“Fear” in The Crypto Market And Bitcoin’s Correlation With S&P 500 Climbs to Highest Level of 2021

Crypto assets are not really having a good time, with Bitcoin stuck around $56,500 and Ether below $4,300.

But crypto assets are not alone in that as speculative stocks aren’t any different as losses picked up in very-high-priced technology names as the bond market started to price in higher odds of rate hikes next year following President Joe Biden picking Jerome Powell for a second term as the Federal Reserve chairman.

“The big-cap tech names have become synonymous with the risk-on/risk-off trade. When the big-cap tech names move in a significant way, other risk assets move in tandem,” said Matt Maley, chief market strategist for Miller Tabak + Co.

This has the 100-day correlation coefficient of Bitcoin and the S&P 500 climbing to 0.33, which is among the highest readings of the year.

image1

A coefficient of 1 shows a strong correlation, while minus-1 would show they’re moving in opposite directions. The current figure means when stocks move up, Bitcoin is likely to do the same, and vice versa.

“The recent drawdown in Bitcoin and the rest of the cryptocurrency ecosystem has been tied to the selloff in the more risky growth names,” Art Hogan, chief market strategist at National Securities. “So you’re seeing cryptocurrencies come off, and you’re seeing the high-flying growth names come down.”

The lack of bullishness in the crypto market, except for particular crypto-assets, has the market sentiments turning to “fear,” as per Crypto Fear & Greed Index.

While some may feel this might be the end of the crypto market, others believe this could be a sign of an extended cycle.

“It’s very possible “extended cycle” could partially play out. Bitcoin could top early January or whatever. ETH a bit later on. Alts in April and maybe DeFi even separately from other alts. Not everything must converge on one top point in time,” said popular crypto investor @bitcoinpanda69.

Currently, there are a few potential factors that are playing a part in the market weakness, including a shifting macro outlook and crypto market conditions.

Within crypto, as price drops, open interest for BTC and ETH, which is a proxy for leverage, has “started to decrease as pressure is placed on existing long positions,” as per Coin Metrics.

As for Bitcoin miners, who are natural BTC sellers, their selling pressure has been minimal and is trending lower. Moreover, they use OTC desks to minimize their impact on the price. Recently, miners have started to HODL their BTC mining rewards.

image2

On a macro front, with the US bond yields, especially with shorter-duration maturities, on a sharp rise over the last few weeks, capital might be reshuffling from riskier crypto assets to a “risk-free” rate of return.

Amidst all this, JPMorgan Chase CEO Jamie Dimon couldn’t help but poke at cryptocurrencies. “It is not really a currency,” Dimon said at the Boston College series of CEO interviews.

These “crypto tokens” have no intrinsic value and have rallied on speculation fueled by government stimulus payments, he said, adding, “It is hysteria.”

Read Original/a>
Author: AnTy

RBA Official Involved in Crypto Since 2014, Fed Governor Says Stablecoin Shouldn’t Be Subject To The Same Rules As Banks

UBS Group’s Chairman says “governments will not tolerate” crypto becoming really big as the Joint Economic Committee chairman urges Congress to pass legislation to regulate it.

Representative Don Beyer, who held a hearing on “demystifying crypto,” said Congress must pass legislation to regulate crypto assets before their rapid growth could pose dangers to investors and the financial system.

He also acknowledged that most lawmakers have a steep learning curve when it comes to crypto but said it’s vital they provide guidelines for regulators.

The Joint Economic Committee chairman said he’d be “thrilled” if a bill could be passed sometime next year.

“We are trying to get ahead of this,” Beyer said.

In other news, UBS Group AG’s Chairman Axel Weber said he is “skeptical” of crypto.

“I love the technology. I think the idea of having instantaneous transactions between a large number of people — fantastic,” said Weber at the Bloomberg New Economy Forum in Singapore.

However, the concept of anonymous payments “will not survive,” he said. The former central banker drew comparisons to governments phasing out big-denomination bank notes to avoid unidentifiable, large transactions.

“Governments will not tolerate this to become really big,” Weber said.

Stablecoins Needn’t Follow Same Rules As Banks

Meanwhile, Federal Reserve Board Governor Christopher Waller commented on stablecoins, calling for a stronger and supervisory framework but said they don’t need to be subject to the same rules as banks.

“The regulatory and supervisory framework for payment stablecoins should address the specific risks that these arrangements pose — directly, fully, and narrowly.”

“But it does not necessarily mean imposing the full banking rulebook, which is geared in part toward lending activities, not payments.”

Speaking at the virtual conference organized by the Cleveland Fed, Waller said he disagrees with the recommendations made by the President’s Working Group on Financial Markets earlier this month that called for stablecoin issuers’ regulation like banks.

The policymaker further said he is also okay with banks being able to issue stablecoins besides bank deposits but does not agree with the idea of only banks being allowed to issue stablecoins.

On the topic of a central bank digital currency (CBDC), the Fed official said that he is still skeptical of it because there is already “real and rapid innovation” happening in the payments space, so the government shouldn’t create a CBDC to bring down the cost of payments.

RBA Head Of Payments Policy Using Crypto

On Thursday, during an online conference, the Reserve Bank of Australia’s head of payments policy, Tony Richards, warned that the significant gains in the crypto market could be erased as trends change and regulatory and monetary developments happen.

He added that other factors that put their valuation under pressure include the lower influence of fads, association with financial crimes, and greater concern about the industry’s energy usage.

But he doesn’t see crypto as a threat to the Australian dollar or the country’s monetary sovereignty because they aren’t widely used.

“I can’t see shops posting their prices in cryptocurrencies or companies doing their annual reports in cryptocurrencies or lots of people wanting to get paid in cryptocurrencies,” he told the Australian Corporate Treasury Association.

And while a wide range of investors like hedge funds or households believe there is a significant role for crypto, “much of the official sector globally remains skeptical of developments in the cryptocurrency market,” he said.

Moreover, “it is unclear how widely held they are,” Richards said, noting some surveys claim 20% of the Australian population hold cryptos.

Richards also confessed that he has owned a crypto wallet since 2014, saying, “After all, part of my job is to try to understand new payment instruments and technologies.” The central bank official is retiring at the end of the year.

Read Original/a>
Author: AnTy

ECB Promises to Pump Money; IMF Praises Fed for Being ‘Highly Effective’ at Overshooting 2% Inflation

Amidst this, former BitMEX CEO talks about an investor’s ability to really outperform $4.72 trillion of money created out of thin air in 2021.

European Central Bank (ECB) keeps its monetary policy steady and will continue to be more accommodative for a more extended period.

The central bank has committed to purchasing 1.85 trillion euros ($2.2 trillion) of bonds until March 2022, and policymakers voted to keep this stimulus injection into the market going for the time being.

Interest rates were also left unchanged, with that on the primary deposit facility remaining at 0.5%, the benchmark refinancing rate at 0%, and the marginal lending facility at 0.25%.

Additionally, ECB said it wanted to see inflation stabilizing at 2% over the medium terms adding, this may also imply a transitory period where inflation is “moderately above target.”

Prices rose 1.9% this year to June in the 19-member euro bloc, down from 2% this year to May, which has the ECB expecting inflation to drop, forecasting a decrease of 1.5% – 1.4% in 2022 and 2023, respectively.

The central bank had changed its guidance “to underline our commitment to maintain a persistently accommodative monetary policy stance to meet our inflation target,” said ECB President Christine Lagarde.

“There is still a long way to go before the damage to the economy caused by the pandemic is offset.”

On Friday, ECB member Francois Villeroy de Galhau, who is also the governor of the Bank of France, said it was justified to keep an accommodative monetary policy for now.

Villeroy also said that the ECB sees the midpoint of its forecast horizon for a 2% inflation target coming in around 12-18 months in the eurozone.

Fed “Highly Effective”

As for the US, the Federal Reserve has started to talk about tapering, but Chair Jerome Powell has assured that it is “still a ways off,” and President Joe Biden gave the Fed his blessing to “take whatever steps necessary” to support a strong economy.

The International Monetary Fund’s Executive Board also commended the Fed for being “highly effective” at managing the COVID-l9 crisis and supporting recovery with its commitment to overshoot a 2% inflation target in the near term.

While raising concerns about higher interest rates that will drain capital flows from emerging markets, the board also said that the Fed must carefully communicate its thinking to ensure the eventual withdrawal of monetary accommodation. The IMF said this scaling back,

 “will require deft communications, under a potentially tight timeline, to avoid market misunderstandings, volatility in market pricing, and/or an unwarranted tightening in financial conditions.”

The Fund’s board also said that the US should prioritize spending towards programs that have the most significant impact on productivity and that more could be done to boost tax revenues.

“Don’t Get Shook.”

In 2021, a total of $4.72 trillion has been created out of thin air, collectively in the US, China, and EU. “If the quantum of money increases, it must go somewhere,” noted Arthur Hayes, former BitMEX CEO, in his latest write-up.

“The Fed has removed $1.4 trillion of the highest quality collateral from the system…Whatever anyone says about a taper in the future, in the present, asset managers must replace this collateral with higher risk stuff.”

The Fed’s balance sheet has expanded at a YoY pace of +22.74% and +13.21% YTD. ECB grew its balance sheet by +25.18% YoY, and YTD +13.34%, and China’s most recent 2Q21 YoY GDP print was +7.9% using an 11% growth in credit.

So, how does one outperform this? Bonds are certainly not the answer.

The US GDP forecast for 2021 is +6.60%, vs. the 10-Year bonds that yield 1.20%, equating to a rough negative real yield of -5.40%. In the “strongest Eurozone economy,” Germany, 2021 GDP is expected to print at 4.5%, with real yields approaching negative 5%.

Here, crypto comes as a clear winner, with Bitcoin up 10% YTD and Ethereum 182% and about 250% and 700% YoY, respectively.

“The data is clear – central banks continue to print money. When / if that changes, the data will show us. There is no need to predict when it stops if you own scarce assets that appreciate in fiat terms at least at the same pace of balance sheet expansion. On the past 6-month horizon, crypto underperformed, but from the onset of the COVID pandemic till today, crypto markedly outperformed as central bankers stepped on the gas. Don’t get shook.”

Read Original/a>
Author: AnTy

Janet Yellen and the Fed Will Continue to Push Bitcoin to New Highs in the Next 5 Years

US Treasury Secretary Steven Mnuchin hasn’t been really good for cryptocurrencies. As we reported, the Treasury said in a statement on Monday, “There is strong support across the G7 on the need to regulate digital currencies.”

The G7 finance officials discussed the responses to the evolving landscape of cryptocurrencies to prevent their use for “malign purposes and illicit activities,” Treasury said.

Just last month, Coinbase CEO Brian Armstrong said that Mnuchin is planning to “rush out some new regulation regarding self-hosted crypto wallets before the end of his term,” although exchange’s former employer Brian Brooks, the acting Comptroller of the Currency, said there is no plan on killing cryptos.

However, Munchin hasn’t much time left in his term with Janet Yellen chosen as the new Treasury Secretary by President-elect Joe Biden.

Yellen’s views on crypto aren’t positive; she has called Bitcoin a “highly speculative asset” in the past and expressed concerns about its volatility when she should have shown more concern about the decreasing value of the US dollar.

However, Yellen won’t be bearish for Bitcoin price rather the opposite, wrote Alex Mashinsky, founder & CEO of Celsius Network, in an article on Monday.

According to him, Yellen’s track record as an economist and a civil servant is unimpeachable, but her ability to manage the current economic crisis and mounting debt is something to be worried about.

MMT FIAT maximalists in the House

Coming from a long line of Keynesian believers in MMT, Yellen advocates for creating endless amounts for fiat to grow the economy, said Mashinksy.

The Fed has already been printing money like crazy, with over 20% of dollar supply created in 2020 alone.

“Joe Biden along with Janet Yellen and J-Pow are gonna drive the Dollar into the ground,” said analyst Mati Greenspan.

Mashinksy argues that MMT is a dangerous ideology that injects boatloads of cash into the market, pushing the asset prices up, which only benefits large corporations and billionaires.

Although Yellen’s appointment can lead to Bitcoin restrictions and regulating DeFi but the fact that Yellen and Biden Administration need to ensure that the US Dollar remains the reserve currency, it would involve “funding new businesses and technologies in future industries such as Blockchain, Machine Learning, and AI.”

Mashinsky said it is “overdue” for the Fed and Treasury to give up their old ways and start taking advantage of crypto.

“The FED and the White House will be filled with Keynesian MMT FIAT maximalists in 2021. This guarantees that Bitcoin continues to hit new highs during the 2021–2025,” he wrote.

Read Original/a>
Author: AnTy

Value DeFi Hacker Returns $2M, New Vaults Coming with ‘Maximum Security & Audit’

“Do you really know flash loans,” is what the hacker of yet another decentralized finance (DeFi) protocol has to say to the yield aggregating pool, Value DeFi. This cheeky message has been in response to Value DeFi’s tweet just a day before the hack claiming it has flash loan attack prevention.

In a “complex attack” on the MultiStables vault of ValueDeFi, the attacker stole roughly $6 million.

On Nov. 14th, at 03:36:30 PM UTC, the hacker performed a flash-loan exploit of 80k ETH on Aave, which involved borrowing 116 million DAI and 31 million USDT.

ValueDefi Hacker
Source: RektGhost

The attacker returned $2 million out of goodwill, including 50k of 100k from a victim who said she is a nurse and has lost all her savings in the hack. This was the hacker’s response:

image2

The Value DeFi team has since then halted deposits in the MultiStables Vaults and took a snapshot of the depositor balance for the compensation purpose. For this, a compensation fund will be created that will be funded by a combination of the dev fund, insurance fund, and a portion of the fees generated by the protocol.

The team is also proposing changes to the fee structure that involves increasing value performance fees to 20% and receipt from swap fees to 50%.

Future value releases will also remain on audited v1, and v2 will have them only after they are heavily audited.

“We are rolling out the new vaults for UNI LPs as promised, but with some structure changes to ensure maximum security. The new vaults will still use the same vault v1 code that has been running since September and currently under audits by PeckShield,” added the Value DeFi team.

There have been a number of hacks and thefts throughout 2020, just in the last month we have seen flash loans used in Axion Network, Akropolis Savings Pool, and BPROTOCOL.

Having fallen 11% after the attack, VALUE is currently trading at $2.09.

Read Original/a>
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.

image2

“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.

image1

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.

Read Original/a>
Author: AnTy

An Impressive Feat: Bitcoin Holds Strong at $10,000 Despite 3 Big Hits

2020 has been really good for the majority of the asset classes. But bitcoin hasn’t been able to achieve a more significant price level, still struggling to top 2019’s $13,900 price point.

The year started on a bullish note, only to experience one of its worst crashes in March. BTC recovered beautifully from that drop and started ranging between $9k and $10k during May and July.

In mid of August, we pumped, reaching a one-year high at the north of $12,500 only to get back to $10,000 in September.

And now, just a day in October, and things turned gloomy. Bitcoin first dropped $450 on the news of crypto derivatives platform BitMEX facing criminal charges. But the digital asset held strong.

Also Read: Here’s Why the BitMEX Criminal Charges Are ‘Bullish’ for Bitcoin’s Price & The Overall Market

This wasn’t even the first big event that hit BTC. A few days back, KuCoin suffered the third largest theft ever suffered by a cryptocurrency exchange. But the digital asset held strong to its most important psychological level.

BTC hit its longest-running streak of keeping above $10,000.

Bitcoin had started recovering from yesterday’s losses, going nearly to $10,700 when early Friday President Donald Trump announced that he and First lady Melania Trump had tested positive for Covid-19, soon after his closest aide, Hope Hicks fell ill with the coronavirus.

This came with barely one month left until the US presidential election, against Democrat Joe Biden that has focused heavily on Trump’s handling of the coronavirus. The development obviously makes it harder for the President to try to shift attention from the virus.

The market responded negatively to the news, with the US stock futures falling.

“Trump having COVID is most definitely bearish, as his odds of winning collapse. Expect downside continuation,” noted trader and economist Alex Kruger. “I think the higher odds are a) bullish Biden, b) bearish stocks short term, c) bearish dollar, and can easily be wrong in all three,” he added.

Bitcoin is currently trading around $10,550, while gold has jumped to $1,910 after sliding to $1,890. After strengthening above 94, the US dollar index fell victim to the situation and is back around 93.75.

Amidst weak price action, although an impressive feat in itself, the positive development for the flagship cryptocurrency is its active addresses currently being at an all-time high.

“This means that the 200-day rolling average of bitcoin addresses that move bitcoin to-and-from each other is the highest it’s been over the last decade,” states TokenDaily.

With no sharp rally to support this momentum and despite minimal mainstream adoption, these numbers indicate healthy, substantive growth in bitcoin.

More Reading: ‌A ‘Big’ Positive Step Towards the Bitcoin ETF Approval

Read Original/a>
Author: AnTy

Ethereum Miners Accumulating While Active Addresses Point to ‘Strong Price Rally’

Unlike Bitcoin, Ethereum has really made substantial gains in 2020, up 75% YTD compared to BTC’s 25%. Even after the March sell-off, Ether has been on an incline, rising 10.52% against BTC the past month. Currently, ETH/USD is trading at $226.

Just like the price, the number of non-zero addresses has been surging, but at a faster pace. Today, Ethereum non-zero addresses broke the previous ATH set just a day back to make a new high of 42,385,447, as per Glassnode.

These addresses have been growing since 2017, notwithstanding the price movement, which went through a bull market in 2017, a bear market in 2018, and now a mix of gains and losses before starting a new bull rally.

Just like retail investors, miners are busy accumulating ETH. In the past 20 days alone, they added 21,000 ETH, worth nearly $5 million, shared Spencer Noon, head of DTCCapital, a crypto-native investment fund.

This latest uptrend came after miners sold ETH in late May and then in early June following the digital asset’s price spiking above $220, “which coincided with the start of Ethereum’s consolidation phase.”

“The prolonged periods of miner accumulation can indicate fairly high confidence levels among ETH mining pools in relation to the asset’s short-term performance,” noted Noon.

A similar uptrend can be seen in the number of addresses interacting with ETH each day, which is being sent or received. In an uptrend for the past three months, it is now approaching the 2019 top.

Such a surge in Ethereum’s daily active addresses has previously coincided with a “strong price rally.” But because currently, Ether is in the weeks-long consolidation period, this may be a decoupling of price action from the network’s utilization.

But at the same time, previously dormant coins are once again moving between addresses as Ethereum’s token Age Consumed spiked at its highest level since February 2019. The spike is also higher than the one recorded on Black Thursday.

“Spikes in Token Age Consumed can sometimes signal changes in the behavior of certain long-term holders, and tend to precede increased volatility in the coin’s price action,” noted Santiment. This latest spike however is most likely due to the sudden movement of 789,534 $ETH (~$184,000,000) from the PlusToken Ponzi scheme.

Ethereum’s token velocity has also hit a 2-year high with the average amount of times active ETH tokens changed addresses spiking to 5.2 per day which might be prompted by the “yield hunting” on various DeFi protocols.

Lastly, as we have been reported, total gas used on the Ethereum blockchain made a new all-time high just as Ethereum miners are voting to increase the block gas limit by 25%. This growth is also due to an increase in the utility of DeFi projects Uniswap and Kyber network, which also ranks in the top 10 by gas usage in the past month.

Read Original/a>
Author: AnTy

XRP is Waking Up But Liquidity in All the Major Corridors Are Taking A Hit

The fourth-largest cryptocurrency XRP isn’t doing really well. Not only it is one of the worst-performing top coins of 2020 with over 6% negative returns but is still down more than 95% from its all-time high of $3.92.

But it might start picking up finally. Today, XRP has jumped nearly 4% and is currently trading at $0.185.

“Suddenly, the majors start waking up. LTC, EOS, and even XRP are showing great candles,” tweeted trader Crypto Michaël.

According to him, XRP needs to reclaim $0.195 for a test of $0.23 which should put it back above 100-day and 200-day MA.

“For this one; back to support,” he said adding “Similar to BTC pair -> needs to reclaim 2075 and then 2400 sats test likely.”

Adding pressure to the price is the 415 million XRP that is moved by the $2 billion PlusToken Ponzi scheme. Some of these XRP are also sent to exchanges viz. Huobi, OKEx, and HBTC.

Amidst this, XRP holders are partaking in some accumulation. Small to big XRP holders, all bought more XRP but the amount added has been relatively low.

As per the rich list, the top 100 accounts own over 69% of XRP in circulation at 35 billion.

Declining Liquidity Across the Board

XRP may be ready to move but its inaction for a long time has spilled onto its ODL indices. The liquidity index for Bitso, XRP/MXN, one of the most active corridors has fallen to its lowest numbers.

On June 1st, 2020, it hit its all-time high of 37.3 million which has declined to 2.3 million on June 25th, a new low for 2020.

The market liquidity here covers more than just trade volume and helps in assessing “net” liquidity provision.

The case is the same for all the other Liquidity Indexes.

Bitstamp XRP/EUR, has fallen to 7.3 million, last seen in March 2020, from the high of 35.7 million earlier this month. Coin.ph XRP/PHP climbed to 11.5 million in April and is currently at just 1 million, back to early January levels. XRP/AUD market tumbled to 992k, down from 16 million high last month, as per Liquidity Index Bot.

Read Original/a>
Author: AnTy

Bitcoin’s an Attractive Asset as a ‘Hedge Against Traditional Financial Markets’

  • Bitcoin holding $7,500 level would be a really bullish sign
  • Bitcoin seeing growth in active addresses indicating new investors in the market
  • With global markets seeing massive uncertainty and traditional safe-haven assets like oil plunging, “BTC is becoming a more attractive asset”

Yesterday, we saw the stock market rising despite another 4.4 million unemployment claims, though lowest in a month, the numbers were still higher than the highest level ever recorded before the coronavirus hit. Analyst Mati Greenspan in his daily newsletter Quantum Economics wrote,

“But that’s being discounted because it wasn’t as bad as analysts were predicting. I know we’d all like to see the glass as half full but at this point, it’s completely empty.”

The real reason behind stock rallying, however, is “an overwhelming helping hand from the Fed who continues to support the market with free money.”

Unlike the stock market that wiped its gains instantly after the news that Gilead’s failed antiviral drug, Bitcoin kept its gains and is currently trading around $7,500.

After trading in a tight range over the past few weeks, the digital asset has finally broken to the upside. With this pop, the $7,450 level that has been pretty significant over the last month and had been acting as a resistance level on the way up is now being tested as a level of support, now that we’re above it.

Even if BTC drops back down after the breakout, “it is still quite significant from a psychological standpoint, because it imprints a higher high. If support does hold though, it would be a really bullish sign,” said Greenspan.

Bitcoin Fundamentals Growing

Just like the price, on-chain fundamentals are showing a significant increase in the activity on the Bitcoin network.

Bitcoin-on-chain-fundamentals
Source: Glassnode – Bitcoin on-chain fundamentals (7D MA), 15- 22 April

This recovery has us at pre-crash levels which are to be expected due to upcoming halving and revival in widespread retail interest in the leading cryptocurrency.

Another uptrend is seen in the number of active entities that has reached its highest point since the bull run of July 2019. These Bitcoin active addresses excluding in-house transactions may indicate “new investors entering the market.”

glassnode-active-addresses
Source: Glassnode

Overall addresses holding BTC actually grew 24% in the past year, with those holding equal to or more than 0.01 BTC surging 18.5% and those holding 0.1 BTC or more rising 14.6%. Those addresses with a balance of 1 BTC and more also jumped 11.4% in the last year.

As we saw this week, global markets continue to see massive uncertainty and instability with traditional safe-haven assets like oil plummeting below zero for the first time.

This could be one of the reasons, “BTC is becoming a more attractive asset, acting as a hedge against traditional financial markets,” noted Glassnode.

CME bitcoin futures volume and open interest is also back to a month high after seeing a significant decline after the crash, unlike unregulated exchanges that recorded huge growth.

“~1500 contracts were rolled from April to May, ~1200 contracts remain open for expiry later today,” noted crypto data tracker Skew.

CME bitcoin futures volume & open interest
Source: Skew

We are currently heading into some good months of Bitcoin as April to June has always been a “strong period” since 2014. Also, Apr/May/Jun the top 3 median months are coinciding with the halving, ensuring increased scarcity in a world where the money supply of fiat currencies is drastically increasing holds a promise for positive action ahead.

Read Original/a>
Author: AnTy