BTC breaks $10k as it gets listed on... the US banking system

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Bitcoin briefly broke $10k as the news of banks being able to custody bitcoin continues to be digested

The major news late last week continues to ripple (no pun intended) through the bitcoin and crypto markets.

As I type, it's currently trading around $9,930 after briefly getting as high as $10,200 a few hours prior:

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(Source: https://www.tradingview.com/symbols/XBTUSD/)

Per usual, there isn't a definitive catalyst for the move though there are some likely culprits.

The main one being the mega news released last week that clarified for federally chartered banks (of all sizes) that they could indeed custody bitcoin and crypto on their own account or on account of their clients.

An announcement that could open bitcoin and crypto up to trillions in new investments.

More on that can be seen here:

https://hive.blog/hive-167922/@jrcornel/banks-can-now-custody-bitcoin-and-that-is-yuge-news-going-forward

The rotation may be starting...

As I mentioned above there is no definitive catalyst, however, there are certainly some likely ones...

Bitcoin is marching higher and most altcoins are pulling back.

That is reversing the trend we have been seeing for much of the last couple weeks where bitcoin had been relatively weak while altcoins have been flying.

It seems reasonable to suspect that some of the fuel for this bitcoin rally is coming from people taking profits in altcoins and funneling them back into bitcoin.

This combined with a rather large liquidation on Bitmex are likely playing a major role in bitcoin's new found strength.

There was roughly $75 million in short liquidations as bitcoin hit $10k a few hours ago.

And as we have seen numerous time over the last couple years, what happens on Bitmex tends to move the markets.

The start of the big one?

This may be the start of the parabolic bull market rally that many have been waiting for ever since the halving.

It tends to build slowly at first with the largest gains happening towards the end of the cycle.

One Peter Brandt tends to think it is:

“That is actually where my head is. Massive symmetrical triangle in $BTC points to ATHs, then $50k.”

(Source: https://twitter.com/PeterLBrandt/status/1287163932134834176)

I think he is probably right.

However, keep in mind that based on past trends we shouldn't expect bitcoin to peak during this cycle until mid to late 2021.

So, "parabolic rally" is a relative term. :)

That being said, I still would not be surprised to see bitcoin make new highs before the calendar flips this year.

Stay informed my friends.

-Doc

Posted Using LeoFinance



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16 comments
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There was also a recent U.S. Supreme Court ruling that Bitcoin is 'money' so that may be a factor to think of as well.

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Happy Birthday, I must say I enjoy your posts as I am learning quite a lot from them, thanks. (Not looking for upvotes. It's Just, if you can't say something nice on someones birthday then when can you)

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Haha well thank you. I appreciate the kind words and am glad you find my posts informative. :)

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Happy Blockchain-Day :)

lol, Bitcoin getting listed on the US banking system is huge.

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I mean once the banks allow customers to really throw some money into crypto. It’s just supply and demand. Institutions have been shook out and are gonna have to buy back higher

Posted Using LeoFinance

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It's one of the few times retail may be in before big institutions.

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uh thats a good listening :D

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Hi @jrcornel! Thanks for the good article. Bitcoin is indeed going up and actually I believe it's already around 10K USD when I looked on Binance as I wrote this comment. I wonder if most alt coins will follow or go the opposite direction.

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Huzzah, not sure if got the news yet, but it's currently holding strong at $10,200, after making another strong break upwards. Ethereum is rising pretty healthily too, and I wonder if this could be the last time we see Bitcoin going under 5-digits?

Posted using Dapplr

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