From Binance they made an analysis of what is happening with the price of Bitcoin, especially in Argentina
Binance says that the Argentine market shows opportunities to invest in Bitcoin News
Maximiliano Hinz, Latam Operations Launcher of Binance said that the increase in the price of Bitcoin serves to analyze together with variations of the market in Argentina.
Then he added: „Without a doubt it is a volatile asset and like all investments it has to be made in a conscious way, but the opportunities that exist in our country (Argentina) are even better than those of the rest of the markets. Those who are interested in investing in bitcoin, can do it with amounts as small as 100 ARS“.
Analyzing the Bitcoin price increase worldwide
Binance is a global blockchain company that owns one of the most known digital asset exchanges in the world, with more than 15 million users and a daily transaction volume of more than USD 3,000,000,000, according to the company…
In a statement, they noted that, for the first time since mid-2019, Bitcoin has been trading consistently above USD 12,500 and the difficulty of its mining rose to a new all-time high (~20.00T) on October 18, reaching a hash rate (Bitcoin Network processing power) of ~ 137.80 EH/s.
In this sense, they explained that the mining difficulty can be expected to increase even more, with the next reset of the difficulty in November.
In comparison, they stated from Binance that the transaction fees charged by the miners remained low, representing less than 8% of the total revenue flow. Therefore, the recent growth in the hash rate could indicate possible short-term bullish views on bitcoin capital appreciation.
„Grayscale Bitcoin Trust has also grown from 262k BTC in December 2019 to 488k BTC (on October 21), showing the appetite for bitcoin in the retail and institutional markets,“ the statement said.
„In addition, BTC has been issued massively at Ethereum, after the summer of DeFi and with interesting yields at BTC (e.g., the Curve BTC crop group). In total, more than 144k BTC are issued at Ethereum, clearly dominated by two players: WBTC (106,786 BTC) and renBTC (26,755 BTC),“ they added.
Due to the exchange restrictions in Argentina, the number of users in brokers and crypto-currency exchanges has increased
„In the midst of Bitcoin’s reshaping of the futures landscape, Bitcoin’s open interest (futures + perpetual) stood at more than $4 billion, even lower than its Aug. 17, 2020, peak of $6 billion. The futures/perpetual landscape is not dominated by a single market participant in terms of open interest market share, but is shared among CME, OKEX, BitMEX, Binance, FTX and Huobi,“ the statement said.
On the other hand, they pointed out that the option market is mainly dominated by Deribit (more than 60% of total OI) and reached an aggregate open interest of Bitcoin options of USD 2.1 billion, a value close to its previous historical high of September 22, 2020. (~$2.2 billion).
As analyzed from Binance, several factors could have influenced the recent evolution of prices:
A number of traditional companies have invested in BTC. Companies such as MicroStrategy and Square have added bitcoins to their balance sheet for their long-term capital allocation strategy.
This could potentially be related to the macro environment resulting from the COVID-19-induced crisis. Several financial and global institutions (e.g. IMF) adjusted their expectations for economic recovery from the COVID-19 crisis, which could further drive a run on alternative assets.
A number of traditional companies have invested in BTC.
Companies such as MicroStrategy and Square have added bitcoins to their balance sheet for their long-term capital allocation strategy.
This could potentially be related to the macro environment resulting from the COVID-19-induced crisis.