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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Author: AnTy

Thailand SEC Plans to Introduce New Rule on Crypto Trading as Young Investors Rush In

Thailand SEC Plans to Introduce New Rule on Crypto Trading as Young Investors Rush In

In January, the trading on the nation’s licensed exchanges tripled from the previous month. With very young investors involved, students and teenagers, regulators will be revealing new proposed rules this week.

Thailand is planning to introduce new rules to curb cryptocurrency trading by individuals. The move is made in response to a surge in inflows from young investors, which is concerning the regulators. Ruenvadee Suwanmongkol, the secretary-general of the Securities & Exchange Commission, in an interview on Friday, said,

“It’s a big concern as most crypto investors on domestic exchanges are very young, such as students and teenagers.”

“We realize those people love innovations and technology, but investments in these assets have enormous risk.”

The regulators are now planning to have retail investors show their income or assets before being allowed to open trading accounts with the nation’s six licensed cryptocurrency exchanges, said Suwanmongkol.

She added that those who aren’t allowed to trade cryptocurrencies through their own accounts could invest through financial managers or licensed fund managers.

As per these new rules, individual investors may even be required to have some knowledge of crypto markets before they are allowed to open accounts to trade digital currencies.

In the month of January, crypto trading on the licensed bourses of Southeast Asia’s second-biggest economy tripled from the previous month to 56 billion baht ($2.17 billion), revealed SEC data. Over 90% of this trading comes from Thai citizens.

These new proposed rules on cryptocurrency trading will be disclosed by the regulators this week before holding a public hearing in early March, said Ruenvadee. However, before finalizing the limitations, officials will be taking suggestions and recommendations from crypto exchange operators, brokerages, and other related parties, she added.

The nation may soon see its first initial coin offering as well. The new token to be offered by a local company in the first half will be backed by the rental revenue of properties.

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Author: AnTy

Crypto Exchange OKCoin Delists Bitcoin Forks, BCH & BSV to Prevent New Retail Investors from Being Deceived

Crypto Exchange OKCoin Delists Bitcoin Forks, BCH & BSV to Prevent New Retail Investors from Being Deceived

The exchange is open to revisiting this decision if both the communities “listen to the broader market and choose to rebrand away from Bitcoin in pursuit of their own path.”

Cryptocurrency exchange OKCoin has announced the suspension of Bitcoin forks, Bitcoin Cash (BCH), and Bitcoin SV (BSV) starting March 1, at 7:00 pm PST.

In the past 24 hours, the exchange recorded just under $70 million volumes per Coinmarketcap, out of which BCH/USD and BSV/USD accounted for 0.38% and 0.26% of it, respectively.

The prices of both the digital currencies are unaffected, with Bitcoin Cash trading at $738, up 112% YTD, and Bitcoin SV at $250 (52% gains).

Besides these assets, other pairs are also getting delisted, including ETC/USD, EURS/EUR, BTC/EURS, BCH/EUR, and BSV/USD, along with spot and margin trading for BCH/USD.

Users are advised to cancel open orders for these pairs, or the system itself will cancel them within two working days. Those who borrowed from the BCH/USD margin pair are also required to return the borrowed value before March 1st.

Exchange CEO Hong Fang specifically shared the reason behind the decision to delist the Bitcoin forks, which she said “was not an easy” one.

This is because, while on the one hand, the exchange believes that “we should let our customers make their own decision” regarding investing in certain crypto assets, on the other hand, they “feel very disturbed by the copyright claim and threat of legal actions” that Craig Wright, the infamous self-proclaimed creator of Bitcoin and BSV supporter, is waging against the open-source community.

Wright’s claims challenge the ethos of open-source, decentralized, and community-driven consensus, which is the foundation of Bitcoin, she said.

By allowing BSV trading on the platform, of which Wright is a significant and influential stakeholder, the exchange runs the risk of implicitly supporting an attack on the open-source community.

Moreover, with a new wave of investors entering the crypto market amidst the bull market, the misuse of Bitcoin’s brand to promote themselves as the ‘true Bitcoin’ “can be very misleading to new retail investors.”

Fang said they would be happy to revisit their decision to delist these two cryptos if both the communities “listen to the broader market and choose to rebrand away from Bitcoin in pursuit of their own path.”

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Author: AnTy

A Growing Number of British Investors Believe Crypto is as Safe as the Stock Market

A Growing Number of British Investors Believe Crypto is as Safe as the Stock Market

A recent poll suggests that Brits are getting more comfortable with cryptocurrencies. American investors also appear to be warming up more to crypto as their appetite for risk grows.

  • Despite their growing maturity over the past few years, cryptocurrencies have continued to face criticism over their perceived volatility and susceptibility to massive price swings.
  • However, the tide appears to be turning in Britain, as investors are getting more comfortable with the fledgling asset class.

Crypto on the Same Pedestal as Stocks

This week, market research and consumer insights provider, Piplsay, shared the results of a survey conducted on British investors about cryptocurrency. The survey consisted of 6,070 British investors above the age of 18, showing that a growing number of them now view cryptocurrencies as safe investments.

As the survey showed, over 40 percent of respondents described cryptocurrencies as safe, compared to 31 percent who viewed them as dangerous. Another 27 percent responded neutrally. Comparing cryptocurrencies to stocks, 41 percent claimed that both asset classes are on equal risk footing, while 45 percent believe that stocks are still safer than cryptocurrencies.

Of those who expressed concern about cryptocurrencies, almost 30 percent cited the potential for fraud and hacks as their primary concern. 26 percent also expressed concern over regulatory uncertainty, while only 19 percent pointed to the issue of price volatility.

Despite the growing sentiment over cryptocurrencies’ safety, 57 percent of respondents claimed that they didn’t have any desire to own digital assets. Of these, 46 percent claimed that they stayed away from cryptocurrencies because they had little to no knowledge of the asset class.

At the same time, 46 percent of all respondents also opined that large brands in the country should accept crypto payments. Most of these people cited the recent increased demand for crypto as payment methods as their reason.

American Investors Beef Up Risk Appetite

Investors’ growing desire to trade in cryptocurrencies isn’t native to Britain alone. Across the pond, professional investors are also trooping into the crypto space, encouraged by the market’s growth over the past year.

Last month, a fund manager survey from Bank of America showed that Bitcoin had become the most crowded trade in the country. Per a Reuters report, 36 percent of respondents in the survey identified the “long Bitcoin” bet as the most crowded trade, beating out “long tech.”

The Bank of America report marked the first time that “long tech” will be knocked from atop its perch since October 2019. It also marks a growing positive investor sentiment for Bitcoin, which was only third on the list in December 2020.

Several fund managers have also been hyping Bitcoin as a safe asset to invest in. Last month, Anthony Scaramucci and Brett Messing of New York hedge fund SkyBridge Capital wrote in an op-ed that Bitcoin is just as safe an investment as stocks or government bonds. The hedge fund managers wrote,

“[…] increased regulations, improved infrastructure and access to financial institutions — like Fidelity — that hold investors’ money have made bitcoin investments as safe as owning bonds and commodities like gold, which are also used to balance portfolios.”

With the cryptocurrency market delivering steady returns over other investment classes, investor sentiment remains strong.

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Author: Jimmy Aki

Growing Number of Women Are Now Trading Bitcoin; Average Age of Investors Is Falling

Growing Number of Women Are Now Trading Bitcoin; Average Age of Investors Is Falling

Only 15% of Bitcoin traders are women, according to a survey by the brokerage service provider eToro.

While this shows a gender disparity in the world of cryptocurrencies, the number of women investing in the crypto is increasing. Women investing in Bitcoin (BTC) and Ethereum (ETH) made up 10% and 11% respectively in early 2020, but it increased to 15% and 12% over the past year, respectively.

A poll run by a trader on Crypto Twitter (CT) also reveals that just over 8% of the traders are female.

Amidst the ongoing bull mania, the subscriber number on the platform has also skyrocketed. eToro users more than doubled over the past year while their average age is falling.

For Bitcoin, the average age of investors has dropped from 37 in 2017 to now 35. As for average Ethereum investors, it has dropped from 35 to 32 over the same period.

“The great attractiveness of the cryptocurrency sector is increasingly reflected in the diversification of the investor base,” said Simon Peters, market analyst, and cryptocurrency expert at eToro.

Diversification is also increasingly seen in crypto assets. While trading activity jumped 167% in Bitcoin to become the most popular cryptocurrency among eToro clients, Ether is at 2nd spot but with a 313% change in its trade activity.

XRP is the only one with a -53% change. Cardano’s (ADA) jump in prices has made the digital asset the 3rd most popular crypto and seeing an increase of 252% in its trading activity.

Other popular cryptos on the platform are Stellar (XLM), Litecoin (LTC), Bitcoin Cash (BCH), Dash, MIOTA, and Tron (TRX).

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Author: AnTy

WallStreetBets Investors Are Coming to the Conclusion that ‘Bitcoin is the Way to Beat Wall Street’

WallStreetBets Investors Are Coming to the Conclusion that ‘Bitcoin is the Way to Beat Wall Street’

After all that occurred last week between Wall Street Bets and Robinhood, the retail traders who make up what’s been described by some supporters like Reddit founder as “revolution” recognize the need for decentralization.

“You can’t beat Wall Street using Wall Street. Switch to Bitcoin and watch the powerful become powerless,” tweeted WSBChairman to his more than 949k followers on Twitter.

This is not the first time that a crypto-friendly tweet came from WSBChairman. On Monday, the Twitter handle posted about Bitcoin being the “only way to truly stick it to Wall Street.”

“The era of cryptocurrency has arrived,” he tweeted the very same day only to add in a subsequent tweet, “Cryptocurrency has never had a better argument for its use.”

Interestingly, unlike Wall Street, where a few powerful people hold the majority of the stakes, in the world of Bitcoin, it’s the smallest participants that hold less than 1-10 BTC, that are estimated to have increased by 130% since 2017 bull market, as per Glassnode data.

The second smallest participants, those holding between 10% to 100%, grew by 14%, while the large entities, those with 100-1k BTC and 1k-over 5k, have decreased by -3% and -7%, respectively.

This movement is also seeing former President of TD Ameritrade, Asif Hirji calling out for a “decentralized stock exchange.”

Muck like Hirji, billionaire Mark Cuban also feels stocks will make their way on the blockchain in the future “and that will make the markets much more efficient, transparent and available to the small investor,” he wrote during his Reddit AMA session on Tuesday. He also said: “I think blockchain is the future, I don’t know if it’s decentralized or private.”

The owner of Dallas Mavericks, who has started seeing the potential in the cryptocurrencies and NFTs, also said he sees DeFi and non-fungible tokens having the potential to “explode in the next 10 years.” But “there will be a lot of ups and downs along the way,” he added.

He also revealed that he owns DeFi tokens AAVE and Sushi and Eth, BTC, and LTC.

As we reported, the cryptocurrency market has been capitalizing on this opportunity as crypto exchanges like FTX and Bitfinex listed the popular stocks among the retail traders. FTX’s crypto tracking app Blockfolio also jumped in and announced crypto and stock trading.

Crypto trading platforms already started to register record user sign-ups, traffic, and volume amidst the “marketing ad for Decentralization.”

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Author: AnTy

“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor

“Young Male” Bitcoin & GME Investors Setting Up for an ‘Explosion’ in Depression: NYU Professor

Much like young women “became very depressed by sitting in their rooms looking at Instagram,” said Scott Galloway, who also feels these men staring at their phone watching BTC and AMC price are “not having (enough) sex.”

On one side, we have the likes of the billionaire owner of Dallas Maverick Mark Cuban and Social Capital CEO Chamath Palihapitiya, who are calling what transpired around heavily shorted stocks like Gamestop and AMC as a change in the financial system.

On the other side, we have Scott Galloway, a professor of marketing at NYU Stern, according to whom the matter is much simpler — these retail investors on Reddit are actually “young men not having (enough) sex,” he said. It’s just not related to sex alone, either; according to Galloway,

“We are setting ourselves up similar to how there’s a ton of young women out there who became very depressed by sitting in their rooms looking at Instagram, self-cutting and self-harm skyrocket.”

He goes on to say that this will result in an “explosion” of depression in young males only to add further, “it is going to be reverse engineered to apps that convince you, you’re part of a movement or physically addict you to your phone.”

The Biggest Loss of Capital

Galloway started with his theory on Twitter last week when he explained how:

“Arm young men, in a basement, not at work, not having sex, not forming a connection, with an RH account, a phone, and stimulus, and you have the perfect storm of volatility as they wage war against established players while squeezing the dopa bag, harder and harder.”

He further pushed his theory on MSNBC when he said the “biggest loss of capital” is the loss of human capital of “young men sitting and staring at their phone and watching the price of Bitcoin, or the price of AMC.”

Galloway basically wants these young men to form relationships with people rather than be “the person on the other side of the trade.”

Galloway, who has been around the markets for two decades, went on with, “the arc of the market is jagged and irrational, but it typically bends towards reattaching to the fundamentals,” which puts these stocks “much lower,” so “be prepared to lose 80% to 90% of it.”

“The greatest loss in capital here is from young men who are more prone to gambling addiction, who don’t understand the markets.”

It’s nothing new, he said, noting that hedge funds haven’t played out already. Just an age-old contract of “old men” to “stick it to the man and have young people attack the castle so they can get wealthier.”

Galloway is not alone in this; such attempts have been made by wealthier investors since last week. However, this time, the losses were felt by international investors as well as hedge fund Melvin Capital lost 50% of its investment.

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Author: AnTy

The UNI Airdrop is Now Worth Over $7k as Google Searches Rise Up & Volume Hits New Highs

The traditional investors are coming to the world of decentralization. Uniswap allows users to front-run the rest of the world amidst the ongoing censoring.

UNI, the 13th largest cryptocurrency by market cap of $5.14 billion, is the largest DeFi token. The digital asset that enjoyed an uptrend throughout last week to reach nearly $20 is up 275% YTD.

These gains made the UNI airdrop currently worth a whopping more than $7,000. The popular decentralized exchange (DEX) Uniswap launched its governance token UNI in September, less than five months back. UNI tokens were airdropped to all of the users who provided liquidity to the platform before Sept. 1st.

UNI tokens’ worth is increasing as more and more users are using the decentralized exchange, which gained momentum after the Robinhood fiasco. The zero-commission broker halted the trading of popular stocks like GME and has now limited the number of shares that can be purchased. The popular retail app also halted crypto trading last week.

This pushed the traditional investors to the world of decentralized finance (DeFi).

Uniswap is actually allowing traders to front-run the rest of the world as it is open for trading 24/7/365, as is the entire crypto space.

This can be seen in the Google search volumes for “Uniswap,” which is now reaching their DeFi summer levels. The search volumes gained momentum last week just as the WallStreetBets vs. Wall Street battle intensified with trading platforms and social media platforms limited the retail traders’ scope.

Google Trends for the search term “Uniswap”

Source: Google Trends “Uniswap”

Another indicator showing an increased interest in using Uniswap can be seen in its volumes.

Interestingly, throughout January, the decentralized exchange (DEX) has been recording higher than ever volumes. All four weeks of Jan. saw $5.5 billion of volume, as per Uniswap.info.

When it comes to daily volume, it kept above $700 million, and several times it went over $1 billion.

According to Dune Analytics, Uniswap did over $25 billion in volume in January, while its competitor Sushiswap did $12.17 billion, and $6.7 billion was recorded by Curve.

The total DEX volume recorded in the last 30 days was $54 billion, with Uniswap accounting for 48.4% of the share, followed by SushiSwap’s 23.5% and Curve’s 9.6%.

“The writing is on the wall. The majority of non-fiat trading will end up on decentralized, borderless, uncensorable venues,” commented Erik Voorhees, the CEO of the self-custody crypto platform ShapeShift, which is integrating with decentralized protocols and apps.

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Author: AnTy

As Adoption Sets In, 60% of Crypto Investors Are Storing Funds On Exchanges: Binance

As Adoption Sets In, 60% of Crypto Investors Are Storing Funds On Exchanges: Binance

Binance’s latest report shows that most crypto owners are hodlers. The prevalence of Bitcoin hodlers could also lead to a liquidity crunch as traders’ demand rises.

The cryptocurrency market is getting more diverse. Many have had different preferences and reasons to stay in the market, with different facets and sub-industries available.

In a new report, top crypto exchange Binance shared details of the market’s status and how investors see digital assets in general.

Hodl, Hodl, Hodl

This week, the top exchange shared its 2021 Global Crypto User Index, a report showing crypto users’ perception of digital assets across the board. The report outlined a survey conducted between September 15 and October 25, 2020. Binance took responses from 61,000 crypto users across 178 countries and regions.

Most prominent in the report is the distribution of crypto users by reason. As Binance noted, the vast majority of crypto users are “hodlers.” Hodlers is a crypto term used to describe investors who purchase digital assets to keep long term. The poll shows that 39 percent of respondents are hodlers, followed by 28 percent who claimed to be keeping their cryptos to buy other cryptos.

22 percent of respondents said that they primarily use their digital assets for lending and staking, the latter of which has been prevalent in the past year. Only 11 percent of investors claimed that they use their cryptocurrencies for payments, showing that the asset class has yet to fulfill its potential as a viable payment method.

Solidifying Fears of a Liquidity Crisis

The prevalence of hodlers in the industry shows that a lot of investors are using their assets as a store of value. While many in the traditional finance space have criticized digital assets for their volatility, assets like Bitcoin have consistently delivered higher returns than their competitors.

However, having more hodlers in the industry also reinforces the fears of a possible liquidity crisis. Day traders have been left to fend for themselves, with Bitcoin in short supply. Earlier this month, Glassnode reported that 78 percent of the Bitcoin available in circulation is illiquid, with only 4.2 million tokens changing hands. Mining rig manufacturers are also working extra to push out new hardware to mine new bitcoins.

Last week, Reuters reported that mining companies had been running out of inventory as miners are working double-time to meet the increasing demand for Bitcoin. Bitmain, the industry’s top mining rig manufacturer, has maxed its production capacity and won’t have any inventory until August.

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Author: Jimmy Aki

Fireblocks Introduces Crypto Staking for Institutional Investors

Fireblocks Introduces Crypto Staking for Institutional Investors; Ethereum, Tezos and Polkadot

Fireblocks wants to help institutional investors access crypto staking opportunities. The company’s institutional focus comes at a time when interest in crypto is high.

Digital asset security platform Fireblocks has been working over the past year to improve institutional access to cryptocurrencies. Following the success in decentralized finance (DeFi) and more, the company is now turning its sights to the burgeoning staking scene.

Staking is for Everyone

Fireblocks plans to support hosted proof-of-stake (PoS) services for Ethereum 2.0, Tezos, and Polkadot, as it opens up token staking to its institutional client base.

Fireblocks has over 165 clients, which includes heavyweight crypto lenders Salt, Celsius, and UK-based Fintech firm Revolut. The crypto custodian is partnering with popular staking providers Staked and Blockdaemon to pull this off.

Company chief executive Michael Shaulov confirmed that the move was largely due to increased investor demand.

As he pointed out, most of Fireblock’s customers hold Bitcoin, while a small minority hold altcoins. That small minority is split in assets such as XTZ, DOT, and ETH, which total about $1 billion.

Institutional investors with idle funds, should expect between 5 and 15 percent in yields annually if they lock up their funds on the platform.

Fireblocks’ customers will maintain custody of their funds in their MPC-based wallets. From there, they can monitor their performance on Staked and Blockdaemon.

Data from Staking Rewards shows that the two are ranked first and sixth, respectively, on the list of crypto assets by staked value. With Polkadot staking in particularly high demand, Fireblocks appears to be in an excellent position to land its desired institutional clients.

Staking on Ethereum 2.0 is also on the rise. Industry news sources recently confirmed that Ethereum 2.0 staking on top crypto exchange Kraken had surpassed the billion-dollar mark.

Fireblocks’ Encompassing Institutional Crypto Play

Fireblocks’ cryptocurrency staking service is the latest in a flurry of efforts to drive institutional crypto investment.

Last June, the firm created an open network called Secure Asset Transfer Network, for institutions to connect, trade, settle and transfer crypto on-chain. The network launched with over 55 institutions and 26 exchanges. Participants included brokers, liquidity providers, asset custodians, and market makers. Shaulov said at the time,

“The launch of the Fireblocks Network makes it possible for users to store and transfer assets across the entire institutional ecosystem and removes the need for any middle-men. We’re redefining on-chain settlement processes by adding an unprecedented layer of security and efficiency, preserving the decentralized nature of blockchain, and allowing it to operate at the institutional level.”

The Asset Transfer Network was built on its multiparty computational technology (MCT). The Network also provides access to easy on-chain transfers while streamlining post-trade operations and settlements.

Fireblocks also has interests in the decentralized finance (DeFi) space. Last March, the company partnered with leading lending protocol Compound to allow institutional investors to access DeFi opportunities. Thanks to the integration, Fireblocks customers can now earn interest via Compound’s lending protocol.

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Author: Jimmy Aki