Riding The Wave News Summary #5
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News
Table of Contents
Billionaires Are Embracing Crypto in Case Money ‘Goes to Hell’
Bitcoin sees ‘non-stop’ end-of-year buying as 10K BTC leaves Coinbase in a single day
Bitcoin can hit $333K 'parabolically' if this BTC price fractal plays out
MicroStrategy Says It Bought More Bitcoin During December’s Dip
Ethereum whales dumping ETH as price slides below $4K, data shows
SEC chair has a new senior adviser for crypto
Eminem Buys Bored Ape Yacht Club Ethereum NFT for $450K
Stolen Bored Apes Worth $1.9M 'Frozen' by NFT Marketplace OpenSea
Billionaires Are Embracing Crypto in Case Money ‘Goes to Hell’
Thomas Peterffy took out a full-page ad in the Wall Street Journal in 2017 warning of the dangers that bitcoin futures posed to capital markets.
These days, the Hungarian-born billionaire is well versed in cryptospeak. Peterffy, worth $25 billion, said it’s prudent to have 2% to 3% of one’s personal wealth in cryptocurrencies, just in case fiat currency goes to “hell.”
He owns some himself, while his firm Interactive Brokers Group Inc. recently offered customers the ability to trade Bitcoin, Ethereum, Litecoin and Bitcoin Cash, after detecting “urgency” from its clients to get in on the action.
Ray Dalio recently revealed he was holding at least some Bitcoin and Ethereum in his portfolio only months after questioning crypto’s utility as a store of wealth. The Bridgewater Associates founder views the investments as an alternative money in a world where “cash is trash’’ and inflation erodes buying power. Paul Tudor Jones disclosed he’s invested as a hedge against inflation, and almost half the family offices Goldman Sachs Group Inc. does business with were interested in adding digital currencies to their portfolios, according to a recent bank survey.
Michael Novogratz, who runs Galaxy Digital, said last month that prices could go “sideways to down” in the near-term. There was a lot of “froth” in the markets in 2021, Novogratz told Bloomberg, as retail investors piled into NFTs and pursued unusual crypto investments. The New York-based digital evangelist also predicted Bitcoin won’t fall below a floor of about $42,000. It closed the year at about $46,300.
“So much money is pouring into this space it would make no sense if crypto prices would go much below that,” Novogratz stated.
It’s always interesting to see public figures gradually switch from being skeptical of crypto and thinking it’s a scam to people who think it might become the new internet/gold/other highly valuable asset or technology. For anyone saying 2-3% isn’t a convinced person if Thomas Peterffy follows his own advice, 2% of his net worth is $500 Million.
It’s also exciting to see because in terms of waves of adoption I feel they tend to go from Individual-level → Company level → Country level. Within the sublevel of individuals, It goes from the majority of investors being extremely technical people who have free time/money to invest → the average person with less expertise putting some funds in → large fund holders such as Ray Dalio and Thomas Peterffy (A bit oversimplified but more of a general point, image below to help explain). Of course, these levels overlap but that’s the general trend I have observed, and more people towards the top of the individual group getting involved means we are moving towards companies getting more involved and countries.
Bitcoin sees ‘non-stop’ end-of-year buying as 10K BTC leaves Coinbase in a single day
Almost 10,000 Bitcoin (BTC) left major United States-based exchange Coinbase on Dec. 30 in a sign that investor appetite is returning to the sphere.
Data from on-chain monitoring resource Coinglass shows Coinbase’s professional trading arm, Coinbase Pro, shedding 9,925 BTC in the 24 hours to New Year’s Eve.
At the same time, the exodus of registered Chinese users from exchange Huobi Global could be triggering a reorganization of funds, a more recent theory suggests.
According to Coinglass, Binance is up 840 BTC as of Friday, while OKEx has seen 767 BTC inflows. Huobi has lost a mere 158 BTC, but in December as a whole, a giant 14,044 BTC has left its books, hinting at the extent of the Chinese user exodus.
This bump-up in purchasing on some platforms could be due to new people being pulled in over the Holiday season. The drop within Huobi also shows that a lot of Crypto is being migrated out of China into other areas due to the new laws in force.
Beginning in early January after the holiday period, institutions are predicted to reenter the limelight when it comes to BTC ownership.
“In 2022, the first thing we expect to see is a major flippening of crypto ownership from primarily retail to institutional players, with institutions having a much larger participation,” it stated.
I agree we will likely see a lot of companies jump in. Some companies have been waiting to jump in for the first time until after the new year has started, some have been waiting to jump back in after exiting in profit, some have been waiting to double down on their initial investments, and if crypto starts rapidly increasing in price some will be convinced due to FOMO to jump into crypto.
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