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Bitcoin Gains 1.67 Percent to $11,050 Per Coin Amid Liquidity Issue

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Bitcoin Rises to $11,050 Per Coin on Friday

Bitcoin rose above $11,000 per coin on Saturday after weeks of trading in a range, between $10,867 and $10,960 despite liquidity drying up across exchanges.

The cryptocurrency most dominant coin gained 1.67 percent to settle at $11,050 per coin as at 8.04 pm Nigerian time on Saturday.

“Markets are looking weak on drying-up liquidity on exchanges while BTC hardly managed to reach back above the $11,000 level and couldn’t sustain it,” said Jean Baptiste Pavageau, partner at trading firm ExoAlpha.

Indeed, major USD/BTC exchange volumes are looking feeble, with Friday tallying a $211 million total so far while daily averages the past month have been $364 million.

Rupert Douglas, head of institutional sales at crypto brokerage Koine, said he is concerned that stock markets are about to start correction that could potentially hurt crypto as investors look to unload risky assets.

“I think equities are headed lower and if that happens digital assets will get sucked down, too,” Douglas told CoinDesk. “The tech shares are too frothy,” he added

Another factor crypto investors are tracking: Bitcoin dominance, a measure of its market capitalization as a percentage of total cryptocurrencies. September has seen bitcoin hit 2020 dominance lows, hovering around 60% Friday.

So far, bitcoin dominance has largely been sliding downwards since the beginning of 2020,” said Andrew Tu, an executive at crypto quant trading firm Efficient Frontier. “It will be interesting to see if we see a short-term reversion of the bitcoin dominance back upwards.

Pavageau of ExoAlpha explained that Decentralized Finance (DeFi) is captivating the crypto market, and that is causing decline in bitcoin.

The market is focused on DeFi. It seems that locking value is also draining liquidity from exchanges as traders are noticing higher slippage when executing in the market,” Pavageau said. “A question to ask might be: Is the total value locked a threat to market liquidity for active traders?

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Cryptocurrency

Is Bitcoin Set to Have a 2017-style Mini Boom This Year?

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Bitcoin to Surge Like in 2017 this Year

Bitcoin’s price is set to “surge before the end of 2020” with investors keen not to “sleepwalk” through a 2017-style mini-boom, says the CEO of one of the world’s largest independent financial advisory and fintech organizations.

The prediction from Nigel Green, the deVere Group CEO and founder, which has $12bn under advisement, comes as Bitcoin – already one of the best-performing assets this year – appears to be on the brink of a bullish breakout.

In recent days, Square, which is owned by the billionaire founders of Twitter, has allocated 1% of its cash reserves to the cryptocurrency, whilst a former Goldman Sachs hedge fund chief says the price of Bitcoin will jump to $1m in five years.

Mr Green comments: “There’s been something of an avalanche of interest in Bitcoin in recent weeks from household-name investors.

“Investor activity is picking up considerably with various on-chain metrics and ongoing – and heightening – global political, economic and social turbulence suggesting that there will be a price surge before the end of the year.

“Like gold, Bitcoin can be expected to retain its value or even grow in value when other assets fall, therefore enabling investors to reduce their exposure to losses.

“Investors will increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin, to help shield them from the potential issues in traditional markets”.

He continues: “There’s a growing sense that we’re set to experience a mini-boom similar to that at the end of 2017.

“Prices are yet to catch-up with investor interest – but this is only a matter of time as investors will not want to sleepwalk towards perhaps year-high prices in the run-up to the end of 2020.”

The late 2017 bull run saw the Bitcoin price reach its all-time high of $20,089.
The deVere CEO concludes: “There’s been a notable ramping-up of interest in Bitcoin amongst investors since the end of summer. Indeed, it has been the best performing week for one of the year’s best-performing assets since July.

“I can see no reason why this upward trajectory will not continue between now and the end of the year.”

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Global Spending on Blockchain Up by 50%, US Leads with $1.6 Billion

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Blockchain Spending Rose by 50 Percent Globally

According to the research data analyzed and published by Stock Apps, global blockchain spending is set to hit $4.1 billion in 2020. From $2.7 billion in 2019, it is estimated to grow by nearly 50%. Over the five-year period between 2020 and 2024, it is expected to maintain a 46.4% CAGR.

The International Data Corporation (IDC) also states that the total spending on blockchain solutions will be nearly $18 billion by 2024.

Finance Sector Accounts for Nearly 30% of All Blockchain Spending

Another report from Markets and Markets indicates that the global blockchain market is estimated to be worth $3.0 billion in 2020. It is projected to grow at a 67.3% CAGR between 2020 and 2025, to reach a $39.7 billion valuation by the end of the period.

The total spending in the blockchain space amounted to $1.5 billion in 2018. At the time, the financial sector was most dominant, accounting for 60% of all spending. Though it still leads in 2020, its market share is now about half of that, at 29.7%.

Between 2020 and 2024, the IDC predicts that the blockchain industry will maintain a healthy pace of investment at 45.3% CAGR. Process and discrete manufacturing will together account for 22.3% of all blockchain spending in 2020. While process manufacturing will grow at a 50.3% CAGR, discrete manufacturing will grow at 46.5%.

With $1.6 billion, the US will top the list globally in terms of spending while Western Europe will be second with $1.0 billion. China will take the third spot with $457 million, but it will be the leading country in terms of growth, with a 51.7% CAGR.

China’s blockchain spending was $87 million in 2017. It could rise as high as $1.420 billion by 2022. Prior to the pandemic, it was growing at a 65.7% CAGR against APAC’s 50.3% and the global’s 60.2%.

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Elon Musk Installs Bitcoin ATM at Tesla in Nevada

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Bitcoin ATM Found in Elon Musk’s Tesla Gigafactory in Nevada

Will Reeves, the founder of Fold Inc, a company that builds payments stack for a new economy— one that puts privacy and bitcoin within the reach of every shopper, on Sunday said he saw a Bitcoin ATM at the Tesla Gigafactory in Nevada.

I “just passed by and saw @elonmusk has a bitcoin ATM at the Gigafactory,” Reeves said via his Twitter account.

Reeves accompanied the tweet with a Google maps image revealing the exact location of the ATM.

However, on Monday Elon Musk, Tesla founder and CEO, downplayed the whole bitcoin ATM, saying he did not believe the claim was accurate.

But a bitcoin ATM operator, LibertyX, in a direct message, confirmed that three bitcoin ATM machines were enabled in the factor to allow employees to access their funds and also transact bitcoin.

LibertyX said: “We have enabled 3 traditional ATMs inside so employees can use their debit cards and buy bitcoin.”

The company claimed it has installed over 5,000 crypto ATMs across the U.S. and has bitcoin buying service in 20,000 stores in the United States.

Why is this Important?

The news validates bitcoin’s growing acceptance by the mainstream and also attests to global firms like Tesla gradually considering it as a means of payment.

While bitcoin ATMs does not tell much about crypto adoption, the fact that the company claimed it has installed over 5,000 in the US alone and has bitcoin buying service in 20,000 stores in the world’s largest economy, showed bitcoin is gradually growing on people.

Also, the more people adopt the digital coin, the higher its value.

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