Author Archives: Andrew Johnston

Bitcoin Attempts to Steady Following Rout as Long-Term Bulls Maintain Bets

After a weekend of volatility, Monday saw a rebound as risk sentiment returned. This was due to easing concerns over Omicron coronavirus variants and signs that long-term investors were still firm.

After falling to $45,032 on Saturday, the price was flat at $49146.5

With early signs that the Omicron variant Covid-19 is not as fatal, investors have increased their appetite for risk assets.

Data showing that long-term bitcoin holders retained their bullish bets even during the recent selloff helped to ease macroeconomic worries.

Glassnode reported that only 2.63% of the older coin supply was sold into this group [bitcoin traders holding BTC for less then three months] since October 27.

The weekend’s bitcoin rout was likely driven by short-term traders who had leverage to fuel bullish bets.

According to the report, these investors are likely to have bought their coins at the tops and are now spending them [at loss] to buy new investments.

Some pointed out that funding rates, which is the cost of holding long futures positions on exchanges, was nearing neutral as an indicator that there was a wild swing or volatility event.

Investors rushed to close leveraged positions in the selloff that followed. The perpetual funding rate plunged to -0.035% for the first time in more than two months.

Sometimes, a reset in the funding bias can be a change of sentiment. It can take up to weeks to shift.

Glassnode stated that the trend of the previous funding reset in July didn’t reverse until October, which coincided with the record rally for Bitcoin.

BTC bulls might feel some comfort if the price action continues to be volatile.

“[O]ver 97% have remained unspent from the recent pullback and all-time high. Glassnode said that HODLers of older coins don’t spend them.

 

Bitcoin Heads For Worst Week In Months As Mt Gox Payouts Loom

Bitcoin dropped to a one month low Friday, and was heading for its worst week since June. This happened because traders had taken profits from a long rally but were scared by the possibility that Mt Gox’s creditors might liquidate their funds.

Bitcoin, the largest cryptocurrency in market value, was at its lowest point since mid-October, and it was trading at $55,980, mid-session Asia. This is 20% lower than last week’s record high.

Matthew Dibb (chief operating officer of Stack Funds, a crypto asset manager based in Singapore) said that selling pressure has been constant and that it will continue until the token is supported at $53,000.

Bitcoin has dropped 14% over the past week and is now at its 50-day moving mean. It has risen more than 90% in the past year.

Dibb stated that there was profit taking, and concern about further selling after a Tokyo court approved plans to repay creditors Mt Gox. This is a crypto exchange that collapsed in 2014 after it lost half a million dollars in bitcoin.

“Those who are affected will be given a large amount of bitcoin. This is likely to happen in Q1 or Q2 2022. He said that this has caused some fear in the market over the longer term, based on the expectation of those creditors being sellers.

Ether, the second-largest cryptocurrency in market value, was steady at $4,014 for Friday, but it is expected to lose 14% per week.

Both bitcoin and ether have also suffered from the cautious mood on global markets in recent days, amid concerns about economic growth and interest rates.

Edward Moya, an OANDA analyst, stated that Bitcoin’s long-term outlook is bullish.

“But, the waters will be rough over the next few months as institutional investors watch to see if Fed will be forced sooner to raise rates and trigger a broad-based sale of risky assets like bitcoin.

Bitcoin Fans Celebrate the 13th Anniversary of Its Seminal White Paper

NYDIG, a Bitcoin-focused financial service firm, announced the acquisition by Bottlepay, a payments app that leverages the Bitcoin Lightning Network. Bottlepay makes small and frequent payments possible for consumers and businesses in Europe. The financial terms of the deal were not disclosed.

In a joint declaration, Ross Stevens, the founder and executive chairman at NYDIG and Robert Gutmann (co-founders and CEOs of NYDIG), stated that they believe the next chapter in Bitcoin will be all about Bitcoin – big B – the network. “NYDIG’s mission is to bring bitcoin to everyone, and this acquisition takes us one step closer to that goal. We are thrilled to welcome Bottlepay into the NYDIG family.

Bottlepay, a U.K.-based platform that allows Europeans to transact BTC via Lightning over social media platforms. Users must mention the accounts of the payment company and the receiver. This platform was established in 2019 and allows users to instantly send euros and pound sterling without any fees.

Pete Cheyne, founder of Bottlepay, stated that he wanted to create the financial infrastructure for the future. “We believe that we have done it in a way which will revolutionize payments and make it more fair for all, from creators and small businesses to consumers. We are excited to join NYDIG, an industry leader who shares our vision of the future money.

NYDIG acquired Bottlepay to integrate its Lightning Network infrastructure into their full-stack Bitcoin platform. NYDIG offers tailored Bitcoin services to institutional investors and high net-worth individuals, including brokerage and financing.

Morgan Stanley CEO says bitcoin isn’t a large part of the bank’s business, but admits crypto is more than just a ‘fad’

James Gorman, CEO of Morgan Stanley, says that crypto isn’t an important part of their business, but he acknowledges that it’s more than a passing trend.

Gorman made these comments during the company’s third quarter earnings call. This was after an equity analyst had asked Gorman how the bank would engage clients about digital assets.

The CEO responded that Morgan Stanley doesn’t trade cryptocurrencies directly for retail clients, unlike its competitors. However, it does give them access to digital assets through funds.

He stated, “It’s just a small part of our business demand from clients, and that may change, and we’ll adapt with it.”

He admitted that crypto was not a fad.

“I don’t believe it’s going away.” While I don’t know the bitcoin value, these things won’t go away. After the company reported earnings that beat, he stated that the blockchain technology supporting was evidently very real and powerful. This was due to an increase in equity trading and investment banking.

Gorman stated that cryptocurrencies are a work space for the bank. He added, “We’re watching it, we respect it, and we’ll watch and wait to see how regulators handle it.”

Other market leaders have also avoided cryptocurrencies due to regulatory uncertainty. Jamie Dimon, CEO of JPMorgan, called bitcoin “worthless” this week.

For months, regulators have struggled with how to manage. Recently, the Fed stated that it does not intend to ban crypto and the US Securities and Exchange Commission indicated that it is currently working on a regulatory framework. The closest thing so far to a US Bitcoin ETF was approved by the SEC last week.

Walk-in cryptocurrency exchanges emerge amid bitcoin boom

A fledgling type of store is located in Mississauga’s small business park. It is near a dentist and a Pizza Hut. The store looks like a small bank or currency exchange operation. It has a brightly lit waiting room, a reception desk, and cubicles that are surrounded with bullet-resistant glass.

Coin Nerds Inc. is able to offer visitors something that financial storefronts usually do not: cryptocurrency.

The store opened in 2018 and is owned by a few entrepreneurs who believe that virtual currency can be used offline as well as on Main Street.

Adam Hack, chief executive officer and founder of Coin Nerds stated, “We allow individuals of all walks of life, without the hurdles that are associated with attempting to join self-service online exchanges or the technological barriers that some people might perceive,”.

Although each brick-and-mortar cryptocurrency exchange operates in a different way, the basic idea is that customers can buy cryptocurrencies using cash, a debit card, or a bank transfer. The shops teach customers about digital currencies and help them set up digital wallets that they can control via an app. Customers can also exchange digital coins for local currency at the exchange counter.

Exchanges may charge fees of 0.99% to 5% per transaction. This is slightly higher than the charges for large online exchanges.

According to their owners, physical exchanges make it easier to buy and sell cryptocurrency. Usually, this happens via online exchanges like Binance Holdings Ltd. or Coinbase Global Inc. These platforms are popular, but they can be confusing for those not well versed in crypto markets. Mr. Hack stated.

We noticed that crypto has a high attrition rate. People will either put $500 or $1,000 in to an exchange but don’t know how to use it or simply say “This is too complicated for my taste.” He said, “I’m out.”

Customers can talk to someone immediately at a staffed crypto exchange. Online exchanges have been criticised for slowing down in responding to customer complaints. Trust is also built in the crypto industry by the physical presence of physical storefronts. This makes it less likely that scammers will be able to exploit the unregulated sector. Baptiste Lac, cofounder of Comptoir des Cybermonnaies (a physical exchange owned and operated by Satoshi Dev SAS, Bordeaux, France) said.

“When a newcomer, especially a traditional investor, arrives, they can check Google to verify that we are licensed by French regulators. They can then spend the large amount they don’t feel safe spending online.

Comptoir des Cybermonnaies, unlike Coin Nerds does not accept cash. It is afraid of being caught in money-laundering schemes, and disinclined of severing the open-plan layout of the store.

Bitcoin Store is a chain made up of three physical exchanges located in Croatia. It accepts crypto cash.

Mario Radosevic (chief marketing officer at Digital Assets d.o.o.) said that Croatia, although it is not part the eurozone and uses kuna as its currency, is still cash-heavy. He is also the chief marketing officer for Digital Assets d.o.o. which owns the Bitcoin Store. He said that a physical exchange would open up the crypto market for cash-carrying Croatians who often distrust banks. He said that it also serves as a billboard for business and offers an online service. This allows curious locals to ask questions about crypto.

The crypto ATMs allow users to buy and sell cryptocurrency using cash or a bank card. This gives consumers another way to interact with currencies that cannot be touched. El Salvador has 200 crypto ATMs, making it the country’s first to legalize bitcoin. According to Nayib Bukulele, Salvadoran President, citizens can withdraw crypto funds in cash at 50 branches of Chivo.