💥 Bitcoin is Flying... But It's Just Getting Started on the Road to $100K

Let's Dive Into It!

Author

Crypto Rand
November 11, 2024

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Happy Monday dear subscribers! In today’s Newsletter, Bitcoin is Flying!!

In today's bulletin, we are covering:

The Mid Caps Index just breached a key horizontal resistance reaching a new local high not seen since 5 months ago.

Next key test comes at $4,5 but the first push towards the bullish reversal is completed.

As we have been saying the market looks absolutely bullish and is just getting started.

$BNB breaching the $600 range for first time in months. Bullish reversal triggered:

 

A16z Crypto Signals Regulatory Relief for Blockchain Innovation Under New Administration

With Donald Trump’s re-election, a16z crypto signals optimism for relaxed crypto regulations under the incoming administration, urging crypto founders to explore token issuance and decentralized innovations more freely.

  • Easing Regulatory Pressure: A16z sees an opportunity for constructive engagement with regulators and clearer frameworks for crypto projects.

  • Token Issuance Encouraged: Founders are encouraged to use tokens as legitimate tools to build community without fear of regulatory overreach.

  • Upcoming Guidance: a16z plans to release guidance on DAOs to help projects manage compliance and bolster innovation.

  • Remaining Caution: While optimistic, a16z advises continued focus on decentralization to avoid regulatory challenges.

Although regulations are expected to ease, a16z advises founders to maintain decentralized project structures to avoid scrutiny.

Bitcoin Hits $1.6 Trillion Market Cap Amidst New All-Time Highs

Bitcoin reached a new all-time high above $81,000, pushing its market capitalization above $1.6 trillion for the first time.

  • Bitcoin Price Surge: Reached $81,000, leading to a market cap of $1.62 trillion.

  • Global Impact: Raised the global crypto market cap to $2.71 trillion.

  • Profitability: All long-term Bitcoin investors are in profit, with appreciation across 15 years.

  • Future Outlook: Analysts encourage holding BTC, predicting further growth due to room in the market trend.

Positive institutional interest, pro-crypto policies, and a strong bull market signal continued price growth potential, according to analysts.

Experience the all-new Decentraland

Explore the future of Decentraland with the new Desktop client, now available on Mac and Windows. Enjoy smoother performance, more immersive environments, upgraded avatars, new social features, daily quests with mini-games, and more. Dive in to unlock new badges and experience Decentraland like never before.

SPIRE Labs

The Origins

Spire is a platform that is focused on expanding Ethereum's infrastructure through scalable, decentralized solutions.

It has been created for the deployment of application-specific chains, known as appchains.

An appchain, or application-specific blockchain, is a customized blockchain designed to meet the needs of a specific application or web3 protocol. Appchains are different from multi-purpose blockchains, which are designed to be a one-size-fits-all solution.

The Operative

Spire Labs uses something called "Based Sequencing" that allows app developers to use Ethereum Layer 1 as the sequencing layer instead of relying on centralized sequencers. This approach should minimize fragmentation issues like liquidity dispersion while providing composability, neutrality, censorship resistance, and decentralization.

The Based Stack is Spire Labs' proprietary rollup framework (based sequencing) and enables Maximal Extractable Value (MEV) internalization, allowing appchains to capture the MEV they generate, which traditionally would go (leaked) to sequencers.

That way developers remain connected to Ethereum's Layer 1 while they create tailored blockchain environments for their applications.

Summary & Competitors

Spire Labs recently raised $7 million in a seed funding round led by Maven 11 Capital and Anagram, with additional support from another 17 investors. Tesnet is planned to be released by the end of this year with a mainnet launch expected in the first quarter of 2025.

> Competition for scaling Ethereum is strong because the protocol very much needs it, and multiple projects are looking to get solutions for it like Optimism's OP Stack, Polygon Chain Development Kit and zkSync's ZK Chains among many others.

Ethereum scaling efforts are focused on improving the cost and efficiency of data consumption and posting to the base layer.

Is Paper Trading of Any Help?

Many recommend paper trading as a way to start in the world of investing, as a step that shouldn't be skipped before diving into the market, but does it really help? What benefits does it offer? Let's take a look.

What is paper trading?

Paper trading is nothing more than a simulation of normal trading, that is, the kind where we invest real money. The term "paper" refers to the fact that it's fictitious money used to buy, also fictitiously, stocks or cryptocurrencies 🪙 

Nowadays, you can find this option in any broker or exchange.

Does it help?

We can answer this question in two ways: one practical and one intangible.

- On the practical side, paper trading is useful for learning the platform you're trading on (whether it's a broker or exchange) and being familiar with the buttons you'll press when trading for real 📈 📉 

This is relevant because some mistakes that can be made include:

  • Not knowing how to set a SL, especially in short trades

  • Not being clear on where to find margins, liquidation prices, etc., in futures

  • Confusing tickers (for example, mistaking SPCE with Elon Musk's Space X, which isn't publicly traded)

  • In crypto, managing funds between a spot account, margin, or earn account

  • As for the intangible side, this is where the key lies as to why, in my opinion, paper trading isn't a good test to determine if you're a good trader 🤡 

Trading is one of the most psychological activities in the world, where not only thoughts but also emotions play a huge role. When trading, we experience different feelings such as greed, fear, frustration, joy, depression, and euphoria. All of these directly affect our decision-making process 😵‍💫 

In paper trading, or fictitious trading, none of these emotions are part of the equation, so we don't experience them and can't draw conclusions based on them. You might be the best at trading USDT in a simulator, but you won't truly know if you're good at trading until you test your strategy with real trades 🫠 

I assure you, in paper trading, you could make a $1M USDT trade without hesitation, but if it were real money, not only would your hands shake, but you'd lose sleep and appetite… if you even dared to make the trade at all 😬 

While simulators are used in many fields, such as aviation or motor racing—and are indeed very useful—these fields don't involve emotions that significantly affect decision-making.

Conclusion

The answer to whether paper trading works should be: it depends. If you're looking to learn how to use the tools you'll later use to invest your own money, then absolutely, it's worth doing at least a couple of paper money trades ✅ 

However, if you're aiming to train for real trading, testing your knowledge and decision-making skills, the answer is no ❌ 

In fact, for the latter, you'll benefit far more from trading with $10 USDT in real life than trading with $10,000 USDT in paper money, because in the latter case, you'll take more risks than you would in reality. It's not real money, you didn’t work to earn it, and losing it won’t affect you emotionally.

P.S.: I've heard stories of people who accidentally activate paper trading and think they’re making real trades, only to find out that the money they "made" doesn’t actually exist because it was all within the platform’s simulation mode 😭 So, always pay attention to what mode you're trading in!

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