Friday October 30, 2020
Bitcoin enjoyed a 10% pop heading into the week on the coattails of JP Morgan calling a 10x move to the upside for BTC on the simple premise that it was the adjustment required to match investments into the boomer substitute: gold. This was followed by an announcement stating JPM Coin already in service commercially this week under Onyx- a business unit created to manage the blockchain and digital currency efforts staffed with 100+ employees.
This pushed $BTC back up to throwing distance away from the $14K hardstop that we have yet to breach since the 2017 pop to ATHs.
While Bitcoin dominance gained 6.6 points from the mid-September trough, no meaningful uptick in new wallets imply that those that have diversified out into higher beta altcoins (or perhaps returning from the DeFi venture) are bringing capital back into the OG as balances on exchanges continue to head south; hitherto a good indicator of upside.
Compounded by the unfortunate mishaps in DeFi detracting additional capital inflows (latest being Harvest Finance losing $34 million) and the crescendo of converts banging the table to trade at the cusp of a breakout, many have joined the party. Grayscale certainly benefited from the shift as CEO Barry SIlbert popped his collar after witnessing a $300 million inflow into GBTC the same day Paypal announced their foray into the space. While the professional trader cohorts hedge the downside on this breakout,
Whales are piling in
and with participant expectations back with the bull,