Amplify Files for a Crypto and DeFi ETF; Invesco and Galaxy Digital Goes for a Physical Bitcoin ETF

Amplify Files for a Crypto and DeFi ETF, While Invesco Galaxy Digital Goes for a Physical Bitcoin ETF

Bloomberg analyst Mike McGlone expects a futures-backed Bitcoin ETF to be approved first, and it could be as soon as “the end of October,” which he said would open a “window for a massive amount of money inflow.”

While the US Securities and Exchange Commission (SEC) refuses to approve a Bitcoin ETF at this point, companies remain as hopeful as ever and continue to file for the same.

This week, Invesco and Galaxy Digital filed a joint registration statement for a physically-backed Bitcoin ETF.

Invesco already has its application for a futures-backed Bitcoin ETF before the SEC, for which ruling is expected in October.

In fact, with SEC Chair Gary Gensler signaling his openness to a futures-linked ETF that offers more investor protection, the market is hoping for approval on such an ETF this year.

According to Bloomberg Intelligence Commodity Strategist Mike McGlone, it’s only a matter of time that the first Bitcoin ETF gets approved.

In an interview, McGlone talked about Canada extending its lead over the US by approving Bitcoin and Ether ETFs and that capital is flowing from the US to Canada’s institutional crypto products.

But he doesn’t expect the US lawmakers to miss this out for much longer, and this could happen “potentially by the end of October.” According to him, it is likely to be a futures-backed product first, adding that it would still open a “legitimization window for a massive amount of money inflow.”

Meanwhile, Amplify is going after the broad crypto market and decentralized finance (DeFi) sector. The Amplify Decentralized Finance & Crypto Exposure ETF (the “Fund”) application wants approval for the fund to invest in Bitcoin futures, Canadian Bitcoin funds, and companies that hold more than 50% of their net assets in BTC, Ether, or any other “liquid” cryptocurrency.

“Initially, the Fund expects to directly invest up to 15% of its total assets in Grayscale Bitcoin Trust (‘GBTC’) and Canadian bitcoin ETFs investing in bitcoin.”

The Fund also seeks to invest at least 40% of their net assets in the DeFi marketplace that includes Decentralized Finance Blockchain Miners, Digital Asset & Decentralized Finance Integrators, Decentralized Finance Applications, and Pre-Revenue Decentralized Finance Companies.

However, the prospectus isn’t completed yet, with key roles still to be filled, such as a bitcoin custodian.

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Author: AnTy

It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero

While layer 1 solutions like Solana (SOL), Avalanche (AVAX), Binance Smart Chain (BSC), Polkadot (DOT), and Cardano (ADA) are trying to compete with Ethereum, layer 2 solutions like Arbitrum and Optimism are here to solve the issue of high fees and congestion on Ethereum network and have been gaining traction.

But while layer 1s and layer 2s are busy outdoing each other, layer 0 has entered the picture.

Could it be the new fad? That’s to be seen, but this week, Bryan Pellegrino, co-founder, and CEO of LayerZero Labs, introduced LayerZero, an Omnichain Interoperability Protocol.

According to Pellegrino, LayerZero’s mission is simple — connect all dapps on all chains, have borderless connectivity (EVM, Non-EVM, L1, and L2), and make integration with LayerZero extremely simple for developers.

“Right now, bridges can be a mess,” noted Pellegrino as he pointed out different layer 1s have all independent pools of liquidity and that we don’t natively have the likes of AVAX <> Solana and Avax <> BSC.

Unlike this, LayerZero will allow for a single pool of unified liquidity bridged between all connected chains along with enabling native cross-chain lending, which means lend on one chain and borrow on another one seamlessly, and unified governance, that is, the ability to seamlessly swap AMM (A) -> AMM (B) regardless of chain, layer, or asset.

All of this will be enabled natively from day 1 on top of LayerZero, whose contracts are currently under audit and will “go live shortly after completion,” he said.

They are also building the first project entirely on the permissionless LayerZero protocol called Stargate, on which details will be shared soon.

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Author: AnTy

China’s Lehman Moment? Crypto Market Takes Note of Real Estate Giant Evergrande’s Debt Crisis

While the crypto market is contemplating the effect of Evergrande’s possible fallout, Tether has clarified that it is “doesn’t hold and never held,” commercial paper issued by Evergrande.

Real-estate giant Evergrande is looking more and more like the Lehman Brothers moment of China as investors brace for its collapse. According to experts, the Chinese Communist Party (CCP) will have to save the company, whose collapse would send shockwaves across the global economy.

Capital Economics estimated that the company has around 1.3 trillion yuan ($200 billion) in pre-sale liabilities as of the end of June.

Lehman Brothers collapsed in September 2008, dissolving $600 bln in US assets leading to the worst market crash since the great depression.

This week, anxious investors protested at the Shenzhen headquarters of the company as Evergrande said it is facing “unprecedented difficulties” but denied rumors that it is about to go under.

But on Tuesday, in a statement to the Hong Kong stock exchange, Evergrande said it had hired financial advisers to explore “all feasible solutions” and warned that there was no guarantee it would meet its financial obligations.

Evergrande blamed “ongoing negative media reports” for damaging sales in the pivotal September period.

“Evergrande’s collapse would be the biggest test that China’s financial system has faced in years,” said Mark Williams, chief Asia economist at Capital economics.

This, of course, poses a serious problem for CCP as Evergrande is a longstanding symbol of the country’s economically productive urbanization, and its business model is representative of “China’s highly debt-dependent growth model,” said Jean-François Dufour, head of French, China-focused consulting firm DCA Chine-Analyse.

Founded in 1996, the company pursued a very aggressive growth strategy and raised $9 billion in its IPO on the Hong Kong Stock Exchange in 2009. It now controls 778 real estate projects in 223 Chinese cities and directly employs nearly 200,000 people while claiming to have indirectly created more than three million jobs.

Reportedly, the company had only $13 billion to its name as of late June, while it is due to pay $15 billion to creditors by the end of 2021.

At the same time, banks are reluctant to lend them money, on top of which, “It’s become more complicated because of the restrictive monetary policy the government is currently pursuing,” Frédéric Rollin, an investment strategy adviser at Pictet Asset Management, told French 24.

According to Rollin, in 2020, compared to the US companys’ debt representing 85% of the gross domestic product (GDP) and 115% in the eurozone, Chinese companies’ debt represented 160% of its GDP.

With Evergrande bound to take at least one bank down with it if it goes bankrupt, China needs to prevent Evergrande from going under. And these shockwaves are to be expected to be felt beyond China because it counts big international companies like BlackRock, Allianz, and Ashmore among its investors.

This week, even the crypto community took notice of this, with Adam Cochran of Cinneamhain Ventures arguing on Twitter that “Currently both Tether and Circle hold commercial paper, and while I think it unlikely that either would have large swaths of Evergrande bonds, the whole market will reel a bit.”

Tether meanwhile clarified that it doesn’t hold any commercial paper issued by Evergrande; rather, its vast majority of the commercial paper is in A-2 and above rated issuers.

“Doesn’t hold and never held,” tweeted Paolo Ardoino, CTO of Tether and Bitfinex.

Meanwhile, Cochran is expecting the shockwaves to be felt in crypto as well because “while we can hope that crypto one day becomes a flight from the tradfi markets, right now its sufficiently intertwined to its movements.”

“This is a very big deal indeed,” said Matthew Graham, CEO of crypto VC firm Sino Global Capital, adding, but “for real estate and tradfi.”

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Author: AnTy

Cohen Not Going to Miss “Incredibly Transformational” Crypto While Dalio Finds BTC as A Cash Alternative

Steven Cohen Isn’t Going to Miss “Incredibly Transformational” Crypto While Ray Dalio Finds Bitcoin as an Alternative to Cash

While Point72 founder’s “cryptomaniac” helped him understand crypto, Bridgewater Associates founder continues to reiterate that Bitcoin “could still be controlled” and that it “could be tulips in Holland.”

Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates, reiterated that he owns some Bitcoin but expressed concern that there’s a danger of governments destroying the cryptocurrency market.

On CNBC during the SALT conference in New York, Dalio said,

“I think at the end of the day if it’s really successful … they will try to kill it. And I think they will kill it because they have ways of killing it.”

His comments came as US regulators are looking to increase oversight on the $2 trillion cryptocurrency market. Just this week, SEC Chair Gary Gensler said that the top securities regulator is working overtime and crafting rules to bolster regulation of crypto assets.

It, however, wasn’t the first time that Dalio raised concerns about political government action against Bitcoin. Previously he said that the government could ban the cryptocurrency as they would want to clamp down on alternative currencies that could challenge the dominance of the US dollar.

He further said that while El Salvador has become the world’s first nation to adopt Bitcoin as legal tender, India and China are “getting rid of it” while the US is talking about how to regulate it, so overall, “it could still be controlled,” Dalio said.

“It Could Be Tulips In Holland”

According to Dalio, cryptocurrencies represent diversification which “is a good thing,” noting portfolios need to be spread across more asset classes.

Dalio yet again called cash trash and warned that investors shouldn’t become too reliant on it. And he thinks Bitcoin is a good alternative to cash.

“I think it’s worth considering all the alternatives to cash and all the alternatives to the other financial assets. Bitcoin is a possibility. I have a certain amount of money in bitcoin.”

“It’s an amazing accomplishment to have brought it from where that programming occurred to where it is through the test of time.”

However, he also said that the leading cryptocurrency lacks intrinsic value or fundamental and objective worth. Then he likened it to the tulip bubble saying, in a historical perspective, there are many things that didn’t have any intrinsic value but had perceived value and went hot and cold.

“You just have to know what it is. It could be tulips in Holland.”

According to CNBC, Dalio owns a smaller percentage of bitcoin compared to gold holdings in his portfolio.

Not Going To Miss This

SALT conference host Anthony Scaramucci’s alternative investment firm, SkyBridge’s co-chief investment officer, Ray Nolte, meanwhile said at the event that they have a 12% investment in bitcoin.

Earlier this week at the conference, billionaire investor Steven Cohen also said that he hopes to not miss out on opportunities presented by digital currencies.

Cohen, the founder of Point72 Asset Management, shared that he was a bit of a skeptic when it came to cryptos until recently when his son, a “cryptomaniac,” helped change his mind.

“Once I decided there were opportunities, and I thought this could be a space like the internet — it could be incredibly transformational — I wasn’t going to miss this.”

Cohen, who has a net worth of $11.1 billion, is venturing deeper into the crypto world in both personal capacity and at his firm. He is also interested in the metaverse where “your mind can run wild.”

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Author: AnTy

ETH Gains Upper-hand as it Becomes “The Money of The Internet,” BTC-Gold-Bond Index Outperforming S&P 500

Bulls control the crypto market while the long-awaited jobs much weaker than expected US payrolls report sent the US dollar lower. With the unemployment rate slipping to 5.2%, it seems less likely that the Fed will pare its massive stimulus measures.

The bullishness in the week has Bitcoin trading above $50,000 and Ether near $4,000 on the weekend. The total market cap is also all set to hit $2.4 trillion, very close to $2.55 trillion ATH.

The greenback, meanwhile, is falling after a much weaker than expected US payrolls report. Given that Federal Reserve officials said that they are looking at the job numbers to determine the timing to pare its massive stimulus measures, it is likely that the US central bank may not do so.

The long-awaited jobs report triggered small moves in the equity market that saw the S&P 500 sliding a bit while traders turned to the safety of tech giants. Overall, the stock market was relatively quiet this week as trading typically slows down ahead of the Labor Day weekend since markets are closed Monday in observance of the holiday.

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Nonfarm payrolls increased by 235,000 in August, while economists forecasted 728,000. The unemployment rate also slipped from 5.4% in the prior month to 5.2%.

The data sent the dollar index to its lowest level since early August at 91.9; currently, it is at 92.12. Last week, Fed Chair Jerome Powell said that while tapering could begin as early as this year, it would only be if the job growth continues. Not to mention the rising COVID-19 cases in recent weeks have yet again brought back the concerns on economic recovery.

“It adds more concern or focus on the October number because now we want to see if there is a trend,” said JB Mackenzie, managing director for futures and forex at TD Ameritrade.

With the Fed “trying to telegraph that if the economy continues to heat up and they need to take action,” we are not seeing a huge reaction to the downside “because the market feels as though they have been given that clear direction.”

According to Bank of America Corp, in the run-up to the jobs report, equity funds attracted $19.2 bln of inflows, and $12.7 bln was allocated to bonds. Meanwhile, outflows from cash funds were the biggest in seven weeks at $23 bln.

The Only Way Is Up

According to the September Bloomberg Crypto Outlook report by senior commodity strategist Mike McGlone, Bitcoin at $100k and Ethereum at $5k is the path to least resistance.

According to the report, “bulls are in control” and in thriving mode after surviving the deep correction. “After enduring a gut-wrenching correction, we see the crypto market more likely to resume its upward trajectory than drop below the 2Q lows,” notes McGlone.

Ether is currently propelled by the NFT mania and EIP 1559 implementation that has effectively made it a deflationary crypto asset. The second-largest network is also facilitating digital dollar dominance with Tether (USDT) and USDC at the top.

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Ethereum is leading the market this time which “appears well-positioned for further price appreciation” as it becomes “the money of the internet” while seeing an incremental drop in supply due to EIP 1559, which led to the burn of roughly 200,000 ETH worth more than $640 mln in a month.

Following Ether, Bitcoin can also march towards $100k. Halving that took place in 2020 also works in the leading cryptocurrency’s favor as after last year’s supply cut, Bitcoin has only appreciated 4x in 2021, which is tame in comparison to 55x in 2013 and 15x in 2017.

Furthermore, while increasing demand and adoption are facing diminishing supply, only the fact that it may be just hype and speculation could stop the onward-and-upward trajectory. “Or it could be a revolution in money and finance that’s in early price-discovery days,” he added.

McGlone is a bitcoin bull, and to him, it is on its way to becoming the digital reserve asset in a world going that way.

If U.S. Treasury yields resume their enduring downward trajectories, following Japan and most of Europe, gold and Bitcoin have high potential to continue advancing in price. Not to mention, the Bitcoin-Gold-Bond index has been outperforming the S&P 500 since the end of 2015, notably from the start of 2020.

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Author: AnTy

48% of US Consumers Invested in Crypto But Nearly 40% Don’t Know They Can Buy A Fraction of a Coin

While 32% of those who have invested in crypto are interested in buying even more crypto in the next six months, 24% don’t even know where to start.

Nearly half of US consumers, 48% have invested in cryptocurrency, found ICE’s digital asset platform Bakkt Holdings in its latest “U.S. Consumer Crypto Survey,” involving more than 2,000 consumers across the US.

32% of those who have invested in crypto assets also said they are interested in buying crypto in the next six months. The survey was conducted in July of this year.

However, education remains an important part of crypto adoption, with 24% of respondents saying they don’t know where to start.

Interestingly, nearly 40% of respondents did not realize that they don’t need to buy a full coin and could buy part of a cryptocurrency, indicating financial literacy and consumer understanding are crucial to uniting the cryptocurrency and digital assets ecosystem, the survey noted.

According to the survey which was conducted via an online survey tool, younger generations remain interested as ever, with 37% of respondents aged 18-29 and 30-44, who haven’t purchased crypto in the past six months, “somewhat” or “very interested” in investing in crypto.

Those aged between 45-60 and are over 60 and haven’t invested in crypto show less interest, knowledge, and confidence than their younger counterparts, with only 25% interested in the 45-60 age range and 19% in the older group. Bakkt CEO Gavin Michael said,

“The results of the survey demonstrate that Gen Z and millennials are adopting crypto en masse and for alternative forms of payment, but the biggest roadblock standing in their way has been lack of understanding on how to get started and concerns with market volatility.”

The survey found that a good 58% of crypto investors view it as a long-term investment, while 43% plan to sell to make a short-term profit.

Long-term return on investment at 28% is the most appealing attribute of cryptocurrency, closely followed by lack of fees, ease of access, FOMO, and lack of centralized control.

Additionally, 24% said they plan to use it for online purchases and 12% for in-person purchases, while 11% are also interested in using it for peer-to-peer (P2P) transactions.

While crypto is increasingly gaining mainstream adoption, the key hurdles in its path involve “too much volatility,” according to 32% of respondents. Another main hurdle to buying cryptocurrency, at 24%, is not knowing where to start. A smaller percentage of respondents (11%) also said prices are high at the time.

While 45% of women surveyed said they don’t know anything about crypto, only 24% of men said they didn’t have any knowledge.

Among men, for 39%, volatility is the greatest hurdle, and 29% are most concerned with the cost and fees of buying cryptocurrency. In comparison, the main hurdle for women (30%) is finding where to start, and 28% wanted an easy-to-use platform.

Overall, almost 30% of respondents are either “very” or “somewhat confident,” and 34% are neutral when it comes to trusting cryptocurrency.

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Author: AnTy

Bitcoin & Gold Spike and Stocks Hit Record High while Dollar Weakens on Powell’s Dovish Speech

While the Fed governor isn’t concerned about the “eye-popping price increases” in the housing market, saying, “I don’t think any of this is financial excess,” Christopher Waller sees crypto as odd assets. He’s “not going to bet Financial Stability Policy on crypto assets.”

Federal Reserve Chair Jerome Powell didn’t disappoint investors at the much-awaited event of the month as he delivered a dovish speech at the Jackson Hole Symposium on Friday.

Powell did say that he would like the central bank to start reducing its $120 billion a month asset purchases from “this year,” but only to add that investors should not read it as a signal to an imminent hike in interest rates.

“The timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff, for which we have articulated a different and substantially more stringent test,” Powell said in his speech.

In response, both the S&P 500 and Nasdaq hit record highs indicating investors were happy with the Fed chief’s speech. While investors would have some time to adjust to the absence of more liquidity in the coming month, Powell was pretty clear in signaling that there was no rush to tighten policy.

“Powell understands that tapering will happen, but it’s not going to happen sooner than later,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

Treasury bond yields edged lower, and the dollar weakened to fall to 92.68, while a week back, it was at a nine-month high at 93.57.

Gold, labeled as a safe haven, meanwhile hit 3-weeks highs on Friday, having its best weekly gain since May on the back of no clear timetable for tapering US stimulus spending.

Much like other risky assets, including commodities and oil, cryptocurrencies also went higher.

Bitcoin went past $49,400 thanks to Powell and is currently hovering around $49k, while Ether is also hovering around $3,250.

SOL, which has a market cap of $27 bln, hit new ATH at $94.36 a few hours back has climbed above Polkadot to claim 8th spot. DOT, a 26.7 bln coin, is meanwhile trading at just above $26, down 47% from its mid-May peak.

The total cryptocurrency market cap is now back at $2.17 trillion.

Tapering has been a hotly debated topic in recent months with a lack of consensus among Fed officials. Robert Kaplan of Dallas, James Bullard of St Louis, and Esther George of Kansas City, and Philadelphia’s Patrick Harker are in favor of “sooner rather than later,” unlike Raphael Bostic of Atlanta division who is concerned about the Delta variant’s impact.

On Friday, Fed Governor Christopher Waller also spoke in favor of moving with paring the purchase “this fall” if there’s one more good job report in the 850,000 to 1 million range.

While concerned about the “eye-popping price increases” in the housing market, Waller said a lot of it is fundamentals with millennials coming off the sidelines for the first time in a decade, adding, “I don’t think any of this is financial excess.”

While “the financial system works fine. There’s gonna be the odd assets of people employed to look at, particularly crypto assets, but I’m not going to bet Financial Stability Policy on crypto assets.”

During the speech, Powell also noted that “more progress” has been seen in the jobs market, but this is now coinciding with “the further spread of the Delta variant,” and also there’s much ground to cover to reach maximum employment.

“If a central bank tightens policy in response to factors that turn out to be temporary … the ill-timed policy move unnecessarily slows hiring and other economic activity and pushes inflation lower than desired. Today, with substantial slack remaining in the labor market and the pandemic continuing, such a mistake could be particularly harmful,” he said.

Overall, the policy is well-positioned, Powell said, adding, the Fed, as always, is prepared to adjust.

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Author: AnTy

Avalanche Captures Market’s Attention, 5x In A Month With Memes, Big Names, & A Massive Fund

While NFTs are currently ruling the market, Avalanche (AVAX) has managed to still attract attention and rally more than 352% in the last 30-days while Bitcoin and Ethereum gradually make their way upwards towards their all-time highs.

With a market cap of $8.75 billion, AVAX is the 20th largest crypto asset, trading at $50.93, down only 15.2% from its all-time high of $59.4 hit on February 10.

On July 21st, AVAX was trading under $10.

The highest funding rate on AVAX perpetual futures contracts is currently 0.1389% on OKEx while keeping just under 0.1% on most other exchanges. Meanwhile, for Bitcoin and Ether, the highest is 0.0691% and 0.0288% respectively on Bybit, according to Bybt. BTC 2.67% Bitcoin / USD BTCUSD $ 49,002.64
$1,308.372.67%
Volume 32.65 b Change $1,308.37 Open $49,002.64 Circulating 18.8 m Market Cap 921.12 b
5 h Japan’s Financial Services Agency (FSA) Looks to Step Up Crypto Oversight: Report 6 h Other Central American Countries Watching El Salvador’s “Out Of This World Experiment” to Adopt Bitcoin Too, Says CABEI President 9 h Avalanche Captures Market’s Attention, 5x In A Month With Memes, Big Names, & A Massive Fund
ETH 1.72% Ethereum / USD ETHUSD $ 3,228.75
$55.531.72%
Volume 18.87 b Change $55.53 Open $3,228.75 Circulating 117.26 m Market Cap 378.59 b
6 h Budweiser Joins NFT Frenzy, Purchases Ethereum Beer-Themed Domain Name 9 h Avalanche Captures Market’s Attention, 5x In A Month With Memes, Big Names, & A Massive Fund 10 h Smaller ETH Holders Growing Faster than Bitcoin as it Captures Retail Interest

While getting the support of Three Arrows Capital and popular trader Hsaka, it looks like AVAX also has Yearn Finance creator Andre Cronje on its side, who mentioned, “Avax is real tech, snowball is legit good,” in a tweet.

Besides AVAX, other L1 tokens that appear resilient are LUNA and SOL. SOL 2.09% Solana / USD SOLUSD $ 72.07
$1.512.09%
Volume 1.55 b Change $1.51 Open $72.07 Circulating 290.8 m Market Cap 20.96 b
9 h Avalanche Captures Market’s Attention, 5x In A Month With Memes, Big Names, & A Massive Fund 1 d Driven by Real Demand Bitcoin Hits Resistance but Retail and Speculator Euphoria Is Not Here Yet 1 d Bitcoin Unable to Attract Funds, Altcoins Recording Inflows with Ether’s Competitor Seeing the Largest

Speculation around Avalanche soared after Avalanche Foundation’s $180m liquidity mining program announcement brought the DeFi blue chips Aave and Curve into the ecosystem.

“Opportunistic apes and fork developers attempting to get in early on this news propelled Avalanche DeFi TVL and AVAX token prices,” said Delphi Digital, which noted that the project is taking a page out of Ethereum sidechain project Polygon’s playbook by incentivizing blue-chip DeFi protocols, pumping base token, and reinvesting token into the ecosystem.

“It remains to be seen if Avalanche can emulate Polygon’s success – but the rush of mercenary capital flowing into the ecosystem is obvious,” it added.

This money flow can be seen in Avalanche’s TVL (total value locked), which has been on the rise since August 1st as it exploded from $163 million up to $1.5 billion, representing an 823% growth in less than a month.

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On Avalanche, the algorithmic liquidity market protocol BenQi is currently leading in terms of TVL growth, which makes sense given that lending protocols tend to attract more deposits compared to AMMs. Other popular projects include Trader Joe, Yield Yak, and Snowball benefitting from yield farming season on Avalanche. Their tokens are also up 20% to 100% as well.

This week, another DeFi blue-chip, Sushi, joined the Avalanche Rush liquidity mining program, where each project will allocate up to $7.5M of liquidity mining incentives over a 3-month period. SUSHI -0.59% SushiSwap / USD SUSHIUSD $ 12.26
-$0.07-0.59%
Volume 359.62 m Change -$0.07 Open $12.26 Circulating 127.24 m Market Cap 1.56 b
9 h Avalanche Captures Market’s Attention, 5x In A Month With Memes, Big Names, & A Massive Fund 5 d Polygon Continues Expansion Play With DeFi Focus, Forming A Decentralized Autonomous Organization (DAO) 5 d Bloomberg and Galaxy Digital Launches DeFi Index; SEC Chair Gary Gensler says DeFi is “A Bit of A Misnomer”

Sushi’s next-generation AMM, Trident, is expected to provide its ecosystem with new features and abilities to maximize yield and efficiency.

“The Avalanche community is one of the most compelling reasons to align incentives with the Avalanche chain. We are a community-driven platform and admire the community focus in the Avalanche ecosystem and look forward to providing them with a positive DeFi experience,” said Sushi Lead Contributor, 0xMaki.

Another big catalyst for the project came in the form of the Avalanche Bridge (AB) launch.

At the end of last month, Avalanche launched its months-old Avalanche Bridge (AB) that claims to be cheaper and aims to be the “growth engine” for the project’s future.

Avalanche Bridge itself and the memes around it have the community finding its next token to ape-in in AVAX.

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Author: AnTy

Driven by Real Demand Bitcoin Hits Resistance but Retail and Speculator Euphoria Is Not Here Yet

Technical obstacles are here with consolidation expected around $51,000 while the possibility of Fed tapering risk has been pushed back has greenback falling and US dollar net longs declining by more than half.

Bitcoin has finally hit $50,000 after three months.

As of writing, the leading cryptocurrency is trading just under $50k, finding resistance at this psychologically important level.

“We’re seeing some very bullish signs here,” said Vijay Ayyar, head of Asia-Pacific with crypto exchange Luno in Singapore. Bitcoin could “test all-time highs again” after pushing past levels that have seen some major challenges.

The rally is now overcoming a confluence of hurdles, including a Fibonacci and Ichimoku cluster between $47k and $48k. Besides $50k being a round number, the 61.8% Fibonacci retracement of the April to June downtrend presents a potential obstacle at $51,000.

“The next major resistance, for now, is at the $50,000 zone,” said Konstantin Anissimov, executive director at CEX.IO crypto exchange.

“Should more buyers dive in to push the price above the $50,000 level, a frenzy may be ushered in to steer the price toward a medium-term target of $55,000.”

Appetite Must Remain Intact

As Bitcoin’s market cap inches closer to $1 trillion, the total cryptocurrency market capitalization is currently at $2.23 trillion, fast approaching the mid-May peak of $2.6 trillion propelled by the gains of AVAX, LUNA, RUNE, AR, SOL, and ADA in the last 30-days.

The latest uptrend is marking the end of a months-long slump after crypto-assets peaked in April and May, driven by profit-taking and China’s crackdown on cryptocurrency mining and leveraged trading.

According to Edward Moya, senior market analyst at OANDA in New York, the fears of capital gains taxation have led some traders to hold cryptocurrency as a long-term investment as well.

“New investors are the key to this latest bitcoin rally, and all signs show they are comfortable with high risk.”

“Bitcoin could see a fast appreciation here and might not hesitate making a run for $60,000 if appetite for risky assets remain intact.”

USD Giving Back Its Gains

Investors are also betting on the prospect of more US stimulus spending that would lead to further gains amidst the growing adoption of cryptocurrency among mainstream financial services firms.

With Dallas Federal Reserve President Robert Kaplan, a well-known hawk, saying he might reconsider the need for an early start to tapering as concerns over the outlook for global growth due to the Delta coronavirus variant, USD slipped on Monday.

The greenback saw some profit-taking after registering its biggest weekly rise in over two months, currently around 93 after climbing to Nov. 2020 levels on Friday.

Last week, US dollar net longs also declined to $1.06 bln, from $3.08 bln in the previous week after the USD positioning was net long for five straight weeks, which came after staying net short for 16-long months.

Markets are expected to experience some volatility in the coming days, with Fed Chair Jerome Powell to speak about the economic outlook at the central bank’s Jackson Hole Aug.26-28 conference.

Tapering Pushed Back

The possibility of Fed tapering risk pushed from Sept. to December has QCP Capital maintaining a bullish bias against the 40k support level in BTC. Also, Governor Lael Brainard’s latest dovish pivot to become Fed chair is “likely to raise enough questions within the FOMC to delay their decision by a quarter.”

Not only is headline regulatory risk exhausted in the near-term, the funding rates in perpetual swaps and premium in the futures is also low and muted, meaning “most of the rally has been driven by demand in physical spot rather than from leveraged speculators.”

With no signs of overheating or overextension, QCP is bullish but not overly so due to GBTC still trading at a discount. In the meantime, consolidation is expected at $51,110.

However, NFTs are drawing the attention of retail and institutions alike. And as retail investors return to the market, another upswing could see crypto prices rallying to new heights.

Given the fact that the last time BTC was at $50k, the Google trends for Bitcoin searches were much higher than what it is right now, “this suggests that retail euphoria hasn’t entered the market yet, and bitcoin has a long way to go in this market cycle,” said Marcus Sotiriou, a sales trader at the UK based digital asset broker GlobalBlock, in a note.

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Author: AnTy

Bitcoin Surges Past $50k on Low Funding But Institutional Investors Are More Bullish on Ethereum

Bitcoin’s breakout is “coinciding with the biggest increase in development activity,” while OI for Ether futures on CME has hit a new peak and has been on an uptrend since July 20.

The cryptocurrency market has been back on the move since before the weekend.

The overall crypto market cap is gradually climbing towards a $2.6 trillion all-time high from mid-May as it surges past $2.2 trillion on Monday.

This past week, the biggest contribution to this growth was made by Avalanche (AVAX), which rallied 160%. Audius (AUDIO), Arweave (AR), Near (NEAR), Fantom (FTM), Terra (LUNA), Thorchain (RUNE), Cosmos (ATOM), Solana (SOL), Cardano (ADA), Kusama (KSM), PancakeSwap (CAKE), and BNB recorded between 20% to 80% uptrend in the last 7-days.

As for the leading cryptocurrency, after falling just under $44,000, the price of Bitcoin went on to hit $50,000 late on Sunday or early Monday. BTC went as high as $50,600, a level that was last seen on May 15.

This breakout is “coinciding with the biggest increase in development activity… also since May,” noted analytics company Santiment. “If Github submissions continue pushing higher here, it will be a promising sign.”

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All the while, the funding rate on Bitcoin perpetual contracts remains subdued, with the highest at 0.0497% on OKEx. On Bybit, for USDT margin contracts, the funding is actually negative at 0.0347%.

Open interest on Bitcoin futures, on the other hand, is currently at $18.25 billion — adding $7.63 billion since June 26 low but still needs about $10.5 billion to hit the mid-April peak of $27.68 billion.

On CME, the OI is only at $1.75 billion, up from $1.11 bln low in July and still far off from $3.26 bln in late Feb., according to Bybt.

This is unlike Ether futures, where OI had climbed to a new peak at $682.68 million and has been on an uptrend since July 20, when it was at $292.58 million. First introduced in early February on CME, the OI on Ether futures was just under $608 million when it topped out mid-May.

“CME futures suggest that a bullish sentiment towards ETH is brewing among institutional investors,” noted Arcane Research.

CME Crypto Futures 3 Month Rolling Basis

Overall, OI for Ether futures keeps above $9 billion, adding $4.58 billion in the last two months and needing $2.6 billion to reach $11.6 billion ATH from May 10th.

As for price, Ether has gone past $3,365 for the first time since May 19. ETHBTC, however, has taken a drop to 0.065 as Bitcoin started rallying. Now the first resistance for ETHBTC is around 0.068, then around 0.070, and then above 0.077.

Working in Ether’s favor is that the percentage of ETH held by the exchanges has dropped to just 12.8%, the lowest in the past three years. Meanwhile, more than 7 million ETH are staked on ETH 2.0 and an almost record 9.7 million in decentralized finance (DeFi).

Adding to this supply crunch, 78,000 ETH worth roughly $245 million has been burned in less than 20 days since the activation of EIP 1559 with the London upgrade earlier this month.

With NFT marketplace OpenSea accounting for close to 10k ETH burns, non-fungible token mania is the biggest contributor to this rapid number of ETH moving out of circulation.

“NFTs may be one of the largest catalysts we’ve seen for ETH since the creation of DeFi,” noted Ethereum enthusiast Croissant. “They can bring both liquidity & value to previously intangible assets.”

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Author: AnTy