Bitcoin supply crunch and institutional FOMO: Crypto market-maker breaks down the bull run

  • 📰 KitcoNewsNOW
  • ⏱ Reading Time:
  • 119 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 51%
  • Publisher: 78%

Coin Coin Headlines News

Coin Coin Latest News,Coin Coin Headlines

The Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage of important industry events and analyses of market-affecting developments.) exchange-traded funds in the U.S.

“There has been an uptick in activity, primary listings are going parabolic, and the initial listing multiples on price discovery are three times higher than where they were a year ago,” he said. “Volumes are up more than 150% from last year. Price discovery used to last for a day and a half – now it's six days long. So the metrics are green.”

He said this has had a “trickle-down” effect that has also helped boost the prices of altcoins, and which shows no signs of slowing. This is especially true when considering that there aren’t enough Bitcoins for every millionaire on the planet to own one Bitcoin, he noted. “These large institutions are very slow-moving vehicles,” he said. “When you think banks, mutual funds, and pension funds, those are like huge animals that are super slow to move. And it takes time to train their teams internally to offer those products to their clients and for clients to become accustomed to those products. So we haven’t seen all the potential that ETFs hold yet.”

Delta hedging involves the recipients of options hedging the value of those options as a form of protection. “The strategy involves selling as the price goes up for a call option, and buying as the price goes down. If you think about this from a liquidity standpoint, it’s going to further increase the volatility,” he said.

When asked what could be the source of the next downfall, Benayoun said there are two kinds of mindsets when it comes to crypto, and Bitcoin more specifically. “Two cycles ago the ATH didn’t get hit for several months out, and last cycle it took six months after the halving to hit a new high,” he said. “Now, we’ve hit a new high ahead of the halving, which is unprecedented.”

“Having these competing mechanisms is something that we’ve never seen before, so it’s interesting to see what’s going to happen here,” Benayoun said. “Overall, I think the halving is very positive news for Bitcoin and for the rest of the industry.” “This is a segment of the market that has been vastly misunderstood by the industry, especially prior to 2017,” he said. “There was a lot of manipulation going on by so-called market makers, and there were a lot of predatory practices. There were some pretty big named market makers out there that had established certain predatory models, and that got the community concerned.”

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 13. in COİN

Coin Coin Latest News, Coin Coin Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Crypto’s $800 Billion Rally Widens Beyond Record-Setting BitcoinSmaller cryptocurrencies are starting to pull ahead of record-setting Bitcoin as traders bet the tokens are next in line to test all-time peaks.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Traders brush off CPI to buy stocks and crypto as Bitcoin consolidates below $72kThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Bitcoin ETFs smash inflows record, crypto sentiment in ‘extreme greed’ territoryThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Bitcoin Miners Are Devouring Energy at a Record Pace During the Crypto RunupAfter recovering from a near-death experience during the most recent crypto winter, Bitcoin miners are back in survival mode — spending billions of dollars on equipment and drawing energy at a record pace ahead of an update in the digital currency’s code that threatens revenue streams.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Bitcoin: Is following BTC whales even profitable?Whales trading Bitcoin at $40.5K missed profit opportunities, potentially causing short-term downward pressure.
Source: CryptoAmb - 🏆 22. / 68 Read more »

Gold-backed ETFs see outflows as Bitcoin gains investment demandThe debate between gold and Bitcoin intensifies as gold-backed ETFs experience outflows while Bitcoin gains investment demand.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »