Crypto Market Round-Up: Another Bitcoin Break Near $4000 or Are The Bulls Rushing the Gate?

Bitcoin Cash is right behind it. It’s green everywhere you look. Even Bitcoin SV is on the rebound, resting at $68 after $155 million in trades. Of the top …

Bitcoin is over $3900 globally, though many exchanges still have it trading closer to $3850. Ethereum’s broken beyond $140, might take $150 before the day is through. Bitcoin Cash is right behind it. It’s green everywhere you look. Even Bitcoin SV is on the rebound, resting at $68 after $155 million in trades.

Of the top 100 cryptocurrencies, only 4 were showing a negative 24-hour change. One was Paxos Standard. We should expect a high amount of conversions to be going on with stablecoins today, a lot of turbulence in the market capitalization, as people get their money into various cryptos on the ride up.

The other three were something called Aurora, Power Ledger, and and Ark. Collectively they had less than $50 million in 24-hour volume, and Ark was the only big loser, dropping 14%. This likely has to do with people cashing out for Bitcoin or Ethereum, trying to catch the wave. They might come back when prices stabilize or begin to drop, or they might not. We’re only noting these four cryptos because they stand out as the day’s losers.

Let’s take a selection from the cream of the crop.

The Bitcoins

Bitcoin had almost $10 billion in volume. If you recall, we were expecting a breakout again, although perhaps not so soon. Bulls woke up itchy Monday morning. The momentum started late last night, US time.

Between Bitcoin, Bitcoin Cash, and Bitcoin SV, a little over $10 billion changed hands.

Bitcoin Cash gained the most by percentage, with Bitcoin SV in second place, as you can see.

All three Bitcoins performed brilliantly, with Bitcoin Cash doing the best.

Will Bitcoin test $4,000? If it does, will BSV break out and re-test $100? It’s hard to say from here, with $150 to go. People have had a couple months of opportunity to buy well beneath this level, so a dump frenzy could happen, which could bring the shyness back out in the bulls. We’ll see where we are tomorrow.

If the level holds for a few days, then we can expect it to hold for a few more, probably, and either repeat or do the opposite. There’s a rubber band effect in the Bitcoin market. Often big drops are followed by bigger rises, and vice versa.

Ethereum

Ethereum stood on Bitcoin’s shoulders and reached a bit higher.

Ether took Bitcoin’s lead and ran it a bit higher. It gained more than $10 around the world.

It’s clear that Ether traders want to test $150 soon. What’s unclear is if there’s enough momentum for that. Again, we’ll have to check back tomorrow, or later tonight. The timing of this run indicates that it was probably happening on Asian Monday morning, which is western Sunday evening.

Litecoin

Litecoin is charting beautifully under Bitcoin, with a slightly higher gain in percentage due to its lower value. It did over $1.3 billion in volume in the past twenty-four hours. The $1 billion daily trading volume may be here to stay for Litecoin.

Litecoin followed Bitcoin. We look forward to the day it divorces and breaks out on its own. It’d be a positive sign.

What Litecoin needs next is a gain independent of Bitcoin.

Binance Coin

Binance stumbled on the way up, but it looks like it has room to grow. The token is used to get a discount in fees on Binance, and has been the #10 cryptocurrency, despite having no other realistic purpose, for a couple weeks.

Binance is effectively one of the most valuable utility tokens in history.

As you can see, we added the BNB/BTC indicator on the Bitcoin chart, to see how attached to the Bitcoin price momentum that BNB is.

Effectively, it’s one of the most valuable utility tokens in history. We wonder what will happen in the future if Binance becomes a less popular exchange. Recently its volume was usurped for the first time in forever. Binance is ahead of the game, though, building its own decentralized exchanges and doing its best to remain cutting edge.

CFTC Commissioner: Crypto Exchanges And Businesses Must Create A Self-Regulatory …

… CFTC commissioner, Brian Quintenz stated that since the CFTC is yet to implement robust guidelines for the U.S distributed ledger technology (DLT) …
Cryptocurrency-Exchanges-and-Related-Businesses-Must-Create-a-Self-Regulatory-Organization-Says-CFTC-Commissioner

Cryptocurrency Exchanges And Related Businesses Must Create A Self-Regulatory Organization – Says CFTC Commissioner

While the United States regulators are still trying to come up with amenable guidelines to govern the crypto industry, the United States Commodity and Futures Trading Commission (CFTC) commissioner, Brian Quintenz has reportedly urged firms and stakeholders in the cryptospace to establish a self-regulatory body that would govern digital assets market participants, according to reports on February 18, 2019.

Cryptocurrency Self-Regulatory Structure necessary

Present at the Bipartisan Policy Center panel organized on February 12, 2019, CFTC commissioner, Brian Quintenz stated that since the CFTC is yet to implement robust guidelines for the U.S distributed ledger technology (DLT) and virtual currency industry, it has become essential for crypto-focused organizations to come together and form a self-regulatory organization.

According to the official, the primary objective of the self-regulatory organization would be to “discuss, agree to, implement, examine or audit,” the crypto ecosystem.

In other words, Quintenz has pointed out that some of the duties of the self-regulatory body would be to guard against malpractices in the cryptocurrency industry, including insider trading while also carrying out audits concerning conflicts of interest, custody, liquidity and more.

Self-Regulatory Organizations Are Constitutional

More importantly, the CFTC commissioner also reportedly made it clear that “a self-regulatory platform is specifically chartered by the U.S. Congress through the law,” although the body will only function as a mutual association by private market participants in the crypto industry.

In the same vein, the U.S. Securities and Exchange Commission (SEC) commissioner, Hester Peirce who was also a member of the panel, reportedly noted that the current regulatory state of the crypto assets space remains quite “confusing.”

At a time when the Bitcoin Exchange Traded Fund (ETF) filing of a significant number of highly reputed firms in the cryptosphere, including VanEck SolidX have been rejected by the regulators citing the seemingly unregulated nature of the industry, Pierce has condemned the decision of the SEC.

In her words:

“There are numerous markets that are not regulated, yet we build derivative products upon them.”

It’s worth noting that this is not the first time that Peirce is showing strong support for bitcoin and other blockchain-based digital assets.

As reported by Bitcoin Exchange Guide in August 2018, the Commissioner urged the U.S regulators to soften their stance as regards cryptocurrency regulation.

“Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets. I dissent,” tweeted Peirce earlier in July 2018.

In related news, on February 13, 2019, Bitcoin Exchange Guideinformed that Peirce had made it clear that the outdated rules of the SEC could make the launch a Bitcoin ETF impossible this year.

Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 18th)

Altcoins Will Disappear, Bitcoin Will Become Digital Gold

The founder and the head of Digital Currency Group and Grayscale Investments funds Barry Silbert is sure that most of altcoins are useless, so their …

Mike Novogratz – a billionaire and Barry Silbert – founder investment funds – are sure that Bitcoin will make a name for itself in the future and become digital gold, unlike most of altcoins.

Bear Market For Altcoins

The founder and the head of Digital Currency Group and Grayscale Investments funds Barry Silbert is sure that most of altcoins are useless, so their price will drop to zero. He accused their creators and said that the only aim of launch of most of blockchain projects was just fundraising. He also added that he stood in full solidarity with the head of the SEC – Jay Clayton who said that most of altcoins were similar to securities.

The only crypto currency which Silbert is positive about is Bitcoin. According to Silbert, he is very optimistic about Bitcoin because he sees institutional investors’ interest to it. Silbert is sure that Bitcoin will replace gold in the digital era.

Bitcoin Will Increase Anyway

Mike Novogratz, a billionaire, is sure that Bitcoin will become digital gold, he also thinks that it will reach $8000 this year. According to him, big traditional players will enter the market due to appearance of reliable custodian services.

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Institutions Are Building Core Crypto Positions, Have Seen the Drawdown As an Attractive Entry …

Grayscale, a digital asset management fund and a subsidiary of Digital Currency Group, published its digital asset investment report on Feb.
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Grayscale, a digital asset management fund and a subsidiary of Digital Currency Group, published its digital asset investment report on Feb. 14 in which it revealed that capital inflow from institutional investors is on the rise.

The investment report, is in essence, a reminder of how companies have managed to stay afloat amid the bear market that has seen the market capitalization of the entire market decline by more than $700 billion since January last year.

Figures and Key Takeaways of the Report

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The report noted that there was a deceleration of investment into digital assets in the last quarter of 2018, but the firm still managed to raise $30.1 million in the quarter.

It was a below average quarter even though the firm had an overall strong year.

The total capital inflow in 2018 reached a record $359.5 million, marking the firm’s strongest calendar year inflows since its founding.

Last year’s capital inflow is almost three times the recorded inflow in 2017 when the crypto market had its finest bull run to date.

The figure is also nearly twice the inflow from 2014 – 2017 combined.

The report notes that institutional investors provided 66% of the firm’s 2018 inflows, a clear indication that institutional investors’ appetite for the nascent industry is on the rise.

The report lists two important observations that reinforce an emerging trend.

The report says:

“First, the average investor at this stage of the bear market is patient with a multi-year investment horizon (i.e., investing for retirement). Second, institutional investors are building core strategic positions in digital assets over time and have largely viewed the 2018 drawdown as an attractive entry point.”

At the same, U.S. investors continue to be the firm’s main source of new investment as nearly all the investment in the last quarter came from them.

Digital Assets Are Here to Stay

The digital asset industry came under scrutiny over the past few months due to the declining price in assets and regulatory uncertainty.

However, Grayscale believes that the digital assets are here to stay and have an important role to play in diversifying investor portfolios.

“Despite a slowdown in investment across products in the fourth quarter, we continue to see evidence that digital assets are here to stay as a new asset class,” reads part of the report.

The price of Bitcoin reached a high of almost $20,000 in December 2017 but has significantly declined in value since then.

The report gave a glimmer of hope to investors and enthusiasts as it mentioned that, “Bitcoin endured an 85 percent selloff between December 2013 and January 2015,” but eventually managed to recover fully and reached a previous high of $1,150 before rallying to its all-time high.

Investors find themselves in a similar situation, and the only question they have to answer is what happens next?

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Grayscale Reports Increasing Institutional Bitcoin Investment

Grayscale, a subsidiary of Digital Currency Group (DCG) declared a total investment sum of $359.5 million for all of 2018. According to the document, …

Grayscale Investments has released its 2018 report showing an increase in Bitcoin investment despite the year-long bear market. The New York-based virtual currency asset management firm also said it recorded its largest annual inflow since inception even with a slightly under-performing fourth quarter of 2018.

Grayscale

Filling up on Bitcoin Despite Prolonged Bear Market

According to the annual report released by the company on Thursday (February 14, 2019), Bitcoin and cryptocurrency investments dominated the firm’s revenue inflows in Q4 2018. However, despite its clear dominance, the actual investment figures from the BTC and crypt arena shrunk by more than 60 percent on a quarter-by-quarter basis.

Grayscale, a subsidiary of Digital Currency Group (DCG) declared a total investment sum of $359.5 million for all of 2018. According to the document, this figure represents a 400 percent increase from 2017’s numbers and an almost 300 percent growth for all previous four years.

Of this figure, investments into the Grayscale Bitcoin Trust topped $242 million. In the Q4 2018 alone, capital inflows from BTC investors reached 88 percent of the $30.1 million realized during the period. This increase in crypto investment comes even in the midst of a year-long bear market that saw prices plummet downwards by more than 80 percent.

Speaking to Investor’s Business Daily (IBD), Michael Sonnenshein, the Grayscale managing director, said:

“It was by no means our best quarter, but it’s certainly important to recognize that despite the price declines investors were actively engaged.”

Institutional Investors Leading the Way

Concerning investor profile, the company declared that institutional investors dominated inflows, contributing 66 percent. Retirement accounts and accredited individuals accounted for 40 percent and 14 percent respectively. An excerpt from the report that highlights the above trend reads:

“These datapoints reinforce two important trends that we’re observing. First, the average investor at this stage of the bear market is patient with a multi-year investment horizon (i.e., investing for retirement). Second, institutional investors are building core strategic positions in digital assets over time and have largely viewed the 2018 drawdown as an attractive entry point. While the dollar amounts invested declined in Q4, institutional investors share of the ‘new investment pie’ was roughly consistent throughout the year.”

For these institutional investors, BTC remains remains the best option as seen in the figures presented by the company. This trend echoes recent comments made by DCG CEO, Barry Silbert. As reported by Blockonomi on Thursday, Bitcoin is already the de facto king of the cryptocurrency space.

Grayscale says its total asset under management now stands at more than $820 million with its Bitcoin fund still the highest contributor of investment inflow. Such is the established status of the top-ranked cryptocurrency, its passive investment fund continues to top all other virtual currency trusts on the Grayscale investment catalog.

Floodgates Have Opened

The figures published by the company tally with the emerging narrative that institutional interest in BTC is moving well beyond the novelty stage to that of an actual developing trend. Earlier in the week, Morgan Creek Digital announced that two U.S. public pension funds had invested in its $40 million cryptocurrency fund.

The two pension funds, based in Fairfax County, Virginia are the first in the U.S. to invest in a cryptocurrency fund. According to Morgan Creek Digital partner, Anthony Pompliano, an insurance company as well as a university endowment fund are also invested in the $40 million investment vehicle.

Fantastic!!!

More big fish money going into crypto markets. Great job @barrysilbert! 👏👏👏

As we progress, more and more traditional fund managers are waking up to the powerful investment tool that is cryptoassets. 🤯#Bitcoin#blockchain#Cryptocurrencyhttps://t.co/zaD22iJKFw

— Mati Greenspan (@MatiGreenspan) February 15, 2019

Commenting on Grayscale 2018 report, Mati Greenspan, Senior Market Analyst at eToro said that mainstream fund managers are becoming increasingly wiser to the need to diversify into the cryptocurrency investment arena. Tom Lee of Fundstrat in a recent 2019 outlook report to clients identified increased institutional adoption as one of the tailwinds that will drive prices higher in 2019.


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