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Crypto SWOT: new ATH for bitcoin as it soared past $66k last week

Commentaries & Views

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was BlowUP (BLOW), rising 88,848,931%.

  • Tom Lee from Fundstrat says he could see the newly launched Bitcoin Futures ETF attract $50 billion. As reported by Bloomberg, Lee added that demand could even exceed inflows for QQQ. Lee's team has a year-end $100,000 price target on Bitcoin, though he says the coin's price could rise even higher to $168,000.

  • Bitcoin climbed to record highs this week after the debut of the futures-based ETF. According to data compiled by Bloomberg, the ProShares ETF traded more than 24 million shares on Tuesday, which is the second-most traded shares at a launch.

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Spain National Fan (SNFT), down 98.17%.

  • In an interview with CNBC, Larry Fink, Chairman and CEO of Blackrock, agreed with JPMorgan CEO Jamie Dimon on Bitcoin's true worth. Fink said, "I can't tell if Bitcoin is going to $80,000 or zero," wrote CoinTelegraph. He did add that he sees a huge role for digitized currency and its potential to help people and the economy.

  • Crypto bull Cathie Wood did not buy the new Bitcoin ETF (BITO). In an interview at the Milken Institute Global Conference this week, Wood stated that her team is looking at this very carefully before making any decisions to invest. She stated that there are tax ramifications the ARK Invest team would like to understand first, specifically having to do with contango.

Opportunities

  • ProShares Bitcoin Strategy ETF (BITO) launched this week after getting its blessing from the U.S. Securities and Exchange Commission (SEC). It's the first U.S Bitcoin-linked ETF that offers investors an opportunity to gain exposure to Bitcoin returns. The funds seeks capital appreciation through managing exposure to Bitcoin futures contracts.

  • Grayscale Investment and the NYSE filed to turn the biggest Bitcoin fund into an ETF, reports Bloomberg. The application to flip the $40 billion Grayscale Bitcoin Trust (GBTC) landed on the same day the ProShares Bitcoin Strategy ETF debuted. The SEC has allowed the derivatives-based product to launch but has yet to permit the kind of structure used by Grayscale, which holds the actual cryptocurrency.

  • The pension fund for Texas firefighters has allocated part of its $4 billion portfolio towards cryptocurrency, reports CoinTelegraph. The Houston Firefighters' Relief and Retirement Fund used the New York Digital Investment Group to execute the purchase of $25 million in both Bitcoin and Ether.

Threats

  • Hackers have exploited a simple computer tool to steal 17.5 million euros, reports Science Techniz. The botnet, called MyKings, apparently hijacks the function on infected machines and redirects the payments to the attackers' wallets, the article continues.

  • JPMorgan is warning that a boom for Bitcoin futures ETFs may come at a cost, reports Bloomberg. The problem here is the cost of continually rolling over contracts held by the fund, known as a "carry." JPMorgan strategists Bram Kaplan and Marko Kolanovic note that the new BITO ETF accounts for a quarter of open interest in October and November. This means that the carry cost could be several times larger than the management fees, the article continues.

  • The Bitcoin price flash crashed by 87% to $8,000 on Binance.US, reports CoinTelegraph. On October 21, BTC crashed to just $8,100 only on Binance's U.S. platform. Traders are calling this a "scam wick" and have vocally criticized the terrible exchange protocols that Binance.US has to offer, CoinTelegraph explains.
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