Crypto Market Recovers As Old Bitcoin HODLers Cash In

In the letter

  • The crypto markets rebounded slightly from the sell-off on Wednesday.
  • However, older Bitcoin continue to enter the market as long-term HODLers cash out.
  • Equity markets are flat after the US government has not yet agreed on a stimulus package.

If you’re a card reader (which we assume is you), you know something is wrong when a card suddenly shoots all the way up and then all the way down.

For traders who used CoinMarketCap’s data yesterday, that’s exactly what happened. According to the data provider, the market capitalization for crypto rose from USD 528 billion to USD 561 billion within an hour. It stayed short before falling back to $ 540 billion.

A $ 30 billion blip. IMAGE: CoinMarketCap

Great! You may have thought the cops were back. If you look at this chart, you might actually be right as the blip states that global market cap is up 181%, which has never happened before.

However, not all charts are created equally. On to Data company NomicsThe data tell a completely different story.

Not all data is created equally. BILD: Nomics

Global market cap rose 3.48% yesterday, not 180%. Data always has quirks, and thankfully the up and down data points did no harm. But here at Market Watch we’re subscribers to the mantra, reviewing, reviewing, and then reviewing again before putting your life savings on crypto. Anyway, go on with the show.

Bitcoin picked up the pace yesterday and made up most of the previous day’s losses sudden market decline. Trading and fiat volumes were also down sharply yesterday as the sudden sell-off appears to be over. But there was something interesting about who sold yesterday.

Since Bitcoin has flirted with the $ 20,000, the amount of “old” Bitcoin being sold has skyrocketed. Bitcoin coin days destroyed is a metric that measures when dormant bitcoin is being sold. The older and the more bitcoin there is, the higher the metric.

Over the past few weeks, the amount of old BTC has increased 162%, suggesting that those who have been in the game long are ready to enjoy the fruits of their HODLing labor. For everyone else who is waiting for higher prices, you are not alone.

Institutional investors continue their slow march into Bitcoin, with BIGG Digital Assets adding the $ 3.6 million worth of cryptocurrency to its long-term holdings.

Elsewhere in the crypto markets, currencies are still correcting themselves, with Ethereum dropping 6.35%, Ripple 6%, Litecoin 11.8% and almost every other project in the top 20. The only gains yesterday came from NEM up 5.2%, Monero up 3.2% and stablecoins USD Coin (up 2.91%) and Tether (up 5%).

Markets split over the stimulus package as new tech stocks boomed

It is the greatest will in the financial world that they / they won’t, and as of yesterday it looks more like they won’t. We are, of course, talking about the much discussed US government stimulus package.

Futures markets have been upset as Republicans and Democrats still disagree on how much the stimulus package should cost and who should get it. The S&P 500 was down and the Nasdaq fell 2% after Facebook was the target of an FTC antitrust lawsuit filed yesterday.

But despite the stock market slump on Wednesday, DoorDash debuted its IPO 78% above the market price of $ 102 per share.

Airbnb will follow suit when its shares go live on Nasdaq today. The company announced in a release earlier this week that it intends to raise up to $ 3.1 billion in an IPO to give the company a fully diluted valuation of around $ 42 billion.

Funded by AAX

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