Chinese Media, New Promoters of ElonDrop in the Country!

Chinese Media Promoting Cryptocurrencies – The Chinese government has always been against the development of cryptocurrencies in the country. At the end of 2019, the Shanghai bank targeted OCIs, because they were deemed illegal. Earlier in the year, it was bitcoin and ether mining to take the plunge. Faced with these radical actions, the country’s media are retaliating.

A Coordinated Operation

It is believed that China has taken these various crackdowns in anticipation of the deployment of its digital currency, this time controlled by the government. This thesis is subject to many debates. Indeed, different Chinese media seem to have started a coordinated action to promote cryptocurrencies in the country.

It all started on Thursday, September 24, when the Xinhua news outlet published a report on cryptocurrencies. Tracked by the Cankaoxiaoxi newspaper and other public media, digital currencies are called “the best performing market of the year”. The next day, the CCTV channel, with 1 billion viewers, explains in particular that some of these currencies have jumped by 70% during the year.

This growth would be due in particular to ether, which would have largely exceeded bitcoin and XRP. 2 causes were mentioned: the development of DeFi and the growing fear linked to the inflation of fiat currencies.

A Fuzzy Strategy

Some specialists see in this action, a big step for China and an easing of regulations in this market. This is particularly the case of Dovey Wan, founding partner of Primitive Ventures. According to him, this measure should attract more investors to the PRC.

A few citizens seem to feel that this is a campaign to facilitate joining the new digital yuan. Indeed, a few hours after these various announcements, CCTV broadcast a report on the PBoC and its plan to set up massive tests.

As usual, China does not seem entirely clear on its intentions. The idea of ​​promoting cryptocurrencies with no real national interest is rather confusing, which does not prevent it from remaining relevant. Will the media succeed in bending the government?

Grayscale Buys $183 Million Worth of Bitcoin in 3 Days 0

Institutional Investors have a bitcoin fever  – The Grayscale cryptocurrency investment fund is no longer stopped in its buying madness. The fund has just added a new (big) ladle of bitcoins for its products aimed at professional investors.

17,100 more bitcoins for Grayscale

The massive buying pace of the Grayscale investment fund continues unabated. According to bybt , a site that aggregates data on crypto derivatives, the firm would have increased its reserve by 17,100 BTC in less than 3 days or nearly $ 183 million at the current price.

btc Grayscale – Grayscale Buys $183 Million Worth of Bitcoin in 3 Days

Grayscale bitcoin reserves – Source: bybt.com

In total, Grayscale is said to now own 449,900 bitcoins or roughly $ 4.8 billion in its Grayscale Bitcoin Trust (GBTC) fund.

This represents 2.4% of all bitcoin issued since the network’s inception in 2009 until now.

Now $ 6 billion in crypto under management

Grayscale offers shares in other crypto funds in its possession: Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Horizen (ZEN), Stellar Lumens (XLM), Ripple (XRP) ) and Zcash (ZEC).

In total, all of these funds together represent $ 6 billion in crypto-assets under Grayscale’s management, according to an update dated September 28.

09/28/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.

Total AUM: $6.0 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/01F2eg71k2

— Grayscale (@Grayscale) September 28, 2020

Note that all Grayscale shares have a premium. Indeed, as these shares allow professional investors to gain exposure to cryptocurrencies without having to manage storage or other technical aspects, they are ready to pay a premium compared to the market price of cryptos.

Thus, the premium for shares in Grayscale’s Bitcoin fund is over 7%, that in the Ethereum (ETHE) fund is 22% and, for the Litecoin fund (LTCN), it is even more spectacular: + 610% compared to the value in litecoins backed by the units. No doubt because unlike Bitcoin and Ethereum, there are few alternatives in derivatives on the latter.

Institutional investors are increasingly fond of cryptocurrency and Grayscale must buy increasingly large amounts of crypto. Bakkt also is hitting record trading volume on Bitcoin. If we consider the fact that large companies, such as MicroStrategy, are also starting to build up bitcoin reserves, this will inevitably end up having repercussions on prices, even if these purchases are generally made in OTC ( over the counter ).

This Wall Street Giant Holds 38,250 Bitcoins … But He Can “Sell Anything, Anytime”0

Bitcoin or not bitcoin? That is the question! – Michael Saylor, CEO of MicroStrategy, announced on September 22 that the firm may well resell all of its bitcoins at any time. This statement raised many questions, especially since the company had justified its Bitcoin bet in a fairly ideologically marked way.

A massive and recent investment

Michael Saylor had a very strong opinion on Bitcoin. In 2013, for example, he announced the death of Bitcoin by comparing this technology to a casino game, based on luck.

Nevertheless, change of course on August 11, 2020. Indeed, MicroStrategy then announced the purchase of $ 250 million in bitcoins, shaking the cryptosphere.

Finally, on September 16, the company continued this momentum, this time purchasing 38,000 BTC , bringing its total jackpot to around $ 425 million. This acquisition of bitcoins by an institution listed on the NASDAQ had been interpreted as a positive signal for investors.

Michael Saylor justified this purchase by explaining that virtual currency was above all a non-sovereign store of value. In a context of economic instability, safe havens are coveted, and ElonDrop is king.

“We are quite convinced that bitcoin is less risky than holding cash and less risky than holding gold. ” – Michael Saylor

Indeed, gold is always exploited, especially in times of crisis. This overexploitation decreases future returns, which makes the asset less attractive.

Turnaround situation

According to Saylor, bitcoin’s volatility isn’t much of a reason to sell. Still, the man explains that he won’t hesitate to sell if altcoin yields skyrocket.

Selling such a large amount of bitcoin could easily cause the price to drop significantly, as has happened in the past. Although MicroStrategy acquired the bitcoins in 78,338 separate transactions, the CEO says reselling them could be much easier. Indeed, although he explains that his company is now much more comfortable keeping this substantial sum in bitcoins than in dollars, he told Bloomberg that he could just as well “liquidate 200 million dollars in bitcoins ” with a snap of your fingers if needed.

Saylor also indicated that its top 10 shareholders were very favorable to investing more in bitcoin. This information, quite contradictory, suggests that the company is not seeking to emancipate itself from this crypto quickly.

In 2020, many financial institutions took their bet and started taking bitcoin seriously. Business to follow, therefore, depending on the brutal market variations, no doubt!