Bitcoin has rewritten the historical maximum above $ 68,500, Ethereum is on the verge of $ 4850, and the total capitalization of the cryptocurrency market on the eve exceeded $ 3 trillion. Despite the involvement of medium–term holders in spending, which led to a slowdown to zero in the process of their accumulation of coins, the balances of exchange wallets dropped to a new multi-year low of 12.9% of the total supply (according to Glassnode) – a sign of steady demand absorbing supply. At the same time, whales with 10,000 to 100,000 BTC at their disposal have accumulated 43,000 BTC over the past five days! You can’t compete with these guys.
Everything is also fine in Ethereum – EIP-1559 works and helps to limit the number of available coins, expectations of ETF approval in the US at the beginning of 2022 remain, DeFi-space metrics are breaking records, and there is enough room for growth for its competitors – Fanto, Avalanche, Solana and Terra.
On Sunday, November 14, Taproot with Schnorr signatures will be activated on the bitcoin network, which will enhance the scalability, privacy and functionality of smart contracts of the first cryptocurrency.
On Wednesday, November 11, the first of a series of blockchain auctions will be held in Polkadot
On the same day, the US will publish a report on consumer prices, which may become an additional driver for the growth of bitcoin and cryptocurrencies. It is expected to accelerate from a 13-year high from 5.4% to 5.7%, which may further spur the growth of inflation expectations in the context of the Fed’s focus not to raise the key rate in 2022. The latter follows from the economic forecasts of the open market Operations Committee and the lack of specifics in this regard in the speeches of Fed Chairman Jerome Powell.
By November 14, the deadline for the SEC to consider an application to launch a spot bitcoin ETF from VanEck will also expire. In October, the regulator postponed the decision on four similar applications, but this time it will no longer have such an opportunity. The chances of VanEck’s proposal being approved are slim, but the example of BlockFi is indicative, which the day before filed an application to launch a spot ETF, and on the basis of the Securities Act of 1933. Adventurism or sober calculation? The expert community is waiting for the approval of an ETF based on Ethereum futures first. But the behavior of management companies makes it possible not to exclude that an ETF based on “physical” bitcoins will still get the green light in 2022. How much will Bitcoin cost then? Obviously, the quotes will already be six-digit.