As BTC market capitalization fast approaches the $200 billion mark, Messari’s Lead researcher, Ryan Watkins has crunched the numbers and predicts that if leading financial institutions allocate just 1% of their portfolios to Bitcoin, then BTC’s market cap could rise to above $1 trillion,
What would it look like if institutional investors followed Paul Tudor Jones and allocated a “low single-digit percentage” to #Bitcoin?
Here’s what we found using our best estimates of global inst. investor AUM.
Hundreds of billions if not trillions $ in inflows
— Ryan Watkins (@RyanWatkins_) June 23, 2020
The lead researcher also explained that a small percentage allocation from endowments and foundations, sovereign wealth funds, pension funds, mutual funds and family offices, to BTC would result in around $480 billion of new money entering the Bitcoin market.
“An aggregate 1% institutional allocation to Bitcoin can easily bring Bitcoin’s market cap above $1 trillion, or over $50,000 per BTC, ” Watkins added.
Depending on your assumptions, an aggregate 1% institutional allocation to Bitcoin can easily bring Bitcoin’s marketcap above $1 trillion, or over $50,000 per BTC pic.twitter.com/8vogmvevWf
— Ryan Watkins (@RyanWatkins_) June 23, 2020
Recall that the power of BTC whales, professional traders in the Bitcoin market cannot be overlooked. They are the most important players to large market movements in the BTC market, such as those levels seen during Bitcoin’s dramatic price decline in March as the COVID-19 pandemic intensified around the world.
“With more people looking to trade bitcoin, which is only becoming scarcer following the recent halving, bitcoin moving from the investment bucket into the trading bucket could become a crucial source of liquidity. However, one would expect this will only happen if bitcoin’s price rises to a level at which long-term investors are willing to sell,” Chainalysis researchers wrote.
Chainalysis a leading crypto analytic firm also explained activities in the BTC market for the month of June. The report said;
“As of June 2020, roughly 18.6 million Bitcoin has been mined. We break that 18.6 million Bitcoin down into three buckets based on its movements to date:
“Roughly 60% of that Bitcoin is held by entities — either people or businesses — that have never sold more than 25% of Bitcoin they’ve ever received, and have often held on to that Bitcoin for many years, which we label as Bitcoin held for long-term investment.
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“Another 20% hasn’t moved from its current set of addresses in five years or longer. We consider this lost Bitcoin. That leaves just 3.5 million Bitcoin or 19% of all mined Bitcoin that moves frequently, primarily between exchanges, which we label as Bitcoin used for trading.”
How to become a successful Bitcoin trader
Major steps that are needed if you want to become a successful BTC trader.
A BTC trader is simply an individual who seeks gains from differential changes in the market price of BTCs. The main objective the BTC trader has in mind is buying prices at low and selling when the flagship currency gains higher. BTC trading can thus be very lucrative and has become one of the fastest-growing careers in the financial spectrum.
Data obtained from a leading BTC analytic firm, Coinmarketcap showed that the market capitalization of BTC currently stands at over $170 billion. This further illustrates that in 2013 BTC moved from $13.30 to its present-day value of over $9000, meaning that early bird BTC traders had gained over 67,600% since it began.
Consequently, this article will show major steps that are needed if you want to become a successful BTC trader.
Self-Control & Discipline
Adebayo Juwon, an FTX consultant for Africa, spoke to Nairametrics in an exclusive interview, explaining in detail the need for a BTC trader to be very disciplined and have a security-conscious mindset. He said;
“Firstly I must note that trading is not for everyone, to be a successful crypto trader, self-discipline is a prerequisite to achieving one’s goal. The crypto market is very much volatile than what the traditional traders are used to, hence more risk and reward.
“A crypto trader must be security conscious; you’re responsible for your account security in the crypto ecosystem, as hackers are preying on whose account is less secured.”
A successful BTC trader must be able to understand the relationship between reward and risk management. This entails high understanding levels about the degree of randomness in BTC market and the risk involved in taking such risk. As a successful BTC trader, you are required to understand when its best to trade BTC as market conditions change from time to time.
Adebayo Juwon, FTX consultant for Africa also added vital points on why a BTC trader should never ignore risk management. He said;
“Also, to be a successful crypto trader, one must have good risk management in place, in a highly volatile market your profits can be zapped away in minutes. Risk comes in different ways in the crypto market, there are lots of scam projects with the good marketing team, they tend to attract investors also, it’s very important to do your own research in the crypto space, and rely less on market sentiment.”
Recall that some days ago Nairametrics, revealed the best time many BTC traders prefer to take their trading positions in the BTC market, thus preferring to trade around the American trading session because of the high price swings that occur at the start of New York stock market trading time -about 2.30 pm GMT. This means there were higher chances of making more money at the start of American trading sessions than other trading sessions (London and Asian trading session).
Basic fundamental and Technical analysis skills
Every successful BTC trader must keep track of macro fundamentals going around the BTC community because such information more often determines the market price of Bitcoin. Either rumours or news have exponential effects on the BTC market and often create lucrative trading opportunities.
Chris Ani, a professional BTC trader in a phone chat interview explained to Nairametrics in detail, the major attribute every successful BTC trader must possess, including the need to have basic trading skills. He said;
“To prevent yourself from becoming a slave to the market, you must be trading small enough size on your trades that you are not emotionally attached to them. Trading opportunities wait for no one.
“You have no idea when and where they will appear. Whenever they appear, you have to be ready with your trading plan. You must also master technical and fundamental analysis and most importantly the one that works for me, understand the seasons and market structure so as to know when to trade, allow big wins run, or rather exit the market in order not to lose your money.”
Finally, it’s very important to understand that no matter how good you get at BTC trading, you will often make mistakes and lose money. Always remember, trades that go bad are part of what will make you successful in the long term. Success in BTC trading simply means you are winning more relatively than losing.
Crypto: Elrond gives investors 1,735.54% since its inception
The exponential increase facilitated this fast-growing digital coin move up to 58th position.
The race for the fastest growing crypto asset of all time keeps changing constantly in the present crypto landscape as Elrond is by far the best performing digital coin among the top 100 crypto assets in recent times. Elrond has skyrocketed by over 1,735.54% since its inception of trading at the crypto market.
Shortly after the official statement released by its developers, on its integration, Elrond price blew up the charts lately presently it trades at $ 0.011931, up 1,735.54% since it’s in inception in Aug 2019 when it began trading at $0.002. The exponential increase facilitated this fast-growing digital coin move up to 58th position in terms of market capitalization size. Data obtained from Coinmarketcap, showed its market capitalization was over $157.2 million at the time this report was drafted.
Quick fact; Elrond is a type of blockchain architecture, created to facilitate a 1000-fold cumulative improvement in the execution of speed. Its architecture combines a Secure Proof of Stake (PoS) algorithm facilitating unlimited scalability. Elrond is originally designed to facilitate the process of over 10,000 transactions per second at cheap cost and with 5-second latency attempting to become the backbone of borderless, permissionless, and globally accessible internet economy.
In addition, Beniamin Mincu, Elrond CEO explained in detail how the Elrond blockchain is perfectly positioned to deliver the needed responsiveness and scale. He said;
“Getting access to all the available liquidity from day 1 is an important prerequisite for anyone building DeFi tools. This integration enables Elrond to be part of many existing cross-chain DeFi applications. We’re excited to work with Swingby and increase access to Elrond’s highly scalable and cost-effective solution,” Mincu said.
ChainLink’s digital coin skyrockets 388% in 130 days, still soaring
LINK continues to see sky-high daily active addresses.
LINK, an altcoin powered on Chainlink’s decentralized network, is smashing BTC and many other fast-growing digital coins, in terms of the rate at which it has been appreciating in dollar terms lately.
Data from a crypto analytic ranking firm, Coinmarketcap, shows the 12th most valued crypto asset is presently valued at over $2.2 billion dollars (1.2 times more valuable than Nigeria’s most valued bank) with a daily trading volume of over $595 million. It traded as low as $1.60 dollars to its present-day value of over $6.20, showing a percentage gain of more than 387.5% as the price keeps drifting up.
Crypto behavior analytics platform, Santiment, in it feeds detailed that its on-chain volume, along with social volume and daily active addresses, is a “great triple thread to track.” These macros help track whether a given crypto asset is poised to continue its bullish momentum, and in LINK’s case, it shows that the momentum is still on.
$LINK is continuing to see sky-high daily active addresses, indicating just how active the network has been. The four highest outputs in network activity over the past year for #Chainlink have occurred in the past six days. https://t.co/9Vn1WSNKjX pic.twitter.com/1xVMVgfWAV
— Santiment (@santimentfeed) July 10, 2020
Chainlink is a blockchain that is designed to bridge the space between blockchain technology-based smart contracts (created by ETH), and other user programs. Since blockchains by principle can’t have access to data outside their paths or networks, a defi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.
Among the leading 20 cryptocurrencies by market capitalization, it is viewed as the only top-20 token with a broad, adaptable business application that is easily explained to an average person. Chainlink is the first successful Blockchain application to interact with the outside world.