The Bull Market is Back in the Crypto Hedge Fund World as Holdings Rise to Over $14 Billion, 40% In 2019

Nobody could deny that the crypto world is seeing a resurrection of sorts with the Bitcoin price going from middle $3,000s to seeing a recent high over $5,600 BTC/USD. Discussions about whether the bear market has been ended or not are constant, but there is proof that the future is getting brighter every day.

According to a recent report made by Circle, crypto hedge funds and VC companies increased all of their holdings in around 40% during Q1 2019. This is a sharp contrast with the last quarter of 2018, which was basically very awful for most investors. Because of this, there is hope that the gains will be even bigger during the second quarter of the year.

This signalizes that the year might be the one in which the next Bitcoin bull run will finally happen, independently on whether prices will break the $20,000 USD ceiling reached in December 2017 or not. While there are many ranges of bitcoin price predictions to choose from, the general community consensus remains that they will be obtained before the next halving.

Circle has also reported that nearly 20% of all ETH in circulation today is currently locked out of the market because it is being used in several smart contracts. Unfortunately, this does not mean that all these businesses are being successful since they use so much of the ETH. An example of that can be seen in the report itself.

Unstable Stablecoins

The report comments on the DAI ecosystem, which has struggled a lot recently in order to maintain its dollar peg. The DAI token should be priced at around $1 USD, but it is often below that, which has led the community to increase the fees which are charged with the users to burn tokens in order to maintain the stability.

In any case, the situation is not very good for DAI right now as the fees simply keep increasing and the prices are not coming back to their “stable” price of $1 USD. So far, USDC (which, guess what, is created by Circle) is reported to be the stablecoin with least volatility.

Initial Exchange Offerings Will Continue

The report finished by affirming that the so-called Initial Exchange Offerings (IEOs), which are basically a more centralized and regulated version of Initial Coin Offerings (ICOs) and are made by crypto exchanges, will possibly continue to be important for the market.

According to Poloniex’s product manager, Christina Pawlikowski, many exchanges need to branch out and to generate revenue in other ways, so the market will have to adapt and this is what is currently being done.

IEOs have been promoted by exchanges like Binance with its Binance Launchpad and have been very successful ways to participate in something that is very similar to ICOs and yet it protects the investor much more.

Live Bitcoin (BTC) Price:

1 BTC/USD =$29,705.4578 change ~ 0.30%

Coin Market Cap

$565.63 Billion

24 Hour Volume

$12.66 Billion

24 Hour VWAP

$30.34 K

24 Hour Change


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