Altcoins Bleed Whenever Bitcoin Lingers around $10k Level

Bitcoin and altcoins are forming a strange correlation as of late, according to data provided by market analyst Ceteris Paribus.

The noted cryptocurrency trader found that leading altcoins plunged massively every time bitcoin tested or hinted to check the $10,000 level. Between June and August 21, bitcoin closed above the $10,000 mark four times. And each one of its upsurges extended the downside action of specific cryptocurrencies. For instance, Ethereum’s ETH furthered its downfall from $298 to $188.17, while passing through $280.56 and $213.61. Each of those price depletions coincided with bitcoin returning to hit the five-figure mark.

“Bitcoin first hit $10K two months ago on June 21st. Since then, it has traded around this level on multiple occasions. Every time it has returned to ~$10K, major [altcoins[ have bled out a little more in the process.”

bitcoin, bitcoin price, altcoins, ethereum, litecoin, bitcoin cash, xrp

Bitcoin Returning to $10K Coincides with Altcoin Price Dropping | Image Credits: Ceteris Paribus

Just like ETH, Ripple’s XRP, Bitcoin Cash’s BCH, Litecoin’s LTC, Binance’s BNB, and EOS each negated their value. EOS was the worst-performing cryptocurrency whenever bitcoin tested the $10,000 level.

The Trading Psychology

In a nutshell, $10,000 reflects a psychological support/resistance level for bitcoin, depending on the direction of the cryptocurrency’s price trend. A close above the said level makes traders bullish. Similarly, a move in the opposite direction makes speculators see a plunge or a bounce back.

It appears traders become hyperactive whenever bitcoin closes-in towards the $10,000 mark. If going down, they might expect an excellent opportunity to buy. And if going up, they might wait for the price to close above $10,000 to place new upside positions.

Now traders could either purchase new bitcoins via fiat currencies or by merely exchanging them for altcoins. The latter is a more straightforward task to perform.

It is becoming easier for traders to offload their altcoin holdings for bitcoin since bitcoin’s fundamentals are looking better. In the long run, bitcoin’s demand as a haven asset could grow against the slowing global economy. Investors are likely to purchase the asset for its store-of-value qualities than other cryptocurrencies, whose returns are typically pegged to the performance of the companies that issue them.

Lower Altcoin Demand

The lower demand for altcoins is further reflective in bitcoin’s growing dominance in the cryptocurrency market. A new report prepared by Arcane Crypto, an Oslo-based investment management firm, concludes that altcoins have lost 90 percent of the market to the benchmark cryptocurrency. Researcher Bendik Schei weighed that an altcoin should not be measured only based on its market capitalization, but other factors such as its liquidity should also be considered.

“The problem is that the calculation does not take liquidity into account. One might be able to sell one token for three dollars, but what happens if you want to sell 1 million? Without accounting for liquidity, market capitalization becomes a meaningless measure.”

That somewhat explains why investors become attracted to bitcoin when it flirts with the $10,000 level.

The post Altcoins Bleed Whenever Bitcoin Lingers around $10k Level appeared first on NewsBTC.

Dow Creeps Higher But Beijing Unloads on Trump’s ‘Roughshod’ Strategy

By CCN Markets: The Dow continued to grind higher on Thursday ahead of the Federal Reserve’s highly-anticipated Jackson Hole Summit. However, another barrage of trade war attacks threatens to bleed the optimism out of this latest stock market recovery. Dow Completes Recovery from Last Week's 800-Point Plunge All of Wall Street’s major indices secured modest […]

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This Ford-Lovin’ Crypto Scammer Took Coinbase A/C Holders on $200K Ride

By CCN Markets: A Michigander is facing 20 wire fraud and money laundering charges for carrying out a crypto investment scam that raked in an average of nearly $15,000 daily. According to the prosecutors, James Matthew Thomas defrauded approximately $206,000 from his victims within a period of two weeks. The scam was carried out in […]

The post This Ford-Lovin' Crypto Scammer Took Coinbase A/C Holders on $200K Ride appeared first on CCN Markets

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

Major Swedish Bank Surprises With Negative Interest Rate on Euro Deposits

Sub-zero interest rates have become the norm in some countries, especially in Europe. Nordic nations such as Sweden and Denmark have been in negative territory for a while and a growing number of banks in the region are now charging depositors for keeping their money. Saving in fiat right now, unlike cryptocurrencies lately, leads to losses, although loans and mortgages aren’t free of charge per se. A leading Swedish bank has imposed a negative interest rate of -0.40% on euro accounts, while the ECB is reportedly preparing for a new rate cut.

Also read: As US Expands Subprime Mortgage Program, Is a New Crisis Looming?

Your Euro Savings Will Cost You Money in Sweden

Sveriges Riksbank, the central bank of Sweden which is the largest economy in Scandinavia, cut its interest rate to 0% in late 2014 and introduced negative rates in early 2015. It has kept them there ever since with the aim of fighting deflationary pressures. The Swedish krona, among other currencies in the periphery of the Eurozone, has been appreciating with dangerously low inflation, from a traditional standpoint.

After going down to a record low -0.5% in February 2016, and staying there for a while, Riksbank increased the interest rate to -0.25% towards the end of last year. This July, Riksbank kept its key repo rate at that level. Despite the relatively strong economic activity in the country and inflation staying close to the 2% target, the financial regulator noted the need to proceed with a cautious monetary policy, given the risks to the global outlook.

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

Skandinaviska Enskilda Banken (SEB), a major Swedish lender, has recently lowered its long-term mortgage rates. Interest on five-year loans has been decreased in July by 0.35% to 1.95% and by 0.41% to 2.99% for the 10-year mortgages. Rates on all savings accounts, except investment accounts, remain at 0%. The same applies to most regular business accounts.

However, SEB recently delivered аn unpleasant surprise to some of its clients. The interest on foreign currency accounts is already in the subzero territory. To be precise, that’s -0.40% on euro holdings, according to correspondence from the bank acquired by news.Bitcoin.com. “…the loan fee on business currency accounts in euro is currently -0.40% per year on the deposited amount,” reads an email sent to a customer.

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

To a certain degree, calling the interest rate ‘loan fee’ is closer to what it has actually become. When a depositor gives their money to a financial institution, they are no longer the owner of the asset, but only retain the right to withdraw under the terms and conditions described in the contract. Nowadays, instead of earning interest on the amount you’ve deposited, you are often paying a fee to lend your funds to the bank. Does that make any sense from a market economy point of view?

Sweden’s commercial banks have been forced to adapt to the continuously negative benchmark rate and have started passing the burden to their clients. Swedbank, the country’s largest lender, offers private customers various opportunities to save but rates are currently set at 0% for several of its products like private, e-savings, and youth accounts. No interest is paid on cash in an investment savings account either. The situation with corporate accounts looks pretty much the same. Current mortgage rates, however, reach over 3% for longer loans.

Danish Bank to Impose -0.60% Rate on €1M Deposits

Denmark, another important economy in the region, was actually the first country on the Old Continent to adopt negative interest rates after the global financial crisis of 2008. Its central bank, Danmarks Nationalbank, introduced them back in 2012 when it lowered its benchmark rate to -0.2%. The institution has consistently kept it around and below zero during the following seven years and it’s currently set at -0.65%.

Banks in the country have had to take its policy into account when deciding about the parameters of their own offers. For some time now, they have been resisting the pressure to pass the losses on to their clients. The largest of them, Danske Bank, recently announced it does not plan to impose negative rates on personal savings or current accounts and vowed not to introduce additional fees for its wealthy account holders. The bank, which is struggling with the consequences of its involvement in a large money laundering scandal, fears that could lead to people withdrawing cash from the banking system.

But according to recent publications, not all banks in the country are managing to avert such a development. Jyske Bank, another leading financial institution in Denmark, is now preparing to impose a negative interest rate of -0.6% on personal accounts holding funds in excess of 7.5 million Danish kroner, or €1 million ($1.12 million). That’s according to the bank’s report for the second quarter of 2019. The measure comes in response to persistently negative interest rates that are affecting its earnings.

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

Lately, it has become impossible to buy Danish government bonds with a positive interest rate and the market indicates that negative rates will be a fact for several years to come, commented Jyske CEO Anders Dam, quoted by the Swedish business outlet Dagens Industri. Luckily, personal accounts with smaller investments will not be affected by the change. The interest rate on the funds in these accounts will remain at 0%.

The move also follows the announcement of some worrying financial results. For instance, Jyske’s net interest income fell by around 6% year-on-year in the first half of 2019. The decline was registered despite the increase in the bank’s business operations. And in Q2 of 2019, the net interest income was 1.34 million Danish kroner (approx. $200,000), which is only slightly above the expected 1.33 million kroner.

At the same time, profit before tax in the second quarter was 633 million kroner ($94 million), which is below the forecasted 714 million kroner ($106 million). And the core revenue, according to the quarterly report, was 1,948 million kroner, or almost $290 million, below the average estimate of 1.978 million kroner ($295 million). Core profit was 683 million Danish kroner ($101 million), again failing to reach the expected 694 million kroner, or $103 million target.

ECB to Cut Interest Rate to All-Time Low

Other prominent banks in the region include Helsinki-headquartered Nordea, which is also very active in the Baltic States. As of August 2019, its interest rates in Denmark are as low as -0.65%, depending on the product. According to a near-term forecast published on its Danish website, the financial institution believes most of them will remain in negative territory throughout the next year.

Nordea is based in Finland, the only Nordic nation which is a member state of the Eurozone, the club of countries using the common European currency. In its home country, the bank still maintains positive interest rates on both deposits and loans. That’s despite reports that the European Central Bank (ECB) is preparing to further reduce its key rates next month.

Major Swedish Bank Orders Negative Interest Rate on Euro Deposits

With inflation in the Eurozone remaining below the target of 2%, ECB is expected to cut its deposit rate by 10 basis points to -0.5% following its meeting in September. This will be an all-time low for the deposit facility rate which determines the interest banks receive when depositing funds with Europe’s central bank. It’s currently set at -0.4% and it has been negative since the summer of 2014. Analysts quoted by mainstream media think ECB may also resume its quantitative easing efforts in October by buying out assets worth 15 billion euros ($16.6 billion).

But with decentralized alternatives on the table, you are not limited to keeping your money in a fiat currency account. Cryptocurrencies, whose value does not depend on benchmark interest rates set by central banks, offer an opportunity to store value and to profit from the generally positive market trends of late, as demand for these deflationary assets increases. And for those who prefer a more traditional way of saving, keeping your coins with a platform like Cred, a partner of Bitcoin.com, will earn you much higher interest of up to 10% on your BTC and BCH holdings.

Do you think we are going to see more negative interest rates in the Nordic region and Europe as a whole? Share your expectations in the comments section below.


Images courtesy of Shutterstock.


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Segwit Creator Introduces Optimized Language For Bitcoin Smart Contracts

bitcoin programming language

Bitcoin Core developer, Peiter Wuille, has introduced a new programming language called Miniscript, to simplify smart-contract development for Bitcoin. One of the most prolific and respected Core-developers, Wuille is responsible for the creation and implementation of Segregated Witness (SegWit).


‘Miniscript’ Is Like An Enhanced ‘Script’ For Bitcoin

Miniscript is built on top of the existing Script language for Bitcoin smart contracts and aims to optimise it. Script allows the specification of certain conditions which must be met in order for bitcoin to be spent. This could be a time-limit, before which coins are locked in, or the requirement of multiple signatures to verify a transaction.

However, Script becomes unwieldy when required to perform various kinds of static analysis, generic signing, and compilation of policies. According to Wuille’s documentation, Miniscript functions are a representation for scripts that makes these sort of operations possible.

Reducing Barriers Between Pieces Of Software

Wuille tweeted an example of how policies can be combined:

Imagine a company wants to protect its cold storage funds using a 2-of-3 multisig policy with 3 executives. One of the executives however has a nice 2FA/multisig/timelock based setup on his own. Why can’t that entire setup be one of the multisig “participants”?

With Miniscript, the executive’s two factor authentication (2FA) could seamlessly work with the cold storage requirements. A script could compute the composite sig required and still be able to sign as a participant in the multisig.

Future Implementation Into Bitcoin Core

Wuille stated that he would work into incorporating parts of Miniscript into Bitcoin core if there is a desire for this amongst developers. However as published, it has already undergone extensive testing against actual Bitcoin consensus rules.

Wuille says that ideally, it would be included run many pieces of wallet technology, and his co-developers have been working on a Rust library for it.

Wuille is a high-profile figure in the Bitcoin community, and earlier this year participated in the Lightning Torch relay.

What do you think of the new optimized smart contract language? Add your thoughts below!


Images via Shutterstock

The post Segwit Creator Introduces Optimized Language For Bitcoin Smart Contracts appeared first on Bitcoinist.com.

Hopes for Bitcoin as China’s Renminbi Drops to 11-Year Low

A recent plunge in the bitcoin price is looking to negate some of its losses as China’s currency weakens to its lowest level in 11 years.

Renminbi on Thursday dropped 0.2 percent to 7.00749 against the US dollar after remaining in focus owing to the ongoing trade dispute and US allegation of currency manipulation. The legal tender lingered at its weakest earlier this month, falling past the Rmb7 level for the first time since the financial crisis, sending shivers across the global market.

The weakening of Renminbi earlier coincided with a spike in volume of bitcoin traded by mainland Chinese. From August 4 till 14, it rose by about 50 percent, according to data provided by Babel Finance, a Hong Kong-based crypto finance firm. Analysts believe the bitcoin price and volume in those ten days soared because of the People’s Bank of China. The central bank reportedly forced Renminbi’s value lower, prompting investors to look for appealing safe-havens, including bitcoin.

Bitcoin, Renminbi Falling in Tandem

The scenario appears flipped now. Unlike the previous time, bitcoin is pursuing a downtrend despite being surrounded by positive macroeconomic catalysts. The benchmark cryptocurrency lost more than $1,200 this week at one time – mainly because investors awaited the outcome of the meeting of global central bankers in Kansas City starting today.

bitcoin, bitcoin news

Bitcoin price has dropped by more than 9 percent this week | Image Credits: TradingView.com

The gathering will conclude upon the remarks of the Federal Reserve Chairman Jerome Powell’s take on the slowing global economy. Investors expect he would announce a series of new economic stimulus programs to boost the sentiment. Bitcoin, meanwhile, is waiting on the sidelines as big market players take their call.

The falling Renminbi, therefore, appears to be the cryptocurrency’s reason to make a comeback. Crypto enthusiasts say that investors in mainland China choose bitcoin over other safe-haven assets to circumvent state-imposed capital controls. Bitcoin remains a non-sovereign asset powered by a distributed network of miners across the world. That leaves Chinese authorities without any clues about how to shut the cryptocurrency’s system down.

“A falling renminbi is a serious use case for crypto,” said Taimur Baig, chief economist of DBS’ Singapore unit. “From now on it is another thing for markets to watch.”

Tunnel or Destination

Analysts are still unsure whether bitcoin behaves as a tunnel or destination when it comes to providing the Chinese a way to send their capital offshore. Grayscale Investments, a New York-based firm, said that the bitcoin could revert liquidity crisis in troubling markets, which is why the probability of its adoption in a longer-term is high.

“While it is still very early in Bitcoin’s life cycle as an investable asset, we have identified evidence supporting the notion that it can serve as a hedge in a global liquidity crisis, particularly those that result in subsequent currency devaluations,” the company wrote in its June report.

The post Hopes for Bitcoin as China’s Renminbi Drops to 11-Year Low appeared first on NewsBTC.

Another Remittance Provider Begins Using RippleNet for Faster Transactions

Ripple continues to build its ecosystem whenever possible. Particularly its RippleNet solution is of great interest to remittance providers. Numerous companies are already embracing this technology today. It now seems another name can be added to that list in the form of Xendpay. This further validates the technology stack on a global scale. 

What is Xendpay?

As the name suggests, Xendpay is a remittance company trying to compete with the bigger players on the market today. Rather than tackling the global money transfer industry, however, the London-based firm targets some crucial markets. Xendpay was looking to enter specific regions, including Malaysia, Vietnam, and Indonesia. Through RippleNet, this has now become possible. 

Given Ripple’s partnerships in this region, it is only normal their offering becomes of interest to companies looking to enter more Asian markets. Xendpay will be using Ripple’s technology stack for cross-border payments. It would also appear the company has already begun sending transactions over this network, although commercializing the option on a broader scale has yet to occur. It is expected this will take place fairly soon, as the initial results were very promising indeed. 

Reducing Overhead and Welcoming Savings

Sending money around the world remains a very costly endeavor. This situation will not change in the near future. More specifically, the remittance providers have to pay hefty fees to move money around. Those fees are paid for by customers, along with the profits the company aims to pocket per transaction. With RippleNet, a lot of these costs can be reduced to a bare minimum. 

Xendpay’s Bhavin Vaghela sees this as a monumental change. In the press release, he claims RippleNet will be beneficial to the company and its customers alike. All of the reduced overhead costs achieved by the service provider will yield lower transaction fees for clients. For them, every penny counts, thus keeping costs down is a big priority. 

Ten-minute Transactions

One of the main reasons why Xendpay is interested in this technology is due to its transaction speed. When sending Thai Baht from London to Thailand, transactions were completed in 10 minutes. This applies to over 90% of recent transactions. This further confirms the company has experimented with this technology for some time. It also shows how beneficial RippleNet continues to deliver the services remittance providers are looking for. 


Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.

Image(s): Shutterstock.com

The post Another Remittance Provider Begins Using RippleNet for Faster Transactions appeared first on NullTX.

Terrible PS5 Design Leak Is a Clear Joke for These 3 Reasons

By CCN Markets: Ps5 rumors have become an everyday thing now. We've got memory specs, then supposed processor and graphics capability rumors. The most interesting of them states that the PS5 is as powerful as an RTX 2080. This time we got a design leak. The thing is that instead of getting it from a […]

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Move over Craig Wright, there’s a new Satoshi in town

There is another claimant to the Satoshi Nakamoto throne. The newest iteration presents numerology and an acronym for a defunct Pakistani bank as ‘evidence’ in the latest Bitcoin-related publicity stunt.

The latest Faketoshi claims that the word Bitcoin was created as an acronym for the defunct Pakistani bank “Bank of credIT and COmmerce INternational,” and that the name Satoshi Nakamoto was chosen due to its symbolic value in Chaldean numerology.

The “real” Satoshi Nakamoto hires PR company for his big reveal

The number of people claiming to be Satoshi has continued to increase as Bitcoin nears its 11th birthday. After several quiet months, the crypto industry saw another claimant to the Satoshi Nakamoto namesake. This time, it was a carefully-thought-out three-part “reveal” plan executed by a PR and crisis management company.

The big reveal happened on the satoshinrh.com website, where three lengthy blog posts were scheduled to go live one after another. The first post, titled “I am Satoshi Nakamoto,” starts off as an introduction to the concept of Bitcoin, as well as a long, but empty description of Bitcoin’s history and misuse.

Parts two and three, however, contained the big reveal—Bitcoin’s creator is Bilal Khalid, a Pakistani national who changed his name to James Bilal Caan after emigrating to the U.K.

As it often happens with pompous reveals, the crypto community was quick to react. Hundreds of Twitter users criticized the posts, saying that not only did they contain broken English that contrasted the real Satoshi’s polished tone, but also the facts and logic presented were faulty, to say the least.

The spelling and grammar mistakes were quickly edited once the news started gaining traction on Twitter. Many pointed out that this could be the reaction of Ivy McLemore, the marketing company hired to handle Satoshi’s big reveal.

What do Chaldean numerology, a liquidated Pakistani bank, and a broken laptop have in common?

In the blog posts, the new Faketoshi goes into great detail to describe the origin of Bitcoin’s name and his pseudonym. He describes that the origins of the word Bitcoin weren’t derived from the word “bit” as previously thought, but from the acronym of a defunct Pakistani bank.

The Faketoshi explains that he was “obsessed” with the Bank of Credit and Commerce International (BCCI), which was liquidated after money laundering allegations, and wanted to bring the name back to its “glory days.”

Charlie Lee, the founder of Litecoin, mocked the ridiculous explanation, saying Bitcoin isn’t the only acronym in crypto. He jokingly explained that he chose the name “Litecoin” as an acronym of “Lime Tea Company Incorporated.”

When choosing a pseudonym, however, the claimant described an even more whimsical method. He claimed that he chose the name Satoshi as its value in Chaldean numerology matched that of his childhood nickname—Shaikho. Nakamoto was reportedly chosen due to its deep meaning and the fact that when added to Satoshi, its Chaldean value was 55, which is an all-important mystical number in the ancient numerology practice.

This information, revealed in the second and third iteration of the Faketoshi’s “big reveal,” makes it hard to decide whether it’s just an extremely elaborate prank or plain delusional.

The inability to access the 980,000 BTC Satoshi Nakamoto owns was explained in an even more unbelievable way. Khalid explained that all of the Bitcoins he mined were stored in a wallet on a hard drive of an Acer laptop, which inexplicably shut down after a night of “rigorous testing.”

The laptop was then sent to “support guys,” where its hard drive was replaced and the billions of dollars worth of Bitcoin were lost forever.

BitcoinTalk’s user avikz wrote that Bilal’s story is more convincing than that of Craig Wright.

As unbelievable as it might sound, all of this information is just a prelude to the “real” Satoshi Nakamoto’s final plan—Tabula Rasa. The soon-to-be-published blog post will reportedly contain his “clean-slate” vision for Bitcoin, alongside a slew of other (likely nonsensical) information.

Meanwhile, the Bitcoin community continues to reject any claim to the Satoshi name unless there is cryptographic proof that they have access to Nakamoto’s original wallets.

The post Move over Craig Wright, there’s a new Satoshi in town appeared first on CryptoSlate.

Bitcoin Price Struggles With Support at $10,000, What’s Next for Crypto Markets?

Bitcoin price is struggling to get back above $10,000 following recent bearish price action. Last week, Bitcoin dropped nearly $2,000 within 48 hours, and while there was a week of relief in between, the bearish sell pressure appears to have picked up steam once again.

The latest price action saw Bitcoin price rejected at $10,000 – an extremely important psychological level for the first-ever cryptocurrency. With this latest rejection following extreme bear pressure and the fear and greed index at the lowest number it’s ever been, what’s next for Bitcoin in the days ahead?

Five-Digit Bitcoin Price Taking a Short Vacation

We’ve all seen the comments on Twitter, Reddit, or elsewhere. “Bitcoin will never again drop under five digits.” The overly cocky comments appear in bulk whenever Bitcoin price bounces strongly from below $10,000 to back above it – something that Bitcoin has done repeatedly over the past few months.

Related Reading | Crypto Analyst Expects 20% Ethereum Drop, Altcoin Capitulation in 2 Weeks 

But the same comments were made in February and March 2018 as well, and Bitcoin not only feel below $10,000 and stayed there for the rest of the year, but it took until June 2019 to ever break back above $10,000.

Now, the leading crypto asset by market cap has fallen back below $10,000 after the latest rejection and the price per BTC drops deep below the level, it could be the last time Bitcoin trades above $10,000 for the remainder of the year.

bitcoin price crypto 10000

Why Is $10,000 Important and What’s Next for the Leading Crypto Asset?

There’s no denying that $10,000 is an important number for the first-ever crypto asset. During the last bull run, it acted as a FOMO trigger that took Bitcoin price to its all-time high of $20,000. It’s also exactly 50% the last highest peak, which according to legendary trader W. D. Gann always acts as extremely strong support.

But like the last extremely strong support, it can break, and when it does a dangerous drop occurs, much like what did in November 2018. Some analysts are expecting the same thing to happen, once Bitcoin breaks below the current support and symmetrical triangle formation Bitcoin price is trading within.

Related Reading | CME Futures Gaps Give Likely Correction Targets, Next Bear Market Bottom 

There’s little doubt that Bitcoin’s bear market bottom has been set, so even a breakdown from here is likely to be nothing more than a correction before the true bull run begins. Downside targets for where a reversal may occur, exist around $8,500 where an oft-cited CME Futures gap resides, as well as the symmetrical triangle target at around $7,500, and finally, $6,000 – the support that acted as such throughout most of the 2018 bear market, before finally broke down and another 44% drop occurred.

Given that analysts are expecting a similar breakdown in Bitcoin once $10,000 fully gives away to bearish sell pressure, a 44% decline from here would bring Bitcoin to under $6,000. However, the market is much different now from November 2018; the bear market is over, sell pressure has turned into buy pressure, and Bitcoin has gained a new narrative around being a safe haven asset during times of economic downturn – a downturn that is expected within the next 12 to 18 months.

The post Bitcoin Price Struggles With Support at $10,000, What’s Next for Crypto Markets? appeared first on NewsBTC.

Prominent Bitcoin Analyst Says Altcoin Carnage May Soon End: Here’s Why

Your favorite altcoin may be up 100% year-to-date, but make no mistake, Bitcoin is currently the alpha of the cryptocurrency pack.

Related Reading: Bears in Charge as Bitcoin Price at Risk of November 2018 Style Dump

Since Bitcoin dominance hit some 32% in early-2018, altcoins have underperformed. Dramatically. In fact, dominance for the leading cryptocurrency now sits at 69% and is showing no signs of stopping its growth.

According to a recent analysis by one leading trader, Willy Woo, the carnage seen in altcoin markets may soon end — or at least may take a breather. Bag holders rejoice!

Altcoins May Soon Bottom Against Bitcoin

While Bitcoin is a mere 50% lower than its all-time high of $20,000, a majority of altcoins are far from achieving that milestone. Per data from Messari’s OnChainFX, XRP, Ethereum, Bitcoin Cash, and Litecoin are among the leading altcoins that are still more than 80% down from their all-time high. This bifurcation, as aforementioned, has resulted in a surge in Bitcoin dominance.

Woo, however, believes that altcoins may soon finally find some support against Bitcoin. He posted the below image on Twitter, which shows that the altcoin capitalization-to-Bitcoin capitalization ratio and the altcoin market volume-to-Bitcoin market volume indicators are currently “heading into a region of support.”

Indeed, as the Bitcoin-centric Adaptive Capital partner chart depicts, the two aforementioned indicators are currently poised to encounter two key lines of historical support. Should history repeat itself, altcoins should bounce in the coming months, potentially to kick off what crypto traders call an “altseason”.

Related Reading: Ethereum Price Has Best Risk-Reward Ratio Ever: Crypto Venture Capitalist

Woo isn’t the only analyst currently charting for altcoins to finally start baring their fangs.

Per previous reports from NewsBTC, Bitcoin dominance is nearing the apex of a rising/ascending wedge, which, is a technical pattern marked by tightening ranges and a decrease in momentum. With an ascending wedge being seen as a bearish chart structure, BTC dominance may soon collapse and an altseason may come to fruition.

That’s not all, a Telegram technical indicator group recently posted that the weekly Bitcoin dominance chart on TradingView flashed a sell nine for the TD Sequential indicator. This strongly implies a strong trend reversal for altcoins against BTC, which has the potential to last for a number of weeks.

Or Not…

Despite the signals that altcoins may finally have some room to run, not everyone is convinced. In fact, 70% of more than two-thirds of nearly 4,900 respondents to a Twitter poll believe that the altcoin carnage isn’t complete. The remaining 30% think that this subset of the crypto asset class has finally bottomed.

Pure fundamentals suggest that Bitcoin may continue to steal all the limelight from altcoins.

Just look to the U.S. Securities and Exchange Commission’s recent attacks against high-profile crypto projects, like Kik’s KIN and Veritaseum, which have both been sued by the financial regulator over recent months.

Also, institutions foraying into this industry have focused nearly solely on Bitcoin. Just look to Bakkt, which will be finally coming to market this fall with its first product — physically-deliverable Bitcoin futures.

Featured Image from Shutterstock

The post Prominent Bitcoin Analyst Says Altcoin Carnage May Soon End: Here’s Why appeared first on NewsBTC.

Three Reasons Why Bitcoin Price is Back Under $10K… Again

Bitcoin

The early week’s run-up in the bitcoin price has continued to run out of breath as BTC dips back under five figures.


The BTC/USD instrument settled a session low of $9,841.59 at around 16:05 UTC today, establish its five-day low. The pair moved downwards despite having full-backing of strong fundamentals. Late last week, Intercontinental Exchange’s cryptocurrency arm, Bakkt, announced that it had received regulatory approval to launch its bitcoin futures contracts. The platform even finalized the launch-date on September 23, raising hopes of attracting institutional capital to the bitcoin markets.

The benchmark cryptocurrency dropped nevertheless, signifying that investors did not fully digest an otherwise bullish Bakkt announcement. That left the market with a handful of interconnected reasons that attempted to explain bitcoin’s downside sentiment. Here are three of them.

Weaker Global Sentiment

A global slowdown kept investors’ purchasing sentiment at bay. A majority of them waited for the annual meeting of global central bankers in Jackson Hole, Wyoming, expecting a wave of new stimulus programs to address the recession concerns. Bitcoin appeared as a less-attractive asset for investors who were looking to park their capital in low-risk safe-havens. That explains a surge in demand for US Treasuries, which registered their best month since 2015.

It appears the early week rise in the bitcoin market did not come from the outside by from the underperforming, neighboring cryptocurrencies. Nevertheless, many analysts believe that monetary easing policies would help bring more money to bitcoin, for investors would be able to borrow at lower interest rates.

“Bitcoin’s becoming increasingly a macro hedge for investors against things that could go wrong,” said Thomas Lee, co-founder of Fundstrats Global Advisors. “Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.”

Rising Wedge on Bitcoin 1H Chart

Rising Wedge are bearish patterns, characterized by price trending upwards inside a contracting range. The technical indicator typically sends the asset’s rate lower once it reaches the apex of the Wedge. Bitcoin, for all the past few days, was trending inside a Rising Wedge, as shown in the chart below.

bitcoin, bitcoin price

Bitcoin breaks down from a rising wedge pattern | Image Credits: TradingView.com

The bitcoin price today broke down from the same design, confirming its bias. It explains that the reason for the fall could have been merely technical, and has nothing to do with the cryptocurrency’s longer-term bias. The BTC/USD pair now expects to bounce back from the $9,651 area.

Whale Manipulation

Arguable yet highly likely, the latest bitcoin price drop could have been driven by whales – a slang for investors holding a larger quantity of bitcoins. The early week saw the cryptocurrency rising by more than $800, or circa 8.5 percent, in the wake of Bakkt announcement. It appears that big traders led the price rally, and drove small investors in the ride to the upside. Nevertheless, they exited their long positions right upon entering their target price area. In the entire process, no outside money entered the bitcoin market.

These are some of the possible reasons behind the bitcoin price drop. Have something to add? Then do share in the comment below.

Why do you think Bitcoin has fallen back below five figures again? Add your thoughts in the comment section below!


Images via Shutterstock, BTC/USD charts by Tradingview

The post Three Reasons Why Bitcoin Price is Back Under $10K… Again appeared first on Bitcoinist.com.

Why Bitcoin Rules in the ‘Insane’ World of Negative Interest Rates

By CCN Markets: In Denmark, some depositors are now paying the bank to look after their money. In Germany, the 30-year bond yield just went negative. A total $17 trillion of global bonds are now negative and it’s rising at a rate of a trillion a week. On the flip-side, Danish banks will pay you […]

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Dow Futures Slide as Trump SCREAMS at Federal Reserve

By CCN Markets: Dow Jones Industrial Average (DJIA) futures slumped in early trading Thursday and Trump is livid. The president took his anger out on Twitter, screaming in all caps: “WHERE IS THE FEDERAL RESERVE?” Trump is desperate for the Federal Reserve and Chairman Jerome Powell to get more aggressive on monetary easing, a move […]

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Samsung-Backed Blockchain Startup Raises $7.5M from Shinhan Bank

Samsung-backed blockchain startup Blockco raised $7.5 million in a funding round from Shinhan Bank and KEB Hana among others.

South Korean blockchain startup Blockco has secured 9 billion Korean won ($7.5 million) in a recent Series B+ funding round participated by major local banks.

Banks continue interest in blockchain

Backed by South Korea’s tech giant Samsung, Blockco announced the investment in a blog post on Aug. 22.

The funding round involved South Korea’s oldest bank Shinhan Bank and South Korea's largest foreign exchange bank, Korea Exchange Bank, also known as KEB Hana Bank. 

Additionally, the new investment was also supported by healthcare-focused venture capital firm LB investment and the venture arm of Seoul-based entertainment startup Dadam Game.

Blockco backed by Samsung and Amazon

Founded in 2014, Blockco reportedly raised 1.5 billion won ($1.2 million) from Samsung Ventures in July 2016. As blockchain tech company in South Korea, Blockco established a blockchain-as-a-service platform called Coinstack back in 2015 and launched enterprise blockchain protocol Aergo mainnet in 2018.

As reported, Blockco participated in the development of permissioned blockchain system NexLedger in collaboration with Samsung Group and Amazon Web Services. Released in 2017, Nexledger is a permissioned blockchain system providing an integrated solutions for cost-efficient methods of managing digital financial transactions and data exchange.

Meanwhile, recently, Shinhan Bank was reported on the development of a blockchain-based stock lending platform in partnership with financial services company Directional. KEB Hana Bank and Samsung Electronics are members of the South Korean consortium that plans to launch a blockchain based mobile identification in the country in 2020.

R3 Plagued by Internal Conflicts Over Corda, Sources Claim

The development of R3’s enterprise blockchain platform Corda is reportedly beset by fundamental disagreements over its core vision, causing frustration and delay.

The development of R3’s enterprise blockchain platform Corda is being plagued by fundamental disagreements over its core vision, causing frustration and delay.

The claim was made in a report from FT Alphaville on Aug. 22, citing numerous insider sources.

“Corda maximalists” versus interoperability proponents

Sources close to R3 reportedly allege that there is a gulf between Corda’s engineers and its senior management as regards the product’s design and development. The engineers have purportedly lost faith in the technology itself, considering it to be functioning poorly and underscoring that it lacks scalability. 

They have also pointed to the allegedly 5-figure monthly bills R3 is ratcheting up in payments for cloud services, which cast a shadow over the platform’s long-term viability.

Other sources have spoken of tensions at the level of the workforce, accusing the R3 engineers of being susceptible to a “three-year itch” they believe besets the enterprise blockchain sector as a whole.

Sources have spoken of irresolution as regards R3’s identity — split between pitching itself as being a financial software firm to a more wide-ranging tech consortium. 

As regards Corda itself, they claim there is a lack of ambition and clarity regarding exactly what kind of blockchain it aspires to be — and whether or not it will at all remain committed to distributed ledger technology also known as DLT. 

This split has become tribal, they allege, with a split between so-called Corda maximalists and those open to pursuing interoperability.

The bottom line is that many reportedly fear the platform will not offer diverse businesses the efficiency gains it promises.

“Powerful but not very useful”

Among the R3 engineers, anonymous sources have said the consortium is trying to market software that is still ill-conceived and underdeveloped; they added that R3 is struggling to manage its burgeoning client base.

FT Alphaville was told by other in-house engineers that the flagship product “still feels like an engine without a car — powerful but not very useful.”

Notably, some have alleged the company would have faced a cash crisis had it not reached a settlement in 2018 with erstwhile rival Ripple over a legal dispute involving the breach of an option agreement that would have allowed R3 to purchase XRP at a discounted price.

Earlier this month, R3 announced plans to open a second European office in Dublin in 2020, just weeks after doubling the size of its London hub as part of an aggressive expansion plan.

Researchers Concur Current Bitcoin Market Cycle is Only Just Beginning

Bitcoin price cycles can be influenced by a number of factors, FOMO and public sentiment is one, and mining profitability and difficulty is another. Two separate Bitcoin data researchers have offered their insights as to why the current BTC market cycle still has a long way to go.

BTC Mining Profitability and Difficulty

One measure of the ebbs and flows of Bitcoin markets is how miners interact with the network. Mining profitability and difficulty are intertwined so when it no longer becomes profitable to mine new blocks, the hardware is shut down until such a time that the difficulty drops to a point where it becomes profitable again.

Crypto researcher ‘PlanB’ has charted the past three major market cycles noting these exact points where miners have capitulated and difficulty has bottomed out. These correlate with Bitcoin price peaks and troughs over the past decade.

“After each ATH #bitcoin price drops until a lot of miners aren’t profitable. Miners switch off hardware (capitulate), hashrate drops, and difficulty adjusts downwards … until miners become profitable again and difficulty rises. Difficulty bottom (100%) starts a new bull market”

Looking at the current situation reveals that we are only just beginning the next market cycle in terms of Bitcoin price and the price at the difficulty bottom which was at the beginning of this year. The gradient of the patterns should also be noted indicating that, using this model, it will take much longer to reach the next peak than it did in previous cycles.

Adjusted Binary Bitcoin Days Destroyed

Another measure of market cycle peaks is adjusted binary BTC days destroyed which determines demand by multiplying the quantity of BTC by the days since the coins were moved. This metric was created by Ikigai Senior Quantitative Researcher, Hans Hauge.

Hauge recently tweeted that we are not near the top until this measurement starts to accumulate.

“Bitcoin bubble tops are clearly identified with a dark red cluster of Adjusted Binary BDD. Until that happens, we’re not at the top. Public opinion is key here because that red cluster is caused by the assumption of the crowd and is self-fulfilling (reflexivity).”

There has been no public hysteria so far in 2019 and, unlike 2017, it has been a case of slow accumulation. Traders and hodlers have been buying the dips which explains the market chop and range bound price action.

Crypto Fear & Greed Index on Aug 22, 2019

Crypto Fear & Greed Index on Aug 22, 2019

Hauge added that the fear and greed index, which is currently at rock bottom on 5, is also a good time to enter the markets for longer term gains. Although billionaire Warren Buffet is a bitcoin antagonist, his famous quote: ‘Be fearful when others are greedy and greedy when others are fearful’, appears to be quite apt for this situation.

Image from Shutterstock

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‘Foolish’: Crypto Fund CEO Warns Against Bitcoin Maximalism Narrative

bitcoin maximalism

Cryptocurrency politics is focusing on Bitcoin at the expense of altcoins, but a flip could occur any time, an industry investor has warned.


Simpson: Don’t Pin All Your Hopes on Bitcoin

That was the conclusion from Arianna Simpson, founder and CEO of crypto and blockchain-focused investment fund Autonomous Partners.

In a discussion on social media August 22, Simpson said sentiment favored Bitcoin over altcoins now, but that status quo has changed multiple times and could do so again.

“The general crypto narrative seems to be drifting back to bitcoin maximalism,” she summarized.

…BTC has clearly outperformed most other cryptoassets by a wide margin YTD. Expecting that this will always be the case (or that holding only BTC is the right move) strikes me as foolish.

The comments come at a timely juncture in cryptocurrency’s history. As Bitcoinist reported, Bitcoin’s returns have vastly outperformed major altcoins in 2019. Unlike the previous bull run in 2017, alts have so far failed to rally, losing more and more value in BTC terms. 

Top five tokens such as Ethereum (ETH) and Ripple (XRP) continue to trade around 80% below their all-time highs. Against BTC, both are lower than ever.

Well-known traders have thus gone on record in recent weeks to announce the death of the altcoin market, possibly for good. Among them was Peter Brandt, who likened the lifelessness of alt markets to the dot com boom of the early 2000s.

Ethereum ‘Better Performing Investment’

Simpson’s opposing argument is thus even more conspicuous.

“Those who have been in this space for many years should recall that this is by no means the first time the pendulum has swung back and forth — in 2017 bitcoin was old news and it was all the shiny new (Layer 1 technologies) that were going to take over the world,” she continued.

“In reality, ETH was a better performing investment for many (even when considering the major correction of 2018!) than BTC was. So BTC remains king, but discounting everything else is silly.”

Her remarks will be music to the ears of long-suffering investors whose portfolios have failed to react to this year’s Bitcoin bull market. 

Pressure also continues to come from Bitcoin advocates, with developer Udi Wertheimer this week publicly chastising Ethereum participants in particular for the losses following 2017’s ICO craze. 

“It’s time for the ETH gang to wake up, smell the ashes, and take some responsibility,” he tweeted. 

“Their 2017 ‘blockchain everything’ narrative failed miserably and cost retail investors BILLIONS, dumped into scams supported by ETH naiveté.”

What do you think about the Bitcoin vs. altcoins debate? Let us know in the comments below!


Images via Shutterstock

The post ‘Foolish’: Crypto Fund CEO Warns Against Bitcoin Maximalism Narrative appeared first on Bitcoinist.com.

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

A group of hardcore bitcoin maximalists have heroically overcome their hatred for Ethereum after receiving ERC20 shares in crypto exchange INX worth hundreds of thousands of dollars. The staunch BTC loyalists, led by Blockstream CTO Samson Mow, have agreed to support a project built on Ethereum, despite all the mean things they’ve said about it. The news has provoked intense debate within the crypto space, however, with some cynics arguing that the maximalists are only in it for the money.

Also read: The World Bank’s Blockchain Bond Is Just a Fancy Way of Selling Debt

Mow Money, Mo’ Problems

As CTO of Bitcoin development company Blockstream, Samson Mow’s primary duty is to keep block sizes small to peddle his firm’s scaling solutions to the problem it engineered. High fees don’t generally concern bitcoin maximalists such as Mow, who have no interest in using BTC for its intended purpose, instead preferring to lock it away in a vault and never look at it again. It’s a policy that, for all its flaws, has helped to make Mow and his cronies extremely wealthy, and Blockstream an extremely influential Bitcoin company.

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

The significant success of Mow’s primary business, however, has caused a paradox: to launch one of his secondary ventures, a crypto exchange in which he has invested $100K, it will be necessary to utilize a network with low fees. Bitcoin is out of the question for the aforementioned reasons, while Ethereum should also be a non-starter due to a number of immutable statements Mow has made about the rival network, calling it “the most impractical thing in existence,” a “science fair projectand “centralized AF.” The Blockstream bigshot also wrote “I wish ill on Ethereum” which “has no future.”

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse
Samson Mow, at the same time as he was investing in a financial-based Ethereum platform.

On the surface, these damning remarks would appear to preclude Mow from accepting 100,000 ERC20 tokens to serve on the advisory board of INX Limited. To do so would be at odds with everything he has ever fought for, and could be interpreted as the actions of a man with no spine or standards. On closer inspection, however, it becomes evident that Samson Mow is not the flip-flopping fool that many have taken him for. Rather, his actions are those of a true bitcoin maximalist, whose sole motivation for accepting Ethereum tokens is to demonstrate the superiority of BTC.

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

Samson Mow Plays 4D Chess

Samson Mow, together with fellow maximalist Jameson Lopp, and a handful of other close collaborators including Riccardo Spagni and Charlie Lee, will have a significant stake in the venture, which will see 130 million shares issued as ERC20 tokens. All of the project’s early investors will be remunerated in Ethereum tokens, as detailed in an SEC filing unveiled this week. “Ethereum” and “ERC20” appear over 100 times in the document, attesting to the pivotal role that will be played by the network maligned by Blockstream’s Mow et al. Notably, the IPO filing expounds at length on Ethereum’s gas fees, which are multiples lower than their BTC equivalent.

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse

Bitcoin Maximalists Embrace Ethereum After Receiving an Offer They Can’t Refuse
Spagni defends his INX investment.

Despite Mow’s previously scathing comments about Ethereum, his decision to accept $100,000 of ERC20s is probably born not out of avarice, but from a principled desire to prove that only Bitcoin is immutable. Everything else in this world – including the Ethereum blockchain and even Mow’s own words – is reversible, and subject to being rolled back when there is a financial incentive to do so.

It is to Samson Mow’s credit that, after years of badmouthing Ethereum, he has eaten his words to prove the inviolability of BTC alone. When Mow’s stake in INX became public this week, bitcoiners were swift to label him an unprincipled hypocrite. It turns out he was playing 4D chess all along.

What are your thoughts on Samson Mow’s sudden change of heart? Has Mow now made a greater contribution to Bitcoin than Satoshi Nakamoto? Let us know in the comments section below.


Images courtesy of Shutterstock.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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Central Banks Digging Their Own Grave: Boosting Bitcoin Price Higher

Despite the recent lull in the Bitcoin price, it is clear that the cryptocurrency market is back in another uptrend. Year to date, BTC has rallied some 200%; altcoins are up a similar amount in the same time frame.

Of course, many investors, especially those without allocations for Bitcoin, have sought to figure out the “why” and “who” behind this surge.

One finance journalist for the Financial Times and the Nikkei Asian Review recently brought up her own theory, explaining her thesis about why Bitcoin’s value is swinging to the upside.

Bitcoin

Central Banks Are Digging Their Own Grave

Bitcoin was born to take down central banks. While Satoshi Nakamoto, the creator of the project, never used that exact wording, many involved in the industry have extrapolated the protocol itself and some of his writings to determine that he isn’t a fan of fiat finance.

The nail in the coffin of this theory is, of course, the article headline embedded in the Bitcoin Genesis Block, which outlined a bank bailout in 2009. What else could that have been but a statement?

What’s ironic is that central banks may be the one group of entities driving up the value of Bitcoin — and thus its chances at succeeding.

Bitcoin Has Fiat to Thank

Henny Sender, the chief correspondent for international finance for the Financial Times, discussed why she thinks this is in her latest column for the Nikkei Asian Review.

The headline, “Central banks drive demand for bitcoin by devaluing their currencies”, conveys her point well. But she took some time to explain what exactly is happening.

The world is currently trending from globalism to protectionism. Just look to China and the U.S. or Japan and South Korea, with there being two raging trade wars. Simultaneously, the uptrend of the current business cycle has started to taper off, resulting in slower growth and even economy shrinkage in some nations.

To combat this, central banks have gone “dovish”, cutting interest rates and injecting money into the economy through quantitative easing. In fact, for the first time since the Great Recession, the Federal Reserve cut rates a number of weeks back.

Sender argues that these policies, “which amount to competitive currency devaluations in the name of reflating economies”, are driving up the price of Bitcoin.

Indeed, just look at the correlation between the Chinese Yuan and Bitcoin. When the Chinese currency fell through seven RMB to the USD level due to a People’s Bank of China decision, Bitcoin surged. Investors, she implied, are looking to Bitcoin as a hedge against their wealth wasting away. Just look to this excerpt from a recent report from Grayscale:

“Bitcoin has the potential to perform well over the course of normal economic cycles as well as liquidity crises, especially those involving currency devaluations. It has store-of-value characteristics similar to real assets like gold, with hard-money attributes like immutable scarcity.”

That’s not all. Sender goes on to write that the low — sometimes negative — yields on sovereign debt is only “dropping the opportunity cost of holding gold or Bitcoin dramatically”. Indeed, when an investor is losing money on investments that were once some of the best in your portfolio, they’re likely to go and seek alpha. And right now, Bitcoin and other cryptocurrencies are some the only return-generating assets being traded on the market.

Grayscale, in fact, reported that since Donald Trump started the latest trade war between the U.S. and China, the average asset class — including everything from the Chinese Yuan to emerging markets — has lost 0.5%. But, during the same time period, Bitcoin has gained just over 100%. Nice.

The post Central Banks Digging Their Own Grave: Boosting Bitcoin Price Higher appeared first on Blockonomi.

Trump Administration’s Mike Pompeo Wants to Regulate Crypto Transactions

The Trump Administration and the world’s regulators don’t seem to want to give the crypto industry any breathing room.

Speaking with CNBC’s “Squawk Box” panel on Tuesday, Mike Pompeo, the U.S. Secretary of State, doubled down on the narrative that digital asset transactions should be more heavily enforced.

Squark Box

Regulate Crypto Like SWIFT

With cryptocurrencies becoming more and more relevant on the global stage, CNBC’s resident Bitcoin bull, Joe Kernen, took a chance on Tuesday to bring up cryptocurrencies in an interview with Mike Pompeo.

Surprisingly, Pompeo played along, but nonetheless asserted that he didn’t want to create a “viral moment” or “meme” by taking a certain stance on this budding technology.

Pompeo argued that the anonymous/pseudonymous transactions that cryptocurrencies can enable do pose a security threat or “risk” to America and its allies. To back his point, the Secretary of State cited the 9/11 attacks, which is something that Congressman Brad Sherman did to bash Libra last month:

“We know this from 9/11 and terror activity that took place in the 15 years preceding that where we didn’t have good tracking, we didn’t have the capacity to understand money flows and who was moving money.”

To mitigate a redux of 9/11 enabled through financial technologies, Pompeo proposed that “electronic financial transactions” should be regulated by the same laws that a global platform like SWIFT is subject to.

While he admitted that it would be difficult to do so, he accentuated that the world is much less secure without proper regulation over a cashless world. In fact, Pompeo argued that regulatory oversight over fiat finance has “helped keep the entire world secure and to fight terrorism and other nefarious activity.”

In his statement, the Trump advisor staved off from mentioning certain fintech platforms or even cryptocurrencies, but the comment was made in direct response to an inquiry from Kernen.

Pompeo’s statements on the cryptocurrency industry come shortly after other prominent members of the Trump administration have commented on digital assets.

As reported by Blockonomi previously, President Donald Trump himself claimed that cryptocurrencies like Bitcoin can “facilitate” illicit activity and that Libra should abide by traditional banking laws.

And Treasury Secretary Steven Mnuchin has claimed that he and other regulators “will not allow digital asset service providers to operate in the shadows and will not tolerate the use of the cryptocurrencies in support of illicit activities.” Mnuchin also echoed Pompeo’s line, stating:

“The United States Treasury has been very clear to Facebook, to Bitcoin users, and to other providers of digital financial services that they must implement the same [rules] as traditional financial institutions. The rules governing money-service providers apply to physical and electronic transactions alike.”

Regulatory Oversight Already Happening

While Mnuchin and Pompeo are making it sound like this industry is entirely unregulated, this is far from the truth. The IRS, for instance, has recently begun a crackdown on cryptocurrency investors.

Also, the U.S. is part of a new consortium being established to track the users of Bitcoin and other public blockchains. The U.S. recently joined its fellow G7 members, Australia, Singapore, amongst other nations to create a platform that will collect and share the personal information of those using cryptocurrencies. An excerpt from the Nikkei Asian Review article unveiling this venture reads:

“The goal is to prevent funds from being laundered, going to terrorist organizations or otherwise being put to illicit use.”

It wasn’t revealed how the new project, which remains unnamed, would farm data from users of Bitcoin and other cryptocurrencies. Regardless, the collective is currently aiming to have a plan in place by 2020, and to have launched the project a few years later.

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Bitcoin Price ‘Not at the Top’ of New Bull Cycle Yet, New Data Shows

Ikigai researcher notes Bitcoin Days Destroyed metric mimicking behavior immediately before 2017’s record price run

Bitcoin (BTC) price has far higher to go during its current market cycle if crowd sentiment takes charge, according to analysis of the Bitcoin Days Destroyed (BDD) technical metric.

In social media posts Aug. 22, Hans Hauge, senior qualitative researcher at crypto investment fund Ikigai, identified Bitcoin sentiment as being similar to early 2017. That was just months before the cryptocurrency reached its all-time high of $20,000.

“Bitcoin bubble tops are clearly identified with a dark red cluster of Adjusted Binary BDD,” he summarized tweeting a corresponding chart. 

He added:

“Until that happens, we're not at the top. Public opinion is key here because that red cluster is caused by the assumption of the crowd and is self-fulfilling (reflexivity).”

What’s BDD?

BDD refers to the amount of time between movements of an amount of Bitcoin. Higher prices tend to coincide with coins moving more often; at present, the opposite trend is apparent, says Hauge. 

Coupled to this, as Cointelegraph recently reported, the Bitcoin Fear & Greed Index, which also measures market sentiment, remains near the bottom of its possible range. 

“That's the exact thing you should be looking for if you're buying the dip for the long-term,” Hauge advised.

Bitcoin accumulation phase due for timeout

BTC/USD has languished in an uninspiring sideways pattern for much of this month, leading to warnings a downturn is on the way. 

Next in line could be a trip to the $7,000 range, says another trader, arguing that such a pullback remains historically plausible and would not suggest a bear market.

Zooming out, however, other market analysts predict just the opposite, fresh gains to be characterized by next year’s block size reward halving due in May.

PlanB, the Twitter account championing the stock-to-flow method of predicting Bitcoin price, likewise suggested current behavior mimics that of early 2017.

“Bitcoin’s 3 month struggle to break the magical $10k feels like begin 2017 struggle to break $1k ... we all know what comes next,” he tweeted last week.

Heavy Rains Hit “Bitcoin Mining Capital” Sichuan: Some Facilities Flood

You can count on the Sichuan Basin in Northwestern China being rainy every autumn. The question is: how rainy?

This year, the seasonal downpours are proving particularly torrential, as extreme flooding in recent days has led to evacuations and fatalities in the region.

Also affected have been bitcoin and cryptocurrency mining operations in the area, according to local reports. Notably, Sichuan is one of the world’s biggest centers for bitcoin mining activity.

Bitcoin Mining Hash Rate

Red Li, co-founder of Chinese crypto publication 8btc, confirmed that a few mining facilities appeared to be “wiped out” from the flooding. Li posted to Twitter several photos depicting destroyed local infrastructure and washed out, mud-covered bitcoin mining rigs.

The Beijing-based Poolin, currently the fourth largest bitcoin mining pool in the world, also highlighted the catastrophe. The company posted videos to its Twitter account showing what appeared to be a Sichuan mining facility being enveloped by flooding and workers digging through muddy rigs in the aftermath.

Double-Edged Water Sword

Back in June, cryptocurrency research company Coinshares published a report suggesting the majority of the world’s bitcoin mining operations are powered by renewable energy sources. With that said, many Chinese miners rely on hydropower for cheap renewable energy.

That cheap hydropower has a catch: it depends on Chinese wet seasons being wet. Many of these miners and their businesses depend on being located in areas where heavy seasonal rain is not just the norm, but the needed reality. If Sichuan was dry year round, miners wouldn’t be relying on hydropower there (but solar power would then be an option).

So sometimes when it rains it pours, and when disastrous amounts of rainfall hit popular mining centers in China, these operations’ lifesource becomes a possible death knell like was seen this week. Some Sichuan mining facilities were notably rocked by flooding last year, too — it’s the name of the game, it seems.

Fortunately, the damage appears to have been isolated to a few facilities. Among other things, that means the Bitcoin hash rate hasn’t been affected much by the flooding. As of August 21st, the hash rate hovered around 77.5 quintillion hashes per second according to Blockchain.com — not far from the 82.5 quintillion hashes per second seen on August 18th.

A Lesson in Anti-Fragility

Flooding in Sichuan hardly qualifies as a black swan event because such flooding is almost expected to happen.

Still, mining operations that take preparations against the region’s seasonal fury can still find their efforts reduced to rubble by nature’s power because only so much can be done in the face of natural disasters. Flooding can hit hard and fast and acutely take local populaces by surprise, for one.

Zooming out on bitcoin, for the cryptocurrency to work as a non-sovereign global money system, it has to be able to keep chugging along even if parts of its network are affected by disasters or black swan events.

If a central spoke on the centralized VISA network got affected by a hack or extreme weather, an entire continent of users might lose access to their money for a time. On the flip side, flooding can hit a bitcoin mining capital and Bitcoin doesn’t even come close to losing any uptime. Such anti-fragility is one of the cryptocurrency’s biggest value propositions.

A Wet Season / Dry Season Problem?

Some disregard the environmental implications of Bitcoin mining because they point to the network’s reliance on renewable energy. But it’s not so simple, and China’s weather patterns show why.

When rainy seasons give way to dry seasons in China, many miners shift from using hydropower to burning fossil fuels, e.g. through coal plants.

PwC blockchain expert Alex de Vries has previously argued that dynamic could lead to the “construction of new coal-based power plants” in China, which would grow Bitcoin’s environmental implications.

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Is Ethereum (ETH) Hitting Its First “Mainstream Bear Market”?

Is ether (ETH), the gas of the Ethereum network, in a long bearish accumulation zone ahead of a considerable breakout, like the bitcoin price experienced from 2014 to 2017? One cryptoeconomy mainstay seems to think so.

Chris Burniske, a partner at cryptocurrency-centric venture capital firm Placeholder said this week that ether appeared to be in the throes of its “1st mainstream bear market, just as BTC did in 2014/2015.”

Ethereum Bear Market

From the market’s top in 2014 to the market’s bottom in 2015, the bitcoin price dropped from near $1,000 USD to $200. That 80 percent decrease preceded the cryptocurrency’s eventual march to $20,000 in late 2017.

In his new comments, Burniske argued that specific bitcoin bear market was “the best risk/reward period for investors to get BTC exposure” and suggested ether may now be in the middle of such a period.

“To objective observers, the network’s momentum was clear despite the bearish price action; those pre-disposed to dislike based on perceived vested interests, were blinded by biases & missed the bus,” Burniske said.

The takeway? The investor thinks ether has clear momentum that is being missed by many others, even as proponents believe in the cryptocurrency as much as ever.

Of course, if Burniske’s projection doesn’t pan out and the ether price remains bearish for years to come, it would be far from the first time a cryptoeconomy analyst got a forecast wrong. But Burniske isn’t known for spewing such chatter willy nilly — he has a conviction that some are missing what’s right in front of them, like many missed bitcoin in 2015. Whether that projection will actually play out remains to be seen, though.

Latest Bullish Run Over For Now?

Burniske’s “1st mainstream bear market” comments come as an attempt to extrapolate where ether is going from where bitcoin once went.

If we look instead at where ether has been the past few months and where it’s at now, then it appears like ether’s recent bullish trajectory is losing steam — at least for the time being.

ETH bottomed near $83 in December 2018, but after a few months passed bullish buy pressure pushed the cryptocurrency on a run up to more than $360 each this summer. As autumn nears, that buy pressure may have cooled off for now.

For example, consider how the ether price closed last week under $200. That’s the first time that dynamic has occurred since May. In other words, bullish investors may be acutely exhausted in the current cryptoeconomy cycle and bearish trends could be in store for the foreseeable future.

Or not. Maybe Bakkt’s coming arrival kicks off another cryptoeconomy run and crypto bulls live to fight another day. No one knows for sure until it’s all behind us.

What Could Ethereum Become?

Ethereum is angling toward becoming the reserve asset in its own “money lego” economy, as Mythos Capital founder Ryan Sean Adams suggested in a recent edition of The Defiant newsletter:

“Ethereum culture shuns price talk. Build, don’t shill is the mantra. While this ethos has served the community in many ways, it’s also caused us to undervalue and misunderstand the asset that makes Ethereum possible.

[…] ETH has utility, but it’s not just a utility coin. ETH will be used for staking, but not just a staking token. Ethereum is an emerging economy. And ETH is the reserve asset of that economy.”

As Adams argued in later tweet, assets used on Ethereum will be a “future revenue source” for Ethereum’s coming proof-of-stake validators. He pointed to the example of Tether, which has now paid more than 1,000 ether over the last month to run its ERC-20 USDT stablecoin on Ethereum.

Those fees will be going to stakers before long. The genesis block of the “Ethereum 2.0” network seems primed to launch in 2020.

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Trump Tirade Fears Kill ‘Pointless’ G7 Agreement in a 44-Year First

By CCN Markets: For the first time in the G7’s 44-year history, the summit will conclude without a joint communique. According to the Financial Times, the host of this year’s summit French President Emmanuel Macron has decided to abandon the practice to prevent an ugly public show of differences similar to what happened last year […]

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Will Altcoins Finally Surge as Bitcoin Dominance Hits Resistance?

For the fifth time since its 2019 rally began, Bitcoin has dipped back into the four figure price range. The move has not been unexpected, however it is clear that this bull run has exhausted its supply of buyers for now. If BTC dominance declines, will it be a chance for the altcoins to shine?

Bitcoin Dominance At Resistance

Bitcoin dipped back to just below $9,800 during the day’s Asian trading session. Over the next few hours it returned to $10k, but failed to register any significant gains above this psychological barrier. The digital asset has now returned to similar levels last week but remains range bound for now.

The fear is that the correction is not over and another lower low may well confirm that. Analysts on crypto twitter are currently targeting $9,500 as the next support level. A break below that would see BTC back at $9,100 pretty quickly.

In all previous market cycles this year Bitcoin has dominated the movements and the altcoins have blindly followed like the digital lemmings they are. With very little momentum for the majority of them BTC dominance shot up to a two year high of 71.5% earlier this month according to Tradingview.

At the moment it has dipped back below 70% and according to crypto investor ‘WelsonTrader’ is now at resistance.

“#Bitcoin dominance is currently at resistance, and will likely drop soon.
#Altcoin market cap is at support, and will likely bounce.
This, along with some other things I’ve tweeted about is why I think Alts will pump, and $BTC will crash.”

There have been calls for an altcoin revival all year but as yet nothing has come to fruition. Even the top performers of the year, Litecoin, Binance Coin, and Chainlink are starting to lose their luster as gains get eroded.

Crypto Markets Vulnerable

At the moment Bitcoin and its brethren look vulnerable as a further $5 billion was dumped over the past 24 hours. So far this week over $20 billion has been outflow which equates to 7% of the crypto market. Total market capitalization has returned to the same level it was at last Thursday which is around $260 billion.

Right now, the altcoins do not look like making any moves in opposition to their big brother. Ethereum has hit support at $185 and remains there, XRP is very weak below $0.30 and Bitcoin Cash has dropped below $300.

If Bitcoin dominance does fall from resistance there must be a re-entry into altcoin positions for their market share to increase. Many are still at rock bottom prices so could provide a greater risk/reward ratio at the moment, but only time will tell.

Image from Shutterstock

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More Pain Predicted as Bitcoin Falls Below $10,000 Again

bitcoin panic

In a dip that matched last Friday’s, bitcoin fell back to $9,780 during Asian trading today. The trend has been clearly down this month and further losses have been predicted for BTC by leading crypto analysts.


Bitcoin Back in Four Figures

At the time of writing, BTC was clinging on to the $10k level after a dip just below $9,800 a few hours ago according to Tradingview.com. The fresh fall marks the fifth time bitcoin has fallen back below this key psychological level indicating that the bulls have run out of steam above it.

bitcoin

BTC price 1 hour chart. Tradingview.com

The ‘death cross’ is imminent as the 50 hour moving average is about to drop below the 200 hour MA. This has already occurred on the four hour chart signaling a strengthening of the down trend. The move has caused an escalation of panic and fear as usual though BTC is still trading in a range bound channel.

Trader and analyst ‘CryptoFibonacci’ has taken a look at a line chart which targets support at the mid-$9,000s level.

Fellow trader ‘CryptoHamster’ has picked up on the panic and eyed a region of $8,500 to $9,200 as a buyback zone.

Bloodbath. Everyone says:
“it goes to 8.5k/8k/7k” (pick your favorite).
“We need to test 21EMA!”
“There was not enough pain”
And so on.
Question: does market go as the crowd expects?

The sentiment at the moment is definitely one of fear but considering this has happened five times since the 2019 peak in late June; people should really start getting accustomed to these market swings.

Looking at the current market momentum, the next move should be a fall to support around the $9,500 area. If there are still plenty of buyers lurking there bitcoin will be back in five figures by the weekend. If they run out of impetus there could be a new lower low on the cards which could result in a dip into the $8,000s.

Elsewhere on Crypto Markets

Total crypto market capitalization has shed a further $5 billion over the past 24 hours. As usual the altcoins are also suffering with many of them still capitulating today following yesterday’s heavy losses. Ethereum is back at support around the $185 level and looking extremely weak despite positive network fundamentals.

Ripple’s XRP is still falling, now back to $0.265, while Bitcoin Cash has lost another 3% in a dip below $300. Litecoin continues its collapse as it nears $70 and the once strong Binance Coin is very close to $25. There is a sea of red across altcoin markets again as they all start to feel the cold of winter seeping back.

Will bitcoin drop below $9k this weekend? Add your thoughts below.


Images via Shutterstock, Twitter @CryptoHamsterIO, @CryptoFib

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