Crypto Highlights Week #31 – Blockchain Data Shows Bitcoin’s Current Price Floor at $37.3K

Crypto Highlights: Bitcoin forms local bottom at $37.2k, GoldenTree buys Bitcoin, Binance limits services for EU region. These and more updates are in this week’s Crypto Highlights.

Top Headlines of the Week

• Despite regulatory uncertainty in the European region, Germany is allowing institutions to own a certain percentage of crypto assets.

• GoldenTree Asset Management Firm becomes the latest institution to add Bitcoin to its balance sheet.

• An interesting study according to Chinalysis shows that Bitcoin has formed a local bottom at $37.2k.

Top Stories Of The Week

Binance winds down derivatives offerings in three European countries

Binance, a cryptocurrency exchange, said on Friday that consumers in three European countries, including Germany, Italy, and the Netherlands, will no longer be able to trade crypto futures and options.

New users from these countries will no longer be allowed to register Binance accounts to trade crypto derivatives as of today. Binance said it will disclose a date later, and users from these countries will have 90 days from that date to cancel their open holdings.

While the first focus is on the three areas, Binance has stated that it intends to shut down its crypto derivatives trading platform in Europe.

“As the crypto ecosystem evolves globally, we are continually evaluating our products and working with our partners to meet our users’ needs,” said Binance.

Binance has been under increased scrutiny from regulators throughout the world as a result of this decision. The exchange also stopped allowing stock token trading earlier this month.

Binance CEO Changpeng “CZ” Zhao has stated that the cryptocurrency industry is now “pretty highly regulated,” and that the business must “make a significant transition from a technological startup into a financial services company.”

He went on to explain that Binance is aiming to establish physical headquarters in a variety of jurisdictions since regulators want offices and legal entities.

GoldenTree Asset Management is reportedly investing in Bitcoin

GoldenTree, a New York-based asset management business, is said to have added Bitcoin to its balance sheet, however, the size of the alleged investment is unclear.

According to a story published Friday by financial news site The Street, the business, which manages about $45 billion in assets, has acquired some Bitcoin (BTC) but has reportedly avoided other cryptocurrency investments. The magazine said that the BTC purchase followed conversations between executives about employing workers versed with crypto investing, citing two individuals with knowledge of the subject.

Borderless Capital, which previously helped create an accelerator program from Algorand, received financing from the firm’s executives, including founder Steven Tananbaum and partners Deeb Salem and Joseph Naggar. Borderless also took part in a fundraising round for Securitize, a digital asset securities business sponsored by Coinbase.

Other asset management organizations have also begun to dabble in the crypto market. Stone Ridge Asset Management filed a prospectus with the Securities and Exchange Commission (SEC) last week to include BTC in its open-end mutual fund. Horizon Kinetics, a contrarian investing group, encouraged investors to seek exposure to crypto assets to safeguard themselves from currency debasement on Wednesday.

This Weeks Crypto Market Sentiment

Blockchain Data Shows Bitcoin’s Current Price Floor at $37.3K

This week’s crypto highlights market analysis focuses on, data from Chainalysis. Bitcoin, the most valuable cryptocurrency by market capitalization, now has a price floor of about $37,300. The market is maintaining the price floor effectively, according to the blockchain data business, as demand from current whale investors (big bitcoin holders) has returned.

The study stated, “Demand is returning to the market.” “Supply has only become as liquid as it was in December 2020, despite the fact that it has grown more liquid since prices collapsed in May. All of this implies that the market is at the very least in a sideways trend and is unlikely to start a period of significant price decline.”

By estimating the average cost of bitcoin owned by investors who entered the market in the previous 12 months, Chainalysis calculates a temporary bitcoin price floor. Because of blockchain’s transparency, obtaining the data is feasible.

The so-called on-chain price floor, according to Gradwell, is an important indicator for crypto traders and analysts to comprehend bitcoin’s market, which may become very volatile in a short amount of time. “If an investor buys bitcoin at $40,000 and continues to hold, then we know that they value bitcoin at least at $40,000,” Gradwell wrote. “If the price were to go below $40,000, then it would be below their valuation and they may buy more.”

Crypto Mainstream Adoption Of The Week

German law allowing institutional funds to hold crypto comes into effect Aug. 2

German institutional funds will be permitted to keep up to 20% of their assets in cryptocurrencies starting August 2, 2021, potentially paving the way for more mainstream adoption of Bitcoin (BTC) and other crypto assets by the country’s pension funds.

According to Bloomberg, the new law modifies the set investing rules that govern Spezialfonds, or special funds, which are exclusively available to institutional investors such as pension funds and insurers. Spezialfonds presently manages assets of $2.1 trillion (1.8 trillion euros).

According to Tim Kreutzmann of the German investment fund group BVI, most funds would likely stay considerably below the 20% level at first, explaining:

“On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.”

The new rule, which went into effect in early July, marks a significant shift in how German legislators handle digital assets. BaFin, Germany’s Federal Financial Supervisory Authority, continues to advise caution when it comes to investing in digital assets. At the same time, the country’s financial authority promotes blockchain innovation.

Exclusive From SaTT

Smart Advertising Transaction Token Doubles Down On Decentralization

Since its launch, Smart Advertising Transaction Token commonly known as SaTT has been making headlines in the crypto airwaves for its revolutionary blockchain-based products. 

Early this year, we integrated its decentralized advertising solution with the top social media platforms including Facebook, Instagram, Youtube, and Twitter. Allowing advertisers to promote their products and services through influential marketing strategies. 

To fulfill our promise of a fully decentralized, open-source blockchain-based advertising solution, we have embarked on a 6-month roadmap aimed at making all products under the SaTT ecosystem fully open-source. With this move, we aim to build a project that can benefit from community contributions and exceed our vision and know-how, establishing itself as a universal reference.

For this six months period, we will be focused on releasing our enterprise crypto wallet for iOS users, redeploying the SaTT wallet interfacing, adopting “Pay by SaTT” for enterprise e-commerce, and many more. 

This Week’s Crypto Meme

We hope you enjoyed this week’s edition of crypto highlights. For a peek at our last edition of crypto highlights & blockchain news, click here.