First Mover: Ether Eyed as Value Play With Bitcoin Pressing $20K
 December 3, 2020  Everything you need to make sense of the crypto markets and beyond Sponsored By:  By the CoinDesk Markets Team Edited by Bradley Keoun If you were forwarded this newsletter and would like to receive it, sign up here. Bitcoin (BTC) +1.0% $19,424 Ether (ETH) +2.6% $614 (Price data as of Dec. 3 @11:34 UTC) TODAY:
Price Point Bitcoin was rising back toward the all-time high price of $19,920 notched earlier this week.
"So far, prices remain constrained, either with sellers unwilling to part with their coins at any lower price or buyers unwilling to take further bets on a rally," Matt Blom, head of sales and trading at the cryptocurrency-focused financial firm Diginex, wrote Thursday.
In traditional markets, European shares slid and U.S. stock futures pointed to a lower open after coronavirus-related fatalities in the country surged Wednesday to at least 2,760, the deadliest day since the pandemic began. Gold strengthened 0.4% to $1,838 an ounce.
Market Moves Those new to crypto, such as the institutional investors recently buying into bitcoin's "digital gold" narrative, might now be looking around for the next big thing.
With the long-anticipated arrival of the Ethereum 2.0 upgrade on Dec. 1, that could be the network's native token, ether. But analysts say ether should be judged on its own merits and not as a bitcoin replacement.
"I've always thought this digital asset space is huge – and it's not just bitcoin – because there are going to be different applications for different things," Raoul Pal, CEO and co-founder of financial media group Real Vision, said in Real Vision's documentary "Ethereum – An Investigation," which was released on Nov. 30. "I think of the two [bitcoin and ether] as having a very nice combined asset allocation."  Chart shows weakening but still strong correlation between prices for bitcoin and ether (CoinDesk Research) For Pal, an early bitcoin investor, the rationale seems even more plausible these days: As bitcoin's price hits a new all-time high, the number one cryptocurrency by market capitalization is now more expensive and thus potentially a riskier bet for new investors.
It can be expected investors are looking for a new opportunity in crypto at affordable prices. Given that ether is trading roughly 59% below its all-time high of $1,432.88, it is tempting to believe there's a bargain to be had. What's more, the Ethereum 2.0 upgrade to increase the network's scalability, security and energy efficiency has generated a lot of hype.
However, at least for now, analysts and traders who spoke with CoinDesk don't think ether will replace the FOMO over bitcoin.
"For institutional investors, they are buying BTC for the digital gold narrative," Ryan Watkins, senior research analyst at Messari told CoinDesk. "ETH just isn't in that conversation yet."
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 Looking Back, Moving Forward: Crypto's Most Influential in 2020
Each year since 2014, CoinDesk has identified the crypto community's "most influential" members. The community needed influencers to spread awareness, build confidence and set precedents for the digital currency industry to reach its full potential.
These evangelists broke through all the white noise and ushered in a new wave of enthusiasts into the space. To recognize their contributions, CoinDesk launched its "Most Influential" franchise to highlight individuals who moved the needle.
Over two days on Dec. 7-8, a special CoinDesk Live series looks back to the first list and takes stock of the industry's progress, and zooms forward to reveal CoinDesks' seventh Most Influential list to recognize the latest pioneers who helped take the industry forward. Watch CoinDesk Live: Most Influential 2020 on CoinDesk.com, YouTube and Twitter on Dec. 7-8.
Bitcoin Watch  On the left: bitcoin prices charted against the U.S. dollar index. On the right: bitcoin daily candle price chart showing recent trading range. (TradingView/CoinDesk) Bitcoin is locked in the range of $18,000 to $20,000 since Tuesday, having nearly doubled to a record price of $19,920 in the past eight weeks.
"Large sell orders near $20,000 and consistent dip demand have led to price consolidation, according to Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG. "If either side breaks, I believe we would see fireworks, especially to the upside."
Macro factors point to a continued bull run. The U.S. 10-year breakeven inflation rate, which represents how the market foresees long-term inflation, rose to 1.85% on Wednesday. That's the highest level since May 2019. The Dollar Index, which tracks the greenback's value against major currencies, is seen near 91.00 at press time, a level last seen in April 2018, according to TradingView.
The USD drop and rising inflation expectations typically force both institutions and retail investors to buy traditional store-of-value assets such as gold. This year, institutions have increasingly poured money into bitcoin, reinforcing its use as an inflation hedge. The trend may well continue, with Morgan Stanley predicting another 10% decline in the dollar over the next 12 months.
A breakout, if confirmed, would shift the focus to $20,300, where sizable open interest appears to be building in the options market. Alternatively, acceptance under $18,000 would expose the Nov. 27 low of $16,218. - Omkar Godbole
Read More: Worsening U.S. Dollar, Inflation Metrics Bode Well for Bitcoin's Continued Rally
Token Watch USD Coin (USDC): Visa may issue USDC credit card after adding Circle to "fast track" program.
XRP (XRP): Brad Garlinghouse, CEO of Ripple, provider of XRP-based payment network, walks back threat to leave U.S.
Ampleforth (AMPL): supply-rebalancing stablecoin launches on Tron, Pokadot and NEAR blockchains.
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