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Bitcoin and Crypto Market Updates (Nov 6th)
Amazing weekend of consolidation for Bitcoin, which continues holding the local uptrend support and building up momentum. I still think the next target is $38,000 before we see a cooldown:
Meanwhile, the Big Caps Index took the Bitcoin consolidation as a gold chance to load a new push. The ascending triangle we pointed out last week is breaching up triggering the bullish reversal continuation. Looking primed:
Another Index which is catching most of my attention nowadays is the AI Index, which is lagging in comparison with the rest…. but showing an incredible setup. The ascending triangle is squeezing against the main resistance while building up volume levels not seen for a few months. Primed for a breakout. Remember, coins indexed here: GRT, AGIX, FET, OCEAN, RLC and NMR.
Major Swiss Bank SGKB Partners with SEBA to Offer Bitcoin and Ether Trading Services
St.Galler Kantonalbank (SGKB), one of Switzerland’s largest banks, is making its entry into the cryptocurrency space by introducing Bitcoin and Ether trading services to its customers. In partnership with SEBA Bank, a global Swiss-regulated bank specializing in managing, investing, and storing cryptocurrencies, SGKB is offering digital asset custody and brokerage services. The new crypto service is initially available to select SGKB clients, with plans to expand to more cryptocurrencies based on demand.
SGKB, a significant Swiss regional bank, is making its foray into digital assets, enabling its customers to seamlessly integrate cryptocurrencies into their investment portfolios. SEBA Bank, which received a banking license from the Swiss Financial Market Supervisory Authority in 2019, has been actively onboard crypto services to major private and retail banks in Switzerland.
This move reflects the growing adoption of cryptocurrencies in the Swiss banking sector, with many local banks introducing cryptocurrency services. SGKB’s entry follows a trend of Swiss banks expanding their crypto offerings, with a notable shift towards including retail consumers in the crypto-friendly country. As competition in the market grows, it is expected to contribute to the overall growth and adoption of cryptocurrencies.
Block’s Bitcoin Holdings Propel Q3 Earnings, Surpassing Expectations and Market Trends
In the third quarter of 2023, Jack Dorsey’s fintech company, Block, reported a robust financial performance, exceeding analysts’ expectations. The firm generated $5.62 billion in revenue, with $44 million in profit from its Bitcoin holdings, driven by strong growth in Cash App and Square. Bitcoin revenue accounted for 43% of Block’s total revenue, with $2.42 billion worth of BTC sold to customers via Cash App, contributing to a gross profit of $45 million, a 22% increase from the previous year. Block’s investment in Bitcoin also appreciated significantly, with its fair value reaching $216 million compared to its carrying value of $102 million.
Block’s Bitcoin-focused approach has proven lucrative, especially through its mobile payment service, Cash App. The company’s strong performance signals a shift in the crypto market, with Bitcoin generating substantial revenue for Block, even amidst market fluctuations.
Bankruptcy Advisors to FTX Facilitate FBI Access to Customer Data
Advisors working with bankrupt crypto exchange FTX have been sharing customer transaction and account data with the Federal Bureau of Investigation (FBI), according to court documents reported by Bloomberg. The documents revealed that the FBI sought this information to “investigate all transactions and customer accounts,” although they did not specify the extent of the data provided. This development has raised questions about customer privacy, which has been a sensitive topic since FTX’s collapse last year.
FTX, once a prominent name in the crypto industry, went bankrupt and faced legal troubles related to its financial management. Its co-founder, Sam Bankman-Fried, was arrested and subsequently found guilty of various criminal charges. The advisory firm, Alvarez & Marsal, shared information in response to FBI subpoenas issued by multiple field offices in recent months. The billing records indicate that customer data was handed over to the FBI offices in Portland, Philadelphia, Oakland, Minneapolis, and Cleveland.
The reasons for these FBI probes remain undisclosed, leaving room for speculation about their nature. As the legal processes unfold, FTX customers may ultimately bear the cost of these services, with advisory fees adding up to almost $100 million. However, there is a proposed settlement between FTX creditors and debtors that could potentially see customers recovering over 90% of their assets by the end of 2024, as revealed by FTX’s new CEO, John J. Ray III.
MicroStrategy Founder Optimistic About Bitcoin ETFs, Sees Mutual Benefits
MicroStrategy founder Michael Saylor has welcomed the potential approval of spot bitcoin Exchange-Traded Funds (ETFs) and believes they could benefit both these funds and companies like MicroStrategy. He views the approval of bitcoin ETFs as a “catalytic event” that would bring more Wall Street capital into the bitcoin ecosystem.
Saylor noted that bitcoin ETFs might attract certain investors, but MicroStrategy’s stock offers a unique way to gain bitcoin exposure. It has served as a proxy for the cryptocurrency for many investors. The company continues to accumulate bitcoin, holding 158,400 BTC as of October 31, with the price of bitcoin currently around $35,000.
Despite concerns that a low-cost spot bitcoin ETF might reduce demand for MicroStrategy stock, Saylor and others argue that investors may still prefer the stock due to the advantages it offers, such as avoiding management fees associated with ETFs.
MicroStrategy’s software business, which generates significant revenue, adds a level of stability and risk mitigation that spot ETFs may not provide. The company’s performance has outpaced bitcoin, making its stock an attractive investment vehicle for different classes of investors.
Embarking on the journey of investing in the cryptoverse is akin to setting sail on a vast and tumultuous sea. Understanding how the winds of the market blow, what keeps the tides turning, and predicting the market’s future course is key to a successful voyage. This is where fundamental analysis comes into play — the compass guiding us through the stormy seas of the crypto world.
Fundamental analysis is an invaluable tool, especially in the domain of cryptocurrencies. It enables us to delve into the very essence of a digital asset, evaluating its true value based on underlying factors, rather than just its market price. For those of us navigating these crypto waters, it’s essential to understand the basics of this analysis to make informed decisions and not be lost amidst the waves of volatility.
Let’s embark on this learning adventure together, where we’ll explore the fundamental elements, the key aspects to analyze, and how they impact the crypto market. Here’s an introductory guide for us all.
Fundamental Analysis ABC
At its core, fundamental analysis involves studying the intrinsic value of an asset by analyzing various factors that influence it. In the context of cryptocurrencies, this goes beyond just observing the price movements on the charts, that is also important and is always good to have into consideration, ideally crossing both FA and TA together. But FA in particular involves looking into the project’s mission, team, technology, the problem it seeks to solve, and its potential impact on the market.
The whitepaper is the project’s blueprint, offering insights into its purpose, objectives, and the underlying technology. A well-structured whitepaper should provide a clear and comprehensive outline of the project, including the problem it aims to solve, the proposed solution, the team behind the project, the roadmap, and other essential details.
Red Flags and Positive Indicators
For everybody it’s crucial to recognize red flags while evaluating whitepapers. Vague or unclear objectives, an anonymous team, exaggerated claims, or a lack of a well-defined roadmap or bad tokenomics can raise doubts about the project’s legitimacy. On the other hand, strong, genuine, and transparent projects often exhibit a clear problem statement, a feasible solution, an experienced team, a detailed roadmap, and a focused and realistic long-term vision.
Research and Due Diligence
The key to mastering fundamental analysis in the world of cryptocurrencies lies in rigorous research and thorough due diligence. Diving into online forums, social media, and reputable cryptocurrency news sources can provide valuable insights into the community’s perception of the project, recent developments, and its potential for growth, usually projects conduct Ask Me Anything (AMA) sessions, being there and asking controversial and sharp questions and analyzing the replies could give you some insights too.
Our journey through the choppy waters of cryptocurrencies requires a keen understanding of fundamental analysis. As we continue to explore the world of digital assets, remember, this is just the beginning. Learning to scrutinize whitepapers, understand the team, technology, and the core purpose of a project will be your compass through these exciting yet unpredictable markets.
Wishing you fair winds and following seas on your crypto journey! Have a great week!
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