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This Altseason Won’t Be What You Expected, According to CryptoQuant CEO – Here’s Why

Published

8 hours ago

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The chief executive of blockchain intelligence platform CryptoQuant believes a potential incoming altseason will not be like prior ones for one key reason.

On-chain analyst Ki Young Ju tells his 381,200 followers on the social media platform X that, unlike past cycles, liquidity can no longer flow at the same levels from Bitcoin (BTC) into altcoins, sending them soaring.

The analyst says there is now massive traditional finance participation in Bitcoin, including through spot market BTC exchange-traded funds (ETFs) and increased buying by software company MicroStrategy (MSTR).

“This alt season won’t be what you expected. It’s going to be weird and challenging. Only a chosen few will win the game. Market sentiment is good, but there isn’t much fresh liquidity. Bitcoin is drifting away from the crypto ecosystem. Bitcoin has built its own paper-based layer-2 ecosystem through ETFs, MSTR, funds and more. In this paper-based L2 Bitcoin bridging to other altcoins is impossible.”

He also shares a chart showing Bitcoin’s price correlation with alts. A score of 1 is the highest correlation, whereas the lowest correlation possible is 0.

“Altcoins used to move together based on their correlation with BTC, but that pattern has now broken. Only a few are starting to show independent trends as they attract new liquidity.”

Image
Source: Ki Young Ju/X

The analyst notes that spot market BTC ETFs have accumulated as much as is believed to have been mined by Bitcoin’s pseudonymous founder Satoshi Nakamoto in the early days of the cryptocurrency’s existence.

“Bitcoin spot ETFs now hold as much BTC as Satoshi Nakamoto (Patoshi).”

Image
Source: Ki Young Ju/X

He also says that investor demand for the ETF product is returning to its historical high.

“Bitcoin ETF demand is as strong as at their initial approval this year.”

Image
Source: Ki Young Ju/X

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Bitcoin

Bitcoin rebound and head to $100,000 target again

Published

23 mins ago

on

December 5, 2024

By


Bitcoin has rebounded to $98,000 today after dropping to its weekly lowest point, and several sentiments have made it back to head the $100,000 target price.

Bitcoin (BTC), the world’s largest cryptocurrency in the world by market capitalization, rose around 3% to $98,436 in the past week after dropping under the weekly average to $93,913 on Tuesday.

The South Korean martial law has brought a sentiment and dropped to its lowest record, but the token rebounded a few hours later after President Yoon Suk Yeol ended the order.

Bitcoin rebound and head to $100,000 target price again - 1
1 Day BTC price chart, October 28 – December 05, 2024 | Source: crypto.news

Trump nominated one-time Securities and Exchange Commission (SEC) Commissioner Paul Atkins to head the institutions, bringing a positive sentiment to the market. Ripple’s Brad Garlinghouse and Congressman Tom Emmer even support these nominations due to his stance as pro-crypto

Fed Chairman Jerome Powell’s acknowledgement of Bitcoin as a rival to gold also gives a perspective that this digital asset was commonly known as a safe-have instrument asset class.

Ethereum follows Bitcoin’s target movement

According to CoinMarketCap data on Dec. 05, Bitcoin dominance also showed a decrease of almost 5% to 54%, and this record was last seen this July. In comparison, Ethereum and other crypto recorded an increase to 12.9% and 32,6%, respectively, which indicates that Altcoins have room to grow.

Ethereum (ETH) increased by 5,21% to $3,813 in a day of trading. This largest blockchain token in the world is also heading to the next price target, which is $4,000, and possibly skyrocket to an all-time high of $4,891; the last time recorded was 3 years ago.

Although the other top cryptocurrencies have not performed yet, the crypto market cap in total is rising 1.87% to $3.58 trillion.



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Fed Chair Jerome Powell Is Correct: Bitcoin Is In Competition With Gold, Not The Dollar

Published

3 hours ago

on

December 4, 2024

By


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Today, the Chairman of the Federal Reserve, Jerome Powell, said in an exclusive interview with CNBC that Bitcoin is in competition with gold, not the U.S. dollar.

“People use bitcoin as a speculative asset — it’s like gold,” Powell said.

“It’s just like gold, only it’s virtual, it’s digital. People are not using it as a form of payment or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold,” he added.

While it sounds like he may have stumbled on his own words, saying no one uses bitcoin as a store of value when that is literally one of its most prominent use cases for it today, I agree with his overall position.

As an American living in America, I do not feel that BTC is in competition with the U.S. dollar today. Myself, along with many other Bitcoiners I know, are trying to stockpile as much bitcoin as we can, using it as a store of value. When I do spend bitcoin, which I do every weekend when I buy beef at the farmers market) it’s not the bitcoin from my long term savings that I’m spending. I’m taking dollars from my bank account, buying bitcoin on Cash App, and directly sending that bitcoin to the farmer using the Lightning Network. I feel like I’m basically spending the dollars in my bank rather than bitcoin that I hoard.

I prefer to spend my dollars, a depreciating asset, and save in bitcoin, an appreciating asset. Because BTC is not widely accepted where I live, I need dollars in my daily life. I am also incentivized to spend my dollars instead because I can earn more bitcoin too by using bitcoin-back rewards apps like Fold and Lolli.

I also prefer to store my wealth in bitcoin as compared to gold. I don’t need gold, as I can’t spend it anywhere, and while it maintains value vs the dollar, it continues to lose value against bitcoin year after year. It makes no sense for me to hold gold. When it comes to price appreciation, why would I choose to hold a loser when I know the winner is going to continue to outperform it?

I would predict that the overwhelming majority of Americans would choose the dollar over bitcoin today when it comes to a medium of exchange. Bitcoin is not in competition with the dollar today. But when it comes to choosing a store of value, gold or bitcoin, I think bitcoin is the clear winner. Although bitcoin’s market cap is still only a fraction of gold’s, I believe bitcoin will continue to be seen as superior to gold. Whether Powell is aware of all of Bitcoin’s properties, he’s right that bitcoin is strongly viewed much more like a digital form of gold than a new monetary mechanism for payments in the United States.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.





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Fed Chair Jerome Powell Compares Bitcoin To Gold

Published

5 hours ago

on

December 4, 2024

By


Federal Reserve Chairman Jerome Powell has broken silence on the broad comparison between Bitcoin, Gold and the US Dollar. Speaking at the Dealbook Summit, he revealed that Bitcoin is a speculative asset that has a closer correlation to Gold rather than the US Dollar.

Settling the Bitcoin Versus Gold Feud

The Fed Chair shared his take on this analogy while speaking with CNBC’s Andrew Ross Sorkin. His statements directly address Bitcoin proponents who believe the coin could displace the US Dollar. Rather than the tag it along USD, Jerome Powell said BTC’s major competitor is gold and not the greenback.

This statement is stirring a debate in the broader market on what this means for the strategic Bitcoin reserve plan President-elect Donald Trump is nursing.

This is a developing story, please check back for updates!!!

 

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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