The Wolf Den #282 - GBTC And The Impact Of An ETF
Bitcoin Thoughts And Analysis
DAILY CHART
Nothing has changed here. Price is still ranging, still in the descending channel, albeit below the EQ, and still testing the ascending blue support. As I tweeted today, this seems to be the general sentiment on crypto twitter/
>42K = bullish
<30K = bearish
30K-42K = boring
Volume is almost non existent for the moment, so it's very hard to trust any move.
4-HOUR CHART
BTC looks weak on low time frames, but on low volume. It is currently sitting on local support and we have a new descending resistance to watch. The real indicator now would be any spike in volume with a move in either direction. Low volume moves are low conviction and therefore hard to analyze.
France And Singapore Are Testing CBDCs
The central banks of France (Banque de France, BDF) and Singapore (Monetary Authority of Singapore, MAS) have announced the successful completion of a “wholesale cross-border payment and settlement experiment using central bank digital currency (CBDC).” This is a different beast than the usual news we see around CBDCs, where a single country looks to replace their currency with a digital version.
As anyone who has ever attempted to send money from one country to another knows, foreign banks do a terrible job of communicating with one another. They are using a fragmented system originally implemented in the 1907s that has barely been updated. The final piece I will mention here is that the system was limited to two central banks but, “the design of the m-CBDC network enables it to be scaled- up to support the participation of multiple central banks and commercial banks located in different jurisdictions.”
Institutions Are Adding More GBTC
An SEC report revealed that First Midwest Bank Trust Division increased their GBTC holdings by 283% in Q2 of this year. Their +29,000 shares are worth nearly $900,000, but have significantly dropped due to the current market and the added element of the GBTC discount discussed above. Interestingly, their GBTC holdings represent 0.006% of their AUM and they poorly timed the market on their purchases. Most institutions will dollar cost average and buy dips, rather than attempt time the market.
Hedge Fund Strikes A Deal To Back Bitcoin Recovery Mission
One of the classic missing Bitcoin stories is that of the man who lost hundreds of millions of dollars worth of Bitcoin on a hard drive that was accidentally thrown away and ended up in a landfill. James Howell had been mining Bitcoin since 2009 and somehow managed to throw away the hard drive he had been mining on in 2013. Since then, he has searched for the Bitcoins in the landfill with no luck. Rather than do the work on his own, Howell has been attempting to secure the backing of a hedge fund to finance the operation, offering a percentage of the findings if successful. After developing a high-tech data recovery plan to locate the treasure, a hedge fund finally took the deal. The mission will be risky and utilize, “AI-powered scanners, X-ray scanners, and other high-tech tools” - we are rooting for you, James!
Square Is Building a Hardware Wallet
Led by Jack Dorsey, the team at Square is developing a hardware wallet. Here are the main points.
Jack Dorsey has confirmed that Square is working on developing a hardware wallet for Bitcoin
The team at Square is requesting community participation in the project
Square is also hiring for key roles in hardware, software, security and business
Jack Dorsey has proposed an ‘assisted self-custody’ solution centered around the internet on mobile
Square also has plans for the Bitcoin hardware wallet to be integrated with CashApp
It's amazing to see Jack's continued efforts to bring crypto to the mainstream, this time helping people understand the classic saying - not your keys, not your coins.
Woz States The Obvious - Bitcoin Is Better Than Gold
Steve Wozniak, on of the inventors of Apple, described Bitcoin as a "mathematical miracle" and stated that it is better than gold.
Welcome to the party, Woz!
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