Cohen Not Going to Miss “Incredibly Transformational” Crypto While Dalio Finds BTC as A Cash Alternative

Steven Cohen Isn’t Going to Miss “Incredibly Transformational” Crypto While Ray Dalio Finds Bitcoin as an Alternative to Cash

While Point72 founder’s “cryptomaniac” helped him understand crypto, Bridgewater Associates founder continues to reiterate that Bitcoin “could still be controlled” and that it “could be tulips in Holland.”

Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates, reiterated that he owns some Bitcoin but expressed concern that there’s a danger of governments destroying the cryptocurrency market.

On CNBC during the SALT conference in New York, Dalio said,

“I think at the end of the day if it’s really successful … they will try to kill it. And I think they will kill it because they have ways of killing it.”

His comments came as US regulators are looking to increase oversight on the $2 trillion cryptocurrency market. Just this week, SEC Chair Gary Gensler said that the top securities regulator is working overtime and crafting rules to bolster regulation of crypto assets.

It, however, wasn’t the first time that Dalio raised concerns about political government action against Bitcoin. Previously he said that the government could ban the cryptocurrency as they would want to clamp down on alternative currencies that could challenge the dominance of the US dollar.

He further said that while El Salvador has become the world’s first nation to adopt Bitcoin as legal tender, India and China are “getting rid of it” while the US is talking about how to regulate it, so overall, “it could still be controlled,” Dalio said.

“It Could Be Tulips In Holland”

According to Dalio, cryptocurrencies represent diversification which “is a good thing,” noting portfolios need to be spread across more asset classes.

Dalio yet again called cash trash and warned that investors shouldn’t become too reliant on it. And he thinks Bitcoin is a good alternative to cash.

“I think it’s worth considering all the alternatives to cash and all the alternatives to the other financial assets. Bitcoin is a possibility. I have a certain amount of money in bitcoin.”

“It’s an amazing accomplishment to have brought it from where that programming occurred to where it is through the test of time.”

However, he also said that the leading cryptocurrency lacks intrinsic value or fundamental and objective worth. Then he likened it to the tulip bubble saying, in a historical perspective, there are many things that didn’t have any intrinsic value but had perceived value and went hot and cold.

“You just have to know what it is. It could be tulips in Holland.”

According to CNBC, Dalio owns a smaller percentage of bitcoin compared to gold holdings in his portfolio.

Not Going To Miss This

SALT conference host Anthony Scaramucci’s alternative investment firm, SkyBridge’s co-chief investment officer, Ray Nolte, meanwhile said at the event that they have a 12% investment in bitcoin.

Earlier this week at the conference, billionaire investor Steven Cohen also said that he hopes to not miss out on opportunities presented by digital currencies.

Cohen, the founder of Point72 Asset Management, shared that he was a bit of a skeptic when it came to cryptos until recently when his son, a “cryptomaniac,” helped change his mind.

“Once I decided there were opportunities, and I thought this could be a space like the internet — it could be incredibly transformational — I wasn’t going to miss this.”

Cohen, who has a net worth of $11.1 billion, is venturing deeper into the crypto world in both personal capacity and at his firm. He is also interested in the metaverse where “your mind can run wild.”

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Author: AnTy

Treasury Yields Flip Negative as Crypto Lending Takes Off: Kaiko Report

Real yields that recently hit their lowest levels since 2003 are going down as consumer prices increase at their slowest pace in six months, making fixed-assets in classic portfolios underperform.

The crypto market has been recovering from the July 21 low of just under $1.3 trillion, having reached $2.47 trillion when earlier last week, the market experienced a small hiccup yet again.

In the past week, the market has been trying to make its way back up again but is currently struggling to break out strongly above.

Still, Bitcoin is currently trading around $46,800 and Ether at about $3,400, while the total crypto market cap is now past $2.2 trillion.

Amidst this, as we reported, lending in the cryptocurrency sector has been taking off, with DeFi stablecoins’ interest rates continuing to increase. Stablecoins’ total market cap has also grown to $123.68 billion, from less than $6 billion in March 2020.

“Treasury yields flip negative as crypto lending takes off,” noted crypto data provider Kaiko in its latest report.

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US Treasury yields went down on Tuesday after data showed that consumer prices increased at their slowest pace in six months. The consumer price index, a key inflation report, showed a 5.3% year-over-year increase for August, and Core CPI, which excludes volatile food and energy prices, rose 0.1% month over month – both slightly less than the expectations.

In reaction to this, the yield on the benchmark 10-year Treasury note fell to 1.285%, and the yield on the 30-year Treasury bond slid to 1.867%. Yields move inversely to prices.

Nonfarm payrolls, however, grew by just 235,000 in August, well below expectations of 720,000 new positions.

The Federal Reserve is currently monitoring the inflation, which it wants to see hit its 2% target and looking for strong employment results to start paring the monthly bond purchases.

Kaiko noted in its report that the Fed’s emergency monetary accommodation is what has put significant downward pressure on long-term bond returns over the past year.

“As global inflation increased and growth expectations worsened, real yields turned negative hitting their lowest levels since 2003 this past August.”

While fixed-income assets have been offering steady income flows, low volatility, and protection against falling equity valuations in a diversified portfolio over the past years, now that yields are drifting lower, the fixed-income allocation in the classic 60/40 portfolio is likely to underperform.

This combination of the ongoing low yield environment and the rising demand for liquidity in crypto markets is making the nascent crypto lending industry popular among market participants, it said.

In comparison to 0.7% per year paid by a typical savings account, even the centralized options in the crypto offer sizable returns ranging from 3% to 12%, which can get astronomical for big risk-takers.

In DeFi, the popular lending protocols Compound Finance and Aave have already launched their services specifically for institutions.

“Crypto lending allows users to supply cryptocurrencies in exchange for earning an annualized return, even in the absence of price appreciation.”

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Author: AnTy

Macro Suggests Crypto Cycle Top Might Not be In, Risk-on Could Become a Key Narrative Once Again

After going to nearly $40,000, Bitcoin is down at $38k yet again today. Meanwhile, Ether, currently above $2,600, went as high as $2,770 late on Wednesday ahead of its much anticipated London upgrade that will activate EIP 1559.

The total crypto market cap is also back near $1.7 trillion, up from a $1.29 trillion low a fortnight back.

As crypto asset prices make a strong recovery, the fear of a prolonged 3-year bear market, like after the 2017 bull market, following the new all-time highs in April and May, has been subsidizing. Some traders and investors expect to see a repeat of the first half of 2021.

“Hard to see the cycle top while the Fed remains dovish,” said trader and economist Alex Kruger.

“The Fed remains dovish even as it starts to discuss tapering as it’s concerned with jobs, while it sees inflation as transitory. Jobs are taking longer to recover as remote work has increased productivity. NFP data is key.”

As we have reported, Federal Reserve Chair Jerome Powell has assured the market at every turn that there is still a way to go before fiscal support is removed as employment targets are not met yet. He will tell in advance when the tapering would officially begin.

Divided Views

Fed Vice Chair Richard Clarida, a key architect of the US central bank’s new policy strategy, also said this week that an interest rate hike was likely in 2023, while he could “certainly” see an announcement on a taper “later this year.”

“Commencing policy normalization in 2023 would, under these conditions, be entirely consistent with our new flexible average inflation targeting framework,” he said in a webcast discussion hosted by the Peterson Institute for International Economics.

Fed officials, however, seem divided over when to start tapering, with St. Louis Fed President James Bullard calling for a quicker reduction of the bond-buying. Bullard said earlier on Wednesday,

“So you’d be sitting here next summer, with inflation well above target and jobs on the way back to pre-pandemic levels. That sounds to me like that’s something we should be prepared for.”

While Dallas Fed President Robert Kaplan is also endorsing tapering to start “soon,” his views differ from Bullard in the sense that he wants to pare the pace of purchases gradually.

Market at Glance

Amidst the tapering talks, the dollar has gained strength as it trades above 92.2 while spot gold is around 1,811.62 per ounce.

S&P 500 meanwhile fell from its record high of 4,429 hit on July 29 to 4,402 after data signaled a slowdown in job growth last month. The benchmark index has been on the rise ever since the March sell-off when it fell to 2,200.

Robinhood Markets (HOOD) is actually leading after having a slow start of its debut when it opened at $33, but on Wednesday, it went as high as $85 and is currently trading at $70.39.

The actual yield on 10-year Treasuries fell to a record low as corners over the outlook for economic growth mounts. The exact rate which removes the expected impact of inflation over the next decade is at minus 1.13%

Meanwhile, the cryptocurrency market is also enjoying recovering after experiencing a sharp pullback, 50% to as high as 95%, despite the ongoing regulatory scrutiny. Kruger said,

“Family offices and HNI (high net worth individuals) still coming in. Real yields just hit a new historical low (negative) that pushes speculators out the risk curve. Could become a key narrative once again.”

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Author: AnTy

Major US Bitcoin Mining Company Going Public at $4.3B Valuation via SPAC Backed by BlackRock

Major US Bitcoin Mining Company Going Public at $4.3B Valuation via SPAC Backed by BlackRock

100% net carbon neutral miner, Core Scientific, which mined 928 BTC in Q2 and over 3,000 BTC so far in 2021, is also planning to expand to more states.

Core Scientific Holding is going public through a merger with a blank-check company that puts its valuation at $4.3 billion.

Rival public cryptocurrency miners Marathon Digital and Riot Blockchain have market capitalizations of $2.25 billion and $2.18 billion respectively.

A major US cryptocurrency mining company, Core Scientific, is signing a deal with Power & Digital Infrastructure Acquisition Corp, which is backed by BlackRock Inc. This deal will fetch $300 million in cash proceeds, but they didn’t disclose a private investment in public equity (PIPE) round.

Core plans to funnel this fresh capital back into the company to fund growth.

Special purpose acquisition companies (SPACs) have become a popular way to go public where pools of capital are raised through initial public offerings to merge with a private company and take it public.

Power & Digital raised $345 million in an upsized IPO in February.

The company mined 928 BTC in Q2 and a total of over 3,000 BTC so far in 2021 compared to Marathon mining, a total of 846 BTC and Riot 1,167.

In 2020, it generated $60 million in revenue and forecast revenues of $493 million and $1.1 billion for fiscal 2021 and 2022, respectively.

Core is currently adding capacity at its existing sites, which operates about 80,000 rigs and will be extended to the past 300,000 miners by the end of 2022. The company is also looking to build more facilities in potentially one to two more states.

“We’re all sold out. Every bit of infrastructure we can build — and we’re the biggest — we have demand for,” co-chairman and CEO Mike Levitt said in an interview.

“We’re basically sold out of capacity through 2022, and we’re building more.”

Core Scientific, which has operations in North Dakota, North Carolina, Georgia, and Kentucky, said it was 100% net carbon neutral, with 56% of its electricity coming from sustainable sources, including solar, wind, hydro, and nuclear. It buys carbon credits to offset the rest.

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Author: AnTy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Author: AnTy

Fortnite Going Ethereum? More Likely to be the Community Hoping and Coping

Fortnite Going Ethereum? More Likely to be the Community Hoping and Coping

Popular online video game Fortnite has added a new skin called “Etheria,” which has the cryptocurrency community speculating that it is somehow related to the second-largest cryptocurrency Ethereum.

Aestheticdemon is the concept creator of Etheria.

The name is not the only thing that bears a resemblance to Ethereum. The images circulating online also have an object that looks similar to Ethereum’s diamond-shaped logo.

But this seems to be reaching as by this standard “Call of Duty: Black Ops Cold War” could be into Ethereum as well as an energy source in this game is called “Aetherium Crystals.”

This could very well be a case of Apophenia, trying to perceive meaningful connections between unrelated things.

Ethereum subreddit meanwhile remained hopeful and continued to cope after Ether’s latest sell-off to $1,700, a drop of more than 61% from last month’s peak. One such hopeful Redditor commented, “Eth to 40k confirmed.”

But it’s not just the ETH community; the entire crypto market is looking for a bullish narrative after the latest deep rout — a catalyst to bring back the bullish sentiments and push up the prices again.

Fortnite, however, is no stranger to cryptos or even Ethereum as a year ago, when Reddit launched two types of Ethereum-based cryptos, Moons, and Bricks, they were a hit among the gaming community.

These Ethereum-based “Community Points,” which were also launched in cryptocurrency subreddits, got more interest from gamers than the crypto community and gained more than 10,000 users in just a week.

Epic Games, which has a valuation of about $28.7 billion, launched Fortnite in 2017.

“Fortnite” creator Epic Games said on Tuesday that it now has over 500 million accounts and that it has 2.7 billion friend connections across “Fortnite,” “Rocket League,” and the Epic Games Store. As of June 2020, Fortnite has 350 million registered users.

The video game developer is currently fighting a legal battle with Apple Inc. As we reported last August, the lawsuit claimed that Apple’s anticompetitive conduct eliminates alternative payment options like Bitcoin to be used in the game, which the tech giant confirmed, saying it violated the App store guidelines regarding in-app payments.

Epic Games founder Tim Sweeney is actually very bullish on NFTs and the crypto metaverse. The company raised $1 billion in funding this April to support its long-term vision for the metaverse.

While he called the crypto investment a “wild, speculative mess,” earlier this year, Sweeney added, “the tech is going places.”

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Author: AnTy

Tunisia’s Economy Minister says He’s Going to Decriminalize Buying Bitcoin

Tunisia’s Economy Minister says He’s Going to Decriminalize Buying Bitcoin

The latest country working on changing its rules and regulations around cryptocurrencies is Tunisia which plans to decriminalize owning Bitcoin and crypto.

Tunisia’s minister of economy said over the weekend that he wants to change the law around cryptocurrencies which condemns people for mining cryptos and using them as payment. He said,

“I will change the law, we cannot put a Tunisian young man in prison for buying Bitcoin.”

Back in 2020, Marouane Abassi, Governor of the Central Bank of Tunisia, said that “we must follow” Bitcoin and the technology and prepare for effective monitoring of its use cases.

A year before that, Tunisia, along with Afghanistan, was looking to issue bitcoin-based bonds to help save their ravaged economies. At the time, Marouane said the country had created a special group to explore functionalities of a sovereign Bitcoin bond and that crypto and blockchain offers.

“central banks an efficient tool to combat money-laundering, manage remittances, fight cross-border terrorism and limit grey economies.”

The same year, in 2019, Tunisia became the first African country to move its national currency to a blockchain platform with the help of the universal contracting platform, Monetas.

“eDinar” can be used to make money transfers, pay for utility bills, and manage official government identification documents, which is also available to transfer between citizens at shops, cafes, and restaurants amidst the central bank’s plans to integrate it in cross-border payments and circumvent the need for US dollars.

Tunisia is currently in discussion with the International Monetary Fund (IMF) regarding a new program focused on the size of the loan as talks continue on reforms for the country’s troubled economy.

It is discussing phasing out subsidies as Tunisia is considering the gradual removal of subsidies on food, electricity, and natural gas by 2024.

Now, finally, the country may take some constructive steps towards cryptocurrencies as more and more countries announce their support for crypto.

El Salvador is one such crypto-friendly country that is all set to make Bitcoin legal tender and use volcanic geothermal energy to mine the cryptocurrency.

“The President of the Central American Bank (BCIE), a bank with 13.5 billion dollars in assets, supports our Bitcoin Law,” tweeted President Nayib Bukele over the weekend after the Central American Bank for Economic Integration (BCIE) said they would hold a press conference this week to talk about their approval of El Salvador’s support for Bitcoin.

Elsewhere, think tank Lobby New Zealand has sent a letter to Prime Minister Jacinda Ardern “asking that the New Zealand Government recognize Bitcoin as a foreign currency in eighty-six days when Bitcoin becomes legal tender in El Salvador.”

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Author: AnTy

The May Crypto Sell-off Predominantly Occurred in the US Session

Bitcoin continues to chop.

Currently, in a ‘crab’ pattern, the price of Bitcoin is constantly going up and down by a few thousand dollars but remains range-bound within $30k-$40k.

Having a drawdown of 50% after rallying 1,610% from March low to mid-April all-time high, the sideways trading is expected to continue for months and trend up if the bull market is intact and down if we are in fact in a bear market.

With new retail, institutions, corporations, and even countries involved in Bitcoin this time, it’s to be seen just how this cycle will play out.

But for now, activity is dying down this month.

May was a record month in terms of many factors, such as volume and fees. But the month ended up wiping out more than a trillion dollars from the market as BTC dropped to $30,000 and $28k on some exchanges. Ether meanwhile ended up falling to $1,725 from the high of $4,375 that occurred just over ten days before. ETH 0.80% Ethereum / USD ETHUSD $ 2,372.48
$18.980.80%
Volume 25.72 b Change $18.98 Open $2,372.48 Circulating 116.27 m Market Cap 275.84 b
11 h The May Crypto Sell-off Predominantly Occurred in the US Session 1 d Best Cryptocurrencies with Growth Potential to Buy In June 1 d Polygon And 0x Team Up to Devote $10.5 Million Into Attracting New Users & Developers

During this May sell-off, the most selling actually occurred during the US session.

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Now, with most of the gains made in 2021 wiped out, people aren’t really getting back into the market yet, which according to some, could be a ‘sell in May and go away’ phenomenon in work.

This has the volume on exchanges dropping substantially in recent weeks. Daily exchange volume (7DMA) has gone down to $41.44 billion on June 12th from the ATH of $89.69 billion on May 26th.

Even the new follower count of big exchanges has been recording a big drop. Trading in NFTs has also come down a lot, but it remains a much bigger space than last year.

Much like the spot market, in the futures market, so far in nearly two weeks, the total volume is $670 billion; last month, the total futures volume reached 2.56 trillion.

At its height in April, the aggregate open interest of Bitcoin futures was $27.68 bln, which fell to May’s highest $20.91 only to drop even further in June, currently at $12.30 bln. Aggregate OI for Ether futures is currently $6.05 bln, down from $11.6 bln last month.

The premium in the futures market has also gone down massively. Funding rates have fallen into the negative territory; just last month, the annualized basis was 40.71%.

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Author: AnTy

Bridgewater Associates CEO Ray Dalio Owns Bitcoin, But Cautions its ‘Greatest Risk is its Success’

We’re in the part of the cycle where gold, bitcoin, real estate, everything is going up, but with the US dollar on the verge of devaluation and inflation looming, future expected returns go down after a point, meaning there’s “no longer the incentive to buy those things.”

“I have some bitcoin,” revealed Ray Dalio, the founder, and CEO of the world’s largest hedge fund Bridgewater Associates.

Dalio revealed this during the Consensus event held by CoinDesk that was recorded on May 6, joining the herd of institutional investors warming up to cryptocurrencies.

This is because he would rather “have bitcoin than a bond” in an inflationary scenario, he said.

This makes sense given that since March 2020, the price of Bitcoin has gone from $3,800 to $65,000, and even after the recent 54% sell-off, it is trading around $37,500. Meanwhile, the yield on benchmark notes, US 10-year Treasury bonds, has only managed to move from 1.473% to 1.62%.

The yield on treasury bonds has been falling for decades, which was at 15.82% back in late 1981. Bitcoin, on the other hand, has been hitting a new ATH every cycle.

Dalio was previously skeptical about Bitcoin and later said he is learning about it and then wrote about it having the capacity to be an alternative store of value. Now, he has finally come around and invested in cryptocurrency. Recently, as we reported, Bridgewater’s chief financial officer, John Dalby, left the firm to join bitcoin custodian NYDIG.

Bitcoin looks appealing in the current environment where the US dollar is on the verge of devaluation, last seen in 1971, said Dalio. China is threatening USD’s role as the world’s reserve currency.

Here, Bitcoin with its gold-like properties is looking increasingly attractive as a savings vehicle, he said.

However, for him, the biggest concern remains regulatory crackdown. Dalio said,

“Bitcoin’s greatest risk is its success.”

Losing Control

During his interview, Dalio talked about how the greenback is in the mid of the first cycle, “debt and credit create buying power,” of the rise and fall of the global reserve currencies.

The second cycle is an “internal cohesiveness clash cycle” as both the wealth gap and political groups grow and then the rise of another great power that challenges the existing top currency.

The first cycle started as the government created buying power, a “stimulant” in the short term, but eventually, they have to pay back their debts, becoming long-term “depressants.”

So, if they need more money, they have to keep printing, and then taxes go up, leading to capital controls as happened in 1971 when President Richard Nixon took the U.S. off the gold standard, making dollar “fiat” currency, and stocks went up.

“It causes… gold, bitcoin, real estate, everything to go up because it’s really going down in dollars. And that’s the part of the cycle we’re in.”

Inflation is of importance here, especially monetary inflation that happens due to a devaluation of the currency, rather than the other one caused by supply and demand.

While pushing the prices of real estate, stocks, and cryptocurrencies up, their future expected returns would go down after a point. Once they come down to the interest rate level, “then there’s no longer the incentive to buy those things.”

However, a neutral cryptocurrency such as Bitcoin can act as gold, but the government has the capacity to control anything. And as more people start preferring Bitcoin than bonds, like him, the more savings go into BTC than into credit, “then [governments] lose control of that,” he said.

And such a situation, he said, can lead those governments to crack down on bitcoin holders, he said. Overall, it’s about technology and whoever wins this race wins it all, Dalio said.

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Author: AnTy

The Long and Short of Bitcoin (BTC) This Week

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

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

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

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

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

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

Becoming Digital Gold

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

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

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

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

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

What’s Market Speculating

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

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

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

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

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Author: AnTy