A Possible Crypto Recovery Moving into New Year, Risk-on Sentiments Send Stock Market to Record Highs

Bitcoin and Ether continue to struggle as they trade around $48k and $3,800 respectively on Friday.

The leading cryptocurrency is now testing a key technical level that has been acting as a floor for Bitcoin over the past two years.

The latest drop in the largest crypto asset’s price has taken it to its 55-week moving average, a decisive break below which would take it to as low as $40,000.

According to Katie Stockton of Fairlead Strategies, a research firm focused on technical analysis, Bitcoin has notched a new short-term buy signal and suggests a two-week rebound. However, it is “low-conviction” due to another measure as per which conditions aren’t oversold, she said.

While crypto is struggling at the end of the year, the stock market hit a new all-time high driven by improved sentiments as governments resist imposing new, widespread lockdowns, even as the new coronavirus variant, Omicron, surges.

The risk-mood sent Wall Street’s main indexes to end the year with their sharpest three-year surge since 1999. The S&P 500 had its 69th record close of the year as it made a new high and is up 28.8% in 2021.

The Dow Jones Industrial Average also closed at all-time highs, rising for a sixth session and up 19% in 2021. The tech-heavy Nasdaq is also up 23% this year and recorded 98 new highs.

As a result, the dollar has also fallen at the low end of its recent ranges as investors favor riskier assets. The benchmark 10-year yields meanwhile reached 1.56%, the highest since late last month after the Treasury sold $56 billion in seven-year notes to weak demand. All eyes are now on the impending US interest rate hikes.

The stock market is currently enjoying the “Santa Claus Rally” that typically occurs in the last five trading days of the year and the first two of the new year. As the crypto market failed to have a “Santa Claus Rally,” investors and traders are now waiting for the rally that comes in the first ten days of a year.

This year “has seen crypto and blockchain mass adoption increase significantly with a large influx of institutional investments that has renewed confidence in this sector,” said Walid Koudmani, an analyst at XTB Market. That “could ultimately lead to significant price gains and increased volatility as retail investors attempt to catch up,” he added.

The crypto market is currently expecting 2022 to be a positive year for Bitcoin and the majority is further not expecting a repeat of the 2018 bear market.

“We can expect relief moving into the new year and a possible recovery drive,” said Joe DiPasquale, CEO of BitBull Capital. “$100,000 is definitely on the charts, but the timing can vary, especially as macro economic policy shifts and regulations start to emerge in the year,” he added.

While the major crypto assets, Bitcoin and Ether, are struggling to rally, altcoins have shone brightly this year with massive gains. Retail investors are likely distracted by these rallies in alternative coins.

“That puts some pressure on Bitcoin as well,” said Rosh Singh, CEO, and founder of Quadency, in an interview. Still, “a lot of people in crypto are pretty optimistic about the next year and think we should see a rally with the way that things have been going,” he added.

Despite the ongoing weakness in the price action, MicroStrategy purchased another $94 million worth of Bitcoin in December. The coin is down 17.5% in the last month of 2021 but still up 62% this year.

The business intelligence company bought 1,914 BTC this time and now owns a total of 124,000 Bitcoin, acquired at an aggregate price of $3.75 billion.

This month, CEO Michael Saylor said on the company’s investor day call with shareholders that they are now looking for ways to generate yields on its Bitcoin stash by either “putting a lien on it” or a “mortgage against it.”

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Author: AnTy

Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM

Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM

Bitcoin has been posting inflows for 11 straight weeks now while Ether for five bringing their YTD flows to over $6.9 bln and almost $1.2 bln, respectively.

Yet another week of inflows into cryptocurrency products and funds sent the year-to-date inflows to a record $9.5 billion surpassing $6.7 billion in 2020.

Meanwhile, continued price pressures saw total assets under management (AUM) fall from $75.4 bln to $72.8 bln.

For the week ending Nov. 26, crypto products recorded $306 million in inflows, with Bitcoin accounting for the majority of it for the fifth week in a row, CoinShares data showed.

This has been despite the price declines in the last few weeks, which means institutional investors are unperturbed by the price actions and continue to flock into the space.

Bitcoin (BTC) has been posting inflows for 11 straight weeks now with a total of $2.7 bln. So far, in 2021, the crypto asset has attracted just over $6.9 bln and $48.32 bln overall. BTC -1.39% Bitcoin / USD BTCUSD $ 57,005.43
-$792.38-1.39%
Volume 36.71 b Change -$792.38 Open $57,005.43 Circulating 18.89 m Market Cap 1.08 t
6 h Investment Firm Launches Another Attempt at Ether Futures ETF With Kelly Ethereum Ether Strategy ETF 8 h Twitter CEO & Bitcoiner Jack Dorsey is Out, Ethereum Is In 9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM

The leading cryptocurrency saw the most significant inflows in 5 weeks totaling $247 million.

“Inflation is skyrocketing, and people are searching for more alternatives for their money in the bank,” said Ruud Feltkamp, chief of cloud-based automated crypto trading bot Cryptohopper.

“I don’t think it’ll take long until investors see this as a ‘cheap’ buying moment. We are still in the midst of the bull cycle, and I think rising inflation will lead to more money being allocated to stocks and crypto.”

Ethereum (ETH) meanwhile had its fifth straight week of inflows. With $23.1 million flowing in last week, the YTD inflows now stand at almost $1.2 bln. ETH 4.19% Ethereum / USD ETHUSD $ 4,631.48
$194.064.19%
Volume 28.63 b Change $194.06 Open $4,631.48 Circulating 118.56 m Market Cap 549.09 b
5 h Ethereum Layer 2 StarkNet Alpha Launches on Mainnet 6 h Investment Firm Launches Another Attempt at Ether Futures ETF With Kelly Ethereum Ether Strategy ETF 8 h Twitter CEO & Bitcoiner Jack Dorsey is Out, Ethereum Is In

In terms of inflows relative to assets under management, Polkadot (DOT) and Solana (SOL) continue to be the winners, with inflows representing 8.6% of AUM, or $11.5 million, and 5.9% or $14.6 million, respectively, last week. DOT 2.15% Polkadot / USD DOTUSD $ 37.96
$0.822.15%
Volume 1.55 b Change $0.82 Open $37.96 Circulating 987.58 m Market Cap 37.49 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 1 d Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 1 w DeFi Hub Acala Network Secures First Spot In Polkadot’s Parachain Auction
SOL 2.13% Solana / USD SOLUSD $ 208.67
$4.442.13%
Volume 2.89 b Change $4.44 Open $208.67 Circulating 304.18 m Market Cap 63.47 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 1 d Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 1 w Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B

Multi-asset investment products saw inflows totaling $9.1 mln last week, representing the third-largest investment product by AUM at $4.6 bln.

Cardano (ADA) was the only one last week to post outflows of $1.1 mln, while Binance Coin (BNB), Tron (TRX), and Ripple (XRP) didn’t record any flows. ADA -2.97% Cardano / USD ADAUSD $ 1.55
-$0.05-2.97%
Volume 1.81 b Change -$0.05 Open $1.55 Circulating 33.31 b Market Cap 51.8 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 1 d Invesco Launches Physically-backed Bitcoin ETPs, WisdomTree Lists Three Crypto-Basket ETPs in Europe 1 w Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B
BNB -0.26% Binance Coin / USD BNBUSD $ 622.67
-$1.62-0.26%
Volume 2.78 b Change -$1.62 Open $622.67 Circulating 166.8 m Market Cap 103.86 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 10 h Will Bitcoin Break the Streak? Historically, Red November Always Leads to Losses in December 1 w “Ethereum Is The Clear Winner,” says ConsenSys CEO as MetaMask Users Grow 38x in Last Year
TRX -0.05% TRON / USD TRXUSD $ 0.10
$0.00-0.05%
Volume 2.39 b Change $0.00 Open $0.10 Circulating 71.66 b Market Cap 6.92 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 1 w Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 2 w 13 Consecutive Week of Inflows Send Bitcoin AUM to A Record $56B and Ether’s Past $21B For The First Time
XRP 0.68% XRP / USD XRPUSD $ 1.00
$0.010.68%
Volume 2.95 b Change $0.01 Open $1.00 Circulating 47.16 b Market Cap 47.07 b
9 h Polkadot (DOT) and Solana (SOL) Continue To Be The Winners Of Inflows Relative To AUM 1 w Investors Unfazed by Profit-taking as Another Week of Flows Bring YTD Crypto Inflows to $9.2B 1 w Ripple Strikes at the SEC’s Crypto “Monopoly” by Proposing Bigger Role to CFTC

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Author: AnTy

Mark Cuban’s Dallas Mavericks Continue Pro-Crypto Stance With Voyager Digital Partnership

Mark Cuban’s Dallas Mavericks Continue Pro-Crypto Stance With Voyager Digital Partnership

The Dallas Mavericks have been the most pro-crypto team in the NBA so far.

The Mark Cuban-owned basketball franchise recently announced that it would open its doors to a crypto partnership with Voyager Digital, which just secured a strategic investment of $75 million from Alameda Research.

Voyager Becomes Brokerage Partner For The Mavericks

The crypto tide has been sweeping through most of established US entertainment and sports hubs despite regulatory uncertainty. Continuing on its pro-crypto approach, National Basketball Association (NBA) team, Dallas Mavericks, has signed a multi-year partnership with popular North American crypto broker Voyager Digital.

According to the October 27 release, Voyager is on a mission to onboard more users into the crypto space and roll out educational and community programs, global activations, and popular fan engagement promotions. Alongside this, Voyager Digital will have the exclusive naming rights to the Dallas’ home court Mavs Gaming Hub, with a future date set for the name unveiling.

The five-year partnership will see the cryptocurrency trading company become the first international brokerage partner for the Mark Cuban-owned basketball franchise.

Speaking on the broader goal of the deal, Voyager co-founder and CEO Steve Erlich said that the partnership aims to educate people on alternate means to grow their wealth to achieve financial freedom and build intergenerational wealth through digital assets.

Since following in the cue of the Sacramento Kings in accepting premier digital asset Bitcoin, Cuban’s Mavericks has spent a great deal of time interfacing with the nascent crypto space. Aside from the crypto bellwether, the Dallas Mavericks have since added popular parody coin DOGE to its list of supported cryptocurrencies.

Cuban himself has been a vocal supporter of the next generation financial solutions and is a popular backer of the decentralized applications (dApps) protocol Ethereum and layer-two protocol Polygon Network. He also has investments covering Bitcoin knock-off Dogecoin.

NBA Welcoming Crypto Partnerships

The recent surge in crypto interests globally has seen many critics reassessing their earlier positions. However, the world of sports has been the most welcoming as many centralized Bitcoin exchanges have penned multi-year partnerships with many teams.

A notable crypto exchange snapping up sports sponsorship deals is Sam Bankman-Fried’s FTX derivatives crypto exchange. FTX signed a multi-year deal with Miami Heat with a reported investment cap of $135 million. The agreement, which is expected to expire in 2040, gives FTX exclusive naming rights to the home court of the NBA team.

Aside from this, FTX recently penned another partnership with Major League Basketball (MLB) in another whopping million dollar investment. The new deal will see FTX recognized as the official crypto exchange partner of the professional sports league along with a slew of other benefits.

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Author: Jimmy Aki

Resistance Grows to Big Bank and Cryptocurrency Critic for the OCC Chair

Resistance Grows to Big Bank and Cryptocurrency Critic for the OCC Chair

Cryptocurrency regulations continue to stall in the United States, with regulators and industry players seemingly unable to reach a consensus. At the same time, the Biden administration appears to be having trouble with its latest financial regulatory candidate.

Saule Omarova Could Regulate Crypto Into ‘Oblivion’

This week, tensions appear to mount in Washington as resistance grows against President Biden’s pick to lead the Office of the Comptroller of the Currency (OCC). The proposed agency head – Cornell University Law School professor Saule Omarova – has been broadly criticized for her policy proposals and her views of cryptocurrencies and large banking institutions.

Earlier this week, Sen. Ted Cruz (R-Tx) took to Twitter to criticize Omarova’s proposed appointment, calling her a “danger to our traditional economy.” The former Presidential candidate stated that Omarova’s selection would essentially lead to crypto being regulated “into oblivion,” adding that her nomination needs to be stopped.

President Biden had announced Omarova’s nomination to lead the OCC last week. Bloomberg was the first to report the nomination, citing that she could be confirmed before the end of the month.

In her time at Cornell, Omarova has shown significant signs of seeking tighter regulations for big banks and cryptocurrencies. She has especially described the crypto sector as threatening to the stability of the economy and ripe for abuse by large financial institutions. She has also offered some radical recommendations for running the finance industry, including advocating for the Federal Reserve to exclusively administer consumer banking services – not private companies.

With the Democrats holding a slim majority in the Senate, there are significant fears that Omarova will eventually be confirmed as the new OCC head. But, big players in the banking sector have started lobbying against her appointment, and Congress members have raised their voice in opposition too.

Besides Cruz, Sen. Pat Toomey (R-PA) has also called for a review of Omarova’s nomination. The Senator, who serves as the ranking member on the Senate’s Banking Committee, commented last week that he had reservations about Omarova due to her “extreme leftist ideas.”

Washington Is Changing

Omarova’s pick is just the latest move by the Biden administration to beef up its financial regulatory landscape. Just this week, the Securities and Exchange Commission (SEC) announced that Dan Berkovitz – one of the three commissioners at the Commodity Futures Trading Commission (CFTC) – will be joining the agency as general counsel in November.

Berkovitz’s departure from the CFTC follows President Biden’s selection of Christy Goldsmith and Kristin Johnson to fill the agency seats left vacant by former Chairman Heath Tarbert and Brian Quintenz. Berkovitz has been quite critical of financial regulators and their action against crypto companies, so his addition to the SEC seems to be a good thing for crypto.

Berkovitz will be the second major pro-crypto name at the SEC, joining commissioner Hester M. Pierce.

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Author: Jimmy Aki

Crypto Market Dips and Over 165k Traders Get Liquidated for More Than $890 Million

But as long as central banks and governments continue to print money, which they will as Democrats are now pushing to expand the largest single spending bill in history $3.5 trillion package, investors will continue to turn to risk assets.

The cryptocurrency market has taken a drop today.

From its highs in the last 24 hours, Bitcoin has fallen more than 3.6% to as low as $50,590. The leading cryptocurrency had surged to $53,000 late on Sunday or early Monday.

As for Ether, it slid more than 6.5% to $3,675 from its 24-hour high of about $3,975.

Among the top 100 crypto assets, the biggest hit in the past 24-hours was recorded by SafeMoon of 15%, with other double-digit losses seen by Avalanche, IOTA, Horizen, Internet Computer, Filecoin, Sushi, Compound, Ethereum Classic, Polygon, Uniswap, VeChain, BAT, GRT, Cardano, Shiba Inu, Terra, Dogecoin, and Aave.

This has resulted in a 4% dip in the total market cap, which was at almost $2.47 trillion yesterday, nearing its $2.55 trillion peak, which slid down today and is currently at $2.36 trillion.

Despite the losses, Solana is up 25% and Fantom over 23%, while FTT is in the green by almost 5%.

The latest drop in the market resulted in liquidating 165,323 traders for more than $890 million, according to Bybt. But these numbers are not exhaustive as Binance does not report its full figures.

Bitcoin accounted for the most of it at $222.4 million, followed by $159.3 million in Ether and $80.8 million in Solana.

The funding rate on Bitcoin perpetual contracts has slid down some, with the highest currently at 0.0536% on Binance. The crypto asset prices have been recovering since July 21, and last week funding started trending up as prices made their way up, especially for Ether which went past $4k briefly on Friday, not far off of its $4,380 peak.

The highest funding rate on Ethereum perpetual is currently on Bybit at 0.0778% on USDT margin contracts, while the lowest is 0.01% on Binance for token margins contracts.

Meanwhile, open interest remains elevated at $19.41 billion on Bitcoin futures, gradually making its way to a $27.68 billion high. For Ethereum, OI has hit a new ATH on Monday, surpassing $11.6 billion from May 10. Today, it has seen a slight dip to $11.26 billion.

Despite the dip, the macro outlook remains bullish, with Democrats pushing to expand the largest single spending bill in history, $3.5 trillion tax and spending package.

So, as cryptocurrency exchange FTX noted in its blog titled “The everything bubble & TINA 2.0,” as long as money is being printed, the prices of everything from stocks, commodities, to venture capital, retail estate, and crypto should increase in value.

Since the COVID-19 pandemic began, already $32 trillion of fiscal and monetary stimulus — the largest stimulus as a percentage of global GDP — has been pumped into the markets while government bonds are negative-yielding.

“If global central banks and governments are going to continue to print money, investors are faced with a TINA 2.0 predicament, where cash is literally burning a hole in their pockets, pushing them not just into risk assets, but further out the risk curve, exacerbating wealth inequality along the way, leading to even further risk taking,” noted FTX.

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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.

image2

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.

image1

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.

image2
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.

image1
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