☕ Bitcoin Hits One-Year Highs 🚀 😲
🔨 Bitcoin broke the $37,000 ceiling, is it headed for the moon? 🌖
It’s been feeling like Crypto Spring for a while now. The birds are chirping, the Altcoins are blooming, and the crypto market is healing.
Yeah, we were both hoping and expecting some serious growth in the sector, but nothing this big, or this fast.
On the morning of November 9, Bitcoin shot up like a beanstalk grown from some magical seeds offered by a shifty, roadside merchant.
And now, all of crypto’s going to climb this thing into the clouds.
☕️ BlackRock Registers Ethereum Trust
BlackRock has registered an iShares Ethereum trust in Delaware, causing some to believe that this may be the first indicator that the firm will also pursue an Ethereum ETF.
BlackRock has officially declined to comment on the new registration.
This doesn’t explicitly mean that BlackRock will apply for an Ethereum ETF, but it should be noted that BlackRock registered a Bitcoin trust a week before it applied for a Bitcoin ETF.
Companies are often drawn to Delaware for the tax breaks. In fact, more than 60% of Fortune 500 companies are incorporated there.
But for the state of Delaware, this is the biggest piece of publicity in decades that hasn’t involved Joe Biden or trains.
☕️ Jump Crypto Under Investigation
Jump Crypto, the Chicago-based division of the Jump Trading Group, is currently under investigation by the SEC for an alleged agreement with Do-Kwon and Terra Labs.
The agreement involved Jump purchasing up massive amounts of LUNA in an attempt to re-peg LUNA to the U.S. dollar.
The SEC’s lawyers deposed Jump Crypto’s president, Kanav Kariya, who maintained silence by pleading the 5th in court.
In a deposition with the SEC, Kanav Kariya from Jump Crypto was directly asked, under oath, whether Jump promised to bail out Do Kwon and restore the UST peg in exchange for a LUNA bribe.
He pled the fifth.
— FatMan (@FatManTerra)
Nov 8, 2023
Looks bad, but let’s just hope the investigators don’t jump to any conclusions.
☕️ Emmer Steps Up to the SEC
Tom Emmer, GOP Majority Whip and Representative from Minnesota, once again spoke out against Gary Gensler and the SEC during a Congressional session.
During the session, Emmer gave remarks on his amendment to the Financial Services and General Government Appropriations Act, an amendment that would prevent the SEC from using funds for enforcement actions against digital assets until Congress passes legislation giving the SEC explicit jurisdiction over digital assets.
Emmer’s bipartisan amendment passed through the House with no opposition.
“Regulation by enforcement is a practice all too common with this administration,” Emmer read from his prepared statement. “This is particularly the case at the SEC and Chair Gary Gensler’s approach towards our capital markets and financial services industry, but especially with our emerging digital assets community. My amendment seeks to put an end to Chair Gensler’s pattern of regulatory abuse, a pattern that is crushing American innovation and capital formation, without undermining our ability to go after criminals and fraudsters.”
.@GaryGensler is as ineffective as he is incompetent. Fortunately, my nonpartisan appropriations amendment to reign in SEC enforcement abuses against the digital asset industry passed the House today with no opposition.
Congress will hold unelected bureaucrats accountable.
— Tom Emmer (@GOPMajorityWhip)
Nov 8, 2023
Gensler will have to steer clear of basketball courts for the foreseeable future because it seems like everybody is ready to dunk on him.
JUST IN: $ETH $2,000
— CoinGecko (@coingecko)
Nov 9, 2023
ETH broke $2k, and Bitcoin is testing new resistance. How are you balancing your crypto portfolio right now?
Spilling the Beans
Bitcoin Hits One-Year Highs 🚀 😲
Surprises can be a mixed bag.
Sure, there are some good surprises like a surprise party or sunshine when you expect rain.
But sometimes it feels like surprises are mostly a bad thing. That surprise quiz in school, or worse, a test.
And those surprise tests only get worse as you get older, like surprise drug tests or surprise paternity tests.
But today, we’ve got one of the former and less of the latter.
That’s right, on Thursday morning, we all woke up to a beautiful, wonderful surprise.
Bitcoin had passed the $37,000 price point on November 9, Bitcoin’s highest level in 18 months.
Yeah, Bitcoin snuck up on us. All of our eyes were glued to the results of the Bankman-Fried trial. If not that, we had our heads in the dust and our ears on the ground, straining to listen for any sign of movement on the Bitcoin spot ETF applications.
And then when we weren’t looking, Bitcoin went ahead and popped up past $37,000.
But that brief rally prompted a four-hour short squeeze during which $50 million in Bitcoin shorts were liquidated.
It seems a sure sign of more good things to come, but many traders are left wondering what to do next.
On one level, they’re optimistic. Some resistance to Bitcoin’s gains should certainly be expected.
There’s not only the resistance barrier that occurs when Bitcoin hits a certain level of market dominance, there’s also resistance at higher price points.
As of writing, Bitcoin occupies 51.98% of the total crypto market. Initial projections had a resistance barrier set at 58%, but current Fibonacci indicators have adjusted that expected resistance barrier to around 60.17%.
#FireCharts shows #BTC support and a significant block of resistance moving upward in the order book.
Support is anchored by new plunge protection at $33k. Meanwhile resistance at $40k has moved up to the $42k range.
There is no denying the fact that price has been challenging… twitter.com/i/web/status/1…
— Material Indicators (@MI_Algos)
Nov 9, 2023
And yes, the expected price resistance has been adjusted from the $40,000 point to $42,000.
However, as Material Indicators’ post states, it’s puzzling that Bitcoin’s price continues to rise while trading volume declines.
But in a refreshing change of pace, we’re having a hard time feeling anxious.
There are just too many macro factors to propel Bitcoin’s rise. There are the Bitcoin spot ETF applications, the rosier-than-expected FTX recovery, global conflict moving investors away from centralized finance, and the free crypto publicity that will come with the next election cycle.
It feels like not long ago we were wondering if Bitcoin could ever break through the $30,000 level again. Now, we’re realistically discussing $40,000.
For Bitcoin, it’s truly starting to feel like the moon’s the limit.
Let’s put those hopes into our own Fibonacci sequence and watch the sums go up and up and up…
Fibonacci Indicators: Fibonacci was an Italian numbers theorist and mathematician, who was famed for inventing, well, the Fibonacci sequence.
According to the sequence, each number is the sum of the two preceding numbers. But this theorem from the Middle Ages has been reapplied to modern finance.
When the Fibonacci sequence is applied to the market, it creates Fibonacci indicators that can predict when an asset will experience resistance or bounce back.
The Last Sip
The Last Sip: Per the investigation into Jump Crypto, yes, we know that the President of the company was communicating with Do-Kwon, but doesn’t this still feel like a bit of a leap?
Coffee & Crypto Team
That's all for today! If this email got you hooked on our unhinged crypto takes, be sure to get a full dose on Twitter @GetCoffeeCrypto.
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