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Are Small Cap Crypto Assets Rebounding A Sign Risk Appetite Returning?

The crypto market just saw some slight recovery, but the performances are upside down. Opposite to the way sellouts usually play out, the Bitcoin dominance dropped dramatically as the asset is underperforming the Small Cap index. From last November’s $3 trillion market cap, the crypto market is now down to around $800 billion: Smaller Altcoins Make A Strong Comeback Last week the crypto market saw its bottom, followed now by some slight recovery. As per Arcane Research’s latest weekly report, the smaller altcoins have also been seeing red numbers with the Small Cap index shedding 27%, but it has been the best performer overall. In contrast, Bitcoin had dropped 35%. Through this small window of relief during June, we have seen the blue-chip coin underperform all other indexes. As a result, BTC’s dominance in the market fell -1,51% this week to 43,5% while Ether fell -0,31. The latter has been declining since May from 19.5% to 15%. What’s Making This Crypto Winter Colder The report notes that the primary driver of this crypto crash has been the hedge fund Three Arrow Capital (3AC) collapse. Having invested over $200 million in Luna Foundation Guard’s token sale, 3AC’s liquidity ended up being wiped out and its margin call was the last straw for the already pressured market. Related Reading | How Long Will The CryptoWinter Last? Cardano Founder Provides Answers As per the Wall Street Journal, the crypto hedge fund hired legal and financial advisers to help work out a solution for its investors and lenders. The firm is looking for a way out, “including asset sales and a rescue by another firm”. The prognostic is not very positive at the moment, seeing the wave of liquidations and mitigations of losses by crypto exchanges that have followed the collapse. “We were not the first to get hit…This has been all part of the same contagion that has affected many other firms,” Kyle Davies, 3AC’s co-founder, said in an interview. Arcane Research explained that “In periods of insolvency, creditors unwind the most liquid assets first, which is likely the root cause of BTC and ETH’s relative underperformance in the last week.” The report adds that “illiquid altcoins are more challenging to sell at size, particularly during pressuring times, which explains why smaller coins have experienced less excessive selling pressure in the last week”. Meanwhile, Microstrategy CEO Michael Saylor described the events around this winter as a “parade of horribles” in which the consequences of lack of regulation in the crypto field have made it possible for wash trading and cross-collateralized altcoins to weigh down on Bitcoin. “What you have is a $400 billion cloud of opaque, unregistered securities trading without full and fair disclosure, and they are all cross-collateralized with Bitcoin.” “The general public shouldn’t be buying unregistered securities from wildcat bankers that may or may not be there next Thursday,” Saylor added, slamming at the recent collapses and suggesting that future actions by regulators could prevent the level of volatility that BTC is now experiencing. Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

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Billionaire Mark Cuban Predicts Mass Die-Off of Crypto Projects As Industry Goes Through Same Phase As Internet

Bitcoin is down over 7% in the last 24 hours in yet another week of heavy losses, and billionaire investor Mark Cuban says the pain might only be getting started for crypto markets. The Shark Tank star tells his 8.6 million Twitter followers that crypto is going through the same phase that the internet did […]

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Crypto News

How Can the Rise in Fuel Price Be Turned Into a Good Investment?

The oil industry has had a chaotic two years. Crude oil prices were down early in the COVID-19 pandemic; nevertheless, the price has now topped $100 per barrel. Moreover, the worldwide benchmark, Brent crude oil, is currently trading above $111 per barrel. There has been a considerable rise in gas prices worldwide because of the rise in oil prices. If prices continue to rise, as many economists predict, it would stifle economic development, induce decreased consumption, and, in some situations, spark political instability. The increasing gasoline costs have already sparked fatal riots in nations such as Kazakhstan, Iran, and Zimbabwe. And, the significant factors for this have been the rebound in fuel consumption since the height of the coronavirus outbreak and supply difficulties in the aftermath of Russia’s invasion of Ukraine. Even analysts at JP Morgan Chase & Co and Bank of America have predicted that the Russian disruption will send oil prices up to $185 per barrel. Reasons for Rising Fuel Prices Oil has had a history of more significant fluctuations in price than any other asset. The Organization of Petroleum Exporting Countries, or OPEC, is the primary driver of oil price changes. Second is the supply and demand rules. Prices fall when supply exceeds demand, and vice versa when demand exceeds supply. The current instability is because of Russia’s conflict in Ukraine, which has caused crude oil prices to climb over $100 a barrel. Further, crude oil prices have risen rapidly over the recent weeks as the US and its western allies implemented severe sanctions on Russia. As a result of this, citizens’ lives are affected due to fuel prices’ direct impact on increasing inflation. Even the cost of other essential products has increased drastically, leaving people devastated. Making the Most of Rising Panic Rising fuel costs are putting economies under a lot of pressure. Many are worried about how it will affect the cost of other essentials rather than focusing on how to benefit from the situation. Some solutions can aid in these situations, and specific DeFi projects, such as Duet Protocol, offer them a unique approach called synthetic asset collateralization. Users have to provide liquidity to the protocol, which will be utilized to generate synthetic assets. For example, a user can provide liquidity and choose to mint dWTI, a synthetic asset whose price is pegged to WTI crude oil. And with this asset, users can earn rewards and other utilities within Duet’s ecosystem. Moreover, the platform allows users to mint synthetic assets like Oil futures, stocks, commodities, ETFs, Indexes, and Real-estate by providing capital to its reserve. These assets, represented as dAssets, can be traded in swaps (DEX), staked to earn rewards, or held in wallets to gain exposure. And, the benefits of holding them instead of their physical equivalents is that they provide greater liquidity, high-speed transactions, easy accessibility, transparency and low transaction fees. Minting Synthetic Assets on Duet Protocol Duet’s Synthetic assets are divided into two categories, stablecoin and dAssets(synthetic assets including but not limited to synthetic index, synthetic commodities, synthetic real estates, synthetic inverse asset, synthetic leverage asset, etc).  Currently, dUSD, dWTI and dXAU are the only dAssets supported with more of them coming soon. The process of minting these assets includes users providing collateral. Duet accepts more than a dozen high-quality assets such as wBTC, ETH, USDT, DAI, LTC, etc. as collateral. Interestingly, Duet Protocol accepts assets unique in the DeFi world as collateral. It includes LP tokens in large swap protocols and deposit certificate tokens in the credible lending protocols to enhance the efficiency of users’ funds and the composability of protocols. While minting Synthetic assets is just one part of the protocol, the platform will also facilitate the listing of creative synthetic assets, such as synthetic stablecoins that track the inflationary level and NFTs. Anyone will be able to list these assets permissionless with the help of oracle providers like Chainlink, Band or Uniswap. This makes Duet Protocol the infrastructure for collateral treasury, satisfying liquidation demands while also assisting with regulatory compliance. In addition, Duet will create a unique market-making mechanism using synthetic assets with high liquidity and trade volume. This eliminates the need to incentivize liquidity providers with tokens and allows for arbitrage between TradFi and DeFi to sustain the protocol’s liquidity. And, as a result, all “buying orders” on-chain will be dealt directly. Volatility Is All That Matters The best investments are made during volatile times. Economic conditions keep fluctuating for various reasons, and one should take advantage of these opportunities. The current state of rising fuel prices may be an ideal time to invest in some assets. And, synthetic assets from Duet Protocol, may be worth considering, given its rewarding mechanism. The current war scenario and interest rate hikes may last for a long time, but it is up to people to seek out and grab opportunities.  

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Polkadot (DOT) vs. Cosmos (ATOM): Coin Bureau Looks at Two Fast-Rising Ethereum Competitors

A popular crypto analyst is looking under the hood at a pair of Ethereum (ETH) alternatives to see which one might come out on top. In a new strategy session, pseudonymous Coin Bureau host Guy updates his 2.03 million YouTube subscribers about his expectations for cross-chain interoperability protocol Polkadot (DOT) as well as Cosmos (ATOM), […]

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World’s Largest Asset Manager Debuts Blockchain ETF

ProShares Bitcoin ETF To Go Live Tomorrow, Marking Major Milestone For Crypto World

BlackRock has launched an ETF to enable investors to gain exposure to the growing blockchain space. The asset managers have also tipped the blockchain industry to drive irreversible change in various fields. The BlackRock Blockchain And Tech ETF On Wednesday, trillion-dollar asset manager BlackRock launched a blockchain ETF as part of their megatrend lineup. BlackRock […]

Bitcoin Crypto News

Number Of Bitcoin Millionaires On The Rise As Accumulation Continues

Bitcoin millionaires are now a widely understood term. This has grown from the massive surge in the price of the digital asset which has continued to decrease the number of BTC required to be a millionaire. A number of bitcoin millionaires had lost their status when the price of the digital asset had declined. However, as bitcoin is recovering, these millionaires have been growing in number but data shows that the increase in price is not the only driver. Accumulation Is The Name Of The Game The price of bitcoin had declined significantly following the Russian invasion of Ukraine. This had seen a considerable number of bitcoin millionaires lose their status. But since then, there have been more investors being added to the millionaires’ list. Related Reading | Bitcoin Futures Basis Nears One-Year Lows, How Will This Affect BTC? Santiment notes in a new report that the number of bitcoin addresses had been on a steady increase since the way between Russia and Ukraine had started. Not only had the number of addresses been on the rise but whale addresses have been rising. These addresses which hold between 10 to 100k BTC on their balances which were either existing or new had been able to reclaim their millionaire status. 🦈🐳 The number of #Bitcoin addresses has been increasing since the #RussianUkrainianWar began. Since then, there are 1,629 shark and whale addresses holding between 10 to 100k that are either new or have returned to this millionaire (or above) status. 📈https://t.co/08ytC3aMhW pic.twitter.com/9Ts70gdfHJ — Santiment (@santimentfeed) April 27, 2022 Usually, the obvious culprit for the number of bitcoin millionaires growing can be a surge in price. This drastically increases the value of the tokens held. However, with the price of BTC now making any significant recoveries recently, there is another reason for this and that has been accumulation. The chart from Santiment shows that these investors have been accumulating BTC at an accelerated rate. This accumulation had seen a sharp increase at the end of March before falling but the whales are once again picking up momentum as the month of April draws to a close. So instead of regaining their millionaire status by waiting for the price of BTC to go up, these whales have been buying more coins. This also follows the recent trend of daily active addresses picking up on the network. Network transaction volume is also up in this regard.  Bitcoin Turning Bullish Bitcoin had lost its footing at $40,000 earlier in the week. This had caused a stir among bears as they tried to drag down the price of the asset. BTC had continued to hold above its $36,000 support level, serving as a bounce point for its recent recovery. BTC trading in the mid $39,000s | Source: BTCUSD on TradingView.com Currently, bitcoin is trading above the 5-day moving average. An indicator that proves that investors are now willing to purchase the digital asset higher than the prices they bought days ago. This can often spell a shift in sentiment for investors but only for the very short term. Related Reading | Bitcoin Drops To $38K After Amazon Retraction On Accepting BTC Payments BTC still needs to hold above $39,500 though as this remains a critical spot for it. A failure to secure the price above this point could see the digital asset retest the $35,000 in the coming days before any sign of recovery is registered. Featured image from Altcoin Buzz, chart from TradingView.com