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- Metaplanet and SBI VC Trade announce a strategic partnership to enhance Bitcoin trading, storage, and management.
- Lookonchain’s data shows that Bitcoin Spot ETF recorded $45.53 million net outflow on Monday.
- Santiment’s data shows that wallets holding more than 10 BTC have accumulated 33,651 more Bitcoin since June 2.
- VanEck predicts that Bitcoin could reach as high as $2.9 million per coin by 2050.
Bitcoin (BTC) trades at around $59,000 on Tuesday after a slight recovery the day before. However, this rebound might be short-lived as it nears a crucial resistance barrier. Institutional interest is growing, driven by VanEck’s optimistic Bitcoin forecast, a strategic partnership between Metaplanet and SBI VC Trade, and increased wallet holdings. Despite these developments, the price action remains weak, and the Bitcoin Spot ETF recorded a $45.53 million net outflow on Monday.
Daily digest market movers: Few signs of optimism
- Metaplanet Inc., a Japanese investment and consulting firm, and SBI VC Trade Co. Ltd., a division of the SBI Group, have announced a strategic partnership to enhance Bitcoin trading, storage, and management, focusing on safety, security, and regulatory compliance, starting on Monday.
This alliance supports Metaplanet’s “Bitcoin First, Bitcoin Only” strategy, focusing on Bitcoin’s scarcity and non-political monetary policy. Metaplanet accumulates Bitcoin through debt and equity financing and currently holds approximately 360 BTC.
“Through our corporate customer service SBIVC for Prime, we are focusing on supporting and assisting with cryptocurrency trading, storage, and operation, as well as Web3-related businesses. In cooperation with Metaplanet, the SBI Group has been highly evaluated for its 1) safety and security, 2) utilization of crypto asset-backed leverage trading, and 3) exemption from the end-of-period mark-to-market tax.” said the SBI VC Trade firm in its notice.
- VanEck, an asset management company with positions in the largest cryptocurrency, predicts that Bitcoin could reach as high as $2.9 million per coin by 2050. This long-term bullish outlook is supported by Bitcoin’s hard cap limit of 21 million coins, which creates scarcity.
“It is conceivable that by 2050 Bitcoin could be used to settle 10% of the globe’s international trade and 5% of the world’s domestic trade. This scenario would result in central banks holding 2.5% of their assets in BTC. Using assumptions about global growth, investor BTC demand, and Bitcoin’s turnover, we apply a velocity of money equation to suggest a potential price of $2.9M per Bitcoin, translating to a total market cap of $61 trillion. Applying our existing framework for valuing Ethereum L2s, we estimate that Bitcoin L2s could collectively be worth $7.6T, approximately 12% of BTC’s total value.” said VanEck in its blog post.
- Sentiment’s BTC data shows wallets holding at least 10 BTC and their overall collective holdings. Over the past three months, it has looked quite strong. These wallets have accumulated 33,651 more Bitcoin since June 2, a 0.21% increase in this relatively short time.
However, a slight concern is seen in the amount of stablecoin holdings from key stakeholders between $100,000 and $10 million in USDT or USDC that have been sinking during this period. This signifies that during this period, there was a fair amount of swapping between stables and traditional crypto.
Bitcoin wallet holdings chart
Bitcoin Stablecoin chart
Technical analysis: BTC retest resistance level
Bitcoin price is retesting its 50% price retracement level at $59,560 (drawn from a high in late July to a low in early August) after recovering 3.5% on Monday. At the time of writing on Tuesday, it declines slightly by 0.35% to $58,899.
If the $59,560 holds as resistance, Bitcoin could decline by 6% from its current trading level to retest its daily support level at $56,000.
The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the daily chart are slightly below their neutral levels of 50 and zero, respectively. Both indicators suggest that neither bulls nor bears are in control.
BTC/USDT daily chart
In an upside scenario, Bitcoin’s price could break above the $59,560 resistance and close above $62,019, the 61.8% Fibonacci retracement level. In that case, the bearish thesis will be invalidated, and BTC could extend the positive move by 5.5% to revisit its daily resistance level at $65,379.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.