Bitcoin’s Market Dominance Exceeds 69% as Institutional Money Pours In
Bitcoin’s price traded marginally higher on Saturday, allowing the digital currency to reclaim 69% of the cryptocurrency market share. If recent developments around institutional adoption are anything to go by, bitcoin could be headed a lot higher in the medium term.
The bitcoin price traded within a $260 range on Bitstamp. After reaching a session high of $10,472.93, the price would eventually return to the $10,360 range, where it currently sits.
Bitcoin’s next hurdle is around $10,730, which corresponds with the 30-day exponential moving average. If breached, this support-turned-resistance could pave the way for a quick return above $11,000.
Based on the daily chart, there’s not much bullish momentum in the bitcoin market right now. At 45, the relative strength index (RSI) is hovering near its lowest levels of the year.
At current values, bitcoin has a total market capitalization of $185 billion, bringing its dominance rate to 69.1%.
Spot trading in BTC declined significantly on Saturday. Ten verified exchanges processed $957 million worth of bitcoin trades in the last 24 hours, down from around $1.6 billion on Friday.
Institutional Adoption on the Rise
One of the world’s largest cryptocurrency exchanges says institutional adoption of bitcoin is on the rise.
Brian Armstrong, CEO of the San Francisco-based Coinbase, says his firm’s institutional arm is seeing up to $400 million a week in new cryptocurrency deposits.
“Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it’s safe to say we now know the answer. We’re seeing $200-400M a week in new crypto deposits come in from institutional customers,” Armstrong tweeted Thursday.
He added that trusted infrastructure for institutional investors is “just one small step on the journey to building the cryptoeconomy.”
Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it's safe to say we now know the answer. We're seeing $200-400M a week in new crypto deposits come in from institutional customers.
— Brian Armstrong (@brian_armstrong) August 16, 2019
Armstrong’s comments came mere hours after Coinbase acquired Xapo, a Hong Kong-based cold wallet provider. The acquisition gives Coinbase the title of being the world’s largest bitcoin custodian.
Meanwhile, less than 24 hours ago, Intercontinental Exchange’s Bakkt startup confirmed it has received final approvals to launch the first physically-settled bitcoin futures contract. The new market for bitcoin futures will be launched September 23.
“One year ago, we announced our ambitious vision to bring institutional infrastructure to digital assets with an end-to-end regulated marketplace,” Kelly Loeffler, Bakkt’s CEO, said in an official blog post. “That vision will be realized on September 23 when Bakkt launches custody and physically-delivered daily and monthly bitcoin futures contracts in partnership with ICE Futures U.S. and ICE Clear US.”
Bakkt was able to raise $740 million in Series A funding before having any customers under its belt, a strong sign that investors are betting big on the future of cryptocurrency.
From the perspective of institutional adoption, the next major development concerns the U.S. Securities and Exchange Commission, which is expected to deliver its ruling on a bitcoin exchange-traded fund (ETF) later this fall.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Charts via TradingView.