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Institutional investors bet on the growth rate of Bitcoin, longs rose by 88%



Data from the US Commodities and Futures Trading Commission show that institutional investors have set themselves up to play Bitcoin appreciation from April 2nd. The date coincides with the latest Bitcoin rally price when it took off from about $ 4,100 to more than $ 5,300 per minute.

Smart Money Goes Long on Bitcoin

US CFTC data show that the number of open long Bitcoin futures contracts by asset managers and institutional investors on the Chicago Mercantile Exchange (CME) increased from March 26 to April 2.

It is noteworthy that since April 2, 315 long bitcoin futures contracts have been opened on the CME platform. This is a whopping 88% increase over the previous week. Moreover, the number of short positions decreased by 63% – from 241 to 89 contracts.

Each Bitcoin CME futures contract represents 5 BTC, which is paid in cash. This means that after the expiration of the contract, the user will not receive physically delivered Bitcoin, but only US dollars.

It should also be noted that the total number of open long and short positions in CME on this date was 404. Of these, 78% were long, while only 22% were short.

This change in sentiment may indicate that US investors are currently bullish on Bitcoin, as interest grows.

Earlier it was reported that the institutional volume of trade Bitcoin continued to grow for 4 consecutive months. It seems that in April, most smart money is betting on the growth of Bitcoin. CME Group is primarily responsible for the increase, especially after the Chicago Stock Exchange (CBOE) announced in March that it would not offer any new Bitcoin futures contracts.

Meanwhile, BTC / USD of $ 5,119.40 -1.72% rose almost 40% from the price lows in mid-December.

Not only institutional

The latest Bitcoin rally seems to have changed bearish sentiment among retail traders.

The data from TradingView shows that the number of long positions on the Bitfinex cryptocurrency exchange has also increased over the past five days.

On the other hand, the number of short positions has significantly decreased. This suggests that the mood turned into a bullish side on April 8th, which also happened when long positions rose.

Meanwhile, independent analyst Willy Wu gave an analysis that suggests that the long bear market may come to an end. A rise above $ 5,000 marks the beginning of a new long-term uptrend.

A bullish attitude echoes the secondary trader Peter Brandt. He is known for calling the last Bitcoin parabolic breakthrough of $ 20,000, and also predicts a 80% decline to less than $ 4,000.

Brandt said recently that he would not be surprised if "BTC enters a new parabolic phase . "

Publication date 14/04/2019
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Analytics and prospects for the cryptocurrency market, Binance Research report The analytical division of the Binance exchange has prepared a report on the cycles in the market of cryptocurrency assets, the findings of which support the version that the minimum point of the current stage is already behind – the “bottom” is passed! According to the report Binance Research, when the price correlation Bitcoins and altkoinov the US dollar reaches a certain positive value, the trend Bitcoins tends to unfold or at least stop the movement in a previously set direction. Of course, investors felt the connection between the main virtual currency and all the others. A new study brought a scientific basis: at a certain time, the correlation value exceeded 0.94, which indicates an almost perfect correlation between the trend of Bitcoin and other cryptocurrencies . At the same time, the data show that the correlation value never fell below 0.8, so you can count on a single trend in the cryptocurrency sector. The periods of increased correlation in the crypto market are directly related to its focus on retail investors, analysts say. According to, 700 funds operating in the cryptocurrency market, as of January 2019, controlled less than $ 10 billion in assets. If we assume that all these assets were placed exclusively in Bitcoin, it turns out that such funds account for up to 14% of the capitalization of cryptocurrency. If we assume that the funds invest in Altcoins in accordance with their proportion in the market (about 50%), it turns out that such funds account for less than 7% of Bitcoin's capitalization. This value is only the thirteenth part of institutional participation in the US stock market and is as close as possible to the Chinese market, where in 2017 retail investors accounted for 99.8% of accounts, more than 40% of capitalization and more than 80% of trading volume. Another similarity between the cryptocurrency market and the Chinese stock market lies in the high turnover of funds that is characteristic of less professional markets.

“Crypto investors are probably more inclined to respond to news and information and hold their positions for a shorter time ,” writes Binance Research. “As a rule, non-professional investors tend to become overly confident or overly pessimistic, reacting to trends in the market, which leads to an increase in the volume of transactions and volatility.”
Another characteristic feature of the cryptocurrency market is “hodling”, when retail investors hold an asset at the stage of decline, but quickly become more active when the course starts to go up. Thus, the crypto-market is distinguished by the irrationality of participants who assess the situation overly positively and negatively, which in turn leads to the formation of bubbles or an unreasonably deep drop and is reflected in the correlation graph of digital asset rates. According to Binance Research, this was the case in 2018, when market sentiment reached a maximum point, so it can be now, with the difference that the reversal in the current case goes up. Publication date 14/04/2019 Share this material on social networks and leave your opinion in the comments below.

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Bithumb Cryptocurrency Exchange intends to enter the markets of the USA and Japan

Bithumb, one of the largest Bitcoin exchanges in South Korea, in the foreseeable future, may begin to offer services to residents of the United States and Japan. About this in an interview with Cointelegraph said BC Kim, CEO of the Blockchain Exchange Alliance (BXA), which owns the controlling package in Bithumb. According to him, the BXA strategy consists in the so-called reverse merger, involving the purchase of a company whose shares are already […]



Bithumb, one of the largest Bitcoin exchanges in South Korea, in the foreseeable future, may begin to offer services to residents of the United States and Japan. About this in an interview with Cointelegraph said BC Kim, CEO of the Blockchain Exchange Alliance (BXA), which owns the controlling package in Bithumb.

According to him, the BXA strategy is the so-called reverse merger, involving the purchase of a company whose shares are already being traded on one of the major exchanges. Among those, Kim names the Nasdaq and the New York Stock Exchange (NYSE).

Such a path may be faster than a traditional IPO, and will also help to significantly reduce the cost of listing on the stock exchange, which can reach $ 6 million.

As Kim says, BXA has already applied for legal support in the United States, and a lawyer from an unnamed firm said that the current regulatory environment allows the company to implement the stated plan.

BXA is also looking for partners in Japan, where it wants to create a joint venture to launch a officially licensed cryptocurrency exchange.

In addition, BC Kim said that he could potentially increase the share of BXA in Bithumb by buying up to 70% of the shares of BTC Holdings, the current operator Bithumb.

Additionally, he touched on the issue of the BXA's own token, which is already traded on the BitMax exchange, noting that its potential listing on Bithumb requires additional legal assessment.

Earlier this week, the Blockchain Exchange Alliance received funding in the amount of $ 200 million from the Japanese blockchain fund ST in the framework of the investment round of series A. As stated, investments will be directed to expanding the geography of Bithumb services, as well as adding new trading pairs to the site.

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The US government plans to increase spending on the blockchain technology 10 times.



Blockchain will become the main technology for the work of American civil and military government agencies.

The US federal government intends to increase spending on the blockchain 10 times – such data is contained in the report IDC Government Insights. According to the authors of the study, the amount of spending on this direction will increase to $ 123.5 million by the end of 2021, while in 2017 only funds worth $ 10.7 million were allocated.

It is also expected that spending on the implementation of distributed registry technology will also grow at the state and municipal level: in total, they will invest $ 48.2 million in this area over the same period, which is also about 10 times more than in 2017, when these goals were spent 4.4 million dollars.

If we talk about the structure of spending, then at least four times the costs of federal civilian authorities will increase, from less than 20 million to more than 80 million dollars over a specified period. The US Department of Defense will spend up to $ 40 million instead of $ 20 million, as in 2017.

As the head of the IDC research unit, Sean McCarthy, notes:

“We are confident that blockchain solutions will dominate in such issues of government functioning as state property management, identification of citizens at the border, as well as government procurement, when in the latter case everything goes from paper workflow to smart contracts .”

In the near future, much attention will be paid to investment in blockchains to improve logistics, including the deployment of new US military units in the EU countries. In addition, the distributed registry technology will continue its intensive distribution in financial transactions.

Publication date 20/04/2019
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The State Duma and the Central Bank of the Russian Federation proposed to replace the reserves of the US dollar by a cryptocurrency



Russian commodity companies have appealed to the State Duma and the Central Bank with a proposal to implement in the country the concept of steylcoin – cryptocurrency , the value of which is tied to real assets. This was announced by the head of the Duma Committee on the Financial Market, Anatoly Aksakov, during a plenary session at the Yalta International Economic Forum.

Aksakov told :

“Serious Russian resource companies have turned to us in the State Duma, to the Central Bank with a proposal to implement the idea of steyblockcoins – these are cryptotools based on a real asset. And so, in the opinion of these serious businessmen, the stableblocks will just allow replacing the dollar in mutual settlements. So we are moving towards this. ”

Aksakov noted that there is no need to set guidelines for the time period for the refusal of the dollar in international settlements, but it is necessary to create conditions for this.

“Calculations in national currencies are growing, of course, not as fast as we would like. But, say, with China, they are already close to 25%. More recently, it was almost zero. In the Eurasian Union, calculations already exceed 80%. ”

He added that in Russia the structure of international reserves has changed significantly.

“The structure of international reserves has changed significantly: if dollar assets accounted for about 60% of our international reserves, now they are 22%. On the other hand, the share of yuan, gold has significantly increased – this is just the answer to the fact that sanctions have been taken against our country. ”

As he wrote, in January 2019, Bloobmerg reported that the Russian Central Bank, actively selling dollars from its reserves and “shifting” to other currencies, bought a quarter of all world reserves of the yuan.

The politically determined course of dedollarization led to the fact that Russia began to get rid of American securities, which were previously regarded by Russian financial officials as highly liquid and minimally risky. Already in the middle of 2018, Russia got rid of half of US debt, selling them for yuan.

The problem, however, is that in the same year of 2018, the yuan devalued against the dollar by 5.7%, so the dollars sold for the yuan supported the Chinese financial system, but eased Russian reserves by 670 billion rubles. According to Bloobmerg, the Russian Central Bank lost exactly that amount in rubles on exchange differences between the yuan and the dollar last year. The United States did not lose a cent.

Today, no country in the world has such a share of RMB in its reserves as Russia, because, despite the size of its economy, China remains a developing country with not the most reliable currency, which the yuan demonstrated in 2018.

As for the national steyblekoinov, tied to the real assets, which spoke Aksakov, this idea, of course, is not new. In February 2019, he voiced the opinion of the head of the Energia corporation, former Energy Minister Igor Yusufov, who is in favor of creating the Russian “oil cryptocurrency” .

According to the ex-head of the Federal Securities Commission of Russia Igor Kostikov, not only oil and gas, but also any resources that are exchangeable can be connected to cryptocurrency.

Oleg Abelev, Associate Professor of the Department of Economic Theory of the Financial University under the Government of the Russian Federation, agrees with them. According to him, from a technological point of view, Russia has not yet matured before introducing cryptocurrency for oil and gas into its calculations, but from an economic point of view, this thesis is not without reason.

However, Abelev notes :

“We run into the fact that digital financial assets in Russia are outside the law. But sooner or later, the existence of such assets should be recognized and the legislation regulating the life of cryptocurrency must be adopted, ”the economist is sure.

Publication date 20/04/2019
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