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Altcoin Season in December? - CRYPTO FRIDAY

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Altcoin Season in December? - CRYPTO FRIDAY

Fabian Klauder
Dec 4, 2020
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Altcoin Season in December? - CRYPTO FRIDAY

newsletter.defitimes.io

Hey DEFI TIMES community,

is it altcoin season yet? Well, if you take a look at the altcoin season index, the answer is definitely NO.

In fact, Bitcoin has such a strong momentum that small-cap DeFi tokens are still nowhere near their August high. I believe this is going to change very soon. Before we get into why let us first understand how this chart measures whether it is altcoin season. They define it as follows:

“A season is three months, so we looked at the performance of all Top 50 Coins over the last 90 days. The more Altcoins are up against BTC, the higher die Altcoin Season Index. If 75% of all Altcoins are up against Bitcoin over the last 3 months, it’s Altcoin Season!”

If you look at the altcoins season index chart since April 2017, you notice a clear pattern. Attention on altcoins and Bitcoin historically moves in cycles. Attention is focused on Bitcoin and not much else: institutional investors, macro trends, and inflation are the narratives.

These narratives could even dominate most of December. But remember: once people make some profit, they turn greedy and look for different alternatives than Bitcoin to make even more money. We have seen this pattern throughout 2017, and there is no reason why this shouldn’t be the case in 2021.

Don’t get me wrong. I’m not saying this is 100% the case. But there’s a good chance that altcoins could get some considerable momentum in December or January next year. 

If you don’t have exposure to mid/small-cap DeFi tokens yet, you are short. And there’s one rule to follow: never be short in a crypto bull market. ;)


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Stable coin regulation

Twitter avatar for @TheBlock__
The Block @TheBlock__
BREAKING: A group of U.S. Representatives has unveiled a new piece of stablecoin-focused legislation called the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act. Press release here:
tlaib.house.govTlaib, García and Lynch Introduce Legislation Protecting Consumers from Cryptocurrency-Related Financial ThreatsWASHINGTON—This week, Congresswoman Rashida Tlaib (MI-13), along with Congressmen Jesús “Chuy” García (IL-04) and Chairman of Task Force on Financial Technology Rep. Stephen Lynch (MA-08), introduced the Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act, which would protect consumers …
10:39 PM ∙ Dec 2, 2020
142Likes43Retweets

A bill has been proposed in the US, which requires stable coin issuers to get bank licenses first. This could be a massive threat to the whole ecosystem. A lot of crypto companies are still located in the United States. With this bill, there is no reason for any crypto company to remain in the US, as it clearly shows how the United States sees innovation in the financial sector. 

There are many questions unanswered. What does this mean for Tether? What does this mean for DAI/MakerDAO?

Regulators don’t seem to think through their bills. They see a threat; they try to ban it. I hope the US doesn’t continue this path in the future. But if they do, I see no way crypto innovation is going to remain in the US. It will move somewhere else.

VISA USDC

Twitter avatar for @AndrewDARMACAP
Andrew Keys @AndrewDARMACAP
Visa didn't use Bitcoin, but instead USDC on Ethereum... who would've thought?
forbes.comVisa Partners With Ethereum Digital-Dollar Startup That Raised $271 MillionAfter two years of work, Visa is opening up its network to USDC, a digital dollar created by Circle Internet Financial and issued on the public ethereum blockchain.
4:17 PM ∙ Dec 2, 2020
486Likes77Retweets

VISA is integrating USDC (created by Coinbase) for international transfers. As much as the Stable Act is bearish, this is hugely bullish news. VISA is finally waking up. They see how the world is going to change and act upon it. Congrats, VISA and Coinbase.

Yearn merges with Akropolis

Twitter avatar for @AndreCronjeTech
Andre Cronje @AndreCronjeTech
μα τον Δια! Yearn x Akropolis
11:52 AM ∙ Nov 30, 2020
606Likes83Retweets

Akropolis and Yearn merge development resources and can now benefit from both network effects. 

ETH 2.0 launched

On Tuesday, ETH 2.0 successfully launched as expected. There seemed to be no problems at all, and it is still running smoothly. I hope you all secured the network already! If you don’t have the necessary 32 ETH, you can check out decentralized staking services like Ankr (Stkr) or Rocket Pool!


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All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.

Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.


Some recent tweets

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DEFI TIMES @defitimes
PREDICTION: The term "MILLIONAIRE" will soon be replaced by "BITCOINAIRE" 🙏
11:24 AM ∙ Dec 3, 2020
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DEFI TIMES @defitimes
✅ Bullish Bitcoin ✅ Bullish Ethereum ✅ Bullish DeFi ✅ Bullish interoperability ✅ Bullish L2 ✅ Bullish all scaling solutions ❌ Bearish MMT
9:11 PM ∙ Nov 29, 2020
8Likes1Retweet
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DEFI TIMES @defitimes
Ethereum's hash rate is at ATH while ETH 2.0 is being launched! Thoughts?
Image
8:06 AM ∙ Nov 29, 2020
20Likes2Retweets

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Altcoin Season in December? - CRYPTO FRIDAY

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