GBTC has Greater Market Penetration than the Most Popular S&P 500 ETF

Last week, Bitcoin hit a new high on several cryptocurrency exchanges, but it has been stuck in a range since then.

At the time of writing, BTC/USD has been trading around $19,000 with $1.86 billion in trading volume.

However, the digital asset is still up over 167% run-up YTD and made an all-time high weekly close over the weekend.

As we have been reporting, unlike the retail-driven bull run of 2017, 2020 is looking more institutional driven where the financial industry is playing a bigger role.

“The multitude of regulated crypto exchanges and custodians has eliminated the ‘career risk’ for institutional investors,” PwC’s Hong Kong-based Global Crypto Leader Henri Arslanian said in an interview with Bloomberg.

“In 2017, there was retail FOMO. The question is whether we will see institutional FOMO in 2021.”

GBTC’s the Way to Go

According to JPMorgan Chase strategist, Grayscale Bitcoin Trust (GBTC) points to the institutional demand, taking the crypto market beyond millennials’ retail demand.

GBTC’s “exponential” growth, which has swollen to over $10 million from $2 billion in Dec. last year, suggests that institutional investors like family offices and asset managers played a bigger role in the recent rally, a team of JPM strategies led by Nikolaos Panigirtzoglou wrote in a note.

GBTC is currently trading at a 27.52% premium to the price of Bitcoin.

The firm saw about $720 million of inflows in the third quarter, 81% of which came from hedge funds. According to Michael Sonnenshein, managing director of Grayscale Investments, the size of investment allocations is also growing.

GBTC actually stands out as a market leader in terms of market penetration, as per TradeBlock. GBTC’s AUM is just shy of 3% of the total BTC market cap, which is much larger than other investment trusts and ETFs in different markets. GBTC is followed by the most popular S&P 500 ETF, SPY, at 1.25% market penetration.

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Last month, Guggenheim Partners reserved the right for its $5.3 billion fund to invest in Bitcoin via GBTC.

“Institutional investors are keen on portfolio construction in the wake of Covid, and the ways they need to reposition themselves given how governments have injected stimulus into the system,” said Sonnenshein.

Compared to $52 trillion funds managed by institutional investors, the Bitcoin market at $355 billion and the crypto market at $570 billion are still very small.

But as legendary investor Paul Tudor Jones himself said, because of this gap between Bitcoin and the market of equity, gold, and other assets, the digital asset has immense potential for growth and upside.

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Author: AnTy

Market Wrap: Bitcoin Never Going to Zero, Philanthropist Giving Away Money to Buy BTC

This week, the price of bitcoin moved, although it continues to trade in a tight range and is still hovering around $9,200 on low volume.

However, a report by Stack Funds says the digital asset’s extended bull flag continues with long-term narrative intact. Moreover, a shift in its investors’ demographics would propel the BTC price.

“As the millennial generation enters into the peak age of investment maturity, we believe this tech-savvy group would propel the significant shift in investors demographics, in turn, increases the propensity of bitcoin investments,” reads the report.

As per the report, half of the bitcoin investors are millennials, and the wealth transfer from boomers to millennials would put a buy pressure on the digital asset.

“In our conservations with investors, we noted that part of this buying pressure reflects parents from gen X and baby boomers who are looking to invest long term for their children’s future,” states the report.

Moreover, an increased interest has been seen in baby boomers and generation X, a finding also supported by another recent report.

Philanthropist Bill Pulte also believes “Bitcoin will be higher in the future” and, as such, has been giving away money to only buy bitcoin in CashApp (just like he did last year).

This week, bitcoin’s one-month correlation with SPX hit a new all-time high. The correlation has been turning more and more positive since late-June, a month which has been dull in terms of the trading volume.

On Kraken, volume dropped to a four-month low of $36.6 billion, while BTC price fell by 4.4%, the lowest since August 2019.

Bitcoin’s correlation with gold meanwhile dropped, which, according to Kraken’s report, means the digital asset is behaving more like a traditional financial asset and less like a safe-haven asset.

Back in March, following the global markets, bitcoin crashed to $3,800 and $3,600 on BitMEX. Many pointed out that time, how if the derivatives exchange hadn’t shut down, Bitcoin could very well have gone to 0.

This week, Alistaire Milne made a buy order of $18.63 million to buy all bitcoin at $0.01 to ensure BTC doesn’t go to zero.

Then yesterday, Adam Back, co-founder and CEO of Blockstream bid for 21 million BTC at 2 cents on Bitfinex exchange.

Bitcoin price might not be reaching an all-time high yet, but the network hashrate hit an all-time high this week. Meanwhile, altcoins are surely giving ‘new peaks’ a try.

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Author: AnTy

Bitcoin Price Dullness Reflects in Difficulty that Records its Lowest Drop Since 2010

For the past two months, the price of bitcoin has been stuck in a range of $8,500 and $10,000. The leading cryptocurrency has been boring for some weeks now, with ‘real’ volume at extremely low levels, going below $1 billion.

However, it’s not just bitcoin, most of the major asset prices have been dull as well.

“Most major asset prices (my emphasis is on EM) are currently within a fairly narrow range relative to their pre-COVID 12-month averages,” said Natalia Gurushina, an economist at VanEck. “There are two big exceptions: EMFX and Gold.”

Move BTC Move

Since yesterday, however, the digital asset has been recording slight gains, going to nearly $9,300 before dropping back down to almost $9k flat. Today’s earlier gains came along with US stocks which are extending their greens as jobs in the country increased by 4.8 million in June, higher than the estimated 2.9 million. This helped bring the unemployment rate down to 11.1%.

“Payrolls even managed to move this tired dog,” commented trader and economist Alex Kruger about bitcoin’s movement.

Still, Bitcoin had a “strong” quarter 2 with 42% returns and closed at $9,150, making it the third-best quarterly close in the digital asset’s short history.

This has been despite June being an extremely slow month for Bitcoin, ending the month about 8.5% lower. The last month, however, proved to be a good one for small-cap cryptocurrencies while large and mid-cap indices followed Bitcoin.

“The year started out incredibly strong, but the party came to a sudden halt as corona shook the markets. Despite the sharp corona sell-off, all indices sits comfortably in the green, with BTC being the worst performer at +27% YTD,” noted Arcane Research.

Ya Boring

It’s not only the price that is boring, but so is the mining difficulty. Amidst the low volatility, bitcoin difficulty posted its smallest percentage change in a decade, it was last seen in March 2010.

A mere 0.0033% drop saw the bitcoin mining difficulty going from 15.7847 trillion to 15.7842.

Bitcoin difficulty that measures how hard it is to mine bitcoin, adjusts every 2,016 blocks, roughly every two weeks based on the total computing power participating in the network.

Network hashrate meanwhile hovers around 100 Th/s since the beginning of last month. This slowdown in hashrate growth may continue, says bitcoin mining pool, F2Pool, because “many of the large hardware orders reported recently won’t deliver until late in the summer.”

“With a relatively stable BTC price, daily mining revenue per TH/s also sees little change. Each day you can earn around $0.075 per terahash for your contribution to secure the Bitcoin network,” stated F2Pool.

“With such little change in the past two weeks, it means every new-gen machine is profitable at both $0.03 and $0.05/kWh.”

It’s Moving!

Not the price but the network.

From price to network fundamentals all have been dull and boring for quite some time but the on-chain activity on bitcoin today brought some enthusiasm with it.

Hourly new bitcoin addresses hit a 2-year high and hourly active addresses 1-year high. Hourly transaction count also hit a 10-month high while hourly spent outputs with a lifespan 24 hours reached an all-time high, noted Rafael Schultze-Kraft CTO at Glassnode.

Bitcoin price, volume, and social activity might not be doing much but some network activities are showing promising growth, not to forget all the accumulation by the retail and increasing interest from institutions.

Also, trader Bob Loukas says, “The July bitcoin Cycle low is slowly coming into focus. Continued consolidation is very bullish action.”

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Author: AnTy

Capital Flowing Is Into Small-Caps and DeFi Space as Bitcoin Consolidates

The price of bitcoin consolidated in a narrow range last week but without any catalyst. Today, the leading cryptocurrency is recording some gains of 1.20% while trading above $9,450.

Volume is also extremely low across the board, while bitcoin futures having its slowest session since January, ‘real’ spot volume also dropped below $1 billion.

While the price has been relatively stable for some time now, altcoins are posting gains alongside DeFi tokens that have doubled their market capitalization.

This growth was led by Compound who was listed on Coinbase Pro last week and today the trading will go live.

COMP’s stellar performance had people chasing other DeFi tokens that resulted in Aave (LEN) surging 85% in the past week, Melon Protocol 78%, and Hydro Protocol 48%.

Today, the DeFi market cap has jumped past $6 billion, despite many of the tokens recording losses.

Interestingly, the total value locked in the decentralized finance sector has made a new all-time high today at $1.51 billion.

About this growth, analyst Wolf said, “ETH/BTC ready to drive BTC.dominance off a cliff.”

The amount of ETH locked in space has also reached 3 million, however, the peak was 3.2 million ETH on February 2, 2020. The amount of BTC locked in DeFi was at its ATH at 6.79k last week is currently around 5.8k BTC, as per DeFi Pulse.

Small Cap Coins Outperforming Large Caps

When it comes to altcoins, among the top 10 cryptos, ETH is recording the highest gains of just over 3%. Etherem’s popularity in 2020 is the result of not only the growing focus on DeFi but also Tether which is growing exponentially on the Ethereum network and there is much anticipation and accelerated efforts towards the transition from proof of work (PoW) to proof of stake (PoS). Skew noted,

“Stable coins and DeFi seems like a more sustainable product/market fit for Ethereum compared to ICOs in 2017 but the market doesn’t see it (yet?) necessarily as adding as much $ value for ether.”

Other altcoins generating profits are DigiByte (24.91%), Ontology (10.92%), OMG Network (10.14%), VeChain (10%), Chainlink (5%), and NEO (4.43%).

Small caps are, however, the ones shining, Acute Angle Cloud is up a whopping 3875%, as per Messari. Thrive Token (65%), Elysian (60%), Open Platform (43%), Martyx (34%), and others are among the small-cap coins recording substantial greens.

In 2020 so far, the small-cap index is up 42% while the large-cap index is up 28%. However, the challenge with small-cap coins is they are a lot less liquid and a lot more volatile. This means transactions costs are higher here.

Given that they have extremely low volume, they are easy to manipulate as well. While small caps outperform large cap coins, they also crash harder when markets fall.

“In traditional markets, such a dynamic would be most welcomed by the bulls, largely because it shows growing risk appetite,” said Denis Vinokourov of Bequant about small-cap assets outperform large cap ones. But small cap assets tend to be more volatile and less liquid. “As such, capital flow into such assets are seen as a sign of market confidence,” he said.

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Author: AnTy

Decentralized Finance (DeFi) Tokens are on Fire, Market Cap Surpasses $3.2 Billion

Bitcoin is stuck in a range but not altcoins.

This is the perfect time for altcoins to rally. The likes of Verge (XVG) (17.76%), Vechain (VET) (10.79%), Zilliqa (ZIL) (9.49%), and Cardano (ADA) (9.06%) are enjoying good gains today.

But among altcoins, it’s time for DeFi tokens to shine.

They have been surging throughout 2020, especially since March sell-off.

“As people are starting to realize, DeFi tokens are outperforming this year,” noted analyst Ceteris Paribus. “The sweet spot has been tokens with $10-30m market caps at the beginning of the year. This universe of tokens has increased their collective market caps by ~$700m in 2020.”

The market capitalization of DeFi has surpassed $3 billion, currently at $3,228,685,123, as per DeFi Market Cap.

DeFi tokens meanwhile continue to lead the market gains. Even last week, amidst the broker market rout, they recorded gains. Many tokens in this sector are posting upwards of 100% to 500% returns YTD.

Defi-on-fire

While some DeFi tokens are generating income in the form of a staking yield, others in the fee.

“Real investors in this space are flocking to these value assets while running from the non-productive “if you build it, they will come” legacy cryptocurrencies and protocols. And we believe that’s a good sign for long-term health and growth of this asset class,” said Jeff Dorman CIO at Arca.

Growing Sector

The sector basically represents those companies and projects that cut out rent-seeking middlemen in the new “open finance” ecosystem.

Today, the total value locked in decentralized finance (DeFi) has yet again surpassed $1 billion.

Although, this figure is nowhere near the traditional banking and brokerage sector, “it is nonetheless an impressive feat for DeFi to gain significant traction while the U.S. economy becomes more and more untrustworthy to the average citizen,” Dorman said.

In the past few weeks, some of the projects released significant upgrades. While Bancor announced a new upgrade to its protocol, Kyber Network has released its mainnet. Aave, which is quickly catching up on Compound, is seeing a surge in demand for popular stablecoin Tether (USDT).

Nexus Mutual, an insurance provider for Ethereum-based DeFi protocols has been seeing its risk pool doubling over the past two months.

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Author: AnTy

MONERO (XMR) Price Analysis (May 2)

Key Highlights

• XMR/USD market has been trading in a range formation around $60 and $70 price zones.
• A forceful rejection at a $70 mark may result in a drastic downturn of the crypto-trade.
• The bulls need to sustainably break northward past a $70 to solidify a bullish trend of XMR/USD trade.

Monero (XMR) Price Analysis

• Major supply zones: $80, $90, $100
• Major demand zones: $50, $40, $30

XMR/USD market values have been trading in a range formation around $60 and $70 price zones over a couple of days. Lately, the crypto-fiat pair traded below the $60 mark by featuring significant series of smaller ups than lows.

Noticeably, the crypto has made some attempts to break northward past a high value at the $70 mark but, it has not succeeded. And, now, price continues to move closer to the lower range zone. A downward breach of the lower range line will cause a drastic downturn in the crypto-economy.

Monero (XMR) Technical Indicators Reading

The 50-day SMA indicator is at a $50 major demand zone below the 14-day SMA trading indicator. Various small trading Japanese candlesticks are formed a bit above the trend-line of the smaller SMA indicator to signify an ongoing range price movement in XMR/USD market. The Stochastic Oscillators have over the time been moving around ranges of 80 and 60 in a consolidation mote to align with the range reading of the SMA indicators.

Conclusion

XMR/USD market will be pervaded by smaller ups in the next trading sessions. However, a breakout coupled with a quick retracement at a rejection point at $70 mark, may cause a selling pressure to the tune of a lower value of $40. Meanwhile, if the bulls eventually succeed in keeping above the $70 line, a higher price value than $80 will be achieved.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Bitcoin (BTC) Price Analysis (April 22)

Key Highlights

  • Bitcoin continues struggling to recover in a range formation of around $7,200 and $6,800 marks.
  • BTC/USD bulls now appear to be regaining momentum around the $6,800 lower range price line.
  • A bearish reversal of the pair’s price may potentially set the crypto’s uprise to the northbound.

Bitcoin (BTC) Price Analysis

• Major supply zones: $7,600, $8,000, $8,400
• Major demand zones: $6,400, $6,000, $5,600

The price worth of Bitcoin continues struggling to recover in a range formation of around $7,200 and $6,800 marks. The US dollar has continued lowering the crypto’s value from the upper range point to around the lower range line as earlier mentioned.

The BTC/USD bulls now appear to be regaining momentum around the $6,800 lower range price line. A break downward at that point will lead the crypto market to locate a sit around $6,400 demand zone. In the meantime, the price has been trading in the middle of range zones.

Bitcoin (BTC) Technical Indicators Reading

As at the time of writing, most of the trading indicators trend towards the east direction. The 50-day SMA has briefly crossed the Middle Bollinger Band to the south as they both point to the east. That signifies the pace at which the BTC/USD market ranges in its current price moves. The Stochastic Oscillators have touched range 20. They have crossed the hairs towards pointing to the north to signal an upswing.

Conclusion

Since April 16, after the emergence of a second 4-hour candlestick, BTC/USD market has been significantly moving in range zones. In a while, the crypto-trade may continue to keep on with the present trading trend until a couple of trading days’ sessions. Three key price points at $7,200, $6,800 and $6,400 are instrumental in determining the next definite direction of the BTC/USD trade. Meanwhile, a bearish reversal of the pair’s price from the immediate demand zone may potentially set the crypto’s uprise to the northbound.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Bitcoin (BTC) Price Analysis (February 26)

Key Highlights

  • BTC/USD market has fallen under selling pressure after a line of range movements.
  • One of the vital bearish restraining points at $9,000 has been breached downward.
  • If the BTC/USD market sellers continue to hold-strong below the $9,000, further declines are imminent.

Bitcoin (BTC) Price Analysis

• Major supply zones: $10,000, $10,500, $11,000
• Major demand zones: $8,000, $7,500, $7,000

Today’s BTC/USD market trading sessions have changed into seeing bearish pressures. And, that has led to having a new look of trading ranges marked by a difference of $500 in-betweens.

The BTC/USD market bulls have failed to restrain the bearish forces that resurfaced from February 14 until now. The US dollar continued to exert forces and broke down a strong value at $9,000 line that ought to have been the restraining zone. The price now closely approaches a lower point at $8,500.

Bitcoin (BTC) Technical Indicators Reading

There is still much to look from the BTC/USD downward-moving forces as the two trading SMAs point to the south direction. The 14-day SMA is underneath 50-day SMA. And, they are a bit far from the trading line of the crypto-market. That indicates that the market is still under selling pressure. The stochastic Oscillators have dipped into the oversold region with their hairs conjoined within. They may soon start a consolidation movement around or within the oversold region.

Conclusion

As the vital technical market value at $9,000 mark has breached southward, the BTC/USD market bears are in control of this crypto-economy. The price depression is on a high mote, and if the bears hold on to their positions below the $9,000 value, there’ll be every possibility of witnessing another lower point around the $8,000 demand zone.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Ripple (XRP) Price Analysis (February 19)

Key Highlights

  • The US dollar has now forced the XRP price value into a range trading condition.
  • The XRP/USD price now hovers around $0.30 and $0.28 zones.
  • The $0.30 value, again seen as a strong-line retarding free upward ride of the XRP/USD bulls.

Major supply zones: $0.32, $0.34, $0.36
Major demand zones: $0.26, $0.24, $0.22

Ripple (XRP) Price Analysis

After a notable downward price movement in the XRP/USD trade operations, the US dollar has now forced the crypto’s value into a range trading condition. The crypto fell from a high point at $0.34 down to around $0.28 price value.

During trading sessions on February 16, the pair averaged lower towards the major demand zone at a $0.26 mark. Currently, the pair’s value is trading in a range outlook around price zones at $0.30 and $0.28 points.

Ripple Technical Indicators Reading

There has been an interception of the bigger SMA trading indicator by the smaller SMA from the top. And, the 50-day SMA is of more trending flat over the 14-day SMA trading indicator as they both point towards the east direction.

Price also trades around a small space between them. Above all, all these are happening around range price zones of the $0.30 and $0.28 marks of the XRP/USD market.

Conclusion

The XRP/USD market bulls have to make every recuperating move against the bears. But, in the course of that, they have revisited a noted pressurizing point at $0.30. Hence, the reason for the current choppy price movements of the crypto-trade. The $0.30 value has lately observed as a strong-line retarding free upward ride of the bulls in this market. And, as at now, there is no profound indication that the bulls will be sustainably breakthrough it northwardly.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

OMISEGO Price Prediction Today: Daily (OMG) Value Forecast – July 31

OmiseGo Confirms the Acquisition by Thailand Company to be “False”
  • Most of the range market moves of the OMG/USD have featured under the sell signal line of the SMA trading indicator.
  • Traders are enjoined to exercise some degree of caution while placing an order.

OMG/USD Medium-term Trend: Ranging

  • Distribution territories: $1.80, $2, $2.20
  • Accumulation territories: $1.20, $1, $0.80

OMG/USD market territories between $1.60 and $1.40 marks have dominated by a variant of choppy price movements. Most of the range market moves have featured under the sell signal line of the SMA trading indicator.

About a day and several hours until the present, the Bollinger Bands have shrunk into the choppy spots. Like wisely, the 50-day SMA trading indicator has joined with the Bollinger Band at the upper end of range market. The Stochastic Oscillators have moved closer to range 75 with their hairs conjoined to signify the intensity of the on-going range movements.

There has been no tangible move to suggest a clear-cut direction of this market. And that could linger on to the next trading session.

OMG/USD Short-term Trend: Ranging

The OMG/USD short-term trend has been witnessing a more intense ranging price moves. The intensity of the ranging market has spanned from yesterday’s session into the present market trading condition.

All the trading indicators are within the ranges, as earlier mentioned in the paragraph above. The Bollinger Lower Band and the 50-day SMA are joined together in the choppy regions. The Stochastic Oscillators have crossed downwards from range 80 to range 40. And, they now attempt to close the hairs.

It appears the OMG/USD bulls are struggling around the present choppy spots. Traders are enjoined to exercise some degree of caution while placing an order.

OmiseGo:

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Azeez Mustapha