Your Cryptocurrency Newsletter for January 05, 2021

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [Four Factors That are Pushing Investors into Buying Bitcoins]( Global institutional interest and more acceptance at home is making the case for the cryptocurrency.The fact that the supply of bitcoins is restricted gives comfort as investors expect a surge when demand rises. Bitcoin proved itself to be the star of 2020, multiplying its value four times over since the start of the year. After a brief dip in March 2020, the cryptocurrency has surged forward, breaking its previous all-time high of around $20,000 per bitcoin in 2017 to cross the $34,000 mark in the first week of January 2021. Investors who entered at the very peak of the last rally find themselves with a 50% return in just three years.However, investors whom Mint spoke to build a case for bitcoin apart from just momentum. In this piece, we look at the reasons for their interest in the cryptocurrency. A substitute for gold Gold rose around 27% in 2020. It has a been a traditional favourite among Indian households, but its return has been far outstripped by the four-time rise of bitcoin in 2020.As a result, some investors are considering to shift a small part of their portfolios from gold to bitcoins. Amit Kumar Gupta, a New Delhi-based portfolio manager at Adroit PMS, a Sebi-registered portfolio management firm, asked clients to shift from gold to bitcoin in August 2020. Since then, the cryptocurrency has roughly quadrupled in value in rupee terms, handsomely beating the yellow metal (which has stayed flat) as well as the equity markets (Nifty is up around 25% since August). Gupta hasn’t withdrawn his clients’ money from bitcoin since then, but is keeping a close watch on the cryptocurrency. “We started buying bitcoin for our HNI (high networth individual) clients in August. Our model portfolio for moderate risk clients is 70-30-10 in equities, debt and gold. We asked clients to move the gold allocation to bitcoin. There was more comfort among family offices and HNI clients outside India on this shift. Within India, we went as per the client’s comfort level. We think that institutional adoption will move bitcoin higher in the coming years.” Global interest In October 2020, PayPal, a payments provider in the US, allowed investors to hold cryptocurrency in their wallets. Other US companies like Microstrategy also parked a portion of their treasuries in it in 2020. “The Grayscale Bitcoin trust for example has gone from $2 billion AUM (assets under management) to $20 billion in a year,” said Gupta. Even sceptics are changing their views partly. “I was very skeptical of bitcoin in 2017. However, this year, the institutional acceptance of bitcoin has changed my mind. I invested around 5% of my savings in it in August, in a staggered manner. I will pull out my initial capital but let my profits remain. I also see it as a substitute for gold,” said Thakkar, 25, a Mumbai-based asset management professional, who declined to provide his first name. Scarcity of supply The supply of bitcoins is restricted to 21 million. Around 18 million bitcoins have already been mined and are in circulation. Unlike fiat currencies like the dollar or the rupee, this supply cannot be increased by any government or central bank, a fact that gives great comfort to crypto investors. Such investors are uncomfortable with the surge in money printing by central banks during the covid-19 pandemic, which draws them to bitcoin. The balance sheet of the US Federal Reserve has jumped from $4 trillion to around $7 trillion in 2020, a 75% growth in a single year, expanding the supply of dollars at a rapid pace. Acceptance Gokul, 28, a Chennai-based financial services professional, who did not want to reveal his last name, entered bitcoins in July after a friend living in Turkey introduced him to the cryptocurrency. “Initially, I didn’t know about the Supreme Court judgment. I entered in July when the bitcoin price was around ₹7 lakh and my investment has gone up around four times.” In March 2020, India’s Supreme Court quashed a Reserve Bank of India (RBI) ban on bitcoin-related payments, setting the stage for the revival of cryptocurrency investment in India.Bitcoin investors also tend to have a background in technology. Thakkar said that his degree in engineering allows him to understand the concept of blockchain and the innovations happening within decentralised finance. “This is something my dad who is also in financial services doesn’t get,” said Thakkar. It is difficult to estimate the sheer size of the bitcoin investor base in India. Nischal Shetty, chief executive officer of WazirX, India’s largest cryptocurrency exchange, estimated a user base of 5 million in September 2019, much of it from the previous 2017 boom. This figure cannot be verified, but there is strong evidence of a growing investor base since the March verdict. Google search data shows a sharp spike in searches for bitcoin in December, with searches at a 12-month high (but well below their 2017 peak). Experts, however, remain skeptical. “I would not recommend bitcoin for three reasons. First, the Indian government has not recognized or regulated it. Second, there is no underlying asset generating cash flows unlike say a stock or bond. Third, the investor base in it is still very small and it’s very volatile,” said Kalpesh Ashar, founder, Full Circle Financial Planners and Advisors, a Sebi-registered investment adviser. [Read Full News](  The post [Four Factors That are Pushing Investors into Buying Bitcoins]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Cryptocurrency Gradually Improves Sportsbook Platforms]( Cryptocurrency and blockchain technology may seem relatively new, but online casinos saw the tech advancements’ apparent benefits to offer the digital gambling industry. Bitcoin casinos that exclusively accepted digital currencies slowly expanded their cryptocurrency selections and bonus rewards to players. Sportsbook operators also didn’t delay seizing a piece of the crypto market before institutions realized the decentralized platform’s potential. Sports betting made cryptocurrency usage champion amongst other financial methods long before other online gambling venues. Sportsbook operators used blockchain’s anonymity to reassure players placing bets who lived in areas where gambling remained illegal. It isn’t too difficult to realize that sports betting and cryptocurrency became the perfect union for online sportsbook operations. Sportsbook platforms could introduce newly secure live betting resources to players without jumping through restrictive geographic and legal hoops. Online casinos and other gambling giants successfully utilized blockchain and digital currency to take online gaming to the next level. Why Sportsbooks Prefer Cryptocurrency Deposits Sportsbooks prefer cryptocurrency deposits because they lack fees enforced by third-party regulators. One of the most frustrating challenges plaguing online sports betting stands as outside interference. Offshore books outside of legal jurisdiction snagged virtual sportsbook players’ attention right away. Popular e-wallets and standard credit card payment methods could cease processing financial transactions with sportsbook operators located outside the governable zone. The obstacles and privacy losses turned several players away from placing sports bets during an economic climate that crippled the industry. Crypto deposits aren’t controlled or regulated by centralized banking institutions or third-party enforcers. Blockchain ledgers offer full protection for sportsbook players and operators with reduced processing times and fees. The lack of third party interference allowed sportsbook sites to pass along extra savings and incentives to players, such as more favorable odds. Sportsbooks have a reputation for not accepting specific e-wallet methods because of regulatory issues and inconsistencies. Cryptocurrencies Make Sportsbook Betting More Efficient Cryptocurrencies have created efficient methods for sportsbook betting that didn’t previously exist. Besides faster processing times and zero transaction fees, cryptocurrency and sports betting eliminated transaction limits, withdrawal minimums, and minimum deposit amounts. By improving transaction efficiency, blockchain ledgers and digital currencies made sports betting more attractive than other alternatives. The 2020 pandemic rocked the sports betting industry, but the sudden popularity and acceptance of decentralized online gaming changed digital sports betting. Online sports betting platforms catering specifically to digital currency players successfully broke down barriers to open up new gambling passages. While skeptics believe cryptocurrency and blockchain technology are minor trends that will dissipate in time, gambling and sportsbook experts have relished in the newly evened playing field. Players should know that some sports betting platforms exclusively accept cryptocurrency for deposits and vice versa. It is wise to opt for a comprehensive crypto sportsbook that best suits each player’s financial interests and gains. Gambling Commissions Don’t Regulate Cryptocurrencies Gambling authorities and commissions aren’t currently regulating digital currencies, but gamers and operators can expect future attempts to gain control. Most venues fear interference from gambling commissions, but others believe blockchain ledgers’ stealth will prevent authorities from gaining the upper hand. Gambling platforms have prepared to adjust to any new changes. Sportsbook platforms feel confident about expanding in the digital currency market because it guarantees privacy and stealth. [Read Full News]( The post [Cryptocurrency Gradually Improves Sportsbook Platforms]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [5 Factors Show Bulls Control Ethereum Price Even After a 26% Correction]( Multiple data points show investors are strongly bullish on Ethereum price even after today’s sharp rejection at $1,160.Ether (ETH) price rallied to $1,160, which was followed by a 24% correction within the following four hours.What is clear is that investors are anxiously awaiting the CME’s ETH futures launch, which is scheduled for Feb. 8. Another factor driving the current rally is that Ether miners’ balances reached a two-year low, a scenario that some analysts view as bullish.The phenomenal growth of total value locked in decentralized finance projects has also played a part, especially considering that the metric reached $17.5 billion over the past week. The flow of positive news and solid fundamentals seem to be in play for Ether, but it is still important to try and understand whether the recent crash reflects a potential local top or if it was simply a retest of $900 as a new support level.Aside from price action and technical analysis, investors should also gauge the use metrics on the Ethereum network. An excellent place to start is analyzing transactions and transfer value. The chart above shows the indicator spiking above $4 billion in daily transactions, a 73% increase when compared with the previous month’s $2.6 billion. This noticeable increase in transaction and transfer value signals strength and also suggests that Ether price is sustainable at the current levels. Exchange withdrawals are paused for now Increasing withdrawals from exchanges can be caused by multiple reasons, including staking, yield farming and buyers sending coins to cold storage. Usually, a steady flow of net deposits indicates a willingness to sell in the short term. exchanges faced net withdrawals of 600,000 ETH. This move signals a potential accumulation from whales, either transferring to cold wallets or putting those Ether into the DeFi ecosystem.It is worth noting that over the past two weeks, there has been some stabilization. Selling activity was expected as Ether price peaked, and this led to larger deposits. Therefore, the indicator stands slightly positive. The futures premium peaked, but nothing abnormal has occurred Professional traders tend to dominate longer-term futures contracts with set expiry dates. By measuring the expense gap between futures and the regular spot market, a trader can gauge the level of bullishness in the market.The three-month futures should usually trade with a 1.5% or higher premium versus regular spot exchanges. Whenever this indicator fades or turns negative, this is an alarming red flag. This situation is known as “backwardation” and indicates that the market is turning bearish. The above chart shows that the indicator peaked at 6.4% on Jan. 4 as Ether touched its highest price since May 2018. The current 4.7% rate above equals a 20% annualized premium and is significantly above the levels seen in previous months. This data shows that despite the recent $280 dip, professional traders are still confident in Ether’s price potential. Spot volume spiked throughout the rally In addition to monitoring futures contracts, profitable traders also track volume in the spot market. Breaking resistance levels on low volumes is somewhat intriguing because, typically, low volumes indicate a lack of confidence. Therefore, significant price changes should be accompanied by robust trading volume. The previous two days saw an impressive $8 billion average volume, and this is considerably higher than the trend of recent weeks. New price highs accompanied by volume spikes are an excellent indicator of sustainable price levels.This event holds especially true considering that the recent 42% move occurred since Dec. 30, when traditional markets closed. Had there been low volume days recently, investors would question what was really behind the surge to $1,160. Options put-call ratio By measuring whether more activity is going through call (buy) options or put (sell) options, one can gauge the overall market sentiment. Generally speaking, call options are used for bullish strategies whereas put options for bearish ones.A 0.70 put-to-call ratio indicates that put options open interest lag the more bullish calls by 30% and is therefore bullish. investors have been trading a higher volume on put options. Therefore, the indicator increased to 0.81 from 0.65. This signals a trend reversal from a more bullish move that lasted two weeks. Despite the protection-seeking movement, put options still lag the more bullish call options by 19%.This data is very encouraging, considering that Ether has rallied 60% since Dec. 25, yet there is no sign that investors have flipped to more neutral-to-bearish (put option) strategies.Despite some signs of weakness after Ether tested its $1,160 high on Jan. 4, each of the five indicators discussed above has held a bullish level. [Read Full News]( The post [5 Factors Show Bulls Control Ethereum Price Even After a 26% Correction]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ ------------------ Connect with TheFeedBinary on Facebook and Twitter [fb](  [tw]( ------------------ You received this email because you operate or create content for a website/service and based on your website it seemed like this could be important information to you and your users. FeedBinary daily newsletter is managed by [Postbox Consultancy Services Pvt. Ltd.]( C-4/5, IBD Emporia, Kolar Road, Bhopal, Madhya Pradesh, INDIA, 462042 Want to change how you receive these emails? [Update your preferences]( or [Unsubscribe](