Bitcoin Takes A Dive & Altcoins’ Drop Hard, But People Are Still ‘HODLing and Not Selling’

BTC price goes down to about $55,600 and Ether as low as $1,930 as 366,073 traders get liquidated for $2.02 billion. But the crypto market is already recovering the losses.

Historically, April is one of the best months for Bitcoin’s price, however, the beginning of the month is anything but so.

Today, the price of Bitcoin took a fall to $55,600 and is still not looking done with the correction. In tandem with BTC, the majority of the cryptocurrency market has gone down with it too, which has been enjoying an onslaught of bulls while the leading cryptocurrency consolidated.

Down 5% to 20%, Ether is back at $1,945, XRP near $0.880 with FIL, UNI, DOT, XLM, TRX, BTT, IOTA, BSV, AAVE, XTZ, ATOM, KSM, ENJ, STX, DENT, and UMA recording double-digit losses.

As a result, the total market cap, which surged past $2 trillion for the first time this week, is now near $1.90 trillion.

However, the market hasn’t topped as Ki-Young Ju, CEO of data provider CryptoQuant, points out people are holding and not selling their BTC.

“Are we in the market cycle high? No. When the market reaches its peak, everyone deposits BTC to exchanges to sell. The number of inflow addresses across all exchanges was at its highest in 2018 Jan, while it hit a three-year low a few days ago.”

And bitcoin shorts continue to be punished.

Overeager and overleveraged longs, however, aren’t unaffected. As a matter of fact, the degen traders are the reason Bitcoin sees pullbacks time and again.

In the past 24 hours, over $613 million Bitcoin positions have been liquidated, as per Bybt. In total, 366,073 traders have been liquidated for $2.02 billion.

Following this, funding rates on Bitcoin perpetual contracts have gone down some, with the highest on Huobi at 0.1051%.

Long Bitcoin, Short U.S. 5 Year Treasury

In other news, Bitcoin bull Mike Novogratz is shorting the five-year Treasury as a hedge against policymakers pulling back their monetary support, saying, “Everyone long bitcoin should be short the five year.”

“I’m short a lot of interest rates,” Novogratz, chief executive officer of Galaxy Digital, said in a Bloomberg Television interview.

“To me, being short the five-year part of the yield curve is a great hedge for any portfolio, crypto or non-crypto.”

U.S. 5 Year Treasury yield is currently at 0.866%, down from 0.97% last week. The yields on these bonds have been rising since last August when it was at 0.193% but still nowhere near the 9.52% in late 1988.

The billionaire investor, who is a former partner at Goldman Sachs, further said in the interview that the price of the assets is rising for the very same reason, central banks relentlessly printing money.

This week, the total cryptocurrency market capitalization hit a new all-time high above $2 trillion, and according to Novogratz, we can easily rise twice as much this year.

“We’re up to 0.5% of global wealth in crypto, and it will be 1% by the end of the year.”

While bullish on crypto and short on bonds, Novogratz is also betting on Facebook in anticipation of the social media giant introducing the Novi digital wallet this quarter. “All of a sudden, you’ll have 2.4 billion people connected to this crypto space,” he said.

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Author: AnTy

62% of Clients Willing to Switch Financial Advisors to Know More About Bitcoin: NYDIG Survey

62% of Clients Willing to Switch Financial Advisors to Know More About Bitcoin: NYDIG Survey

“Unprecedented client demand for advisors to offer access to Bitcoin,” says bitcoin trading and custody service provider subsidiary of Stone Ridge Holdings Group.

NYDIG, the subsidiary of Stone Ridge Holdings Group, revealed in its latest financial advisory survey that there is a high demand for advisors to offer Bitcoin access.

22% of the financial advisors’ clients own Bitcoin, while 2.5% hold BTC with their advisors.

The bitcoin trading and custody services provider survey revealed that 82% of clients expect their advisors to be knowledgeable sources about Bitcoin as an asset class. Still, only 21% of clients have actually brought it up.

“Understanding this gap and closing it is critical,” states the report.

Interestingly, 62% of clients said they would switch financial advisors to advice about the leading cryptocurrency. Client attitudes are shifting as an estimated more than 1 in 5 financial advisory clients already own Bitcoin.

“The increasingly widespread adoption of Bitcoin has perhaps caught many advisors by surprise, and few manage Bitcoin for their clients today.”

The poll was conducted on Jan. 26-27, 2021, among a national sample of 2,082 US consumers. And the respondents want their advisors involved, with 65% saying they wish they knew more about the trillion-dollar asset.

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Author: AnTy

Canadian Singer, The Weeknd, Teases About A “New Song Living in NFT Space”

Canadian Singer, The Weeknd, Teases About A “New Song Living in NFT Space”

The Weeknd is ready to join in on the NFT mania.

Late on Friday, the singer teased about a new song on Twitter that will be released in a non-fungible token (NFT) format.

“New song living in NFT space. coming soon…” tweeted Canadian singer-songwriter. No other information has been shared so far.

He is not the first artist to try out NFTs; everyone has been hopping on this trend this year and making a fortune. Kings of Leon became the first band to release their latest album with an NFT, and Grimes sold a collection of NFTs for about $6 million. Many others like Elon Musk, Jack Dorsey, Banksy, Paris Hilton, Lindsay Lohan, basketball player Josh Hart, a Los Angeles pizza shop, toilet paper brand Charmin, and Taco Bell have also been testing NFTs out.

This NFT comes on the heels of The Weeknd’s breakout moment, ‘House Of Balloons’ mixtape arriving on streaming services in its original form for the first time, to mark 10 years since its initial release.

According to Kris Marszalek, CEO of crypto exchange Crypto.com (CRO), which has launched its own NFT marketplace, “This is the perfect time for NFTs to actually go mainstream” in the current culture of influencers who operate online.

According to the exchange’s recent study, it took more than a decade for the crypto industry to reach 100 million users, about 1% of the digital population. However, Marszalek expects the next 100 million milestone to be achieved a lot quicker.

“Going from 100 to 200 million is going to be much, much faster than going from, you know, 50 to 100 [million],” he said in an interview.

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Author: AnTy

Vitalik Buterin: EIP1559 Will Make Ether “Ultrasound Money,” Scaling is “Coming Very Soon” too

Ethereum co-founder isn’t concerned at all about the chain split due to the proposal. Also, a PoS chain is already here and running; it just doesn’t have sharding because the priority is currently the merge.

Ether is seeing some red today, much like the broad crypto market. Still, it is trading above $1,750, up nearly 140% YTD. However, the big thing is the upcoming upgrade, EIP 1559, that the market believes isn’t priced in yet.

The proposal is facing some pushback from miners, some of them even come together to attack the blockchain, but the market isn’t really concerned. This is because of the multi-billion decentralized finance (DeFi), especially the stablecoins, which collectively now surpass 56 billion in supply, built on the second largest network, as shared by Arthur of DeFianceCapital on “UpOnlyTV” recently.

Ethereum co-founder Vitalik Buterin isn’t concerned either, as he explained on The Tim Ferriss’ Show.

When asked by AngelList founder Naval Ravikant who is bullish on crypto and DeFi, if there’s a possibility that some miners and people will stay on Eth1 instead of Eth2, Buterin said, “the risks are much lower.”

Buterin attributed being very open about proof-of-stake and sharding from the first day as the big part of the reason. Not to mention, the market has gone through it already with Ethereum Classic (ETC). He said,

“Why stay on the chain where the core developers and lots of people are eagerly expecting a proof-of-stake change if you can just move on to a platform already that accepts your values? So I think that was one of the factors that did actually end up making the Eth2 transition a bit more secure.”

According to him, Ether is all about having more scalability which is going to deliver great environments for Ethereum users and everyone is roughly on board with the idea.

More Direct Connection Between Users & ETH’s Value

Ethereum Improvement Proposal 1559 was accepted a week back to be included in the London hard fork scheduled for July.

“It basically creates this more direct connection between people using the Ethereum blockchain and ETH having some value,” described Buterin.

He further explained that the proposal redesigns how the transaction fee market works, which means the majority of fees, instead of going to the miner or corporate who creates the block, would get burned. “It would just literally get deleted out of existence.”

“If demand to use Ethereum is high enough, then there would actually be more ETH being destroyed than is being created,” says Buterin adding, it would make Ether “ultrasound money” to Bitcoin’s sound money.

Before the London hard fork, however, the Ethereum Proof-of-Work (PoW) is undergoing a mainnet upgrade, called Berlin, on April 14, 2021.

A backward-incompatible fork will require updating the software to continue to follow the mainnet. As such, stakers are required to upgrade their Ethereum PoW nodes before April 14, 2021, and if you run the Pyrmont testnet, you must upgrade your Goerli nodes before March 17, 2021, shared developer Danny Ryan.

PoS is Already Here and Running Stable

While EIP-1559 would cement Ether’s economic value within the Ethereum platform, the big thing that would change the network and the market is eagerly awaiting is ETH 2.0, which will give the network 100 times improvement over the current processing.

While the Beacon Chain, Phase 0 has been launched with 3.2 million ETH deposited for staking, the full transition will take time. This multi-step approach is taken to “give proof-of-stake sometime to prove itself before the entire ecosystem is asked to upgrade over,” said Buterin.

Talking about the ETH 2, Buterin said, “there’s already a proof-of-stake chain. It does not yet have sharding, but the proof-of-stake system is running. The thing that has not yet happened is the event that we call the merge,” where the existing activity on Ethereum will be fully moved over from the proof-of-work chain to the proof-of-stake chain which would make PoW irrelevant.

The PoS not only exists but has been running stable ever since its launch, and “at some point fairly soon, we are going to actually go and merge all of the proof-of-work activity onto it,” he added.

As for sharding, Buterin said there are prototypes of parts of it, but they are prioritizing the merge rather than sharding because of rollups which still provide 100x factor scaling. Buterin said,

“So rollups are coming very soon, and we’re fully confident that by the time that we need any more scaling of that, sharding will have already been ready for a long time by then.”

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Author: AnTy

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited

“Defi has incredible potential,” says Mark Cuban but cautions that much like derivatives, “risk never leaves the system” here as well.

Ethereum is notorious for its extremely high fees when the network activity amps up.

In January, with ETH and DeFi tokens enjoying an uptrend and offering buy the dip opportunities, too much activity is making the platform costly to use. Popular DEX Uniswap, which has long been the biggest gas guzzler, has spent $28.3 million in gas in the last 30 days.

“The high gas costs are a direct result of *huge demand for trading on Uniswap,” said Hayden Adams, the creator of Uniswap, earlier this month when the fees skyrocketed yet again.

“Scaling is a huge problem. It absolutely sucks small transactions are sometimes priced out during volatility.”

But it looks like it’s not only the smaller users that are feeling the brunt of the hefty fees; even the billionaires are complaining. This billionaire, is none other than crypto skeptic Mark Cuban.

Cuban mentioned that gas was always an issue when Haralabos Voulgaris, Head of Quantitative Research at Dallas Mavericks, suggested there being real value in sending money over a decentralized, permissionless network. Cuban feels,

“Except the gas is always an issue. Just the cost of moving crypto to AAVE is crazy expensive, and the number of non crypto options will increase.”

With the Shark Tank investor who finds more worth in bananas and compares crypto trading with the dotcom bubble,  name dropping popular DeFi project, AAVE got the CT excited AAVE 10.31% Aave / USD AAVEUSD $ 140.95
$14.5310.31%
Volume 509.28 m Change $14.53 Open $140.95 Circulating 12.2 m Market Cap 1.72 b
8 s Even Billionaires Complain About the High DeFi Uniswap Fees; Aave Users Get Excited 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
.

“One of the most high-profile billionaires trying out DeFi. I am liking this trend,” noted one such DeFi investor.

However, just because Cuban publicly doesn’t find worth in crypto doesn’t mean he isn’t trying things out, as he responded,

“I don’t think people realize I try to test and use all this stuff and have for years. I still have crypto from the early days of coinbase. I’ve never sold anything.”

As for decentralized finance itself, Cuban says, “DeFi has incredible potential.” Still, according to him, much like derivatives, “risk never leaves the system” as it faces the risk of a dominoes-like collapse. Cuban said on the prospect of Defi fixing the problem of underbanked,

“It’s a long way off for the unbanked. Most deal with cash or lack compute power so they need intermediaries. That’s costly. As DeFi grows away from overcollaterization, it will be interesting to see if access expands or contracts.”

But here, the CT takes over and points out that while “the system is only as strong as its weakest link.” We do, in fact, need better insurance models; the missing point is “unlike tradFi, DeFi is a perfectly transparent system that allows you to measure risk in real time,” said Santiago R Santos, a partner at Parafi Capital.

The DeFi space has grown to over $20 billion in total value locked (TVL) as the DeFi project continues to grow and rise in value. This week, the top US banking regulator actually talked about the opportunities of DeFi and regulators needing to be ready for it.

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Author: AnTy

Genesis Report Shows Investors’ Varying Views on Bitcoin’s Value By 2030

Much has been said about Bitcoin and its recent price rally. The asset’s performance has drawn praise and criticism alike, with multiple speculations floating around on what could happen soon.

While proponents believe this is the beginning of a march towards a six-figure valuation, detractors claim that it is just another bubble waiting to drag investors down. However, a new report shows that many investors are feeling more conservative in their outlook towards it.

A Great Year for Investors

Genesis Mining published its Bitcoin Investor Prediction for 2020. The report shows a varying view of what investors expect to happen to BTC. While some investors are bullish on Bitcoin’s long-term potential, others remain conservative with their predictions.

Genesis Mining started on an explanatory note, giving reasons why Bitcoin has rallied so much in 2020 despite the pandemic. The firm highlighted three reasons: investors’ desire for a safe haven asset, increased institutional adoption, and the decentralized finance (DeFi) market growth.

Genesis Mining also sought the opinion of other Bitcoin investors. The goal was to gain insights into why and how these investors think. Questions asked included their investment level, when they decided to join the Bitcoin market, and why they chose to take the plunge.

Not So Bullish on Long-Term Price

While these questions provided different insights into who the investors were, their price predictions were quite startling. Despite the optimism surrounding Bitcoin’s ability to blitz through alternative assets in the coming years, only 17 percent of surveyed investors expect BTC to surpass $50,000 in value by 2030.

As Genesis’ report showed, there was no visible consensus concerning where Bitcoin’s price will be in the next decade. However, about 16 percent of investors see Bitcoin oscillating around the $10,000 to $20,000 price range.

In general, only 50.2 percent of investors believe that Bitcoin will have risen above the $20,000 mark by 2030.

Those who held incredibly bearish positions gave several reasons for their views. These included the threat of stringent regulations and a possible ban on Bitcoin’s use. They also mentioned reduced market hype and the possibility of CBDCs replacing BTC.

The bulls believe increased adoption and declining trust in traditional currencies would be instrumental to Bitcoin’s rise.

Such a disparity also appears to be the distinction between this rally and the 2017 bull’s run. Investors are more realistic in their predictions than blindly thinking that the gravy train will keep moving.

While the opinions on Bitcoin’s exact value varied, there was more consensus about whether it is the best asset class.

As the Genesis report showed, 66.3 percent claimed that the asset is a better investment option than the dollar. 52.3 percent believe that the asset will bring higher returns than real estate, and 54.5 percent claim the asset beats the United States stock market.

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Author: Jimmy Aki

This Altcoin is Beating Bitcoin With its 2020 Gains & Development Activity

It was mid-August that LINK set its all-time high at about $20. After over a 62% drop in the subsequent month’s price, the digital asset started pacing up a bit.

Just a couple of weeks back, we were around $15.7 only to get down to $13 today. The latest LINK price decline coincides with the percentage of LINK supply held by the top 10 largest whale addresses. The whale supply first started declining in November and continues into December.

Simultaneously, the network growth in terms of new addresses created has picked up, as per data provider Santiment.

Still, among the top digital assets, LINK is the biggest gainer with about 630% gains YTD compared to Bitcoin’s 167%, Ethereum’s 355%, and XRP’s 217% year-to-date performance.

However, in the past 30-days, LINK recorded 12% greens only while falling 8% in the past week.

Like the price, LINK is ahead of Bitcoin in terms of daily activity rate, although ETH development activity makes it the dominant project.

image1
Source: Santiment

The popular decentralized oracle network works as middleware — a bridge between smart contracts and the outside world while providing a security framework for protecting against any single point of failure.

Chainlink recently revealed that its platform enabled 77 different smart contract use cases. Chainlink offers Pre-Built Decentralized Price Feeds, Verifiable Random Function (VRF), Modular External Adapters, and several additional oracle services.

The project offers developer tools to deploy various oracle networks and solutions to implement highly-technical smart contracts,

“particularly those that execute based on market data like FX rates, interest rates, asset prices, indices, and more.”

Chainlink’s solutions are also used to support real-world assets, tokenized portfolio management, credit default swaps, bonds, synthetics, and futures.

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Author: AnTy

ECB Experts Maintain a Cautious Approach to Digital Euro Development

The European Central Bank (ECB) has been talking a big game about its forthcoming digital euro, particularly considering its functionality.

However, the agency remains resolute in its stance that it shouldn’t rush an asset and instead move with caution.

Synergy is Required for Optimal CBDC Performance

Earlier this week, several experts from the ECB agreed that a cautious approach would be the best way forward considering the digital euro.

In a panel tagged “Upgrading Money to the Digital Age: Introducing Digital Euro,” participants argued that the primary goal would be to form a consensus on the digital euro and the form it should take.

In the panel, Austėja Šostakaitė, a Market Infrastructure Expert at the ECB and a former Senior Economist at the Bank of Lithuania, explained that the ECB would not be considering a digital euro until the middle of 2011. She wants the ECB to focus on solving the most critical questions on introducing the asset into the European financial ecosystem and how to collaborate it with commercial bank money.

Carl Andreas Claussen, an advisor to the Swedish Riksbank, also explained that the Riksbank is currently working on a proof-of-concept for the e-krona. However, he highlighted that a launch for the asset is “four to five years away.” Claussen highlighted,

“There are some legal questions and this is such a big issue that we cannot decide on this. We need some political backing. We suggested to the parliament that they should have an expert committee looking at this.”

Top ECB Brass in On Board

All opinions appear to be in line with the official stance of the ECB. While it first announced its digital euro in September, the agency has made it clear that it wouldn’t be rushing development for the asset. In an online panel from November 12, Christine Lagarde, the agency’s President, explained that it had chosen to focus on the proper implementation.

Lagarde pointed out that the ECB had set a consultation panel to explore the potential of a CBDC. She added that the panel would give a consultation report by January 2021. This report will help the bank make decisions on whether to launch – and what course to follow. While Lagarde highlighted that she believed a digital euro would come to light, she also understood that everyone needed to agree on the right implementation format.

The President has been an ardent supporter of Central Bank Digital Currencies (CBDCs) for a while. Earlier this week, she explained in an article that the digital euro would help bring the Eurozone into the digital financial age.

Lagarde added that the digital euro could complement cash and ensure seamless access to central bank money. It would surely ensure the maintenance of monetary sovereignty – especially in a future where the use of physical cash declines.

Reuters also reported last week that Olaf Scholz, the German Finance Minister, had called on the ECB to expedite the asset’s development. Scholz, an ardent critic of private cryptocurrencies, explained that there is already significant demand for digital payments across the European Union. As he believes, it is time for the ECB to move swiftly towards developing its CBDC.

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Author: Jimmy Aki

Ripple Getting Rich on XRP Price Jump & Selling the Surging MoneyGram Shares

A year later, Ripple is selling about one-third of its stake in the payments company MoneyGram.

San Francisco-based fintech startup is selling up to 4 million shares, which means roughly 33.3% of its stake, as per the filing with the US SEC on Friday.

In Nov. 2019, Ripple had made a $50 million investment in MoneyGram.

After the sale, Ripple would still own nearly 4.45% of MoneyGram, with the ownership of 3.22 million shares.

Ripple also has the warrant to buy up to 5.95 million additional shares at the predetermined price, which brings its stake at MoneyGram at around 11%.

In June 2019, when the initial investment was originally announced, Ripple bought MoneyGram’s shares at $4.10 each, which was at a “significant premium” to the market share price of $3.18 at the time.

However, currently, MoneyGram shares are trading at $7.42, rallying almost 175% in the past two months, which could profit Ripple.

The news of Ripple taking off some profits from cashing out its stake in MoneyGram came not long after it was revealed that Ripple gave yet another $9 million to the company in Q3 2020 for using its digital asset XRP.

Besides selling the stake in MoneyGram, Ripple, which still has the dominant ownership of XRP, is also benefiting from the huge surge in the price of the digital asset.

Recently, the company started buying back XRP as well — $46 million worth of XRP in Q3 2020.

The third-largest cryptocurrency is currently trading above $0.60, back on the rise today after falling under $0.50 on Thursday.

Before the big drop along with the rest of the crypto market, XRP went as high as $0.78, last seen in Sept. 2018. Now, on the weekend, the digital asset seems to be making another attempt at $1 as the cryptocurrency market enjoys the greens.

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Author: AnTy

Nouriel Roubini and Peter Schiff Can’t Stop Talking About Bitcoin Day In, Day Out

2020 has been all about people coming out of fiat’s influence and finding the importance of Bitcoin. But among these high-profile names, celebrities, legendary investors who have found love for Bitcoin do not include Nouriel Roubini and Peter Schiff.

These two people have been bashing Bitcoin for a decade now; either they like to be wrong way too much or are just holding Bitcoin secretly while keeping up with the appearances.

Like a broken record, they started calling names to the leading cryptocurrency yet again as BTC took a drop of 17% to nearly $16,300. Since October, the loss came after a new 2020 high of $19,500, a rally of more than 85%. Even now, BTC is up 135% YTD.

In his latest attempt to do… something, Peter Schiff, a gold proponent, attributed this rally to CNBC promoting Grayscale and covering Bitcoin non-stop positively, which led “greedy speculators” to jump in.

Meanwhile, Nouriel Roubini felt the need to share, yet again, that it is not a currency. A highly volatile store of value, “Bitcoin has no role in institutional or retail investors portfolios,” he said.

“In every bubble those who don’t participate always look like fools for missing out. It’s only after the bubbles pop and the air comes out that the real fools are exposed,” said Shiff in another tweet.

If only he would have just put his investment in Bitcoin, like his son, if not done already, that is, instead of seeing these declines after explosive rallies as a way to criticize bitcoin, he would have been buying the dips and accumulating wealth.

According to him, once bitcoin’s bubble deflates, “the real gold remains the best safe haven and store of value left standing.”

He didn’t share with his followers that ever since making a new all-time high above $2,000, the price of the precious metal has declined more than 13% to $1,800.

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Author: AnTy