Bitcoin (BTC) Inflow into Crypto Exchanges Hits 3 Year Low

John P. Njui   •   BITCOIN (BTC) NEWS   •   OCTOBER 31, 2020

Summary:

• Bitcoin inflows into crypto exchanges have hit a three year low
• Bitcoin balances on exchanges have also hit a 2 year low
• The reduction in both cases, hints of continual confidence in the future value of BTC
• Bitcoin’s scarcity is finally kicking in after halving
• Bitcoin briefly tested $14,100 before falling back to $13,600 then stabilizing above $13,800
• Today’s monthly close will be a very bullish one for Bitcoin

Fewer Bitcoin investors and users are sending their BTC to crypto exchanges. This is according to data from CryptoQuant that highlights that the Bitcoin inflow transaction count of all crypto exchanges has hit a three-year low. The team at CryptoQuant shared this information via the following tweet with an accompanying chart highlighting the drop in Bitcoin transactions into exchanges.

Bitcoin Stored on Exchanges Hits a 2 Year Low

At the same time, the amount of Bitcoin stored on crypto exchanges has hit a two year low. This fact was highlighted by the team at Unfolded via the following tweet which includes a chart from Glassnode demonstrating the fact.

Less Bitcoin to Go Around

In an earlier analysis, it was pointed out that prominent CEOs and publicly listed companies such as MicroStrategy are quietly scooping up the Bitcoin in circulation. A drop in the amount of Bitcoin being sent to exchanges and low BTC balances on the same platforms is proof that there is massive accumulation by institutional investors and high-net-worth individuals.

As a result, the amount of Bitcoin available for retail traders is bound to continue diminishing by the day and will ultimately result in BTC mooning as demand grows with a reducing supply.

Bitcoin Briefly Breaks $14k

With respect to Bitcoin mooning, earlier today, the King of Crypto pushed hard above the $13,800 and $14k resistance zones to print a 2020 high of $14,105 – Binance rate. However, as soon as this value was reached, the price of Bitcoin fell to the $13,600 price area only to stabilize once again above $13,800.

The quick drop down and subsequent bounce is a clear indicator that buying demand for Bitcoin is at a high level. This means that Bitcoin will most likely close the month of October above $13,600 thus returning BTC back to bullish territory last seen in June 2019.

The current bullishness carries with it greater momentum than that seen in 2019 given the fact that institutional investors are scooping up as much Bitcoin as they can find. Therefore, it might be possible for Bitcoin to attempt $17k or even $20k before the end of the year.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Is the U.S. Presidential Election Bitcoin’s Next Big Catalyst?

By Mr Oak – October 28, 2020

As the US presidential election looms, the crypto market, in general, is wide awake and alert as to what lies ahead afterward. There is a cloud of uncertainty hovering above investors as many have already begun switching to assets such as Gold, silver, and Bitcoin as they are seen as a safe-haven as compared to other digital and traditional assets.

It is no secret that this upcoming US presidential election would be one of the fiercest competitions in the history of politics. The US economy has been battered for months now due to the COVID pandemic and as such has led to the collapse of the dollar index. In this same period, Bitcoin was expected to rise unprecedentedly, post its halving event coupled with the uncertainty of the traditional financial market but that hasn’t been the case so far. The mainstream and crypto market needs money coming in to flourish and that also doesn’t seem to be happening as the working class is holding their capital until the aftermath of the elections.

There is no easy likely outcome of the election as both parties are poised to win. The question however is, what the outcome holds in store, especially for the Bitcoin community. Both Presidential candidates haven’t voiced out much of an opinion on the topic of cryptocurrencies. However, their Fairly diplomatic and impartial stand of cryptocurrencies will inevitably change as institutional inflow, traditional financial corporations’ migration into cryptocurrency as well as the increased scrutiny surrounding global central bank digital currencies are all factors that will demand acknowledgment and a strategic approach.

As the potential of the outcome remains open, safe-haven demand will continue to rise. Market swings, tax policies as well as regulatory uncertainties could lead to a negative reaction from the traditional financial market which will increase the number of investors seeking to hold their capital in assets deemed safe. In other words, Bitcoin will likely benefit from a negative reaction to the outcome of the election. As Gold and Silver remain the preferred choice for traditional investments, Bitcoin is undoubtedly the safe option to go for amongst cryptocurrency investors.

Using the general election as a determined catalyst to influence investment decisions without the benefit of hindsight could be tricky. However, Bitcoin has been one of the best-performing assets this year, with more than a gain of 70%.

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According to experts, the weakness of the U.S dollar will further fuel the growth of the digital currency for the rest of the year and this will still be as a result of political uncertainty after the elections where investors will be compelled to observe the economy and market as to how it will perform whilst still having their capital piled up in safe-haven assets. In a situation where the financial scene remains calm after the elections, a rise in the stock market could also be a win for Bitcoin as the digital coin has shown signs or correlation with the stock market this year.

Bitcoin was trading 195% higher than its yearly low ($13,264) at the time of this piece, still rising after breaking above the $13k mark which became somewhat of a psychological barrier for weeks.

DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Mr Oak and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Southeast Asia’s Largest Bank Is Launching Crypto Trading And Custody For Bitcoin, Ethereum, And XRP

By Brenda Ngari – October 27, 2020

The largest retail and commercial bank in Southeast Asia by assets, DBS, is seemingly planning to launch a digital assets platform for the trading and custody of major cryptocurrencies. According to an announcement that was posted accidentally and deleted, the forthcoming crypto offering — the DBS Digital Exchange — is backed by the Singapore-headquartered bank and regulated by the Monetary Authority of Singapore (the country’s central bank).

The fiat-to-crypto exchange will “leverage an integrated ecosystem of solutions to tap the vast potential of private markets and digital currencies”. In particular, it will support five top cryptos including bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), and Ethereum Classic (ETC). Users will be able to trade these cryptocurrencies against the United States Dollar (USD), the Singapore dollar (SGD), the Japanese Yen (JPY), and the Hong Kong dollar (HKD).

What’s unique about this digital assets exchange is that it will not be holding any assets itself. Instead, “all digital assets are kept at DBS Bank, which is globally recognized for its custodial services”. The now-deleted announcement highlights that DBS has set up an “institutional-grade” custody solution called DBS Digital Custody.

Additionally, DBS Digital Exchange will also allow SMEs and large corporations alike to issue security tokens in the foreseeable future.

Before the announcement was taken down, industry leaders touted the move as another huge milestone for the cryptocurrency space. Binance CEO Changpeng Zhao, for instance, tweeted:

Ryan Sean Adams, crypto investor and founder of Mythos Capital, postulated:

“The largest bank in Singapore just launched a crypto exchange. All banks are sidechains of Ethereum and Bitcoin. They just don’t know it yet.”

The year 2020 has seen a flurry of good news for the nascent asset class. The uncertainty caused by the COVID-19 pandemic and the forthcoming US elections has certainly strengthened the investment case for crypto. 

DBS’s announcement comes after US payments behemoth PayPal embraced cryptocurrency last week. Business intelligence firm MicroStrategy, Jack Dorsey’s Square, and $10 billion asset manager Stone Ridge revealed substantial investments in the bellwether cryptocurrency.

With all these developments (and more on the way), bitcoin’s likelihood of surging higher in the coming weeks and months has increased significantly. Bitcoin is currently trading at $13,631.25, up 1.72% so far today.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Whale alert — crypto user moves $1.1B in Bitcoin

An anonymous crypto holder just completed the largest dollar value Bitcoin transaction in history.

Image courtesy of CoinTelegraph

            OCT 03, 2020

With Bitcoin’s price continuing to hold close to $13,000, one crypto wallet has moved more than $1 billion of the digital asset.

According to on-chain data, a Bitcoin (BTC) wallet holder moved more than 88,857 BTC — worth roughly $1.15 billion — for a fee of only 0.00027847 BTC, or $3.58 at time of publication. The coins were confirmed in block 654,364 on Oct. 26.

Data from analytics platform CrystalBlockchain appears to show that the user sent the coins from an address labeled as a Xapo Bitcoin wallet. Because Coinbase Custody acquired Xapo’s institutional business in 2019, it is possible that the $1.1 billion in Bitcoin originated from the U.S.-based exchange.

This transaction is the largest movement of any cryptocurrency by fiat value, with the Bitfinex exchange setting the previous record in April. It transferred 161,500 BTC — $1.1 billion at the time — for a fee of only $0.68.

Neither of these transactions were actually the largest amount of Bitcoin to ever be moved. That honor goes to a 550,000 BTC transaction made on November 16, 2011 by the Mt. Gox exchange. Worth $1.32 million at that time, that amount of Bitcoin could be liquidated for more than $7 billion today.

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Original article posted on the CoinTelegraph.com site, by Turner Wright.

Article re-posted on Markethive by Jeffrey Sloe

September 2016 All Over Again: Number Of Bitcoin Whales Shatters Record Highs Following Recent Price Rally

By Brenda Ngari – October 26, 2020

Bitcoin has been caught in a steady uptrend in recent weeks that has allowed it to sever its correlation to traditional financial markets. In fact, at just below $13,100, the flagship cryptocurrency posted its second-highest weekly close since early 2018 on Sunday.

As the price of bitcoin soared, so did the number of whales. According to data from on-chain analytics provider Glassnode, the BTC whale population hit a new all-time high yesterday. The number of addresses with at least 1,000 BTC jumped to 2,231 — the highest level seen since September of 2016.

In the past week alone, the number of BTC whales surged by a cool 2.6%. Similarly, the price of the world’s most valuable cryptocurrency increased by roughly 14%. The upward momentum was further boosted by PayPal’s announcement on upcoming bitcoin support.

Why Is The BTC Whale Population Rising?

In the crypto community, the term whale is used to describe investors with significant BTC holdings and who have the ability to move the market in either direction. Since the beginning of this year, this particular group of investors has grown by over 14%. 

On-chain analyst Willy Woo suggested that the increase in the number of whale addresses could be as a result of high-net-worth individuals and funds seeing bitcoin as a potential hedge against expansive money printing and betting on the asset with real money.

Indeed, multiple publicly traded companies and big money individual investors have revealed investments into the bellwether cryptocurrency in recent months. Wall Street veteran Paul Tudor Jones was the first to publicly disclose his BTC investment back in May. Since then, several companies have put their weight behind the cryptocurrency and it seems that this trend is just getting started.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin breaking through $12K is huge but don't expect higher prices before 2021

Bitcoin price may now see sideways action for a few months after breaking through crucial multi-year resistance at $12,000.

Image courtesy of CoinTelegraph

            OCT 25, 2020

The previous week has been tremendous for Bitcoin (BTC) investors as price broke the crucial barrier of $12,000, culminating in a surge from $11,300 to $13,300, a rally of $2,000 within a week.

A new yearly high was printed, while the dollar has been showing weakness as well. Next to that, multiple listed companies came along with statements regarding allocations of Bitcoin rather than the U.S. Dollar.

All these arguments line up for a continuation of the bull market, but which levels should be watched? Let's take a closer look at the charts.

The $12,000 barrier was crucial for Bitcoin

BTC/USD 1-week chart. Source: TradingView (Click image for larger view)

As Bitcoin’s weekly chart shows, the $11,600-12,000 area was a crucial area to break for any bullish continuation. This resistance area has been persistent since the start of the bear market at the beginning of 2018. For over thirty months, the price of Bitcoin couldn’t break through this resistance zone, until the previous week.

The beginning of a bull market is often flagged by beautiful support/resistance tests for continuation, which is also seen at the $10,000 level. After this support/resistance test, the upward run continued.

BTC/USD 3-day chart. Source: TradingView (Click image for larger view)

The $10,000 level got a retest and held, which marked a new support zone. Since then, Bitcoin’s price has continued to run upward, which led to the breakout above the $12,000 barrier.

The $11,600 resistance must flip to support

BTC/USD 3-day chart. Source: TradingView (Click image for larger view)

As the $11,600-12,000 broke upward, some interesting levels can now be determined for traders to watch in the upcoming weeks. Often, buying after such a big rally isn’t the best strategy since a retest of lower levels is likely.

As mentioned, the confirmation of a support/resistance flip at the $10,000 level warranted upward momentum. A similar case is likely here. The crucial barrier of $11,600-12,000 is likely to see a support level test before the market can continue rallying.

The resistances are found at $13,600-14,000 and $16,500-17,000. However, the latter is unlikely to be hit in the coming months as range-bound movements appear to be more likely.

Therefore, traders should pay attention to the $13,600-14,000 area and the $11,600-12,000 as both could become crucial pivots in the upcoming weeks.

Total crypto market cap enters key resistance zone

Total market capitalization cryptocurrency 3-day chart. Source: TradingView (Click image for larger view)

The total market capitalization for all cryptocurrencies chart is showing a clear resistance zone between $395-415 billion. It’s unlikely to have a breakout in one go, but that’s heavily dependent on the movement of Bitcoin.

Therefore, a retest of the $330-340 billion for support would be very likely and would set up a healthy construction for the start of a new bull market.

If the total market capitalization breaks through $395-415 billion, the next resistance zone is found between $510-525 billion.

One possible scenario for Bitcoin price

BTC/USDT 3-day chart. Source: TradingView (Click image for larger view)

As discussed previously in this article, there’s a very likely case that Bitcoin’s price will have a correction toward the $11,600-12,000 area for some technical level tests.

Therefore, a range-bound technical structure can be determined. The resistance zone is located between $13,500-14,000, and the support zone is between $11,600-12,000.

Such a range-bound construction is very healthy for starting a new cycle as it’s constantly accumulating on a higher level. Breaking out of this sideways range after a few months may see the next big move, which will likely bring the price of Bitcoin towards $17,000 and possibly even a new all-time high.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Original article posted on the CoinTelegraph.com site, by Michaël van de Poppe.

Article re-posted on Markethive by Jeffrey Sloe