Bitcoin is presently running faster than “186,282 miles per second”(speed of light in vacuum) as it smashes its previous all-time highs at a pace not seen in the modern era.
The flagship crypto within moments rallied to set a new all-time high at $29,267.
What this means: Crypto investors were left cashing in big time, as the most popular crypto rallied to record highs more than 25 times in a few days.
- Crypto fans cheered it as an inflation hedge in an era of unprecedented amounts of quantitative easing triggered by many central banks globally.
- Also, leading household names in finance including Paul Tudor Jones and Stanley Druckenmiller endorsed it as an alternative asset, adding to the rally.
- Not forgetting listed U.S brands like MicroStrategy Inc. and Square Inc. that moved their cash reserves into crypto in search of better returns than what near-zero interest rates deliver.
Also, a top crypto strategist, Rafael Schultze-Kraft in a detailed diagram revealed why the odds are still with the flagship crypto, taking into account it’s becoming pretty scarce and investors are not willing to sell relatively;
- Liquidity getting squashed, investors hoarding, accessible BTC becoming scarcer.
- 1 million Bitcoin has become illiquid this year, i.e. are held by entities that spend < 25% of coins they receive.
- Less Bitcoin for you to buy.
One of the most important #Bitcoin charts in 2020.
Liquidity getting squashed, investors hoarding, accessible BTC becoming scarcer.
1M BTC have become illiquid this year, i.e. are held by entities that spend < 25% of coins they receive.
Less $BTC for you to buy.
— Rafael Schultze-Kraft (@n3ocortex) December 30, 2020
Sequel to this feat, Bitcoin had earlier attempted to break above the $28,500, but after rallying to $28,600 the price rejected with a price correction to $27,300.
That said, the bulls had enough gas amid an era of inflationary measures in play, in breaking all resistance price levels as it presently stays between the striking distance of $30,000
Gemini exchange co-founder and leading bitcoin investor, Cameron Winklevoss via his Twitter feed spoke on bitcoin’s recent feat saying;
“Bitcoin is about to take out another major psychological barrier at 30K”.
— Cameron Winklevoss (@cameron) December 31, 2020
Crypto investors lose $530 million within a day
The Crypto futures became overheated and record sell-offs began leading traders to lose more than $527 million in a single day.
These are surely bad times for many crypto investors on the account that roughly $530 million worth of Crypto positions disappeared into thin air within a day.
The mass liquidation of such trading positions, according to data retrieved from Bybt.com, showed such occurred before the flagship crypto dipped around $34,000 today.
What this means
Over the past day, Bitcoin, with the highest dominance rate in the crypto market gained 7% when it moved from $35,500 to nearly $38,000, taking into consideration future demand for the crypto asset could skyrocket.
- However high sell-offs gained momentum immediately Bitcoin touched $38,000 value amid several large sell orders placed around that price.
- The Crypto futures became overheated and record sell-offs began leading traders to lose more than $527 million in 24 hours.
What they are saying
A highly respected crypto expert, Ki-Young Ju, disclosed the ongoing activity in the ever-volatile Crypto market on his Twitter feed, by critically hinting that buying pressure has paused in recent days.
- “People trade $BTC with low leverage, open interest is skyrocketing, and the long-short ratio looks neutral. Strong on-chain buying signals that have driven this bull market hasn’t come up so far. Bitcoin might retest 30k, so I don’t have any position now in this uncertain market.”
People trade $BTC with low leverage, open interest is skyrocketing, and the long-short ratio looks neutral.
— Ki Young Ju 주기영 (@ki_young_ju) January 17, 2021
At the time of drafting this report, Bitcoin’s volatility ensured that no firm market direction was in control, as Bitcoin fluctuated around $34,800.
Sequel to the sudden correction seen in the Bitcoin market lately, it had been in on a bullish run relatively.
Some days ago, leading the United Kingdom’s financial regulator, the Financial Conduct Authority, recently issued a piece of stern advice on crypto investments
The statement highlighted the risks associated with investing in Bitcoin and other leading crypto assets and warned the public there were high chances all their funds could be lost;
“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.
Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money.”
$128 million worth of Bitcoin exchange hands, Bitcoin drops to $36,100
Bitcoin traded at $36,262.41 with a daily trading volume of $56.4 billion, down 0.49% for the day.
Large crypto entities are definitely up to something with the prevailing bullish trend at the world’s flagship crypto. Before dropping to $36,100, an unknown Bitcoin whale moved about $128 million worth of cryptos.
Data retrieved from Whale alert, an advanced crypto tracker, revealed recently, that a large entity transferred 3,510 BTC valued at $128.3 million from an unknown wallet to an unknown wallet.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 3,510 #BTC (128,266,672 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) January 16, 2021
At the time of writing this report, Bitcoin traded at $36,262.41 with a daily trading volume of $56.4 billion. Bitcoin is down 0.49% for the day.
- While it is difficult to predict market movements, large owners of Bitcoins have shown historically that they often determine the BTC trend.
- The timing of this movement suggests that such activity could be linked to an institutional investor amid the bias that of late, a lot of institutional players are flocking into the world’s flagship crypto market at unprecedented levels.
What you should know
- In the Bitcoin market, investors or traders who own large amounts of bitcoins are typically known as Bitcoin whales. This means that a BTC whale would be an individual or business entity (with a single Bitcoin address), that owns around 1000 coins or more.
- The flagship cryptocurrency is mainly decentralized, the first of its kind, and created by Satoshi Nakamoto. It was launched around January 2009.
Very few nations permitted to issue their Crypto – IMF
The IMF says close to 80% of the world’s central banks are not allowed to issue a digital currency under their existing laws.
While many countries are already planning to or already developing fiat-crypto, the International Monetary Fund’s most recent report has indicated that only a few nations are permitted legally to carry such actions.
“Countries are moving fast toward creating digital currencies. Or, so we hear from various surveys showing an increasing number of central banks making substantial progress towards having an official digital currency.
“But, in fact, close to 80% of the world’s central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is not clear,” the IMF stated.
In the recent post, seen by Nairametrics, the global financial body disclosed various reports suggested a large number of central banks are examining the possibility of having a central bank digital currency (CBDC).
“Still, a majority of such countries have legal structures that do not support the establishment of cryptocurrencies, or in some cases do not permit the development of them
“Any money issuance is a form of debt for the central bank, so it must have a solid basis to avoid legal, financial, and reputational risks for the institutions.
“Ultimately, it is about ensuring that significant and potentially contentious innovation is in line with a central bank’s mandate. Otherwise, the door is opened to potential political and legal challenges.”
What you should know: A digital currency is a cash balance recorded electronically on a store value card or other physical devices, which could someday replace the physical notes.
- Digital currencies can be decentralized, that is where the control over the cash supply can come from diverse sources. Digital currencies can also be centralized, where there is a midway point of control over cash supply, just like the way central banks work.
Recall some months ago, the International Monetary Fund (IMF) published a video illustrating what cryptocurrency is.
Besides suggesting that cryptocurrency could “completely change the way we sell, buy, save, invest, and pay our bills,” IMF went on by saying that it “could be the next step in the evolution of money.”
The IMF tweeted the video giving vital details on what cryptocurrency is. Referring to cryptocurrency as “a special currency,” the two-minute video attempts to outline its benefits in payments, such as by removing middlemen, lowering costs, and increasing transaction speed.
— IMF (@IMFNews) August 23, 2020