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Altcoins continue to grow rapidly

Jun 3, 2019

The week ended very well for investors in cryptocurrency, in particular, investors in Altcoins. The number of coins with a capitalization of more than $1 billion increased to 17, while two new participants were added to the TOP by capitalization. Cosmos (ATOM), having risen in price by almost 40%, occupies the 16th position, while Ethereum Classic (ETC) occupies the 17th position. Tezos (XTZ) dropped out of the billionaires’ league, but only 1% of growth will return this coin to the 18th position with a capitalization of more than $1 billion.

Over the last seven days, the growth leader is Bitcoin SV (BSV), with an increase of more than 105%. At the same time, BTC and ETH demonstrate very modest results. The BTC market share continues to decline, approaching the mark of 55.7%. According to CoinMarketCap, in early May, BTC’s capitalization was close to 60% of the entire market.

The growth of Bitcoin SV

One of the most resonant events of the previous week was the growth of Bitcoin SV. An incredibly sharp increase in BSV occurred in two phases. The first stage was about 60% and fell on the European and American session on Wednesday, May 29. The second wave of growth occurred during the Asian session on Thursday, but the historical maximum was set on May 30, during the European session.

One of the reasons for the growth is the fake news that Craig Wright transferred 50000 BTC from one of Satoshi Nakamoto’s purses to the Binance (CoinDesk) exchange to prove that he is the real creator of Bitcoin.

“CSW transferred 50k BTC from the biggest BTC wallet to Binance, which confirmed he is the real Satoshi. As such CZ will re-list BSV and make an official apology on Twitter”, reports Coinbull news site.

This information was sufficient for growth, but investors are not in a hurry to close their long positions. We observe that today, the price of Bitcoin SV (BSV) continues to grow. During the Asian session, the BSV increased from $190 to $225.

Buying 25% BTC

Forbes reports that demand for BTC is incredibly high. Dadiani Syndicate, which positions itself as an investment “platform for maximizing digital investments,” based on an art gallery, helps very wealthy investors acquire digital assets.

“One of our clients approached us and said they were interested in acquiring 25% of all Bitcoin currently available”, Eliza Dadiani, said the founder of the company.

Of course, it is almost impossible to buy 25%, even if we talk about BTC available on the market. However, this is the task, and its realization will inevitably lead to an increase in the value of the largest cryptocurrency. And, nevertheless, the market reacts quite restrained to this news. Since the BTC price is still under the highs of the previous week, it is possible to make two assumptions:

1 – the active buying of BTC, which Eliza Dadiani is talking about, has not begun yet.

2 – this information is fake. In this case, the risk of a short-term BTC collapse increases.

Institutional investors buy BTC

Researchers of  Exchange Binance published a comprehensive report. It discusses many important issues of the industry, but we will emphasize that institutional investors are increasingly investing in cryptocurrency and blockchain technologies.

One of the largest commodity exchanges in the United States (the largest North American financial derivatives market), continues to increase the volume of trades in bitcoin futures. Record trading volume was fixed at $1.3 billion. At the same time, the number of accounts, trading in this derivative, is also increasing.

“Institutional investors, according to our conservative estimates, now make up less than 10% of the total number of market participants. However, the influence of large players on digital assets and cryptocurrencies is growing. This can be seen at a premium of about 40% in the value of the assets of the Grayscale Bitcoin Trust (GBTC) in relation to the spot price of BTC,” the researchers note.

Considering all mentioned above, the likelihood of further growth of BTC price and several other cryptocurrencies remains very high. At the same time, we cannot exclude short-term corrective attenuation.

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