Bitcoin has seen two straight weeks of outflows, while investors have poured money into ether for a third week ahead of a key network upgrade: CoinShares

Ethereum and bitcoin
Ethereum and bitcoin

Investors pulled their money from bitcoin products for a second straight week in the seven days to July 16, with many likely booking profits on long-held positions, while pouring money into ether for a third week, according to data from CoinShares.

Bitcoin assets saw flows drop 10.4% over the week, while ether saw flows rise 11.7%, according to the company’s most recent weekly flows report released on Tuesday.

Bitcoin lost around 7% in value in the week to July 16, when it fell below $32,000. Since then, it has fallen another 6.5% to around $29,720, driven by rising investor risk aversion over the surge in cases of COVID-19 that has battered global markets this week.

Since the currency peaked in April at almost $64,000, it has lost more 50%, although it is still up by over 200% over the last year. CoinShares investment strategist James Butterfill told Insider he believed a portion of the bitcoin outflows were down to longer-standing investors taking profit now in case of a steeper slide over the coming months.

CoinShares graph

“Most of our funds were launched in 2015 and we saw profit-taking earlier this year and not now. So the outflows we are seeing in some funds is simply due to when individuals first invested, rather than negative sentiment towards bitcoin,” he said.

In 2015, bitcoin traded between lows of around $110 and a high of close to $500. It’s risen by almost 30,000% since then.

“People that are seeking out, might not necessarily be doing so for bearish reasons, but instead their deciding to profit now, perhaps their line of thinking is that ‘I should have sold at $55,000, but it’s fallen down to $30,000, so I’ll just take profits here because my worry is that the BTC price is not going to do much over the summer,” Butterfill said.

Meanwhile, over the last 7 days ethereum’s ether token has fallen by around 13% to $1,748.85, Coinmarket cap data shows. After peaking in May above $4,300, much like bitcoin, it’s also lost around 50% in value. Over the last 12 months, however, it’s up by more than 600%.

Investors are hoping to profit from the upcoming upgrade to the ethereum network. Ethereum 2.0 is scheduled to roll out on August 4 and some investors may be buying, given that the shift will result in supply reduction and the price potentially rising sharply.

Bitcoin products were the only ones that saw outflows in the latest week. The smaller altcoins, together with ether, all registered modest inflows. According to the CoinShares data, which is an accumulation of global flows, XRP and dot saw a 0.3% rise in inflows, while ada saw an increase of 0.4%.

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Cardano has completed an upgrade that will mean it can bring advanced smart contracts and DeFi to its blockchain

Cardano ada
Cardano ada

The cardano network has completed an upgrade that will allow it to incorporate more advanced smart contracts and decentralized finance applications to its blockchain.

The Swiss company’s developer Input Output HK, a research and blockchain engineering firm, made the announcement in a tweet on Wednesday.

“Delighted to report around 19.44 UTC today we successfully forked the alonzo testnet to the new alonzo white node. The new network is happily making blocks already,” the company tweeted.

Smart contracts are effectively contracts that execute automatically once a series of conditions have been met. They also allow engineers to use the blockchain to perform a range of functions like send information, or documents. DeFi applications allow two counterparties to exchange capital, or assets, without an intermediary.

The network’s native ada token briefly climbed up to a session high of $1.29 on Thursday after the news, before slipping back to around $1.2203, marking a 3.4% daily drop, based on Coinbase data. Ada is the fifth largest cryptocurrency by market capitalization, according to Coinmarketcap.

Input Output HK said it would monitor the network over the course of Thursday.

“We expect a number of updates as we add features to alonzo white,” the company added on Twitter.

This was the first in cardano’s “alonzo” series of upgrades that is scheduled to finish in September.

Cardano’s alonzo plans should help the company compete with the likes of the ethereum network, whose blockchain underpins the majority of existing DeFi applications and smart contracts.

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Crypto trading volumes have fallen to a 9-month low as Europeans ditch bitcoin, although US investors are still buying: CoinShares

British flag and US flag
British flag and US flag

  • Bitcoin has seen outflows in Europe but inflows from North America in the latest week, according to CoinShares.
  • Trading volumes totalled $1.58 billion for the week to July 9, the lowest since October.
  • Multi-asset investment products, like the Bitwise 10 crypto index fund, were the most popular last week.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Cryptocurrency trading volumes fell to their lowest in nine months in the latest week, as bitcoin continued to fluctuate in a relatively narrow range, according to data from digital asset manager CoinShares on Tuesday.

Outflows picked up speed in Europe, where regulators have toughened their scrutiny of cryptocurrency trading in general, while US investors were net buyers of crypto assets, according to CoinShares data.

The crypto trading volumes totalled $1.58 billion for the week, as activity quietened mostly for bitcoin. Bitcoin saw net outflows of $6.9 million, a steep decline from net inflows of $38.9 million the week before.

Weekly crypto asset flows
Weekly crypto asset flows

“In recent weeks, there has been a regional divide in bitcoin inflows, with North American providers seeing consistent inflows while their European counterparts have continued to see outflows, suggesting a geographic divergence in sentiment,” the report said.

So far this month, bitcoin has traded in a relatively narrow band, between lows of around $32,100 and a high of around $34,500 – a far cry from the extreme volatility of May, when it swung from a low of $30,000 to a high of nearly $59,600, according to Coinbase.

Since hitting a record of nearly $65,000 in April the coin has tumbled by nearly 50%, although it is still up almost 260% in the last year.

Regulation was another factor. The UK regulator banned retail consumers from buying crypto derivatives last year. Since then, it ordered Binance, a crypto exchange, to halt regulated activities in the country.

“Europe is a little bit behind in terms of investment into crypto assets,” James Butterfill, CoinShares chief investment strategist, told Insider.

CoinShares is Europe’s largest crypto asset manager. The company had $3.35 billion under management by the end of the first quarter, according to its recent earnings report.

Other crypto assets witnessed net inflows. Ether saw inflows of $800,000, Binance coin saw inflows of $400,000 and cardano’s ada token saw $600,000 in flows.

Multi-asset investment products, like Bitwise 10 crypto index fund, which tracks the performance of the top 10 crypto coins for example, were the most popular last week, with inflows of $1.2 million. CoinShares said this suggested investors were diversifying their holdings.

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Bitcoin jumps 10% after hitting its lowest level in about 2 months as buyers swoop in after the price drop

GettyImages 1231617876

Bitcoin rose as much as 10% on Monday, as investors used last week’s slide as a buying opportunity.

The digital asset was last trading near $53,000 as of 03:00 a.m. ET, but had earlier dropped as low as $47,000 in early Asian trade.

Some analysts said crypto investors view volatility as a good chance to rack up profits. Real Vision co-founder and former hedge-fund boss Raoul Pal said Sunday: “Corrections in a bull market are opportunities and not threats.”

Bitcoin had tumbled to as low as $47,953 last week after JPMorgan warned there could be further weakness for the cryptocurrency due to a decline in buying momentum. Reports that President Joe Biden plans to impose higher taxes on the rich also propelled a wider drop in bitcoin. Investors in Turkey were dealt more pain after the collapse of two crypto exchanges, stoking concern that cryptocurrencies may be in a bubble.

“My feeling is that the market is long and wrong above $60,000 of fiat currency, backed by tax-payer revenue, US dollars,” Jeffrey Halley, a senior market analyst at OANDA, said, adding he expects the price to fall to around $42,000 based on technical analysis.

Popular crypto influencer and Tesla billionaire Elon Musk posted yet another cryptic reference to the market. He tweeted over the weekend “What does the future hodl?” – using a term crypto investors understand standing for “hold on for dear life” with respect to their holdings.

Screenshot 2021 04 26 at 08.45.06

Bitcoin enthusiasts will be paying attention to Tesla’s first-quarter results, set to be published after the market close on Monday, for any insight into crypto in general, or the company’s bitcoin holdings.

Meanwhile, Cardano’s ADA token rose 10% to $1.20, Ethereum’s ether rose 6% to $2,457, and Dogecoin rose 5% to $0.26.

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