has been manifested through the crypto community, personal accounts from respected investors, official reports from financial institutions and has ultimately showed up in market metrics.

The thread continues by illustrating the arguments with examples. Free free to dive deeper here.

Exposing “TradFi” Investors

It has been fun to watch Guggenheim’s CIO Scott Minerd flip flop and come out with one ridiculous Bitcoin prediction after the other in recent months. After first aiming for the moon when the markets were bullish last winter, he was quick to become a “paper-hander” during this summer’s market downturn. You can bet that he “bought high and sold low” as many average emotionally driven retail investors did. Imagine how stupid the likes of Minert must feel on the day Bitcoin breaks its all-time high…
What can we learn from this episode? Traditional investors, even if the richest and most successful in the world, don’t have an edge over retail crypto investors who build their conviction through the study of fundamentals.

Lark Davis @TheCryptoLark

Scott said #bitcoin was going to 400k when it was 65k, then to 15k when it was 30k. Tried so hard to time the market and failed, all he needed to do was buy and hold. Now he is on the sidelines... There is a lesson here

Guggenheim’s Minerd Predicted Bitcoin at $15K and $400K, Now He’s Out EntirelyGuggenheim’s CIO said he’s out of bitcoin as he can’t understand what’s happening with the cryptocurrency markets.coindesk.com

Zhu Su 🔺 @zhusu

What he calls discipline is actually anger + disbelief that he can't master every new asset class that comes about. Dude thought he can go on CNBC and talk the mkt into his bids and failed. Instead of respecting the market, he chose to protect his ego--opposite of discipline.

Hsaka @HsakaTrades

Looks like he never got those sub 30k $BTC fills. https://t.co/RQWAT8fNHz https://t.co/e7kODYD8k4

“Digesting” the Facebook News

In the last few days, Facebook made a splash by announcing its crypto ambitions in a more pronounced way: The tech giant both launched a pilot for its cryptocurrency wallet and doubled down on its Metaverse plans. Even rebranding Facebook to a “Metaverse-friendly” name seems to be on the cards. It’s obvious that Facebook has recognized how big the opportunity of creating a Metaverse is and wants to go all-in now…

Blockworks @Blockworks_

Facebook, soon a crypto company? - Reports of a Metaverse rebrand - Partnered with Coinbase - Hiring 10,000 people for metaverse-work - Exploring ways to work with NFTs

With Facebook being one of the most influential tech companies in the world, it didn’t take long until they provoked a wave of reactions – mainly pushback from politicians and the crypto community.
Just hours after Facebook’s release of the Novi wallet pilot in the US and Guatemala, a group of senators sent a letter to the tech company, urging Facebook to stop both its cryptocurrency wallet as well as its stablecoin efforts. It has to be seen to what extent Facebook will react to these drastic demands. The tech behemoth will likely not want to scramble its plans entirely unless forced…

This is a massive hindrance to the operations of Novi, but it can also be ignored by the company.

While some in the crypto community see particularly Facebook’s crypto wallet as a major potential catalyst for mainstream adoption, many voice concerns about Facebook’s plan for a centralized Metaverse.

Ryan Watkins @RyanWatkins_

It’s great to see the world’s largest social platform going all in on the metaverse. But imo the only way the metaverse reaches full potential, one day rivaling real world economies, is if there’s no single centralized entity playing god. The metaverse must not be centralized.

Alex Heath @alexeheath

Surprise: Facebook is planning to change its company name next week to reflect its focus on the metaverse. I’m told Zuckerberg is planning a formal unveil next Thursday at Connect, the company’s annual AR/VR conference https://t.co/nYoh4PQt4Y

Chris Burniske @cburniske

Zuck wants to be known for building the metaverse... Let's make sure that doesn't happen.

Facebook is planning to rebrand the company with a new nameFacebook plans to change its company name to focus on the metaverse. CEO Mark Zuckerberg plans to discuss it at Facebook Connect on October 28th.theverge.com

Mr. Goose @GooseOfCrypto

I think we need a new thread from @punk6529 about Facebook strategically rebranding to corner the creation of the Metaverse. We need a proper mobilizing defense for the ‘Open Metaverse’ in response.

Of course, memes were also not missing:

Jᵾlien Genestoux @julien51

Facebook's new name? Ngmi.

Why We Need Decentralized Infrastructure #2

For us who have been in the crypto space for quite some time, it is easy to see the need for decentralized infrastructure… It’s basically everywhere and stories like the following are reinforcing this belief.

Voytek Pituła 💛/🖤 (@krever@mas.to) @Krever01

Something something, state, SPoF, incompetence. But the people could have opted out from this, not share data with the organization they don't trust! Oh right, they couldn't.

banteg @bantg

Someone hacked the entire country of Argentina. The leaked 45 million records include names, home addresses, birthdays, Trámite numbers, citizen numbers, government photo IDs, labor identification codes, ID card issuance and expiration dates. https://t.co/uAGT2D1gsP

Animoca Brands Is Climbing the Ranks

While Facebook is working on its centralized Metaverse, players WITHIN the crypto ecosystem are making massive strides in propelling the idea of a decentralized Metaverse ahead. Is Ubisoft, a major legacy gaming studio, being one of Animoca’s largest investors, a sign of the times?
It’s incredible what Animoca Brands, the undisputed NFT trailblazer, has already achieved in a couple of years… and we can’t wait to see where their efforts will lead us next.

Animoca Brands @animocabrands

We have closed a capital raise for US$65 million conducted at a pre-money valuation of US$2.2 billion! Investors in the round included Ubisoft, Sequoia China, Dragonfly Capital, and more. animocabrands.com/animoca-brands… #fundraising #unicorn #OpenMetaverse #DigitalPropertyRights

Animoca Brands raises $65M at $2.2B valuation from Ubisoft, Sequoia China, Dragonfly Capital, othersAnimoca Brands, the company driving digital property rights via NFTs and gaming to build the open metaverse, today announced that it has closed a capital raise for US$65 million (approximately A$87.7 million) conducted at a pre-money valuation of US$2.2 billion.animocabrands.com

Looking for Opportunities in the Polkadot Ecosystem

In the coming weeks and months, there will be no shortage of opportunities in Polkadot land, since Polkadot parachain auctions are set to kick off in November, and crowdloans on Kusama are increasing their frequency.
The key will be to detect potential winners early and have an eye on tokenomics, presale token releases, and hype cycles since there are also ways to play the Polkadot ecosystem wrongly and lose money…

Composable Finance & Picasso

A very interesting project at the intersection of ETH Layer 2, L1s, and Polkadot that’s worth having on your radar is the cross-chain project Composable Finance. The project has been pushing ahead with cross-chain innovations, notably their bridge which is supporting more and more chains by the week.

Composable Finance @ComposableFin

1/ 🥁 🎉 We are excited to announce ⚡️ The Composable SDK ⚡️, bringing together our cutting-edge cross layer technology to power DeFi developers across the board. link.medium.com/GqeGtrUtukb

Composable seeks to act as an optimal solution to enable cross-layer interoperability among Layer 1 & 2 networks, allowing them to communicate with each other and perform near-instantaneous asset swaps. Composable is building a variety of different components to facilitate an Ethereum multi-layer ecosystem.

0xbrainjar @0xbrainjar

Composable SDK’s unlocks a variety of use cases. Cross-layer arbitrage and yield seeking are examples of use cases that are unlocked by our tech stack. However, we see our mission as the unification of sharded applications as a whole. https://t.co/qh6xVJIGLQ

Instrumental Finance @InstrumentalFi

1/ Instrumental Finance unlocks new yielding opportunities through the unification of sharded applications across Layer 2s and mainnet: https://t.co/CMarh0yF6T

Want to earn 100+% on your stablecoins and bet on this up-and-coming cross-chain interoperability project in the Polkadot ecosystem? Then the newly launched “stablecoin strategies” with fresh liquidity mining rewards by Composable Finance might be of interest to you. (Be aware of the gas fees though since the farms run on Ethereum)

If you want you can go a step further and participate in the Picasso crowdloan campaign which recently reopened for contributions. Be aware that participating in a crowdloan brings additional risks since your invested capital will be locked up for many months in return for PICA tokens (IF the project wins a parachain slot).

If you want to participate, you should hurry, since there is an early-bird bonus that lasts until tomorrow, October 21 at 10pm CET.

Composable Finance @ComposableFin

1/ An update on our crowdloan. We will be closing the early bird bonus of participation within the first 3 days at 10pm CET tomorrow. In less than 2 days we have collected greater than 20,000 KSM at the time of writing.

Will DeFi Yields Signal the Next Market Top?

What we have seen during the last months’ bullish and bearish trends, is that overall, DeFi yields have gone up and down alongside the market. This makes sense since most DeFi yields are dependant on the performance of the underlying tokens as well as the willingness of market participants to borrow capital (aka risk aversion).

Tyler Reynolds @tbr90

One of the best reasons supporting the idea that this market has way more to run is the relatively low interest rates we see for stablecoins IIRC for the last 18 months, borrow rate for stables breaking 20% on Aave/Compound has been a good indicator that the peak is near

Right now, DeFi yields are nowhere near the levels we saw during last spring’s altcoin season. Will they reach these levels again before we see a major top in the markets? It is a likely scenario but let’s not bet the farm on this indicator alone since DeFi yields are also driven by other factors such as overall market saturation and capital efficiency.

The Terra Ecosystem Is Boiling up

Speaking of DeFi yields, the constant, high yields in the Terra ecosystem (mainly Anchor’s fixed 20% APY on UST) has been a major cause for the ecosystem’s massive TVL growth and LUNA’s parabolic price rise. Now the next major catalyst is looming:

Do Kwon 🌖 @stablekwon

This week @terra_money goes multichain. - @wormholecrypto brings UST to @solana, @ethereum, @BinanceChain - @cosmosibc to @cosmos and @osmosiszone - @kadena_io to Kadenaswap and @Polkadot Web3 will be a network of connected blockchains, and $UST will pave its highways 🌕

Terra (UST) 🌍 Powered by LUNA 🌕 @terra_money

1/ The @wormholecrypto support for Terra in the V2 UI is live! Transfers of $UST and $LUNA between Terra, @ethereum, @solana, and @BinanceChain via Wormhole’s cross-chain bridge are now available :) https://t.co/2gWsIq2KxW

Ryan Watkins @RyanWatkins_

The infrastructure necessary for Terra’s next leg of UST growth is nearing completion. - Columbus-5: Live - Wormhole V2: Live - IBC: ~24 hours till launch What happens next has the potential to kick off a cross-chain trade boom. https://t.co/J6Rn02bfPB

Ryan Watkins @RyanWatkins_

In 2021 Terra's UST became a leading decentralized stablecoin reaching $2.5BN+ in circulation. With Colombus-5 and Wormhole V2 going live in the coming weeks, UST growth will likely accelerate, setting it up to challenge DAI for the top spot among decentralized stablecoins. 1/ https://t.co/jz5n3oITSi

Among the first to embrace Terra’s multi-chain strategy is (obviously) “DeFi 2.0” genius Daniele Sesta and his MIM/SPELL ecosystem.

Daniele 🧊🧙‍♂️ (🎩, 🎩) @danielesesta

Moooore cauldrons, new listings, first degenbox strategy with $UST, top volume on curve by 3x, pretty much 3B TVL, popsicle Relaunch and soon Avalanche Rush! What a fucking week is waiting for us!! End of October will be remarkable 🐸🤝🐸

Be Careful in NFT Land

Scams are nothing new in the crypto and NFT space. The problem is that the schemes are constantly evolving and becoming more and more sophisticated. Even for seasoned crypto users, it can sometimes be hard to detect scams… Be careful out there!