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

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

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

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

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

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

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

“Merely A Psychological Resistance”

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

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

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

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

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

What’s Happening in Futures?

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

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

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

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Source: Arcane Research

Macro is Bullish Too

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

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

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

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Author: AnTy

Brazil Approves the First Bitcoin ETF (QBTC 11) of Latin America

The ETF can launch on the Sao Paulo stock exchange under the ticker QBTC 11 by June. The company executive believes this approval could “increase” the pressure for a Bitcoin ETF in the U.S.

Brazil’s Securities and Exchange Commission (SEC) has approved the first Bitcoin exchange-traded fund (ETF) of Latin America.

Launched by QR Asset Management, manager of the QR Capital group, the Bitcoin ETF is expected to be listed on B3, the main stock exchange of the region’s largest economy. It is expected to be listed under the ticker symbol QBTC 11 on the Sao Paulo stock exchange by June.

The ETF aims to offer qualified investors exposure to Bitcoin, which has seen the “highest appreciation of the decade” in an easy and secure manner.

The executives say the crypto asset can be an alternative for portfolio diversification for multimarket funds and has attracted interest from family offices and so-called professional investors.

QBTC11 has become the fourth Bitcoin ETF after the launch of three Bitcoin ETFs — Purpose Bitcoin ETF, Evolve Bitcoin ETF, and CI Galaxy Bitcoin ETF, in Canada in recent weeks.

This latest Bitcoin ETF approval, the company executives believe, could “speed up” the approval of one in the US as well.

The SEC commissioner, Hester Pierce, said this week in an interview that the agency has “dug ourselves into a little bit of a hole” by refusing to approve a bitcoin ETF.

As we reported, SEC is actually officially on the clock on VanEck’s Bitcoin ETF, while Anthony Scaramucci’s SkyBridge has also filed for a Bitcoin ETF. Other applications pending the SEC’s review are from WisdomTree Investments, VanEck Associates Corp., NYDIG Asset Management, and Valkyrie Digital Assets.

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Author: AnTy

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

Australian Crypto Payments Service Provider, Banxa, Set to Go Public in Canada

Banxa, an Australian based fiat-crypto payments service provider, is set to list on the Canadian Stock Exchange this December. The shares of this crypto startup will begin trading on the Canadian VC marketplace dubbed ‘TSX Venture Exchange,’ an ecosystem run by TMX Group, which is also in charge of the Toronto Stock Exchange.

According to the initial reporting by a local Financial Review Street talk section, Banxa will be listed on TSX Venture Exchange with an estimated market cap of $50 million. Notably, the firm had already received a green light from Canadian authorities to debut within this jurisdiction. Banxa touted the listing as the first of its kind for a crypto payments provider. Domenic Carosa, the founder and Chairman of Banxa, informed the publication that,

“Our TSX listing will make Banxa the first crypto Payment Service Provider (PSP) to be listed in the world, bringing well-needed transparency and governance to the crypto sector.”

The Aussie crypto startup has been operational for around six years and now enjoys the backing of heavyweights, including OKGroup, Alium Capital, and Alex Waislitz’s Thorney. Some of its clients include prominent exchanges and digital wallet providers like Shapeshift, Abra, Kucoin, OKEx, and Binance. Banxa has raised around $5 million pre-IPO, holding its series A funding earlier in the year.

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Author: Edwin Munyui

Grayscale to Split ETHE Shares 9 for 1 In Its Ethereum Trust ($1.6B AUM) On Dec. 17

  • Digital Currency Group’s Grayscale Investments announced a 9-to-1 share stock split on its Grayscale Ethereum Trust shares (ETHE).
  • This aims to boost investors’ liquidity and participation as the shares become more affordable for retail investors.

In an announcement on Wednesday, Grayscale Investments plans to add eight ETHE shares to each ETHE share held on the exchange. The Grayscale Ethereum Trust share stock split will be effected on December 17th on registered users’ shares at the close of business on Monday, December 14th. No action is required from the users to receive the split shares, “and they will not be required to surrender or exchange their shares in the Trust,” the statement reads.

Grayscale’s Ethereum Trust Fund closely resembles an Ethereum ETF allowing investors to gain exposure to the cryptocurrency. The fund is listed on the stock market with a share representing a fraction of ETH (plus a hefty premium in management fees) bought using the pooled investor’s cash and held in Grayscale’s vaults.

Currently, Grayscale’s ETHE fund has a total of 29.5 million issued and outstanding shares, with each share representing 0.09284789 ETH in the pool. Following the share split on Dec. 17, one share’s total value will represent the ownership of 0.01031643 ETH, as the total number of issued and outstanding shares grows to 265.5 million Grayscale ETHE shares. This means that the total allocated value will not change once the stock split is complete.

According to the statement, one of the biggest reasons motivating the stock split is to make the share more affordable to retail investors. In 2020, the Grayscale Ethereum Trust share price has skyrocketed from $60 to $110 as the price of ETH reached a three year high of $635. This shows that a continued rise in ETH price could make it too expensive for retail investors to buy the share.

Grayscale has posted a successful year so far, growing their Bitcoin holdings to over 500,000 BTC, holding 2.7% of the total BTC supply.

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Author: Lujan Odera

Ant Group’s Record-Setting IPO Suspended in Hong Kong and Shanghai Over Regulatory Concern

The stock exchanges of Hong Kong and Shanghai announced on Tuesday that Ant Group’s much anticipated initial public offering (IPO), which would have been the largest stock sale at US$39.67 billion, was suspended less than 48 hours before the start of trading over regulatory concerns.

Just last month, co-founder Jack Ma talked about digital currencies being the future as he said the current system needs to be reformed, “one for the next generation and young people.”

Ma also criticized China’s financial regulator, saying the current regulatory system stifles innovation as he called for a revamp, which may have played a role in this suspension.

Earlier this week, Ant Group’s senior executives, including Ma, had a meeting with China’s top financial regulators and central bank officials that led to a “significant change” to Ant’s business environment.

According to Ant Group’s statement to the two stocks exchanges, the fintech company did not fulfill the listing requirement or disclosure rules. As such, the trading debut was postponed.

Retail investors who applied for the IPO, which was oversubscribed 389 times, will get a refund in two batches, reported South China Morning Post.

About 1.55 million small investors in Hong Kong contributed HK$1.3 trillion ($167.7 billion) into the highly awaited IPO offering, making it the highest amount to be refunded in history.

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Author: AnTy

Last Obstacle: Bitcoin Price Near its ‘Loftiest Point’ Since January 2018

While the stock market continues to feel the heat of the elections, the bitcoin market is enjoying a red-hot rally. Analyst Mati Greenspan in his daily newsletter Qutamm Economics wrote,

“This sort of bullish action at a time when stocks are showing increased volatility only adds to the narrative that bitcoin can be seen as a safe haven to hedge increasingly larger portfolios.”

With the latest upwards move, the digital currency was on its way to break the 2019 high of $13,900, just millimeters away from its “loftiest point” since January 2018, before tumbling about 4% to just under $13k.

Last night, bitcoin’s price went nearly to $14,000, a level the market loudly believes is the only resistance to the $20,000 all-time high. Greenspan said,

“Note that between the levels of $14,000 and $20,000, there is insufficient price data to single out any specific points of resistance. Yes, there’s still a possibility of a large retracement. $14,000 is a large point of resistance, and we’re still watching that upward channel.”

Seen as the “last boss” before hitting the peak, it’s not to say there won’t be any hiccups along the way, which quant trader Qiao Wang believes “will be buying opportunities for those don’t own enough yet.”

Today, BTC price retraced under $13,000, up about 90% YTD while managing the ‘real’ trading volume of over $ 3 billion. In October, the leading digital currency had increased by almost 30% in value.

With this latest retracement, already BTCs are happening with NFL athlete Russell Okung jumping right on that.

Supply-side liquidity crisis to blow it up

In the past few days, the news of PayPal allowing its customers access to cryptocurrencies, Singapore’s biggest bank DBS soft launching its fiat-to-crypto exchange, and JPMorgan’s JPM Coin making its first payment since announcing its development in 2019 is leading to increased interest from institutions. As Nic Carter of Coin Metrics told Bloomberg,

“This rally seems to be more driven by allocators with larger balances getting involved, rather than a flurry of retail investors.”

Not to mention Fidelity Investments launching a Bitcoin fund, Square making a $50 million investment in the digital currency, and MicroStrategy making it a part of its Treasury.

“It seems that there is more excitement and that crypto will be used more often,” said Edward Moya, a senior market analyst at Oanda Corp. “The world seems poised for a digital currency.”

In the short-term with the US Presidential election next week, volatility is expected. Things are expected to get “very noisy” not only because of high odds of a contested election but with Europe in the process of lockdown as well.

Still, it won’t take BTC long to burst through $14,000, as it is known for its explosive moves. Sven Henrich, the founder of NorthmanTrader, is also targeting $17,000 per coin. Jake Chervinksy, General Counsel at Compound Finance, noted,

“Bloomberg analysts think BTC might hit $14,000 by . . . the end of the year? That long? Try next week. After all this time, legacy finance types still have no sense of BTC’s face-melting volatility. The coming “supply-side liquidity crisis” will blow them all away.”

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Author: AnTy

Bitcoin Crashes Below $10,000, Is The ‘Altcoin & DeFi Apocalypse’ Over Yet?

While the stock market is closed today, recognizing Labor Day, the crypto market is bleeding.

For now, in another red day to mark the start of a new week, cryptocurrencies had a repeat performance. Much like last week, bitcoin dropped below $10,000 to as low as $9,880 on Bitstamp, albeit briefly.

The ‘real’ trading volume meanwhile remains weak at just $1.4 billion.

“One more flush before a bounce seems likely. Stocks probably go up tomorrow. Corn could rally with it,” said one trader.

However, if we look back at the last bull cycle, the average correction is 35%. Given the fact BTC has only retraced 20% so far, another drop could see us below $8,000.

Meanwhile, Bitcoin’s Spent Output Profit Ratio (SOPR), which highlights when the average stakeholder is in a state of profit or loss, dipped below 1 for the first time since April. Currently, it is hovering right at the neutral line. Rafael Schultze-Kraft CTO at crypto data provider Glassnode noted,

“This means bitcoins moved on-chain at a (small) loss, potentially shaking out some weak hands. Imo it is very crucial to hold this level here so a bearish trend reversal doesn’t get confirmed.”

Ether Crashes Hard

While bitcoin is at the precipice, Ether is getting beaten hard. The second-largest cryptocurrency lost nearly 35% of its value last week to drop to $320. Currently, ETH/USD is around $335. Analyst Rekt Capital said,

“Indeed the $360 has switched into a resistance, offering lower prices. Price breaks back into the $160-$360 range. Very low $300s is a real possibility going forward. $290 would be perfect.”

The spark plug for these losses was a decline of 6.1% in the Ether balance on top 100 exchanges, from 16.92 million to 15.89 million over the past week.

Last week, before crashing, ETH price jumped to a new 2020 high last seen in June 2018, which led to an increase in this exchange’s balance as investors and traders took off some profits.

The good thing is, despite the drop in price, the Ethereum network keeps on growing, with the number of addresses with a balance in ETH hitting a new all-time high on the weekend at 45.88 million addresses, as per data source IntoTheBlock.

This means people are buying the dips. These addresses have increased by 34.8% since the beginning of 2020.

The silver lining to this plunge in ETH price is “DeFi will yet again benefit from the temporary collapse in Ethereum gas fees, and the vicious loop of chasing higher yield will resume yet again until the pressure cooker can no longer hold,” said Denis Vinokourov of Bequant.

DeFi Going Back to Greens

A crash in Ether prices is not good news for altcoins, especially DeFi tokens.

However, unlike last week’s 10% to 20% losses, the altcoins are down 2% to 10% today. Among the top altcoins, LINK with 3.70% gains and BSV 5.97% are the only exceptions.

As for the DeFi tokens, in the past hour, they all have turned green fast with CRV, SRM, and JUST up 8%.

But in the past 24 hours, SNX and CRV are down over 11%, RUNE 9.4%, SRM 9.3%, YFI 8.5%, KAVA 8.1%, BAND 7.2%, REN 6.6%, LRC 5.1%, KNC 4.7%, LEND 3.1%, COMP 1.7%, AMPL 1.4%, and WBTC 1%.

The biggest loser in the past seven days has been Ampleforth, which lost over 63% of its value with other notable mentions, including Melon (50%), Bancor (47%), and Curve (46%), as per CoinGecko.

As a result, the total value locked in the DeFi sector also dropped by 21% to $7.5 billion.

While more losses could be in order, depending on Bitcoin’s next move, which itself is waiting for the stock market, trader and economist Alex Kruger says the “alts apocalypse” the market experienced “won’t happen again even if BTC were to go down.”

Alts apocalypse was the leading digital currency losing 5% of its value resulting in alts crashing 20-50%, which was “extraordinary” because “Multiplier is usually in the 1.5-3x, not 4-10x.”

“Feel confident alts bottomed. BTC may flirt again with 9Ks. But alts bottomed. What the market saw yesterday was total obliteration. Strong hands remained, weak hands folded,” said Kruger.

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Author: AnTy

Switzerland’s Six Stock Exchange Lists FiCAS Actively Managed Bitcoin ETP (BTCA)

Switzerland’s leading stock exchange, SIX, is listing an active crypto exchange-traded product (ETP) in a move that will increase digital asset exposure in the Zurich headquartered market. This new product will go by index ‘BTCA’ which derives from its full name, Bitcoin Capital Active ETP. Notably, the BTCA ETP will be issued by Bitcoin Capital AG while FiCAS, the Swiss-domiciled crypto investment firm, acts as the manager.

Ideally, this crypto ETP is meant to create more portfolio balancing positions in a world where digital assets account for over $300 billion in market cap as of press time. Built to be regulatory compliant, the BTCA ETP will expose investors to the top 15 digital assets, giving them an opportunity to actively rebalance their pool and exit positions through fiat.

Consequently, product managers will be able to execute these moves by exchanging BTC for other digital currencies including TRX, XTZ, LTC, EOS, BCH, XRP, and ETH. The main exit fiat currencies will be the U.S dollar, Euro, and Swiss Franc.

The BTCA ETP has been touted to be particularly different since it is not pegged on a single asset’s movement or basket of crypto indexes. Instead, this crypto-based ETP comprises of the digital assets highlighted above and can, therefore, be actively managed based on market fundamentals and technical price action. Some of the fundamental factors that FiCAS noted it would pay attention to are investor sentiment and issues such as a token’s liquidity or the value an underlying blockchain.

As for the technical price action, Ali Mizani Oskui, the founder of FiCAS, is confident of a trusted strategy that he has beaten the market since 2013,

“Personally, I have built my expertise in crypto trading since 2013, with a strong track record in outperforming the market. I look forward to bringing my trading experience to global and institutional markets with this pioneering product.”

This latest crypto-based listing on Six stock exchange adds to the likes of the Wisdom Tree Bitcoin ETP which launched back in December. Switzerland has generally been very progressive in the crypto space, making it an attractive destination for Security Token Offerings (STO’) and now crypto ETP’s are gradually following pace.

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Author: Edwin Munyui

This Stock Puts Crypto Pump to Shame; From All-Time Low to All-Time High

Crypto pumps have nothing on this stock, which makes sense, given that President Donald Trump himself is the one behind the pump.

This stock is none other than Kodak; that’s right; the same company that once jumped the blockchain train has now found another driver to pump its shares.

KODK shares are witnessing an enormous rally that seems to have no end in sight. Its shares started rising after the Trump administration announced the company would be transformed into a pharmaceutical producer under the Defense Production Act.

Trump announced on Tuesday that the company would receive a $765 million loan to launch Kodak Pharmaceuticals, which will generate key generic medicines to fight the coronavirus and reduce America’s dependence on foreign drug makers.

In response, the company’s share skyrocketed, up more than 2,440% this week, that sent its market valuation to nearly $2 billion. During this uptrend, it triggered at least six halts for volatility.

Once a giant producer of film and cameras, the company filed for bankruptcy in 2012 only to emerge as a restructured business the very next year and has now pivoted itself to a materials and chemicals company.

Kodak CEO Jim Continenza said they already manufacture key materials for some pharmaceuticals and would take three to three and a half years to build out the new production capacity. For this, the company would hire 359 workers, most in New York state, and create about 1,200 indirect jobs.

“KODAK just went from All-time Lows to All-time Highs in just a few days,” said trader Mr. Anderson, adding, the chart of KODAK shares is of the kind that “every RIPPLE fanboy will pin their hopes and dreams on.”

Crypto market has been enjoying a rally for months now. However, this altcoin season has slowed down since Bitcoin hit the psychological importance level of $10,000.

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Author: AnTy