Bitcoin Bulls Cash In On ‘Rare’ Dip Below 100 Daily SMA; Retail Getting Out?

While the latest correction liquidated $4 billion to test weekly bull market support, BTC moves from weak to strong hands. Amidst this, today, Bitcoin mining difficulty increased by 21.5%, the largest positive difficulty adjustment in almost 7 years.

While Ethereum co-founder Vitalik Buterin wrecked the dog meme coins, Tesla CEO Elon Musk wrecked Bitcoin, and by extension majority of the cryptocurrency market.

This resulted in liquidating 393,593 traders for $4 billion in the past 24 hours, as per Bybt.

Crypto stocks from Coinbase Global Inc., Marathon Digital Holdings, Riot Blockchain Inc. to Microstrategy Jack Dorsey’s Square Inc., and Tesla, everything slipped.

Crashing to $46,000, Bitcoin price had managed to recover to $52,500 only to tumble back down to $48,420 today. As Bitcoin dips, Grayscale Bitcoin Trust (GBTC) rips, hitting a record discount of under 20% to net asset value (NAV).

While BTC was working on developing a range in 60K-46.5K, the actual range is currently 59.5K-46K.

However, nothing goes up in a straight line, and pullbacks are part of bull runs.

With the latest correction, the price has dipped below 100 daily SMA, which is rare and has historically identified major bottoms, noted Charles Edwards, founder of Capriole Investments. “Any sustained time under the MA100 would be very concerning,” he added.

What’s interesting is that while some people panic sold their BTC after Musk said Tesla wouldn’t be accepting Bitcoin as payment anymore, citing environmental concerns and saying Bitcoin’s “energy usage trend over past few months is insane,” many took advantage of this buy the dip opportunity.

As usual, Michael Saylor’s MicroStrategy announced the purchase of 271 BTC for $15 million at an average price of ~$55,387 per bitcoin and now holds a total of 91,850 bitcoins.

Jason A. Williams also went deep into the bitcoin buying spree and urged Dave Portnoy to join him on this dip and double his BTC holdings to 2 BTC.

10,000 Bitcoin has actually just flowed out from Coinbase as BTC moves from weak hands to strong hands.

SoftBank Group Corp. founder Masayoshi Son might not be one of them as he said on the company’s earnings news conference,

“There’s a lot of discussion over if it’s a good thing or a bad thing, what’s the true value or is it in a bubble — honestly speaking, I don’t know.”

But at the same time, he said cryptos popularity “can’t be ignored” like bonds or diamonds. “There’s no need to reject” the cryptocurrency either, he said. “We are always having such internal discussions.”

Amidst this price action, today, Bitcoin mining difficulty has increased by 21.5%, the largest positive difficulty adjustment in almost 7 years.

“Over a longer-term time horizon we definitely think this is the beginning phase of what’s going to be the birth of an entirely new asset class that we think will be in the trillions of dollars,” said Yassine Elmandjra, a crypto analyst at Cathie Wood’s Ark Investment Management LLC.

With much of the value “speculative,” Elmandjra said, ultimately, washout will happen, which is exactly what we experienced.

Meanwhile, Vanda’s Onatibia and Pierantoni wrote that “The short squeezes in GME and AMC were the prelude to the explosion of another Bitcoin bubble,” as retail investors poured their money into the crypto asset. According to them, a correction in crypto would push them back into equities, which are trading at a significant discount from the February highs.

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Author: AnTy

Bitcoin Propels PayPal’s Massive Growth In Q1

Bitcoin Propels PayPal’s Massive Growth In Q1

Bitcoin and the general crypto market have surged largely due to an influx of institutional investors. Those who have put faith in the “digital gold” are currently smiling all the way to the bank.

The first tech company to espouse crypto’s remarkable returns in their Q1 earnings call was electric car manufacturer Tesla Inc. According to a Wednesday announcement, US payment giant PayPal Holdings has also revealed the impact Bitcoin had on its growth.

PayPal’s Crypto Support Pays Off

In its just-concluded Q1 investors’ earning call, payment giant PayPal had remarkable gains with a little help from crypto.

The Q1 earnings report showed a total payment volume (TPV) of $285 billion, up from $277 billion in Q4 holiday season sales.

PayPal also posted a net revenue north of $6 billion and earnings per share of $1.22 against analysts’ estimated $1.01 for Q1, 2021.

Alongside this growth, PayPal said it added 14.5 million net new accounts (NNAs), raising its already vast global reach to 392 million with 31 million merchants onboarded so far.

Following the Wednesday earnings call, its shares rose 5% and traded at $260 per share.

President and CEO Dan Schulman describe the results as the strongest first-quarter result in PayPal’s history. According to Schulman, their crypto payments adoption played a huge role in attaining these results.

According to Schuman, more than half of its current users opened the PayPal app more than twice a day following the crypto payment support functionality.

Schulman believes that crypto and central bank digital currencies (CBDCs) would eventually foster a more equitable financial system given their growing adoption.

PayPal’s immense success in Q1, expected to be slow in business, has been largely due to its crypto payments support. The payment giant enabled crypto trading services last year— opening the gates to customers and merchants on its platform to interact with digital assets.

To further cement its place in the newly emerging digital economy, it extended this capability to its peer-to-peer payment app Venmo. It enabled customers to make crypto payments in a trustless manner.

PayPal is committed to a crypto future following the acquisition of crypto-security firm Curv.

PayPal Aiming To Incorporate CBDCs Once Launched

According to Schulman, they are currently in talks with world governments concerning their CBDC program. Schulman said this is to make sure the payment company is not left out when these countries eventually roll out their digital currencies.

It’s finally becoming an arms race for countries piloting CBDC programs as a more efficient payment system. Many national banks have announced intents to launch a CBDC program, with the Republic of Georgia being the latest in a keenly contested race. China, which is the furthest in the rollout of a digital yuan, has served as a catalyst, and more countries are rapidly joining the CBDC bandwagon.

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Author: Jimmy Aki

Treasury Secretary Spooks the Traditional Market; Bitcoin Slides Down & Drags Ether with it

Treasury Secretary Spooks the Traditional Market; Bitcoin Slides Down & Drags Ether with it

Janet Yellen is talking about increasing the interest rates to prevent the economy from overheating. This obviously sent the markets into a sell-off mode from S&P 500, Dow, Nasdaq to Bitcoin Ether while the USD Index inches upwards.

The price of Bitcoin is on a slide, hitting $53,200 so far and dragging Ether down with it to $3,175 from its latest all-time high of $3,535 on Coinbase.

This latest weakness in prices is in line with the sell-off seen in the traditional markets. The S&P 500 also dropped just about 2% before seeing a slight increase, the same as Dow Jones Industrial Average, which fell about 1.3%. Nasdaq, meanwhile, is on a decline since last Monday by more than 4.5%.

The USD index, in turn, saw a small uptick and is currently around 91.30. Trader Light noted,

“Something spooked equities. Will likely put pressure on crypto and torch the recent leverage build up. BTC was weak and is already buckling, ETH will probably wick down on liquidations shortly.”

What spooked the traditional markets was Treasury Secretary Janet Yellen talking about increasing the interest rates. During an economic seminar presented by The Atlantic, Yellen said,

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat.”

“Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates.”

If rates get increased, people would be risk-averse and more interested in keeping their money safe in bonds.

Ever since the Covid-19 pandemic broke out early last year, Congress has printed trillions of dollars and injected them into the market, inflating the prices of the assets. This increase in money supply and virtually zero rates have been the primary drivers of Bitcoin’s wild rally from March 2020 low of $3,800 to a new all-time high of $65,000 last month.

The Biden administration is currently pushing for another $4 trillion infrastructure plan, and Yellen wants higher taxes to pay for this, arguing that the US needs to contain deficits over the long term though she said the government still has “a reasonable amount of fiscal space.”

President Joe Biden is “taking a very ambitious” and “active” approach, “but we’ve gone for way too long on letting long-term problems fester in our economy,” she said.

The Federal Reserve, which Yellen led from 2014-18, has been keeping the short-term rates near zero for over a year and time and again Chair Jerome Powell promised the market that it would be kept that way until the 2% inflation and full employment is achieved.

While inflation concerns are rising, Yellen is not largely concerned about it becoming a problem, and should that happen; there are tools to address it, she had said. Just over the weekend, Yellen had told NBC that,

“We’re in a good fiscal position. Interest rates are historically low. They’ve been that way for a long time, and it’s likely they’ll stay that way into the future. But we do need fiscal space to be able to address emergencies, like the one that we’ve been in with respect to the pandemic.”

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Author: AnTy

Bitstamp Ready To Move Into US Market Following Insane Q1 Growth

Bitstamp Ready To Move Into US Market Following Insane Q1 Growth

London-based crypto exchange Bitstamp has announced its intention to further expand its US operations following astronomical growth in Q1, 2021.

Bitstamp Ramps Up Operation In US

The announcement made in a blog post on its website noted that its decision boils down to several positives they have seen coming from the US financial cycles.

Bitstamp said it was prioritizing the US market as it has seen a 570% increase in new customers in the first four months of 2021, in contrast to the same period in 2020.

Assets under management (AUM) for U.S customers had also increased by 281% in Q1 and a 325% increase in its mobile app usage in the U.S.

In terms of US client’s activities (trades, deposits), Bitstamp said this metric jumped on a monthly level by 348% in 2021 versus the same period last year.

To further cement its place in the US market, Bitstamp will be launching a full-scale marketing campaign to educate retail investors in the country about the potential benefits that come with owning cryptocurrencies.

Bitstamp’s campaign will be called “For All The Ways We Crypto.” The campaign will also play a crucial role in raising its global profile as a top cryptocurrency exchange.

Bitstamp’s CEO Julian Sawyer describes crypto as one of the fastest-growing segments of the financial world.

Sawyer was the former Gemini managing director for Europe.

Sawyer said Bitstamp has an ambitious goal of becoming a leader in a highly competitive marketplace, like the US.

He also said that the triple-digit growth was a clear indication that American investors wanted access to their services.

Bitstamp has been carefully positioning itself for the crypto avalanche after appointing Sawyer as the new CEO in October last year. It also brought in Barclay’s financial director and former Amazon veteran Stephen Ballpark to head its financial unit while Sameer Dubey was appointed as the exchange’s operations officer.

But that is not all. Bitstamp says it will also be increasing its customer support team by 50% this year.

Bitstamp’s Impressive US Record

Bitstamp said that it would continue to focus on optimal trading speed by handling large trading orders without affecting the price of the digital assets.

It also pointed out that it is one of the top 5 globally recognized crypto exchanges for large volume trades as it processes over $28 billion in monthly transactions. Alongside this, it has $11 billion total AUM, with the US market contributing 11% to this remarkable return.

To add more laurels to its achievement, Bitstamp collaborated with Silvergate Bank to launch Silvergate’s SEN Leverage. The financial instrument focused on institutional investors allows traders to invest in any asset with leverage collateralized by Bitcoin or US dollars.

According to Bitstamp, this partnership has so far generated over $50 million in loans and may likely raise over $250 million before the year ends.

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Author: Jimmy Aki

Retail Investing Behemoth Is ‘Closely’ Looking at Crypto Market; Awaiting ‘More Regulatory Clarity’

Retail Investing Behemoth Is ‘Closely’ Looking at Crypto Market; Awaiting ‘More Regulatory Clarity’

Operating nearly 32 million brokerage accounts with over $7 trillion in client assets, Charles Schwab says they will be highly competitive and disruptive when that comes.

Charles Schwab is looking “closely” and “cautiously” at the cryptocurrency market, said the head of the brokerage on Thursday, adding that they are awaiting more guidance from regulators before offering crypto capabilities on its platform.

It has been exploring the launch of crypto brokerage since last month, and as we reported, it has been seeking a compliance director for its futures and forex team that involves crypto aspects.

“We would like to see more regulatory clarity,” Schwab Chief Executive Officer Walt Bettinger said on a call with analysts.

“And if and when that comes, you should expect Schwab to be a player in that space in the same way it has been a player in other investment opportunities across the spectrum.”

The US Securities and Exchange Commission (SEC) has yet to provide any clear rules and regulations regarding digital assets, but with crypto-friendly Gary Gensler being the new chairman, “guidance and clarity” is expected soon.

One of the largest retail brokerages and retirement account providers in the industry, Charles Schwab added a record 3.2 million new clients in the first quarter of 2021, more new accounts than the entire 2020.

The company said it now operates nearly 32 million brokerage accounts and has more than $7 trillion in client assets.

The retail investing behemoth also said it is closely watching for any new developments on the regulator front regarding whether they allow a crypto-based investment-oriented product like an exchange-traded fund (ETF). “We recognize a bit, I’d say, well, what’s going on,” Bettinger said.

“If Charles Schwab, the company, decides to participate in the crypto market, we will be highly competitive, we will be disruptive, and we will be client-oriented.”

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Author: AnTy

CBDC’s Unlikely To Threaten Cryptocurrencies, Market Has Evolved: Morgan Stanley

CBDC’s Unlikely To Threaten Cryptocurrencies, Market Has Evolved: Morgan Stanley Report

As central banks worldwide continue to establish their digital currencies, one of the largest US investment banks, Morgan Stanley, says they won’t be a threat to cryptocurrencies.

Analysts at Morgan Stanley believe that both central bank digital currencies (CBDCs) and cryptocurrencies would co-exist because they are not the same and serve different purposes.

CBDCs May Threaten Stablecoins But Not Crypto

In a recent report, the analysts said that while CBDCs may not affect cryptocurrency markets as they enter the space, stablecoins probably have the biggest risks in terms of competition.

However, they noted that cryptocurrencies like Bitcoin and the rest that reflect underlying assets would not be affected. BTC 0.00% Bitcoin / USD BTCUSD $ 63,358.91
$0.000.00%
Volume 77.47 b Change $0.00 Open $63,358.91 Circulating 18.68 m Market Cap 1.18 t
3 h India’s Minister of Finance Says Cryptocurrency Bill is Designed To Protect Investors 4 h CBDC’s Unlikely To Threaten Cryptocurrencies, Market Has Evolved: Morgan Stanley Report 6 h Coinbase Is Now Live On Nasdaq, Valuation Soars Past $100 Billion with Shares Trading Above $400

One of the analysts, Morgan Stanley’s chief economist Chetan Ahya, added,

“Cryptocurrencies will still exist, as they continue to serve other use cases. For instance, some cryptocurrencies can function as a store of value as some segments of the public do not place their full faith in fiat currencies.”

Although some skeptics believe that once CBDCs are introduced, the demand for cryptocurrencies would dwindle.

For instance, the South Korea Central Bank Chief, Lee Ju-Yeol, had stated that CBDCs would reduce the demand for Bitcoin once it launches.

However, Morgan Stanley, in its report, shows this thinking is flawed. According to the analysts, the reasons for investing in cryptocurrencies appear to have evolved. Buyers are now viewing digital assets like Bitcoin as new institutional asset classes rather than replacement payment systems.

According to the bank, investors’ interest in cryptocurrencies has risen over time alongside the pandemic’s unprecedented monetary and fiscal policy response. That is, the current macroeconomic conditions have led to massive interest in cryptocurrencies.

Banks’ Acceptance Of Cryptocurrencies

The traditional banking system seems to have mixed views regarding cryptocurrency and fiat’s digital doppelganger. While most banks are adapting and supporting cryptocurrencies, some aren’t.

Bank Of New York Mellon announced a crypto unit for crypto traders earlier this year, signaling its acceptance of the currency. Other banks like JP Morgan have followed suit with a raft of solutions.

But one bank that has remained anti-crypto is HSBC. HSBC adopted an anti-cryptocurrency policy and censored certain transactions associated with digital tokens’ purchase and sale on its platform.

The British-based bank blocked its customers from depositing from crypto wallets earlier this year. It most recently barred customers of its online trading platform, HSBC InvestDirect (HIDC), from purchasing shares of software company MicroStrategy.

Meanwhile, central banks are increasingly taking steps and making efforts to launch their digital currencies. Research and development efforts are underway at most of the world’s central banks currently.

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Author: Jimmy Aki

Risk-On Sentiment Sends Crypto & Stock Market to New All-Time Highs as Bitcoin Holds the Line

Risk-On Sentiment Sends Crypto & Stock Market to New All-Time Highs as Bitcoin Holds the Line

“60k is merely a psychological resistance” as BTC miners accumulate, on-chain activity gives “strong vote of confidence,” futures premium rises, dollar slides, and OI keeps above $22 billion.

The cryptocurrency market enjoys a strong bull rally as it hits a new all-time high above $2 trillion amidst growing demand from both retail and institutional investors.

Momentum for Bitcoin is strong, with the number of BTC held by the first-ever Bitcoin ETF (BTCC) soaring to 16,710 BTC.

But altcoins are particularly enjoying the leading cryptocurrency taking a rest under $60k. This has Ether flying past $2,100 ETH 0.18% Ethereum / USD ETHUSD $ 2,121.30
$3.820.18%
Volume 29.24 b Change $3.82 Open $2,121.30 Circulating 115.36 m Market Cap 244.72 b
4 h Monetary Authority of Singapore (MAS) Warns: Crypto is ‘Highly Risky’ & ‘Not Suitable for Retail Investors’ 6 h Bitcoin Mining Chip Maker, Ebang Launches a New Cryptocurrency Exchange, Ebonex 8 h CI Global Asset Management Launches Bitcoin Mutual Fund, Also Files for Ether ETF & Mutual Fund
, XRP hitting $1 after a long three-year period XRP 21.56% XRP / USD XRPUSD $ 1.11
$0.2421.56%
Volume 37.13 b Change $0.24 Open $1.11 Circulating 45.4 b Market Cap 50.51 b
4 h Monetary Authority of Singapore (MAS) Warns: Crypto is ‘Highly Risky’ & ‘Not Suitable for Retail Investors’ 8 h Risk-On Sentiment Sends Crypto & Stock Market to New All-Time Highs as Bitcoin Holds the Line 1 d Kimchi Premium on Bitcoin & Ethereum Aiming for 15%
, and other old crypto coins waking up from deep slumber.

According to trader and economist Alex Kruger, the best-case scenario for the crypto market is a “euphoric bull run into Coinbase listing,” which is to happen next week, to sell in May go away. The coursing of bulls will then lead to their come back in September.

“Merely A Psychological Resistance”

While BTC hasn’t broken its mid-March ATH of about $62k, Glassnode said in its research report that the fact that the largest cryptocurrency held the $1 trillion market cap for one week is a “strong vote of confidence for bitcoin and the cryptocurrency asset class as a whole.”

Glassnode further notes that on-chain activity reinforces Bitcoin’s robust position with over 1.98 million BTC, equivalent to 10.6% of the circulating supply, transacting above the $1 trillion thresholds.

As analyst Mati Greenspan puts it, “60k is merely a psychological resistance.”

As we reported, Bitcoin network fundamentals are also strong, with hash rate and difficulty both hitting new all-time highs. Also, miners have begun to accumulate BTC after selling through Q1 as miner revenue hit a new peak in March and a hat-trick for keeping above the $1 billion levels this year.

All of this is long-term bullish, says Ki Young Ju of CryptoQuant. “Network fundamentals are getting stronger, and those who make the network strong don’t cash out Bitcoins to buy new mining rigs. They buy mining rigs with cash, not Bitcoin,” he said.

What’s Happening in Futures?

Meanwhile, in the futures market, open interest across major exchanges continues to stay over $22 billion for almost a week now.

Moreover, the BTC futures premiums on retail-focused platforms are climbing higher this week, widening the institutional platform CME gap.

The funding rate on Bitcoin perpetual contracts has reached 0.1264%, the highest on Bybit. On CME, Bitcoin price is trading just 1.2% higher, as of writing.

image1

Source: Arcane Research

Macro is Bullish Too

Just like the Bitcoin market and network are bullish, the macro environment also gives bullish signals as risk appetite makes a return. The S&P 500 and Dow both surged to an ATH over the growing momentum of economic recovery.

Additionally, the dollar has started April on a weak note despite stronger-than-expected monthly payroll data.

After rising along with the Treasury yields this year, the USD index posted its biggest drop in three weeks as hedge funds cut their long positions, but it steadied on Tuesday. This latest weakness, according to strategists, is because USD has “outstripped the pickup in non-U.S. growth expectations” and could further be a sign that the U.S. reflationary advantage compared to other major economies is running out of steam.

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Author: AnTy

Cryptocurrency Market Calls for $70,000 as Bitcoin Bulls Struggle to Reclaim $58k

Cryptocurrency Market Calls for $70,000 as Bitcoin Bulls Struggle to Reclaim $58k

The cryptocurrency market is on the move today in the upward direction after recording losses in the last two weeks, which came following Bitcoin’s new all-time high at nearly $62,000.

The green start of the week had BTC/USD going as high as $58,500.

This fight to reclaim the $58k level has open interest on perpetual swaps back above $15 billion, not seen since nearly a fortnight.

With these gains, the funding on Bitcoin perpetual contracts also climbed up. Currently, the highest reading of 0.1013% is on Bybit on Bitcoin’s Coin Margined Perpetuals and 0.1056% on FTX’s USD or USDT Margined Perpetuals, as per Viewbase.

Funding on Bitmex Bitcoin perpetual contracts also went above 0.1%, and according to data provider Santiment,

“When Bitmex funding rates get high, it’s one of the best public examples of crowd greed. Vice versa when funding rates go negative, indicating fear.”

The renewed green has the market excited and looking for new highs soon.

As Bitcoin enjoys gains, crypto traders, including TheCryptoDog and SmartContracter, are now calling for $70,000 as the next target, with another trader who goes by Mr. Anderson on Twitter saying, “$100k is already written.”

Still, others like trader Rekt Capital believe Bitcoin may take some time in its consolidation phase before it makes its way up for good to new highs, yet again.

“I wouldn’t be surprised if BTC continues its consolidation for a couple more days as per the red box, even if we do see some unsustainable upside wicking in the meantime. Throughout 2021, we’ve seen consolidation periods form during retrace bottoms where upside wicks were common.”

Breaking above $59k, however, will help the Bitcoin price reach new highs, he added.

March is also coming to an end, which historically hasn’t been a bullish month. While this month wasn’t exactly bearish, having climbed from $43k to $62k only to make our way to about $50k last week, April holds promise. Eight out of ten times, April has been a green month, that too in double-digits.

The new quarter is also expected to bring even more bullishness, as historically it has been the best quarter.

With three days left in the month to end, Bitcoin meanwhile is looking to deliver its best Q1 in years with more than 100% returns.

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Author: AnTy

‘Nothing has Really Changed’ in the Crypto Market, Despite the Weak Price Action

Money and bullish news continue to flow into the Bitcoin market, with more to “start coming in early next month.”

After yesterday’s drop to $50,300, Bitcoin made its way to $53,800 today, giving hope of the market being bottom.

“It is now time to start looking for a tradable bottom in BTCUSD and the other major cryptocurrency. I plan to keep an eye on the alts too,” tweeted John Bollinger, inventor of Bollinger Bands.

Meanwhile, analyst Mati Greenspan says, “a strong break below 50k could easily pave the way for a move down to 42k, and possibly 36k.”

The crypto asset briefly fell below its average price over the 50 days as well, which has been a support level so far this year, now having a $953 billion market cap. According to Miller Tabak + Co.’s chief market strategist, Matt Maley, a “lower-low below that level would scare a lot of momentum players.”

Cautious Crypto

Source: Bloomberg

The pullback in Bitcoin and altcoins’ prices came amidst a wider retreat in other assets like tech stocks. A general Bitcoin downtrend is being “exacerbated by the move to value in general across asset classes” and away from areas like technology, said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore.

After an earlier wave of institutional adoption and stimulus-infused optimism among retail traders, the largest cryptocurrency fell for the fifth straight day, recording the longest losing streak since December.

Poll results have been showing that people have been planning to spend their stimulus checks in the markets. But given that markets fail to see the effects, unlike the last time, the speculation is growing that Americans will be spending them in the real economy.

Bullishness Continues Flowing In

While the traditional market analysts are back at calling it a downtrend again and seeing a limited upside with the likes of BIS’s Benoit Coeure reiterating that Bitcoin is not a currency, the crypto market says nothing has changed.

“The color and information we see from the street is largely from the institutional part of the market, and nothing has really changed in their view on the impact of stimulus on longer-term inflation and the role of digital assets as a hedge to that,” said Matt Long, head of distribution and prime brokerage at digital-asset platform OSL in Hong Kong.

The bullish news hasn’t stopped coming in at all either. For starters, USDC supply has increased more than $1 billion in the past week, its market cap reaching past $10.6 billion. As for USDT, it added $6 billion in the past month, its market cap climbing to $41.6 billion.

image2

Source: Twitter

Sovereign wealth funds and even the government are looking at Bitcoin, according to the NYDIG CEO.

Moreover, the New Zealand retirement fund, KiwiSaver, has reportedly invested 5% of its assets into Bitcoin. The pension fund, with NZ$350 million (US $244 million) in assets at the end of December, reportedly started investing in Oct. last year.

“If you are happy to invest in gold, you can’t really discount bitcoin,” said the fund’s chief investment officer, James Grigor.

Mike Novogratz, founder of crypto firm Galaxy Digital further believes wealthy baby boomers will be the next generation to jump into cryptocurrencies.

“It could be as much as a trillion dollars comes over the next year from that giant group of wealth,” said Novogratz in an interview at Reuters Digital Assets Week. He expects the money to “start coming in early next month.”

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Author: AnTy

Solana (SOL) is ‘Uniquely Positioned’ to Snatch Market Share from Ethereum & ETH Killers, says VC

Solana (SOL) is ‘Uniquely Positioned’ to Snatch Market Share from Ethereum & ETH Killers, says VC

With a market cap of $4.3 billion, SOL is the 24th largest crypto asset, trading around $16.12, up 20% in the past 24 hours and 800% YTD.

Over the weekend, Sino Global Capital, which invests in blockchain projects, shared their research on why they are bullish on Solana, a high-performance blockchain that was chosen by FTX founder and CEO Sam Bankman Fried to build the decentralized derivatives platform Serum (SRM).

“Solana fills a major performance gap in the world of blockchains while remaining decentralized and composable,” reads the thread by the firm based on the research done by Max Stein, who previously was at ConsenSys. It bets,

“Solana is a bet that one day we will need fully decentralized systems that can support thousands of high-value complex transactions per second and that the chain that can support that scalability and finality today will accrue significant value.”

According to the firm, the ultrafast, low latency, high-performance blockchain is “uniquely positioned to gain market share from existing smart contract blockchains.” Ethereum is the leader in the smart contract market, and other popular ones include Polkadot, BSC, Cardano, Avalanche, Kusama, VeChain, Algorand, and many others.

Scalability and low cost, which helps both users and developers, are its notable advantages which, as we have seen many times, the second-largest network really struggles with.

Composability is another one, and “Scalable composability is not possible with sharding/layer 2s,” it says. When it comes to Solana, it can process at scale right on a single layer 1, “with transaction finality that meets institutional requirements.”

And while Binance Smart Chain (BSC) is also fast and cheap, it is “significantly less decentralized than Solana.”

Sino Global further points to Solana’s strategic ecosystem advantage — native support both for USDT and USDC, Jump Trading to be market making on Serum, and more importantly, it is aligned with Sam Bankman-Fried and “his burgeoning influential community.”

Audius, with over 2.5 million users, initially launched its ERC-20 token on Ethereum is building its settlement layer on Solana. Another project is 9-year old Maps with a 140 million user base along with Oxygen, Serum, Radium, and Civic building on the blockchain.

While mentioning the network freeze in December and the resultant criticism and caution as risks and threats, Sino Global says it has been “built from the ground up to be a scalable blockchain” by a team that has been working together for more than 15 years, which will help Solana accrue significant value.

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Author: AnTy