3iQ’s Top 5 Digital Asset Stories of the Week
March 11 – March 17, 2020
Report: Bitcoin Sell-off Caused by Short-term Holders and Speculators
CoinMetrics | March 17, 2020
Last week, bitcoin suffered one of its largest one-day price declines in history. New reports have surfaced claiming that this decline was likely driven by short-term holders and speculators. According to on-chain data analyzed by Coinmetrics, a “vast-majority” of trading activity seen during the sell-off last week involved bitcoin that had been held less than 1-year.
Report: The Beauty of Creative Destruction for Bitcoin
Arca Research | March 16, 2020
Jeff Dorman, CFA notes that the sell-off last week in bitcoin shouldn’t be trivialized, but claims that its decline was something “beautiful”, as unlike equities markets which triggered several circuit breakers last week, there were no circuit breakers to stop the declines in crypto. The snap-back rally in Friday’s equities markets alone equated to $2-3 trillion USD in paper gains, dwarfing the entire industry size of digital assets which are still under $200 billion USD.
Bitcoin Derivatives and Liquidations Contributed to Last Week’s Decline
CoinDesk| March 12, 2020
Leveraged speculators found themselves in trouble last week, as the popular crypto retail trading platform BitMex reportedly triggered the largest amount of long/short liquidations in 16 months. As bitcoin fell from $7,200 to a low of $5,678, some $702 million USD was force-liquidated on the platform. The platform reportedly liquidated over 90% of all bullish positions in what was seen as a “crowded long trade” unwinding.
NVIDIA Asks GPU Crypto Miners to Help Combat Covid-19
CoinTelegraph | March 16, 2020
The major graphics processing unit (GPU) manufacturer NVIDIA has recently called on crypto miners to contribute to an initiative aimed at researching COVID-19 and other serious diseases. Using “Folding@home”, GPU miners can remotely dedicate their computing power and pool their resources with other enterprises and individuals to help simulate “protein folding, computational drug design, and other types of molecular dynamics”.
The Windfall Game: Stocks, Gold, Cash or Bitcoin
XSquared Ventures | March 2020
A comprehensive survey conducted in February 2020 by Hotspex, Brad Mills, and Xsquared Ventures has been completed, highlighting what the general public thinks about bitcoin. The “Windfall Game” survey was inspired by Ron Paul’s Twitter poll that has been running annually since 2017, which asks “what form” of value would you take a gift of $10,000 dollars in, if you can’t touch it for 10 years. While bitcoin has won that poll three years running, the results from the new survey are also positive for bitcoin. According to the survey, 38.4% of respondents chose bitcoin as the form of value they would like to receive the $10,000 in. Interestingly, the survey also found that respondents from the “wealthy” demographic were more inclined to choose bitcoin over those in middle or low income classes.