Crypto Week at a Glance: Crypto market feels the blues as GBTC shares unlock

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Economic Times 18 July, 2021 - 02:45am 16 views

When is the grayscale unlock?

On July 18, the Grayscale Bitcoin Trust (GBTC) will be unlocking shares valued at 16,240 BTC. Economic TimesCrypto Week at a Glance: Crypto market feels the blues as GBTC shares unlock

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Will enhanced volatility reach the cryptocurrency market as the largest GBTC unlocking of over 16,000 will take place today – July 18th?

While BTC’s price continues to trade in a range of around $32,000, all eyes are on today’s largest GBTC unlocking of over 16,000 bitcoins.

On the other hand, some of the altcoins have bounced off since the recent price declines, with DOGE jumping by roughly 9% on a 24-hour scale.

After briefly exceeding $33,000 on Thursday, bitcoin started to retrace in value and lost about $2,000 in a day. The subsequent unsuccessful attempt by the bulls to recover some ground resulted in yet another drop – this time, the cryptocurrency reached its lowest price line in three weeks at $31,000.

The trading volume remained relatively low in the following days, and BTC has failed to reclaim most losses. It initiated a few sudden legs up and briefly surpassed $32,000 but has retraced below that level as of writing these lines.

What’s perhaps more intriguing to follow today, though, would be the leading digital asset manager – Grayscale – and its Bitcoin Trust, more specifically.

As previously reported, the GBTC shares will see the largest unlocking of over 16,000 bitcoins on July 18th. As such, the community and analysts have speculated how the price would react with the bearish sentiment taking over.

The alternative coins suffered in the past few days, with Ethereum dropping below $1,900 at one point. However, a 4% increase has driven the second-largest crypto to around $1,960 as of now.

Binance Coin, Cardano, Polkadot, Uniswap, Bitcoin Cash, Litecoin, and Solana are slightly in the green as well. However, Dogecoin has outperformed all with an impressive 9% increase.

As a result, DOGE currently trades just shy of $0.19. Nevertheless, the meme token is still about 75% away from its all-time high reached just a few months ago.

Telcoin has added the most value from the lower- and mid-cap altcoins with a 12% surge. Consequently, TEL trades above $0.013. KuCoin Token (8%), Bitcoin Gold (7%), Elrond (7%), and Nexo (6%) follow.

In contrast, NEM and Revain have lost the most with 7% drops, followed by Basic Attention Token (-5.5%) and Flow (-5%).

Read full article at Economic Times

Crypto Price Prediction: Bitcoin ‘To Overtake’ The Dollar By 2050 And Soar To $66,000 By The End Of 2021

Forbes 19 July, 2021 - 01:00am

The bitcoin price is still up significantly from before it began its latest rally in October, a bull run that sent combined crypto market to a staggering $2.5 trillion before crashing back (subscribe now to Forbes' CryptoAsset & Blockchain Advisor and discover crypto blockbusters poised for 1,000% gains).

Now, a panel of cryptocurrency experts has predicted bitcoin will overtake the U.S. dollar as the dominant form of global finance by the year 2050—putting the bitcoin price at just over $66,000 by the end of 2021.

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"Some countries will leverage bitcoin as their primary currency of choice," said one panelist, Thomson Reuters technologist and futurist Joseph Raczynski, who said he thinks bitcoin will overtake the dollar by 2025 with a value of $150,000. "With fixed circulation, ease of transfer, it will serve them well to move to a 'bankless' model inherent in this ecosystem."

This year, El Salvador has adopted bitcoin as legal tender alongside the U.S. dollar in a controversial economic experiment. Other Central and South American countries have indicated they may follow suit in an attempt to escape dependence on the dollar.

However, the bitcoin price is predicted to fall further before finding a floor, with the panel consensus of $25,000 per bitcoin—down around $8,000 from its current price of around $32,000.

While 54% of the panel, surveyed by personal finance comparison site Finder, expect bitcoin to eventually overtake fiat currency—sometimes called "hyperbitcoinisation"—by the year 2050, 44% of panelists, including University of Western Australia associate professor Lee Smales, don’t expect bitcoin to ever become the dominant form of global finance.

"Ultimately I think bitcoin (and many other cryptocurrency assets) will lose out to central bank digital currencies—many of which will be live by the end of the decade," Smales said.

This week, Federal Reserve chair Jerome Powell said one of the stronger arguments for a digital dollar is that it could undermine the need for bitcoin, other cryptocurrencies and so-called stablecoins, digital currencies such as tether that are pegged to traditional assets.

In Europe, the E.U. has moved forward with plans to develop a digital euro over the next couple of years while China has already begun real-world trials of its digital yuan.

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Despite warning the bitcoin price could fall further in the coming months, over the medium to long-term the panel made an average bitcoin price prediction of $318,000 at the end of 2025.

"We're standing in the midst of the institutionalization of bitcoin," said Arcane Crypto analyst Vetle Lunde who forecast a $120,000 bitcoin price by the end of 2021 and thinks bitcoin will be worth $300,000 at the end of 2025 and $500,000 in 2030. "More funds are joining the space, the first country has adopted bitcoin as legal tender, and we have several exchange-listed companies now owning bitcoin. I believe this trend will continue onwards."

The Crypto Daily – Movers and Shakers – July 18th, 2021

Yahoo Finance 19 July, 2021 - 01:00am

A mixed start to the day saw Bitcoin fall to an early morning intraday low $31,210.0 before making a move.

Steering clear of the first major support level at $30,891, however, Bitcoin rallied to a late morning intraday high $32,000.0.

Falling short of the first major resistance level at $32,118, Bitcoin fell back to $31,300 levels and into the red.

The near-term bullish trend remained intact, in spite of the latest return to $31,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

Across the rest of the majors, it was a mixed day on Saturday.

Crypto.com Coin and Polkadot rose by 1.89% and by 1.73% respectively to lead the way.

Chainlink (+0.59%), Cardano’s ADA (+0.10%), and Ethereum (+1.20%) also joined Bitcoin in positive territory.

It was a bearish day for the rest of the majors, however.

Bitcoin Cash SV slid by 4.28% to lead the way down.

Binance Coin (-0.83%), Litecoin (-0.57%), and Ripple’s XRP (-1.59%) also saw red.

In the current week, the crypto total market rose to a Monday high $1,419bn before falling to a Friday low $1,248bn. At the time of writing, the total market cap stood at $1,282bn.

Bitcoin’s dominance fell to a Thursday low 45.47% before rising to a Saturday high 46.86%. At the time of writing, Bitcoin’s dominance stood at 46.27%.

At the time of writing, Bitcoin was up by 0.26% to $31,641.0. A mixed start to the day saw Bitcoin fall to an early morning low $31,514.0 before rising to a high $31,649.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin was down by 0.97% to buck the trend at the start of the day.

It was a bullish start for the rest of the majors, however.

At the time of writing, Chainlink was up by 0.87% to lead the way.

Bitcoin would need to avoid a fall back through the $31,590 pivot to bring the first major resistance level at $31,970 into play.

Support from the broader market would be needed for Bitcoin to break back through to $31,900 levels.

Barring a broad-based crypto rally, the first major resistance level and Saturday’s high $32,000.0 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $33,000 before any pullback. The second major resistance level sits at $32,380.

A fall back through the $31,590 pivot would bring the first major support level at $31,180 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$30,000 levels. The second major support level at $30,800 should limit the downside.

This article was originally posted on FX Empire

After Friday’s pullback, a Bitcoin move back through to $32,000 levels would support the broader market.

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This Is Why Ethereum Could Flip Bitcoin, According to Coin Bureau

The Daily Hodl 19 July, 2021 - 01:00am

The popular crypto trader and host of Coin Bureau is outlining why he thinks Ethereum (ETH) has a chance to reach a larger market capitalization than Bitcoin (BTC).

In a new video, the pseudonymous analyst known as Guy tells his 1.17 million subscribers that the decentralized finance (DeFi) space has the potential to attract a stampede of investors looking for yields that are superior to traditional financial instruments.

Given that DeFi is largely dependent on Ethereum, the analyst says the possible surge in adoption of decentralized finance protocols could fuel ETH toward becoming the biggest crypto on the market. He says the potential trigger could be Ethereum and other smart contract platforms going through their expected upgrades to become cheaper and more efficient.

The closely followed crypto influencer says that Ethereum has a good shot at overtaking Bitcoin and also names one catalyst that could seal the deal altogether.

At time of writing, multiple Ethereum exchange-traded funds (ETFs) have been filed for registration with the US Securities and Exchange Commission (SEC) but none have been publicly approved. The host of Coin Bureau posits that there’s a chance one of the filings has already been approved, though no announcement of an approval has been made.

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

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Analysis | How Derivatives Amp Up Already Heady Crypto Markets

The Washington Post 19 July, 2021 - 01:00am

It’s pretty massive. In one 24-hour period ending July 16, for instance, Binance, the largest crypto exchange, recorded $48 billion of derivative volume, more than triple the activity in spot trades, Coinmarketcap data show. For context, CME Group Inc. saw an average $104 billion worth of energy contracts change hands every day in April. At the peak of the crypto euphoria in April, outstanding Bitcoin futures reached as high as $28 billion and have since plunged to $12 billion, Bybt data show. In June, more crypto derivatives were traded than actual coins, the first time that had happened in 2021, according to data tracker CryptoCompare.

2. What are they used for?

Old-timey derivatives like futures and options were invented long ago to give traders ways to hedge their positions, that is, to make side bets that would lessen the pain if the market turns against them. Of course, they have long been put to more speculative purposes, often as ways to add leverage to trades -- and sometimes with spectacularly destructive effects, as was seen in the 2008 financial crisis. Hedging happens in crypto, too, especially by those with an economic stake such as miners, but it’s safe to say “to the moon” is largely the name of the game when it comes to crypto derivatives trading. That’s evident from the fact that most of the time on the top exchanges -- especially before the recent drawdown -- bullish positions exceed bearish ones. Major crypto exchanges like Binance where much of this derivative trading takes place have loudly advertised the ability to gear up positions by more than 100 times.

3. What are the common crypto derivatives?

The biggest ones are taken directly from mainstream markets. These include:

• Options: A largely retail product that can offer both bullish and bearish exposure.

• Regular futures: Contracts with different expiry dates, similar to those for commodities.

• Non-deliverable forwards: Futures with no physical settlement, in which the two parties settle the gap between the spot and forward price. Bloomberg News has reported Goldman Sachs Group Inc. started trading these in April.

• Leveraged tokens: Assets that offer a bullish or bearish exposure to cryptocurrencies, with a fixed leverage ratio on FTX and a floating one on Binance. Similar to leveraged exchange-traded funds, these allow traders to make big bets without worrying about collateral or margin requirements.

• Perpetual futures: Also known as perpetual swaps, or just perps, they’re a kind of futures contract that has come into its own on crypto exchanges.

They were proposed for other purposes by the Nobel laureate Robert Shiller three decades ago, but their use in crypto was pioneered by the derivatives exchange BitMEX. (BitMEX’s founders were indicted last October and charged with skirting U.S. laws preventing money laundering.) Perps are futures without an expiry date, so traders can keep a position open without worrying about rolling one contract into another. Instead, perps are kept in line with the spot rate with a funding-rate mechanism: At any given interval (in practice, typically one or eight hours), investors on one side of a bet pay those on the other depending on whether the instrument is trading above the spot or below.

5. What other tools do traders use?

They’re not derivatives, but a number of regulated vehicles have become popular that allow investors to gain exposure to crypto on mainstream trading venues without holding the actual digital asset. They range from the Grayscale Bitcoin Trust BTC to the exchange-traded Bitcoin Tracker in Europe, both of which track the cryptocurrency’s price. Another category involves so-called tokenized versions of traditional assets. For instance, exchanges like FTX and Binance offer tokens backed by popular stocks like Tesla Inc. There are, in turn, also futures on these tokens. In the decentralized-finance (DeFi) corner of crypto, there are also synthetic equities, tokens based on shares traded entirely on the blockchain.

6. Where are these instruments traded?

The regulated Bitcoin futures and options are on CME. Beyond that, the derivatives catering to retail traders mostly change hands on unregulated crypto exchanges like Binance, FTX and Huobi. Deribit is where the majority of crypto options is traded.

7. What other strategies have migrated into crypto markets?

For the pros, the frenzied activity around cryptocurrency derivatives has invigorated a slew of traditional quantitative strategies. One trade popular earlier in the year, for instance, was to take advantage of bullish sentiment by going short on the futures -- the CME ones or the perps -- and long on spot, since the two tend to eventually converge. Another play is to sell options, which is to take the other side of the bet. Because of crypto assets’ high volatility and retail-dominant investor base, sellers get to earn rich premiums, though they also face a higher risk of paying out on the contract, akin to being an insurer in an earthquake-prone region. Some quant funds known as Commodity Trading Advisors -- that mostly ride trends across futures markets -- have also turned to momentum trading in crypto contracts.

More stories like this are available on bloomberg.com

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