Cryptocurrency
Germany’s biggest bank says more people now prefer Bitcoin over gold
Germany’s biggest bank, Deutsche Bank, recently disclosed that more people are beginning to prefer Bitcoin over gold in hedging their money.
Germany’s biggest bank, Deutsche Bank, recently disclosed that more people now prefer Bitcoin over gold in hedging their money.
In a note credited to Zerohedge, the financial juggernaut of Europe’s biggest economy, revealed investors are steadily seeing Bitcoin as a legitimate store of wealth option.
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What they are saying
Deutsche Bank research strategist, Jim Reid, gave key insights into what is changing investors to see Bitcoin more as a tool to hedge their cash better than traditional safe-haven assets like gold.
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“Bitcoin is up another +3% overnight and seems to be creating a momentum of its own. It’s up over 70% in the last six weeks, as more and more investors are starting to see it emerge as a credible asset to invest in. There also seems to be an increasing demand to use Bitcoin where Gold used to be used to hedge Dollar risk, inflation, and other things,” Reid said.
Bitcoin’s strong performance is no shock to some analysts, especially in the context of the benchmark cryptocurrency showing a high correlation with global equity markets.
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“Given that equities are now near, or in some cases above, their highs reached in February, it’s not surprising to see BTC do the same,” said Ryan Watkins, BTC analyst at Messari.
Why compare returns from BTCs to gold or other precious metals? “Gold is bitcoin’s most aspirational asset,” explained Watkins. “Like BTC, gold is a scarce commodity, whose value is derived almost entirely from its monetary premium.”
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What you should know
Nairametrics revealed how the yellow precious metal underperformed BTC by nearly 11% points, despite surging to about 16% in the first half of 2020 and touching eight-year highs last month. Platinum and silver both ended the first half of 2020 with negative gains.
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Bottom line
It is fair to understand the bias of global investors on choosing the flagship crypto, taking into account that gold is up 26.37%, while Bitcoin is up 120% on the year.
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Cryptocurrency
$385 million worth of Bitcoin moved by unknown identity
As Bitcoin’s price trades above $15,800, an unknown Bitcoin whale moved more than $105 million worth of cryptos.
Large entities are taking the center stage at the fast-changing financial market, amid strengthened price volatility seen at the flagship crypto’s market.
What we know
Data retrieved from, advanced crypto tracker, Bitcoin Block Bot, revealed that someone moved 22,816 BTC ($386M) in block 658,953 some hours ago.
Whale alert! 🐋 Someone moved 22,816 BTC ($386M) in block 658,953 https://t.co/ffndnEuLx6
— Bitcoin Block Bot (@BtcBlockBot) November 27, 2020
As Bitcoin’s price trades above $15,800, an unknown Bitcoin whale moved more than $105 million worth of cryptos.
At the time of writing, Bitcoin was trading at $17,048.47 with a daily trading volume of $28,874,917,829.
It’s critical to observe that recent price action in the flagship crypto market indicates that a significant number of buyers have been aggressively buying at the $16,000 price support level which is marked by large entities.
This further illustrates that the demand for bitcoin is relatively high, as bitcoin whales curb broader pullback, at least in the near term.
Nairametrics, predicts the increased buying pressures by such large entities are partly responsible for the relative rebound seen in the bitcoin market.
Although it’s often difficult to predict movements in the crypto market, taking into account high volatility. BTC whales have shown historically that they often determine the BTC trend.
What this means from a macro level is that the increase in the number of these large entities can be considered bullish.
Cryptocurrency
Ripple on steroids, up 11%
Ripple recorded its highest percentage gain since November 24, gaining up to 10.61%.
Popularly known crypto asset, XRP, is recording significant appreciation in its price amid increased buying from global investors.
What we know
Ripple recorded its highest percentage gain since November 24. At the time of writing, it had gained 10.61%.
- The move pushed Ripple’s market value to around $24.09 billion, or 4.83% of the total cryptocurrency market capitalization.
- Also, the third most valuable crypto asset has been trading from $0.50451 to $0.58549 for some hours now.
- At such prevailing price, Ripple has plunged by 83.68% from its all-time high of $3.29 set on January 4, 2018.
XRP was designed by Ripple mainly to perform speedy, less costly, and more scalable alternative transactions for both crypto assets and existing monetary payment platforms like SWIFT.
Ripple owns more than half of the total supply of XRP. In late 2017, the company vowed not to sell all of its tokens (XRP) at once, keeping up to 55 billion XRP in protected escrow accounts.
It plays a dual role as a payment platform and a currency. The platform is an open-source platform that is created to allow quick and cheap transactions.
Unlike its major crypto rival, Bitcoin, which was never intended to be a simple payment system, Ripple has gained the attention of major global banks such as Standard Chartered, and Barclays for international transactions worldwide.
Cryptocurrency
Canadian investment company buys more Bitcoin
The Canadian investment company recently disclosed it added about 73.9 BTC to its reserves since the middle of 2020.
Cypherpunk Holdings a publicly listed Canadian investment company, amid record sell-offs prevailing in the flagship crypto market, has recently purchased more Bitcoin (BTC).
The Canadian investment company recently disclosed it added about 73.9 BTC to its reserves since the middle of 2020. Cypherpunk holdings raised cash by selling other crypto-assets like Monero (XMR) and Ethereum (ETH).
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With the purchase, Cypherpunk now has 276.5 Bitcoins making it the 9th public Bitcoin holder. At current values, such crypto is worth about $5 million.
The report further added that “During October 2020, Cypherpunk Holdings Inc. was added to the unofficial list of public companies with a treasury position in Bitcoin alongside other companies such as MicroStrategy [MSTR], Square [SQ], and Galaxy Digital Holdings [GLXY].”
READ: Bitcoin boosts Square earnings in Q3
At the time of writing, Bitcoin price traded at $17,151.39 with a daily trading volume of $44 billion. BTC price is down -3.0% in the last 24 hours. It has a circulating supply of 19 million coins and a max supply of 21 million coins.
Recall a publicly-traded company based in America, MicroStrategy, adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is seen in many quarters as a big deal and it’s good to see BTC’s being used as intended – a hard money/savings instrument.
READ: Gold Prices cross $1800, first time since 2011
Bottom-line: The many global economic uncertainties that include inflation and the depreciation in value for most global fiat currencies have made cash an unreliable store of value, pushing well-known companies like Square, MicroStrategy, Grayscale to store their value in a deflationary currency like Bitcoin.
READ: Global companies are buying Bitcoins to hedge against inflation
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