By Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock, who are publicly listed in Canada (TSXV:BLOK)
Bitcoin (CRYPTO: BTC) has surged 15% from the lows of $33,000 on Monday, whilst funding rates have turned very negative (as shown below), signaling that short-positioned traders are dominating the derivative market. This indicates that Bitcoin's bounce was driven by spot rather than derivatives, which is confluent with the significant bidding seen on Coinbase (NASDAQ:COIN). The fact that funding is negative suggests there is still fear in the market, as participants are generally shorting this rally.
People may also be protecting themselves with shorts ahead of the FOMC meeting later today, where Federal Reserve Chairman Jerome Powell will outline any changes to monetary policy. If he announces an earlier than anticipated end to QE or rate hike, markets may fall much lower in the short term. However, if Powell confirms no changes to plans announced in December, equity and crypto markets may see some relief as protective positions unwind, and we could see a short squeeze to the upside.
Adoption from major tech firms continues as Google (NASDAQ:GOOG) is reportedly starting a new blockchain-based division inside its Labs group. This comes after Google partnered with cryptocurrency exchanges Coinbase and Bitpay to allow users to store cryptocurrency on digital cards. Even though they are still not accepting cryptocurrency transactions, the new blockchain division is a huge step, given that Google is one of the biggest software companies in the world and the most visited website.
The second most visited website, YouTube, could be integrating NFTs soon. The CEO, Susan Wojcicki, says they are looking to ‘help creators capitalize on emerging technologies’ by branching into NFTs as another source of revenue for creators. These hints from the YouTube CEO come after Twitter (NYSE:TWTR) and Facebook (NASDAQ:FB) recently announced NFT integrations into their platforms, with Facebook potentially creating an NFT marketplace of their own. In my opinion, these integrations from the biggest social networks provides further clarity that NFTs will reach mainstream adoption in the coming years.
