$BTC 24 Hour High $24.209
$BTC 24 Hour Low $19.079
Happy Monday from HKbitEX! Happy ATH!! Bitcoin finally broke through $20K! NO doubt another remarkable week for the crypto market. BTCs outstanding performance propelling additional attention from the traditional markets this week Hedge funds, family offices & corporate treasuries are definitely getting more active and excited, throw in a little #FOMO and we see them slowly but surely joining the market. BTC is currently up 20% touching $24K and remaining bullish. It's hard to say, but possibly, maybe with a bit of luck, we might be seeing $25K within the last week of 2020. #tothemoon
The BTC and ETH market
A super bullish week for BTC, after 3 attempts to break through the $20K resistance last month, given the influx of institutional support, we are finally here breaking through $20K and at the time of writing, BTC is trading firmly above $23K. $24K remains a strong resistance. We can see that a bearish market takes charge once the market touches $24K. While we are all waiting to see another ATH, from a risk perspective, at the time RSI touches almost 80, worth bearing in mind that a possible correction is incoming.
ETH was relatively weak compared to BTC, market records a 10% growth over the week. At the time of writing, ETH trades at $642, the next major resistance level remains at $660 while the major support level stays at $620. Market remains relatively positive towards ETH given the official launch of Ether Futures by CME group on February 8, 2021 and ETH 2.0 which both mark a bullish signal which may propel more mainstream adoption for ETH in 2021.
Eric Peters, CEO of One River Asset Management, mentioned that he has set up a new fund focusing on BTC and ETH. The fund was backed by Alan Howard, a Billionaire hedge funder, who is looking to allocate as much as $1 billion into the two major cryptocurrencies next year.
Ruffer, a Multi-billion dollar Investment management firm, mentioned last Tuesday that one of his funds are currently holding BTC.
"The exposure to bitcoin is currently equivalent to around 2.5% of the portfolio. We see this as a small but potent insurance policy against the continuing devaluation of the world's major currencies. Bitcoin diversifies the company's (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see," said by the company in an official statement.
American Express Ventures has reportedly invested in crypto trading startup FalconX, alongside with Coinbase Ventures, Flybridge Capital Partners, Lightspeed Venture Partners, Fenbushi Capital, and Avon Ventures. The amount was not disclosed this round, however we do know that the company reportedly raised $17million during their seed round.
SBI Financial Services, a subsidiary of Japanese group SBI Holdings Inc, has acquired B2C2, a UK-based cryptocurrency trading firm. This acquisition also makes SBI the first traditional financial group running a cryptocurrency trading desk. Again, the financial terms have not been disclosed at the time of writing.
Andrew Peel, Morgan Stanley's head of digital asset markets mentioned during the The Block's Developing a Digital Asset Strategy panel that he expects an evolution of the DeFi momentum during 2021 with the underlying technology to be utilized in a more regulated manner throughout 2021 towards 2022.
Market wise, TVL records an 11.5% growth over the week, now with $16.58B, compared to last week. Yearn Finance (YFI) grows by around 4%, Aave (AAVE) at +4.3%, Compound at +5% and Chainlink (LINK) at +1.5%, at the time of writing.
FinCEN, the U.S. Financial Crimes Enforcement Network, has released a notice of proposed rulemaking that would require all money service businesses to perform record keeping and verify the identity of customers as they relate to digital currencies and it applied to both self-hosted wallets and wallets held at financial institutions.
The rule also requires enhanced KYC requirements for all withdrawals to unhosted wallets greater than $3000 and in the meantime, requires bitcoin exchanges to collect, store and share personal information to FinCEN for all transactions larger than $10,000.
The public has until January 4, 2021 to provide written comments to this rule, which can be submitted through the online federal rulemaking portal.