Did Bitcoin Just Print a Massive Bearish Pattern? Crypto Analyst Benjamin Cowen Maps Next Step for BTC

Crypto analyst Benjamin Cowen is looking at the possibility that Bitcoin (BTC) just formed a massive double top, which is a bearish pattern that often signals the beginning of a downtrend.

In a new strategy session, Cowen says that rather than a double top pattern, the king crypto appears to be turning a previously hard resistance level into support.

“I don’t consider it to be a double top. What I would say is that we are very likely building out macro-level support. What I mean by that is if we look at, say the weekly time frame, what you’ll notice is that this area here ($60,000) that we previously held as resistance earlier this year… That area that we held as resistance for months is now becoming support. That’s what I see.”

Cowen also says that with all the volume around the $60,000 range, it may end up being the level where the next bear market bottoms out when it comes around.

“I do think there is a decent chance in the future that the current prices could be around the next bear market bottom. It could be lower than we are today, it could be a little bit higher, but I would say around the current prices could be the next bear market bottom. I don’t think Bitcoin is going to $20,000. I don’t think it’s going to $30,000. 

If you had to ask me what is the floor for Bitcoin, I would probably just base it off the 20-week [moving average]…”

The 20-week simple moving average (SMA) combines with the 21-week exponential moving average (EMA) to create what Cowen calls the “bull market support band.” The 20-week SMA is currently roughly at $47,000 and slowly moving up each day.

Cowen says that Bitcoin may be in the process of forming a long-term macro-level support level which could end up being the “absolute fear” price area in the years to come.

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Institutional Investors Leap Into Cardano and Ethereum As Bitcoin Market Dominance Drops: CoinShares

According to a leading digital asset management firm, global payments platform Cardano (ADA) is witnessing a surge in institutional investments.

In a new report from CoinShares, ADA nearly tied institutional Ethereum (ETH) inflows last week, bringing its total year-to-date amount to $108,000,000.

Ethereum inflows totaled $17.3 million last week, with Cardano right behind at $16.4 million. The week prior, Cardano inflows were $5 million and Ethereum inflows were $31.4 million.

Source: Bloomberg, CoinShares data as of 11/12/21

The newly recorded Solana (SOL), Polkadot (DOT), and XRP inflows are $9.8 million, $5.2 million and $3.1 million, respectively.

With inflows coming into the market for a 13th consecutive week, CoinShares says that recent price rallies may have attracted more institutional capital into the space.

“Digital asset investment products saw inflows totaling US$151m last week, the 13th consecutive week of inflows, bringing year-to-date inflows to a record US$9bn. Intra-week prices rises also saw total assets under management (AuM) reach record highs of nearly US$87bn, but closing the week at US$83bn.”

Bitcoin (BTC) is below all-time highs in current value and weekly investment inflow, slipping in market dominance, according to the firm.

“Bitcoin saw the majority of inflows totaling $98 million, pushing [assets under management] to a record $56 billion.

This is despite its dominance (relative performance) versus altcoins waning over the week.”

Despite the overall digital asset investment product market welcoming inflows worth over $151 million last week, CoinShares notes that these numbers are “subdued volumes” compared to earlier this year.

“Although flows have been positive recently, we have witnessed subdued volumes in 2H, averaging $750 million daily versus $960 million in 1H 2021.”

Last week, CoinShares revealed that decentralized blockchain Tron (TRX) seemingly came out of nowhere to catch institutional interest. This week TRX saw net outflows, according to the firm.

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USDC Issuer Circle Plans Expansion into Asian Markets: Report

The blockchain-focused financial services company – Circle – intends to establish regional headquarters in Singapore. The firm will also reportedly invest in a stablecoin backed by the Japanese yen through its newly-designed project – Circle Ventures.

Circle Sees Opportunity in Asia

According to a recent Bloomberg report, Circle – the issuer of the second-largest stablecoin, USDC – expects significant growth in the use of such tokens soon. Speaking on the matter was Jeremy Allaire – Chief Executive Officer at the company – who believes the Asian markets are full of opportunities and suitable for the potential developments of USDC or the industry leader Tether.

“Especially in the inflation environment we’re in and the search for yield, this is going to be a big, big theme. While a lot of people want to focus on people hedging by buying bitcoin directly, we think for stewards of capital within corporations and corporate treasures and so on, that an allocation into stablecoin yield is actually going to be really, really attractive.”

Touching upon the new headquarters in Singapore, Allaire said his firm aims to be among the first stablecoin issuers licensed to operate in the city-state. He added that Circle is also working in collaboration with the Monetary Authority of Singapore (MAS) to “establish a lighthouse project around the adoption of USDC for major Singapore businesses.”

Stablecoins, such as USDC or Tether, are cryptocurrencies which value is tied to an outside asset – for example, fiat currencies or gold – to stabilize the price. They have grown significantly alongside the broader digital asset space throughout the past few years, reaching a market capitalization worth billions of dollars.

On that note, Allaire raised hopes that stablecoins can have more use cases in the next two years, like incorporating them for payments, Foreign Exchange (FX), Decentralized Finance (DeFi), and others.


Jeremy Allaire
Jeremy Allaire, Source: CNBC

Circle Agrees That Stablecoin Issuers Should Be Regulated as Banks

Earlier this month, the POTUS Working Group on Financial Markets (PWS) released their long-awaited regulatory report on stablecoins. Starting with the benefits, the government unit admitted they allow for “faster, more efficient, more inclusive payment option.” On the other hand, there is concern about their use in illicit financial operations and money laundering. To combat this risk, the report encouraged international collaboration.

Additionally, the PWS proposed to regulate companies like Circle as an insurer national depository institution under the Fed’s supervision. To a large extent, Allaire agreed with those requirements. He noted that looking at the volume of stablecoins in circulation and the number of transactions completed with the asset class, the proposed regulation could result in broader adoption:

“We’re supportive of that recommendation. We think [this] represents significant progress in the growth of the industry.”


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Unstoppable Domains Taps Polygon to Cut Gas Fees for Ethereum NFT Domains

In brief

  • Ethereum’s popularity comes with relatively high transaction costs.
  • Polygon is built atop Ethereum as a way of increasing transaction speeds and lowering costs.
  • Unstoppable Domains is transitioning its domain names, which are NFTs, to Polygon.

Blockchain domain name company Unstoppable Domains will no longer charge customers gas fees to mint an NFT domain name as of today, the company announced. Unstoppable has completed the first phase of its move to Polygon, a layer-2 scaling solution for Ethereum which is able to speed up transactions and mitigate fees.

Initially, Unstoppable Domains made use of the Zilliqa blockchain before moving to Ethereum and now Polygon, which touts itself as “the eco-friendly blockchain scaling Ethereum.” 

“Gas” on Ethereum refers to the variable cost of making any sort of transaction on the network and can often get quite expensive. For example, gas fees to mint a single domain name on Unstoppable Domains via Ethereum were as high as $100. While Ethereum is currently in the process of upgrading its network to reduce such fees, it’s unclear when the upgrade will be complete, which may help explain why Unstoppable Domains chose to move to Polygon now.

Unlike many other NFTs, which are often associated with visual art such as images, gifs, or short videos, NFT domain names are simply web domain names that exist on a blockchain. NFTs are tokens that can be used to represent ownership over various types of digital items, including “uncensorable” web domains. These domains also serve the dual purpose of providing short, easy-to-remember crypto wallet addresses, much like the “.eth” names provided by the Ethereum Name Service.

Unstoppable Domains claims that more than 1.5 million NFT domain names have been set up through its service since 2018. The company allows users to purchase domain names ending in .crypto, .nft, .bitcoin, .dao and .blockchain, to name a few.

Now that Unstoppable Domains is moving to Polygon, the company plans to offer support for domain management as well as transfer solutions for those with older Zilliqa and Ethereum-minted domains. At the end of the month, users will be able to set up domains on Polygon with their cryptocurrency addresses as well as add other features like NFT galleries and social media links. If users wish to move their domains from Polygon to Ethereum, they’ll be able to do so sometime in early 2022, but Ethereum gas fees will apply


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Ethereum-Based Holdings Among Institutions Up 19% in Q3: SEC Filings

Bitcoin institutional holdings were down last quarter while many of the same firms upped their stakes in Ethereum-based products, according to SEC filings.

The number of Grayscale Bitcoin Trust shares held by large institutions dropped 2.6% in the third quarter, while the number of Grayscale Ethereum Trust shares rose 19% compared to last quarter.

Altogether large institutional investment managers reported $546.8 million in GBTC and $74.6 million in ETHE, using today’s share prices for the two trusts. Firms with at least $100 million in assets under management are required to file a 13F form within 45 days of the end of the quarter to disclose what’s in their portfolio. 

In the latest batch of regulatory filings, 10 new firms disclosed that they had ETHE in their portfolios. The two largest were NYC-based Tocqueville Asset Management, with 79,398 shares of the Ethereum trust, and San Francisco-based Main Management ETF Advisors, with 78,000 shares.

The growing interest in having indirect exposure to Ethereum through the trust could be coming from all the institutional excitement around DeFi, a catch-all term used to describe financial products that allow their users to borrow, lend, or trade crypto assets without an intermediary. As Decrypt’s Liam Kelly pointed out last month in the DeFi Friday newsletter, figuring out how to safely custody a yield-accruing DeFi token remains a formidable challenge for a lot of banks and investment managers.

Meanwhile, several firms appear to have dropped their GBTC shares entirely. The largest of those, Texas-based Outlook Wealth Advisors, LLC, sold its 60,000 shares of GBTC and instead reported that it now holds 60,000 shares of mining and software development company Bitcoin Services Inc. (BTSC). 

At the start of the year, Bitcoin and Ethereum exposure tended to only show up by way of the two Grayscale trusts. But that’s started to change, at least when it comes to Bitcoin. Bitcoin Services Inc, Toronto-based 3iQ’s The Bitcoin Fund, Idaho-based miner XTRA Bitcoin Inc. and New York-based Osprey Bitcoin Trust accounted for $17.5 million of the holdings reported in the third quarter.

Cathie Wood’s ARK Invest is still far and away the firm with the largest individual stake in Bitcoin- and Ethereum-based investment products. ARK’s holdings account for 82% of all the GBTC shares and 42.6% of all ETHE shares.


The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.


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Valkyrie Is Launching a $100M DeFi Hedge Fund

Key Takeaways

  • Valkyrie Investments is planning to launch a $100 million DeFi hedge fund next week on Monday, Nov. 22.
  • The fund will include investments tied to at least 24 assets on 13 blockchains including Ethereum and Solana.
  • Unlike some other funds, Valkyrie will hold funds on-chain to take advantage of staking and yield farming.

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Valkyrie Investments is planning to offer a new hedge fund that is connected to the performance of various DeFi assets.

Fund Will Go Live Next Week

The investment vehicle will be available next week on Monday, Nov. 22 as the Valkyrie On-Chain DeFi Fund.

It will include investments in at least 24 cryptocurrencies on 13 different blockchains. Though a complete list has not been published, it will reportedly include assets from Ethereum, Solana, Avalanche, Binance Smart Chain, Matic, and Fantom.

The hedge fund will have $100 million of financial backing, sourced from Valkyrie’s investors and general partners.

Wes Cowan, Valkyrie’s Managing Director of DeFi, has stated elsewhere that Valkyrie will hold its assets on-chain. This will allow the company to take advantage of yield farming, staking rewards, and similar returns on investment. Gains from those activities will presumably be passed on to investors.

That decision will also set Valkyrie’s offering apart from Galaxy Digital’s competing DeFi fund, which holds cryptocurrency passively and does not take advantage of those DeFi features.

Valkyrie’s Other Accomplishments

For years, Valkyrie has been one of several companies pursuing a Bitcoin exchange-traded fund (ETF). Though a Bitcoin spot ETF has not yet been approved, Valkyrie became one of the first asset managers to launch a Bitcoin futures ETF this fall.

That fund, which went live alongside competing products from ProShares and VanEck, generated $80 million in trading volume during its first day of operation on Oct. 22.

Valkyrie then saw its application for a related product, a leveraged Bitcoin futures ETF, rejected by regulators days later.

The company also offers more traditional crypto trusts alongside its newer ETF. Trusts are available for several coins including Bitcoin, Polkadot, Dash, TRON, Zilliqa, and Algorand.

Disclaimer: At the time of writing this author owned less than $100 of Bitcoin, Ethereum, and altcoins.

This news was brought to you by ANKR, our preferred DeFi Partner.

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‘Bitcoin Senator’ Lummis Joins Wyden to Undo Crypto Language in Infrastructure Bill

In brief

  • President Biden signed a $1.2 trillion infrastructure bill into law.
  • It included language dealing with cryptocurrency.
  • Senators Wyden and Lummis are introducing a bill to change that language.

Senator Cynthia Lummis (R-WY) gained fame among the crypto set for her embrace of Bitcoin and disdain for the Federal Reserve’s expansionary monetary policy. Her colleague, Sen. Ron Wyden (D-OR), has long championed privacy protections for ordinary Americans. 

It’s no surprise, then, that the two are co-sponsoring legislation that will shield certain cryptocurrency actors from tax reporting requirements that went into effect after President Joe Biden signed a $1.2 trillion infrastructure package into law today.

The Wyden/Lummis bill would revise the definition of digital asset brokers to exclude cryptocurrency miners, stakers, wallet providers, and blockchain software developers, so that they would not be responsible for filing customer data to the Internal Revenue Service.

Earlier this year, the crypto industry was thrown into a panic when a key part of Biden’s infrastructure bill included a provision redefining the definition of broker for tax purposes to include those dealing with digital assets. While the ostensible purpose of the bill was to pay for several billion in spending by making sure people were paying their taxes on cryptocurrency earnings, trade groups and crypto lobbyists pointed out the legislation, if read broadly, could put a chill on the crypto ecosystem.

For starters, the bill put a whole range of actors in the category of digital asset intermediaries, not just exchanges. While an exchange could reasonably be expected to report large transactions to the government in line with anti-money laundering and terror financing rules, cryptocurrency miners don’t have personal data about the people whose transactions they are processing. Moreover, wallet providers and software developers, many argued, shouldn’t be tasked with tracking the money that travels through their tools.

Today’s language again revises the broker definition to include digital asset actors who don’t actually handle funds. 

“We need to be fostering innovation, not stifling it, if we are going to maintain America’s position as the global financial leader,” said Sen. Lummis in a press release. “I’m proud to introduce this bipartisan bill to ensure that our tax system reflects the realities of digital assets and distributed ledger technology.”

Unlike many bills, which are floated without any real hope of passing, this one has the potential to become law. Sen. Wyden chairs the Senate Finance Committee, providing the bill with a track to the full floor. Moreover, the senators previously worked together to amend the existing infrastructure bill along similar lines, only to be stymied late in the game when a single senator, Richard Shelby (R-AL), voted against the amendment.

Senator Wyden has frequently sponsored or supported bills that would block the government from mandating backdoors for encryption protocols, weaken privacy protections in the Fourth Amendment, or allow for increased electronic surveillance of American citizens.

Senator Lummis, though more conservative on financial matters than Wyden, is more or less aligned with him on matters of Bitcoin as it relates to personal privacy. The freshman senator bought her first Bitcoin in 2013, stating later, “I believe in the economic power of scarcity and the potential for bitcoin to address some of the manipulations in our financial system.”


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Cardano Founder Addresses Price Speculations As ADA Struggles

Cardano has not been doing well these past couple of days. With strong competition from Solana, the digital asset has had a hard time maintaining its position in the market. This has translated into suffering prices on the part of ADA, causing the market to speculate on where the value of the asset might be headed. Founder Charles Hoskinson took to YouTube to address these speculations.

Hoskinson who recently returned from his trip to Africa took to his YouTube channel to address the community on the trip and what lay in the future for the blockchain. As usual, the founder would usually take questions from the audience while live on YouTube and during the latest episode, the issue of price speculation came up a user asked about Solana flipping Cardano.

Related Reading | Cardano Flips Solana, Tether To Reclaim Spot At 4th Place

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Everyone Will Be A Millionaire

The question about the value of ADA seems to have struck a nerve with the founder, who questioned the identity of the user behind the question. Hoskinson said that there was something wrong with the way the market perceived value and this did not spell good news going forward. He pointed out that things like NFTs were being sold for insane amounts of money, saying the market was headed towards hyperinflation.

Cardano price chart from TradingView.com

ADA price trending above $2 | Source: ADAUSD on TradingView.com

The founder explained that accumulating money will provide no real meaning or purpose to one’s life, but added that everyone will be a millionaire soon enough. Not due to the value of digital assets going up, but hyperinflation which threatens to erode the market. “As we get closer and closer to hyperinflation, used to be millions, then it was billions, now it’s trillions,” said Hoskinson. “Every one of you will be a millionaire soon enough.”

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The mathematician did not end it there, though. He pointed out that the value of things is subjective, asking why so many people care about the price of ADA so much. For a blockchain like Cardano, it’s really all about the tech. “Why do you care?” Hoskinson asked during the session. “The whole definition of the value of things is up for grabs.”

Africa Is Looking Good For Cardano

Charles Hoskinson updated the community about his just-concluded tour around Africa, opening up about the opportunities in the continent for the project and blockchain technology in general. The founder referred to the month-long trip as “worthwhile” with “challenges of hyper-organization.”

Related Reading | What Went On In The Secret Meetings Between Cardano Developer IOHK And Zanzibar Officials?

Shifting focus to the Africa fund, Hoskinson revealed that some announcements are in the pipeline.

“We’ve brought some partners in. I think it’s going to end up being larger than anticipated. There’s a lot of great investments we’re going to be able to make in Africa, both on the infrastructure side, as well as the crypto side, to harmonize the two and bring things up.”

Featured image from Blockchain News, chart from TradingView.com


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Paradigm Co-Founder on Record $2.5B Fund and Next Era of Crypto

In brief

  • Paradigm’s Matt Huang says the crypto investment landscape is shifting toward a focus on consumer rather than infrastructure.
  • A recent report says Paradigm’s return rate was 200% in the first half of this year.

Paradigm is not big on attention. Unlike the crypto world’s other investing behemoth, Andreessen Horowitz, the three-year-old firm stays out of the media limelight as it quietly builds an empire. But the announcement today of a new $2.5 billion fund—the largest ever for a crypto firm—was big enough news for co-founder Matt Huang to agree to speak publicly about what Paradigm is up to.

Huang, a veteran of VC giant Sequoia, says he and his partner, Coinbase co-founder Fred Ehrsam, started Paradigm in 2018 on the belief that in the future, “all the most interesting tech startups would be crypto startups.”

That led them to make large bets on DeFi projects like Uniswap and FTX—which today are giants in the space—and to invest in buzzy up-and-comers like Royal, a service that aspires to transform music royalties through NFTs.

Now, Huang says, the crypto industry is undergoing an evolution as the focus of both startups and investors shifts from infrastructure projects to consumer-focused platforms.

“Over the past year, there’s been a tremendous broadening in what crypto startups can mean,” says Huang, citing in part the emergence of the NFT economy. “The infrastructure has advanced over the last few years. Now, we’re ready for broader applications.”

As for when crypto will have its “Netscape moment”—a popular cliche that describes when the Internet took off in 1993 thanks to the first easy-to-use web browser—Huang says it can be difficult to tell. That’s in part, he notes, because historical analogies are imperfect but also because user numbers, which are the common barometer of a tech platform’s popularity, don’t capture the success of crypto.

“Crypto is deeply entwined with money,” Huang says, suggesting the crypto industry’s success should be measured by the value of blockchain tokens and its rapid adoption in the financial world.

And while it might be hard to identify the best metric to judge crypto, the same might be said of Paradigm.

Venture capital in the crypto era

Silicon Valley’s famous venture firms—the likes of Accel, Kleiner Perkins, and Sequoia—are known for disrupting different industries, but haven’t faced much in the way of disruption themselves. That’s changing in the crypto era, as token sales and DAOs provide an alternative for startups to raise money.

The ability to launch news token has led many projects to fund themselves outside the VC ecosystem altogether, leading some big name VC firms—notably Andreessen Horowitz—to reinvent themselves as crypto investment funds. Meanwhile, crypto native funds like Paradigm, Polychain Capital (founded by Coinbase alum Olaf Carlson-Wee), and 1confirmation (founded by Coinbase alum Nick Tomaino) have emerged to back them.

How are these crypto funds performing? It’s hard to say. In the case of traditional VC firms, the funds they operate typically have a seven-year timeline and periodically reveal the profits they make from selling shares when their portfolio companies are bought or goes public.

Paradigm and the other crypto firms operate differently in that they often take tokens in return for investment—tokens they typically get a discounted rate. These tokens are both liquid and highly volatile so the firms’ performance will depend on the state of the crypto market and whether they decide to cash out.

Huang declined to share any details about Paradigm’s token portfolio or how it manages those tokens. But the Financial Times cited documents saying that the company’s first fund (technically a hedge fund), which raised $400 million in 2018, notched a 200% rate of return in the first half of this year.

Paradigm declined to comment on the veracity of those documents (which may have been given to the newspaper by the firm itself), but it’s worth noting that the performance far outstrips that of a traditional VC fund. At the same time, the time window in question coincides with a massive crypto bull-run, so the return is likely atypical.

Huang, meanwhile, is quick to emphasize that Paradigm differs from other funds in that its activities go far beyond investing and supplying a network to portfolio companies. He says the company is spending heavily on fundamental research and on legal and regulatory issues.

Paradigm’s ability to raise $2.5 billion as well as the high profile of some of its investors—including Harvard and Princeton universities—are a testament to its success so far, but will also increase the expectations placed upon the firm. Its performance will likely only become apparent five or more years from now. But that’s the story for all of crypto.

As Huang notes, “It takes a lot of time and projects to rebuild the entire financial system from scratch.”


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Bitcoin (BTC) $ 26,195.02 1.43%
Ethereum (ETH) $ 1,581.32 0.71%
Litecoin (LTC) $ 64.47 0.28%
Bitcoin Cash (BCH) $ 207.11 0.86%