Cryptocurrency searches hit a record high, MicroStrategy bucked the trend and increased its position in Bitcoin｜Industry Weekly Report
Ouyi OKEx Information Bureau Industry Weekly will take you to quickly review industry trends and clarify industry trends.
Market overview
Ouyi OKEx Information Bureau Industry Weekly will take you to quickly review industry trends and clarify industry trends.
According to CoinGecko data, as of 16:00 on May 21, 2021, the total market value of the cryptocurrency market was US$1,815.85 billion, a decrease of 23.58% in the past 7 days. The USDT premium rate is 1.81%, and the OTC average price is ¥6.55. The market sentiment index was 19, with the level of extreme panic.
1. Institutional and company dynamics
According to OKEx data, as of 16:00 on May 21, 2021, BTC temporarily reported at US$39,484.9, down 21.46% in the past seven days, and OKB temporarily reported at US$20.588, up 40.77% in the past seven days. The long-short position ratio of the OKEx BTC contract is 1.2, and the number of long-term parties has a slight advantage; the total position of the BTC contract is 1.333 billion US dollars, a decrease of 38.85% from the same day last week.
secondary title
1. Institutional and company dynamics
1. Futu Holdings plans to launch cryptocurrency trading services in the United States, Singapore and Hong Kong, China
According to news from CoinDesk on May 21, Robin Li Xu, vice president of Futu Holdings (FUTU.US), said in the first-quarter earnings conference call that the company has begun to apply for "digital currency-related licenses" in the United States, Singapore and Hong Kong, China. , plans to launch cryptocurrency trading services in the second half of 2021. In addition, Robin Li Xu stated that it will not provide digital currency transaction services for users in mainland China.
[Interpretation] As China's leading digital financial technology company, Futu Holdings is a good thing to start deploying encryption business, but the encryption market is now at a turning point, and the significance of this plan to the company itself remains to be seen.
2. The U.S. Treasury Department requires crypto transfers up to $10,000 to be reported to the IRS
According to Bloomberg News on May 20, the U.S. Treasury Department stated that the Biden administration’s proposal to strengthen tax compliance includes requiring the reporting of cryptocurrency transfers worth more than $10,000 to the IRS. “As with cash transactions, businesses that acquire crypto assets with a fair market value of more than $10,000 will also be required to report,” the U.S. Treasury Department said in a report on the tax enforcement proposal released on Thursday. Comprehensive reporting is necessary to minimize the incentive and opportunity to divert revenue away from the new information reporting regime, even though cryptocurrencies represent only a small fraction of current business transactions. In 2020, the IRS added a line on cryptocurrencies to individual 1040 tax returns for more information on virtual currency transactions.
[Interpretation] This requirement means that encrypted assets have begun to be more and more included in the scope of US supervision, which is likely to cause market fluctuations in the short term, but in the long run, it may be conducive to the further legality and healthy development of encrypted assets.
3. ARK has purchased more than $90 million in Coinbase shares this week
According to CNBC, on May 19, the ARK fund bought 169,230 shares of Coinbase when Coinbase’s stock price fell. It is reported that since Monday, the ARK fund has purchased more than $90 million in Coinbase stock.
Official news, on May 18, MicroStrategy announced that it would purchase another 229 bitcoins at a price of US$10 million, with an average price of approximately US$43,663 per coin. As of May 18, a total of about 92,079 bitcoins were purchased for about $2.251 billion at an average price of $24,450.
2. Cryptocurrency market
[Interpretation] The increase in positions after the plunge proves that MicroStrategy is still optimistic about the future of Bitcoin. In addition, the CEO of the company revealed that the entity controlled by him has acquired 111,000 BTC (possibly including his personal holdings), and has not sold a satoshi. The blessing of large companies is expected to add confidence to the market recovery.
secondary title
2. Cryptocurrency market
1. Glassnode: The degree of panic selling by new entrants is the fourth highest since 2015
Glassnode data shows that the losses caused by this Bitcoin sell-off to short-term holders are of historical significance. The value has only fallen below this position three times, namely the beginning of the bear market in February 2018, the sharp drop in November 2018, and the sell-off caused by the new crown pneumonia in March 2020. STH-SOPR takes into account the degree of profit realized by cryptocurrencies moved on-chain, filtering cryptocurrencies held for less than 155 days, representing entities buying cryptocurrencies during the current bull market cycle.
[Interpretation] Buffett has a famous saying: Be greedy when others are panicky, and panic when others are greedy.
2. Google Trends data: Global searches for "cryptocurrency" hit a record high
On May 20, Google Trends data showed that the number of searches for "cryptocurrency" has soared to an all-time high, with queries ranging from environmental issues to whether investors should sell. Google Trends’ official tweet on May 20 emphasized that online searches for “cryptocurrency” (cryptocurrency) have surged. The picture shows that the number of global queries has surpassed the peak in 2017/2018 and is heading towards another all-time high.
[Interpretation] The emergence of this trend happened exactly after the market plummeted on May 19. This "huge shock" aroused extreme fear in the market. The number of inquiries has exceeded the peak in 2017/2018, which also means that the market has reached a similar key node.
3. Bitcoin has been declared "dead" 414 times
According to "99 BITCOINS"'s Bitcoin Obituaries (Bitcoin Obituaries File), Bitcoin has been declared dead more than 414 times since its birth 12 years ago. This bitcoin obituary documents everything from calling bitcoin the biggest Ponzi scheme in history to comparing it to Monopoly. And more than a quarter of the records are related to the 2017 Bitcoin bull run and subsequent crash.
[Interpretation] It is foreseeable that Bitcoin will be declared dead more times in the future, accompanied by more expensive Bitcoin prices and a more solid blockchain network environment.
4. Data: Crypto billionaires lost $15.5 billion in net worth in nine days
According to news from U.Today on May 20, according to Forbes article statistics, affected by the market crash, in the past 9 days, several encrypted billionaires lost a total of 15.5 billion US dollars in net assets. Ripple Labs co-founder's XRP net worth has shrunk. Former Ripple CEO Chris Larsen saw his net worth drop by 19% in 9 days, from $6.9 billion to $5.6 billion. Former Ripple CTO and founder Jed McCaleb has lost 27% of his net assets, and his XRP holdings have dropped from $6 billion to $4.4 billion.
[Interpretation] Hold it, it will always rise back.
3. Polkadot/Layer2/DeFi dynamics
1. Polkadot version 0.9.2 is officially released, which is crucial to the start of the parachain
On May 21, Bill Laboon, director of Web3 technical education, said on Twitter that Polkadot version 0.9.2 has been officially released and has a high priority for upgrading. This version is crucial to the start of the parachain, and each node should be upgraded as soon as possible.
[Interpretation] At 3:25 am on May 20th, Beijing time, Dr. Gavin Wood, the founder of Polkadot, chatted with everyone online at the Polkadot Community Conference "Polkadot Decoded". In the chat, Gavin revealed a lot of information about parachains and auctions that everyone cares about. According to PolkaWorld’s summary, the parachain launch process is as follows:
1) Release version 0.9.2 today or tomorrow to fix some Shell parachain bugs; 2) Wait for Shell to run stably for 24 hours; 3) Upgrade Shell to Statemine after no problem; 4) Launch Statemine later this week; 5) If Statemine is running properly, the auction will start; 6) First conduct 5 auctions on Kusama; 7) Launch Polkadot after confirming that Kusama can run several parachains stably;
Currently, version 0.9.2 of the testnet has been released, and Statemine will be launched later this week.
2. Blockchain sports platform Chiliz will issue Aston Martin and Alfa Romeo fan tokens
Official news, blockchain sports platform Chiliz announced that it will issue Aston Martin and Alfa Romeo fan tokens, 2 million AM (Aston Martin fan tokens) and SAUBER (Alfa Romeo fan tokens) will Airdrop to users who previously participated in the pre-sale of fan incentive app Socios.com. Users who hold fan tokens can participate in club-related voting through Socios.com, receive VIP rewards, exclusive club and sponsor discount benefits, and experience functions such as AR, chat rooms, games and competitions.
[Interpretation] NFT has been out of the circle. June will usher in the climax of the event, and you can pay attention to whether there are more plans for projects in the NFT field.
3. Connext, the second-tier expansion solution, will launch a virtual AMM and liquidity auction mechanism
According to official news, on May 18, the second-tier expansion program Connext announced that in order to solve the liquidity problem, it will launch a virtual AMM and liquidity auction mechanism. The concept of virtual AMM is to enable Connext routing nodes (liquidity providers) to enable cross-chain transmission to obtain the arbitrage incentive advantages of AMM and rebalance liquidity for arbitrageurs. The liquidity auction is a mechanism where transfers are automatically sent to the routing node with the most unbalanced liquidity, i.e. the network automatically load balances among the liquidity providers in the ecosystem based on the available liquidity. Connext plans to test the liquidity auction mechanism this week, and will release an experimental version of the virtual AMM after the liquidity auction goes live.
[Interpretation] Connext is based on the expansion platform of the second layer, helping the Ethereum project to achieve a blockchain application with millions of users, and providing its users with fast transactions. Connext is a state channel project that strives not only to be Ethereum's L2 solution, but also to be the cross-chain routing center for Ethereum's many L2 solutions. One of the concerns in the early L2 space was that these projects would become too isolated from each other. Connext's new cross-L2 transfer system can prove that L2 isolation will not be a serious problem in the future.
4. Polygon has attracted more than 75,000 active users in the past 7 days
According to news from Dappradar on May 18, in the past 7 days, more than 75,000 active users have interacted with the top 20 Polygon DApps. The increased usage of Polygon has resulted in nearly $1 billion in transaction volume. In the past 4 weeks, the number of Polygon DApps submitted and tracked on DappRadar has grown from 61 to 93, of which 46 belong to the DeFi and Exchange category.
[Interpretation] Polygon, also known as Matic Network, plans to become the first Layer 2 solution aggregator on the Ethereum chain, building a modular, universal, and flexible expansion framework for Ethereum. Polygon is defined as the first structured, easy-to-use Ethereum scaling and infrastructure development platform.
4. Industry voice
1. V God: If Bitcoin technology remains unchanged, there will be a huge risk of being eliminated
According to CNN news on May 20, V God, the co-founder of Ethereum, said that if the technology of Bitcoin remains unchanged, then it has a huge risk of being eliminated. He also fueled the narrative by predicting that Ethereum’s market capitalization will likely surpass that of Bitcoin’s. In addition, V God said: "PoW resource consumption is undoubtedly huge. It will not destroy the world by itself, but it is definitely a significant disadvantage."
[Interpretation] The current market value of Ethereum is 371 billion US dollars, and the market value of Bitcoin is 748 billion US dollars. When ETH rises by 2 times relative to BTC, the market value of Ethereum can surpass Bitcoin.
2. Goldman Sachs CEO: Bitcoin market value will eventually be higher than gold
According to the 21st Century Business Herald on May 21, Goldman Sachs CEO David Solomon predicted that there will be "significant changes" in the field of digital currency in the next few years. As for some of the challenges facing the cryptocurrency space, he added: "We have significant regulatory constraints around us, and we play a principled role around cryptocurrencies like Bitcoin." Moreover, Solomon believes that Bitcoin's market capitalization will inevitably match that of gold. Flat, then eventually above gold. He believes that Bitcoin is "more like gold than a digital asset for payment networks, so its value will continue to rise in the coming years.
[Interpretation] At present, the total market value of gold is about 9 trillion U.S. dollars, the total market value of Bitcoin is about 740 billion U.S. dollars, and the price of Bitcoin is 40,000 U.S. dollars. That is to say, when Bitcoin rises 12 times, it will reach 480,000 U.S. dollars At that time, the market value of Bitcoin will exceed that of gold.
3. Founder of Real Vision: ETF will provide "fuel" for the rise of digital assets
According to news from The Daily Hodl on May 20, Raoul Pal, a former Goldman Sachs hedge fund manager and founder of Real Vision, said that Bitcoin's sharp drop breeds opportunities. Pal pointed out that cryptocurrencies are always accompanied by corrections, and a 35% pullback in Bitcoin is normal. Another reason investors should hold on, according to Pal, is that long-awaited U.S. exchange-traded funds (ETFs) will provide "fuel" for digital assets to rise. He expects the bitcoin ETF to be approved in September. Once this is the case, new demand from RIAs (registered investment advisors) and asset management companies will stimulate the entire encryption market to rise.
[Interpretation] Bitcoin ETF can be referred to as Bitcoin exchange-traded fund for short. It is a trading open-end index fund established with the Bitcoin price index in a certain market as the target index, and it is sold to ordinary investors.
