With the break of its historic high, the price of Bitcoin (BTC) reinforced its gains in 2021. The price of cryptocurrency has already accumulated an increase of 112% in the year, according to data from the TradingView platform.
The gains are even more expressive in reais, although the cryptocurrency has not surpassed the maximum registered in April. Even so, the BTC accumulates an appreciation of 132% against the real.
This appreciation made BTC the best investment of the year, especially when compared to assets in the traditional market. And when it comes to assets managed by BTC critics, the performance is even more forceful.
For example, while the “bubble” breaks records, fund manager Versa sees its funds record sharp drops in the year. Versa is headed by Luiz Alves Jr, a manager known for his criticisms of the BTC, but whose funds have registered losses since the beginning of the year.
Funds don’t even surpass CDI
Versa has five funds in total: Versa, Fit, Charger, Tracker and Genesis. The funds are divided between multimarket (Versa, Fit and Tracker), stocks (Carger and Genesis). The first three have as a reference index (benchmark) the CDI, while the last two seek to surpass the Ibovespa (IBOV).
The funds are actively managed, that is, they not only follow the indices, but operate to outperform them. For this, they use instruments such as leverage and short positions, in addition to financial derivatives.
However, almost none of them managed to surpass their benchmarks in 2021. On the contrary, the five funds accumulate heavy losses in the year. The “best” performance to date is the Versa Charger BDR Level I FIA fund, whose annual return is negative by 0.4%.
It should be noted that despite the drop, the fund still managed to outperform its benchmark, as the IBOV accumulates a drop of 6.9% in the year. In October, the Charger’s fall is eight times greater than that of the B3 index.
However, the biggest negative performance was with the Versa Tracker FIM, a fund that has the CDI as a benchmark. While the CDI accumulates an increase of 2.8% in 2021, the Tracker registers an expressive drop of 34.2%, the largest among the fund manager.
The disparity between performances led Tracker to carry out a kind of “reverse Bitcoin”, accumulating a negative return of expressive 1,204% of the CDI.
Faria Lima vs Laser Eyes
It seems that managers are struggling to deal with the turmoil inherent in the Brazilian market. Alves himself is a frequent critic of the federal government, especially of President Jair Bolsonaro, and of its recent economic policies.
On the other hand, laser eyes supporters who invested in BTC achieved returns far above expectations. With a passive strategy, based on frequent purchases, anonymous users with anime or laser photos have obtained returns above those of large managers since 2017.
CriptoFácil contacted Luiz Alves regarding the performance of the funds, but has not received a response so far. This article will be updated if there is a return.
Also read: Neither oil, gas or minerals, Bitcoin mining reigns in Kazakhstan
Also read: SEC authorizes VanEck and Valkyrie Investments to launch Bitcoin futures ETFs
Read also: Another barrier broken: Spain gives banks and exchanges a week to ask to legally operate with Bitcoin
Peter Schiff Names Real Reason Behind Bitcoin Drop
Popular digital assets critic believes that measures against inflation are the real reason behind the most recent market correction
The famous Bitcoin and crypto critic, Peter Schiff, provided his Twitter subscribers with a potential reason behind one of the largest corrections on the cryptocurrency market this year.
According to Schiff, Bitcoin’s correction was tied directly to the Fed’s action toward risk assets like cryptocurrencies and some stocks. Previously, Jerome Powell hinted that tapering might happen sooner than the market expects.
Risk assets like stocks & #Bitcoin are tanking simply because Powell hinted the #Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner. Imagine what would happen if the Fed was actually serious about fighting #inflation!— Peter Schiff (@PeterSchiff) December 3, 2021
In addition to the end of the quantitative easing monetary policy, Powell has stated that the point rate may be increased sooner than was expected due to the inflation’s change of nature, which has become a real threat to the country’s economic safety and stability.
All of the actions that the Fed is currently taking are designed to control inflation, which is currently hitting highs previously observed back in the Depression era.
High-risk assets like Bitcoin and other digital assets were allegedly considered a store of value for those who wished to protect their funds from increased inflation. Schiff is a widely known critic of cryptocurrencies, and he believes they should not be considered an inflation hedge.
Whales Suddenly Move $320,000,000 in Bitcoin to a Single Destination – Here’s Where the Crypto Is Headed
Crypto whales just moved over 5,800 Bitcoin (BTC) worth more than $327 million into a single destination, according to a whale-surveilling platform.
Whale Alert tells its 1.8 million followers in a series of tweets that in the last 24 hours crypto whales are relocating thousands of BTC amid a correction that saw Bitcoin tumble to a new 30-day low of $52,416.
Five of the transactions involved shifted BTC from wallets of unknown origins to popular US-based crypto exchange Coinbase. Meanwhile, one transaction moved a large sum of Bitcoin from global crypto exchange Binance to Coinbase.
Here’s a summary of the BTC transactions:
- 530 BTC worth $30.05 million transferred from unknown wallet to Coinbase
- 1,000 BTC worth $56.69 million transferred from unknown wallet to Coinbase
- 525 BTC worth $29.53 million transferred from unknown wallet to Coinbase
- 842 BTC worth $46.98 million transferred from unknown wallet to Coinbase
- 1,000 BTC worth $54.69 million transferred from Binance to Coinbase
- 2,000 BTC worth $109.06 million transferred from unknown wallet to Coinbase
While crypto investors tend to be concerned that a massive influx of Bitcoin into the crypto exchanges might indicate downward selling pressure, insights firm Into the Block reports that centralized exchanges recorded more outflows than inflows during the past week.
The crypto intelligence platform says,
“Bitcoin recorded nearly $2 billion in net outflows from centralized exchanges, the highest level in five weeks.”
At time of writing, BTC is down nearly 7.14% on the day to $52,557.
Ethereum Price Analysis: ETH drops 25 percent from previous swing high, ready to recover?
- Ethereum price analysis is bullish today.
- ETH/USD rejected further downside at $3,600.
- Previous support at $3,950 is currently tested as resistance.
Ethereum price analysis is bullish today as we expect further recovery to follow after a strong reaction higher from the $3,600 was seen this morning. Likely ETH/USD is set to break above the current resistance, moving to regain even more over the weekend.
The market has seen strong bearish momentum over the last 24 hours. The market leader, Bitcoin, has lost 17.23 percent, while Ethereum 14.83 percent. Meanwhile, the rest of the market has seen even more substantial losses.
Ethereum price movement in the last 24 hours: Ethereum breaks below $3,950 previous support, rejects more downside at $3,600
ETH/USD traded in a range of $3,739.39 – $4,647.29, indicating extreme volatility in the market. Trading volume has spiked by 113 percent, totaling $41.2 billion, while the total market cap trades around $465 billion, resulting in the market dominance of 21.16 percent.
ETH/USD 4-hour chart: ETH reacts back to previous lows
On the 4-hour chart, we can see the Ethereum price swiftly rejecting further downside after touching the $3,600 mark this morning.
Ethereum price action saw strong bullish momentum during the first half of the week. After establishing and retesting the new low at $3,950 last weekend, ETH/USD started to move higher on Monday quickly.
Ethereum reached $4,750 resistance by Wednesday, as bulls were eager to move towards the previous all-time high. However, more upside did not follow, leading to a reversal over the next days.
Another attempt to test upside was seen Yesterday, with the following rejection leading to a strong spike lower. Overnight, the Ethereum price broke past the previous swing low at $3,950, leading to more downside this morning. Strong reaction, preventing further downside, was seen at $3,600, with ETH/USD since moving back towards the previous low.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish today as we saw a swift drop to $3,600 met with a strong reaction higher this morning. Therefore, we assume ETH/USD has set a new swing low, and further recovery should follow over the weekend.
While waiting for Ethereum to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.