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ThereÃ¢ÂÂs a degree of transparency in cryptocurrencies that doesnÃ¢ÂÂt exist in traditional markets like stocks and bonds: Thanks to data thatÃ¢ÂÂs easily extracted from blockchains, everyone can see everyone else moving their money around.ÃÂ
That means traders can keep an eye on exchange wallets to gauge whether investors and crypto miners are getting their bitcoin into position for a possible sale Ã¢ÂÂ or taking balances down from the exchanges in anticipation of holding for the longer term.
The latter might be whatÃ¢ÂÂs happening now, CoinDeskÃ¢ÂÂs Muyao ShenÃÂ reported Monday. Total balances of bitcoin on major exchanges has hit its lowest levels since November 2018. It could be an indication of bullishness among bitcoin traders.
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Ã¢ÂÂThereÃ¢ÂÂs no reason to sell now,Ã¢ÂÂÃÂ Mike Alfred, CEO of Digital Assets Data, told Shen in a phone interview.ÃÂ Ã¢ÂÂWhy would you be selling when youÃ¢ÂÂre at the beginning of a wave of potential corporate treasuries and institutional investors coming in?Ã¢ÂÂ
Another interpretation, according to Arcane Research, is that traders are taking their bitcoin off exchanges to deploy them in the decentralized finance sector, known as DeFi. Juicy returns can be obtained fromÃÂ tokenizingÃÂ crypto assets and depositing them as collateral in semi-automated, blockchain-based trading and lending platforms.
As CoinDeskÃÂ reported earlierÃÂ this week, tokenized bitcoin has become one of the largest assets on DeFi. Currently, there are more than 108,000 BTC worth some $1.1 billion minted from seven issuers, according toÃÂ Dune Analytics.
That might be another bullish sign.ÃÂ
Related: Bitcoin Has Been Less Volatile Than Tesla Stock for Months
Ã¢ÂÂBitcoin maximalists would decry the use of bitcoin on Ethereum, arguing that it isnÃ¢ÂÂt Ã¢ÂÂrealÃ¢ÂÂ bitcoin,Ã¢ÂÂ David Derhy, an analyst for the cryptocurrency trading platform eToro, wrote Monday in an email. Ã¢ÂÂI view this development as positive for the sector, as it highlights an evolution within the industry.Ã¢ÂÂ
Whatever the case, itÃ¢ÂÂs all there to see.
Read More:ÃÂ Bitcoin Balances on Exchanges at 2-Year Low and That May Be a Bullish Sign
BitcoinÃ¢ÂÂs upward momentum is again running out of steam near the psychological resistance of $11,000.
The cryptocurrency clocked highs near $10,950 early Monday and is currently trading near $10,850.
The cryptocurrencyÃ¢ÂÂs weekly chart MACD histogram, an indicator used to identify trend changes and trend strength, has dipped below zero for the first time since March, indicating a bearish shift in the broader trend.
Similarly, the 5- and 10-week averages have produced a bearish crossover. As such, bitcoin could face chart-driven selling pressure.ÃÂ
On the higher side, $11,000 is the level to beat for the bulls.
Ã¢ÂÂ Omkar Godbole
Bitcoin (BTC):ÃÂ Market cap could swell to $1-5T in next 5-10 years, from about $200B now, as largest cryptocurrency becomes settlement system for banks and businesses while taking 10% share of physical gold market,ÃÂ Coin Metrics says in report with ARK Invest.ÃÂ
Bitcoin: (BTC):ÃÂ Largest cryptocurrency breaks record for longest streak of days above $10K,ÃÂ now at 63 days.
Ether (ETH):ÃÂ On-chain data suggests Ether investorsÃÂ bought September dip.ÃÂ
Uniswap (UNI):ÃÂ Uniswap is now bigger than the entire decentralized finance space just two months ago, as trading protocol becomesÃÂ first to pass $2B milestone.
Uniswap (UNI), Balancer (BAL), Curve (CRV):ÃÂ GeminiÃÂ lists DeFi tokensÃÂ following Binance, Huobi and OKEx in succumbing to FOMO.ÃÂ
Tether (USDT):ÃÂ Bitfinex, the cryptocurrency exchange affiliated with the dollar-linked USDT stablecoins, has launchedÃÂ perpetual contracts tracking European equity market indexes, settled in USDT.ÃÂ ÃÂ
More than $150M drained in hack on Singaporean cryptocurrency exchange KuCoin (CoinDesk)ÃÂ
Bahamas sets Oct. 20 as date for Ã¢ÂÂsand dollarÃ¢ÂÂ token, perhaps the worldÃ¢ÂÂs first retail central-bank digital currency (CoinDesk)
Trading volumes for Grayscale Bitcoin Trust (GBTC) and other crypto exchange-trading products shrink as prices fall (CoinDesk)
Bitcoin mining-rig-maker MicroBT expands into offshore manufacturing, reportedly to help U.S. buyers dodge tariffs on Chinese imports; inks deal with Foundry Digital, a subsidiary of Digital Currency Group, which also owns CoinDesk (CoinDesk)
OKEx CEO Jay Hao says Ã¢ÂÂfair launchÃ¢ÂÂ distributions are Ã¢ÂÂfundamentally flawedÃ¢ÂÂ because tokens end up Ã¢ÂÂin the hands of retail investors,Ã¢ÂÂ leading to Ã¢ÂÂsuperlatively high fluctuations,Ã¢ÂÂ or else it all becomes Ã¢ÂÂa playground for whalesÃ¢ÂÂ (OKEx via LinkedIn)
Coinbase CEO Armstrong says cryptocurrency exchange wonÃ¢ÂÂt engage in Ã¢ÂÂsocial activismÃ¢ÂÂ or Ã¢ÂÂdebate causes or political candidates internallyÃ¢ÂÂ because itÃ¢ÂÂs a Ã¢ÂÂdistractionÃ¢ÂÂ and creates Ã¢ÂÂinternal divisionÃ¢ÂÂ (Brian Armstrong/Medium)
Bitwise bitcoin fund doubles to $9M as investor fears grow over runaway inflation
The latest on the economy and traditional finance
Just as Federal Reserve-fueled stocks rally fades, giant public pension systems decide maybe theyÃ¢ÂÂre missing out and should allocateÃÂ more money into equities (WSJ)ÃÂ
New York Fed says moral hazard from official coronavirus aidÃÂ to be less than in 2008 because business losses werenÃ¢ÂÂt necessarily due to poor risk management, just Ã¢ÂÂbad luckÃ¢ÂÂ (NY Fed)
Accenture, Darden Restaurants, Foot Locker among companies reinstating dividends or stock buybacks after cutting jobs (CNBC)
Deutsche Bank revising remote-working policies in effort to permanently reduce office space (Bloomberg)
Coronavirus fears and US presidential elections caused mixed results for Asian stocks during the weekly open (SCMP)
Bank of England governor wonÃ¢ÂÂt say no to negative interest rates; itÃ¢ÂÂs Ã¢ÂÂin the tool bagÃ¢ÂÂ (FT)
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