GoldenTree Asset Management, a US asset management giant with $45B in AUM, has reportedly purchased portions of the primary cryptocurrency. The move aims to diversify some of the organization’s already existing strategies.
Founded over two decades ago, GoldenTree is an asset manager headquartered in New York City with offices in numerous other important financial cities such as London, Singapore, Tokyo, and Sydney.
According to a report by The Street, the institution has dipped its toes in the cryptocurrency industry by purchasing an undisclosed amount of bitcoin.
Citing two sources familiar with the matter, the coverage indicated that putting BTC on the balance sheet will work as a diversifier for the “broad mix of debt-focused strategies it has run for years.”
Furthermore, GoldenTree has reportedly had internal discussions to establish a dedicated team responsible for its cryptocurrency investments.
With GoldenTree, the number of large asset managers showing an appetite for bitcoin keeps growing.
The most prominent name has to be BlackRock. The world’s largest asset manager dabbled with BTC through CME and reported gains of $360,000 in April this year.
Stone Ridge, another Wall Street behemoth, filed to add the cryptocurrency to its diversified alternatives funds.
This trend expanded outside of the US as well, with the Israeli company – Altshuler Shaham – buying BTC through the Grayscale Bitcoin Trust.
As Bitcoin (BTC) is coming out of a harsh weekend with a 5% drop and a huge sellout, ether (ETH) still maintains its strength in comparison, which has been happening since October.
Arcane Research’s weekly update shows that the ETHBTC pair reached its highest level since May 2018 reaching 0.085 BTC, seeing possible signals of maturity and an upcoming alt-season.
In 2021, ETH has shown greater strength than bitcoin. The cryptocurrency could be signaling its maturity as it sees higher lows –compared to BTC– than it did in 2017 and 2018.
However, Arcane Research noted that back in 2021 and 2018 the strength of ETH and altcoins’ performances in periods when BTC saw lows also signaled lower prices to come, so a similar scenario could happen during 2021’s fourth quarter.
The current ETHBTC pair peak is similar to the one seen in May, which was followed by May 19th’s crash during massive liquidations and new buyers panic –which some users called the second worse day ever for Ethereum, although similar phenomenons had happened in earlier years–. Then, the ETHBTC pair saw another spike at the beginning of September as Bitcoin saw lows on the 7th.
Furthermore, we could be facing froth in the market as altcoin’s strength has signaled before.
Ether was also down on Saturday but surged to the mentioned 0.086 Bitcoin high during Sunday. The price dropped 5.5% on Monday to $3,965, and overall, it traded down by 0.51% in the past week compared to BTC’s 10.06% decline.
Today, the Ethereum price is up again around $4,352.74, up 2.93% in the day-to-day, surging more than 24% from the low. Even though it’s 9% away from its all-time high, it is also 496% up in comparison to 2021’s early days. ETH also shows a 24-hour trading volume of $23,566,690,676 and a market cap of $512,648,545,331.
Bitcoin Dominance Sees New Lows
Today, Bitcoin’s dominance is 40.65%, seeing no increase over the day. It had fallen towards 40% on December 5th as it saw its newest bloodshed. BTC also saw its dominance drop in September and May, but it has not seen other lows alike since May 2018.
As the crypto market started to fall on Friday –with 372,000 liquidated crypto accounts by Monday totaling $2.3 billion-, Saturday’s early morning saw bitcoin drop $10,000 in price, going from around $57,000 to $47,000.
Over the weekend, the drop reached a $14,000 loss and experts saw no clear reason for it, but since then traders have suggested a connection with the fear around the Omicron variant plus market moves exaggerated by lower trading liquidity.
Compared to its November all-time-high, BTC is down by $21,000, but also up over 75% in all 2021. The price has climbed back up to over $50,000, more than 4% higher, and the total crypto market cap surged 5% to $2.5 trillion.
Some expect a hard end of the year for Bitcoin as it has not shown its regular strength, but at the same CNBC quoted Will Clemente, insights analyst at Blockware Solutions, who thinks these dynamics are “healthy and show supply continues to move to long term investors” and BTC could actually see a new bull run at the start of next year:
There’s a reasonable case that we could see the opposite effect heading into Q1, as funds are willing to take on more risk for the new year with fresh profit and loss, … This effect assisted in bitcoin’s massive move in January 2021.
Bitcoin price finds support against a combination of key price levels.
Ethereum price returns inside the bear flag, creating mixed sentiment.
XRP price is developing an insanely bullish reversal weekly candlestick.
Bitcoin price gets a big bounce off the $44,000 value area, moving more than $7,000 higher. Ethereum is now sandwiched between solid support and strong resistance. XRP price has one of the most potent and sought-after bullish reversal candlesticks forming on its chart: the hammer.
Bitcoin price retraces nearly all of Saturday’s flash-crash
Bitcoin price action has been a strong performer since the recent flash crash. Significant support for Bitcoin was found where the 61.8% Fibonacci retracement and top of the Ichimoku Cloud (Senkou Span A) share the $44,000 price level. The support was strong enough to rally Bitcoin above the 50% Fibonacci retracement at $48,000 and the Kijun-Sen at $49,300.
BTC/USDT Weekly Ichimoku Chart
However, the upside potential may be limited. There is significant resistance within the Ichimoku Kinko Hyo system on the daily chart. The daily Kijun-Sen and Senkou Span B share the $54,000 price range. Longs may take profit at $54,000, and short-sellers may open up new short positions on any weakness. A close at or above $55,100 would like to remove any further near-term bearish sentiment.
Ethereum price between a rock and a hard place
Ethereum price had a spectacular Saturday close on the daily chart, closing above the dominant interior trend line (black diagonal line). Then, on Sunday and Monday, Ethereum continues to press on higher with closes above the Tenkan-Sen and Kijun-Sen at $4,100. ETH has not returned inside the channel of the former bear flag but finds itself facing resistance against the top of the Cloud (Senkou Span A).
A close at or above $4,500 would put Ethereum price above the Cloud, but the Chikou Span would still be slightly below the candlesticks. However, the oscillators support a sustained breakout. So, if Ethereum does close to at least $4,500, there is enough momentum and space for it to move higher and get to a close that would position the Chikou Span above the candlesticks – to at least $4,725.
ETH/USDT Weekly Ichimoku Chart
From there, the $5,000 value are will likely be tested, and new all-time highs are likely soon after. However, any failure by Ethereum to successfully breakout above the Cloud could see a deeper retracement to test the bottom of the Cloud at Senkou Span B ($3,800).
XRP price weekly candlestick hints at a bullish reversal
XRP price action suffered some of the most bearish price action during Saturday’s flash crash. XRP dropped nearly 38% before finding massive support at the 50% Fibonacci retracement and 2021 Volume Point of control in the %0.65 value area. From there, it shot up higher, past the 38.2% Fibonacci retracement at $0.84 to settle just above that price level.
The resulting price action has created a bullish hammer candlestick pattern on the weekly chart. The positioning and timing of this pattern could not have been more fortuitous for XRP price. The hammer pattern will help confirm the likelihood of a bullish reversal with the Relatives Strength Index and Composite Index oscillators. Combining the bullish hammer, the Relative Strength Index between two support levels, and the Composite Index at a historical low gives XRP a very high probability of moving higher.
XRP/USDT Weekly Ichimoku Chart
Initial resistance will likely be Senkou Span B at $1.04. Given how long Senkou Span B has traded in a flat condition, if XRP can rally above, it will be a significant, bullish event.