Crypto SWOT: launch of first Bitcoin Futures ETF last week spurs investor interest

Strengths

Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Aigang (AIX), rising 66,384.61%.
The Wharton School of business at the University of Pennsylvania, one of the nation's premier business schools, plans to accept cryptocurrency as tuition payment for its online blockchain and digital assets program. The Ivy League's program will accept digital coins such as Bitcoin as a method of payment for the $3,800 course, according to Bloomberg.
Cryptocurrency miners are hoarding Bitcoin, writes Kraken, creating supply shocks that help boost prices even further. An indicator called the 0-hop supply, that determines whether miners are holding onto coins they've mined, has risen about 50% since September, said Kraken. The supply shock and demand are putting Bitcoin in a strong position to potentially trend higher.

Weaknesses

Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Wolf Safe Poor (WSPP), down 99.98%.
Coinbase and Robinhood shares fell drastically this week after Robinhood reported earnings and cryptocurrency transactions plunged from the preceding period. The popular app for stock trading, Robinhood revealed a big revenue miss for the third quarter, owing to a big fall in Bitcoin trading.
Bitcoin slid below $60,000 this week as euphoria over the first U.S crypto futures ETF dissipated and traders took profits following a record-breaking rally, writes Bloomberg. Bitcoins broke its 20-day moving average which could invite more selling.

Opportunities

A $100 billion Vanguard crypto market ETF is possible, reads one Bloomberg headline this week. After the launch of the first Bitcoin futures ETF last week, the momentum could lead to a total-market cryptocurrency ETF that's physically backed, cheap and highly liquid. Vanguard could issue such a product, or one of its rivals will, writes Bloomberg ETF analysts Eric Balchunas and James Seyffart.
The U.S seems to be taking the Bitcoin mining crown after China's crackdown on the digital currency market. According to an article published by the Wall Street Journal, more than one-third of global computing power dedicated to mining Bitcoin is now drawn from machines in the U.S., which is up from less than one-fifth since last spring. Samir Tabar, Bit Digitals CEO, called China's crackdown "an unintentional gift to the U.S."
Ethereum soared to a record level above $4,400 on Friday following bullish sentiment surrounding an upgrade on the Ethereum network. The popular cryptocurrency has outperformed Bitcoin throughout 2021 with a sixfold increase thanks to retail and institutional interest in the space, writes Bloomberg.

Threats

China's technology giants are playing down their links to non-fungible tokens amid concerns that this area of the crypto universe may be the next target for regulators. The move could be speculation that another possible crackdown is coming from the CCP, writes Bloomberg.
In an interview on CNBC, Nassim Nicholas Taleb, the author of "The Black Swan," states that crypto doesn't hedge anything, "not inflation, not the stock market, nothing." He calls it a "grandiose scam" and adds that crypto makes the Nasdaq from 2000 look rational, writes Bloomberg.
The Financial Action Task Force, an international body that coordinates government policy on illicit finance, released new guidelines that could force cryptocurrency firms to take greater steps to combat money laundering. A representative of the crypto industry criticized the guidelines saying they would undermine privacy and innovation, writes Bloomberg. By Frank E. Holmes

Contributing tokitco.com

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