Stablecoins are a safe option in a bull run, but what exactly to do with them?
#Here are 5 steps to follow to maximize their potential: 1. Convert profits into stablecoins to protect your gains. 2. Use DeFi to generate passive returns with your stablecoins. 3. Provide stablecoins in liquidity pools to earn transaction fees. 4. Stay liquid to buy back crypto during price drops. 5. Diversify your stablecoins to reduce risk. #BinanceLaunchpoolHMSTR #HBODocumentarySatoshiRevealed #WeAreAllSatoshi #SECAppealRipple #BTCReboundsAfterFOMC $USDC
📜The crazy (but winning) bet of the MicroStrategy company!
🔍 In August 2020, the company MicroStrategy, led by Michael Saylor, started buying bitcoins. At the time, BTC was worth just $12,000 compared to around $90,000 today.
Here is a little recap:
🔜 in 4 years, Michael Saylor's company bought BTC 41 times (a real example of dollar cost averaging!) 🔜 1.3% of the circulating BTC supply is held by MicroStrateg 🔜 performance is over 100%
👉 The American company has clearly started a movement, because other companies like Metaplanet or Semler Scientific have followed by building up a BTC reserve. And if you ask me, other companies will follow!
👉 XRP was evolving in a main bullish dynamic in weekly and in a range for about 470 days between the support at $0.43 and the resistance at $0.65. But the price is moving significantly beyond $0.65 and it is breaking the bearish trendline. The RSI momentum is bullish and it is evolving on the other side of the bearish trendline.
Buy signal:
🔜 the signal will be validated if the price closes weekly above $0.66
Targets :
➡️ Fibonacci extensions 2 and 2.618 (between $1.13 and $1.57)
🧵The Stablecoin Trilemma: An Unavoidable Challenge: Part 2
5/8 - Example of a Trilemma: USDS
USDS, a decentralized stablecoin that replaced DAI, manages to maintain stability and decentralization, but requires a high level of overcollateralization, making its capital inefficient.
6/8 - Example of a Trilemma: Tether (USDT)
Tether is stable and capital efficient, but depends on a centralized entity to guarantee its reserves, compromising decentralization.
7/8 - Hybrid Solutions
Some projects, such as Frax, attempt to combine algorithmic mechanisms with partially collateralized guarantees to find a balance between these three elements.
8/8 - Conclusion
The stablecoin trilemma shows that it is difficult to achieve a perfect balance between stability, decentralization, and capital efficiency. Each stablecoin makes tradeoffs, and it is important to choose according to your needs.
🧵The Stablecoin Trilemma: An Unavoidable Challenge:
Stablecoins are designed to maintain a stable value, but they face a difficult trilemma: stability, decentralization, and efficient capitalization. Why is it so hard to check all the boxes?
Let’s explore this concept.
2/8 - Stability
Stablecoin users seek guaranteed stability, often pegged to a fiat currency like the dollar. This is the main goal, but achieving it sustainably while remaining decentralized poses major challenges.
3/8 - Decentralization
For many crypto players, decentralization is essential. But most reserve-backed stablecoins (like USDT) are controlled by centralized entities, which goes against the crypto philosophy.
4/8 - Capital Efficiency
Capital efficiency refers to the ability of a stablecoin to maintain its stability without having to overcollateralize (hold more assets than issued stablecoins). Too low an efficiency can lead to high costs or risky undercollateralization.
🔍 Yesterday, the Bitcoin price reached $93,000. I don't know if you realize, but there is less than 10% left before reaching the famous $100,000...
🔍 For me, this is the level that will create significant euphoria in the market...
But according to CryptoQuant data, the new money is already here!
👉 Retail demand has not been this high for 52 months (July 2020)
👀 This liquidity allows the Bitcoin price to continue to have strong momentum, especially as spot ETFs continue to attract capital. ETFs have recorded inflows of $4.7 billion since November 6!
👉 ETH has just managed to break the famous resistance zone around $2,800. Thanks to this buying reaction, the price maintains the bullish trendline and signs a double bottom in weekly with the closing above $2,800.
🔍 The price is now moving beyond the moving averages (EMA13/MA30)...
📊 In addition, the momentum is bullish, as the RSI is showing bullish momentum beyond the bearish trendline and the stochastic has crossed bullish outside the oversold zone!
👁🗨 Alameda Research has filed a lawsuit against Alexander Ivanov, the founder of Waves, seeking to recover at least $90 million previously deposited into Vires Finance, a liquidity platform powered by Waves. FTX exchange managers have filed a $1.8 billion lawsuit against Binance and its founder CZ. #BTCNear82k #AltCoinRush #SOLFutureRise #Trump47thPresident #EthereumWhitepaper $BTC $ETH
🔍 The Bitcoin price is in full price discovery and is approaching $80,000.
And records are starting to fall on ETFs:
👉 record inflows into ETFs on November 7 with $1.36 billion 👉 since January 10, 2024 (launch of BTC ETFs), ETFs have captured $25.6 billion
👀 And to top it all off, BlackRock's Bitcoin ETFs have more assets under management than gold: $33.2 billion for Bitcoin versus $33 billion for gold! Institutional investors are gorging themselves on BTC!
🔍 Last night, the Bitcoin price recorded a new ATH above $76,000. And this time, BTC could well take advantage of it to accelerate, because the situation is totally different compared to March…
👉 The MVRV indicator was signaling a period of excess (blue) when BTC recorded an ATH in March. And currently, the situation is much healthier, as the indicator is far from the overheating zone, also called “bubble”.
🔍 Between the beginning of the year and today, the Bitcoin price is up 66%. And if the price breaks $70,000, we have the feeling that an acceleration could take place…
📊 A bullish acceleration tends to happen from October. This was the case during bull run years like 2020 or 2023.
💸 As we know, the end of the year is often to the advantage of bulls on Bitcoin and cryptos.
🧵Algorithmic stablecoins, a revolution in crypto? Unlike traditional stablecoins backed by reserves of assets, algorithmic stablecoins use automated mechanisms to keep their value stable. They do not require physical collateral such as gold or fiat currencies.
2/8 - How do algorithmic stablecoins work?
These stablecoins automatically adjust their supply based on price fluctuations. When their price exceeds the target, the algorithm creates more tokens. When the price drops, the tokens are burned to reduce the supply.
💰🇺🇸 Since 2012 there have been three US presidential elections, each weekly candle (1W) containing elections, marked an absolute bottom and the start of the bull market:
▪️ In 2012, the 1W candle closed at $11 and led to a pump of +10,900%
▪️ In 2016, the 1W candle closed at $742 and led to a +2,600% pump
▪️ In 2020, the 1W candle closed at $15,400 and led to a +390% pump
👉 In 2024, the 1W candle has every chance of closing in the range of $67,000 to $70,000, which may correspond to a new bottom that will never be recovered.
POL has been bearish since February 2023, but it has retraced the entire upward movement made between June 2022 and February 2023. I think buyers could show up here, and if we hold the last low at $0.315, we could see a new bullish phase!
👉 Buy signal:
holding the last low at $0.315 Break of bearish moving averages (EMA13/MA30) closing above $0.44 bullish stochastic (exits oversold zone)