Are institutional providers preparing to "take over" the market?

Thought of the week

The institutional investors, who are currently causing a stir in the USA in particular (Bitcoin Spot ETFs), have caused the removal of a polarising figure (CZ, CEO of Binance) in the form of the American authorities. This ensures that other strong players are removed from the field before licences are granted, so that the competition is “weakened” as much as possible. This is a clear indication of a very positive attitude towards the authorisation of ETFs.

Digital Asset News

Meanwhile, crypto analyst Dharmafi looks at the concrete manifestation of this development. In a separate post on X, he shows that a Reverse Repurchase Agreement (RRP) of USD 65 billion and a Treasury General Account (TGA) of USD 35 billion have resulted in a net increase in liquidity of a whopping USD 106 billion since 21 November.

This rapid jump in liquidity in a short space of time reflects a considerable change in the framework conditions on the financial market. As Hayes emphasizes, these changing dynamics should also have a positive impact on the Bitcoin price, which is why crypto investors should not be distracted by short-term movements.

While the former BitMEX CEO draws attention to the possible link between increased dollar liquidity and Bitcoin’s price performance, crypto expert Dharmafi highlights the potential impact that the substantial inflow of a whopping USD 106 billion in liquid funds into the financial system since 21 November could have on all asset classes, including cryptocurrencies.

However, Janet Yellen is an outspoken critic of Bitcoin and has recently warned crypto exchanges that they should comply with the law. Especially in light of the recent agreement with market leader Binance, this demand has become all the more urgent.

A group of businesses and technology companies have sent a joint letter to European Union regulators warning against excessive regulation of powerful artificial intelligence (AI) systems at the expense of innovation.

In this regard, the letter referred to data showing that only 8% of companies in Europe use AI, which is nowhere near the European Commission’s target of 75% by 2030. Furthermore, only 3% of the world’s “unicorns” in the AI sector are from the EU.

“Europe’s competitiveness and financial stability depend heavily on the ability of European companies and citizens to utilize AI in key areas such as green technology, health, manufacturing or energy.”

The companies further emphasized that in order to become a “global digital power”, Europe needs companies that are leaders in AI through basic models and GPAI – two AI areas that will be scrutinized in upcoming EU legislation.

“Let’s not put these companies out of business before they have a chance to grow, or force them to leave.”


The saga surrounding Do Kwon, co-founder of Terraform Labs, takes its next dramatic turn after a court in Montenegro authorized his extradition to South Korea or the United States.

The Supreme Court of Podgorica has created the legal conditions for Kwon’s extradition, according to an official statement published on the court’s website on 24 November.

As the court has authorized Kwon’s extradition to the US or South Korea, the final decision on his extradition will be made by the Montenegrin Minister of Justice in the next step, the announcement said.

Previously, a court in Montenegro had sentenced Kwon to four months in prison after finding him guilty of using a fake passport to flee to Dubai by private jet. In June 2023, Kwon was reportedly charged with attempting to leave the country with a fake passport.

“If the Minister of Justice orders the final extradition of the defendant, the extradition will take place after the execution of the criminal sanction in the case of the forged documents,” the court statement said.

This flushes out another negative aspect of 2022 from the market and strengthens the market for digital assets!

Digital Asset Market

From a chart perspective, Bitcoin is trading between $37,000 – $38,000 around the high for the year that was formed. Currently, there is still little analytical data that can be filtered from this to derive statements for the near future. The narrative of “ETF seedings” could continue to ensure little selling, so that any increased buying volume creates noticeable volatility, but the onset of selling could lead to further setbacks.

All i all, an exciting week awaits, in which the motto will be: Seize temporary opportunities and keep risk low.

The next price targets in the event of a positive trend: ~$38,500, ~$39,250, ~$40,000

The next price targets in the event of a negative development: ~$36,000, ~$35,600, ~$34,800

At present, Bitcoin only offers opportunities for smaller swing trades following support retracements or the formation of resistance. The long-term outlook for the coming months remains positive! For short-term entries, however, conservative risk management should always be applied near the high for the year so that positions can always be adjusted


Weekly overview

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