Tether, the company that manages the issuance of USDT, the largest stablecoin of the crypto market, has announced a shift in its focus on providing support to blockchains based on community interest. The company announced it would stop minting USDT tokens in two blockchains, Eos and Algorand, starting June 24. Tether Announces Change to Community-Driven […]
Bitcoin News
Bitcoin Price Drop Below $70,000 Apparently Driven By Lack Of Interest, Glassnode Data Shows
On-chain analytics platform Glassnode has provided insights into why the Bitcoin price recently dropped below ,000. The platform suggested that the flagship isn’t yet seeing enough demand, which could send its price to new highs.
Demand For Bitcoin Is Still Modest
In one of its latest market reports, Glassnode mentioned that “the rate at which new capital is flowing into the Bitcoin network has slowed down considerably from its peak.” They made this assertion based on the Realized Cap metric, which measures the value of each Bitcoin based on the last time it was traded. Glassnode claimed that Bitcoin’s Realized Cap is currently at 4 billion.
The platform further revealed that the injection of liquidity into Bitcoin has cooled off since the flagship crypto hit an all-time high (ATH) of ,750. This is in stark contrast to the period before Bitcoin hit that ATH, with Glassnode noting that the flows into Bitcoin back then were “extremely sharp, culminating at a value of .38 billion daily.”
Meanwhile, Glassnode stated that the Realized Cap “remains in positive profit-dominated territory and is returning towards an equilibrium position.” However, they noted that Bitcoin’s modest demand was still able to spark this recent rally thanks to the “declining sell-side headwinds from mature investors.”
Basically, Glassnode suggested that things were looking up for Bitcoin but that it could be way better if there were more capital inflows. There could indeed be an increase in capital inflows soon enough, considering that the Spot Bitcoin ETFs have broken their streak of net outflows and are once again recording impressive net inflows into their funds.
Data from Farside Investors shows that these funds have already seen almost 0 million in net inflows this week. Specifically, these Bitcoin ETFs recorded a net inflow of 5.7 million on May 21 alone. That day was also BlackRock’s iShares Bitcoin Trust (IBIT) most profitable day yet, with the fund taking in 0 million.
Some Positive Key Takeaways
Glassnode also assessed some other vital on-chain metrics, which provided some positives for Bitcoin’s future trajectory. The platform noted that there has been a “large decline” in Bitcoin’s Sell-Side Risk Ratio, which “suggests the market has found a degree of equilibrium over the course of this correction.”
To assess market volatility, they also measured the percent range between the highest and lowest price ticks over the last 60 days. They concluded that “volatility continues to compress to levels typically seen after lengthy consolidations and prior to large market moves.”
Meanwhile, Glasnode revealed that 2.14M BTC out of the Short-term holder (STH) supply, currently at 3.36M BTC, fell into an unrealized loss following the recent market correction. They claim that this suggests that many of the BTC held by this category of investors are held at an unrealized loss, which reduces the risk of top-heaviness developing.
Fred Ehrsam Predicts Future Crypto Growth Driven by Demographic Shifts
In a recent social media post, Fred Ehrsam, co-founder of Coinbase and crypto investment firm Paradigm, predicts that the cryptocurrency market will continue to gain momentum due to the growing influence of younger generations. He points out that ownership of crypto assets is currently highest among the 18-45 age group, with a significant drop-off after […]
Bitcoin News
Study Uncovers Surprising Data: 90% Of Stablecoin Transactions Not Driven By Human Users
In a recent report by Bloomberg, it has been revealed that more than 90% of stablecoin transaction volumes do not originate from genuine users, according to a new metric co-developed by Visa.
Stablecoin Market Faces Data Reality
Visa and Allium Labs have created a dashboard designed to filter out transactions initiated by bots and large-scale traders to isolate those made by real individuals. Out of approximately .2 trillion in total transactions recorded in April, a mere 9 billion was identified as “organic payments activity” by Visa.
The data challenges the optimistic outlook of stablecoin proponents who believe these tokens can transform the 0 trillion payments industry.
Fintech giants such as PayPal Inc. and Stripe Inc. have been exploring stablecoins, with Stripe co-founder John Collison expressing bullishness on the tokens due to “technical improvements.”
Pranav Sood, the executive general manager for EMEA at payments platform Airwallex, commented on the findings: “It says that stablecoins are still in a very nascent moment in their evolution as a payment instrument.”
Sood emphasized the need to focus on increasing existing payment infrastructure in the short and mid-term while acknowledging the long-term potential of stablecoins.
Accurately tracking crypto activity’s “real” value using blockchain data has always been challenging. Glassnode, a data provider, estimates that the record trillion assigned to digital tokens at the bull market’s peak in 2021 was closer to 5 billion.
Analysts Predict Massive Surge Ahead
According to Bloomberg, the nature of stablecoin transactions often leads to double-counting, depending on the platform users employ for fund transfers. For example, converting 0 of Circle’s USDC stablecoin to PayPal’s PYUSD on the decentralized exchange (DEX) Uniswap would result in 0 of total stablecoin volume being recorded on-chain.
Visa, which processed over trillion the previous year, could suffer if stablecoins gain widespread acceptance as payment.
Interestingly, despite this troubling data, analysts at Bernstein predicted that the total value of all stablecoins in circulation could reach .8 trillion by 2028, nearly 18 times their current combined circulation.
While PayPal and Stripe have made strides in adopting stablecoins, Airwallex has observed limited demand for stablecoin-based payment solutions among its customers, primarily due to concerns about “user-friendliness.”
Sood emphasized the significant barrier of overcoming entrenched payment methods, citing the continued use of checks for 40% to 60% of business payments in the United States.
The Bloomberg report sheds light on the dominance of non-genuine user activity in stablecoin transactions. The study underscores the importance of improving existing payment infrastructure and addressing user-friendly concerns to unlock the long-term potential of stablecoins.
Featured image from Shutterstock, chart from TradingView.com
Will Bitcoin Break $74,000 Driven By TradFi FOMO?
Willy Woo, an on-chain analyst, believes the Bitcoin upswing is far from over. Citing the development in the Bitcoin Macro Oscillator and the possibility of traditional finance jumping on the bandwagon (FOMO), the odds of BTC rallying in at least two strong legs up in the coming session could not be discounted.
On-Chain Data Signals More Upside For Bitcoin
In a post on X, Woo remains confident about what lies ahead for the world’s most valuable cryptocurrency. Based on on-chain development, there are indicators that the coin may firmly push higher, breaking above the current lull.
Bitcoin remains mostly range-bound when writing, trading within a tight zone capped by ,800 on the upper end and ,000 as immediate support. Even with analysts being confident of what lies ahead, the coin has failed to overcome strong selling momentum from sellers to breach all-time highs in a buy-trend continuation.
From how the coin is set up, the current sideways movement may be accumulation or distribution, depending on the breakout direction. For instance, any upswing above ,400 might spur demand, lifting the coin towards ,800. Conversely, losses below ,000 and the middle BB might see BTC slump to March 5 lows or even lower.
Will TradFi FOMO And Short Squeeze Lift BTC?
Even with the slowdown in upside momentum, Woo says there is strong potential for “another solid leg up.” The analyst also added that there could be two surges if TradFi investors “FOMO” into Bitcoin. In the 2017 bull run, the rally to ,000 was primarily due to retailers jumping in and FOMOing on the coin.
With spot Bitcoin exchange-traded funds (ETFs) available in the United States, speculation is that more institutions and high-net-worth individuals are buying the coin. If BTC rips higher, breaking ,000, more inflow will likely be into the multiple spot Bitcoin ETFs, fueling demand.
This bullish outlook comes when other analysts expect Bitcoin to surge in the sessions ahead. In a post on X, one analyst says the incoming short squeeze will likely propel the coin above March highs. Whenever a short squeeze happens, prices rise, forcing sellers to buy back at higher prices, accelerating the uptrend.
The assessment is behind a record-breaking gap between institutional investors betting on price increases and hedge funds selling the coin.
Performance of AI-Related Crypto Tokens Driven by News and ‘Memetic Speculation’ — Coinbase
Since the beginning of the last quarter of 2023, artificial intelligence (AI)-related crypto tokens have not only outperformed the top two crypto assets but have also outpaced key AI stocks such as Nvidia and Microsoft. According to a report by Coinbase, much of this market-beating performance of AI-related tokens can be attributed to AI headline […]
Bitcoin News
Ethereum Aims For $10,000, Driven By 2 Key Factors, According To Experts
Ethereum is emerging as the vanguard for a revolutionary financial system. Advocates of the second most valuable blockchain extol the virtues of smart contracts, envisioning a future marked by market transparency, tokenized funds, and expeditious settlement times.
At the time of writing, Ether was trading at ,780, up 2% and 8% in the daily and weekly timeframes, data from Coingecko shows.
Ethereum’s Untapped Institutional Potential
Experts argue that Ethereum is yet to undergo its institutionalized hype cycle, lagging behind the fervor witnessed by Bitcoin.
Robby Greenfield, the visionary co-founder and CEO of Umoja Labs, foresees a significant uptick in institutional interest in Ethereum, particularly fueled by the impending Bitcoin halving and the cascading inflows from Bitcoin ETFs.
Greenfield’s bold prediction places Ethereum on a trajectory to narrow the gap with Bitcoin’s gains, asserting that the cryptocurrency could surpass the ,000 milestone this year.
Institutional investors, he believes, will play a pivotal role in propelling Ethereum to new heights, bringing about a surge in buying pressure.
Regulatory Crossroads: The SEC’s Stance On Ethereum ETFs
While optimism runs high, the path to Ethereum’s ascendancy is not without regulatory hurdles.
The US Securities and Exchange Commission, led by Chair Gary Gensler, may adopt a cautious approach toward approving an Ethereum ETF, unlike the relatively smoother approval process witnessed with Bitcoin ETFs.
Gensler’s hesitance stems from a history where the SEC reluctantly gave the nod to Bitcoin ETFs after a legal battle with Grayscale.
The SEC is set to scrutinize Ethereum ETF applications, including those from financial giants BlackRock and Fidelity, in May.
Despite industry expectations, the approval odds vary, with Polymarket estimating a 43% likelihood and JPMorgan offering a more optimistic 50% chance.
Ethereum’s Catalyst: The Dencun Upgrade
JPMorgan highlights a potential catalyst for Ethereum’s growth—the Dencun upgrade. Crafted to enhance scalability by reducing costs for various rollup solutions, this upgrade facilitates the batching of crypto transactions into smaller data chunks settled on the Ethereum network.
Unlike Bitcoin’s programmed scarcity with a capped token supply of 21 million, Ethereum’s supply remains infinite, presenting a unique dynamic in the crypto landscape.
Eugene Cheung, Bybit’s head of institutions, underscores the positive implications of the Dencun upgrade for Ethereum supporters.
With layer 2 solutions built on top of Ethereum, the blockchain is evolving into a settlement layer for a novel digital infrastructure spanning gaming, trading, and investing.
In the eyes of some, the looming decision on Ethereum ETFs is just the opening act.
Bloomberg ETF analyst Eric Balchunas dismisses an Ethereum ETF as “small potatoes,” characterizing it as an underwhelming prelude to more substantial developments within the crypto sphere.
Featured image from Pexels, chart from TradingView
Bitcoin Cash Bulls Charge: 13% Price Rally Driven By Fresh Demand
The price of Bitcoin Cash has experienced significant rise over the course of the last 30 days, resulting in favorable returns for investors. Since July, BCH holders have continuously maintained a positive perspective, which has reduced the frequency of selling activity. This collective sentiment has played a significant role in the upward trajectory of BCH, consequently yielding favorable outcomes for these holders.
The price of BCH has increased by about 13% over the previous week, giving it some of the biggest gains in the last seven days for cryptocurrency assets. According to CoinMarketCap data, the altcoin was trading at 4.78 at the time of publication.
The value of the world’s cryptocurrency market dropped to .06 trillion at the time of writing, a 0.1% decrease in a day. On Thursday, ETH increased by about 0.8% to ,629, while Bitcoin (BTC) rose slightly above the K level.
Can Bitcoin Cash Reach New ATH This Year?
BCH is anticipated to undergo a trial of the support line at a value of 9, after which a subsequent rebound is projected. The breach of the current barrier at 3 is crucial for the potential rise of the altcoin. If this level is surpassed, it might pave the way for the altcoin to achieve new 2023 highs, beyond the 0 mark.
Bitcoin Cash has increased by a remarkable 90% in the last six months, demonstrating strong performance. Furthermore, the price of BCH has been up significantly by 136% so far this year, maintaining a favorable return.
Santiment research indicates that whales in the cryptocurrency space have increased their holdings in Bitcoin Cash significantly. Collectively, bitcoin whales with holdings ranging from 100,000 to 10 million BCH held 3.74 million BCH as of September 18, 2023.
Long-Term Holder Addresses Up
But on September 26, their holdings had increased to 3.86 million BCH, showing a noteworthy acquisition of 120,000 BCH in just one week. Their balances are now comparable to what they were in July 2023 thanks to this accumulation, and the 120,000 BCH that the Bitcoin Cash whales purchased are worth about .6 million at the current market price of 3 per BCH.
Meanwhile, the increase in long-term holders of Bitcoin Cash indicates a positive outlook for the cryptocurrency’s sustainability. These committed investors, who believe in BCH’s long-term potential, contribute to a stable user base and network demand. This support from long-term holders, combined with whale accumulation, could help BCH reach or exceed 0 in the future
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from iStock
Global Debt Spikes to Record $307 Trillion Driven by US, Developed Nations
The world’s debt has surged to a record high level in the second quarter, according to the Institute of International Finance (IIF). The increase has also helped lift the global debt-to-GDP ratio which had been declining for seven quarters but is now projected to reach 337% by the end of this year.
Major Markets Behind Latest Surge in Global Debt, Slower Growth and Inflation Cause Debt Ratio Rise
Global debt has hit a record 7 trillion in Q2 of 2023, jumping by trillion in the first half of the year despite rising interest rates that have been curbing bank credit, Reuters and Bloomberg informed, quoting a report by the IIF.
On Tuesday, the financial services trade group, which represents the world’s largest international banks and financial institutions, further pointed out that world debt has ballooned by a “staggering” 0 trillion over the past decade.
Debt has also resumed its increase as a share of the global gross domestic product (GDP), climbing to 336% from 334% at the end of 2022, and is expected at around 337% by the end of this year. The ratio rise, attributed to big budget deficits, slower growth and decelerating inflation, comes after almost two years of surging prices, the authors remarked and explained:
The sudden rise in inflation was the main factor behind the sharp decline in debt ratio over the past two years.
This year’s spike in global debt has been mainly caused by developed economies, which account for over 80% of the increase, with the U.S., where federal debt has exceeded trillion according to a recent report, Japan, the U.K., and France having the highest rises. The largest emerging economies, China, India and Brazil in particular, have registered increases as well.
“As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase,” the IIF elaborated. Interest rates in the United States are expected to remain high for a long time, limiting investment in emerging markets.
On a positive note, the IIF highlighted the lowest level of household debt as a share of advanced economies in two decades. “Should inflationary pressures persist in mature markets, the health of household balance sheets, particularly in the U.S., would provide a cushion against further rate hikes,” the organization commented.
Do you think global debt will continue to increase in the near term? Share your thoughts on the subject in the comments section below.
Bitcoin Rally Driven By Coinbase Users? Premium Would Say So
The Bitcoin Coinbase Premium Gap has been positive during the past few days, implying the surge above ,000 may be driven by the platform’s users.
Coinbase Users Have Been Participating In Aggressive Bitcoin Buying Recently
In a new post on X, the CryptoQuant Netherlands community manager, Maartunn, has pointed out how there appears to have been buying going on at Coinbase recently.
The relevant indicator here is the “Coinbase Premium Gap,” which keeps track of the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase and Binance.
The former platform is more popular among US-based investors (including large institutional holders), while the latter receives more global traffic. As such, the Premium Gap’s value may provide insight into how the behaviors of these two audiences differ.
When the value of this metric is positive, it means that the price on Coinbase is greater than that on Binance right now. This would imply that the American investors have either been applying a higher buying pressure or a lower selling pressure as compared to the global users.
Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the last few days:
As displayed in the above graph, the Bitcoin Coinbase Premium Gap had been negative earlier in the month, implying that Coinbase users had been selling more than Binance users.
The metric had turned especially deep in the leadup to and during the plunge towards the ,000 level, suggesting the selloff was driven by the American holders.
During the recovery that had followed, the Premium Gap had turned positive, but only after a delay, implying that the US-based investors didn’t initially contribute towards the surge.
Since then, however, the indicator has remained at notable positive values, meaning that the platform’s user base has been constantly accumulating the cryptocurrency.
From the graph, it’s visible that the buying on Coinbase appears to have only ramped up during the past couple of days, as the Premium Gap has observed a sharp spike.
The timing of this surge could indicate that the US-based investors are the ones helping the asset’s recent growth beyond the ,000 level. This is a good sign, naturally, as strong buying pressure from the US institutional holders could provide the appropriate fuel for the cryptocurrency to retest higher levels.
It now remains to be seen whether the Bitcoin Coinbase Premium Gap would continue to remain at positive values in the coming days, or if buying would cool down on the platform.
BTC Price
Bitcoin had observed a sharp drop from the ,200 level to ,600 yesterday but has since made a swift recovery back to the mark, as the below chart displays.