First Mover: Ether Eyed as Value Play with Bitcoin Pressing $ 20K

Bitcoin was climbing towards the all-time high price of $ 19,920 dented earlier this week.

“So far, prices remain limited, either with sellers unwilling to part with their coins at a lower price or with buyers unwilling to take further bets on a rally,” Matt Blom, head of sales and trading at cryptocurrency-centric financial firm Diginex wrote Thursday.

In traditional markets, European equities tumbled and U.S. stock futures indicated a lower open after coronavirus-related deaths in the country rose to at least 2,760 Wednesday, the deadliest day since the pandemic began. Gold strengthened 0.4% to $ 1,838 an ounce.

Those unfamiliar with cryptocurrencies, such as institutional investors who recently bought into bitcoin’s digital gold narrative, may now be looking around for the next big thing.

With the long-awaited arrival of the Ethereum 2.0 update on December 1st, that could be the network’s native token, the ether. But analysts say the ether should be judged on its merits and not as a substitute for bitcoin.

“I’ve always thought this digital asset space is huge – and it’s not just bitcoin – because there will be different applications for different things,” said Raoul Pal, CEO and co-founder of financial media group Real Vision, in Real Il. Vision documentary “Ethereum – An Investigation”, released on November 30th. “I think of the two [bitcoin and ether] like having a very good combined asset allocation. “

For Pal, an early bitcoin investor, the logic seems even more plausible these days: as the price of bitcoin reaches a new all-time high, the number one cryptocurrency by market cap is now more expensive and therefore potentially a riskier bet. for new investors.

Investors can be expected to be looking for a new opportunity in affordable cryptography. As ether is trading around 59% below its all-time high of $ 1,432.88, it is tempting to believe there is a bargain to be made. Furthermore, the Ethereum 2.0 update to increase network scalability, security and energy efficiency has generated a lot of hype.

However, at least for now, analysts and traders who have spoken with CoinDesk do not think that the ether will replace the FOMO on bitcoin.

“For institutional investors, they are buying BTC for the digital gold narrative,” Messari senior research analyst Ryan Watkins told CoinDesk. “ETH isn’t in that conversation yet.”

Read more: Why Ethereum and Bitcoin are very different investments

Bitcoin has been stuck in the $ 18,000 to $ 20,000 range since Tuesday, having nearly doubled to a record price of $ 19,920 in the past eight weeks.

According to Patrick Heusser, a senior cryptocurrency trader at Crypto Broker AG, based in Zurich, large sell orders close to $ 20,000 and steadily decreasing demand have led to price consolidation. “If either side breaks down, I think we would see fireworks, especially on the upside.”

Macro factors indicate a continued bull run. The 10-year break-even inflation rate in the United States, which represents how the market predicts long-term inflation, rose to 1.85% on Wednesday. This is the highest level since May 2019. The Dollar Index, which tracks the value of the greenback against major currencies, is close to 91.00 at press time, a level last seen in April 2018 , according to TradingView.

Falling USD and rising inflation expectations typically force both institutions and retail investors to buy traditional assets such as gold. This year, institutions have invested more and more money in bitcoin, strengthening its use as a hedge against inflation. The trend could continue, with Morgan Stanley expecting a further 10% decline in the dollar over the next 12 months.

A breakout, if confirmed, would shift focus to $ 20,300, where sizable open interest in the options market appears to be building. Alternatively, acceptance of less than $ 18,000 would expose the November 27 low of $ 16,218.

Read more: US dollar worsening, inflation metrics bode well for Bitcoin’s continued rally

USD currency (USDC): Visa can issue a USDC credit card after adding Circle to the “fast track” program.

XRP (XRP): Brad Garlinghouse, CEO of Ripple, a provider of an XRP-based payment network, responds to the threat to leave the United States

Ampleforth (AMPL): launch of stablecoins with rebalancing of the offer on the Tron, Pokadot and NEAR blockchains.

US lawmakers introduce bll which would require stablecoin issuers to obtain bank cards (CoinDesk)

Grayscale Ethereum Trust Announces 9-for-1 Stock Split, a Move That Could Increase the Perceived Accessibility of Shares (CoinDesk) (Editor’s Note: Grayscale is a unit of Digital Currency Group, owner of CoinDesk)

4 charts showing why bitcoin is an alternative risk asset, according to Damanick Dantes (CoinDesk Opinion)

US President-elect Joe Biden calls the $ 908 billion stimulus proposal “at best just a down payment” (Bloomberg)

Federal Reserve Bond Buying Outlook Helps Keep 10-Year US Treasury Yields Under Control (WSJ)

Dollar slides to new 2.5-year low as US stimulus talks resume (Reuters)

Congress sets the stage for the exile of Chinese stocks from the US over audit controversy (WSJ)

CFOs are confident that Biden will not be able to raise corporate tax rate to 28%, according to CNBC (CNBC) survey

Boston Branch of the Federal Reserve Says Regional Business Executives Estimate Daytime Office Occupancy Rates at Around 20% (Reuters)

U.S. private payrolls lose expectations in November due to the spread of coronavirus infections, according to ADP, up 307,000 versus an estimated 410,000 and 404,000 the previous month (Reuters)

Judy Shelton, longtime advocate for the return to the gold standard, appears not to have sufficient support to advance in the appointment as governor of the Federal Reserve (WSJ)

Gasoline-powered cars could be a thing of the past in Japan as the island nation plans to ban them outright by 2030 (Nikkei Asia Review)

US private equity firm Blackstone Group has purchased over $ 1 billion in real estate in Japanese urban areas (Nikkei Asia Review)