In its latest “Halving Handbook,” Coinbase Institutional draws striking comparisons between the upcoming Bitcoin halving and the market cycle from 2018-2022, offering insights into the potential impacts on the crypto economy. Coinbase’s Halving Handbook The next Bitcoin halving, set for mid-April 2024, is poised to slash miner rewards from 6.25 BTC to 3.125 BTC, a […]
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These Are The Altcoins Drawing Whale Interest, Santiment Reveals
The on-chain analytics firm Santiment has revealed some altcoins currently witnessing high interest from the whales.
Whale Transactions Have Spiked For These Altcoins Recently
In a new post on X, Santiment has discussed how several altcoins have been showing interest from the whales. The on-chain indicator of relevance here is the “Whale Transaction Count,” which keeps track of the total number of transfers carrying a value of at least 0,000 taking place every day on the blockchain for any given cryptocurrency.
Such large transfers are generally assumed to be coming from the whale entities, as they can only move around amounts this large with single transactions.
When the metric’s value is high, the whales make many transfers. This trend implies that these humongous investors are highly interested in trading around the asset in question.
On the other hand, the low indicator suggests the whales may not be paying attention to the cryptocurrency as they aren’t making that many moves on the network.
Now, here is the chart shared by the analytics firm that shows the trend in the Whale Transaction Count for some altcoins over the past month:
As displayed in the above graph, these five altcoins have all seen some boost in their Whale Transaction Counts recently: Injective (INJ), Rocket Pool (RPL), PlayDapp (PLA), STP (STPT), and Basic Attention Token (BAT).
Given this close surge in the indicator for all of these assets, it would appear possible that the whales have now started playing around with alts after gaining confidence from the sharp rally that Bitcoin has enjoyed.
Now, what does this fresh whale interest mean for these altcoins? Usually, a high value of the Whale Transaction count is a predictor of volatility for any cryptocurrency.
This is because the whales’ transfers carry a significant value. Of course, any single transaction will likely not be big enough to move the market appreciably on its own, but if many such transfers occur at once, the asset could feel some turbulence.
However, any such volatility that may arise out of this high whale trading activity can theoretically go in either direction. The Whale Transaction Count only measures the pure number of large transfers happening on the network and doesn’t provide any information about whether these are buying or selling moves.
As such, the only thing that can be said about these altcoins observing high interest from these humongous holders is that they are now more likely to display some volatility, the direction of which is uncertain.
INJ Price
The 31st-placed coin in the market cap list, Injective, is trading around after going up more than 4% in the past week.
Crucial On-Chain Metric Signals a Bitcoin Bull Run May Be Drawing Near
As the price of Bitcoin has risen and more individuals have entered the space, an increasing number of BTC has been held in exchange addresses. This trend is likely a byproduct of the arrival of less-technically inclined investors, coupled with the rise of altcoins.
Fortunately for bulls, data shows that the aggregate amount of Bitcoin on exchanges has begun to decrease at a rapid clip. This bodes well for the market because a decrease in exchange balances suggests there has also been a decrease in selling pressure.
Related Reading: Crypto Tidbits: Twitter’s “Bitcoin Scam,” Elon Musk & Dogecoin, Institutions Want BTC & ETH
BTC Continues To Leave Exchanges En-Masse
According to data from blockchain analytics firm Glassnode, the balance of all major exchanges (Coinbase, Kraken, Bitfinex, more) has declined from ~2.85 million BTC in February to ~2.6 million today.
The last time this metric saw such a strong move lower (percentage speaking) was in 2016. What happened after this, of course, was the 2017 bull run that took Bitcoin from ,000 to ,000.
Chart from Glassnode, a blockchain analytics firm, of the aggregate number of BTC held by exchanges. Chart shared by Unfolded (@Cryptounfolded on Twitter).
The bullish implications of movements in exchange balances have been echoed by Ki-Young Ju, the chief executive of Crypto Quant.
As reported by NewsBTC, the industry executive said earlier this week that his company’s analysis of exchanges’ reserves suggests Bitcoin is in a macro accumulation phase:
“We are in the #BTC accumulation phase. The 30- and 90-day moving average gap of all exchanges’ reserve represents the downside risk. It hit a record low in May this year and is still below zero.”
Chart of Bitcoin’s price action plus the “gap of all exchanges’ reserve” from the CEO of CryptoQuant, Ki Young Ju.
According to Ki Young Ju, whenever exchange reserves looked as they did now, Bitcoin performed well in the months afterward.
“Looking at the history of Bitcoin since 2015, we can see that whenever it touches zero or going negative, the downside Risk decreases, meaning the accumulation phase,” Ki Young Ju further explained.
Related Reading: BTC Just Confirmed a Signal That Preceded Historical 5,000% Rallies
Why This Is Bullish For Bitcoin
The reason why a decreasing amount of BTC held by exchanges is bullish is due to the supply-demand dynamics of a market.
Assuming there is consistent demand, a decrease in Bitcoin deposited in exchange wallets will mean there is less supply, resulting in an upward shift in the equilibrium price of BTC.
Add this to the fact that BTC underwent its latest block reward halving in May, which decreases supply further, and Bitcoin seems primed to appreciate.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Crucial On-Chain Metric Signals It's Growing Easier to Push BTC Higher
3 Trends Are Drawing Wall Street to Bitcoin and Crypto: Fidelity Survey
Over the past few months, we’ve seen a strong uptick in institutions adopting Bitcoin and crypto-assets.
Nothing shows this as well as Grayscale’s Bitcoin Trust, a leading way that institutional investors can use to gain exposure to cryptocurrency. According to NewsBTC’s research, the trust brought in 62,972 BTC over the past 12 weeks. Over that same time frame, 125,368 coins were mined.
That’s to say, a single firm on behalf of its institutional clients was responsible for buying 50% of all the BTC mined over the past three months.
62,972 Bitcoin has been added to Grayscale's Bitcoin Trust over the past 12 weeks.
Over the same time frame, 125,368 BTC was mined.
Institutional investors are accumulating vast amounts of Bitcoin. Now add exchanges and the halving into the mix. pic.twitter.com/zueQphXXfl
— Nick Chong (@_Nick_Chong) June 8, 2020
Adding other venues like Bakkt and spot markets into the mix, and it’s clear that there is strong demand for cryptocurrency from Wall Street players.
According to Fidelity Investments, there are three reasons why institutions have suddenly increased their involvement in the crypto industry.
Related Reading: Crypto Tidbits: 0M of Bitcoin Liquidated, Ethereum DeFi Adoption Limited, Bloomberg Is Bullish
What Is Drawing Institutions to Bitcoin and Crypto?
On June 9th, trillion asset manager Fidelity Investments released its second annual survey of institutional investors on digital assets.
Along with discovering that 36% of institutional respondents have some sort of exposure to the crypto market, the survey found the reasons why Wall Street sees promise in this market. They are as follows:
Cryptocurrencies are largely uncorrelated with other asset classes
Cryptocurrencies and blockchains are “an innovative technology play”
Digital assets have “high potential upside”
Goldman Sachs Begs to Differ
While many institutions are flooding into the Bitcoin and crypto markets seeking the aforementioned benefits, certain executives of Goldman Sachs recently begged to differ.
In a client call conducted on May 27th, the analysts said that they don’t think Bitcoin has a place in a balanced portfolio. They argued that digital assets don’t provide diversification benefits, don’t rally due to inflation, and don’t produce cash flow like equities.
“We don’t recommend gold on a strategic or tactical basis for clients’ investment portfolios. We don’t recommend bitcoin on a strategic or tactical basis,” was the presenters’ conclusion on BTC.
Warren Buffett, too, is skeptical of this nascent asset class.
The billionaire investor, known as the “Oracle of Omaha” due to his track record, has come out against Bitcoin multiple times over the past few years.
Most recently, Buffett remarked that he thinks cryptocurrencies “basically have no [intrinsic] value,” arguing that their only use is to be sold to someone at a higher price. This echoes the time he remarked that BTC doesn’t have much more value than a button on the suit he was wearing.
These latest comments come a year after he branded Bitcoin an asset for “charlatans.”
Related Reading: Last Time This Formation Was Seen, Bitcoin Peaked at ,500. It’s Back Again
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
3 Trends Are Drawing Wall Street to Bitcoin and Crypto: Fidelity Survey
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Drawing a Line on Internet Restrictions Using Blockchain Technology
If you have heard of or used cryptocurrencies, you probably did so due to its privacy features. And, these very features allow people to keep their private information secret while sending and receiving funds over the internet, which has become the most exploited use case of digital currencies. However, imagine a world where all the … Continue reading Drawing a Line on Internet Restrictions Using Blockchain Technology
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