This bull market is still in its early stages

Data suggest this bull market is still in its early stages, plus other highlights this week

Goldman Sachs exploring a BTC ETF, Bitcoin whales accumulating, JPM recommends 1% BTC allocation, Ethereum now available on Amazon’s blockchain service

The total crypto market cap is $1.5T, down 1.3% over the last 24 hours

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Quick Take:

  • Goldman Sachs exploring potential Bitcoin ETF

  • JPMorgan recommends a 1% Bitcoin allocation

  • Whales continue to accumulate Bitcoin after recent pullback

  • SEC Chair nominee, Gary Gensler is positive on crypto

  • Grayscale confirm exploring new investment products

  • Colombia’s oldest banking institution exploring crypto

  • Why this bull market is still in its early stages

This bull market is still in its early stages

Analysing Bitcoin HODL Waves from previous bull runs, Yann & Jan concludes that this bull run is far from over. The HODL Waves is a data visualisation that displays bands representing the percentage of total bitcoin and the length of time that bitcoin has been sitting in a given address.

Building on top of this metric, Glassnode’s Realized Cap HODL Waves modification functions like this: instead of using Bitcoin supply by age, UTXOs (Unspent transaction outputs) in each band are weighted by their creation price. The resulting realized cap age bands help navigate Bitcoin cycles, gauge market tops, and the start of bull markets.

Yann & Jann state: “As seen in the ‘RC-HODL waves’, what becomes apparent is that the major tops are defined predominantly by short term bitcoin holders. On a macro level, whenever bitcoins that are 1 month old or younger start to make up more than 60% of the realized cap, we are close to a major top in the cycle.”

The chart above points to three clear price waves for every cycle dating back to 2011. This cycle however reveals only one wave, sitting at Bitcoin’s recent all time high of $58,200 back on February 21. If this trend continues, it signals that there could be a further two large waves yet to come. 

Goldman Sachs exploring potential for a Bitcoin ETF and crypto custody services

As Retuers reports, Goldman Sachs has restarted its cryptocurrency trading desk and will begin dealing bitcoin futures and non-deliverable forwards for clients from next week.

As part of this work, the bank is also exploring the potential for a bitcoin exchange traded fund and has issued a request for information to explore digital asset custody, a source said.

Also this week, JPMorgan told its clients that a 1% portfolio allocation to Bitcoin would serve as a hedge against fluctuations in traditional asset classes such as stocks, bonds, and commodities.

SEC Chair nominee, Gensler: ‘Bitcoin and crypto have brought new thinking to payments’

Gary Gensler, Biden’s pick to lead the SEC, has revealed his thoughts on Bitcoin and cryptocurrencies. At his confirmation hearing, he was asked what Congress and the SEC can do to create a more forward-thinking regulatory environment in the crypto industry:

"Bitcoin and other cryptocurrencies have brought new thinking to payments and financial inclusion, but they've also raised new issues of investor protection... If confirmed at the SEC, I will work to promote that new innovation but also at the core, ensure investor protection.”

Whales continue to accumulate Bitcoin after recent pullback

According to data from CryptoQuant, Bitcoin whales have been accumulating around the 48k price level. On further inspection, it appeared most of the outflows from Coinbase went to custody wallets at around this price level, signalling possible institutional buying according to CEO, Ki Young Ju.

The In/Out of the Money Around Price (IOMAP) indicator also reveals a large cluster is “in the money” between $46,300 and $47,000 where buying activity is expected to pick up as the 1.1 million addresses who had previously bought 560k BTC at this price range are likely to provide support.

Similarly, there is a large cluster of 1.03 million addresses currently “losing money” between $49,300 and $58,000 which is expected to act as resistance.

More highlights:

Ethereum now available on Amazon’s blockchain service

Colombia’s oldest banking institution exploring crypto services

ETH miners revenue has reached a new all time high of $1.36 billion

Grayscale confirm exploring new investment products

Bloomberg Intel. says Bitcoin is replacing gold in portfolios

Kings of Leon to become the first band to release album as an NFT

Ubisoft and Sorare to launch fantasy soccer game on Ethereum

Cardano’s ‘Mary’ update goes live

That's it, you’re up-to-date

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