Replies to post #18303 on Bitcoin (BTCUSD)

[Investors3]

After Institutional Investors Hoard, Just 22% of Bitcoin is Left for Traders
A new report says that 78% of Bitcoin is out of circulation. But this is a good thing.
By Mathew Di Salvo
2 min read
Dec 30, 2020

https://decrypt.co/52889/only-22-of-bitcoin-is-liquid-glassnode

In brief


* Most Bitcoin is not in circulation, according to a new report.

* This is because it’s being bought up by entities that don’t want to
sell it.

* But that could help push the price of the cryptocurrency up,
analysts tell Decrypt.


Most Bitcoin is illiquid—78% of it—and this is driving the current bull run, according to a new report.

Bitcoin “liquidity” refers to how much of the asset is in circulation. According to findings published yesterday by blockchain analysis company Glassnode, only 4.2 million Bitcoin (22%) are currently available to buy and sell.

The report says that there is a shortage of Bitcoin because it’s being snapped up by big investors. This trend is making the currency more expensive.

“If many bitcoins are illiquid, a supply-side crisis emerges—which has a weakening effect on BTC's selling pressure in the market,” Glassnode says. “Or put differently: A sustained rise of illiquid bitcoins is an indication of strong investor hodling sentiment and a potentially bullish signal.”

The report notes that long-term investors holding the cryptocurrency removes it from circulation. 2020 has been the year big companies have entered the crypto space—especially business intelligence firm MicroStrategy—and they are buying up Bitcoin and holding it as a long-term investment.

These companies aren’t likely to sell, according to Glassnode, and this is causing the current bull market. In fact, this year alone, “more than 1 million BTC has become illiquid,” the report says.

But is this a good thing? What does it mean for the average investor? Pedro Febrero, an analyst at Quantum Economics, told Decrypt that Glassnode’s findings were “superb news.”

“Essentially, when the supply of bitcoin is suppressed, price has a tendency to rise, given that demand either stays equal or increases,” he said.

“And we know for sure that demand is indeed increasing. If only 22% of all Bitcoin are in circulation, and wealthy individuals keep acquiring Bitcoin, there is no telling how high the price may go.”

A shortage of the cryptocurrency isn’t necessarily a bad thing: it will never disappear.

The report adds that Bitcoin liquidity and the price of the currency go hand in hand—and if things keep going the way they’ve been going this year, the price will only continue to rise.

So there we have it: less Bitcoin is more.

[Investors3]

TradingView Data Show Bitcoin Is the Most Searched-For Asset in Cuba
Cryptocurrencies make up more than half of all inquiries from Cuba, while Libya and Palestine are not far behind.
By Adriana Hamacher
4 min read

https://decrypt.co/57172/tradingview-data-show-bitcoin-is-the-most-searched-for-asset-in-cuba?&utm_medium=referral&utm_campaign=feed&utm_source=coinbase


In brief

* Search data on popular research platform TradingView suggest that
Cubans are more interested in crypto assets than stocks and shares.

* The data looked at searches for cryptocurrencies as a proportion of
those for a broad range of assets, between November 2020 and January
2021.

* However, Nigeria and India, which were thought to be hotbeds of
interest, are not in the Top 10 most active countries, search-wise.

Cryptocurrency, especially Bitcoin (BTC), is the most sought-after asset in communist Cuba, and crypto-related inquiries from Libya, Syria, and Palestine are also booming, according to data shared today with Decrypt, by leading investment research platform TradingView.

“This data suggests [that] countries experiencing hardship right now seem to be the ones most interested in cryptocurrency,” said James Maddison, Head of UK at TradingView.

The data pinpoints the BTC/USD pair as the most popular onsite search and provides a snapshot of the crypto market and trading interest between November and January 2021—a period of unprecedented market growth and interest in crypto assets.

In that time, TradingView became the 73rd most visited website in the world, thanks to the explosion in retail trading that’s engulfed the crypto market since big-name investors, such as Michael Sawyer, became involved.

To understand where in the world most inquiries about cryptocurrencies were coming from, TradingView researchers pulled together data from over 27 million search queries from the platform’s users.

While the United States wins in terms of the sheer volume of inquiries, it’s a different picture when the proportion of searches related to crypto is compared to those for stocks, shares, other tradable assets.

By this metric, Cuba takes the top spot, and Libya, Syria, and the Palestinian Territory all feature in the Top 10. This suggests a “correlation between countries which rank lower on the Human Freedom Index”—which measures personal, civil, and economic freedom, and interest in digital assets, according to the researchers.

In Cuba, interest in cryptocurrency has seen an increase of 12.2% since last year, according to the research. It’s also likely that the real figure is far in excess of that given by TradingView, as many Cubans use VPNs to prevent detection. Citizens live with not only rampant inflation but also a high level of financial censorship.

Recently, the pandemic and US sanctions have meant that Cubans’ access to foreign currencies is heavily curtailed, and that has increased the appeal of cryptocurrencies, many of which act as censorship-resistant stores of value.

Surprising findings

Middle Eastern countries feature prominently among those with the most crypto searches. Many have seen their economies take a dive, and are worried political controls could further threaten economic stability. The makeup of the list suggests “that countries with high levels of instability are proportionally more interested in digital assets than more developed nations,” according to the researchers.

But India, which has been tipped as a hotbed for cryptocurrency adoption, was last on the Trading View list, with only 6.7% of searches devoted to crypto-assets—even though it’s one of the most active countries on the TradingView platform.

The researchers put the muted interest down to proposed laws, which ban cryptocurrencies and are under active consideration. However, another country, Nigeria, which features prominently in Google Trends analysis for Bitcoin searches, and where foreign exchange has also dried up, doesn’t make it into TradingView’s most actively searching countries either.

Bitcoin ‘Can’t Be Stopped’: Nigerians Look to P2P Exchanges After Crypto Ban

Some Nigerians plan to continue using bitcoin (BTC) and other cryptocurrencies despite a directive issued by the Central Bank of Nigeria (CBN) last week ordering banks to close down accounts associated with cryptocurrencies.

https://www.coindesk.com/bitcoin-cant-be-stopped-nigerians-look-to-p2p-exchanges-after-crypto-ban

TradingView’s data covered more than 6,000 cryptocurrency pairs. Unsurprisingly, Bitcoin and Ethereum (ETC,) paired with USD or Tether (TUSD)—often used to convert fiat to crypto—comprised the most popular searches. BTC/USD was 0.14% of all searches across all assets on the site. But XRP, Chainlink (LINK,) Cardano (ADA), and Litecoin (LTC) are also prominent on the list of top 20 most searched pairings.

One of the more surprising findings of the TradingView study was Finland's second-place position for crypto searches after Cuba. It’s, perhaps, not a country known for its crypto footprint, but the customs agency there has been preparing to offload a stash of Bitcoin—which is now worth around $94 million. Perhaps it was them?

[Investors3]

India's Finance Minister Says a "Window" for Bitcoin is Coming
By Shaurya Malwa
3 min read
Mar 15, 2021

A new bill could see Indian crypto users face harsh penalties. But India's finance minister posits a "window" to allow experimentation with crypto.

In brief

* Indian officials have reportedly claimed that the country will
criminalize the ownership of cryptocurrencies.

* However, the country's Finance Minister has said that there's a
"window" to allow experimentation with Bitcoin and blockchain.

India’s government gave crypto investors another reason to fear on Monday after high-ranking officials said a new law would ban the possession or usage of cryptocurrencies, as per a report on Reuters this morning.

The officials said the use of blockchain technology would be promoted in the country but the use of “private crypto-assets”—such as Bitcoin and Ethereum—would be stamped out. A previous bill from 2019 went as far as proposing jail terms for offenders, but for now, the officials say strict penalties are expected instead.

But despite the downbeat outlook for crypto in the country, Indian Finance Minister Nirmala Sitharaman said at a separate event over the weekend that while regulations were on the cards, the government would allow a "window" for experiments on Bitcoin, blockchain and cryptocurrency.

“We will allow a certain amount of a window for people to experiment on blockchain and Bitcoin,” said Sitharaman, adding that a Cabinet bill on cryptocurrencies was getting ready and is expected to pass soon.

She added that while the Reserve Bank of India—the country’s central bank—could have taken its own official decision on cryptocurrencies, the Finance Ministry was “very clear” that they would not be “shutting off all options.”

Mixed signals for Bitcoin investors?

The opposing sentiments of government officials and Sitharaman are a result of the way India’s financial system is structured.

The RBI is a part of the Finance Ministry, but holds complete autonomy over monetary policies, issuance of the Rupee, and regulation of the Indian banking system. The Finance Ministry, on the other hand, handles macroeconomic policies, public financing, inflation, and stock markets.

But the two are famous for not getting along. Their heads have held different views on how money should be deployed in India—with one such disagreement even said to be the reason behind the 2018 resignation of former governor Urjit Patel.

Bitcoin and crypto investors are seemingly caught up in the middle of the tension between the RBI and the Finance Ministry. The RBI had previously banned cryptocurrencies in 2018, but the Supreme Court overturned the ban in May 2020.

The RBI said at the time it would continue to lobby against digital currencies, and returned in early 2021 with a new proposal to ban their usage while proposing its own digital stablecoin. It cited potential “financial instability” of the Indian economic system as a significant concern behind its move.

For now, the RBI and the Finance Ministry seem to be at loggerheads once again. Meanwhile, Indian crypto investors remain undeterred—trading volumes continue to average nearly $100 million at WazirX, the country’s biggest crypto exchange.

https://decrypt.co/61395/indias-finance-minister-says-a-window-for-bitcoin-is-coming?&utm_medium=referral&utm_campaign=feed&utm_source=coinbase

[Investors3]

Why Bitcoin could favor USD dominance over Digital Yuan
April 09 2021 - 05:00PM
NEWSBTC

Contrary to what many in the crypto space are discussing, Senior Commodity Strategist for Bloomberg, Mike McGlone, has made the case for Bitcoin being beneficial for the U.S. dollar over China’s digital Yuan. According to McGlone, the cryptocurrency is “eclipsing” Yuan’s global adoption. Specifically, the U.S. dollar is showing “organic adoption” in the digital ecosystem, […]

https://ih.advfn.com/stock-market/COIN/BTCUSD/crypto-news/84794875/why-bitcoin-could-favor-usd-dominance-over-digital

Why Bitcoin could favor USD dominance over Digital Yuan
Reynaldo Marquez by Reynaldo Marquez 4 seconds ago in Bitcoin, Cryptocurrency news Reading Time: 2min read

Contrary to what many in the crypto space are discussing, Senior Commodity Strategist for Bloomberg, Mike McGlone, has made the case for Bitcoin being beneficial for the U.S. dollar over China’s digital Yuan.

According to McGlone, the cryptocurrency is “eclipsing” Yuan’s global adoption. Specifically, the U.S. dollar is showing “organic adoption” in the digital ecosystem, as shown by the following chart. Mcglone claims:

Bitcoin May Enhance Dollar Dominance, Highlight China Drawbacks – Despite concerns about China’s development of a digital yuan, Bitcoin is enhancing the dollar’s dominance and is a risk to gold. Bitcoin may be accentuating the drawbacks of a lack of free markets & discourse.

https://twitter.com/mikemcglone11/status/1379754296519098371?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1379754296519098371%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.newsbtc.com%2Fnews%2Fwhy-bitcoin-could-favor-usd-dominance-over-digital-yuan%2F

Institutions not adopting Bitcoin could be at risk

For Gold holders, the benchmark cryptocurrency has also become a nuisance. The precious metal is underperforming and retracing to levels of support under $1,700, as McGlone claims. He added:

most indicators show a shifting global tide that favors the nascent digital currency as a reserve asset.

The expert claims Bitcoin has “entered a unique state” in terms of adoption. Therefore, he claims those company managers and executives unwilling to allocate capital to BTC could be at risk of missing out on more appreciation.

In that regard, McGlone estimates BTC’s price to be on a similar path that in 2013 when it registered 55x gains and in 2017 when it reached the historical $20,000 mark. This would put Bitcoin near $400,000 this year. He added:

The technical outlook for Bitcoin in 2021 remains strongly upward, if past patterns repeat. Common companions for strong annual rallies in the first-born crypto — low volatility and halvings — are aligned favorable.

At the time of writing, Bitcoin is reclaiming the higher levels of the $50,000 and seems to be pushing harder towards its resistance zone. The cryptocurrency trades at $58,451 with 1.2% gains in the daily chart.

The Strategist points to the low amount of BTC on exchange platforms as possible evidence of further appreciation. When the metric reserves, the market could be “dominated” by the sellers and BTC’s price might have the same fate as in 2017.

The 2015-17 bull run peaked around the time more Bitcoins were moved back on exchanges than the previous high from 2016. Our takeaway from this metric is that buyers are taking Bitcoins off exchanges and moving into longer-term storage, some earning interest.

https://www.newsbtc.com/news/why-bitcoin-could-favor-usd-dominance-over-digital-yuan/

[Investors3]

First cryptocurrency fund approved in Switzerland
HELEN PARTZ
10 HOURS AGO

The fund tracks the performance of the 10 largest cryptocurrencies from SIX Swiss Exchange’s Crypto Market Index 10.

Cryptocurrency adoption continues gaining momentum in Switzerland as local financial authorities grant more regulatory approvals for crypto investment instruments.

The Swiss Financial Market Supervisory Authority (FINMA) has approved the Crypto Market Index Fund as the “first crypto fund according to Swiss law,” the authority officially announced on Wednesday.

The fund is launched by Swiss asset manager Crypto Finance and is administered by investment management firm PvB Pernet von Ballmoos AG with custody by regulated custodian SEBA Bank AG.

FINMA noted that the newly approved fund is restricted to qualified investors, investing primarily in cryptocurrencies or digital assets “based on the blockchain or distributed ledger technology.”

The regulator said that the Crypto Market Index Fund may only invest in leading cryptocurrencies with a “sufficiently large trading volume.” According to Crypto Finance, the fund will track the performance of the Crypto Market Index 10, a product administered by the SIX Swiss Exchange.

“The objective of the Crypto Market Index 10 is to reliably measure the performance of the largest, liquid crypto assets and tokens and to provide an investable benchmark for this asset class,” Crypto Finance noted.

FINMA added that it would require investors to invest only through established counterparties that are based in a member country of the Financial Action Task Force and are subject to corresponding Anti-Money Laundering regulations.

In conjunction with the fund approval, FINMA has also approved SEBA Bank AG as an institutional-grade custodian service by granting the firm a CISA license. Previously, the authority officially allowed SIX Swiss Exchange to launch a digital marketplace and central securities depository built on distributed ledger technology in early September.

https://cointelegraph.com/news/first-cryptocurrency-fund-approved-in-switzerland