Let’s start this week’s communication by thanking the many curious or passionate about cryptocurrency who joined us for the team’s very first 5 to 7 last Thursday at the Hôtel Bonaventure in Montreal. If there is one certainty after the success of the event and the pleasure that the guests share, it is that it will be the first of a long line!
It was a particularly quiet week for news in the cryptocurrency industry, while the trend in the markets reflected the trend in the last few months with a strong correlation between bitcoin and US technology stocks.
After Canada, it will be Australia’s turn to introduce crypto-asset-backed exchange traded funds directly next week. 21 Shares and ETF securities will launch the first spot-traded products on bitcoin and ether. The funds will store bitcoins and ethers in cold storage, where Coinbase is the custodian. “Australian investors clearly want and deserve an affordable, easy and professional way to access the growing cryptocurrency class,” 21Shares CEO Hany Rashwan said in a press release. For his part, the director of VanEck Gabor Gurbacs took the opportunity to launch an arrow at the US SEC, which, let us remember, is still against the launch of such a product in the US. He calls the conservatives’ conservative stance a “big loss for investors”. L ‘Australian Financial Review reports that it could see up to $ 1 billion in inflows to these new funds. Needless to say, these are driving the demand for bitcoin reserves in the midst of a declining supply, which can be particularly positive for the markets.
The analysts ofInsider intelligence estimate that the transaction value of crypto will increase by 70% by 2022 in the United States. In fact, according to the company’s latest analysis, the number of Americans who will use cryptocurrencies to make purchases in 2022 will reach 3.6 million. Meanwhile, a study by Gemini showed that new crypto investors almost doubled in India, Brazil and Hong Kong last year. More than half of the study participants in these countries mentioned that they started investing in crypto in 2021.
The beta launch of Coinbase’s non-fungible token marketplace has now been completed. To date, it only supports tokens based on the Ethereum blockchain. The platform incorporates a social layer and currently requires a standalone wallet. This launch comes six months after the announcement of the project. The platform is now available to some users added from the waiting list, which has accumulated millions of potential members since October. According to the company, users will be added in the order they sign up and the plan is to add everyone in the coming weeks. Coinbase’s platform launches without additional transaction fees, although there are still standard Ethereum gas fees. The marketplace will eventually introduce its own fees, as Coinbase VP of Products Sanchan Saxena described in a press briefing as “low single-digit fees.”
The marketplace has strong social networking behaviors. While some of this functionality – including comments – exists on Coinbase’s own centralized servers at launch, the company said it will gradually decentralize these features and move them to decentralized services in the future. At launch, Coinbase does not offer the ability to embed NFTs through the platform, but this feature will be available soon. In addition, Coinbase also plans to welcome new NFT project stocks through the marketplace, including some created by its various launch partners.
For volatile, cryptocurrencies? However, Netflix investors would definitely like to be there today! On the other hand, bitcoin’s 30-day volatility hits its lowest level in 17 months. The index, which measures the standard deviation of four weeks’ daily returns, fell to 2.2%, the lowest since November 5, 2020, according to data provided by Arcane Research.
This decline in volatility can be explained by various factors, including in particular the decline in opportunities to speculate in the high-margin market. The type of investor currently entering the market may also see the nature of bitcoin differently. As Kaiko Research’s weekly letter mentions, “Bitcoin and Ethereum trading volumes have both fallen significantly since December, as investors off-risk their portfolios amid growing macroeconomic uncertainty.” This is a theme that will definitely resonate in the ears of those present at our presentation last Thursday!
For Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, institutional acquisitions of BTC could become the hot story in the crypto area again. Ki highlighted figures from Coinbase Pro, the professional arm of the US stock exchange Coinbase, which confirms that large tranches of BTC continue to leave its books. These tranches totaled 30,000 BTC in a single day this week and this event is not isolated as March saw similar behavior. This shows that the recent US government decision-making has not dampened institutional players in the market.
We often say that being long bitcoin is equivalent to being short US dollars. The continuation of the DXY index, which this week crossed 100 for the first time since March 2020, will be particularly interesting to observe. Will we see a continuation of the recovery in the dollar strength, or will this resistance lead to a trend reversal?
Either way, it remained particularly positive that the $ 40,000 limit held for bitcoin, especially since many analysts expected much lower support tests. It’s the traditional 30- and 50-day moving averages that are now to be tested to hope for an increase to the main resistance – rejected at the beginning of the month – of $ 48,000.
The picture for 2022 is much less worrying in the current areas than it was in the last four-year cycle. This is so thanks to the lack of short-term holders or those who use bitcoin as a completely speculative tool. Even the most recent record highs of $ 69,000 in November 2021 were reached with relatively few speculative bets – in stark contrast to the record highs reached during the last halving cycle in December 2017. In addition, holders of long-term men hoping for a new price discovery are now those who support the market, not the new speculators who want to “buy dip”. In short, if the increase after the last halving was not as spectacular in percentage as in previous cycles, any subsequent correction could be much softer in parallel.
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Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..
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