Bitcoin and cryptocurrency prices struggled to find direction in June after moving sharply lower through April and May.
The bitcoin price, down almost 50% from its peak of around $65,000 per bitcoin set in April, has managed to hold above the closely-watched $30,000 level—but has failed to make convincing gains.
Now, with around $1.5 billion worth of shares in the Grayscale Bitcoin Trust (GBTC) hitting the market on July 18—something JPMorgan named as a downside risk for the bitcoin price—researchers at U.S. crypto exchange Kraken have predicted the looming Grayscale unlock could be “positive for the bitcoin price.”
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Grayscale, the world’s largest digital asset fund manager with $24 billion under management, allows institutional investors to gain exposure to bitcoin through shares in its Grayscale Bitcoin Trust (GBTC)—a fund that currently holds just over 650,000 bitcoin tokens, some 3% of bitcoin’s circulating supply. GBTC shares are subject to a six-month lockup after being purchased.
“Despite one being a single-asset fund of the other, bitcoin and GBTC are two distinct assets with different forces influencing their respective prices,” Pete Humiston, manager of Kraken Intelligence, said in emailed comments alongside Kraken’s latest market recap report. “While we don’t anticipate the unlock window to have any major market impact, the trading strategies commonly used by institutional investors leads us to conclude that the event could be mildly positive for the bitcoin price.”
Large institutions make up a sizable proportion of the GBTC owners who’ll have their shares unlocked this month, according to Kraken Intelligence, pointing to recent Securities and Exchange Commission (SEC) filings.
These institutions are thought to have bought GBTC shares with bitcoin to harvest the premium to net asset value that GBTC was trading at and to do so may have shorted—or bet against—bitcoin to avoid being impacted by price volatility. As a result, if these institutions did cash out their GBTC shares they may have to buy bitcoin from the spot market to cover their GBTC hedge.
“The complexity and duration relating to repositioning in the market amidst the GBTC share unlock is not black and white,” the Kraken Intelligence report read. “On its own, it’s not likely significant enough to immediately impact bitcoin’s price like some claim.”
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Last month, JPMorgan analysts predicted the bitcoin price could fall as low as $23,000 per bitcoin before finding a floor, pointing to the GBTC unlock as a potential risk.
“Selling of GBTC shares exiting the six-month lockup period during June and July has emerged as an additional headwind for bitcoin,” JPMorgan analysts wrote in a June note.
The latest bitcoin price rout, sparked by China’s bitcoin and crypto crackdown and exacerbated by Tesla billionaire Elon Musk’s fickle attitude toward crypto, stalled bitcoin’s massive 2021 bull run.
However, Kraken researchers expect the most recent negative news out of China to have only a short-term effect on the bitcoin price—pointing to bitcoin’s previous performance in the aftermath of earlier bitcoin and crypto clampdowns in China.
“When looking as far back as 2013, one will find a myriad of headlines out of China that speak to the country’s distaste for crypto-assets,” Kraken analysts wrote. “While many of these news announcements were followed by bitcoin slumping in the day, week, and month that followed, bitcoin has tended to continue pressing higher in subsequent months.”
Ethereum has been testing the $2,300 price resistance range during the recent market recovery posed by the market. Total crypto market capitalization has seen gains of 2% over the past 24 hours. This translates to about $70 billion in market cap gains over the last day. This new recovery comes in light of the news of bitcoin whales accumulating over 60,000 bitcoins in a single day. The biggest accumulation so far of 2021 in 24 hours.
The bullish news pushed the price of bitcoin over the $35,000 range and Ethereum broke $2,300 in that same time period. ETH had consistently traded under $2,300 over the past week. With bulls trying to push the coin over the hurdle but with no success. But in a small rally that followed the price of bitcoin, the coin had finally broken this important point.
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Although the price only stayed above $2,300 for a small amount of time, this is major news to Ethereum bulls.
Bullish News And Sentiment
Last week, news broke that number of active Ethereum addresses had risen higher than active bitcoin addresses. This comes after reports that bitcoin active addresses had hit a new low. This was after the number had hit a new record high at the height of the bull market.
Ethereum active addresses are reportedly over 700,000. While bitcoin active wallet addresses remain just north of 50,000. ETH market cap currently sits at approximately $264 billion.
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Although Ethereum still follows bitcoin in market cap and popularity, the coin is really gaining ground as the digital asset to be invested in. With so many improvements in the network, speculations abound that Ethereum will soon overtake Bitcoin as the digital asset of choice in the coming years.
Ethereum briefly breaks $2,300 before crashing back down | Source: ETHUSD on TradingView.com
As bullish sentiment increases, so will the number of new investors coming into Ethereum. The recent price spike has shown that market interest in the coin has not waned. The slow buildup of the coin might indicate a much bigger bull run just on the horizon as the coin takes time to recover.
Ethereum has been down over 50% of its all-time high. Going below the $2,000 range. Before rebounding and making a run for above the $2,000 price level.
Furthermore, news like JP Morgan’s analysts reports that Ethereum staking could become a $40 billion dollar industry by 2025 have investors being bullish on the recent upgrades. With over six million Ethereum currently staked ahead of ETH 2.0. Accounting for 5% of the entire circulating supply of Ethereum currently being staked.
Ethereum Making A Comeback
Each bull market sees a rise in the popularity of digital assets. This recent bull market has seen ETH’s popularity skyrocket. Countries like Isreal are testing their CBDC Shekel on the Ethereum network.
The move to ETH 2.0 prompts more investors to pick Ethereum over bitcoin as the leading blockchain due to the energy efficiency of the former over the latter. The move will also provide the network with more security and scalability. Hence drawing in investors whose sole worry about being in the crypto market is about security.
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The rise of DeFi has seen more investors in ETH. Giving investors a way to earn money while owning cryptocurrencies.
Ethereum investments have grown as investors buy the coins to get access to 32 coins that will enable them to run their own nodes in the proof of stake move coming in 2022.
As Ethereum continually tests the $2,300 price resistance range, bulls continue to work to push the coin what could be the start of another bull run.
Featured image from Libertex, chart from TradingView.com
Binance, the world’s largest cryptocurrency exchange, today announced it had suspended euro bank deposits from the Single Euro Payments Area (SEPA), the EU’s payment network, according to reports.
European users of the crypto exchange have received an email saying that customers could no longer deposit cash through SEPA, theFinancial Timesreported.
SEPA is a network that aims to make European payments quick, easy, and cheap by creating a single market for euro-denominated payments. Crypto traders use SEPA to transfer bulk sums of cash into exchanges. Now, Binance customers in the countries that use SEPA (currently 36) will not be able to use the system to deposit cash.
Binance has not responded to aDecryptrequest for comment.
According to theFT, the exchange said the move was “temporary” but due to “events beyond our control.” Users are still able towithdraweuros from the exchange via SEPA. And payments via credit and debit cards will not be affected.
Binance is already reeling from news this week that British bank Barclayswill prevent customersfrom sending money to the exchange. And the UK’s Financial Conduct Authority (FCA) last monthissueda consumer warning against Binance Markets Limited, a company acquired by Binance in order to facilitate the launch of a bespoke UK crypto exchange.
None of which will necessarily stop Europe- or UK-based Binance users from trading. But it does make it trickier.
Uniswap’s UNI governance token is up further in price, now up nearly 25% over the last week.
UNI is still more than 50% off its all-time high from May, echoing much of the crypto market with steep declines.
UNI, the native governance token of the Ethereum-based decentralized exchangeUniswap, hascontinued its upward momentumfrom the last week and gained even further value over the past day.
As of this writing, Uniswap’s token is up almost 9% over the last 24 hours to a current price above $22, perCoinGecko, with its one-week rise nearing 25%. Looking longer-term, UNI has jumped up nearly 39% in value over the last 14 days.
Like most of the crypto market, UNI is well off of its all-time high price: In this case, it’s down just over half from the peak of $44.92 set on May 3, two days before Uniswap was set to launch an updated version of its protocolcalled Uniswap V3.
As Bitcoin, Ethereum, and other top cryptocurrencies shed value afterTesla’s May decision to stop accepting BitcoinandChina’s ongoing crackdown on crypto mining, so too did Uniswap’s token. UNI’s price dipped below $15 per token in late May at its recent low point.
Still, Uniswap has posted some of the best recent gains as the UNI token attempts to claw back some of the momentum that the market experienced earlier this year. The market is uneven at the moment, with Bitcoin down by about 1% over the last week while Ethereum’s price has risen by over 10%.
Uniswap is one of the most popular decentralized exchanges (DEXs) on the market, allowing users to swap Ethereum-based tokens without a centralized intermediary. Users lock their tokens into liquidity pools to enable such transactions, and earn a share of the fees generated by each such swap.
According toDeFi Pulse, Uniswap currently has some $5.6 billion in funds locked within its protocol, making it the sixth most-valuable decentralized finance (DeFi) protocol as of this writing. The UNI token allows holders to vote on governance proposals that affect the way the protocol is operated and how funds are spent.
Lending protocolAaveis the leading DeFi protocol in terms of value locked, at $11.1 billion, and the AAVE tokensurged in priceover the last few days alongside word of an Aave Pro platform coming for institutional investors later this month.
Although it cooled off from the $346 peak seen earlier today, AAVE’s current price of $316 (via CoinGecko) still represents a nearly 39% rise in price over the last seven days and 46% over the last two weeks.
Popular crypto strategist and trader Michaël van de Poppe says five altcoins are showing signs of life after enduring the marketwide collapse in May.
Van de Poppe tells his 350,500 followers on Twitter that he’s watching the price action of decentralized application (DApps) platform Solana (SOL) as it looks to either breach resistance at $35.00 or print a higher low (HL) at $28.00.
“I’m waiting for an entry on this one as it’s currently acting inside resistance. Not assuming it will break immediately, but definitely looking for a HL (or higher resistance flipping for support) to get triggered for a position.”
Next up is Elrond (EGLD), a platform that provides tools for developers and businesses to create infrastructure for the digital economy. According to Van de Poppe, Elrond has carved a bottom in its Bitcoin pair (EGLD/BTC) and is now gearing up to test its immediate resistance at 0.0032.
“I’m expecting this one to be bottomed out after a beautiful retest of the weekly order block. The range high around 320,000 satoshis (0.0032) is critical, as that one blocks new ATHs (all-time highs). For entries -> searching for a HL around 220,000 (0.0022) sats, and then I’m in.”
The third coin Van de Poppe has his eye on is The Graph (GRT), a platform that indexes and organizes blockchain data. The crypto strategist predicts GRT is preparing for a strong surge provided that it generates a bullish higher low setup.
“This one looks to be bottomed out too, as it made a full retrace towards the levels prior to the rally. Granting itself another HL and we could see a rally of approx. 130%, which is similar toAXS(Axie Infinity) in the past days.”
Number four on the trader’s list is blockchain scaling solution Polygon (MATIC), which Van de Poppe says must take out a key resistance area to ignite bullish momentum.
“USDTpair looks better than the$BTCpair, and it’s stuck inside a range, just like most of the markets. Critical breaker around $1.35, while support can be found between $0.90-1.00.”
The last altcoin on the analyst’s radar is the public network for peer-to-peer payments Hedera Hashgraph (HBAR). Van de Poppe expects HBAR to resume its bullish trend as long as it holds a critical support level.
“Most likely bottomed out, just likeEGLD. A retest of the block, which was the block prior to the rally. Since then, trending south, but if we hold support one more time and/or crack critical resistance -> new uptrend starts.”
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A reimagination of “Beyond Order” by Jordan Peterson through the lens of Bitcoin.
These essays mirror the exact chronological structure of “Beyond Order” by Jordan Peterson, offering a reflection through a Bitcoin lens. This is chapter 6 of a 12-part series. If you read the book, it adds a second dimension. All quotes credited to Jordan Peterson. All reflections inspired by Satoshi Nakamoto.
The Wrong Places
“I find it heart-wrenching to see how little encouragement and guidance so many people have received, and how much good can emerge when just a little more is provided. ‘I knew you could do it’ is a good start …”
Technology moves so fast that staying current is a full-time job that gets harder with age. Younger generations born into tech take to it like a fish to water. Older generations struggle to grasp technology and the feeling of obsolescence naturally engenders resentment. Traditionally, older generations encourage and guide younger generations, but, with respect to technology, those tables have turned. Technology enables young people to grow up too fast. There are millions of experts and guides on the internet versus mom and dad (if you’re lucky). And mom and dad can’t compete with the collective knowledge of the internet.
Bitcoin is popular among the younger tech savvy crowd. Could it be that the resentment from the older generation stems from their fear of technology itself? Bitcoiners claim to see the writing on the wall, while fiat holders cling to the ridiculousness of money backed solely by decree. Those who fear what they do not understand cast arrows understandably. But, when we respond in kind, it does neither party any favor. In this bizarre age of the internet, it is not more insults needed rather than encouragement and guidance of our fellow man. When your Bitcoin knowledge comes into contact with a no-coiner you should expect them to reject it out of fear of the unknown.
I’m certainly guilty of going overboard on more than one occasion. It can feel good to flex your knowledge in a bit of dueling pistols. In hindsight, a better place to start is to offer a bit of encouragement or guidance. Show someone how easy it is to send bitcoin over the Lightning network. Make the scary Bitcoin technology feel approachable. That will give you the power to say, “I knew you could do it.” Ironically, patiently dispensing our wisdom applies to our parents. Do not mock the older generations for their fear of what is new, creative and unknown — show them love and help them. It is tempting to twist them into Bitcoin submission but my best advice is to take it slow because time is on our side. Bitcoiners know the sooner the better, but if you want to be successful with no-coiners, educate with a better late than never mentality. And when it clicks, “I knew you could do it” is a good start.
“… the meaning that sustains life in all its tragedy and disappointment is to be found in shouldering the noble burden. Because we have not been doing this, [young people] have grown up looking in all the wrong places.”
The world is awash in money. It seems to be everywhere except your bank account. Trillions are printed and distributed. Internet stars flaunt their successful lifestyles. And we can’t stop staring. Humans are mimicking creatures. What we see influences us and we cannot help but imitate. What’s obvious is a small group of people with an outsized internet presence display dreamy lifestyles we can see but cannot touch. They dangle utopia before our eyes and somewhere within us we believe it is within our reach. So, we mimic in pursuit in all the wrong places.
The internet offers everything but pushes entertainment and controversy to the forefront. And you only have one pair of eyes. To find a noble burden you may need to search rather than be guided by the algorithms of internet giants. You are a meal ticket to the internet. Like Neo in “The Matrix,” shouldering the noble burden must be a voluntary choice. Bitcoin is one such noble burden. It is no small choice to opt out of the financial regime you were born into.
“And this has left them vulnerable: vulnerable to easy answers and susceptible to the deadening force of resentment.”
The internet is a deceptive beast. It surfaces only the outliers on the bell curve. It is designed to promote extremism in every category. That is what is pushed to our screens, that is the content we cannot help but share with our friends. And when so much of what we see appears easy yet unattainable we feel insecure. It’s often said that capitalism thrives by making you feel insecure. The internet took that into overdrive. We are never going to measure up to the standards the internet portrays.
National currencies are exhibiting similar behaviors. There are wizards of money in the government who magically print trillions to save us — or so we’re told. They give us easy answers to troubling times. We do not control this money, but it’s flaunted in front of our faces. We get to nibble on the bits keeping us vested in the process. The lifestyle of the elusive internet star to its viewer is no different than the person with the power to print money while you must work for it. You will never measure up regardless of how hard you work. On many levels, we know that so many of us give up for a damn good reason: Working is tainted with futility when the game is rigged.
Perhaps He Is Only Sleeping
“Friedrich Nietzsche famously announced ‘God is dead.’”
You remember 10 years of people telling you Bitcoin is dead? Bitcoin Obituaries will jog your memories. Before panicking about price, take a step back and think about how far the narrative has come. Nietzsche’s quote is not a celebration but rather a warning. If Bitcoin dies, so does our best chance at a universal better, brighter future. That’s what is at stake. Countless modern political movements over redistributing wealth, freedom, equality, opportunity and power will be positively impacted by Bitcoin. And it won’t be a helpless asymmetrical uphill battle. It’s inherent in the source code.
“The doubt that undermines and the uncertainty that crushes: Nietzsche’s prognostication for the two alternatives that would arise in the aftermath of the death of God.”
God serves as an anchor to His believers despite the fact we live in an era of peak skepticism regarding religion. Our societal unraveling is, in part, explained by our lack of morality once derived through community and church. It is no wonder that society is in a downward spiral when considering our desperate pursuit of money over morality. Modern money is so cleverly designed to consume all our time. Buying bitcoin buys you time.
In the aftermath of the decline of money, what will you anchor yourself to? The founding of our monetary system is as much a conspiracy theory as Bitcoin. What can you possibly trust? And our lives are overwhelmed by uncertainty with an endless stream of cataclysmic threats. Study money for long enough and you will come to the conclusion that what is happening now has happened many times before. Bitcoin’s irony is that it makes crystal clear sense to people in third world or developing nations who have questionable money. The benefits are a godsend. It is America, above all else, where our top position is the very thing which creates doubt, confusion and uncertainty regarding Bitcoin.
Doubt and uncertainty come to those without anchors. Nietzsche pronounced “God is dead” not in a celebratory tone but as a dire warning of the consequences. Where do we get our morality from? In my lifetime, people have gone from worshipping God to worshipping the dollar. People put the dollar on the highest altar. Yet we know it is an unanchored entity. It’s no wonder we’ve lost our sense of morality. It’s no wonder we’ve become directionless. Bitcoin is an anchor, a center of gravity. Look around yourself, what anchors do you have left?
“What if there are experiences that typically manifest themselves to one person at a time … but appear to form a meaningful pattern when considered collectively?”
Bitcoin is a grassroots movement. Individuals must come to terms with whether that means they believe or do not believe in its validity. There are many roads that lead to Bitcoin’s adoption yet all share the same final destination: It demands responsibility. Final settlement places the responsibility on the owner. You are the backstop. If you trust an exchange to hold your bitcoin and they lose it, that is your loss. If you lose your hardware wallet, it is your fault. This is a massive shift in mindset. Bitcoin skeptics point to its lack of FDIC insurance. Fiat has trained us that money is replaceable. If you lose a bar of gold, it is gone. It harkens back to a time when responsibility was far more visceral.
America has made a business out of risk reduction and strategically distancing oneself from responsibility. It has become a terrible top-down American skillset weaponized by our institutions and cultural pastime adopted by citizens. It’s no wonder we’ve become soft as a nation. Jocko, Jordan Peterson and David Goggins are such popular speaker authors explicitly because it seems they are our only leaders who promote the benefits of running toward responsibility. This includes our money. Politicians used to balk at large spending bills asking, “How will we pay for this?” Notice that the question of responsibility rarely gets asked these days. If all you had to do to solve problems is print money then why pussyfoot around? Why not give everyone a million dollars? Bitcoin is an illusion-shattering reality. America has become so accustomed to money being manipulated that we no longer recognize honest money.
The Fatal Attraction Of The False Idol
“… the ideologue can place himself or herself on the morally correct side of the equation without the genuine effort necessary to do so validly, it is much easier and more immediately gratifying to reduce the problem to something simple and accompany it with an evildoer, who can then be morally opposed.”
“Bitcoin fixes this” is a misconstrued meme by both Bitcoiners and no-coiners. Bitcoiners following party lines believe all problems can be solved by fiat when this is simply not the truth. Better money certainly applies to an enormous spectrum of problems, yet there are plenty of underlying problems specific to each individual problem divorced from currency. Without doubt, freely printing money leads to the predictable deterioration of everything, but it also serves a purpose. During the pandemic, one can make the case that being unable to print trillions would’ve led to untold millions suffering and possibly perishing. What would have happened if we couldn’t print?
“For the ideologue, however, nothing remains outside understanding or mastery. An ideological theory explains everything … This means that an ideologue can consider him or herself in possession of the complete truth.”
Central Banks and Bitcoiners alike are guilty of believing their product cures all ailments. Both Jerome Powell and Neel Kashkari shocked the world when they exposed the Fed’s God-like ability and willingness to print unlimited money by simply editing the account. Bitcoin purists live on the opposite end of that spectrum. They are like surgeons who don’t believe in sedatives, because it weakens the human spirit. There is something noble to this way of thinking. But seeing how much pain and suffering already exists in the world, it must be believed that a responsible dose of painkillers is tolerable so long as it does not become an addiction. Around the year 1971, our money began its dark descent into our modern addiction. So, WTF happened in 1971? Nixon severed the tie between the U.S. dollar and gold; that’s any indicator. This evidence seems so utterly convincing but it isn’t to say it’s the complete truth.
I believe it’s possible our complex world benefits from, and may require, both systems in the near term — USD and bitcoin. We will need a bridge to get to mass Bitcoin adoption and hyperbitcoinization is likely a terrifying approach. I’m hesitant to believe any one system completely encompasses the countless economic scenarios to come. That said, we are fully addicted to unlimited money and are in dire need of homeostasis. I have no doubt that bitcoin restores balance in contrast to fiat’s recklessness. “Fix the money, fix the world” is another Bitcoin meme. Our world is in such dire straits, I fear we will need both bitcoin and central bank digital currency (CBDC) for the foreseeable future, as painful as that sounds to Bitcoin purists.
“This is a terrible trap: Once the source of evil has been identified, it becomes the duty of the righteous to eradicate it.”
There is palpable tension between nation states, banks and Bitcoin. Nation states have shifted tone from “Bitcoin is a scam” to “Bitcoin is speculative” to “Bitcoin is a gold alternative.” In other words, our government is coming to grips with the fact it underestimated Bitcoin. We should not repay the favor. Bitcoin has gone from playing in the shadows to being on the cusp of mainstream adoption. Bitcoiners may be repeating our government’s folly as our tone is shifting from “Bitcoin is digital gold” to “Bitcoin is money” edging ever closer as the Bitcoin community senses national currency vulnerability. A subset of Bitcoiners press the aggressive idea that the U.S. dollar is a scam. While the comments have merit, this is dangerous ground as it oversimplifies a complex macro economy.
U.S. dollars are a functional high utility tool losing value. Bitcoin is blessed with value and building layers toward high functionality. Bitcoin will win, but we need to learn how to bridge these two worlds. Bitcoin is the escape hatch at the end of the tunnel. Good comes from tribalism, but the negative elements include the idea that the dollar exists solely with evil intention. It ignores the reality that the dollar, by and large, is the fabric that connects our world and establishes order. In our eagerness to see continued adoption of what we believe to be a harder money, we may be wholly unprepared for life without the U.S. dollar altogether. Be careful what you wish for. Most failures are in execution.
“We’re still so early” meme calls out signals by no-coiners. Bitcoiners spend a lot of time being attacked. Now that momentum is shifting. How will we act when we begin to get a taste of power? In “Crossing The Chasm,” we are exiting the Innovators stage and entering the Early Adopters stage. It’s far too early to claim victory and far too soon to believe Bitcoin will simply be set to cruise control into the sunset. Will we become the monsters we’ve replaced?
“It is much safer morally to look to yourself for the errors of the world …”
Bitcoiners are known to behave like white blood cells, actively attacking suspected intruders. Before we go on the full offensive and tear down every national currency in the belief they hold no purpose and bitcoin can suffice … perhaps it would behoove us to remain focused on building what bitcoin can offer rather than criticizing what dollars cannot do.
“To take the world’s sins onto yourself — to assume responsibility for the fact that things have not been set right in your own life and elsewhere — is part of the messianic path: part of the imitation of the hero…”
If you believe your money has not been set right, it is on you to take responsibility. For some that may mean buying gold. For others, bitcoin. Part of the hero’s journey is to confront and overcome a great challenge, be changed in the process, then come home to reintegrate that change within society.
In my life I’ve learned you get a lot more credibility when you don’t bad mouth incumbents, competitors or alternative solutions. We lose credibility when it’s discovered we selectively straw man our opponents. Credibility is built when we can point out the differences while minimizing personal bias. Major credibility can be gained when we steelman the opposition prior to pointing out the differences.
It is hard to change yourself and it’s exceptionally difficult to change another grown up’s mind. Cory Klippsten put it best that “Bitcoin marketing is Bitcoin education.” But know that, if national currencies continue to harm its citizens, it will push its citizens toward better options. That same game theory exists between nations as those at the bottom with more to gain will benefit asymmetrically with Bitcoin-friendly legislation. For the first time in 100 years, the future of money is up for grabs. Jack Mallers believes Bitcoin’s key differentiator is its openness and I tend to believe the same.
Abandon Bitcoin Ideology.
This is a guest post by Nelson Chen. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.
According to a recent report, the stock exchange in the Philippines is targeting to be the forerunner of cryptocurrency trading in the country.
Once the SEC and financial regulators give their go-ahead guidelines, the stock exchange plans to kick-start the plan. It seems that the Philippine Stock Exchange has been waiting for this approval and preparing for it.
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According to what CEO Ramon Monzon and PSE President disclosed to our source, the stock exchange management met two weeks ago about this idea. The discussion leaned towards establishing a cryptocurrency exchange in the Philippines.
The two heads of the stock exchange maintained adequate investor-protection safeguards and trading infrastructure to ensure a seamless experience for traders. According to them, these two factors are very critical to cryptocurrency trading.
Rising Interest In Philippines Necessitates Local Cryptocurrency Exchange
CEO Monzon told our source that the Philippians are becoming more interested in cryptocurrencies. As such, it’s no longer ideal to ignore the need for a local crypto exchange to cater to the need of crypto investors.
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That’s why they’re only waiting for the SEC’s guidelines on how to operate such an exchange in the country.
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Monzon also disclosed that the Philippian SEC had started its inquiries into the necessity of approving a crypto exchange in the country.
According to the CEO, SEC has been gathering comments from investors, the public, and even banks since 2019. The agency has been trying to find out their inputs about establishing a cryptocurrency exchange in the country.
The cryptocurrency market is up by 1% after dropping significantly a few days ago | Source:TradingView.com
The Philippines has always been supportive of digital assets. Based on the Philippine Central Bank activities, it is obvious that the country is a crypto-friendly territory.
The Central Bank had already approved many crypto exchanges in the country by issuing them the license to operate.
Also, the citizens haven’t lagged in the cryptocurrency frenzy taking over the financial market. More and more people are demanding digital payments, and up to 10% of the total GDP comes from remittances. This is not surprising as the country has at least 10 million people working overseas.
Also, many people are interested in exploring cryptocurrency investment to alleviate poverty in the country.
The economy is struggling to stay afloat, and many citizens see cryptocurrencies as a way out. Many people now play the “Axie Infinity” mobile games that pay winners in cryptocurrency to make extra income.
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As for crypto trading and its underlying risks, the Stock Exchange CEO believes it’s better to conduct it on a guarded platform.
According to him, cryptocurrencies are volatile, and that’s part of their appeal. However, the Philippine Stock Exchange should take charge of monitoring cryptocurrency trading and transactions.
Featured image from Pixabay, Charts from TradingView.com
Bitcoin (BTC) price continues to trade in a predictable range which has given traders confidence in trading altcoins and DeFi tokens. This translated to a 110% rally in the price of Alpha Finance Lab (ALPHA) over the past four days.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.30 on June 22, the price of ALPHA has rallied 196% to a monthly high at $0.89 on July 6 as its 24-hour volume spiked 433% to $293 million.
Reasons for the building momentum for ALPHA include protocol improvements to Alpha Homora V2, the launch of the Alpha Launchpad and an attractive price per earnings ratio (P/E) when compared to competing platforms.
Protocol upgrades promote interoperability
The biggest upgrade for the Alpha Finance Lab protocol came back on February 1 with the launch of Alpha Homora V2 which brought a new level of interoperability to the project by allowing users to conduct leveraged yield farming on Curve, Balancer, SushiSwap and Uniswap.
Excitement for the launch was followed by ALPA price hitting an all-time high at $2.95 on Feb. 6 but the Iron Bank exploit on Feb. 13 drained $37 million from the Alpha Homora protocol and pulled the price back below $1.
Following the hack, integrations with Binance Smart Chain, ALPHA staking and the launch of AlphaX, a “non-orderbook perpetual swap trading product” that allows leveraged long and short positions helped to boost the altcoin’s price.
Alpha Homora V2 also includes a basic farming mode designed to simplify the process and the recently unveiled Alpha Launchpad claims to be “the first and only DeFi incubator program created by builders for builders.”
The release of the Launchpad was covered in a recent report from Delphi Digital, which called its launch a potential “dark horse catalyst for Alpha” that has likely not yet been priced into the market.
Delphi Digital said,
“Alpha’s launchpad will potentially accrue more value to token holders as they will receive a portion of cashflows from new protocols that are incubated by the Alpha Finance Lab ecosystem.”
Revenue from fees makes an attractive value proposition
One of the more notable features of the ALPHA protocol is its fee structure, which takes 20% of all borrow interest in V2 and 10% of the borrow interest in V1 to pay out stakers.
Related:Trustless bridges may be the key to blockchain interoperability
A recent report from Delphi Digital highlighted the protocol’s fee structure and calculated that the V2 annualized protocol earnings are projected to be $6.53 million, meaning that “Alpha trades at a relatively cheap P/E ratio compared to its peer group.”
As shown above, the fees generated per dollar of total value locked which is significantly higher when compared to competing platforms.
Delphi Digital said,
“From a capital efficiency standpoint, Alpha is in a league of its own, with the amount of fees it generates per $ of TVL at $0.27. For context, the runner up for this metric is Compound at $0.05.”
Alpha Finance Labs alsoestimates that the annualized fee revenue for the project across all platforms is projected to be roughly $15.28 million.
When this figure is combined with the continued increase in the number of ALPHA tokens being staked on the network, the bullish case for Alpha Finance Lab is further strengthened as DeFi becomes part of the mainstream conversation.
According to Rekt Capital, a pseudonymous crypto Twitter analyst, ALPHA price is looking over-extended in the short-term.
$ALPHA / #BTC – #alpha #Alphafinance
ALPHA has enjoyed a phenomenal run up this week
But it has reached a pivotal resistance area (red)
I’d only expect further upside upon turning red into support as that could unlock an additional +40% rally towards the orange area#Crypto pic.twitter.com/RZlrB4Nk8W
— Rekt Capital (@rektcapital) July 6, 2021
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Cryptocurrency services company BlockFi launched its first-ever crypto rewards credit card, in conjunction with Visa, to approved clients in the United States on Tuesday. BlockFi’s plans for a credit card were initially disclosed in December 2020 when the exchange released a waiting list for US-based clients, which is now over 400,000 people. BlockFi CEO Zac Prince expects everyone on the waitlist to receive their card around the end of July.
The new offering provides clients with a simple way to acquire bitcoin without having to pay fees or navigate the sometimes complicated onboarding processes at exchanges. BlockFi stands to benefit from utilizing the card as a customer acquisition tool as well as financially from the fees it will receive from money spent on the card.
“The crypto industry has come a long way since the first Bitcoin payment transaction 11 years ago,” Flori Marquez, Co-Founder and SVP of Operations at BlockFi said. “Today, nearly everyone knows about the important role crypto plays in reshaping the financial space, and our new credit card is set to be another game-changer. This card will make it easier than ever for people to earn Bitcoin back while making day-to-day purchases.”
Holders of BlockFi’s Rewards Visa Card will be able to earn 1.5% back in bitcoin on every purchase, with the payout increasing to 2% on every dollar spent over $50,000 annually. As an incentive to new users, they will receive a 3.5% bitcoin rewards rate for the first 90 days or until they receive $100 worth of bitcoin. Cardholders can earn 2% back in bitcoin on every dollar spent over $50,000 annually. The card also offers other benefits such as rebates on trading fees and comes with no annual fee or foreign transaction fees.
These rewards are competitive when compared to other traditional cards. For example, Bank of America’s Customized Cash Rewards credit card offers 3% cash back in one spending category of the customer’s choosing, 2% back automatically on grocery purchases and 1% back on all other purchases.
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However, they could be outshone by Gemini, the crypto exchange headed up by the Winklevoss twins, when it launches its crypto rewards credit card this summer in partnership with Mastercard. While BlockFi only offers rewards in bitcoin for now, Gemini will give clients 3% back in any cryptocurrency offered on the exchange without annual fees or exchange fees.
The launch of the BlockFi crypto rewards credit card also marks a new offering in Visa’s expanding crypto business. The electronic payments company has partnered with several crypto firms to offer Visa debit cards and supported over $1 billion worth of volume through crypto-linked cards in the first half of 2020, but the partnership with BlockFi will bring its first crypto rewards credit card. In 2021, Visa appeared on Forbes’ Blockchain 50 list after applying for over 150 blockchain-related patents and announcing an integration with US-dollar pegged stablecoin USDC.
“Crypto rewards programs are a compelling way to engage consumers in the crypto economy,” Terry Angelos, SVP and Global Head of Fintech at Visa said. “We’re excited to see programs like the BlockFi Rewards Visa Card, which offer rewards that are relevant to the growing community of digital currency adopters.”
Bitcoin has been moving sideways as the rest of the crypto market, especially Ethereum and the DeFi sector, show strength. The first cryptocurrency by market cap needs to make a decisive move to break out of its current range but could face downside in the short term, some recent reports claim.
Banking giant JP Morgan released a report written by its strategists Nikolaos Panigirtzoglou on the alleged bearish signals caused by the coming Grayscale Bitcoin Trust (GBTC) shares unlocking. The analyst expects this event to be a headwind for Bitcoin during July.
This investment product allows its holders to sell their GBTC shares only after a 6-month lockdown period. Panigirtzoglou expects investors to liquidate their shares worth around 140,000 BTC worth of shares. Thus, they will create selling pressure in an already weaken BTC’s price.
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one thing we haven’t discussed yet – the grayscale $GBTC unlock schedule is looking really crusty
from mid-april to mid-june, 139,000 bitcoin worth of shares have unlocked. there’s another 140,000 bitcoin worth of shares that will unlock through the end of july
— Meltem Demir◎rs (@Melt_Dem) June 23, 2021
This bearish theory has been gaining momentum and raised concerns amongst investors and traders. Alex Mashinsky CEO at Celsius Network shares this vision and predicts BTC’s price to drop in the coming weeks.
This will be the third and final capitulation event, according to Mashinsky, before Bitcoin resumes its rally towards $100,000 by the end of 2021. The unlocking is due by around mid-July. During this period, the GBTC discount will increase to 25%, Mashinsky said.
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Later, he predicts that some hedge funds will want to leverage the arbitrage opportunity between Bitcoin’s price in the spot market and the GBTC discount. Thus, they could short BTC and purchase GBTC with a higher discount.
At least $5B will have to be unwound off $GBTC which may take BTC prices back to the $29k levels
After this July sell off we should see smooth sailing for the rest of the year as we break new ATH on our way to the
The Most Bullish Scenario For Bitcoin? A Path Towards $100K
On-chain analyst Willy Woo thinks there are two potential impacts. Their interactions will determine how the crypto market will be affected. However, he expects the GBTC unlocking to be predominantly bullish in the short term.
JP Morgan is bearish on the GBTC unlock coming up.
Here I’ll go through the inner workings so you can make up your own mind.
There’s 2 impacts, one bullish, one bearish. The key is in how they interact. IMO it’ll be immediately bullish.https://t.co/xcfMbhCBPP
— Willy Woo (@woonomic) July 6, 2021
The GBTC is structured to receive BTC without it ever leaving the trust. Thus, Woo said that the only way for this product to reduce its holding it’s via the 2% fee charged by Grayscale. In the derivatives sector, investors can buy BTC in the spot market to purchase GBTC while taking a short position.
In doing so, they can hedge their position while they receive money from their short. When the unlocking period comes, investors can sell their GBTC shares and close their short. This is a bullish case since investors must buy BTC on the spot to acquire the shares.
At the moment, for this trade to be profitable, Bitcoin must stand above its yearly open, around $29,000, by the time the unlocking takes place if investors bought the shares back in January. Hedge Fund and other major players invested in the GBTC have incentives to hold that critical support.
The second impact could take place in the spot market. The unlocking would cause the GBTC premium to drop and could motivate investors to purchase shares instead of Bitcoin on the spot. Woo added:
(Impact 1) is sudden and directly impactful than while (Impact 2 2) acts very slowly. Thus it’s a bullish. The over all impact over the long term is neutral as it’s all arbitrage which balances out in time. What we are analysing is the short term demand/supply imbalances which may impact price.
Other experts failed to see the connection between the unlocking and BTC’s price. In any case, July seemed poised to be a decisive month for the overall market. The bulls could finally receive the push the need to re-enter price discovery mode.