Bitcoin’s Value Surpasses that of Four Prominent Banks in America

Going by an April 10, 2021 tweet from Documenting Bitcoin, the value of Bitcoin has exceeded a combination of America’s top financial institutions. The four banks included on the list include Citibank, JP Morgan, Wells Fargo, and the Bank of America. 

Bitcoin’s Reign

According to Infinite Market Cap, Bitcoin is ranked 8th position with a market cap of $1.121 trillion. The leading digital currency is behind well-known assets such as silver and Google Alphabets, each with a market cap of $1.378 and $1.536, respectively.

Compared with financial institutions, Bitcoin is ahead of four banks combined, with JP Morgan having a market cap of $473.85 billion, Citigroup $151.11 billion, Bank of America $345 billion, and Wells Fargo possessing $167.43.

BTC has a price of $60,0497 at the time of writing, after hovering around the $58,000 and $59,000 price for a week. In 2013, Bitcoin experienced rapid price bubbles where the digital coin began trading at $13.40 and shot up to $220 by April. 

By mid-April the same year, the prices dropped to $70. Despite this volatile nature, BTC is still ranked number one among the existing 9000+ cryptocurrencies in the market.

Institutional Investors on the Rise

Several factors could lead to Bitcoin’s tremendous rise in value; however, the most notable one is institutional buyers’ increase. Microstrategy recently added another 19,452 BTCs worth $1.026 billion at an approximate price of $52,765 per bitcoin. Grayscale is also among the most prominent investing institutions, holding close to 572,644BTCs, a value worth $34,607,740,140 billion based on its current prices. 

JP Morgan has similar interests in the digital currency as it reportedly predicted that the price of Bitcoin might attain a long-term price target of $130,000. JPM continued to mention that a reduction in volatility could propel Bitcoin towards global institutional adoption.

Why BTC?

Bitcoin was first launched into the financial market in 2009, bringing along the concept of a decentralized system running on a blockchain network. In essence, miners are solely responsible for maintaining the network’s security as they verify transactions on the distributed ledger. 

Furthermore, it automatically eliminates the need for intermediaries who will complete the transaction operation with miners on the system. 

In return, Bitcoin creates an incentivized ecosystem whereby miners are rewarded for handling transactions on a blockchain. Each transaction takes place on an anonymous network as it only requires a wallet address to conduct transactions. 

These and more features make Bitcoin a desirable asset to both retail and institutional investors. Payment companies such as PayPal have moved to integrate Bitcoin payments across its global vendor-base system.

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Bitcoin Options Expiry Tipped to Hit $6 Billion Mark

Bitcoin traders and investors are searching to indicate what might move the market as a record near $6 billion worth of bitcoin options is set to expire on March 26.

Boosted Market Cap, Dwindling Rally 

Bitcoin is racing past a trillion-dollar market cap, reaching an elusive milestone and opening the door for new opportunities. Bitcoin returned to near its all-time high with a price of roughly $57,500 on Monday morning. The figure comes after a week of steady price levels over $54K. However, at the time of writing, BTC continues to trade sideways around the $54,000 range.

Bitcoin options contracts that permit investors to buy or sell the cryptocurrency at a specified price within a set period are valued at around 100,000 bitcoin or almost $6 billion at today’s prices. 

This will expire on Friday, according to data from cryptocurrency analytics provider Bybt. The future options expiry is significantly more than the previous record of $4 billion, set in late January.

Bullish Outlook

Bitcoin has traded relatively horizontally for a couple of weeks being at roughly $49K at the beginning of March, reaching a peak of $61K on March 14.

The same day, Binance CEO Changpeng Zhao (aka CZ) wrote that he was not sure about everyone, but he got used to $60k already. Moreover, he asked why bitcoin was going sideways.

According to Pankaj Balani, the chief executive of the Singapore-based Delta bitcoin and cryptocurrency exchange, the expiry data suggests a bullish outlook.

Trading data indicates that speculators are feeling optimistic about bitcoin ahead of the record expiry. There is additional open interest in “call options” at the moment (bets that the bitcoin price will climb up) than in “puts” (bets the price will drop).

However, there are several indications that Bitcoin hodlers are not keen to sell their coins anytime soon. This could indicate that BTC’s price is not due for a significant drop soon.

Sensational Run

According to reports, Bitcoin is facing a severe liquidity crisis as the whales are not moving their digital assets; only 36% of Bitcoin’s supply has progressed over the past six months.

Bitcoin’s emerging record options expiry could flare price volatility, as previous large expiries have caught investor attention. The size of the bitcoin open interest market has soared recently, more than doubling since last summer.

Advocates believe that the world’s biggest cryptocurrency by market value will continue its remarkable run as growing numbers of institutional investors become involved and could act as a hedge against inflation, which many investors expect to rise.

Market analyst Joseph Young wrote on Twitter that giant Bitcoin whales are presently holding onto their coins while small whales are selling, with the caveat that 1,000 to 10,000 BTC whales could be exchanges. In conclusion, he asked investors which side they wanted to represent them.

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Analysts Speculate Money Boom as M2 Supply Follows Upward Trend

According to financial analysts, the money supply has seen a 26% increase since February 2020. The last time that level of increase transpired was over 70 years ago.

Facing Unique Financial Times

Bitcoin, which several analysts term as a ‘speculative asset’, has recently had price surges, reaching new all-time highs in just a couple of weeks. This price boost in digital assets like BTC coupled with the now common economic trends including inflation might possibly be the catalyst behind the money supply increase. 

Cryptocurrency adoption is one factor that businessmen like Warren Buffet are very hesitant about. However, Hip-hop artists like Snoop Dogg and multi-billionaire businessmen like Elon Musk are driving the public to take the so-called ‘leap of faith’. These individuals have somewhat created a market manipulation illusion that has driven many into investments. The money supply is bound to grow when people decide to go beyond their comfort zones.

It hasn’t been a pretty ride for the monetary markets over the last year.

Each and every trend of monetary exchanges that follow the US dollar was predictable. It resulted in the increased price of raw materials, commodities, food commodities, fuel, and transportation products that consumers are used to and need, thus stimulating a boom or a double boom and subsequent price increases. The COVID-19 pandemic hasn’t been merciful either, almost forcing a large percentage of the population worldwide to make digital transactions.

Money In, Money Out

Financial speculators could argue that the increase in M2 supply would most certainly guarantee an inflation percentage increase. In the last decade, China’s monetary-supply growth averaged a 23% increase annually. Nonetheless, the inflation rates have hopped from negative percentages 10 years ago to about 2.6%  currently. 

Technology has changed many financial sectors positively. Capital markets have grown with massive investment, advanced and automated trading systems have sped up execution, firms have become more efficient and knowledge has been acquired at a faster rate than before. This results in additional cash flow and more money.

Crypto-verse Grows, Money Boom Looms

The BTC market cap recently surged past $1T and attained a new ATH, recording a $56K price valuation. Several other crypto prices such as Polkadot and BNB are on the rise and the much-awaited ETH2.0 network has seen many Ethereum investors go bullish rather than bearish. As digital asset prices fluctuate, the value of these assets has meant nothing short of increased volatility.

Safe to say, more people every day want a piece of the cryptocurrency cake, though, institutional investors are not exactly excited at the prospect of incorporating crypto in their portfolio. Bitcoin is quickly becoming one of the most well-known and fully utilized forms of currency. As more people discover the virtual collectible that has attracted a growing number of serious investors, the price of Bitcoin will continue to climb.

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Bitcoin (BTC) $ 26,306.05 0.19%
Ethereum (ETH) $ 1,588.86 0.50%
Litecoin (LTC) $ 64.33 1.23%
Bitcoin Cash (BCH) $ 210.32 2.78%