Glassnode data shows Bitcoin (BTC) exchange reserves on Coinbase have dropped by about $8 billion. This indicates that institutional investors are locking away their purchases in cold storage for the long term instead of booking profits.
HODLing by institutions is a huge positive as it will continue to reduce Bitcoin’s available supply, which may boost prices even if demand begins to diminish.
The news flow suggests no slowdown in institutional adoption. New Zealand Wealth Funds Management revealed that its product KiwiSaver Growth Strategy allocated 5% of its assets to Bitcoin in October 2020.
According to the firm’s chief investment officer James Grigor, the first Bitcoin purchase took place when Bitcoin was at $10,000. This means that when Bitcoin hit an all-time high at $61,825.44, the firm was sitting on a 518% profit. Grigor also added that Bitcoin could feature in more KiwiSaver schemes within the next five years.
In a recent podcast with Raoul Pal, New York Digital Investment Group CEO Robert Gutmann said the firm has been receiving inquiries from sovereign wealth funds about possible Bitcoin investments. Pal disclosed that Singapore’s sovereign wealth fund Temasek had been buying virgin Bitcoin from miners.
More investors may arrive if the United States Securities and Exchange Commission approves a Bitcoin exchange-traded fund. The latest to seek approval to launch a Bitcoin ETF is Fidelity Investments. This shows that legacy financial firms are aggressively adding support to Bitcoin.
The arrival of all kinds of investors into the crypto space is a positive sign. While that may be bullish for the long term, let’s analyze the charts of the top-10 cryptocurrencies to determine the short-term trend.
The bulls had pushed Bitcoin above the 20-day exponential moving average ($54,426) on March 24, but they could not sustain the higher levels, as seen from the long wick and the negative close on the daily candlestick.
The BTC/USD pair dipped to the 50-day simple moving average ($51,282) on March 25, which is an important support to watch out for because the bears have not achieved a close below it since Oct. 9 of last year.
If the bulls can sustain the current rebound and push the price above the 20-day EMA, the pair may rise to the downtrend line. The bears are likely to mount a stiff hurdle at this level.
If the price turns down from the downtrend line, the bears will make another attempt to sink the pair below the 50-day SMA. If that happens, the pair may witness increased selling pressure from short-term traders, resulting in a drop to $46,000 and then $43,006.77.
Alternatively, if the bulls can drive the price above the downtrend line, the pair may rise to the all-time high at $61,825.84. A breakout of this resistance will suggest the resumption of the next leg of the uptrend.
Ether (ETH) has been trading below the moving averages for the past three days, signaling weakness. The bulls are attempting a relief rally today but the pullback may face selling by the bears at the 20-day EMA ($1,711).
If the price turns down from the 20-day EMA, the bears will try to sink the ETH/USD pair to $1,500 and then $1,289. The marginally downsloping 20-day EMA and the relative strength index (RSI) just below the midpoint suggest a minor advantage to the bears.
However, if the bulls can push the price above the moving averages, the pair may rally to the downtrend line. A breakout of this line will open the doors for a retest of the all-time high at $2,040.77. If the price turns down from the downtrend line, the pair may form a symmetrical triangle.
Binance Coin (BNB) slipped below the 20-day EMA ($251) on March 24 and bears continued their selling on March 25, but they could not break the 50-day SMA ($216) support. This attracted buying from the bulls who are currently trying to push the price back above the 20-day EMA.
The flat moving averages and the RSI just above the midpoint suggest a balance between supply and demand. If the bulls can push the price above the downtrend line, the BNB/USD pair could rise to $309.50.
Contrary to this assumption, if the price turns down from the downtrend line, the bears will once again try to break the 50-day SMA support. If they succeed, the pair may drop to the critical support at $189.
Cardano (ADA) repeatedly turned down from the 20-day EMA ($1.14) for the past three days, but the bears could not break the $1.03 support. This suggests accumulation by the bulls at lower levels.
The bulls have pushed the price above the 20-day EMA today. If they can sustain the higher levels, the ADA/USD pair may gradually move up to $1.48. The bears are again likely to pose a stiff challenge at this resistance.
The 20-day EMA is flat and the RSI is just above the midpoint suggesting a possible range-bound action for a few days. This neutral view will invalidate if the price turns down and breaks below $1.03. That could signal the start of a deeper correction to $0.80.
Polkadot (DOT) broke below the symmetrical triangle and the 50-day SMA ($32.55) on March 24, indicating the bears have overpowered the bulls. Usually, after the price breaks below an important level, it tends to retest the level. In this case, the price may rise to the breakdown point, which is close to the 20-day EMA ($34.26).
If the price turns down from this resistance, it will suggest the sentiment has turned negative and traders are selling on rallies. The bears will then try to sink the price below $26.50. If they can pull it off, the DOT/USD pair could extend its decline to the pattern target at $18.22.
This negative view will invalidate if the bulls can push and sustain the price above the 20-day EMA. Such a move will suggest strong buying at lower levels and a possible consolidation for a few days.
XRP dropped below the $0.50 support and the moving averages on March 24. However, the positive thing was that the lower levels attracted strong buying from traders and the price snapped back above the $0.50 level on March 25.
The RSI bounced off the midpoint and the moving averages are sloping up, indicating the sentiment has turned positive and traders view dips as a buying opportunity. If the bulls can drive the price above $0.60, the XRP/USD pair may rally to $0.65 and then $0.78.
On the contrary, if the price again turns down from $0.60, it will indicate a lack of demand at higher levels. That could keep the pair range-bound for a few more days.
Uniswap (UNI) plunged below the support of the $27.97 to $35.20 range on March 24. However, the bears could not sink the price below the 50-day SMA ($26.38), which shows the bulls are defending this level.
The UNI/USD pair has bounced off the 50-day SMA and the bulls will now try to push the price above the 20-day EMA ($29.62). If they succeed, the price may once again rise to the $35.20 to $36.80 overhead resistance zone.
On the other hand, if the pair turns down from the 20-day EMA, the bears will once again try to sink the price below the 50-day SMA. If that happens, the pair may drop to $20.74. The 20-day EMA has started to turn down and the RSI is just below the midpoint, suggesting a minor advantage to the bears.
THETA is currently consolidating in a strong uptrend. The bulls purchased the dip to the 38.2% Fibonacci retracement level at $10.31 on March 25. This shows the sentiment remains positive and traders are buying the dips.
If bulls can thrust the price above the $13 to $14.96 zone, the THETA/USD pair could start the next leg of the uptrend that may reach $19. The rising moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.
Conversely, if the bears successfully defend the overhead resistance zone, the pair may remain range-bound between $10.31 and $14.96 for a few days. A break below $10.31 could extend the decline to the 20-day EMA ($8.74).
Litecoin (LTC) turned down from the 20-day EMA ($191) on March 24 and broke below the trendline of the symmetrical triangle. This is a negative sign as it suggests that the triangle is acting as a reversal pattern.
The downsloping 20-day EMA and the RSI in the negative zone suggest the bears have the upper hand. If the price again turns down from the 20-day EMA, the bears will try to extend the correction to $152.94 and then to $120.
However, the bulls are unlikely to give up easily. They will try to push the price back above the 20-day EMA. If they succeed, it will show aggressive buying at lower levels and may keep the LTC/USD pair inside the triangle for a few more days.
Chainlink (LINK) plummeted below the minor support at $26.28 on March 24 and reached the important support at $24. Although the bulls have held this support for the past two days, the rebound lacks strength, indicating a lack of confidence among buyers that the correction may be over.
The 20-day EMA ($27.97) has started to turn down and the RSI has dipped into the negative territory, suggesting that bears have the upper hand. A break below $24 could intensify selling that may drag the LINK/USD pair to $20.11.
This negative view will invalidate if the bulls can push the price above the 20-day EMA. Such a move will suggest strong buying at lower levels and could keep the pair range-bound between $24 and $32 for a few days.
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.
Market data is provided by HitBTC exchange.
Pele NFTs to Drop on Ethernity Chain from May 2
NFTs is about capturing value of precious moments compliantly. Ethernity Chain does this brilliantly, this time by dropping a new collection of NFTs honoring the legacy of the iconic Brazilian soccer player, a world cup winner, and a legend in soccer halls, Pele.
Pele is coming to Ethernity Chain
An announcement from Ethernity Chain—a differentiated platform introducing authenticated NFTs, on Apr 16, said Pele’s collections would be available in two weeks from May 2.
These valuable collections are created by Kingsletter and Visual Lab–leading Australian Concept artists. It is the first time the legend’s trading cards have been released digitally.
The second batch will be Pele NFTs will be released later this year.
It is easy to see why the physical vintage cards of Pele are worth millions and considered the most valuable in the world.
Pele’s Golden Records make his NFTs Valuable
Pele is award-winning and honored severally in the last 60 years or so.
Together with Diego Maradona, they are joint winners of the FIFA’s Player of the Century award.
He was also instrumental in three World Cup-winning teams of 1958, 1962, and 1970.
Besides, he was unplayable during his playing years. Thus far, he remains the highest goal scorer in Brazilian national team history, scoring 77 goals in just 92 appearances.
Before retiring in 1977, Pele scored 500 goals for Santos—a professional football club in Brazil.
For this, Pele is adored and endeared by football fans and bodies globally for his contribution to Soccer and tireless efforts in eradicating poverty. Through the Pele Foundation, the mega football star is empowering Children battling poverty.
For this reason, 90 percent of Ethernity Chain’s sales will directly benefit the charity.
Jason Heuser’s NFT Collections Sold out for Big Dollars
This collection will be the second following Ethernity Chain’s partnership with Jason Heuser, which saw the drop of the “Welcome to the Internet” collection.
It was an immense success since the “Legendary Edition NFT” eventually sold for $162k from 22 bids. The NFT hard a reserve price of $35k.
Other NFTs—the “Limited Super Edition” sold for $173,824 while the “2012 Original” was scooped for a whopping $224,800.
Mergers and acquisitions are rising, leaving crypto assessments in question
Fintech, cryptocurrency and mergers and acquisitions are poised to intersect significantly in the coming year. M&A activity is expected to rebound quickly — more than 60% of decision-makers at large companies who were surveyed by FTI Consulting for a February report agree that their company has recently been a target of aggressive M&A, and 39% say their companies are looking at M&A as a result of the COVID-19 pandemic. At the same time, the cryptocurrency market is making strides toward mainstream acceptance.
As a result, there’s likely to be an uplift in deals involving cryptocurrency assets and valuations throughout 2021. While this trend is likely to spur some exciting developments in the financial sector, it is also starting to raise unprecedented questions about whether cryptocurrency and these complex business models can be accurately assessed and verified in the context of dealmaking.
Digitizing the world of finances
The effects of the COVID-19 pandemic have driven significant shifts from physical to digital services across a wide range of industries — none more dramatically than in the financial services industry, in which S&P Global has reported that an estimated 420 billion transactions, worth $7 trillion, will switch to cards and digital payments by 2023, reaching $48 trillion by 2030.
PayPal further legitimized cryptocurrency when it began accepting it in November 2020 and announced its acquisition of Israeli crypto startup Curv in March. Visa has also been active in the fintech arena, most recently with its $5.3 billion acquisition of Plaid in January. Investors are also keeping a close eye on the developments that will follow Coinbase’s recent debut on the Nasdaq stock exchange. Naturally, all of this activity is generating a lot of interest in fintech and cryptocurrency companies among traditional financial services institutions and big tech corporations. Even amid market lows during the first half of 2020, cryptocurrency-related M&A hit $600 million, more than the total for all of 2019. All signs point to an even larger year in 2021.
The need for due diligence
Of course with M&A, IPOs and capital raises also comes the need to conduct due diligence, market assessments and valuations. But when cryptocurrency is involved as the primary asset or a key asset, there are additional, complex layers to standard due diligence processes.
Buyers and target companies need to consider conducting a technical assessment of the digital assets at play. Potential buyers will want to know how to verify the cryptocurrency assets and ensure that the target company’s reported assets are accurate. Because cryptocurrency companies often operate under unconventional business models, and due to the very nature of distributed ledger systems, it’s not always clear what’s what. The crux of the issue is to find out about any problems, risks or inaccuracies in a target company’s cryptocurrency assets, framework and business model and whether they have the correct procedures in place to support their crypto-based business activities.
Likewise, cryptocurrency companies that are looking to raise money or sell their business to a larger technology or financial services corporation (or file for an IPO) can help position their business by conducting in-depth assessments that will demonstrate their differentiators and value to potential buyers, and support subsequent valuation and due diligence activities.
The nuances of the crypto space
Many may not understand the importance of conducting a technical assessment and cryptocurrency evaluation as part of their larger financial due diligence, or that it’s even possible. However, experts in this space are beginning to develop complex methodologies to conduct, fast, in-depth and cost-effective technical assessments of cryptocurrency assets and leverage digital forensic investigation techniques to sample and verify digital wallet ownership, digital asset ownership, as well as verify assets under custody, and the value and validity of assets.
Additional areas that buyers should examine in a crypto-focused technical assessment include:
- The full scope of digital asset holdings, including hot wallet services, cold wallet storage, business wallet services, portfolio management and other services.
- Size, locations, duties and other key details relating to technical and sales support, and development teams.
- Risks within cryptocurrency-related contracts, privacy, security, Know Your Customer, Anti-Money Laundering, signatures and other policy controls.
- Code audits across wallets, user interface and application programming interfaces.
- Governance implications (such as regulatory requirements and standards including the United States government’s Cybersecurity Maturity Model Certification and the European Union’s General Data Protection Regulation).
- Technical structure and stability.
- Third-party partnerships, data use and obligations.
- Research and development projects and developmental coin/token support.
In addition to traditional financial due diligence and valuations that accompany fundraising and M&A transactions, buyers in this space will also need to validate and assess the technical elements of the target company’s cryptocurrency assets and structures. Doing this right will require the support of a domain expert in blockchain and cryptocurrency who understands the technical complexities and knows what questions to ask. Cryptocurrency remains an enigma to many people, but a thorough, expert-driven technical audit can reveal risks and eliminate guesswork to support the execution of high-value, disruptive deals.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Steven S. McNew is a senior managing director within the technology practice of FTI Consulting. In his role, Steven helps clients evaluate and implement blockchain solutions and builds cost-effective, defensible strategies to manage data for complex legal and regulatory matters. Steven is an expert in blockchain, information and data security, complex discovery and digital forensics. He completed studies in blockchain and cryptocurrency at MIT and has led engagements involving blockchain assessments, pilot projects and software selection and implementation. He has also led disputes involving issues related to blockchain and various forms of cryptocurrency.
AgeUSD to Launch as First Stablecoin on Cardano Network
Multinational blockchain technology company Emurgo initially announced the AgeUSD stablecoin in January 2021. The firm has since announced a partnership between the Ergo Foundation, Emurgo, and Charles Hoskinson’s Input-Output Global, the parent company of IOHK.
The AgeUSD stablecoin will be available on Cardano as soon as smart contract capabilities are launched on the blockchain, it revealed.
Do We Need Another Stablecoin?
Emurgo is aiming to prevent events like MakerDAO’s Black Thursday which emerged through vulnerabilities in its Dai collateralization mechanism. A mass liquidation of the vast majority of Maker vaults resulted in around $4 million in Dai being under-collateralized at the time in March 2020.
AgeUSD’s so-called “Staticoin” protocol-inspired design does not rely on collateralized debt positions (CDPs).
“Thanks to its design, the scenario that happened on Black Thursday is not possible for the AgeUSD protocol. Without CDPs, we do not have liquidation events nor the requirement for users to perform transactions to ensure that the liquidations actually work properly,”
The stablecoin runs on the Ergo blockchain aiming to automate as much as possible within the mathematics of the protocol itself. Reserve providers pay Ergo’s native currency (ERG) to mint reserve coins which represent the underlying collateral. Users of the stablecoin can also deposit ERG into the reserves in order to mint AgeUSD, it explained. This is only allowed by the protocol if there are enough reserves above its reserve ratio. Banks use a similar method to loan out funds.
The Cardano partnership will also enable its native token, ADA, to be used as collateral to mint reserves. However, the potential downside is that the stablecoin is only backed by these two assets whereas Dai is backed by multiple cryptocurrencies.
AgeUSD will launch on Cardano when it rolls out the Alonzo update that ushers in Plutus powered smart contracts. This is expected in the latter half of this year according to the roadmap.
Cardano ADA Price Update
As the long-awaited update nears, ADA prices have been cranking to new highs, the most recent ATH being $1.55 on April 14. At the time of writing, ADA was trading up 2% on the day at $1.45 according to Coingecko.
It is the sixth largest cryptocurrency by market cap which currently stands at $46 billion and there are 32 billion tokens in circulation. The token was briefly flipped by Dogecoin but has regained its position in the charts, just below Tether.
NYSE celebrates historic ‘first trades’ with NFT series
By The Numbers: The Rate Bitcoin Must Climb To Reach $100K By July
Bitcoin’s time has come: TIME magazine to hold BTC on balance sheet
USDT, USDC, and BUSD represent 93% of stablecoin market cap
Whole Earth Coin (WEC) Set for IEO to Inject New Life Into Aging Infrastructure
German digital stock exchange will list physical Litecoin ETP
Tron, Tezos, Synthetix Price Analysis: 12 April
WAX introduces first Topps baseball cards on the blockchain
NYSE Joins NFT Mania With Special First Trade Collection
Binance launches zero-commission tradable stock tokens
Crypto has arrived.
Boson Protocol concludes $25.8M public sale, token listed on exchanges
Moonstake integrates with Sylo to bring their staking protocol to the Sylo Smart Wallet
Bitcoin Prepares For its Next Move: Where is the 100 SMA, the Key BTC Level?
dHEDGE launches tokenized index tracking its top 10-ranked traders
Binance offers Tesla stock token, could Coinbase (COIN) follow?
How COPA’s lawsuit against Craig Wright could benefit Bitcoin
Dogecoin (DOGE) and Maker (MKR) soar as the altcoin market cap tops $1T
Kraken Daily Market Report for April 12 2021
CoinSmart Appoints Joe Tosti as Chief Compliance Officer
Blockchain1 week ago
Decentralized oracle solution Umbrella Network adds Huobi as validator node
Blockchain1 week ago
Tesla’s landlord accepts crypto; will Elon Musk pay rent in Bitcoin?
Blockchain1 week ago
XRP Price Analysis: 08 April
Blockchain1 week ago
$48B Asset Manager Millennium Management Dabbles With Bitcoin
Blockchain1 week ago
Bitcoin Miners Hit Jackpot as Hash Rate Peaks Again
Blockchain1 week ago
Why JP Morgan’s CEO calls Bitcoin regulation a “serious issue”
Blockchain1 week ago
Binance Smart Chain Daily Transactions 200% More Than Ethereum’s
Blockchain1 week ago
Revolutionizing the crypto-market in India with CryptoBiz exchange