Daily Market Update - December 8, 2020- MicroStrategy Bets Big on BTC! Wells Fargo Bullish?

Total Market Cap $557.2 BN (-2.31%)

24 Hour Volume $129.2 BN (+21.20%)

Notable Movers Blockstack (STX) (+27.71%)

Bitcoin Dominance 62.8% (+0.48%)

Market cap dropped by $8B (or 1.44%) to $561B as we experienced a slight correction in the market. Seeing all top 10 alts in the red to start the day

  • $BTC dominance remains the same at 62.6%, currently trading above $19,000 for the third day with Bollinger bands tightening up with the past few days trading within 560 range bound. Staying stagnant as alts made a run yesterday.

  • $BTC volumes at $26B, down from its $40B during the run up around $19,500+

  • $ETH drops -1.7% down to $590 levels as it trades range bound between 23 USD from $584 to $606. Unable to break through next resistance at $622. Week to date down 4.27% but up 22% over the month

On Monday, a unit of Wells Fargo, the giant (and, at least for the past several years, beleaguered) U.S. bank, published a seven-page report devoting a full page to bitcoin.

“Cryptocurrency investing is a bit like living in the early days of the 1850s gold rush,” according to the report from the Wells Fargo Investment Institute. “As we roll into 2021, we’ll be discussing the digital-asset space more – its upside and downside.”

That’s an explicit indication that even more attention is coming the way of cryptocurrencies, not less, as the calendar year rolls over.

But it turns out that bitcoin itself isn’t moving particularly quickly, at least by the historical standards of the underlying blockchain network. And that might be a bullish indicator.

Alts and DeFi watch:

  • $BCH dropped 0.37% to $285, down nearly 10% over the week since the pump resulting from its hard fork

  • $XRP trading at 0.60 levels, dropping 5.8% over the past seven days

  • Defi TVL increased to $14.93B, reaching its ATH, Compound ($COMP) seeing the largest movement with a jump of 14% to 155.60.

  • $YFI down to $28,190 levels, remains up 7% over the past week

  • $AAVE up 1.1% to 90’s, around $4 away from its ATH from yesterday.

News that caught our eye:

  • Spain’s BBVA, with $840B in assets, looks to enter the digital asset and custody business with an offering out of Switzerland.

  • MicroStrategy is not done investing in Bitcoin, announcing its intent to fundraise another $400m to purchase $BTC via convertible notes. Only “qualified institutional buyers” will be permitted to buy the interest-bearing notes, which mature in five years. MicroStrategy can convert the notes into cash, class A shares or a combination of the two starting in December 2023.

  • Frank Holmes, CEO of U.S. Global Advisors expects digital assets such as Bitcoin (BTC) and Ethereum (ETH) to perform exceptionally well alongside gold. He believes that these digital assets are enjoying higher adoption because of their underlying value drivers.Regarding Bitcoin, Holmes felt that more people are embracing the digital asset in a continuation of a multi-year trend.

  • Erik Voorhees, CEO and founder of ShapeShift. io believes institutions will protect bitcoin from government overreach

MicroStrategy Wants to Buy EVEN MORE Bitcoin

It’s a company that already owns 40,824 BTC — worth $770 million at current market rates. But now, MicroStrategy has unveiled plans to buy another $400 million of Bitcoin. The firm is aiming to raise the cash through convertible senior notes that will pay investors interest twice a year. It seems MicroStrategy is betting big on BTC rising further — find out why this news matters here.

Libra’s Rebrand May Result in Legal Action

Facebook was hoping that changing Libra’s name to Diem would be a fresh start for the company. Unfortunately, the headaches keep coming. A small fintech company in London has said it may sue the controversial stablecoin project… because it’s called Diem too. Find out why the start-up is worried about Facebook’s name change here.

‘Give Us the Benefit of the Doubt,’ Facebook Says

There’s signs that central banks are still against Facebook’s plans to launch a stablecoin. Now, the head of Facebook Financial has insisted that the company deserves "the benefit of the doubt" from regulators. David Marcus stressed that Diem has good intentions, and that it’s hoped the embattled digital asset will launch some time in 2021. Read more

Gemini Warns Users About Fake YouTube Accounts

The Gemini crypto exchange has revealed that two accounts on YouTube have been taken over by a hacker — and changed to make it seem they were official profiles linked to the company. On Twitter, the Winklevoss-owned platform confirmed the accounts have been reported. But as our piece reveals, this isn’t the first time that crypto scams have landed YouTube in trouble.

Square Backs Eco-Friendly Bitcoin Mining

We’ve known for a long time that Bitcoin is incredibly energy intensive. Now, Square has announced it is putting $10 million into a new Bitcoin Clean Energy Investment Initiative. The program will support companies working on eco-friendly mining equipment. Square has also revealed that it plans to become net zero carbon for operations by 2030. Read more

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