By Kitco News / November 08, 2021 / www.kitco.com /
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Strengths
Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Doge Universe (SPACEXDOGE), rising 511,160.61%.New York City Mayor-elect Eric Leroy Adams said he would take his first three paychecks in Bitcoin. He tweeted the news on Thursday and mentioned that “NYC is going to be the center of the cryptocurrency industry.”Compounding and saving in Bitcoin by using a dollar-cost averaging strategy helps reduce the impact of Bitcoin’s volatility. Bitcoin is a savings technology and a store of value when you save consistently, writes CoinDesk.
Weaknesses
Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Squid Game (SQUID), down 98.88%.Riskier Bitcoin ETFs are proving to be too much for the SEC, says Bloomberg. According to the article, leveraged ETFs are getting rejected by the SEC and in some instances being withdrawn on the same day they are filed.According to a Harris Poll, 61% of people who have heard of cryptocurrencies don’t understand them. They have little to no understanding of how cryptocurrency works and only 14% of those familiar with cryptos reported that they understand them “very well,” writes Bloomberg in a recent report.
Opportunities
Money managers risk falling behind and underperforming peers that own crypto assets. The chart shows a 200% outperformance of the Bloomberg Galaxy Crypto and DeFi indexes in 2021 versus the S&P 500. Selloffs in crypto assets appear to be attracting responsive buyers, which they could fall behind if they avoid crypto allocations, writes Bloomberg commodity strategist Mike McGlone.
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Global crypto exchange Binance is starting a $100 euro initiative to develop the blockchain and crypto ecosystems in France and Europe. An article written by Coin Telegraph stated that the Binance CEO announced the news when he spoke with the French Minister this past week.JPMorgan says Ethereum is a better bet than Bitcoin as interest rates rise due to the boom in DeFi and NFTs (non-fungible tokens). One JPMorgan analyst states that Bitcoin is like digital gold and likely to fare less well as interest rates and yields rise. Ethereum, on the other hand, is at the heart of decentralized finance and the market for NFTs.
Threats
Cybercriminals are cashing out ransoms at Moscow’s tallest Tower, writes Bloomberg. The building is home to more than a dozen companies that convert cryptocurrencies to cash which enables criminals to cash out profits from digital crimes. Experts have linked four companies to money laundering according to the US Treasury Department.The grocery chain Kroger Company said that the press release that announced plans to accept Bitcoin cash was fraudulent. According to the Bloomberg article, a Kroger representative confirmed it to Bloomberg News that the company hadn’t issued that statement. A similar false statement was made about Walmart accepting Litecoin a few weeks ago on the same website.When the Fed starts to raise interest rates to cool the economy, it could have a negative impact on Bitcoin’s price. “To extend BTC is a hedge like gold, I think it could suffer,” says economist Claudia Sahm. Bitcoin has benefited over the past several months of quarter end from the belief that it’s an inflation hedge and smart money bought into it and profited. With the Biden administration unclear about Jerome Powell, a lot of uncertainty looms about the Fed’s actions starting in February 2022, writes CoinDesk.
By Frank E. HolmesContributing tokitco.com
fholmes@usfunds.comwww.goldnewsletter.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of
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