According to CryptoQuant, All Available Bitcoin Is Being Purchased

Audy Castañeda
-
0
According to CryptoQuant, All Available Bitcoin Is Being Purchased

Bitcoin demand soars, with monthly figures jumping from 40,000 to 213,000 BTC, driven by increased accumulation. US ETFs excluding GBTC have contributed to this surge in demand, with their BTC balances growing significantly. Bitcoin liquidity has reached all-time lows, and the current sell-side liquidity is estimated to be bullish for BTC prices.

Bitcoin is facing a severe liquidity crisis as demand for the digital currency soars to unprecedented levels.

According to CryptoQuant analysts, monthly demand has skyrocketed from 40,000 BTC at the beginning of the year to a staggering 213,000 BTC today. This increase is attributed to the increasing total accumulation address balance, indicating increased investor interest in securing Bitcoin.

Bitcoin Liquidity Crisis Hits Crypto Market, CryptoQuant Says

Bitcoin exchange-traded funds (ETFs) in the United States contribute significantly to the increase in demand for BTC. These ETFs, excluding GBTC, have seen their BTC balances increase dramatically. In fact, from February 25 to March 17, their balances went from 117,000 to 185,000 BTC. This trend reflects the crucial role that institutional investments through spot ETFs are playing in amplifying demand for Bitcoin.

Additionally, the appetite for Bitcoin among large holders, or “whales,” is also experiencing a parabolic rise. The year-over-year growth of the total balance of Bitcoin whales – those holding between 1,000 and 10,000 BTC – has reached an all-time high of 1.57 million BTC, marking a significant acceleration from 874,000 BTC at the beginning of 2024.

At the same time, Bitcoin sell-side liquidity is experiencing a downward trend. The total visible amount of Bitcoin on key entities has dropped to 2.7 million BTC. This marks a sharp decline from the all-time high of 3.5 million BTC reached in March 2020.

Record Demand for Bitcoin (BTC) According to CryptoQuant

The imbalance between record demand and dwindling seller liquidity has led to an all-time low in liquid Bitcoin inventory. Estimates suggest that sellers’ current liquidity can only meet growing demand over the next twelve months, assuming demand from accumulation directions.

This situation becomes even more critical when taking into account the delisting of Bitcoin from exchanges outside the United States, reducing liquid inventory to just six months of demand. This exclusion is based on the premise that US Bitcoin Spot ETFs primarily source Bitcoin from within the country:

“Record demand for Bitcoin, coupled with declining seller liquidity, has caused liquid Bitcoin inventory to plummet to its lowest level in terms of months of demand… Declining liquid inventory would support higher prices.”

The convergence of these factors points to a bullish future for the price of Bitcoin. In fact, Ki Young Ju, CEO of CryptoQuant, added that in these conditions corrections imply things. For example, prices “imply a maximum drawdown of around 30% in bull markets, with a maximum pain of $51,000.”

On March 22, CryptoQuant’s CEO posted the following on X:

“Bitcoin spot ETF net flows are slowing. Demand may rebound if the $BTC price approaches critical support levels. New whales, mainly ETF buyers, have a $56K on-chain cost basis. Corrections typically entail a max drawdown of around 30% in bull markets, with a max pain of $51K.”

Bitcoin Halving Coming Soon

The upcoming bitcoin halving event is a major driver that is expected to boost the price of BTC, ushering in a parabolic uptrend.

With approximately 4,450 blocks left, the estimated time remaining would see the fourth bitcoin halving take place on April 20, which would reduce mining block rewards by 50% from 6.25 BTC to 3.125 BTC.

By Audy Castaneda

Resurgence of Interest in Cryptocurrencies Among Goldman Sachs Clients

Leonardo Perez
-
0
Resurgence of Interest in Cryptocurrencies Among Goldman Sachs Clients

Goldman Sachs sees significant uptick in hedge fund client interest in cryptocurrencies ahead of Bitcoin halving event. The bank is expanding its clientele to include asset managers and digital asset companies, with Bitcoin derivatives as a primary focus. The data suggests that Bitcoin’s value could skyrocket after the halving, supported by the stock-to-flow model that predicts a rise to $130,000.

Global investment bank Goldman Sachs indicated that hedge funds have experienced a notable increase in demand for cryptocurrency-related products, following the approval of Bitcoin ETFs in the United States.

Specifically, the approval of ten new Bitcoin spot ETFs in the United States in January has led to an increase in hedge funds’ “interest and activities” in crypto markets, according to a Bloomberg report citing Max Minton, head of Asia Pacific digital assets at Goldman Sachs.

Minton pointed out that “Last year was a quieter year, but since the beginning of the year we have seen an increase in client interest in terms of incorporation, portfolio and volume.”

According to the report, this approval has sparked growing enthusiasm among investors, who see cryptocurrencies as an opportunity for diversification and potential returns in their investment portfolios. The entry of hedge funds into this emerging market highlights the growing acceptance and adoption of cryptocurrencies in the traditional financial sphere.

In fact, although Goldman Sachs launched its first crypto trading desk in 2021, it does not currently offer spot cryptocurrency products to its clients. The desk focuses on providing exposure to crypto derivatives, such as Bitcoin and Ethereum futures and options.

Crypto Boom in Hedge Funds Following Approval of Bitcoin ETF in the United States, Says Goldman Sachs

Max Minton added that “The recent approval of ETFs has led to a resurgence of interest and activities from our clients. “Many of our largest clients are active or exploring the possibility of becoming active in this space.”

Goldman’s current clientele, primarily conventional hedge funds, generates most of the interest. Additionally, the entity is expanding its reach to cover a diverse range of clients. These include asset managers, their own banking clients and some companies specializing in digital assets.

Minton mentioned that clients use cryptocurrency derivatives to make speculative predictions, improve returns, and hedge. He also noted that Bitcoin-related products continue to attract the most attention from customers.

Impact of Bitcoin Halving on Cryptocurrencies

Following the 2012 halving, Bitcoin’s market capitalization skyrocketed more than 8,000%. Similarly, after the 2016 halving, the value of Bitcoin saw an increase of more than 1,400%. Meanwhile, it saw an increase of more than 700% following the 2020 halving.

Although the stock-to-flow (S2F) model, typically applied to commodities such as gold, has its flaws, it serves as a method for assessing the value of Bitcoin. This model has demonstrated a historical correlation with Bitcoin price fluctuations.

Expectations of Growing Interest in Ethereum Products Given Possible ETF Approval in the US

Although most interest remains in Bitcoin-related products, Max Minton expects interest in Ethereum-related products to increase, should Ethereum ETFs also gain approval in the United States.

According to Bloomberg ETF analysts, the chances of an Ethereum ETF being approved before May are only 35%. Since the prolonged silence of the United States Securities and Exchange Commission (SEC) is considered increasingly bearish.

Goldman Sachs has plans to expand to a broader universe of clients in the cryptocurrency space. According to Minton, the firm is looking to include asset management funds, banks and more specialized crypto asset companies in the near future.

By Leonardo Perez

Bitcoin Market Volatility: Understanding Recent Price Changes

Audy Castañeda
-
0
Bitcoin Market Volatility: Understanding Recent Price Changes

Whether it’s a rapid rise or a sharp fall, understanding the market mechanism behind Bitcoin’s movements is a must for an investor looking to stay on top of the turbulence in this rollercoaster business.

The Bitcoin market is constantly changing and its high volatility remains a magnet for users to be willing to continue investing due to the opportunity of making large profits. Lately, the situation of Bitcoin has demonstrated its volatility compared to other established currencies, as well as the triggers that cause these fluctuations.

As evidenced by the recent Bitcoin price development and the collapse of a major spread trade by a large hedge fund, the influence of the largest Bitcoin holders today comes into force even more strongly. They play a vital role in trading and negatively affect Bitcoin’s performance and investor sentiment.

While the recent fluctuations in the Bitcoin market and its cause are being investigated, it turns out that these prominent players dictate the rules, as they are the ones who have the power to disrupt the entire system.

Understanding Bitcoin Crash

The price of Bitcoin has recently plummeted, causing panic among investors. The liquidation of long positions, along with some other contributing factors, such as changes in the interest rate policies of US central banks and activity in the options market, explain the increased volatility.

This shows that global financial markets and cryptocurrency systems work together as a chain. The drop was due to a failed spread trade in which a hedge fund lost around $1 billion. Therefore, it remains a wake-up call about the dangers of these types of banking strategies and the possibility of financial instability due to market fluctuations.

Experts like Andrew Kang of Mechanism Capital have nuanced opinions on market transitions and the position of big players in Bitcoin price disruptions.

Market Movements Analysis

After the failure of the hedge fund operation, the market is full of uncertainties and investors are worried. While Bitcoin showed its resilience in the first half of the year with an increase in its value, the recent downward correction once again draws attention to the high volatility in the cryptocurrency market.

Bitcoin experts and amateur cryptocurrency market analysts not only identify what is driving market sentiment, but also advise investors on how they should approach risks at a time when the market is turbulent.

Contrary Approaches and Investor Sentiment

At such times, some approaches work in unconventional ways and present perspectives that are completely opposite to market and investor sentiment.

North Rock Digital belongs to a group of organizations that are changing existing perceptions and expecting changes in market opinion. They manage to achieve this by shorting cryptocurrency stocks and focusing on long-term investments that provide them with a platform to profit when the market turns.

With the evolution and expansion of the Bitcoin market, its volatility is expected to decrease. The entry into the Bitcoin ETF, which gives more people the opportunity to purchase crypto assets, could be one of the main reasons that causes market volatility to decrease and market dynamics to stabilize.

Impact and Future Outlook

The recent dynamics impact the markets more than just price fluctuations – they show the trend of investor sentiment and monitoring. As Bitcoin increasingly advances into mainstream finance, regulatory scrutiny is likely to become stricter, which would in turn influence the cryptocurrency market. Investors have to learn to remain vigilant and agile, assuming all the risks associated with regulatory modifications and market changes.

By Audy Castaneda

Binance Executive Escapes Detention in Nigeria

Leonardo Perez
-
0
Binance Executive Escapes Detention in Nigeria

The businessman of British and Kenyan nationality allegedly escaped from custody last Friday from the Abuja guest house.

This Monday it was confirmed that Binance executive Nadeem Anjarwalla escaped from the custody of Nigerian authorities. This person was under detention along with another of his colleagues, Tigran Gambaryan. Both employees had been under arrest since February on charges related to crimes at the company they represent.

Executive On the Run

Binance executive Nadeem Anjarwalla and his colleagues were detained at a guesthouse in Abuja. However, the executive reportedly fled detention on Friday, after he was taken to a nearby mosque for Friday Ramadan prayers.

Anjarwalla reportedly left Abuja on a Middle Eastern airline. However, it is unclear how Anjarwalla boarded an international flight even though his British passport, with which he entered Nigeria, remains in the custody of the Nigerian authorities.

According to an Immigration official, the Binance executive fled Nigeria with a Kenyan passport; However, authorities were trying to determine how Anjarwalla obtained the passport, as he did not have any other travel documents while in detention.

Although these employees of the cryptocurrency trading company were not charged, the company does have accusations against them. In that sense, the authorities of the African country accuse the exchange of laundering money and carrying out financing of terrorism. Added to this are recent accusations from the same country for alleged tax evasion. According to local media, the authorities have announced four new charges, all related to non-payment of taxes.

A spokesperson for the exchange told CNBC the following:

“We have been informed that Nadeem is no longer in Nigerian custody. “Our primary focus remains the safety of our employees and we are working collaboratively with authorities to quickly resolve this issue.”

Binance Executive Could Not Withstand Pressure in Custody

The aforementioned executive on the run probably could not bear to remain another day in custody in the face of Binance’s legal uncertainty. Consequently, as the days go by, Nigerian authorities are adding more charges against the largest cryptocurrency trading house in the world.

For the country’s authorities, the employee’s escape was not funny and, according to Reuters, they were already working with Interpol for the arrest. So far, representatives of the Nigerian authority have not commented to the media. Meanwhile, the detainee’s relatives ask the security forces for restraint.

Anjarwalla’s wife told CNBC that neither he nor Tigran held leadership positions in the company. Thus, he stressed that since the beginning of the dispute the request has been that the employees be released while the country resolved its problems with Binance. The company’s two local executives had been in custody since late February.

The State’s offensive against Binance comes at a time of profound weakness in the national currency, the naira. During the last year, it lost 70% of its value against the United States dollar. In response, citizens are flocking to cryptocurrencies to protect their income.

The Nigerian government has taken strict action against individuals and organizations involved in terrorist financing and money laundering related to the Binance crypto exchange.

There are two factors that exacerbated the government’s hatred of the firm. The first is its inability to control the destination of the funds or how they move on the platform. Secondly, the authorities blame the exchange for destabilizing the currency. In the midst of this heated environment, the aforementioned Binance executive escapes.

By Leonardo Perez

European Regulator ESMA Wrap Up First Rules for Cryptoasset Service Providers

Audy Castañeda
-
0
European Regulator ESMA Wrap Up First Rules for Cryptoasset Service Providers

ESMA proposed that cryptoassets should be classified as financial instruments if they meet the criteria outlined in MiFID II’s definition of financial instruments.

On Monday, March 25, 2024, the European Securities and Markets Authority (ESMA) announced that it had completed the first set of reports on the rules for crypto asset service providers (CASPs) under the region’s landmark regulation, Market in Crypto Regulators (MiCA).

MiCA regulates Crypto issuers and service providers that wish to operate in the EU and allows for a single license that allows companies to offer services in all member states.

According to the announcement, the report hopes to improve transparency, provide a safe environment for cryptocurrency traders, and foster clarity and predictability for investors across the European Union.

ESMA Reveals Requirements for CASP

The report includes proposed requirements that the EU financial markets regulator and supervisor will place on crypto companies wishing to operate in the EU region under the MiCA law. Under the proposed law, the regulator outlined the information that CASPs must submit to obtain approval to operate in the region.

Other requirements include the intent to provide cryptoasset services and how CASPs must address customer complaints. The EU financial markets regulator and supervisor said it had submitted the final report to the European Commission (EC) and would provide further advice and technical guidance on the proposals if the EC requested it.

The report follows the completion of a consultation document. In July 2023, the EU financial markets regulator and supervisor published a consultation document seeking input from stakeholders on proposed rules for CASPs. The consultation concluded in September with responses from 36 interested parties, 10 of which ESMA said were confidential.

ESMA Launches the Third Consultation Package under MiCA

With the report submitted to the EC, ESMA published its third consultation package under MiCA. The regulator is seeking further public opinion on proposed legislation covering the detection and reporting of suspected market abuse in crypto assets, policies and procedures, including customer rights, for crypto asset transfer services.

The proposed rules will also cover suitability requirements for certain cryptoasset services, the format of the periodic statement for portfolio management and ICT operational resilience for certain entities under MiCA. The consultation will remain open to the public until June 25, 2024.

ESMA Requests Information on the Proposed Classification of Crypto Assets

Since its implementation in 2023, ESMA has been consulting with other regulatory bodies, including the European Banking Authority (EBA), on measures under the MiCA regulatory framework. In January this year, authorities opened another consultation on the classification of cryptocurrencies as financial instruments.

ESMA proposed that cryptoassets should be classified as financial instruments if they meet the criteria outlined in MiFID II’s definition of financial instruments. According to ESMA, before determining whether a token qualifies as a cryptoasset, it must be evaluated against each type of financial instrument specified in Annex I, Section C of MiFID II. These include transferable securities, money market instruments, units in collective investment undertakings, derivatives and emission rights.

Only after excluding these categories can a definitive conclusion be reached regarding the classification of a token as a cryptoasset. The public has until April 29, 2024 to submit comments on the proposal.

The European Banking Authority (EBA) has been consulting alongside ESMA on measures under MiCA since the package ends in 2023. MiCA rules for stablecoins will come into force in July, with all member states implementing the full package in December.

By Audy Castaneda

Cryptocurrencies Are Going to Disappear, According to Popular Investor Jim Rogers

Leonardo Perez
-
0
Cryptocurrencies Are Going to Disappear, According to Popular Investor Jim Rogers

“I’m very skeptical about cryptocurrencies, I don’t expect them to last, it’s been great for some people now, not for me, but I don’t see any long-term value in cryptocurrencies,” said Jim Rogers at the India Today Conclave 2024 event last week.

Despite the significant growth in the price of Bitcoin (BTC) that marked a new all-time high of almost $74,000, before retreating shortly after, the renowned investor and financial commentator Jim Rogers continues to be skeptical about cryptocurrencies and especially about the Bitcoin.

Jim Rogers is a former business partner of George Soros and co-founder of Quantum Fund and Soros Fund Management. Furthermore, the investor indicated that he has more confidence in “real things” assets than in a cryptocurrency like Bitcoin.

“I know rice will always have value, it always has, but I don’t know if Bitcoin will always have value.” Jim Rogers stated. “Bitcoin will disappear and go to zero one day,” he added.

Rogers noted that the value of commodities like sugar will never disappear or lose all their value in the market like cryptocurrencies.

«I may be wrong, maybe I should sell all my gold and silver and buy Bitcoins. However, as far as I can see, most people in the world understand gold and silver, but most do not understand Bitcoin,” Rogers said.

On the other hand, popular investor Jim Rogers, who has a net worth of more than $300 million, confirmed during the event that he does not own BTC or any other cryptocurrency.

Jim Rogers Warns about the Possible Disappearance of the US Dollar and Recommends Buying Gold and Silver

Adding to his strong skepticism about the cryptocurrency, Jim Rogers also warned last year about the possible “disappearance of the US dollar.” This is because countries are exploring new “alternative reserve currencies” that decentralize the current economy.

“Inflation is going to get worse, the debt problems are going to get worse, and the United States is going to suffer,” Jim Rogers said last year on Sputnik News’ “New Rules” podcast. “The value of the US dollar will lose more and more value as the United States prints more, it always happens this way,” he added.

When asked what he would buy, gold, silver or Bitcoins, Rogers responded that he has never bought or sold Bitcoin, arguing that he has a lot of gold and silver as a safe haven.

“In my opinion, cryptocurrencies are apparently good business vehicles, but I hope they all disappear one day, many of them have already disappeared,” said Rogers.

On the other hand, Jim Rogers also said that even though gold is at an all-time high, everyone should own something. According to the investor, even though silver has dropped 50% from its all-time high, it continues to represent an important asset.

“I own both gold and silver, but if I were buying today, I would buy silver,” Rogers said.

For many years Jim Rogers has been a strong skeptic of the crypto market and digital assets of all kinds. For reference, during 2021, Rogers said that he “would not buy Bitcoins because governments could ban cryptocurrencies.”

Furthermore, also in 2022, the popular investor pointed out that governments seek to control and regulate the entire crypto space, and therefore cryptocurrencies “do not represent a good investment.”

By Leonardo Perez

1...286287288...1,654Page 287 of 1,654