In hindsight, February can be viewed as a watershed moment in the history of Bitcoin. The entire month could be looked back upon by market specialists and economists, as the markets saw an enormous surge before correcting themselves later in the month.
The flagship cryptocurrency asset, Bitcoin (BTC), hit its all-time high of $58,352 on Feb. 21 while finally breaking the $1 trillion mark in market capitalization. On the same day, the second-most prominent asset in the space, Ether (ETH), hit its all-time high of $2,033.08.
In February, Bitcoin’s price was a bit of a rollercoaster, almost drawing a bell curve of sorts. At the start of the month, BTC was trading at $32,889, gradually rising to an all-time high of $58,352 on Feb. 21 before flash crashing to around the $43,700 range toward the end of the month.
So, what’s behind this meteoric rise and subsequent pullback that now leave many in the community questioning if the crypto bull run is still ongoing?
“The weeks where decades happened”
Bitcoin has seen institutional involvement in the asset increasing since 2020 ended. In February, one of the oldest banks in the world, BNY Mellon, stepped into crypto as a custodian. Considering the size and legacy of such banking institutions, it says a lot about where Bitcoin has reached in its maturity from the old-timer perspectives of the likes of Warren Buffet, who has called the asset a worthless “delusion” and even “ rat poison squared,” indicating how strong his stance against Bitcoin is.
In fact, such perspectives are often subject to change. The latest naysayer to have now become an investor is Kevin O’Leary, the Shark Tank star, who will now allocate 3% of his portfolio to Bitcoin. He also implied that every company he is invested in is considering putting Bitcoin on its balance sheet. In the past, he has referred to cryptocurrencies as a “crypto trap” and Bitcoin’s value to be a “giant nothing burger.”
On these changing perspectives, Shane Ai, who is responsible for product research and development of crypto derivatives at Bybit — a cryptocurrency derivatives exchange — told Cointelegraph:
“The month of February saw a slew of bullish news, from Tesla, MicroStrategy, Square, and BlackRock adding BTC to their balance sheets, to BNY Mellon, Deutsche Bank, and Mastercard embracing Bitcoin. The Bitcoin rally to $58,352 was a proportional response to the weeks where decades happened.”
Besides BNY Mellon and Deutsche Bank, tier-one investment banks like Goldman Sachs and Citigroup have recently taken a stance on Bitcoin. Goldman Sachs announced that it would be restarting its cryptocurrency desk, which it had shut down in December 2017. Veteran trader Peter Brandt took to Twitter to claim that “it is time to guard your money” when Goldman Sachs steps into a niche market.
A Citigroup report stated that Bitcoin is currently at its “tipping point” of either becoming the preferred currency for international trade or seeing a “speculative implosion.” The report says that the involvement of Tesla and MasterCard is proving to be the beginning of a transformation toward going mainstream.
Among the various institutions that are now flocking to the cryptocurrency markets, Tesla is probably the most prominent and the one that has most marked the paradigm shift due to the influence of its CEO, Elon Musk, on the crypto markets.
Now, his impact on the markets is often referred to as the “Musk effect.” On Feb. 8, Tesla announced its purchase of Bitcoin worth $1.5 billion at the time as a treasury asset on its balance sheet. The move sent Bitcoin’s price soaring, posting a price surge of $10,000 within a week. Just two weeks later on Feb. 21, Bitcoin reached its all-time high.
Apart from the obvious institutional interest, flaws and insecurities from the global economy and traditional financial markets also seem to overflow into the Bitcoin markets. Ai further opined: “Bitcoin is a highly reflexive asset — the viability of it being a corporate reserve asset increases alongside its market capitalization.” He further added: “In a world starved of yield, financial institutions are naturally converging on crypto — which still offers superior, liquid returns relative to Traditional Finance.”
The evidence that the recent asset movement in the cryptocurrency markets is institutionally driven is revealed by analyzing The TIE’s proprietary NVTweet Ratio, which compares a cryptocurrency’s social conversation with its market capitalization. The ratio looks at how many tweets a particular coin has per each $1 million in market cap.
A rapidly increasing NVTweet Ratio suggests that a certain coin’s market is becoming institutionally driven. If a coin’s market capitalization is rising faster than social volume, this may suggest less retail involvement in the market for a particular coin. When observing the NVTweet Ratio when Bitcoin’s price passes major support levels like $20,000 and $40,000, it is evident that the ratio surges rapidly, pointing to disproportionately less social interest despite an aggressively increasing market capitalization.
Retail investors also get involved
As a byproduct of the rise in institutional involvement, millions of new retail investors have also been lured into the cryptocurrency markets due to the gains offered in the recent timelines and the hype surrounding it.
Joshua Frank, CEO of The TIE, pointed out further evidence to Cointelegraph: “From a retail lens, we have seen Bitcoin’s tweet volume continue to soar for the most extended period of time that we have ever witnessed.”
This continuous rise in tweet volumes regarding Bitcoin is driven mainly by all the landmark events that Bitcoin witnessed in the month of February, such as its all-time high and its market capitalization smashing the $1 trillion mark.
Cointelegraph discussed with Marie Tatibouet, the chief marketing officer of cryptocurrency exchange Gate.io, the question of whether this is the right moment for retail investors to jump into Bitcoin despite the prices being much higher than just a year ago. She opined:
“It is the best time possible since this bull run is unprecedented due to the parties involved. […] These investors are not going to let BTC go through catastrophic drops. Also, keep in mind that not only are we in the early stages when it comes to overall adoption, but we are also in the early stages of this bull cycle.”
Despite the fact that prices might seem high, the retail investors don’t seem to be deterred by this at all. In Robinhood’s recent report “Crypto Goes Mainstream,” the company revealed that there were over 6 million new crypto users who registered on its platform. January had more than 3 million new users, while February had more than 2.9 million new users as of Feb. 25. This is a significant increase compared with 2020 when Robinhood had only 200,000 average monthly new crypto traders.
The report also pointed out that the average transaction size on the platform in 2021 is $500, a 100% increase when compared with the first three quarters of 2020. Tatibouet further elaborated that Bitcoin is seen as a lucrative investment proposition for retail investors due to its impressive gains over the past year: “Bitcoin has outperformed every single asset class, and that too by a significant amount. At one point, it was outperforming Nasdaq 100 by 300% and S&P 500 by almost 1600%.”
While Bitcoin witnessed the initial price breakout beyond the $40,000 mark in January, February proved to be the month when most of the groundbreaking news came out, which led the price of Bitcoin to its all-time high. Furthermore, if Bitcoin avoids a big price correction like the one seen almost a year ago on March 12, 2020, BTC could post its most impressive quarter in recent history.
Coinbase CEO Brian Armstrong Urges for Fair Crypto Regulations
Ahead of the long-anticipated public listing for his company, Coinbase’s CEO Brian Armstrong asserted that US regulators are wrong in believing cryptocurrencies are primarily used for illicit transactions. He added that the industry wants to be treated on the same playing field as traditional finance when it comes down to legislative frameworks.
Armstrong on Crypto Misconceptions
The belief that digital assets are mainly used for illegal transactions has been going on for years, perhaps since bitcoin’s usage in some dark web marketplaces starting almost a decade ago. Regulators have used it as a good bashing point, and US-based watchdogs have been at the forefront of those attacks.
US Treasury Secretary, Janet Yellen, has repeatedly outlined the alleged massive usage of bitcoin and other cryptocurrencies for terrorist financing, Ponzi schemes, buying illegal goods, and everything in between. Naturally, the Treasury’s FinCEN department proposed quite restrictive legislation, which, however, has been indefinitely postponed.
Brian Armstrong, the CEO of the largest US-based crypto exchange preparing for its direct listing today, touched upon these concerns during a CNBC interview. However, he asserted that cash and even the highly-regulated banking sector are more frequently utilized in illegal transactions than crypto.
He referred to a report published today by the recently launched Crypto Council for Innovation indicating that “less than 1%” of all digital asset transactions have illicit roots. Simultaneously, PwC estimations showed that the percentage is more than 4x higher with the traditional economy, and more specifically cash.
“The data we have just indicates that crypto is really not uniquely crime written. In fact, the data suggests it’s better than cash in that regard.”
Treat us Equally
Armstrong further outlined the significance of adequate regulation for his company, especially now that it will become public, but also for the entire industry. He suggested that the US should treat the crypto space as other financial sectors.
“We want to be treated on the level playing field with traditional financial services at the very least and not have any kind of punishment for being in the crypto space.”
He also joined Kraken’s CEO, Jesse Powell, saying that the world’s largest country by nominal GDP risks falling further behind other nations, such as China, in terms of crypto and blockchain adoption.
“China has really embraced cryptocurrency and blockchain in a big way – starting from about six years ago. They are substantially far ahead.” – Armstrong added.
MakiSwap Raises $1.4M to Build AMM Platform on Huobi Eco Chain
[Press Release – St, John’s Antigua, Barbuda, 14th April, 2021]
MakiSwap, the number one decentralized exchange on Huobi Eco Chain (Heco), has raised $1.4 million in seed and private funding to build the most robust and feature-rich automated market maker exchange and yield farming platform on Huobi Eco Chain.
The oversubscribed round was led by Inclusion Capital, which incubated and supported MakiSwap in its development efforts. Other participants include Kenetic Capital, LD Capital, NGC Ventures, Polygon Network, DAO Maker, Momentum 6, AU21 Capital, Xend Finance and others. Jawad Ashraf, Founder of Terra Virtua, also joined the round as an individual investor.
MakiSwap is the leading AMM on Huobi Eco Chain, a high-performance blockchain supporting the Ethereum Virtual Machine. Heco was launched by the Huobi Global exchange and was met with formidable community support in China and the Asia-Pacific region. Heco projects are now shifting their focus to the global market, looking to bring in DeFi users from other regions and other blockchains.
MakiSwap was developed by Unilayer, a cross-chain DEX aggregator and DeFi ecosystem. The exchange offers unique features for an AMM designed with the professional trader in mind, including limit orders, advanced charting tools, analytics, and more. MakiSwap also features lucrative yield farming opportunities designed to incentivize users to make the jump into the new protocol and blockchain.
“We’re extremely excited to launch MakiSwap on Huobi Eco Chain and to the public, we do see a big potential for HECO to capture a lot of market share compared to other blockchains in the near future,” said Geo, Founder of Unilayer and MakiSwap.
“Makiswap is leading a new wave of Defi by empowering Huobi’s ECO chain community with key tools and infrastructure. We are excited to support Makiswap in helping to transform global finance through Defi.” Jehan Chu, Founder and Managing Partner, Kenetic
MakiSwap is powered by the MAKI governance token, which will be airdropped to holders of Unilayer’s LAYER token on Ethereum and Binance Smart Chain.
MakiSwap is the leading AMM exchange on Huobi Eco Chain, developed and launched by Unilayer, a cross-chain liquidity aggregator and unified interface for decentralized exchanges. MakiSwap’s governance token is MAKI, distributed fairly to all holders of Unilayer’s LAYER token. MakiSwap includes an advanced set of features like limit orders and advance charting to offer the best experience for professional DeFi traders.
The Message Coinbase Embedded in Bitcoin’s Blockchain on Listing Day
Paying homage to Satoshi Nakamoto and his message embedded in the Bitcoin Genesis Block in 2009, Coinbase has done the same today. On the day they’re set to become a publicly traded company, the exchange asked a large Bitcoin mining pool to embed a note in the Bitcoin blockchain in regards to the latest stimulus bill.
- When launching the Genesis Block of the first-ever cryptocurrency in January 2009, the anonymous creator(s) embedded the following message referring to the financial crisis at the time:
“The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
- More than twelve years later, Coinbase has followed the example set by Bitcoin’s creator. The exchange announced they had asked the mining pool F2pool to code the following text:
“TNYTimes 10/Mar/2021 House Gives Final Approval to Biden’s $1.9T Pandemic Relief Bill.”
- The commonalities between the two messages spread more than being embedded on the Bitcoin blockchain. Both have referred to the economic struggles in 2009 and 2021 led by the aforementioned banking crisis and the COVID-19-induced crisis.
- More specifically, both messages have touched upon the governments’ somewhat controversial measures in trying to fight the consequences of the fallouts. Coinbase’s note cites this article published by the New York Times, which outlined the latest stimulus package aimed to alleviate some of the financial pain from the pandemic.
- The largest US-based crypto exchange has chosen today to pay homage to Nakamoto because of the significance of this day. As previously reported, Coinbase is set to become a publicly traded company on August 14th, 2021, through a direct listing.
How NFTs, DeFi and Web 3.0 are intertwined
Altcoin Season 2021 Booming as BTC Dominance Hits 2-Year Low: The Weekly Crypto Recap
11% Of Business In Spain Use Blockchain Technology, Report
XRP Price Analysis: 10 April
Has the rally ended for altcoins like LINK, ADA, and NPXS?
By The Numbers: The Rate Bitcoin Must Climb To Reach $100K By July
Coming this Sunday April 11th to New to the Street
Whole Earth Coin (WEC) Set for IEO to Inject New Life Into Aging Infrastructure
Bitcoin’s time has come: TIME magazine to hold BTC on balance sheet
Kraken Daily Market Report for April 09 2021
NYSE celebrates historic ‘first trades’ with NFT series
Enterprise-level partnerships send VeChain (VET) price to new highs
Watch these key technical levels as Bitcoin price nears $61,800 all-time high
SingularityNET (AGI) rallies 1,000% as industries aim to merge AI with blockchain
Uniswap, Monero, Ethereum Classic Price Analysis: 10 April
Oasis Foundation announces implementation of Tidal DeFi insurance platform
SEC approves Exodus wallet for Regulation A stock offering
Binance launches zero-commission tradable stock tokens
USDT, USDC, and BUSD represent 93% of stablecoin market cap
NYSE Joins NFT Mania With Special First Trade Collection
Blockchain7 days ago
Decentralized oracle solution Umbrella Network adds Huobi as validator node
Blockchain6 days ago
XRP Price Analysis: 08 April
Blockchain1 week ago
Uhive social network enables users to mint their profiles into NFTs
Blockchain6 days ago
Tesla’s landlord accepts crypto; will Elon Musk pay rent in Bitcoin?
Blockchain6 days ago
$48B Asset Manager Millennium Management Dabbles With Bitcoin
Blockchain6 days ago
Binance Smart Chain Daily Transactions 200% More Than Ethereum’s
Blockchain7 days ago
Why JP Morgan’s CEO calls Bitcoin regulation a “serious issue”
Blockchain6 days ago
Bitcoin Miners Hit Jackpot as Hash Rate Peaks Again