Friday, April 23. The week is coming to an end, so we can talk about the most interesting news in the crypto industry for this week.
Institutional Investors Take Advantage of Bitcoin’s Collapse
As we could see at the beginning of the week, the first cryptocurrency fell below $50,000, and institutions from the New York Digital Investment Group (NYDIG) platform decided to use it. That’s what Greg Cipolaro’s strategist says in his twitter:
«We have only been on the side of the buyers for the last 24 hours.»
On April 18, the bid price was $61,000 to $52,000. This drop triggered a surge in trading. The following day, the quotation recovered to $57,500.
Based on Greg Cipolaro’s conclusion, it can be understood that the main pressure was triggered by Bitcoin holders from Asia.
«Our users can buy all the kickbacks, which can affect the growing readiness for high Bitcoin volatility. Our opinion is due to a change in the longitude due to the large volume of the lever, not in the fundamental background», – the expert explained.
Today, April 23, we can still see the fall of the first cryptocurrency to $48,000.
Coinbase executives sell their shares
As we told in the last digest, on April 14, Coinbase shares were traded on Nasdaq, where the capitalization exceeded $85 billion.
In the following days, top managers began selling large packages of their securities.
One of the directors, Marc Andryssen, and two organizations sold about 1.18 million shares worth $449.2 million.
Frederick Wilson sold from 4.7 million securities for a total of $1.82 billion.
Alicia Haas, the company’s chief financial officer, also sold her shares.
It is worth noting that at the moment, Coinbase shares have fallen by 12%.
Resonance and outrage in the crypto community, as well as from financiers, raised a tweet from a Twitter user who posted a screenshot from Open Insider showing Coinbase’s sales of its shares.
Paul Greval, the company lawyer says:
«A company may sell part of its shares to generate sufficient supply and liquidity. The largest shareholders were management, which means that they would provide the largest sales at the time of listing.»
The index of dominance of the first cryptocurrency fell below 50%
Let’s talk a little bit about Bitcoin’s dominance index.
The Bitcoin Dominance Index (BBI) is a statistic that displays a portion of bitcoin in the totality of existing cryptocurrencies. Due to the dominance index of bitcoin, it is possible to determine the upcoming emerging trend in the crypto market. Even at a time of correction or high volatility, the IDB will help determine the demand for the main cryptocurrency.
To date, according to CoinGecko, the Bitcoin dominance index has fallen to 48.57%. It
is believed that when the market value of the first cryptocurrency decreases below half of the total capitalization of cryptocurrencies, the altcoin season is approaching.
At the beginning of this year, the cryptocurrency rose by 90%, thereby setting a historical record above $64,000. But in mid-April, there was a sharp drop in the price and at the time of writing, the main cryptocurrency is trading at $48,500.
You can pay attention to altcoins, such as Etherium.
It showed the highest income and its price broke through the $2600 mark.
Over the past weeks, Finance Coin, Bitcoin Cash, and Dogecoin have also risen to record levels.
Bitcoin network commission exceeded $60
As China’s electricity supply is being severely disrupted, the average commission of the main cryptocurrency has exceeded $60.
This was at the peak of the bull market cycle in 2017.
Due to the decrease in network computing power, the interval between blocks was increased to 15 minutes.
Currently, the complexity of the Bitcoin network is very high – 22.24T.
On 19 April, the longest interval between blocks was recorded, the first at 15:12 (MSC) and the second following at 17:14 (MSC). This figure indicates that some people had to wait about two hours for their deposit.
Due to power outages in some of China’s provinces, which have significant production capacity for the first cryptocurrency, the price fell by almost $10,000.