In a blog post, Chainalytics stated that 76.9% of the trading volume in the region consisted of transfers of 1 million dollars or more, indicating that there are large institutional investors.

As expected, activities in the region shrank after the FTX exchange crash.

But regulators closed down Silicon Valley Bank in March during the banking crisis, and this appeared to be a smaller shock. They took actions against banks that were friendly to crypto, such as Silvergate and Signature, following this move.

Chainalytics;

“On-chain activities are starting to accelerate again from June. Transaction size data shows that the main cause of the overall decline in activity is withdrawal from institutional investors, such as retail users and sub professionals.”

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Stablecoin Usage

The banking shock experienced may reduce stablecoin usage in North America. According to Chainalytics, stablecoin usage fell from 70.3% of the on-chain transaction volume in the region to 48.8% last year. The market value of the sector saw the lowest level of the last two years.

Chainalytics also said that stablecoin activity is moving away from US licensed services. The report reveals that licensed exchanges outside the US have received the majority of the stablecoins currently in trade.

Chainalytics said, “There are strong interests of US regulators to use some regulatory powers over stablecoins, considering the central role of US dollar reserves for these assets“.

“Regulating Stablecoin also gives regulators a chance to help host crypto businesses in the US, which will play a major role as the digital economy continues to grow in expanding how the US dollar is used globally. However, the data shows more and more. More stablecoin activity is happening through unlicensed organizations in the United States.” said.

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The post Chainalytics: “North America Is World Champion” appeared first on Coin Engineer.

WHAT IS AN ETF?

“ETF” stands for exchange-traded fund. Think of it this way: you have a pencil and give the price right to someone, not in a physical sense. The person with the price right buys and sells at the current price of that pencil and makes a profit. But they do not own the pencil. The working mechanism in Bitcoin will be similar. People will be able to buy and sell Bitcoin without the need for large crypto exchanges, even from the stock exchanges they have at hand. This is good news for our market. Because the entry of the middle and older age group into the market may indicate that the volume may increase.

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WHAT TO EXPECT IF THE ETF IS APPROVED?

We are constantly witnessing news that Bitcoin ETFs are being delayed. They will probably use all the possible delay periods. With these short delays, they will also prevent Bitcoin declines.

Let’s first examine the nearest important decision dates together:

Bitwise – October 16 

BlackRock, Fidelity, VanEck, WisdomTree, Invesco – October 17 

Valkyrie – October 19 

Suppose BlackRock got the ETF approval, this company alone manages $10 trillion in assets. The market cap of all cryptocurrencies is only $1 trillion (including altcoins), i.e. 10 times less. We can witness significant increases if these ETF approvals come – which will come in 2024 since we know many SEC members in the US look favorably on approval – we might see a breathless rise to $35-40k. There is also clearly a gap point at $34k.
The approval of ETFs will bring in new investors to the market and also create a sense of security. On the other hand, the expected ‘Mega Bull’ will also significantly increase the market cap of crypto assets.

A non-volatile asset like gold experienced a full %300 increase after ETF approval. What happens if assets with high volatility like the crypto market get this approval? We will learn the answer to this question very soon.

On the contrary, if the ETF is not approved; troublesome days may be awaiting us in the market. We closely witnessed how much decline even the rumor brought. This possibility may be remote because many people in the US are now favorable towards Bitcoin ETFs.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates.

The post What Happens if ETF Gets Approved? appeared first on Coin Engineer.