Institutional Investors Shift Interest to Ether But Bitcoin Fundamental Shows ‘Healthy Bull Market’

On CME, Ether futures volume and OI is up 50-60%, while for Bitcoin, it is declining. Still, several metrics show that people are not preparing to sell their BTC and have “longer-term conviction” in the trillion-dollar crypto asset.

Institutional investors seem to be more interested in Ether right now than Bitcoin.

Ether futures had a record volume day this week, trading $228 million in volume, as per Skew. It is a relatively new product as CME Group launched Ether future just a few months back on Feb. 8.

Despite these good numbers, Ether futures are only catching up to the underlying spot volume.

According to the March report of CryptoCompare, in terms of total USD trading volume, CME’s newly launched ETH futures reached $1.5 billion in March, up 51.3% since February. Meanwhile, BTC futures volume on CME has decreased by 0.5% to $59.4 billion.

About ten days ago, at the announcement to the upcoming CME micro Bitcoin futures, Tim McCourt shared that since the Ether futures launch, they have seen 767 contracts, equivalent to 38,400 Ether, trading on average each day compared to 13,800 contracts equivalent to about 69,000 BTC in 2021.

Much like volume, open interest is also on the surge, with ETH OI averaging $102 million, up 66.2%, in March on CME, and currently, at $187 million. As for Bitcoin, traders err on the side of caution, with OI dropping by 15% to $2.1 billion last month.

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Average open interest for March was down 14.1% from Feb. across all futures derivatives products at $25.9bn. Binance, however, recorded a 1.5% increase and the highest open interest on average at $7.5bn.

The OI shifted lower as the price of Bitcoin remains stuck under $60k while Ether’s is trading above $2k, hitting a new ATH at $2,050 last weekend.

Despite the lack of movement in price, bitcoin fundamentals paint a healthy and bullish picture, as noted by Yassine Elmandjra, an analyst at ARK investment and on-chain analyst David Puell in “Buyer and Seller Behavior: Analyzing Bitcoin’s Fundamentals.”

One of the metrics, Thermo Capitalization, which is the total USD value of coins paid to miners, is at $23 billion, nearly 98% below bitcoin’s market cap, indicating that “miners no longer dominate as natural sellers.”

Another metrics is “HODL” waves shows that today, roughly 55% of bitcoin’s supply hasn’t moved in more than a year, illustrating investors’ longer-term conviction in the crypto asset.

The largest crypto asset, Bitcoin achieved a trillion-dollar market cap this year for the first time, however, realized market cap, which values each BTC at the price of its last move, is at $350 billion.

“Whenever market cap drops below realized cap, the overall bitcoin market sells at a loss, denoting capitulation,” noted Elmandjra and Puell.

Another bullish metric is coindays destroyed, an increase of which implies that holders are moving coins out of long-term storage and taking profits.

The metrics measure the time-weighted turnover of bitcoin and is currently slightly above 5 billion, still 30% below its all-time high in early 2018 in spite of the price tripling its 2017 ATH, depicting “a healthy bull market.”

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Author: AnTy

Bitcoin Breaks into a New ATH Above $60,000

Funding surged at one point to 0.5% but now coming down some while just over $1 billion in the past 24 hours with Binance’s degen users yet again leading.

Bitcoin entered the weekend with a very strong move as the leading crypto asset made a new all-time high just as the $1,400 stimulus checks to Americans have also started coming in.

The digital asset broke the Feb. 21st ATH of $58,350 and climbed to nearly $60,266 on Bitfinex, $60,200 on Binance, and $60k on Coinbase. A “significant negative” price gap between Coinbase and Binance shows this surge came from stablecoin buying power, per CryptoQuant.

The market is unaffected by the reports of CFTC probing Binance. As Matt Blom, global head of sales trading at EQUOS, said,

“The bears’ last stand is the $57,800 level, and it looks like we might be seeing that battle play out before the week is over,” and we did. On the downside, around $55k, he sees levels “supported by dip-buying bulls and dip-buying bears alike.”

This momentum saw the funding rate on futures platforms also rising fiercely. Bitcoin’s perpetual funding rate reacted to the bulls, and at one point, longs paid 0.5% to shorts on Deribit, as per Viewbase.

Liquidations were relatively small today as in the past four hours only about $360 million got rekt while 195,975 traders were liquidated for just over $1 billion in the past 24 hours.

And of course, much like always, Binance users were leading the liquidations, which is no surprise given that in the first two months of the launch of Binance Futures, an average of more than 60% of platform traders were using 20x or higher leverage and 21% of traders an eye-popping 125x leverage.

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The new ATH came just a day after MicroStrategy purchased an additional 262 BTC for $15 billion that brought its total holdings to 91,326 BTC. Michael Saylor, CEO of MicroStrategy said,

“People still aren’t sure: Are we crazy or are we not crazy?”

“The only way to get economic security is to invest in scarce assets that are not going to be debased by currency expansion. That is the environment that led us to decide we should consider Bitcoin as a treasury reserve asset.”

While Bitcoin bull Saylor continues to move towards 100k BTC holdings, much like the price, the number of addresses with a balance of more than 1k BTC has seen a drop.

According to analyst Lex Moskovski of Moskovski Capital, it could be larger addresses splitting for custody purposes or whale selling.

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Amidst all this, Elon Musk, the CEO of Tesla, which also has invested in Bitcoin, made another tweet in support of the cryptocurrency.

“BTC (Bitcoin) is an anagram of TBC(The Boring Company) What a coincidence!” tweeted Musk. “Both do mining & use blocks & chains.”

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Author: AnTy

Chinese Publicly Listed Company Buys Bitcoin (BTC) and $17.9M Ether (ETH)

While Meitu’s Bitcoin purchase is part of the company’s asset allocation strategy, the company bought Ether in preparation to enter the blockchain industry.

China’s beauty app Meitu Inc. has become the latest corporation to invest in cryptocurrency as the company buys $22.1 million worth of Bitcoin, 379.1 BTC, and $17.9 million worth of Ether, 15,000 ETH in the open market on March 5, revealed in the Sunday evening exchange filing.

It isn’t only US companies anymore; Tesla, Square, and MicroStrategy, that are accumulating Bitcoin and Ether on their balance sheets.

The company’s crypto purchase pushed Meitu’s prices as much as 14.4% Monday before succumbing to the wide market selloff.

While the Hong Kong-listed company has bought the crypto assets only now, Meitu’s founder announced in mid-2018 that he personally bought 10k+ BTC. In recent years Cai Wensheng, Meitu’s chairman and a crypto enthusiast, has also been exploring blockchain technology.

Meitu, an app that helps touch up user-profile pictures, is a $10 billion company with 50 million daily active users that launched Hong Kong’s biggest initial public offering in 2016.

It took the crypto route as part of the company’s plan to use as much as $100 million of its cash hoard to fund crypto purchases.

The company believes the prices of digital assets have “ample room” to appreciate in value, and they can help diversify its portfolio. It also notes that cash is now “subject to depreciation pressure due to aggressive increases in money supply by central banks globally.”

Wensheng says Bitcoin has several features that potentially even render Bitcoin “as a superior form to other alternative stores of value such as gold, precious stone and real estate.”

While Bitcoin is part of the company’s asset allocation strategy, the company purchased Ether in preparation to enter the blockchain industry. The document reads,

“Blockchain technology has the potential to disrupt both existing financial and technology industries, similar to the manner in which mobile internet has disrupted the PC internet and many other offline industries.”

It further states that the company believes the blockchain industry is “still in its early stage, analogous to the mobile internet industry in circa 2005.”

Meitu is evaluating the feasibility of integrating blockchain technology in its overseas businesses, and given that Ether powers the second largest network, purchasing it was a “logical preparation,” the filing said.

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Author: AnTy

China’s Inner Mongolia Bans Crypto Mining while Bitcoin Miners Rake in Record-Breaking Revenue

China’s Inner Mongolia Bans Crypto Mining while Bitcoin Miners Rake in Record-Breaking Revenue

The cryptocurrency miners have broken the December 2017 revenue record of $1.25 billion by generating a whopping $1.36 billion in revenue in February.

Up 21% from January revenue, the latest numbers are in part due to the price of Bitcoin hitting a new peak at just above $58,300. The price ATH of the last bull cycle was hit in Dec. 2020.

Miner revenue based on terahash per second (Th/s) also kept up between $0.23 and $0.38 in the month. Besides profiting from selling their BTC at high prices, transaction fees were another driver of these high revenues. Miners raked in $186 million, 13.7% of total revenue from network fees. Up 10.3% from January, fee revenue also hit its highest level since Jan. 2018.

Amidst the growing revenue of miners, China’s Inner Mongolia has banned crypto mining, reported Bloomberg. The region accounts for 8% of the global Bitcoin mining hash rate.

The autonomous region is planning to shut down all crypto-related projects by April and further ban new digital coin projects, according to a draft plan posted on the Inner Mongolia Development and Reform Commission’s website on Feb. 25.

Inner Mongolia, which is known for its cheap energy supplies, aims to cut down emissions per unit of gross domestic product (GDP) by 3% this year and constrain the growth in energy consumption to 1.9% this year.

The proposal to curb cryptocurrency mining in the region was first introduced back in 2018, and the next year, authorities clamped down on the “illegal” Bitcoin mining business.

“It isn’t a real bull market unless China is ‘banning’ Bitcoin Bullish FUD,” commented Alistair Milne, CIO at Altana Digital Currency Fund.

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Author: AnTy

RBI Governor Believes Crypto has ‘Major Concerns’ While Teasing the Launch of a Digital Rupee

RBI Governor Believes Crypto has ‘Major Concerns’ While Teasing the Launch of a Digital Rupee

  • Reserve Bank of India governor Shaktikanta Das expressed ‘major concerns’ on private cryptocurrencies in the country.
  • RBI is still working on a central bank digital currency.

In an exclusive interview with CNBC TV18, Shaktikanta Das, the Reserve Bank of India (RBI) governor, said the central bank has “major concerns on cryptocurrencies.” The central bank has already communicated the government’s concerns, who will “take a call,” and if required, Parliament will also decide on regulating crypto.

“Blockchain, not cryptocurrencies.”

Despite the underlying blockchain technology offering certain benefits that should be exploited, according to Das, cryptocurrencies still present major concerns on the country’s financial stability.

“I also want to make it very clear that the blockchain technology is different,” Das said. “The benefits of it have to be exploited, that is another thing, but on crypto, we have major concerns from the financial stability angle.”

The RBI governor did not expound on the challenges that crypto causes on the financial system but said they had shared the government’s findings. The Indian government will consider the points and take a call on regulating private cryptocurrencies.

RBI governor on CBDC launch

The RBI has been stern on accepting crypto as a usable currency in India. In the past fortnight, local reports stated a ban on cryptocurrency looms as the government plans to eradicate cryptocurrency payments from the country. Citing a senior official at the Indian Finance Ministry, the government is planning on an “absolute ban” on crypto, affecting transactions of Indians on foreign exchanges.

In the past month, the central bank called for the launch of a framework for its public digital rupee. Differentiating cryptos to the digital rupee, Das stated the digital rupee is still a “work in progress” on the technology side and the procedural side with plans being made on how and when the CBDC will be rolled out.

The governor, however, did not give a specific date that the digital currency is expected to launch due to “several loose ends [that] need to be tied up.”

“We are targeting to launch it. But if you ask me a date, at this point, it will be difficult for me to say.”

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Author: Lujan Odera

Dutch Footballer Says “Don’t Wait to Buy Bitcoin” While Goldman Issues a Warning

Dutch Footballer Says “Don’t Wait to Buy Bitcoin” While Goldman Issues a Warning

In this green week, Bitcoin pushed even higher, going to about $38,750.

Starting the week around $32,000, today we are trading around $37,000, still less than 12% away from its all-time high of $42,000 hit on Jan. 8.

As Bitcoin gets back to pushing higher, Dutch professional footballer Ryan Guno Babel showed his interest in the leading digital cryptocurrency as he tweeted,

“Don’t wait to buy Bitcoin; buy bitcoin and wait.”

Celebrities started taking a keen interest in Bitcoin last year as the digital asset goes on a wild run. Russell Okung of the NFL is actually benign and collects half of his salary in BTC.

Meanwhile, Goldman Sachs Group’s Sharmin Mossavar-Rahmani says the wild swings in the price of Bitcoin only proves it’s not a real unit of value.

“Something with a long-term volatility of 80% can’t be considered a medium of exchange,” said Rahmani, head of the investment strategy group for the bank’s consumer and investment-management division. She also compared the cryptocurrency’s spikes to the recent run-up in GameStop shares.

Recently, as we reported, Michael Saylor, chief executive of MicroStrategy, said that Bitcoin is not a currency and isn’t going to replace dollars; rather, it captures the share of gold as a store of value.

For Rahmani, the leading digital currency isn’t a store of value either. “Just because everybody piles into an idea and talks it up doesn’t mean it’s a store of value,” she said during a briefing Wednesday on the group’s 2021 outlook.

However, she does believe blockchain technology “is here to stay.” The technology, she said, could facilitate a smoother flow of global assets. She even sees it becoming a part of the financial infrastructure.

While the banking giant’s strategist isn’t interested in Bitcoin, there have been reports of the bank requesting information to at least one crypto custodian at the end of last year.

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Author: AnTy

Bitcoin Market Looking for New Lows After Elon Musk’s Pump & Dump

While the endorsement from Tesla CEO and Bridgewater Associates founder is “bullish” for the leading crypto, Ray Dalio says the idea of “a church that one is devoted to determining one’s investment position on Bitcoin” is discomforting.

Bitcoin had a wild Friday as we pumped and dumped beautifully.

What looked like a change of Bitcoin market trajectory turned out to be nothing more than a short-lived pump.

This pump was propelled by the world’s richest person, Tesla CEO Elon Musk, who changed his bio to “bitcoin” that followed up with “In retrospect, it was inevitable.” This tweet was also put in block 668197 mined by yhc5t3.

It turned out to be just like the Xi pump back in October 2019 when Chinese President Xi Jinping’s call for China to accelerate the development of blockchain technology sent BTC above $10,500.

Now, the market is expecting Bitcoin to go back to testing the lows. Already Bitcoin is down more than 7% and dropped under $33,000. Trader Benjamin Blunts is calling for the incoming of new lows at “sub 28k.”

Besides this short-lived pump, Musk taking Twitter CEO Jack Dorsey’s route also resulted in others doing the same. These individuals include Reddit founder Alexis Ohanian who is also busy “staking sats,” Anthony Scaramucci of SkyBridge Capital, YouTuber MrBeast, crypto exchange Gemini founder Tyler Winklevoss and other Bitcoin enthusiasts all having simply “Bitcoin” in their Twitter bio.

“Bitcoin is the signal and it’s getting louder,” commented Michael Saylor, CEO of MicroStrategy on this.

Another positive momentum for Bitcoin came from Bridgewater Associates founder Ray Dalio this week, who turned positive on the cryptocurrency. Mike Novogratz called this endorsement from Musk and Dalio “bullish” for Bitcoin, stating:

“BTC is a store of value. All stores of values are belief systems. And we are getting new converts to the church at an accelerating rate. Stay long.”

However, Dalio was quick to chime in to say that he doesn’t call himself “a convert to the church of an accelerating rate,” rather he would be interested in the response to his assessment of Bitcoin and knowing “what am I missing?”

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Exchanges Can’t Handle the Growing Demand

While Musk tweaking his Twitter bio presented the market a pump opportunity, trading platforms couldn’t keep up with the demand they are seeing even since WallStreetBets got on the Dogecoin train and took the road to crypto space after Robinhood paused trading in some of the hot stocks on Thursday such as GME.

Robinhood also temporarily disabled the features that allowed users to buy cryptos instantly. However, the popular retail platform doesn’t offer the ownership of cryptos, rather just buy and sell opportunity through IOUs.

“Due to extraordinary market conditions, we’ve temporarily turned off Instant buying power for crypto. Customers can still use settled funds to buy crypto. We’ll keep monitoring market conditions and communicating with our customers,” said a Robinhood spokeswoman.

As we reported, users then moved on to crypto exchanges but like every other time they couldn’t keep up with this much demand.

Binance said the risk of new users put its system under stress, with its CEO Changpeng Zhao noting that user sign-ups and trades jumped to a record high as well, forcing the exchange to briefly suspend withdrawals.

“We almost ran out of DOGE coin addresses,” Zhao told Bloomberg. “Our system couldn’t generate new addresses fast enough to match new users coming in. It’s crazy.”

US-based Coinbase also reported that “due to a technical issue, we are experiencing degraded service where some trades may not be able to be completed.”

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Author: AnTy

Crypto Industry Capitalizing on Wall Street’s Losses Big Time, And Getting Rewarded

Crypto trading platforms see new user signups and increased traffic while exchanges like Bittrex and FTX list the stocks delisted on Robinhood. Blockfolio meanwhile announced both crypto and stocks trading with “no fees.”

As WallStreetBets and Wall Street suits’ battle intensifies, the crypto industry reaps the benefits while providing the perfect solution for retail traders.

Cryptocurrency trading platforms are enjoying a jump in traffic and user signups since Robinhood suspended trading on highly volatile assets, resulting from the platform having a cash crunch.

“All the new users rushing in… teething issues,” tweeted Changpeng Zhao, “CZ,” the CEO of Binance, addressing users experiencing issues with trading, deposits, and withdrawals.

Coinbase also saw its ranking on the App store jump about 45 spots suggesting increased retail activity. Voyager Digital meanwhile reported “100 new accounts a minute.” Others are reporting similar issues — heightened usage as the stocks traders jump on to the cryptocurrencies.

One of the biggest recipients of this interest was the meme coin Dogecoin (DOGE) that saw its value rising a whopping 1,128% to as high as $0.860. Currently trading around $0.047, the coin was recording more than double the volume at $28.4 bln than Bitcoin’s $13.78 bln earlier in the day. These gains helped DOGE become a $5.92 billion market cap cryptocurrency and climb the 11th place.

As we reported, WallStreetBets can pump this coin to $1. But before they could go all in, Robinhood suspended buys on every crypto asset. The zero commission trading platform halted trading on the cryptos — supported digital assets are Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) — along with GME, AMC, and others, which got it all started.

This has pushed traditional users towards the crypto market. Crypto exchanges have already been capitalizing on this, with FTX being the first one to do so. As always, the derivatives platform jumped on this opportunity by listing GME, AMC, and BB. The exchange took it further and introduced a special WSB index that included GME, AMC, SLV, BB, NOK, DOGE, and its native token, FTT.

It just didn’t stop there; FTX is ready to eat all this by announcing crypto and stocks trading with “no fees” on Blockfolio, which FTX acquired in a $150 million deal about six months back. The app has more than 6 million users, as per the official website.

Cryptocurrency exchange Bittrex also joined in as it announced, “We’ll list every single stock that RobinhoodApp delists as a tokenized stock. Blockchain is the real way we democratize the financial system together.”

But this is just the beginning, and the market expects to see a herd of new investors joining the decentralized wave.

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Author: AnTy

Grayscale Investments Buys 2,170 BTC, No ETH Yet While Dissolving XRP Trust Altogether

Grayscale Investments Buys 2,170 BTC, No ETH Yet While Dissolving XRP Trust Altogether

It has been a month and a week since ETHE has added any new Ethereum to its holdings, but the GBTC has got the ball rolling. Meanwhile, XRP’s delisting from major exchanges creating the issue of liquidity.

So, it has started!

After closing access to its products and not making a single purchase since Christmas, the world’s largest crypto asset manager has set things in motion again.

This week, Grayscale Investments opened the business again for new investors and started it by adding 2,170 BTC, worth about $83.5 billion at a current Bitcoin price of $39,640.

With this latest purchase, Grayscale’s Bitcoin Trust (GBTC) now holds a total of 608,810 BTC, 3.27% of Bitcoin’s circulating supply.

This purchase coincided with an 18% jump in the price of Bitcoin from yesterday’s $32,400 low. Interestingly, Bitcoin price has been ripping higher lately in tandem with all the Grayscael’s Bitcoin buying frenzy and Coinbase’s big BTC outflows that represent the institution’s involvement.

While Grayscale has started adding more BTC to its stash, the asset manager has yet to add more ETH. It has been a month and a week since ETHE has added any new Ethereum to its holdings, still keeping at 2.93 million — 2.5% of Ether’s total circulating supply.

Currency or Security!

Coming on to XRP, Grayscale has decided to dissolve its XRP Trust following the Securities and Exchange Commission’s lawsuit against Ripple and its top two executives for allegedly selling unregistered security.

The announcement came on Wednesday in which the firm mentioned the delisting of XRP from major platforms as a reason behind its move because “it is likely to be increasingly difficult for U.S. investors, including the Trust, to convert XRP into U.S. dollars, and therefore continue the Trust’s operations.”

As such, the Trust has “liquidated” the XRP and intends to distribute the net cash proceeds to Trust shareholders. Just a few days back, the firm announced the liquidation of the XRP position from its Digital Large Cap Fund as well.

This move by the wide crypto market, however, has been limited to US customers. Japan is particularly clear about its stance on XRP, with Ripple partner SBI Holdings’ clarifying that the digital asset is, in fact, not a security.

Japan’s Financial Services Agency (FSA) has also said that it views XRP as a currency based on the Payment Services Act and not as a security (FSA also said this back in May of 2019). The same is the case in the UK, where XRP is considered an “exchange token.”

Ripple CEO Brad Garlinghouse also maintains that the majority, 95% of XRP trading, happens outside the US. The digital asset, meanwhile, is trading under $0.30.

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Author: AnTy

Synthetix (SNX) Releases Aggressive Roadmap to ‘Take on CeFi’ in 2021

This week, while other cryptocurrencies are still struggling to reverse their correction, DeFi tokens swiftly made a recovery, with SNX token hitting a new ATH above $16.50. For now, the 23rd largest cryptocurrency is trading around $14.80 SNX 2.17% Synthetix / USD SNXUSD $ 14.84
$0.322.17%
Volume 409.21 m Change $0.32 Open $14.84 Circulating 110.52 m Market Cap 1.64 b
4 h Synthetix (SNX) Releases Aggressive Roadmap to ‘Take on CeFi’ in 2021 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
.

Derivatives liquidity protocol, Synthetix is the blue-chip DeFi project with a market cap of $1.68 billion. Amidst this uptrend, Synthetix released its roadmap for 2021, painting a picture of a

“future where everyone in the world is connected to one another by handheld devices that allow them to hold, trade, and transfer every imaginable asset.”

The roadmap mentions Optimistic Ethereum, Synthetix V3, Synthetic Futures, Asset expansion, dApp Upgrades, and optionsDAO as its high-level priorities.

A complete re-architecture of the Synthetix contracts will be done for the first time since last 2018. Synthetix V3 will involve a new SNX staking mechanism so that SNX is always freely transferable, introducing eSNX, tokenized debt, continuous staking rewards, continuous vesting, and Keep3r implementation, among other features.

The transition to layer two scaling solution Optimistic Ethereum which will lower the gas costs and provide higher throughput, is one of the most exciting things to come. The combination of this with Synthetic Futures will allow projects to compete with centralized futures markets and provide a minimum of 10x leverage. Also, Synthtix will expand into equities.

In the options, sDAO will provide upfront funding based on certain conditions, and oDAO will enable several improvements over the existing binary options implementation.

⁩”As an investor in SNX, it’s great to see the aggressive roadmap here,” said one of the partners of crypto fund The Spartan Group. “This is how $SNX is getting to $10B.”

2021 will also involve a focus on acquisitions and expansion for Synthetix as the scale of the project grows.

“This year we finally take on CeFi, then we come for TradFi…” concluded Kain Warwick, the founder of Synthetix.

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Author: AnTy