The cryptocurrency market continues to trade in a very tight price range. Volatility, which is a measure of the price swings and how fast prices move, has never been this low for the amount of time we’re currently experiencing.
For example, Bitcoin has remained inside a $600 trading range, roughly between $6,200 and $6,800, for two months.
Watching grass grow is more exciting than the watching the current crypto market, but at least it continues to give us a very good opportunity to accumulate additional crypto coins at the lower prices.
Big money is also using this period to quietly accumulate larger positions.
Most of the large purchases in Bitcoin and other altcoins are happening off-exchange in the over-the-counter (OTC) market. If someone wanted to purchase $100 million in Bitcoin through a normal exchange such as Coinbase, it would create a large buy order that would spike the price higher.
Instead, buyers are going directly to sellers to negotiate a price for the trade.
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Once a price has been agreed upon, the buy or sell could take days to complete at the negotiated price. Such trades don’t affect the prices on the public exchanges.
Here’s how it works: Large, productive miners have large facility, equipment, and electrical power expenses. They therefore need qualified buyers for their mined coins.
Large investors are in a position to take the miners’ coins, negotiating the price directly with the miners, and make the trades through OTC trading desks.
That volume is not seen on any public exchanges but it is documented. Everyone must comply with regulations regarding know-your-customer and anti-money laundering.
This has been going on for much of the year with large investment houses, such as university endowment funds and major hedge funds.
They are quietly accumulating large positions, especially in Bitcoin and especially during the past few months.
This accumulation is very bullish. The quiet period in the market with low price swings favors those who are quietly accumulating their investment position.
Cheaper, faster, stronger
We at Cryptocurrency Wealth Protocol are doing the same thing, of course.
While big money accumulates larger positions, there have been many developments to make cryptocurrencies easier, cheaper, and faster to trade for the billions who are most in need of an alternative currency.
Most of the world’s population is considered “unbanked,” meaning they have no access to banking services. They struggle to save money and to avoid the loss of buying power from the devaluation of their home currencies.
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The use of cryptocurrencies opens up a whole new world for them and Binance wants to lead the way by setting up subsidiaries in many countries.
Binance Uganda shows they are on the right track. They signed up about 40,000 new customers in just its first week of operations.
In Uganda nearly 75% of the people do not have bank accounts. Binance Uganda is helping these people by not requiring the use of fiat currencies or bank accounts.
A local payments provider helps Ugandans convert fiat currencies into Bitcoin or ether and exchange it back again into their local currency if desired.
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Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.