1. Market Wrap: Bitcoin Nears All-Time High As US House Passes $1.9T COVID-19 Relief
Bitcoin is within range of a quick run to the all-time high of $58,332.
Bitcoin (BTC) trading around $56,248.28 as of 21:00 UTC (4 p.m. ET). Climbing 3.54% over the previous 24 hours.
Bitcoin’s 24-hour range: $53,101.24-$57,336.75
BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
Bitcoin gained for a sixth straight day, extending its longest winning streak of the year and approaching the record high price reached last month.
The largest cryptocurrency was changing hands above $56,000, up about 3% on the day, and within range of a quick run to the all-time high of $58,332.
“We continue to see strong upward momentum from technicals,” Gary Pike, director of sales and trading at institutional cryptocurrency trading platform B2C2 USA, told us. “One should not be surprised for bitcoin to test the old highs and potentially break through.”
2. Grayscale Halts New Investments in GBTC After Trading at 15% Below Bitcoin
Earlier today, the investment manager’s parent company, Digital Currency Group, said it authorized the purchase of GBTC shares.
Digital assets management firm Grayscale has halted inflows to the Grayscale Bitcoin Trust (GBTC) after the fund traded at a 15% discount to the price of the bitcoin (BTC, -0.26%) the trust holds.
Rocked by the number of alternative bitcoin trusts and Canadian bitcoin exchange-traded funds, Grayscale Bitcoin Trust has been trading below the price of bitcoin for several weeks. Its sibling, Grayscale Ethereum Trust, has also flipped into negative territory.
DCG announced earlier today that it would buy up to $250 million in GBTC shares. Repurchasing shares is a common tool used by companies seeking to increase the price of those shares by simultaneously creating demand while decreasing the number of shares outstanding. Yesterday, CoinDesk revealed Grayscale is hiring nine specialists in the ETF space, possibly signaling a pivot in its fund’s business model.
3. Decentralized Exchange Launches for Dogecoin Swaps
The new DogeDEX from Komodo will allow fans to make peer-to-peer exchanges of the cryptocurrency.
A dogecoin-focused platform has launched to enable peer-to-peer exchanges, or “atomic swaps,” of the resurgent cryptocurrency
In an announcement Wednesday, open-source cryptocurrency and blockchain solutions provider Komodo said its “DogeDEX” went live on March 1, and has already seen over 3,000 downloads. The service is powered by the AtomicDEX engine and is available through both desktop and mobile apps.
Atomic swaps are a way for users to directly exchange cryptocurrencies without need for a third party such as a centralized exchange.
4. Will Bitcoin Crash? Not Below $48K, Blockchain Data Suggests
Blockchain data might give traders comfort that prices aren’t likely to revisit the end-of-2020 level anytime soon.
Bitcoin has often traded like a risky asset over the past few weeks — selling off along with U.S. stocks as bond yields rose, typically in response to nagging worries the Federal Reserve might step in to tighten monetary policy sooner than previously signaled.
But a new analysis of data extracted from the Bitcoin blockchain suggests the risk of a steep sell-off might be capped on the downside by buyers who appear to enter the market whenever prices fall to about $48,000.
There are no signs that such a sell-off is brewing, with bitcoin’s price rising Wednesday for a sixth straight day to a two-week high around $57,000. But the new analysis, by the South Korean blockchain-tracking firm CryptoQuant, might give traders comfort that prices aren’t likely to revisit the end-of-2020 level of around $29,000 anytime soon.
5. JPMorgan’s New Crypto Bond ‘Not for the Faint of Heart,’ Former Star Analyst Hintz Says
Brad Hintz, a former star Sanford Bernstein analyst, Morgan Stanley treasurer and Lehman Brothers CFO, explains the risks in the fine print.
Like a lot of Wall Street’s alchemical “structured products,” JPMorgan Chase’s new cryptocurrency-focused bond is full of arcane risks — many of them detailed in the fine print in the largest U.S. bank’s 18-page regulatory filing on the newfangled financial offering.
Daunted by the prospect of dissecting the instrument on our own, CoinDesk turned to the smartest person we could think of to undertake the effort: Brad Hintz, an adjunct finance professor at New York University and former top-ranked brokerage-firm analyst for Sanford Bernstein, itself among the best-of-the-best when it comes to investment research. Before that Hintz served as corporate treasurer for Morgan Stanley and CFO for Lehman Brothers.
In other words: He understands what to make of complicated financial instruments like these, and how to think about them.
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March 11, 2021