Bitcoin is gradually returning to its local highs amid the latest news, forcing investors to look more closely at the cryptocurrency industry. According to the latest data from JPMorgan Chase & Co, major players may appear in the market, as the recent decline in bitcoin volatility creates good conditions for this. Bitcoin has been repeatedly criticized for being highly volatile, which discourages many institutional investors from investing in this asset class. But the more new players enter this market, the higher the liquidity will be and the less volatile the trading instrument itself will become. Such a trend will only increase the attractiveness of bitcoin in the eyes of investors. Time will tell whether it will become a real digital gold, as crypto enthusiasts predict.
"The first signs of bitcoin's volatility stabilizing are encouraging. In our opinion, the normalization of bitcoin's volatility will help revive institutional interest in the future," JPMorgan Chase & Co said in a report. The cryptocurrency's three-month real volatility has fallen to 86% after rising above 90% in February. The six-month indicator has stabilized at 73%. If the volatility continues to decline – it will attract the interest of more institutional investors, which will help support the cryptocurrency market. Many major players refrain from investing in bitcoin not only because of the volatility but also because of the difficulty in building strategies that would provide for a normal attitude to risk. None of the largest US banks currently provides direct access to bitcoin and its analogs, although there is a lot of talk about this.
Wall Street banks are increasingly showing interest in bitcoin, especially after it doubled in value this year. Goldman Sachs Group Inc. said this week that it is close to implementing its proposal to provide access for trading bitcoin and other digital assets. So far, we are talking about clients from the private sector with fairly large accounts. Morgan Stanley also plans to provide rich clients with access to three funds that will allow them to own cryptocurrency. At Bank of New York Mellon Corp., a platform for trading digital assets has been under development for a long time. As soon as all these projects are implemented, we will see a new influx of major players into the market.
Bitcoin is the new gold
Look at the correlation graph of bitcoin and gold. It is quite obvious that as the cryptocurrency grows, the demand for gold, as well as its price, decreases. The influx of funds into various $ 7 billion bitcoin funds and the outflow of about $ 20 billion from exchange-traded funds investing in the precious metal speak for itself. Some may say that the sharp drop in gold prices is due to the gradual victory over the coronavirus and investors' review of their risks - and in some parts, they will be right. But if money leaves precious metals, then they must find a new investment direction - some of it may go to bitcoin and other digital assets. We can not say that bitcoin is gradually replacing gold, however, the development of this digital direction takes a piece from the metal market - this fact will be stupid to deny.
Coinbase Global Inc enters Nasdaq
The initial public offering of Coinbase Global Inc on Nasdaq will take place on April 14.
Coinbase Global Inc., the largest cryptocurrency exchange in the United States, said it plans an initial public offering of its shares on the exchange on April 14. Yesterday, it became known about the registration of the company for listing in the US Securities and Exchange Commission. Earlier, there were reports that the direct placement on the Nasdaq stock exchange was postponed from March this year to a later date. As with other initial public offerings, the initial price at which the shares will be traded will be disclosed the night before the company goes public.
The SEC has been scrutinizing Coinbase pretty thoroughly, constantly influencing its placement plans. It seems that all the problems have been solved. The push to resolve all issues was the settlement of claims between the Commodity Futures Trading Commission and Coinbase in the amount of $ 6.5 million.
How much did miners earn in March?
Miners continue to earn huge amounts of money even despite the more complex mining of bitcoin. In March, they earned a record $ 1.5 billion. According to recent reports, the complexity of bitcoin mining today reached another record level and increased by about 6%. After another recalculation, the complexity of bitcoin mining increased to a new high of 23.14 tons. The average hashrate for 14 days increased from 156 EH/s to 165 EH/s — an increase of 9 EH/s corresponds to 90,000 AntMiner S19 Pro devices from Bitmain.
The introduction of delayed delivery due to problems in the supply chain of new ASICs has led to an increase in complexity and hashrate. It is expected that the complexity of mining will only increase by 2022, as the market fills with more ASIC machines.
As for the technical picture of bitcoin, it is clear to see how the bulls still consolidate above 58,500, which opens up a fairly good upward potential to a maximum in the area of 62,000. The breakdown of this range will lead to a new upward wave in the area of 65,000 and 70,000. If the bears push bitcoin below the level of 58,500, then problems may begin. In this case, it is best to postpone long positions until the low of 54,700 is updated, or even lower - to the large area of 50,300.
