It is generally believed that the fundamental reason for this round of crypto-asset bull market push is global quantitative easing. Still, due to the current tightening of monetary policies in various countries, the short-term bad news continues. As a result, the crypto market has fallen one after another, and Bitcoin is "become embarrassed." Nevertheless, in the past month, the eyes of many billionaires are still focusing on the Bitcoin market, and there is no shortage of Bitcoin bets in the allocation of related assets.
On June 28, Mexico's third-richest man, Ricardo Salinas Pliego, pointed out on Twitter that the Banco Azteca he founded aims to become the country's number one. A bank that accepts Bitcoin. Salinas runs the Salinas Group, a large conglomerate that controls the bank he founded 19 years ago. If he manages to get Banco Azteca to accept Bitcoin, the bank will join a small but growing list of banks that trade in Bitcoin. The bank claims to be one of the largest banks in Mexico, with more than 16 million savings accounts and 19 million credit accounts. Until 2019, the bank was operating in El Salvador, and the bank recently declared Bitcoin as legal tender. On June 28, Gemini co-founder and Bitcoin billionaire Cameron Winklevoss tweeted 46.8 million millionaires in the world. Unfortunately, there are only 21 million Bitcoins-less than half of the people can own 1 Bitcoin. Don't miss the revolution. On June 23, Dallas Mavericks owner and billionaire MarkCuban tweeted that Bitcoin is better than gold. Don't worry about storing it; it is easy to transfer, easy to trade, easy to convert, does not require an intermediary, and can be subdivided. On June 21, Mark Cuban said that he was studying cryptocurrencies in-depth and had completely changed his views. He would not miss this. On June 21, billionaire real estate tycoon Frank McCourt will invest $100 million in a project using blockchain technology to democratize social media data. On June 19, hedge fund billionaire Steve Cohen, owner of Point72 asset management company, stated in an interview that he had "turned completely" to cryptocurrencies. But, Cohen said, you can say whatever you want, but you have to enter the game. Billionaire venture capitalist and Bitcoin investor Tim Draper said in an interview with CNBC's "MakeIt" program that he insists on being optimistic about Bitcoin and believes that Bitcoin will reach $250,000 by the end of 2022 or early 2023, despite the value of this cryptocurrency. Crazy fluctuations. It is reported that Draper first made a bold price forecast in 2018. In addition, he predicted, "give it a year and a half, and retailers will appear on Open node (a Bitcoin payment processor), so everyone will accept Bitcoin." On June 14, billionaire hedge fund manager Paul Tudor Jones stated that Bitcoin is mathematics, and mathematics has existed for thousands of years. Jones said: "I like the idea of investing in things that are reliable, consistent, honest, and 100% certain. Bitcoin is beautiful to me because it is a way for me to invest in certainty. I want 5% gold, 5% BTC, 5% cash, and 5% commodities at this special moment. I don't know what I want to do with the other 80% of assets. I want to wait and see what the Federal Reserve does on Wednesday." On June 11, billionaire fund manager Alan Howard invested $25 million in London's crypto custody company Copper. Copper said the funds would help Copper promote the adoption of encryption technology and distributed ledger technology by traditional financial institutions. Earlier news, crypto custody company Copper completed the B round of 50 million U.S. dollars in financing. American billionaire and investment banker Ken Moelis stated that the recent Bitcoin boom is similar to the gold rush of 1848. When discussing the cryptocurrency market's future, Moelis said that people's interest in Bitcoin is becoming more and more. On June 8, billionaire and hedge fund founder MarcLasry said in a show that he regretted not buying more bitcoins. He also predicted that if more and more people start using Bitcoin, Bitcoin will continue to climb. In an interview with CNBC, Ray Dalio, the founder of Bridgewater Associates, stated that Bitcoin is "an alternative currency." Bitcoin is expected to develop in the next few years, but the digital renminbi may compete. In addition, he expressed more concern about the inflation of financial assets. He also pointed out earlier that the current motivation for holding U.S. dollars is shallow. The U.S. dollar pays no interest, and the yield on U.S. debt is not high. In the end, people will invest in "almost anything else"-stocks, gold, bitcoin, real estate, rather than U.S. dollars.
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In May of this year, the institutional funds flowing into Ethereum surpassed Bitcoin for the first time. This vital signal immediately attracted everyone's attention to this highly potential digital asset. Coupled with the recent slump in the Bitcoin market, many practitioners in the digital currency industry have speculated that Ethereum's performance in 2021 is likely to surpass Bitcoin. As the most popular and valuable cryptocurrency to date, Bitcoin is the first cryptocurrency that uses peer-to-peer technology to provide services for online payments and transactions. In 2021, the price of Bitcoin once soared to a peak of $63,000, but the recent domestic regulatory tightening has led to a decline in the price of Bitcoin. Ethereum is an open-source digital currency. Like most other cryptocurrencies, it also uses blockchain technology to build a decentralized computing network. Each participating user holds a duplicate copy of the public ledger contract—the second most popular and second-largest cryptocurrency by market capitalization.
In recent weeks, the price of Bitcoin has plummeted, and the market value of digital currencies has generally fallen. Still, Ethereum has performed relatively well and has successfully "occupied" nearly 19% of the total market value of digital currencies. Not only that, during the market rebound, when the price of Bitcoin rose by about 42-43%, Ethereum's growth rate reached 280%. In addition, recent data also shows that the volume of decentralized transactions on the Ethereum blockchain has increased by 8500% in the past 12 months. This indicator reflects that the Ethereum user base and the actual economic scale are increasing significantly. Now people can do many things on Ethereum, including running decentralized applications, conducting transactions, etc. Therefore, there are speculations in the digital currency market that Ethereum may continue to maintain a bullish trend and reach a value of 5 digits or higher shortly. So, is the reality that Ethereum has begun to "surpass" Bitcoin? Is it the best time to invest in ETH right now? Next, let us focus on comparing Bitcoin and Ethereum based on the current market conditions. From the collected data, it can be seen that although Ethereum's performance is relatively strong, due to market adjustments and panic, coupled with the recent increase in regulatory pressure, Ethereum's growth pattern in recent months has reversed, especially in recent weeks. , The price of Ethereum fell. At present, the price of Ethereum fluctuates at around US$2,000. Compared with the historical high of US$4,700, the current price still has a large gap. However, the current short-term panic in the market has not affected the pace of development of Ethereum. If you pay attention to some essential webcasts, you will find that almost all of them show a growth trend. If we only look at its growth rate, it may reach the "trillion-dollar market value" level shortly. In the past 12 months, we found that the total value locked in Ethereum smart contracts has increased by more than 9000%. The number of users has also increased tremendously, which seems to imply that Ethereum has grown to a "trillion-dollar" level. Market potential. So what are the factors that drive the number of Ethereum users to grow so fast? First of all, we see that some users "purely" buy and hold ETH, and some users need to send stablecoins (or similar digital currencies) to transfer funds; secondly, some users will use DeFi to make some loans or Loan activities, and income farming (liquid mining) activities; then some users will conduct lottery transactions or purchase insurance policies. In contrast, although Bitcoin has promoted the emergence of some new things, such as the lightning network (lightning network) and the sovereign network (sovereign network), people have also placed high hopes on these new things and new frameworks. Still, the actual situation does not seem to be As good as imagined. Because Bitcoin is not suitable for payment, not many people lock Bitcoin into the Lightning Network. In most cases, the total amount of Bitcoin locked in the Lightning Network has not risen sharply, and the size of the Lightning Network has not grown correspondingly. Compared with the scale of the ecosystem and the total amount of settlement on the chain, Ethereum has shown explosive growth. Incredibly, the current average daily on-chain settlement of Ethereum is 46.37 billion U.S. dollars. In comparison, Bitcoin is about 15 billion U.S. dollars, and most Bitcoin on-chain settlement transactions come from investors and traders. They Send bitcoins to exchanges for sale in exchange for cash or withdraw them to cold wallets after buying bitcoins on exchanges. From the perspective of the above economic activities, it can be said that Ethereum is "surpassing" Bitcoin step by step. Not only that, Bitcoin is just something called "digital gold," and applications based on Bitcoin are rarely seen. But people can do many exciting things on Ethereum, such as borrowing, buying NFTs, etc., which Bitcoin can't do. In addition, Bitcoin mining also has a severe energy consumption problem. In contrast, Ethereum is shifting from a Proof of Work (PoW) to a low-energy Proof of Stake (PoS) consensus algorithm, which eliminates the problem of mining. Series of environmental issues. In addition, there are countless other advantages of Ethereum, such as its ecosystem can provide developers with a massive store of value; it provides infrastructure for most decentralized financial applications; it provides solutions for creating new applications; carbon emissions The rate will be reduced from 4.5% to 0.5%; it is worth mentioning that Ethereum is about to upgrade EIP-1559, introducing a deflation mechanism in ETH, and every transaction will turn ETH into a deflationary asset, which means tokens The value store attribute will become more and more prominent, which in turn will promote further price increases in the next few years. Therefore, if you compare Ethereum and Bitcoin from these perspectives, Bitcoin cannot be compared with Ethereum in energy usage, value storage, or infrastructure. Ethereum is constantly upgrading in the process of transforming towards proof of equity, and Bitcoin is indeed a very conservative digital currency. If Ethereum 2.0 is completed, its network operation energy consumption may only be one-thousandth of Bitcoin. And as Ethereum is about to complete all upgrades shortly, the market performance is bound to show exponential growth. Michael Saylor raised a colossal bet on Bitcoin in MicroStrategy, borrowing $500 million through junk bonds to invest in Bitcoin asset allocation, which was $100 million more than expected. As reported in many news, Michael Saylor's MicroStrategy company issued junk bonds. MicroStrategy said it would borrow approximately US$500 million in the form of secured notes. When the flagship cryptocurrency Bitcoin price is more than 50% lower than its historical high, all the funds raised will be used to buy more Bitcoin. On Tuesday, Saylor's Virginia-based business software company announced that it had sold $500 million in high-yield bonds with an annual interest rate of 6.125% and a maturity date of 2028. The bonds are considered to be the first batch directly related to the purchase of Bitcoin. Bonds. After Bitcoin fell by 50%, MicroStrategy added $500 million in investment The value of this transaction exceeded the $400 million that the company had hoped to raise. According to relevant data, MicroStrategy has received approximately $1.6 billion in orders. Bloomberg quoted people familiar with the matter as saying that many hedge funds have expressed interest in this. MicroStrategy intends to use the net proceeds from selling these bonds to obtain more bitcoins, according to the MicroStrategy report. The business analytics software company added that it would borrow from "qualified institutional buyers" and "people outside the United States." Saylor is one of the most bullish advocates of Bitcoin in the market. MicroStrategy currently has approximately 92,000 bitcoins, which are worth approximately $3.2 billion this Wednesday. MicroStrategy has previously issued bonds to purchase this encrypted asset. The company expects that the latest bond issue will provide $488 million in funding to buy more bitcoins. However, given the extreme volatility of Bitcoin, Saylor's method of raising funds through high-yield bonds to obtain more Bitcoins has certain risks. After Bitcoin fell by 50%, MicroStrategy added $500 million in investment. MicroStrategy announced on Tuesday that because the value of Bitcoin has fallen 42% since the end of March, the company expects a loss of $284.5 million in the second quarter.
On Tuesday, the market price of Bitcoin was approximately $34,300, a drop of more than 45% from the April high of 65,000. After Tesla CEO Elon Musk refused to continue accepting Bitcoin as a payment method and the Asian region tightened its market control, MicroStrategy's stock price fell sharply. At the 2021 Miami Bitcoin Conference held earlier this month, Saylor's discussion on Bitcoin's return on investment made it possible to borrow to invest in Bitcoin. "MicroStrategy realized that if crypto-assets grow by more than 10% per year, you can borrow at 5% or 4% or 3% or 2%, then you should raise as much borrowing as possible and convert it into crypto assets." The MicroStrategy CEO also revealed that MicroStrategy's investment in Bitcoin has significantly improved the company's financial performance. "The reason why we say that Bitcoin is hope is that Bitcoin has repaired everything, including our stocks. This is the truth. It has injected vitality into the company and greatly improved morale. We have just passed ten years. The best first quarter of the year." A $7.5 billion hedge fund stated that the price of gold would soar to new highs next year, but as global debt expands, investors seeking currency alternatives should turn their attention to Bitcoin.
Troy Gayeski, co-chief investment officer (CIO) and senior portfolio manager of SkyBridge Capital, said that even if the Fed takes measures to reduce asset purchases, these two types of assets are still likely to rebound. Investors often compare the two. For example, Lawrence Summers, the former US Treasury Secretary, said that cryptocurrency may still be a feature of the global market, similar to digital gold. "We will continue to invest in cryptocurrencies such as Bitcoin because we think the market will continue to rise," Gayeski said in a telephone interview last week. He also added that although crypto assets are more volatile, "but in the same situation, your profit will be higher than that of gold."It is necessary to invest in Bitcoin and choose a good mining machine. Welcome to consult. Investors are paying close attention to the Fed's comments. Because of rising inflation, policymakers are increasingly inclined to cut large asset purchases to save the US economy from the turmoil caused by the epidemic. Monetary support has pushed the Fed's balance sheet to record levels, and solid fiscal spending has also pushed up government debt. Both of these may constitute the ultimate risk to the value of the US dollar and may increase the attractiveness of other currencies. "All the fiat currency substitutes that have undergone significant corrections in the recent past are now in a better position, able to cope with the final reduction and gradual slowdown in the growth of the money supply, rather than setting new highs one after another" Gayeski said. Both Bitcoin and gold have experienced significant volatility this year, and this trend began with a debate about whether Bitcoin is attracting demand from the gold market. Bitcoin soared to an all-time high of nearly 65,000 USD in April and then fell sharply. The current price is around 36,000 USD. At the same time, the price of gold once fell into a bear market in March but then reversed the trend and erased the losses so far this year. Major Wall Street banks disagree on the relative advantages of these two assets-Citigroup Inc. said that gold is "losing its luster" relative to cryptocurrencies. In contrast, Goldman Sachs Group Inc. said, These two assets can coexist. Tesla (Tesla Inc.) boss Elon Musk (Elon Musk) released several tweets this year, causing Bitcoin price fluctuations. He stated in May that he chose to support cryptocurrencies compared to fiat or paper currencies. According to Gayeski, gold, which hit an all-time high of over US$2,075 per ounce last year, has now bottomed out. He believes that most of the concerns in the market about reducing the size of bond purchases have disappeared. Even if it is announced, the Fed will not start to reduce the size of bond purchases until 2022. "In the future, the possibility that the price of gold will continue to rise is quite high, and it will set a new high next year," Gayeski said. Even if signs of economic recovery continue to appear, the Fed is still buying US$120 billion in Treasury bonds and mortgage-backed securities every month, and its balance sheet has soared to US$8 trillion, accounting for about one-third of GDP. This move may increase US Treasury yields and the dollar's status and weaken the attractiveness of gold, but the current discussion on the gradual reduction of this support is coming to an end. SkyBridge has a small amount of exposure to a gold miner, so it also benefits from rising gold prices. However, its primary risk exposure is the US cash flow generation strategy, supported by tangible assets, bad corporate credit, and convertible bond arbitrage. In addition, SkyBridge's Bitcoin fund has risen 51.2% from its establishment in December last year to June 1st this year. SkyBridge founder Anthony Scaramucci has partnered with First Trust Advisors to set up an exchange-traded fund (ETF), which plans to buy and sell Bitcoin. Gayeski expects that the US Securities and Exchange Commission (SEC) will approve the product in the fourth quarter of 2021 or the first quarter of next year. "The only reason why we exist as professionals are to find interesting ways to generate attractive non-correlated returns, but also to have compelling risk-reward combinations." Gayeski said, "We are in fiat currencies such as Bitcoin. Has a small but significant position in its alternatives, which magnifies the strategic composition of our broader portfolio." Institutional investors continue to withdraw from BTC in favor of ETH. As a result, Ethereum investment products now account for more than a quarter of the scale of institutional cryptocurrency asset management. Institutional investors increase their ETH holdings, and the scale of Ethereum asset management sets a new record.
Institutional demand for Ethereum continues to surge, and Ethereum products now account for more than a quarter of the asset under management (AUM) of cryptocurrency investment products. According to CoinShares' June 1st Digital Asset Fund Flow Weekly Report, institutional funds have flowed substantially $74 million in the past week as investors tried to profit from the recent plunge. In the recent plunge, the value of many cryptocurrency assets lost more than 50%. More than 63% of institutional funds flowed into Ethereum products, totaling US$46.8 million. Ethereum products now account for 27% of the total assets of cryptocurrency investment products, which is the highest share to date. The large inflow of funds also included investments in multiple crypto assets (US$11.1 million), as well as funds for Cardano (US$5.2 million), XRP (US$4.5 million), and Polkadot (US$3.8 million). The outflow of bitcoin products has slowed down, with approximately $4 million in funds exiting the market, which is lower than the outflow of $110.9 million last week. In the past three weeks, $246 million has been withdrawn from Bitcoin investment products. Although the 30-day inflow of Bitcoin is 47.9 million U.S. dollars, which is currently about one-third of Ethereum's 147.7 million U.S. dollars, Bitcoin still dominates with nearly 4.4 billion U.S. dollars in inflows. In comparison, Ethereum is 973 million U.S. dollars... However, the recent momentum of Ethereum has made people once again speculate whether Ethereum is preparing to surpass Bitcoin. Ethereum currently surpasses Bitcoin in terms of transaction volume, transaction volume and fees, and handling fees. According to CoinGecko's data, Ethereum is currently the second-largest cryptocurrency asset by trading volume, with a daily trading volume of 38.8 billion U.S. dollars, second only to Tether's 103 billion U.S. dollars. In the past 24 hours, approximately $32.9 worth of Bitcoin has changed hands. |
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