Autor Cointelegraph By Cointelegraph Research

Turbulence for blockchain industry despite strong Bitcoin fundamentals: Report

In the past, it was often said that Bitcoin (BTC) moves the entire crypto and blockchain industry. Is this still the case?The past few months have seen Bitcoin hitting high-water marks including all-time high long-term holder rates and local highs in hash rate difficulty adjustment — yet Bitcoin is still in bearish conditions as we head into Q4 of 2022. Not all areas of the blockchain industry can boast such signals of strength, such as venture capital (VC), which brought in $840,000 in October, down 48.6% from the previous month. Likewise, there has been a continued drop in GameFi nonfungible token sales, even with 10% more active gamers in October than in September. All the while, regulation continues to be a looming threat from entities like the United States Securities and Exchange Commission, which is now looking into the possibility that Ether (ETH) is a security given that 46.65% of Ethereum nodes are in the United States. Download and purchase this report on the Cointelegraph Research Terminal.Every month, Cointelegraph Research releases an Investor Insights report that analyzes key indicators from different sectors of the blockchain industry, such as regulation, crypto mining, security tokens, Bitcoin and Ether derivatives, and VC activities. Another positive Bitcoin signal Bitcoin is trading above its 50-day moving average (MA), with the 100-day MA acting as resistance and the moving average convergence/divergence (MACD) histogram signaling a bullish trend. On-chain data and historically accurate metrics suggest a bottom may be near. Furthermore, the MVRV-Z score has been in the green zone since late June, suggesting Bitcoin is bottoming out. Post-Federal Open Market Committee (FOMC) volatility was brief on Nov. 2, with the trading range consolidating around the $20,000 level. Apart from the FOMC, volatility could come in the wake of the U.S. midterm elections and Q3 earnings from crypto behemoths MicroStrategy, Coinbase, Block and Robinhood, all of which occur in November.Bitcoin’s fundamentals are still strong, and the asset that started it all for crypto will likely help keep the industry ultimately on course through the rest of the bear market, even though it may face some volatility along the way. But thankfully, 1 BTC continues to equal 1 BTC.The Cointelegraph Research teamCointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical and hard-won experience, the researchers on the team are committed to bringing the most accurate and insightful content available on the market.Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate and useful information and analyses. With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with the Investor Insights Report. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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Venture capital recedes from crypto in Q3, but not all is bleak: Report

In 2022, it’s no surprise that most assets are in a bear market. People have a variety of signals they look for when determining a good time to enter the market, and Cointelegraph Research’s Venture Capital Report for Q2 revealed that VC inflows stagnated at just above $14 billion last quarter, the same as Q1.However, the third quarter did not fare as well, dropping over 66% to just $4.98 billion, as Cointelegraph Research explores in its latest Venture Capital Report for Q3. The number of deals also declined to 338 for the entire quarter, compared with Q2’s 621. While that might paint a bleak picture for the blockchain industry, there are still many positive signs apparent after analyzing all the data.Download the full report here, complete with charts and infographics.The Cointelegraph Research Terminal’s Venture Capital Database contains comprehensive details on deals, mergers and acquisition activity, investors, crypto companies, funds, and more. The team analyzes this data to discover the most important trends in the industry, and this latest report offers a brief overview of the highlights of the last quarter — not everything can fit into the 12-page quarterly report.Potential bottom forming?When looking at the charts on a per-quarter basis, Q3 shows a massive decline from over $14.6 billion in capital inflows in Q2 to just $4.98 billion in Q3. But as Cointelegraph Research outlined in its most recent Investor Insights report, September saw a 20.6% increase in VC interest, rising from a 2022 low of $1.36 billion in August to $1.64 billion in September.While one data point does not make a trend, there were other activities focused on building blockchain companies and promoting Web3, such as the launching of funds like Peter Thiel-backed Valar Ventures’ $665 million fund, Multicoin Capital’s $430 million fund and Headline’s three new funds that have a combined value of over $900 million. Speaking of which, what exactly is Web3?The Q2 Venture Capital Report highlighted that decentralized finance (DeFi) was no longer the leading sector of interest for VC, as it had shifted to Web3. This trend has continued through Q3, but that begs the question: What does Web3 consist of? The Venture Capital Database breaks down the sector into subcategories, and the Q3 Venture Capital Report offers an analysis of this data. The results are interesting, to say the least. To learn more, read the report here.The Cointelegraph Research teamCointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate, useful information and analyses.With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with its Venture Capital Report. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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Most institutional investors hold or plan to buy cryptocurrencies: Survey

The latest survey carried out by Cointelegraph Research among 84 professional investors across the globe revealed that out of $316 billion in assets managed by the respondents, 3.3%, or approximately $10.42 billion, is invested in cryptocurrencies. Some surveyed investors reported over 50% exposure to digital assets, but respondents’ median percentage invested in cryptocurrencies stands at about 3%.The risk-return ratio was the primary consideration when investing in crypto, as 44% of respondents rated this characteristic as “highly important.” Other factors deemed relatively less important were “diversification” and “my company is convinced that the technology will be important in the future.” Download the Institutional Demand for Cryptocurrencies Global Survey 2022 Report on the Cointelegraph Research TerminalMore than just BitcoinAs anticipated, Bitcoin (BTC) comes out on top in popularity since it is held by 94% of institutional investors who own cryptocurrencies. Ether (ETH), however, is close behind with 75%, and security tokens, along with stablecoins, follow with 31% each. Cryptocurrencies are not the only digital assets considered for purchase by institutional investors as some of them plan to add tokenized securities and nonfungible tokens (NFTs) to their portfolios. Another attractive sphere for institutional investors is metaverse platforms, as projects in the sector have already attracted $120 billion in investments in 2022. According to McKinsey, 59% of consumers are excited about transitioning their daily activities to metaverses. The industry as a whole is expected to reach a market impact of $5 trillion by 2030.Institutional investors opt for crypto funds and derivativesDespite preferring direct investments in crypto to investment funds and structured products, most institutional investors gain exposure to digital assets via passive funds, such as Grayscale’s Bitcoin Trust. Overall, yearly inflows into cryptocurrency trusts reached $9.3 billion in 2021, but a plunge in crypto prices in 2022 put strong pressure on the share prices of these funds, with passively managed ones taking the most beating.Apart from acquiring shares of actively and passively managed funds, institutional investors get involved in the crypto derivatives market thanks to high liquidity. Spot markets offer a fifth to an eighth of the liquidity of derivatives markets for Bitcoin and a quarter to a fifth for Ether. Professional investors seem to be more interested in the latter asset, as its options open interest ($5 billion) recently surpassed that of Bitcoin’s ($4.8 billion).Liquidity risk worries investors the mostLiquidity risks turned out to be the strongest obstacle to crypto adoption as 51% of respondents marked them as highly important. The more volatile the asset, the less conservative investors want to hold it on a balance sheet. In spring 2021, Tesla sold off some of its Bitcoin holdings to demonstrate to shareholders the liquidity the asset had. This went a long way in showing not only Tesla shareholders — but the rest of the equity markets as well — that holding digital assets, such as Bitcoin, could have its advantages.For access to research and databases, visit the Cointelegraph Research TerminalCybercrime and fraud risks along with operational risks follow suit, a major change compared to the results of the survey by Cointelegraph conducted in 2020 when regulatory risks were perceived as the most severe. They are, however, still a significant obstacle, preventing one out of four professional investors from buying Bitcoin, according to the survey’s results.This article is for information purposes only and represents neither investment advice nor an investment analysis or an invitation to buy or sell financial instruments. Specifically, the document does not serve as a substitute for individual investment or other advice.

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Bitcoin, venture capital and security tokens flash green: Report

The blockchain industry does not exist in a bubble. The impact of the rest of the world’s economic turmoil seems to be stomping all over the progress of the “blockchain revolution.” Traditional markets like the S&P 500 index crashed by more than 11.5% in September, while the tech-heavy Nasdaq 100 index plummeted by 12.5%. However, Bitcoin (BTC) may have seen a decoupling, having only dropped 3% during this same period. For some, these are signs of a bottom for Bitcoin, but it does not necessarily mean an immediate reversal is upon the market. Are there other positive flashing signals we can see in the charts? Every month, Cointelegraph Research releases an Investor Insights report that analyzes key indicators from different sectors of the blockchain industry. Gauges from 10 segments in the blockchain space — including regulation, crypto mining, security tokens, Bitcoin and Ether (ETH) derivatives, and venture capital (VC) activities — are analyzed by those working closely with the subject matter. Download and purchase this report on the Cointelegraph Research Terminal.Bitcoin and beyond Venture capital is often a lagging indicator of market sentiment in traditional markets. In 2021, the blockchain space saw continuous increases in capital inflows per quarter. In 2022, Q1 continued this trend, while Q2 began to show a slowdown in VC capital coming into the space. However, September saw a 20.6% uptick in the capital investment of VCs over 93 deals throughout the month. Web3 had the greatest number of individual deals at 31 and brought in $378.8 million, while Infrastructure had 29 deals and saw the bulk of investment at $913.6 million. This could be another indicator that the bottom of this cycle of the bear market is in. Security token volume growsIn September, security token market capitalization grew by 6.27% — $18.7 billion compared with $17.6 billion in August. The volume also exploded by 19.76% over the previous month. The action within security token markets is not the only positive, as news that Hong Kong’s government is encouraging proposals for security tokens to be given to the Securities and Futures Commission (SFC) bodes well for the sector. While this may be an often neglected area of interest by the average blockchain investor, security tokens do help demonstrate mainstream adoption in different applications for the blockchain industry and could be a good indication of how all crypto markets play out in the near future. The Cointelegraph Research teamCointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical and hard-won experience, the researchers on the team are committed to bringing the most accurate and insightful content available on the market.Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources in order to provide accurate, useful information and analyses. With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with the Investor Insights Report. Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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Glimpses of positive momentum in an overall bearish market? Report

Look at different segments of the blockchain industry, they seem to react to events in the broader world. While one segment like nonfungible tokens (NFTs) could experience a sudden rise in interest and investment, other areas like decentralized finance (DeFi) may be slowing or stagnant. It is no different for the month of August, which saw positive signs, such as Bitcoin’s long-term-holder numbers nearly reaching its previous all-time high of over 13.6 million. Other segments, such as GameFi, experienced a 13.8% decrease in new users in the space from July. It’s important for those involved in the blockchain industry to have a finger on the pulse of different areas of the market, and Cointelegraph Research’s latest Investor Insights analyzes key indicators from different sectors of the blockchain industry. Cointelegraph Research’s analyst looked at 10 segments in the blockchain space, including regulation, crypto mining, security tokens, Bitcoin (BTC) and Ether (ETH) derivatives, and venture capital activities. Download and purchase this report on the Cointelegraph Research Terminal.Long-term Bitcoin holders near all-time highsAt the end of August, the supply held by long-term Bitcoin holders was 6,000 coins away from reaching its ATH of 13.61 million. Long-term-holder supply is the number of coins that have not moved in 155+ days. This amounts to 70.6% of the total outstanding supply and is the threshold at which the probability of selling and spending in the future diminishes. Such a high number marks a very bullish signal, giving insight into the supply that may be on the market in the future. This is only one side of the supply-and-demand equation, however, and crypto does not act in a vacuum outside of overall macroeconomic conditions. As can be seen in the chart below, BTC’s price went down even as supply left the market. NFTs, crypto stocks and venture capital flash caution flagsMost of the segments analyzing August in the latest report show an Investor Insights score denoting a cautionary phase. This includes NFTs, which saw borrowing protocols like BendDAO suffer liquidity issues, giving some great opportunities to get into high-value blue-chip NFT projects. Venture capital (VC) saw the continuation of the downtrend in investment capital in August, down over 31% from the previous month. It’s perhaps not a surprise, as firms look to remain risk-averse during these uncertain times, investing mostly in solid projects with long-term time horizons. This is a trend also seen in crypto stocks, with the graph below showing several companies with stocks with negative monthly returns.The Cointelegraph Research teamCointelegraph’s Research department comprises some of the best talents in the blockchain industry. Bringing together academic rigor and filtered through practical, hard-won experience, the researchers on the team are committed to bringing the most accurate, insightful content available on the market.Demelza Hays, Ph.D., is the director of research at Cointelegraph. Hays has compiled a team of subject matter experts from across the fields of finance, economics and technology to bring to the market the premier source for industry reports and insightful analysis. The team utilizes APIs from a variety of sources to provide accurate, useful information and analyses. With decades of combined experience in traditional finance, business, engineering, technology and research, the Cointelegraph Research team is perfectly positioned to put its combined talents to proper use with the Investor Insights Report. Disclaimer: The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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