Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry

Coinbase going public will be making some people very rich as institutions start to dominate exchange’s volumes, while CT was disappointed in the money-making crypto company having surprisingly small amounts of digital currencies in their treasury balance sheet.

Coinbase Global Inc. has filed with the US SEC for a direct listing on Nasdaq, and it has the crypto market excited, and the traditional markets are taking notice, as the financial statements of the company revealed that the exchange has been making a lot of money.

Interestingly, a good majority, 85% of the 130 companies that went public in the US last year, was unprofitable. But with Coinbase, the matter is altogether different.

San Francisco-based reported revenue of $1.28 billion in 2020 versus $533.7 million in 2019.

Given the record trading volume, the number of new users, as well as the crypto trading platforms it has been acquiring in just the two months of 2021 amidst the wild bull run, the revenue in the first quarter will be off the charts and is expected to surpass $2 billion, for the exchange.

This puts Coinbase with over a $100 billion valuation, more valuable than CME, ICE which owns the NYSE, CBOE, and Nasdaq.

ErikVoorheesCoinbase

Source: Twitter

This will certainly be making Coinbase CEO Brian Armstrong, and its top executives, rich by billions of dollars as a result of this valuation, which would make it one of the biggest companies to go public since the social media giant Facebook.

The CEO owns 21.8% of the company’s voting power, followed by a16z’s Marc Andreessen at 14.2%, who owns twice as many shares as Armstrong, and co-founder Fred Ehsram 9%. In total, the 11-member board has the majority voting control.

coinbase-shares

Source: SEC Filing

To be listed under the ticker COIN, Goldman Sachs, JPMorgan, and Citigroup are the market makers who are also the advisors on the transaction with another addition Allen & Co.

One of the largest exchanges, Coinbase, reported 43 million verified users, steady growth from 23 million in Q1 of 2018. As for the transacting users, in Q4 of 2020, it was 2.8 million, nearly the same as 1Q18 at 2.7 million.

Unlike the transacting users, in 1Q18, when the market topped, Coinbase recorded $56 billion in trading volume, but during the last quarter, it was $89 billion.

The big difference has been in Coinbase’s volume by customer segment, as back in Q1 of 2018, retail dominated the exchange with more than an 80% share; it has completely changed to institutional accounting for 64% of volume in 4Q20.

Exciting & Embarrassing

Crypto Twitter (CT) has been excited about this development as Matt Huang, Co-founder at Paradigm, previously a partner at Sequoia, congratulated the company, “The Coinbase S-1 is just one step along the way toward building a legendary company… but still, one hell of a milestone.”

“This represents another major milestone in the development of the cryptocurrency industry,” tweeted Jay Hao, CEO of crypto exchange OKEx. “Coinbase’s S-1 filing will undoubtedly have a profound impact on the crypto market and usher in a new era of mainstream crypto adoption,” he added.

RobertLeshnerCoinbase

Source: Twitter

What really set off the CT was the fact that Coinbase, which started in 2012 when the price of BItcoin was about $5, holds only $130 million worth of BTC.

Square’s recently announced the purchase of $170 million worth BTC is more than this, and Coinbase’s BTC stash is nowhere even near Michael Saylor’s $2.171 billion bet on Bitcoin.

Besides having 55% of their modest crypto treasury, separate from cash and cash equivalents at $1.1 billion, the company has $24 million (10%) in Ethereum ETH -5.02% Ethereum / USD ETHUSD $ 1,446.93
-$72.64-5.02%
Volume 31.49 b Change -$72.64 Open $1,446.93 Circulating 114.84 m Market Cap 166.16 b
6 h Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers 6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry 7 h 1Inch Decentralized Exchange to Transition to Binance Smart Chain as Ethereum Exodus Begins
, $49 million (20%) in USDC stablecoin USDC -0.02% USD Coin / USD USDCUSD $ 1.00
$0.00-0.02%
Volume 2.46 b Change $0.00 Open $1.00 Circulating 8.59 b Market Cap 8.59 b
6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry 1 w Private Aviation Company Sees 20% Revenue Coming from Bitcoin Paying Users 1 w You Can Now Buy Bitcoin with Apple Pay as BitPay Adds Support
, and $34 million (15%) in other altcoins.

Given that Coinbase is a cryptocurrency-centered company, some even called this crypto stash “embarrassing.”

But many expect Amrstong, Ehsram, and other early backers to own heavy Bitcoin BTC -4.15% Bitcoin / USD BTCUSD $ 46,344.77
-$1,923.31-4.15%
Volume 351 b Change -$1,923.31 Open $46,344.77 Circulating 18.64 m Market Cap 863.85 b
5 h A “BIG Deal:” Stone Ridge Files to Add Bitcoin to its Diversified Alternatives Fund 6 h Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers 6 h Coinbase Going Public Is A Watershed Moment for the Cryptocurrency Industry
and crypto bags personally.

Coinbase going public, meanwhile, is also expected to be bullish for other exchanges and their tokens. “I think the bigger the Coinbase IPO gets, the better for exchange tokens. Doesn’t matter that owning an exchange token ≠ actually owning stock. Just matters that a lot of people will feel priced out of coinbase” noted trader DonAlt.

As we reported, US-based Kraken is also planning to raise funds that could more than double its valuation and surpass $20 billion.

Interestingly, in its filing with the SEC, Coinbase also mentions that they do not maintain a headquarter as of May 2020 and that they have become a remote-first company.

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Author: AnTy

Grayscale Bitcoin Trust (GBTC) Catching Up Fast to Gold’s Largest ETF (GLD)

Bitcoin ETFs are also making waves, with BTCC doing three times more volume than any other ETF in Canada. Meanwhile, Bitcoin price, which is ready to hit $58k, is up 92% YTD compared to gold’s -5.83%.

Grayscale, the world’s largest digital assets manager, has $43.63 billion in assets under management. In less than a month, the asset manager has doubled its AUM as earlier this month it was sitting at $26.4 billion and $20.2 billion at the beginning of the year.

The majority of this AUM belongs to Grayscale’s one product Bitcoin Trust (GBTC), which has $36.57 billion in assets under management. Grayscale Bitcoin Trust currently holds 455.47k BTC, just over 3.5% of Bitcoin’s circulating supply.

This is thanks to the price of Bitcoin hitting a new high above $57,000 today and becoming a trillion-dollar asset.

With this, Bitcoin has achieved 10% of gold’s market cap, with the precious metal’s market cap being around $10 trillion. Price-wise, gold is nowhere near in BTC’s realm. Spot gold is currently trading at $1,783 per ounce, as of writing, down 5.83% YTD compared to Bitcoin’s more than 90% gains in 2021 so far.

Just as the leading digital currency is slowly eating up gold’s market share, the biggest Bitcoin fund GBTC is closing in on the largest gold ETF, SPDR Gold Trust (GLD), which has $64.85 billion in assets under management.

“GBTC ($39.2b+) isn’t that far from flippening the largest gold ETF, GLD ($64b),” tweeted Nic Carter of Coin Metrics.

The gold ETF that provides “physically held” exposure to the precious metal records $1.49 billion in average daily volume.

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While Grayscale clearly dominates the market, an increasing number of funds are now making an appearance. Several organizations are filing for a Bitcoin ETF, allowing institutional investors exposure to the digital asset without actually buying or holding them.

While the US has yet to get one, Canada has already had two. This week, the Ontario Securities Commission (OSC) also approved the Evolve Funds Group’s application for a Bitcoin ETF.

As we reported, the first Bitcoin exchange-traded fund, Purpose Bitcoin ETF (BTCC), was a roaring success, beating the traditional numbers. The two-day AUM is estimated to be $330 million.

On Friday, BTCC traded $350 million, a jump of 40% from its debut day and three times more volume than any other ETF, noted Eric Balchunas, Senior ETF Analyst for Bloomberg. Joe McCann, a Microsoft strategist said,

“ETFs beget liquidity, and liquidity improves price discovery and price ascent. This is historic volume in Canada for its BTC ETF. When, not if, it gets approved in the US, we will see the same thing happen.”

The US Securities and Exchange Commission has shut down all the attempts to offer Bitcoin ETF in America, so far, but there are high expectations for one under the new SEC Chairman, for which President Joe Biden has nominated Gary Gensler, who taught a class on Blockchain at MIT.

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Author: AnTy

BTC Breaks Yet Another Level, k, as Elon Musk says, Bitcoin and Ethereum ‘Seem High’

Since making a similar remark on his electric car company, the price of TSLA shares has surged 400%. Tesla CEO is also busy mining his favorite cryptocurrency Dogecoin as a “fun family project.”

The market value of Bitcoin hit the milestone of $1 trillion on Friday as the price of the digital asset broke past many levels.

Today, we went even higher, past $57,000, aiming for the sweet round number of $60k now. As of writing, BTC/USD has been comfortably trading above $57k, with a market cap of $1.06 billion.

With Bitcoin continuing to roar higher, Tesla CEO Elon Musk threw some love at Bitcoin with yet again the picture of Bitcoin in his Twitter profile, but “Just for a day.”

Musk also took a jab at gold bug Peter Schiff, who thinks and talks about Bitcoin day and night, all the time, and this time as well saying gold is real money and better than both fiat and Bitcoin, referring to Musk calling “Bitcoin is almost as BS as fiat money.”

“An email saying you have gold is not the same as having gold. You might as well have crypto. Money is just data that allows us to avoid the inconvenience of barter. That data, like all data, is subject to latency & error. The system will evolve to that which minimizes both.”

Musk explained to Schiff, adding, “That said, BTC & ETH do seem high lol.”

Musk made a similar infamous comment regarding his electric car company back in May last year, “Tesla stock price is too high imo.” Since then, the price of TSLA shares has surged 400%.

Besides Bitcoin, the founder and CEO of SpaceX is also busy mining his favorite cryptocurrency, Dogecoin.

“I just set up some little Doge mining rigs with my kids. It was fun,” said Musk on Saturday. He also shared that he has been using Antminer L3+ rigs to mine the meme coin, which was bought off eBay.

“Not really economic, but it was a fun family project,” he added.

The Next Major Milestone

When it comes to Bitcoin, the leading digital currency is enjoying more than a 92% uptrend in 2021 so far.

Despite the latest round of gains, over 17% this week, the funding rates on Bitcoin perpetual contracts haven’t heated up, currently between 0.0158% on Deribit and 0.1457% on Huobi, as per Viewbase.

While the Perp-spot basis is flat, the basis of the future is sky high while implied volatility is falling and 25-day skew rising, noted trader and economist Alex Kruger adding, “leverage is very high, but inflows are gargantuan.”

Now that the first milestone for $1 trillion has been hit, the next major milestone ahead for Bitcoin is surpassing the market cap of gold which is about $10 trillion. This will put the price of Bitcoin around $500,000.

Qiao Wang of DeFi Alliance has a 90% conviction that it will happen in our lifetime but will this happen during this hype cycle, that’s to be seen.

Before that, going above $100k will make it the world’s largest asset, dethroning Apple. The hopium from Su Zhu, the CEO of Three Arrows Capital,

“This is not yet another cycle; this is the End of Cycles. The one where after BTC flippens gold, it doesn’t flip back. The one where web3 supersedes web2. Where culture is collected and accrued digitally instead of physically. Where life is lived mindfully rather than mindlessly.”

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Author: AnTy

Visa Partners With Digital Bank in Crypto API Pilot Program; Making Buying BTC Easier

Visa Partners With Digital Bank in Crypto API Pilot Program; Making Buying BTC Easier

While it started as an ardent opponent of the use of Bitcoin, the financial service provider Visa has demonstrated its capacity for changing course on first impressions, as it rapidly becomes one of its biggest supporters.

Over the past few years, Visa has been working behind the scenes to partner up with 35 Bitcoin and cryptocurrency-based platforms and set its sights on merging mainstream banking & cryptocurrencies with its new cryptocurrency software program, which will get started later this year.

Visa represents just one of a growing number of multinationals and celebrities that have either taken steps towards or overtly expressed their support for cryptocurrencies like Bitcoin. Globally-renowned stars from actress Lindsay Lohan, Paris Hilton, and Snoop Dogg have made their positions clear on BTC. Just this week, in fact, Tesla CEO, Billionaire, and Twitter sensation, Elon Musk, hit the front-pages when he added ‘Bitcoin’ to his title, adding that it was “on the verge” of breaking into institutional finance.

Visa Chief Executive, Al Kelly, speaking during the company’s Q1 2021 earnings call, laid the company’s aims out in plain terms for attendees, describing Bitcoin as a ‘virtual gold’ which had yet to be harnessed fully as a mode of digital payments.

“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally.”

Alongside Visa, PayPal was one of the payment giants that recently made waves in the cryptocurrency space. Its announcement would allow its 346 million users to buy and spend Bitcoin. While this was met with celebration by investors and enthusiasts alike, PayPal was quick to face flak after users complained of being prevented from moving their digital assets off PayPal’s platform.

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Author: James Fox

North Dakota Lawmakers Propose Making Government-run Bank a Crypto-Custodian

North Dakota Lawmakers Propose Making Government-run Bank a Crypto-Custodian

While being one of the only financial institutions of its kind within the United States, the Bank of North Dakota is being considered as a potential crypto-custodian. A group of lawmakers in the state government of North Dakota proposed making this a possibility this week.

These lawmakers introduced the motion within the text of House Bill Number 1267 on January 11th:

“[t]he Bank of North Dakota may provide custodian services for digital currency and may implement a digital currency exchange.”

For the moment, the critical word within this bill number is ‘may’, as the bill also requires a feasibility report, which will need to occur before August 2022.

“During the 2021-22 interim the Bank of North Dakota shall study the feasibility and desirability of providing digital currency custodian services and of implementing a digital currency exchange. Before August 1, 2022, the Bank shall report to the legislative management’s information technology committee the outcome of the study.”

Since its founding in 1919, the Bank of North Dakota is one of the only government-run banks in America.

Cryptocurrency is Becoming Professional

This proposal’s most impactful message is that it demonstrates that state governments are looking into more formal ties with cryptocurrencies. Especially remarkable when considering what political opinions were on digital assets just years ago.

In 2020, the United States of the Comptroller of the Currency released guidance papers on federally chartered banks the power to operate as cryptocurrency custodians. Then-Acting Comptroller Brian Brooks said at the time,

“This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”

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Author: James Fox

IOHK and BONDLY Partner to Launch First DeFi Project on Cardano Blockchain

  • IOHK is making in-roads to introduce DeFi to Cardano blockchain.
  • Bondly, a decentralized exchange, becomes the first DeFi protocol on the blockchain.

Announced on Dec.10, Bondly became the first decentralized finance, or DeFi, to launch and run on the Cardano blockchain. This follows the successful launch of the Goguen testnet, a smart contract functionality that allows developers to build their decentralized apps atop the blockchain.

In a tweet, the Input-Output Hong Kong (IOHK) team confirmed the partnership with Bondly, a decentralized peer-to-peer exchange, further stating,

Following Shelley’s successful completion, an upgrade targeting more decentralization on the Cardano network, the community is awaiting the Goguen upgrade. According to the official statement, the Goguen upgrade, expected to launch in 2021 fully, introduces smart contracts and the ability to build decentralized apps on Cardano.

Bondly is a peer-to-peer e-commerce system and decentralized exchange that aims to bring the qualities of DeFi to the traditional finance world. The latest partnership with IOHK sees the two companies share visions and joint roadmaps entering 2021, including the addition of the BONDLY cryptocurrency to Cardano – a switch from the Polkadot ecosystem. Charles Hoskinson, Founder of Cardano, said,

“IOHK’s core mission is to widen and democratize access to financial services, which is why Bondly is a perfect partner for us.”

Once the Goguen upgrade is complete, BONDLY plans to integrate its e-commerce platform, BONDProtect, and BSwap, its over-the-counter (OTC) exchange, Cardano too. BONDProtect is a peer to peer marketplace designed to protect buyers and sellers using smart contract-based escrows that will run on Cardano’s fast and secure network.

Hoskinson further believes BONDLY’s capabilities are essential in further pushing Cardano-based DeFi ecosystems once the Goguen update is launched. DeFi solutions built on Cardano allows the blockchain to “live up its potential” and “replace the global digital financial system,” he further said confidently.

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Author: Lujan Odera

Stablecoins Printed About $5 Billion During Bitcoin’s 80% Run-Up In Q4

After the March sell-off, Bitcoin has been slowly making its way up and it has been in Q4 of 2020 that it fully rocketed.

In early October, BTC was trading around $10,500 when it went on a tear, climbing to $19,965 on Tuesday, a level that was only seen on a few cryptocurrency exchanges during the top of the 2017 bull market.

At that time, the market cap of fiat-backed cryptos was a mere $1.5 billion which today reached nearly $25 billion, an increase of 1,560% in three years.

This growth actually started during the March sell-off which saw not only Bitcoin but the broad asset class; stocks, gold, oil, and everything else except for USD crashing due to coronavirus.

The total stablecoins market cap was under $6 billion in early March while the most popular stablecoin Tether’s (USDT) market cap was under $5 billion.

Today, Tether’s market cap is close to hitting $20 billion, a growth of more than 310% in nine months.

During Bitcoin’s euphoric rally of about 80% since October, USDT’s market cap actually increased by 25%, from $16 billion to nearly $20 billion.

While Tether has somewhat slowed down, but no doubt remains the dominant force by a wide margin, other stablecoins have started to capture a bit more of the market share.

PAX supply has increased by about 100 million since October 21st when PayPal announced that it would be supporting cryptocurrencies. Paxos, the company behind PAX, is used by PayPal as their infrastructure provider.

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Another stablecoin leading the market is USDC, which is being used as a tool of US foreign policy. On Nov. 20th, Circle announced a partnership with the government of Venezuela to distribute aid to their front-line medical workers.

While Venezuela’s currency is suffering from hyperinflation due to money printing, stablecoins offer an attractive option. As a result, USDC’s daily active addresses hit an all-time high of 43.21k, just four days after the announcement, as per Coin Metrics.

The market cap of USDC, developed by Circle and Coinbase’s consortium Centre, actually exploded in August, going from $1 billion to the current $3 billion. Binance’s stablecoin BUSD saw a jump of 270% (nearly $500 million) in the last three months.

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Author: AnTy

Kucoin to Launch a Non-Fungible Token (NFT) Exchange and Trading Services

Kucoin crypto exchange has announced that it is making a debut into the Non-fungible token (NFT) market through Pool-X, the exchange’s liquidity trading platform. According to the announcement, Kucoin will roll out its NFT exchange within the next few months. Meanwhile, the exchange has already opened an NFT deposit service through Dego.Finance NFT assets.

NFT’s gained momentum in the crypto space this year and almost picked up from where the DeFi bull-run topped. Well, it appears that these digital assets could actually cause another market hype, given their value proposition. Basically, NFTs can be leveraged in different industries to store value on a decentralized/blockchain ecosystem. Some of the most compatible niches include artwork, collectibles, and Gamefi.

Kucoin will be among the pioneer centralized crypto exchanges to feature NFT trading; a milestone that the firm touted in the announcement,

“KuCoin’s support on deposit and withdrawal of NFT assets indicates that NFTs will soon enter the centralized trading platform for circulation.

At present, trading NFT assets is difficult for users because many of them are unfamiliar with on-chain transactions.”

Notably, Kucoin opened NFT deposit services on Nov 16 as withdrawals are scheduled to commence on Nov 20. Plans to launch the NFT exchange and NFT trading service have been set for early next year. According to Kucoin’s CEO, Johnny Lyu, the firm has been paying close attention to NFTs despite minimal action at the moment,

“KuCoin is paying close attention to the NFT market. Although NFTs don’t have enough market attention at present, the potential is great.

Moreover, it has many application scenarios in insurance, bonds, options, and other fields. It can even create a virtual real world on the blockchain.”

He highlighted that Kucoin launched the NFT trading board to increase market participation, noting that the exchange will continue to contribute to the NFT space. Stats from NonFungible.com, an NFT data analysis platform, revealed that this space grew by 300% year-on-year to record $230 million in transaction volumes during the first half of 2020.

Kucoin is still recovering from a $280 million hack at the end of September. So far they have recovered close to 84% of the stolen funds, in which they believe they know who the hackers are and are working with local law enforcement to trace and arrest the attacker.

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Author: Edwin Munyui

MoonBeam Network Aims to Bring Ethereum Developers to Polkadot by Recreating EVM

The MoonBeam Project is making some interesting plans. The project aims to create a custom parachain, one emulating the Ethereum Virtual Machine environment. Should they pull it off, they’d effectively recreate Ethereum (ETH) within the Polkadot blockchain (DOT).

MoonBeam Aiming For Ethereum Emulator

Polkadot developers, and most other interoperability projects, typically need to develop an entirely new blockchain in order to host their respective decentralized apps. The Substrate framework of Polkadot, however, is aiming to simplify the process, seeing as not all DApps need such a monumental level of control over the environment.

MoonBeam stands as the project for Polkadot aiming to become an Ethereum emulator, operating within the same virtual environment powering all the smart contracts within the Ethereum blockchain.

Strong Governance And Cheap Fees

The MoonBeam team further highlighted that developers of Ethereum DApps only need to make minimal code changes in order to maintain the use of developer tools, such as Metamask and Truffle. As this is happening, Polkadot integration would mean easier interoperability for the entirety of the Polkadot ecosystem. This is due to other modules of Substrate still being available, which would allow the implementation of social recovery for wallets, on-chain governance, and other features to be available by developers in ready-made code.

The MoonBeam team claims that it will stand as a more affordable smart contract platform, one with a strong on-chain governance system. This sentiment is often emphasized by the co-founders of Polkadot, with them believing that this stands as a necessity for blockchain systems.

The idea is that MoonBeam will be interoperable with both Bitcoin and Ethereum, and will be thanks to dedicated bridges that other teams have already built.

ETH Seeing Newfound Competition

Even so, the competition within the DApp scalability arena is a fierce one indeed. Multiple layer-one chains actively compute with the layer-two solutions that are already native with Ethereum. Ethereum’s dominance in the smart contract space is largely thanks to the booming DeFi market within the network, but the blockchain has its limitations, as seen in 2020’s Summer.

With a new demand established, many players are aiming to capitalize on it, such as MoonBeam and Polkadot, thus providing an alternative platform for users to leverage. Other big names in this growing new niche are as follows: Binance Smart Chain, Solana, Cosmos, and the Near Protocol.

As it stands now, Moonbeam has yet to determine a concrete launch date, since it depends on the Parachain auctions of Polkadot going live. The general consensus is this will happen around the first quarter of 2021, but nothing can be stated as a hard fact.

It won’t be long before Ethereum will need to compete against other big names for supremacy within the smart contract arena. Ethereum will be the top player for some time, but historically, technology groups such as this need to upgrade itself constantly, lest it fall on the wayside faster than anyone could predict.

With any luck, an increase in competition will ultimately benefit the consumer of these projects. Ethereum suffered from a massive influx of traffic driving the gas fees through the roof, so a bit of a load off its system wouldn’t be the end of the world.

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Author: Ali Raza

Bitcoin in Re-Accumulation Phase, Volatility Hits Two-Year Low

Over the weekend, the price of Bitcoin started moving north, making its way from around $10,400 to above $10,700. Trading in the green currently, but the ‘real’ volume at just $824 million is not providing confidence.

While volume on spot exchanges is low, institutional interest in Bitcoin has been “flashing strong since the 27th of July, the day it went through $10k.”

Also, just a small percentage of greens have been enough to carry the rest of the crypto market up with it. In a rare bout of gains, XRP spiked over 8%.

This positive performance across the markets is the result of President Donald Trump’s recovery after contracting coronavirus.

BitMEX Narrative

The market is trying to recover from the BitMEX incident last week. As a result of criminal charges on the popular derivatives platform, more than 45,000 BTC have been pulled from the exchange.

Bitcoin balance on BitMEX has fallen to 120,000, a decline of 27%.

The day the news of criminal charges from CFTC came, the exchange saw the largest negative net flow to date, as 44,000 BTC were withdrawn. Almost 30% of them were transferred to Binance and Gemini in equal amounts.

Open interest, meanwhile on the exchange that crashed 24% remains at 43k BTC, around $456 million — levels not seen since May 2020.

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Besides BitMEX, another narrative at the top of the market’s agenda is the volatility the market participants will be subjected to in the coming weeks ahead of the US elections.

Getting Too Comfortable?

Bitcoin’s 180-day volatility has dropped to its lowest since November 2018, reaching a 23-month low, indicating the market has been mostly unfazed by the unsettling news of BitMEX. Denis Vinokourov of Bequant noted,

“Implied vol remains well contained and even the skew profile, for both Bitcoin and Ethereum, shows signs of stabilization. The market is very crowded, and it is difficult to see how this will change, especially as the entire liquidity provision is dependent on cheap liquidity (Bitcoin) and yield offerings by DeFi platforms (with Ethereum as the backbone).”

During these last couple of weeks, Bitcoin weathered the several negative news that otherwise would have crashed the digital asset’s price — first KuCoin hack losing $281 million customer funds then BitMEX, and the next day the news of Trump testing coronavirus positive. Trader and economist Alex Kruger said,

“It’s been impressive how little bitcoin has moved during this whole Trump ordeal, as well as during the Bitmex-CFTC news. Vol sellers getting too comfortable.”

This could also mean that bitcoin is in re-accumulation mode. Analyst Cole Garner notes,

“Binance with a 2800 BTC sellwall at $11k. Unstoppable force meets the immovable object. Welcome to re-accumulation.”

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Author: AnTy