Bitcoin has rejected at the $10,000 level again this week, leading to a steep sell-off Thursday. Bitcoin fell alongside the stock market, which saw its worst day since mid-March as fears of a second wave of the Coronavirus swells across the country.
Another critical factor that contributed to the drop was the liquidation of futures contracts. Within 30-minutes, $14 million worth of Bitcoin shorts were liquidated on BitMEX alone. As BTC continued to drop, another $2 million of longs were also liquidated.
BTC has recovered from this week’s low and, at the time of writing, was trading at $9,385.
Don’t Do This
This week, an unknown Ethereum user sent $138 worth of Ethereum (ETH), a transaction that would have gone completely unnoticed if not for the fact that the user paid 10,668 ETH, or roughly $2.6 million, to transfer the funds.
To make matters worse, the same user made this mistake a second time to transfer $87,000 worth of crypto, leading many to speculate a bug in the user’s wallet.
Luckily, the group of miners that processed this transaction noticed the suspicious activity and marked the transfer as an accident, asking the user to reach out to them to reclaim the funds.
It’s important to note that things could have gone very differently for this user had the mining pool decided to go ahead and accept the fee and process the transaction – profiting a cool $5.2 million.
One of the great things about crypto is that you have control over storing and transferring your funds, but with great power comes great responsibility. Let this be your friendly reminder always to double-check where you’re sending your crypto and how much you’re sending because unlike a bank, you can’t call the blockchain and get your money back. Not even if you ask to speak to the manager, Karen.
Institutions Buying Crypto Futures Doubled
Fidelity Digital assets released its 2020 Institutional Investors Digital Asset Survey, which found that the number of institutions buying crypto futures doubled this year. According to the research, the most appealing characteristics to investors are the lack of correlation with other asset classes, the innovative technology, and the high potential upside.
Other positive findings included;
- 36% of institutional investors surveyed currently invest in digital assets.
- Almost 60% of all investors surveyed have a neutral or positive perception toward digital assets.
- Almost 80% of investors find something appealing about digital assets.
- More than 6 out of 10 investors feel digital assets have a place in portfolios.
The report paints a very positive picture for the future of crypto assets, as institutional interest continues to grow.