A Week in Crypto (6-12 Nov 2023)

Hello Token Mindset community and to all our newest members - welcome! The crypto space is buzzing with excitement. This week we have a few of the biggest stories impacting this space to include BlackRock’s ETH ETF, the recent Altcoin Pump, and Bitcoin’s continued price surge explained. However, lets first visit a truly exciting milestone for Bitcoin!

Bitcoin Surpasses Key Players in Market Cap

We all have friends and family who are still Bitcoin sceptics. Additionally, we should all share this with them - BTC now has a higher market cap than Tesla Inc., Berkshire Hathaway Inc., Johnson & Johnson, Visa, Exxon Mobil Corporation, and Walmart Inc. just to name a few!

BlackRock’s Ethereum ETF

BlackRock looks to bolster its $9.4 trillion assets under management with another crypto-based ETF

Source: CoinDesk

Big news in the crypto world! BlackRock, the world's largest asset manager, is planning to create an ETF (Exchange-Traded Fund) that holds Ethereum's ether (ETH). This move shows BlackRock's growing interest and commitment to cryptocurrencies.

Key Points:

• BlackRock's plan was revealed in a filing with Nasdaq, the U.S. exchange where they aim to list the product. Of course, regulatory approval is needed for this.

• Following this news, the price of ETH surged to about $2,100, a 3% increase. It settled a bit afterward but is still up by around 9% from 24 hours earlier.

• Earlier, it was disclosed that a new entity called "iShares Ethereum Trust" was registered in Delaware. iShares is BlackRock's ETF division.

• BlackRock is already making waves in the crypto world by seeking to list a bitcoin ETF, making it easier for regular investors to access crypto. CEO Larry Fink has become a strong supporter of crypto, showing a change from his previous doubts.

• In this new ETF plan, U.S.-based crypto exchange Coinbase is set to be the custodian for the ether held by the product. An unnamed third party will handle its cash.

• BlackRock has a market-surveillance agreement with Coinbase. These surveillance-sharing agreements are crucial for getting ETFs approved by the U.S. Securities and Exchange Commission (SEC).

• The filing seems to address potential SEC concerns about surveillance-sharing, stating that BlackRock believes the prices for CME Group's ether futures closely match spot ETH prices. This is a key point in getting approval for the ETF.

Exciting times ahead for the crypto community! Stay tuned for more updates.

Altcoins Pumping This Week Ahead of Alt Season

The Altcoin market witnessed a surge of activity this week from the largest tokens to the smallest players. Let's break down some of the bullish activity:

Source: The Motley Fool

Key Market Movements:

• Solana (SOL) displayed remarkable strength, rising by an impressive 38.6% in the past week.

• Chainlink (LINK) made a substantial leap of 36.8%.

• Despite challenges, Cronos (CRO) saw a noteworthy increase of 37.6%.

What's Driving the Crypto Boom:

• The standout news is BlackRock's intention to launch an Ethereum ETF, sparking speculations about the possibility of smaller tokens like Solana and Chainlink following suit.

• While owning any cryptocurrency outside of an ETF is an option, many investors view ETFs as a cost-effective and straightforward way to hold assets. The belief is that more ETFs could attract more capital into the industry.

• Solana's development has been particularly noteworthy, with major companies like Shopify and Visa building products and payment systems on the platform. Chainlink has seen collaborations, such as a project with Vodafone earlier this year. Cronos is eyeing participation in this development surge, having unveiled a $100 million accelerator program in September.

Crypto Hype Cycle Revival:

• The crypto hype cycle, which quieted down in recent years, seems to be making a comeback. This virtuous cycle of increasing values attracting more attention is evident. While it's unclear how long this trend will last, bringing more investors and economic activity to the blockchain can only benefit valuations.

Key Considerations:

• The recent market movements are fueled by volatility and hype, suggesting potential challenges if the market sentiment turns bearish.

• Looking ahead, regulatory clarity on issues like the approval of ETFs and clear rules from the Securities and Exchange Commission or U.S. Congress for blockchain trading and development is crucial for sustained growth.

• Solana and Chainlink are recognized as leaders in utility blockchains. Their potential success hinges on wider adoption by companies.

Feel as though the “train has left the station” and you missed out on these altcoin gains? Fear not! We believe there are ample gains yet to come and we continue to dollar cost average into proven projects such as these with utility. Of course, this is not financial advice, do your own research, and never invest more than you are prepared to lose.

Bitcoin’s Impressive Price Surge

Will Lady BTC continue her pump through November?

Source: CryptoPotato

Market Dominance Surges:

• Bitcoin's rally in November has pushed its market cap to a staggering 55% of the global silver market cap.

• The overall crypto market cap has now surpassed the total value of all silver worldwide.

Bitcoin's Impressive Performance:

• After a 4.7% rally in a single week, Bitcoin is holding strong at the $37,200 level.

• With a remarkable 38% increase over the last six months, Bitcoin is trading 123% higher year-to-date, starting from an average exchange price of $16,600 on January 1.

Market Cap Milestones:

• Bitcoin's market cap has exceeded $725 billion, representing 55% of the value of the entire global silver market at current spot prices.

• The total crypto market cap, surpassing $1.47 trillion, now outpaces the estimated global silver market cap of $1.255 trillion.

Key Drivers for Bitcoin's Surge:

1. Bitcoin's Deflationary Nature:

   • Bitcoin operates as a deflationary currency, with a fixed rate of deflation set since its inception.

   • Historical patterns suggest that previous halving events have led to extended bull markets, potentially propelling Bitcoin's market cap to surpass silver.

2. Potential SEC Approval for a Spot Bitcoin ETF:

   • Markets anticipate approval of one or more spot Bitcoin ETF applications by the SEC.

   • Recent court decisions make approval increasingly likely, with expectations from BlackRock and Bloomberg ETF analysts pointing towards an approval by January 2024.

3. Institutional Interest Soaring:

   • Institutions are showing unprecedented interest in Bitcoin, significantly increasing their holdings.

   • Analysts predicted institutional adoption could drive Bitcoin to $400,000, and recent data indicates a resurgence in futures open interest, exceeding $20 billion in November for Bitcoin and Ethereum.

Institutional Inflows:

• According to FalconX research using CoinMetrics data, Bitcoin has experienced six consecutive weeks of inflows.

While history may not always repeat, it often rhymes. Here at the Token Mindset team, we believe the crypto market is exactly where it should be when comparing it to previous bull markets marked by the BTC halving. Are we heading to the moon once again?!

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers Within the Top 100

Celestia (TIA), Coin #71, 123.7%, $5.21

NEO (NEO), Coin #60, -6.9%, $12.78

Crypto Meme Corner

Source: Google Images

Thanks for tuning in! It is truly exciting to see the Token Mindset community grow as interest and curiosity in the crypto space increases. We will be back next week to bring you more crypto news! Thanks for reading and have a great week!

Stay educated.

-The Token Mindset Team

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