It could be that Bitcoin bulls are keen to put behind them a bad summer of July, where all the significant ground above USD 10,000 gained in 2019 were given away in an awful inability to hold on to territory.
And for the Bitcoin market, there is no better time than the weekend, they say, for that is when the bulls love to come out and play.
This does so far seem to be the case, with Bitcoin now completing a full 24 hours above that important resistance line, and so far trading strongly with a 2-day upwards trend beginning to form. Apart from a panicky crash from USD 10,658 to USD 10,366 around Friday afternoon US trading time, the price has registered a recovery, recording a daily high at USD 10,855 just hours ago in early Saturday morning trade for West Europe. Right now, at 8:00 am London time, Bitcoin is holding on well at USD 10,830 (CoinDesk).
There does not appear to be very much news following on yesterday’s discussions online about economic woes all over the world and weakening stock markets bringing about the “perfect storm” for a Bitcoin resurgence and onward dominance.
But the signs of strength are surely gathering, with today’s big news being that of digital asset management fund Grayscale Investments expected to transfer almost USD 3 billion in crypto to one of the world’s largest crypto exchange and wallet providers, Coinbase.
8/2/19 UPDATE: Holdings per share, net assets under management and digital assets per share for our investment products.
— Grayscale (@GrayscaleInvest) August 2, 2019
Coinbase Custody, the crypto custodial storage service of the American exchange, will also take charge of Grayscale’s publicly quoted cryptocurrency trusts and the Grayscale Digital Large Cap Fund. This will make it one of the largest single-day crypto transfers recorded in history. The move was brought on by Grayscale’s asset under management hitting an all-time high near USD 2.7 billion, up nearly 300% since the start of the year.
Coinbase Custody’s Sam McIngvale said simply:
“As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.”
Meanwhile, the bears won’t be giving up just yet on negative sentiment, and they will point to a new report about why institutional investment isn’t ready for Bitcoin just yet.
Many analysts believe that it is institutional investment that will bring Bitcoin on its next bull run, with big bankers and wealth funds waiting in the wings to enter crypto. However, some like Binance CEO Changpeng Zhao feel that this is simply not happening fast enough, with the retail majority prone to FOMO and panic — the reasons behind Bitcoin volatility.
Altcoin Magazine’s Yum Kasukawa agrees and thinks that big issues such as Tether printing and general regulatory concerns will continue to undermine efforts by the industry to bring about institutional investment into Bitcoin. He goes so far as to even call Tether “the next Bitconnect”, referring to a digital asset that had for a long time been in the top 5 of crypto by market capitalization. The token was little more than a disguised Ponzi, however, and eventually collapsed in the wake of the crypto bull run in January 2018.
Kasukawa compares Tether’s “issuing millions of new coins on an almost daily basis, as the chief driving force behind current Bitcoin price rises”. He then points out other points of contention, including Tether’s non-disclosure of banking details, the lack of independent audits, no official business address and its multiple off-shore locations.
Of course, Tether issues have been at the heart of serious discussions surrounding Bitcoin, and this is something most commentators would agree — pro or against Bitcoin — except those related to Tether itself or Tether-using exchanges. So whether these well-known facts would result in more negative sentiment? Doesn’t seem likely. Even if it is worth noting that until they are fixed, institutional entry into crypto would be slowed down further.
Square’s Cash App Doubles Its Bitcoin-Generated Revenues – via /r/Bitcoin https://t.co/gLaGfIJLNV
— Bitcoin 🐝🍵🌊 (airdrops) (@CoyotlCompany) August 3, 2019
In terms of retail investment, however, one should not look down so much on them. For as much as the potential of institutional money excites those speculators dreaming of million-dollar Bitcoin, retail interest is the pulse of Bitcoin market and will continue to be so for the next few years, if not throughout Bitcoin’s lifetime.
And in that regard, Bitcoin’s health could not be any better, with FXStreet now reporting that Square’s Bitcoin sales have doubled in Q2 2019. Some USD 125 million in sales have resulted in a gross profit of about USD 2 million, almost doubling that of the first quarter.
So it seems, big money or not, bad news or not, every day Bitcoin users and investors have not lost their heart for buying crypto. And that is the best news anyone could hope for.
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