{"id":6564,"date":"2021-01-02T14:02:29","date_gmt":"2021-01-02T19:02:29","guid":{"rendered":"https:\/\/cointelegraph.com\/magazine\/?p=6564"},"modified":"2021-01-02T14:02:46","modified_gmt":"2021-01-02T19:02:46","slug":"30k-cracked-supply-squeeze-xrp-implodes-1227-0102","status":"publish","type":"post","link":"https:\/\/cointelegraph.com\/magazine\/2021\/01\/02\/30k-cracked-supply-squeeze-xrp-implodes-1227-0102","title":{"rendered":"BTC cracks $30K, supply squeeze worsens, XRP implodes: Hodler\u2019s Digest, Dec. 27\u2013Jan. 2"},"content":{"rendered":"

Coming every Saturday, <\/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><\/a><\/h4>\n

Bitcoin price quickly climbs to $31,000, liquidating $100 million of shorts<\/b><\/a><\/h4>\n

As 2021 began, Bitcoin was teetering on the edge of <\/span>$30,000<\/b> \u2014 continually hitting new all-time highs in the process.<\/span><\/p>\n

There was drama at the start of the week after BTC <\/span>crashed by 6.5%<\/span><\/a> in a matter of minutes, with a sell wall at <\/span>$28,400 <\/b>wiping thousands of dollars off its value.<\/span><\/p>\n

Bitcoin still had plenty of fight left. As New Year neared, a high-volume surge helped the world\u2019s biggest cryptocurrency <\/span>waltz past <\/span>$28,500 <\/b>and surpass <\/span>$29,000<\/b><\/a>.<\/span><\/p>\n

And on Jan. 2, BTC rapidly soared above <\/span>$31,000 <\/b>\u2014 liquidating a huge number of risky positions in the process and inflicting huge pain on traders betting on a bearish pullback.<\/span><\/p>\n

As Hodlers celebrated cracking this psychologically important milestone, figures suggested shorters on BitMEX alone lost $10 million.<\/span><\/p>\n

In another milestone, Bitcoin <\/span>hit an all-time high against gold<\/span><\/a> \u2014 hitting 15.40 gold ounces and surpassing the previous peak from December 2017.<\/span><\/p>\n

BTC\u2019s newfound market cap above <\/span>$580 billion<\/b> wasn\u2019t lost on crypto enthusiasts, either, who were quick to point out that its valuation now exceeds that of Warren Buffett\u2019s finance giant Berkshire Hathaway. <\/span>Buffett famously described Bitcoin as \u201crat poison squared.\u201d<\/b><\/p>\n

 <\/p>\n

Supply squeeze heats up as Grayscale buys nearly 3x the Bitcoin mined in December<\/b><\/a><\/h4>\n

Grayscale rounded off 2020 with yet another extravagant Bitcoin purchase. <\/span>In December, the company snapped up 72,950 BTC \u2014 far more than the 28,112 BTC generated by miners.<\/b><\/p>\n

Overall, Grayscale\u2019s total assets under management across its various crypto funds now stand at <\/span>$20 billion <\/b>\u2014 a stark contrast to the <\/span>$2 billion<\/b> it controlled one year ago.<\/span><\/p>\n

All of this powerfully illustrates an ongoing liquidity squeeze in Bitcoin, where large buyers suck up any available supply and remove it from circulation.<\/span><\/p>\n

Data from Glassnode shows that Bitcoin is becoming much <\/b>more difficult to buy<\/b><\/a> \u2014 and the amount of BTC received and spent among entities is decreasing.<\/b><\/p>\n

Analysts say that <\/span>14.5 million BTC <\/b>is currently classified as illiquid, leaving just <\/span>4.2 million BTC <\/b>in constant circulation that\u2019s available for buying and selling.<\/span><\/p>\n

 <\/p>\n

U.S. exchanges are suspending or delisting XRP left and right<\/b><\/a><\/h4>\n

Things are going from bad to worse for Ripple. <\/span>Several major crypto exchanges \u2014 including Binance US, eToro, Coinbase and Bittrex \u2014 have halted XRP trading for their American customers.<\/b><\/p>\n

All of this comes after the U.S. Securities and Exchange Commission accused the blockchain firm of selling XRP tokens in violation of securities law. <\/span>Both sides will <\/b>come face to face<\/b><\/a> in a telephone pretrial conference on Feb. 22, 2021.<\/b><\/p>\n

Earlier this week, Ripple accused the SEC of attempting to bring down the entire cryptocurrency industry in the U.S. and said the company had been seeking regulatory clarity on digital assets for years to no avail.<\/span><\/p>\n

In a defiant statement, it wrote: \u201cThe public and press have only heard the story from the SEC\u2019s side, and we\u2019ll be filing our response in a few weeks to address these unproven allegations against Ripple.\u201d<\/b><\/p>\n

All of this drama has caused XRP to lose more than <\/span>60% <\/b>of its value over the past two weeks.<\/span><\/p>\n

 <\/p>\n

XRP the \u201cthird largest collapse of all time,\u201d says The TIE\u2019s Josh Frank<\/b><\/a><\/h4>\n

It\u2019s been a spectacular fall from grace for XRP since its market cap hit an all-time high of <\/span>$137 billion<\/b> in 2018. <\/span>According to The TIE, the current turmoil has helped the altcoin\u2019s valuation fall by 93% since then \u2014 dipping under $10 billion.<\/b><\/p>\n

The TIE\u2019s CEO, Joshua Frank, said this spectacular descent effectively makes it the third-largest collapse of all time\u2026 bigger than Enron and WorldCom, and not far behind the likes of Lehman Brothers and Washington Mutual.<\/span><\/p>\n

Frank told Cointelegraph that it was \u201csad and unfortunate\u201d for individual investors who have lost \u201cunimaginable amounts of money,\u201d adding:<\/span><\/p>\n

\u201cThe founders of Ripple continued to dump their tokens for years and made hundreds of millions of dollars.\u201d<\/b><\/p>\n

In the near term, XRP faces three key historical support levels at <\/span>$0.224<\/b>, <\/span>$0.1743 <\/b>and <\/span>$0.1471<\/b>.\u00a0<\/span><\/p>\n

 <\/p>\n

NY Times report alleges history of pay discrimination at Coinbase<\/b><\/a><\/h4>\n

A report from the New York Times<\/span> has alleged that Coinbase paid salaried Black employees approximately <\/span>7% <\/b>less than people in similar positions.<\/span><\/p>\n

The claims are based on payroll data from 2017, and across the company, this averaged out to a difference of <\/span>$11,500<\/b>. When factoring in stock options, the gap in compensation was closer to <\/span>11%<\/b>.<\/span><\/p>\n

It\u2019s also alleged that there was pay disparity by gender, with data suggesting that, on average, women at the exchange were paid 8% less than their male counterparts that year. <\/span>In monetary terms, that\u2019s $13,000.<\/b><\/p>\n

NYT reporter Nathaniel Popper wrote: <\/span>\u201cThe pay disparities at Coinbase appear to be much larger than those in the tech industry as a whole, and at the few other tech companies that have had to release data.\u201d<\/b><\/p>\n

Coinbase chief people officer L. J. Brock was quick to respond to the allegations. He said that \u201csignificant work\u201d has been undertaken to create a transparent and fair pay policy.<\/span><\/p>\n

 <\/p>\n

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

\"\"<\/p>\n

 <\/p>\n

At the end of the week, Bitcoin is at <\/span>$31,289.06<\/b>, Ether at <\/span>$755.05 <\/b>and XRP at <\/span>$0.23<\/b>. The total market cap is at <\/span>$815,536,576,911<\/b>.<\/span><\/p>\n

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are <\/span>Reserve Rights<\/b>, <\/span>Polkadot<\/b> and <\/span>Dogecoin<\/b>. The top three altcoin losers of the week are <\/span>SwissBorg<\/b>, <\/span>XRP <\/b>and <\/span>Monero<\/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

<\/h2>\n

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

 <\/p>\n

\u201cBullish year ahead\u201d \u2014 Bitcoin primed for Q1 2021 gains, strength index says<\/b><\/a><\/h4>\n

Bitcoin\u2019s monthly relative strength indicates that the world\u2019s biggest cryptocurrency is primed for another rally.<\/span><\/p>\n

The RSI measures whether an asset is overbought or oversold. <\/b>When the RSI surpasses <\/span>75<\/b>, it signals the asset is overbought, and when it drops below <\/span>30<\/b>, it means the asset is oversold.<\/span><\/p>\n

\u201cCrypto Capo,\u201d a pseudonymous trader, said Bitcoin\u2019s monthly RSI was close to <\/span>80<\/b> as December drew to a close. <\/span>Historically, a strong rally has followed.<\/b><\/p>\n

They wrote: <\/span>\u201cWhen this happens, bullish trend continues, with an avg. return of 1010.87%. Each cycle is shorter.\u201d<\/b><\/p>\n

Cointelegraph Markets analyst Micha\u00ebl van de Poppe is among those who have revised their Bitcoin forecasts for 2021. Proclaiming that a bullish year lies ahead, he revealed that he now expects BTC to be between <\/span>$65,000 <\/b>and <\/span>$85,000 <\/b>by December.<\/span><\/p>\n

The options market is pricing in a <\/span>22%<\/b> chance of Bitcoin achieving <\/span>$120,000 <\/b>by next year, but some cautious traders say the ideal scenario is to wait for BTC to consolidate at <\/span>$25,000<\/b>\u2026 or enter after the next price upsurge.<\/span><\/p>\n

 <\/p>\n

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

\"\"<\/b><\/a><\/h4>\n

Congresspeople chastise the Treasury for rushing new crypto monitoring proposal<\/b><\/a><\/h4>\n

Nine congresspeople have written to Treasury Secretary Steven Mnuchin, telling him to hold his horses on proposals that would force registered crypto businesses to hold on to more customer information.<\/span><\/p>\n

The mooted measures have been met with widespread outrage from the crypto community. <\/b>Not only is Mnuchin pushing this rule out weeks before Joe Biden enters the White House, but just 15 days have been set aside for public comment\u2026 far short of the typical 60-day consultation period.<\/span><\/p>\n

In a letter, the lawmakers wrote:<\/span> \u201cA comment period consisting of eight business days over two holidays is not appropriate for regulating any industry, and could result in stakeholders being unable to meaningfully respond.\u201d<\/b><\/p>\n

 <\/p>\n

Cover Protocol announces compensation plan following mining contract attack<\/b><\/a><\/h4>\n

Cover Protocol has published a compensation plan for token holders and liquidity providers affected by a recent hack.<\/span><\/p>\n

Eligible liquidity providers on Uniswap, SushiSwap and Balancer will receive new Cover tokens based on their share of the liquidity pool on those platforms.<\/b><\/p>\n

The compensation plan also revealed that token holders will receive new Cover coins on a one-to-one ratio with their initial wallet balance before the hack.<\/span><\/p>\n

All this comes after Cover Protocol suffered an infinite minting attack that triggered a price crash. <\/span>Several entities exploited the vulnerability, with the first attacker reportedly draining over $4 million from the protocol.<\/b><\/p>\n

 <\/p>\n

Alleged kingpin of a 25 million rupee crypto scam arrested in India<\/b><\/a><\/p>\n

A 60-year-old man has been arrested at an airport in Delhi, accused of heading up a 25-million rupee ($340,000) cryptocurrency scam.<\/span><\/p>\n

Police allege that Umesh Verma, along with his son Bharat, convinced hundreds to invest in a scheme going by the name of Pluto Exchange, promising monthly returns of <\/span>20%\u201330%<\/b>.<\/span><\/p>\n

The scheme issued a \u201ccryptocurrency\u201d called Coin Zarus in exchange for investments. However, shortly after the scheme launched in November 2017, returns dried up, and Verma reportedly dropped off the radar, eventually resurfacing in Dubai in 2018.<\/span><\/p>\n

 <\/p>\n

<\/h2>\n

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

\"\"<\/b><\/a><\/h4>\n

Crypto transactions must be easier. That\u2019s it. That\u2019s the headline<\/b><\/a><\/h4>\n

The gulf between users and those who are designing cryptocurrency service platforms must be bridged before the masses will make the leap, argues Luke Stokes.<\/span><\/p>\n

<\/h4>\n

The U.S. has lost the 2020 crypto regulation race to Europe<\/b><\/a><\/h4>\n

When it comes to crypto regulation, the United States is falling further behind more progressive and visionary nations. Here\u2019s Johannes Kaske.<\/span><\/p>\n

<\/h4>\n

XRP price faces a rocky road to recovery ahead of SEC\u2019s Ripple lawsuit<\/b><\/a><\/h4>\n

Though Ripple CEO Brad Garlinghouse is prepared to challenge the SEC over its lawsuit, Shiraz Jagati warns that the knock may be hard to come back from.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 one week on Cointelegraph in one link!<\/p>\n","protected":false},"author":15,"featured_media":6568,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[],"_links_to":"","_links_to_target":""},"categories":[35,2413],"tags":[2760,2722,2731,2761,2728,2723,2737],"yst_prominent_words":[225,1220,222,221,1497,2236,1333,1338],"_links":{"self":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/6564"}],"collection":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/comments?post=6564"}],"version-history":[{"count":2,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/6564\/revisions"}],"predecessor-version":[{"id":6571,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/6564\/revisions\/6571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/media\/6568"}],"wp:attachment":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/media?parent=6564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/categories?post=6564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/tags?post=6564"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/yst_prominent_words?post=6564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}