If you woke up with a smile at the Bitcoin price last Friday, a little investigation will soon reveal the reason for the sudden spike. This little tweet from Elon Musk matters:
As you have probably noticed, the latter added the mention of « Bitcoin » as well as the comment « inevitably in hindsight » in his biography. Jack Dorsey, CEO of Twitter, did the same.
It didn’t take longer for the markets to get going. After hitting a reserve price of $ 32,000 that same day, it topped $ 38,500 at its peak. It must be said that the support of the richest man on the planet sends a signal that is as strong as it is clear. The price corrected quickly thereafter, but Musk’s words nonetheless seem to have been the spark plug for the rebound we’ve seen since.
In a subsequent interview with investors in a private group, Musk allowed himself to go beyond his typical cryptic messages. “I think bitcoin is a good thing. I am a supporter of Bitcoin. I also think Bitcoin is about to be widely accepted by mainstream finance, ”he commented.
Is he now building a personal wallet or, more importantly, is he planning to follow in the footsteps of Michael Saylor and MicroStrategy by converting part of the money from TESLA into bitcoins? This could be a real catalyst for an explosion in the institutional adoption of cryptocurrency.
Apropos Michael Saylor: The latter will play a role for which all market investors will thank him. In fact, he presented a major conference yesterday on how he went about this migration to Bitcoin. « Thousands of executives, executives, directors and business consultants will be gathering in the first week of February and they will all want to find out how to get Bitcoin on their balance sheets. » Commented the client concerned. « We’re going to open [the plan] and make it available to everyone, while also remembering to save everyone millions of dollars and weeks or even months to make the transition easier, » he continues.
The first two of five conferences are chaired by Saylor. He will « provide an overview of Bitcoin as cash reserves and the various macroeconomic factors that lead to its takeover by corporate and institutional investors [and] an overview of how companies can integrate into the Bitcoin currency network and the benefits of the various strategies . «
The week was also marked by a further rise in the ETH token, with the result that it exceeded its historic highs in US dollars on Tuesday. Giant Grayscale added $ 38 million to its inventory just yesterday, which has undoubtedly fueled that surge. The open asset positions are also at an all-time high. While ETH’s success undoubtedly depends on the popularity of decentralized finance applications, traditional stock markets this week gave us a good example of their importance. In fact, several exchanges have frantically prevented certain securities from trading for the shares of GME and AMC, to name a few. Whatever one thinks of this corporate decision, it is clear that such censorship is impossible with DeFi applications, increasing the investor’s control and freedom.
The fund has been patient with its position on ETH, leaving around 35% of its assets exposed (and will remain) during the week’s surge.
The last trend that is particularly noticeable at the moment is the declining supply of Bitcoin on various exchanges. In fact, bitcoins, which glassnode claims are kept in wallets, are now at their lowest level in 2.5 years.
At the same time, recent data shows that US stock exchanges are enjoying unprecedented popularity. At the same time, there have been large withdrawals this week from the same exchanges to private wallets, many of which are said to be continuing long-term institutional buying.
This includes data from CEO Ki Young Ju of the analysis company CryptoQuant. The data shows that on January 31st alone, Coinbase withdrew 15,200 BTC into private wallets. According to Ki Young Ju, these withdrawals « went to custody portfolios that only have inbound transactions ».
The portrait is clear. There is less and less Bitcoin to buy on the stock exchanges as investor demand grows. The consequences for the value of the asset are only basic arithmetic!
The technical picture is good for the fund’s two positions, Bitcoin and ETH. Bitcoin officially broke the upward consolidation triangle yesterday and even closed the day above the significant 30-day average that had held up so far. Keeping the latter as support is the short-term goal.
Looking to the future, we might see Friday’s high of $ 38,500 as resistance, but this rise seems rather anecdotal in its technical significance. The bull market appears to be back and the real testing level is the all time high of $ 42,000 which is well worth revisiting.
On the Ethereum side, the high record in US dollars seems to be opening up some great opportunities, but in our humble opinion it will require the ETH / BTC ratio to hover above 0.045 and close for all signals for a to be really green are complete discovery of prices in the north.
The fund is 65% exposed to Bitcoin and 35% to ETH.
This article was made available to you by the Rivemont Fund. The Rivemont Crypto Fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA eligible. Qualified investors can find out more here.
Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and in no way constitutes investment advice or trading instruction
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|According to crypto experts, investments in Bitcoin are likely to remain strong in 2021 as Bitcoin recently set a new record of over $ 35,000.|
|Bitcoin, a Risky Investment Note that Bitcoin is based on an unregulated market and this virtual currency has no official price. It is an IT environment with its own rules that may prove unsuitable for people who do not have sufficient technical knowledge and skills.||With each new BTC high, many people thought it was too late to invest. This happened when prices hit € 10, € 50, € 200, € 1,000, etc. … And although the prospects for Bitcoin are not the most exciting, it is still possible to invest in Altcoins.|
|If you want to invest money in Bitcoin, you can either buy tokens (the coins of the cryptocurrency) or through an online broker that offers cryptocurrency trading through Contract For Difference (CFD), such as: B. eToro.||Bitcoin, a volatile asset As with these other assets, the value of Bitcoin is determined by supply and demand in marketplaces. Economic operators always start offers to buy and sell at a price that they set based on their own analysis.|
|and more intuitive brokers (Coinbase, Coinhouse, etc.). The latter are usually easier to use, but are more expensive. There are also some physical counters in Paris (Coinhouse), Caen (Bitcoin Avenue), Brest (Byzantine) or Bordeaux (Comptoir des Cybermonnaies).||Number of Bitcoin ATMs|
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