Bitcoin Bulls Are Storming Wall Street’s Crypto Trading Desks

  • OTC desks across crypto are seeing bulls surge the market
  • That’s a sharp reversal from the end of 2018, a number of trading firms said

 

Wall Street’s trading desks offer a glimmer of hope for the floundering cryptocurrency market.

Buying pressure has increased at many of the so-called over-the-counter trading desks across the crypto world. The bullish sentiment mimics recent price action across the spot exchange market for crypto and is a sharp reversal from the environment at the end of 2018, numerous trading firms said.

One of the largest over-the-counter trading firms in crypto, Cumberland, tweeted Tuesday that the imbalance between buyers and sellers spiked by 60% over the last week. “Historically, our OTC trading is relatively balanced between buyers and sellers,” the firm said. “Over the last week, our OTC buy/sell ratio (by notional value) has increased approximately 60% towards counterparties buying.” Again, Cumberland isn’t alone.

Genesis Trading’s CEO Michael Moro said his firm also saw more buy orders flood in relative to the end of 2018 when a sizable number of crypto investors were selling for tax purposes. “I’ll echo Cumberland’s sentiments,” he said in an email. “Year-end saw quite a bit of selling for numerous reasons (e.g. tax loss selling and liquidation of crypto donations).”

“As the year turned, the selling pressure from such activities has subsided, and we have seen more buy-side interest pick up,” he added.

OTC desks oversee billions of dollars worth of institutional crypto trading on a daily basis. And in some respects, OTC trading paints a better picture of where the crypto market is from an institutional perspective as that’s where the largest trades are executed. As Monica Summerville, director of fintech research at capital markets consultancy Tabb Group noted in Forbes, “The big deals have to go OTC. A lot of the exchanges limit the order size, so you have to break up your orders, and that’s just fatal.” Summerville estimates that the OTC market is approximately two to three times larger than the trading activity across retail exchanges, including Kraken, Coinbase, and Binance.

Elsewhere, Galaxy Digital also says the tide has turned. “Galaxy’s trading desk saw robust tax-driven trading activity into year-end from asset manager and treasury accounts,” the firm said in a statement. “In early January, much of the flow reversed to buy back previously sold assets. Additionally, we have seen increased buying from Asia and EMEA traders, while some active sellers took a pause to start the year.” It’s a similar story at New York-based Paxos.

The firm, which operates both an OTC desk and an exchange, reports bullish trading activity in January.

“The nature of most of our trading flow so far this year has been buy tickets from emerging market traders,” said Paul Ciavardini, head of OTC trading at Paxos.

As for Circle’s OTC desk, the firm saw elevated sell pressure in December 2018 but that has “come back down in Jan 2019,” a spokesperson said in an emailed statement. “Sells by notional were slightly higher in December, but have started to reverse in early January,” the statement added. “Separately, we are seeing greater activity in trading alts and stablecoins in the first weeks of 2019.”

Still, there’s always one outlier. DV Chain CEO Garrett See said that his firm hasn’t seen a material difference between activity this month and the end of 2018.

“In January, it’s a pretty even between buyers and sellers, with marginally more buys than sells, but not materially more,” he said.


Source
Author: Frank Chaparro
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Bitcoin Price Live: Massive One Hour Candle Takes BTC Above $4,000

Bitcoin continues its recent price rally, topping $4,000 on Thursday, December 20, 2018. The top-ranked cryptocurrency is up by more than eight percent over the last 24 hours in what is a sixth straight day of positive price movements.

Six in a Row for Bitcoin

The relief rally for Bitcoin is currently in its sixth day with Thursday’s surge second only to Monday’s price gain. A large one-hour green candle sees the top-ranked cryptocurrency breakthrough the $4,000 price barrier for the first time in more than two weeks.

On Wednesday, Ethereum World News reported on BTC topping $3,800 and the possibility of a “Santa Claus rally.” BTC is currently up more than 15 percent from its 2018 low of $3,200. This figure is even the cryptocurrency’s lowest price level since September 2017.

The next question will undoubtedly be how long can BTC sustain the upward momentum. Since 2018, the cryptocurrency market as a whole has been in the wars of a prolonged bear market. In mid-November 2018, the price fell even further to levels not reached since 12 months prior.

Trend Reversal or Short Squeeze

Some analysts like Mati Greenspan, Senior Market Analyst at eToro believe the relief rally is due to traders liquidating short positions with the holiday season approaching. With many indicators showing BTC is the oversold position, it seems a trend reversal was inevitable.

Now, BTC has to navigate through an initial resistance just above the $4,000 price mark. Back in mid-November when BTC fell below $5,000, it settled just above the $4,000 level. It stands to reason that there will be some resistance at this price mark during any upward movement.

Beyond this level, the $4,200 and $4,400 psychological levels could also prove critical. If BTC manages to resist rejection at these price marks, then the top-ranked cryptocurrency could make a run for the upper-$4,000 range.

Altcoin Recovery Continues

Altcoins are also not left out in the upward price trajectory. Bitcoin Cash is again leading the charge for the top-ten cryptocurrencies. The fourth-ranked virtual currency is up by almost 40 percent in the last 24 hours.

Ethereum which recently regained three-digit price status is looking to add more gains in a quest to recover some of the massive losses posted in 2018. The third-ranked coin has added about $5 more from Wednesday to reach $110.


Source
Author: Osato Avan-Nomayo
Image Credit inc Shutterstock, Coinmarketcap.com, and Coin360

Weiss Ratings Declares Now Best Time to Buy Bitcoin

Financial market analyst firm Weiss Ratings claims that at present, purchasing Bitcoin is one of the “best buying opportunities of the year”.

Bullish comments

Despite what every headline relating to the cryptocurrencies might be saying, Weiss Ratings has signaled an opportune moment for Bitcoin purchases.

For those who have been following the crypto winter decline, these words are confounding in every sense. That said, there may still be some significant merits to the firm’s words. Within the crypto-market facet of the blockchain industry, the Weiss Ratings which observe and analyze financial markets from what they claim to be an unbiased perspective are something akin to Nostradamus for the cryptocurrency industry due to the notorious bluntness of their reports on financial markets.

Past claims

In January, as the crypto-market highs began to taper off, the firm published its first cryptocurrency ratings, which naturally garnered attention from every corner of the crypto-globe and even gave the markets a minor stir. At the time, Weiss Ratings marked Bitcoin down as a C+ (fair) and Ethereum as B (good). These scores were reportedly based on “thousands of data points on each coin’s technology, usage and trading patterns”, after which, Bitcoin was scored highly which it owes thanks to “security and widespread adoption”.

However, there were still drawbacks such as network bottlenecks and high transaction costs that prevented it from beating out Ethereum who gained the B rating due to “more readily upgradable technology at better speed”.

For investors at the time, the ratings appeared as a wink and a nod to those who had made the right choices. However, as the year went on, Weiss Ratings began to espouse bearish sentiments. In September, as the declining crypto-markets began their unprecedented freefall, Weiss Ratings Tweeted a prediction wrote a tweet predicting that within five years, Bitcoin would lose its dominance to Ethereum.

Current trends have seen cryptocurrency prices wither have suggested that Bitcoin is the stronger asset in its class, however. Currently, it trades at about 15% of its all-time high, while Ether has fallen well below 10%.

In December, the architect of the Weiss Crypto ratings and price prediction model Juan Villaverde spoke in a video interview with a positive outlook for Bitcoin claiming it would “rise from the dead” in 2019. In the video, he also said:

“We’ve seen a lot of progress on the adoption side throughout 2018, and that pretty much guarantees that we will see a bull market again and Bitcoin will make new all-time highs again.”


Source
Author: Eddie Mitchell
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Bitcoin is Bottoming and May Break Out, Experts Say

Robert Sluymer of Fundstrat Global Advisors spoke for CNBC’s Fast Money on Thursday, saying that he believes Bitcoin is bottoming out at USD 7,000 and that it could start rising again as soon as within the next few days. Bitcoin has previously indeed started rising after hitting the USD 7,000 mark, and Sluymer believes this to be the first step in price recovery.


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“Bitcoin is stuck in purgatory,” Melissa Lee of CNBC begins, while Bob Pisani of the New York Stock Exchange says that the current narrow range of around USD 600 is unusual for Bitcoin’s price fluctuations. Bitcoin futures trading volume fell since May, with Asian markets less intimidated than the US ones. The US Securities and Exchange Commission regulatory issues are also considered one of the constraints for cryptocurrency prices recently.

Growing numbers of trading desks for cryptocurrencies are also a surprising turn of events, as this may be the only area where those are rising. Guy Adami, an American trader, TV personality, and professional investor, considers this healthy, as it speaks of the marketplace maturing.

Sluymer, meanwhile, points out that the long-term trend is still technically up when considering the graph of price fluctuation since 2016. All lows were a series of high lows compared to the previous ones. In his opinion, Bitcoin is currently in the bottoming phase, and now it’s at the point where it’s challenging its downtrend, but that it needs to get through USD 7,800 to prove its trend reversal.

As previously reported, according to a popular crypto analyst, Willy Woo, the USD 8,000 support was bound to give up. He thinks that the next support sits near USD 7,000, which may perhaps break if sellers remain in control. Finally, there may possibly be a correction going into the July-September period, followed by an accumulation phase.
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Author: Sead Fadilpasic
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