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Bitcoin News Cryptocurrency News Ethereum News Litecoin News Ripple News

It’s Not Just Institutional Thirst, Retail Demand For Crypto Reaches ‘Unprecedented’ Levels

There’s just not enough Bitcoin to meet demand.

That’s not just some hopium-based fantasy by the leader of a fringe crypto cult.

No, it’s simple fact from tallying just a couple places where Bitcoin can be bought.

We’ve reported that institutional money is moving into cryptocurrency assets, and that institutional demand is higher than it has ever been.

Retail demand is also currently at “unprecedented levels.”

Unprecedented levels

Israeli trading and investing platform Etoro warned customers in Europe on Friday of possible limitations on crypto purchasing over the weekend. In an email, the exchange said: “The unprecedented demand for crypto, coupled with limited liquidity, presents challenges to our ability to support buy orders over the weekend. In light of this, it may be necessary for us to place limitations on crypto buy orders.”

eToro’s statement acknowledging unprecedented demand is just one of many that point to the fact that there isn’t enough Bitcoin available at today’s prices to meet demand.

Pantera Capital’s recent monthly letter to investors states that:

In last month’s investor letter we discussed that after 30 months of operation, Square’s Cash App is estimated to be buying around 40% of all newly-issued bitcoin.

PayPal just launched their new service that enables customers to buy, sell, and hold cryptocurrency directly from their PayPal accounts. It’s already having a huge impact.

The bitcoin community is proud to have grown to 100 million users over twelve years. PayPal has 300 million active users. As we’ve argued — and will argue more fully in our December investor letter — this rally is much more sustainable than 2017. One of the main differences is the ease of investing in bitcoin now — via PayPal, Cash App, Robinhood, etc.

Previously the friction to buy bitcoin was pretty onerous: take a selfie with your passport, wait days to a week to get activated, daily limits.

Three hundred million people just got instant access to Bitcoin, Ethereum, and other cryptocurrencies.

BOOM! The results are already apparent.

PayPal’s crypto infrastructure provider is Paxos. Prior to PayPal’s integration of crypto, itBit, the Paxos-run exchange, was doing a fairly constant amount of trading volume — the white line in the chart below.

When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of bitcoins.

PayPal and Cash App are already buying more than 100% of all newly-issued bitcoins.

Only 900 New Bitcoins Created Each Day

Bitcoin supply is growing daily. Literally, it’s growing by 6.25 newly created Bitcoins with each new block mined. By design, one Bitcoin block is mined every 10 minutes, resulting in an average of 144 new blocks every day. 144 x 6.25 equals 900 new Bitcoins created each day.

Genuine Bitcoin Investor Demand

As we reported above, just Paypal and Cash App are responsible for buying more than 900 Bitcoin per day.

Let’s look at another rather obscure place to buy Bitcoin: LocalBitcoins.com. This is a site outside of the massive mainstream crypto exchanges. It is sort of a peer-to-peer classified ad site that matches buyers with sellers on an individual level.

Compared to the big exchanges, such as Coinbase, this site is tiny. For instance, Binance alone had a Bitcoin trading volume in the past 24 hours of $2.77 billion at press time.

Contrast that to the average daily trading of Bitcoin at localbitcoins.com which is a mere $6 million. The difference in size is staggering. The point being, trading volume at localbitcoins.com is a tiny, extremely tiny, amount of Bitcoin being bought each day.

Now, be aware that most of the trading volume on Binance and other big exchanges is just that: trading, not investing. A trader can buy and sell multiple times per day with each of those trades adding into the cumulative total trading volume.

On localbitcoins.com it is definitely not “traders” doing the trading, it is mom and pop type of people buying Bitcoin to hold as an investment.

So let’s look at the numbers. $6 million worth of Bitcoin are being bought right now every day on localbitcoins.com.

How many Bitcoin is that?

$6,000,000/$37,000 each equals 162 Bitcoin.

Remember, there’s only 900 being created. And this tiniest little peer-to-peer exchange is responsible for its users buying up almost 1/5 of all newly created Bitcoin each and every day. This is purely Bitcoin volume, and does not include other cryptos such as XRP and Litecoin.

Paypal and Cash App are already buying more Bitcoin than are being created each day. This tiny little site is facilitating the buying of nearly 20% of all new Bitcoin being create. What about the customers of Binance? What about demand from the customers of Coinbase, Gemini, Kraken, Bittrex, Bitstamp, Huobi, Bitfinex, and hundreds of other exchanges are are many times lager than localbitcoins? Where will all the Bitcoin come from for those buyers to be able to purchase?

Only Existing Holders Can Supply Bitcoin To Match Soaring Demand

One thing is certain, there is no way to increase the supply of new Bitcoin being created each day and available on the market. With demand absolutely overwhelming new supply, that only leaves existing holders willing to sell in order to satiate buyer demand.

Which means only one thing: prices will continue to be bid higher.

There’s good reason for the crypto fear and greed index to be pegged on greed.

How high is high? Here’s our Bitcoin forecast for this year and beyond.

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Cryptocurrency News Ripple News

Kraken Joins Growing List Of U.S. Exchanges Delisting XRP

XRP just is not winning now, as Kraken currently stands as the newest crypto exchange set to suspend trading in XRP tokens. The reason given, similar to the a number of other institutions as well as exchanges which dropped XRP like a hot potato in recent weeks, was because of the SEC enforcement actions brought against Ripple.

Kraken announced on Jan. fifteen that it will halt trading in XRP for US residents. From the company’s statement:

Given the recent SEC filing against Ripple Labs Inc., we are halting XRP trading for U.S. residents no later than January 29, 2021 at 5pm PT (January 30, 2021 at 1:00 UTC). We may begin implementing this process at any time on January 29, 2021, so all U.S. clients are strongly encouraged to resolve their positions prior to that day.

U.S. residents with open XRP spot positions on margin should satisfy their margin obligations by January 28, 2021 at 11:59pm PT or their positions will be liquidated in accordance with our Terms.

The exchange specified that US residents would still be in a position to deposit, hold, and withdraw XRP after the freeze takes place. The activity impacts just US residents; “Clients residing in some other places aren’t affected.”

The announcement additionally contains a FAQ list. It covers subjects like just how long the ban can last (they will adjust to any kind of change in the SEC saga). The upcoming change to a deposit-hold-withdraw mainly regime might improve when the circumstance should improve. Furthermore, the company’s plans about the Spark token airdop remain unrevised.

The SEC Move

News about Ripple has been decidedly negative since the SEC filed its lawsuit against Ripple. The SEC claims that the company sold $1.2 billion of unregistered securities in the type of XRP tokens. Former CEO Christian Larsen along with current CEO Brad Garlinghouse can also be charged with offering another $600 million in unregistered securities in the type of XRP.

Ripple Labs is actually guarding itself in court and in the media. Garlinghouse especially has taken to Twitter to clarify the company’s position, stating that nobody has been quiet, neither can they give up this fight. Garlinghouse claims to be on the proper side of the facts and of history, and is looking forward to Ripple’s day in court – in addition to engaging with the brand new SEC leadership when appointed.

Ripple Treading Water

Exchanges with substantial US exposure even moved fast. Garlinghouse observed that the US accounts for approximately five % of XRP holders, though the exchanges kept a watch on compliance. Bitstamp, Binance, Coinbase, along with OKCoin are actually among the exchanges which have signaled stoppages.

In a single indication as to just how Ripple is going to leave this eddy of exercise, SEC Commissioner Hester Peirce, commonly recognized as ‘Crypto Mom‘, reported in a recent interview that fees like these frequently get settled out of court.

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Cryptocurrency News Ripple News

Binance To Delist XRP Trading On January 13, 2021

XRP continues to make the news. We’ve previously reported on the lawsuit that the Securities and Exchange Commission filed against Ripple, causing a major price crash in XRP.

Then Bitwise axed XRP from its crypto index fund.

That was followed by Bitstamp suspending trading in XRP for all U.S. residents.

Ripple’s lawyers were busy during all the flurry preparing a response to the SEC lawsuit.

Maybe it was the holidays, maybe it was wishful thinking, but along the way investors developed some hope that the worst of the bad news had already hit and bid up the price of XRP in anticipation of better days ahead.

Alas, it was not to be as more bad news just crossed our desk. Binance, the world’s largest cryptocurrency exchange, has announced that it is delisting XRP trading for U.S. residents beginning on January 13, 2021.

A statement on the company’s website reads:

Effective Wednesday, January 13, 2021 at 10am EST, XRP will be delisted from Binance.US. XRP trading and deposits will be suspended. 

When will XRP investors get a break from the barrage of bad news?

You can read the full statement here.

Categories
Cryptocurrency News Ripple News

Bitstamp Suspends XRP Trading

Bitstamp has announced its suspension of XRP trading for U.S. citizens, joining the rapidly growing list of other crypto exchanges that have moved to remove the token from their platforms.

Starting from Jan. 8, 2021, Bitstamp’s U.S. customers will no longer be able to deposit or trade the fourth-largest cryptocurrency. From Bitstamp’s statement on XRP:

“In light of the recent SEC filing against Ripple Labs Inc., which alleges that XRP is a security, we are going to halt all trading and deposits of XRP for our US customers on 8 January 2021 at 9 PM UTC. We will closely follow the unfolding situation and continue to adapt accordingly.”

As reported by us two days ago, Ripple was slapped with a bombshell lawsuit by the U.S. Securities and Exchange Commission SEC on Dec. 22, causing the XRP price to plummet.

Earlier today we reported that XRP was bouncing back from its 3-day price crash, and was up over 40% in the past 24 hours. However, Since the news of the Bitstamp news was released, XRP’s price rise has fizzled, with the current price at the time of publication only up 10.4%.

Notably, Bitstamp is the first major exchange to drop XRP due to its predicament with the regulatory watchdog. The Luxembourg-based company was founded back in 2011. The Bitwise Crypto Index Fund has also axed its holdings of XRP.

XRP Trading Suspended At Bitstamp