‘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

Jittery Macro Affecting Crypto But US Institutional Investors Continue to Buy Bitcoin

Jittery Macro Affecting Crypto But US Institutional Investors Continue to Buy Bitcoin

Bitcoin continues to be under selling pressure as the digital currency drops to nearly $46,000.

This latest weakness in the price of Bitcoin has been despite the Coinbase whales scooping coins off the market. In the last 24 hours, more than 30k BTC worth approximately $1.5 billion has moved out of Coinbase reserves.

A similar Bitcoin purchase preceded the $24k breakout when the digital assets moved from weak hands to strong hands.

“Another significant Coinbase outflows at 48k. US institutional investors are still buying BTC,” said Ki-Young Ju, CEO of crypto data provider CryptoQuant. “I think it will eventually go above 48k, which is the institutional buying level,” he added.

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As we reported, the ongoing stock sell-off has been dragging the crypto market down. It is basically the result of what’s going on in the macro environment with bond yields rising, pushing the US dollar up, which is not good for risky assets and gold. Young Ju said,

“I think the major reason for this drop is the jittering macro environment like the 10-year Treasury note, not whale deposits, miner selling, and lack of institutional demand.”

With the continuation of the big bond sell-off, investors have shifted their risk preference from high to medium. The Federal Reserve Chairman Jerome Powell meanwhile continued with the same rhetoric, committing to its ultra-loose monetary policy, exactly what the market wanted to hear.

But yields, which actually move inversely to the price of the bond, had a sharp increase still, which means investors are selling off their “worthless over-abundant government debt,” noted analyst Mati Greenspan in his daily newsletter Quantum Economics.

Besides the cryptos, which are trying to rally but struggling to reclaim the highs, the top tech stocks have been taking a beating. The tech-heavy Nasdaq had its worst day in four months, sliding 7.6% from its early February peak before ending Friday with a slight uptick. About the ongoing equity-crypto correlations, trader and analyst Alex Kruger says,

“For correlations to be meaningful, their *flows* must be significant relative to other flows. Hence why you will often see correlations spike during times of market turmoil, and diminish during times of heavy inflows into bitcoin when driven by bitcoin specific factors.”

According to him, the crypto market can rebound over the weekend if risk assets stay strong.

However, with March seasonality coming into play, the month that has been the majority of the times seen red price action, the market may see some sideways action next month if not bearish onslaught.

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Author: AnTy

Chinese Tech Firms Didi, Meituan, & Bilibili Launch Lottery-Based Trials for Digital Yuan

Tests for China’s digital yuan are still ongoing as companies continue to join the People’s Bank in its efforts to digitize the currency.

This week, local news source CLS confirmed that three large internet companies had joined the tests in what appears to be a lottery-style trial.

Everyone Welcome

As the news explained, Didi Chuxing, the largest ride-hailing service in the country, had joined commercial products and bike-sharing company Meituan and video-sharing site Bilibili on a lottery-based trial of the digital yuan. The test will focus on Suzhou, a region on the western side of Shanghai.

The report explained that the trial launched earlier today, and it will involve about 10,000 residents in the city. These residents will vie for about 200 digital yuan units each, which they can spend at merchant stores with point-of-sale technology.

In addition to retail spending, the winners can spend the tokens on the three companies’ services. They can order rides on Didi, pay for bike-sharing on Meituan, and spend on new features from Bilibili’s site. It is unclear how long the trial will last, but it continues what appears to be a series of rests and implementations for the digital yuan.

All Hands on Deck

The companies are just a shortlist in a line of corporations looking to test the digital yuan. The Peoples’ Bank has incorporated several other companies for the better part of the year, with names including Alipay and WeChat Pay, the country’s two largest payment processors.

In October, Huawei, the country’s largest smartphone manufacturer, announced on its Weibo channel that its next flagship device – the Mate40 series – will come with a hardware wallet for the digital yuan. Touting it as a channel to be a part of China’s digital revolution, Huawei explained that the wallet would provide optimal privacy and anonymity.

The wallets will also feature dual transactions, ensuring that users can complete transactions by touching two compatible phones, even without any internet connection.

The tests have also gone beyond just tech companies. Economic Information Daily reported in October that gas stations in Shenzhen had begun accepting the asset. As the news medium confirmed, 11 gas stations had been integrated into the program, and more would join.

The program was the brainchild of Guangdong Petroleum, a state-owned oil, and gas firm. Participating outlets come fitted with barcode readers to ensure easy and quick payments. Guangdong praised the asset’s speed and security, explaining that reviews of its use had been positive. It is expected that these trials have ended already.

A similar giveaway to what is happening in Suzhou also occurred in the Luohu District of Shenzhen. Per a Sina Finance report, the district’s government started a program to send ten million units of the asset (worth about $1.5 million) to 50,000 residents via a lottery.

Unlike this program, however, that one focused primarily on retailers and brick-and-mortar shops across the region.

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Author: Jimmy Aki

Grayscale Amasses 552.5k Bitcoin and Almost 3 Million ETH with Latest Big Accumulations

Grayscale Investments continue to gobble up more and more Bitcoin, and now it has its eyes set on Ether as well.

All this buying has Grayscale Bitcoin Trust amassing 552.5k BTC so far, worth more than $10 billion. GBTC currently has almost 3% of Bitcoin’s circulating supply.

As per the company’s Dec. 3rd filing with the US Securities and Exchange Commission (SEC), they added another nearly 14,592 BTC worth over $280 million to its holdings.

GBTC is currently trading at a premium of around 15% to BTC price, cut down in half since last week. The premium started trending up in early October along with the jump in the price of Bitcoin but has been keeping under 30% throughout 2020 except for a handful of occasions.

This premium is a function of “exposure to bitcoin in a regulated vehicle without having to deal with the challenges of custody, eligibility to some tax-efficient schemes, strong distribution through regular brokerage accounts, lack of alternatives such as an ETF,” noted data provider Skew in its report.

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Source: Grayscale Investments BTC Holdings

However, it is not just Bitcoin that Grayscale’s institutional investors have their eyes on. Grayscale’s ETH stash is ready to hit 3 million, currently at 2.94 million ETH worth nearly $1.7 billion.

This Ether accumulation actually saw a big spike on Wednesday, which means this week institutional investors bought the dip on ETH.

Ether is currently trading at $560, up from yesterday’s low of $530, while Bitcoin is around $18,240, has managed to recover from yesterday’s drop to $17,650.

Grayscale Ethereum Trust (ETHE) is trading at a premium of a whopping 127%, down from 900% in June.

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Grayscale Investments ETH Holdings

Institutions are coming into the cryptocurrency market at a fast pace in 2020 as the market enters into another bull cycle.

Bitcoin is gaining attention as digital gold and inflation hedge this year, while Ethereum blockchain is becoming the most actively used with its token Ether solidifying itself as an asset class.

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Author: AnTy

SUSHI on Altcoin Party Menu, Collaborating with Yearn on a ‘Stealth Project’

Both Bitcoin and ETH are constantly moving up and down dramatically as investors continue to scoop off coins in the spot market while leverage continues to dominate the derivatives market.

Amidst this, DeFi tokens rallied, and the total value locked in the sector is near ATH at $14.55 billion, as per DeFi Pulse.

Sushi is actually the DeFi token, which is leading the market with 287% gains in the past month, 84.75% in the last week, and is up over 27% today while trading at $2.26.

The recent price rally has pushed its price/sales ratio to just over 7x, which is still below 11x that of Uniswap and 45x of Balancer.

The uptrend has been despite the reports that a potential SushiSwap exploit was discovered and subsequently confirmed on Twitter by 0xMaki, General Manager at SushiSwap.

According to 0xMaki, the culprit got around $10-15K from the 0.05% fees cut of SushiSwap. The exploit was on the Sushibar for fees, but the issue was quickly resolved, and according to reports, the individual responsible for abusing the loophole was also identified by GM 0xMaki as a community member from SNX & possibly ESD.

The gains have been propelled by SUSHI’s merger with Yearn.Finance. After Cream, COVER, AAVE, Akropolis, and PICKLE, YFI’s Andre Cronje announced the alliance with SushiSwap.

In his merger announcement, Cronje said while Sushiswap did some things wrong, much has been done right.

With Sushi focused on expanding their AMM ecosystem and Yearn on their strategies, the overlap has become apparent; as such, it made sense “to take the relationship to the next level.”

The Synergies

Both the projects are merging their development resources to increase their TVL. Sushi will be launching Deriswap — a protocol that combines different DeFi services, including options, loans, and swaps into a single contract — in collaboration, following which it will also be involved in a “stealth project” with Yearn.

The token and governance of Sushi will stay the same, but Yearn will participate in it and add to its treasury some SUSHI the same way Sushi will do to Yearn.Finance. 0xMaki will lead the AMM arm of yEarn while the launched money market will use Sushi LP as collateral.

Cronje’s Yearn project will help create Sushi vaults so people can earn SUSHI-ETH-YFI-wBTC, and its strategies will also use Sushiswap moving forward.

His other project Keep3r, will be integrated inside Sushibar v2, move the full treasury as liquidity to Sushiswap KP3R/ETH (~$11MM), implement on-chain limit orders, stop loss, and take profit for Sushiswap LPs, and will offer gasless swaps via MetaWallet for Sushiswap trades.

Other synergies involve Cream protocol reserve to provide liquidity to Bento Box, Cover agnostic protocol to use SUSHI as coverage, and Coverage money market to include Sushiswap perpetual coverage.

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Author: AnTy

DeFi ‘Monster’ Aave is Ready for the Next Phase of Adoption

DeFi assets are back to uptrending as Bitcoin and ETH continue to explode higher. The total value locked in decentralized finance is also rising, reaching $14.2 billion.

Market participants are excited by the latest developments put out by DeFi heartthrob Andre Cronje, the creator of Yearn.Finance who is constantly putting out collaborations with more and more DeFi projects. Cronje shared,

“I have so much more planned for when v2 launches, custom money markets (yield & insurance), Cream will be a lending reserve into Aave, agnostic Cover for all aTokens, and we can finally put ytrade, yleverage, and leveraged stable coins into production.”

This has been in response to Aave founder and CEO Stani Kulechov’s tweet where he shared that the popular DeFi project has already been working with Cronje since the beginning of this year. Kulechov added,

“The recent collaborations with @iearnfinance are IMO positive sign for DeFi. All DeFi protocols should work towards cross composability.”

Not just this, the project has also achieved a big milestone in the form of processing over $1 billion in flash loans since launching in January.

All of this certainly got the community excited, and AAVE jumped over $76.5, up nearly 170% from about $28 earlier this month.

To trader @SmartContracter, AAVE is a “monster,” which he believes is “going to blow BTC out of the water in terms of performance in 2021.”

Next Phase for DeFi

Another news came in the form of Copper, an institutional custody provider announcing the launch of CopperConnect, the first-ever DeFi tool for crypto institutions.

With this service’s help, an institution can effectively contribute to a decentralized pool of assets and earn passive income on that.

With unaudited DeFi projects decreasing, the fluctuation in the value of the market has been less dramatic, making the risk now more manageable for sensations, which as a result has “led to high demand from institutional crypto investors for secure ways to gain exposure to the DeFi marketplace.”

“In recent months, we have seen a significant increase in the number of institutions looking to deposit liquidity onto our project. However, to date, institutions have not had the tools available to comply with their exacting risk management rules,” said Kulechov.

To satisfy this demand, Copper provides the safety of assets throughout the DeFi lifecycle, which will help the AAVE project gain institutional adoption.

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Author: AnTy

Uniswap & SushiSwap Fork, Sake, Enters; Locking in Over Half A Billion Dollars

Despite the rug-pulling and all the drama in the DeFi sector, newly cloned projects continue to pop up in the market. Copy-pasting has become a norm of the market, just like in 2017, with the initial coin offerings (ICO). And after the food mania, it looks like it’s time for beverages.

The latest project is SakeSwap, a fork of Uniswap and SushiSwap.

SushiSwap itself was the copy cat of popular DEX Uniswap, which saw its creator selling his share of the development fund, then returning it and now under issue for airdropping millions of SUSHI, buying back tokens, and generously rewarding a team member.

“SUSHI tastes better with SAKE!” and “Stake Uniswap LP tokens to claim your very own hot SAKE!” are the latest project’s taglines.

First introduced early last week on Sept. 8, the project has already amassed more than $530 million in deposits.

The initial set of pools available are USDT-ETH, USDC-ETH, USDC-USDT, DAI-ETH, COMP-ETH, LEND-ETH, SNX-ETH, LINK-ETH, UMA-ETH, CRV-ETH, SWE-ETH, STAKE-ETH, SRM-ETH, GRAP-ETH, YAMv2-ETH, BASED-ETH, YFI-ETH, YFII-ETH, SUSHI-ETH, and SAKE-ETH.

This Uniswap and SushiSwap fork comes with a few key improvements. Here, SAKE token holders have governance rights and get a portion of fees paid to the protocol, and “eventually, SAKE holders will own the protocol.” SakeSwap has a tokenomics of deflation.

Unlike SUSHI, SAKE token has been set a limited total volume to avoid dilution and maintain project sustainability. 6% of every SAKE distribution is set aside for its dev fund.

Following SushiSwap, 0.25% of transaction fees go to LPs, while the remaining 0.05% will be converted back to SAKE. As for the remaining 0.05%, 30% of it will be burned while the rest will be redistributed to token holders.

Unlike Uniswap, instead of arbitrators acquiring 100% of slippage, 50% will go to LPs. It even introduces Slippage Token (S Token) to incentivize traders, and once AMM pools are active, holders can farm SAKE by staking S token.

Currently, the SAKE token is trading at $1.39, down 57% from its all-time high at $3.18 hit on the weekend, as per CoinGecko.

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Author: AnTy

Crypto Exchanges Contribute to Curve Finance’s Front-Run & Premined CRV Token Launch Insanity

  • Things continue to get more and more bizarre in the DeFi world.
  • The crazy is to be expected when “you give people a permissionless uncensorable platform.”
  • This time, the center of attention was one of the most popular DEX Curve Finance and its highly anticipated token launch.

Within hours of the surprising launch of the CRV token, the leading spot exchange Binance announced the listing of the token with deposits now opened but said due to the token’s limited circulating supply, trading won’t start until a “sufficient enough” levels of CRV deposits are reached.

The trading for the pairs CRV/BNB, CRV/BTC, CRV/BUSD, CRV/USDT, will be opened on Saturday, August 15th, at 4:00 AM (UTC).

As expected, the listings pushed the price of CRV to as high as $54, as per CoinGecko, before going back to $14.12. On Uniswap, at one point, 1 CRV got about 124 ETH. As a result, its market cap “briefly surpassed” even that of Bitcoin on a fully diluted basis.

As such, Binance CEO Changpeng Zhao wants people to “use your judgment. Be responsible for your actions.”

But the community isn’t thrilled with Binance’s decision. One trader criticized CZ for “contributing to this “insanity’” saying, “you listed a CRV without consulting with the team after it had already been premined” and that Binance’s FOMO led other crypto exchanges, OKEx and Poloniex, to FOMO list CRV as well.

Does it get any more decentralized than this?

The launch of the CRV token itself has been nothing short of peculiar. Instead of Curve Finance, the token was launched by an anonymous developer.

An exchange liquidity pool on Ethereum, Curve, is designed for stablecoin trading. A popular DEX in the DeFi space, Curve accounts for more than 20% of all DEX volume for the past two months.

Just launched CRV is its native governance token, which is also used as a reward for liquidity providers. A portion of the trading fees collected on the platform will be used for burning CRV tokens.

The token came in the market at 6.25 PM EST yesterday, sooner than its scheduled launch after an anonymous user deployed the open-source CRV token and CurveDAO contracts on the Ethereum mainnet.

Initially seen as a scam, the Curve team later confirmed that the contract is authentic, and they have adopted it after it gained traction.

Users subsequently found that wallets have been staking Curve assets and earning CRV assets before the official launch, which led to unfair “premine” allegations.

About 20,000 CRV tokens were also awarded to early stakers, as is the design of this protocol, and one or more of the wallets presumably belong to the developer, dubbed “Chad” who prematurely launched the token.

Interestingly it only cost 19.9 ETH, worth about $8,400 to deploy the contract.

Before the community got heated up about the “pre-mining” of tokens, Curve’s project lead Charlie commented, “I think it’s kinda cool personally” on the Discord channel.

As for the CRV token distribution, out of the initial 1.3 billion tokens, 5% of tokens with a one year vesting period will provide liquidity to the platform along with another 57% of all CRV tokens that will also be distributed to LPs from the 3.03 billion total supply. Employees and shareholders will get 3% and 30%, respectively, with a vesting period between two to four years while the remaining 5% will go to community reserve.

But this isn’t deterring the DeFi users given the new record $5.22 billion of total value got locked in the sector today

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Author: AnTy

Kraken and Binance Form New Partnerships to Offer More Fiat Funding Options

Amidst the flying altcoins and stuck Bitcoin, cryptocurrency exchanges continue to add new options to allow users to buy and sell digital assets.

Kraken has added seven new USD funding options for US residents through its partnership with MVB Bank to offer the fastest and smoothest experience for its clients. Formed in 1997, MVB Bank is an FDIC insured bank.

“We are excited to offer this new USD funding method, and think it will prove to be one the best funding methods for our US clients. MVB Bank is an ideal banking partner for us in many ways, including their deep commitment to supporting innovative financial companies in the Fintech sector,” said Kraken Chief Operating Officer David Ripley.

The new domestic wire charges a deposit and withdrawal fee of $4 with a minimum deposit/withdrawal of $20.

The new option is available in every US state that Kraken operates in, except for Texas.

Reaching 170 Countries

Another exchange that is extending its options is leading spot exchange Binance, which has acquired crypto wallet app Swipe.io. This acquisition could help boost crypto adoption, said Binance.

Swipe users can now purchase cryptos from within the app and use debit cards that utilize the Visa payment network to automatically convert stored digital assets into fiat currency.

Available in 31 countries, Swipe support transactions in US dollar, pound sterling, and euros. The app has also listed Binance’s native coin BNB to its platform for an undisclosed amount.

The exchange also announced a partnership with settlement provider Etana Custody to further increase options for users to buy digital assets with fiat currencies.

With this partnership, Binance users can now fund their accounts with 15 national currencies in Europe, Asia, North America, and Oceania markets.

Besides, United Arab Emirates dirham (AED), Czech koruna (CZK), Danish krone (DKK), Hungarian forint (HUF), Mexican peso (MXN), Norwegian krone (NOK), Polish złoty (PLN), and Swedish krona (SEK), euro (EUR), Canadian dollar (CAD), Australian dollar (AUD), and Swiss franc (CHF) are also included.

This brings the total number of countries and regions that Binance serves with fiat to 170.

Users can fund their purchases of cryptos right from Binance’s website once they have set up a funded Etana account. Etana also follows KYC and AML standards and is compliant with the Bank Secrecy Act.

Etana also provides services to Kraken as a third-party custodian and settlement provider of both fiat and digital assets for brokers, traders, and exchanges.

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Author: AnTy

TRON (TRX) Price Analysis (May 9)

• Tron is facing an increase in buying pressure and may continue in the same direction if it breaks $0.025.
• Overall market sentiment regarding the crypto remains bullish.

TRX/USD Medium-term Trend: Bullish

Key levels

• Resistance levels : $0.025, $0.030, $0.035
• Support levels: $0.007, $0.006, $0.005


Tron still trades in an uptrend in its medium-term perspective. The bulls’ pressure on the cryptocurrency yesterday at $0.016 at the resistance area further led to an increased price of the coin during yesterday’s session.

The bulls make a progressive movement to the north at $0.017 with a touch at the EMA-9 in the resistance area as the daily session opens today.

Price of TRXUSD is above the two EMAs and the stochastic oscillator signal pointing up at around level 82% suggests upward momentum in the cryptocurrency price in the medium-term, which indicates a buy signal.

LTC/USD Short-term Trend: Bullish

TRXUSD continues in an uptrend market in its short-term outlook. Just like usual the crypto’s price is going up as we can see from the 4-hourly chart.

Today’s 4-hour opening candle at $0.016 in the resistance area is bullish as the bulls remain dominant in the market.

TRXUSD is initially up at $0.017 above the two EMAs in the resistance area, an indication of more buyers present in the market.

Thus, the stochastic signal pointing down at level 79% in the overbought region suggests the momentum in price of the coin might encounter a trend reversal in the days ahead, in this case, a downtrend in the short-term.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan