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Institutional Investors Make Up Only a Small Portion of BTC Traders

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Over the past several months, institutional investors have held a grand stake in the world of bitcoin. Companies like MicroStrategy, MassMutual and Stone Ridge have all invested hundreds of millions of dollars into bitcoin, and as a result, the currency has ultimately risen beyond the $33,000 mark at the time of writing.

Institutional Investors Are Still a Small Portion of the Trading Population

No doubt that institutions have been playing a huge role in the legitimization of the crypto space. They’ve continued to invest money in the asset and are helping it rise in both price and value. However, according to Jeff Currie of Goldman Sachs fame, institutions – despite all the work they’ve done over the past six months – still hold a rather small position in the crypto arena.

It’s easy to assume that because the companies mentioned above and others like them have invested quite a bit in bitcoin that professional financial players are pushing the digital currency world to the top of the monetary ladder. However, the fact is that the space has still largely been dominated by retailers, and while institutions are potentially beginning to move forward in this respect, they still have quite a way to go before they can catch up.

In a recent interview with CNBC, Currie says:

I think the market is beginning to become more mature. I think in any nascent market you get that volatility and those risks that are associated with it. The key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small. Roughly one percent of it is institutional money.

The bottom line is that many cryptocurrencies – including bitcoin – remain extremely volatile. Just recently, BTC was trading for well over $40,000, though as of late, the currency has experienced a loss of roughly $7,000, bringing the asset down to about $33,000. The currency had been surging like there was no tomorrow, but the asset still showed vulnerability to outside market influences – enough to experience its deepest loss in about ten months.

As it stands, many industry experts suggest that institutional investors are necessary to keep bitcoin’s present momentum up. Without institutional investors backing it, bitcoin cannot earn the legitimacy of other payment methods such as fiat currencies and credit or debit cards. The fact is that institutions are beginning to show great interest in the asset, and over time, bitcoin and other forms of crypto could potentially garner top spots in the financial space, but they’re only starting to get heavily involved.

We Need to See More Activity

Currie believes that it will be a while before institutions really see bitcoin as a hedge tool and that we’re only in the early phases. He comments:

That can give [it] some long-run equilibrium.

Tags: , , Source: https://www.livebitcoinnews.com/institutional-investors-make-up-only-a-small-portion-of-btc-traders/

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Ethereum Price Moves up to $1,200 as Demand Threatens to Outstrip Supply on Exchanges

The price of Ethereum, the second-largest cryptocurrency by market capitalization, has moved back up to the $1,200 mark after falling below $1,000 earlier this week at a time in which outflows from cryptocurrency exchanges suggest demand could outstrip supply. According to Nuggets News’ Alex Saunders, data shows that exchange reserves have fallen by 3 million […]

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The price of Ethereum, the second-largest cryptocurrency by market capitalization, has moved back up to the $1,200 mark after falling below $1,000 earlier this week at a time in which outflows from cryptocurrency exchanges suggest demand could outstrip supply.

According to Nuggets News’ Alex Saunders, data shows that exchange reserves have fallen by 3 million ETH over the last two days, with 1 million ETH leaving crypto trading platforms on January 14, and 2 million leaving them the following day.

Saunders shared data from on-chain analytics firm CryptoQuant and pointed out that at this rate exchanges could soon run out of ETH.

Price predictions for ETH have been extremely bullish – with former Goldman Sachs executive and Real Vision CEO Raoul Pal saying he believes Ethereum could go to $20,000 this cycle based on Metcalfe’s law – and as such Saunders believes HODLers will not be selling their funds between $1,000 and $2,000 per ETH.

Some other data providers seemingly show that Ethereum reserves on cryptocurrency exchanges have dropped by 42.5% since mid-May. The analyst interprets the data as suggesting an incoming bull run to a new all-time high for ether, as “we all know what happened when demand outstripped supply of BTC.”

The price of bitcoin surged from about $12,000 to a new all-time high near $42,000 after reserves on exchanges dropped by about 4.5% and corporate adoption surged as MassMutual, MicroStrategy, Square and others bought BTC as a hedge against inflation and currency debasement.

Rafael Schultze-Kraft, CTO at data firm Glassnode, countered Saunders saying his data was “nonsense,” saying that a sudden drop of over 2 million ETH from a cryptocurrency exchange weren’t withdrawals, and that “exchange flows are completely within their normal range.”

It’s believed the 2 million ETH were moved to a new Bitfinex cold wallet for Ethereum that cryptoQuant did not account for. That, however, does not explain the 1 million ETH outflows seen the day before.

It’s worth noting that the decentralized finance (DeFi) space has been booming, and more Ethereum users could simply be withdrawing their funds to interact with these protocols on-chain.

Featured image via Unsplash.

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DOGE Breaks Out and Aims for Prices Above $0.01

This is a short/medium-term analysis. For a longer-term analysis, click here. Breakout and Retest DOGE has been decreasing alongside a descending resistance line since Jan. 2, when it reached a high of $0.014. After three unsuccessful attempts, it finally broke out on Jan. 14. However, DOGE has failed to increase significantly since the breakout, and … Continued

The post DOGE Breaks Out and Aims for Prices Above $0.01 appeared first on BeInCrypto.

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The Dogecoin (DOGE) price has broken out from a descending resistance line that had been in place since the beginning of Jan. DOGE should continue increasing towards $0.018 and possibly $0.021.

This is a short/medium-term analysis. For a longer-term analysis, click here.

Breakout and Retest

DOGE has been decreasing alongside a descending resistance line since Jan. 2, when it reached a high of $0.014. After three unsuccessful attempts, it finally broke out on Jan. 14.

However, DOGE has failed to increase significantly since the breakout, and is currently trading between support and resistance at $0.008 and $0.01, respectively.

The latter is the 0.5 Fib retracement level of the entire downward move and a horizontal resistance area, so a breakout above would confirm the bullish trend.

Technical indicators are bullish and support the possibility of a breakout.

Breakout
Chart By TradingView

The shorter-term two-hour chart further strengthens the possibility of a breakout.

DOGE has been following a short-term ascending support line since Jan. 11 and has flipped the $0.009 support level.

As long as DOGE is trading above these two levels, the short-term trend is bullish.

Short-Term
Chart By TradingView

Doge’s Wave Count

Cryptocurrency trader @DlinkBull outlined a DOGE chart showing a parallel channel. They suggest an increase toward $0.03.

As seen in the first section, DOGE has already broken out from the resistance line of this channel.

DOGE Breakout
Source: Twitter

DOGE seems to have begun a bullish impulse at the beginning of March (shown in white below), currently trading in wave 3.

The sub-wave count is given in orange, and DOGE is likely in the fifth and final sub-wave. A fall below the sub-wave 1 high at $0.0044 would invalidate this particular wave count.

Sub-wave 5 should end between $0.0181-$0.0184, a target found using an external retracement on sub-wave 4 and projecting the length of sub-waves 1-3 to the bottom of 4.

Afterwards, the entire impulse would likely complete at $0.021, the 4.61 Fib extension of wave 1.

DOGE Wave Count
Chart By TradingView

Conclusion

To conclude, DOGE’s rate of increase should accelerate once it moves above $0.01, with a possible target of $0.018.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

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Source: https://beincrypto.com/doge-breaks-out-and-aims-for-prices-above-0-01/

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Tether (USDT) January 15th Deadline on iFinex Case: Everything You Need to Know

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Many in the cryptocurrency field have recently discussed the upcoming January 15th date as an important consideration for the ongoing case between the office of the New York Attorney General (NYAG) and iFinex, the parent company of Bitfinex and Tether.

With this in mind, below is a comprehensive summary of what happened and what to expect on this date.

The NYAG v. iFinex Case: What Happened?

Back in April 2019, the office of the New York Attorney General alleged that the popular cryptocurrency exchange Bitfinex lost $850 million and then used funds from its affiliated stablecoin operator Tether (the company that issues USDT) to cover the shortfall.

As CryptoPotato reported, later on, Tether issued a statement through a blog post which said that the allegations were written in “bad faith” and were also “riddled with false assertions.”

In May 2019, Judge Joel Cohen granted a partial stay on the NYAG office’s request for documents from the two companies until their hearing takes place on July 29th. During that hearing, the judge on the case, Joel Cohen, decided to extend the preliminary injunction as he was not ready to make a final decision on whether the case should go forward or be dismissed. Hence, he extended that injunction by 90 days.

In August, however, the NYAG presented new evidence on the case, alleging that apart from covering up the $850 million, Bitfinex and Tether had served New York customers for longer than they claimed. In part, the document stated:

The OAG has uncovered substantial ties between Respondents and New York concerning Respondents’ corporate operations; trading on the Bitfinex platform; the issuance, redemption, and trading of tethers; use of financial institutions to move money and process customer deposits and withdrawals; and representations to the market that might have been misleading.

Essentially, the NYAG also attacked Bitfinex’s LEO initial exchange offering, claiming that it “has every indicia of a securities issuance subject to the Martin Act, and there is reason to believe that the issuance is related to the matters under investigation,” meaning the alleged cover-up.

Additionally, the NYAG called iFinex’s motion to dismiss “an improper attempt to impede a lawful investigation.”

The Order to Turn in Documents

In September 2020, Judge Cohen ruled that Bitfinex and Tether must turn over documents detailing their financial relationship and history to the NYAG’s office. In addition to that, he also extended an injunction that barred Tether from loaning funds to Bitfinex by 90 more days.

However, on December 9th, 2020, Letitia James, the Attorney General, filed a document, asking Justice Cohen to extend the deadline to January 15th, 2021. James said that “the parties continue to cooperate on the production of documents in response to the 354 Order, and anticipate that the production could be finalized in the coming weeks.”

Why the January 15th Deadline is Important?

With this, we arrive at the time of this writing and the importance of the January 15th deadline. There are a few reasons for which this is a critical point in this case. First, it requires that iFinex produces the necessary information for the NYAG to continue its investigation and to further substantiate the merits of its claims.

And perhaps what’s even more important, however, is the nature of the documentation. In essence, iFinex has to produce materials on the process by which they determine whether, when, and how to issue and redeem tethers, banks, documents, and communications regarding specific issuances and redemptions, as well as trading activity on the Bitfinex trading platform regarding tethers and bitcoin.

This is a landmark case for the entire cryptocurrency space as USDT is the most popular and biggest stablecoin on the market. The company issuing it has been involved in many scandals in the past, with many questioning the fact that it’s actually backed by USD.

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Source: https://cryptopotato.com/tether-usdt-january-15th-deadline-on-ifinex-case-everything-you-need-to-know/

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