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Bitcoin [BTC] and Ethereum [ETH] exposed to over 3 million brazilians

Ajay Narayan



Bitcoin [BTC] and Ethereum [ETH] exposed to over 3 million brazilians
Source: Unsplash

XP Investimentos, one of the largest independent brokers in Brazil, recently announced that they will be opening an exchange platform in the coming months for trading Bitcoin [BTC] and Ethereum [ETH].

XP Investimentos is an integral part of the XP Group that concentrate on several brands in the financial market and has recently joined the cryptocurrency industry, says Bloomberg reports.

At an event in Sao Paulo, Guilherme Benchimol, the CEO of XP Investimentos stated that almost 3 million Brazilians had exposure to Bitcoin [BTC] whereas only 600,000 individuals invested in the stock market. Benchimol was further ready to undertake the risk in pushing XP Investimentos into the cryptocurrency industry. He further added:

“I must confess, this is a theme I’d rather didn’t exist, but it does…… We felt obligated to start advancing in this market.”

XDEX is the new cryptocurrency exchange which will focus on working independently from the other brokerage businesses owned by XP Investimentos. Thiago Maffra, an experienced financial marketing official will be running the exchange. The new cryptocurrency exchange will have around 40 employees.

According to the report, XP Investimentos’ entry into the Over-the-Counter [OTC] Bitcoin space was a huge step. This could result in the biggest banks in Brazil being directly involved in the cryptocurrency market. Itau Unibanco Holding S.A, a financial institution has recently suggested buying a 49.9% stake in XP’s voting capital for 5.7 billion reais [$1.5 billion].

Benchimol further stated that XP Investimentos will also be opening a new bank in the next few months. The main agenda of the brokerage was to accumulate 1 trillion reais [$245 billion] by the end of 2020 which is four times more than what they expect to have by the year-end.

According to a recent post, Central Bank of Brazil and other regulators of the Brazilian Financial System announced that they will use a blockchain based technology platform to open the door for country’s financial regulators to exchange information. The blockchain technology platform, Information Integration Platform for Regulators [PIER] was developed by the Central Bank of Brazil’s Information Technology department and is reported to start operations by 2018.

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Ajay Narayan is a full-time journalist at AMBCrypto. He has majored in Economics, Political Science and Sociology. His interests are inclined towards writing and investing in cryptocurrencies.


Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market

Biraajmaan Tamuly



Will Bitcoin's Dominance falter for Altcoins to gain traction in the market?
Source: Pixabay

The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.

At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.

At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.

A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.

Source: Twitter

At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.

Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.

According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.

A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.

However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.

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