Buy, Hold, but don’t FOMO.
Compass 146
Give me Fuel, Give me Fire…
This week, we’ve seen a spike of over 15% in volatility, with Bitcoin hitting a new all-time high of $93.5K. It’s been a blazing ascent, putting not only bears but also its detractors on their knees.
In light of what could be a new beginning for Bitcoin and the crypto ecosystem under Trump’s new administration—with a Congress filled with legislators sympathetic to the cause and an environment that encourages industry growth and institutional adoption—it’s no surprise that optimism is in the air.
Specifically, this week, legislators from Pennsylvania introduced a bill to adopt Bitcoin and its ETFs as a hedge against inflation. Just yesterday, 18 U.S. states filed a lawsuit against the SEC, accusing it of excessive overregulation against crypto assets. There are also circulating rumors of Gary Gensler’s upcoming resignation as head of the regulatory agency.
While we continue to see more reasons for optimism, indicators show we’re more or less where we started the week: in full Bitcoin season, with bullish momentum and strong fundamentals. Everything seems set for Bitcoin to continue breaking all-time highs and reaching new peaks. Of course, that’s not a linear path and we aim to do our best to support you in navigating the ups and downs.
Henrik Zeberg Keynote at Deutsche Goldmesse 2024.
We’re excited to announce that Henrik Zeberg, Head Macro Economist at Swissblock, will be delivering a keynote at Deutsche Goldmesse 2024 in Frankfurt on November 21 & 22! Henrik will share his expertise on global macroeconomic trends and their effects on the precious metals market.
Don’t go Against Price Momentum.
On Monday, Bitcoin recorded its best day yet in terms of Spot ETF inflows, which fueled a price surge from $80K to nearly $90K in just one day. By Wednesday, it was already making another attempt to break $90K, reaching as high as $93.5K, setting a new milestone.
This price momentum is likely to drive another attempt to break the all-time high and head toward the major psychological price point of $100K. This is perhaps the most iconic—and therefore the toughest—level to break in the short term. It’s also likely that, despite the strong momentum, breaking $100K will take more than one attempt and could shake out over-leveraged positions along the way.
In fact, $100K could be a tempting target for bears, who may view this threshold as an opportunity for bulls to take profits and potentially capitalize on a price dip. However, given the current level of price momentum and overwhelming bullish strength, bears face a challenging task in speculating where to start a price correction without risking liquidations.
Risky Business.
With Bitcoin's price hovering so close to its all-time high, it doesn’t take a complex indicator or deep analysis to conclude that most holders and traders are in profit, with realized losses at a minimum. This week, we've observed a slight increase in Intraday volatility, marked by larger moves resulting in
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