Bitcoin price continues to trade with an advantage to bears but this does not mean investors or miners have capitulated. About 64% of the total Bitcoin mined to date has been dormant in wallets since 2018. This shows that Bitcoin hodlers do not believe in trading for short-term gains, as they anticipate much higher prices in the future. While this might be a feasible strategy for the whales, retail traders can rake up profits if they buy during periods of deep distress and sell their positions during times of euphoria.
One of the events that many hopeful investors are anticipating is Bitcoin’s block reward halving in May 2020. However, Jason Williams, co-founder at digital asset fund Morgan Creek Digital, believes that the halving will be a
The futures market provides good insight into the sentiment of larger players. If the futures volume continues to rise in a falling market, this indicates that a decline is likely to extend further. However, if the volume increases with a rise in price, this shows that the market participants are accumulating positions.
On Nov. 27, Bitcoin closed in the green and Bitcoin futures on Bakkt hit a new all-time high volume record which was 60% higher than the previous record. This shows that institutional players have increased their activity during the most recent relief rally. This points to possible accumulation at lower levels and institutional interest is likely to increase further with the launch of Bitcoin Options contracts on Dec. 9.
The theft of 342,000 Ether (ETH) from South Korean cryptocurrency exchange Upbit could have halted the current relief rally taking place in the crypto market. However, Lee Seok-woo, the CEO of Upbit’s operator, Dunamu said that the company will cover for the losses. This erased some of the initial concerns of the market participants and improved sentiment. When sentiment is negative, the markets fall quickly but take a lot longer to rise.
This week a bullish bit of news came from Bitcoin ATM firm Bitstop. The company intends to install Bitcoin ATMs at several Simon
Fear gripped the markets on the news that Chinese authorities had raided the offices of the leading cryptocurrency exchange Binance. This negated all the positive effects that had accrued following President Xi Jinping’s endorsement of blockchain technology. Though Binance denied reports of any raids, price action within the sector has remained subdued.
The Federal Reserve Board Chairman Jerome Powell has said that the Fed is not developing a central bank digital currency (CBDC), but it is conducting its own research to evaluate the benefits and limitations of such an initiative.
On the other hand, Edith Cheung, partner at blockchain-focused venture capital fund Proof of Capital, believes that China will launch its digital currency within the next six to twelve months. A CBDC by a large economy will be an interesting development.
Although Bitcoin (BTC) is not showing any trending move, Bakkt and the Chicago Mercantile Exchange (CME) Group continue to roll out products designed to attract the large traders. Bakkt recently announced that it will add a cash-settled futures contract to its existing Bitcoin-settled contract. On the other hand, the CME group plans to offer options on Bitcoin futures after receiving the necessary regulatory approvals.
Bitfinex cryptocurrency exchange is also planning to launch a slew of products, which include, options trading and a gold-backed stablecoin, to attract customers. T
Tron (TRX), the 11th largest cryptocurrency by market capitalization, has now been listed on the Poloniex cryptocurrency exchange.
Sun confirms TRX listing on Poloniex
In a Nov. 9 blog post, Poloniex cryptocurrency exchange announced that it was readying to list the decentralized cryptocurrency on its platform, which Tron CEO Justin Sun confirmed on Nov. 12 by tweeting “it’s official now.”
The crypto markets are going through a phase of uncertainty with several cryptocurrencies failing to show a firm trend. This is because the markets lack a catalyst that can either pull prices higher or plunge them lower.
However, a developing catalyst could be the launch of the China-backed central bank digital currency (CBDC). Jack Lee, a founding partner at HCM Capital, believes that China’s central bank is ready and the digital currency could be launched within the next two to three months. If this experiment is successful, it would likely force the other developed nations to follow suit.
A Bloomberg report, analyzing data from 13 top exchanges, shows that within a very short span of time, Bitcoin (BTC) futures trading volume has grown to about 50% of spot trading volume. This is the sign of a maturing asset class. Successful operation of the futures market may provide regulators with the confidence they need as many are concerned that a few entities can easily manipulate the markets at will.
The institutional players who have been staying away due to wild volatility in the crypto sector are also likely to jump in because the futures and options market provides them with a variety of tools that can be used to hedge their positions and reduce their risk.
At the peak of the ICO bubble it was a common tactic for project promoters to use big name announcements to pump their tokens. Every day we would hear about a new venture that supposedly signed a partnership with a global brand such as Microsoft or Google, to make us think that these tech giants were backing the idea. In reality most of the time it was just a trivial matter such as allowing the project to use free services from the tech giant, as countless other startups do. The tactic is still used today and crypto investors need to keep in mind that it is not a guarantee for success.