Wednesday 28 September 2022
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‘Extreme demand’ for BTC at $20K creating new support levels: Glassnode

“Extreme” demand at the $20,000 price point for Bitcoin (BTC) appears to have forced the coins back into the hands of investors who care less about price while creating a new realized price level. In the latest The Week OnChain Newsletter published on Monday, Glassnode’s UkuriaOC pointed to “extreme demand” around the $20,000 region, noting that each psychological price level from $40,000 to $30,000 to $20,000 creates a new group of short-term holders (STHs). The Glassnode analyst noted that much of the supply that new STHs bought during that drawdown has not been sold even though prices are significantly down. This may be due to less price-sensitive buyers or those who care more about Bitcoin fundamentals than investment gains, driving demand. Between late April through June, the BTC price has fallen 55% from $40,000 to a low of about $18,100, according to CoinGecko. Glassnode wrote that this suggests the newly-minted STHs are price insensitive buyers with more confidence in Bitcoin,..

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Institutional investor sentiment about ETH improves as Merge approaches

Ethereum prices may have dipped again today, but there are signs that professional investors are warming to the asset as the highly anticipated Merge draws closer. In its digital asset fund flows weekly report, fund manager CoinShares reported that Ethereum-based products saw inflows for the third consecutive week. There was an inflow of $7.6 million for institutional Ethereum funds, whereas those for Bitcoin continued to outflow with a loss of $1.7 million. Referring to the Ethereum funds CoinShares stated: “The inflows suggest a modest turnaround in sentiment, having endured 11 consecutive weeks of outflows that brought 2022 outflows to a peak of US$460M.” It added that the change in sentiment may be due to the increasing probability of the Merge happening later this year. The Merge is a highly anticipated Ethereum upgrade that changes its consensus mechanism from proof-of-work to proof-of-stake. It is currently preparing for one final testrun and the Merge proper is expected before ..

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Liquidators can subpoena 3AC founders despite ‘tricky issues’ with crypto assets

A United States (U.S.) court has given liquidators permission to subpoena the founders of crypto investment firm Three Arrows Capital (3AC), including Su Zhu and Kyle Davies. According to a report by Law360 on July 12, U.S. Bankruptcy Judge Martin Glenn issued an order on Tuesday allowing the subpoenas after being told by the counsel for the liquidators that the founders' whereabouts are unknown and there were fears they could be selling off tens of millions in assets. The counsel, Adam Goldberg, said he didn’t know the current location of Zhu or Davies, alleging the duo have not provided "meaningful cooperation" with the liquidators. Goldberg raised concerns that 3AC may be selling assets by pointing to media reports that a Singapore property worth “tens of millions” was being sold by Zhu. A liquidator’s job is to assess the value of an insolvent company or individual and sell the assets in order to fulfill unpaid debts. Liquidators may have trouble collecting 3AC’s crypto assets..

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California regulator investigating crypto interest accounts

The California Department of Financial Protection and Innovation (DFPI) has warned consumers to “exercise extreme caution” when dealing with interest-bearing crypto-asset accounts. The DFPI stated that it is investigating multiple crypto interest account providers to determine whether they are “violating laws under the Department’s jurisdiction.” In a July 12 note, the DFPI emphasized that crypto-interest account providers “are not governed by the same rules and protections as banks and credit unions” and that some platforms are “preventing customers from withdrawing from and transferring between their accounts.” “The Department warns California consumers and investors that many crypto-interest account providers may not have adequately disclosed risks customers face when they deposit crypto assets onto these platforms.”“Consumers are encouraged to exercise extreme caution before responding to any solicitation offering investment or financial services,” the DFPI added. The DFPI also ..

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Bitcoin to make new all-time-highs within 24 months: Coinshares CSO

Bitcoin (BTC) may have further to fall, but Coinshares chief strategy officer Meltem Demirors believes the top cryptocurrency will reach new all-time highs within the next 24 months. Speaking on CNBC’s Squawk Box on July 11, Demirors noted that Bitcoin has always been a “cyclical asset” with drawdowns from peak to trough at 80 to 90% historically. With Bitcoin currently sitting at about 65% down from its all-time highs in November 2021, Demirors believes “there is still room for some downward correction.” However Demirors noted there has been strong support around $20,000 and that she did not expect Bitcoin to fall below $14,000. She predicted the pain would be a distant memory by 2024, saying: “In the next 24 months, we will see new all-time highs in Bitcoin.”Bitcoin is currently priced at $19,401, down 2% in 24 hours and down 72% from its all-time high. A reversal may be some time off however, given Demirors can see “no near upside catalysts” — which could signal more pain in store..

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