Records are Breaking in 2021
For Nerds, we like DATA. An endless amount of data that can then be analyzed in a thousand different ways. We look at what we call Metrics and then try to apply logic to those metrics as a way to form an opinion about something. In some circumstances, the results are purely speculative in nature but in others, they are simply hard facts that are supported by real data. An analyst can then add an Opinion to that data as he tries to make sense of it and other times the data simply speaks for itself, with no explanation needed.
The Team over at Chainalysis has recently published a report using a metric that watches Bitcoin Wallets that hold over 1000 Bitcoins. These wallets have a minimum value – at the time of writing – of about $60M. So yes, we can say these are Bitcoin Whales.
In the week of October 25th, these whales have added 185K Bitcoins into their holdings. That works out to be about $11B worth of Bitcoin spread amongst all of these whales that are holding a minimum of 1000 BTC per wallet address. This addition brings the total holdings to the highest level in all of 2021 so far.
The Game is Changing
Inflation is a thing. It has been for a very long time. It’s like a human getting old. If you see them every single day then you barely notice the subtle changes in their skin or their wrinkles. Maybe you miss the first few grays on their hair or the weathering around their eyes but if you haven’t seen that person in 40 years – you will absolutely notice a change.
Inflation is a creeper the majority of the time. There are a handful of times when it slaps you in the face and the world reacts but by in large it slowly devalues your dollar, just a fraction of a penny at a time. There are some events that propel inflation and then there is a period called hyperinflation – this is a disaster.
Big Time Investors are always on the lookout for signs of a big inflation squeeze – something that will bring the market and the economy to its knees. They do this because they want to shift their assets from High Risk/Risk to Low Risk/Minimal Risk. The go-to asset for the last several decades has always been GOLD. As the market tanks, GOLD rises because every investor is stuck buying the same asset. When things finally calm down, investors will start selling their GOLD and start accumulating value assets.
But the Game is Changing
There is a new Store of Value in town and we are seeing it getting swept up by the Billionaires and Millionaires of the world. BITCOIN is finally available to most of these investors. This is a change from every other time in history when the market was on the verge of crashing or inflation was a topic heard around the dinner table in every house in America.
What's Hot in the AltCoin World?
There is a lot going on in the AltCoin world and we have mentioned SOL and DOT before but we are adding IOTX today as there is some interesting action going on the chart.
MANA and SAND continue to consolidate after their big runs last week, we continue to watch them and their activities. AVAX was in the spotlight last night after breaking its recent ATH. You can read about that HERE.
SOL: Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.
SOL is printing new ATHs day after day at the moment. The resistance level at $243 is holding so far. If the buyers are able to overcome that level then we look to $277 as the next take profit area for traders.
DOT: Polkadot is an open-source sharding multichain protocol that facilitates the cross-chain transfer of any data or asset types, not just tokens, thereby making a wide range of blockchains interoperable with each other.
DOT has a long way to go for its first major resistance area at $74 after it too broke its recent ATH just 4 days ago. We are closely watching this local upper trendline to see if it continues to hold the buyers back. If that is the case then we look back to the $44-$48 area for a possible reload.
IOTX: Starting as an open-source project in 2017, IoTeX has built a decentralized platform whose aim is to empower the open economics for machines — an open ecosystem where people and machines can interact with guaranteed trust, free will, and under properly designed economic incentives.
IOTX has had two monster moves in the last 3 months. The first one, unfortunately, gave 68% back and then consolidated for quite some time. The second one just happened yesterday and continued into last night and this morning. This becomes a wait-and-see moment. If IOTX can get through the resistance then there is a lot of room for it to go. Brand new ATH today sits at $0.185.
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