Charting the Course of Crypto for November

16 Nov, 2021
Charting the Course of Crypto for November

Short-Term Triangle Consolidation. Wave Theory. The Japanese Candlestick Shooting Star Pattern. Crypto traders love their charts. And when the market swings as it did this past week, analysis was everywhere.  The question is, was this a pivotal moment for digital currencies and a sign that the bull market was subsiding?  Or was it just another week of ups and downs in the crypto world?

Will Bitcoin’s Taproot Upgrade Send the Coin to the Moon?

Traders are waiting with much anticipation to see whether or not Bitcoin’s impending upgrade will push the world’s first cryptocurrency to new highs.  The upgrade is expected to improve scalability, privacy, and the ability to execute “smart contracts” (contacts which do not require people to execute).  Smart contracts are key to the development of DeFi or Decentralized Finance applications and non-fungible tokens (NFTs).  Ethereum’s network already execute smart contracts, which has made it one of the most utilized blockchains.

If Bitcoin can capitalize on the smart contract market, it could take market share from Ether (ETH), and Solana (SOL), leaders in the DeFi space.

“We expect this upgrade to unleash a new wave of innovation in bitcoin focused mainly on smart contracts.” Katherine Dowling, general counsel and chief compliance officer at Bitwise Asset Management told CNBC.

Others are more skeptical and believe that the Taproot upgrade has already been baked into BTCs price.  The answer?  Remains to be seen.

SEC Rejects First US Spot Bitcoin ETF

Well, it was a good try, but the SEC rejected on Friday the VanEck Bitcoin Trust (BZX) proposal. The ruling came as no surprise to many who have been following SEC Chair Gary Gensler’s comments and actions related to crypto.  Two Bitcoin ETFs that offer portfolios of crypto-related businesses went live in November, which gave the market hope that a spot fund would soon follow.  However, when it came to a direct Bitcoin fund, the SEC drew a line by refusing a rule change that would allow the fund to operate.

“The Commission again emphasizes that its disapproval of this proposed rule change does not rest on an evaluation of whether bitcoin, or blockchain technology more generally, has utility… or value as an innovation or an investment,” the ruling said.  “Rather, the Commission is disapproving this proposed rule change because, as discussed below, BZX has not met its burden to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5). in particular, the requirement that the rules of a national securities exchange be “designed to prevent fraudulent and manipulative acts and practices” and “to protect investors and the public interest.”

Translation:  they’re not ready to open the floodgates for crypto spot traded funds.

BTW, Not Everyone Thinks ETFs are a Good Thing

In a Twitter post titled “Say No to ETFs,” trader Peter L Brandt told his more than 580,000 followers that funds aren’t necessarily in the best interest of the crypto universe. “IMO, Bitcoin maximalists should oppose spot $BTC ETFs in the U.S. Bitcoin’s store of value story depends on its scarcity and even some difficulty to purchase. Let’s not encourage greedy grub-hungry Wall Street to convert BTC into a vending machine asset. Say NO to ETFS.”

Makes you think, doesn’t it?

Popcorn Isn’t the Only Thing Popping Up in Movie Theatres

Every week now it seems another mainstream business sees the crypto light. AMC, the largest theater chain in the U.S. was the next to jump on the digital currency bandwagon, as it announced this week that it would accept not one, but four coins for payment.

“Big newsflash! As promised, many new ways NOW to pay online at AMC.  We proudly now accept: drumroll, please… Bitcoin, Ethereum, Bitcoin Cash, Litecoin. Also Apple Pay, Google Pay, PayPal. Incredibly, they already account for 14% of our total online transactions! Dogecoin next,” tweeted Adam Aron, the chain’s CEO.

And finally, will the Real Satoshi Nakamoto Please Stand Up?

The Wall Street Journal is one of the most trusted news organizations worldwide for financial news. That’s why this Saturday story makes you go hmmmm.  The headline: “Bitcoin Creator Satoshi Nakamoto Could Be Unmasked at Florida Trial.” So, they pulled you in, right?  But the story goes on to say that the lawsuit is about the estate of a man who claimed he and a partner created Bitcoin under the Nakamoto pseudonym.

Skeptics abound. Traders say:  show me the key.

“For bitcoiners, there is only one piece of evidence that could conclusively prove the identity of Satoshi Nakamoto: the private key that controls the account where Nakamoto stored the one million bitcoins,” the article states. “Anyone claiming to be Satoshi Nakamoto could show that he or she has them by moving even a fraction of a coin out of it.”

Let’s watch for that one.

Joyce Pavia Hanson