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Cryptocurrency

Bitcoin loses $7,000, pigs on rampage

For many retail cryptocurrency traders, Bitcoin was the bread-and-butter trade of the pandemic.

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Bitcoin
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Flagship crypto, Bitcoin, lost about $7,000 after hitting its all-time high of $61,683, as wealthy investors took some profit off the table.

At the time of writing this report, Bitcoin traded at $54,300.01 with a daily trading volume of $71. Bitcoin is down 10% for the day. The current market value of the world’s flagship crypto hovers at around $1.013 billion.

A renowned market expert from the world’s most valuable bank points out why Bitcoin bulls seem to be suffering from exhaustion as the flagship crypto retail investors have picked up the slack amid an apparent plunge in institutional inflows so far this quarter, according to a report by JPMorgan strategist, Nikolaos Panigirtzoglou.

According to data released by JP Morgan Chase, retail investors bought about 187,000 bitcoins so far this quarter, compared to roughly 172,684 by institutional investors when using Square and Paypal data as a proxy.

READ: Bitcoin produces 4 billionaires worth at least $3 billion each

Stimulus money some days ago started hitting accounts of American citizens as that revealed Bitcoin burst higher but short-term price action reveals it’s extremely bearish now.

Stephen Innes, Chief Global Market Strategist at Axi in a note to Nairametrics gave key insights into why the sell-off is showing a high prevalence

“There were also aggressive attempts to tweet Doge higher and that coin is lower too, so it seems like there is negative momentum in the crypto space for those with a tactical time horizon.

SSKOHN

READ: $128 million worth of Bitcoin exchange hands, Bitcoin drops to $36,100

“This failure to hold gains is worth keeping an eye on as increased mobility could be a game-changer
But the sell-off may indicate that either:

A) expectations for risky asset purchases with stimulus check money could be overdone or
B) a good chunk of the money is going to be used to pay down tax liabilities or
C) newly printed cash will find its way into the real economy now that restaurants, Vegas, and beaches are reopening

For many retail cryptocurrency traders, Bitcoin was the bread-and-butter trade of the pandemic.

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READ: $90 billion wiped off in Crypto market as Bitcoin tumbles by 5%

“Bitcoin has maintained an amazingly bullish trend that has made most winners,” said Ed Moya, senior market analyst at Oanda Corp to Bloomberg. “Retail traders got reinvigorated with the latest NFT buzz, and as the stimulus checks hit their bank accounts.”

It’s important to note the world’s flagship crypto has gained about 990% in the past year, so profit-taking at this stage seems to be a normal scenario on the account that some institutional investors are pulling out some of their gains.

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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    Cryptocurrency

    Nigerians increasingly using Bitcoin since CBN’s Crypto ban

    A growing number of Nigerians are not giving up on the crypto that has outperformed any Nigerian-based financial asset.

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    Nobody is going to ban Bitcoin - US Bank regulator
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    It’s been roughly three months since the Central bank restricted Nigeria’s financial institutions from dealing with anything crypto-related, yet recent data suggests its citizens have increasingly found other alternatives to access the world’s flagship crypto.

    Data retrieved from Usefultulips (a Bitcoin analytic data provider) shows that the usage of Bitcoin’s peer to peer trading in Nigeria surged by 27% since the CBN directive took effect about 85 days ago, as Nigerians moved about $103 million worth of Bitcoins on just Paxful and LocalBitcoins channels alone.

    Bitcoin recorded gains and its suitability in hedging against inflation, coupled with access to other crypto assets that offer more viable options, seem not to have weakened despite the recent N5/$ rebate scheme introduced by the Central Bank of Nigeria to encourage Nigerians in the diaspora to use official channels to remit their funds instead of doing so through Cryptocurrencies.

    READ: Crypto market surges above $2 trillion, as Bitcoin stages a huge comeback above $60,500

    The world’s most popular crypto has rallied by almost 500% since its latest bull run began at the start of Q4 2020, hitting record highs of almost $65,000 this month before pulling back to $55,000 at the time of drafting this report amid strong institutional purchases sighted in emerged markets.

    Some market analysts argue that Nigeria’s apex bank’s hold on the country’s financial system has further complicated transactional processes in Africa’s largest economy because Bitcoin still relies heavily on fiat currencies despite being virtual, from pricing its value to how its ownership is being ascertained. In spite of this, the growing interest in Bitcoin has not weakened.

    Adding credence to Nigeria’s grip on Bitcoin includes data collated from Google trends, printing that Africa’s largest crypto market, emerged as the first amongst other countries by a long-distance over its interest in Bitcoin with a perfect score of 100%.

    READ: Nigerian banks allegedly close accounts dealing with Crypto

    SSKOHN

    Nigeria’s relatively young educated population coupled with its growing internet adoption and smartphone penetration has facilitated Bitcoin to thrive exponentially amid rising inflation that has eroded the savings of many Nigerians.

    The borderless feature of Bitcoin also makes payment effortless for Nigerians in addition to offering outrageously low transaction fees.

    READ: Why Bitcoin could triple in value annually

    To give context, many Nigerian banks charge 1–2.5%. For a $1 million offshore transfer, bank charges may go up to $10,000, but with the flagship crypto, transfer of such amount would not exceed $300, even at peak periods.

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    Consequently, a significant number of Nigerians already pay a premium for accessing the crypto market, as data from Binance, the world’s largest crypto exchange by volume, at the time of writing, posted a rate of N607 to 1 USDT with Nigerian banking channels close to the global crypto ecosystem.

    Bottom line

    A growing number of Nigerians are not giving up on the crypto that has outperformed any Nigerian-based financial asset. They are thus ready to pay a premium to hold on to Crypto irrespective of the Central Bank’s ban.

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    Business News

    Paypal’s Venmo now permits cryptocurrency trading

    Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.

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    +3

    Venmo, a mobile payment service owned by PayPal has announced that it has started allowing users to buy, hold and sell cryptocurrencies on its app. Just like PayPal, Venmo will support four different cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin, and users can carry out transactions with as little as $1 on the app

    Founded in 2009, Venmo has over 70 million users and it is one of the most popular payment channels in the US. The payment platform processed around $159 billion in payments last year.

    Since the app functions like a social network, adding cryptocurrency will offer a more user-friendly feel for people who love buying and selling crypto.

    READ: 28 million merchants to be granted crypto usage on PayPal

    As bigger companies show more interest in cryptocurrency, there will be wider adoption of virtual currencies in future. Venmo is the latest payment app that is offering support for cryptocurrency on its platform.

    Paypal, the parent company of Venmo is one of the most active companies in the crypto space as it allows users to buy, sell and hold cryptocurrencies in their digital wallets. Paypal users can also spend their coins at millions of merchants globally.

    Crypto on Venmo is enabled through PayPal’s partnership with Paxos Trust Company, a regulated provider of cryptocurrency products and services.

    What they are saying

    Darrell Esch, Venmo’s Senior Vice President and general manager said “Our goal is to provide our customers with an easy-to-use platform that simplifies the process of buying and selling cryptocurrencies and demystifies some of the common questions and misconceptions that consumers may have.”

    SSKOHN
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