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Should You Buy Bitcoin, Ethereum, and Solana at All Time Highs?

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Key Points

Cryptos are roaring and showing no signs of slowing down. Bitcoin and Ethereum continue to make up most of the crypto market. Newer high-growth players like Solana are quickly gaining steam.

The U.S. stock market is roaring, but it’s nothing compared to the gains we are seeing in the crypto market. Less threatening regulatory hurdles, increased trust and security, and inflation-resistant characteristics are all tailwinds propelling cryptos to new all-time highs.

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Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) both reached new highs on Nov. 10 of $69,000 and $4,867, respectively. Solana’s (CRYPTO:SOL) last all-time high of roughly $260 was reached on Nov. 6.

Investors are often rightfully hesitant to buy securities at all-time highs, but it’s important to remember that the best companies and assets have a habit of growing over the long run. Here’s why Bitcoin, Ethereum, and Solana may be worth buying now.

The case for Bitcoin

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Outside of the crypto world, Bitcoin is seen as extremely volatile, risky, unproven, unpredictable, and hard to value. Inside the crypto world, Bitcoin is seen as the slow and steady stalwart that makes up about a third of the entire crypto market.

As Bitcoin has grown, especially over the last two years, investors have questioned whether it’s a buy at $40,000, $50,000, $60,000, and now around $65,000. The same criticism long plagued companies like Amazon (NASDAQ:AMZN). Every year, there are skeptics that question whether Amazon is a buy. But the reality is that each past all-time high for Amazon stock was, in hindsight, actually a good time to buy. That’s because today’s all-time highs eclipse past records by several multiples. For example, consider that Amazon has set a new all-time high in nine out of the past 10 years.

Bitcoin is by no means Amazon, but it is the market-leading crypto. Just as demand for e-commerce, cloud computing, streaming, and other industries that Amazon participates in continue to grow, so too have the adoption and use cases for Bitcoin. Until the investment thesis changes, Bitcoin should continue to be a solid buy capable of providing the backbone of a crypto portfolio.

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The case for Ethereum
Ethereum is to innovation and creativity as Bitcoin is to stability and reliability. The majority of crypto projects are tied to, or built upon, Ethereum. For example, smart contract oracle service Chainlink (CRYPTO:LINK) has an ecosystem containing its own network and token — but it runs on the Ethereum blockchain. Smart contracts cut out the middleman by automatically processing a transaction if certain conditions are met. A great example would be an insurance policy, which normally comes with a lot of hassle that drives up the cost and time to process.

Chainlink is just one of many cryptos that are directly tied to Ethereum. A common comparison you’ll hear is that Ethereum is like a smartphone that hosts many applications and is incredibly dynamic. In this vein, Ethereum’s long-term growth is virtually limitless as existing projects mature and new projects come on stream.

Ethereum is the crypto of choice for moderate risk and reward. It’s unlikely to grow as quickly as smaller altcoins, but it’s more volatile and faster growing than Bitcoin. It’s also not as decentralized as Bitcoin and isn’t as good of an inflation hedge, but it sure beats smaller, newer projects that haven’t been around as long.

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The case for Solana
Investors new or unfamiliar with cryptocurrency may have never even heard of Solana. But there’s a reason why it’s risen to become the fifth-most valuable crypto in the world behind Bitcoin, Ethereum, Binance Coin, and Tether.

Solana is more centralized than Bitcoin and Ethereum, which helps make its blockchain lightning fast. This speed makes Solana’s blockchain more practical for everyday transactions and smaller transactions. A good example would be buying a non-fungible token (NFT) such as a work of art, song, or another virtual asset. Solana’s blockchain can save buyers gas fees, which are much more expensive and take longer to process on Ethereum’s blockchain.

The downside is that Solana is easier to hack than Bitcoin and Ethereum because it has a relatively small number of validators that process transactions and support Solana’s network. By comparison, there are magnitudes more miners that are verifying transactions on Bitcoin’s blockchain.

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Solana’s meteoric price increase and untested staying power make it much riskier than Bitcoin and Ethereum. Solana is not ideal for risk-averse investors or really anyone new to crypto. But for those who want to allocate a large percentage of their portfolio to crypto, Solana is a high-growth crypto to complement Bitcoin and Ethereum.

All three cryptos could be worth buying now
Just like with stocks, individual needs, preferences, and financial goals are going to influence which cryptos are best for you. An investor who buys a dividend-paying value stock like Procter & Gamble would probably like stablecoins with high interest rates and maybe Bitcoin. On the other hand, investors who prefer growth stocks might like Solana.

For everyone in between, there’s Ethereum. Ethereum is arguably the best buy now because it combines an established industry-leading position with a ton of growth potential — which is a rare combination.

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Miami Mayor, Strike’s Jack Mallers discuss their take on Bitcoin as inflationary hedge

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In early November, investment expert and business show host Anthony Pompliano asked which American politician would be the first to take their salary in Bitcoin.

In response, the Mayor of Miami city, Francis Suarez, expressed his willingness and asked for help. Several industry stakeholders, such as Coinbase’s Brian Armstrong and the Strike company offered their expertise.

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During an episode of Pompliano’s show, the investment exec interviewed both Suarez and Strike CEO Jack Mallers to learn more about getting paid in Bitcoin.

Rising prices, rising worries

Inflation was the word of the day for both interviewees, as Mallers and Suarez spoke about how they believed Bitcoin would serve as a hedge, or a new way of saving money. Mallers said he preferred to look at rising real estate prices and explained,

“If you, watching this, are not getting a 25% raise every single year, housing is getting more expensive than your earning income. So you are not making progress towards owning a home.”

Mallers also spoke about Strike’s feature that allowed users to be paid fully or partially in Bitcoin. In response, Suarez said,

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“…particularly people that don’t like Bitcoin, for whatever reason, they like to talk about the volatility, but they don’t talk about the year over year gains, which is crazy. I don’t understand how they can talk about one thing without the other, which is really the more relevant statistic, right?”

Suarez also suggested plans for residents to pay taxes in Bitcoin and for the government to hold BTC on its balance sheet. But regarding the link between Bitcoin adoption and inflation, he claimed,

“And with inflation certainly being under-reported – as we all know – you know, it’s [Bitcoin] an important hedge, and it’s becoming the base currency for many, many people.”

‘Tip’ of the iceberg

The Twitter-Strike API integration in September caused a buzz as crypto watchers worldwide wanted to know when the app would reach them. However, as of press time, the Strike website stated that only the United States (minus New York and Hawaii) and El Salvador could support the app.

Speaking about the Twitter tips feature, Mallers said,

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“And so we’re working with Twitter on how to make sure that can be outside of just our service – we don’t want to be the only ones supporting [it] – and how they can make it extensible to everyone in the world.”

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Bitcoin Traders Should Pay Close Attention to This Price Level Amid Crypto Market Pullback, Says On-Chain Analyst Will Clemente

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Popular on-chain analyst Will Clemente says he’s identified the new support level for Bitcoin (BTC) after the crypto market’s latest Covid-induced price drop.

Clemente tells his 430,000 Twitter followers that $53,000 is the price level to keep an eye on, and it wouldn’t surprise him to see the largest crypto asset by market cap tested at this support as he has yet to see any sizable flushes.

“Covid variant news isn’t ideal. Yet to see any sizable amount of [liquidations] or [open interest] flush, so a wick lower is very possible.

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However, STH (short-term holder) cost basis, or what I’ve been calling the ‘on-chain bull market support band,’ sits at $53,000.”

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Source: WClementeIII/Twitter

Bitcoin is exchanging hands at $54,350 at time of writing, an 8.6% decrease from its 24-hour high of $59,445.

In a new Blockware Solutions Market Intelligence Newsletter blog post, Clemente says spent output profit ratio (SOPR) data shows BTC investors are not yet ready to start selling their tokens at a loss, a signal that the support band could hold. The SOPR is an on-chain metric the indicates whether BTC holders are selling at a profit or a loss.

Clemente also says that there he’s seeing a pattern where strong Bitcoin holders are absorbing selling pressure from short-term holders.

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“There’s a clear bullish divergence between illiquid supply shock ratio and price right now. Illiquid supply shock compares liquid entities (sell 50% of the BTC they take in) and highly liquid entities (sell 75% of the coins they take in) to illiquid entities (hold 75% of the coins they take in). This means supply is moving to entities with little history of selling. If this does start to decline I will become bearish, but for now, it is continuing a steady incline.”

Clemente concludes that he’s still bullish on BTC despite the recent correction, but he’s ready to change his stance once he sees key on-chain metrics print clear bearish signals.

“In conclusion, if we are indeed in a bull market, the asymmetry is very skewed to the upside right now. Invalidation would be starting to close below $53,000 for several days, seeing SOPR breaking below and failing to retake 1 from the underside, as well as starting to see illiquid supply shock rolling over.”

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Bitcoin to Boost $98k in 4 Days, Analyst So Bullish

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  • Analyst bullish about Bitcoin.
  • Bitcoin remains the favorite crypto in the space.

The crypto world is back on its feet once again and is showing no sign of slowing down. In fact, the whole crypto space market cap amounts to over $2.5 trillion. Furthermore, Bitcoin, the king of crypto assets also continues to perform aggressively in the space. As a result, traders and crypto analysts in the crypto market cannot stop thinking about the future of Bitcoin.

This made Mr. Whale, CEO of DigiWhales, react in a tweet post:

The post created by Mr. Whale asked the reaction of the Twitter community about the tweet made by PlanB in Bitcoin hitting the skyrocketing price of $98k in 4 days. This tweet gathered different reactions from the crypto community, with some being bullish while others say it might take some time. But of course, in the end, the market will still decide the fate of all virtual assets in the space including Bitcoin. 

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On the other hand, Bitcoin remains to be the favorite cryptocurrency of investors around the world. Interestingly, El Salvador President Nayib Bukele announced that it would build a Bitcoin city where investors can experience zero tax. Indeed, this news brings joy to all Bitcoin fans and investors around the world.

At the time of writing, Bitcoin trades a bullish price of over $55k with a growth rate of over +200% in the past 12 months. In addition, BTC has a huge market capitalization of over $1 trillion and a 24-hour trading volume of almost $40 billion. This market position of the crypto enables Bitcoin to be the number one crypto asset in the market. 

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