• According to analysis, it was a quiet day in cryptocurrency market yesterday. The global market capitalization inched up 0.64% to $571 billion thanks to marginal gains in Bitcoin (up 1.32%) and Ethereum (up 0.25%).

    XRP continued its violent swings up and down, this time losing 7% in one day. These movements were driven by Flare Network’s promised Ripple airdrop that led investors to buy up as much of this currency as possible.

    This made an artificial boom in the currency that pushed prices from $0.22 in November to a yearly high of $1 in less than a month. Since then, XRP’s value has halved, and now trading at $0.45

    A survey of asset managers said that Bitcoin is becoming one of their favorite investment options.

    According to a Bank of America Fund Manager Survey, when asked “What do you think is currently the most crowded trade”, 217 fund managers put BTC in third behind Long Tech and Short US Dollar.

    The winner, “long tech” is in reference to “going long” on tech stocks such as Facebook, Apple, Amazon, Netflix and Google, whereas Short US Dollar means predicting that the value of the US Dollar would go down.

    As we reported yesterday, the greenback has been weakening in 2020 – it’s lost 10% against a basket of currencies since March, whereas tech stocks have become the new safe haven for investors trying to find a hedge against 2020’s market losses.

    That puts BTC in good company, and the sentiment has been echoed by strategists at JPMorgan Chase.

    After Massachusetts Mutual Life Insurance purchased $100 million worth of BTC, some believe this opens the door for other pension funds and insurance companies to join the rally.

    The last time we saw such praise from Wall Street was back in 2017, and we all know what happened shortly after that.

    If you believe the old adage, “history doesn’t repeat itself, but it does rhyme”, a correction could be waiting. If you don’t, Bitcoin could be about to go to places it hasn’t been before.

    Traders and investors in the US are optimistic lawmakers will pass a stimulus package after a fresh round of talks between Democrats and Republicans. 

    “The odds of a fiscal deal before year’s end have been improving. At this point, we think it is slightly more likely than not that Congress will pass this week a package similar to the recent $748bn bipartisan proposal, which would be close to our standing assumption of a $700bn (3.3% of GDP) package,” said Goldman Sachs economists on Tuesday.

    That was what we saw in yesterday’s cryptocurrency market analysis: the S&P 500 turned the tide on its four-session losing streak, while the Nasdaq Composite and Russell 2000 ended Tuesday’s session at record closing highs.

    While the long-term outlook seems very bullish, there are still concerns that Covid could spoil the party in the near term.

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