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Institutions Can’t Get Enough Of Crypto As Trading Volumes Hit New $30 Billion Record

Inflows into crypto investment products have ballooned in the past few weeks to reach a record trading volume last week. According to CoinShares, digital asset investment products received inflows of $1.84 billion last week, the second-highest on record. Particularly noteworthy is that the inflow into crypto funds caused trading volume to cross over a weekly volume of $30 billion for the first time.

Institutions Rush To Crypto

Weekly trading volume in investment products has now displaced its 2021 record to cross over $30 billion. The timing is not a coincidence, as most cryptocurrencies are currently on the backs of bullish price action for the past few weeks.

Recent market dynamics have seen institutions and large traders rushing into crypto assets, most especially Bitcoin. Consequently, this cohort has become a large part of the crypto industry, contributing highly to a surge in trading volume across the board. 

As expected, the majority of inflows and trading volume was centered around Bitcoin. Bitcoin remains the most popular digital asset for institutions, and interest has really piqued since Spot Bitcoin ETFs went live in the US. Last week, the weekly trading volume for Spot Bitcoin ETFs alone crossed a record $22.3 billion. The ETFs ended the week at a net inflow of $1.72 billion, despite an outflow of $1.45 billion from Grayscale’s ETF.

According to CoinShares, around $1.73 billion, representing 94% of the total inflow into investment products, went into Bitcoin last week. The company also noted that investment products at times represented 50% of global Bitcoin daily trading volumes on exchanges. 

Ethereum led the altcoin market with a net inflow of $84.7 million, bringing its total net inflow this year to $137 million. This is Ethereum’s largest weekly inflow since mid-July 2022. However, its current $14.6 billion worth of assets under management is 38% below its all-time high of $23.7 billion.

XRP, Chainlink, and Litecoin registered inflows of $2.5 million, $1.6 million, and $1.2 million, respectively. Short investors also poured $22 million inflows into short-Bitcoin investment products.

On the other hand, Solana registered an outflow of $11.9 million last week. Its year-to-date flow has yet to turn positive, as it has been $14 million in outflows since the beginning of the year. Multi-asset products also saw outflows of $0.3 million. 

In terms of geographical location, the USA had the most inflows with $1.88 billion, Switzerland with $19.6 million, Australia with $3.7 million, and Brazil with $2.7 million. On the other hand, Canada, Germany, and Sweden had net outflows of $23.1 million, $34.8 million, and $31.6 million, respectively. 

Crypto total market cap chart from Tradingview.com

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The Bulls Are Back: Crypto Institutional Inflows Balloon To 2021 Levels

Crypto investment products have experienced another week of inflows, bringing the run to 10 consecutive weeks. According to CoinShares’ latest report on digital asset investment funds, inflows into crypto products totaled $176 million last week, bringing the total inflow in 10 weeks to $1.76 billion. The timing is not a coincidence, as most cryptocurrencies turned green again last week in terms of price action.

Total Crypto Inflows Hit $1.76 Billion In 10 Weeks

After a lackluster action for most of the year and some weeks of net outflows, the most recent data shows smart money investors are betting big on crypto again. Investments in digital asset funds have been on the rise for the past two months, ignited by the crypto market bull run which started in the middle of October. As a result, the inflows have ballooned every week, breaking levels not seen since 2021’s crypto market bull run. 

Digital asset investment funds ended November with an inflow of $176 million, although down from the $346 million registered in the week before. Most of the money last week went into Bitcoin, with the cryptocurrency seeing $133 million in inflows. 

Bitcoin remains the most popular digital asset for institutions, and interest has really piqued with the applications of spot Bitcoin ETFs in the US waiting for approval from regulators. As a result, the crypto has strengthened since October, breaking various price levels and resistances, the latest being the $42,000 price level.

The sentiment has also flowed into the altcoin market. Ethereum saw inflows of $31 million last week, bringing its 5-week inflow run to a total of $134 million. Multi-asset investment products that provide exposure to a basket of crypto assets saw $2.3 million in new investment. 

Crypto total market cap chart from Tradingview.com (Institutional investors)

Solana and XRP saw inflows of $4.3 million and $0.5 million respectively. On the other hand, Litecoin saw outflows of $0.2 million, and Short Bitcoin products saw $3.6 million inflows after three consecutive weeks of outflows. 

Most of the inflows came in from Canada, Germany, and the US, which saw inflows of $79 million, $57 million, and $54 million respectively. Australia and Sweden also saw outflows of $0.5 million and $0.2 million respectively. However, the overall trend shows institutions are still bullish on crypto in the long run.

It’s exciting to see such numbers again, as they are reminiscent of past bullish sentiment in the crypto industry. According to CoinShares, this run of inflows is now the largest since October 2021, which saw the launch of the futures-based ETF in the US. 

Assets under management have also risen by 107% this year and are now at $46.2 billion, but still below the $86.6 billion seen in 2021. However, this record is ready to be overtaken in the coming year, as the latest data provides further evidence that institutional interest in the crypto market will continue for a while.

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Top 3 Altcoins For November 2023 That Could 100x Your Crypto Portfolio

Altcoins have become one of the most preferred ways for crypto investors to secure massive gains in the industry especially given Bitcoin’s massive growth rate in the last decade. Because a lot of these altcoins have significantly smaller market caps, they tend to have a lot of runway for growth, making them an enticing option. So here is a list of the top 3 altcoins that could 100x your crypto portfolio in the coming bull market, in no particular order.

Memecoin (MEME): The New Meme Crypto

Memecoin (MEME) is the latest brainchild from the 9GAG team. The team had successfully launched multiple non-fungible token (NFT) projects in the last year before finally moving on to the launch of their very own cryptocurrency; MEME.

So far, MEME looks to be like any other meme coin in the crypto market with no promises or roadmap. But as far as altcoins go, MEME has one of the most important factors that can guarantee success for a project and that is a very strong community.

The Memecoin official Twitter account already has 2.8 million followers, surpassing established meme coin players such as Floki Inu and falling just behind Shiba Inu which sits at 3.7 million followers. This massive support from the community, coupled with the fact that its market cap is sitting at only $180 million, makes it one of the altcoins with a lot of potential going into the bull run.

Liquity (LQTY) Joins Altcoins With Potential

Liquity (LQTY) has made a name for itself as being one of the decentralized finance (DeFi) protocols offering interest-free borrowing on the Ethereum network. This is a good draw for investors looking to take out loans but not having to pay huge interest on those loans.

In the DeFi summer that was recorded between 2020 and 2021, these kinds of protocols were proven to be an investor favorite. As such, their native tokens are wont to soar if there is a repeat of such a trend.

LQTY token is still trading below $2 and just like MEME, it has a low market just above $150 million. This makes it one of the altcoins with a good runway to grow especially in a bull market and secure good gains for crypto investors.

Liquity (LQTY) price chart from Tradingview.com (Altcoins crypto Shiba Inu Memecoin MEME)

Shiba Inu’s BONE Could Be A Game Changer

For years, the Shiba Inu-based BONE token has been able to fly under the radar and has not achieved the notoriety of some of its meme coin counterparts. However, this could quickly change especially with the launch of the Shibarium network.

Shibarium, which is a Layer 2 network built atop the Ethereum blockchain, actually uses the BONE token as its ecosystem utility token. Many expected this to be Shiba Inu but the team has clarified that SHIB only acts as a governance token in the network.

Given that BONE is the native token of the Shibarium network, it stands to gain a lot when the network begins to gain widespread adoption. And with a market cap under $160 million, there is still a long way to go for BONE to catch up with its competitors in the space.

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Estate and Legacy Planning for Crypto Assets

Legacy and estate planning is crucial for cryptocurrency holders because, unlike traditional assets, cryptocurrencies are not regulated by centralized authorities, making it difficult for heirs to access them after the owner’s death. Proper planning can ensure that digital assets are successfully transferred to loved ones and beneficiaries.

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Bitcoin Price Targets Fourth Consecutive Bullish Monthly Close, Are We There Yet?

Since the start of the trading year, Bitcoin has maintained a 3-month bullish candle close and is on a path to stealing a fourth. 2023 has been an eventful year for the crypto industry and Bitcoin price, which rallied massively to the surprise of many crypto analysts this month.

The significant price movements of Bitcoin, which saw it rally past $30,000 for the first time since June 2022, triggered euphoria and awakened the interests of retail and large cryptocurrency investors. While market sentiments may seem to be positive at the moment, what could have brought about these sentiments?

Bitcoin Price Takes The Spotlight

Bitcoin has shown grit in its recent price movements and rallies, dragging several altcoins with it as it recorded significant gains.

This positive price development of Bitcoin alongside other cryptocurrencies has led to crypto communities calling a start of a bull run and continued price movements.

Related Reading: Bitcoin Holds At $29,300 As PCE Comes Out Neutral

Recently, crypto expert analysts, celebrities, and even some traditional finance analysts have made BTC a topic of major discussion, dropping bullish price predictions for the cryptocurrency.

According to a Reuters report, Geoff Kendrick, head of digital assets research at Standard Chartered, made price predictions for Bitcoin, saying the alpha crypto could reach $100,000 by 2024.

Also, Robert Kiyosaki, the famous best-selling author of “Rich Dad Poor Dad,” recently called a $100,000 price prediction for BTC on his Twitter handle.

BTC’s sudden price rise and attention could be attributed to several market factors and happenings in the Tradfi and business world.

Recent news of the collapse of bank giants such as Silicon Valley and Silvergate caused a stir in the traditional finance world, with users worried about the security of their funds.

Concerns of rising inflation and de-dollarization have also resulted in financial experts and analysts looking to Bitcoin as a “Safe Haven” asset due to its decentralized nature.

While the woes of the traditional finance system continue with recent news of the First Republic Bank potentially failing, Bitcoin price is seen looking to close another month in the bullish territory.

Bitcoin Chart Analysis On The Weekly TimeFrame

On the monthly chart timeframe, Bitcoin price is heading up to close April on a bullish note after its 3-month consecutive run.
The weeks of April have witnessed bullish activity and amazing price action from BTC as it rallied past the $30,000 price region for the first time since last year.

 

Bitcoin price

 

However, the previous week saw a huge price dump of BTC below $27,000 after it briefly tested the resistance hanging around the sub $31,000 price level.

This week is looking up for Bitcoin as bulls seem to take over. At the time of writing, BTC trades at $29,340, just above a key support level.

Related Reading: Dogecoin Bears Unshaken Despite New Trading Pair Addition On Top Exchange

A break below the $29,200 support level may see the alpha cryptocurrency looking to find the next support at the sub-$28,000 price level.

To the upside, if BTC bulls are able to build momentum and break resistance slightly above $30,000, then it could rally past $31,000 to test the next available resistance level.

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Why Crypto Market Sentiment May Present A Unique Buying Opportunity

The crypto market sentiment has not shown any significant recovery during the last couple of months. There have been points where it looked as if the worst was over but the market had declined into the extreme fear territory once more. However, instead of the doom and gloom that usually follows markets such as this, there may be a unique opportunity for investors looking to buy at favorable prices.

A Good Time To Buy

Historically, there have been times when buying cryptocurrencies has been more favorable than others. One of those has been times when the market has spent a long stretch in the extreme fear territory and there is low momentum in the market.

Investors are often wary of putting money into digital assets at times like this, causing the price of the assets to decline. However, this can present a buying opportunity because of the low prices and the reduced volume needed to move the market. 

Total market cap drops to $851 billion | Source: Crypto Total Market Cap on TradingView.com

An example of this happening is back in mid-2020 before the bull run had begun. The crypto market had spent the better part of March and April in the extreme fear region. What would follow was a market rally that would eventually see bitcoin break above $10,000, a more than 100% increase from its March 2021 lows below $4,000.

Crypto Market May See A Recovery

Currently, the crypto market is succumbing to the pressure of the CPI data release and the FOMC meeting. These are historical events that have always had an impact on the macro markets and bitcoin’s high correlation with the stock market has seen it decline during this time too. However, there could be a turn in the tide coming.

The Fed has been increasing interest rates for a while now due to high inflation rates. Naturally, this cannot go on for long and there will eventually be a reversal. When this happens, risk assets will react positively and cryptocurrencies such as bitcoin are expected to do well in such a market.

“Rich Dad Poor Dad” author Robert Kiyosaki forecasted that this change would come about in early 2023 and that the dollar would decline in value. An event like this would trigger a flee to safety in digital assets such as bitcoin, which Kiyosaki has urged investors to purchase.

Featured image from Finance Monthly, chart from TradingView.com

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Singapore To Restrict Highly Risky Crypto Investment Marketing

Singapore, one of the world’s most progressive financial cities and home to many crypto investment companies, is cracking down on advertisements for digital asset services within its borders.

The Monetary Authority of Singapore, which to summarize: “This new law will effectively ban advertisements related to digital currencies.”  It’s another setback for cryptocurrency suppliers as more countries regulate this sector.

The Financial Authority of Singapore has issued guidelines to crypto investment companies that urge them to cautionary advertising and marketing in public areas and bodily or digital currency trading. The government agency says these practices are dangerous for most people because they can lead others into losing their funds when something goes wrong with your investment strategy – which could happen at any time.

As authorities have already upset several companies with the gradual approvals, these new rules might create an even more competitive environment.

Crypto suppliers should not use social media platforms or other public sites to attract new customers. They can’t advertise on buses, trains, and places where they stop as well – nor through broadcast/print media, for that matter. Offering ATMs with crypto tokens is also discouraged.

Bitcoin Price remains steady after January 24, 2022 recovery | Source: Tradingview.com

Cryptocurrency exchanges should not pay influencers to promote their services. This is because Singaporean law requires all advertising material to indicate who produced it and what they want people to know about the product/service.

Their marketing campaigns will continue through the company’s own websites, social media accounts, or app stores.

“Cryptocurrencies are extremely hazardous and never appropriate for most people,” Yee Siew, Assistant Managing Director of Coverage, Funds & Monetary Crime at MAS, said in a press release on Monday. 

Singapore Government Action To Pause All Types of Marketing

The Singaporean central financial institution has taken an interesting approach by labeling cryptocurrencies as ‘DPT’s” which stands for digital payment tokens. This new classification will help them keep up with the recent trends in cryptocurrency trading and invest more wisely than before.

In an effort to get people into their crypto exchange, Foris DAX Asia has been hiring some top Hollywood talent. They’ve rented out American actor Matt Damon for advertisements and even splashed out on his services to make it seem more appealing.

The Hollywood star appeared on multiplex screens throughout Singapore, promoting Crypto.com.  The tagline “Fortune favors the courageous” popped up earlier than motion pictures startup.

Based on the latest from MAS, advertisements for DPT games should no longer be used in public venues.

Crypto.com disclaimer reads:

“The Financial Authority of Singapore (MAS) requires us to supply this danger warning to you as a buyer of a digital fee token (DPT) service supplier. Please observe that you could be not be capable to get well all the cash or DPTs you paid to Foris DAX Asia Pte Ltd if Foris DAX Asia Pte Ltd enterprise fails.”

Singapore’s Monetary Regulator (MAS) has been vocal about its stance on digital currency. The country’s laws specify that service providers who fail to observe the rules face penalties. It’s more likely for them when companies ignore public safeguards and continue working legally within our borders. This could lead MAS to take action against these businesses to prevent negative consequences.

Time will tell how this new advertising and marketing framework affects businesses. Still, MAS instructed some DPT gamers to wind down old campaigns or fulfill contractual obligations before penalizing them.

Crypto Investment Advertisement Framework

Singapore’s Central Financial Institution is taking an identical stance on crypto investment advertising as Britain. The UK’s Advertising Standards Authority has moved to clamp down against any misleading or deceptive ads that may be running throughout this new digital economy – and it looks like they’re going balls out when doing so.

With so many digital currency providers in need of licenses, it’s no wonder that the government has been slow to respond. So far, they’ve only granted five permits out of 180 purposes for these “digital fee token provider” companies – and those are just since January 2020 when Act took effect.

The Singaporean Finance Agency (SFA) recently released a statement highlighting their framework for cryptocurrencies and blockchain technology, noting that it’s important to have guardrails in place when adopting new technologies.

Shadab Taiyabi, president of the SFA, says:

“The expertise behind blockchain has the potential to open many thrilling alternatives for the trade and convey advantages to shoppers. Opening the doorways to innovation additionally requires a system of checks and balances to be put in place earlier than shoppers achieve full consciousness and understanding of the brand new instruments.”

 

Featured image from Pixabay, chart from TradingView.com

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Australian Super Rest Retirement Fund To Invest In Cryptocurrencies

Australia remains outstanding with its increased swing and adoption of cryptocurrencies by the populace. Despite its volatility, the popularity of digital assets has triggered more investment moves towards this financial asset.

Joining in the train of crypto investment within the country is the Retail Employees Superannuation Trust (Rest Super).

By its indication to invest superannuation fund in cryptocurrency, the Australia Rest Super will be the first of its type to do so. Before now, the entire retirement fund sector has been careful with cryptocurrency.

Related Reading | SEC Takes Blow In Action Against Ripple, Will It Impact XRP Price?

With about 1.8M members, Rest Super fund’s assets under management (AUM) are worth $46.8 billion.

However, superannuation is mandatory for all Australian employees. It has an equivalence of a U.S. Individual Retirement Account or 401k.

Speaking on Tuesday during the annual general meeting of Super Rest Fund, Andrew Lill, the company’s Chief Investment Officer (CIO), acknowledged the volatility of such crypto investments. However, he said that their allocation to the investment is a part of diversifying their portfolio.

The CIO mentioned that the company considers cryptocurrencies an important investment aspect and will exercise caution in its move. However, he stated that his opinion is that the investment introduces members to digital assets and blockchain technology.

Hence, they could access a stable source of value within a period where people stick more to crypto investment to combat fiat currency inflation.

Furthermore, another statement from a Rest spokesperson explained that the firm considers cryptocurrencies as a diversifying means of its members’ retirement fund. But, the plan may not be a direct investment.

In addition, the spokesperson confirmed that the company is still doing its research before its final decisions. Also, they are focusing on both the regulations and security involved in crypto investment.

Investment In Cryptocurrencies To Strive In The Country

Contrasting comments are coming within the week to the ones from the Australian Rest Super. On Monday, Paul Schroder, the Chief executive of the $167 billion funds, stated that crypto is not an investment option for their members.

Reports from last month revealed that Queensland Investment Corporation (QIC), an investment fund owned by the state, is considering embracing cryptocurrency. But, contrary to that, the company, this week, disclosed to Business Insider the implication of the reports. Hence, it piped down all moves towards digital assets.

Cryptocurrency market notices upward trend | Source: Crypto Total Market Cap on TradingView.com

The Head of Currency at QIC, Stuart Simmons, said he wants superannuation funds to embrace cryptocurrency. However, the move is likely to be a gradual trickling instead of a massive flow.

The entire deliberation on Australian superannuation funds is happening within the period of a bullish trend in the country’s crypto market. This is after the Senate committee brought up some regulatory proposals within October.

Related Reading | XRP Builds Momentum With 7% Increase As Ripple Launches New ODL Partnership

It catalyzes pushing the country as a focal point in crypto transactions. Also, the Commonwealth Bank of Australia (CBA) intends to offer cryptocurrency trading earlier in the month through its banking app.

As more cryptocurrency adoption is expected in the country, Matt Comyn, the CEO of CBA, commented on the bank action this week.

The CEO explained that participation in digital assets is motivated by FOMO. He said that though there are risks to their involvement, there will be more significant risks with their non-participation.

Featured Image: Pixels | Charts by TradingView

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Billionaire Mike Novogratz Says He’s “Not Nervous” About Crypto Sell-Off

The crypto market has been subjected to major sell-offs since assets began to crash across the board. September which has been a historically bloody month for the market has stayed true to nature as various cryptocurrencies suffered crashes that dragged the market down. Due to this, over $1 billion longs have been liquidated in the market since Monday.

Billionaire Mike Novogratz was on CNBC to talk about the current market trends. But unlike most investors in the market, Novogratz does not seem at all worried about the numerous price dips rocking the market. Mike Novogratz is the CEO of Galaxy Digital, a hedge fund that manages assets ranging from traditional assets to cryptocurrencies.

Nothing To Worry About

Talking about the sell-off in the market, Novogratz explained that tensions were high in the space due to the current regulations talks by the SEC. He pointed to the developing Evergrande crisis, which Tether had been linked to, as also contributing to the sell-offs, which had put investors on edge. The CEO also pointed to long positions that were a little too optimistic, saying, “I think the market got itself a little too long.

Related Reading | September Leaves Behind Trail Of Blood, Bitcoin Long Liquidations

Novogratz sees the current market dips as a buy-the-dip opportunity. Simply stating, “I’m not nervous” in response to the bleeding market. In addition, the billionaire sees the Treasury introducing stablecoins which are going to be backed by Fed banks. “That’s going to be something we watch over the next week to three months.”

Crypto Market Holding At Critical Levels

Noting the crash, the CEO pointed out that the top two coins in the market had held at their critical positions. Spelling good news for the market. Following the Monday crash, bitcoin had held above $40,000 and Ethereum held up above $2,800 and Novogratz said, “As long as those hold, I think the market is in good shape.”

Related Reading | Bears Lose Hold On Market As Bitcoin Breaks $44,000, Crypto Market Tops Up $200 Billion

Both these assets had recorded massive losses following Monday’s opening. And bitcoin alone had seen over $800 million long positions liquidated in response to this. Ethereum had not fared any better in the market as the bloodbath had spilled over into altcoins. But despite this, the billionaire remains bullish on the market.

Another important factor for the billionaire was the amount of both public and private capital that was pouring into the space. At the beginning of the interview, Novogratz had mentioned that the crypto market had moved on from the story of bitcoin but has moved on to Web3. And investors, in a bid to not miss out on what could very well be the next internet, have funneled more and more money into the space.

Crypto total market cap falls back to $1.8 trillion | Source: Crypto Total Market Cap on TradingView.com
Featured image from Investopedia, chart from TradingView.com

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Here’s How Much Your $1,200 Stimulus Check Would Be Worth In Various Cryptocurrencies In 2021

Crypto had started to bull in 2020 at the height of the pandemic. Most thought that the financial markets would suffer greatly when most of the world went into lockdown, this would turn out to not be the case. Although the various markets had experienced price crashes at the beginning of the pandemic. Then, markets started to pick back up. Both stocks and the cryptocurrency markets had recovered even past their various points before the crash.

Related Reading | Crypto Analyst Lays Out Cardano’s (ADA) Pathway To $4

The recovery was at various points attributed to governments providing relief for citizens who could not work in the form of stimulus checks. These were to enable individuals who could not afford it to be able to stay home and also have their basic needs met. Governments even went as far as announcing rent and mortgage freezes across the country. In a bid to keep everyone in a home.

These checks were spent by most on food. Because in reality, the checks were meant for people whose incomes were not enough to see them through a lockdown. Others though who could afford it had either invested part or all of their stimulus checks. Some of these investments were in cryptocurrencies.

Related Reading | American Rapper Tyga To Launch OnlyFans Crypto-Competitor

Stimulus checks were basically regarded by some as “free money.” Money that they would do with as they pleased. While some lamented the negative effects of printing that much money in such a short time, others saw this as an opportunity. This “free money” going into the market most likely played a part in the tremendous bull run that would then follow. A bull run that saw new all-time highs across the market.

But this leads to the question; if a person had invested their $1,200 stimulus checks issued by the U.S. government back in April of 2020, how much would that investor have across various assets? This report will answer that questions, putting the numbers into perspective.

What A $1,200 Crypto Investment Would Net Investors

To start out, we will look at bitcoin. If $1,200 was invested into bitcoin back in April 2020, in current August prices, that investment would be worth about $9,000. The price of BTC has risen over 600% since then.

Related Reading | Puell Multiple: The Bitcoin Metric That Says BTC Miners Aren’t Ready To Sell

Next would be Ethereum. Putting a $1,200 stimulus check in Ethereum back in 2020, at this point, the investor would have over $22,500. This is an even higher price than BTC given that the price of ETH has outperformed the price of BTC for the past year.

Other altcoins besides Ethereum have also done very well in the past year. These include DOGE, ADA, SOL, and HEX. $1,200 put in DOGE would be worth over $200,000 now. A $1,200 investment ADA would be worth over $90,000. SOL would presently be worth over $120,000. And last but not least, a $1,200 investment in HEX would be worth over $300,000 in 2021.

Crypto market has grown over 1,000% since April 2020 | Source: Crypto Total Market Cap from TradingView.com

These numbers go to show the absolutely massive returns that the cryptocurrency market can bring. Although this is largely dependent on the investor’s ability to hold through every peak and trough until the assets get to this point.

Featured image from Freekpik, chart from TradingView.com