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Bitcoin Sells 63% Above Global Market Price in Nigeria

Bitcoin price skyrocketed to N17.8 million or $38,630 a coin on Binance, the world’s largest cryptocurrency exchange platform mostly used by retail traders in Africa’s largest economy.

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The world’s most dominant cryptocurrency, Bitcoin is currently being sold at a 63% premium in Nigeria as foreign exchange scarcity amid the new cap on banks’ withdrawals increased demand for the unregulated virtual currency.

Bitcoin price skyrocketed to N17.8 million or $38,630 a coin on Binance, the world’s largest cryptocurrency exchange platform mostly used by retail traders in Africa’s largest economy.

In the global market, Bitcoin price stood at $23,656 per coin at about 9:37 am Nigerian time on Monday, January 30, 2023. Indicating that the digital currency is being sold at $14,974 or a 63% premium over the current price of the commodity, Investors King research has shown.

Chronic foreign exchange scarcity due to a series of weak fundamental factors has plunged the Nigerian Naira against its global counterparts since Russia invaded Ukraine in February 2022.

The Nigerian Naira is presently trading at N460 to a United States Dollar on the interbank forex section while at the parallel or black market, the local currency traded at N750 to a US$1 in the early hours of Monday.

Cryptocurrency traders and businesses in Nigeria mainly traded using the black market rate because of the inaccessibility of N460/$1. Therefore, it is the rate quoted and used on Binance Peer2Peer (p2p) platform and other foreign exchange segments where the dollar is readily available.

This wide foreign exchange rate coupled with the new Naira policy that restricted withdrawals to N500,000 per week for individuals and N5 million for corporate entities bolstered demand for digital assets.

Bitcoin price plunged from $68,990 to $15,480 in 2022 after Luna declined from $119 a coin or over $40 billion market capitalisation to zero.

Shortly after, other cryptocurrency assets like Solana, Ethereum, BNB, etc lost substantial value and kick-started cryptocurrency’s largest bearish trend since 2009.

Solana dropped from around $200 a coin to $12, currently trading at $25. Ethereum dipped from almost $5,000 to $800 per coin while BNB halted its decline at $196 before pulling back to $300 at the time of writing, still below the $600 attain in 2022.

Bitcoin is the most capitalised cryptocurrency at $448.92 billion. Year-to-date, the digital asset has returned 40.17%.

 

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Bitcoin

Bitcoin Tests $66,000 Amidst Volatility Forecast

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As Bitcoin surged to a $66,000 price level during Asian trading hours, cryptocurrency markets brace for heightened volatility, with market observers predicting turbulent times ahead.

The cryptocurrency’s price volatility has been a subject of much discussion, particularly in light of recent events.

Semir Gabeljic, Director of Capital Formation at Pythagoras Investments, who highlighted the ongoing volatility cited a recent drawdown of 10% fueled by spot Bitcoin ETF outflows from GBTC, totaling approximately $300 million on March 20.

Gabeljic emphasized that such drawdowns typically occur in the lead-up to Bitcoin halving events, signaling a potential for increased volatility in the near future.

Meanwhile, the CoinDesk 20 (CD20), which tracks the world’s most liquid digital assets, experienced a minor dip of 0.5%.

However, amidst this overall market movement, CoinDesk’s Digitization Index (DTZ) saw a notable uptick, led by protocols like Ethereum Name Service (ENS), which rose by 2.7% during Asia trading hours.

Singapore-based trading firm QCP Capital noted the current consolidation in the market, with Bitcoin and Ethereum trading within a relatively tight range.

They suggested that the market might see a pause in activity over the weekend following the volatility leading up to the previous weekend’s Federal Open Market Committee (FOMC) meeting.

Also, QCP Capital highlighted the continued outflows from the Grayscale Bitcoin Trust (GBTC), expecting a fourth consecutive day of BTC spot exchange-traded fund net outflows.

The firm also pointed out a widening discount on Grayscale’s Ethereum Trust (ETHE) and the market’s diminishing expectations for the approval of a spot Ethereum ETF.

With Bitcoin’s test of $66,000 and ongoing market dynamics, cryptocurrency investors and analysts remain vigilant, anticipating further fluctuations in the days to come.

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Binance CEO Forecasts Bitcoin Surge Beyond $80,000 on Institutional Inflows

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Binance Chief Executive Officer Richard Teng has set his sights on Bitcoin surging beyond the $80,000 price level on the back of rising institutional investments into crypto-backed exchange-traded funds (ETFs).

Speaking at an event in Bangkok on Sunday, Teng highlighted the significant impact of the launch of Bitcoin ETFs in the United States earlier this year.

He noted that this development has attracted a considerable influx of institutional investors, propelling fresh funds into the cryptocurrency market.

Teng expressed confidence in Bitcoin’s upward trajectory, emphasizing that “we’re just getting started.”

Initially estimating Bitcoin to reach around $80,000 by the end of the year, Teng now believes that the cryptocurrency’s price will surpass this milestone.

He attributed this bullish outlook to a combination of decreasing supply and sustained demand within the market.

However, he cautioned that the rally wouldn’t be without its fluctuations, suggesting that the market’s ups and downs would ultimately benefit its overall health.

Bitcoin has already surged by an impressive 56% this year, reaching a record high of nearly $73,798 last week.

Despite concerns among some investors about a potential bubble, Teng remains optimistic about Bitcoin’s future trajectory.

Teng’s forecast comes in the wake of his appointment as CEO of Binance, succeeding co-founder Changpeng Zhao in November following the company’s $4.3 billion settlement with US authorities.

With relentless inflows into US spot Bitcoin ETFs since their approval in January, Teng expects further institutional adoption in the near term, with more endowments and family offices anticipated to increase their allocations into Bitcoin ETFs.

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Bitcoin Retreats from Record Highs Amid Debate Over Market Speculation

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The cryptocurrency retreated from its recent record highs, igniting a debate over the speculative fervor gripping global markets.

In Asian trading on Friday, Bitcoin plummeted by as much as 5.6%, shedding its gains from the previous day when it reached a new pinnacle of nearly $73,798.

Despite recovering slightly to trade at $67,300, the retreat has triggered concerns about the sustainability of the crypto bull run.

The moderation in Bitcoin’s surge, alongside a similar trend in other top cryptocurrencies like Ether, BNB, and Solana, reflects a broader shift in investor sentiment.

With both Bitcoin’s ascent and the performance of the top 100 tokens hovering around 60% for the year, market participants are reevaluating their risk appetites amidst a backdrop of escalating inflationary pressures.

In a Bloomberg Television interview, Bank of America Corp.’s Chief Investment Strategist Michael Hartnett sounded alarms, likening the market’s euphoria to the characteristics of a bubble, particularly evident in the technology sector’s “Magnificent Seven” stocks and the soaring highs of cryptocurrencies.

The debate over market speculation is gaining traction on Wall Street, with questions looming about the vulnerability of various asset classes to a potential pullback.

Proponents of Bitcoin point to fundamental supports, such as significant net inflows into US exchange-traded funds and an impending reduction in token supply growth.

However, Bitcoin’s stumble coincided with a surge in US yields and the dollar following a report revealing a spike in producer prices, exacerbating concerns about the Federal Reserve’s ongoing efforts to rein in inflation.

Also, data from Coinglass indicates a rise in caution within the derivatives market, with a notable increase in liquidated bullish crypto wagers and a slump in funding rates for Bitcoin perpetual futures, favored by speculators.

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