ProShares Bitcoin Futures ETF Coming on Tuesday, Grayscale Confirms Filing to Convert GBTC into ETF

In anticipation of the first Bitcoin ETF, which will finally be coming to the US this week, Bitcoin hit $63,000.

ProShares will be launching its exchange-traded fund (ETF) linked to CME-based Bitcoin futures on the New York Stock Exchange (NYSE) under the ticker ‘BITO’ on Tuesday, the firm and the exchange have reported.

“2021 will be remembered for this milestone,” Michael Sapir, the CEO of ProShares, told DealBook.

Investors who want exposure to the leading cryptocurrency but don’t want to hold it directly and are hesitant to engage with unregulated crypto exchanges will now have “convenient access to Bitcoin in a wrapper that has market integrity,” he said.

In a statement on Monday, Sapir further said, “a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF,” and finally BITO will provide access to Bitcoin to this large segment of investors who have a brokerage account and are familiar and comfortable with buying stocks and ETFs but don’t want to go through the hassle for establishing another account with a crypto provider and be subject to security risks.

“This will be a floodgate of new capital and new people into the space,” said Ian Balina, CEO of the data and analytics firm Token Metrics.

Approval for the ProShares ETF, which is based on Bitcoin futures trading on the CME, won’t be announced by the US Securities and Exchange Commission (SEC), but the firm’s formal prospectus has met with no opposition ahead of its effective deadline, which means it is good to go. NYSE is also readying its launch for tomorrow.

“This is an exciting step but not the last,” said Douglas Yones, the NYSE’s head of exchange-traded products. He foresees a range of crypto-linked ETFs getting approval, eventually.

Currently, nine other ETF applications for Bitcoin Futures are awaiting approval, while many more for physically-backed ETFs.

Future ETFs will come with its own costs, though, as it adds 5% to 10% of annualized roll yield on top of the underlying asset’s price. Not to mention, they are “also more confusing,” said Matt Hougan, chief investment officer at Bitwise Asset Management, which has also filed for a Bitcoin futures ETF with the SEC.

“They have challenges like position limit and official dilution, and they can’t get 100% exposure to the futures market.”

Interestingly, Grayscale also announced that it is filing to have its $38 billion Grayscale Bitcoin Trust converted into an ETF on Monday. GBTC is still trading at over a 15% discount.

“It is official,” confirmed Barry Silbert, founder, and CEO of Digital Currency Group, the parent company of the largest digital asset manager Grayscale Investments.

While calling Bitcoin Futures ETF launch a “historic and important moment” for Bitcoin and the entire crypto ecosystem, Jennifer Rosenthal, Communication Director at Grayscale, said,

“I’m happy to confirm that Grayscale *WILL* file for GBTC to be converted into an ETF as soon as there’s a clear, formal indication from the SEC.”

The official and verifiable evidence of SEC’s comfort with the underlying Bitcoin market could likely be in the form of a Bitcoin Futures ETF being deemed effective, and once that happens, “the NYSE Arca will file a document called the 19b-4 to convert GBTC into an ETF,” she added.

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Author: AnTy

Bullish Week: Overwhelming Bitcoin Buying Sends OI to May Level while Net Dollar Longs Surging

The bullish start of October continues this week as the price of Bitcoin went from $48,250 to as high as $56,645 on Friday. As of writing, BTC/USD is hovering around $55k.

With this latest pump in price, Bitcoin has yet again become a trillion-dollar asset class.

According to Chainalysis, ever since Bitcoin hit it’s low late in July, those holding at least 1k BTC have increased their holdings by 172k BTC. Meanwhile, institutional traders have acquired an additional 68k BTC.

Much like the leading cryptocurrency, Ether moved in tandem to start the week at $3,400 to hit $3,675 and is now trading around $ 3565. The overall crypto market cap also grew by more than 9.5% to above $2.4 trillion.

This past week, the biggest gainer in the crypto market has been SHIB which is up by 232%. Other big gainers include FTM (44%), ONE (37%), OHM (25%), BTT (21%), XRP (18%), DCR (16%), AXS 16%), and EOS (15%).

Q4 is looking primed for a significant price-performance with it being historically a bullish quarter combined with the possible upcoming approvals for BTC ETFs in the US, the stabilization of the Evergrande situation, and traditional giants like Soros Fund Management turning crypto-positive.

Institutional Demand

Despite the 14% uptrend in Bitcoin price, the funding rate is still not heavy, with the highest currently on OKEx at 0.0453%, as per Bybt.

Open Interest is also surging, having climbed to $19.15 billion, a level last seen in early May. In just over ten days, the OI has increased by about $6 billion. As reported, CME is particularly enjoying a heightened activity with OI on Bitcoin contracts sitting at $3.12 billion, the same as FTX and just behind Binance at $4.35 billion, as per Skew.

On Sept. 29, OI on the regulated platform CME was $1.47 billion. For Ether contracts, OI on CME currently at $830 mln is reaching for early Sept. ATH of $860.75 mln — but ranks at 6th place.

This significant increase in OI suggests “institutional demand has been the underlying driver of this move higher,” according to QCP Capital. Additionally, the “unusually large premium on CME indicates an overwhelming amount of outright buying.”

Premium on CME futures has been highest among the major exchanges when typically it is compressed due to the cash-and-carry spread trades that institutional players like to put on — buy spot vs. sell CME future.

This week, Senator Cynthia Lummis R-Wyo. also disclosed buying between $50,001 to $100,000 worth of BTC in mid-August, according to a filing. This, however, isn’t her first Bitcoin purchase, as she first bought it in 2013. She also disclosed buying Bitcoin worth between $100k-$250k in April this year.

Dollar Longs at 2-Year High

While crypto is euphoric, S&P 500 is merely up 2.14% this month and 17.14% YTD compared to Bitcoin’s 90% uptrend in 2021 so far. Gold is also green this month by 1.60% but still down by 7.27% year to date.

When it comes to the US dollar index, it is up 0.56% and 2.74% in this month and year, respectively.

US dollar net longs meanwhile have surged to their highest level in over two years. In the week ended Oct. 5, the value of the net long dollar position jumped to $22.89 billion, versus $16.37 billion in the previous week.

Traders are net-long on US dollar for 12 straight weeks after being short for 16 months, thanks to the Federal Reserve suggesting a possible tapering of its asset purchases starting November this year.

However, before the weekend, the dollar pushed back after data showed US non-farm payrolls increased by just 194,000 jobs last month, compared to the expected 500,000 new jobs.

“U.S. inflation data released next Wednesday may add to evidence that inflationary pressures are proving less ‘transitory’ than generally anticipated,” wrote Jonathan Petersen, markets economist at Capital Economics.

“Our view remains that this will push U.S. yields and the dollar a bit higher in the coming months.”

Bitcoin net shorts meanwhile increased to 1,518 contracts — largest since late July — from 883 the previous week.

Developing Countries Leading In Adoption

El Salvador, which continues to see growing bitcoin adoption, is now planning to invest some of the $4 million gains obtained from its Bitcoin operations to build a veterinary hospital, President Nayib Bukele said this week.

The Bitcoin Trust, which was authorized by Congress in August to facilitate BTC and USD transfers, now has a “surplus” of $4 million to its original balance of $150 million, said Bukele.

“So we decided to invest a part of that money in this: a veterinary hospital for our furry friends,” Bukele wrote on Twitter. The veterinary hospital would provide basic and emergency care services along with rehabilitation, he added.

Earlier last week, El Salvador became the world’s first nation to adopt Bitcoin as legal tender. According to BitMEX CEO Alex Hoeptner, Salvador is just the first one as he predicts at least five countries accepting the cryptocurrency as legal tender by the end of next year and all of them will be developing countries.

“Faced with an inherently unequal financial system, those who have the most to lose by continuing the status quo are acting in their self-interest to explore alternative options like Bitcoin.”

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Author: AnTy

Verifone and BItPay Partnership to Aid Crypto Adoption Among US Merchants

Earlier this week, Verifone – one of the world’s largest point-of-sale(POS) payment service providers – announced a partnership with crypto payment processor BitPay to bring cryptocurrency transactions to businesses, per an official press release.

Crypto Payments for Wherever You Are

The release confirmed that this partnership would ramp up cryptocurrency payments at in-store locations and via online cloud services for e-commerce businesses all across the United States.

Verifone has over 600,000 customers in the United States and processes upwards of $10 billion in annual transaction volumes. The company plans to roll out the crypto payment feature later this year, possibly increasing its user base even more.

Speaking with news sources, Verifone chief executive Mike Pulli explained that the company had been seeking alternative payment channels for a while now. They’ve come to recognize the increased demand that cryptocurrencies have gotten as well, and this seems like a perfect time to venture into the crypto space.

Jeremy Belostock, the company’s head of payments, also explained that the coronavirus pandemic had accelerated the move to mobile payments for many people. This means an increased demand for cryptocurrencies, hence the company’s need to push forward.

The Verifone partnership is the largest for BitPay to date. So far, the company has established itself as the largest payment processor for cryptocurrencies, and it has had some impressive milestones this year.

Earlier this month, BitPay partnered with e-commerce company to allow crypto payments. Thanks to the partnership,’s customers will now be able to make payments for their purchases using seven digital assets and five stablecoins.

Crypto’s Continued Entry Into Payments

Besides ease of use and access, large payment companies have also been moving more into the crypto space as they look to increase their platforms’ security. For instance, this month saw the bombshell acquisition of crypto analytics and tracking platform CipherTrace by credit card manufacturer Mastercard.

As an official announcement pointed out, Mastercard confirmed that it plans to integrate CipherTrace’s operations into its cybersecurity solutions for cryptocurrencies. The two companies will combine their cyber capabilities and tools to improve Mastercard’s real-time payments and card infrastructure.

Amongst other things, Mastercard executives explained that the CipherTrace acquisition would help ensure that their clients can spend cryptocurrencies easily while maintaining regulatory safety standards.

The move is part of Mastercard’s plan to establish a much broader presence in the crypto space. In July, company CEO Michael Miebach said that they would be looking to become the de facto payment processing channel for intra-country transfers using central bank digital currencies (CBDC) and stablecoins.

With more countries looking to digitize their currencies, Mastercard is looking to make it easier for international value flows using these assets. The CipherTrace acquisition will make it much easier.

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Author: Jimmy Aki

Four Years After the Act, SEC Charges Issuers for An $18 Mln Unregistered ICO

Four Years After the Act, SEC Charges Issuers for An $18 Mln Unregistered ICO

This week, the US Securities and Exchange Commission (SEC) charged Steven K. Sprague, President of Rivetz Corp and CEO of Rivetz International SEZC, and both the companies with conducting an illegal, unregistered offering of securities through an initial coin offering (ICO).

It raised $18 million in Ether through this ICO that was not registered with the SEC and did not qualify for an exemption from registration from more than 7,200 investors.

According to the SEC’s complaint, the ICO was conducted during the last bull run, between July and September 2017, during which the defendants sold digital assets called “RvT tokens” to the general public, including US investors.

The complaint alleges that the CEO marketed the digital tokens as an investment opportunity by promoting the value of RvT to investors. The promotion included highlighting that RvT would be listed on cryptocurrency exchanges for trading, touting Sprague’s abilities and managerial skills, and claiming that the token would increase in value as a result of Rivetz’s efforts.

However, the RvT tokens could not be used to purchase any goods or services at the time they were sold, the complaint adds.

The SEC has now, after four years since the sales, charged the defendants with violating the securities registration provisions of Section 5 of the Securities Act of 1933. For this, the SEC praised the assistance of the Cayman Islands Monetary Authority.

The agency is seeking injunctive relief, the return of allegedly ill-gotten gains plus prejudgment interest, and a civil penalty.

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Author: AnTy

It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto

After falling under $44k this week, Bitcoin price went back towards $50k to mark the start of the weekend. Currently trading around $49k, the leading cryptocurrency is now just 24.6% away from its all-time high.

Ether (ETH) is also back to hovering at $3,300 while the total market cap is now at nearly $2.19 trillion, getting all that much closer to the mid-May peak just above $2.6 trillion.

This week, Avalanche is leading the market with its 7-days gains of 165% along with Arweave, Audius, Solana, and Terra, which are up 50% to 80% during the same period. AR -9.24% Arweave / USD ARUSD $ 28.24
Volume 36.71 m Change -$2.61 Open $28.24 Circulating 33.39 m Market Cap 943.17 m
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market
AUDIO -9.12% Audius / USD AUDIOUSD $ 2.87
Volume 110.25 m Change -$0.26 Open $2.87 Circulating 400.24 m Market Cap 1.15 b
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market
SOL -6.31% Solana / USD SOLUSD $ 73.76
Volume 1.51 b Change -$4.65 Open $73.76 Circulating 286.58 m Market Cap 21.14 b
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 1 d BlockFi Signs NBA #1 Draft Pick Cade Cunningham As An Ambassador 1 d Solana Based DeFi Protocol, Luna Yield, Goes Dark as Customers Fear An Exit Scam: Report
LUNA -0.84% Luna Coin / USD LUNAUSD $ 0.01
Volume 0 Change $0.00 Open $0.01 Circulating 1.71 m Market Cap 14.19 K
9 h It Is The “Largest Wealth Transfer In History” As The 99% Supports The 1% Of Crypto 2 d South Koreans Turn to Serum (SRM) As Solana (SOL) Ecosystem Pumps 4 d Open Interest & Funding Rates Indicate “Lack of FOMO” in Cryptocurrency Market

With Bitcoin (BTC) eyeing the psychological level of $50,000 and hoping for a strong break, central banks officials set to get together at Jackson Hole, Wyoming, where Fed Chair Jerome Powell will deliver the highly anticipated speech to lay out his plans to normalize monetary policy, can affect the market sentiments negatively.

Titled “Macroeconomic Policy in an Uneven Economy,” the speech will be streamed live next week on Friday, August 27.

With discussions around tapering already started, heavy volatility is expected next week, which could affect crypto markets as well.

On Friday, the US dollar index went above 93.7, a level last seen in early November, and is currently trading at 93.458.

Gold meanwhile is currently at $1,780 per ounce, up from an over four-month low at $1,687 on August 9th.

In the crypto market, meanwhile, “the largest wealth transfer in history … from nocoiners and boomers to crypto enthusiasts” is happening, noted trade and economist Alex Kruger.

According to SpartanBlack, a partner at crypto fund The Spartan Group, it’s the other 99%, “everyone else who is not in crypto” supporting the 1% of crypto, “and the funny thing is that they have no idea they are doing it.”

He goes on to explain how the thousands of new millionaires and many billionaires as well minted in crypto are going to cash out a portion of their newfound wealth to buy houses, cars, yachts, jewelry, club memberships, etc.

This, in turn, drives up asset prices that result in real-world inflation, but it is a slow and organic process, and as such, “you don’t see that inflation happening.”

“The people who are not in crypto also happen to be the ones who are less tech-savvy and tend to have a set view of how the world works. They made their mark in the old world order, and they think all of this is a massive bubble or ponzi that will crash spectacularly. That view keeps them away, and they keep subsidizing us year after year unknowingly until at some point it becomes clear that crypto is the new new thing, and it isn’t going away,” said Spartan Black.

Overall, it is a generational wealth transfer from the old to the young, from the clueless to the tech-savvy, from the risk-averse folks to the risk-takers, and from the establishment to the guys who dare to dream up a new world order, he added.

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Author: AnTy

Gold Flash Crashes to A 4-Month Low, Bitcoin Rallies Past $46,000

In less than a week, the price of the yellow metal has fallen 7.86% to a four-month low.

The price of gold started declining last week when it was just above $1,830 to as low as $1,687 on Monday, on a day when liquidity is low due to holidays in Japan and Singapore.

But since then, bullion’s price has recovered $1,743 per ounce. However, it remains under pressure as bets mount that the US Federal Reserve may soon start paring back its massive monetary stimulus.

While the dollar held near four-month highs following an upbeat US jobs report that lifted bond yields, gold and oil prices failed to keep up and went down hard.

In the wake of the better than expected US jobs report, yields on US 10-year notes are up at 1.30%, following their lowest level since February last week at 1.177%.

Much like bullion, Brent sank almost 2%, adding to its worst weekly slump since October, on the concerns that the spread of the Delta variant would temper travel demand.

With the payrolls report coming on strong on Friday, investors continue to assess whether the Fed would now take a step towards winding back its stimulus.

In complete contrast to gold, bitcoin, the digital gold, has been recovering ever since July 21st, when BTC’s price went down to about $29,000. After surging past $45k on Sunday, BTC went further on Monday to nearly $46,120, a level that was last seen on May 17.

As of writing, BTC/USD has been trading just above $46k and may go higher, up 56% YTD and down 29.3% from its all-time high in April.

The entire cryptocurrency market is enjoying recovery, with the market cap now past $1.9 trillion. Ether is particularly enjoying much wilder price action thanks to the London upgrade with EIP 1559. Since the upgrade on Thursday, about 17,150 ETH worth more than $53.5 million have been burned.

This helped ETH rally to about $3,185 on Sunday amidst the uncertainty over crypto rules in the US infrastructure plan.

Currently, ETH is trading near $3,125, up 328.57% YTD and still 27.79% off of its May peak.

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Author: AnTy

Bitcoin and Ether Print Green Candles for 10 Consecutive Days, OI on FTX & CME Rises Sharply

The crypto market is enjoying the greens this week as both Bitcoin and Ether print 10 daily green candles in a row.

Ever since bottoming out on July 20, these crypto assets have been surging, with Bitcoin hitting $42,500, which was last seen on May 20, and Ether climbed to the June 16 level of about $2,484.

The total crypto market has now rallied to $1.68 trillion but is still down from $2.55 trillion in mid-May.

In the derivatives market, the open interest on Bitcoin futures is also going up, now at $14.25 billion, up from $11.27 from June 27 low. In terms of BTC, total OI is now at 341.57k, down from 375.74k BTC on July 17.

Interestingly, in the past 24 hours, FTX had the biggest increase of 15.29% in OI, now at 57.53k, followed by CME‘s 10.21% jump to 36.68k BTC. Leading crypto exchange Binance had one of the lowest increases of 4.71% to 80.91k BTC.

Less than a fortnight back, FTX had 42.5k BTC in OI compared to Binance’s 93.89k. This shows the shift in the market as FTX continues to get more popular and bigger while Binance faces regulatory scrutiny worldwide.

Also, during the recent short squeeze, more Binance traders got liquidated than FTX, much like always in spite of the former only pushing 1 liquidation per second and significantly underreporting the figures.

As for Ether, OI has recovered to $6.41 billion from $4.43 billion on June 26. In ETH terms, it is currently at 2.6 million ETH, while less than a fortnight back, it was 2.77 million. The latest increase in OI across the exchanges has been between 8% to 12%, except for CME, which only had a 2.36% rise in the past 24 hours, followed by Bybit’s 4.8%.

But FTX is clearly leading with its OI on Ether futures now at 3726k, while on July 17, it was 379.5k compared to Binance’s 626.92k, which is a long way to reach 730.97k about two weeks back.

The Macro

While the market is clearly recovering sharply, crypto market participants aren’t really sure if the bull run is continuing from the first half of the year after having a 50% to 75% drawdown in crypto prices. However, the confidence for the same is increasing.

But not only is the micro in favor, but the macro-environment also is not as dim with the US Federal Reserve discussing tapering.

The thing is, tapering might not happen soon, with GDP figures coming in at 6.5%, only slightly better than Q1 and well below the economists’ expectation of 8.5%. Unemployment also increased month over month at 5.9%.

For the first time, volume at Fed’s reverse repurchase facility also topped $1 trillion as investors and financial institutions continued to pour cash into the overnight window. Demand for the reverse repo facility surged as the US debt ceiling looms, the Treasury department cuts down on its bill issuance, and financial firms struggle to find places to invest their excess cash.

Meanwhile, in the current unchartered territory, household savings rates are plummeting. “In the early days of covid, a major point of inconsistent economic data in increasing stimulus + QE/OMO was the massive savings everyone had. Now they’re back to lows,” noted Split Capital.

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Author: AnTy

Binance Bitcoin Futures Skyrockets to $48,000 in a Monster Wick

OI on Binance BTC futures is currently at 78.89k BTC, down from 101.37k BTC from last week, while being the only exchange to have a negative change in ETH futures’ OI in the past 24 hours but still sitting at the highest 627k ETH.

The textbook short squeeze that took place this weekend saw the price of bitcoin going as high as $48,000 on the leading cryptocurrency exchange.

On other crypto exchanges, this short squeeze sent the price of bitcoin to nearly $40,000 and Ether to almost $2,400, with Binance an anomaly.

On Binance itself, while Bitcoin wicked to about $39,800 on spot and on futures, it went as high as $48,168. In response, Binance has reportedly said that “API user place wrong orders, the liquidation price is the marked price, the extreme price will be automatically removed, and the user will not be affected.”

In the past 24 hours, more than 100,000 traders were liquidated for about $1.14 billion, with nearly $950 million being the short positions.

Bybit accounted for a majority of these liquidations at about $440 million, followed by OKEx and Huobi for just under $220 million, according to Bybt.

Binance, meanwhile, is accounting for a mere 11.4% of these liquidations at $129.5 million. However, the leading crypto exchange has stopped showing accurate liquidation for some time now, and these figures are expected to be much higher. Previously, Binance used to lead the market in liquidations.

This can be seen in the second-biggest drop of over 12% in OI on Binance’s Bitcoin futures in the past 24 hours.

Currently, at 78.89k BTC, it is down from 101.37k BTC on June 20, which was an increase of 78% in nearly a month as new short positions were opened. Still, it is the highest OI, accounting for 22.7% of the total BTC futures open interest.

“Binance straight up under-reports liq data, but OI down by ~12k BTC following that move and net buying on that 1m candle was ~12k BTC. Good ol cascade,” commented trader Hsaka. “Around ~$600m of forced buying in under 60 seconds.”

When it comes to Ether futures, only Binance has a negative change of 4.45% in the past 24 hours, now sitting at the highest 627k ETH while others had an increase in OI.

Amidst all this, Binance CEO Changpeng Zhao announced that they have started limiting new users to a maximum of 20x leverage a week ago on Monday.

“In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks,” he added.

Meanwhile, several hedge funds have curbed their trading on Binance as the regulatory crackdown on it intensifies, the Financial Times reported.

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Author: AnTy

Latin America IT Giant Globant S.A Stakes $500,000 In BTC Investment

  • Despite a turbulent week in the crypto market, the nascent industry is still a major attraction for institutional investors.
  • Joining the likes of MicroStrategy and Tesla in holding Bitcoin, software firm Globant S.A has added Bitcoin to its balance sheet.

Globant Joins the ‘Bitcoin Express’

In a detailed financial statement forwarded to the Securities and Exchange Commission (SEC), Globant said that it has been making crypto investments for some time now. The IT firm has invested an aggregate of $500,000 for the first quarter of 2021 in cryptocurrencies. This investment was solely spent on Bitcoin.

The multinational tech company founded in 2003 said that it considered Bitcoin an intangible asset due to its lack of a physical form and the limitlessness of its useful life.

Globant S.A has categorized cryptocurrencies alongside its intangible assets like licenses, customer relationships, customer contracts, and non-compete agreements.

Globant S.A is not the first software company looking to diversify its investment portfolio. MicroStrategy’s Michael Saylor has long converted the software firm’s cash reserves to Bitcoin.

According to Saylor, Bitcoin is a better store of value than gold, given its hard-cap limit on the number of coins that will ever be mined (21 million to be exact).

This has seen the US firm commit a large portion of its cash reserves to cryptocurrencies, and it currently sits at the top of companies with BTC exposure with 92,079 BTC purchased so far.

BTC Market Crash Affects Institutional Investors

Crypto investors are still licking their wounds following a severe market correction that saw the market shed almost $300 billion. Despite Bitcoin rising almost 90% in Q1 2021 alone, breaking through resistance levels of $65,000, the asset has crashed almost 50%, trading below $32,000 in one week.

Following regulatory clampdown in China and pointed criticism on how each Bitcoin is mined, the premier digital asset suffered a huge shock spilling about $500 billion in the process.

Institutional investors like Globant S.A with Bitcoin on their balance sheets have also not fared well. Some have even seen their investments erode following the massive selloffs occasioned by the crackdown by China.

Data published by Bitcoin Treasuries revealed that some investors holding Bitcoin in their treasuries are treading in the red zone, as the value of their holdings plummets. One prime example of such investors is BlackRock which has seen its initial stake drop from $360,000 to $227,825. Another is Chinese photo app company Meitu which has lost 10% of its investment.

Some others have also gained, crypto mining company Riot blockchain and Voyager Digital Ltd posting 5.8 times the value they initially deposited.

The most affected have been investors who made the transition to crypto in 2021.

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Author: Jimmy Aki

Is The Worst Over? This Is What The Bears And Bulls Have To Say

What started the week before last got worse towards the end of last week. While Bitcoin already had its bottom at $30,000 on Coinbase and on some exchanges almost $28k, the pain continued for Ether prices.

On Sunday, while BTC went down yet again to $31,100, Ether fell to about $1,725 on Coinbase, representing a 60.6% drawdown.

Altcoins simply got obliterated during the Sunday sell-off, losing more than 90% of their value.

The new week, for now, is starting on a green note with BTC near $38k and ETH at just under $2,400. Just like altcoins went down hard, they are now up 10%-50% in the past 24 hours.  BNB +33%, ADA +34%, DOGE +13%, XRP +24%, DOT +78%, LTC +23%, LINK +44%, MATIC +80%, and SOL +33%.

It could be expected that the worst is over as the funding rates are in deep negative territory. Also, this seems to be the end of the largest liquidations as after the Black Wednesday blow-up, liquidations have been under $1.5 billion, and the open internet halved.

While amidst the low liquidity, selling pressure, and China panic continues to be a big negative for the market, miner capitulation and selling from corporates who have Bitcoin on their balance sheet could bring the bears back.

However, the market also has positive drivers in the form of increasing stablecoin supply. In the past seven days, USDT’s market cap has increased from $58.14 billion to $60.26 billion, and USDC’s rose from $16.86 billion to $20.63 billion, as per CoinGecko.

While it could be used for buying crypto, it could also be used to park in yield farms or collateral for someone trying to get super short, said Sam Trabucco, a quant trader at Alameda.

Not to mention, the supply increases if the peg goes above $1. Both USDT and USDC have seen some fluctuations, more than usual, since the mid of May.

Also, funds are coming with their money to scoop up cheap coins. As Jason Choi of the crypto fund, The Spartan Group noted: “Almost every retail friend I know has sold or is selling, and almost every fund I speak to is bidding, albeit slowly.”

Another fund Amber Group is reporting flows from crypto funds, macro funds, opportunistic VCs” who it says are “beginning to buy this dip in BTC+ETH as well as blue-chip DeFi by staggering limit orders and running longer TWAPs. Buying is still relatively passive/measured at this moment.”

The market is reversing from small Alts to Bitcoin, and Ether with Korean trading funds are spot buying.

“Asian family offices and UHNWIs which were sidelined are starting to fade this moving using options (selling puts) given the favorable skew / high implied vol as a way to scale in,” added Amber Group.

Bitcoin had its worst monthly performance in May since March 2020 and before that Dec. 2018. Bitcoin’s realized cap or “cost basis” actually decreased for 8 straight days during this recent sell-off, indicative of newer coins selling.

But this isn’t the same as the past bear markets.

“The difference between the price of BTC vs. that blended cost basis at current levels is the tightest its been since 9/8/20 and back in the ~50% range all time,” while in 2015, 2018, and 2020, it hit 0% and flip negative at various points, noted John Street Capital.

All of this has the market expecting the ongoing sell-off to be the mid-way of the bull run instead of a bear market.

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Author: AnTy