Bitcoin, Cryptocurrency, and Ethereum Update - (Monday 16th Nov)

Boxmining avatar Boxmining
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Description

Latest Bitcoin and Cryptocurrency news and trends. We take a look at the key events affecting the blockchain sector and review market movements. Combining both fundamental analysis and technical analy...

AI Analysis

This video dives deep into the latest happenings in the crypto world, covering everything from Bitcoin's current market movements and institutional adoption to the intricacies of DeFi, recent hacks, and the ongoing developments in various altcoins. It emphasizes the importance of understanding underlying fundamentals and market sentiment alongside technical analysis to navigate the ever-evolving crypto landscape.

* Bitcoin is currently hovering around the $16,000 mark and has been relatively stable in the last 24 hours, showing minimal movement. While prices haven't surged recently, fundamental news points to an extremely bullish outlook for the cryptocurrency.
* Ethereum saw a slight pullback after nearing $480, but the overall market trends, including Bitcoin, generally correlate, meaning altcoins often follow Bitcoin's lead or perform well when Bitcoin is stable.
* From a technical analysis perspective, Bitcoin initially showed signs of a wedge breakout but instead has formed an upward channel. It met strong resistance around $16,444.
* The market has seen "Bart Simpson patterns" (a sudden price drop followed by a quick recovery), which are often intentional moves by whales to liquidate over-leveraged long positions before the price bounces back. It's a stark reminder not to over-leverage your trades.
* The presenter is optimistic Bitcoin will stay within its current upward channel.
* While Bitcoin is making major moves, an eye is also being kept on altcoins. Historically, altcoins tend to "fly" when Bitcoin stabilizes after significant movements, so now is a good time to increase exposure to them, preparing for a potential "explosion."
* The official Telegram group is now private to maintain quality discussions and prevent bots/scammers. You need to fill out a Google form to join.
* A word of caution about a scammer who stole the old public Telegram handle and was charging people $200 to join, which is not how the legitimate group operates.
* Public interest in Bitcoin, as measured by Google Trends, is increasing but still shows some caution.
* Institutional interest in Bitcoin is growing massively, leading this current bull run.
* A recent independent report from a Citibank managing director argues Bitcoin is the "digital gold of the 21st century." This isn't just an isolated opinion; it signifies that openly bullish discussions about crypto are becoming "kosher" in traditional finance, likely a strategic move by big banks to test the waters.
* Prominent figures like Michael Saylor, initially bearish on crypto, have now accumulated significant amounts of Bitcoin, highlighting this shift.
* DBS, a major bank in Asia, is becoming very crypto-friendly, indicating a growing acceptance and integration of crypto into traditional banking services.
* The formation of RCEP, the world's largest trade block in Asia-Pacific, alongside China's aggressive push for its digital currency (DCEP), points to an emerging currency war.
* Bitcoin's unique power lies in its decentralization; it can be sent regardless of political or trade alliances, making it a potentially powerful currency in times of currency conflicts or restrictions.
* Regarding Akon's "Akoin" for Africa, while the goal of unifying currencies and fighting corruption is noble, Bitcoin is considered the more viable solution due to its established liquidity and global reach, unlike new altcoins.
* Uniswap ($UNI) farming rewards are ending soon, which will unlock roughly $2.2 billion worth of Ether.
* It's unlikely this will cause a massive dump of Ethereum, as the farming rewards for UNI were relatively small, suggesting that participants staked because they believed in Ethereum long-term, not just for the small yield.
* These unlocked funds will likely move to other yield farming pools, which could reduce the yields in those pools due to increased participation.
* The presenter is optimistic about UNI's price post-farming, as the halt in new UNI issuance will create scarcity, similar to Bitcoin halvings or YFI's supply control, which historically boosts value. UNI has already been trending upwards.
* The recent $6 million Value DeFi ($VALUE) hack was due to a flash loan attack, a common DeFi vulnerability. Flash loans allow hackers to borrow large sums of crypto without collateral to exploit minute price differences across exchanges.
* While hacks are unfortunate and a learning experience, the presenter notes that they are relatively small compared to the overall gains in DeFi. He personally has reduced his active participation in yield farming, especially in ETH/USDC pairs, to avoid impermanent loss given ETH's price surge.
* His strategy has been to simply hold Ethereum, which has been more profitable. He believes the risks in farming currently outweigh the rewards, especially since yields are much lower compared to the early days of DeFi (e.g., YFI's thousands of percent yields).
* The presenter is researching altcoins like Dodo and Alpha Finance based on community suggestions.
* Regarding Solana ($SOL), Sam Bankman-Fried (FTX/Serum) is a major supporter. Solana offers an alternative to Ethereum 2.0's sharding by scaling without it. A concern with Ethereum 2.0's sharding is potential communication delays between shards for dApps.
* However, Ethereum's community is incredibly strong and die-hard, making it very difficult to replace as the dominant smart contract platform, despite potential scaling alternatives.
* Long-term, the presenter is super bullish on Bitcoin due to growing institutional adoption, PayPal integration, crypto custody services from banks like DBS, and Bitcoin's potential role in impending "currency wars" between major global currencies.
* It's perfectly acceptable to take profits, even in a bull market. The presenter plans to dollar-cost average (DCA) sell about 2-3% of his substantial holdings (accumulated since Bitcoin was $3k-$4k) monthly. This isn't a bearish move but a strategic profit-taking approach.
* DCA (buying or selling) is a proven strategy for mitigating risk and avoiding greed, by consistently buying or selling at set intervals or price zones.
* For mining coins, a general approach is to sell 80% and keep 20%, as large positions can be risky due to constant sell pressure from ongoing farming distributions.
* Optimism surrounds UNI's price once its token distribution ceases. If the community votes to implement a UNI/ETH "pool 2" for farming, it could significantly impact UNI's price due to built-in "ponzinomics" (mechanisms that encourage holding/buying). The development of UNI V3 also contributes to this optimism.
* The Bitcoin Cash ($BCH) network recently split into BCH (BCHN) and Bitcoin Cash ABC (BCHA). BCHN, which does not include a developer tax, is the dominant chain with more hash power and blocks. BCHA, which includes an 8% developer tax for developers, is a contentious fork and currently has very low hash power, making it practically unusable.
* The presenter shared his history with BCH, noting it didn't fulfill its promise to be the "real Bitcoin," and that its community is now quite fractured.
* NEO, once a highly hyped altcoin, has managed expectations. While still active with some development, it hasn't achieved its initial promise to be the dominant blockchain in China, especially given Ethereum's strong network effect from DeFi. Ethereum's dominance makes it very difficult to replace.
* The video also briefly touches on real-world issues like negative interest rates in German banks and the presenter's views on the COVID-19 pandemic, attributing its spread to political inaction and a lack of early global cooperation.
* In terms of general tech, the presenter highlights the stability and ecosystem benefits of the iPhone 12 Pro Max camera, despite being off-topic from crypto. He also notes the current difficulty in buying new tech like RTX 3080s or PlayStation 5s due to scalping.
* The presenter offers several resources to stay informed: the "Bitcoin Out of the Box" podcast for in-depth interviews, the Boxmining Newsletter for bi-weekly market summaries, and the Boxmining Announcements Telegram channel for daily community-driven updates. A new channel, "Boxmining Clips," offers shorter, topic-specific video snippets.

Transcript

it seems so we should live stream isn't available at this moment okay it should be sending data and we should be live right now guys so guys welcome back to another episode of box mining here it's a live episode and we're gonna discuss everything about cryptocurrencies bitcoin where it's gonna go ethereum we're gonna do some cryptocurrency related news lots of news happening on the banking front now big banks are saying yeah guess what you know what bitcoin they're right about it all along well...