BTC Price Rise & Drop, Cypherpunk Holdings BTC Investment, and Russia’s Crypto Measures

Hey Redpill Readers!

Today’s newsletter is best enjoyed with Thanksgiving leftovers. Heat something up. And let’s set off your post-holiday with some quick crypto updates.



BITCOIN PRICE SKYROCKETS TO $19.4K ON TUESDAY BUT DIPS 11% OVERNIGHT

Economy update: Stock market is up. Unemployment rate is declining. And yet, more than 11M Americans are still unemployed.

Also: Americans' incomes and savings fell last month.

But for those of us on the crypto side...

Bitcoin’s price just hit $19.4k for the first time since 2017. On Tuesday, it blew past the $19k milestone in a little over 24 hours.

That’s right! Bitcoin almost broke out closer to its $20k all-time high mark.

Many anticipated the possibility of Bitcoin crushing $20k as its momentum is expected to increase in the following weeks. 

Some key reasons behind the Bitcoin’s price momentum:

  • Investments from big companies... On top of PayPal and CashApp large buys, MicroStrategy invested a mind-blowing $425 million in BTC while Square poured its $50 million which constitutes 1% of the company’s total assets.

  • Massive public backing... following high-profile figures and huge institutional investments and positive remarks from the likes of JPMorgan and American billionaire investor Stanley Druckenmiller.

  • BTC supply reduction... with large buys from Galaxy Digital and Stone Ridge who purchased 10,000 Bitcoin (roughly $162 million dollars worth).

And, MicoStrategy CEO Michael Saylor has been praising Bitcoin left and right, publicly.

Here’s a taste...

As you can see, he has definitely taken the redpill of money.

Holiday Pullback

But just in time for Thanksgiving Day, BTC price drops by 11% overnight after almost breaching the all time high.

What were the causes? Whale selloffs and BTC over buys. Jeez!

But in case you don’t know… “whales” are wealthy crypto investors.

THE TAKEAWAY

Some are worried about this price drop saying it may continue and be a repeat of the 2017 BTC crash.

But around our research table… we doubt it.

Where to next? Well, once in a while, a significant price drop happens. Plus… the BTC market cap substantially increased since 2017.

So, we’re still heading into a best-case scenario.

And if our research is right… BTC could recover and stabilize before the year ends.

And if there’s still any doubt how Bitcoin is on the cusp of mainstream adoption, J.P.Morgan recently extended banking services to Coinbase and Gemini.

Who are they? Two of the largest bitcoin exchanges, by far. 

They want a piece of the action with new accounts more than doubling from a year ago.

And let’s not forget: Citibank recently released a report suggesting that bitcoin could reach $318,000 by December 2021.

With huge institutions backing it up, bitcoin could be stronger than ever.

Reality zone...

  • Earlier this year, Visa granted Coinbase power to issue bitcoin debit cards

  • Jack Dorsey, CEO of Twitter, is taking steps towards incorporating bitcoin and other cryptos into his payments business, Square 

  • Nasdaq-listed MicroStrategy recently purchased $475 million in bitcoin to make it its primary treasury reserve asset

  • PayPal recently announced that it will enable bitcoin purchases for its entire 360 million client base (massive news)

  • Fidelity is offering bitcoin trading to its institutional clients

  • Crypto asset-backed ETFs—a whole new investment class—are about to come to the market. Canada’s 3iQ is moving forward with an exchange-traded Ether Fund. This means, America can’t be too far behind.

Now comes the best part…

We’re still super early in this bull cycle. 

Socionomics pulse: Mainstream awareness remains low and network fundamentals are much, much stronger than the 2017 run we had. 

Redpill prediction: This is why, many analysts at our firm are expecting bitcoin to blow past it's all-time high of $20,000 and set new records, very soon.

 So, our advice is simple: Stick to the plan and hodl on.

Meanwhile…

CYPHERPUNK HOLDINGS ANNOUNCED INCREASED BTC STAKE

Investment company Cypherpunk Holdings (CSE: HODL) announced on Thursday its increased their BTC investment to 276.479 from 72.979 on June 30, 2020. 

Its investment is worth around $4.8 million under the prevailing BTC market value.

And guess what…

The purchase makes Cypherpunk Holdings the ninth largest BTC public investor.  

THE TAKEAWAY

More and more public companies are investing in BTC. 

In fact, besides the privacy focused Canadian investment firm, there are fourteen other publicly-traded companies with BTC investments. Names like Square, Galaxy Digital Holdings, and MicroStrategy Inc.

Here’s the thing… The total stakes of all these companies are equivalent to 67,731 BTC… or a total value of roughly $682,898,077.

Bottom line: The growing number of institutional investors strengthens the cryptocurrency position in the crypto market.

Plus, it’s a significant step toward greater adoption and use of cryptocurrencies as a unit of transactions. Good times ahead, folks.

Up next…

RUSSIAN PRIME MINISTER PROPOSES LEGAL MEASURES TO PROTECT DIGITAL ASSETS

Russian Prime Minister Mikhail Mishustin proposed changes in the Tax Code that would recognize cryptocurrencies as property.

The second most powerful figure of the Russian Federation also announced the government’s plan to lead the local crypto market development in a “civilized direction” to protect crypto users’ rights and interest.

You read that right… The aim of the proposal is to give crypto users legal protection against “illegal actions.”

Let’s be real… this sounds great, right?

The measure will afford users ‘legal protection’ against ‘shadow schemes.’

THE TAKEAWAY

But there’s one little problem...

PM Mishustin’s proposal comes at a time when strict crypto regulations are also being proposed by the Russian Government.

  • In mid-November, Russia wants to require cryptocurrency owners to report their crypto transactions and wallet balances to tax authority.

  • Plus… they also wish to impose imprisonment on whoever fails to comply with the annual reporting of crypto transactions.

So, it remains doubtful whether Russia is ready to completely embrace cryptocurrencies and afford users enough legal protection.

MORE REDPILL CRYPTO NEWS


DISCLAIMER: Newsletters published by Redpill Crypto Research reflect the opinions of only the editors who are associated persons of the firm and do not reflect the views of anyone else. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed account with Coinbase Inc. or any other account, and are not an offer or sale of a security. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Cryptocurrencies and digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors could lose the entire value of their investment.

Redpill Crypto Research will have no liability whatsoever for any expenses, losses (both direct and indirect) or damages arising from, or in connection with, the use of information in this newsletter. Readers are encouraged to conduct their own research and due diligence, or obtain professional advice, prior to making any investment decision.© 2020 Redpill Crypto Research. All Rights Reserved.


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