Blockchain and Cryptocurrency News Roundup

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  • October 26, 2020
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26 October 2020.

Dive into a short summary of some of the biggest headlines in Crypto this week. PayPal may buy digital asset Custodian BitGo following crypto market entry, active Bitcoin addresses at highest since 2017’s $20K price record, Paul Tudor Jones says Bitcoin is ‘like investing early in Apple or Google’ & as Bitcoin’s price breaks records, Bitcoin spinoffs cash in.

PayPal may buy digital asset Custodian BitGo following crypto market entry

PayPal recently announced its integration of cryptocurrency buying, selling and shopping into its global network, but the payments giant may not be done there with rumors flying that it is now looking to purchase digital asset custodian BitGo. According to a report by Bloomberg on Oct.23, PayPal is now venturing further into the crypto space with the company reportedly in talks with digital assets custodian, BitGo Inc. The report only cited anonymous sources who claimed that PayPal and BitGo were in discussions and likely to come to an agreement within the next few weeks. The report noted however that Paypal could decide to acquire a different custodian and “talks could still fall apart” with BitGo. The news of PayPal’s potential acquisition is not sitting well with everyone. The official account of Thorchain (RUNE) expressed the company’s concerns on PayPal’s approach to decentralization via Twitter.

The Twitter post read: “There goes wBTC. The majority of wrapped Bitcoin is custodied by BitGo. PayPal is not a good actor in this space. Position accordingly.”

Although other factors are at play such as the US stimulus anticipation and the constant news of further institutional adoption of the flagship crypto Bitcoin—shortly after PayPal announced will launch its crypto payments next year, Bitcoin (BTC) surged past $13,000, after breaking its previous resistance level at $12,000 the day before. Bitcoin managed to hit a new high in 2020, and passed the $13,000 level for the first time since July 2019. The Bitcoin price currently sits at $12,956 at the time of writing and continues to try to retest the $13,000 resistance. However, research from Glass Nodes indicates that a sell-off correction is most likely fast approaching as 98% of BTC UTXOs are now in a state of profit.

Blockchain.news

Active Bitcoin addresses at highest since 2017’s $20K price record

Active user participation in Bitcoin’s network has accelerated to levels last seen in December 2017, when the cryptocurrency printed record highs near $20,0000. The number of active entities, or clusters of addresses controlled by a single network participant, jumped to 388,697 on Thursday, the highest since Dec. 9, 2017, according to data source Glassnode. The metric has more than doubled in the past five days alongside bitcoin’s rally from $11,350 to $13,300.

“It shows active participation in bitcoin is growing,” a spokesperson for FCA-regulated crypto index provider CF Benchmarks told CoinDesk. “Against the backdrop of PayPal’s announcement this week, it makes a lot of sense that interest in bitcoin is once again intensifying to heights not seen since late 2017,” the spokesperson added. Online payments giant PayPal announced support for bitcoin, ether, litecoin and bitcoin cash earlier this week, propelling bitcoin and wider crypto market higher. The cryptocurrency’s price lags on-chain metrics such as active entities and hash rate. While the count of active entities is closing on the record high of 411,127 reached on Dec. 9, 2017, the cryptocurrency’s price is still down 53% from the lifetime high of $20,000. Meanwhile, the seven-day rolling average of bitcoin’s hashrate, or the measure of the mining power dedicated to the blockchain, rose to a record high of 146 exam hashes per second earlier this month. Continued rise in network’s usage could accelerate the price rally. “When there’s greater usage, there’s more demand for the cryptocurrency, and that drives the price up,” Philip Gradwell, chief economist at the blockchain intelligence firm Chainalysis, told CoinDesk.

Coindesk

Paul Tudor Jones says Bitcoin is ‘like investing early in Apple or Google’

Famed Wall Street investor and billionaire Paul Tudor Jones said that he likes Bitcoin “even more than I did then,” referring to his initial investment announced in May 2020. Jones praised Bitcoin on CNBC’s Squawk Box morning show, revealing that he holds a “small single-digit investment” in the asset. His investment thesis remains unchanged — Bitcoin is an excellent hedge against inflation, which is expected to ramp up in the next few years due to central bank intervention. Unprecedented amounts of quantitative easing and balance sheet expansion, in addition to more aggressive commitment to inflation by the Fed, resulted in heightened inflation expectations. Bitcoin, according to Jones, is one of the best “inflation trades” when compared to traditional options like gold, Treasury Inflation-Protected securities, copper and other more complex strategies. “Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it,” Jones added. “It’s like investing with Steve Jobs and Apple or investing in Google early.” Paul Tudor Jones is an industry veteran, first rising to fame for correctly predicting the 1987 stock market crash, known as Black Monday. Following his earlier statements, the Bitcoin community buzzed with excitement due to the endorsement. Some predicted that Jones would soon become the largest Bitcoin holder. Some see Jones’s endorsement as a potential icebreaker for more institutional investors, who may feel more confident investing in the asset class after familiar names have already made the leap.

Cointelegraph

As Bitcoin’s price breaks records, Bitcoin spinoffs cash in

Sure, Bitcoin has had a good week. Today, traders pushed the coin to its highest price since June 2019. But ya know which coins performed even better this week? Bitcoin spinoffs, each touted as superior to Bitcoin in their own way, yet far less successful…until now! Childhood dreams came true this week for the creators of Litecoin, Bitcoin SV and Bitcoin Cash, the most popular Bitcoin spinoffs by market cap. According to data from metrics site CoinMarketCap, while Bitcoin’s price increased by 13.6% this week to its current price of $13,014, Litecoin increased by 24.9% to $59, Bitcoin SV increased by 14.5% to $184 and Bitcoin Cash increased by 8.9% to $272. Still, their success is trivial compared to Bitcoin, the largest coin by market capitalization. Bitcoin’s market cap is $240.5 billion. Charlie Lee’s Litecoin, a “Lite” version of Bitcoin, has a market cap of $3.8 billion; Bitcoin SV, the cryptocurrency created by Bitcoin creator (ha!) Craig Wright, has a market cap of $3.3 billion; and Bitcoin Cash, another spinoff to Bitcoin that has a larger block to prime it for payments, has a market cap of $5 billion. But all eyes are still on Bitcoin; combined, the market caps of all three spin offs total $12 billion. That’s 5% of Bitcoin’s market cap. That’s perhaps why Kanye West didn’t talk about Bitcoin SV on the Joe Rogan Podcast; Jack Dorsey’s Square didn’t invest $50 million in Bitcoin Cash; and MicroStrategy CEO Michael Saylor hasn’t spent the past month relentlessly promoting Litecoin after his company bought $450 million worth of the cryptocurrency. No, as Saylor put it last month, it’s “Bitcoin” (emphasis added) that’s “a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy.” Keep on dreamin’, Bitcoin spinoffs. 

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