Seasonal Correction? Retail and Institutions Still Buying Bitcoin & Ether

During the summer of 2017, ETH price corrected 67.8% from $420 to $135 to surge to $1,420 ATH a few months later. As such, investors remain hopeful with EIP-1559 and The Merging coming while OTC desks report their biggest outflows.

The price of Bitcoin made an all-time high at nearly $65,000, which followed a correction to $47k.

But in the first 10 days of May, Bitcoin price had moved back to almost $60k, and it was after this bounce that the market simply started winding down. The price went down to $30k on Coinbase and even lower on other cryptocurrency exchanges, representing a 54% drawdown.

Now, we are ranging between $33,500 and $42,500.

While this may incite fear-like sentiments into some with the market looking extremely fragile, not everyone feels the same.

Mike Alfred, Head of Strategy at NYDIG, is still looking at $100k in the fall.

When it comes to Ether, it plunged 55% to $1,900, which according to long-term Eth investor Tetranode, is “just a season correction to shake out the overleveraged tourists.”

He pointed to the summer of 2017 when ETH price corrected 67.8% from $420 to $135 only to surge to $1,420 ATH a few months later. This time, according to him, EIP-1559 will send ETH prices higher, followed by The Merging, which will push it to “$10,000 minimum,” he said.

According to Chainalysis data, investors spent about $410 billion buying up Bitcoin during this bull market. During the crash, professional investors bought at cheap levels, helping put a floor.

The volatility has noobs, and traditional finance people are hooked on cryptocurrencies, and they are buying the dips.

“We had kept dry powder,” said Felix Dian, former Morgan Stanley trader who is running an $80 million crypto-focused fund at MVPQ Capital, who bought the BTC dip at around $35k.

Charles Erith of ByteTree Asset Management was also among the buyers who told Bloomberg, “It’s obviously not regulated, and it’s a very young asset, but I don’t think this is going to be a revisit of 2018.”

Jill Carlson, principal of Slow Ventures and co-founder of the Open Money Initiative, believes that companies are still considering using this as a balance sheet asset.

While there is some confusion, “the reality is institutions are still buying bitcoin. If you look at the data from yesterday, OTC desks had their biggest outflow, meaning institutions buying, that they’ve seen in three or four months. And that to me indicates that institutions are still coming in and buying the debt,” Carlson said in an interview with Bloomberg.

“People that were borrowing money to invest, they were wiped from the system,” Kyle Davies, co-founder at Three Arrows Capital in Singapore, told Bloomberg. His firm bought more BTC and ETH during this sell-off.

“Every time we see massive liquidation is a chance to buy,” he added. “I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”

While some retail traders have capitulated from the market, as seen in the $8.60 billion worth liquidations (incomplete figures as it doesn’t include Binance’s numbers fully), they also took the chance to scoop off cheap coins.

One such retailer, Brjánn Bettencourt, a photographer who sees crypto as a “serious long-term investment,” told Reuters, “Investing in crypto is not for the faint of heart.”

These ups and downs of crypto are actually part of crypto’s appeal. Investing in cryptos “feels like that scary rollercoaster,” he had said. “You’re riding it up and riding it down and feeling every twist and turn, which to me is exciting and fun.”

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Author: AnTy

A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion

The liquidation in the past 24 hours beats the ones seen during March Crash, aka Black Thursday, and in late Feb. Propelled by Treasury rumors, high leverage, and hash rate taking a hit, BTC went down to $51,300, and Ether touched $2,000.

The cryptocurrency market crashed overnight, and the losses spilled into Sunday as well.

Losing as much as 30% of their value in the past 24 hours, about $300 billion have been wiped out from the market.

Bitcoin price went as low as $51,300, and Ether price touched $2,000 on Coinbase.

This crash could have been propelled by Treasury rumors. The market was spooked by the speculation that the US Treasury is looking to charge several financial institutions for money laundry using crypto.

Another potential reason could be the drop in the Bitcoin hash rate, which has now fully recovered while prices are in the process of it. As we reported, there has been a coal mine accident in Northwest China, leading to blackouts in the area and mining pools losing over 20% of their hashing power.

As Charles Edwards of Capriole Investments noted, “One province in China represents a significant share of the Bitcoin network,” hence the result.

Much like always, extreme leverage exacerbated the already bad situation. Setting a new record and beating the March 2020 crash, 1,063,216 traders were liquidated for an eye-watering $10.1 billion in the past 24 hours.

On March 12th, Black Thursday, the record was set just above $4 billion, while the market took another heavy beating on Feb. 21st was just under $6 billion. But now on the chart, they are just a blip.

Of course, more than half of this new record was thanks to Binance degen traders, accounting for nearly $5 billion of it.

In terms of cryptocurrency, Bitcoin longs suffered the most, followed by Ether, XRP, BNB, DOGE, and Litecoin, as per Bybt.

ETH -6.66% Ethereum / USD ETHUSD $ 2,242.92
-$149.38-6.66%
Volume 50.74 b Change -$149.38 Open $2,242.92 Circulating 115.52 m Market Cap 259.11 b
9 h Coinbase Starts Offering Eth2 Staking, Over 3.8 Million ETH Already Deposited in ETH 2.0 9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 11 h BitMEX Co-Founder Arthur Hayes Puts Ether Moon Target Above $20,000
XRP -10.61% XRP / USD XRPUSD $ 1.43
-$0.15-10.61%
Volume 22.97 b Change -$0.15 Open $1.43 Circulating 45.4 b Market Cap 64.73 b
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 2 d Bitcoin Drops to the “Key Support,” Path to $75k is Cleared On the Upside 4 d Coinbase Is Now Live On Nasdaq, Valuation Soars Past $100 Billion with Shares Trading Above $400
BNB -9.43% Binance Coin / USD BNBUSD $ 481.40
-$45.40-9.43%
Volume 6.71 b Change -$45.40 Open $481.40 Circulating 153.43 m Market Cap 73.86 b
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 3 d One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 4 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week’s Victory; XRP Jumps On the News
DOGE 5.98% Dogecoin / USD DOGEUSD $ 0.32
$0.025.98%
Volume 23.52 b Change $0.02 Open $0.32 Circulating 129.24 b Market Cap 41.7 b
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 2 d Meme Coin Rages On: Dogecoin Hits 5th On CoinMarketCap, DOGE Inducing FOMO at $.40 3 d Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)
LTC -13.07% Litecoin / USD LTCUSD $ 274.56
-$35.88-13.07%
Volume 13.14 b Change -$35.88 Open $274.56 Circulating 66.75 m Market Cap 18.33 b
9 h A New Record: Over 1 Million Traders Liquidated for a Whopping $10.1 Billion 2 d Miami-Dade County Task Force Is Looking at Ways for Residence to Pay Taxes Using Crypto 3 d Grayscale Bitcoin Trust (GBTC) Is Fast Approaching World’s Largest Commodity ETF, GLD with $57B AUM

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This wipeout normalized the funding, which went negative and still is after a long time, with the highest Bitcoin funding rate as of writing at 0.1347% on Bybit. During the whole ordeal, Bybit actually traded 4.20% below the spot.

Although it is yet to be seen, the market looks to be bottomed given that the leverage ratio is decreased, though still high. In fact, the market is not in fear but is still greedy, with the Kimchi premium hitting 26% today in the aftermath of this, as per Crypto Quant.

However, according to trader Wolf, bulls need to reclaim $56,900, or bears will be in control that could further take us down to $45,300 because “this would be the first time since September that we lose important support,” of daily MA50. Another trader Bitcoin Jack actually sees a second dump likely, which could either be “truncated or much deeper.”

Overall, with futures in backwardation, low liquidity on the weekend, massive arbitrage between exchanges, and spot bids stacked as Avi Sanyal, Head of Trading at BlockTower, says, instead of panic selling, this is time to buy the dip.

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Author: AnTy

Judge’s Comments During SEC Hearing Could Be Favorable for Ripple: Unaffiliated Attorney

Judge’s Comments During SEC Hearing Could Be Favorable for Ripple: Unaffiliated Attorney

Attorney Jeremy Hogan, a partner at Hogan & Hogan legal firm, has pointed out some comments made by the magistrate Judge that may favor Ripple against the U.S. Securities and Exchange Commission (SEC).

Hogan observed the judge commenting in a virtual hearing over the SEC’s attempt to obtain personal financial information of Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.

Judge’s Comments May See Ripple Come Out Triumphant

In a YouTube video, Hogan said Judge Sarah Netburn had interrupted the discussion to clarify a statement she felt was untrue.

Netburn is not the primary judge in the case; she is assisting District Judge Analisa Torres with discovery and mediation.

According to Hogan, Netburn gave the impression that Ripple’s XRP cryptocurrency may not be a security as the SEC claims. According to Hogan, the judge said,

“My understanding about XRP is that not only does it have a currency value, but it has a utility, and that utility distinguishes it from Bitcoin and Ether,”

Attorney Matthew C. Solomon representing the defendants said XRP had the same intrinsic attributes as Bitcoin and Ethereum, which is branded as a “commodity.”

Hogan, who is not in any way related to the case, said that the second comment Netburn made that was as striking as the first was questioning whether everyone who sold XRP was selling illegal securities.

This was based on the SEC’s prior argument. But the SEC lawyer said that only Ripple and its affiliates could be accused of selling the XRP as illegal securities under the regulator’s Securities Act.

Hogan then surmises that the SEC lawyer’s statement clears the way for cryptocurrency exchanges in the United States to possibly re-list XRP again with no fear of reprisal.

Others believe Hogan’s argument doesn’t hold much weight. One of them is popular trial lawyer Stephen Palley.

Palley believes that an “offhand comment” made by a magistrate judge in charge of mediation and discovery doesn’t mean Ripple would win the case. On exchanges relisting XRP, Palley feels crypto exchanges like Coinbase and Gemini would be foolish to take such a stance in an ongoing case.

Ripple Having A Good Run So Far

Hogan said that Netburn’s comments are exactly what Ripple would want the court to think. He said,

“If I’m Ripple, I’d be feeling pretty good that my mediator and consulting summary judgment judge just said on the record what I essentially argued in my pleadings.”

The lawsuit against Ripple, filed in December 2020 as the former chair Jay Clayton vacated his position, alleges that co-founder Chris Larsen and CEO Brad Garlinghouse aided and abetted Ripple’s unregistered sales of securities in 2013 and 2015, respectively.

Ripple has responded, stating that it had never offered or sold XRP as an investment and that XRP holders do not acquire any claim to Ripple’s assets, hold any ownership interest in Ripple, or have any entitlement to share in Ripple’s future profits. Following the SEC’s lawsuit, numerous crypto exchanges came out hard on the company by delisting its XRP token.

Despite the backlash from businesses in the U.S, Ripple’s Asian market continues to boom. The blockchain firm has partnered with a subsidiary of Japan’s SBI Morningstar, which plans to pay its shareholders XRP tokens as dividends.

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Author: Jimmy Aki

JPMorgan Chooses ‘Fintech Over Bitcoin’ As the Real Financial Game Changer during Global Pandemic

JPMorgan Chooses ‘Fintech Over Bitcoin’ As the Real Financial Game Changer during Global Pandemic

Fintech is the long-term story for COVID-19 related financial developments, not Bitcoin, JP Morgan analysts.

In a story first covered by CNBC, analysts from the top U.S. bank dismissed the recent superficial growth in Bitcoin’s price as an “economic sideshow” during the current global COVID-19 pandemic. According to the report, fintech development and digital payment systems will be the major story arising from the financial field in current pandemic times.

The price of Bitcoin has soared past $58,000 to set new all-time highs in 2021 as institutional investment soars from firms such as MicroStrategy, Tesla and MasterCard entered the Bitcoin market, a note from JP Morgan reads. However, it is the fintech innovations that will get the credit in the long term, it further states.

“Fintech innovation and increased demand for digital services are the real Covid-19 story with the rise of online start-ups and expansion of digital platforms into credit and payments.”

Over the past year, there have been increased efforts by non-financial firms such as Google and Apple to get into the fintech space. As financial firms invest heavily in technology, these Big Tech companies are moving rapidly to capture the digital payments market. With an advantage in digital spaces by owning a huge amount of consumer data, big tech firms rapidly narrow the gap to financial institutions and banks.

Bitcoin, on its part, saw a boost in demand, reaching the $1 trillion market cap, as investors looked for “diversification assets” during the pandemic. Comparisons with gold as a store of value is also increased over the year. JP Morgan previously stated the digital coin could rally as high as $146,000 as it competes with gold as a hedge against inflation during the COVID-19 pandemic.

Despite the optimistic price targets (which could take years to achieve), JP Morgan analysts warn cryptocurrencies are still the “poorest hedge” against stock prices and still hold a questionable amount of risk.

As previously reported, JP Morgan Chase Co-President, Daniel Pinto stated the bank could invest in Bitcoin if there’s a demand for the crypto. However, strategists at the bank revealed a report stating BTC’s price is “unsustainable” at $52,000 claiming volatility will kill the current hype cycle in the market.

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Author: Lujan Odera

Bitcoin OTC Indicators Point to Ongoing Institutional Buying And This Means Only One Thing

Bitcoin is holding firmly to its gains made during the wild rally of 4Q20. Trading above $24,000, yes, another all-time high on the weekend, with $4.7 billion in ‘real’ volume, BTC/USD is up 230% this year.

Despite these substantial gains, bitcoin is not looking like it will correct anytime soon. Many are expecting the digital asset to run even higher up before any pullback could be expected.

Similar views are of Ki-Young Ju, CEO of data provider CryptoQuant, and the reason for this continued bullishness is the ongoing institutional buying.

“This BTC bull-run never stops as long as these OTC indicators keep saying institutional-buying,” said Ju pointing to all the large over-the-desk deals still going on vigorously.

For starters, massive outflows can be seen in Coinbase BTC outflows going to their new cold wallet for custody that held 6k to 8k BTC. Whenever the US’s biggest exchange moves a significant amount of Bitcoins to other cold wallets, it indicates OTC deals.

The largest digital asset manager, Grayscale, which continues to add up BTC to its stash, uses Genesis Trading for buying Bitcoin, which in turn uses Coinbase OTC desks for that. Coinbase was the one that helped MicroStrategy in its initial $250 million investment. Ruffer also confirmed that they purchased their BTC via Coinbase.

Another indicator is the Fund Flow Ratio for all exchanges, the ratio of network transaction volume of exchanges among all the tokens transferred on the network. If this value goes up, it implies most of the network transactions are exchange deposits/withdrawals; otherwise, transaction volumes are coming from non-exchange wallets. Young Ju noted,

“Since the price is eventually determined on exchanges, massive non-exchange transaction volume is considered as a bullish signal. These transactions include OTC deals.”

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Currently, only 5% of the network transactions are used for exchange deposits and withdrawals. The same level was seen in February 2019 when major exchanges launched OTC desks.

Looking at Tokens Transferred, which is the number of Bitcoins transferred on the network, this indicator has been trading up ever since early August.

If the value of Token Transferred goes up and the fund flow ratio for all cryptocurrency exchanges goes down, it again “implies that huge OTC deals are ongoing.”

Based on these on-chain indicators that estimate OTC deals going under the hood by institutional investors, large OTC deals are happening, and they point out that “institutions are continuing to buy BTC.”

So, much like this week, which saw several levels and all-time highs getting breached, we could continue further up.

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Author: AnTy

Brazil Becomes The Latest Country To Confirm Plans to Launch A CBDC

Brazil’s Economy Minister recently spoke during the celebration of the Caixa Economica Federal’s 100 millionth digital savings account, and he used the opportunity to announce Brazil’s own CBDC.

The Central Bank Digital Currency (CBDC) trend is larger than ever, with countries worldwide announcing their intention to create their own digital currency, one after another. The latest in this long line is Brazil, whose Economy Minister personally confirmed plans to launch digital real.

Brazil announces its upcoming CBDC — digital real.

Brazil’s decision to launch its own digital currency does not come as a major surprise. After all, as soon as China announced digital yuan, many countries started developing their own CBDCs in China’s fear of obtaining too much influence.

As soon as a few nations’ central banks showed their willingness to start creating their own crypto, the rest were bound to follow. Brazil comes as the next one in line, as confirmed by its Economy Minister, Paulo Guedes.

Guedes made his statement yesterday, November 5th, during a special ceremony that celebrated the opening of the 100 millionth digital savings account in Caixa Economica Federal.

He said that the central bank is once again autonomous and that the digital dimension is booming. With that being the case, he revealed that Brazil would have its own digital currency and remain ahead of many other countries.

Brazil was prepared for work on CBDC, but it did not address it before

Interestingly, this was the first time that the country’s Economy Minister addressed this subject. However, he still did not reveal any more details regarding the upcoming digital real.

Of course, Brazil has been keeping an eye on crypto in the past. Its central bank even announced setting up a study group for potential CBDC issuance back in August.

Its president, Roberto Campos Neto, also said that Brazil requires improvement in its currency. However, he expected that this would happen within the scope of a new federal digital payment system, Pix. He said,

“In our case, Pix is very important because from now on, we see the union of an instant, open and interoperable form of payment with an open data system. They will meet somewhere in the future with a currency that has yet to be perfected.”

Brazil’s CBDC to arrive in 2022

As mentioned, there are currently no available details on the digital real, as not even the central bank has released new information about it. However, Campos Neto did reveal that digital real will be in circulation in 2022.

Another interesting thing regarding this announcement is its timing. As some may know, Pix just recorded its first transaction this Monday, and it will be officially available as of November 15th.

According to the central bank’s statement, it will only be used for foreign exchange transactions in and out of the country as for digital real.

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Author: Ali Raza

DeFi Shifts to A Risk-off Environment, But A 2017-like Crypto Rally is Still Far Off

During the recent Bitcoin rally, altcoins suffered losses, and DeFi tokens had an even worse time.

Today, as BTC went to the $13,000 level, driven by European lockdowns, the crypto market reported deeper red. This consolidation in BTC could give altcoins a chance to recover, but it’s undecided and remains to be seen.

In the past month, except for a handful of DeFi tokens like Aave and Maker, the majority of them extended their losses from last month.

The total value locked (TVL) in the decentralized finance (DeFI) sector has been unperturbed by the crash in price as it hit an all-time high at $12.46 billion on Oct. 25. But since then, it has dropped nearly 10% to about $11.2 billion, as per DeFi Pulse.

But such declines aren’t new for the TVL, and it tends to recover just as fast.

“Just want to say that we are still extremely early in DeFi. As an analogy to Bitcoin, we probably just experienced the spring 2013 hype cycle. We haven’t even seen the winter 2013 cycle yet. Let alone the 2017 cycle,” said entrepreneur and quant trader Qiao Wang.

According to him, in the DeFi hype cycle, we are currently at a point where half of the legit projects have capitulated while the other half are in the process of capitulating.

Ethereum, on which the whole ecosystem is built, price-wise, is trading around $385. The sector meanwhile has a record 9 million ETH locked in it.

DeFi tokens on Ethereum are still minuscule, though, as they currently account for 1.39% of the $365 billion total crypto market cap. In terms of a number of holders, they capture an even smaller share of the market.

DeFi governance tokens in Ethereum have declined by a third in just last month while stablecoins and tokenized versions of Bitcoin on Ethereum have managed to continue in terms of market cap.

The shift has been because of a shift to a risk-off environment into less volatile yield-generating assets. As such, yield farming is transitioning from attracting users with unsustainably high rewards “to a more methodical approach rewarding those that actually create value to DeFi protocols.”

“It appears that the catalyst for DeFi’s initial boost may also be behind its crash,” noted IntoTheBlock.

Besides the high inflation rates, the bigger the rise in the price of DeFi tokens, the larger the retrace.

“While DeFi may currently be negligible in comparison to the $1.5 trillion financial services industry, there is a high room for growth as these systems become scalable and adopted.”

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Author: AnTy

US Treasury Dept And Federal Reserve Are ‘Studying’ Possible Launch Of A Digital Dollar

Speaking during the online Atlantic Council webinar, the U.S Deputy Treasury Secretary, Justin Muzinich, said his department, alongside the Federal Reserve, is looking at launching a central bank digital currency (CBDC) tied to the dollar in the future.

This announcement follows a trail of the Federal Reserve’s previous efforts to launch digital dollar wallets liable to the central bank. Federal Reserve Bank of Cleveland President Loretta Mester, revealed last month that legislation is being set up so each American would own a digital dollar account with the Feds.

Notwithstanding, the Boston Federal Reserve announced in August that they are testing over 30 blockchain projects to prepare a digital dollar. However, the research and development process for a CBDC is set to take years to complete – having begun in 2015 – the Boston Fed said.

Muzinich stated the learning curve in launching a digital dollar on a distributed ledger would produce “efficiency benefits and cost benefits.” He further targeted the slow U.S. efforts in introducing its own dollar:

“And I also think, more broadly, it’s important for the government to embrace innovation and not be scared by it.”

However, there are still a few factors to consider in launching a CBDC, including regulation of the CBDC to prevent money laundering activities while maintaining users’ digital privacy.

On regulation of a digital dollar, Muzinich states governments worldwide – especially Europe – should work to regulate cryptocurrencies globally. This arises from the different functions of cryptocurrencies, away from payments.

Questions of money laundering have taken center-stage in the adoption of cryptocurrencies. Still, other issues such as financial stability and monetary base of the cryptocurrency should also be put in check. To keep the consumers and users of the digital dollar safe and secure, Muzinich stated the existing laws governing fiat currencies should be extended to crypto.

“Treasury has made it clear that the obligation to comply with U.S. laws is the same, regardless of whether a transaction is denominated in traditional fiat currency or digital currency.”

“Existing laws apply to digital assets in no uncertain terms.”

He explains that even if cryptocurrencies comply with the KYC/AML/CFT rules, there’s still a danger of foreign parties disrupting the monetary base creating financial instability. This could arise if a stablecoin issuer shifts its reserve ratio from fully backed to partially backed, or changing the composition of assets in reserve.

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Author: Lujan Odera

Crypto Funds Reporting ‘Impressive’ Performance This Year

Bitcoin had a good start in 2020, starting the year at around $7,200. During the market-wide crash in March, the digital asset crashed to $3,800 but only to surge to the yearly high of $12,630 in mid-August.

Up until August 31st, bitcoin recorded a return of 66.6%.

During the same period, Pantera unveiled returns of over 100% across various funds the firm manages, with its bitcoin fund gaining 61%, revealed the firm in its September 2020 investor letter. It was the company’s digital asset fund that recorded 168% returns and the ICO fund having a whopping 323% uptrend while the long-term ICO fund had a 270% return.

The outperformance of other funds has been primarily because of DeFi tokens that rallied hard between May and September of this year. The firm had invested in about 40 ICOs over the years.

Pantera’s Chief Investment Officers also pointed to DeFi as the main driver behind their portfolio performance. “We’ve been positioning the funds towards decentralized finance,” which they started acquiring some years back.

One of the largest digital currency funds in the space, Pantera, has reportedly nearly $500 million in AUM, compared to the largest asset manager Grayscale’s $5 billion AUM.

Also Read: Grayscale Bought 17,100 BTC Last Week, Now Holds 2.4% of Bitcoin’s Supply

Promise for value investing in crypto

Off The Chain Capital is another one that saw returns of 93% YTD compared to 57.2% returns posted by crypto funds during the same period.

The $40 million fund is also in talks to purchase about 1% of crypto-payments processor BitPay and another stake in the crypto exchange Kraken. Back in March, the Florida-based company bought 1% of Polychain Capital and then a year ago a stake in Digital Currency Group.

Additionally, Off The Chain has been buying claims of creditors of Mt.Gox every week and is its largest buyer.

“I learned about Bitcoin” in 2014, said Brian Estes, who runs the fund. “Coming from traditional finance, I thought it was just a scam. After the Mt. Gox hack, my value instincts kicked in, I started doing due diligence. I read the Satoshi white paper, and it clicked with me.”

It was when he started investing in bitcoin and crypto startups like Coinbase. His son actually grew his money from $500k to almost $10 million at the end of the 2017 bull run, which Estes then bought and opened to outside investors last year.

Additionally, it is packaging Bitcoin and Ether into equity-like investments to sell them through brokerage firms.

“Even if Bitcoin doesn’t move, we are making 40-60% a year on harvesting these premiums,” Estes said.

“Off The Chain’s reported performance this year has been impressive and may indicate promise for value investing in the crypto space, even as it has fallen out of favor with traditional equity investors,” said Josh Gnaizda, CEO of CryptoFundResearch.

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Author: AnTy

ECB Exploring Benefits & Risks of Digital Euro to Provide an Alternative to Crypto: President

In her introductory remarks, during the Franco-German Parliamentary Assembly on Monday, ECB President Christine Lagarde said they are “exploring the benefits, risks and operational challenges of introducing a digital euro.”

This ensures the strength and autonomy of European payment systems as the digital euro could be complemented to cash. She said,

“It could provide an alternative to private digital currencies and ensure that sovereign money remains at the core of European payment systems.”

While Lagarde, like other regulators, wants to keep the control of money issuance with the central banks, Galaxy’s Mike Novogratz says that it doesn’t matter because just like the traditional version, the digital one would devalue as well.

“Digital Central Bank issued FX is coming. I believe it will help the adoption of BTC and other crypto’s as well. If those same CBs keep printing their FX like its toilet paper, the digital version will depreciate. BTC won’t,” Novogratz said.

Shaping Europe’s Future

According to Lagarde, digitization is one of the trends that pandemic has the potential to accelerate.

“Trends that will lead to structural changes in the global economy.”

“We need to fully reap the potential gains from digital technologies and, at the same time, make sure labour markets remain inclusive,” she said.

Lagarde talked about accelerating the progress towards the Digital Single Market through economies of scale for digital firms.

Besides the digital euro, she also touched upon transitioning to a carbon-neutral economy and the coronavirus crisis, which is of “unprecedented magnitude,” giving Europe the “opportunity” to strengthen the Union.

Lagarde said ECB expects a rebound in activity in the second half of the year and judged that the economy still needs fiscal support for the recovery to continue and strengthen further, which has been critical in alleviating the impact of the pandemic.

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Author: AnTy