In a departure from our usual Crypto Long & Short format, I wrote a poem in honor of the holiday season that reviews the year and reflects some of the advances in our industry. It’s not a rigorous analysis, but I hope the change in rhythm will make the festive season easier.
Go ahead and laugh, but may I say in my defense that “good at rhyming” was not on my original job description.
A cryptomas rhyme
It was the day after Christmas. Instead of some rest
I decided to check how we were getting on.
In January the headlines shouted military tension.
Bitcoin as a “safe haven” attracted attention.
The destruction in March did a lot to disperse
The “safe haven” myth when all prices fell.
“Black Thursday” also highlighted the danger
Too much leverage. But things would get stranger.
We all soon became aware of the danger of a new one
Type of virus that is spreading. It wasn’t “just the flu”.
When April was over we saw a new correlation
Between bitcoin and stocks and a fall in inflation
Dried up as expenses. But the biggest shock
Was a negative oil price from way too much stock
And not enough storage space. The uncertainty spread
As the markets digested the changes ahead.
The official answer to the impending crash
More “cash” should be printed on income and production.
The stock of balloons at Fiat to give out
Was in sharp contrast to a cap that won’t bend.
And with perfect timing, the network reminded them
Us that every four years the new edition was rejected.
The halving in May during our big event
Highlighted care rules that we cannot circumvent.
Prices held in June. The volatility fell.
The spread of the virus could not be stopped.
The rise in share prices could not rise either
That used technology to help people get through the shocks
Of a new way of working and seeing her friends
Despite the cuts in yields and dividends.
Two new trends took off in the summer:
Services to meet institutional needs
And the decentralized financing had surprises in store:
An increase in trading volume for some
From the platforms that had names that would become
Memes for themselves. Sushi, Pizza and YAMs –
While many have delivered, some appear to have been scams.
With a part of the United States that fights fire after fire
Equity markets rose higher during August.
Bitcoin price began to rise in October
And an upcoming election brought the stress to new highs.
PayPal’s support for transactions in some
Crypto assets meant general adoption could come.
Other well-known investors came out in defense
From a bitcoin stake held as a hedge, this made sense
Given the risk of rising inflation
And currency problems that could lead to stagnation.
In December, Bitcoin correlated with gold
Has almost dropped to zero as new narratives unfold
And the Bitcoin price is entering a new paradigm.
As I write this verse, it continues to rise
On the way to new all-time highs. I don’t know now
The tributaries show where it goes from here
This institutional interest seems to remain here.
With so much going on, I can say more:
But this poem is already too long
I can’t go without urging us not to forget
That the year was tough for so many out there.
And while there is hope, we should still be aware
Of the need to be kind and take care
About our health and our loved ones. Forever somewhere
There is someone whose day could be brightened by sharing
A little compassion, affection, and care.
With that, dear readers, I wish you a good mood!
Happy Holidays and a Hopeful New Year.
Crypto Fund Manager Bit by bit liquidated the XRP position it held in its Bitwise 10 Crypto Index Fund after the US Securities and Exchange Commission announced it was suing Ripple, which holds 55 billion XRP in escrow and accounts for $ 1 billion every month that releases what it deems to be a year-long unregistered offering of securities. BRING AWAY: It’s not clear whether the lawsuit will prevail, as Ripple claims that XRP does not fall under federal securities laws. That said, it’s a big deal even for investors who aren’t interested in XRP, as the ripple effect (sorry) of the regulatory move is affecting exchanges that list the token, as well as funds that hold it, such as. B. the Bitwise product. It will also encourage conversation about what is a security and what is not, clarity that is welcomed by the entire industry. At the time of writing, the XRP price is 40% lower than it was a week ago.
Source: CoinDesk XRP pricing page
Anthony Scaramucci’s hedge fund SkyBridge CapitalThe company, which manages approximately $ 9.2 billion in assets, filed a Form D with the Securities and Exchange Commission for what appears to be the first pure bitcoin fund. SkyBridge has already invested $ 25 million in this fund, which will be open to new investors in early January. According to Scaramucci, Michael Saylor, CEO of MicroStrategy, was the inspiration for the fund. Scaramucci also said that SkyBridge is running a full Bitcoin node. BRING AWAY: The Saylor connection is interesting in that it shows the contagiousness of a high profile belief. And you don’t often hear from institutional investors who are as committed as running a node.
Here’s a good article by JP Koning on how we welcome institutional investors entering the market, but we tend to oversimplify why they invest.
I can, a Canadian fintech company listed on the Nasdaq and Toronto stock exchanges, has announced that it will make a business investment of up to CA $ 1.5 million (US $ 1.16 million) in Bitcoin and is considering further purchases through 2021 to pull. BRING AWAY: I really hope we don’t see the start of a trend in which companies announce Bitcoin interest and their share price will rise. I just don’t see the point in announcing a massive purchase before you do. Isn’t this part of a company’s obligation to its shareholders to ensure that it gets the best price for its acquisitions?
The original bitcoin buying company, MicroStrategyinvested the entire proceeds of its issue of $ 650 million in 29,646 more Bitcoin at an average unit price of $ 21,925. The business intelligence firm now has 70,470 BTC worth over $ 1.596 billion in its treasury reserve. BRING AWAY: This now makes sense and will be announced after the purchase is complete. Many companies will no doubt have noticed the performance of MicroStrategy stock as it dipped headfirst into the cryptocurrency – this might encourage others to dive in, and not necessarily for ideological or even investment thesis reasons.