Momentum in the Bitcoin fundamentals is building on all accounts. What is more bullish, in our view, is that the investment thesis backing Bearish fundamentals for Bitcoin is dwindling in arguments. Over the past couple of months, we have shown Technical Analysis, On-Chain data analysis, the rise of Stablecoins, and the US balance sheet all pointing to the fact that Bitcoin has entered a Bull market. This week we dive into some interesting news hitting headlines that `build on the fundamentally bullish narrative for the next year.
Clearly, the FAKE announcement of the Bitcoin ETF approval in the US and its remarkable impact on the BTC price within 30 minutes is a clear example of what we can expect in the next 3-6 months as and when a Bitcoin ETF is eventually approved. There were mass liquidations and even «old bulls» were falling over themselves to pick up a few more Bitcoin before a new potential run begins. The sense we got from the market reaction is that Bitcoin is waiting to explode and almost any excuse will be enough to see new highs for this Bull market.
While the fake news story was not Cointelegraph’s finest moment, the Bitcoin price managed to hold above the highly acclaimed 200-day Moving Average and send its 28-day RSI into further bullish territory. We have witnessed in these markets that it can be the most absurd events which have resulted in the most historic turning points despite all the irony surrounding the circumstances.
But if we look further into the news of the past couple of weeks, the SEC missed its appeal cut-off for the Bitcoin Grayscale ETF approval case which further bolstered the argument and expectation that it is really a matter of time before at least one Bitcoin ETF is approved in the US. It is clear the SEC has been clutching at straws in its defense against the approval of such a product. Perhaps time is all that stands between?
The US government and the SEC are all that stand between crypto maxi’s and a full blown crypto bull market as the real world use cases and DeFi applications supporting a token economy are all but ready to be scaled.
Yet, in the past year we have witnessed the US Government rise to one of the world’s largest Bitcoin Holders due to seizures from cybercriminals and darknet markets (will these Bitcoins perhaps be offered back to those that lost so much during the attacks witnessed on crypto exchanges and the like in recent years? Unfortunately, we somehow doubt it).
Secondly, Stablecoins have moved into the list of the world’s top 20 sovereign debt holders of US Treasuries and have therefore become by no means unimportant to the US government.
As the US government becomes more intertwined with the crypto markets (whether they like it or not) and their interests are further aligned to long term holders/investors in this asset class, will we begin to see a shift in the narrative toward the asset class by influencers within the US government?
Bitcoin Technical Outlook: Another short-term «higher low» was recorded on the 12th of October at $26.5k before a crazy (non-fundamental/technical) move higher that touched the $30k mark show signs that a potential new high above $32k could be on the cards in coming 2-3 months. A sustained move above $28.8k (on a weekly close) would be very bullish in the short term and could result in a fast move to $38k as the next level of resistance, in our view. On the downside, strong support remains at the $25-25.5k region.
Why SwissOne Capital?
SwissOne offers seamless access in to the Crypto Asset ecosystem via traditional market channels. Offering the Top 50 Crypto Assets momentum-weighted as well as Smart Metaverse strategies, SwissOne brings you direct and sensible exposure to this uncorrelated and high growth asset class. Operating with institutional-grade European financial service providers, there is a safe and secure passage from traditional markets into Crypto Assets.
Top 50 Crypto Performance
(past 30 days-to-date)
Top Research & Articles
Coindesk: Bitcoin Jumps to $30K, Then Dumps, as False Spot ETF Approval Report Circulates
TheBlock: JPMorgan’s blockchain-based collateral settlement application goes live
Coindesk: SEC Won’t Appeal Loss in Grayscale Case, Boosting the Odds GBTC Can Become a Bitcoin ETF
Kava (KAVA– $0.56; ATH – $9.12)
Many major cryptocurrencies, including Bitcoin, Ripple and Binance Coin, lack robust DeFi services. Additionally, Blockchain networks often operate in silos, making it difficult for them to communicate and share data.
Kava was designed to provide basic DeFi services to major market cap coins, allowing users to participate in lending, borrowing, and other financial activities. The Co-Chain architecture of Kava aims to bridge interoperability gaps by enabling seamless interaction between different blockchain environments, enhancing collaboration and expanding the overall DeFi ecosystem.
Kava is a Layer 1 blockchain, which combines the Cosmos SDK and Ethereum Blockchain. The distinctive co-chain architecture of the Kava Network opens doors for developers to create applications for Web3 and cutting-edge blockchain technologies. At the heart of this ecosystem is KAVA, the native governance and staking token, pivotal in ensuring the network’s decentralization and security.
There are 127 protocols on Kava. Its native key protocols include Kava Mint, Lend, Swap, and Earn. Kava Mint allows users to deposit tokens as collateral and receive USDX (native stablecoin) loans in return, Kava Lend enables borrowing and lending, Kava Swap operates as a decentralized exchange, and Kava Earn simplifies DeFi strategies.
Kava’s Co-Chain architecture combines the flexibility and speed of Ethereum’s smart contract with the interoperability of the Cosmos SDK framework in a unified network. This innovative structure, driven by the Tendermint Consensus Engine, establishes an EVM-compatible chain, enabling developers to deploy Solidity-based smart contracts for their protocols. The Translator Module acts as a bridge between the Cosmos and Ethereum environments in the Co-Chain architecture, facilitating seamless communication and collaboration between the two platforms. (SwissOne Capital/mc/ps)