{"id":6417,"date":"2020-11-08T17:41:54","date_gmt":"2020-11-08T22:41:54","guid":{"rendered":"https:\/\/cointelegraph.com\/magazine\/?p=6417"},"modified":"2020-11-09T18:53:41","modified_gmt":"2020-11-09T23:53:41","slug":"bitcoin-2020-all-time-high-next","status":"publish","type":"post","link":"https:\/\/cointelegraph.com\/magazine\/2020\/11\/08\/bitcoin-2020-all-time-high-next","title":{"rendered":"Bitcoin special! New 2020 high, election fallout, DeFi suffers: Hodler\u2019s Digest, Nov. 2\u20138"},"content":{"rendered":"

Coming every Sunday, <\/i><\/b>Hodler\u2019s Digest<\/i><\/b><\/a> will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 a week on Cointelegraph in one link.<\/i><\/b><\/p>\n

 <\/p>\n

Top Stories This Week<\/b><\/h2>\n

<\/h4>\n

<\/b>Bulls keep running as Bitcoin notches a new 2020 high at $15,950<\/a><\/b>
\n<\/b><\/h4>\n

It\u2019s been another extraordinary week in the crypto markets. <\/span>Over the course of Thursday, BTC surged by more than 10%. <\/b>As well as breaching <\/span>$15,000 <\/b>for the first time since January 2018, the world\u2019s biggest cryptocurrency romped to highs of <\/span>$15,950<\/b>.<\/span><\/p>\n

To understand how significant this is, data from Messari shows that BTC has only been above this price point for <\/span>0.4% <\/b>of its existence. A rare event indeed.<\/span><\/p>\n

\u201cPeople will never again say Bitcoin is dead,\u201d Grayscale CEO Barry Silbert approvingly noted.<\/b><\/p>\n

Cointelegraph analyst Micha\u00ebl van de Poppe said Bitcoin was <\/span>nearing the final hurdle<\/span><\/a> before a new all-time high can be reached, with one last resistance zone between <\/span>$15,800 <\/b>and <\/span>$16,800 <\/b>standing in its way.<\/span><\/p>\n

However, he cautioned: <\/span>\u201cThe probability of a breakthrough in one go is not high, given that the price of Bitcoin has already surged by more than 50% in recent weeks.\u201d<\/b><\/p>\n

Not all analysts agree. Some believe BTC\u2019s dazzling rally <\/span>may not stop<\/span><\/a> at <\/span>$16,000<\/b>, with the number of Bitcoin held on exchanges continuing to drop.<\/span><\/p>\n

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Parabolic predictions<\/figcaption><\/figure>\n

Three ways Bitcoin\u2019s price and stocks may react to a Biden presidency<\/a><\/b><\/h4>\n

Bitcoin has cultivated a reputation of being a \u201csafe haven asset,\u201d meaning that investors tend to flock to it during times of uncertainty.<\/span><\/p>\n

We saw uncertainty by the bucketload this week. <\/b>BTC appreciated steadily when the U.S. election result wasn\u2019t clear on Wednesday and as ballots continued to be counted. <\/span>Donald Trump also claimed, without evidence, that many votes were fraudulent.<\/b><\/p>\n

But look what happened on Saturday when major news outlets officially projected that Joe Biden would be the next president of the United States. <\/span>Bitcoin fell by 5.67% in the hours that followed. And then it bounced back again in less than 24 hours.<\/b><\/p>\n

So does this mean the crypto markets fear a Biden presidency? Love the idea? Don’t know what to think? Or are we just seeing heat leave the market now that the results are clearer? And what\u2019s next for BTC?<\/span><\/p>\n

Well, Biden\u2019s election brightens the prospect of a stimulus package by the end of the year \u2014 and this could positively affect Bitcoin, boosting investor appetite for high-risk assets. <\/span>Analysts also anticipate the U.S. stock market to recover now that the results have been confirmed.<\/b><\/p>\n

There\u2019s still something we don\u2019t know: the president-elect\u2019s views on Bitcoin. <\/span>\u201cFor now, it really isn\u2019t a big enough issue to warrant his attention,\u201d<\/b> Compound Finance\u2019s Jake Chervinsky said.<\/span><\/p>\n

 <\/p>\n

Bitcoin at $15,000 is now bigger than PayPal, Coca-Cola, Netflix and Disney<\/a><\/b><\/h4>\n

Early September seems like a lifetime ago now, doesn\u2019t it? <\/span>Back then, Bitcoin was hovering at about $10,000, with a market cap of approximately $190 billion.<\/b><\/p>\n

Fast forward to now, and BTC appears to have found support at <\/span>$15,000<\/b>. This has also helped Bitcoin\u2019s market cap rise by <\/span>50% <\/b>to <\/span>$280 billion<\/b> \u2014 and it means the world\u2019s biggest cryptocurrency is now more valuable than most major companies.<\/span><\/p>\n

Data suggests that, if BTC\u2019s valuation is compared with publicly listed firms in the U.S., it would be the 18th largest. <\/span>This dwarfs the likes of Verizon, PayPal, Disney, Netflix and Bank of America.<\/b><\/p>\n

Bitcoin could now end up setting its sights on overtaking Home Depot, which is in 17th place with a market cap of <\/span>$306 billion<\/b>. If BTC rises further and grabs 16th place, it would also demote Mastercard \u2014 sending a powerful signal about where the future of money lies.<\/span><\/p>\n

That said, BTC has a long way to go before it can catch up with Apple\u2019s $2 trillion market cap, which makes it the most valuable company in the world. <\/span>For Bitcoin to eclipse this, we\u2019d need to see a price per coin of $120,000.<\/b><\/p>\n

 <\/p>\n

<\/b>Binance\u2019s DeFi index crashes 60% as Bitcoin overshadows altcoins<\/a><\/b><\/h4>\n

Bitcoin\u2019s time in the spotlight has been bad news for altcoins\u2026 and it appears to have taken the shine off DeFi, too.<\/span><\/p>\n

Binance\u2019s DeFi Composite Index is now trading under $400 \u2014 a 60% decline from all-time highs. <\/b>To make matters worse, most DeFi tokens have erased 70%\u201390% of their gains since early September.<\/span><\/p>\n

The exchange also said that it\u2019s been an \u201cunderwhelming month\u201d for large-cap cryptos such as ETH, XRP, BCH and LTC, all of which only eked out \u201cmodest gains\u201d in October.<\/span><\/p>\n

That said, it isn\u2019t all doom and gloom for DeFi. <\/b>Although the value of governance tokens has taken a beating (perhaps unsurprising given how some of them, such as YFI, were designed to be worthless), the total value locked in protocols hasn\u2019t crashed. <\/span>It currently stands at $12.16 billion \u2014 not far off the record highs seen in late October.<\/b><\/p>\n

 <\/p>\n

\u201cExtreme Greed\u201d and FOMO taking hold as BTC nudges $16,000<\/a><\/b><\/h4>\n

Bitcoin\u2019s surge could tempt traders to take some profit, and all of this could result in a pullback.<\/span><\/p>\n

But the bigger danger is this: With Bitcoin prices touching their highest levels in 33 months, we\u2019re beginning to see greed seep into the crypto market once again.<\/b><\/p>\n

The latest Fear and Greed Index rating is flashing a score of <\/span>82<\/b>, placing it firmly into the \u201cExtreme Greed\u201d category. Earlier this week, the score hit <\/span>90<\/b>. The last time it was this high was last June, when it reached <\/span>92 <\/b>as BTC powered to 2019 highs of <\/span>$14,000<\/b>.<\/span><\/p>\n

As billionaire and former hedge fund manager Mike Novogratz noted: <\/span>\u201cThe hardest thing to do in a bull market is to sit. My pal Paul Jones calls it the \u2018pain of the gain.\u2019 This is a $BTC bull market. Your job is to sit on your hands and lock away your phone.\u201d<\/b><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

Winners and Losers<\/b><\/h2>\n

 <\/p>\n

\"\"
Winners and losers week of 11\/8<\/figcaption><\/figure>\n

At the end of the week, Bitcoin is at <\/span>$15,336.80<\/b>, Ether at <\/span>$452.55 <\/b>and XRP at <\/span>$0.25<\/b>. The total market cap is at <\/span>$443,512,630,806<\/b>.<\/span><\/p>\n

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are <\/span>Aave (76.51%)<\/b>,<\/span> HedgeTrade (56.00%) <\/b>and <\/span>Synthetix (49.09)<\/b>. The top three altcoin losers of the week are <\/span>ABBC Coin (-16.15%)<\/b>, <\/span>CyberVein (-13.61%) <\/b>and <\/span>Crypto.com Coin (-13.13%)<\/b>.<\/span><\/p>\n

For more info on crypto prices, make sure to read <\/span>Cointelegraph\u2019s market analysis<\/span><\/a>.\u00a0<\/span><\/p>\n

 <\/p>\n

Most Memorable Quotations<\/b><\/h2>\n

 <\/p>\n

\u201cAll eyes may be on Bitcoin and the surge past the $15,000 level. However, the recent development update related to Ethereum may result in some capital rotating back into Ethereum and its broader ecosystem.\u201d<\/span><\/p><\/blockquote>\n

Denis Vinokourov<\/b><\/a>, Bequant head of research<\/b><\/p>\n

 <\/p>\n

\u201cRegulation is certainly going to be an area of focus in the crypto space going into this next year. It\u2019s only a matter of time before an increasing number of jurisdictions adhere to regulations.\u201d<\/span><\/p><\/blockquote>\n

Sasha Ivanov<\/b><\/a>, Waves CEO<\/b><\/p>\n

\"\"
Dan Tapeiro on the Sweet Spot<\/figcaption><\/figure>\n

\u201cAll in all, the sentiment is heavily bullish at this point, with the price at multi-year highs and only one major resistance level remaining at $16,000 before a new all-time high comes into play.\u201d<\/span><\/p><\/blockquote>\n

Micha\u00ebl van de Poppe<\/b><\/a>, Cointelegraph analyst<\/b><\/p>\n

 <\/p>\n

\u201cThanks for flying with us today ladies and gentlemen. Off to the left you\u2019ll see we\u2019ve just passed $15K #Bitcoin and coming up on the right you\u2019ll see $16K bitcoin. Please make sure to fasten your seatbelts as we begin our ascent to the moon.\u201d<\/span><\/p><\/blockquote>\n

Cameron Winklevoss<\/b><\/a>, Gemini co-founder<\/b><\/p>\n

 <\/p>\n

\u201cRising prices during an uptrend while open interest is also on the rise could mean that new money is coming into the market.\u201d<\/span><\/p><\/blockquote>\n

Messari<\/b><\/a><\/p>\n

 <\/p>\n

 <\/p>\n

Prediction of the Week<\/b><\/h2>\n

<\/h4>\n

Bitcoin sees record 100 days above $10,000 as one analyst eyes \u201cparabolic\u201d 2021<\/a><\/b><\/h4>\n

If all of this excitement wasn\u2019t enough, Bitcoin has also officially broken a new record after trading above <\/span>$10,000 <\/b>for 100 consecutive days.<\/span><\/p>\n

Now, a well-known analyst believes BTC could go \u201cparabolic\u201d in 2021 if it follows its behavior after previous halvings.<\/span><\/p>\n

Bloomberg Intelligence\u2019s senior commodity strategist, Mike McGlone, says it\u2019s a simple matter of supply and demand. <\/b>The number of new Bitcoin being mined fell yet again in May, yet appetite for the crypto among institutional investors is soaring.<\/span><\/p>\n

\u201cNew highs are a next potential iteration and may be only a matter of time unless something we don\u2019t foresee trips up the trend of greater adoption and demand vs. limited supply,\u201d he predicted.<\/span><\/p>\n

 <\/p>\n

FUD of the Week\u00a0<\/b><\/h2>\n

 <\/p>\n

<\/b>\u201cI destroyed my life\u201d \u2014 Uniswap trader spends $9,500 in fees on $120 transaction<\/a><\/b><\/h4>\n

Away from Bitcoin, let\u2019s have a look at some FUD stories. <\/b>And we begin with a clumsy trader who says they have \u201cdestroyed\u201d their life after inadvertently paying <\/span>$9,500 <\/b>in fees for a <\/span>$120 <\/b>transaction on Uniswap. <\/span>Whoops.<\/b><\/p>\n

On Reddit, \u201cProudBitcoiner\u201d revealed that they accidentally stumped up <\/span>23.5172 ETH <\/b>in fees after getting the Gas Limit and Gas Price input boxes confused in the MetaMask wallet.<\/span><\/p>\n

Uniswap is a non-custodial exchange for ERC-20 tokens, meaning that trades are executed directly from a user\u2019s wallet, allowing them to manually set the gas prices they are willing to pay for a transaction.<\/span><\/p>\n

Other Reddit users are now calling for MetaMask to introduce safeguards that would force users to confirm a transaction when the inputted gas price significantly exceeds the estimated price calculated by the wallet.<\/b><\/p>\n

\"\"<\/a>
No surprises from Binance<\/figcaption><\/figure>\n

QuadrigaCX trustee only has $30 million to pay claims worth $171 million<\/a><\/b><\/h4>\n

Ernst & Young has received <\/span>$171 million <\/b>worth of claims from customers who lost their funds when the doomed crypto exchange QuadrigaCX collapsed. <\/span>There\u2019s just one problem: The trustee only has $29.8 million in funds to distribute.<\/b><\/p>\n

More than <\/span>17,000 <\/b>users filed claims \u2014 with <\/span>$90.2 million<\/b> in Canadian dollars, <\/span>24,427 BTC<\/b>, <\/span>65,457 ETH <\/b>and <\/span>87,031 LTC <\/b>among the assets that are missing.<\/span><\/p>\n

Gerald Cotten, the founder of QuadrigaCX, died in India of complications linked to Crohn\u2019s disease. <\/span>He was the only person who had keys to the exchange\u2019s wallets \u2014 and in recent months, speculation has grown that he may not be dead at all.<\/b><\/p>\n

Ernst & Young also noted that Cotten traded using customer funds, which has likely contributed to the discrepancy between assets and liabilities.<\/span><\/p>\n

 <\/p>\n

$1 billion from Silk Road wallet moves for the first time since 2015<\/a><\/b><\/h4>\n

An anonymous crypto user has just moved <\/span>69,370 BTC <\/b>from an address associated with the Silk Road darknet market.<\/span><\/p>\n

According to CipherTrace, the transfer was made in two transactions. <\/span>The crypto user first sent 1 BTC, likely as a test transaction, before moving the bulk of the coins.<\/b><\/p>\n

The blockchain intelligence firm speculated the anonymous user made the transactions \u201cto stay up to date with the Bitcoin network\u201d by switching between address formats.<\/span><\/p>\n

It\u2019s possible that hackers may have been responsible for moving the funds.<\/b><\/p>\n

Best Cointelegraph Features<\/b><\/h2>\n

 <\/p>\n

Bitcoin price nears $16,000, but it\u2019s Ethereum that may shine in November<\/b><\/a><\/h4>\n

After Bitcoin\u2019s strong breakout above $15,000, analysts are looking toward Ether as the market sentiment around Ethereum strengthens.<\/span><\/p>\n

<\/h4>\n

Coinbase, Gemini and others join forces to combat human trafficking<\/b><\/a><\/h4>\n

Leading exchanges are tracing suspicious crypto transactions to combat human trafficking.<\/span><\/p>\n

<\/h4>\n

The cryptocurrency sector is overflowing with dead projects<\/b><\/a><\/h4>\n

Blockchain technology is just a tool that solves a problem, it cannot be the goal of the entire project.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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