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Inflation, regulation and uncertainty in all markets. These are increasingly recurring themes in this last quarter of 2021. The week ended yesterday was no exception for the Rivemont crypto fund. Indeed, the price action of the crypto market is closely linked to that of traditional exchanges, which is directly influenced by the words of Fed Chairman Jerome Powell. The latter on Tuesday said it was time to remove the term “transition” from the now-known inflation. Stock markets have been on a roller coaster since then, and bitcoin was no exception. Despite the volatility, prices are in the same region today as they were seven days ago.

Source: Adobe

If this is the case for Bitcoin, the same cannot be said for Ether, 2and The largest cryptocurrency by capitalization. Ethereum’s performance against bitcoin has continued throughout the year and looks set to end 2021 on a high note. The ETH/BTC ratio also reached a level that has not been reached since May 2018 yesterday. altcoins right now. The trend over the past twelve months couldn’t be clearer, with BTC’s overall market dominance dropping to just 41.5%.

Be careful though. The last time we talked about a high for ETH/BTC and record lows for the dominance index, bitcoin quickly reminded us that it is not just a crypto asset among others. We seem to be near a possible support zone that could lead to a reversal. Although going against the price trend is against the fund philosophy, it is a dynamic that should be followed closely.

But meanwhile, about two out of every three dollars of the fund’s capital remained invested in ETH all week, beating the bitcoin index by a few points.

What explains the success of Ethereum? Undoubtedly, the success of moving from a simple speculative asset to its real profession, that is, a high utility that is adopted proportionally. as said this analystA large portion of Ether is placed in smart contracts on the network. We’re talking about 26.86% of the total supply here, or 31,825,848 ETH for more than $149.5 billion. These Ethers are used through decentralized applications that power virtual economies, stable currencies, and many solutions that use the ETH chain as a consensus mode.

Of the 26.86% of these smart contracts, 77% are locked in decentralized finance applications. Additionally, just like BTC, ETH reserves on exchanges are at a low level that hasn’t been touched for three years. More than 7% of the ETH supply is already in these Network 2.0 contracts, a threshold that promises to rise rapidly. Also, no more than 50% of the ETH supply has been moved from wallets that have held them for more than a year. In addition, since then London Hard Fork, 1,016,743 ETH was burned in just three months. This is almost 1% of the total supply. The quoted analyst suddenly concludes that more than 70% of the available supply will be held rather than exchanged. With more than 13,500 decentralized applications to be strengthened, it is possible to say that the supply shock has begun. This may be just the beginning.

Similarly, analytics firm Santiment adds that the largest ETH wallets (holding 100k to 10 million ETH) have accumulated 676k ETH in the last 12 days, 1.28 million ETH in the last 45 days and 1.46 million ETH in the last 60 days. . This is a great sign that the big players are keeping their trust.

On the news side, keep in mind that it’s the dev Fidelity’s turn to launch an ETF based on bitcoin price in Canada. Unlike similar products in the United States, it is an actual BTC reserve that will be held by the fund, not futures contracts. Such a product puts upward pressure on demand. “It must be embarrassing for the SEC for one of America’s biggest names in investing to go North to serve its clients,” said Eric Balchunas, senior ETF analyst at Bloomberg. Fidelity, a Boston-based firm, manages a staggering $4 trillion in assets.

Among our neighbors to the south, the controversy surrounding market regulation, especially cryptocurrencies compared to the US dollar, continued this week. US Treasury Secretary Janet Yellen said stablecoins could allow for greater efficiency and help facilitate payments, but they need appropriate regulation. “There are significant risks associated with it, including risks to payment systems and risks to concentration of economic power,” he said. Interestingly, Yellen, with her updated guidance, Financial Action Task Force It explained that its intent is not to regulate individuals or providers who “provide only ancillary services or products to a virtual asset network, including hardware manufacturers, non-display wallet providers, software developers, or otherwise not covered minors,” as providers of virtual assets. activities”. In short, we want to focus regulation on market players who ensure the security of their clients’ crypto assets.

What’s new in MicroStrategy? A massive new bitcoin addition to his treasury, of course. Michael Saylor’s firm purchased 7,002 bitcoins between October 1 and November 29 for approximately $414.4 million in cash or $59,187 per coin. The company currently has 121,044 bitcoins purchased for approximately $3.6 billion, or an average of $29,534 per coin.

While the size of the purchase is incomparable, it should also be noted that El Salvador’s President Nayib Bukele said the Central American country took advantage of bitcoin’s 7.7% drop on Friday to purchase another 100 pieces. “El Salvador just bought dipBukele wrote on Twitter.

Technically, the picture is very similar to the bitcoin picture from last week. On the upside, a higher local top should be painted, meaning it should close a day above $59,500. To truly judge the continuation of the bull market, the next bullish test would be the resumption of the 30- and 50-day moving averages, currently between $60,500 and $61,000. On the downside, the impact of the 100-day moving average is particularly obvious. The latter served as a springboard during the recovery below $54,000. This moving average always points to this area. Keeping it below the price will be very important.

On the Ethereum side, it will be interesting to observe if the rate can stay above 0.08 and use this course as future support, which could allow a fresh push towards peaks not seen in nearly four years. In dollar terms, the price is already flirting with an all-time high of $4,870. If the trend continues, an exploration zone above $5,000 could be explosive.

This article is brought to you by Fonds Rivemont. The Rivemont crypto fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA compliant. Accredited investors can learn more here.

Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and in no way constitutes investment advice or trading instructions.

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