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Daily Bitcoin and Crypto Analysis

Daily BTC Analysis

December 20, 2020

Welcome to the Weekender: your weekly recap of the top news stories across the digital asset space. Every Sunday, I take a look at the most-clicked links of the week to bring your focus to the news that matters. Today, we start with the story that American Express, one of the biggest financial firms in the US, has entered the cryptocurrency market with the latest investment in an institutional crypto trading platform, FalconX. The American Express Ventures did not disclose the actual size of the investment.

According to the official press release shared by FalconX, American Express is planning to explore a potential opportunity to offer services related to digital assets with the recent partnership. FalconX is a digital asset trading platform focused on institutional investors.


Founded in 1850, American Express is one of the oldest financial firms in the US with headquarters in New York. The current market capitalization of the financial firm is around $95 billion. The company recently ramped up its efforts to address the growing demand for digital assets, and the recent investment in FalconX is another step towards the adoption of the evolving market of cryptocurrencies.


Following MicroStrategy, the Bitcoin-friendly fintech company Square shocked the space earlier this year when it revealed it would be deploying capital into BTC. The large Silicon Valley firm spent $50 million from its balance sheet, around 1% of its assets, on BTC. This marked the second time a U.S. based publicly-listed company had put BTC onto its balance sheet as an investment.


Twitter wasted no time in letting us know that Square is now up over 100% on that investment. Square joins MicroStrategy and a number of other firms and funds that have made extremely successful investments in BTC over the past few months.


As Bitcoin marched to new all-time highs this week, it was only right that a rather optimistic prediction of how high Bitcoin could go was aired on Bloomberg TV. Guggenheim’s chief investment officer Scott Minerd has given a target price of $400,000 for Bitcoin. Minerd adds that this prediction is based on fundamentals given the “rampant money printing” by the Federal Reserve. The tweaking dollar and the rising inflationary pressure should eventually pull BTC to these levels, he adds.


Guggenheim has already applied with the SEC for a $500 million exposure to Bitcoin (BTC) via the Grayscale Bitcoin Trust (GBTC). This investment will be part of Guggenheim’s $5 billion Macro Opportunities Fund. With the recent Bitcoin rally, the total assets under management of the Grayscale Bitcoin Trust (GBTC) have moved past $11.5 billion.


E-commerce giant Paypal’s stock price surged to a new all-time high of $223.16 on Monday, December 14. Since November 12, when the payments giant opened the way for its US customers to start trading cryptocurrency, the stock has soared 17%.

The stock’s record-breaking performance comes after Paypal recently reported a drop in its third-quarter earnings in October. While that performance subsequently forced Paypal not to provide preliminary guidance for 2021, there is, however, a belief that the cryptocurrency trade service will result in a turnaround of the company’s fortunes.


U.S. cryptocurrency exchange Coinbase had confidentially filed a draft registration for a public offering to the Securities and Exchange Commission (SEC). On December 17, 2020, the exchange made the announcement on its blog, stating that the firm submitted a draft registration statement on Form S-1 with the SEC. The firm also clarified:

The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions.


Plans of looking for an initial public offering (IPO) date back from July 2020. It was previously reported that Coinbase Inc. was planning a U.S. stock market listing for later this year or early 2021, citing a Reuters report, although it’s not clear which stock exchange they are targeting.


The latest valuation put the U.S.-based crypto exchange at over $8 billion, and this move opens the doors for a future IPO for one of the biggest names in the crypto industry nowadays.


Having trail-blazed the way for crypto companies listing on the US stock markets, EQUOS.io CEO Richard Byworth presented at the LD Micro 13th annual Main Event Conference on the vision and strategy of EQUOS.io parent company, Diginex.


Richard’s presentation was watched by 1500 investors live, and he took a number of questions from the audience. Diginex also sponsored the keynote speech by former US Presidential candidate Brock Pierce, one of the earliest proponents of cryptocurrencies and blockchain technology, and Richard had the opportunity to deliver an introduction to Brock in front of a live audience of 17,000 investors.


You can watch Richard’s full speech by clicking the image below.


Have a great Sunday!


Technical Analysis

This week's Wednesday/Thursday rally added a mere $4,000 to the price of Bitcoin. The selling pressure we had witnessed around the $19,500 finally gave way, as a wave of buying hit the screens. Prices quickly exploded higher, and this weekend, have set a new all-time high of $24,220.


As we look at the week ahead, the question is: Can Bitcoin consolidate and retain its gain?


Our first clue is the top line of the trend channel. Bitcoin has been capped by this on two occasions already. A period of side-ways trading above $23,000 will set the ground work for the next leg higher. A break up above this top trend line (in light blue on the chart above) will likely lead to explosive move higher, that fails to hold.


On the downside, a move back down to $21,000 will provide some key data as to the appetite of fresh buyers at these levels. Monday will be a critical day as we move into Christmas week. This Friday, we will see a large option expiry on Christmas day, with the market open 24/7, it's possible that this year's turkey will be served with a side dish of volatility.


The Market in Numbers

This Week's Coffee Reading

Who did the most for real-world crypto and blockchain adoption in 2020?


2020 has been an epic year for crypto and blockchain, but some did more than most to help spur adoption...


In future years, it’s possible that 2020 will be seen as a watershed moment for cryptocurrencies. When Black Thursday hit in March, it wiped billions off the markets in a matter of hours. Anyone would have been forgiven for thinking recovery would take years.


But by December, Bitcoin (BTC) has gone on to achieve a new all-time high, breaking

Indeed, 2020 has also seen active addresses approach 2017 levels, according to data from Glassnode. So, as much as speculation points to institutional investors as the reason for Bitcoin’s meteoric recovery, the data suggests that general adoption is on the rise.


This leads to the question: Which companies, governments, and other entities have made the greatest contribution to cryptocurrency adoption in 2020? In no particular order, here are Cointelegraph’s top picks:


PayPal


When it emerged in late October that the payments industry behemoth was planning to integrate cryptocurrencies into its platform, the markets responded with gusto. PayPal’s news confirmed what many had been suspecting for some time, but the announcement came with a surprising cherry on top: PayPal also announced that from January, users would be able to spend cryptocurrency at any of its 26 million merchants.


It isn’t just Bitcoin that has benefited from the news, which appears to be creating a positive reinforcement cycle for PayPal’s stock too. Shares in the company have risen by 17% over the months since its announcement. While users in the United States can already take advantage of the service, PayPal will launch crypto trading to all of its 300 million global user base starting from next year.


 Discover the rest here !

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