Bitcoin Held on Crypto Derivatives Exchanges Drops Significantly

The number of Bitcoin stored on all cryptocurrency exchanges has dropped significantly, hitting over two years low. According to data from Glassnode, currently, $2.3 million worth of Bitcoin is available on the exchanges.

Since 2014, the Bitcoin balance on all giant exchanges was climbing up at a steady pace. After jumping more than 750%, the total amount of Bitcoin moves to 350,000 BTC, worth almost 3 million dollars in January 2020.

After hitting the highest point, it took a sharp downturn. The first major fall came in August as the Bitcoin balance on the exchanges slumped to $2.6 million. As of now, the total figure move to $2.3 million, representing a decline of 23%.

Bitcoin Price Drop Follows Massive Liquidation

The price of bitcoin, the largest cryptocurrency, has dropped notably. After rallying above $19,000, it fell to $16,350 on November 26.

Price Crash comes after massive liquidation at crypto exchanges. In the last 24 hours, over $1.9 billion worth of open interset was liquidated, based on the report. With $840 million worth of liquidation, Binance stands at the top spot, followed by OKEx and Huobi. 

As a result of the Bitcoin fresh lows, some of the big investors also receive massive damage. As reported earlier, Mainstream business intelligence firm MicroStrategy has lost more than $100 million on its investment. 

Amid Bitcoin Bull Run, Binance Trading Volume Soar to $37 Billion High

Trading volume on Binance, the leading cryptocurrency exchange, has surged exponentially following the Bitcoin price rally. In the last 24 hours, crypto trading volume on the giant exchange has hit a new spike of $37 billion. Furthermore, Bitcoin futures open interest has also increased to an all-time high of $1.17 billion, based on data from Glassnode.

Over the last couple of months, Bitcoin price is quickly accelerating to achieve a new milestone. After soaring 4%, the price of BTC is over $19,100, momentum achieved for the first time in three years. As an outcome of the crypto’s growing trend, both crypto trading volume and futures open interest have benefitted. 

As per CoinMarketCap data, Binance daily trading volume has bounced 40.5% in order to hit a milestone of $37,291,444,117. Previously, the report from the analytics site showed that Binance trading volume reached close to $25 billion.

Binance Stop Serving U.S Users 

While Binance is witnessing a massive surge in trading volume, it is achieving new heights without U.S users. According to the report, the exchange has warned U.S users to withdraw all crypto assets.

To notify the user, Binance has started sending emails, “please note that as per our terms of use, we are unable to service US persons. You have 14 days to close all active positions on your account and withdraw all your funds, failing which your account will be locked.”

However, the warning came after the exchange announced that it would be introducing Binance.US in collaboration with BAM Trading. Although the platform, Binance.US, isn’t accessible in all states and presents a small number of trading pairs for tokens, but it is fully regulated.

Bitcoin Exceeds Mastercard as Its Market Cap Jumps $335 Billion

Market sentiment shows that Bitcoin is on track to mark a new all-time high. Since Bitcoin’s third halving in May, the price of the largest cryptocurrency has jumped exponentially. After rallying more than 110%, BTC price has surged to $18,000 from $8,566 on May 11. 

According to crypto experts, the growing institutional demand is driving the Bitcoin Bull run. Mike Novogratz, a billionaire investor, stated that Bitcoin is now an institutional asset. He added:

“Bitcoin is now an institutional asset. Period. The good thing is most institutions aren’t in yet. It’s why 2021 will be as good or better than 2020.”

Furthermore, data from Glassnode show that approximately 25,000 new Bitcoin addresses were created on November 18, a spike that was last detected in 2018. As Bitcoin price and the number of addresses continue to grow, this reveals that the network is healthy, and most likely, there are more users.

Bitcoin Outpaced the Payment Giant

Bitcoin’s total market cap has also hit the $335 billion threshold. Recent market cap surge pushed the crypto asset to 16th place among the globe’s biggest firms, based on AssetDash data. The Bitcoin market cap speaks to the joined price of all BTC that is currently available for use. As the asset price rallies and its supply rises, so does Bitcoin’s market cap.

Bitcoin surpasses Mastercard in terms of market capitalization. The 3% capitalization increase of Bitcoin sent Mastercard, a giant payment firm, to the 17th spot as its market cap dropped by almost 0.6%, as per AssetDash tracking.

Bitcoin price keeps climbing up steadily. Some analysts believe that if BTC continues with a similar bull run, it could exceed more “adversaries.” It has already exceeded Nvidia, Walt Disney Company, Bank of America, Coca-Cola, and PayPal. At the time of reporting, Bitcoin is hovering around $18,725, as per CoinMarketCap.

Amid Bitcoin New Highs, Tether Market Cap Exceeds $17 Billion Mark

The leading US dollar-backed stablecoin Tether (USDT) has achieved a new milestone as its market cap hit a $17 billion mark for the first time. This milestone means there is approximately the same amount ($17 billion) of real US dollars resting in storage that users have swapped for Tether (USDT).

Tether has been fabricating massive growth in 2020, USDT market cap has jumped almost four times, surging from around $4 billion to $15 billion. 

Tether is also known as the most dominant stablecoin. It captures approximately 85% of the total market share. Based on data from Messari, USDT witnessed a striking increase of more than $5 billion in market cap during the period of the last few months.

Tether Main Drivers for the Bitcoin Price Rally

Tether (USDT) is witnessing an extensive inrush in its market cap, which pushed the recent Bitcoin price rally. Tether, the firm, minted new $10 million Tethers onto the crypto market. Analysts consider that this results in Bitcoin’s price to jump from $15,501 to above $15,860.

According to Ki Young-Ju, CEO of crypto data platform CryptoQuant, minting more USDT shows that the crypto sphere is heating up. He pointed out:

“Again, the $BTC price soared right after the number of stable coin deposits increased.”

As reported earlier, Tether knockout XRP to become the third-largest cryptocurrency in terms of market cap. In June 2020, Bloomberg published a report that provides a crypto market insight; it assumes Tether to surpass Ethereum in the crypto market place and become the second-largest asset in terms of market cap.

Wrapped Bitcoin Market Cap Rallied to Exceed $1.58 billion

The number of tokens and market capitalization of major synthetic Bitcoin, Wrapped Bitcoin (WBTC), rallied to hit all-time highs. With a market cap of more than $1.5 billion, WBTC is the most well-known form of synthetic Bitcoin that makes over 80% of the total Bitcoin held on the Ethereum network.

Market analysis shows that after USDC, LINK, BNB, CRO, and USDT, the recent surge of WBTC makes it the sixth-largest Ethereum based token in terms of market cap and the 18th-largest crypto asset by market cap overall.

Wrapped Bitcoin, an ERC20 token pegged by bitcoin at a 1:1 ratio, jumped abruptly in the mid of June 2020. As for now, there is a record total number of 116,885 WBTC, based on data from the official website. The token is designed to induce more liquidity into the network. Moreover, WBTC can easily integrate into the Ethereum network through ETH wallets, DApps, and smart contracts. 

DeFi Locked $2 billion worth of Bitcoin 

As reported earlier, the Ethereum blockchain has more distribution of BTCs than Bitcoin’s own special Lightning Network. Currently, there is over $2 billion worth of BTC held on the Ethereum ecosystem, according to Dune Analytics.

Bitcoiners are actively converting assets to Ethereum based tokens in order to participate in various decentralized finance(DeFi) protocols. For long-term HODLers, DeFi reward incentives and yield farming is an attractive option to earn money on their holdings.

Despite the sharp price downturn from several leading DeFi protocols in recent weeks, investors have locked almost $11 billion worth of crypto into DeFi smart contracts, according to data from metrics site DeFi Pulse.

CME Emerged as the Second Largest Bitcoin Futures Exchange After Exceeding Binance

The leading and most diverse derivatives marketplace CME Group has surpassed Binance and BitMEX to become the second-largest Bitcoin futures exchange.

According to the October 25 analysis, the number of open interest contracts on CME surged to $790 million. Whereas Binance and BitMEX recorded $718 million and $601 million, respectively. Open interest is the amount of futures contracts held by market members at the end of the trading day. It is utilized as an indicator to define market sentiment and the strength behind price trends.

The growing trend of CME reveals that institutional investors are gathering to CME instead of crypto derivatives exchanges like BitMEX and Binance. As for now, BitMEX is countering legal law with the U.S. regulatory, which has charged the exchange for violating anti-money laundering laws.

Amid Investigation, OKEx Leads the Bitcoin Futures Trading

On October 16, Chinese police had started an inquiry associated with crypto exchange OKEx, pushing one of the world’s major BTC trading platforms to halt crypto withdrawal service. 

However, OKEx has received 1,995 BTC from Houbi despite suspended crypto withdrawals, as reported earlier. Based on data from Whale Alert, two transactions were recorded to complete the transfer. At first, 998 BTC were deposited. Later, 997 BTC were sent. 

While responding to transfer, an OKEx spokesperson noted, “OKEx’s wallet team has confirmed that the origin wallet addresses in said transactions do not belong to OKEx. The chief economist at major blockchain analytics firm Chainalysis also confirmed in a tweet today that the transactions in question had been ‘mislabelled’ and were not in fact from OKEx.” 

Even after a legal investigation, OKEx drives the bitcoin futures trading platform in terms of open interest. Yesterday, OKEx open interest recorded the highest spike of $992 million.

Gemini Now Supports Shielded Withdrawals for Zcash

Gemini, the crown jewel in the Winklevii empire, has announced to add support for shielded Zcash to enhance user privacy. Gemini spokesperson claims that the new initiative is the“first time shielded ZEC withdrawals are available on a regulated exchange.” 

Zcash is a privacy-oriented crypto asset that facilitates user privacy through two types of addresses, transparent and shielded. In comparison to transparent addresses, protected ZEC addresses are built to encode and conceal exchange information like sender, beneficiary, just as the funds transferred. 

Users can now protect their identity and transaction volume, “If you’d like to take advantage of a shielded withdrawal, simply withdraw your ZEC to a z-address,” said the exchange.

Gemini Support Amid Uncertain Conditions 

Gemini’s support for ZEC comes amid administrative uncertainty over privacy tokens. During the sessions of 2019, several crypto exchanges, including OKEx and Upbit, had removed support for Zcash and Monero due to their mysterious nature. Furthermore, Coinbase, a giant US-based crypto exchange, closed Zcash custody for users based in the United Kingdom.

However, Gemini has been able to achieve this feature by following “ongoing conversations with regulators and further education on privacy-enabling cryptos,” said exchange spokesperson.

While responding about shielded fund movements, the spokesperson said: “Gemini maintains a record of every withdrawal that leaves our system. While we have full transparency into the flows at this point, once the funds are in the shielded pool — and at that point encrypted — we no longer have insights and we don’t track customers’ withdrawals after they leave.”

Huobi Moves to Strengthen its Position in Russia Despite the Upcoming Crypto Ban

Huobi Global, the leading cryptocurrency exchange, has launched its native mobile application in Russia. On September 23, the exchange account that Huobi spot market and trading of primary crypto assets like BTC, ETH is now officially available for Russian users.

According to the exchange’s spokesperson Russian market accounts for almost 10% of Huobi’s total spot trading volume. Huobi launched the app in Russia as it intends to expand its platform in one of the important markets.

Crypto Ban Does not Concerned Crypto Firms Serving in Russia

Huobi announced the mobile application amid the regulatory uncertainty. As per the report, Russian President Vladimir Putin has approved a crypto law that will restrict crypto-related activities in the country starting from January 2021. 

Despite the upcoming crypto regulatory problems like the new law “On Digital Assets” as well as the bill “On Digital Currency.” Vice president of global markets at Huobi Group, Ciara Sun, said that the exchange’s aimed to grow its platform in the Russian crypto space.

Sun said, “Despite recent speculation about new crypto regulation in Russia, we’re fully committed to this market and moving full steam ahead to give local users a more intuitive way to buy and trade crypto from their mobile devices.” 

 Market data and industry report revealed that Binance is also planning to introduce its crypto payment oriented Binance debit card in Russia despite the expected crypto ban. While responding about the anticipated launch date, Binance’s operations head for Russia and the CIS Gleb Kostarev stated:

“We strive to provide all Binance users with the same experience that is fully compliant with local regulations. Russia for us is an important market. We are working on the launch of the Binance card in Russia, but so far we cannot designate the exact date launch or give any legal opinion on this issue at the moment.”

Amid DeFi Boom, SushiSwap has Migrated Almost $1 Billion from Uniswap

Decentralized finance has fabricated meteoric growth so far in 2020. Enthusiasm for DeFi protocols mainly lifted by the introduction of reward incentives and yield farming. However, in recent weeks, various DeFi tokens dropped by almost 50%, the total value lock in the Defi sphere plummeted by $2 billion.

The market inside report unveils that DeFi protocols have jumped by nearly 19% after a week crash. Moreover, Ethereum has also rebounded over 11% in the past 24 hours.

Messari has published an analysis that shows more than 35 DeFi tokens are presenting strong rallies by growing between 3% and 39.6%. According to an analytic site, Swerve stands at the top spot on the daily charts, Yearn Finance trailing with 37.6%, Loopring, Aave, and SushiSwap gain with 29.9%, 29.4%, and 27.8%, respectively.

SushiSwap Transferred Tokens away from Uniswap

SushiSwap has officially finished a transfer of tokens over to its decentralized exchange, DEX, platform. Sam Bankman-Fried, head of SushiSwap, has posted a tweet “Done,” token transfer ends from existing Uniswap pools.

SushiSwap is launched as a fork of Uniswap’s protocol. Raising itself as an “evolution” of DEX, the platform acquired almost 77% of the total locked value held on Uniswap.

 SushiSwap founder Chef Nomi confronted unusual criticism from the DeFi sector after he converted over a part of SUSHI tokens allocated for the expansion of the SushiSwap for approximately 37,000 ETH. 

Nomi move provokes speculations between the DeFi community that SushiSwap is a scam platform. Responding to the community, Nomi said other developers had done the same thing for the success of their coins. However, Nomi handed over the admin keys of the SushiSwap to Bankman on September 6. “I hope SushiSwap does well without me,” tweeted Nomi. “Again I did not intend to do any harm. I’m sorry if my decision did not follow what you expected.”