Small Investors are Flooding into Bitcoin as Whales Start Losing Market Dominance

Small Investors are Flooding into Bitcoin as Whales Start Losing Market Dominance

The composition of Bitcoin’s investor base is rapidly shifting, with smaller investors garnering greater dominance over the total circulating BTC supply. Canada’s move came in response to President Donald Trump’s decision to reimpose 10% aluminum duties on its trade partner. USD-denominated terms, following up from the ‘yuan terms’ data posted a few minutes ago
Big, big beat for exports.
Data from China is sometimes thought to be a little suspect in terms of veracity. 
By Eamonn Sheridan U.S. stock markets maintained rally on Thursday on expectations of the second round of coronavirus relief package from the government soon.

Small Investors are Flooding into Bitcoin as Whales Start Losing Market Dominance

The composition of Bitcoin’s investor base is rapidly shifting, with smaller investors garnering greater dominance over the total circulating BTC supply.

This comes as the dominance of so-called crypto whales sees a sharp decline, signaling that the market is currently seeing inflows of smaller retail investors.

This shift comes as more investors start turning to the benchmark cryptocurrency due to its status as a “hard asset” – which many be sparking a trend of accumulation amongst investors.

One group, in particular, that might be behind this trend is young investors. A recent analysis from banking giant JPMorgan shows that this group is widely accepting Bitcoin as both a store of value and as an alternative to the U.S. Dollar.

Data shows that small investors – defined as those holding less than ten Bitcoin – are rapidly gaining control over the benchmark crypto’s circulating supply.

This trend was highlighted in a recent post from analytics firm Glassnode, in which they explain that over the past five years, the percentage of the BTC supply owned by entities with less than ten BTC has grown by nearly 9%.

They also note that the percentage of the supply owned by entities holding between 100 and 100,000 BTC has declined from roughly 63% to 49.9% currently.

“Control of Bitcoin’s supply has been steadily shifting towards smaller entities. The % of supply owned by entities holding ≤ 10 BTC grew from 5.1% to 13.8% in 5 years, while the percent held by entities with 100-100k BTC declined from 62.9% to 49.8%.”


Image Courtesy of Glassnode.

One group potentially responsible for this trend is young investors, who appear to be accumulating Bitcoin at a rapid pace.

NewsBTC reported yesterday that a recent analysis put forth by JPMorgan revealed that the younger generations have a high inclination to invest in Bitcoin.

“The two cohorts show divergence in their preference for ‘alternative’ currencies… The older cohorts prefer gold while the younger cohorts prefer bitcoin,” the bank’s analysts wrote.

Because Bitcoin is currently performing incredibly well against a backdrop of immense money printing and economic turbulence, there’s a high chance that this trend will only pick up steam as demand for “hard assets” continues growing.

It may also perpetuate the sliding dominance that large entities wield over Bitcoin’s circulating supply – which further decentralizes its distribution.

Featured image from Unsplash.

Cole Petersen


Author: Cole Petersen

Canada to impose tariffs on $2.7 billion in U.S. goods after Trump reignites trade feud

Canada to impose tariffs on $2.7 billion in U.S. goods after Trump reignites trade feud

Canada’s Deputy Prime Minister Chrystia Freeland attends a news conference as efforts continue to help slow the spread of coronavirus disease (COVID-19) in Ottawa, Ontario, Canada March 23, 2020.

Blair Gable | Reuters

Canada said Friday it will slap retaliatory tariffs on $2.7 billion worth of U.S. goods, the latest development in a new trade feud sparked by President Donald Trump’s decision to reimpose aluminum duties on the U.S. ally.

“Canada will respond swiftly and strongly,” Canadian Deputy Prime Minister Chrystia Freeland said at a press conference.

“We will impose dollar-for-dollar countermeasures in a balanced and perfectly reciprocal retaliation,” she said. “We will not escalate and we will not back down.”

Freeland said Prime Minister Justin Trudeau will spend the next 30 days consulting with Canadian citizens and businesses on a broad list of aluminum-containing products. Canada’s new duties on U.S. imports, she said, will total $3.6 billion Canadian dollars ($2.7 billion).

Trump, during a speech Thursday at a Whirlpool manufacturing plant in Ohio, announced that he had signed a proclamation reimposing 10% tariffs on aluminum imports from Canada that had been lifted more than a year earlier. The president complained that Canada was putting American workers in the aluminum industry at a disadvantage.

“The aluminum business was being decimated by Canada,” he said.

Trudeau vowed to enact countermeasures against the U.S. just hours after Trump’s announcement.

Neither the White House nor the Commerce Department immediately responded to CNBC’s requests for comment on Canada’s actions.

The text of Trump’s proclamation says that Commerce Secretary Wilbur Ross informed Trump that Canadian aluminum imports “increased substantially” in the months after the decision to lift the tariffs in mid-2019.

That so-called surge “threatens to harm domestic aluminum production and capacity utilization,” the proclamation says.

Freeland on Friday lambasted that assertion, arguing that the tariffs will hurt American consumers already suffering from the economic devastation inflicted by the coronavirus pandemic.

“In imposing these tariffs, the United States has taken the absurd decision to harm its own people at a time when its economy is suffering the deepest crisis since the Great Depression,” Freeland said.

“These tariffs are unnecessary, unwarranted and entirely unacceptable,” she added. “They should not be imposed. Let me be clear: Canadian aluminum is in no way a threat to U.S. national security, which remains the ostensible reason for these tariffs, and that is a ludicrous notion.”

Freeland also noted that the new tariffs comes just over a month after the United States-Mexico-Canada Agreement – the Trump-backed trade pact that replaced the North American Free Trade Agreement, or NAFTA – went into effect.

“Now is the time to advance North American economic competitiveness, not to hinder it,” she said.


Author: Kevin Breuninger

China July trade data, exports +7.2% y/y in USD terms

China July trade data, exports +7.2% y/y in USD terms

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Stock Market News for Aug 7, 2020

Stock Market News for Aug 7, 2020

U.S. stock markets maintained rally on Thursday on expectations of the second round of coronavirus relief package from the government soon. Gradual reopening of the U.S. economy also boosted investors’ sentiment. Market participants also rejoiced better-than-expected economic data. All three major stock indexes ended in positive territory.

The Dow Jones Industrial Average (DJI) finished in a positive note for five successive days after gaining 0.7% or 185.46 points to close at 27,386.98. Notably, 15 components of the 30-stock blue-chip index ended in the green while 13 finished in red and two remained unchanged.

The tech-laden Nasdaq Composite ended in positive territory for seven consecutive days to close at 11,108.07, surging 1% or 109.67 points. This marked the first-ever closing above 11,000 for the tech-heavy index while in intraday trading, Nasdaq Composite attained a fresh all-time high at 11,121.19. This reflected the 32nd all-time highs achieved by the index so far this year.

Meanwhile, the S&P 500 advanced 0.6% to end at 3,349.16. This marked the five-day winning streak of the broad-market index. The Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) climbed 2.6% and 1.4%, respectively.  Notably, six out of eleven sectors of the benchmark index closed in positive territory while five in negative territory.

The fear-gauge CBOE Volatility Index (VIX) was down 1.5% to 22.65. A total of 9.69 billion shares were traded on Thursday, lower than the last 20-session average of 10.39 billion. Advancers outnumbered decliners on the NYSE by a 1.06-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored declining issues.

On Aug 6, both Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi said they remained optimistic on an agreement as soon as possible. Meanwhile, both Democrats and Republicans have agreed on another round of $1,200 payments to support households. Moreover, some economists and financial experts remained optimistic that the actual size of the next stimulus package could be well above $1.5 trillion.

In a major development, after a meeting with the U.S. Centers for Disease Control and Prevention, the Department of State lifted the Global Level 4 Health Advisory. The advisory was introduced on Mar 19 urging U.S. citizens to avoid all international travel due to the global impact of COVID-19. Meanwhile, President Donald Trump has agreed to provide another $25 billion of fiscal stimulus to the sagging airlines industry. 

Consequently, shares of major airlines like American Airlines Group Inc. (AAL – Free Report) , United Airlines Holdings Inc. (UAL – Free Report) and Delta Air Lines Inc. (DAL – Free Report) climbed 3.8%, 2% ans 2.3%, respectively. Both American Airlines and United Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Department of Labor reported that weekly jobless claims came in at 1.186 million for the week ended Aug 1 compared with an upwardly revised 1.435 million from the previous week. The consensus estimate was 1.428 million. This marked the lowest level of initial claims since the pandemic begins. However, for last 20 straight week, initial claims stayed above 1 million.

Moreover, continuing claims, those who have collected benefits for two straight weeks, dropped by 844,000 to 16.1 million. The four-week moving average of jobless claims, which excludes volatility, declined 413,250 to 16.6 million.

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Small Investors are Flooding into Bitcoin as Whales Start Losing Market Dominance

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