Sever Silaghi Venture Capitalist in Crypto Markets

Sever will share some insights about the crypto markets:

Investors wasted no time on Monday, pushing the stock market higher and consolidating gains from the previous week. Although the Nasdaq Composite did not close at a record high, it posted the most gains, while the S&P 500 and Dow Jones Industrial Average hit new records despite small advances on Monday. 

investors poured a record $1.47 billion into digital asset investment products last week, propelled by a surge in cryptocurrencies and the introduction of the ProShares bitcoin futures exchange-traded fund. 

Bitcoin-focused funds accounted for 99 percent of last week’s inflows. Inflows into bitcoin-focused funds were $70 million the previous week.

Many investors are keeping a closer eye on other segments of the market. Cryptocurrencies, in particular, have been performing exceptionally well recently, with Bitcoin leading the charge and rising into record territory above $60,000. That’s excellent news for a slew of cryptocurrency stocks whose business strategies are predicated on a robust cryptocurrency market, and Coinbase Global has had the most positive impact recently. Coinbase has soared to its highest levels since shortly after its initial public offering, and many are hopeful that it may continue to expand on its recent gains. We’ll put Coinbase’s gains into context below and see if it can maintain its momentum. 

Perhaps most crucially, Coinbase benefits from increased use of Bitcoin and other crypto currencies because it provides ancillary services such as institutional custody. For example, shares of Bakkt Holdings more than tripled on Monday following Mastercard’s announcement that it will collaborate with the digital asset platform and payment technology provider Fiserv to simplify the integration of fiat currency-based and digital asset-based payments. Again, despite the fact that Bakkt is potentially a direct rival to Coinbase, investors appear pretty pleased with the progress achieved by the crypto industry in convincing conventional banking companies to embrace cryptocurrencies.

The bitcoin dominance ratio, or the ratio of bitcoin’s market value to the whole cryptocurrency market, fell to 45 percent last week. The drop in the dominance ratio is a result of various cryptocurrencies’ recent outperformance, including ETH and SOL. 

Some traders are beginning to diversify their holdings into altcoins, indicating a growing willingness for risk. “Overall, we are structurally long BTC, ETH, and the majority of layer 1 assets such as ALGO and SOL,” cryptocurrency trading firm QCP Capital stated in a Telegram discussion. 

However, is the shift to cryptocurrencies sustainable? 

The chart below illustrates the bitcoin dominance ratio, which has increased significantly since hitting a low of 40% in mid-September. In 2018, before to the onset of the crypto bear market, a similar situation occurred. At the time, the bitcoin dominance ratio increased as investors shifted their focus away from altcoins and toward bitcoin’s superior safety.


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Country: Romania