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Coinbase Whale Accumulation Could Prevent Bitcoin Dropping Below $44K

Bitcoin prices have recovered somewhat since yesterday’s flash crash drove them into the ground temporarily, but metrics from Coinbase suggest there could be a $44k bottom due to whale accumulation.

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According to Tradingview citing Coinbase prices, BTC crashed to around $46,800 before bouncing back over $50k again during Tuesday morning’s Asian trading session.

The move wiped out over $9,000 in a couple of hours as a cascade of leveraged positions was liquidated on exchanges such as Kraken.

There has been a recovery from the flash crash but BTC prices are still down 14% from their weekend all-time high of $58,250.

The Coinbase Premium Effect

The U.S. exchange, and one of the world’s largest fiat onramps which recently launched ETH 2.0 staking, is known to have a premium where prices differ from elsewhere. The premium is the gap between the Coinbase Pro USD price and the Binance price in Tether. The higher the premium means that Coinbase whales have been accumulating Bitcoin despite its high price.

According to on-chain analytics provider, CryptoQuant, that Coinbase premium slumped to its lowest level ever at -$1,020 before surging back to +$486.

The data provider’s CEO, Ki Young Ju, commented that whales have been accumulating which means that prices are not likely to fall much lower since Coinbase is one of the market’s largest drivers.

“Remember who’s driving the market. Coinbase whales have been accumulating $BTC in 44-48k range. Even if there are more corrections, it’s unlikely to go down below 44k.”

CryptoQuant data shows that the premium went up to +$77 the first time that Bitcoin broke $20k back in mid-December. It was as high as +$160 when BTC first topped $30k and peaked at $174 when the asset first breached $40k.

Institutional Bitcoin Hodling

The research added that whales tend to realize profits when retail traders are in the market (which is usually towards the peaks of a bull run). But it also added that institutional investors that have been loading up recently are holders and will keep the asset as an inflation hedge.

“Many U.S. institutions buy Bitcoin through Grayscale (GBTC) and even make GBTC premium. Our users often use this indicator as a bullish signal.”

Grayscale has sold very little BTC and its most recent post on Feb. 22 suggests that assets under management figures are still hovering around their highest ever levels of $42 billion.

Bitcoin may have a little further to fall as it moves back below $50k again but all indications are that it will be a much higher low than previous market slumps.

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Source: https://cryptopotato.com/coinbase-whale-accumulation-could-prevent-bitcoin-dropping-below-44k/

Blockchain

India Banning Cryptocurrencies Could Backtrack the Nation in Financial Innovation

India sign saying Bitcoin Banned

India sign saying Bitcoin BannedIndia changed a banking ban on crypto trading in March 2020. The government has openly spoken about introducing its cryptocurrency while banning others in the unknown Crypto and Regulation of Official Digital Currency 2021 Bill.  On Wednesday, Reserve Bank of India (RBI) Governor Shaktikanta Das said cryptocurrencies could harm financial stability, thus impacting the economy.

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India changed a banking ban on crypto trading in March 2020. The government has openly spoken about introducing its cryptocurrency while banning others in the unknown Crypto and Regulation of Official Digital Currency 2021 Bill. 

On Wednesday, Reserve Bank of India (RBI) Governor Shaktikanta Das said cryptocurrencies could harm financial stability, thus impacting the economy. His comment comes when the value of Bitcoin, the highest-valued cryptocurrency, has crossed $50,000.

The Indian government has expressed concern about digital currencies, claiming they can be used to launder large quantities of money and for terror-funding purposes. Experts recommend that the government should shed anxiety about cryptocurrency and embrace it.

Crypto Investors Distressed

The ban has threatened to quash India’s nascent cryptocurrency industry and affect investors who have already placed their money in virtual currencies. Sumit Gupta, founder, CoinDCX, said that cryptography is an integral part of cybersecurity and is used by experts in that field.

He got a pre-placement offer from Sony and went to Japan in 2014. During his time in Japan, Sumit used to get emails about job offers in the crypto field. He did not understand the technology very well, so he wasn’t keen on investing in cryptocurrency. 

Sumit Gupta and his co-founder established CoinDCX, which is based in Singapore, in 2018. The platform specializes in crypto-enabled financial services. CoinDCX is bringing a unique solution with its crypto-based products by developing borderless financial services that ensure a faster, more straightforward, and uninterrupted capital flow.

Regulating Cryptocurrency Rather Than Banning

Presently, India lacks a regulatory framework for cryptocurrency.

On 6th April 2018, the CoinDCX exchange was about to be launched. On 8th April, the RBI had effectively banned banks from processing payments related to cryptocurrency after a string of frauds in the months following Prime Minister Narendra Modi’s sudden decision for demonetization.

CoinDCX had to change its model from rupee-crypto to crypto to crypto trading. Simultaneously, they challenged the RBI decision in the Supreme Court, and Sumit was personally a party in that case.

Sumit Gupta said he has been on a panel with Subhash Chandra Garg, who was involved in drafting the original bill, alongside others. The team is okay with regulating cryptocurrency as an asset class rather than a currency. 

He added that there are solutions on how India can regulate cryptocurrency if they engage in discussions with the government. Indians will also miss on further price movements in cryptocurrency, which is similar to losing your gold. He is optimistic that a ban will not happen.

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Source: https://btcmanager.com/india-banning-cryptocurrencies-nation-financial-innovation/

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Cardano Bucks the Trend As Crypto Market Pulls Back – eToro Crypto Roundup

Bitcoin falls alongside stocks after tagging $58K. The Bitcoin rally hit a speed bump last week, pushing prices down to $43K as the stock market dropped and US Treasury Secretary Janet Yellen claimed the leading cryptoasset is “extremely inefficient for transactions.” Yet as the market moved lower, institutional investors kept buying. MicroStrategy and Square completed […]

The post Cardano Bucks the Trend As Crypto Market Pulls Back – eToro Crypto Roundup appeared first on The Daily Hodl.

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Bitcoin falls alongside stocks after tagging $58K.

The Bitcoin rally hit a speed bump last week, pushing prices down to $43K as the stock market dropped and US Treasury Secretary Janet Yellen claimed the leading cryptoasset is “extremely inefficient for transactions.”

Yet as the market moved lower, institutional investors kept buying. MicroStrategy and Square completed Bitcoin purchases of $1 billion and $170 million respectively, and Dubai’s IBC Group pledged 100,000 Bitcoin to support Miami’s blockchain strategy.

Although most altcoins were caught in the market downturn, Cardano bucked the bearish trend with double digit gains. The smart contract platform’s cryptoasset surged 16% last week as other major cryptos sustained losses.

This week’s highlights

  • Cardano bucks the trend
  • Bitcoin makes biggest daily drop ever

Cardano bucks the trend

Cardano’s stellar performance follows a stratospheric 2,000% surge over the last 12 months, which has seen it outstrip rivals like Binance Coin to become the third-largest cryptoasset as measured by market cap.

The blockchain’s developers announced last week that the “Mary” update will launch on March 1st. This will allow users to create their own tokens on the blockchain, potentially helping Cardano pull market share from other smart contract platforms to accommodate the growing DeFi ecosystem.

Meanwhile, Ethereum has suffered 20% losses over the past week amid rising dissatisfaction with high network fees.

Bitcoin makes biggest daily drop ever

Following record highs, Bitcoin has made a record-breaking pullback. The cryptoasset fell from a high of $58K to a low of $47.7K last Monday – the largest price drop ever in a single day.

Though Bitcoin has dropped by more than 20% on several occasions, this was the biggest single-day fall ever in dollar terms, with the coin losing $10K in value.

Nevertheless, the bounce was equally strong. The cryptoasset gained over 10% in 10 minutes as buyers stepped into the market with a vengeance.

The week ahead

Despite dipping almost 20% from the peak at $58K, Bitcoin is still firmly in bull market territory. During the 2017 bull market, retracements moved the price 30-40% lower before the trend resumed.

According to blockchain data sourced by Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, dip buyers are already moving into the market. Transaction flows suggest institutions are continuing to accumulate Bitcoin at the discounted prices.

Nevertheless, experienced traders might be more cautious in the coming week. Historically, March has not been friendly to Bitcoin, with the cryptoasset falling six times during this month over the past seven years.

This post originally appeared on the eToro blog.

This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.

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Source: https://dailyhodl.com/2021/03/01/cardano-bucks-the-trend-as-crypto-market-pulls-back-etoro-crypto-roundup/

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Leverage traders ‘flushed out’ by late-February crypto crash: Glassnode

Crypto analytics provider Glassnode argues the late February BTC crash may have been a healthy reset that flushed excessive leverage out of the market.

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According to on-chain analytics provider, Glassnode, the late-February crypto market correction may have purged excessive leverage from the markets.

On March 1, Glassnode published a report analyzing the recent crypto crash — which was only the second significant crypto correction since the markets pushed into new record highs in late 2020.

Glassnodenoted the crash peaked with a 25% fall from the local top of $58,300 to $43,343. As such, the move was weaker than January’s dip which saw a roughly 30% retracement from $42,000 to less than $30,000.

The analytics provider suggested that these pullbacks are positive for the crypto markets overall, attributing the latest correction to liquidated leveraged positions held by risky speculators:

“Significant market corrections are positive events in that they flush out speculation, leverage, weak hands, and test holder conviction.”

The report added that several key market indicators were reset as BTC prices found fresh support, including futures open interest, futures funding rates, and the price premium for Grayscale’s investment products.

Futures open interest, which is the total number of outstanding contracts that have not been settled, dropped almost $4 billion or 22% from its peak of $18.4 billion. Glassnode also commented noted perpetual futures funding rates have also reset close to zero, which could indicate that traders are not willing to enter short positions, stating:

“Previous combinations of decreasing open interest and a reset of funding rates have indicated a flush in speculative trading has occurred.”

However, the report did note that open interest is still hovering roughly $2.5 billion above the previous peak of $3.9 billion on Feb. 21 — meaning there is still significant leverage within the market.

Glassnode also noted that shares in Grayscale’s Bitcoin Trust are trading at a discount compared to spot market prices for the first time ever, with investors paying a nearly 4% discount to access exposure to BTC through Grayscale’s trust.

It added that competing products such as Canada’s Purpose ETF could diminish Grayscale’s premium as more institutional products enter the market and close arbitrage opportunities.

At the time of writing, Bitcoin prices were up 5.3% over the past 24 hours, with BTC currently changing hands for $49,200.

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Source: https://cointelegraph.com/news/leverage-traders-flushed-out-by-late-february-crypto-crash-glassnode

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