Traditional financial giants have started to encrypt their layout one after another.
Author: Qin Xiaofeng
The OKX Ouyi market shows that in just one night, Bitcoin soared by US$2,000, breaking through US$29,000 again, with a 24-hour increase of 7.1%, leading the rise of major altcoins. Grayscale Bitcoin Trust GBTC has risen by 27% in the past two trading days (June 16 and June 21), returning to the high point level in mid-April this year.
Interestingly, this round of market rise occurred after BlackRock, Fidelity and many other traditional financial giants’ recent intensive encryption operations, so the old narrative of “institutional entry” in the last round of bull market was frequently mentioned again, but this Will it be the start of a new bull market?
Market review: Shanzhai is sluggish, BTC leads the rise
Due to the recent intensification of supervision and the withdrawal of market makers, the encryption market has performed poorly. Bitcoin even fell below $25,000 last week, setting a record low since mid-March. The market has continued to mourn and Bearish sentiment is strong.
However, in just one week, Bitcoin regained lost ground, rising from $24,800 to over $29,000, an increase of nearly 17% in a week. Especially last night, BTC made rapid progress, rising more than $2,000 overnight, a 7.1% increase in 24 hours. Many crypto investors exclaimed "Niuhui" after waking up, and major communities have also become active.
Unlike the strong performance of Bitcoin, the altcoins appear to be relatively sluggish. In the past 24 hours, ETH has only increased by 4.3%. Among the top ten tokens by market value, only ADA has increased (7.3%) more than BTC. Among the top 50 tokens by market value, there are also STX(21.3%), OP(15.7%), HBAR(9.5%) %) and ARB (7.8%) performed well, and the rest of the tokens did not rise as much as BTC.
In fact, the ALT/ BTC exchange rate has been falling continuously in the past two months, and the trend of Bitcoin has been stronger than other mainstream currencies. In terms of market share, the current BTC share has risen from 45% in early May to 47.37%, while ETH has been hovering around 18%.
Affected by the upward trend of the overall market, the current total market value of encryption has risen to US$1,171.8 billion, an increase of 5% in 24 hours; since the beginning of the year, the total market value of encryption has increased by US$340.1 billion, a cumulative increase of 40.8%. Encryption users' trading enthusiasm has increased significantly. Today's panic and greed index is 59 (49 yesterday), and the level of greed has risen compared with yesterday, and the level has changed from neutral to greedy.
In terms of Derivatives trading, Coinglass data shows that in the past 24 hours, the entire network has liquidated 155 million US dollars, of which BTC liquidated 72.79 million US dollars, ETH liquidated 25.28 million US dollars, and a total of 43,048 people became liquidated victims.
In addition, the discount of Grayscale products has improved. The discount rate of GBTC's net asset value is currently 33.5%. The price of GBTC has risen by more than 27% in the past five trading days ; Spot price increases. The trust discount rates of other mainstream currencies are as follows: ETH(-46.84%), ETC(-55.64%), LTC(-42.43%), BCH(-16.67%), ZEC(-10.87%), ZEN (-1.79%) and BAT(-44.38%); there are six positive premium products, namely FIL(+ 278.5%), SOL(+ 178.22%), LINK (+ 100.2%), MANA (+ 93.44%), XLM(+ 53.53%) %) and LPT(+5.54%).
Encryption-related listed companies are also affected by the rising market, and their share prices have generally risen by more than 10% in the past week. Among them, the US compliant encryption platform Coinbase (NASDAQ: COIN) stock price rose 2.7% today to tentatively at $57.09; the stock price of MicroStrategy (NASDAQ: MSTR), the largest listed company with bitcoin holdings, rose 6.8% today to tentatively at $313.4.
Institutions enter the market and build a bridge to encryption
Regarding the current round of market rise, one theory is a short squeeze. Intensified regulation over the past two weeks and Bitcoin's fall below the $25,000 support level have fueled short-selling sentiment. According to Coinglass data, the long-short ratio of BTC reached a minimum of 0.94 on June 13. In the market sentiment survey, 36% of the respondents expressed “Bearish”, 15% of the respondents expressed “extreme Bearish”, more than half, only 29% % of respondents are Bullish.
In addition, the good news is that the traditional financial giants have taken intensive actions in the near future, applying for Bitcoin ETFs and trust funds and launching encrypted trading platforms, opening up the entry channel for traditional funds.
On June 15, BlackRock, which has an asset management scale of US$8.59 trillion, took the lead. Its iShares department submitted the application documents for the iShares Bitcoin Trust (Bitcoin Trust) to the SEC. Affected by this news, BTC rose by nearly 5% on the day and once touched $26,500, stopping the downward trend.
Anthony Pompliano, co-founder of Morgan Creek Digital, commented that BlackRock’s actions may attract Wall Street giants to imitate, many Wall Street companies may launch fast-following products to compete with BlackRock, and media attention may lead to capital inflows bitcoin.
The development of the market has verified Anthony Pompliano's prediction. Today asset management company WisdomTree submitted an application for a Bitcoin trust fund, and asset management giant Invesco (Invesco) also resubmitted an application for a spot Bitcoin ETF.
In addition, Netcom Fidelity has also started encryption operations. Arch Public co-founder Andrew Parish broke the news that Fidelity, the world's third largest asset management company with $4.24 trillion in assets under management, may be considering acquiring Grayscale and applying for a Bitcoin spot ETF. This news has not been officially acknowledged by Fidelity.
Although Fidelity has not yet applied for a Bitcoin ETF, the encrypted exchange EDX Markets it invested in officially announced yesterday that it will be officially launched, intending to seize the market at the moment when Coinbase and Binance are being sued by regulators. It is understood that EDX Markets is a Non-custodial exchange that does not directly deal with customers' digital assets or directly serve individual investors, and only provides four cryptocurrency transactions, including BTC, ETH, LTC and BCH- these assets are not Recognized as a security by the US SEC.
Looking at the investors of EDX Markets, there are top traditional institutions behind them, including Citadel Securities (asset management scale of 35 billion US dollars), Charles Schwab, Sequoia Capital, Paradigm, Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and institutions such as HRT Technology.
For professional investors, the entry of large traditional financial institutions not only has a good demonstration effect, but they are also more willing to allocate investment products to investment tools supported by large traditional financial institutions. Institutions build bridges into the crypto world.
Of course, it seems too early to say that the bull market has started. After all, the external financial environment has not improved significantly, and it is difficult for encrypted finance to go out of the independent market independently.
