Buying the dip is what we will discuss in this article.
By Jacob Pouncey | Saxo Bank Analyst | Crypto Current Contributor
This week the entire crypto market cap rose by 8.5%, bringing the market cap to USD 270 bn. Bitcoin and Ethereum rose by 8.5% and 4.5% respectively. Over the weekend the Bitcoin price found support at the USD 8k level a now appears to be headed towards testing USD 9k as potential resistance. Year to date bitcoin has returned over 125% against the USD.
Bitcoin Whales accumulate The number of bitcoin addresses that hold 1k-10k BTC has increased to about a quarter of all circulating supply. Data from cryptocurrency research firm Diar suggest that Bitcoin Whales or holders with more than 1000 BTC have increased their total number of bitcoins held by nearly 26% since the start of the bear market. Additionally, retail traders or holders with anywhere between 0.01-100 BTC have added to there holdings. Looking at the holding distribution from November 2018 to May 2019, the percentage of BTC on exchanges has fallen from 20% – 16%. This supply reduction on trading venues could be a factor that is helping support the spot Bitcoin price since the recent bottom in December 2018.
The Swiss stable coin The Swiss stock exchange SIX is looking to develop its stable coin pegged to CHF. This Swiss Franc stable coin will help the exchange further the development of its cryptocurrency initiatives. It is still unclear if the token will only trade on the exchange. The company is set to launch its digital asset exchange later this year, which would represent a first for a European exchange to launch a complimentary digital asset exchange with the purpose of tokenizing traditional securities and offering digitally native ones. This represents the continuous march from the traditional finance world towards a more efficient and hyper-digital financial infrastructure. SIX is already ahead of most European exchanges through its listing of several exchange-traded products that track the performance of the major cryptocurrencies.
Binance Margin trading soon The largest spot cryptocurrency exchange Binance will launch its margin trading “soon” according to sources close to the matter. However, the services will not be available to users in the US, Cuba, and Iran, among others. The rollout will be limited to a few pairs, but this move will almost certainly increase the trading revenue of Binance, which could help the profitability of the firm. The addition of margin trading on one of the world’s largest exchanges could add more leverage to the cryptocurrency market and increase volatility.
