Coinbase Premium Tanks to an All-Time Low During Bitcoin Sell-Off

But soon it skyrocketed to nearly +$500.

The price of cryptocurrencies continued its downwards journey until a good bunch of longs was liquidated, and the price of Bitcoin went under $50k.

BTC went down as low as $48,250, down 27.5% from Sunday’s all-time high around $58,300.

With this latest dip, the leading digital currency has turned the old ATH of $46,700 into new support, noted analyst and trader Rekt Capital. However, the trader says this is not a Bitcoin correction because, historically, the trend tends to between 30% to 40%.

“But there are many more dips along the way which are much shallower than -30%,” added Rekt Capital.

This pullback pushed Coinbase Premium, the gap between Coinbase Pro price (USD pair) and Binance price (USDT pair) to an all-time low of -$1,020. Soon after, this premium skyrocketed to +486. Coinbase whales are actually the ones driving the market, and they took this opportunity to accumulate more BTC.

MicroStrategy and Tesla also availed Coinbase’s services to make their Bitcoin purchases.

This means, “Even if there are more corrections, it’s unlikely to go down below 44k,” said Ki Young Ju, CEO of CryptoQuant.

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Source: CryptoQuant

While after a wild rally that pushed us past the $1 trillion dollar market cap, correction is sometimes expected, we are also to blame for this correction because last week, the Crypto Twitter (CT) went crazy with red lasers, quipped another trader Josh Rager.

What actually exacerbated this sell-off was the degens that were trading with high leverage. In the last 12 hours, $3.64 billion worth of liquidation happened. In the past 24 hours, it was nearly $4 billion, as per Bybt.

Binance lead in these liquidations, accounting for $1.58 billion of them, followed by Huobi ($878.53 million), OKEx ($426.63 million), and Bybt ($322.49 million). Bitfinex and Deribit saw the least amount of liquidations at 8.74 million and $55.14 million, respectively.

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Source: ByBt

The liquidation helped the funding rate on BTC perpetual contracts to come down between 0.0068% on Deribit and 0.0686% on Binance. On OKEx, funding is negative.

For now, the market has recovered from the lows as Bitcoin now trades around $52,644.

Amidst the red market, good news came from Vancouver-based cannabis company Vinergy that announced the expansion of its investment policy to include Bitcoin and cryptocurrencies as the “influx of investment and increased institutional adoption is creating a highly lucrative opportunity.”

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Author: AnTy

Ether’s Bullish Momentum Continues with Institutional Demand

Just like Bitcoin surged to a record high, nearly $52,700 on Wednesday, Ether has broken past the $1,900 level, hitting nearly $1,930.

For Bitcoin, “what stands out most is the trend that MicroStrategy started, and Tesla popularized: moving institutional balance sheets into Bitcoin to hedge against inflation,” said Nicholas Pelecanos, head of trading at NEM.

The Bitcoin futures market sees a lot of activity, with volume keeping above $50 billion this month and at times hitting $100 million.

CME Group is particularly getting traction, hitting a record $5 billion mark for the first time on Tuesday.

Interestingly, hedge funds continue to be record short on Bitcoin on CME, but at the same time, they are record long on Grayscale, capturing the premium on GBTC. They are also earning over 50% annualized funding from the basis trade on their USD.

As of writing, the price of Bitcoin on Coinbase was $51,525 and $52,090 on CME.

Earlier this month, CME also launched Ether futures, which started slowly, much like Bitcoin futures when they were listed in Dec. 2017.

But “it will likely not take as long for Ethereum futures to begin gaining traction as it initially took for Bitcoin futures, as investor interest in cryptocurrencies has had a few years to mature,” noted JPMorgan strategists.

Already daily trading volume of Ethereum futures on CME has doubled, and open interest surpassed $60 million.

The growing institutional demand for Ether can also be seen on Grayscale, the largest digital asset manager, which bought over 20k ETH in the last 24 hours, bringing its total holdings to 3.15 million ETH.

As we reported, the fundamentals of the second largest cryptocurrency are very strong. The fees are crazy high and never seen before levels of addresses continue to interact with Ethereum.

The network is also seeing an average of 1.2 million daily transactions and an average of 550k daily active addresses. Large transactions, more than $100k, that act as a proxy to institutional activity, have also recorded an increase of 45x in the past year.

Even on social media, conversations around ETH have nearly doubled since the beginning of the year, with over 20.6k tweets (on average) sent out about ETH every day, up from 10.9k on January 1st, as per data provider The TIE.

In that regard, the price of Ether is slow-moving, though it outperforms Bitcoin with 160% YTD gains compared to leading cryptocurrency’s 75%.

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Author: AnTy

Mark Cuban Praises DEX SushiSwap; Now Selling “Personalized, Tokenized Video” on Rarible

The explosion of interest in the NFTs has the trading volumes surging nearly 200% in February to past $7 million.

Billionaire Mark Cuban is all about DeFi and NFTs. Almost every other day, Cuban is talking about the digitized space in which he is personally invested as he revealed that besides Bitcoin, Ether, and Litecoin, which he initially said is worth less than a banana, now also owns AAVE and SUSHI.

In a video over the weekend, he praised the decentralized exchange (DEX) SushiSwap which has been doing more than half a billion worth of volume every day.

Cuban thanked everybody at Sushiswap for making him money while making it easy to yield farm, stake, and swap, all the things that are part of the new future of banking and financial world with DeFi, he said.

He is particularly getting more and more interested in non-fungible tokens, which he compares to his interest in basketball cards but even better. He explained the reason behind investing in digital collectibles saying,

“Once you realize the sense of ownership is the same for a digital collectible as a physical one you come to the realization that holding/maintaining/grading/shipping/buying/selling a physical good is a hassle. It’s fast and easy w digital.”

Cuban is actually hustling on NFT marketplace Rarible, on which he has previously sold his digital piece.

Now, the owner of Dallas Maverick is selling “personalized, tokenized video,” like Cameo but with a twist of the latest technology.

“What’s better than Cameo? A personalized, tokenized video that you can save or sell,” tweeted Cuban.

On buying the collectible video of his, the buyer unlocks an email address that can be used to send a request for a personalized video with a 30 MB file limit. Cuban, in response, records the video, mints it and then transfers the video to you.

While the buyer won’t have any commercial rights on it, they can resell it or keep it forever, “It will be a one of a kind.”

Twitter holder @Pranksy, co-founder of NFTBoxes, has bought 10 of these Cuban videos already. He also gifted Cuban a “Million Dollar Punk Draw ticket.”

As we reported, NFT space is exploding with celebrities like Mike Shinoda jumping in. All of this activity has the weekly NFT trade volumes surging nearly 200% from $1.86 million in early January this year to well past $7 million in the first week of February.

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Author: AnTy

Celebrities from All Industries Were Pumping DOGE to the Moon Over the Weekend

The latest trip to nearly $0.09 has DOGE becoming the 10th largest cryptocurrency with a market cap of $9.62 billion, worth more than the likes of Stellar (XLM), AAVE, Uniswap (UNI), EOS, Elrond, Tron (TRX), Tezos (XTZ), and Synthetix (SNX).

The meme cryptocurrency Dogecoin (DOGE) is back to pumping. The first pump was seen at the end of January when the price of DOGE went from $0.0073 to $0.073 on Bittrex, which soon fell to $0.03, but this month, DOGE has been slowly climbing up and yesterday went to nearly $0.09. Another retracement has been seen today to $0.062, but we are currently around $0.075.

These gains have DOGE at the 10th spot with a market cap of $9.62 billion, worth more than Stellar (XLM), AAVE, Uniswap (UNI), EOS, Elrond, Tron (TRX), Tezos (XTZ), and Synthetix (SNX).

Interestingly, over the weekend, while DOGE took off, yet again, other cryptocurrencies, including Bitcoin and Ether, experienced a correction.

All of this has been started by Tesla and SpaceX CEO Elon Musk and then carried forward by other celebrities. Musk has propelled DOGE prices higher previously on several occasions with his tweets, but this time, he went on a frenzy with his tweets about the meme coin.

As we reported, on Thursday, he tweeted, “Dogecoin is the people’s crypto,” and then in a separate one, “No highs, no lows, only Doge.”

In his appearance at the clubhouse, he had said, “the most ironic outcome would be Dogecoin becomes the currency of Earth in the future.” While this continued with “Ð is for Ðogecoin! Instructional video” tweet that he shared today, this might be it for the DOGE pump from Musk, for now, as he goes “back to work.”

But his DOGE mania did bring other celebrities in. Musician Gene Simmons, who recently announced his interest in cryptocurrencies and even bought some coins also promoted DOGE.

The “seven figure” Bitcoin HODLer, said he bought “six figures” of DOGE and tweeted about the cryptocurrency going to the moon.

Soon Rapper Snoop Dogg also jumped in with Kevin Jonas, chiming in, “All I’m saying… $doge.”

“If I had to choose between buying a lottery ticket and Dogecoin …..I would buy Dogecoin,” is how Shark Tank’s Mark Cuban announced he was also onboard the DOGE train. Cuban, who found more worth in a banana than cryptos, recently revealed that he owns Bitcoin, Ether, Litecoin, and popular DeFi tokens like AAVE and SUSHi, and he’s taking a special interest in NFTs as well.

Rapper Lil Yachty, who launched his social token in December, also said, “DOGE TO THE MOON AND WE NOT COMING BACK.”

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Author: AnTy

Gen X Investors Overtake Millennials in Crypto Adoption: Wirex & Stellar Report

Nearly 75% of consumers view digital assets and stablecoins as an alternative to traditional money transfer services. High fees, slower transaction times, and hectic cross-border transfers are some of the reasons leading consumers to digital asset payment systems, joint research from Wirex and Stellar Development Foundation (SDF) states.

The research report titled ‘The Future of Money: Cryptocurrency Adoption in 2021‘surveyed 3,834 respondents from the two companies’ database in the past three weeks. Over 81% of the respondents hailed from Europe and 17% from the Asia Pacific region, 83% of them aged above 35 years.

The research focuses on the adoption rates of crypto across different genders, age groups, and regions and how digital currencies solve problems in the real world.

Older People are Rapidly Accepting Cryptocurrencies

The older generations are gradually accepting cryptocurrencies as a global payment system in cross border transfers, the report states. The appetite for crypto solutions in traditional payment systems is clearly there across all ages. Surprisingly, 30.2% of the respondents aged 45-54 stated they have used (are using) crypto, the largest group in the study.

Furthermore, older women are more likely to use crypto and blockchain-powered payment systems, the report shows. Slightly above a quarter (26.1%) of women respondents aged 55-64 years invested in cryptocurrency, while only 14.3% of men in the same age bracket invested in crypto.

Cryptocurrency is a Global Payment System

According to the research, the younger generation is rapidly moving towards digital assets seamlessly to transact across borders. With nearly 57% of respondents aged 18-24 years having sent money internationally, there is still room for growth as the “digitally-conscious” generation look for seamless ways to transact value across the globe.

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International transfer fees remain the major issue that is pushing respondents to crypto. Despite the respondents adjusting, most complained about the international transfer fees were still too high. Over 40% of the respondents believe that paying 1% fees is still too high, with the number understandably increasing as the fees increased.

Consumers are open to switching to alternative transfer channels so long as the costs and fees drop significantly, the report states. This is a problem that crypto could solve. The authors of the report wrote that 74% of the respondents agree to digital assets as the solution to slow and expensive traditional money transfer systems.

Over 83% of the respondents stated they owned at least one cryptocurrency or stablecoin, with Europeans leading the way at 84.5% while 74.7% of the APAC region respondents owning digital assets. Fewer female respondents hold digital assets than male respondents (70.3% vs. 85.6%), with 65.7% of women who hold digital assets aged over 45 years.

A Haven for Users?

Despite the positive sentiments derived from the report and 86.1% of the respondents claiming that they “feel safe” with crypto payments, the authors still believe there’s more to be done in the industry. Unsurprisingly, younger generations feel most safe using crypto (90.6%) while older generations, those at 65+ years, feel less safe (80.7%) due to digital payments’ tech-savvy nature.

However, the survey showed some shortcomings as it focuses on the customers of Wirex and Stellar, who already have interacted with cryptocurrencies. The authors concluded that crypto converts’ views will definitely differ from those who are yet to use blockchain technology or cryptocurrencies in global money payment systems.

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Author: Lujan Odera

Tether FUD: USDT is Regulated and Market Manipulation Accusation is Just “Nonsense,” says CTO

Tether, which has grown to nearly $25 bln market cap, is following the law, collaborating with the regulators, and registered with FinCEN, said Paolo Ardoino.

While the market has been making new highs, some people are still keeping to the same old FUD.

The oldest FUD lately permeating the cryptocurrency market is Tether (USDT), the popular and dominant stablecoin. With the Treasury proposing rules and regulations related to the fiat-backed cryptos and the SEC suing XRP, the market expects more action from regulators.

However, people calling out for Tether to be targeted next is not happening as Paolo Ardoino, CTO at Tether and its sister company Bitfinex, a crypto exchange, explained,

“Tether is registered and regulated under FinCEN as all the centralized competitors. Strict KYC/AML is applied to all Tether direct users, as the other main issuers are doing. Less regulated is just FUD.”

However, this hasn’t stopped people from speculating and voicing their concerns on Crypto Twitter (CT), which, according to the people involved with Tether, are baseless.

Tether came into existence to solve the issue of discrepancy in Bitcoin prices between different exchanges and making spreads more like traditional finance. USDT also cut down the time-consuming process of wire transfers.

Tether’s market cap has grown 6 fold in the last ten months to nearly $25 billion from $4.2 billion in April 2020.

During the 2017 bull market, Tether became big, and all the speculation around the stablecoin backing and legitimacy brought NYAG into the picture.

Tether is currently under investigation by the New York Attorney General (NYAG), but it is not for ‘pumping Bitcoin; rather, it is accused of co-mingling client funds and losing $850 million of them without disclosing any of this information to the public. This leads to Tether not being fully backed by cash reserves.

As for manipulating the market by printing Tether, it is all “nonsense” because Tether is issued when a counterparty makes a wire payment, said Ardoino on Peter McCormack’s podcast, What Bitcoin Did.

According to him, the growth of Tether is just driven by the actual demand of Tether’s market, so the entire manipulation thing is nonsense. He further added that during the last bull run, crypto saw a “boom of interest in retail that made the crypto going balloon,” and that’s just it.

Trader and economist Alex Kruger says that while the “NYAG argues tethers are a commodity,” the whale Tether drama doesn’t have any market impact.

Recently, the lending rates on Bitfinex went to 7% per day, which led many people to speculate that the company is run out of USDT.

However, it is USD that it ran out of because of “big users re-balancing their longs against USD,” clarified Ardoino. Also, the accounting delay, along with the massive size, can cause a delay in the lending books.

Overall, Tether is following the law, collaborating with the regulators, and registered with FinCEN, said Ardoino.

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Author: AnTy

Two-Thirds of PayPal Users Aim to Use Bitcoin at Merchant Stores: Study

  • Nearly 20% of PayPal users are ready to use and hold Bitcoin (BTC) on the platform, report.
  • Can this push BTC past its recently set all-time high price?
  • Research firm sets PayPal stock price target set at 35% increase due to BTC excitement.

Nearly a fifth of PayPal users are jumping on to the Bitcoin (BTC) train, a Japanese investment bank report, Mizuho Securities, reported. According to the survey carried out by 380 PayPal users, there is an uptake in BTC purchases on the global payments platform as users take advantage of PayPal’s Bitcoin capabilities.

According to the survey, 17% of the respondents said they had already purchased Bitcoin on PayPal, with a further 65% confirming they will use the top crypto in daily purchases of goods and services.

After years of belittling Bitcoin adoption and banning its customers from participating in Bitcoin trading, PayPal finally embraced cryptocurrencies. In October this year, BEG reported PayPal would allow customers to buy and sell BTC alongside other top cryptocurrencies such as Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

Since Bitcoin’s price has exploded to set new all-time highs as retail customers on the payments platform stack up on the top crypto, Michael Santoli, a CBNC markets commentator, explained BTC’s ripping price growth as a factor of PayPal accumulating more BTC for their customers to purchase.

“Bitcoin ripping in part because PayPal and Square are buying loads of it to facilitate customer trading,” he wrote on Twitter.

Read more: Bitcoin Shortage Is Real; PayPal & Cash App Buying More Than 100% Of All Newly-Issued BTC.

Apart from the boost in Bitcoin’s price and usage on PayPal, user engagement, usage frequency, and PayPal’s stock monetization potential have also seen a boost following BTC’s integration. The survey reads,

“About 50% of PayPal’s bitcoin traders reported increased usage of the PayPal app after beginning to trade bitcoin.

This compares with just 9% who reported reduced engagement.”

Moreover, PayPal has found it difficult to convert non-Bitcoiners into Bitcoiners despite the growth in BTC purchases on the platform. Only about 8% of the non-bitcoin owners have purchased crypto through PayPal, with 42% of the non-Bitcoin holders stating they “do not know yet” if they will purchase the top crypto, the report stated.

Despite the hiccups, PayPal’s integration of Bitcoin has seen the company’s share price (PYPL) double over the course of 2020. Mizuho Securities has since increased its PYPL share price target from $270 to $290 due to BTC and crypto excitement on the platform, a 33% increase from the current price of $218 per PYPL share. Bitcoin, on the other hand, has experienced a 190% increase over the course of 2020, despite crashing to $3,500 in March.

NOTE: With over 200 million customers on its platform, a sample size of 380 does not give the full picture of the Bitcoin purchases and sales already made on PayPal.

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Author: Lujan Odera

Bitcoin in ‘Danger Zone’ as Whales Are Active on Exchanges & 78k BTC Options Expire Today

After falling to nearly $16,300, Bitcoin managed to stabilize yesterday, going above the $17,500 level. But as we reported, the pain is not over for the cryptocurrency market.

Today, the market is back to struggling, and it’s to be seen if we finally get the 30% retracement to under $14,000. The expiry of whopping 78k BTC options with a notional value of $1.3 billion today could propel this.

As Hxro Labs points out, Bitcoin has tapped the key retest at $16,500, and it must hold the level or risk further downside to $13,500. It added,

“Resistance now at $17,900 as a bearish throwback level. The market will need to reclaim $18,000 to signal continuation.”

The fact that Bitcoin whales are back at depositing on cryptocurrency exchanges is another reason a further dump is expected in the short-run. Ki-Young Ju, CEO of CryptoQuant noted,

“All Exchanges Inflow Mean(144-block MA) hit 2 BTC. I think we’re in a danger zone. The price is likely to go sideways or down when whales are active on exchanges.”

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“Bitcoin may be a victim of its own success,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “Traders suggested several large holders moved to lock in gains as the cryptocurrency reached for all-time highs.”

Altcoins had started to turn green, recovering their losses when BTC went under $16,750 today, and the entire market got affected. With funding picking up, perpetual contracts are trading at a premium to spot.

ETH, which is back around $500, has its key weekly resistance at $620 with “$550 now as the bearish throwback level to break to signal continuation for bulls.” Bulls need to hold $465 to keep it from the further downside.

Once we have a healthy retirement, the market will get back into action. Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong said,

“It’s also not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,”

“Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play.”

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Author: AnTy

This Election Week is Won by Markets; US Dollar Under Pressure with Risk On

On Thursday, the price of Bitcoin went nearly to $16,000 and is currently holding around $15,500. Having rallied 20% this week, the digital currency seems to be now in consolidation mode providing the altcoins the chance to surge.

These gains came during the US election week, which helped the leading digital currency beat major asset classes this year.

With 115% gains in 2020, Bitcoin exceeds gold’s 28% returns and S&P 500’s 8.60%.

Everything is aiming for their all-time highs following the Nov. 3 election as Joe Biden’s lead strengthened with the possibility of a Republican Senate. Such an outcome of a split government, according to some, could lead to an increase in fiscal stimulus.

“We still anticipate that there will be a fiscal package in excess of $1 trillion next year,” said James Knightley, chief international economist at ING Group in New York.

Besides the escalating pandemic and looser monetary policy, the sliding greenback helps push the digital asset higher as investors seek stores of value.

The dollar has its worst week since March, and according to Kit Juckes, a strategist at Societe Generale, “If you had to write a playbook that would get people to say ‘I need an alternative to the dollar,’ this whole process fits that story.”

During the period BTC rallied, the risk-on backdrop triggered a sell-off in the dollar, which fell to a 2018 low.

“Gold, silver, and Bitcoin have worked like a dream in the weak U.S. dollar environment and has attracted huge client interest,” wrote Chris Weston, head of research with Pepperstone Group Ltd., adding, further weakness in the dollar would encourage “an even more constructive view” on both gold and Bitcoin.

Crypto markets also have a history of wild swings, and it is currently on its third such cycle, riding a tide of liquidity.

Mania isn’t Here Yet

In the stock market, tech stocks are rallying on expectations that key progressive goals like antitrust reforms won’t be implemented by Biden.

According to Goldman Sachs analysts, financial services companies will also benefit from better capital markets and a lower likelihood of tighter regulation.

Already, more than $4 trillion has been added to global equity markets this week, putting it on track for the third-biggest week of 2020.

And with this, investors are back into pouring cash into global markets with a force that hasn’t been seen in months. The same is happening in the crypto markets, which added about $50 billion during the same period.

This can be seen in the open interest in Bitcoin options, which is reaching $4 billion. As per CME’s latest COT report, short interest from hedge funds has made a new all-time high, the same as short interest from dealers and intermediaries.

According to on-chain analyst Willy Woo, Bitcoin is not topping; rather, it will see more bullish action after consolidation.

As for the price action that we have recently, it was the “most organic pump” instead of a squeeze from derivatives traders as a “ridiculous amount of coins were scooped up and moved off to individual wallets,” — the largest one day scoop up in 5 years.

Before the pump started, the influx of new HODLers has been “through the roof,” the kind of momentum last seen in Oct. 2017, just one month before the mania started.

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Author: AnTy

COVER Protocol to Update Tokenomics After Receiving Backlash from the Community

  • So, the new lease on life is not really working out well for SAFE.
  • The token price dropped nearly 170% in the past 24 hours to under $100, only to find its ground just above $150 today.
  • This severe drop in the token price has been the result of the latest update shared by the rebranded COVER protocol.

Over the weekend, Cover protocol, originally called SAFE, shared its tokenomics with the community that the maximum supply of COVER tokens will be 160,000. The token generation will start on Nov. 20.

While 1% will be vested to the treasury, 12% of the COVER supply will go to the team. But what the community is finding problematic is the “significantly diluted early supporters of the project.”

Out of the 87% COVER token supply allocated to its community members, only 12% goes to original SAFE token holders “who backed the project,” with 90 days vesting period.

70% of the new supply is to be earned through shield mining in a new yield farm that is to be launched in the following 12 months.

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“Early supporters of COVER ( SAFE holders, not farm and dumpers) are now diluted by 5.8x,” noted Jason Choi of crypto fund the Spartan Group. He added,

“Was hopeful that COVER Protocol could be a viable addition to DeFi insurance, but the team’s repeated reckless decisions suggests otherwise. Still Nexus Mutual’s market to lose.”

The COVER protocol aims to “allow anyone to buy coverage on anything.” It is basically insurance coverage on smart contract risk.

The crypto community had questions for all the prominent advisers of the project, including YFI’s Andre Cronje, FTX CEO Sam Bakman-Fried, @bluekirby — who was involved in the Eminence.Finance $15 Million rug pulling, NFT project Off Blue chaos, and YFI dump and has now disappeared after making millions — and others.

Around the mid of September, SAFE enjoyed a pump after its revival as the COVER protocol. More importantly, it was the names of these advisors that had the community excited about the project again following the initial setback of inexperienced developers and early dumping.

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To clear his name from the COVER debacle, Sam said he has “no idea” what’ is happening with the project and that he is “not involved in any of the decision making.”

In response to the heavy criticism, the COVER team shared its intention behind the new tokenomics was to “ensure users who participate in the product directly benefit the most” which they say will “benefit the product in the long-term.”

But they acknowledged that the proposed plan has neglected the existing supporters and “reached out to ALL our advisors” and is now working on a revised tokenomics plan that will be released shortly.

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Author: AnTy