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⚡Bitcoin Hits $44,000 Peak🥨

Croxroad

07 Dec 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🪁 $270 Million in Losses

Guess what happened in the crypto world in the last 24 hours? Liquidations, and a lot of them – around $269 million worth. The big losers in this were mostly folks dealing with Bitcoin (BTC) and Ethereum (ETH), according to Coinglass. BTC took a wild leap to a new high of $44,313, and that move alone cost those betting against it a whopping $174.91 million. Ethereum's jump to $2,300 didn't spare the short sellers either, hitting them with a $34.21 million loss.

Now, where did all this drama unfold? Well, more than 90% of the liquidations went down on OKX, Bybit, Binance, and Huobi. The heavyweight here was OKX, closing a massive $8.86 million BTCUSDT order.

Why did BTC make such a leap? Speculation was rife about the approval of spot Bitcoin ETF applications, fueling the cryptocurrency's rise for weeks. As I'm typing this, BTC is holding strong at $43,990.

And this isn't the first rodeo. Just a few days ago, when BTC crossed $41,000, traders had to say goodbye to nearly $193 million. Binance took the biggest hit then. The crypto market – always keeping us on our toes!

⤴️ Bitcoin's 141% Price Increase in 2023

Guess what? Bitcoin, the king of all coins, is killing it in 2023! According to Glassnode, a fancy on-chain data provider, Bitcoin is outshining traditional assets like gold and stocks. In the year so far, Bitcoin's value has shot up by a whopping 140%, leaving gold in the dust. The coin is currently strutting its stuff at an 18-month high.

Here's the cool part – most Bitcoin holders are now rolling in profits. The majority of them are back in the green, cashing in on those gains. With Bitcoin trading above the True Market Mean Price of $31,000, many folks have not just recovered from the 2022 bear market but are sitting pretty with some serious gains.

For the long-term holders, it's especially sweet. The proportion of their holdings in profit has skyrocketed from 56% to 84%, breaking the all-time average value. That's some serious moolah for those who have been in it for the long haul.

And get this – short-term holders are also laughing all the way to the bank. Over 95% of their holdings are sitting pretty with a cost basis below the current spot price.

But wait, there's more! Bitcoin's exchange volume is booming, indicating a growing interest from investors looking to trade, accumulate, and speculate. And here's a little hint – with U.S. regulators possibly making decisions on ETF applications in January 2024, institutional investors are quietly increasing their Bitcoin holdings. Looks like everyone wants a piece of the Bitcoin pie!

☝️ Index Investing

Alright, so check this out – a cryptocurrency index fund is like a superhero investment that holds a bunch of different cryptocurrencies, and it's fueled by a pool of money put in by investors. Think of it as a squad of cryptocurrencies hanging out together. Now, instead of going all-in on just one coin, folks can invest in this fund and spread their risk across a bunch of different ones.

Here's the cool part: you've got options. You can either go for exchange-traded funds (ETFs) like Bitcoin Futures or spot ETFs, or dive into indexes like the DeFi Pulse Index. It's like playing it safe by not putting all your eggs in one crypto basket.

Now, the people holding this index get a say in the rules and recommendations for the cryptocurrencies in the mix. They can vote on what they think is a good move for the underlying protocols without jumping through hoops. It's all part of this idea of 'smart indexes' that let you keep the perks of owning the tokens without the hassle.

The beauty of it is that since the index fund copies what's in its benchmark, you don't need a whole army of experts figuring out which crypto is the next big thing. It's like set-it-and-forget-it, but for crypto investments. Plus, by spreading the money across a bunch of different crypto procedures, you're not putting all your crypto dreams in one basket.

But, let's be real – it's not all rainbows and unicorns. Index funds still come with their share of risk, more than your grandma's government bonds or plain old cash. So, yeah, there's a chance you could lose some money, but hey, that's the crypto game for you.