Bullish Week: Overwhelming Bitcoin Buying Sends OI to May Level while Net Dollar Longs Surging

The bullish start of October continues this week as the price of Bitcoin went from $48,250 to as high as $56,645 on Friday. As of writing, BTC/USD is hovering around $55k.

With this latest pump in price, Bitcoin has yet again become a trillion-dollar asset class.

According to Chainalysis, ever since Bitcoin hit it’s low late in July, those holding at least 1k BTC have increased their holdings by 172k BTC. Meanwhile, institutional traders have acquired an additional 68k BTC.

Much like the leading cryptocurrency, Ether moved in tandem to start the week at $3,400 to hit $3,675 and is now trading around $ 3565. The overall crypto market cap also grew by more than 9.5% to above $2.4 trillion.

This past week, the biggest gainer in the crypto market has been SHIB which is up by 232%. Other big gainers include FTM (44%), ONE (37%), OHM (25%), BTT (21%), XRP (18%), DCR (16%), AXS 16%), and EOS (15%).

Q4 is looking primed for a significant price-performance with it being historically a bullish quarter combined with the possible upcoming approvals for BTC ETFs in the US, the stabilization of the Evergrande situation, and traditional giants like Soros Fund Management turning crypto-positive.

Institutional Demand

Despite the 14% uptrend in Bitcoin price, the funding rate is still not heavy, with the highest currently on OKEx at 0.0453%, as per Bybt.

Open Interest is also surging, having climbed to $19.15 billion, a level last seen in early May. In just over ten days, the OI has increased by about $6 billion. As reported, CME is particularly enjoying a heightened activity with OI on Bitcoin contracts sitting at $3.12 billion, the same as FTX and just behind Binance at $4.35 billion, as per Skew.

On Sept. 29, OI on the regulated platform CME was $1.47 billion. For Ether contracts, OI on CME currently at $830 mln is reaching for early Sept. ATH of $860.75 mln — but ranks at 6th place.

This significant increase in OI suggests “institutional demand has been the underlying driver of this move higher,” according to QCP Capital. Additionally, the “unusually large premium on CME indicates an overwhelming amount of outright buying.”

Premium on CME futures has been highest among the major exchanges when typically it is compressed due to the cash-and-carry spread trades that institutional players like to put on — buy spot vs. sell CME future.

This week, Senator Cynthia Lummis R-Wyo. also disclosed buying between $50,001 to $100,000 worth of BTC in mid-August, according to a filing. This, however, isn’t her first Bitcoin purchase, as she first bought it in 2013. She also disclosed buying Bitcoin worth between $100k-$250k in April this year.

Dollar Longs at 2-Year High

While crypto is euphoric, S&P 500 is merely up 2.14% this month and 17.14% YTD compared to Bitcoin’s 90% uptrend in 2021 so far. Gold is also green this month by 1.60% but still down by 7.27% year to date.

When it comes to the US dollar index, it is up 0.56% and 2.74% in this month and year, respectively.

US dollar net longs meanwhile have surged to their highest level in over two years. In the week ended Oct. 5, the value of the net long dollar position jumped to $22.89 billion, versus $16.37 billion in the previous week.

Traders are net-long on US dollar for 12 straight weeks after being short for 16 months, thanks to the Federal Reserve suggesting a possible tapering of its asset purchases starting November this year.

However, before the weekend, the dollar pushed back after data showed US non-farm payrolls increased by just 194,000 jobs last month, compared to the expected 500,000 new jobs.

“U.S. inflation data released next Wednesday may add to evidence that inflationary pressures are proving less ‘transitory’ than generally anticipated,” wrote Jonathan Petersen, markets economist at Capital Economics.

“Our view remains that this will push U.S. yields and the dollar a bit higher in the coming months.”

Bitcoin net shorts meanwhile increased to 1,518 contracts — largest since late July — from 883 the previous week.

Developing Countries Leading In Adoption

El Salvador, which continues to see growing bitcoin adoption, is now planning to invest some of the $4 million gains obtained from its Bitcoin operations to build a veterinary hospital, President Nayib Bukele said this week.

The Bitcoin Trust, which was authorized by Congress in August to facilitate BTC and USD transfers, now has a “surplus” of $4 million to its original balance of $150 million, said Bukele.

“So we decided to invest a part of that money in this: a veterinary hospital for our furry friends,” Bukele wrote on Twitter. The veterinary hospital would provide basic and emergency care services along with rehabilitation, he added.

Earlier last week, El Salvador became the world’s first nation to adopt Bitcoin as legal tender. According to BitMEX CEO Alex Hoeptner, Salvador is just the first one as he predicts at least five countries accepting the cryptocurrency as legal tender by the end of next year and all of them will be developing countries.

“Faced with an inherently unequal financial system, those who have the most to lose by continuing the status quo are acting in their self-interest to explore alternative options like Bitcoin.”

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Author: AnTy

Skybridge Capital Announces Intentions For Algorand (ALGO) Crypto ETF

Skybridge Capital Announces Intentions For Algorand (ALGO) Crypto ETF

Continuing his bullish stance on the future of blockchain-based assets popularly called cryptocurrencies, former White House Communications Director Anthony Scaramucci has asserted that the burgeoning industry is here to stay.

He also laid out his asset management firm’s intentions in a CNBC-covered interview.

SkyBridge Has $700 Million In Crypto Holdings

Popular crypto supporter Anthony Scaramucci is stirring the crypto waters again as he admitted that cryptocurrencies are becoming too big to be ignored.

In a CNBC special, Scaramucci announced that his alternative asset management firm SkyBridge Capital has so far racked up $700 million worth of virtual assets. The crypto bull also noted that the New York-based investment firm plans to expand its crypto offerings for interested clients.

According to the Skybridge founder, the company will launch a crypto exchange-traded fund (ETF) focused on the popular ‘Ethereum killer,’ the Algorand (ALGO) blockchain. Scaramucci noted that $100 million has already been generated for the new ETF venture.

Comparing crypto to the rise of taxi-hailing service Uber, Scaramucci said that the US Securities and Exchange Commission (SEC) might be fighting a losing battle. According to him, Uber triumphed due to the massive public backing it enjoyed.

“Before long, there will be 200 million crypto users in the United States.”

However, the SEC does not share this enthusiasm, and agency Chief Gary Gensler has repeatedly called out the nascent industry in the past. In a featured release, the former MIT instructor of blockchain technology noted that the crypto space was “rife with fraud and abuse,” asserting that regulating the space is the only means to ensure basic consumer protection.

SALT Conference Stirred Mixed Feelings

SkyBridge Capital has been on the front foot of crypto adoption, with the asset management firm organizing a series of blockchain-based conferences. One of such is Skybridge Alternative Conference or SALT. Hosted in New York early on Tuesday, hedge fund big wigs like Ray Dalio of Bridgewater Associates were in attendance.

Dalio noted the importance of “alternatives to cash,” pointing out that inflation was rapidly reducing purchasing power. According to him, these tools could help shore up the decline of cash and should be considered.

However, the billionaire investor noted that regulatory agencies might not be enthused about the emergence of these alternatives. Dalio said that government agencies would undermine the mass adoption of fiat alternatives like Bitcoin and may outrightly ban their use, thereby defragmenting the growing industry.

Meanwhile, Skybridge Capital is not deterred by the gloomy cloud hanging over the crypto industry and recently launched a non-fungible token (NFT) platform.

Noted in a Sept.13 release, Skybridge said the NFT platform would be called Flatter. The platform would enable users to buy sought-after collectibles from the emerging marketplace.

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Author: Jimmy Aki

UK Bank Standard Chartered Publishes Bullish Ethereum Prediction; ETH to $35k If BTC Hits $175k

UK Bank Standard Chartered Publishes Bullish Ethereum Prediction; ETH to $35k If BTC Hits $175k

There has been a great deal of talk about Ether’s ability to surpass Bitcoin as the biggest and most valuable cryptocurrency.

While Bitcoin remains atop the rankings, for now, British banking giant Standard Chartered has joined the ranks of financial institutions to post bullish predictions for the leading altcoin.

Ethereum’s Unique Position & ETH 2.0’s Imminence

Earlier this week, Standard Chartered released an investor guide for Ethereum. The company shared its belief that Ether could continue to grow significantly – so much so that it could surpass Bitcoin.

As the report explained, Ether’s growth will come from increased adoption of the Ethereum blockchain. Standard Chartered likened the second most valuable cryptocurrency to a “financial market” that supports transactions like asset exchanges, insurance, and lending. On the flip side, Bitcoin is more of a “currency” that will simply focus on value exchanges and payments.

Given that Ethereum has broader use cases in the long term, there is a significant chance that Ether could indeed overtake Bitcoin. Standard Chartered valued Bitcoin in the $50,000 to $175,000 price range over the long term, while Ether was pegged to hit between $26,000 and $35,000. While they pointed out that Bitcoin has a higher chance of hitting this price before Ether, the possibility of the latter reaching its price target is growing rapidly.

Standard Chartered also pointed out the current transition to Ethereum 2.0 – a project that looks to make Ethereum a proof-of-stake (PoS) blockchain. The blockchain completed its London hard fork early last month, marking a significant stage in the transition. Ethereum 2.0 has already run into several delays, but a tentative date in 2022 has been set.

As many know, Ethereum 2.0 will also improve the scalability problems the original Ethereum blockchain faces. Standard Chartered trumpeted this tune, explaining that the upgrade will make the most popular blockchain even more functional and scalable. Gowing adoption could indeed boost Ether’s appeal.

The Latest Cheerleader for Ethereum

Standard Chartered isn’t the only company to be bullish on Ether’s chances of topping Bitcoin – an event that industry insiders have now called the “flippening.” Last month, Nigel Green, the chief executive of financial advisory firm deVere Group, told City AM that Ether’s price appreciation would continue to beat Bitcoin’s in 2021.

Green pointed out at the time that Ether had grown over 300 percent in 2021 – compared with Bitcoin’s growth of 55 percent. The CEO added that if this trend continues, the “flippening” could happen in five years.

Like Standard Chartered, Green also explained that the transition to ETH 2.0 has been successful so far.

Banking giant Goldman Sachs has also expressed confidence in Ethereum’s ability to flip Bitcoin. The company’s analysts said in July that Ether has a real possibility of overtaking Bitcoin, with the former asset having a much greater appeal and potential than the latter.

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Author: Jimmy Aki

Block.one Capitalizing on Bull Market, Through “Bullish” Going Public in a SPAC Deal at a $9B Valuation

After EOS, Block.one Capitalizing on Bull Market Through “Bullish” Going Public in a SPAC Deal at a $9B Valuation

While EOS price is seeing a 10% jump from the news today, the token is down 82.6% from its all-time high of $22.7 three years back in 2018 and failed to reach its peak even in 2021, where crypto prices soared to new heights and made crypto over a $2.6 trillion industry.

Block.one’s Bullish is going public through a merger with a special purpose acquisition company (SPAC), Far Peak Acquisition Corp, that will put its valuation at about $9 billion.

The deal includes a $300 million private investment in a public entity with other investors, including funds and accounts managed by BlackRock, Galaxy Digital, and Cryptology Asset Group.

This merger will provide $600 million in net cash, according to the statement.

Block.one launched Bullish in May which plans to launch a cryptocurrency exchange later this year to capitalize on the growing adoption and the bull market.

Ahead of its public launch, which is anticipated later this year, Bullish will be running a private pilot program in the coming weeks.

Far Peak CEO Thomas W. Farley, a former NYSE president, will be the CEO of Bullish while Block.one CEO, Brendan Blumer, will become the chairman of the combined firm.

“With the increased interest from institutional players and sophisticated traders, it is critical to iterate on the existing exchange infrastructures we see today,” Farley said in the statement.

The deal, subject to approval by Far Peak stockholders and regulators, is expected to close by this year-end.

Block.one is backed by billionaire entrepreneur Peter Thiel and hedge fund managers Alan Howard and Louis Bacon, Galaxy Digital, Japanese bank Nomura, German investor Christian Angermayer’s Apeiron Investment Group, and Hong Kong billionaire Richard Li.

Block.one is the same company behind EOS and conducted the largest ever initial coin offering (ICO) of $4 billion in 2017.

ICO investors actually filed a lawsuit against Block.one for misleading them into believing that EOS would be decentralized. Last month, Block.one settled its class-action lawsuit for $27.5 million concerning the ICO itself.

The hefty ICO didn’t do anything for the EOS investors, with the cryptocurrency currently worth less than $3.8 billion at the 28th spot while the token trades under $4 per EOS.

While EOS price sees a 10% jump from the news, the token is down 82.6% from its all-time high of $22.71 three years back in 2018, as per CoinGecko. The cryptocurrency failed to reach its peak despite the raging bull market up until a couple of months ago, which put the crypto prices to new heights and made crypto over a $2.6 trillion industry. EOS 19.14% EOS / USD EOSUSD $ 4.27
$0.8219.14%
Volume 2.15 b Change $0.82 Open $4.27 Circulating 955.04 m Market Cap 4.08 b
9 h After EOS, Block.one Capitalizing on Bull Market Through “Bullish” Going Public in a SPAC Deal at a $9B Valuation 2 d NFT Mania Peaked in March But Play-to-Earn Games Leading the Market Now; Accelerating Mainstream Mass Adoption 2 w Venture Capital Funds Have Already Invested $17 Billion in the Crypto Market This Year

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“Bullish’s entry into the public markets allows our customers to take part in Bullish by holding a piece of our company, without any of the regulatory uncertainties or jurisdictional limitations of a profit-sharing token issuance,” Blumer told Reuters.

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Author: AnTy

Key Fed Official Bullish on Stablecoins, Says it May Support Dollar’s Role in the Global Economy

Key Fed Official Is Bullish on Stablecoins, Says it May Support Dollar’s Role in the Global Economy

Fed’s vice chair for supervision, Randal Quarles, calls for taking “strong account of the potential benefits of stablecoins” while being skeptical about a CBDC, arguing potential benefits of a digital dollar are unclear and can pose considerable risks.

Randal Quarles, the Federal Reserve’s vice chair for supervision, gave a speech on digital money that reflects his bullish views on stablecoins, provided they can be regulated properly while being skeptical about the need for a central bank digital currency (CBDC).

“Stablecoins are an important development that raise difficult questions,” including how their widespread adoption would affect monetary policy or financial stability, commercial banking system, and if they represent a fundamental threat to the government’s role in money creation.

“In my judgment, we do not need to fear stablecoins,” said Quarles at the 113th Annual Utah Bankers Association Convention, Sun Valley, Idaho.

He noted that the central bank has traditionally supported responsible private-sector innovation, and consistent with this tradition,

“we must take strong account of the potential benefits of stablecoins, including the possibility that a U.S. dollar stablecoin might support the role of the dollar in the global economy.”

As for the concern that stablecoins challenge our monetary sovereignty, it is “puzzling” because our existing system depends on private firms creating money every day, he said.

However, there is appropriately a strong regulatory interest in how these fiat-based cryptos are constructed and managed, he added.

The stability risk could arise if the stablecoin is invested in multiple currency denominations, is a fractional rather than full reserve, the pool is invested in illiquid instruments, and the holders don’t have a clear claim on the underlying asset.

“When our concerns have been addressed, we should be saying yes to these products, rather than straining to find ways to say no,” said Quarles.

As for crypto assets like Bitcoin, according to Quarles, they seek to create value in the coin through other means like intrinsic mechanisms to ensure scarcity or anonymity and do not play a significant role in today’s payments or monetary system.

As per him, unlike gold, which has industrial uses and aesthetic attributes, bitcoin’s principal additional attractions are its novelty and its anonymity, and while anonymity will make it the target for increasingly comprehensive scrutiny from law enforcement, the novelty is a rapidly wasting asset.

“Bitcoin and its ilk will, accordingly, almost certainly remain a risky and speculative investment rather than a revolutionary means of payment, and they are therefore highly unlikely to affect the role of the U.S. dollar,” said Quarles.

Besides stablecoins and crypto-assets not being a threat to the financial system and as such do not require a response with a CBDC, Quarles said already the general public transact mostly in digital dollars.

Also, the Fed and private-sector interbank payment services already offer an array of options that facilitate efficient, electronic US dollar payments.

Overall, the US dollar payment system is “very good, and it is getting better,” and the potential benefits of a CBDC are unclear, and it could pose considerable risks, he concluded.

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Author: AnTy

Block.one Raises $10B from Big Names to Launch a Crypto Exchange Called ‘Bullish’ This Year

Block.one Raises $10 Billion from Big Names to Launch a Crypto Exchange Called ‘Bullish’ This Year

After the record $4 billion ICO, Block.one has again managed to raise $300 million from Peter Thiel, Alan Howard, Louis Bacon, Richard Li, Christian Angermayer, Galaxy Digital, and Nomura bank. EOS, meanwhile, is still down 60% from its 2018 ATH in the ongoing bull market.

Block.one, the software company behind the cryptocurrency EOS, has announced the launch of a new subsidiary Bullish Global.

Planned to be released this year itself, “Bullish” is a new blockchain-based cryptocurrency exchange. The exchange will be offering new automated market making, lending, and portfolio management tools, reads the official announcement on Tuesday.

The exchange will be utilizing the EOSIO software and EOS public blockchain “to produce a cryptographically validated, provable, and immutable audit trail of all transactions processed” on the platform.

Block.one has already raised more than $10 billion for this exchange.

While the initial investment of $100 million in cash, 164,000 BTC, and 20 million EOS came from Block.one itself, $300 million were raised from the big names like Peter Thiel’s Thiel Capital and Founders Fund, Alan Howard, Mike Novogratz’s Galaxy Digital, Louis Bacon, Richard Li, Christian Angermayer, and global investment bank Nomura.

“Bullish balance sheet is strong, and its vertical integration offers stability and liquidity to the cryptocurrency space. I’m happy to join Bullish as an investor and advisor as it gets started on a long and fruitful journey,” said Thiel.

Block.one is the same company that raised a record $4 billion during the 2017 initial coin offering (ICO) mania and received backlash from ESO investors who also filed a lawsuit against it for misleading investors in believing that EOS would be decentralized.

Since its launch at the peak of the last bull market in Jan. 2018, EOS has fallen from the top 10 cryptos list to sit at 23rd place with just over $9.3 billion market cap. As of writing, EOS is trading around $10, still down 60% from its all-time high of $22.71 in April 2018. EOS 54.08% EOS / USD EOSUSD $ 14.28
$7.7254.08%
Volume 19.71 b Change $7.72 Open $14.28 Circulating 953.3 m Market Cap 13.61 b
9 h Block.one Raises $10 Billion from Big Names to Launch a Crypto Exchange Called ‘Bullish’ This Year 11 h Tech Stocks Dragging Bitcoin, Ether, & Crypto’s Down, But ‘Fundamentals Still Strong’ 6 d Bitcoin and Ether Aren’t the Top Traded Crypto’s on Binance Or the Biggest South Korean Exchange

The company is launching the exchange Bullish which will have Peter Thiel, Alan Howard, Richard Li, and Christian Angermayer as its senior advisors.

“Successfully bridging the gap between digital assets and institutional actors will shape the future of the financial sector as we witness greater mainstream adoption of digital currencies,” said Howard.

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Author: AnTy

“We’re Past the Point of No Return,” says Former NYSE President Who is Bullish on Crypto & DeFi

“We’re Past the Point of No Return,” says Former NYSE President Who is Bullish on Crypto & DeFi

Thomas Farley, the former president of the New York Stock Exchange (NYSE), is bullish on the entire growing cryptocurrency industry.

“The only thing I find more exciting than debating on tax policy is talking about crypto. I’m all in, and I think Coinbase (COIN) is a great company,” said Farley in an interview on CNBC.

He then shared how the largest cryptocurrency exchange in the US, Coinbase is the 8th largest exchange in the world but “if you ask the everyday American they would probably think it’s the biggest exchange in the world.”

According to him, the crypto space is “amazing,” notwithstanding the press that it has been getting. In fact, “it’s the best-kept secret in the world and maybe the history of the financial markets,” he added.

Farley then went to talk about decentralized finance (DeFi). “There’s this corner of crypto called DeFi where essentially very smart Kids are putting code up on a blockchain of their choosing, and then you have a self-operating smart contract,” said Farley.

“DeFi exchanges are doing as much volume if not more than Coinbase today,” he added.

The burgeoning DeFi space is home to DEXs, volume on which went parabolic in Q1 of 2021. Recording as much as $217 billion, volume on decentralized exchanges is up 236% from the previous quarter and a whopping 8,000% from Q1 2020, as per Messari.

While Ethereum-based Uniswap continues to lead the pack, BSC-based PancakeSwap was the winner as its market share grew from a mere 2% to 37% in the quarter.

Farley further notes that this growth has been ignored by traditional competitors like banks along with retail brokerages.

“The wall street banks who for a century have made markets in every asset around the world have ignored this and abdicated their role and allowed Coinbase to become an $80 billion company,” said Farley, adding that as retail brokerages ignored it as well, retail found other ways to access this asset class.

“I think it’s fascinating, and I think it’s here to stay. We’re past the point of no return,” he said.

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Author: AnTy

The Long and Short of Bitcoin (BTC) This Week

Bitcoin entered the weekend on a bullish note, going above $60,150, just shy of reaching its all-time high of about $61,700.

But over the weekend, the prices end up going lower to $56,500 as $515 million Bitcoin longs got liquidated on Sunday. Overall, more than $1 billion was liquidated on the day, and the funding rate neutralized with the highest at 0.1219% on Bybit.

Now, Bitcoin has started this new week on a red note. As of writing, BTC/USD is trading around $57,500.

While April has started at -2.26% performance, the leading cryptocurrency ended the quarter first as the best one in eight years. Historically, April and quarter second both call for good things ahead.

“Bitcoin’s price has a lot of room to go,” says trader and economist Alex Kruger.

Miners are also busy accumulating all the BTC that they have been mining after selling a bunch at the beginning of the year.

Becoming Digital Gold

Bitcoin has a long way ahead with many more ATHs to hit; however, trader Alex Kruger points out how the digital gold’s run has been “behind in percentage terms.” And as its market penetration saturates, which will eventually, “price growth will then only grow in nominal terms, i.e., will fail to outpace inflation in larger time frames,” he said.

This is because the trader noted, Bitcoin will then “cease to be a fantastic speculative asset, and become a better store of value and medium of exchange. It will be even more akin to digital gold. Gold is an asset which in real terms (inflation-adjusted) is stationary.”

While digital gold will behave like precious metals, which has been flat over the years, Kruger says, “coins that derive their value from cash flow generation (and survive) will continue moving higher in real terms once bitcoin flattens.”

This is where decentralized finance (DeFi) tokens come, which will go in a different path than the largest cryptocurrency.

While BTC would be digital gold, DeFi would be “Onchain stocks,” and as we have seen with the stock market, it has been only going up.

What’s Market Speculating

While this is a long-term picture, in the short term, Bitcoin remains volatile as retail and institutions continue to come alike.

In terms of corporate exposure, after Tesla, Square, and MicroStrategy speculation doing the rounds in the market is of the popular departmental store Walmart ready to join them.

Not to forget that back in 2019, Walmart also applied for a cryptocurrency patent resembling a stablecoin. The Arkansas-based retail behemoth has also filed for several blockchain-related patents.

While Wal-Mart hasn’t declared anything, the market loves to speculate the kind of chain-reaction it will start — putting BTC in the balance sheet, rolling out BTC as a payment method in thousands of its locations, and employees being paid in BTC, which will lead to hyperbitcoinization.

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Author: AnTy

‘Nothing has Really Changed’ in the Crypto Market, Despite the Weak Price Action

Money and bullish news continue to flow into the Bitcoin market, with more to “start coming in early next month.”

After yesterday’s drop to $50,300, Bitcoin made its way to $53,800 today, giving hope of the market being bottom.

“It is now time to start looking for a tradable bottom in BTCUSD and the other major cryptocurrency. I plan to keep an eye on the alts too,” tweeted John Bollinger, inventor of Bollinger Bands.

Meanwhile, analyst Mati Greenspan says, “a strong break below 50k could easily pave the way for a move down to 42k, and possibly 36k.”

The crypto asset briefly fell below its average price over the 50 days as well, which has been a support level so far this year, now having a $953 billion market cap. According to Miller Tabak + Co.’s chief market strategist, Matt Maley, a “lower-low below that level would scare a lot of momentum players.”

Cautious Crypto

Source: Bloomberg

The pullback in Bitcoin and altcoins’ prices came amidst a wider retreat in other assets like tech stocks. A general Bitcoin downtrend is being “exacerbated by the move to value in general across asset classes” and away from areas like technology, said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore.

After an earlier wave of institutional adoption and stimulus-infused optimism among retail traders, the largest cryptocurrency fell for the fifth straight day, recording the longest losing streak since December.

Poll results have been showing that people have been planning to spend their stimulus checks in the markets. But given that markets fail to see the effects, unlike the last time, the speculation is growing that Americans will be spending them in the real economy.

Bullishness Continues Flowing In

While the traditional market analysts are back at calling it a downtrend again and seeing a limited upside with the likes of BIS’s Benoit Coeure reiterating that Bitcoin is not a currency, the crypto market says nothing has changed.

“The color and information we see from the street is largely from the institutional part of the market, and nothing has really changed in their view on the impact of stimulus on longer-term inflation and the role of digital assets as a hedge to that,” said Matt Long, head of distribution and prime brokerage at digital-asset platform OSL in Hong Kong.

The bullish news hasn’t stopped coming in at all either. For starters, USDC supply has increased more than $1 billion in the past week, its market cap reaching past $10.6 billion. As for USDT, it added $6 billion in the past month, its market cap climbing to $41.6 billion.

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Source: Twitter

Sovereign wealth funds and even the government are looking at Bitcoin, according to the NYDIG CEO.

Moreover, the New Zealand retirement fund, KiwiSaver, has reportedly invested 5% of its assets into Bitcoin. The pension fund, with NZ$350 million (US $244 million) in assets at the end of December, reportedly started investing in Oct. last year.

“If you are happy to invest in gold, you can’t really discount bitcoin,” said the fund’s chief investment officer, James Grigor.

Mike Novogratz, founder of crypto firm Galaxy Digital further believes wealthy baby boomers will be the next generation to jump into cryptocurrencies.

“It could be as much as a trillion dollars comes over the next year from that giant group of wealth,” said Novogratz in an interview at Reuters Digital Assets Week. He expects the money to “start coming in early next month.”

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Author: AnTy

Bitcoin Ramping Up Ahead of the Weekend, Another BTC ATH Incoming?

Depleting speculating supply is “insanely Bullish, of course” as institutions remove the coins from weak hands for “strong” HODLing.

Bitcoin continues to experience volatility around $58k, moving in tandem with the traditional markets as Federal Reserve Chairman Jerome Powell vowed to keep the interest rates down and supply the economy with all the help that it needs and “as long as it takes.”

And while the Fed forecasts that inflation (the consumer price index) is likely to ramp up to an alarmingly high rate of 2.4% by the end of the year but says it will be temporary, “common sense and the bond market says they are bluffing, and everybody knows it,” wrote analyst Mati Greenspan.

While Powell, along with his counterparts at the European Central Bank, Bank of England, and The People’s Bank of China, continues to double down and “support the economy” by debasing the currency, the Bank of Japan is stepping away from the aggressive monetary stimulus in favor of a more “sustainable” policy, allowing more fluctuation in 10-year bond yields.

“It is important to strike an appropriate balance between maintaining market functioning and controlling interest rates by allowing interest rates to fluctuate to a certain degree,” said the BoJ in its policy statement.

The central bank kept overnight interest rates on hold at -0.1% and will continue to peg 10-year bond yields at “around zero” but allows them to fluctuate by plus or minus 0.25% instead of the previous 0.2%.

Insanely bullish, of course!

Fed’s dovish statement helped the market climb higher but only to end up lower on Thursday. Before the weekend, S&P 500 and tech-heavy Nasdaq are attempting to rebound as yields calm down. Bitcoin went past $59k before coming back to $58k only to go back up.

Crashing bonds have been acting as a major driver bringing the tech stocks down, which in turn pushes S&P 500, other indices along with Bitcoin down.

“Markets went crazy since FOMC. Bonds and tech seem to have put in a local bottom (nothing extraordinary)—Powell to speak three times next week. And stimulus checks coming,” noted trader and economist Alex Kruger, who expects a repeat of last weekend that saw BTC making a new ATH.

While Bitcoin is following the traditional markets, inflows and continued adoption can help the cryptocurrency change direction.

As we have seen on-chain, speculative inventory, Bitcoin reserves on exchanges have been depleting ever since early last year.

“From March 2020, Bitcoin undergoes steep and continued supply shock in sync to USD money printing,” noted analyst Willy Woo.

We have been seeing US money printing climbing up while BTC supply held by speculative “weak hands” reducing and being transferred to institutions and high net worth individuals who are locking up their coins as strong HODLers in response to monetary inflation.

“This is insanely bullish of course. Strong hands have been buying every dip, which has been driving price steeply upwards since Q4 2020,” Woo added.

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Institutions, the asset allocator type like pension funds, come in a strong HODLer category because they only sell when their investment thesis changes.

“The arrival of institutional asset allocators to crypto dramatically increases the number of hodlers & strong hands, and should thus reduce the size of price corrections,” trader Kruger.

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Author: AnTy