Goldman’s Digital Assets Chief: Interest in Crypto Is Seeing a Resurgence

The crypto market is one of the best-performing markets in 2020. Year to date, the market capitalization of all digital assets is up by approximately 80%. Bitcoin alone is up 65%.

According to Goldman Sachs’ new head of digital assets, Mathew McDermott, the rally is materializing in a resurgence in institutional interest in crypto. He recently sat down with CNBC for an interview on the subject matter and about Goldman’s ambitions in the space.

Interest in Crypto Is Spiking: Goldman Sachs Digital Asset Head

Speaking to CNBC in a recent interview, McDermott, formerly the head of the investment bank’s internal funding operations, revealed his thoughts on the cryptocurrency space.

On use cases for blockchain and related technologies in the next decade, he commented:

“In the next five to 10 years, you could see a financial system where all assets and liabilities are native to a blockchain, with all transactions natively happening on chain… So what you’re doing today in the physical world, you just do digitally, creating huge efficiencies. And that can be debt issuances, securitization, loan origination; essentially you’ll have a digital financial markets ecosystem, the options are pretty vast.”

On what is going on right now in the cryptocurrency space, McDermott said that his information indicates a “resurgence of interest in cryptocurrencies” from “some of our institutional clients.”

Not the Only One That Thinks So

McDermott isn’t the only individual that has perceived this uptick in interest in Bitcoin amongst institutions.

Bloomberg’s Mike McGlone on August 5th released his latest crypto outlook report. The senior Bloomberg analyst noted that with Grayscale still accumulating en-masse and BTC futures gaining steam, it is clear that adoption by institutions is taking place:

“Consistent record highs in CME-traded Bitcoin futures open interest represent accelerating maturation, and a propensity to increase in price, in our view. Though long and short, futures are a key part of the first-born crypto entering the mainstream, and greater adoption.”

There’s been an uptick in retail interest as well.

When Bitcoin surged last week, the asset briefly trended on China’s social media platforms like Weibo, according to some reports shared on Twitter. At the same time, the search term “Bitcoin” (or the hashtag) began to trend on Twitter in at least four countries: the United States, Canada, the United Kingdom, and Australia.

This spike in interest is further materializing in Google Trends data.

As reported by NewsBTC previously, search interest in the term “crypto” on Google is starting to move higher. The interest in the term just surpassed 2019 highs and is heading to levels not seen since early 2018.

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Total Crypto Market Cap Versus Google Trends Search Queries For "Crypto" | Source: TradingView & Google Trends
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Goldman's Digital Assets Chief: Interest in Crypto Is Seeing a Resurgence

Small Investors are Flooding into Bitcoin as Whales Start Losing Market Dominance

The composition of Bitcoin’s investor base is rapidly shifting, with smaller investors garnering greater dominance over the total circulating BTC supply.

This comes as the dominance of so-called crypto whales sees a sharp decline, signaling that the market is currently seeing inflows of smaller retail investors.

This shift comes as more investors start turning to the benchmark cryptocurrency due to its status as a “hard asset” – which many be sparking a trend of accumulation amongst investors.

One group, in particular, that might be behind this trend is young investors. A recent analysis from banking giant JPMorgan shows that this group is widely accepting Bitcoin as both a store of value and as an alternative to the U.S. Dollar.

Bitcoin Whales Cede Dominance Over the Market as Retail Investors Accumulate

Data shows that small investors – defined as those holding less than ten Bitcoin – are rapidly gaining control over the benchmark crypto’s circulating supply.

This trend was highlighted in a recent post from analytics firm Glassnode, in which they explain that over the past five years, the percentage of the BTC supply owned by entities with less than ten BTC has grown by nearly 9%.

They also note that the percentage of the supply owned by entities holding between 100 and 100,000 BTC has declined from roughly 63% to 49.9% currently.

“Control of Bitcoin’s supply has been steadily shifting towards smaller entities. The % of supply owned by entities holding ≤ 10 BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.”

Bitcoin

Image Courtesy of Glassnode.

What Might Be Causing This Trend to Take Place? 

One group potentially responsible for this trend is young investors, who appear to be accumulating Bitcoin at a rapid pace.

NewsBTC reported yesterday that a recent analysis put forth by JPMorgan revealed that the younger generations have a high inclination to invest in Bitcoin.

“The two cohorts show divergence in their preference for ‘alternative’ currencies… The older cohorts prefer gold while the younger cohorts prefer bitcoin,” the bank’s analysts wrote.

Because Bitcoin is currently performing incredibly well against a backdrop of immense money printing and economic turbulence, there’s a high chance that this trend will only pick up steam as demand for “hard assets” continues growing.

It may also perpetuate the sliding dominance that large entities wield over Bitcoin’s circulating supply – which further decentralizes its distribution.

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Ethereum Beats Bitcoin, Gold, and Stocks In Stimulus Check Investment

Stimulus money pouring into assets like stocks, gold, and cryptocurrencies are having a dramatic impact on valuations. But as well as Bitcoin and precious metals are performing, it is Ethereum that has brought the largest return on investment since stimulus checks were issued.

Exactly how much would $1,200 invested in Ethereum have earned savvy investors, and how does this stack up to the rest of the market?

Ethereum Beats Bitcoin, Gold, and the S&P 500 In Stimulus Check Investment Returns

Since 2020 first began, the Federal Reserve’s balance sheet has grown by over $3 trillion and counting. A significant portion of that money has been distributed to individual US taxpayers in the amount of $1,200 per adult over 18.

The money is meant to stimulate economic activity, consumer spending, and provide relief to those hit hard by the pandemic.

Jobless rates have skyrocketed this year nearly as fast as the money supply. Stimulus money is being used for a variety of things, from everyday necessities like paying bills and groceries, to home improvement projects, to savings and investments.

Related Reading | Are Altcoins Silver To Bitcoin As Gold? Unusual Correlation Discovered

The money flowing into the market has helped keep the stock market afloat. Meanwhile, hard assets with limited supplies are benefiting extraordinarily from inflation.

Gold recently set a new all-time high, and Bitcoin recently broke through $10,000. Silver, and its crypto counterpart altcoins, are also performing extremely well in this environment.

Out of all of the major assets seeing a boost from stimulus checks, it is Ethereum that has benefited the most.

How Much Did a $1,200 Investment Earn Since April? Top Financial And Crypto Asset ROI Compared

According to CoinMetrics data shared by crypto investors and NuggetsNewsAU CEO and founder Alex Saunders, the Fed’s stimulus is effectively monetizing crypto assets.

In a side-by-side comparison, the impact on the stock market and gold can be seen. But significantly above those two assets in terms of ROI, lies Bitcoin and Ethereum.

After initial checks went out in early April, those who put their money into Ethereum now have $3,000 to show for it. The same investment in Bitcoin is worth just over $2,000. An investment in the S&P 500 or gold, despite strong rallies, would have barely resulted in roughly around $250 profit.

Related Reading | Here’s Why a Bouncing U.S. Dollar Is Bad News For Bitcoin

Ethereum’s performance still pales in comparison next to some other crypto assets. For example, Chainlink which recently set a new all-time high has turned that $1,200 check into $3,600, tripling the investment.

The best performer out of the entire crypto market top ten, however, wasn’t even Chainlink – it was Cardano. Cardano’s powerful rally has resulted in a 335% ROI. This would have turned any $1,200 investment made on April 11 when checks started to go out, into over $5,000.

Is this a result of inflation, hard assets performing well, or are crypto assets simply breaking out into a new bull run? Whatever the case may be, the investment world will be quick to catch on when they see that stocks, gold, and the rest of the market can’t keep pace with the crypto space.

Chainlink (LINK) Just Surged Past $10: Here’s What Analysts Are Saying

Chainlink (LINK) has been in a strong uptrend once again after a drop into the end of July. Just minutes ago, the asset crossed over the pivotal $10 resistance level for the first time in its history.

This comes as Bitcoin and Ethereum have stagnated at their multi-day highs, retracing slightly.

As of the time of this article’s writing, LINK trades for $10.20. And the asset is up 6.5% in the past 24 hours.

Chainlink Pops Past $10

Just minutes ago, LINK passed $10 for the first time in its existence. This latest surge has made the cryptocurrency the ninth largest cryptocurrency in circulation by market cap, touting a network value of $3.54 billion.

Chart of LINK's price action since the start of June from TradingView.com

Analysts seem to be optimistic about the asset moving forward.

Brave New Coin’s Josh Olszewicz noted that there are critical bullish signals for the cryptocurrency despite the already-impressive rally. Olsewicz noted that the transactions per day of Chainlink, active addresses, Google Trends, and price are all at all-time highs in tandem. He added that his moving average multiplier target is $13.37.

Band Is Also Surging

Chainlink’s surge comes as Band Protocol (BAND), a competitor to the project, has also been rallying. The cryptocurrency gained 50% in the span of five minutes due to a Coinbase listing. Coinbase wrote on August 5th:

“Mon, Aug 10, our BAND-USD, BAND-BTC, BAND-EUR & BAND-GBP order books will enter transfer-only mode, accepting inbound transfers of BAND in supported regions. Orders cannot be placed or filled. Trading will begin on/after 9AM PT the following day, if liquidity conditions are met.”

The market seems to be acknowledging a need for oracles, which both projects provide.

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Chainlink (LINK) Just Surged Past $10: Here's What Analysts Are Saying

Ethereum DeFi’s Balancer (BAL) Surges 25%: Why the Altcoin Is Up So Much

While Bitcoin and Ethereum have stagnated over recent days, multiple altcoins are pressing higher and higher. Zcash, for instance, has gained dozens of percent in the past week alone as its technical and fundamental case strengthens.

The coin of the day, though, seems to be Balancer (BAL). The Ethereum-based altcoin, which is a governance token for the Balancer protocol, has doubly surged in the past few hours.

As can be seen in the chart below, BAL ripped from the $10 baseline it was trading at a high of $15.50 in the span of two hours. The cryptocurrency has since retraced to $12.5 as of this article’s writing, with swing traders presumably taking profits after this legendary pump.

Chart of Balancer's price action over the past few days (FTX market data) from TradingView.com

Why Is The Ethereum-Based Balancer Up So Much?

Balancer rallied due to it being listed on Binance, which was announced on the morning of August 6th. Binance is arguably the first major exchange BAL has been listed on aside from FTX, hence why investors see this as such a significant event.

That’s not to say that the move higher was entirely unexpected.

One cryptocurrency trader shared the chart below just a day before the listing, noting how BAL had a bullish structure. What he didn’t expect, though, is for the Ethereum-based altcoin to rally so high and so fast.

Image

Chart of Balancer's recent price action with analysis by SmartContracter (Twitter handle). Chart from TradingView.com

A True Bull Market: Listing Pumps Are Back 

Although Balancer has given back some of the gains it underwent because of the Binance listing, it is clear that listing pumps are alive and well.

In 2017 and 2018, cryptocurrencies would pump sky-high whenever they were listed on a reputable exchange such as Coinbase, Binance, or Bittrex. Coinbase’s listings were the most well known because they were so elusive and had such a large impact.

We’re seeing this now with Balancer, as aforementioned, and with other tokens.

The day before the Ethereum-based BAL was listing on Binance, Band Protocol (BAND) also secured a major listing. BAND secured a spot on Coinbase, which makes it one of the newer assets to be added to the platform.

On this news alone, BAND gained around 50% in the span of five minutes, literally rocketing the cryptocurrency up the leaderboards.

Analysts say that the existence of these infamous listing pumps are a clear sign that the cryptocurrency market is in a bullish phase.

How the next crypto asset reacts to a Coinbase or Binance listing, though, remains to be seen.


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Ethereum DeFi's Balancer (BAL) Surges 25%: Why the Altcoin Is Up So Much

Analyst: XRP May Crater to $0.21 Before Strong Uptrend Can Extend

XRP has found itself caught within a consolidation phase throughout the past few days as it trades just above $0.30.

The cryptocurrency has been unable to surmount the heavy resistance it faces between $0.31 and $0.32, and it appears to be once again forming a strong correlation to Bitcoin and the aggregated cryptocurrency market.

That being said, it may be unable to post any strong rally until the rest of the market further extends its ongoing uptrend.

One analyst is now noting that he expects XRP to see some notable near-term downside before it can surge any higher.

He believes this decline could lead it as low as $0.212 – marking a nearly full retrace of its recent gains.

However, he still believes that its uptrend may remain intact despite this drop and that it may even be necessary in order for it to continue climbing higher in the near-term.

XRP Forms Bullish Technical Pattern as Consolidation Phase Extends

At the time of writing, XRP is trading up over 2% at its current price of $0.31. This is around the price at which it has been trading throughout the past few days.

Earlier this week, bulls sent the crypto surging to highs of $0.34, but this movement was not backed by enough buying pressure to hold it above the resistance it faced at $0.32.

The cryptocurrency has been consolidating below this level ever since, and it may continue trading sideways until the entire crypto market garners greater direction.

Both Bitcoin and Ethereum are currently consolidating beneath their crucial resistance levels. As such, where XRP moves next will likely depend on how they eventually respond to their near-term resistance.

One analyst noted in a recent tweet that the embattled token has been able to form a clear bull flag over the past several days and weeks. The resolution of this pattern could send it surging higher.

Image Courtesy of MoonOverlord. Chart via TradingView.

Analyst: Token May Dip to $0.21 Before Extending Momentum

While speaking about XRP’s near-term outlook, another popular cryptocurrency analyst explained that he expects it to see a sharp retrace before it can extend its uptrend.

He notes that this could lead it as low as $0.21 in the days ahead.

“XRP: Buy the dip zones: $0.212 and $0.245. Next resistance zone if this massive one breaks: $0.40. I doubt we’ll continue rallying, but I will be very satisfied to buy the dip.”

XRP

Image Courtesy of Crypto Michael. Chart via TradingView.

Where it trends next may be partially dependent on the aggregated market, but it is also possible that its heavy resistance at $0.32 will spark a sharp decline.

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Charts from TradingView.

KAVA, ERD, and BAND See 10x Moves: Why are Binance IEOs Outperforming the Market?

The crypto market is booming again, with each passing day a new token is doing another ’10x’ and making early investors rich. The latest coins in the limelight, all happen to be Binance IEOs: Kava (KAVA), Elrond (ERD), and Band Protocol (BAND).

Why are Binance IEOs suddenly outperforming the rest of the market? Also, will this craze continue, and if so, which token will rally next?

Binance IEOs Stagnant Since Launch Are Suddenly Soaring, But Why?

During the 2017 crypto bubble, alongside Bitcoin’s meteoric rise, the ICO boom helped Ethereum explode and created an industry filled with altcoins.

Most of the altcoins created during this clear cash grab ended up nearly worthless after the bubble burst. The fundraising method went from being championed across crypto to being demonized by the finance world and by chief regulators.

Negative sentiment and a slew of lawsuits stopped that trend in its tracks. Since then the market has been searching for a suitable replacement for launching new projects through crowdfunding.

Related Reading | The Great Ethereum Debate: DeFi Versus ICOs

IEOs, or initial exchange offerings were born, helping to launch new tokens with the added backing and support of a cryptocurrency exchange. Binance kicked off the trend, but several other platforms followed the industry leader.

Like ICOs, IEOs were also haunted by negativity, with a former SEC chief referring to the new class of assets as “unregulated crypto-casino fundraising mutations.”

That negative stigma, however, has since been shed alongside the market turning bullish again, and it has helped propel a handful of Binance IEOs to superstardom.

Rolling The Dice On KAVA, ERD, and BAND Led To 800% Returns

The crypto community is on the hunt for the next major trend to take advantage of. Now that DeFi has begun to fizzle out slightly and majors are stealing the limelight, its allowed another subset of altcoins to run: IEOs.

Several of the tokens launched on Binance as IEOs have gone on over 800% rallies since March. The top-performing trio of tokens includes Chainlink competitor Band Protocol (BAND), the DeFi lending platform Kava (KAVA), and Elrond – a project with internet-scale blockchain ambitions.

binance ieo coins kava erd band usd

BANDUSD - KAVAUSD - ERDUSD Chart Comparison | Source: TradingView

Each of the three assets has followed a similar path and price increase since Black Thursday. And it is prompting market participants to look toward other Binance IEOs for additional breakout performance.

Perlin (PERL), according to traders, has begun to join the party, and other possible invitees include Celer Network (CELR), Harmony One (ONE), and BRD. All of these Binance IEOs may show similar performance if the same sort of bandwagon effect happens in this category of coins as it has done so with DeFi and oracles.

Related Reading | Crypto Is Up Over 80% in 2020—and Google Users Are Taking Notice

As for why these assets are suddenly outperforming the market. These rather illiquid altcoins have more to climb from less capital, and with profits from Bitcoin and majors aplenty, there’s less risk involved in rolling the dice in the “crypto-casino.”

It’s “Only a Matter of Time” Before Chainlink (LINK) Breaks $10.00; Here’s Why

Chainlink has been flashing signs of immense strength throughout the past few days, with the cryptocurrency currently consolidating around its all-time highs.

Despite being unable to break into the double-digit price region, the strong market structure established as a result of its recent push higher is likely to allow for further upside in the near-term.

As such, analysts are now widely noting that it is only a matter of time before LINK breaks above $10.00 and further extends its parabolic momentum.

One factor that could significantly bolster its USD price action is that Chainlink is still trading well-below its BTC trading pair’s July highs.

While speaking about this, a popular trader explained that he believes a jump to these highs is imminent. This will also catalyze some major momentum on its USD pair that likely allows it to set significantly higher highs.

Chainlink Shows Signs of Strength as Analysts Eye Move Past $10.00

At the time of writing, Chainlink is trading up just over 1% at its current price of $9.66. This is around the price at which it has been consolidating throughout the past few days.

Earlier this week, the crypto raced to highs of just under $10.00 before it faced an influx of selling pressure that slowed its ascent.

From this point on, LINK has been oscillating between lows of $9.35 and highs of $9.90, with it currently trading directly in the middle of this consolidation channel.

Because Chainlink is starting to require sizable sums of capital to maintain its growth trajectory, it may continue trading sideways until Bitcoin, Ethereum, and the rest of the market is able to push higher as well.

One analyst explained in a recent tweet that he believes it is “just a matter of time” before the crypto smashes its $10.00 resistance and sets fresh all-time highs.

“Consolidating below 10usd – just a matter of time now,” he explained while pointing to the below chart.

Chainlink LINK

Image Courtesy of Teddy. Chart via TradingView.

Trader: LINK Likely to See Major Upside Against BTC

Another respected trader explained that he is expecting Chainlink to see massive upside against its Bitcoin treading pair in the near-term.

Because LINK is still trading well below its BTC highs that were set in July, a surge back to these highs could also provide it with significant upside on its USD trading pair as well.

“Why I’m still holding my LINK position,” he said while pointing to the chart seen below.

Image Courtesy of Loma. Chart via TradingView.

That being said, a break above $10.00 may allow Chainlink to incur a parabolic rally independent of the rest of the market that enables it to post massive gains against BTC.

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Charts from TradingView.

Why XRP’s Waning Momentum May Be The Calm Before The Storm Surge

XRP investors are eager to see their altcoin of choice get back a lot closer to all-time high valuations. The crypto market underperformer recently regained its number three rank thanks to an over 45% one-week rally.

However, things have since cooled down. Why is momentum currently waning, and what does this mean for an extended recovery? The same indicator on lower timeframes points to a pause from bulls, but on high timeframes suggests this is the calm before the storm. What can altcoin investors expect?

XRP Rebound Takes Pause, But Are Bulls Preparing An Even Stronger Push?

A rebound from nearly three years of a bear market takes time to recover from. First, momentum from the downtrend needs to decline, while positive momentum from bulls begins to build. After a phase of equilibrium where supply and demand reach a stalemate when the odds tip once again in the favor of bulls, a new uptrend begins.

That is exactly what XRP investors have been hoping for, after watching the asset fall over 99% from its all-time high of over $3.50 token. At the low this past Black Thursday, Ripple traded at just ten cents briefly.

The epic fall set the bottom and from there the asset has recovered over 200%, potentially giving bulls confidence to turn things around for good.

xrp macd daily bear div

XRPUSD Daily MACD Bearish Divergence & Overbought | Source: TradingView

But before that happens, the recent rally appears to be pausing or running out of momentum. According to the moving average convergence divergence indicator, a momentum measuring tool, the asset has reached overbought conditions. There’s also a bearish divergence on the MACD on daily frames.

Related Reading | Short-Term XRP Target At 40 Cents, What Ripple’s Long Road To Recovery Looks Like

These factors indicate that a temporary pullback is likely in the asset and a pause in price action possible. But it may simply be the calm before a major surge in XRP.

Monthly MACD Flips Green For First Time In Two Years, Bullish Crossover Calls For New Uptrend

A ripple-effect may have already begun the moment the monthly MACD turned bullish for the first time in over two years.

The same tool that is showing a pause in bullish momentum and overbought conditions on daily timeframes, on higher timeframes is signaling that a new uptrend is only just now starting.

xrp macd monthly

XRPUSD Monthly MACD Bullish Crossover | Source: TradingView

The moment the trend turned bearish, a red, negative reading on the MACD’s histogram began and lasted all throughout the bear market. A green flip on monthly timeframes may suggest that a new bull market has started, but hasn’t fully ramped up yet.

When the two moving averages converge and cross, it can act as a powerful buy or sell signal. This bullish crossover is underway right now on XRPUSD monthly charts, coinciding with a 200% rally already, a green flip on the histogram, and an environment ripe for inflation.

Related Reading | Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?

In the past, XRP turning bullish took valuations from under a penny to over $3 in a year. Is the recent slowing momentum just the calm before Ripple’s major storm surge?

Technical Indexes Spell Trouble for Ethereum Despite Hype Around ETH 2.0

The Ethereum Foundation recently launched the Medalla testnet. This is set to be the final testnet before Ethereum 2.0 goes live into mainnet by the end of the year.

The goal is to test key features in a real working environment to examine its scalability and efficiency.

The news seems to have brought a lot of attention to the smart contracts giant. LunarCRUSH reported that the number of ETH-related mentions on social media exploded since the testnet was launched.

The community analytics firm recorded over 263 million social engagements over the past two days alone.

Despite the hype around ETH 2.0, data reveals that when market participants pay heightened attention to a cryptocurrency, it leads to a steep correction. And a key technical index adds credence to the bearish outlook.

A Correction on Ethereum’s Horizon

TD sequential indicator recently presenting a sell signal on ETH’s 1-day chart. The bearish formation developed as a green nine candlestick. This type of technical pattern estimates a one to four daily candlesticks correction before the uptrend resumes.

Based on historical data, the TD index has been extremely accurate at anticipating Ether’s local tops and bottoms. This index even presented a buy signal on July 18, just before prices surged to a new yearly high of $418.5.

For this reason, the current pessimistic forecast must be taken seriously despite the high levels of interest around the second-largest cryptocurrency by market cap.

Ethereum US dollar price chart

TD Presents Bearish Outlook For Ethereum. (Source TradingView.com)

Strong Support Ahead

In the event of a correction, IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that the most significant support level underneath Ethereum lies around $341. Here, roughly 320,000 addresses are holding nearly 5.20 million ETH.

Such a massive supply barrier may have the ability to prevent prices from dropping further. Holders within this price range will likely try to remain profitable and may even buy more Ether to allow prices to rebound.

Ethereum's Most Important Support Level Sits Around $341. (Source: IntoTheBlock)

On the flip side, the IOMAP cohorts show that if buy orders continue piling up Ethereum could face stiff resistance around $415. Based on this on-chain metric, approximately 180,000 addresses had previously purchased 1.11 million ETH around this price level.

A sudden spike in demand for the smart contracts giant that allows it to slice through this resistance barrier may see it aim for $500 or higher.

Given the ambiguous outlook and the current state of the market, traders must watch out for the $385 support and the $415 resistance level. Breaking below or above these crucial price point will determine where Ethereum is headed next. A small dose of patience could provide great opportunities to profit from the next major price movement.

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