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

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

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

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

Crypto on the Same Pedestal as Stocks

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

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

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

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

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

American Investors Beef Up Risk Appetite

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

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

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

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

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

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

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Author: Jimmy Aki

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

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

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

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

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

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

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

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

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

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

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

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Author: AnTy

Brave Crosses 25M Monthly Active Users; Privacy Browser Continues Growth Trajectory

The number of active monthly users on Brave Browser has surged over the past year. The service is also seeing significant gains with its Brave Ads program.

Brave Browser enjoyed significant growth in 2020, capitalizing on the increasing focus on privacy to hit new milestones. The privacy-centric browser doubled its user base in 2020, setting itself up for possibly more gains in 2021.

Privacy Focus Benefits Brave

According to a press release, Brave explained that its monthly active users jumped from 11.6 million to 25.4 million last year, per its press release. Daily active users jumped similarly, moving by 126 percent from 3.8 million to 8.6 million. The number of verified content creators on the platform passed one million for the first time.

Brendan Eich, the company’s co-founder and chief executive, explained that the increase in its user base represented the increased desire for people to escape the “surveillance economy.” He explained in the release,

“25 million people have made the switch to Brave in order to protect their privacy and to regain control of their browsing experience. Users are realizing that a new way to browse the Web is just one click away with a seamless Brave download and that they can opt-out of the surveillance economy and instead get rewarded for browsing.”

Eich believes the company’s growth would continue, citing the increased influence of Big Tech companies on the internet landscape. With these firms showing a propensity for collecting user data, Brave will be there to provide a viable alternative.

Building Its Ecosystem

Brave has been doing a great deal of work to improve user security. In July, it partnered with Guardian, a VPN, and firewall service provider, to improve its iOS customers’ security.

The partnership saw the two companies capitalize on their strengths, Brave’s privacy-focused browser, and Guardian’s firewall and VPN offering. Brave’s iOS users can now turn on the Brave Firewall + VPN service in one click, protecting their devices from trackers.

However, the company has also been able to make significant strides in its Brave Ads program. The program allows users to opt-in to watch ads in exchange for the company’s native token Basic Attention Token (BAT).

Last year, Brave pointed out that several top crypto firms had signed up for its ads program. These included stock trading app eToro and crypto lending firm BlockFi.

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Author: Jimmy Aki

One River Receiving An ‘Astounding’ Number of Inquiries for Bitcoin from ‘Big Credible Institutions’

One River Receiving An ‘Astounding’ Number of Inquiries for Bitcoin from ‘Big Credible Institutions’

The hedge fund with $1 billion in digital assets is “overwhelmed” with the response from “huge institutions.”

A storm of investors is coming, and it is coming in full swing, especially now that Bridgewater Associates founder, Ray Dalio, has made his positive case for Bitcoin.

This is evident from the “astounding” number of inquiries the firms that provide digital asset services are getting.

The cavalry of institutional investors is coming, and it is happening “enormously,” according to One River Asset Management chief executive officer Eric Peters. Peter bought over $600 million of cryptocurrencies last year. The hedge fund now has more than $1 billion in digital assets.

“What’s happening is, almost every big credible institution in the U.S. is having discussions about this,” Peters added these are “huge institutions” where you have 10 to 15 people in discussion – the entire investment committee.

“They’re fascinated by this thing,” he said, which they should be, “because this is the first and last asset class that will appear in our lifetime. And so if you’re a large institutional investor, the first natural place to get exposure is the beta.”

All of this crazy amount of activity happening right now means the digital asset class will mature in a decade from now, said Peters. “The number of institutions that have been filling my day with calls and inquiries about this is astounding,” he said in an interview with Bloomberg.

But this is just the beginning because there are all kinds of opportunities in this asset class, said Peters. As they start learning, they would allocate some portion of their portfolio to these assets, but “they’re literally going to take years, and they’ll start small, and they’ll increase in size over the next decade.”

Overall, One River is “overwhelmed” with the response right now, which makes it “virtually impossible to imagine that you have this level of interest and you don’t have allocations.”

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Author: AnTy

Growing Number of Clients Bought ETH, But Only A Select Group Is Investing in DeFi: Coinbase

Growing Number of Clients Bought ETH, But Only A Select Group of VC Funds & Family Offices Investing in DeFi: Coinbase

DeFi remains retail-driven just like the early days of Bitcoin adoption, says Coinbase whose clients are interested in Ethereum’s evolving potential as a store of value and its status as a digital commodity.

2020 brought “traditional hedge funds to the forefront of participation,” states Coinbase in its 2020 in the Review report.

Covering the year “crypto cemented its status as an institutional asset class,” said the largest cryptocurrency exchange in the US, which is planning to launch its IPO, noting that macro funds are the earlier adopters with several large funds now begun trading Bitcoin and Ethereum directly with investor capital as well.

The company’s clients invested in Bitcoin for a range of reasons, including as a store of value, as an inflation hedge and/or insurance against new potential monetary policy risks, as a portfolio diversification tool, and as a treasury reserve asset.

Coinbase is particularly expanding its business in Europe and Asia, with Singapore as the staging post for Asia expansion because of its regulatory clarity. After opening its third office in Europe, Coinbase now has 120 full-time employees in the region.

A Trend Occurring out of View for Most of Wall Street

“While our institutional clients predominantly bought Bitcoin in 2020, a growing number also took positions in Ethereum,” reads the report.

The second-largest cryptocurrency, which has been more volatile than Bitcoin, is seen by Coinbase’s institutional clients as a “decentralized computing network that shares Bitcoin’s properties of trustless store and transmission of value, along with more flexible programmability via smart contracts.”

Ethereum’s evolving potential as a store of value and its status as a digital commodity required to power transactions on its network are the clients’ reasons for owning the digital asset. However, the community needs to settle on a clearer and simpler narrative, which Coinbase says is both a challenge and an opportunity for Ethereum.

Decentralized Finance (DeFi) is also seen as one of the most important growth developments for the Ethereum network as Coinbase clients believe this sector has “potential to reinvent financial products and services.”

Coinbase hasn’t yet seen significant investment in DeFi assets from institutional clients, except for “a select group of venture capital funds and family offices.”

DeFi remains retail-driven; just like the early days of Bitcoin adoption, Coinbase added maturity would take time.

“We can imagine a future in which institutional investors can access both traditional and decentralized financial services through trusted, regulated onramps,” which may be difficult to imagine today given the relatively small size of the DeFi market, a bottom-up trend that is occurring out of view for most of Wall Street.

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Author: AnTy

Bitcoin Millionaire Addresses Reaches Highest Level Since January 2018

As Bitcoin’s price holds strong at $13,000, the number of Bitcoin millionaire addresses are also hitting levels not seen since the last bull run.

Those addresses that have been holding more than $1 million worth of BTC have surpassed 20,000, the highest level since January 2018, as per Glassnode.

These numbers have been increasing since March when the sell-off pushed these addresses from about 17,500 to nearly 7,500.

In August, these numbers took a big leap when it added about 5,000 new addresses. Now, it has reached levels that we came close to in the middle of last year.

The number of addresses with more than $1 million of Bitcoin reached its all-time high at just above 28,000 at the top of the market in December 2017 when BTC price hit $20,000.

According to Bitinfocharts, while 20,554 addresses are richer than $1 million, only 2,754 addresses have $10 million worth of BTC.

Meanwhile, more than 25 million addresses have $1 worth of BTC, close to 9.7 million addresses have more than $100 of BTC and 3.64 million has $1,000 worth of Bitcoin.

The number of addresses richer than $10k worth of BTC is moving to 990k, and 182,414 addresses have $100k BTC.

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This has been as Bitcoin works towards solidifying its role as digital gold, a store of value. Recently, a team of analysts at JP Morgan also touted the leading digital currency to be in “intensive” competition with gold, suggesting a “doubling or tripling” in its price if this trend continues.

“The older cohorts prefer gold, while the younger cohorts prefer Bitcoin as an ‘alternative’ currency,” read the research note.

The analysts also added that Bitcoin’s long-term prospects could further improve because of its utility as a payment mechanism.

In that regard, just yesterday, a BTC wallet holder moved over 88,857 BTC, worth about $1.15 billion for a fee of mere 0.00027847 BTC, worth less than $4.

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Author: AnTy

Over 100k Bitcoin Worth Nearly $1.2 Billion Tokenized on Ethereum; WBTC & RenBTC Leading

The number of Bitcoins locked on Ethereum continues to hit new records. It has already surpassed $1 billion.

Currently, nearly $1.2 billion worth of Bitcoin has been tokenized on the second-largest platform. At the beginning of 2020, only 1,110 BTC worth less than $7 million were tokenized.

Now, 108,240 BTC are tokenized on Ethereum, representing 0.51% of fully diluted BTC supply, as per Dune Analytics.

The biggest contributor to this is Wrapped Bitcoin (WBTC) that has minted 77,586 tokenized BTC since the project’s launch in early 2019. The largest tokenized bitcoin project represents over 71% of the total tokenized BTC supply at $825 million.

The second-largest tokenized bitcoin project, with dominance, is RenBTC, which has issued 20,766 BTC, worth $224 million, since May.

Other projects contributing to this success include HBTC (4,810 BTC), sBTC (3533 BTC), imBTC (1,408 BTC), and pBTC (136 BTC).

In the growing DeFi sector, which has yet again surged to $9.77 billion (TVL), WBTC is the 6th largest protocol with $827 million in deposits, grown from just $175 million at the beginning of August.

The yield framing mania in the decentralized finance world is driving this demand, and the same is the case for BTC, for which much of the demand is from over the counter. Interestingly, a whopping 70% of WBTC is being minted by FTX CEO Sam Bankman-Fried’s Alameda Research. The firm also lobbied for increasing the amount of collateral, from 0% to 40%, placed on WBTC to earn interest on the DeFi project Compound in July.

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Author: AnTy

Bitcoin Locked on Ethereum Explodes Higher while Lightning Network Value Unmoved

The number of Bitcoin locked on Ethereum continues to grow at a fast pace.

A total of 18,221 BTC are now locked in WBTC, which has its market cap reaching a new all-time high as well, in the north of $200 million.

An ERC20 token, Wrapped Bitcoin brings the value and liquidity of Bitcoin to the DeFi world. Here, one WBTC equals one BTC.

Being an Ethereum-based token, it is integrated into Ethereum smart contracts, wallets, and dapps. Also, the transfer of WBTC is faster than the usual bitcoin.

Launched in January 2019 as a collaborative project by Dharma, Compound, Kyber, Maker, Set Protocol, Ren, and BitGo, it is an attempt to bring more liquidity into the Ethereum network as the overall value of Bitcoin is much larger than Ether.

WBTC is used to borrow and lend on platforms like Compound or even for margin trading on the likes of Fulcrum dapp.

The growth of WBTC has eclipsed the layer two solutions on bitcoin, Lightning Network that makes payments on bitcoin faster and cheaper, whose network capacity is stuck under 1,000 BTC.

This growth happened just in the past three months when the market cap of both the Lightning Network and WBTC was at the same level only for the latter to grow by more than 1,600% during this time.

Recently, Blockstream released its major version of c-lightning, its implementation of the Lightning Network, dubbed “Rat Poison Squared on Steroids.”

This release comes with Multi-part payments (MPP) to improve LN’s user experience, making it easier to support fraud-fighting component Watchtower, and laid the groundwork for a tool that tracks “all” the coin movements of a user for tax purposes.

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Author: AnTy

Bakkt Bitcoin Physical Delivery at its Lowest in 2020 in Contrast to Trading Volume & OI

Bitcoin is immensely bullish with price making big splashes and the number of active bitcoin addresses (7-day average) surpassing 1 million, the largest addresses recorded since January 2018.

These active addresses jumped while the price of bitcoin is making its way back to $11,400 after it plunged to about $10,350 over the weekend within half an hour of hitting a new 2020 high of $12,112.

This volatility resulted in $1.1 billion worth of futures positions of over 70,000 traders getting liquidated across all exchanges on Sunday.

However, “despite the aforementioned volatility in the market, the futures curve was again seen following a contango term structure, indicating leverage interest, with the selloff likely used as an opportunity to re-establish longs at better levels,” said Denis Vinokourov of Bequant.

The price action in the bitcoin market is helping Intercontinental Exchange-backed Bakkt gain institutional investors’ interest back.

As we reported, last week, twice in a row, the platform made new all-time highs in trading volume.

On July 28, Bakkt bitcoin futures reached a new record high of 11,509 contracts, which was an increase of 85% from their last record-setting day. That day, the largest cryptocurrency broke above $11,000.

The next day, Bakkt broke into yet another new all-time high with 11,706 Bitcoin Futures, worth over $125 million.

Open interest on Bakkt has also made good progress, going from $3.7 million on July 16 to $24 million on July 31st, as per Skew.

In complete contrast to all the excitement trading volume and open interest is enjoying, the physical delivery of BTC, a facet that differentiates Bakkt from its counterparts, fell. The exchange had its lowest physical delivery in 2020.

“The amount of BTC futures contracts held to expiry crashed down 74% in July, to 58 BTC. This is the lowest amount held to expiry so far in 2020,” noted Arcane Research.

Just last month, Bakkt had the third-highest delivery at 221 BTC — 293 BTC in March and 230 in January are the two biggest months since its launch in September 2019. The only time with less than these futures contracts were held to expire was in the first three months, October, November, and December at 15, 17, and 8 BTC.

Meanwhile, bitcoin options remain a disappointment as for more than a month now, $0 has been traded in Bakkt bitcoin options, and the same is the case for its OI. Its competitor CME, however, recorded $60 million in bitcoin options on July 28th and $275 million in OI on July 30th.

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Author: AnTy

Crypto Market Is Dicey, The Bullish Golden Cross Is Very Likely a Non-Factor for Bitcoin

In May, Bitcoin flirted with $10,000 a number of times but it was never able to achieve it.

Now today, the world’s leading digital currency is down 3.25% and hovering around $9,085 while managing $2.4 billion in “real” volume. Even dipping below $9,000 for a few minutes. Tether meanwhile is seeing $2.64 billion worth of USDT exchanging hands.

btc price
Source: Coin360

With the market turning red, analyst Mati Greenspan has reduced his exposure in the crypto for now.

“Things getting a bit dicey in crypto markets and stocks. Lots of uncertainty,” he said.

In the US stock market, another 2.4 million Americans filed for unemployment last week. Oil prices meanwhile are at their highest since March on recovering demand and lower US inventories.

The US Senate also passed a bill to delist some Chinese companies including Alibaba and Baidu from American stock exchanges.

Insignificant…

Today’s red was first seen yesterday when a meager 40 BTC was moved from a wallet, not even to an exchange. What rattled the crypto community about this transfer was the speculation that this long-dormant wallet, since it was created in February 2009, could belong to pseudonymous bitcoin creator Satoshi Nakamoto.

Although there is no knowing if these some of the originally mined bitcoin were actually minted by Satoshi, as we reported it was likely they did not belong to him.

According to on-chain analyst Willy Woo, the movement of these coins is both bearish and bullish.

It is locally bearish because investors tend to sell near local macro tops and it wasn’t a “smart” choice.

However, old coins moving increases the realized cap of the bitcoin and the CVDD price floor model for valuation. One of the first on-chain metrics invented, Cumulative Value Days Destroyed (CVDD) called destruction is the coins moved * total times those coins were dormant.

“When old investors sell out of their sub $1 coins, it allows for the price floor to increase. New buyers capitulate at much higher prices,” as such bullish in long-term, said Woo.

Not enough…

The market sentiments are currently neutral but just like the post-2016 halving which saw Bitfinex crypto exchange hack and Etherem’s DAO hack, in 2020 we have experienced BlockFi data hack, BitMEX exchange’s system going down after getting hit with a major lawsuit (RICO), Satoshi moving his BTC FUD, and MSM dark web FUD following the halving last week.

The same as the last time, Bitcoin has taken a small step back.

Trader Credible Crypto expects ‘reclaimed support’ at 8,900-9,000 to be tested soon. But here, “bulls need to show up there if it happens,” which he expects they will.

As for the bullish golden cross, “The 50Day moving average may have just crossed above both the 100DMA and 200DMA. But at the same time, the 100DMA just cross below the 200 DMA.”

As such, this crossing of moving averages is “very likely a non-factor” for bitcoin, said crypto investor and trader Josh Rager.

Also, the last time the 50 DMA crossed above the 200 DMA, the market had an over 60% drop in price over the next month. However, this drop in February was caused by the black swan event – coronavirus.

This means, “a single indicator won’t prop up the market price.”

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Author: AnTy