This is Only the Testament of How ‘Powerful' Bitcoin is: Galaxy Digital CEO Mike Novogratz

New institutional buyers who are coming in methodically and slowly and not stopping are keeping the bitcoin price up.

After two weeks, Bitcoin finally jumped above $12,000 on the first day of September but again failed to hold onto its position.

Today, BTC/USD dropped to $11,155, which could be on the back of the news of South Korean authorities seizing one of the country's biggest crypto exchanges, Bithumb, for a $25 million token sale that never materialized.

However, Bithumb isn’t new to issues; the exchange has been hacked numerous times and came under fire for taxes.

While price does what it has been doing throughout August, activity on the bitcoin network is still growing with the number of daily active addresses pushing above 1 million, not seen since January 2018 when the BTC price was actually at $14,000.

Still, at the current price level, bitcoin short term holder net unrealized profit/loss (NUPL) has been staying above zero for the last four months. “Historically, holding this level served as an indication for BTC bull markets,” states Glassnode CTO.

Also, “the premiums on the retail-focused platforms and CME are starting to align, as they move in opposite directions this week,” noted Arcane Research.

Amidst this, Federal Reserve Governor Lael Brainard said the central bank would need to roll out new efforts “in the coming months” to help the economy overcome the COVID-19 related headwinds and achieve “maximum employment and average inflation of 2% over time.” So, that’s bullish.

Not Succumbing to the Selling Pressure

Michael Novogratz, founder and chief executive officer of Galaxy Digital Holdings, notes that cryptos are not going away. While the rest of the crypto market is still a sandbox where experimentations and cool innovations are happening, bitcoin is a finished product as a store of value and digital gold.

What's interesting is the new bitcoin buyers are institutional buyers, individuals of high net worth. “They're coming in methodically and slowly, and they're not stopping, and so that's keeping the bitcoin price up,” he said.

“A lot of the traditional crypto people right are selling their bitcoin, buying the sexier objects and so in this move of this kind of mania which we're seeing in decentralized finance it's pushing Ethereum price up because it's built on the Ethereum network and other protocols, it's probably putting a little weight on bitcoin which tells you how powerful bitcoin is that even with that selling pressure it's still going up based on the macro story,” said Novogratz in an interview with Bloomberg.

Speculative Pump & Dump

Yesterday Ether hit a new two-year high above $480, and DeFi projects continue to make new all-time highs.

The market is offering new digital coins such as YFI, Tendies, Spaghetti, Based, Kimchi, and Sushi in which investors have poured billions to rake in easy profits by yield farming.

“I lived through and profited through the 2017 crypto bubble, and this feels somewhat reminiscent to it,” said Novogratz. “It was the ICOs back then. A new ICO every day and the herd would swim to that ICO and jam the price up, and there’d be a frenzy of liquidity and price, and then it would collapse, and they’d move on to the next thing. And it feels a little bit like that.”

However, according to Jeff Dorman of Arca, this time is different because this rally is sustainable, and the projects are launching their tokens after the products have found their market fit.

In the past month, over 500 coins have entered the market, many of which are rallying like crazy. “It sure appears as a speculative pump and dump,” said Mike McGlone, an analyst at Bloomberg Intelligence who said “too much supply, competition and ease of entry” is part of the problem or the broad crypto market. About $9.5 billion are currently locked in the DeFi sector.

Bitcoin (BTC) Live Price

1 BTC/USD =10,874.6633 change ~ 1.17

Coin Market Cap

201.21 Billion

24 Hour Volume

46.38 Billion

24 Hour Change

1.17

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,486FansLike
2,795FollowersFollow
4,268FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

ETH Locked on Aave & Uniswap Records a Sharp Rise

Decentralized Finance (DeFi) is back to recovering, currently at over $11 billion, reaching an all-time high of nearly $12 billion from last week, as...

Bahamas Central Bank Confirms CBDC ‘Sand Dollar’ to Launch In Less Than 30 Days

The Bahamas Central Bank has confirmed that its pipeline CBDC ‘Sand dollar’ will roll out next month as anticipated. This will mark the first...

KuCoin Hack Update: 11 Crypto Projects Freeze the Stolen Tokens

Over the weekend, KuCoin lost about $275 million in BTC, XRP, BSV, XLM, TRX, stablecoins, ETH, and other ERC-20 tokens in a security breach....

Bitcoin Re-Entering the ‘Intense Historical Trading' Area Following a Strong Uptrend

Bitcoin is back at near $11,000. The leading digital currency has been making its way upwards since the mid of last week. Today, to mark...

Alameda Research and Three Arrows Capital Outdoing Each Other to Mint Record WBTC

On Friday, FTX CEO Sam Bankman-Fried’s Almeda Research minted the biggest wrapped Bitcoin (WBTC) ever, as per WBTC Network. 2317 BTC was minted on Sept....

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today