Comes every saturday, Hodler’s Digest helps you keep up with every major news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, forecasts and much more – a week on Cointelegraph in one link.
Top stories this week
At the beginning of the week, the crypto markets were full of optimism. Bitcoin was a resistance zone away from all-time highs, altcoins were rally by triple digits, and the rise made one splash on the homepage from The Wall Street Journal.
With Bitcoin’s market cap at an all-time high, it was time to celebrate with a tasty turkey dinner and all the trimmings. Sadly, Thanksgiving left the crypto world with a rather bitter aftertaste.
On November 26, the price of BTC suffered one of the largest dollar losses since March. All told, the world’s largest cryptocurrency collapsed by more than 15%. Huge liquidations were blamed for the crash of $ 19,484 to $ 16,334 in the space of a day.
As Cointelegraph analyst Michaël van de Poppe noted, market corrections are rarely elegant things. “They are often vertical and painful. Up stairs, lift down, ” He wrote.
So … what happens next? Have hopes of hitting $ 20,000 in the near term been dashed, or was this just a blip in the way that should be turned down?
Well, it really depends on who you ask. Some traders are anticipating another strong downturn in the not-too-distant future, pointing to historical patterns suggesting that BTC could fall back into the $ 13,800 – $ 14,500 range.
A pseudonymous trader known as “Salsa Tekila” said BTC needed to break $ 17,500 to stay in bullish territory, adding $ 18,700 is the only major resistance to record highs. However, the trader cautioned that things below seem bearish $ 17,500… And this can lead to a decrease in the $ 11,000 – $ 13,000 range.
Others, such as crypto index fund provider Stack Funds, have described the pullout as a “healthy correction” needed for Bitcoin to continue its upward trajectory.
The company said BTC has been at an overbought level since October, meaning some heat is badly needed to exit the market.
Meanwhile, Mati Greenspan, founder of Quantum Economics, said the correction may have already hit rock bottom, adding: “A 17% drop is rather tame for this phase of the cycle.”
Eth2’s beacon chain has been confirmed for December 1 after 16,834 validators were handed over 524,288 ETH in a deposit contract.
There were doubts as to whether the deposit contract would reach the minimum threshold by Nov. 24, paving the way for Phase 0 to start in earnest a week later.
But transfers increased rapidly as the deadline approached. There was a festive atmosphere in the ETH community, not least because it finally marks the beginning of an upgrade plagued with delays and complications.
While Genesis attendees won’t be able to withdraw their coins until Eth2 reaches phase 1.5 – which will merge the Ethereum main net with Eth2’s beacon chain and sharded environment – many hodlers are waiting for third parties to launch cashout services, despite the potential risk of exit- scam.
Away from the major cryptocurrencies, Yearn Finance has had a very busy week. As a sign that consolidation is hitting the DeFi markets, the protocol completed three high-profile mergers in as many days.
On November 25, Yearn Finance announced a partnership with Pickle Finance to boost agricultural incentives. It’s also hoped the move will compensate for those affected when $ 20 million was lost in a recent Pickle exploit.
A day later, YFI longed for more. The founder of the protocol, Andre Cronje, announced details of yet another integration. This time, Yearn intended join forces with Cream, a loan protocol similar to Compound and Aave.
But the takeover was far from over. A new partnership was also unveiled on Saturday with market coverage provider Cover.
Observers say Yearn “picks up developers and monopolizes talent,” but critics argue that none of these acquisitions have actually been approved through a community vote.
After months of uncertainty and regulatory drama, Facebook’s controversial Libra project is finally nearing launch … kind of.
Reports suggest that Libra will initially take the form of a US dollar-backed digital currency – and it could see the light of day as early as January 2021.
According to the Financial Times, the Libra Association will eventually add more fiat currencies to the basket of assets that support Libra’s value.
The exact launch date is still unknown and would depend on whether the Libra Association gets approval from regulators in Switzerland to operate as a payment service.
Winners and Losers
At the end of the week, Bitcoin is up $ 17,707.60, Ether at $ 541.01 and XRP on $ 0.62. The total market capitalization has run out $ 530,787,776,807.
Among the top 100 cryptocurrencies are the top three altcoin gainers of the week Stellar, Horizen and XRP. The top three altcoin losers of the week are Energy web token, NXM and Synthetix.
To learn more about crypto pricing, read Market analysis from Cointelegraph.
Most memorable quotes
“It is quite common that market corrections do not go smoothly. They are often vertical and painful. Go up stairs, lift down. “
Michaël van de Poppe, Cointelegraph analyst
“#Bitcoin has been negatively compared to many things over the years, such as tulips, rat poison, Ponzi schemes, snake oil, etc., but the one that has hurt the most by far is the comparison to the Segway. “
Tyler Winklevoss, Gemini Co-Founder and CEO
The New York Times plans to publish a negative story about Coinbase […] The story will likely imply that black workers were discriminated against in this process; this is wrong.”
“Everyone should put 2% to 3% of their net worth into Bitcoin and look at it in five years, and it’s going to be a lot more.”
Mike Novogratz, Galaxy Digital founder and CEO
“WHAT CRAP – new to Coinbase – and all my XRP transactions went into limbo and finally showed up AFTER the bottom fell out – which made me lose a ton of money !!!”
Mike Palagi, Coinbase user
Forecast of the week
Raoul Pal, CEO of Global Macro Investor, has predicted that Bitcoin could strike $ 150,000 by November 2021 in the most conservative scenario – and could even rise to $ 250,000 due to the large amount of institutional money currently flowing into the market.
According to Pal, most of Bitcoin’s additional supply is currently being absorbed by PayPal, Square and Grayscale. He believes the resulting supply split is the catalyst for Bitcoin’s latest surge.
“I’ve never seen a market with this supply / demand imbalance,” Pal said, pointing to the macroeconomic factors in Bitcoin’s favor.
Pal further predicted that additional monetary stimulus to sustain economies will devalue in the wake of COVID-19 fiat, and this, along with low interest rates, will push the price of Bitcoin to new highs.
‘It is life changing. No other asset has a 5x, 10x, 20x advantage in a short period of time, ”he told Cointelegraph.
FUD of the week
Altcoins weren’t immune to the Bitcoin carnage, and it was red across the board in the immediate aftermath of the Thanksgiving nightmare.
But just before this fix happened, something crazy happened with XRP.
Not known as a big-profit digital asset, the No. 3 cryptocurrency had a blockbuster in November. At the time of writing, it is up 154% since the start of the month – from $ 0.24 to $ 0.61. Most of these gains were concentrated over a few days.
At one point this week, XRP peaked at $ 0.76, but on Coinbase it came up briefly $ 0.90 before crashing again by 30% in seconds. This was the highest price level since May 2018.
The rally was apparently driven by Coinbase users as the price of XRP didn’t hit the same highs on other exchanges.
Some disgruntled merchants flocked to Downtector claiming they lost “a lot of money” after their trades failed to be processed.
Well this is uncomfortable. A PayPal user has claimed their account is limited … because they made too many transactions on the platform’s new crypto service.
On Reddit, the user in question claimed that PayPal messaged them saying their account was being permanently restricted “due to potential risk.” But “TheCoolDoc” claimed that they only made 10 crypto transactions in a week – buying while dips and selling when prices were high.
Strangely enough, PayPal had asked for an explanation for every transaction. Hours later, the user was told that he would no longer be able to do business with the platform – and the money in his account was held for 180 days.
Other Reddit users pointed out that the service should be more of a Bitcoin bank account than a trading account. Nevertheless, TheCoolDoc has vowed that they will “never buy another Satoshi crypto” from PayPal.
The PlusToken scandal reportedly resulted in a massive seizure of crypto assets by the Chinese authorities $ 4.2 billion at current prices.
Court rulings by The Block have seized the authorities 194,775 BTC and 883,083 ETH – in addition to millions of Litecoins, Dogecoin and XRP.
Profits from the seized crypto assets will be forfeited to the national treasury. The exact details of how the assets will be handled and processed in accordance with national law are not fully specified.
The PlusToken program had presented itself as a South Korean crypto platform capable of generating 8% -16% returns per month and attracting 2 million members. It later turned out to be one of the biggest exit scams ever in the industry.
Best Cointelegraph Features
As crypto enters the mainstream, major retailers are offering discounts and promotions to let customers pay with cryptocurrency.
Experts explain how to answer common questions newbies may have during the holiday season about Bitcoin and the blockchain space.
The launch of Ethereum 2.0 will no doubt support DeFi’s growth, but would it be able to handle the pace at which DeFi is growing?