Bitcoin (BTC) holdings at public companies topped $6.8 billion this year as newcomers catch up with industry heavyweight Grayscale.
According to monitoring resource Coin98 Analytics, a total of 13 public companies have now invested in Bitcoin.
Putting Grayscale’s “sun” in the shade
Asset management giant Grayscale remains the largest BTC player with 449,596 BTC ($5.14 billion) under its control, followed by CoinShares’ 69,730 BTC ($797 million).
MicroStrategy, the firm which made waves when it announced it had moved to adopt a “Bitcoin Standard,” has 38,250 BTC ($437.1 million). In fourth place is Mike Novogratz’s Galaxy Digital, which controls 16,551 BTC ($189.1 million).
In total, the 13 companies have almost 600,000 BTC ($6.86 billion) locked up, a number which is increasing with Grayscale thus far remaining in the lead.
Public companies’ Bitcoin holdings. Source: Coin98 Analytics/ Twitter
“Grayscale is the sun,” its confident CEO Barry Silbert commented on Coin98 Analytics’ numbers.
For all Silbert’s publicity activities, however, it is MicroStrategy CEO Michael Saylor who has arguably made the biggest impression in cryptocurrency this year. After the purchase, Saylor began giving regular interviews on Bitcoin’s supremacy over fiat currency and continues to be highly active on social media with the same message.
Replying to a tweet by Silbert on Oct. 12, in which he discussed the Bank of England’s perspective on Bitcoin, Saylor said:
“#Bitcoin is the first digital monetary system capable of storing all the money in the world for every individual, corporation, and government in a fair & equitable manner, without losing any of it. If that’s not intrinsically valuable, what is?”
Bitcoin shows clear dollar divergence
The past month meanwhile has seen Bitcoin diverge from both U.S. dollar strength and VIX volatility, providing new opportunities for investors keen to diversify.
According to a comparison from Cointelegraph Markets and Digital Assets Data, it is stocks in the form of the S&P 500 and gold which now see increasing correlative patterns with BTC.
Macro asset returns comparative chart. Source: Cointelegraph/ Digital Assets Data
This has in turn boosted existing anticipation of a clean divergence away from traditional markets — a “decoupling” for Bitcoin paves the way for significant price gains, analysts argue.
This Indicator Shows Bitcoin Could Reel to $12,500 Before Rallying Higher
- Bitcoin has simply been ranging throughout the past few days, with bulls building a strong base of support within the lower-$13,000 region as bears struggle to gain any momentum
- This support could help catapult it higher in the near-term, but the slight rejection seen at $13,600 yesterday does indicate that downside could be imminent
- There is one technical indicator that suggests some downside could be right around the corner
- One analyst spoke about this in a recent tweet, noting that a decline towards $12,500 might take place before Bitcoin can push higher
Bitcoin has been caught within an unrelenting consolidation phase ever since it lost its momentum after being rejected at $13,800.
This level has historical significance, as it happens to be where the cryptocurrency’s 2019 rally came to a bitter end.
The resistance here, coupled with a sudden surge in the US Dollar’s value, caused it to plunge as low as $12,800 before it found serious support that led it back up to where it is currently trading.
Where it trends in the days and weeks ahead should depend largely on whether or not it can continue trading above $13,000.
One analyst is noting that an indicator suggests that a move to $12,500 may need to occur before it can see any further upside.
Bitcoin Consolidates Following Recent Rejection
At the time of writing, Bitcoin is trading down just over 1% at its current price of $13,250. This is around where it has been trading throughout the past few days.
Earlier this week, BTC rallied as high as $13,800 before it lost its momentum and slid as low as $12,800.
The buying pressure here was intense and nearly instantly sparked a rebound.
It still has a way to go before it is back in firm bull territory, as the overhead resistance it faces is quite intense.
Indicator: Decline Towards $12,500 Could Be Imminent
While sharing his thoughts on where Bitcoin may trend next, one analyst explained that Bitcoin’s Renko chart suggests a move to $12,500 is in the cards.
“The same BTC structure is present on Renko and we’ve still not had the ‘playout’ for the divergence. Still looking for $12.5k in line with the prior moves to the downside after these strong runs. Traditional markets paving the way,” he explained.
Image Courtesy of Cold Blooded Shiller. Source: BTCUSD on TradingView.
Because altcoins have been bleeding out as Bitcoin consolidates, a potential decline down to $12,500 could spark another bout of capitulation for smaller tokens.
Featured image from Unsplash. Charts from TradingView.
Impending pennant breakout sets Bitcoin price back on the path to $14,000
As the weekend approaches, Bitcoin (BTC) price appears set to close out the month with a remarkably strong performance which has many bulls calling for a new all-time high above $20,000 in the near future.
Traders attribute these lofty estimates to the fact that BTC appears to have flipped $12,000 to $12,500 to support and barring some unexpected price implosion, Bitcoin is on the path to painting a beautiful monthly candle.
Further ‘bullish’ evidence comes from today’s options and futures expiry which saw $450 million of futures open interest expiring as of Oct.28.
According to Cointelegraph contributor Marcel Pechman:
“The most recent options expiry for BTC and Ether really provided nothing surprising. Deribit is back to 137K BTC options versus the 150K open yesterday. Meanwhile, CME has $215 million futures open interest expiring on Oct. 30, but this appears to have had a very minimal impact on price, if any at all. Once again, the phenomenon of the pre and post BTC price drop on the occurrence of CME futures expiries no longer exists. This reaffirms the bull case for the recent run, despite the negative news from Asian exchanges and Tether.”
Currently, BTC is trading above $13.5K, and the 4-hour chart shows the digital asset making higher lows and lower highs as the price pulls into a tighter range.
Even as the price holds above the 20-day moving average, it wouldn’t be unexpected to see it range between $13,500 to $12,900 through the weekend and into early next week.
If Bitcoin price is able to push above the pennant trendline at $13,620 and secure a 4-hour close above it, then a renewed push for a new 2020-high above $13,859 is possible.
Currently, as trading volume increases, the moving average convergence divergence indicator shows the MACD has crossed above the signal line (orange) and the histogram shows an increase in momentum. The RSI is also above the midline, just reaching 60, but for the last few days, BTC has met resistance at $13,660.
In the event that BTC loses its current momentum and drops from the pennant below $13,100, there is support at $12,800. Failure to hold at this level opens the door for a retest of the next support at $12,000 and below this $11,500.
From a bird’s-eye-view Bitcoin’s current price action is very strong and the digital asset is clearly in a strong uptrend with room to run higher. The same cannot be said for altcoins which have taken an absolute pummeling throughout this week. At the time of writing Ether (ETH) price is down by 5.8% as the top altcoin struggles to reclaim $$400 as support. Chainlink (LINK) has dropped 6.74% and Binance Coin has lost 6.10%.
According to CoinMarketCap, the overall cryptocurrency market cap now stands at $396.6 billion and Bitcoin’s dominance rate is 63.5%.
Tim Draper seeks to ‘DeFi‘ the venture capital business with Bitcoin
Two years ago, venture capitalist and noted Bitcoin investor Tim Draper publicly stated that Bitcoin will hit $250,000 by 2022. Yet, as Bitcoin continues to gain interest from investors, Draper revealed to Cointelegraph during an interview that a $250,000 price prediction may have been conservative: “I think it’ll certainly hit that. But a lot of people are thinking that $250,000 was a little too conservative.”
Draper also discussed the impact of the COVID-19 pandemic on the blockchain space, noting that tokenization will play a major role in solving problems related to global shipping and real estate. Additionally, Draper shared his thoughts on decentralized finance, or DeFi, saying he wants to “‘DeFi’ the venture capitalist business” moving forward.
The full interview can be viewed on Cointelegraph’s YouTube channel.
Cointelegraph: What are your thoughts on how the COVID-19 pandemic is impacting the blockchain space?
Tim Draper: A couple of things have happened since the pandemic. Some people say it’s condensed the time for us to adopt new technologies. People are stuck in place and they’re saying, “Yeah, why don’t I try to see what VR is like for remote medicine or remote education?” Some of the things that we’ve been backing over time have gained a lot of attention during the pandemic because people haven’t been able to leave their homes.
The other thing that has happened was that when the U.S. government printed $13 trillion dollars, they immediately diluted the dollar by 20 or 30%. That was a real shock to the system. People then said, “Well, wait, where do I put my money? Do I put it into gold, or do I put it into Bitcoin where it’s a great store of value?” A lot of people have said they want to move their money into Bitcoin.
Another thing is that millions of people are going to die from this pandemic. But 135 million people are going to die from starvation because of the government’s reaction to the pandemic. Government lockdowns have shut off different supply chains around the world. As a result, people are starving.
But whenever there’s a crisis, there’s a great opportunity to do something extraordinary. When there was a financial crisis for example, Satoshi Nakamoto came up with Bitcoin. And I think that as we’re able to put more restrictions and more accounting systems around the blockchain, we’re going to be able to use Bitcoin interchangeably with dollars.
CT: Right now, the world is in the midst of a crisis. Which technological breakthrough will help humanity come out stronger on the other end?
TD: Tokenization will advance. We’re seeing it in real estate, global shipping and in everything where items of value need to be moved between parties. Now, these items can be transferred over the internet, which is so useful for industries like real estate and global shipping. In the case of real estate, you could buy a piece of my house, or you could tokenize my real estate and own a piece of that property without having to buy the whole thing.
Tokenization and shipping is also a great way for people to own containers to keep track of the entire Iot. I think we’re going to see some extraordinary breakthroughs in shipping and also with any kind of logistic use cases.
CT: Another thing that we’re seeing is the rise of DeFi. Do you think DeFi is just a bubble or will this actually drive adoption?
TD: I think that DeFi had to happen. People have been sitting on their Bitcoin or their other cryptocurrencies just watching as they appreciate in value instead of having that money being put to use. But, you want your money constantly put to use.
I ultimately want to “DeFi” the venture capital business, where I raise a fund just in Bitcoin, I invest it just in Bitcoin, and the entrepreneurs pay their employees and suppliers all in Bitcoin. Then, all the accounting through that system should be on the blockchain. My relationship with the entrepreneur and my relationship with my investors can all be on a smart contract, so that if there’s a big winner, it can all be distributed into many different Bitcoin wallets. I think this will eventually happen, but right now the accounting isn’t set up. We are now seeing the early DeFi use cases, but longer term, all the accounting, the taxes, the whole thing will be done using Bitcoin.
All that DeFi will then become a bridge to “ReFi” where it’s retail and we’re using this as the major currency for all of our purchases. It will just become a part of the world economy. I think this will include Bitcoin, along with four or five other cryptocurrencies.
Ultimately, I think that fiat currencies will slowly go away. And I think that the governments who are saying, “Oh, I’ll do a centralized cryptocurrency that is tied to my country’s currency,” well, that defeats half the purpose. Half the purpose of doing this is that your currency is not tied to some political force. You can’t inflate against debts, and you can’t operate the way Argentina has been for 100 years. You have to operate fairly across the board. That’s the beauty of what we’ve got in cryptocurrency, which governments don’t have with fiat currency.
CT: And are you still sticking with your prediction that Bitcoin will hit $250,000 by 2022?
TD: Yes, Bitcoin will hit $250,000 by 2022 or the beginning of 2023. That $250,000 is really based on a 5% market share of currencies. I think that’s easily achievable, especially as more women start using Bitcoin, since they control 80% of retail spending. It’s really interesting that there used to be one in 15 Bitcoin wallets that women held, and now it’s advancing. As women start using those wallets, they’ll realize this is much easier. I moved as much of my money as I felt fair into Bitcoin. And so, yes, I think it’ll certainly hit that, but a lot of people are thinking that was a little too conservative.