Yesterday in Crypto - Issue #17

Read time: ~8 minutes

Bitcoin owners are increasingly holding onto their coins for the long haul. Here's a simple breakdown of what's happening:

• Almost 69% of all the Bitcoins out there haven't been traded or spent in over a year.

• Even more impressive, 30% of these Bitcoins haven't moved for five whole years. This shows that many people believe Bitcoin's value will keep going up in the long run.

• Experts think this "saving" behavior means people see Bitcoin as a good long-term investment, rather than something to make a quick buck from.

So, what does this mean for the future of Bitcoin? As more people view Bitcoin as a store of value, it could further solidify its position as "digital gold." This shift in perception and behavior could attract even more institutional investors, further driving demand and potentially pushing prices higher in the long run.

This evolving perception, combined with the fixed supply of Bitcoin and a significant portion lying dormant, might lead to a scenario of "hyper-bitcoinization" or intense FOMO (Fear of Missing Out). As demand surges, especially with institutional investors entering the fray, the price of BTC could soar even further in the future.

As if the dormancy stats weren’t enough - Bitcoin just flashed one of the most bullish signals on it’s price chart: the Golden Cross.To understand this, imagine two lines on a graph that represent the average prices of Bitcoin over different periods. One line shows the average over a short period (like 50 days), and the other shows the average over a longer period (like 200 days). When the short-term line crosses above the long-term line, it's called a "golden cross."

Here’s an example from when this last happened, in 2021. (Note the Death Cross, the opposite of a Golden Cross, earlier in the chart). As you can see, the golden cross happens when the short term (50 day) MA crosses the longer (200 day) MA from below, right around Sept 14th of 2021.

Source: CoinDesk

Here’s the rest of the chart after the golden cross.

Source: TradingView

After the Golden Cross in 2021, BTC made a huge run, from ~$44,000 to its all-time high of just over $69,000!

While technical indicators are hinting at a positive trend, the cryptocurrency market is inherently volatile, and past performance doesn't guarantee future results. As of now, while some experts are optimistic about Bitcoin's future trajectory, there are also concerns about the cryptocurrency potentially dropping below the $29,000 mark in the short term.

Paypal recently announced that it would be creating its own stablecoin, PYUSD. Did you miss that? Read about the announcement HERE.

Since the announcement, there has been a surge in malicious activity on decentralized exchanges, particularly on Uniswap. Scammers have been quick to exploit the buzz around PayPal's crypto venture by creating and listing fake PYUSD tokens on the platform.

Within hours of PayPal's stablecoin news, multiple counterfeit PYUSD tokens appeared on Uniswap, attempting to deceive and capitalize on uninformed investors eager to get their hands on the new coin. These fake tokens have no affiliation with PayPal's official PYUSD and are merely a ploy to scam users out of their money.

Many of these fake tokens are Honey Pots - meaning you can buy the coin but cannot sell it, due to some hidden code. Honey is sticky - once you’re in, you can’t get out.

It's crucial for potential investors to exercise caution and ensure they are interacting with genuine tokens. Before making any transactions, individuals should verify the contract address and do thorough research to avoid falling victim to such scams.

That’s all for today. We’ll see you tomorrow.

Every smart person that I admire in the world, and those I semi-fear, is focused on this concept of crypto for a reason. They understand that this is the driving force of the fourth industrial revolution: steam engine, electricity, then the microchip - blockchain and crypto is the fourth.

- Brock Pierce (Entrepreneur)