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UBS Wealth Manager Says Large Institutional Buyers Quietly Fueling Bitcoin Boom

A private wealth manager at Swiss financial giant UBS is crediting institutions and wealthy investors for Bitcoin’s bull run. In a new CNBC interview, Alli McCartney, a managing director at UBS Private Wealth Management, says interest in Bitcoin from wealthy and sophisticated investors is booming. “There’s a lot of interest and there has been a […]

The post UBS Wealth Manager Says Large Institutional Buyers Quietly Fueling Bitcoin Boom appeared first on The Daily Hodl.

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A private wealth manager at Swiss financial giant UBS is crediting institutions and wealthy investors for Bitcoin’s bull run.

In a new CNBC interview, Alli McCartney, a managing director at UBS Private Wealth Management, says interest in Bitcoin from wealthy and sophisticated investors is booming.

“There’s a lot of interest and there has been a lot of interest for a significant amount of time. A lot of very wealthy individuals, even those who have made their money in very traditional finance sources, take risk. And they understand the concept of taking risk…

I think the thing is that individuals that act like institutions and non-retail individuals are getting in now as an asset-allocation play and that I think why you see such a run-up, is that you’re having some really big buys.”

McCartney cites increasing corporate adoption, the store of value narrative, and price as factors fuelling interest in BTC.

“The story of the first couple of years was that here was a store of value that was apolitical and could be a diversifier. And then you fast-forward and, to my colleague’s point, you see the numbers going up which always gets people interested. You see the adoption in the form of Bloomberg Galaxy Index. Then you go to Fidelity being a custodian and now you are at PayPal letting you buy and sell with it.”

McCartney says the new fleet of institutional investors could create a solid foundation for the price of BTC moving forward.

“So adoption is going up, price is going up and the lack of available alternatives in the market in terms of being diversifiers – like bonds have largely gone out the window because of their relative risk-return. So I think all three of those and once you see the credentialing mechanisms of large pension funds and sovereign entities which have just seen major buying – which I think is what has taken this from $25,000 up to where it was this weekend – you start to really get some credentialing mechanisms.

And by the way, unlike a retail investor, the assumption there is that these aren’t speculators. These are long-term buy-and-holds that can create some sort of substantive floor for the currency.”

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Featured image: Shutterstock/ArtStudio29

Source: https://dailyhodl.com/2021/01/06/ubs-wealth-manager-says-large-institutional-buyers-quietly-fueling-bitcoin-boom/

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Bitcoin likely to halve than double in value, according to this Deutsche Bank survey

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A new survey by Deutsche Bank recorded investors’ opinions on Bitcoin. Respondents were asked specifically about the digital asset as well as electric car company Tesla. More than half of people surveyed (about 56%) now think that Bitcoin and Tesla are more likely to halve than double in value. 

Source: Twitter

A majority of respondents also felt that markets are currently facing bubbles. In that regard, about 89% of those surveyed believe US technology stocks and Bitcoin are in a bubble, with the crypto closing in on “extreme bubble” territory.

Nevertheless, the asset has been gaining popularity among institutional investors. After the purchase of 16,244 BTC on 18 January, crypto hedge fund manager Grayscale recently became one of crypto’s biggest institutional buyers.

Recently, Bitcoin bagged the most crowded position in a similar study. Long Bitcoin replaced big tech stocks as the most crowded trade in Bank of America’s monthly fund manager survey.

However, according to the Deutsche Bank survey, 71% of respondents do not believe that the Federal Reserve will go back on its stimulus plans before year-end. A quarter of those surveyed are of the opinion that economic growth or markets “could force their hand.” 

Many think the current Bitcoin rally is due to concerns about inflation and fears of a devalued dollar, especially over Fed’s intention to pump more money. 

After a major pullback in prices, Bitcoin was trading at $37,481.67 at press time and has been up by 3.6% in the last 24 hours.

Source: https://ambcrypto.com/bitcoin-likely-to-halve-than-double-in-value-according-to-this-deutsche-bank-survey

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Ethereum: New ATH or not, this is what you should know

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While at press time Ethereum’s price was going parabolic, it would seem that Ethereum’s daily transaction volume has been going parabolic too, according to Messari’s Crypto charts. In fact, the world’s second-largest cryptocurrency is now settling over $12 billion in daily transactions. To put that figure into perspective, that is $3 billion more than Bitcoin.

This is a crucial figure too since the daily transaction volume is a top metric for assessing the state of Ethereum’s price rally, even if the price trend is similar to Bitcoin due to the relatively high correlation between the two assets in the current market cycle. 

ETH's transaction volume is flying off charts

Source: Twitter

Just as Ethereum’s price rally had DeFi’s support in increasing network fees in October 2020, the current price rally has DeFi’s support through increased transaction volume and network fees. 

The fact that Bitcoin’s price rally has low volatility and the crypto-asset is rangebound between $34,000 and $38,000 may have played a role in this as the direction of investment flow has changed too. This may be evidenced by the fact that against Bitcoin’s 5% weekly increase in price, Ethereum’s price rose by over 21.91% this week.

Now, there are rational concerns around the increasing transaction volume as it may hurt real adoption and usage in the long run. However, even if the cryptocurrency’s price goes on a price discovery run after hitting a new ATH, there is a possibility that increasing network fees would lead to a drop in transaction volume.

It should be noted though that climbing as high as it did on the price charts alone is a feat for Ethereum, especially in light of Bitcoin’s recent volatility.

From being the base currency for ICOs to vertical growth, Ethereum has become more relevant than Bitcoin in many contexts and institutions, and retail traders may have identified the trend early on. While the investment flow in Bitcoin is largely from institutions, the same is not true for Ethereum since there are more retail traders buying Ethereum and generating demand on spot exchanges.

Ergo, what lies ahead for Ethereum relies on Open Interest and transaction volume on derivatives exchanges. However, based on the ETH Options’ volume chart, the Options volume has dropped by 63% since the beginning of January 2021 and the ongoing price rally may face resistance or a correction if the volume continues to decline.

What does this entail? Well, this means that it may lead to a further drop in price and despite increasing popularity and investment flow into DeFi, it may be a challenge for Ethereum to bounce back from a price correction at this point in the market cycle, new ATH or not. 

Source: https://ambcrypto.com/ethereum-new-ath-or-not-this-is-what-you-should-know

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Blockchain

EOS, Basic Attention Token, Maker Price Analysis: 19 January

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EOS eyed a breakout from its press time channel to touch the $2.91-resistance level. BAT formed an ascending triangle on the chart and a northbound breakout can be seen over the coming days. Finally, MKR moved within a fixed channel and although the price was bullish, a move above its press time resistance level was not likely.

EOS

Source: EOS/USD, TradingView

Taking cues from the broader market, EOS looked to break above its channel of $2.91 and $2.72, a region where it has traded for the past five days. An ascension on the price chart could see EOS challenge the next resistance at $3.12. On the other hand, a broader market pullback could see EOS trade within its current channel moving forward.

In the near-term, the momentum could reside with the bears as the Relative Strength Index dipped towards the neutral zone. If the index moves towards the oversold region, the price could fall on the charts.

The On Balance Volume showed a lack of buying interest in the market as the index moved flat at lower levels.

Basic Attention Token [BAT]

Source: BAT/USD, TradingView

A look at the 4-hour chart showed that BAT formed an ascending triangle. An upwards breakout from the pattern could see BAT rise towards its August 2020 levels and snap a fresh, local high. In case the price moves lower from the pattern, the support at $0.265 could be tested.

The MACD’s fast-moving line moved above the Signal line after it avoided a bearish crossover. Further, the bars on the histogram showed that the price was bullish.

The surge in price over the past week was backed by a rise in buyer numbers, as the On Balance Volume rose in tandem with the price.

Maker [MKR]

Source: MKR/USD, TradingView

Maker moved between $1,563.54 and $1,352.01 as the momentum shifted between the buyers and sellers over the past few days. Gains in the broader market pushed MKR towards its upper ceiling once again, but a stronger shift in momentum could be needed for an upwards breakout. The indicators gave mixed signals and suggested that a move in either direction was possible.

The Awesome Oscillator moved back and forth between either side but was bullish, at the time of writing.

On the other hand, the Chaikin Money Flow looked to move below the half-line, suggesting that money was moving away from the crypto-asset.

Source: https://ambcrypto.com/eos-basic-attention-token-maker-price-analysis-19-january

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