Bullish for BTC: Bitcoin dominance through institutional investment back to 2019 level

The pioneering cryptocurrency has risen to fame again after DeFi summer stole much of the limelight.

Bitcoin’s dominance rises to 68%

According to data from the tracking site CoinMarketCap, Bitcoin’s market share dominance is now 66% after a long “DeFi summer” and a mini-old season in October. These levels were last seen in 2019, and the years before 2017 before that.

Bitcoin Superstar now accounts for 68% of the total crypto market and has a market capitalization of $ 433 billion with a current circulating supply of over 18.5 million Bitcoin .

The remaining market share is taken by Ethereum (10%), Tether and XRP (3% each), Litecoin (1%) and Cardano (0.76%) – all of them large-cap cryptocurrencies.

Bitcoin experienced a temporary slump in popularity and usage among retail investors in Q2 2020 as decentralized financial coins, networks and protocols (DeFi) saw increased interest and attracted investment from traders.

The period was marked by the rise of food tokens like KFC, YAM, SUSHI, HOTDOG, and a few others, with such protocols offering returns of up to 1,000% in some cases. Most of them failed, however, and the market has since moved on to seigniorage stablecoins.

However, some DeFi “blue chips” such as Yearn Finance, Synthetix, Aave, and others have continued to gain and maintain value and popularity.

But the king has since recovered. Bitcoin rose from under $ 11,000 in July and hit new highs in December. It exceeded $ 24,200 earlier this month after breaking key price levels such as $ 18,000 and $ 20,000 (its previous high).

The level of dominance has increased by over 100% since 2018, when the ICO frenzy of the time pushed Bitcoin to a dominance of only 32%. Ethereum rose to its highest level of 18% dominance at the time.

The big institutional bitcoin rush

Beginning in 2020, the narrative for Bitcoin turned for the better among traditional market players and institutional investment firms, with the ongoing pandemic and subsequent money printing fueling Bitcoin’s popularity among fund managers and investors.

Hedge fund manager Paul Tudor Jones raised up to $ 70 million in BTC futures in the first quarter of 2020, and other managers followed suit. In the past few months, Guggenheim Investments, Fidelity Investments, and Asian family offices have also announced that they are either buying BTC or are in the process of buying BTC.

But arguably the most significant purchase was that of corporate software manufacturer MicroStrategy. The company has been buying over a billion dollars worth of Bitcoin in various tranches since September to keep in its treasury, with CEO Michael Saylor tweeting regularly about the uses of Bitcoin ever since.

Such factors, coupled with a “supply-side crisis” (according to on-chain analysts) have done their part in the rise of Bitcoin in 2020.

The “Stable Act”, a new American law, could derail DeFi and stablecoins

A new law in the United States could pose a danger to stablecoins and the industry as a whole.

This new law could jeopardize up to a trillion dollars in transactions.

Regulatory crackdowns like this could lead to an exodus from US shores for stablecoin issuers

The decentralized finance ecosystem is growing rapidly and is starting to gain the attention of regulators. A new law in the United States could put stablecoins and the industry at risk.

Stablecoins are the backbone of DeFi, as they provide the lion’s share of liquidity in the ever-growing number of yield holdings and lending incentives. New regulatory measures could put trillion-dollar deals in the nascent financial industry at risk, according to a new study from IntoTheBlock.

Demand for and issuance of BitQT surged in 2020. Tether alone has increased its market capitalization and supply by almost 400% since January. There are now more than $ 20 billion in USDT in circulation, and regulators are starting to worry.

What is the Stable Act

A new bill from the US Congress called the “Stable Act” proposes strict regulations for issuers of stable currency such as Tether. The most important proposition is that all stablecoin issuers must have a banking charter or license, which is not currently the case.

As the latest Defiant newsletter indicates , such a crackdown could pose a significant threat to the DeFi industry, which is largely fueled by stablecoins such as USDT, USDT, and DAI .

The Stable Act also provides for the introduction of a Federal Reserve reporting and approval requirement at least six months prior to any new stablecoin issuance. Continuous auditing will also be a new requirement if the bill is passed. Another proposed rule is insuring or storing stablecoin reserves directly at the Federal Reserve, making it easier to convert to USD on demand.

If the Stable Act is passed, it will have a huge impact on the entire crypto industry.

Multi-billion dollar transactions

According to IntoTheBlock analyst Lucas Outumuro, who wrote the article, transactions involving stablecoins could be illegal if these strict regulations come into effect.

As of 2020, the cumulative amount of transactions made so far between USDT, USDC and DAI is over $ 1.04 trillion, which would be considered illegal if the Stable Act were passed at this time. moment .

He added that centralized stablecoins such as USDT and USDC , which now have more than $ 3.3 billion in circulation, could apply for a banking charter and meet the new strict requirements, but decentralized assets such as the DAI would be in trouble.

In addition, the bill also targets stablecoin validation software, which is considered illegal if it is not registered as a chartered bank. This would put Ethereum in the crosshairs since the majority of current stablecoins are based on the ERC-20 standard.

The European Central Bank has also warned against stablecoins and a major regulatory move like this could lead to an exodus of stablecoin issuers from the United States.

BITCOIN „UNICESTWIŁ“ SWOJE KLUCZOWE WSPARCIE PODCZAS OSTATNIEGO UPADKU; OTO, GDZIE STOI

W ciągu ostatnich kilku dni i tygodni Bitcoin Revolution napotykał na pewien intensywny opór, który hamował jego wzrost i powodował wiele silnych odrzuceń.
Presja na sprzedaż w regionie o średniej i górnej granicy 19 000 USD była dość silna i może nadal hamować wzrost w średnim okresie.
Jeden z przedsiębiorców uważa, że jakakolwiek utrzymująca się w najbliższym czasie słabość prawdopodobnie spowoduje, że w perspektywie średnioterminowej będzie ona znacznie słabsza.
Wynika to z faktu, że obecnie prowadzi on działalność handlową tuż ponad kluczowym poziomem wsparcia technicznego, który utrzymywał się na wysokim poziomie przez cały czas trwania jego tendencji wzrostowej.
Przerwa poniżej tego poziomu może spowodować zauważalne straty w najbliższym czasie.
Mimo to, reakcja na ten poziom z dnia na dzień wydaje się działać na korzyść byków.
Bitcoin boryka się z ogromnymi zawirowaniami, odkąd jego cena osiągnęła poziom 19.000 dolarów. Chociaż wielu inwestorów spodziewało się, że po wykorzystaniu tych wysokich cen, presja sprzedaży okazała się zbyt silna.

Doprowadziło to do wielu faz konsolidacji BTC, a także do wielu silnych transakcji sprzedaży. Tak długo, jak ta tendencja będzie się utrzymywać w perspektywie średnioterminowej, BTC prawdopodobnie obniży się, zanim osiągnie poziom z wystarczającym wsparciem, aby wywołać trwałą tendencję wzrostową.

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Jeden z traderów wyjaśnił, że ten ostatni ruch obniżył wsparcie dla Bitcoina, pozostawiając dno jego chmury jako ostatnie kluczowe wsparcie.

BITCOIN POGRĄŻA SIĘ, GDY PĘD DO GÓRY SPADA

W momencie pisania, Bitcoin handluje nieco poniżej 1% po obecnej cenie 18 450 dolarów. Oznacza to znaczny spadek w stosunku do tygodniowego wyżu o 19.400 dolarów.
Oznacza to również nieznaczne odbicie od nocnych niżów o 17.640 dolarów, które zostały wykorzystane podczas sprzedaży.

Odbicie od tego poziomu było zarówno intensywne, jak i bycze, ale wciąż ma jeszcze wiele do zrobienia, zanim ujrzy poważny impet w połowie sezonu.

HANDLOWIEC TWIERDZI, ŻE TO WSPARCIE OZNACZA OSTATNIŠ SŁOMKĘ DLA BTC
Jeden z traderów wyjaśnił w ostatnim tweecie, że Bitcoin jest teraz w niepewnej sytuacji, ponieważ jego ostatni kluczowy poziom wsparcia w krótkim okresie oznacza dno jego chmury, która siedzi na poziomie około 17 400 dolarów.
„Wsparcie zostało wyraźnie zlikwidowane. Cena, która wkrótce ponownie przetestuje wsparcie chmury, będzie tęsknić za resztą z unieważnieniem poniżej“, powiedział, wskazując na poniższy wykres.

Fakt, że Bitcoin silnie zareagował na 17 700 dolarów jest pozytywnym sygnałem, ale każda słabnąca dynamika wokół obecnej ceny może doprowadzić do jej obniżenia – potencjalnie zmuszając ją do dotknięcia dna swojej chmury.

Ethereum 2.0 – 1 million ETH now in staking

Over a million Ethers (ETH), worth $ 605 million, have already been put into play as part of the Ethereum 2.0 deposit agreement

1 million of ETH and strike

The long-awaited upgrade to Ethereum 2.0 gained momentum as expected Tuesday 1 st December at 13 am. The launch concludes the opening act, or “phase 0” of Ethereum 2.0. The stake of Ether (ETH) is part of the phased evolution of the Crypto Bull blockchain towards a proof-of-stake (PoS) protocol, moving away from its current proof-of-stake design. of-Work (PoW).

And even after the successful launch, the Ethereum 2.0 deposit contract continues to attract funds. The contract has now racked up more than 1 million ETH worth over $ 605 million . We can see the evolution over time of deposits:

Risks associated with staking

The rewards for early depositors are relatively high, around 15% per year . However, the rewards will decrease as more validators join the network.

Participants will not be able to withdraw their ETH until the current Ethereum mainnet has „merged“ with this new blockchain, a process that could take several years . It is also important to keep in mind that validators may be penalized if their node’s operation is interrupted .

Some exchanges such as Coinbase are already preparing the possibility of hosting Eth2 staking on their platform. But this alternative will not be without risk as well. In November, an Amazon Web Services outage affected thousands of websites, including that of the US exchange. Such an event would also have harmed Ethereum 2.0 node operators.

So even when choosing an external provider, it is important to understand the risks associated with such an activity.