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July 21st is an expected date for many investors and speculators in the cryptocurrency market. Indeed, today is the day that Jack Dorsey, Elon Musk, and Cathie Wood will take the stage at The ₿ Word, an event that seeks to “demystify and destigmatize mainstream narratives about Bitcoin”, all primarily among institutional investors.
Many are expecting particularly positive news at this discussion. It must be said that all three players in this conversation have a huge pecuniary stake in the success of bitcoin and cryptocurrencies in general. As bitcoin and Musk’s pet project, Dogecoin, have both slipped in recent months, could this event help reverse the trend?
The ecological consequences of cryptocurrency mining will certainly be central to this conversation. Let’s recall that Musk announced he would accept bitcoin payments for Tesla vehicles, before backing off “as long as” at least half of the energy used is green. If the markets were shaken by the ban on the mining activities in China, it must be said that it is in this same country that the most polluting energy is being generated. The most recent figures on the ecological footprint of the activity following the gradual reorganization of miners outside of China could therefore prove particularly encouraging.
This discussion will be available to watch live starting at 2:00 p.m. Eastern time under this YouTube link.
Speaking of this migration out of China, we notice this week that the recovery of the global hash rate pointed toward the blockchain continues to rebound. This is a technological migration of rare magnitude that proves day after day all the resilience of the network and its actors. It must be said that it pays to be a bitcoin miner today! Here’s how the hash rate has evolved since the Chinese government imposed restrictions:
We were talking about the trio of investors about to try to boost bitcoin’s popularity today. While he won’t be sharing the stage, it goes without saying that Michael Saylor, CEO of MicroStrategy, will be among those interested. His company holds over 105,000 bitcoins. In times of market uncertainty, will he want to sell some of his BTC treasury in an effort to protect his investments? In an interview with Natalie Brunell on the Coin Stories podcast this week, it’s safe to say he was very clear on the subject. He began by drawing a parallel between bitcoin and giant tech companies.
“You would like to have a big tech network that has all the dominance of Apple or Google or Facebook but without the company attached. So Bitcoin is Big Tech without the company”. He adds that “Bitcoin allows users to have the huge tech network they desire, with all the dominance of Google or Facebook or Apple but no company attached. What you get is a pure big tech network. “
Asked if he would feel a selling obligation if the price were to slip below his average purchase price, he simply said no. “It took the human race 100,000 years to understand fire. It was a slow process. It took humanity around 20-30 years to figure out electricity, But BTC will not take 30 years. I believe information spreads faster, but it could take another decade.”
The few moments under $30,000 per bitcoin were seen by many as a perfect buying opportunity. This was particularly the case for Hong Kong-based Alameda Research. Sam Trabucco of the firm revealed on Tuesday that the firm bought bitcoin during the last price drop, adding that the company’s cautious strategy to go long BTC/USD surfaced out of at least three “recovery” catalysts: a potential end to the ongoing crypto FUD (China ban, Grayscale epic unlock, etc.), the stock market’s intraday recovery, and weaker long liquidations in the derivatives market.
On the Rivemont Crypto Fund side, we have reinforced our defensive approach in the short term; at least until major resistance gives us initial clues to a reversal. We are certainly encouraged that bitcoin has returned to its recent consolidation channel after yesterday’s dip below $30,000. While we remain fully optimistic about the asset’s future, we are waiting for some quantitative data to turn green, while focussing on loss control in the event of a new bearish wave.
Rivemont Investments, manager of the Rivemont Crypto Fund.
The presented information is as of July 21st, 2021, unless otherwise indicated and is provided for information purposes only. The information comes from sources that we believe are reliable, but not guaranteed. This statement does not provide financial, legal or tax advice. Rivemont Investments are not responsible for any errors or omissions in the information or for any loss or damage suffered.
