Bitcoin Sell-Off Over? Bullishness Continues to Permeate the Market

This week, the price of Bitcoin has been on a rollercoaster ride. We started with a dump right after hitting a new all-time high last Sunday at about $58,350.

Following the drop, we made several attempts to go back up but only to end up lower and yesterday, we went down further down to $44k.

As of writing, BTC is seeing some relief trading around $46,800 but that’s to be seen if the upward momentum will continue or take us only lower. Trader TheCryptoDog said,

“At this point my assumption is we don’t go lower from here. That can change at the drop of a hat (we’ll see what happens to macro on Monday), but looking at this now I would be more surprised to see BTC sink.”

One caveat is March, the month which in the last six out of seven times have been a red one with an average drawdown of over 14%.

Unlike BTC, Q1 is good for Ethereum which five out of six times ended with significant greens, already it is up 102% YTD despite the losses. This week, it went down to $1,350 during this recent sell-off, even lower than the previous ATH of $1,420.

Bitcoin’s lack of direction, right now, is turning out good for altcoins, leading to a 15% to 30% uptrend. The total market cap has also recovered to $1.455 trillion, adding more than $100 billion in the past 24 hours.

All This Bullishness

While the price action in the market isn’t’ looking bullish, the developments in the market certainly suggest so.

For starters, the first Bitcoin ETF debuted on the TSX last week, Purpose Bitcoin ETF (BTCC) continues to see demand and now holds more than 10,000 BTC.

If we look at the premium on the Bitcoin product of the world’s largest digital asset manager, Grayscale which went negative this week, but is expected to be just short-term noise, could actually turn out to be bullish.

Started in late Sept. 2013, “Outside of 2013-2014 this has only occurred 4 times. With fees of 2% and a current discount of 2.5%, BTC can be bought inside the trust cheaper than at market,” noted one analyst.

“Like the last 2 times, does the bull continue?” he added.

Bitcoin miners are also sending bullish signals as they stop their selling and start accumulating BTC. For the first time in two weeks, Miners Position change has turned positive.

The Spent Output Profit Ratio (SOPR) indicator, which is the price sold / price paid, is another one that has gone back to level 1, indicating the bottom on the sell-off.

Not to mention, money-making exchange Coinbase has announced its public listing and got more than $100 billion valuation. This would make the company CEO, Brian Armstrong who previously worked at Airbnb to get rich and join the world’s 500 richest people.

Even more bullish is the news that the House passed its $1.9 trillion coronavirus relief package early on Saturday, which will now head to the Senate. Democrats are rushing to approve more aid before unemployment programs expire on March 14.

This time, payments of $1,400 will be made to most individuals, along with the same amount for each dependent. $1,200 stimulus check from last time invested in Bitcoin at the time is currently worth $8,500 and surpassed $10,000 last week.

And just like the last stimulus package, this could propel the market higher.

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Author: AnTy

Crypto Hedge Fund Arca is the Latest to Join the Crowd of Bitcoin Trust Issuers

Meanwhile, GBTC is getting sold off with premium tanking to -3.77% and -5.27% on ETHE. Still, crypto fund assets are about to cross the $50 billion mark, up 12.5x from a year ago, that too without a US Bitcoin ETF.

Arca, the cryptocurrency hedge fund, is the latest one to launch a Bitcoin Trust product, as per the filing with the US Securities and Exchange Commission (SEC) on Thursday.

This makes sense given the explosive demand for Bitcoin funds, as we saw with the debut of the first Bitcoin ETF in Canada.

With this filing, Arca has joined several other asset managers that aim to provide exposure to Bitcoin without having the investors hold the digital assets themselves. Already, a number of asset managers like Bitwise, BlockFi, OpsreyFund, and others have been racing to launch their own bitcoin investment vehicles.

The Bitcoin products will be competing with the world’s largest digital asset manager, Grayscale.

What looks like the digital asset manager’s first foray into Bitcoin offerings launches with $100,000 so far. Unlike Grayscale’s $50k minimum, Arca is taking in $25k as minimum investments.

Meanwhile, Grayscale, which has $31 billion in its Bitcoin Trust (GBTC), holding more than 3.5% of Bitcoin’s circulating supply, is getting sold off.

Currently, GBTC is trading at a negative premium, continuing to fall this week, to its latest low -3.77%, as per Bybt. The same is the case for ETHE, on which the premium is also at its lowest level of -5.27%.

“This is panic or profit-taking selling,” said Eric Balchunas, BI’s senior ETF analyst. “It’s almost like the price of GBTC is an amplified version of Bitcoin price.”

Bitcoin, along with the broad crypto market, has been experiencing a sell-off, which is continuing today as the price of Bitcoin dumps to another low at $44,000, down 24.5% from Sunday’s all-time high of $58,300.

Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of vanishing GBTC premium in a panel for the Bloomberg Crypto Summit on Thursday.

“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.

Still, crypto fund assets are about to cross the $50 billion mark, up from a mere $4 billion a year ago that too without a US Bitcoin ETF. These numbers are about the same asset level as ETFs tracking the energy sectors, noted Balchunas, only to add that it still has a long way to go because it is just one-third of gold ETFs.

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“The SEC should consider approving multiple Bitcoin exchange-traded funds at the same time, in our view, after Canada’s regulator gave its initial issuer a significant first-mover advantage. Pent-up demand could put a single U.S. winner well ahead of rivals. An ETF would force Grayscale to decide how to handle the world’s largest Bitcoin tracker,” said Dave Nadig, Chief Investment Officer & Director of Research for ETFTrends.

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Author: AnTy

Robinhood Adds 6 Million New Crypto Users in First 2 Months; 2021 Starting With A Bang

Robinhood Adds 6 Million New Crypto Users in First 2 Months; 2021 Starting With A Bang

“The numbers are clear: 2021 has started with a crypto bang,” says the online brokerage.

Zero commission online brokerage Robinhood revealed that 6 million new users signed up for its cryptocurrency services in the first two months of this year.

The company launched its crypto services three years ago. Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) are the only available cryptos on the platform.

Robinhood Crypto, which is licensed to engage in virtual currency business activity by the New York State Department of Financial Services, recorded high trading volume amidst a sharp rise in the prices of cryptos.

These numbers just show that much like crypto exchanges which have been registering a sustaining number of new peaks in new user sign-ups and volume, the crypto-mania has spread to everyone.

As we reported, in January, the global crypto users broke the milestone of 100 million, and this week, Square also revealed in its earnings report that its Cash App recorded 1 million new Bitcoin users in January 2021, adding to its 3 million throughout 2020.

As for Robinhood’s crypto division, they averaged about 200,000 new customers trading on its platform per month in 2020, the company said in a blog post. “The numbers are clear: 2021 has started with a crypto bang,” it said.

Robinhood crypto traders by year

Source: Robinhood

The average transaction size of crypto investors on the platform is around $500.

Robinhood, which also offers stock and options trading, currently allows its customers to only buy, sell, and hold cryptos and recently said it also plans to introduce the ability to deposit and withdraw cryptos to other wallets.

The company is expected to go public this year, with a value of over $20 billion, nowhere near the more than $100 billion valuation crypto exchange Coinbase got. The largest crypto exchange in the US, Coinbase, filed to go public with Nasdaq through a direct listing on Thursday.

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Author: AnTy

Opera Browser Partners With Payment Processor Simplex; Allows Users to Buy Crypto with Fiat

Opera Browser Partners With Payment Processor Simplex; Allows Users to Buy Crypto with Fiat

  • Renowned browser, Opera, has partnered with crypt-fiat solutions offeror, Simplex, to promote the adoption of cryptos via allowing direct in-browser buys.
  • Opera users will henceforth be allowed to buy cryptos directly from the browser after integrating with the Israeli-based crypto-fiat processor Simplex. The partnership will also allow Opera users to create crypto wallets for storage of the newly-bought digital assets.

Simply known as crypto on-ramp, the service allows users to use their fiat to purchase crypto and is helpful for fresh crypto users. The new deal comes on the heel of various financial institutions now using Bitcoin and other cryptos and the prices going up in the recent past.

Simplex marketing head, Rachel Siegman, explained that the partnership with Opera, one of the most popular browsers in the world, will make on-ramping widely accessible which is a plus for the crypto space. Siegman explained,

“Current Opera users can onramp using their debit or credit card with Simplex and Simplex users can now use the secure and instant payments on Opera.”

Simplex was started in 2014 and prides itself as a firm that has been altering the status quo when it comes to crypto on/off ramps. The firm said it is determined to enhance the mass adoption of cryptos.

Simplex explained that the partnership with Opera comes at a time when retail investors are yearning for simple ways of entering the crypto industry after an impressive bull run that has caught the world by surprise. Siegman stated that now retail users can open a wallet without the need of leaving the browser, purchase their digital assets, sell, or hodl. She explained:

“Now Opera users can access Simplex’s extensive range of supported cryptocurrencies from within the browser wallet itself, and move between fiat and cryptocurrency with ease, enjoying competitive rates.”

Recently, Simplex hit another milestone after being added as a principal member of Visa within the Eurozone. This means that the firm can now provide fiat to crypto services to individuals that want to use their crypto for regular payments.

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Author: Joseph Kibe

Largest African Bank Partners with Hedera Hashgraph (HBAR)

Largest African Bank Partners with Hedera Hashgraph (HBAR)

Standard Bank Group, the largest African bank by asset management, has partnered with Hedera Hashgraph, an enterprise-grade distributed public ledger. Hedera, a decentralized enterprise-grade public network, allows anyone to build applications and is owned and governed by a governing council.

In response to the news and in line with the recovery across the crypto market, the price of HBAR has jumped more than 20% to $0.129.

The bank, which has a 156-year history in South Africa, has established Africa’s first Hedera network node to solve the issues such as lack of transparency, lengthy settlement periods, and information asymmetry in cross-border trade.

The bank is already using blockchain and distributed ledger technologies for several use cases, including foreign exchange (FX) payments and settlements. Adrian Vermooten, bank’s Chief Innovation Officer said,

“As an organization, we have established that blockchain technology can track and leapfrog legacy issues that prevent a seamless and transparent payment experience for the customer, which ultimately enables cost savings for all stakeholders.”

While domestic payments are already instant, cheap, and transparent, the banks note that cross-border transactions are subject to several complications like dependency on banking networks.

With the help of stablecoins and digital currencies, instant settlement with high liquidity and visibility can be achieved. Ian Putter, Head of DLT/Blockchain at Standard Bank Group said,

“As we see increasing interest in Central Bank Digital Currencies (CBDCs), tokenization of assets, and utilization of stablecoins, it has become increasingly clear that digitization of assets will impact all facets of our business, and we must strategically plan for these pieces to work seamlessly together.”

The bank is also joining the Hedera Governing Council and will be responsible for running the initial nodes just like its other members, including Boeing, Dentons, Deutsche Telekom, Google, IBM, LG Electronics, Magalu, Nomura, Tata Communications, University College London (UCL), Wipro, and many others.

The members guide both strategy and software development, ensure stability, and maintain its decentralization with a governance model that eliminates the risk of forks and preserves the integrity of the network.

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Author: AnTy

Grayscale Bitcoin Trust (GBTC) Catching Up Fast to Gold’s Largest ETF (GLD)

Bitcoin ETFs are also making waves, with BTCC doing three times more volume than any other ETF in Canada. Meanwhile, Bitcoin price, which is ready to hit $58k, is up 92% YTD compared to gold’s -5.83%.

Grayscale, the world’s largest digital assets manager, has $43.63 billion in assets under management. In less than a month, the asset manager has doubled its AUM as earlier this month it was sitting at $26.4 billion and $20.2 billion at the beginning of the year.

The majority of this AUM belongs to Grayscale’s one product Bitcoin Trust (GBTC), which has $36.57 billion in assets under management. Grayscale Bitcoin Trust currently holds 455.47k BTC, just over 3.5% of Bitcoin’s circulating supply.

This is thanks to the price of Bitcoin hitting a new high above $57,000 today and becoming a trillion-dollar asset.

With this, Bitcoin has achieved 10% of gold’s market cap, with the precious metal’s market cap being around $10 trillion. Price-wise, gold is nowhere near in BTC’s realm. Spot gold is currently trading at $1,783 per ounce, as of writing, down 5.83% YTD compared to Bitcoin’s more than 90% gains in 2021 so far.

Just as the leading digital currency is slowly eating up gold’s market share, the biggest Bitcoin fund GBTC is closing in on the largest gold ETF, SPDR Gold Trust (GLD), which has $64.85 billion in assets under management.

“GBTC ($39.2b+) isn’t that far from flippening the largest gold ETF, GLD ($64b),” tweeted Nic Carter of Coin Metrics.

The gold ETF that provides “physically held” exposure to the precious metal records $1.49 billion in average daily volume.

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While Grayscale clearly dominates the market, an increasing number of funds are now making an appearance. Several organizations are filing for a Bitcoin ETF, allowing institutional investors exposure to the digital asset without actually buying or holding them.

While the US has yet to get one, Canada has already had two. This week, the Ontario Securities Commission (OSC) also approved the Evolve Funds Group’s application for a Bitcoin ETF.

As we reported, the first Bitcoin exchange-traded fund, Purpose Bitcoin ETF (BTCC), was a roaring success, beating the traditional numbers. The two-day AUM is estimated to be $330 million.

On Friday, BTCC traded $350 million, a jump of 40% from its debut day and three times more volume than any other ETF, noted Eric Balchunas, Senior ETF Analyst for Bloomberg. Joe McCann, a Microsoft strategist said,

“ETFs beget liquidity, and liquidity improves price discovery and price ascent. This is historic volume in Canada for its BTC ETF. When, not if, it gets approved in the US, we will see the same thing happen.”

The US Securities and Exchange Commission has shut down all the attempts to offer Bitcoin ETF in America, so far, but there are high expectations for one under the new SEC Chairman, for which President Joe Biden has nominated Gary Gensler, who taught a class on Blockchain at MIT.

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Author: AnTy

North America’s First Bitcoin ETF Debuts on TSX with a Whopping 0 Million Volume

The first Bitcoin exchange-traded fund (ETF) of North America has had a roaring start, with $220 million worth of shares exchanged by investors on the first day of going live, which is very well above an ETF’s typical day in Canada.

While there have been several crypto-tracking products in Europe that function like an ETF, they all have been essentially ETPs. Purpose Bitcoin ETF, with a ticker BTCC, is the first Bitcoin product that’s officially labeled as an exchange-traded fund.

The new fund debuted Thursday on Toronto Stock Exchange.

This fund invests directly in “physical/digital Bitcoin,” which is currently trading above $52,000, up 76% YTD.

“There’s sizable untapped interest for a Bitcoin investment that has the benefits of an ETF,” said Todd Rosenbluth, CFRA Research’s director of ETF research, adding it’s unlikely the fund will trade at a significant premium to net asset value (NAV). He added,

“While most ETFs come to market globally with an educational hurdle to overcome, many investors are familiar with what is inside BTCC.”

Meanwhile, the US hasn’t approved a single Bitcoin ETF, although there have been several active filing for the product, including VanEck Associates Corp., NYDIG, and Bitwise Asset Management.

But with the change in leadership at the US Securities and Exchange Commission (SEC), the prospects of the first American Bitcoin ETF are rising. President Joe Biden’s nominee for SEC chairman, Gary Gensler, has the crypto market hopeful and excited as he has taught a class at MIT’s Sloan School of Management called “Blockchain and Money.”

Crypto-related products like Grayscale Bitcoin Trust (GBTC) and Bitwise 10 Crypto Index Fund have seen great demand with $34.22 billion and $900 million in assets under management, respectively.

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Author: AnTy

Diem’s New Payment Solution With FireBlocks & First DAG Hints at a Possible Late 2021 Launch

Diem’s New Payment Solution With FireBlocks & First DAG Hints at a Possible Late 2021 Launch

Diem, formerly known as the Libra Association, announces a partnership with Fireblocks and the Israeli-based First Digital Asset Group (DAG) to launch a payment solution for institutions, merchants, and payment networks. The network is expected to power Diem into the largest payment network, allowing global financial institutions to connect to the system directly.

In a joint release from a crypto custodian, Fireblocks and First DAG, the new payment solution will be launched in the coming six months. It will allow financial institutions, banks, PSPs, merchants, and e-wallets to connect and facilitate transactions on the Diem network as soon as it launches.

The Facebook-led Diem Network was unveiled back in 2019, offering a multi-currency-backed stablecoin and global payment system. However, regulators worldwide are skeptical of Diem’s role in the global monetary policies – given the 2.8 billion customers that Facebook and WhatsApp have on their platforms.

The new project will be integrated on First DAG and Fireblocks, giving access to payment stations and merchants who will use Diem. According to First CEO, Ran Goldi the payment solution will allow merchants to accept stablecoins and Diem without ever interacting with the tokens. First will deal with the payment backstage details while the merchant receives their payment in their local currency. Goldi said,

“So if you are a merchant and you are already working with a payment service provider (PSP) that we have integrated with, you will able to accept Diem without any integrations.”

Notwithstanding, the platform will be fully compliant and collect any customer information needed – similar to regulated payment services such as PayPal and Visa. The platform will follow a strict onboarding process for custodians, wallets, exchanges, PSPs, and other VASPs operating on Diem, Michael Shaulov, Fireblocks’ CEO, said.

Spotify, a member of the Diem Network, moves to integrate the Diem payment solution in the near future. In December, the popular streaming app announced a vacant position of “Payment Strategist” in the Diem and Crypto space.

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Author: Lujan Odera

MicroStrategy Wants to Buy More Bitcoin with Another Round of 0 Million Debt

MicroStrategy Wants to Buy More Bitcoin with Another Round of $690 Million Debt

“CEO Michael Saylor is carrying out one of the highest conviction investment thesis we have seen in public markets.” – Bitcoin Bull Anthony ‘Pomp’ Pompliano

The publicly listed company has made yet another bet on Bitcoin by announcing that MicroStrategy intends to offer $600 million worth of convertible senior notes, up to an additional $90 million aggregate principal amount of the notes. The official announcement reads,

“MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoins.”

Bitcoin proponent Michael Saylor, the chief executive of MicroStrategy, has already added a total of 71,079 Bitcoin to the company’s balance sheet and is now ready to add even more. MicroStrategy’s $1.145 billion Bitcoin investment has them owning 0.38% of BTC circulating supply.

In December, the company issued convertible senior notes to raise $635 million, whose entire proceeds were used to buy Bitcoin. Veteran investor Bill Miller was one of the buyers of MicroStrategy’s 0.75% convertible bond who called this “unique purchase” a “very little downside and an almost-free call option on Bitcoin.”

Now, yet again, MicroStrategy is ready to take up more debt due 2027, to buy even more Bitcoin, which has been hitting $50,000 for two days in a row.

With the latest jump in prices, the leading cryptocurrency’s market capitalization rose above $940 billion, just a few inches away from the trillion-dollar mark.

The notes will be issued via a private offering to qualified institutional buyers, which will mature on February 15, 2027, unless earlier repurchased, redeemed, or converted and will bear interest payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2021.

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Author: AnTy

Concentration of Power is the ‘Only Real Issue’ with DOGE says Tesla’s Elon Musk

Concentration of Power is the ‘Only Real Issue’ with DOGE says Tesla’s Elon Musk

While Dogecoin’s original creator, Billy Markus, can’t comprehend the insanity going around the meme cryptocurrency’s prices, Tesla CEO will “literally pay” actual dollars to get its major holders to sell their coins.

During this week’s sell-off, the popular Dogecoin has taken the hardest beating among the top cryptocurrencies.

The meme cryptocurrency went down to $0.0473, about halving its value from last week’s high above $0.088. As of writing, DOGE/USD has found its way above $0.062, much like the rest of the crypto market, which recovered fast after the dip which has been propelled by the highly leveraged traders.

The cryptocurrency is still a long way from $1 that many degens have been targeting for this token, which its original creator Billy Markus, not Tesla CEO Elon Musk, just can’t comprehend. He doesn’t have any DOGE except what has been tipped to him recently, shared Markus in his Reddit post last week.

While Markus has nothing to do with the coin now, having left around 2015, Musk has shared his concern about the concentration of power among DOGE holders. Musk tweeted,

“If major Dogecoin holders sell most of their coins, it will get my full support. Too much concentration is the only real issue IMO,”

“I will literally pay actual $ if they just void their accounts.”

According to Bitinfocharts, 28.7% of DOGE’s supply is held by just one address, which owns more than 36.8 billion DOGE worth over $2 billion.

A mere 11 addresses hold 19.85% of coins, a total of 25 billion DOGE worth nearly $1.4 billion, while another 91 addresses have a total of 25.2 billion DOGE that is worth almost $1.38 billion.

The largest number of holders, over 1 million addresses, own between 1-10 DOGE. As per this, 87.68% of addresses hold 0% of the DOGE supply.

Dogecoin rich list

Source: bitinfocharts – Dogecoin Distribution

There are only 58 addresses that are richer than $10 million and 393 addresses that are richer than $1 million.

These numbers clearly show the ownership of DOGE is highly skewed, with very few having nearly all the DOGE coins.

And the answer to this, as one DOGE enthusiast recommended and Musk agreed with, “Whales will have to consider Elon’s ultimatum here. If they comply, Dogecoin becomes the currency of the internet. If they don’t, or “cheat” by distributing their coins across multiple wallets, then it loses Elon’s endorsement. Easy decision for the whales. Do the right thing.”

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Author: AnTy