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US Institutional Bitcoin Demand Has Dried Up, says On-Chain Analyst

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Bitcoin (BTC) nosedived by more than 9% in the last 24-hours to trade at $32,875 during the intraday, according to CoinMarketCap. 

The top cryptocurrency has been trying to regain momentum since it slumped to lows of $30k on May 19. This plunge pushed Bitcoin below the 200-day moving average (MA), a fate not seen since March 2020.

On-chain analyst William Clemente III noted that Bitcoin demand by US institutional investors had slowed down. He explained:

“It seems that US Institutional demand for BTC has slowed. Coins had been moving off Coinbase at a growing rate until late February. Now the trend has reversed.”

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He further pointed out that whale holdings of more than 1,000 BTC had been dropping since February.

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According to a recent weekly report by digital asset firm CoinShares, institutional investors continued to reduce their long positions in BTC. The net outflow reached a record of $141.4 million in the past week.

Is Bitcoin’s bull run over?

According to an analysis by investment manager Timothy Peterson, Bitcoin’s bull run might be over because the leading cryptocurrency has traded below the 200-day MA for 17 consecutive days.

He stated:

Bitcoin price has dropped below 200-SMA for 17 consecutive days and counting. This metric has ‘always’ marked the end of a bull run and the start of a bear market.”

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The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

It, however, remains to be seen whether a shift is playing out in the Bitcoin market. 

Meanwhile, former US President Donald Trump showed his dislike for Bitcoin because he views it as another currency competing against the dollar. Trump has always depicted his disapproval of cryptocurrencies due to its high volatility. 

Image source: Shutterstock Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://Blockchain.News/analysis/us-institutional-bitcoin-demand-has-dried-upsays-on-chain-analyst

Blockchain

MicroStrategy To Sell $1B in Stock for More Bitcoin

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MicroStrategy Inc. (MSTR), the enterprise software maker, filed a shelf registration to the U.S. Securities and Exchange Commission (SEC) on Monday, intending to sell as much as $1 billion in common shares for general purpose, including purchasing more Bitcoin, Bloomberg reported Monday.

MSTR announced earlier Monday that the enterprise had completed the sale of $500 million in senior secured notes due 2028. The net proceeds from the sale are estimated at approximately $488 million. The deals will aim to purchase extra Bitcoins for assets accumulation. MicroStrategy’s latest move of the amount is more than expected, as the company’s announcement last week was planning to sell $400 million to buy Bitcoin. Bloomberg reported early that it was the first-ever junk bond sale used for financing purchases of the volatile cryptocurrency.

MSTR disclosed in May that the company is holding around 92,079 BTC by a newly formed subsidiary, MicroStrategy LLC.

Bitcoin Returns $40,000 Level Above

Meanwhile, Bitcoin’s price is boosted by serval feel-good factors and returned to $40,000 level above on Monday after billionaire hedge manager Paul Tudor Jones expressed his confidence in Bitcoin as a hedging investment tool for his portfolio.  

Tesla CEO Elon Musk revealed his conditional acceptance for Bitcoin payment on Twitter recently. Musk said the electric vehicle manufacturer might resume allowing Bitcoin transaction in the future, as long as Bitcoin mining is environmentally friendly enough that at least 50% of energy usage generated by green energy.

Image source: Shutterstock Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://Blockchain.News/news/microstrategy-to-sell-1b-in-stock-bitcoin

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Nigerian Central Bank Planning CBDC Launch by End of 2021

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An official with the Central Bank of Nigeria (CBN) told local news sources that the bank is hoping to launch a central bank digital currency (CBDC) “before the end of the year.”

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The announcement was made by the director of IT for CBN, Rakiya Mohammed, during an online news briefing at a Bankers Committee meeting. She stated that the bank has been looking into the matter for the better part of two years and feels confident they have a viable product to launch before 2022. “Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace,” Mohammed stated.

CBN’s digital currency will not replace local naira cash notes but instead, act as a complementary currency option. The digital currency is also expected to make foreign remittances easier for Nigeria. Digital currencies offer more flexibility for remittances due to the lack of forex charges and third-party entities. This is also one of the reasons El Salvador recently adopted bitcoin as legal tender. 

Sponsored
Sponsored

At this stage, experts are creating architecture and addressing privacy concerns. Much like China has done with the digital yuan, Nigeria has plans to launch a pilot program in select areas before a nationwide release. Mohammed added that the CBN estimates that 80% of central banks globally are looking into digital currencies and Nigeria does not want to be left in the dust. 

Whether the 80% estimate is accurate, what is true is that several African countries are in similar stages of planning for CBDCs. 

Yesterday, Tanzania’s President Samia Suluhu Hassan requested that the Central Bank of Tanzania begin looking into CBDCs. The speech was given at the inauguration of the Central Bank of Swahili building in Mwanza. 

Ghana has also stated it was one of the first apex banks on the continent to introduce its CBDC. The Bank of Ghana’s government stated that the digital cedi was on its way toward implementation. 

The South African Reserve Bank (SARB) also has plans on looking into the possibility of releasing its own digital currency by the end of next year. 

Nigeria’s love/hate relationship with cryptocurrency

The CBDC announcement is a curious move for a nation that recently has been clamping down on cryptocurrencies over the last few months. Even going so far as to ban commercial banks and other financial institutions from doing business with cryptocurrency exchanges and instructing that accounts holding crypto be closed. 

The official reason for this ban was that Nigerian officials believed that crypto exchanges and start-ups were adding to foreign currency shortages. Those shortages caused the depreciation of the naira on the black market. The ban was later amended to allow peer-to-peer crypto trading. 

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://beincrypto.com/nigerian-central-bank-cbdc-launch-end-2021/

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Nigerian Central Bank Planning CBDC Launch by End of 2021

Published

on

An official with the Central Bank of Nigeria (CBN) told local news sources that the bank is hoping to launch a central bank digital currency (CBDC) “before the end of the year.”

Sponsored
Sponsored

The announcement was made by the director of IT for CBN, Rakiya Mohammed, during an online news briefing at a Bankers Committee meeting. She stated that the bank has been looking into the matter for the better part of two years and feels confident they have a viable product to launch before 2022. “Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace,” Mohammed stated.

CBN’s digital currency will not replace local naira cash notes but instead, act as a complementary currency option. The digital currency is also expected to make foreign remittances easier for Nigeria. Digital currencies offer more flexibility for remittances due to the lack of forex charges and third-party entities. This is also one of the reasons El Salvador recently adopted bitcoin as legal tender. 

Sponsored
Sponsored

At this stage, experts are creating architecture and addressing privacy concerns. Much like China has done with the digital yuan, Nigeria has plans to launch a pilot program in select areas before a nationwide release. Mohammed added that the CBN estimates that 80% of central banks globally are looking into digital currencies and Nigeria does not want to be left in the dust. 

Whether the 80% estimate is accurate, what is true is that several African countries are in similar stages of planning for CBDCs. 

Yesterday, Tanzania’s President Samia Suluhu Hassan requested that the Central Bank of Tanzania begin looking into CBDCs. The speech was given at the inauguration of the Central Bank of Swahili building in Mwanza. 

Ghana has also stated it was one of the first apex banks on the continent to introduce its CBDC. The Bank of Ghana’s government stated that the digital cedi was on its way toward implementation. 

The South African Reserve Bank (SARB) also has plans on looking into the possibility of releasing its own digital currency by the end of next year. 

Nigeria’s love/hate relationship with cryptocurrency

The CBDC announcement is a curious move for a nation that recently has been clamping down on cryptocurrencies over the last few months. Even going so far as to ban commercial banks and other financial institutions from doing business with cryptocurrency exchanges and instructing that accounts holding crypto be closed. 

The official reason for this ban was that Nigerian officials believed that crypto exchanges and start-ups were adding to foreign currency shortages. Those shortages caused the depreciation of the naira on the black market. The ban was later amended to allow peer-to-peer crypto trading. 

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Share Article

Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.

Follow Author

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://beincrypto.com/nigerian-central-bank-cbdc-launch-end-2021/

Continue Reading

Blockchain

Nigerian Central Bank Planning CBDC Launch by End of 2021

Published

on

An official with the Central Bank of Nigeria (CBN) told local news sources that the bank is hoping to launch a central bank digital currency (CBDC) “before the end of the year.”

Sponsored
Sponsored

The announcement was made by the director of IT for CBN, Rakiya Mohammed, during an online news briefing at a Bankers Committee meeting. She stated that the bank has been looking into the matter for the better part of two years and feels confident they have a viable product to launch before 2022. “Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace,” Mohammed stated.

CBN’s digital currency will not replace local naira cash notes but instead, act as a complementary currency option. The digital currency is also expected to make foreign remittances easier for Nigeria. Digital currencies offer more flexibility for remittances due to the lack of forex charges and third-party entities. This is also one of the reasons El Salvador recently adopted bitcoin as legal tender. 

Sponsored
Sponsored

At this stage, experts are creating architecture and addressing privacy concerns. Much like China has done with the digital yuan, Nigeria has plans to launch a pilot program in select areas before a nationwide release. Mohammed added that the CBN estimates that 80% of central banks globally are looking into digital currencies and Nigeria does not want to be left in the dust. 

Whether the 80% estimate is accurate, what is true is that several African countries are in similar stages of planning for CBDCs. 

Yesterday, Tanzania’s President Samia Suluhu Hassan requested that the Central Bank of Tanzania begin looking into CBDCs. The speech was given at the inauguration of the Central Bank of Swahili building in Mwanza. 

Ghana has also stated it was one of the first apex banks on the continent to introduce its CBDC. The Bank of Ghana’s government stated that the digital cedi was on its way toward implementation. 

The South African Reserve Bank (SARB) also has plans on looking into the possibility of releasing its own digital currency by the end of next year. 

Nigeria’s love/hate relationship with cryptocurrency

The CBDC announcement is a curious move for a nation that recently has been clamping down on cryptocurrencies over the last few months. Even going so far as to ban commercial banks and other financial institutions from doing business with cryptocurrency exchanges and instructing that accounts holding crypto be closed. 

The official reason for this ban was that Nigerian officials believed that crypto exchanges and start-ups were adding to foreign currency shortages. Those shortages caused the depreciation of the naira on the black market. The ban was later amended to allow peer-to-peer crypto trading. 

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Share Article

Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.

Follow Author

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://beincrypto.com/nigerian-central-bank-cbdc-launch-end-2021/

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