Breaking and establishing the crypto market: which one will come first?

that the “The Bitcoin Word” conference has arrived as scheduled. On July 22, the “The Bitcoin Word” online conference initiated and organized by the Crypto Innovation Council (CCI) was held. This is another major event in the crypto asset market after the Bitcoin Conference in Miami.

The reason why it has attracted such high attention is that the conference guests have their own traffic, including Tesla CEO Elon Musk, Twitter CEO Jack Dorsey, Ark Investment CEO Cathie Wood, ARK Fund founder Cathie Wood, etc. The stars are shining; secondly, after two months of sideways consolidation of Bitcoin, the currency circle hopes that this meeting can reverse the current weak situation in the market and spawn a wave of rising prices.

It is understood that “The Bitcoin Word” is a project around Bitcoin, which aims to uncover the mystery and stigma in the mainstream Bitcoin narrative, explain why and how institutions accept Bitcoin, and at the same time increase public awareness of Bitcoin. Awareness.

“From the effect point of view, there was no significant increase on July 22.” Analyst Tina said that on the afternoon of July 21, Bitcoin rebounded from the bottom of $29,000, and there was no sustained increase in volume during the “The Bitcoin Word” conference. , But the trend in the next few days was relatively healthy, which let retail investors finally breathe a sigh of relief.

However, this still can’t stop the enthusiasm of the currency circle competing to spread. The pictures of the meeting, the remarks of the big coffee and even the information about the position status flooded the community, so it was so lively. What’s more noteworthy is that in a highly regulated market environment, how Bitcoin is demonized, compliance and supervision issues, and future development issues have become the main tone of the conference, which deserves our careful treatment and in-depth thinking.

The crypto market needs to be broken

On July 20, Bitcoin once again fell below $30,000, with a minimum of around $29,200. Many senior investors in the currency circle believe that due to concerns about the slowdown in economic growth and the spread of the delta variant virus, coupled with the decline in global stock markets, some investors lack confidence in the crypto market after Bitcoin fell below $30,000. On July 21, the Crypto Fear and Greed Index was 10, which once again fell to its lowest value after the sharp drop on May 19.

Keith Lerner, chief market strategist at Truist Advisory Services, said that encrypted assets are based on confidence and liquidity. If confidence is less, it will face a more challenging short-term environment.

According to a report released by Glassnode, Purpose ETF has experienced a relatively strong demand period in May and June, and its net inflows have slowed down. Glassnode stated that the slowdown indicates that institutional demand for Bitcoin is still weak in these regulated products. In addition, it is worth noting that in the past two weeks, GBTC shares have continued to trade at a price significantly lower than the fund’s net asset value, at a discount of 10%-15%. This also shows that the market’s demand for crypto assets led by Bitcoin is in a downturn.

At the same time, due to the frequent release of containment signals of strict supervision and risk prevention in the country, market sentiment has dropped to a freezing point, and many retail investors ran away. Not long ago, regulators once again expressed their concerns about the stablecoin market, and it seems that the regulatory stick is about to fall again.

On July 15, Fed Chairman Jerome Powell stated in the US House of Representatives that stablecoins should be subject to stricter supervision like money market funds or bank deposits.

In addition, US Treasury Secretary Janet Yellen (Janet Yellen) also announced plans to convene the Presidential Financial Markets Working Group (PWG) to discuss inter-agency stablecoin work. Janet Yellen said that the union of regulators will allow us to assess the potential benefits of stablecoins, while mitigating the risks they may pose to users, markets or financial systems. Given the rapid growth of digital assets, institutions’ It is important to cooperate on the regulatory side and make any recommendations for the new agency.

Janet Yellen emphasized at the stablecoin regulatory conference that regulators must act quickly to ensure that the appropriate U.S. regulatory framework is in place.

In this context, the “The Bitcoin Word” conference seemed to be a life-saving straw for the currency circle.

It is reported that the initiator of this meeting is the Crypto Innovation Committee, which was established in April 2021. It is an alliance of crypto-friendly companies. Its members include Coinbase, Square, Fidelity Digital Assets and Paradigm. The organization aims to help institutional investors lobby local legislators to supervise encrypted assets and blockchain. The “The Bitcoin Word” conference on July 22 will focus on the popularization of knowledge related to crypto assets.

Musk supports Bitcoin again

A few days ago, Zach Pandl and Isabella Rosenberg of the Goldman Sachs Economic Research team released a report exploring how to determine the fundamental issues of crypto assets. The report pointed out that equating encrypted assets with gold is a common framework for determining its fundamentals, but in addition, the price of encrypted assets is also related to the value of its underlying distributed network.

The report also stated that in addition to fundamental factors, the rise of cryptocurrencies has many other factors, including sentiment and its appeal as a new way to get rich quickly. This shows that the weight of this meeting is heavy.

Jack Dorsey said at the meeting that I hope Bitcoin will create world peace or help create world peace. This may sound absurd, but if that basic level is fixed, everything on it will be improved.

He said that the main reason he likes crypto assets is that its community is “deeply principled.” The crypto asset with the largest market value has a “weird” community, but that’s why he likes it. Jack Dorsey added that the costs and disturbances brought about by our monetary system today are real, and they will distract people from larger issues. He also believes that Bitcoin may become the native currency of the Internet.

“Bitcoin is the solution to inflation.” Cathie Wood said at the meeting. I really believe that Bitcoin will definitely be more environmentally friendly than gold mining or the traditional financial services industry. In many ways, it is already.

Compared with the above-mentioned big coffees, Elon Musk’s every move affects the heart of the crypto market. Fortunately, this time he has supported Bitcoin again.

“Tesla, SpaceX and I will not sell any bitcoin.” Elon Musk said at the meeting that Tesla is likely to continue to accept bitcoin payments. He said that it seems that Bitcoin is turning more toward renewable energy, and there is a trend toward more than 50% renewable energy. In this case, Tesla will resume accepting Bitcoin.

In this regard, “The Wolf of Wall Street” Jordan Belfort said that Elon Musk is too rich, and he does not have to make a few more dollars to increase shipments. Belfort claimed that some members of the cryptocurrency community, especially Dogecoin influencers, used Musk’s endorsement to hype around the exaggerated propaganda created by his tweets.

In an interview, Google product manager Neel Mehta said that Elon Musk’s entry into the crypto market was “for profit.” He said that Elon Musk is a billionaire and he likes to be rich. He is bullish on Bitcoin and Dogecoin, and he is trying to profit from them. Tesla lost money on cars last year, and they made more money from Bitcoin than all of them.

“For Musk, you better believe that he is for profit.” Neel Mehta said, I think this should teach everyone a lesson, that is when you see someone really buy and hype something, and make it in the future When making such predictions, think about why they say this, do they want to make quick money from it? For Musk, I think this is the case.

Institutions and big players are quietly buying

After a sharp dive in May, the crypto market has been in a consolidation range gradually shrinking in the past two months, the long-short game has become intensified, and investors are waiting for the moment when the range is broken.

Interestingly, many analysts believe that the crypto market has already shown some positive signs of growth.

According to news on July 20, Mary Callahan Erdoes, CEO of JPMorgan Chase, stated in an interview that most customers regard Bitcoin as an asset class.

For this reason, Mary Callahan Erdogan, CEO of Wealth Management at JPMorgan Chase, talked about Bitcoin in an interview. Many of our customers think Bitcoin is an asset class. They want to invest in Bitcoin, and we Their job is to help them put their money where they want to invest.

According to sources, JP Morgan Chase allows all its wealth management clients to access crypto asset funds. JPMorgan Chase told advisers in a memo a few days ago that since July 19, they can now accept purchase and sale orders for 5 types of crypto asset products. According to a person familiar with the matter, this measure applies to all JPMorgan Chase clients seeking investment advice, including proprietary clients of the bank using its commission-free Chase trading application, and mass wealthy clients whose assets are managed by financial advisors under JPMorgan Chase Advisors , And the ultra-wealthy customers served by the private bank. According to sources, JPMorgan Chase’s approved funds include Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust and Ethereum Classic Trust, and Osprey funds’ Bitcoin Trust.

Cryptocurrency analyst Joseph Young tweeted that because the price of Bitcoin is still at the level of six months ago, the market does not look optimistic in the foreseeable future, but experienced investors are making long-term investments.

According to QKL123 data, as of July 25, Bitcoin institutions of global fund companies, listed companies, non-listed companies, and national/regional governments held 1,465,463 Bitcoins, accounting for 7.81% of Bitcoin circulation, and holdings with a market value of approximately 50.2 billion US dollars.

Breaking and establishing the crypto market: which one will come first?

Bitcoin data on global institutional holdings. Data source: QKL123

According to BitInfoCharts’s list of the largest bitcoin wallets, all addresses ranked 89th to 106th except for the 90th place, and a total of 28377 bitcoins were accumulated simultaneously on July 17 and July 18. The consistency of the purchase, coupled with the fact that each wallet is dormant for the same time, indicates that the whale address is a single entity. These wallets hold a total of 164,337 bitcoins, valued at nearly 5 billion U.S. dollars.

At the same time, a recent Goldman Sachs report showed that 15% of family wealth management companies have invested in crypto assets, and another 45% of family wealth management companies are willing to invest in cryptocurrencies.

In addition, a poll conducted by American analysis company Gallup found that Bitcoin has become more and more popular among American investors since 2018. A poll conducted from June 22 to 29 this year found that 6% of 1,037 respondents own Bitcoin, an increase of 4% from 2018. Among all survey respondents, 13% of investors under the age of 50 hold Bitcoin. Among senior investors, this figure is only 3%. There are similar differences between genders, with 11% of male respondents holding Bitcoin, while only 3% of female respondents.

Text ︱ Esens

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/breaking-and-establishing-the-crypto-market-which-one-will-come-first/
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