Bitcoin Hodler prepare for stormy times
Most of Bitcoin’s circulating supply has been idle for a year, while the triumph of global crypto-adaptation continues. The market update.
The Bitcoin share price (BTC) has dropped by a painful 0.1 percent in a daily comparison and is quoted at $10,713 US dollars at the time of going to press, with a 24-hour fluctuation margin of $200. On a weekly basis, the largest crypto currency increases by 1.8 percent.
Beginning bull market instead of bear market rally
DJE Kapital AG – To mitigate the consequences of Corona, central banks are pumping enormous amounts of money into the markets. This should allow the economy to gradually recover. In addition, many investors are only marginally invested in shares – reasons for Dr. Ulrich Kaffarnik to assume that a longer lasting upward trend will begin.
Bulls and bears continue to fight their power struggle in the zone between 10,500 and 11,000 US dollars. Thus Crypto Investor review has been oscillating for days without orientation between resistance and support. If the exchange rate does not crack the resistance promptly and sustainably at 10,850 US dollars, there is a danger of a slide towards 10,000 US dollars. Unimpressed by the short-term chart events, the majority of investors are hired as hodlers.
Hodler hodln Bitcoin
Hodler is focusing on its core competence and is keeping its Bitcoin.
Over 63 percent of the Bitcoin in circulation has not been moved for a year.
The network last recorded a similarly high level of „decommissioned“ Bitcoin at the beginning of 2016, at just under 61 percent. Investors are waiting and looking forward with excitement to the coming weeks. Both the upcoming US presidential election and seasonally rising infection figures with threatening lockdown regulations could turn the crypto-market upside down in Q4.
Crypto-adaptation on the rise
The Cambridge Centre for Alternative Finance has presented this year’s major crypto-report. In terms of adaptation, the signs are pointing to growth.
Just two years ago, the number of users of crypto assets was 35 million. Within two years, the number of crypto users has almost tripled. Using the same methodology, the researchers currently count 101 million users spread over 191 million accounts. All in all, this results in a share of around 1.3 percent of the total world population that owns crypto currencies.
This 189 percent increase in the number of users can be explained both by an increase in the number of accounts (which rose by 37 percent) and by a larger proportion of accounts that are systematically linked to a person’s identity.
The report also localizes regional differences in user activity. As a result, crypto service providers in North America and Europe have the most regular interactions with the crypto ecosystem. On average, 40 percent of users are registered as active.
According to the report, however, there is also a wide variation in the number of active users within a region, which is due to different calculation methods. Some stock exchanges and service providers calculate the values on a weekly basis, others on a monthly basis. Overall, however, small providers show a higher level of user activity.
Institutional investors vs. small investors
It is no secret that institutional investors are taking over ever larger shares in the crypto market. Be it the aggressive Bitcoin purchasing policy of asset manager Grayscale or the shifting of cash reserves to Bitcoin from Microstrategy: Bitcoin has long since arrived in the professional investor world.
But the impression that institutional investors are steering the fate of the crypto-market is deceptive. According to the report, the overwhelming majority of users are in the category of small investors.
The share of institutional investors is highest in Europe and North America with 30 percent, while Latin America has the lowest share of institutional investors in the crypto ecosystem with 10 percent.
Although the market has opened up more and more to traditional financial markets in recent years with exchange-traded financial products such as perpetual swaps, futures and options, the ecosystem is still a domain of private investors.
Despite the significant development of institutional-quality financial instruments and infrastructure, our data indicate that the client base of cryptoasset service providers continues to be primarily focused on retail clients, indicating that despite growing institutional interest, connectivity remains limited.