GB Market Commentary 11/10/2021
by Freddie Evans
The weekend saw movement in the Bitcoin price around the $55,000 level but has since climbed again to $56,570 at the time of writing. Last week's weekly candle has broken above the recent downtrend and is now looking close to reaching new all-time highs. With technical indicators looking bullish, the next key resistance is at $60,000, and if it breaks through, we could have an exciting run until Christmas.
Bitcoin ETF's are still a big talking point as Blockfi filed to offer a Bitcoin futures ETF. The SEC has previously shown that they want a futures ETF rather than a spot ETF, so Blockfi's chances of approval are better. However, they are at the back of the queue, with Proshares being the first to file for approval. Bloomberg has stressed that they believe that it is likely that one or two ETFs are accepted and has given the Proshares ETF 2:1 odd on approval by the end of the month.
Ethereum's technical indicators show slightly more bearish signs than Bitcoin, but, normally, Bitcoin has a bullish shift first before others are pulled up. Ethereum is currently at $3605, with the price moving up just under 5% over the last week.
El Salvador president Bukele has announced that they are using $4 million worth of profits from their Bitcoin investments to build a new veterinary hospital in the local capital of San Salvador. Whilst they are using $4 million of profits to undertake the construction, they are not selling bitcoin to source funding but instead using money from the Bitcoin fund.
Edward Snowden has added his views on the discussion of Central Bank Digital Currencies(CBDC). He had some severe criticisms of the hypothetical CBDC's. He argued that "the Fed could impose a negative interest rate by gradually shrinking the electronic balances in everyone's digital currency accounts, creating an incentive for consumers to spend and companies to invest." He argued that they are a tool that will annihilate "the savings of every wage-worker in the country if they don't spend them fast enough." Many Central banks are looking into creating digital currencies, with the European Central Bank (ECB) exploring the potential of a digital Euro.