Daily Market Update - December 11, 2020- XRP is "Toxic Waste" Messari, Grayscale Buys More BTC, ETH

While the positive headlines continued to roll with all the newbies joining the fray and old-hats piling in more, the crypto markets themselves took a breather after the gallant effort to crack the $20K nut came up short. $BTC peeled off the upper Bollinger band and is looking to test the lower band at $17,213 which happens to coincide with the first dead cat bounce off the highs we enjoyed at the end of 2017. We can suspect further downside if it breaches this level, but with the overwhelming demand well eclipsing the supply and momentum indicators off their oversold levels, see risk to the upside. Having said that, futures’ curves across many of the trading venues imply a lack of consensus with some citing uptick of inflows into exchanges being a harbinger of a correction. But, it simply is not true with 43K $BTC exiting the building.

BTC to USD, fell by 1.61% on Thursday. Reversing a 1.25% gain from Wednesday, Bitcoin ended the day at $18,260.0.

It was a mixed start to the day. Bitcoin rose to an early morning intraday high $18,568.0 before hitting reverse.

Falling short of the first major resistance level at $18,878, Bitcoin fell to a mid-afternoon intraday low $17,935.0.

The reversal saw Bitcoin fall through the first major support level at $17,990 before a brief revisit to $18,300 levels late in the day.

The near-term bullish trend remained intact, in spite of the latest pullback to sub-$18,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $10,095 to form a near-term bearish trend.

Alts and DeFi watch:

  • $ETH down 6.52% almost erasing all gains from the bounce.

  • $SUSHI down 14% from peak of bounce.

  • $AAVE made new lows at $71, down 16.4% from the previous day. It looks like $BTC provided a reality check with this push down.

  • $XMR looks to be one of the few alts that have conserved their structure while the rest have broken lows.

News that caught our eye:

  • Goldman Sachs is diving into blockchain by using JP Morgan's JPM Coin and custom blockchain service for repo trades

  • The rumor is no more, DBS officially stepped into the digital asset space, announcing it will go-live with an institutional focused exchange next week

XRP is ‘Toxic Waste,’ New Messari Report Says

Messari CEO Ryan Selkis has caused controversy after describing XRP and Stellar as "toxic waste" — claiming the altcoins "go against everything that got me into crypto." He also called Bitcoin Cash "a pile of s***" and said the cryptocurrency "now means nothing." Selkis says his remarks were meant to be humorous to keep people engaged in his 134-page report looking ahead to 2021. But as our story explains, not everyone was impressed.

Crypto Founder Charged ‘After Spending $10M on Yachts’

A 28-year-old man who founded the Oyster Pearl cryptocurrency has been charged with tax evasion. Amir Bruno Elmaani is accused of spending $10 million on yachts and $700,000 in home improvement stores despite telling the taxman he only earned $15,000 in 2018. Elmaani — also known as "Bruno Block" — faces up to 10 years in prison if convicted. Find out more about the allegations on CoinMarketCap.

France Clamps Down on Anonymous Crypto Transactions

France has unveiled tough new measures to stop anonymous crypto transactions. The regulations come after a criminal network was dismantled in September, with 29 people arrested on suspicion of sending crypto to Islamists in Syria. Finance minister Bruno Le Maire said digital assets present "significant opportunities" for the economy, but must be regulated. Read the full story here.

‘Not Long’ to Buy Bitcoin Before Bull Run Continues

A report by Stack Funds says crypto enthusiasts are running out of time to accumulate Bitcoin before the bull run continues beyond $20,000. The Asian crypto fund says one metric is showing signs of repeating its performance in 2017 — the year when Bitcoin surged from $1,000 to $19,866. Despite this, BTC has been struggling to overcome resistance at $19,400. Read more.

Another Week, Another Grayscale Spending Spree

Grayscale has snapped up an additional 14,591 BTC and 105,000 ETH— a crypto haul that costs approximately $325 million at current market rates. The company now has a staggering $12.1 billion under management, with about 80% of this in Bitcoin. Grayscale’s trusts have experienced high levels of demand from institutional investors this year. Read more.

169-Year-Old MassMutual Invests $100 Million in Bitcoin

(Bloomberg) -- Massachusetts Mutual Life Insurance Co. has purchased $100 million in Bitcoin for its general investment fund, the latest mainstream firm to dabble in digit assets. The mutual insurer also acquired a $5 million minority equity stake in NYDIG, a subsidiary of Stone Ridge that provides cryptocurrency services to institutions, according to a statement. NYDIG, which already keeps more than $2.3 billion in crypto assets for clients, will provide custody services for MassMutual’s Bitcoins.

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