1. Top 5 cryptocurrencies to watch this week: BTC, DOT, LUNA, AVAX, EGLD
Even as Bitcoin consolidates, DOT, LUNA, AVAX and EGLD may continue their upward journey.
Bitcoin’s (BTC) dominance has dropped from about 48% on Oct. 20 to 42.3% on Nov. 7 while the total crypto market capitalization has continued its northward journey. This indicates that the price action has shifted from Bitcoin to altcoins.
CryptoQuant CEO Ki Young Ju said that Bitcoin whales are selling but this has not resulted in the breach of the strong support at $60,000. He also pointed out that Bitcoin reserves across exchanges have continued to decrease, indicating strong appetite from buyers.
The majority of the market participants remain bullish on Bitcoin and anticipate a rally to $288,000 by the start of 2022, according to a survey conducted by PlanB.
Real Vision founder Raoul Pal also projected a bullish picture for cryptocurrencies in an interview on Nov. 3. He said the current bull run is unlikely to top out in December of this year and may extend to between March and June of the next year. Pal anticipates the possible launch of Ethereum 2.0 and the likelihood of an Ether (ETH) exchange-traded fund being green-lit in the first half of 2022 will attract institutional investors and trigger a massive rally.
In this bullish backdrop, let’s analyze the charts of the top-5 cryptocurrencies that may remain in focus and outperform in the short term.
2. Bitcoin Tops $66K, Resuming Uptrend as Real Bond Yields Slide
The cryptocurrency may face some selling pressure around $70,000, one trader said.
Bitcoin shot up on Monday, ending an almost three-week-long sideways churn that saw persistent demand around $60,000.
The cryptocurrency topped $66,000 during the European hours and appeared set to challenge the record high of $66,975 reached on Oct. 20, CoinDesk data shows. Ether, the native token of Ethereum’s blockchain, also broke its previous record early Monday; its price briefly passed $4,700 around 1:00 UTC, according to CoinDesk data. Bitcoin is the world’s largest cryptocurrency by market capitalization, whereas ether, is the second largest.
Yuya Hasegawa, crypto market analyst at Japan’s exchange bitbank, said sinking real or inflation-adjusted bond yield may be powering bitcoin higher. “Real yields sliding due to inflation fears may have caused the recent BTC rally,” Hasegawa told. Data from U.S. Department of Treasury Shows the 10-year real yield dipped to -1.09% on Friday, the lowest since Aug. 30.
Bitcoin is widely perceived as a store of value asset like gold and while Federal Reserve’s Chairman Jerome Powell reiterated last week that price pressures may be transitory, fears of inflation running out of control persist.
“The inflation narrative still dominates the headlines and people are feeling the pinch globally,” Coinbase said in its weekly email on Friday. “Whether it’s gas prices in the U.S., energy prices in Europe or food prices in Latin America, the headwinds of supply chain constraints and a shrinking labor force has investors looking for a store of value.”
On-chain data also show bullish signs for bitcoin in the medium term, said Eddie Wang, senior analyst at OKLink research, crypto exchange OKEx’s on-chain data research arm. The network’s hashrate has been steadily increasing since July, the mining difficult has also increased eight times, and miners have accumulated over BTC 3,000 in their wallets since September, Wang said.
The number of unique wallets with a balance of more than zero has returned to 39 million, close to the record high of 39.28 million non-zero wallets in May, Wang said, citing the data as an indicator of a positive sentiment in the market.
An increase in bitcoin-pegged coins and stablecoins is also a sign of a bull market, Wang said. The analyst noted that 6,022 wrapped bitcoin (WBTC) were printed on Ethereum in the last seven days, and Tether printed 1 billion ERC-20 USDT on Nov. 5.
Data tracked by blockchain analytics firm Chainalysis shows renewed accumulation by large investors, i.e. whales. Investors holding at least 1,000 BTC snapped up 142,000 coins in the last week of October, taking the cumulative tally to nearly 200,000 BTC — the highest in 2021.
3. Sequoia Jumps Into Token Plays With Investment in DeFi Project Parallel
June filings show the VC giant has a relationship with Coinbase Custody.
Sequoia Capital is backing a seven-figure token round for decentralized finance (DeFi) lending project Parallel.
The round, which values the Polkadot-based protocol at $250 million, comes less than two weeks after Sequoia pledged to restructure its investing playbook to, in part, more aggressively court crypto plays. Fellow venture capital giant Andreessen Horowitz (a16z) did the same in 2019; it now raises multibillion-dollar funds exclusively for crypto.
Whether Sequoia will move as aggressively as a16z is unclear, though the investment in Parallel speaks to a willingness to invest in early-stage crypto teams.
Parallel is building a fast-growing project on Polkadot, a crypto network that is not yet fully launched.
“We are incredibly excited about the vision and potential of DeFi,” Sequoia Partner Josephine Chen said in a statement. Chen said Parallel is positioned to help “legacy firms” more readily engage in the space.
Sequoia Capital is backing a seven-figure token round for decentralized finance (DeFi) lending project Parallel.
The round, which values the Polkadot-based protocol at $250 million, comes less than two weeks after Sequoia pledged to restructure its investing playbook to, in part, more aggressively court crypto plays. Fellow venture capital giant Andreessen Horowitz (a16z) did the same in 2019; it now raises multibillion-dollar funds exclusively for crypto.
Whether Sequoia will move as aggressively as a16z is unclear, though the investment in Parallel speaks to a willingness to invest in early-stage crypto teams.
Parallel is building a fast-growing project on Polkadot, a crypto network that is not yet fully launched.
“We are incredibly excited about the vision and potential of DeFi,” Sequoia Partner Josephine Chen said in a statement. Chen said Parallel is positioned to help “legacy firms” more readily engage in the space.
Parallel is one of the many projects building DeFi toolkits for retail and institutional crypto clients. The startup raised in August at a $150 million valuation. The project has increased its user base 400% in the months since, Parallel founder Yubo Ruan told.
4. Bank of China Reveals Machine That Converts Foreign Currency to Digital Yuan
The machine requires a passport, but not a bank account.
The Bank of China has shown a machine that converts foreign currencies into digital yuan, China Times reported today.
The machine is likely in preparation for the 2022 Beijing Winter Olympics, when the central bank digital currency (CBDC) is set to be introduced to the rest of the world.
Users need to link their passports to the transaction, but don’t need a bank account, according to the report. The machine, unveiled at China’s International Import Expo in Shanghai, currently supports 17 foreign currencies.
Foreigners in China have been able to use the digital yuan since at least May of this year.
The CBDC has been used in $9.7 billion worth of transactions, the head of the PBOC Digital Currency Research Institute Mu Changchun said last week.
5. Shiba Inu Sees Record Speculative Frenzy, Snaps 5-Week Winning Trend
Previous episode of speculative frenzy in SHIB paved the way for a 90% price crash.
Speculative fervor in popular meme token shiba inu (SHIB) recently reached unprecedented levels, reprising the retail frenzy observed ahead of May’s price crash.
The number of addresses that acquired the cryptocurrency within 20% of the all-time high price climbed six-fold to a record 116,560 in the eight days to Nov. 2, amounting to 12% of the total count of non-zero addresses, according to data provided by blockchain analytics firm IntoTheBlock.
The spike in so-called “All Time Highers” addresses tracked by IntoTheBlock indicates a rush to buy the cryptocurrency near the lifetime price high — a sign of fear of missing out (FOMO) among traders. FOMO is often observed in the last leg of the bull markets.
“Last time this pattern emerged in Shiba Inu in May, SHIB dropped by 90%,” IntoTheBlock said in its weekly newsletter published Sunday.
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November 8, 2021
