The crypto ecosystem is diverse and combines very different types of investors. A look at cryptocurrencies through the psychological lens.

The various buyers of Bitcoin and Co.

There are roughly four types of people who buy cryptocurrency. The first is the genus Hodler. These are people who have a deep understanding of the underlying blockchain technology and who remain loyal to their coins forever. Hodler are there for the long term – be it to the moon or to the bottom of the valley.

The second type of people who buy cryptocurrencies are retail investors. These are the people who tend to be more trending and stumble into the crypto market with short term investment strategies. When cryptocurrencies like Bitcoin rise, they quickly jump on the bandwagon. But if the hoped-for profits fail to materialize and the market consolidates, they exit just as quickly and liquidate their assets.

The third type of people who buy cryptocurrency are institutional investors. These can be hedge funds, investment firms and banks, or public figures such as Twitter CEO Jack Dorsey. The reason Dorsey is included on this list is that he is unlikely to personally call Bitcoin exchanges like Coinbase or Binance and buy cryptocurrency through them. He is much more likely to buy through an OTC counter with an intermediary such as a financial advisor. These people get on and off the train according to their needs and budget.

The fourth type of people who buy cryptocurrency are criminals. Unfortunately, in the eyes of many people, cryptocurrency, and especially Bitcoin, are linked to illegal activity. While criminals use Bitcoin for their activities (especially hackers), they tend to turn to privacy coins like Monero , which better protect their privacy. They also make up an ever smaller percentage of crypto users as more and more people hold digital currencies overall.

The psychology of the crypto trader

The crypto market never sleeps and that has a similar impact on people who actively trade cryptocurrency. Investors can only protect themselves from the highly volatile price events with stop-loss and other useful tools that can be found on most crypto exchange platforms.

Then comes the problem of crypto custody. While buying, trading, and storing cryptocurrency is easier than ever, it is still far from being a process that can be quickly learned by an inexperienced person. Even for experienced cryptocurrency users, the notion that a single mistake in a wallet address could result in the loss of the coins being held can be very scary.

The future of cryptocurrency en

People who own cryptocurrency are all waiting for the day when crypto will finally become a common concept. The reality is that this will not happen until a healthy balance between regulation and freedom has been struck, either internally within the cryptocurrency community or with government support. In addition, cryptocurrencies must be better explained and marketed for outside interested parties.

Fortunately, these issues are gradually resolved over time. How quickly these processes take place is ultimately up to us. Trench warfare between supporters of different projects and coins stand in the way of the great goal of global crypto adaptation. Rather, the community should network and jointly announce the happy crypto message to the world.

The ongoing Bitcoin rally is pulling the entire crypto market upwards. Meanwhile, ether supply is being drawn into the DeFi sector. The market update.

After yesterday’s dive, the Bitcoin exchange rate is back on track in time for the weekend and climbs confidently above the $18,000 mark in the early hours of the morning. Not much is missing until the all-time high. In view of the rapid price increases, reaching the target mark seems to be a mere formality. On a daily basis, the Bitcoin exchange rate increases by 2.8 percent and is thus traded at 18,241 US dollars at the time of going to press.
Bitcoin price in weekly chart

On the way to becoming the new top brand, Bitcoin has already set a new all-time high with a current market capitalization of over 335 billion US dollars. In punkto market dominance the largest crypto currency lets the muscles play thus again opposite the Altcoins. The BTC dominance lies with at present scarcely 67 per cent only not far under the past yearly high of 69 per cent in May. However, this mark should also fall soon if the rally continues.

The re-ignited Bitcoin hype is reflected in a high level of on-chain trading activity. According to Coinmetrics, the number of active addresses on November 18 was over 1.19 million – the highest measured figure since January 2018.

Rotate Altcoins to

But Bitcoin is not the only one in the high-altitude rush. Almost the entire crypto market is currently benefiting from the BTC upswing. With the exception of Bitcoin Cash (BCH), all top coins are turning positive on a weekly basis.

In the Bitcoin slipstream, Ether (ETH) in particular is growing rapidly. On Wednesday the second largest crypto currency with 492 US Dollar set up a new yearly high and indicates with a 24-hour plus of 3,2 per cent the next attack on the mark. At the time of going to press, the ether exchange rate was quoted at 485 US dollars and recorded an increase in value of 5.6 percent in a weekly comparison.

Ether exchange rate on the weekly chart

The ether rally is strengthened not least by the constantly increasing integration in DeFi applications. Thus, supply is gradually shifting from the stock exchanges to decentralized finance. As the following chart from Glassnode shows, the share of ether supply in smart contracts has risen to over 15 percent. At the same time, the supply held by exchanges has shrunk to 15.7 million.

The footprint of Bitcoin is also growing in the deFi ecosystem. The circulating supply of Wrapped Bitcoin (WBTC), an ERC20 token covered by Bitcoin 1:1, has already risen to over 124,000 units. At current exchange rates, the Total Value Locked (TVL), i.e. the total volume of tokens integrated in DeFi applications, is thus over 2.2 billion US dollars.

According to Defipulse, the entire DeFi market currently has a TVL of around 13.8 billion US dollars. Wrapped Bitcoin alone thus represents around 16 percent of the total value of all tokens integrated in DeFi applications. Bitcoin is thus continuing to expand its dominance in the up-and-coming DeFi sector, at least indirectly. In its tokenized form of existence as a WBTC, the asset is developing into a fixed DeFi size and is thus once again a beneficiary. After all, the growing demand for BTCs in the smart contract-based sector is also driving up the exchange rate.

As Uniswap’s cash mining rewards programme will end within a week, the project has called a community meeting to discuss how to move forward.

The large decentralised Uniswap exchange has announced an „unofficial community call“ set for November 12 at 5:00 pm UTC. The call is scheduled to discuss several central Uniswap governance issues, including the future of its liquidity mining programme.

After a series of rival DEX clones attempted to divert Uniswap users by exorbitant native token rewards to liquidity providers during the DeFi boom, Uniswap retroactively launched its native UNI token to users and launched its own liquidity mining program Ethereum Code scam in mid-September.

UNI token, understanding everything behind the Uniswap governance token
Uniswap’s current liquidity mining programme is scheduled to end on 17 November, and a date has been set to discuss whether to extend the existing programme or revise the plan. The initial programme allocated UNI 5 million for the air launch to liquidity providers in total, equivalent to 83,333 tokens per day.

Many believe that the UNI air launch and liquidity rewards programme helped the exchange secure its position as a leading DEX in the face of numerous „vampire attacks“. However, the program may now have a negative impact on the price performance of Uniswap’s government tokens; the reward program airdrops over $260,000 in tokens daily at the current price of $3.13 each.

Investors have returned to Bitcoin, but DEX is still the future of crypto currencies
UNI began trading for approximately $3, and news of the liquidity mining programme helped drive a rally to a peak of nearly $8 within three days of the token’s launch. However, UNI fell steadily from September 19 to early November to reach a record low of $1.80 on November 5.

Some traders believe that the best thing for the Uniswap token would be to stop the liquidity mining program, and Twitter user „Tetranode“ is telling his 5000 followers that ending liquidity rewards and associated selling pressure would lead to a new phase of price discovery for UNI:

In the third quarter before October saw the DeFi boom, DEX volumes were up by over 1,000%

The community meeting is also scheduled to discuss Uniswap’s first two failed governance proposals, project governance processes and integrations with fellow heavyweights DeFi, Compound and MakerDAO.

Translated with www.DeepL.com/Translator (free version)

Este factor podría dar un nuevo impulso al Bitcoin Rally

Bitcoin ha experimentado una inmensa volatilidad en los últimos días. La moneda se negocia actualmente por 13.800 dólares – por encima de los mínimos de 13.200 dólares del lunes, pero por debajo de los máximos diarios de 14.100 dólares y los máximos del fin de semana al mismo nivel.
Bitcoin ha subido alrededor del 1,5% en las últimas 24 horas – y algunos analistas creen que BTC a Bitcoin Storm está dispuesto a subir debido al mercado de futuros.
Un analista ha compartido datos que muestran que los mercados de futuros para la moneda criptográfica están claramente en declive en este momento.
El problema, según el analista, es que muchos de estos cortos son bajistas, mientras que la tasa de financiación también es negativa.
Esto podría llevar a un llamado „apretón corto“, que podría empujar a Bitcoin hacia arriba.

Los datos de los futuros muestran: Bitcoin podría moverse aún más alto

Bitcoin ha experimentado una inmensa volatilidad en los últimos días antes y durante las elecciones presidenciales de los Estados Unidos. La principal moneda criptográfica se negocia actualmente por 13.800 dólares, por encima de los mínimos de 13.200 dólares del lunes, pero por debajo de los máximos diarios de 14.100 dólares y de los máximos del fin de semana en el mismo nivel.

Bitcoin ha ganado ligeramente en las últimas 24 horas, mientras que la volatilidad está haciendo que la moneda criptográfica fluctúe entre 13.000 y 14.000 dólares.

Los analistas dicen que es probable que Bitcoin siga aumentando en las próximas horas y días. Un analista de criptografía ha dividido el gráfico que figura a continuación, que muestra que los mercados de futuros de criptografía están claramente en declive en este momento.

El problema, según el analista, es que muchos de estos cortos son bajistas, mientras que la tasa de financiación también es negativa. Esto aumenta enormemente las posibilidades de que Bitcoin esté sujeto a una contracción corta, lo que hace que los precios suban rápidamente.

„Mientras tanto, la tasa de financiación en Binance ha sido negativa en general en los últimos días y la relación L/S también ha caído (más cortos). Me parece que un montón de pantalones cortos sobreendeudados están bajo el agua“.

Gráfico de la evolución de los precios de la BTC en las últimas semanas con el análisis del comerciante criptográfico Byzantine General (@ByzGen On Twitter). Fuente: General Bizantino: BTCUSD de TradingView.com

La tasa de financiación es la tasa con la que las posiciones largas pagan regularmente las posiciones cortas para mantener el precio futuro en el mercado spot. Las tasas de financiación negativas, combinadas con el aumento de los precios, aumentan las posibilidades de que se produzca una escasez de fondos.

La incertidumbre postelectoral podría impulsar la corrección

La incertidumbre de las elecciones podría significar que este escenario no se materialice.

Varios analistas han señalado cómo la incertidumbre que rodea a las elecciones de los Estados Unidos podría provocar movimientos en mercados como el del dólar y el de Bitcoin debido a las diferentes políticas económicas y financieras.