There has been an increased interest from institutional investors in cryptocurrencies.
That’s according to the new CEO of Grayscale, Michael Sonnenshein. Michael is replacing Barry Silbert as CEO after serving as the fund’s Managing Director over the last 3 years.
Institutions, Pensions, And Endowments
While talking to Bloomberg, Michael opined that pension schemes, institutions, and other endowment schemes are joining the crypto bandwagon. He went on to note that there has also been a significant increase in the amount that these institutions are allocating for crypto investments.
Indeed, various institutions have been reported to be expanding their investment options to accommodate cryptocurrencies. That’s after years of denial and backlash between the crypto community and opposers who have long held a rather pessimistic view of the crypto industry. However, this sentiment is now changing as cryptos like Bitcoin continue to prove themselves.
Grayscale Is Huge
Grayscale is one of the largest crypto-focused investment funds in the world. The fund currently manages assets totaling a cool $27.5 billion. Over the last few months, Grayscale has been accumulating large quantities of top cryptos like Bitcoin and Ethereum, signaling a serious upswing in the number of big-money investors willing to invest in cryptos through the fund.
Grayscale’s investment model enables its clients to be exposed to cryptos through a trust arrangement as opposed to owning the cryptos themselves. To woo even more investors, Grayscale has now slashed its chargeable management fees by 0.5%, bring it to 2.5% from the previous 3%.
What Does This Mean For The Market?
Admittedly, an increase in institutional interest is big news for the crypto industry, especially at a time when the crypto bull run is at its strongest ever. Bitcoin, the top crypto in the chats, is crossing the $40k mark and posting $750 billion in market cap. The entire crypto market is now worth over a trillion dollars.
These notable developments could work to fuel an extended crypto bull run, and many fans are already convinced that fiat currencies are about to capitulate and give way for cryptos like Bitcoin to fully go mainstream.
Massive Bearish Divergence Hints At First Major Chainlink Corrective Phase
Chainlink was among the first cryptocurrency to set a new all-time high in 2020, but given its absence during the 2017 peak was facing different circumstances and no overhead resistance. The » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin was nearly unaffected entirely by the » Read more
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market over the last couple of years, breaking record after record.
However, a massive bearish divergence has formed as the unstoppable cryptocurrency touches an ascending trendline for the third time. Could this be the start of the » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin’s first extended » Read more
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear phase? Or are bulls preparing a much stronger push to finally blast through the long-term trendline?
Chainlink At Risk Of First Major Corrective Phase, According To » Read more
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>Bear Div
In 2017, Bitcoin’s meteoric rise and the explosion of ICOs built on Ethereum put the cryptocurrency asset class on the map. But after a storm of exuberance and parabolic price action, the bubble burst and these assets came crashing down by as much as 90% or more in many cases.
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market. During that time, however, Chainlink made its debut in the crypto space, and its been on an unstoppable uptrend ever since.
The » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin rose from nearly worthless to over $25 recently at its 2021 peak. Chainlink went from being born during a » Read more
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market, to hitting all-time highs left and right even before a bull market was confirmed.
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin remains near 2021 highs.
— 🌏The EW Guy (@TheEWGuy) January 25, 2021
Bearish Divergence, Or Are Bulls Baiting For The Next Move Up?
The recent push to $25 per token, has resulted in a massive bearish divergence on the weekly Relative Strength Index, spanning across the current peak and the 2020 high of $20, according to one crypto trader.
Coinciding with the bearish technical signal, is a more three-year long trendline that has acted as the top to every major rally. The chart below shows the long-term trendline on the LINKUSDT trading pair on Binance more clearly.
A massive bearish divergence spans across two years of LINKUSDT price action | Source: LINKUSDT on TradingView.com
Bearish divergences appear when price action sets a higher high, but a technical indicator on the same timeframe chart makes a lower low. It often suggests that although prices are reaching new highs, the underlying buying pressure is lower than during the first peak.
The weakness results in bears taking over, and forcing prices lower. Bearish divergences often appear at the top of a trend, but are difficult to act on.
Related Reading | Altcoin Expert: Buy Crypto That Holds Up During Bitcoin Breakdown
Bearish divergences are only confirmed once price action has turned down. The lack of a higher high on a technical indicator could merely be due to the fact the bullish move is only yet just beginning. Taking a position in a long up-trending » Read more
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin due to a bearish divergence could lead to any missing out on any additional legs up that might follow.
Given Chainlink’s long-term momentum, the bearish divergence – if invalidated – could supply the momentum needed for a much stronger push higher.
Featured image from Deposit Photos, Charts from TradingView.com