According to data provided by the popular blockchain analytics platform CryptoQuant, major bitcoin addresses send funds to derivatives exchanges. The CEO of the company explains that this transfer of the fund increases margins or opens new positions and free crypto signals.
The rapid growth in funds that is flowing from major wallets to exchanges should be a wake-up call for investors. Investors should be alert because funds that are transferred from the spot market to a derivatives exchange are often a sell signal. Traders of Safe Trading usually hold their funds on exchanges when they are ready to sell.
However, CryptoQuant CEO Ki Jung Joo approaches the event from a different perspective. According to him, once Bitcoin plummets to $46,000 by free crypto signals, some investors may take new long positions or fund their previous positions that are close to liquidity.
- Also, in most cases when these wallets transfer funds to exchanges, they accumulate large amounts of bitcoins, which leads to sudden and huge price spikes.
- In October last year (shortly before the bull market started), the analyst found that when bitcoin surged from $10,000 to $60,000, the inflow of funds to derivatives exchanges rose.
- Over-leveraged positions held in derivatives markets caused the strong price increases. To cause significant volatility in the market, derivatives exchanges that provide traders with high margins must fund most positions.
- However, the effect will likely not be noticeable immediately on the market, since the transferred volumes are too large to be applied immediately.
Could Bitcoin Become the Official Currency in the United States?
The United States has a very different political and economic structure compared to other nations. The more important and effective central governments are in nation states, while the more effective and influential local governments are in the United States. In fact, the name of the country gives a preliminary glimpse of decentralized governance: the United States of America!
The USA is made up of 50 states. Each state, unlike the central government, has its own parliament, budget, security forces, flag and law.
There are also two official languages in the United States, namely English and Spanish. Moreover, the parliamentary structure in the central government is twofold, containing the House of Representatives and the Senate. So, can a dual monetary system similarly be implemented in the United States? Can the US use both the dollar and bitcoin as the official currencies?
In a poll conducted by YouGo in the United States, 27% of respondents support the use of bitcoin as the official currency, especially Millennials and Gen Z.
According to the British YouGo, one in three Americans supports the use of bitcoin as the official currency. Among the electorate, Democrats support bitcoin slightly more than Republicans–namely, 29% of Democrats and 26% of Republicans.
- In addition, as income levels increase, so does the proportion of those who support Bitcoin as a legal currency.
- In the table we saw, the distribution of bitcoin supporters corresponds by age. As the demographic ages, Bitcoin loses support.
- The United States will find abandoning the dollar impractical since it is already an instrument of accumulating global reserves. However, why not use a dual official currency?
Institutional investors are showing great interest in Solana.
As experts of SafeTrading have found, the Solana (SOL) cryptocurrency is experiencing a wave of institutional interests.
Investors are showing great interest in Solana.
Solana, which was recently one of the favorite cryptocurrencies of investors, started an uptrend again this week as it renewed its all-time high. In addition Solana was able to outperform XRP in terms of market capitalization earlier this week, finishing in 6th place.
Unharmed by the recent market correction, the cryptocurrency hit an all-time high of $215 on September 9.
On the other hand, Solana (SOL) entered the top 10 of the CoinMarketCap list for the first time in mid-August. The successful launch of Degenerate Ape Academy, which is an unchanging collection of tokens, was mainly driven by price increases.
Ethereum vs. Solana.
Solana is called the Ethereum killer because of the advanced scaling techniques on the Ethereum network. Typically, Ethereum is too cumbersome and expensive for the average Joe. However, Solana offers 50,000 transactions per second and very low fees that push competing blockchains out of the water.
- While critics argue that Solana is more centralized than Ethereum, the program will likely challenge the current leader in smart contracts, which will undoubtedly drive up the price of the cryptocurrency.
- Earlier this year, only crypto enthusiasts knew about Solana. However, this is no longer the case. From music festival sponsor Lollapalooza to random Twitter quotes from Mike Tyson and Jason Derulo, it’s fair to say that SOL is no longer a secret coin.
On the other hand, the popular Solana cryptocurrency is not heavily influenced by market price adjustments, as noted by an analyst of SafeTrading. In fact, Solana, which has regressed to the $128 range with the decline seen in recent days, has returned to its old price in a very short time. SOL has gone down 12% in the last 24 hours on major cryptocurrency exchanges, but it’s too early to tell if market excitement has eased.
Nonetheless, Sam Bankman-Fried pointed out that Solana has a trick up its sleeve, arguing that the Proof of Stake (PoS) chain has one of the most “complex” roadmaps in the industry.