Investing

Abra – This week in crypto for March 30, 2021

Now you can Buy, Trade, Earn and Borrow in ONE Simple, Trusted App!

What a week it’s been for Abra.  Abra is now the most complete, easiest to use, trusted app for all your crypto needs. The launch of Abra Borrow is a huge milestone for the crypto industry.  Now with Abra you can:

  • Buy Bitcoin, Ethereum and Trade any of up to 125 crypto currencies
  • Earn up to 10% interest on USD, Bitcoin, Ethereum, and other top crypto currencies
  • NEW! Now Borrow USD against your crypto holdings with rates as low as 3.95%
  • Deposit from any bank account in the world

Last week we announced Abra Borrow, the latest offering from your trusted crypto bank. Abra Borrow allows you to continue to hold your crypto (BTC and ETH) and use it as collateral for a short-term loan. You set the terms we provide the US Dollars.

There are no fees associated with the Abra Borrow service, it’s easy to get set-up and running in a couple of minutes — the application is handled right in the Abra app — we don’t check credit scores, employment status, etc. All that matters is that you have enough collateral (your crypto) for the size of the loan you need. From there, you can choose your own repayment terms ranging from 6 months to 24 months. 

 

Market update

Bitcoin continues its sideways movement within a wide price range having been at its current price level for at least one tick in six of the past seven weeks. At the same the 10-20% weekly price range is wide enough to provide short term profit opportunities to smart day traders.

There was strong belief we would see a lot of sell pressure at the end of last week as a record $6 billion of bitcoin options contracts were set to expire on Friday. Often, in advance of option expirations (options expire on the last Friday of the month) large traders and institutions sell holdings prior to the deadline in an effort to get to the “max pain” market price for options holders and the best price for options sellers. While the BTC price did dip to near the $50,000 level, it has since recovered and never quite made it to the max pain of $44k which would have optimized losses for certain retail investors.

As we’ve discussed many times in our weekly newsletter and Money Talks commentary, a Bitcoin price pull back of up to 30% off the previous all-time-high is often just a wind-up for the next big move to the upside. It also gives a great chance to buy the dip (although we don’t give investment advice at Abra.)

Ethereum is clearly following Bitcoin right now.  A breakout of Ethereum on its own could point to a major altcoin move. I’m watching for exactly that.

WAXP (up 295% in March and over 800% for the past year) remains my favorite alt coin right now and continues to ride the NFT wave powering a big volume of non Ethereum based NFTs.  

 

Pictured here is a sampling of NFTs created by Atari in partnership with WAX now selling on collectors’ markets including Atomic Hub. I like the Tempest Card. One of my favorite games!

Other movers on the daily chart today:

  • Metal is up 180% in 24 hours 
  • Steem is up 34% in 24 hours 
  • Verge, up 23%, in 24 hours

 

Fidelity applies for a bitcoin ETF

Bitcoin ETFs in the USA are en-vogue again. Over the past few years, several firms have applied for approval to launch a bitcoin ETF. Every application has been rejected by the US SEC on the grounds that bitcoin is still prone to market manipulation, liquidity constraints, and custody-related issues. All provably false today.

What’s interesting about the Fidelity news is that up until now, the bitcoin ETF proposals were floated by smaller, specialized crypto investment firms. But Fidelity is about as main street, retail investor-oriented as you can get. Not only does Fidelity have a different size, but their Fidelity Digital Assets group is exactly the kind of group that the SEC wants to trust…. Heavy on compliance, lots of lawyers and no risk taking.

Three years ago I was super excited about the idea of a Bitcoin ETF. While I think an ETF approval would move the price of Bitcoin much higher, I honestly don’t care about the ETF anymore. The Bitcoin space has moved on and smart money doesn’t want a product that is only tradeable 20% of the time. Bitcoin never sleeps!

 

VISA settling purchases in USDC stablecoins

In super cool news for the future of global payments, Visa announced that it will support card transactions denominated in USD that can settle via USDC bypassing member acquiring banks.  This means that global card issuers can settle with Visa merchants without having to go through a banking partner as they do today.

In the near future if people can hold USD stablecoins and easily use them to pay for everyday items with zero friction, then other crypto-related services like getting your paycheck in stablecoins and maintaining an interest account in stablecoins (this is already available through Abra) will become a no-brainer.

 

Peace and Love,

Bill

 

 

Disclaimer: Abra Interest Accounts are issued by Prime Trust, a Nevada Chartered Trust Company. Rates for Abra Interest Accounts are subject to change. Digital currencies are not legal tender, are not backed by any government, and Abra Interest Accounts are not subject to FDIC or SIPC insurance protections. Any opinions, news, research, analyses, prices, or other information provided here is a general market commentary and does not constitute investment advice. Abra does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. Abra will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

 

Bill Barhydt