Has Institutional Interest in Bitcoin (BTC) Fallen?
JPMorgan’s global market strategist Nikolaos Panigirtzoglu recently said that institutional interest in Bitcoin and other crypto assets has waned and will even turn negative due to the recent market correction.
Making a statement during an interview with CNBC, Panigirtzoglu pointed out that since April 2021, there has been a gradual decline in the flow of cryptocurrency organizations. JPMorgan strategist and the SafeTrading team added that Bitcoin volatility will return to normal in the coming weeks and bitcoin signals will be the best thing to invest in.
The price of Bitcoin has stabilized since the start of this week. At the time of writing, the world’s most valuable digital currency is trading at around $ 35,000 with a market cap of over $ 650 billion. BTC hit an all-time high of $ 64,000 in April, but suffered huge losses due to declining institutional interest and pressure from China to mine for cryptocurrencies.
Panigirtzoglu used the following statements in his statement:
Institutional interest in bitcoin and other cryptocurrencies has stopped and even turned negative in May 2021. It is probably almost horizontal now. The main thing to note is that institutional interest begins to decline in April 2021 before the correction in May. We have started to see flows from Bitcoin commodities to physical gold ETFs, which means that some institutional investors started withdrawing money from the Bitcoin market in April 2021.
Commenting on the recent volatility of bitcoin and other cryptocurrencies, Panigirtzoglu also said that bitcoin volatility will stabilize in the near future. “Differences have arisen between BTC and other crypto assets. In April, money started flowing from BTC products, and part of that investment went to Ethereum funds. But now we see the opposite: The flow of Ethereum funds has slowed down in recent weeks, while the flow of Bitcoin funds has improved, ”he added.
BTC’s dominance in the cryptocurrency market has increased dramatically over the past few weeks. Bitcoin currently accounts for over 46% of the total cryptocurrency market capitalization.
USDC plans to expand the network to 10 blockchains, including Avalanche.
As reported by CoinDesk, the USDC stablecoin, which is currently integrated into four blockchains, plans to expand the number of blockchains to 10 networks soon. When that happens, the USDC, which currently has a market cap of $ 25 billion, will experience the strongest growth. Thus, the capacity of the 8 Blockchain Tether (USDT) network, which has a market value of $ 63 billion, will be exceeded.
Networks USDC plans to expand
“We expect USDC to be available on Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos and Tron in the coming months,” said the CENTER’s preliminary announcement. USDC.
Growth plans seem to have emerged amid increasing regulatory research into stable coins – says SafeTrading analyst.
Eric Rosengren, chairman of the Federal Reserve Bank of Boston, in a recent conversation on emerging systemic risks, pointed out the USDT and even the relatively obscure TITAN. As Fed Vice Chairman Randal Quarles continues to make more positive statements about stablecoins, it’s clear the industry is on Washington’s radar.
Individual and institutional blockchains
CENTER, a consortium led by cryptocurrency exchange Coinbase and payments company Circle, said expanding to other networks is helping drive adoption of individual and enterprise open blockchain technologies.
“We expect USDC on these blockchain platforms and multi-chain protocols to further accelerate the adoption of the world’s fastest growing dollar digital currency,” the CENTER’s draft announcement states. .
On the other hand, USDC, 2018 I Etherea ‘was launched in the second half of 2020, and Algorand was extended to Stellar and Solana.
The potential spread to other blockchains follows a few announcements that demonstrate the momentum behind USDC as a way to generate interest-generating savings. Circle announced its Circle Yield and DeFi API products late last week.
The CENTER’s draft announcement indicates that updates on the schedule for further integrations will be released “year round”.
Ethereum Classic (ETC), a fork of Ethereum (ETH), has increased significantly by 30% in the past 24 hours.
Cryptocurrencies started the week quite well and upward movements were seen in all cryptocurrencies, especially Bitcoin (BTC) and bitcoin signals. One of the highlights of these bullish charts was Ethereum Classic (ETC).
ETC Top 20 again
Ethereum Classic, the Ethereum hard fork, has made a name for itself for its performance over the past 24 hours. ETC, which has risen 30% in the past twenty-four hours, is trading in the $ 58.1 range at the time of writing.
In addition, ETC’s market capitalization also increased with the increase in prices, and ETC was once again able to enter the top 20 cryptocurrency by market capitalization. Ethereum Classic is currently the 17th largest cryptocurrency with a valuation of $ 6.8 billion.
It should be noted here that the price of Ethereum Classic has risen by around 50% over the past week – as one SafeTrading analyst puts it.
On the other hand, according to the statements and data received, it is believed that the rise in the price of ETC is caused by large whales. Chinese news source Wu Blockchain said in statements on Twitter that there had been no significant change in the individual user base.
Token growth of more than 10% in 1 week.
Besides ETC, various cryptocurrencies gained over 10% in 1 week due to the latest bullish move in the market. For example; in the last week Dogecoin (DOGE) 15%, Internet Computer (ICP) 26%, Filecoin (FIL) 13%, Tron (TRX) 17%, Shiba Inu (SHIB) 30%, Bitcoin Satoshi Vision (BSV) 17 %, Decred (DCR) was 33% higher, Waves (WAVES) was 23%, and Elrond (EGLD) was up 25%.
This rise does not yet mark the start of an altcoin rally, analysts say. However, if the rally in the price of bitcoin continues for a while and then a process of consolidation occurs, a second altcoin rally could begin in 2021.
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