Connect with us

Blockchain

These Factors Show DeFi is Bullish Despite 50%+ Drop Seen by Many Crypto Tokens

Avatar

Published

on

The DeFi sector has been struck hard by the recent downturn seen across the aggregated crypto market, but it has not been able to match the momentum seen by Bitcoin and Ethereum as a result of their recent rallies.

DeFi tokens – due to their immense volatility – are considered to be “high beta,” which means that their prices will only rise when investors are comfortable and confident that the macro landscape is stable.

Until BTC and ETH can stabilize around their current price levels or continue their ascents, the DeFi sector may continue stagnating.

One analyst is noting that this relatively small fragment of the crypto market is still incredibly bullish from a fundamental standpoint.

To justify this sentiment, he points to the total value locked and the market capitalization of ERC-20 stablecoins.

He also notes that although DeFi remains bullish, it’s a matter of timing regarding when quality tokens within the space will begin rising again.

DeFi Sector Stagnates Despite Rallies Seen by Broader Crypto Market

Bitcoin’s decline from highs of $12,400 in late-August is what began placing headwinds on the entire market that ultimately resulted in the short-term downfall of the DeFi sector.

Once Ethereum’s price collapsed from $490 and began reeling lower, the sector’s short-term fate was sealed, and many tokens began posting massive losses daily.

Bitcoin and Ethereum are now rebounding, with ETH trending up towards its yearly highs while BTC sets fresh ones.

This indicates that capital may soon spill over into higher risk crypto assets, but it remains unclear when this rotation might occur.

Investor: Two Key Metrics Show How Bullish DeFi Currently Is 

One prominent crypto investor and Ethereum-focused analyst explained in a recent tweet that two key metrics show just how bullish the DeFi market truly is at the present moment.

He points to a total value locked (TVL) of $12.41 billion, as well as $14 billion stored within ERC-20 stablecoins.

“Despite a month that saw most tokens fall 50% or more, DeFi is *still* at ATHs with its most important indicators: – TVL: $12.41B – ERC20 Stablecoins: $14B. Don’t listen to the degens who burned out. Phase 2 of this DeFi bull market will make this summer look like nothing.”

As for when this part of the crypto market might begin resuming its uptrend, he believes that the election will be the “inflection point” for phase 2 of the bull run.

Featured image from Unsplash.

Source: https://www.newsbtc.com/news/defi/these-factors-show-defi-is-bullish-despite-50-drop-seen-by-many-crypto-tokens/

Blockchain

US DoJ extradites alleged AirBit Club Ponzi operator from Panama

Avatar

Published

on

United States Department of Justice (DoJ) and the Southern District of New York (SDNY) extradited a member of an alleged AirBit Club ponzi scheme for “internationally coordinated fraud and money laundering ring” and being allegedly involved in defrauding individuals “through investments in AirBit Club.”

In a release published on Monday, 30 November DoJ identified one Gutemberg Dos Santos, a citizen of Brazil and the United States as one of six operators of AirBit Club. Dos Santos, who was arrested on 18 August 2020, in Panama City faced trial before the SDNY and now remains in US custody. Acting United States Attorney Audrey Strauss spoke on the matter and said:

As alleged, Gutemberg Dos Santos played a key role in an international investment scam that promised extraordinary rates of return on phantom investments in cryptocurrencies, defrauding victims of tens of millions of dollars. 

DoJ alleged Dos Santos and another five operators hosted lavish events aimed at convincing victims to purchase AirBit Club memberships that promised guaranteed returns. According to the DoJ, after a victim invested, a Promoter provided them with access to an online AirBit Club portal to view the purported returns on memberships. The DoJ also alleged that while victims saw “profits” accumulate on their Online Portal, those representations were false: 

No Bitcoin mining or trading on behalf of Victims in fact took place. Instead, Rodriguez, DOS SANTOS [and others]  enriched themselves, and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more victims. 

The AirBit Club’s still-active website indicated some of the aforementioned events with the most recent taking place in Sao Paulo, Brazil, last year. In addition, among the six indicted was Scott Hughes, a California attorney who, the DoJ alleged, helped to “remove negative information about AirBit Club and Vizinova from the internet.” 

Source: https://eng.ambcrypto.com/us-doj-extradites-alleged-airbit-club-ponzi-operator-from-panama

Continue Reading

Blockchain

Further Declines in Bitcoin Price Possible Though Grayscale is Crucial, Notes JPM Analyst

Avatar

Published

on

Although Bitcoin has recovered from its vigorous price losses during the Thanksgiving massacre, analysts from JPMorgan Chase & Co believe that further declines may still occur.

The strategists pointed out that Grayscale, through its Bitcoin Trust, will play a significant role in future BTC price developments.

Is Bitcoin To Head Further South?

The primary cryptocurrency reached a new yearly high of $19,500 last week; thus, it came less than 3% away from the 2017 all-time high of $20,000. As the community began speculating on how long it will take to surpass that level, the trend reversed viciously.

Bitcoin headed south and lost over $3,000 of value in hours. Nevertheless, the cryptocurrency has recovered most of its losses and trades north of $18,000.

A JPM analysis, led by Nikolaos Panigirtzoglou, recently said that the Thanksgiving price drops had cleared the “previous froth in momentum traders’ positioning.” However, the strategists hinted that Bitcoin could still go lower.

“Momentum traders such as commodity trading advisors and other quantitative funds likely played a big role in the slide by unwinding long Bitcoin futures positions. Momentum traders have room to further propagate” the Bitcoin decline, noted the analysts cited by Bloomberg.

Apart from broaching “momentum traders,” the strategists also discussed various other reasons behind the price developments. Those included the rumors of new regulations proposed by the Trump administration and profit-taking.

Grayscale Is Key

The JPM strategists also highlighted the significant role of Grayscale and its Grayscale Bitcoin Trust on the market. The cryptocurrency manager is the most preferred company for institutional investors to receive exposure to Bitcoin (and other digital assets) without worrying about storing the funds.

This has been exemplified through 2020 as Grayscale has reported back-to-back recording-breaking quarterly results. The assets under management (AUM) have exploded in the past 12 months to over $10 billion. Somewhat expectedly, the Grayscale Bitcoin Trust has the most substantial share.

The analysts asserted that if there’s a decline in the interest towards GBTC, this could damage the narrative that Bitcoin has become a favorite among institutional investors:

“A failure by the Grayscale Bitcoin Trust to receive additional inflows over the coming weeks would also cast doubt to the idea that institutional investors such as family offices have embarked on a trend of embracing Bitcoin as digital gold replacing traditional gold as a long-term investment.”

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Source: https://cryptopotato.com/further-declines-in-bitcoin-price-possible-though-grayscale-is-crucial-notes-jpm-analyst/

Continue Reading

Blockchain

Biden announces nomination of Janet Yellen to lead Treasury Department

President-elect Joe Biden and his transition team have announced Janet Yellen as the official Secretary of Treasury nominee.

The post Biden announces nomination of Janet Yellen to lead Treasury Department appeared first on The Block.

Avatar

Published

on




Biden announces nomination of Janet Yellen to lead Treasury Department


















Continue Reading
Blockchain5 days ago

PayPal Reportedly Restricted a User’s Account for Trading Cryptocurrency

Blockchain4 days ago

South Korean crypto market records more trades in Altcoins

Blockchain4 days ago

Wrapped- DGLD brings Swiss vault held Gold to Ethereum

Blockchain3 days ago

Latin American Bitcoin & Blockchain Conference Reveals Latest Speakers

Blockchain4 days ago

Libra Hired New Payments Subsidiary General Counsel: Report

Blockchain2 days ago

Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain2 days ago

Bitcoin Price Prediction: BTC/USD Resumes Upside Momentum, Struggles to Break Above $18,000 Price Level

Blockchain2 days ago

Litecoin Price Prediction: LTC/USD Ready to Revisit $80; Further Upside is Limited

Blockchain1 day ago

ECB Lays out ‘Reinvention of Money’ Strategy

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain2 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain2 days ago

Ripple price prediction: XRP to hit $0.67 next, analyst

Blockchain2 days ago

Guggenheim Fund Files to Be Able to Invest Up to Almost $500M in Bitcoin Through GBTC

Blockchain4 days ago

Bitcoin Worth $3B from PlusToken Ponzi Scam Seized by Chinese Authorities

Blockchain3 days ago

Digital Euro: German finance minister urges ECB to accelerate its CBDC development

Blockchain2 days ago

Bitcoin and Crypto Worth $4 Billion Seized From PlusToken Ponzi Group

Blockchain2 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain2 days ago

Bitcoin Price Prediction: BTC/USD Back Above $17,500 Level as the King Coin Recovers

Blockchain1 day ago

EOS Finds Support above $2.80, Resumes Upside Momentum

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain2 days ago

Bitcoin and Crypto Worth $4 Billion Seized From PlusToken Ponzi Group

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain2 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain2 days ago

Guggenheim Partners may be the next big player to bet on Bitcoin

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain2 days ago

Guggenheim opens door to bitcoin exposure for $5 billion macro fund via Grayscale GBTC product

Blockchain2 days ago

Guggenheim Partners prepares to dip investment fund’s toes into Bitcoin

Blockchain2 days ago

Bitcoin: Temporary Correction or No ATH This Year? The Crypto Weekly Market Update

Blockchain4 days ago

Yes, You Can Spend Your Bitcoin This Black Friday

Blockchain2 days ago

Bitcoin and Crypto Worth $4 Billion Seized From PlusToken Ponzi Group

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain4 days ago

$100M Liquidated From Compound Following Flash Loan Exploit

Blockchain2 days ago

Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit

Blockchain2 days ago

Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit

Blockchain2 days ago

South Korea To Postpone Previously Planned Crypto Income Tax

Blockchain4 days ago

Yearn. Finance Price Analysis: Spike in Buying Pressure Could See YFI Prices Soar To $25k

Blockchain5 days ago

Bitcoin Falls as Mnuchin [Reportedly] Plans to Regulate Private Wallets

Blockchain2 days ago

Bitcoin and Crypto Worth $4 Billion Seized From PlusToken Ponzi Group

Trending