Today is what you might call a bad news day. Bitcoin's march higher has been brought to an abrupt end, with prices down 16%. This time last week, Bitcoin was trading $28,000. It's amazing how short-term memories are clouded by a decreasing profit and loss statement! Bitcoin's failure to push higher over the weekend has seen profit taking cascade into auto-liquidations of leveraged longs to the tune of $2.7B.
Another day, another new all-time high. When prices break into new discovery phases, it's best not to try and work out where it might stop. But, we are human, and we like to ponder these things. Given we only have the 'big numbers,' (40,000, 50,000 etc.) to offer us markers, it's worth considering if the total market cap of Bitcoin is going to act as break on price appreciation.
10 trillion dollars. No, that's not the upcoming year's stimulus package, it's the total value of transactions completed on the Bitcoin blockchain since its inception. It's also proof (excuse the pun), that this new technology works and, in a watershed moment, has led the Office of the Comptroller of the Currency, which regulates US banks, to decree that banks can now start using blockchain technologies to perform what blockchains do best: moving money quickly and efficiently. RIP Swift, 3 days transfer times, and $15 bank fees...
Bitcoin has started 2021 with a stark reminder that volatility is the norm, and the relentless rally of the last month can quickly be eroded. Today, as the market broke through key support, auto-liquidations kicked in and swept aside $31,000, $30,000, $29,000, and $28,000 in a matter of minutes.
Let us cast our minds back to December 2017, when the CME's introduction of Bitcoin futures was in part blamed for the proceeding sell-off from the previous all-time high. A couple of weeks ago we asked: What will the price of Bitcoin be on the day the CME registers the largest Bitcoin futures open interest globally? Today, we have that answer: $27,000.
Welcome to your Christmas edition of the Weekender: your weekly recap of the top news stories across the digital asset space, and what a week it has been! It’s certainly a very merry Christmas for the Bitcoin hodlers as prices advanced to a new all-time high of $27,922 over the holiday trading session.