Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
Another week, another spate of all-time highs. Bitcoin managed to crack $42,000 on Friday, surging by 9% in just three hours.
A sharp correction soon followed, with prices tumbling by 7% in the following eight hours. This may seem rather tame in percentage terms — but that’s a drop of almost $3,000.
Whales have been selling en masse since the start of 2021 and taking a profit on their positions. They’re currently locked in a battle with new buyers in the U.S. who are aggressively accumulating BTC. Key metrics to observe right now include Bitcoin outflows from Coinbase and stablecoin inflows into major exchanges.
Raoul Pal has warned that a “New Year Head Fake” could cause a nasty correction in the BTC and gold markets. It’s unclear whether this would be as brutal as the flash crash last March, but it’s worth noting BTC is overbought on weekly and monthly charts.
Long term, JPMorgan Chase believes that BTC could hit $146,000 by crowding out gold, however, it warned a short-term surge to between $50,000 and $100,000 will prove “unsustainable” this year.
At the time of writing, BTC’s market cap has vaulted beyond Facebook, Tencent and Alibaba, and it has come close to overtaking Tesla. The jaw-dropping rally has helped the total market cap of all cryptocurrencies exceed $1 trillion for the very first time.
Bullish fervor surrounding Ether intensified this week, with the world’s second-largest cryptocurrency breaking above $1,200 for the first time in three years.
The gains were largely driven by a confluence of fundamental factors, including…