Another 2021 super-rally is unlikely, but bitcoin showed strength last week |
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Bitcoin (BTC) - $20,647.32 |
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Prices as of 10/28/22 @ 9:52 p.m. UTC |
Welcome to Crypto Long & Short! On July 25, 2021, former colleague Andrew Thurman wrote this on Twitter: "Bitcoin straight trying to pierce the firmament and stab god in the eye with that ..." This chart is why he wrote it: |
The CoinDesk Bitcoin Price Index - XBX (CoinDesk Indices) Andrew was referring to the green candle (sorry for the trader talk, but that verdant rectangle with the spike shooting out of the top is a "candle" to that crew) a bit to the right of the middle on this chart. That candle represents the price range for bitcoin (BTC) during a single hour, a period when it shot as high as $39,679.76 after beginning the period at $36,755.42. Notice how there's no spike below the rectangle? That means it was an "only go up" hour for bitcoin; it never fell below where it started the hour.
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There was another only-go-up hour last week. Also, some of the biggest technology stocks in the world completely fell apart after the companies reported earnings – but bitcoin did basically fine.
That is potentially an important development. More below.
– George Kaloudis
Whether you're a beginner or advanced investor, crypto.com/university has got you covered. Go further with its extensive library of resources, from reading candlesticks, getting an NFT, using DeFi, to understanding trending Web3 concepts like DAOs, GameFi and the Merge. Visit crypto.com/university today. |
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Bitcoin Looks Stable – Green, Even – as Big Tech Stocks Fall Apart |
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Some time in the (Eastern time zone) evening on July 25, 2021, was the start of a magical run for bitcoin, punctuated by a late night 5% jump (noted by the yellow arrow in chart below). Bitcoin was in the mid-$30,000s range at the time, but by November it had reached an all-time high of around $68,000. |
Bitcoin candle chart (TradingView) That era (basically ancient history at this point) zoomed back into my head last week. Bitcoin started 1 p.m. Eastern time on October 25 at $19,808.06, got as high as $20,176 during the hour, and was at $20,126.20 at 2 p.m. ET. The low in that hour was also $19,808.06 – an only-go-up hour. |
Last week's exciting bitcoin candle on The CoinDesk Bitcoin Price Index - XBX (CoinDesk Indices) Granted, this move wasn't as big as the July 2021 one, but it raised eyebrows nonetheless (astute readers will see another such candle on the morning of October 26). I'm also not implying that past performance is indicative of future results, so characterizing this one hour of price movement as the start of another run up to all-time highs would be premature (though history tends to rhyme). But let's face it, the bitcoin market has been pretty boring and last week was anything but. Not just because of the move up, but also because it happened in spite of last week's dismal performance of big technology stocks. Read the full story. |
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Shares of Core Scientific (CORZ) dropped 77% to as low as 23 U.S. cents, following its warning of a potential bankruptcy. TAKEAWAY: The world's largest bitcoin miner warned that it may explore bankruptcy if it fails to improve its financial condition. Core Scientific said it anticipates existing cash resources will be depleted by the end of the year, possibly sooner. "Substantial doubt exists about the company's ability to continue as a going concern for a reasonable period of time," it said in a filing Thursday. Read more here.
GDP for the United States rose 2.6% in the July-September period. - TAKEAWAY: After two consecutive months of contraction, the U.S. economy rose in the third quarter – a sign that activity remains robust despite the Federal Reserve's aggressive push this year to raise borrowing costs to tamp down inflation. Ian Shepherdson, chief U.S. economist at forecasting firm Pantheon, wrote Thursday in a report that "all the growth" in GDP was due to a "huge swing in net foreign trade," boosted by an "unsustainable" 14% jump in exports and a 6.9% drop in imports. Read more here.
Turkey to launch a central bank digital currency (CBDC) in 2023. - TAKEAWAY: The proposal to launch a CBDC was mentioned in Turkey's Presidential Annual Program for 2023, presented on Monday by the Presidential Strategy and Budget Directorate. The announcement came a year after Turkey's central bank announced in September 2021 that it was considering issuing a CBDC to complement its existing payments infrastructure. The Turkish central bank will carry out the research and development efforts and testing of its CBDC in collaboration with other banks. Read more here.
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Podcasts Worth Listening To |
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The What Bitcoin Did Podcast Bitcoin, Unleashing an Ocean of Energy with Nathaniel Harmon Nathaniel Harmon is an oceanographer, Bitcoiner and cofounder of OceanBit. In this interview, we discuss how an old technology deriving energy from ocean temperature differences can provide unlimited renewable baseload energy, and Bitcoin's vital and symbiotic role. Unchained Podcast Eric Wall and Udi Wertheimer on Why Bitcoin Maximalism Is 'Like a Shitcoin Community' – Ep. 412 Eric Wall, crypto blogger and investor, and Udi Wertheimer, a recovering Bitcoin maxi, discuss everything about Bitcoin Maximalism, whether BTC can survive, and whether Ethereum constitutes a threat for Bitcoin. The Breakdown, With NLW Crypto Markets Put the 'Pump' in 'Pumpkin' On today's episode, NLW looks at the positive price action of the past few days, with an eye to understanding how people are understanding the move. Is it a macro shift and a belief in a coming Federal Reserve pivot? Is it a crypto-specific narrative? Is it the market getting ahead of itself? |
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