Investment bank with over $35 billion assets plans investing in bitcoin

Notable hedge funds are increasing investments in cryptos, amid exponential returns seen and have high net worth individuals who are prepared to …

The world’s flagship crypto lost over $1,000 in less than 24 hours amid the bullish trend playing out at the world’s most valuable crypto market.

What we know: At the time of filing this report, Bitcoin price traded at $17,553.85 with a daily trading volume of $33,082,220,004. BTC price is down -2.3% in the last 24 hours. It was previously trading above $18,560 on Wednesday morning.

READ: Why Bitcoin will still drop

The major reason why the most valuable crypto seems to be falling near $18,500, remains the bias that the strongest resistance level before a new all-time high is $18,500 Hence, amid increased selling pressure sellers as breaching the $18,500 price level upward would boost the chances for a broader rally.

READ: $268 million worth of Bitcoin transported by an unknown identity

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  • Taking into consideration that most bitcoin wallets are in profit, unsurprisingly some investors are already cashing out some of their gains amid the end of a turbulent 2020
  • That said, its recent price action shows its tilting towards an overbought position.

READ: Wealthy Crypto entity moves over $100 million worth of Bitcoin

What they are saying

Willy Woo, a former partner at Adaptive Capital, a respected Bitcoin analyst in the crypto-verse, gave key insights on what could make the Crypto bulls suffer from exhaustion, as it approaches the $17,000 mark.

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Woo said, “The spike in coin buying should not be underestimated; it’s the largest spike in the 5-year chart below. Overall BTC remains bullish, however, the price needs to settle.

READ: Citibank: Bitcoin could skyrocket by $300,000 in 2021

“That said, during this pump, the volume of coins scooped off exchanges by buyers was unprecedented. This price move was entirely organic, powered by significant buyer demand rather than the usual trader-driven action on derivative exchanges. I have not seen an organic pump at this scale in years.”

Meanwhile, BTC Supply in Loss (1d MA) just reached a 2-year low of 328,763.223. BTC’s previous 2-year low of 329,239.896 BTC was observed on November 6, 2020.

READ: Ripple Whale transfers 20,000,000 XRP to Binance

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What to expect

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Taking into consideration the increased buying pressure of the world’s most valuable crypto, Nairametrics’ view on Bitcoin remains bullish in the long term. However, the price needs to cool off at least temporarily. That said, the duration for such consolidation is pretty unknown, as it could be only for a few days or a protracted consolidation for another week or even longer is hard to tell right now.

READ: A billion dollar worth of Bitcoin moved by unknown identity

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Cryptocurrency hedge fund, Grayscale Investments now holds more than 500,000 Bitcoins in its Bitcoin Trust. Published. 39 mins ago. on. November 18, …

Ethereum whales are obviously cashing out, and transferring their prized digital asset, which is the world’s second most valuable crypto by market value.

Data retrieved from advanced crypto tracker, Whale Alert, revealed that an unknown identity transferred 248,660 ETH (116,890,884 USD – approximately $117 million) from one unknown wallet to another unknown wallet.

READ: List of Cryptos you can buy and sell on PayPal

  • At the time of filing this report, Ethereum traded at $485.14 with a 24-hour trading volume of $12,217,030,960.
  • ETH price is up 4.1% in the last 24 hours. It has a circulating supply of 110 million coins and a max supply of ∞ coins.

READ: Crypto millionaire carts away with $224 million worth of Bitcoin

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 248,660 #ETH (116,890,884 USD) transferred from unknown wallet to unknown wallet

Tx: https://t.co/R4Vn19ShwB

— Whale Alert (@whale_alert) November 17, 2020

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READ: Crypto: Alpha Finance gains 400% in 10 days, supported by a big bank

Nairametrics had earlier observed the high movements by these whales, as large entities have purchased almost half of all the Ethereum mined so far in 2020.

This is clear evidence that major investors are now looking at the future potential of ETH as an investment, despite the recent sell-offs recorded in the second most capitalized crypto market.

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READ: Buying signs: Ethereum whales increase their Ether holdings by 84%

Ethereum supports smart contracts on which developers can write code in order to program digital value. Examples of decentralized apps (dapps) that are built on Ethereum include tokens, non-fungible tokens, decentralized finance apps, lending protocol, decentralized exchanges, and much more.

What you should know

  • Traders or entities who own a large number of Ethereum are typically called Whales.
  • This means that an Ethereum whale would be a single Ethereum address owning around 1,000 Ethereum or more.

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Berlin-based challenger bank N26 is exploring a credit card product for its growing U.S. market. “In the U.S. we’re actually thinking about launching a credit card because it’s more important for our customers,” said Co-Founder and Chief Financial Officer Maximilian Tayenthal at the Future of Fintech conference on Monday. N26 has more than 5 million […]

Bitcoin Rockets Higher as Big Investors Take Sides

Hedge fund investor Stanley Druckenmiller said earlier this month that he owns a “tiny bit” of Bitcoin as he anticipates the dollar will decline in value.

Although Bitcoin is still used for the sorts of things that once made it anathema to investors—such as ransomware attacks on institutions —it’s also become more accepted by some investors as a kind of hedge on the dollar. Some people who expect the Federal Reserve’s decision to keep interest rates low will spur inflation think Bitcoin will resist that kind of devaluation. The supply of Bitcoins is capped at 21 million so proponents argue it can’t be devalued in the same way. Hedge fund investor Stanley Druckenmiller said earlier this month that he owns a “tiny bit” of Bitcoin as he anticipates the dollar will decline in value.

“I own many, many more times gold than I own Bitcoin, but frankly if the gold bet works, the Bitcoin bet will probably work better because it’s thinner and more illiquid and has a lot more beta to it,“ Druckenmiller said on CNBC.

Anxiety about inflation has become a standard explanation for Bitcoin’s rise, though there are some factors that complicate the narrative. For one thing, the second-most valuable cryptocurrency, Ethereum, is also on a bull run and its supply isn’t capped. And this isn’t the first time in the past few years that fears of inflation have reared their head. Investors have regularly complained that the Fed is “printing money.” Over that period, Bitcoin has sometimes risen and it has sometimes fallen.

Cryptocurrency regulation is scattershot today, with some things handled by states and some by different federal agencies. But regulatory decisions have mostly been positive for cryptocurrency in recent months.

PayPal Holdings (PYPL) said last month it had gotten a special license from the New York State Department of Financial Services as part of its plans to allow users to trade Bitcoin.

While President Trump has said he’s “not a fan” of Bitcoin, and the SEC has cracked down on alleged fraud at some cryptocurrency companies, agencies such as the Commodity Futures Trading Commission have opened the door to various crypto services such as asset custody. That kind of mostly-friendly regulation may continue. One of President-elect Joe Biden’s top advisors on financial regulation, Gary Gensler, is “viewed as friendly towards cryptocurrencies,” notes Edward Moya, analyst at currency broker OANDA.

Bitcoin has also been embraced by more corporations, such as Square, and attracted new institutional money. CME, which offers Bitcoin futures, has reported volume spikes in recent weeks. Open interest for large institutional holders in the futures contracts is at an all-time high, CME told Barron’s on Tuesday. Average daily volume is up 7% this month versus October to 7,900 contracts.

Still, Bitcoin continues to have its skeptics. Well-known hedge fund investor Ray Dalio expressed his doubts on Tuesday as the price continued to ramp up.

Dalio wrote on Twitter that Bitcoin does not work well either as a medium of exchange or a store of value given its volatility and the fact that you can’t buy much with it. And even if governments have so far not tried to shut it down, “if it becomes successful enough to compete and be threatening enough to currencies that governments control, the governments will outlaw it and make it too dangerous to use.”

“Also, unlike gold which is the third highest reserve assets that central banks own, I can’t imagine central banks, big Institutional investors, businesses or multinational companies using it,” he wrote.

That said, he made it clear that he’s willing to reconsider his positions. “If I’m wrong about these things I would love to be corrected,” he wrote.

Write to Avi Salzman at avi.salzman@barrons.com

Bitcoin to surpass record price high due to drive from ‘real volume’ backed by big banks

The two hedge fund managers that have cut breaks on bitcoin’s current bolt skyward, Paul Tudor Jones and Stan Druckenmiller, are “alpha dogs” in …

“Last time bitcoin made the $20,000 (£15,095) high most of the volume was fake.

“Today, it’s all real.”

Bitcoin’s recent rally has much to do with its adoption by global money managers, institutions, family offices, and hedge funds.

Billionaire US hedge fund manager Paul Tudor Jones has called the world’s pre-eminent cryptocurrency an asset that has very similar characteristics to early tech companies.

READ: Bitcoin prices surge to over $10,000 as investors ditch other cryptocurrencies