BTC Bull Run Coming?
Good afternoon and welcome to our newsletter! The past week has been pretty rocky in the crypto markets with everyone involved debating whether we are still in a bull market or if we have entered a bear market. BTC has just faced an Uptick with certain altcoins Like FTM, NEAR, ROSE and ONE pumping. Remember that you can read our previous newsletters by going to our website. *Dips are for buying, It is always smart to take profits when everything is green, depending on your investment strategy! Profit is Profit*
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What is going on with Bitcoin?
Bitcoin has fallen below many support lines for the past couple weeks. We have seen dominance drop and a lot of green in concentrated areas of the altcoin market. Bitcoin is having trouble gaining enough volume to increase beyond those previous support now resistance levels.
Based on some TA we are seeing a cup and handle play out on the Bitcoin chart with a target of breaking the 46k resistance.
Fundamentally there have been some large whales accumulating more BTC over the past 2 weeks on these recent lows dipping as low as $39,500.
How many coins (cryptocurrencies) are there and why?
At the start of January 2022, there were 16,655 different cryptocurrencies listed on the various cryptocurrency exchanges, totaling $2.01 trillion. Human nature, which was pushed by entrepreneurship and the hunt for profit by market demand, is the first and most important element that has contributed to the rise in the number of blockchain cryptocurrencies. The law of supply and demand governs the crypto market in the same way it governs any other market, people new and old to the crypto industry rushed to start buying the new asset to take advantage of its volatility and reap the profits by releasing other cryptocurrencies. Projects are the primary source of all cryptocurrencies now in circulation. Each project is essentially its own coin and the infrastructure that supports it. Most projects are focused on a certain industry and aim to compete with other existing projects in that area by providing varying degrees of usability and value in order to become the world's most valuable cryptocurrency. The limits of existing blockchains are another key factor driving the increase in the number of cryptocurrencies. Three fundamental issues limit all blockchains: scalability, security, and decentralization. When one of the three variables is increased, the other two are sacrificed. Due to the presence of the human factor behind the principles of validation in the form of mining or node operation in the PoW and PoS consensus algorithms, respectively, it is impossible to create a blockchain that would ideally and harmonically balance all three. Existing technologies are poorly scalable, vulnerable to hacks, and prone to centralization.
How does crypto compare to the early internet adoption?
Please look at the chart below. It maps out the total crypto users in orange versus the global internet users from 1992-2006 in white. It highlights that Crypto adoption is being adopted faster than the internet. Crypto still has a long way to go. Currently, 55% of Americans own stocks and only 14% own crypto. However, only 1.3% of people across the globe own any crypto. We are still very early into adoption but the future looks bright.
What is a crypto loan?
A crypto loan is a collateralized loan on your crypto holdings, one of the most popular crypto loan platforms is BlockFi. They are able to give out crypto loans with an APR as low as 4.5%. BlockFi typically quotes investors based on a 50% LTV value with the intention of enabling a larger amount of liquidity for your holdings. This enables people to get cash today for assets that they plan on holding through the future. (https://blockfi.com/crypto-loans/)