Bitcoin Dominance on a Decline for 8 Weeks Straight to Hit Three-Year Low

Time and again, the Bitcoin price will make a strong upward movement, but instead of continuing the momentum, it ends up back down again. As of writing, BTC/USD has been trading around $57,500.

It has been due to lack of momentum in Bitcoin and the surging Ether prices, which hit a new all-time high yet again at $3,550 and 0.06348 BTC, that the dominance of the leading cryptocurrency continues to decline. ETH -1.11% Ethereum / USD ETHUSD $ 3,488.63
-$38.72-1.11%
Volume 44.11 b Change -$38.72 Open $3,488.63 Circulating 115.77 m Market Cap 403.87 b
8 h Tala Partners With VISA To Drive USDC Adoption in Emerging Markets 9 h Bitcoin Dominance on a Decline for 8 Weeks Straight to Hit Three-Year Low 10 h Uniswap V3 Recording $265M in Liquidity and $70M in Volume After Going Live on the Ethereum Mainnet

Bitcoin dominance has been declining throughout this year, so far, and for seven straight weeks, it has printed only red candles.

On Dec. 28, 2020, BTC dominance was at 73.67%, which has now fallen to nearly 45%, last seen in mid-July 2018. The lowest it even went down was at 35.5% on Jan. 8, 2018, when altcoins peaked during the last bull market.

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Since the beginning of 2017, when initial coin offerings (ICOs) first became popular in the market, Bitcoin dominance has been on a decline. The metric, however, has become meaningless over time, noted Qiao Wang.

“BTC dominance is now at ~45%, and is probably heading lower,” because of a combination of reasons including the success of Ethereum and other smart contract crypto-commodities, the proliferation of crypto-equities, and froth, he added.

Party to Continue

With Bitcoin price around $58,000, Ether around $3,500, and the total crypto market cap on its way to hit $2.5 trillion, we are experiencing a bull rally, which according to some, could very well be a super cycle.

While that remains to be seen, the ongoing lack of momentum in Bitcoin along with other risky assets is the result of inflation expectations keep on rising and bond yield having stalled, which has real rates falling and deep into negative territory, said Charlie Morris, founder of ByteTree.

“It’ll be back when yields turn up assuming inflationary pressures remain,” he added.

This week, as we reported, Treasury Secretary Janet Yellen, who previously served as the chairman of the Federal Reserve, spooked the market with the talks of raising the interest rates to prevent overheating of the economy.

But Yellen does not directly impact rates in her current position, and the markets have recovered nicely since then.

It is Fed Chair Jerome Powell who is in charge, and he remains dovish as he has repeatedly said that rates will be kept low at zero and inflation target 2% until full employment and economic recovery is achieved.

So, “the party will continue for as long as the fundamentals stay the same,” writes analyst Mati Greenspan.

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Author: AnTy

KeeperDAO (ROOK) Poised to Hit $5 Billion in Flash Loan Volume

KeeperDAO (ROOK) Poised to Hit $5 Billion in Flash Loan Volume

The goal is to make a transition to DAO, a process that isn’t clearly defined yet, co-founder Joey Zacherl said the next feature coming out for the hiding game is potentially a higher reward mechanism.

KeeperDAO (ROOK), an on-chain liquidity underwriter for decentralized finance (DeFi), is ready to hit the milestone of $5 billion in flash loan volume since v2 was launched in November last year.

At the beginning of January, the flash loans volume was just under $120 million, and it was at the end of the same month that it first hit the $1 billion mark.

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Source: Dune Analytics

In comparison, DeFi blue-chip lending project Aave has done $2 billion in flash loan volume in its entire lifetime. Aave was launched as ETHLend (LEND) with an ICO in 2017, raising $16.2 million.

KeeperDAO’s mainnet was launched in July 2020, the same month it raised a “seven-figure sum” from crypto venture capital firm Polychain Capital and fund manager Three Arrows Capital in a seed funding round.

With a market cap of $123 million, its token ROOK is currently trading at $367, down 56% from its all-time high of nearly $840 last month.

Today, the total value locked in the project has reached almost $230 million while having $42.5 million in its Treasury, as per Dune Analytics.

The size of the KeeperV2 pool is currently under $300 million after surpassing it earlier last month, with DAI accounting for the highest share (30.8%), followed by WETH, ETH, and USDC.

What’s Coming?

KeeperDAO is a DeFi protocol aiming to alleviate liquidity issues in the beginning sector by providing a ready-to-use liquidity pool for flash loan-like transactions. The project has cited the March 2020 cryptocurrency market crash as an example when having liquidity on-hand would have benefitted the ecosystem.

In an interview on Epicenter Podcast, KeeperDao co-founder Joey Zacherl explained about the project whose goal is to “capture profit opportunities on-chain and distribute them to the various participants.”

Interestingly, there’s a lot of participants who actually don’t see any of this profit even though they participate in making it possible by making a trade or limit order or using a DEX aggregator.

So, KeeperDAO captures profit and helps it redistribute and also coordinate all of the various participants.

About the hiding game, which was launched at the beginning of last month, Zacherl said it “is essentially our implementation to where we align incentives between users and keepers.”

The idea is to take actions that users like to perform that end up resulting in profit opportunities that get gas auctioned or sandwich traded and take some of those actions and put them in such a way that the user and the keeper can actually collude together and prevent that gas auction or sandwich trade from ever happening and in a way that user gets some of that profit when captured, he explained.

The next feature coming out for the hiding game is potentially a higher reward mechanism. Currently, taking the treasury and staking it back in the KeeperDAO lp pool is one option, but the next pool that’s being launched may generate even a higher yield, Zacherl said.

The project basically has a goal to create this entity as a DAO on-chain and enable all the participants to govern the system. While the transition to DAO is not clearly defined because the team is still working through it, and it’s a short-term challenge.

“We’re trying to kind of let the pieces fall where I think the DAO voting comes into high value,” Zacherl said. A transition into a mechanism that allows ROOK holders to make the decisions as opposed to the team doing it internally, he added.

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Author: AnTy

Andrew Yang Wants to Make New York a Hub for Bitcoin and Cryptocurrencies

Andrew Yang Wants to Make New York a Hub for Bitcoin and Cryptocurrencies

First Wyoming, then Miami, and now New York, cryptocurrency adoption is rapidly growing.

As we reported, Miami Mayor, Francis Suarez, is working hard on getting the city to lead in technology advancement, and as such, he had gone full-on Bitcoin by enabling the employees to be paid in Bitcoin, taxes and resident fees to be filed in BTC and even putting the digital currency in the city’s Treasury.

But New York might soon compete with Miami to attract the crypto crowd.

Andrew Yang, who is running a campaign to be New York Mayor, and according to a new poll released Wednesday, is actually commanding a double-digit lead in the Democratic primary for mayor, has some big crypto plans for the city as well.

In December last year, Yang, an entrepreneur, and former Presidential candidate, officially filed paperwork to run for New York City mayor. This week, he shared his intention to make the city a bitcoin hub if elected. Yang tweeted,

“As mayor of NYC – the world’s financial capital – I would invest in making the city a hub for BTC and other cryptocurrencies.”

Yang has previously praised cryptocurrencies and advocated for clear regulations surrounding the sector.

New York’s State Department of Financial Services actually introduced BitLicense for businesses dealing in digital assets and granted several during the period of 2015 and 2019.

However, the crypto community isn’t really in support of this license, and even a lawsuit has been filed against NYDFS to abolish BitLicense because it created a “complex and burdensome” set of requirements.

“End the bitlicense,” replied Neeraj K. Agrawal of crypto policy think tank Coin Center to Yang’s tweet on Wednesday.

“Have seen countless companies leave NYC as a result of the overly arduous process, or not enter the market in the first place,” voiced Elizabeth Stark, the co-founder, and CEO of Lightning Labs, in support of Agrawal.

Yang is not the only Bitcoin proponent who is running for Mayor; Bitcoiner Chamath Palihapitiya, as we reported, has also been running a campaign to be California’s governor.

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Author: AnTy

Mt. Gox Saga Continues: CoinLabs Make Deal with Trustee

Mt. Gox Saga Continues: CoinLabs Make Deal with Trustee

The estate only has 0.23 BTC to give out for each BTC that is locked up in bankruptcy with a claim on it.

After several repeats of the postponement of the Mt. Gox rehabilitation plan deadline, the latest development in this more than the seven-year-old case is CoinLab Inc. coming to an agreement with Nobuaki Kobayashi, the trustee to Mt. Gox bankruptcy, and MGIFLP, a unit of Fortress Investment Group LLC.

As per this agreement, creditors will get the chance to get access to as much as 90% of the remaining Bitcoin lost on the Japanese exchange in 2014.

However, the plan needs to be approved by creditors, said Coinlab in a statement on Friday, adding that investors aren’t obligated to take the early payment and can wait for the lawsuit to settle.

A total of 850,000 BTC belonging to thousands of customers were lost. Since then, the coins that have been found are facing a long and tedious process of reimbursement with no results yet.

According to a CoinLab spokesman, for each BTC locked up in bankruptcy with a claim on it, the estate only has 0.23 BTC to give out. Coinlab’s deal would pay investors from the trust.

Founded in 2012, CoinLab has a $16 billion claim against Mt. Gox. As per the statement, the company is not part of the settlement and will continue its litigation.

“I am thrilled that people are finally getting paid by Mt. Gox,” said Venture capitalist Tim Draper, an original investor in CoinLab.

“As Mt. Gox’s creditors are some of the earliest believers in cryptocurrency, I look forward to getting my Bitcoin as do the tens of thousands of people that have claims.”

This new development in the Mt. Gox saga could be a factor in Bitcoin’s price falling back to $35,550 last night. However, the “move down was already expected from a TA point of view,” noted HXRO Labs. “Objectively, this should be bearish news short term.”

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Author: AnTy

An ‘Extremely Bullish’ Institutional Catalyst for Ethereum is on the Horizon

As Bitcoin enjoys a wild ride to $23,800, Ethereum also managed to make it above $670.

Interestingly for the second-largest cryptocurrency with a market cap of $75 billion, it is still 57% away from its all-time high despite rallying more than 400% in 2020. And now that Bitcoin has hit a new peak, ETH is expected to follow and make it above $1,000.

In line with these gains, the total number of addresses with a balance of ETH surpassed 50 million for the first time, as per IntoTheBlock data. Not only did ETH make a new record, but it is the first crypto-asset to reach this milestone.

Yesterday, as we reported, CME also announced that it would be launching the Ether futures on February 8, 2021.

It is a big deal for the cryptocurrency as CME represents the institutional interest in the digital asset. Although CME’s bitcoin futures launch at the top of the 2017 bull market was taken as a negative sign for the prices, the retracement was expected after the wild rally.

CME’s bitcoin futures just acted as a catalyst for that correction. Now, as we see in 2020, the biggest regulated bitcoin futures market has been recording more than $1 billion in open interest (OI) on bitcoin futures.

Similarly, CME’s Ether futures, where each contract will have 50 units, will bring more institutional support to the digital asset. Trader and economist Alex Kruger said,

“People mostly remember how bitcoin hit its top on 2017 the exact day the CME BTC futures launched, and proceeded to crash right after. They forget that the CME launch drove the price from 6K to 20K, +225% in 2.5 months. The launch of CME ETH futures is extremely bullish.”

Institutions have been exclusively going into Bitcoin as an inflation hedge. Still, Ether is also now making its place among the investment portfolio, emerging as silver to Bitcoin’s gold, in reference to Ray Dalio discussing cryptocurrencies’ future, seeing their categorization as precious commodities and industrial commodities.

Already, Grayscale’s Ethereum product (ETHE) has 2.94 million Ether in its holding. Jake Chervinksy, General Counsel at Compound Finance, said,

“CME launching ETH futures is a big deal. Combined with Grayscale’s ETHE’s recent growth, this signals rising institutional interest in (& comfort with) ETH. This doesn’t happen without significant demand. ETH’s market structure is maturing quickly.”

Interestingly, while Grayscale holds over 2.5% of Ethereum supply, another 1.53 million Eth (worth more than $1 billion) is locked in ETH 2.0 deposit contract, and a whopping 7.1 million ETH is locked in DeFi.

Things are about to get interesting for Ethereum as well.

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Author: AnTy

JPMorgan: Bitcoin’s Rise Coming at Gold’s Expense; BTC Price Overshot, Bullion Due for Recovery

JPMorgan Chase says the rise of digital assets could make gold suffer.

While money poured into Bitcoin in October, gold saw a record amount of outflows. According to the bank’s quantitative strategists, including Nikolaos Panigirtzoglou, this trend is only going to continue in the long run as more institutional investors take a position in the largest crypto asset.

Over the past few months, many have recognized Bitcoin as a good alternative to gold, and JPMorgan is just one of them. As we reported, even Ray Dalio is warming up to digital gold, with Citi, Wells Fargo, Deutsche Bank, and others seeing Bitcoin as a diversifier to the yellow metal.

Compared to bitcoin’s 156% return YTD without even hitting $20k yet, bullion only raked in 20.5% gains in 2020 after reaching a new peak.

“The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced,” wrote the JPMorgan strategists.

According to the bank’s calculations, for now, Bitcoin only accounts for 0.18% of family office assets compared to gold ETF’s 3.3%.

However, bitcoin is seeing a lot of demand, as seen with the Grayscale Bitcoin Trust, which saw an inflow of almost $2 billion since October, while gold ETFs had a $7 billion outflow during the same period.

“If this medium to longer-term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years,” wrote JPMorgan’s strategists.

Bitcoin Flow from Gold Funds
Source: Bloomberg

In the short-term, the bank sees Bitcoin prices overshot, hence a selling with gold due for a recovery.

However, many believe both gold and bitcoin should be part of a portfolio. Even Dalio said Bitcoin has similarities to gold and other store holds of wealth.

“Gold buyers do not care what JPM thinks. Americans don’t buy or own much gold. 92% of demand is outside of US. Bitcoin the fastest horse and can go up 20x-would be worth $6 trillion. If so gold doubles to $20trillion in mkt value. Plenty of value to go around,” said Dan Tapiero, co-founder of 10T Holdings.

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Author: AnTy

Square Commits $10M to Bitcoin Clean Energy Initiative; Net-Zero Carbon by 2030

Square has launched a clean energy investment initiative to help make the “bitcoin supply chain greener.”

In its press release on Tuesday, the San Francisco-based company announced its plan to become net-zero carbon for operations by 2030. A verified carbon removal portfolio is expected to be launched in Q1 of 2021.

With this came the ‘Bitcoin Clean Energy Investment Initiative‘ to which Square is committing $10 million to support companies that “help drive adoption and efficiency of renewables within the bitcoin ecosystem.”

The new initiative will support companies working on green energy technologies within the bitcoin mining space and accelerate its transition to clean power. Any gains made from this investment will also be reinvested back into the initiative.

Twitter CEO Jack Dorsey is a Bitcoin proponent and his company Square, which has invested $50 million in BTC, purchases the largest cryptocurrency on behalf of its Cash App customers.

“We believe that cryptocurrency will eventually be powered completely by clean power, eliminating its carbon footprint and driving adoption of renewables globally,” said Square co-founder and CEO Jack Dorsey.

At the end of October, as we reported, the New York Department of Financial Services (NYDFS) sent out a letter to banks and cryptocurrency businesses to pay attention to the financial risks associated with climate change and incorporate them into their business strategies. Dorsey said,

“Published estimates indicate bitcoin already consumes a significant amount of clean energy, and we hope that Square’s investment initiative will accelerate this conversion to renewable energy.”

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Author: AnTy

Tezos ‘Delphi’ Upgrade Makes it More Attractive For Defi Projects; Reducing Gas Price By 75%

Tezos has completed the Delphi upgrade, which many believe would make the blockchain a hub for defi projects. As per the official announcement, the Delphi upgrade has brought down the gas fees significantly, allowing users and developers to deploy more complex smart contracts on the platform.

The Delphi upgrade is believed to bring down the gas fee by a whopping 75% along with a four-times lower storage cost.

Tezos network makes use of gas just like Ethereum, but with a different implementation. While the Ethereum blockchain uses gas as a transaction fee, the Tezos network uses it as a limit setter for the consumption of computing power for a transaction. However, the transaction cost is determined by the amount of gas used for that transaction.

Gabriel Alfour, the lead developer at Marigold—and one of the core development teams that worked on Delphi, explained the importance of the lower gas fees and how it can propel the Tezos network to be a leading blockchain when it comes to the deployment of complex smart contracts. He said,

The motivation for such an interim proposal is straightforward. The size and complexity of smart contracts is limited by gas constraints, and so people attempting to build contracts with rich functionality have needed improvements to those constraints for some time.

Thus, such improvements are crucial to enable novel applications on Tezos that target areas like DeFi (“Decentralized Finance”), collectibles, and gaming.

Luckily, in August, we finalized some long-standing work on improving the performance of the Michelson type checker and interpreter, and on refining the cost model, thus mitigating the gas problem.

Growing gas fees due to the network congestion has been a substantial problem for Ethereums mainnet since defi gained traction, and its volume increased significantly. While the launch of ETH 2.0 is believed to solve many of the scaling problems for Ethereum, in the meantime, other blockchains such as Tezos can attract higher numbers of customers to its platform.

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Author: Hank Klinger

Bitcoin Payment Processor Rolls Out ‘BitPay Send’ to Allow Companies to Pay With Crypto

BitPay has announced a new product dubbed ‘BitPay Send,’ which enables companies to make crypto payments without necessarily holding digital assets. The crypto payment services provider targets extending its clientele portfolio with BitPay Send to bridge the gap that exists when it comes to paying for labor or services in crypto.

Powered by a blockchain ecosystem, the BitPay Send platform is built to increase efficiency in crypto payments and target companies of all sizes. This innovation facilitates massive payments such as the ones companies make to contractors, vendors, customers, affiliates, and employee salaries. Given the growing nature of the distributed economy, BitPay Send poses as an ideal platform for companies that source talent, especially from the gig economy.

Per the current systems, transactions can be extremely slow and costly, especially when a cross-border operation is involved. BitPay Send solves this challenge by supporting round the clock crypto payments across the globe. BitPay CEO, Stephen Pair, noted the high rate of blockchain payments adoption, which he attributes to the ease of sending and receiving payments globally. He added that,

“Traditional international payment methods are cumbersome, costly, and slow. With BitPay Send, companies can make mass payouts without having to buy, own or manage crypto and their recipients receive payments quicker and at a lower cost.”

BitPay Send is already in use by AdGate Media, which leverages the facility to make crypto payments to its affiliates. Basically, BitPay assumes the conversion risk, while AdGate only makes a fiat deposit paid out to an affiliate in crypto. Dan Sapozhnikov, the President of AdGate Media, was keen to highlight the value proposition by BitPay Send in their line of business,

“We have lots of affiliates who wanted to be paid in Bitcoin, especially those who are based outside North America and Europe where access to bank accounts is difficult …

having BitPay manage that risk was an important factor in choosing BitPay Send.”

Notably, recipients will only require a BitPay ID and crypto wallet hence the whole notion of eliminating banks as intermediaries. BitPay, which has been operational since 2011, enjoys the backing of prominent investment firms, which include Virgin Group, Index Ventures, and Founders Fund.

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Author: Edwin Munyui

Grammy-Nominated Rapper Logic Makes a ‘Big Investment’ in Bitcoin

It’s happening again.

As Bitcoin rallies to make new 2020 highs, reaching closer and closer to its all-time high of $20,000, everyone is paying attention to the crypto king.

Retired rapper Logic, who has two Grammy nominations to his name, shared with his 2.4 million followers on Twitter that he has made a big investment into the digital asset. He didn’t reveal exactly how much.

The crypto community congratulated him and celebrated another bitcoiner in his comments section.

In 2020, the leading digital currency has already turned many skeptics to pro-BTC. Nouriel Roubini, who once called BTC the “mother of all scams,” called Bitcoin a store of value in a recent interview.

Even legendary investor Bill Miller is “strongly” recommending buying Bitcoin despite the digital asset not generating any yield, like gold.

While PayPal integrated Bitcoin and crypto deep into its business just last month, JPMorgan sees BTC as an alternative currency that is in intense competition with gold.

Besides billionaire investor Paul Tudor Jones calling Bitcoin a hedge against inflation, the fastest horse, the digital asset, also found its way into publicly listed companies’ balance sheet as a reserved asset.

We recently reported how mainstream media has started to cover Bitcoin while rapper Kanye West and comedian Kevin Hart dropped the Bitcoin bomb.

Bitcoin has entered another cycle that sees it hitting new all-time highs. With the awareness and adoption increasing vastly, it would be interesting to see just how high we go this time.

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Author: AnTy