Daily: Bitcoin Surges past 7000! Alt coin Bubble?

Boxmining avatar Boxmining
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Description

Bitcoin has surged to an all-time high of $7000, causing the alt-coins to drop in the process. 1:28 Market Recap 1:28 Bitcoin $7000 whilst causing alt “bubble” 4:00 Futures Trading Announcement by CM...

AI Analysis

Hey friend! So, this video dives into the wild ride the crypto market was on, especially with Bitcoin hitting $7,000, and what that means for everything else. It covers major market movements, big institutional moves, and how different governments are thinking about crypto, all while giving a heads-up on what to watch out for.

Here’s the rundown:

* Bitcoin's Explosive Rally and Altcoin Impact: Bitcoin just went on a massive rally, touching $7,200 before settling around $6,976, just shy of $7,000. It's a huge psychological number for people, and the rapid rise from $5,000-$6,000 in just a few days has been phenomenal. This Bitcoin surge, however, caused a "wall of red" in the altcoin market, meaning many altcoins saw significant drops (like Vertcoin down 20% and ARK down 10%). It felt like money was flowing directly from altcoins back into Bitcoin, making some people fear the altcoin market was "dead."
* My take: While it's true that when Bitcoin rallies, altcoins often drop in the short term, Bitcoin is the "trailblazer" and "gateway" to the entire crypto space. Most people learn about Bitcoin first, then discover altcoins. The overall 90-day correlation between Bitcoin and altcoins is positive, meaning when Bitcoin rises, the whole market tends to rise over time. It's exciting because more attention on Bitcoin means more people coming into the crypto space overall, which is good for everyone.
* Who's Trading?: A big chunk of the trading volume comes from Korea, where people are paying a premium ($7,328 on BitThumb) for Bitcoin. This "Korean premium" is due to their market being a bit closed off, making arbitrage (buying low in one place and selling high in another) harder. Japan is also a major player. There's also speculation that Chinese traders might be re-entering the market via VPNs to international exchanges in Korea and Japan, especially since domestic exchanges in China were shut down.

* CME Group's Bitcoin Futures Announcement: A major New York-based options trading company, CME Group, announced plans to list Bitcoin for futures trading. This is a huge deal because it brings a massive amount of attention to Bitcoin and makes it accessible to a much broader audience, especially big institutional money.
* My observation: At conferences in New York, many attendees are new to crypto, asking basic questions like "What is blockchain?" or "What is Bitcoin technology?" Surprisingly, a lot of these new players talk in "billions" of dollars, not just millions. This influx of significant capital from institutional investors who are just starting to learn about crypto is a major driving force behind Bitcoin's insane rally.

* Amazon's Crypto Domain Purchases: Amazon recently bought three new cryptocurrency-related domain names: "Amazon cryptocurrencies," "Amazon cryptocurrency," and "Amazon Ethereum" (they already owned "Amazon Bitcoin").
* My view: While this is interesting, it doesn't necessarily mean Amazon is about to start accepting crypto payments. Companies often buy domain names for brand protection, preventing others from squatting on them or using them for scams. It's more of an acknowledgment that the cryptocurrency market is growing and is a hot topic, indicating they're aware of the interest. However, I don't see Bitcoin as a major form of currency for payments right now due to expensive transaction fees. The technology is still "primitive" and has many issues to solve, especially with keeping crypto safe. So, while Amazon acknowledges the demand, they haven't officially committed to integrating crypto payments yet.

* Australia's Relaxed Stance on Crypto Regulations: The Reserve Bank of Australia has declared that blockchain and cryptocurrency regulations are "unnecessary." This is a refreshing contrast to some Southeast Asian countries that have been very restrictive.
* My perspective: Australia seems quite open to crypto; they even recently removed the 5% GST (goods and services tax) on crypto purchases. It's important to track how different countries approach crypto, as local laws can significantly impact how people view and adopt cryptocurrencies in their regions.

* SEC Warns on Celebrity ICO Endorsements: The SEC (Securities and Exchange Commission) issued a statement flagging celebrity promotions of ICOs (Initial Coin Offerings) as potentially "unlawful." We've seen celebrities like Floyd Mayweather and Paris Hilton promoting various ICOs.
* My advice: While celebrity endorsements can bring buzz, that buzz often dies down quickly. It's crucial for anyone considering an ICO to always do their "due diligence" and "independent research." This personal research is the only thing that will keep the ICO market honest and protect investors.

* Looking Ahead: There's still a lot happening in the crypto space, including ongoing developments like SegWit (a Bitcoin protocol upgrade). We're also approaching some "biggest forks in cryptocurrencies" – a significant event that I believe everyone should understand to be well-informed about the market's future.

Overall, it's a super exciting time in crypto, with big money entering the market, regulatory bodies starting to weigh in, and key technological shifts on the horizon. Stay informed and do your own research!

Transcript

What's up everyone? My name is Michael and welcome to Box Mining Daily. Today we're going to start off with the market recap first of all. And Bitcoin is on this major rally. So it came from kind of yesterday night when I did the live stream. It started rallying towards 7,000. We do have a slight pullback. It's around 7,000 right now. But what it's doing is it's causing the alt to drop. So you do see the alt market dropping a little bit. I'm going to talk a little bit about that. I'm going to t...