1. Market Wrap: Analysts See Further Upside in Ether as Bitcoin Stalls
BTC’s price has been roughly flat over the past week, compared with a 4% rise in ETH and a 23% rise in Solana’s SOL token over the same period.
Bitcoin has traded mostly sideways over the past two weeks, prompting some traders to consider alternative cryptocurrencies such as ether for greater profit potential.
“Our models are still full risk-on ETH (whereas our bitcoin model started reducing exposure last week) but we are starting to see some slowing in conviction buying,” Ben McMillan, chief investment officer at quantitative research firm IDX Insights, wrote in a research report.
BTC’s price has been roughly flat over the past week, compared with a 4% rise in ETH and a 23% rise in Solana’s SOL token over the same period.
“Investors are likely looking for the next catalyst for another leg higher, but the absence of such is likely to leave bitcoin vulnerable to a break below $60,000,” Daniela Hathorn, an analyst at DailyFX told.
“Typically, we tend to see BTC sell off a bit after breaking to a new all-time high as traders front-run the hype,” crypto research firm Delphi Digital wrote in a blogpost on Thursday, referring to traders dealing on advance information .
But some analysts expect further upside despite signs of slowing price momentum.
“With MVRV [bitcoin’s market value relative to its realized value] currently trading at 2.72, far off from its recent peak of 3.96″ in February, crypto investment firm StackFunds said in a report it is “expecting further room for growth as [MVRV] retests the 4.0 handle,” along with blockchain metrics showing strong bitcoin accumulation.
Latest prices
Bitcoin (BTC): $61,162, -2.95%
Ether (ETH): $4,486, -3.17%
S&P 500: $4,675, +0.32%
Gold: $1,793, +0.95%
10-year Treasury yield closed at 1.52%
Why this bull run is different
Bitcoin’s two bull runs of 2021 have differed from those in past years. One key distinction has been decreased volatility expectation told.
This metric, which shows the cryptocurrency’s expected price swings, did not spike when bitcoin’s price hit record highs in April and then in October, indicating that bitcoin may be evolving into a more mature investment asset.
2. Bitcoin Cash Briefly Spikes on Fraudulent Press Release
The crypto rose over 4.6% from $602.63 at around 11.30 UTC to $630.70 in less than 15 minutes after the publication of a fraudulent announcement.
Bitcoin Cash (BCH) saw a sharp but short-lived uptick in its value on Friday after the publication of a fraudulent press release claiming that U.S. supermarket giant Kroger would be accepting the cryptocurrency as payment this holiday season.
The crypto rose over 4.6% from $602.63 at around 11.30 UTC to $630.70 less than 15 minutes minutes later following the fraudulent announcement’s publication. BCH subsequently gave back all its gains to fall below the price it had been prior to the announcement. At the time of writing it is priced at $601.74.
As per the announcement, which was issued on PRNewswire and appeared on the Kroger website, the grocery retailer would be accepting BCH for all in-store and online purchases from Dec. 1.
A company spokesperson confirmed to CoinDesk at 11:49 that the release was fraudulent. At press time, the release had been removed from the company site.
“This morning a press release was fraudulently issued claiming to be The Kroger Co. that falsely stated the organization will begin to accept Bitcoin Cash. This communication was fraudulent and is unfounded and should be disregarded,” a spokesperson said.
This fraud is similar to the one in September which fraudulently claimed that Walmart would start to accept litecoin.
Bitcoin cash, the world’s 21st largest cryptocurrency by market capitalization at the time of writing according to CoinMarketCap data, was formed out of a hard fork on the bitcoin network in 2017.
3. Day 4 of Kleiman v. Wright: Craig Wright’s Testimony Delayed
The self-styled “Satoshi” will likely take the stand on Monday.
MIAMI — Craig Wright — the Australian computer scientist best known for his widely disputed claim to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin — is now expected to testify in a Miami court on Monday.
Wright was initially slated to testify Thursday, according to an earlier schedule drawn up for the jury by Judge Beth Bloom of the U.S. District Court for the Southern District of Florida.
However, Wright’s defense team’s questioning of Ira Kleiman, the plaintiff in the case, went all day Thursday and is expected to spill over into late Friday morning.
After Kleiman’s testimony wraps, the plaintiffs are expected to introduce pre-taped video testimony from two witnesses, including Wright’s ex-wife, Lynn Wright.
Kleiman is suing Wright for what he alleges to be his brother Dave’s share of proceeds derived from business arrangements between the two men, including intellectual property and bitcoin that Ira says they mined together.
Ira based these claims on information he received from Wright and others following Dave’s death in April 2013, as well as emails and other documents.
However, it is unclear whether Wright has access to any of the alleged 1.1 million bitcoin (which would be worth over $67 billion).
Much of it is in wallets associated with Nakamoto and other sources, but Wright has never been willing or able to demonstrate he controls the wallets of Bitcoin’s creator.
Andres Rivero, lead counsel for Wright’s defense, focused his cross-examination of Ira on his strained relationship with his brother Dave before the latter’s death, in an attempt to depict Ira as purely motivated by financial gain.
The defense also sought to downplay Dave’s purported role in the conception of Bitcoin by establishing a timeline of his poor physical health in 2008, the year the Bitcoin white paper was published.
Under cross-examination by Rivero, Kleiman said he erased and overwrote data on all but one of the 14 devices that were recovered among David’s belongings, and threw another away. The defense argues that if Dave had any bitcoin or other information and Ira couldn’t find it, that’s his fault.
4. Square’s Cash App Generated $1.8B in Bitcoin Revenue in Q3
The payments firm said bitcoin revenue and gross profit fell in the third quarter versus the prior quarter due to the relative stability in bitcoin prices.
Payments firm Square said in its third-quarter earnings letter Thursday that its peer-to-peer payment service, Cash App, generated $1.82 billion of bitcoin revenue in the quarter and $42 million of gross profit, up 115% and 29% year over year, respectively.
Bitcoin revenue and gross profit decreased in the third quarter versus the second quarter, however, Square said, citing the “relative stability in the price of bitcoin, which affected trading activity compared to prior quarters.”
Square also noted bitcoin revenue and gross profit may fluctuate in future quarters given changes in customer demand and bitcoin’s market price. It said that may be particularly the case “as we lap strong growth rates on a year-over-year basis in the fourth quarter of 2020.”
Square’s total net revenue was $3.84 billion in the third quarter, up 27% year over year, while gross profit was $1.13 billion, up 43% year over year.
On its third quarter conference call, the company said it will release a white paper on Nov. 19 regarding TBD, its new division focused on creating an open developer platform to build a decentralized bitcoin exchange.
Square also said on the call that the company doesn’t plan on offering users other cryptocurrencies outside of bitcoin. The company said it is focused on building its hardware wallet and continuing plans to allow individuals and businesses to mine bitcoin. CEO Jack Dorsey initially alluded to the latter plan in a tweet several weeks ago.
Shares of Square were down about 4.9% in post-market trading following the release of its Q3 results.
5. Bitcoin Faces Resistance Near $64K, Support Between $55K-$60K
Upside momentum is slowing, which suggests a period of consolidation could persist in the short term.
Bitcoin (BTC) continues to trade in a tight range, although buyers appear to be holding support above $60,000. Short-term indicators are neutral, although pullbacks could be limited given a series of price breakouts over the past month.
If buyers fail to hold $60,000, lower support around the 50-day moving average, currently near $55,000, could stabilize a pullback.
Bitcoin was trading around $61,500 at press time and is roughly flat over the past 24 hours.
For now, upside momentum is slowing, which suggests a period of consolidation could persist in the short term. Eventually, indicators suggest momentum could improve to support a breakout in BTC above $65,000 based on positive historical returns in the fourth quarter.
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November 5, 2021
