First engine: Bitcoin is stable at $ 13K while JPMorgan has Eureka! Moment


Bitcoin was higher, appearing above $ 13,000 for the first time since January 2018.

But the most dramatic in the crypto markets came after an exploit of the Harvest Finance decentralized finance protocol caused the platform’s native FARM token to plummet by 65% ​​in less than an hour.

In traditional markets, European equities slipped as Spain declared a COVID-19 state of emergency and Italians were urged to stay home. US stock futures have indicated a bearish opening on signs of a coronavirus recovery and mitigate hopes for a large stimulus package ahead of the election. Gold had changed little.

The market moves

Bitcoin bulls are used to criticism. The largest cryptocurrency has been criticized in recent years as a “fraud” for having “virtually no value” and for not being classified as an “adequate investment”.

Now, as bitcoin is ramping up what may be its longest-lasting rally in nearly three years, the bulls may have to get used to a new sensation: revenge.

Analysts at JPMorgan, the largest US bank, wrote in a report Friday that bitcoin has a “sizable” long-term price hike, as reported by CoinDesk’s Zack Voell.

The growing use of Bitcoin as an alternative to gold is amplified by millennials’ interest in cryptocurrency, according to the report, written by JPMorgan’s global quantitative strategy and derivatives team.

“Even a modest crowding of gold as a long-term alternative currency would mean doubling or triple the price of bitcoin from here,” analysts wrote.

Such accolades from the largest of the large US banks represent a significant milestone for a digital asset launched in early 2009 with the specific goal of eliminating intermediaries in payment systems.

And it’s pretty hard to resist pulling out JPMorgan CEO Jamie Dimon’s memorable remark in 2017 that bitcoin was a “fraud”.

“If you are stupid enough to buy it, one day you will pay the price,” Dimon said at the time.

Lately, that price continues to rise, encouraged by the growing belief among many cryptocurrency investors that bitcoin could serve as a hedge against trillions of dollars worth of central bank money printing.

Bitcoin was up 82% in 2020 and has doubled in value since Dimon made the disparaging remark in October 2017. Those who bought the cryptocurrency look smart compared to JPMorgan’s shareholders, whose shares plummeted 26% in 2020, leaving the stock price more or less where it was three years ago.


The price of Bitcoin since the beginning of 2019 compared to JPMorgan.
Source: TradingView

Bitcoin clock


Bitcoin daily price chart.
Source: TradingView

Bitcoin’s technical charts show signs of temporary bull fatigue.

The cryptocurrency created a rotating candle on Sunday, which occurs when an asset sees two-way price action during a specific period. It is widely considered to be a sign of indecision in the market, especially when it appears following a notable rally, as is the case here.

The candle validates the signals of another technical indicator, the 14-day Relative Strength Index, where its reading of over 70 suggests that the market is overbought. Immediate support is seen at $ 12,500 (horizontal line on the daily chart).

The dips could be short-lived, as the long-term bullish case of the cryptocurrency was reinforced by the recent decision by online payment giant PayPal to announce support for bitcoin.

Additionally, several major public companies have recently disclosed their bitcoin holdings, providing a strong vote of confidence in the future of the cryptocurrency.

Furthermore, the recent rally from $ 10,000 to $ 13,300 is supported by increased build-up by big investors and looks sustainable.

As of Sunday, the whale population – groups of addresses held by a single network participant that holds at least 1,000 BTC – has risen to 1,939, the highest since September 2016, according to data source Glassnode.

Read more: Bitcoin addresses active at most since 2017’s $ 20K price record

What’s new

An attack on the decentralized finance protocol (DeFi) Harvest Finance sent the platform’s native token, FARM, plummeting 65% in less than an hour (CoinDesk)

Swiss central bank, testing of the Bank for International Settlements plan of the central bank’s digital currency by the end of the year (The Block)

Lawyer files motion to dismiss U.S. government allegations that Ethereum developer Virgil Griffith violated sanctions law by speaking at North Korean cryptocurrency (CoinDesk) conference

Chinese Bill Prohibits All Yuan-pegged Tokens Except Central Bank’s Own Digital Currency (CoinDesk)


The latest news on traditional economics and finance

Central banks collect € 17 billion ($ 20 billion) of joint bonds issued by the European Commission to fund coronavirus relief programs (WSJ)

Morgan Stanley’s chief US equity strategist says he’ll buy the drop if the S&P 500 falls after the election, as economic stimulus is almost certain regardless of victory (Bloomberg)

Coronavirus-induced selling in March came with record bid-ask spreads on U.S. Treasuries, showing liquidity limits in the world’s deepest bond market (Reuters)

Mission creep ?: European Central Bank President Christine Lagarde pushes organization beyond traditional monetary policy concerns like global warming and gender imbalance (Reuters)

Ripple’s Brad Garlinghouse says tech companies have an obligation to help solve social problems, rejecting the “apolitical” stance taken by Coinbase’s Brian Armstrong (CNBC)

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