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Market Wrap: Bitcoin Pushes Past $19.2K; Ether at 3% of BTC Price

Bitcoin is making gains after a strong volume weekend as ether’s percentage of BTC price shows it may have room to climb.

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Dec 14, 2020 at 9:33 p.m. UTC

CoinDesk 20 Bitcoin Price Index

Market Wrap: Bitcoin Pushes Past $19.2K; Ether at 3% of BTC Price

Bitcoin climbed over the weekend to the $19,200 territory. Looking at ether’s price as a percentage of spot BTC, it may be undervalued.

  • Bitcoin (BTC) trading around $19,196 as of 21:00 UTC (4 p.m. ET). Gaining 0.35% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $18,990-$19,323 (CoinDesk 20)
  • BTC near its 10-hour moving average but above the 50-hour on the hourly chart, a flat-to-bullish signal for market technicians.
btcdec14

Bitcoin trading on Bitstamp since Dec. 11.

Source: TradingView

The price of bitcoin reversed course over the weekend from a downward slide, with an upward trend that began on Saturday.

“This weekend, bitcoin demonstrated a V-shaped reversal. After the appearance of such a figure, the growth usually continues,” said Constantin Kogan, a partner at investment firm Wave Financial.

btcdailysixmonthsdec14

Daily spot bitcoin price the past six months on Bitstamp.

Source: TradingView

Over the past 24 hours, the price hit a high of $19,323, according to CoinDesk 20 data, before settling around $19,196 as of press time.

“Quite a strong move over the weekend,” noted Chris Thomas, head of digital assets for Swissquote Bank. “I wouldn’t expect a continuation of 3%-4% a day. We’ll likely test the highs again in the next few days and will be met with a lot more sell orders [from] short- to medium-term whales and institutional traders.”

After a higher-than-expected amount of volume over the weekend, including over $865 million in spot exchange volume Sunday for the eight exchanges tracked by the CoinDesk 20, Monday’s tally is looking lower, at $569 million as of press time.

btcvolumeonemonthdec14

Bitcoin spot volumes on CoinDesk 20 exchanges.

Source: Shuai Hao/CoinDesk Research

“We still see the market challenging the all-time high but there is not a lot of conviction behind it. This can be seen in the lower volumes,” said Joel Edgerton, chief operating officer of cryptocurrency exchange Bitflyer USA. “December normally has lower volumes due to holidays and vacation among Western institutional clients.”

Fewer liquidations in the derivatives market is also helping bitcoin stay steadier. Stalwart futures platform BitMEX, for example, has seen liquidations, the platform’s equivalent of a margin call, dry up in the midst of its regulatory issues. The exchange’s influence in 2020 was previously obvious given the massive amount of sell liquidations that occurred in March when all markets crashed on macroeconomic issues related to the coronavirus.

skew_bitmex_xbtusd_liquidations-56-2

Bitcoin liquidations on derivatives venue BitMEX the past year.

Source: Skew

Since then, however, the BitMEX effect has waned. Bitcoin’s volatility has also flattened out of late, with the 30-day volatility as calculated by CoinDesk Research at 57%, close to where it started 2020 when it was at 53% Jan. 1.

btcvolatility2020dec14

Bitcoin’s 30-day volatility in 2020.

Source: Shuai Hao/CoinDesk Research

“There may be a few more attempts at the highs before the sellers disappear but, importantly, there is enough new volume on the buy side to keep us up around these levels and eventually buy all the sellers offers around $20,000,” added Swissquote’s Thomas.

While bitcoin is up 166% so far this year, it’s ether that is going gangbusters in 2020, up over 346%.

ethvsbtc2020dec14

Bitcoin (gold) performance versus ether (blue) in 2020.

Source: TradingView

Cryptocurrency veterans like Henrik Kugelberg, an over-the-counter trader, expect occasional peaks and troughs while remaining steadfastly mega-bullish. “Correction of course,” he said, “on the way upwards on rocket fuel!”

Ether at 3% of bitcoin’s price

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Monday, trading around $586 and climbing 0.14% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

Ether’s price as a percentage of the spot value of bitcoin is hovering around 3% according to data aggregator Skew. This is after the native asset of the Ethereum network started the year at below 2% of the price per 1 BTC and going as high as 4% on Sept. 1 during the fervent period of popularity for decentralized finance, or DeFi, in 2020.

skew_ether_price_as__of_bitcoin_price

Ether price as a percentage of bitcoin price over the past year.

Source: Skew

John Willock, chief executive officer of Tritum, a diversified crypto services provider, is highly bullish on ether. He expects more institutional participation on the Ethereum network in 2021 and noted the increase in address activity in 2020.

“In the next six months, I think the most interesting metrics to follow will be large accumulations in addresses that can be attributed to institutional buyers soaking up supply, and proving long-term upward price expectations from educated participants,” Willock told CoinDesk. ”Things like [nonfungible tokens], DeFi and various other integrations this year that have utilized Ethereum as a layer but obfuscated it from users.”

Other markets

Digital assets on the CoinDesk 20 are mixed Monday, mostly red. Notable winners as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

Equities:

Commodities:

  • Oil was up 0.78%. Price per barrel of West Texas Intermediate crude: $46.93.
  • Gold was in the red 0.59% and at $1,828 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield fell Friday dipping to 0.898 and in the red 0.90%.

https://www.coindesk.com/coindesk20

The CoinDesk 20: The Assets That Matter Most to the Market

Source: https://www.coindesk.com/market-wrap-bitcoin-climbs-ether-undervalued

market-wrap:-bitcoin-pushes-past-$19.2k;-ether-at-3%-of-btc-price

Coindesk

World’s Oldest Central Bank Extends Digital Currency Test Till 2022

Riksbank said it would continue developing a technical solution for a central bank-issued e-krona under its pilot project.

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Sweden’s Riksbank said it would continue work with Accenture on a potential e-krona digital currency until next year.

(Mario Ortiz/Shutterstock)

Feb 17, 2021 at 10:12 a.m. UTC

World’s Oldest Central Bank Extends Digital Currency Test Till 2022

The world’s oldest central bank, Sweden’s Riksbank, is to extend its pilot project for a potential central bank digital currency (CBDC) for another 12 months.

According to a press release on Friday, the project, which is being carried out with assistance from professional services firm Accenture, will run until February 2022.

The Riksbank said it would continue developing a technical solution for a central bank-issued e-krona “as a complement to cash,” with the primary objective being for the bank to increase its knowledge around the technology.

For 2021, the institution will continue developing its potential digital currency offering with a focus on performance and scalability. Testing offline functions and bringing external participants into the test environment is also on the table.

The project has raised some concerns from Sweden’s commercial banking sector over the viability of a sovereign CBDC and how that would impact the entire banking system.

There is no final decision over the issuance of the e-krona despite strong lobbying from the central bank to government last year. But with traditional cash seeing falling use, even more so during the coronavirus pandemic, Sweden has been mulling a switch to the CBDC.

However, questions still remain over the digital currency’s ultimate design and underlying technology, according to Friday’s release.

Source: https://www.coindesk.com/sweden-central-bank-digital-krona-extension

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Bitcoin Mining: Wasted Energy or a Better, Greener System?

Harry Sudock, VP of strategy at GRIID Infrastructure on the modern energy landscape, how far we’ve come and where bitcoin mining fits.

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Is it wasteful to use electricity mining bitcoin? As the Biden Administration settles into power with an ambitious agenda around clean energy, notably promising to eliminate carbon emissions from the US power generation sector by 2035, the question of bitcoin mining and it’s ever-growing use of energy bubbles up once more.

In this episode of ‘On Purpose, With Tyrone Ross,’ Harry Sudock, VP of strategy at GRIID Infrastructure joins the show to discuss the modern energy landscape, how far we’ve come and where bitcoin mining can fit into a sustainable energy system.

The greatest number of people living in poverty are children, we need to change that. If you can, get involved and give back to NoKidHungry.org. Love and Light. I appreciate you!

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Source: https://www.coindesk.com/podcasts/on-purpose-with-tyrone-ross/bitcoin-mining-harry-sudock

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Deutsche Bank Quietly Plans to Offer Crypto Custody, Prime Brokerage- CoinDesk

The bank’s game plan was hidden in plain sight in a widely overlooked report by the World Economic Forum.

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The bank’s game plan was hidden in plain sight in a widely overlooked report by the World Economic Forum.

Deutsche Bank headquarters in Frankfurt, Germany (Thomas Lohnes/Getty Images)

Feb 13, 2021 at 2:10 a.m. UTCUpdated Feb 13, 2021 at 2:18 a.m. UTC

Deutsche Bank Quietly Plans to Offer Crypto Custody, Prime Brokerage

Deutsche Bank has joined the growing ranks of large financial institutions exploring cryptocurrency custody, with aspirations to offer high-touch services to hedge funds that invest in the asset class.

The Deutsche Bank Digital Asset Custody prototype aims to develop “a fully integrated custody platform for institutional clients and their digital assets providing seamless connectivity to the broader cryptocurrency ecosystem,” according to a little-noticed report by the World Economic Forum, host of the annual gathering of muckety-mucks in Davos, Switzerland.

In a passage buried on page 23 of the December 2020 report, Germany’s largest bank says it plans to create a trading and token issuance platform, bridging digital assets with traditional banking services, and managing the array of digital assets and fiat holdings in one easy-to-use platform.

Big banks are now announcing plans to enter crypto custody on an almost daily basis, with Bank of New York Mellon, the world’s largest custodian bank, joining the party earlier this week.

U.S. banks were given some regulatory clarity thanks to last year’s interpretation letters from the Office of the Comptroller of the Currency. In Germany, firms are queuing up to get their hands on special crypto custody licenses from the country’s regulator, BaFIN.

Deutsche, the world’s 21st largest bank, said it aims to “ensure the safety and accessibility of assets for clients by offering an institutional-grade hot/cold storage solution with insurance-grade protection.” No specific cryptocurrencies or tokens are mentioned.

The digital asset custody platform would be launched in stages. It would eventually provide clients with the ability to buy and sell digital assets via a partnership with prime brokers (which act sort of like concierges for hedge funds), issuers and vetted exchanges.

The bank says it would also provide “value-added services such as taxation, valuation services and fund administration, lending, staking and voting, and provide an open-banking platform to allow onboarding of third-party providers.”

The service would be aimed at asset managers, wealth managers, family offices, corporates and digital funds, the bank said.

In terms of a business model, the bank would start out collecting custody fees, it said, later charging fees for tokenization and trading.

Deutsche said it has completed a proof of concept and is aiming for a minimum viable product in 2021, while exploring global client interest for a pilot initiative.

The bank’s press office could not be reached for comment Friday evening. A spokesperson had declined to comment on potential plans for a digital asset custody business when contacted last week by CoinDesk.

Source: https://www.coindesk.com/deutsche-bank-crypto-custody-prime-brokerage

deutsche-bank-quietly-plans-to-offer-crypto-custody,-prime-brokerage--coindesk

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