Brazil Establishes Committee for Cryptocurrency Regulation

The President of the Chamber of Deputies of Brazil has ordered to establish a commission to consider cryptocurrency regulation in the country.

The President of the Chamber of Deputies of Brazil has ordered to establish a commission to consider cryptocurrency regulation in the country, Cointelegraph Brasil reported on May 31.

The Chamber of Deputies of Brazil is a federal legislative body and the lower house of the National Congress of Brazil, and consists of representatives of the states elected every four years. The Chamber discusses and approves proposals for economic and social areas such as education, health, transport, and housing.

On May 30, the President of the Chamber of Deputies, Deputy Rodrigo Maia has requested the creation of a special commission to deliver an opinion on bill 2303/2015, which aims to regulate bitcoin (BTC) and other digital currencies in Brazil.

The commission will be composed of 34 members in accordance with the House Rules of Procedure. The notice also states that Federal Deputy Aureo Ribeiro presented two projects in regard to cryptocurrency regulation.

Earlier this week, the president of the Brazilian Association of Crypto and Blockchain  (ABCB), Fernando Furlan, had a meeting with other representatives of the industry and authorities of the Attorney General's Office, the Central Bank of Brazil, the Internal Revenue Service, and the Financial Activities Control Council.

The meeting was devoted to the recognition of the crypto and blockchain sector in Brazil and the application of the rules of the Financial Action Task Force on cryptocurrencies. The rules will be officially presented at the G20 finance ministers meeting in June in Japan, while companies will have until 2021 to adapt to the rules.

Also this month, the Brazilian Internal Revenue Service published a new tax rules for cryptocurrencies. Per the new rules, cryptocurrency transactions in the amount over 30,000 reals ($7,600) must be reported on a monthly basis, including details on whether the transactions were carried out on exchanges in Brazil, abroad, or peer-to-peer.

Ernst & Young Exec: Most Ethereum Decentralized Apps Not Used Productively

The head of innovation at Big Four audit firm Ernst & Young argued that blockchain disruptors should “go back to first principles.”

83% of decentralized applications (DApps) on the Ethereum network are “not in the most productive uses,” according to Ernst & Young’s (EY) head of innovation.

Paul Brody, Global Innovation Leader for blockchain at Big Four audit firm EY, spoke about developments in the blockchain and digital asset industries during a Fintech Forum hosted by the United States’ Securities and Exchange Commission’s (SEC) on May 31.

The event was organized by the SEC’s Strategic Hub for Innovation and Financial Technology (Finhub, which) launched in October 2018 to facilitate the commission’s engagement in the fintech space, including distributed ledger technology (DLT) and digital assets, among others.

During the first panel of the forum, called “Capital Formation Considerations,” Brody outlined a major issue regarding the implementation of blockchain technology.

Brody said that, in order to make blockchain technology successful, global crypto disruptors should “go back to first principles,” to understand how this technology should be applied to bring solutions, as opposed to just “money chasing” in the digital environment.

As such, Brody pointed out that the purpose of capital markets is to take money from investors and to put it into productive use. Brody hinted that crypto space is “not doing very well” in this regard, claiming that the most part of DApps on the Ethereum blockchain are “maybe not in the most productive uses.”

Brody cited data from the Q1 2019 report by blockchain analytics firm DApp.com. The expert noted that 14% of Ethereum-based DApps are used at crypto exchanges, while most of them are used for gambling and gaming, accounting for 44% and 13% of DApps, respectively.

Brody argued that the technology implementations should focus on more productive applications like distributed computing, fractional real estate, new business models, and fractional infrastructure instead. According to the expert, such a strategy will contribute to a “tremendous lasting legacy that is positive.”

In late 2018, Brody compared the initial coin offering industry with late 1990s’ internet startups, claiming that the space looked “worse than we thought.” Earlier today, Ernst & Young open sourced the code for its Ethereum private transactions solution called Nightfall.

Crypto Exchange Bitfinex Temporarily Shuts Down Deposits and Withdrawals

Cryptocurrency exchange Bitfinex has announced that it temporarily shut down its services.

Cryptocurrency exchange Bitfinex has temporarily shut down its services, according to a tweet published on May 31.

The tweet specifically says that the change has temporarily paused deposits and withdrawals “due to the outrage of one of [their] network providers.” “Funds are safe in cold storage. Situation should be restored ASAP (ETA 3/4h). Apologies for the inconvenience,” the company further states.

Bitfinex CTO Paolo Ardoino has posted links to the exchange’s hot wallets, so as to insure the community that there are no outgoing tokens and that user funds were secure.

As previously reported, Bitfinex and its affiliated stablecoin issuer Tether were brought into full focus when at the end of April, the New York Attorney General (NYAG) Letitia James accused the two companies of covering up a $850 million loss that could have affected New York investors.

Per the filings at the time, Bitfinex allegedly never revealed the loss to investors, with executives of the exchange and Tether engaged in a series of conflicting corporate transactions where Bitfinex received access to up to $900 million of Tether’s cash reserves. Bitfinex allegedly took no less than $700 million from Tether’s reserves and used the funds to hide losses and inability to handle clients’ withdrawals.

Litecoin Leads The Way: Does LTC/BTC Price Chart Hint at Bitcoin Correction Target?

Throughout 2019, the entire crypto market has been led by the silver to Bitcoin being digital gold, Litecoin. The crypto asset’s halving is in less than 70 days, and investors are eagerly loading up their bags in anticipation of the pre-halving pump that’s become a meme across the crypto community.

Since Litecoin often leads rallies, dragging other crypto assets along for the ride, price charts of the asset paired against BTC could be telling as to where the Bitcoin price may be targeting if the parabolic rally is truly over and a short-term downtrend is ahead.

LTC/BTC Chart Could Show Sub-$5K Bitcoin Price Target

At the start of 2019, it was Litecoin that led the initial crypto rally out of the depths of the bear market. During that time, some altcoins had been exploding in value relative to BTC prompting many crypto investors to believe an alt season had been brewing. They were wrong.

Once Bitcoin breached resistance at $4,200 sparking a massive rally in the first ever crypto asset, altcoins diverged and dropped in value significantly relative to their BTC counterpart. The bleeding led to many altcoins reaching new bear market lows in BTC value.

Related Reading | Can Litecoin Halving Spark Crypto Alt Season and Boost Bitcoin Price Higher?

Now that Bitcoin’s rally is seemingly over following yesterday’s violent rejection at $9,000 that sent Bitcoin downward to retest support at $8,000, crypto analysts are looking to price charts in an attempt to determine the targets for Bitcoin’s short-term downtrend. One analyst, Bitcoin Jack, believes there are similarities between Bitcoin’s price chart and the LTC/BTC chart that could be telling about where Bitcoin may be headed.

In the charts, Litecoin painted a bottoming pattern, then rallied through two levels of resistance higher, followed by a rejection at the third level that resulted in a retest of the first resistance turned support. This would place Bitcoin’s short-term correction target at roughly $4,700, according to the above the pattern on the LTC/BTC chart.

Parabolic Rally Correction Was Long Overdue

As the saying goes, what goes up must come down. And after Bitcoin’s parabolic rally that took the price up well over 100% in the matter of two months, crypto investors, traders, and analysts have been anticipating a somewhat large correction.

Related Reading | Crypto Analyst: Litecoin is a “No Brainer”

While Bitcoin declines, it could present an opportunity for that alt season to rear its head once again. BTC dominance has broken through support, and while there was a bounce yesterday, BTC dominance is expected to drop further, giving altcoins room to shine once again. And with Litecoin’s halving just ahead, all of the conditions are right for Litecoin to lead the crypto market recovery.

However, at times, Bitcoin price falling often pulls the value of altcoins down along with it. Should that happen, altcoins could reach further lows while Bitcoin finds support outside of the bear market depths.

Featured image from Shutterstock

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Coinbase President and COO Departs From the Company

American major cryptocurrency exchange Coinbase’s president and chief operating officer Asiff Hirji has reportedly left the company.

American major cryptocurrency exchange Coinbase’s president and chief operating officer (COO) Asiff Hirji has left the company, Bloomberg reported on May 31.

A source familiar with the issue told Bloomberg that Coinbase named Emilie Choi, vice president of business, data and international, as its new COO. Prior to the appointment, Choi — who served at Yahoo Inc. and worked on the original Alibaba investment and Flickr acquisition — worked on potential partnerships and acquisitions at Coinbase.

Hirji’s previous work experience is marked with over 15 organizations, including IBM Canada, venture capital firm Andreessen Horowitz, information technology company Hewlett-Packard, and Saxo Bank, among others.

In recent months, Coinbase has lost several of its senior executives, including Tim Plakas, former head of OTC at Coinbase, who left the company to join cryptocurrency bank founded by Michael Novogratz, Galaxy Digital, and compliance officers Mikheil Moucharrafie and Jeff Cartwright who joined Facebook.

In early May, Coinbase’s chief technology officer, Balaji Srinivasan also announced his departure from the company. In his tweet, Srinivasan said that he had enjoyed his time at the exchange and that he will now take time off “to get back in shape — and up to speed on everything happening” when he was busy working at Coinbase.

Tether Stablecoin Now Available on EOS Blockchain

Tether is partnering with EOS parent company Block.one to release its stablecoin on the EOS blockchain.

Blockchain tech company Tether has announced that it is partnering with EOS parent company Block.one to release its stablecoin (USDT) on the EOS blockchain (EOSIO), according to a press release shared with Cointelegraph on May 31.

According to the announcement, Tether developed the Tether EOS smart contract, which has been sent to the EOS account “tethertether” and peer-reviewed by the Canadian branch of EOS. Tether EOS is reportedly well-suited for peer-to-peer microtransactions, due to its delegated proof-of-stake design.

Tether’s Chief Executive Officer, Jean-Louis van der Velde, said that expaned the coin to the EOS blockchain provides greater interoperability.

As reported by Cointelegraph on May 30, major United States-based cryptocurrency exchange and wallet service Coinbase says that it now offers trading and storage support for the EOS token. EOS is notably one of the most circulated tokens that has been added to the exchange in recent times, boasting a market capitalization of over $8 billion.

Tether, meanwhile, is in the middle of a case versus the New York Attorney General (NYAG) Letitia James, who accused crypto exchange Bitfinex and Tether of defrauding New York investors via a massive $850 million loss cover-up. Bitfinex lawyers subsequently moved to dismiss the case on grounds of inapplicable jurisdiction and subject matter.

Binance Charity Foundation Signs Memorandum of Understanding With Ugandan NGO

The Binance Charity Foundation has signed a Memorandum of Understanding with the NGO Safe Future, launching a project focused on education improvements.

Binance Charity Foundation (BCF), the charity arm of major crypto exchange Binance, has signed a Memorandum of Understanding (MoU) with Safe Future, a non-governmental organization (NGO) in Uganda focused on local education improvements. Binance announced the development in an official blog post on May 30.

The Binance for Children Special Impact Education Project Uganda reportedly aims to provide a number of new supplies to schools in Uganda, such as solar panels, sanitary pads, school supplies, LED screens, as well as breakfast and lunch for students.

According to the CEO of Safe Future, Mula Anthony, these developments will reach 100,000 students and 160 schools in the region. As shared in an official Twitter post shared on May 28, Anthony said the project has begun with the installation of lighting kits in two Kampala schools.

As previously reported on Cointelegraph, the BCF previously launched its pilot charity campaign “Lunch for Children” with the stated aim of providing breakfast and lunch to students in Kampala throughout 2019. As per the recent announcement, the project has since expanded to include 10 schools in Kampala and Jinja. The charity arm of Binance reportedly intends to ultimately aid one million students in Africa, in countries such as Rwanda, Kenya, and Ethiopia.

In April, the BCF opened a cryptocurrency donation channel to fund the rebuilding of the Notre Dame cathedral. The program, called “Rebuild Notre-Dame,” had received thousands of dollars via bitcoin (BTC), ether (ETH), and Binance’s internal token Binance Coin (BNB).

Bitcoin to Zero: Bitcoin Price Flash Crashes 99% on BTC/CAD Trading Pair

Over the last two months, Bitcoin price has rallied from the depths of the bear market to a well over a 100% gain for crypto investors who bought when there was “blood in the streets.” Those who did catch the bottom have watched at their investment in Bitcoin double in short order, with little to no corrections throughout, expect for a flash crash that saw Bitcoin filling gaps left on the chart during after hours futures trading.

However, last night, another flash crash occurred on the price charts for BTC/CAD – a flash crash that eliminated 99% of Bitcoin price in the matter of seconds, filling orders as low as just over $100 Canadian.

BTC/CAD Pair Flash Crashes 99% on Kraken

Bitcoin is going to zero. We’ve all heard the repeated doom and gloom predictions from pundits and critics of digital assets. As recently as last week, the New York Post published an article that was barely a few sentences of useless counterarguments against Bitcoin’s recent rally, asserting the cryptocurrency would soon reach zero.

But have you ever watched Bitcoin almost hit zero right before your very eyes? That’s what happened overnight last night on the Kraken cryptocurrency exchange during trading sessions of the BTC/CAD pair. BTC as you know is the “cashtag” or trading symbol of Bitcoin, and CAD is the symbol for the Canadian dollar.

Chart courtesy of TradingView

During the flash crash, the price of Bitcoin in Canadian dollars fell from its trading range around $11,250, to a low of $101.20. Clever Kraken traders with orders at $100 were missed by just over a buck before the price of the cryptocurrency rocketed back into the range, leaving the longest wick this writer has ever witnessed on a price chart.

Related Reading | Bitcoin Price Recaptures 50% of All-Time High, But Google Search Remains Stagnant

Some lucky trader had their orders filled for $101 Bitcoin. But there’s a seller for every buyer, and some poor investor on the other side of the trade took a massive loss on their Bitcoin sale.

The fall represented a 99% drop in price, essentially eliminating all value from Bitcoin and bringing it as close to zero that the asset has been since the early days of the asset and before the public knew what a cryptocurrency was.

In traditional markets, failsafes called circuit breakers are put in place on exchanges like NYSE by regulators to avoid flash crashes, or other rapid declines due to panic-induced selloffs. These measures were put in place following October 19, 1987 when the Dow Jones Industrial Average fell over 22% in one day. The flash crash that prompted the placement of circuit breaker was later dubbed “Black Monday.”

Crypto traders who keep a small amount of fiat on reserve with bid orders for crypto assets placed extremely low in case of a flash crash, may get filled and experience the most profitable trade of their lives in a matter of seconds.

Featured image from Shutterstock

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Major drawdowns normal in Bitcoin bull markets, analyst says

Bitcoin surged past $9,000 before plummeting to $8,000 and then recovering around $8,400. While the 8 percent drop was met with concern, one cryptocurrency analyst said that large drawdowns are actually normal in Bitcoin bull markets, adding that even more extreme drops are bound to happen.

Bitcoin breaks $9,000 before dropping back into consolidation

Believed to be in a major upward momentum, Bitcoin managed to surprise the market yesterday as it spiked 4 percent and then dropped another 8 in less than an hour. According to data from Coinbase, Bitcoin jumped from $8,743.62 to $9,090.00 around 15:40 UTC, cementing the belief that it was on the verge of a bull run.

However, the world’s largest cryptocurrency managed to hold above $9,000 just 10 minutes before dropping to the lower bound of its 48-hour trading range. The coin dipped to $8,100 before consolidating at around $8,400. Some places reported even bigger drops, with BTC falling as low as $8,000 on Bitstamp.

With most of the market believing BTC was in the middle of a bull run, the drastic decline was largely unexpected. Josh Rager, a prominent crypto analyst, noted that the sharp spike could be a result of a fakeout.

Significant price corrections normal in bull runs, analyst says

While Bitcoin’s drop caused quite a stir in the market, many were convinced this was nothing more than a “bearish outside day,” and that the coin’s upward rally will continue throughout June.

An interesting observation was made by Crypto Quantamental, a popular Twitter account led by an experienced Wall Street portfolio manager. The account tweeted that short-term drawdowns are “normal and to be expected” in a bull run.

The analyst also noted that Bitcoin’s volatility enables sharp drops in price even during major upward rallies, a trend that was first noticed during the bull market of 2017. The tweet was accompanied by a chart showing just how common these drops are.

The chart showed 20 different price drops Bitcoin experienced, ranging from as low as 6.5 to as high as 25.49 percent. What came as the biggest surprise, though, was the fact that each one of these 20 drops happened between Oct. 17 and Dec. 13.

Despite these drops, Bitcoin was up 370 percent during this period, the chart showed.

In the following tweet, it was also explained that only composite prices were used in the chart, making the number relatively smooth. When looking at data from BitMEX or some of the illiquid exchanges from the time, Bitcoin’s moves are even more extreme.

The post Major drawdowns normal in Bitcoin bull markets, analyst says appeared first on CryptoSlate.

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Litecoin, Binance Coin, Bitcoin SV, Stellar, Cardano: Price Analysis May 31

Most major cryptocurrencies have pulled back. Can they spring back up or will they spend some time in a range?

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

Michael Novogratz, founder and CEO of cryptocurrency merchant bank Galaxy Digital, believes that the adoption of the blockchain technology by mainstream technology companies and interest by Wall Street firms helped start the rally. He now expects Bitcoin to remain range bound between $7,000 and $10,000.

Bitcoin has seen a massive run in 2019. When the price is appreciating so much, it is unlikely that many people would spend their Bitcoin. Research by Chainalysis suggests that only 1.3% of economic transactions for Bitcoin came from merchants in this year.

Considering the high volatility, Susquehanna’s Bart Smith believes that Bitcoin investment is “certainly speculative.” However, we believe that with the right strategy, the risk in trading cryptocurrencies is no greater than trading in equities or any other traditional asset class. What do the charts project for major coins? Let’s find out.

BTC/USD

Bitcoin (BTC) spiked up above $9,000 on May 30 but quickly reversed direction and fell to a low of $8,034.31 within a few hours. Currently, the bulls are attempting to hold the price above $8,000. The trend remains bullish as both the moving averages are sloping up and the RSI is in the positive territory. But the negative divergence on the RSI warrants caution.

BTC/USD

If the BTC/USD pair rebounds from the current levels and rallies above $9,053.12, it can reach the next overhead resistance of $10,000. However, if the bears sink the pair below the 20-day EMA, it can slide to the next support at $7,413.46. The digital currency will lose momentum if this support also breaks.

After the quick fill and stop loss hit on our trade recommendation, we will play it safe and avoid suggesting short-term positions. We will wait for a reliable buy setup to form before proposing a trade.

ETH/USD

Ethereum (ETH) spiked on May 30 and reached the overhead resistance zone of $300–$322. As expected, it quickly turned around and plunged to the 20-day EMA. The bulls are currently attempting to hold the price above the 20-day EMA. If successful, another rise to the overhead resistance zone is probable.

ETH/USD

Though both the moving averages are sloping up and the RSI is in the positive zone, the negative divergence on the RSI is giving a warning signal.

A breakdown of the 20-day EMA can sink the ETH/USD pair to $225.39. If this support also breaks down, the fall can extend to the 50-day SMA. We do not spot a bullish pattern at current levels.

XRP/USD

Ripple (XRP) attempted to scale above the overhead resistance zone of $0.45–$0.47919 on May 30 but failed. This resulted in a quick drop to close to the 20-day EMA. Currently, the bulls are attempting to keep the digital currency above the 20-day EMA, which is trending up. If successful, we might see another attempt to push the price above the overhead resistance zone and towards the target objective of $0.60.

XRP/USD

On the other hand, if the XRP/USD pair plummets below the 20-day EMA, it can dip to the $0.37835–$0.35660 support zone. A breakdown of this zone is likely to signal an end of the recovery. Therefore, traders can keep the stop loss on the long positions at $0.35.

BCH/USD

Bitcoin Cash (BCH) is in an uptrend. It has been trading above the 20-day EMA and below the resistance line of the ascending channel for the past few days. A breakout of the channel is likely to propel it to $638.99.

BCH/USD

The RSI has formed a large negative divergence, which is a bearish sign. If the BCH/USD pair breaks down below the 20-day EMA, it can slip to the 50-day SMA. Below this support, a dip to the support line of the channel is probable. We will wait for a reliable buy setup to form before recommending a trade in it.

EOS/USD

EOS triggered both our proposed buy level and the stop loss within a few hours. It thereafter plunged to the support of $6.8299 where buying emerged. Currently, the bulls have again pushed the price above the channel. They will now try to scale the overhead resistance at $8.4790. Above this level, a rally to $9 and above it to $9.60 is possible..

EOS/USD

Both the moving averages are sloping up and the RSI is in positive territory. This shows that the bulls are in command. Our bullish view will be invalidated if the EOS/USD pair reverses direction from close to $8.4790 and breaks down of $6.8299.

LTC/USD

The spike in Litecoin (LTC) stalled at $120.1518. Hopefully, traders would have closed 50% of the long positions around these levels, as suggested in the previous analysis. The trend remains up as both the moving averages are sloping higher and the RSI is in the positive territory. We are keeping a close watch on the negative divergence on the RSI.

LTC/USD

A failure to defend the 20-day EMA will start a deeper correction towards $91. If this support breaks, the LTC/USD pair will turn negative in the short term. Therefore, traders can keep the stops on the remaining long position at $90.

If the pair rebounds from the current levels, it will move up to the $121.9018–$127.6180 resistance zone. A breakout of this zone will increase the probability of a rally to its target objective of $158.91.

BNB/USD

Binance Coin (BNB) again turned down from the resistance line on May 30. This is the fifth instance that the bulls have failed to break out of this barrier. Currently, the cryptocurrency is attempting to stay above the 20-day EMA. If the price rebounds from the 20-day EMA, a rally to the resistance line is probable. If the momentum carries the digital currency above the resistance line, the up move can reach $40 and above it $46.1645899.

BNB/USD

Another possibility is that the BNB/USD pair enters into a range before launching the next up move. As the cryptocurrency is in a strong uptrend, we will suggest a long position once we spot a reliable buy setup.

However, if the bears sink the pair below the 20-day EMA, it can slide to the 50-day SMA. This is a critical support to watch out for because if this breaks down, the bears will have the upper hand.

BSV/USD

Bitcoin SV (BSV) has reached eighth place in terms of market capitalization after skyrocketing higher on May 29. That was followed by a hugely volatile day on May 30, when it reached close to the lifetime highs and then flash crashed to a low of $44.765, all within a few minutes. Thereafter, the price recovered and by the end of the day, the loss was limited to 11.42%.

BSV/USD

Currently, the BSV/USD pair is finding support close to the 50% retracement level of the recent rally from $85.338 to $254. If the support at $169.669 holds, the bulls might attempt to break out of the lifetime highs of $254.130 once again. Above this level, the next target to watch on the upside is $307.789 and above it $340.248.

Conversely, a breakdown of $169.669 can plunge the pair to $149.767. This is an important support, below which the digital currency can dip to $121.432. A vertical rally is unsustainable, hence, a few days of consolidation cannot be ruled out. The cryptocurrency is very volatile and the risk is very high, hence, we shall not suggest a trade in it.

XLM/USD

Stellar (XLM) rallied to an intraday high of $0.15002523 on May 30 but quickly gave back its gains and dipped below the critical level of $0.14861760. It needs to close (UTC time frame) above $0.14861760 to complete an inverse head and shoulders pattern that has a target objective of $0.22466773.

XLM/USD

On the downside, the bulls are attempting to defend the 20-day EMA. Both the moving averages are flattening out and the RSI is just above the midpoint, which points to a consolidation in the short term. If the XLM/USD pair dips below $0.11507853, it can drop to $0.08641170. Traders can wait for a close (UTC time frame) above $0.14861760 to initiate the trade as suggested in our earlier analysis.

ADA/USD

Cardano (ADA) broke above the overhead resistance of $0.094256 on May 30 but quickly gave up its gains and dipped back to the 20-day EMA. As the price did not close (UTC time frame) above the overhead resistance, it did not trigger our buy suggested in an earlier analysis.

ADA/USD

The bulls are trying to keep the ADA/USD pair above the moving averages. If successful, we might see another attempt to break out and close (UTC time frame) above $0.094256. This will complete a rounding bottom that has a target objective of $0.22466773. Traders can enter on a close (UTC time frame) above $0.10 with a stop loss of $0.0730. We do not like the bearish divergence that has formed on the RSI. If the pair slips below $0.0731 it can fall to the next support at $0.057898.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

Bitcoin Price Recovers 5.50% Following $1,100 Dip – Still Bullish

It took bitcoin just five hours to drop from its year-to-date high of $9,090 to $7,972. But, according to Crypto Michaël, the world’s leading cryptocurrency is still bullish.

The prominent cryptocurrency analyst said on Friday that bitcoin’s 13 percent drop could be a “normal retracement,” notably after a giant move that pushed the cryptocurrency’s rate up by almost $5,000 in just two months. Michaël further noted that traders bought bitcoins immediately after its latest dip. As a result, the cryptocurrency recovered by up to 5.50 percent, which hinted that the cryptocurrency market is still biased towards bulls.

“We all know what happened after the parabolic ended in December ‘17 on bitcoin,” stated Michaël. “BTC just has to find a floor normally, calm down and then altcoins can start running.”

The statement followed a string of bearish predictions made after bitcoin’s $1,100 dip on Thursday. Famous cryptocurrency analyst, the Crypto Dog, switched his interim bias from bullish to flat, stating that he found bitcoin’s latest buyback action uncompelling.

“For the first time during this rally, I feel like that may have been the top,” said the Crypto Dog. “I don’t have any strong confidence either way – so I’m out, sitting flat.”

Mainstream publications also fueled bearish sentiments, with Bloomberg publishing an exclusive discussing how nobody uses bitcoin. The headline appeared today — just 12 hours after the bitcoin price dropped massively. News items from other publications also read bitcoin’s downside correction as “fakeout dump,” or “price crash,” which might have stirred selling action in the market.

Where’s the Pullback Level?

Josh Rager, a cryptocurrency analyst who earlier predicted a 30 percent pullback for bitcoin, reiterated his bullish stance once again while defending the ongoing price downtrend.

bitcoin

Bitcoin Pullbacks in Recent History | Source: Josh Rager

“As you look at the historical cycles on the Bitcoin chart, you will notice that each bull market cycle exceeds the length of the previous uptrend,” Rager said. “Don’t worry about pullbacks; Bitcoin is likely less than 1/4 into the current uptrend to the next peak high.”

In his earlier analysis, Rager said an interim pullback was lurking anywhere between $9,400 and $9,700 that could push bitcoin 30 percent lower. The analyst based his prediction on the outcome of a symmetrical triangle formation, a technical indicator that projected a $1,500 price increase for bitcoin, as NewsBTC covered in this report.

Meanwhile, Coinbase’s small-timeframe chart showed bitcoin trending comfortably inside a Rising Channel, with its latest drop appearing to have been reversed upon testing the lower trendline.

bitcoin

Bitcoin Trending Inside Ascending Channel | Image Credits: Coinbase

Traders visibly have a long opportunity as the bitcoin price hints a run at channel’s upper trendline. Coupling that with the general market sentiment, which is bullish, bitcoin has a high probability of breaking above the channel resistance, and meanwhile retest mid-$9,500 for a pullback. The Relative Strength Indicator, meanwhile, is also hinting a buying opportunity in the bitcoin market, which could mean that the ongoing rally is far from over.

The post Bitcoin Price Recovers 5.50% Following $1,100 Dip – Still Bullish appeared first on NewsBTC.

Binance Coin (BNB) Slides 6.1%, Margin Trading Could Kickstart Demand

  • Binance Coin (BNB) falls 6.1 percent
  • If the rumor is true, Binance is close to activating Margin Trading

After six months of stellar performance, Binance coin (BNB) is correcting. Even so, if Binance enables margin trading, the demand for BNB will increase, buoying bulls aiming at $43.

Binance Price Analysis

Fundamentals

They may be centralized and prone to hacks, but exchanges play a crucial role in the crypto ecosystem. Not only do create a market place for even the most illiquid digital assets, but these ramps bridge fiat and cryptocurrencies. However, this space is heating up. There is ingress of Wall Street behemoths. Leading the line is Fidelity Investments whose express ambition is to build a digital asset vault for high net worth investors as well as institutions.

Meanwhile, exchanges are stepping up. Coinbase is diverging from their conservative stance, offering more support for coins with the latest beneficiary being EOS. Although the timing was wrong as investors didn’t reap benefits from the “Coinbase Effect,” others as Binance are keen and “listening to customer feedback.”

It is yet to be confirmed, but rumor has it that they plan to roll-out margin trading. Undoubtedly, these features will be introduced to cement its position as the world’s leading exchange by adjusted volumes. TechCrunch is reporting that Binance has already launched the feature to a select group of traders.

Candlestick Arrangements

Binance Coin BNB

Binance Coin (BNB) is in an uptrend. Shoring prices are fundamental factors which are overwhelmingly bullish. Up more than five folds after bottoming up in mid-Dec 2018, BNB is trading within a bullish breakout pattern. However, there is an over-extension.

From the chart, not only do we have a three-bar bear reversal pattern, but prices are consolidating inside May 26th high-volume bear bar. It is for this reason why the bar will determine the trajectory of the asset in the coming few days.

Furthermore, note that bars are printing away from the upper Bollinger Bands (BB). Because of this, what we have are lower lows. Nonetheless, otherwise, unless there is a breach of May 26th low at $30, buyers are in control with targets at $43 as laid out in previous BNB/USD price analysis.

Technical Indicator

From the above, May 26th anchors this trade plan. Behind the bar are high trading volumes-4 million. With support at $30, any bear bar closing below that mark signaling a correction ought to be accompanied by high participation exceeding 4 million.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

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Bitcoin (BTC) Correcting to $5,600 On the Table, Buyers Beware

  • BTC down 6.3 percent
  • Law enforcement could be behind Bitcoin Blender’s closure

In a week, Bitcoin Blender is the second BTC mixing service to close shop. It comes at a time when bulls are losing traction, casting doubt on the overall strength of the underlying momentum.

Bitcoin Price Analysis

Fundamentals

In a day that saw crypto assets, including Bitcoin (BTC), register losses, investors are unfazed. Their optimism stems from a firm conviction that fundamental factors will end up supporting prices. In turn, the foundation will be the springboard from where prices will rally to $10,000 and beyond.

According to Tom Lee, real FOMO is after prices inch past $10,000. It is a psychological mark, a base from where bulls will swing from even clearing the $20,000 mark. But even then, there is active liquidation as visible from Bitcoin trading charts.

After several attempts, it appears as if BTC at $9,000 is “expensive” with yesterday’s dump a testament. Unless there is strong momentum and bulls stem liquidation, absorbing sell shocks preventing drawdown below $7,500, bulls will be in control.

While at it, Bitcoin Blender, a BTC mixing service, is willingly shutting down. For those unaware, Bitcoin Blender is “a hidden service that mixes your Bitcoins to remove the link between you and your transactions. It adds an essential layer of anonymity to your online activity to protect against ‘Blockchain Analysis.’”

A report from Bleeping Computer reveals that users were given short notice to withdraw their funds. It is also the second mixer to fold in a week following BestMixer shutdown.

Candlestick Arrangement

Bitcoin BTC

At the time of writing, Bitcoin (BTC) is down 6.3 percent but up 6.8 percent from last week’s close. All the same, the uptrend is solid unless otherwise there is further sell-off by today’s close.

As it is, support is at $7,500, and because of May 30th losses slowing down the match to $10,000, BTC is back to the $1,000 range with limits at $7,500 and $8,500. Accordingly, and drawing our conclusion from the chart, any dip below $7,500 could see prices slide to $6,600 and even $5,600. That is if the breakout bar has above-average trading volumes.

Conversely, any spike, erasing gains of May 30th and invalidating the three-bar bear reversal pattern ought to be with high trading volumes cementing bulls.

Technical Indicators

With a three-bar bear reversal bar, May 30th’s bear bar remains a reference bar. It has high trading volumes of 31k exceeding May 26th of 19k affirming bears.

As such, if today ends up bearish or with a long upper wick, odds are prices could slide to $7,500 or lower as aforementioned.

Chart courtesy of Trading View. Image Courtesy of Shutterstock

The post Bitcoin (BTC) Correcting to $5,600 On the Table, Buyers Beware appeared first on NewsBTC.

Nevada Bitcoin broker on LocalBitcoins sentenced to 2 years in prison

Morgan Rockcoons, a Nevadan man accused of wire fraud and operating an unlicensed Bitcoin exchange for using LocalBitcoins, was sentenced to nearly two years in prison. According to a government press release, Rockcoons will also have to forfeit $80,600 in illicit profits.

Operating unlicensed Bitcoin exchange results in a 2-year prison sentence

Morgan Rockcoons, who also goes by Morgan Rockwell, was sentenced to 21 months in prison by U.S. District Judge Anthony J. Battaglia for wire fraud and operating an unlicensed money transmitting business.

Apart from serving almost two years in prison, Rockcoons was also ordered to forfeit $80,600 in illicit profits. The Las Vegas resident has been in police custody since his arrest on October 29, 2018, and pleaded guilty on Mar. 7.

According to a press release from the Department of Justice, Rockcoons admitted he operated a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury.  He also admitted to defrauding individuals by selling land that he didn’t own.

A report from Forbes showed that Rocknoons owned just under 5 acres, but had sold 18 acres of land in Nevada’s Elko County. The land was supposed to be used to build Bitcointopia, a “Bitcoin megacity,” where the world’s largest cryptocurrency would be the “legal tender.”

This wasn’t the first time Rockcoons was indicted—the US Attorney’s Office of the Southern District of California revealed that Rockcoons was indicted on Nov. 8, 2017, for operating an unlicensed money transmitting business. While awaiting trial following his Feb. 9 arrest, Rockcoons began promoting Bitcointopia, which led to prosecutors combining these two cases in a superseding indictment.

The Department of Justice follows through on new FinCEN guidelines

Rockcoons’ sentencing marks an important step for FinCEN and the enforcement of its newly established rules. Earlier in May, FinCEN, a bureau of the U.S. Department of Treasury, released new guidance on types of cryptocurrency-related businesses which are subject to regulations under the Bank Secrecy Act (BSA).

According to the new guidelines, those who trade and sell Bitcoin and other cryptocurrencies over platforms such as LocalBitcoins are subject to the BSA. The guidelines noted that this is “regardless of the regularity or formality of such transactions or the location from which the person is operating.”

Rockcoons had been advertising his Bitcoin exchange services on LocalBitcoins.com for years. In 2015, the Homeland Security Investigations identified him as the most prolific seller based in San Diego. By April 2016, the defendant’s profile showed that he had engaged in more than 500 transactions—a number that doubled in the following year.

Rockcoons’ arrest is proof that U.S. regulators are following through on FinCEN’s guidelines and cementing their zero-tolerance policy towards unregulated trading.

The post Nevada Bitcoin broker on LocalBitcoins sentenced to 2 years in prison appeared first on CryptoSlate.

Big Four Auditing Firm EY Open Sources its Ethereum Private Transaction Solution

Big four auditing firm Ernst & Young open sourced the code of its Nightfall Ethereum private transactions solution.

Big four auditing firm Ernst & Young (EY) open sourced the code of its Nightfall Ethereum (ETH) private transactions solution and released it on GitHub on May 31.

The readme information file featured on the GitHub repository explains the function of the software in question:

“Nightfall integrates a set of smart contracts and microservices, and the ZoKrates zk-snark toolkit, to enable standard ERC-20 and ERC-721 tokens to be transacted on the Ethereum blockchain with complete privacy.”

In the same file, EY claims that it decided to release its research in the hope of speeding up the adoption of public blockchains. Still, the release “is not intended to be a production-ready application and we do not recommend that you use it as such.” Instead, the paper warns:

“It is an experimental solution and still being actively developed.”

In April, EY also released two new blockchain developments, a new version of its Blockchain Analyzer and a zero knowledge proof protocol.

As Cointelegraph explained in the recently released dedicated analysis, the recent government crackdown on cryptocurrency mixers, which help add privacy through anonymity to crypto transactions, has caused outrage in the crypto community. Internet security guru and cryptocurrency bull John McAfee said:

“Bitcoin mixers are now being targeted. Anonymity itself is slowly being considered a crime. The word ‘Privacy’ will soon mean ‘Criminal Intent.’”

Ethereum co-founder Vitalik Buterin has, instead, proposed creating an on-chain smart contract-based ether mixer, according to his note on collaborative development platform HackMD on May 24.

Bitwise Calls Out to SEC: 95% of Bitcoin Trade Volume Is Fake, Real Market Is Organized

The size of the legitimate BTC trade volume is just as large as the bitcoin futures market, Bitwise tells the SEC.

At the 1997 edition of the annual Worldwide Developers Conference — an event put together by iPhone-maker Apple Inc. to communicate directly with its community of developers and users — a participant asked founder and then-CEO Steve Jobs the following question:

"What do we do about the press? Wall Street Journal reporters get up in the morning, sell Apple short and then go write stories about us. And, it’s clear that it’s perception versus reality. They don’t know s--- about operating systems. They don’t know anything about tools. They don’t know what’s going on in the future. They don’t know that we’re building icebergs, and building from the bottom up."

The bitcoin (BTC) market is in a somewhat similar position. The mainstream media has published quite a handful of negative headlines. A considerable population of traditional finance folks, who can't wrap their heads around the need and use of bitcoin, are happy to point at inconsistencies in the market to back their "I told you so" declarations about how they believe bitcoin is a farce.

Jobs replied by comparing the way the press treats new developments to how people tend to treat a child whom they saw as an infant, disregarding the fact that the child might have matured considerably since then.

In the case of bitcoin, the lag time is not only true for the press, but also for regulators and traditional finance professionals. Additionally, it appears that the crypto community is accepting and following the notion — perhaps unintentionally — by educating the public about how bitcoin and the crypto space at large are evolving. There have been scads of reports with the aim of doing just that. The latest is from Bitwise Asset Management, an American crypto asset fund manager.

Bitwise has recently prepared a 104-page white paper. In it, the fund manager argued that the bitcoin market still has inconsistencies regarding trading data, but the legitimate part of the market has a "remarkable efficiency."

The report builds on a presentation Bitwise had made to the United States Security Exchange Commission (SEC) in March of 2018 to back up its cryptocurrency exchange-traded fund (ETF) application filing.

Here's are the most important points, with some perspective, from the report.

Approximately 95% of reported BTC trading volume is fake

As part of the research, Bitwise analyzed trading data of some 83 exchanges. Researchers said they looked at the trade size histograms, volume spike alignment and spread patterns of these exchanges. They concluded that there are only 10 exchanges with 100% real trading volumes, and these 10 exchanges collectively account for 5% of the reported trading volume.

Bitwise classifies the 10 exchanges as real volume exchanges or reference exchanges. The 10 exchanges include Binance, Bitfinex, bitFlyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, itBit, Kraken and Poloniex. Among the 73 exchanges that Bitwise condemned as displaying fake volumes are OKEx, HitBTC and Huobi.

As expected, there were questions raised about the reliability of the Bitwise study considering that these popular exchanges aren't regarded as real volume exchanges. Bitwise pointed out that the trading data of the three exchanges doesn't follow that of Bitwise's real volume exchanges. It also referenced existing research that found similar patterns with the three exchanges to support its findings.

Fake Transaction Volumes Estimated by Different Researchers

Using the data above, the average daily volume of these three exchanges would have increased the volume of legitimate trading in the Bitwise study from $554 million to $622 million. But the researchers said that it wouldn't have materially changed their conclusion.

HitBTC published a blog post in response to Bitwise's report in which it says it that it has a different customer profile compared to other exchanges, particularly those that the report branded as legitimate. That's because the exchange supports algorithmic trading, whose pattern is likely to noticeably differ from human trading. HitBTC wrote:

"Different exchanges have different customer profile. HitBTC is among the first crypto exchanges to offer low-latency institutional grade (FIX) trading API. This is why the client profile of HitBTC differs from that of unmentioned but implied ‘reference exchanges’."

Low-latency trading simply means strategies that respond to market events in milliseconds, and algorithmic trading is one of those strategies. 

Bitwise did recognize the use of algorithms in crypto trading by pointing out that the average price deviation of 0.12% across its real volume exchanges is within the arbitrage band, adding that the trend "suggests that institutional-quality arbitrageurs and algorithmic programs are in place that monitor the system and identify and capitalize on any pricing discrepancies to constantly keep the prices closely together."

OKEx, on the other hand, admitted that some traders engage in wash trading on its platform to quickly build their trading volume so they could enjoy a lower fee structure.

The remaining 5% makes up for a highly regulated and efficient market

With six of the 10 legitimate volume exchanges in the report based in the U.S., Bitwise argues that the crypto space is more regulated than presumed. Of the 10 exchanges, only Binance isn’t a money services business (MSB), while only the four non-U.S.-based exchanges don't possess a BitLicense, which is issued by the New York State Department of Financial Services. This level of oversight only breads transparency.

The crypto market is maturing thanks to developments since December 2017

The year 2017, marked the time when bitcoin attracted the most attention from the mainstream world, thanks to the wild bull run that saw the crypto go from just under $1,000 per BTC to nearly $20,000 by the end of the year. But, the following 12 months saw the price drop to as low as nearly $3,000 during a period that is widely regarded as the crypto winter.

Bitwise research suggests that the bitcoin market has significantly matured over the period. First of all, pointing to a downward trend in the average deviation of bitcoin’s price on its 10 reference exchanges from the consolidated price in the broader market, research claims that the quality of the bitcoin spot market has improved.

The Aggregate Average Deviation of Bitcoin's Price from Consolidated Price

According to the chart, the price of bitcoin on the 10 exchanges deviated by as much as 0.25% to 0.4% between January and March 2018. The trend, however, levels out as of April 2018. Bitwise suggests that this trend shows the growing competitiveness of bitcoin arbitraging.

Also, the introduction of bitcoin futures in December 2017 has attracted bigger traditional market players to the crypto space and has so far made the market more organized, according to Bitwise. The cryptocurrency space has seen the entrance of one of the world’s largest asset managers, Fidelity Investments, which has built a custodianship solution.

Algorithmic market makers including Jane Street, which traded more than $8 trillion across all financial products in 2018, also started offering bitcoin trading in 2018. Other large algorithmic market makers that have entered the space include Susquehanna International Group, FlowTraders and Jump Trading LCC.

These developments, according to Bitwise, have allowed the bitcoin market to sizeably grow in efficiency. The paper points at trends on how deviations in price are being rapidly wiped off the market as proof that institutional-grade tools are being deployed.

Nail-biting moments in anticipation of Bitwise ETF ruling

Bitwise is currently awaiting a decision to be made on its ETF filing with the SEC. With this report, the crypto asset manager aims to alleviate the SEC’s fears and show the commission that the market has matured to a level where it can sustain an ETF product.

When the SEC rejected an ETF application by the Winklevoss brothers last year, it expressed concerns that regulated derivatives markets such as the bitcoin futures market are small relative to the spot market. In turn, this would make it difficult to see through the unregulated, and possibly fraudulent, nature of the bitcoin market.

By showing that the spot market is significantly smaller than often reported, Bitwise pointed out that the size of the bitcoin futures market is almost as large as the bitcoin spot market. Through this, the fund manager hopes to persuade the SEC to finally ease up on its concerns regarding cryptocurrencies.

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid

The energy used to mine bitcoin has long caused debate over whether it’s a wasteful process. As the arguments have rumbled on, some people have been focused on mining coins with renewable energy. On May 29, Christian Ander, the founder of Stockholm’s Btcx exchange, explained how instead of selling surplus solar energy, he’s been using it to mine bitcoin and making 10X the money he would selling the electricity to the grid.

Also read: Hackers Have Looted More Bitcoin Than Satoshi’s Entire Stash

Choosing to Mine Bitcoin Over Selling Power to the Grid

Mining cryptocurrencies like bitcoin cash (BCH) and bitcoin core (BTC) utilizes electricity in order to power the ASIC machines that profit from mining coins. Over the last few years, as digital assets have grown more popular and the SHA-256 hashrate (the BTC and BCH consensus algorithm) has climbed to all-time highs, people have complained that the amount of energy used to mine is excessive. However, while some people spend a lot of time debating whether or not mining is using too much energy, there are lots of miners using a variety of renewable energy methods like wind power, hydropower, and solar. A great example of this can be seen in Christian Ander’s explanation of how he was making more money using excess solar to mine bitcoin than he was selling the energy to the power station.

“Time to start your miners tonight almost free energy in Stockholm tomorrow — instead of selling my surplus solar energy, I mine bitcoin,” Ander remarked. “1 kWh = 1,16 Kr($0.12) — That is more than 10 times the money if I would sell it to the grid. Using the most common miners on the market ($100 each which convert 1,3 kW -> BTC).”

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid

Right now, certain miners in China and Canada are using hydropower to help offset electric costs and other mining operators use low-cost geothermal power in Iceland as well. But Ander isn’t the only person who has furthered the idea of minting digital assets with solar power. Lots of people have been promoting the concept while the SHA-256 hashrate climbs exponentially, pushing operators toward greener energy solutions. For instance, on July 1, 2017, a man from San Diego detailed how he’s been mining in the desert with twenty-five S9 miners inside his greenhouses. According to the San Diego desert miner, he ran everything 100% off-grid with solar and battery power and said he was “profitable.” Solar farming, in general, can be profitable for those simply selling to the grid but it depends on the land’s rental costs, geographic location, and the size of the solar installation. Recent estimates disclose that on average a typical solar farm can produce between $21,250 and $42,500 per acre every year.

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid
Check out this solar-powered bitcoin mining setup on Youtube.

The Grid Backup Plan Provides Minimal Risk

Tam Hunt, the founder of a renewable energy project called Community Renewable Solutions, has outlined how solar energy could boost bitcoin mining while at the same time reduce energy consumption. Hunt’s study reveals that instead of selling electricity to the grid, mining cryptocurrency could be far more lucrative. The research claims that the “solar-plus-Bitcoin operation pays for itself in about two years” and after the return-on-investment (RoI) is completed “there is minimal risk remaining.” This is because if the price of bitcoin suddenly crashed below profitable levels, the operation has a backup plan because they can just sell the power to the grid. Hunt describes how off-grid mining operations can be done in areas with no power lines and where acreage is extremely affordable.

“Under this scenario, the miners are connected to the internet via a satellite connection, but otherwise the entire project is off-grid — All solar power is used for mining,” Hunt notes in his study. “This kind of facility could also include onsite storage to both smooth production and to extend mining operations beyond daylight hours.”

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid
An off-grid solar farm in the desert.

No Major Solar Mining Operations in 2019, but One Firm Claims to be Building a 20MW Sun-Powered Facility in Australia

Over the last few years, there’s been a lot of FUD surrounding bitcoin mining consuming too much energy. China’s National Development and Reform Commission (NDRC) detailed on April 9 that the department believes bitcoin mining “waste resources and pollutes the environment.” But there’s a lot of data and reports that show otherwise and that mining rigs can also produce their own heat power as well. A recent Coinshares study indicates that 78% of bitcoin miners utilize renewable energy sources. In March 2018, the co-founder of the Nakamoto X exchange, Kamil Brejcha, showed the world how he used excess mining heat to grow tomatoes. Later that year people read about a residential block in the freezing Russian province of Siberia with local grandmothers mining coins for profit and heat dissipation. Known as the Siberian babushkas, one woman explained how they used the hot air from miners to dry spices. “All the hot air is perfect for drying pumpkin, tea, and herbs — It dries very quickly — In just one day,” one of the babushkas explained.

Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid
The SHA-256 hashrate (the BTC and BCH consensus algorithm) has climbed to all-time highs over the last two years. There is now 44 exahash per second between the BTC (42.27 EH/s) and BCH (1.79 EH/s) networks.

There are all kinds of methods people use to harness renewable energy to mine bitcoins. Oddly enough, solar energy is not being used by major mining operations as the dominant renewables powering facilities have been hydro and geothermal. Although last summer, reports indicated that Hadouken Pty Ltd was approved to build a 20-megawatt solar farm that will be specifically used to mine digital currency. The mining operation is said to be situated in Collie Australia near a power company called Muja that produces 854 megawatts of electricity. Similarly, if there were a sudden cryptocurrency price downturn and mining wasn’t that profitable, Hadouken could simply sell the power to the grid. If individuals like Christian Ander have noticed that using solar-generated electricity to mine bitcoin makes 10X what could be made selling the power to the grid, then many other people are likely aware of the same idea.

What do you think about solar powered bitcoin mining? Do you think solar energy will help power the next phase of crypto mining? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Youtube, Twitter, and Pixabay.


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The post Bitcoin Mining With Solar: Less Risky and More Profitable Than Selling to the Grid appeared first on Bitcoin News.

Bitcoin and Top Altcoins See Losses as US Stock Market Sees Slight Uptrend

Most of the top 20 cryptocurrencies are reporting moderate losses on the day by press time.

Friday, May 31 — most of the top 20 cryptocurrencies are reporting moderate losses on the day by press time, as bitcoin (BTC) still holds over the $8,300 mark, with minor gains on the day.

Market visualization courtesy of Coin360

Market visualization courtesy of Coin360

Bitcoin is nearly 5% down on the day, trading at $8,320 at press time, according to CoinMarketCap. Looking at its weekly chart, the coin is up over 3.7%.

Bitcoin 7-day price chart. Source: CoinMarketCap

Bitcoin 7-day price chart. Source: CoinMarketCap

As Cointelegraph reported earlier today, Michael Novogratz, founder and CEO of cryptocurrency merchant bank Galaxy Digital, has said that he expects bitcoin to consolidate in the $7,000-$10,000 range.

Ether (ETH) is holding onto its position as the largest altcoin by market cap, which currently stands at $27.4 billion. The second-largest altcoin, XRP, has a market cap of $17.8 billion at press time.

CoinMarketCap data shows that ETH has seen virtually no movement over the last 24 hours. At press time, ETH is trading around $258. On the week, the coin has also seen its value increase over 2.7%.

Ether 7-day price chart. Source: CoinMarketCap

Ether 7-day price chart. Source: CoinMarketCap

On May 24, New York-based blockchain firm ConsenSys released a new Blockchain and DApp Developer Job Kit to help aspiring Ethereum blockchain developers enter the market.

XRP is over 8% down over the last 24 hours, and is currently trading at around $0.426. On the week, the coin is up over 8%.

XRP 7-day price chart. Source: CoinMarketCap

XRP 7-day price chart. Source: CoinMarketCap

Among the top 20 cryptocurrencies, the one reporting the most notable price action is bitcoin SV (BSV), which is down about 14% on the day.

At press time, the total market capitalization of all cryptocurrencies is $263.4 billion, nearly 5% higher than the value it reported a week ago.

Total market capitalization 7-day chart. Source: CoinMarketCap

Total market capitalization 7-day chart. Source: CoinMarketCap

In traditional markets, the United States stock market is seeing discrete gains so far today, with the S&P 500 up 0.21% and the Nasdaq up 0.27% at press time. The CBOE Volatility Index (VIX), on the other hand, has gained a solid 11.33% on the day at press time.

Major oil futures and indexes are mostly down today, with WTI Crude down 2.28%, Brent Crude down 2.34% and Mars US down 4.56% at press time. The OPEC Basket is up 2.11% and the Canadian Crude Index has seen its value decrease by 3.15% in the 24 hours by press time, according to OilPrices.

Bitcoin Blender Cryptocurrency Mixing Service Shuts Itself Down

Cryptocurrency mixing service Bitcoin Blender has willingly shut down after issuing a short notice asking its users to withdraw their funds.

Cryptocurrency mixing service Bitcoin Blender has reportedly willingly shut down after issuing a short notice asking its users to withdraw their funds, tech news outlet BleepingComputer reports on May 30.

Per the report, the message describing the service that appeared on the homepage of the website present both on the Tor network (often referred to as the darknet, dark web or deep web) and on clearnet before it shut down was the following:

“We are a hidden service that mixes your bitcoins to remove the link between you and your transactions. This adds an essential layer of anonymity to your online activity to protect against ‘Blockchain Analysis.’”

The shutdown was reportedly announced both on the homepage of the dark web website and on the BitcoinTalk Forums on Monday. Some users reportedly missed the short time window and were not able to withdraw their funds, as one user said on the aforementioned forum:

“I recently came to know about the shutting down process of bitblender, I had much coins saved onto it. I unfortunately missed the withdrawal warning as I was away for past few weeks. I am trying to access http://bitblendervrfkzr.onion/ for last 2~3 hours but I can not succeed.”

At press time, while the Tor mirror is currently inaccessible, the clearnet website is still online.

As Cointelegraph recently reported, Dutch, Luxembourg authorities and Europol shut down one of the three largest cryptocurrency tumblers, BestMixer, after an investigation found a number of coins from the mixer were used in money laundering.

Ethereum (ETH) co-founder Vitalik Buterin proposed shortly after the shutdown the possibility of creating an on-chain smart contract-based ether mixer.

Blockchain.info Confirms In-Wallet Paxos Stablecoin Trading Rollout for June 3

Next week’s mobile wallet trading will mark the return of a fifth cryptocurrency to the company’s wallet.

Cryptocurrency data aggregator and wallet provider Blockchain.info will launch trading of its fifth coin, paxos standard token (PAX), on Monday, the company told industry news outlet CoinDesk on May 31.

Paxos is a United States dollar-pegged stablecoin, and its addition will be a first for Blockchain.info in the stablecoin space.

Blockchain currently supports four cryptocurrencies: bitcoin (BTC), ethereum (ETH), bitcoin cash (BCH) and stellar (XLM), having removed its limited bitcoin SV (BSV) options earlier this month.

The company had hinted about the move for some time, surveying users about their relationship with stablecoins and releasing publicity material. At the start of May, executives confirmed a formal partnership with Paxos.

Last week, a dedicated blog post confirmed PAX was live for Blockchain.info’s 37 million wallets.

“Launched in September 2018, Paxos Standard tokens are fully backed by physical U.S. dollars stored in FDIC-insured banks and regulated by the New York State Department of Financial Services,” the staff wrote in an apparent explanation of their choice of stablecoin asset. The post continued:

“This financial certainty eliminates price volatility and gives users around the world an entirely new way to send value, manage inflation, mitigate trading risk, and gain exposure to the US dollar.”

Speaking to CoinDesk, Xen Baynham-Herd, head of Blockchain.info’s wallet department and strategy, said that ultimately the company wanted to add fiat currency functionality to the wallet.

“Doing the stablecoin project here with PAX is a really big deal because it’s not just that we are adding a new asset, it’s adding a true dollar balance into the wallet,” he explained.

The comments mark a contrast in ideology between wallet providers, some of which conversely aim to remain free of fiat-based operations. Last autumn, Samourai even took the step of removing USD balances from its wallet altogether, arguing bitcoin users should learn to transact entirely in cryptocurrency.

James Altucher Amends Timeframe For $1 Million Bitcoin

bitcoin James Altucher

Former hedge-fund manager and author, James Altucher, confirmed his $1 million bitcoin prediction, but admitted the timeframe may have slipped.


Altucher explained the claim during an interview on Kitco news, a precious metals specialist.

$1 Million By 2020?

Self-help guru and LinkedIn influencer, Altucher, first made his prediction at the tail-end of 2017, when BTC was around $11k.

He told CNBC’s Squawk Alley,

I’ll say $1 million by 2020, as well, easily. There’s 15 million millionaires around the world. All their financial advisors are going to say, ‘Hey, buy a bitcoin. You need some exposure.

When questioned on this claim during the interview, Altucher was happy to go into more detail.

The valuation relies on Bitcoin replacing paper currency, although Altucher believes that Bitcoin’s superior qualities should see this happening either fully or partially in the long run.

There is an estimated $200 trillion dollars of existing paper currency, and only $200 billion dollars of cryptocurrency. Therefore, he explained:

that is 100,000 percent from here. So that could give bitcoin a price of $8 million dollars, so $1 million dollars is even a discount to where bitcoin could eventually go.

So When Does BTC Get To That $1 Million?

On that, Altucher wasn’t so sure, although he didn’t rule out his earlier prediction of 2020.

Will it be a million dollars in 2020? Maybe. Will it be 2021? 2022? Who knows.

However, he claimed that at some point a country’s currency will collapse, causing the population to move to Bitcoin. This kind of mass adoption, coupled with greater acceptance as payments, and eventual SEC approval, will be the catalyst.

Venezuela

We have already seen increasing adoption of Bitcoin as a hedge against economic uncertainty in places like Argentina, Iran, and Venezuela.

One person who is hoping Altucher’s original timeframe for the $1 million bitcoin doesn’t slip is John McAfee. After all, if bitcoin doesn’t hit that price by the end of 2020, he says he will wolf down his winkle on the telly.

Several other analysts have made predictions of Bitcoin going to $1 million. From IBM Exec, Jesse Lund, who simply said ‘sometime’, to Xapo CEO, Wences Casares, who two years ago predicted it would take 5-10 years.

Do you agree with Altucher’s bitcoin price prediction? 


Images via Shutterstock

The post James Altucher Amends Timeframe For $1 Million Bitcoin appeared first on Bitcoinist.com.

Tesla Plans to Build Cheaper Model 3 Cars in China

Due to the ongoing tension between the US and China, manufacturing of goods has come under a lot of pressure. While some companies start to crumble, others explore new opportunities. Tesla, for example, is looking to build cheaper Model 3 cars in China. An interesting decision given the current geopolitical climate, albeit a move that can be pretty promising for the company as a whole.

Cheaper Tesla Model 3s are Coming

For a company trying to slowly take over the global automotive industry, Tesla still has a lot of work ahead. Not just because its cars are not available for preorders in all countries yet, but also because of the ongoing geopolitical tension between the US and China. Even for such major companies, developments like these can have a major impact down the line. However, it seems Elon Musk’s company has potentially come up with a solution to bypass these problems.

More specifically, the company has announced it is looking to produce cheaper versions of the Tesla Model 3 in China shortly. This new factory is located in Shanghai, and will produce cars with a base price of $47,510. This is over 10% cheaper compared to importing the same model from the US, where it is already available at this time. All units produced in China are comparable to the Standard Plus version of the Model 3 available in the West.

It is not exactly surprising to learn Tesla eyes China as a crucial market. The company has allows deliveries of the Model 3 to China since March of 2019. By producing the units locally, import duties can be avoided. Given President Trump’s stance on how China needs to be taught a lesson of some sort, being able to bypass any additional trade restrictions is never a bad thing. Moreover, the company can speed up the delivery process, which will ultimately benefit its customers.

It is also worth noting Tesla is aggressively pursuing further expansion throughout the Aia-Pacific region. Model 3 cars are now available for preorder in Australia, Japan, Hong Kong, Macau, and New Zealand. In Europe, Ireland is now an eligible region as well, which is good news for residents of that country. It will be interesting to see how well the car does in those additional regions.

The bigger question is whether or not Tesla can effectively ramp up its production in a meaningful manner. Considering how Q1 of 2019 was not all that great for the company, something has to change. Expanding upon its global presence and cutting down on extra costs for customers in specific regions is an important first step in the right direction. This may very well be one of the “major changes” Elon Musk hinted at some time ago.

Last but not least, it would appear Tesla has no plans to build its longer-range versions of the Model 3 or other Tesla vehicles in China at this time. That would make a lot of sense, as the company has to gauge how well its main model does in China prior to potentially ramping up production for other units. For a company which is still struggling to operate on a profit, not taking any rash decisions is the only viable course of action.

Image(s): Shutterstock.com

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Russia: Raiffeisen Bank Introduces Blockchain Platform for Corporate Settlements

Raiffeisenbank, a Russian subsidiary of Austria’s Raiffeisen Bank International, developed a blockchain platform for settlements by holding firms.

Raiffeisenbank, a Russian subsidiary of Austria’s Raiffeisen Bank International (RBI), has developed a corporate blockchain platform, the bank announced in a press release on May 31.

Targeting holding firms, the new blockchain platform claims to automate settlements by corporate clients and enable a trusted network for sharing data between a group of companies, the press release notes. Specifically, the product reportedly automates the process of supply settlements between buyers and suppliers, as well as providing tools for financial management.

While the product was reportedly developed by Raiffeisenbank at the request of major local sleep products manufacturer Askona Life Group, the new blockchain platform is available for the bank’s other corporate clients.

Evgeniy Kirillov, investment manager at Askona Life Group, claimed that Raiffeisenbank’s blockchain product allowed the company to reduce labor costs by more than 40%, as well as to reduce human error risks to zero.

Previously, Raiffeisenbank had partnered with Russian government-owned oil giant Gazprom Neft to issue a bank guarantee on blockchain.

Raiffeisenbank’s Austrian parent company RBI had also recently announced a blockchain trade finance pilot based on blockchain consortium R3’s Corda enterprise blockchain platform Marco Polo. The platform counts major global banking institutions, including BNP Paribas, ING and Sumitomo Mitsui Banking Corporation, among those using its services.

AMA with Alexandra Tinsman

AMA with Alexandra Tinsman

AMA with Alexandra Tinsman

On May 30, 2019, NEM Foundation President Alexandra Tinsman conducted an AMA compiled of questions gathered from the NEM community. Please see the video here.

A transcription of the video is forthcoming and when available, this post will be updated.

List of questions answered in the AMA

  1. Due to a market fall, XEM prices fell sharply. Today the minimum values charged by the transactions are attractive to projects installed in Blockchain NEM. But it does not attract new investors nor is it attractive to consensus nodes, which are the essence of a blockchain. I believe that raising the minimum transaction value to 0.075 might be a way of increasing the value of the NEM. How does the board position itself on this?

  2. A specific date of Catapult?

  3. When XEM will have more fiat pairs on Binance and other exchanges?(USDC,PAX,TUSD). Are you working on it ? Do you have an ETA?

  4. What happened to all the country head?(SIC)

  5. For us Europeans we have very little access to NEM, do you plan to establish yourself more in Europe, to be available on Kraken for example?

  6. What’s the medium to long term vision, also, the short to medium term price prediction.
    What and who can supports these points?

  7. Nem is being loved by Japanese community, is there a plan for the nem to be included in the bitflyer list?

  8. What’s happening with the 300 companies that tested catapult?

  9. Last year Q1 NEM ordered 20.000 xpos devices from Pundi X. In November after ULTRA 2018 there was a lot of excitement about their speed and usecase for festivals etc… Alexandra announced this Q1 that Catapult will allow NEM cross chain payments with ETH and BTC. How do you see the future of XPOS devices using NEM?

  10. Poloniex has delisted 9 pairs until now because the unlisted currencies being thought of as unqualified as securities.Within these currencies – some like NXT have been PoS. Does Foundation think there is any possibility of xem being delisted from any tier 1 exchanges? Please explain why.

  11. NEM has a very unique market in Japan both online and offline. Many within both of these communities have kept active without support from Foundation. Also to note that many NEMbers have kept positive even throughout negative events like hacks, foundations financial issues and the crypto winter in general. That being said, many of us are upset by the connection between community and the previous NEM Japan. I believe that a decentralized approach – one that connects the core devs, foundation and ecosystem together is the way forward. After off of this, I’d like to ask how Foundation will or would like to proceed with operations in Japan.

  12. Are NEM, Mijin, and Comsa all being developed by Tech Bureau? If so, do Mijin and Comsa use the same source code?

  13. I understand that regions are now gone, however I’d like to know how many countries NEM has offices/teams in. On top of that, what is happening in these locations? I am asking since it is difficult to keep scrolling up through chats, blog or twitter and would like to know if there is somewhere I can route people that are newly interested in NEM.

  14. I have seen 3 council members leave so far. Can you please tell us their reasons of leaving?

  15. If I am not mistaken there were plans to put a CRO in place to become a profitable entity. What is the status on this and how far in the process is Foundation?

  16. What is community to you? (To Alex)

  17. Compared to bitcoin or Ethereum, nem has a very low developer count. Is there a plan in place to increase this count – other than online trainings?

  18. There is a bot selling 500xem very periodically – is this Foundation?

  19. I am currently using a version of the nem wallet from April 2019 – am I okay to keep using this? Will there be announcements on newer versions?

This article was originally published on: The NEM Blog on 

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SBI Ripple Asia to Trial Store Settlement Service for XRP-Powered Payments App MoneyTap

SBI Ripple Asia is launching a store settlement service affiliated with SBI Holdings and MoneyTap.

SBI Ripple Asia — a subsidiary of Japanese financial services giant SBI Holdings — is launching a store settlement service affiliated with SBI Holdings and Ripple’s jointly developed consumer-focused XRP-powered payments app MoneyTap. The news was reported by Cointelegraph Japan on May 30.

As previously reported, MoneyTap — which launched in the fall of last year — implements Ripple’s blockchain solution xCurrent to enable near-instant domestic bank-to-bank remittance services.

The new store settlement service reportedly intends to pave the way for the roll out of full-scale in-store payment services using MoneyTap by the end of the year.

Its first trial demonstration — which leverages QR code technology using smartphones — will be conducted by SBI at a restaurant in Roppongi 1-chome Izumi Garden Tower, Cointelegraph Japan reports. SBI will reportedly analyze user experiences in order to develop the service before its launch at scale.

As reported, MoneyTap’s launch was finalized after SBI Holdings successfully secured a license from Japanese regulators in September 2018 to handle electronic payments as an “Electronic Settlement Agency Service Provider” under legislation rolled out in March 2017.

MoneyTap aspires to eventually see a consortium of 61 Japanese banks — representative of more than 80% of all of Japan’s banking assets — participate in the service, and received investments from 13 Japanese banks this March.

In April, SBI Holdings’ CEO and representative director Yoshitaka Kitao was appointed as an executive of Ripple Labs Inc.

As a Cointelegraph feature piece has recently outlined, SBI Holdings’ launch of the SBI Virtual Currencies platform in July 2018 made Japan the first country to host a bank-owned cryptocurrency exchange.

The exchange’s financial report for the fiscal year ending March 31 2019 revealed it had achieved profitability within the first year of its launch.

SBI has also made a wide-ranging series of investments in businesses developing crypto infrastructure and services.

Liquidators of Hacked Cryptopia Exchange Release Report, Note $4.2M Owed to Creditors

Cryptopia’s liquidator Grant Thornton released an estimation on the financial state of the firm, reporting a total of $4.22 million owed to creditors.

The liquidators of now-defunct New Zealand crypto exchange Cryptopia have released the first report on the state of affairs of the firm, according to the documents published on May 31.

Cryptopia’s recently assigned liquidator, Grant Thornton, has released an estimation statement of the financial state of the firm, reporting that the hacked exchange owes a total of $4.22 million to its creditors.

According to the report, there are 69 unsecured creditor claims totalling $2.439 million, with the liquidators adding that they expect to receive further claims, thus raising the amount.

The report also indicates that the employee entitlements at the data of liquidation account for around $318,000.

In a press release accompanying the report, Thornton stated that the exchange liquidators, David Ruscoe and Russell Moore, are still in the process of securing and recovering the company’s crypto assets compromised from Cryptopia’s mid-January hack.

The report notes that liquidators were granted a court order from the New Zealand courts authorizing them to use certain crypto assets to recover and preserve assets. Thornton added that at the current stage of the investigation, they cannot forecast a date when the liquidation will be completed.

The legal expert wrote:

“We are aware of and understand the frustration of Cryptopia’s customers. As there is no legal precedent on crypto assets in New Zealand and worldwide, the distribution of those assets and the overall conduct of the liquidation will require significant direction from the New Zealand Courts.”

Cryptopia was the victim of a major hack in early 2019, with the stolen funds estimated to amount to about $16 million. Following the appointment as the exchange's liquidator, Thornton warned that creditors would have to wait months, rather than weeks, to get their funds back.

Recently, analysts found that hackers have moved a portion of Cryptopoa’s stolen crypto assets to another crypto exchange.

Japanese Parliament OKs Crypto Law Changes, Limits Speculative Trading

Japan’s parliament has approved amendments to two financial laws – officially changing the legal name for cryptocurrencies to “crypto assets,” and outlawing market manipulation. The country’s upper house approved amendments to the Fund Settlement Act and the Financial Instruments and Exchange Act on the morning of May 31. Per Nikkei, the amendments “include measures t

Chainalysis Research: Speculation Remains Bitcoin’s Primary Use Case

Research from Chainalysis indicates that only 1.3% of economic transactions for bitcoin came from merchants in the first four months of 2019.

Research from United States-based blockchain intelligence firm Chainalysis indicates that only 1.3% of economic transactions for bitcoin (BTC) came from merchants in the first four months of 2019. The news was reported by Bloomberg on May 31.

The low figure is ostensibly symptomatic of a speculative trend that Bloomberg suggests is preventing the cryptocurrency from being adopted for payments: as bitcoin continues to see significant volatility and renewed valuation gains, its nature as a speculative asset purportely disincentivizes users from using it as a unit for spending.

Accumulation — or HODLing, as the industry acronym goes — thus appears to be in direct conflict with the cryptocurrency’s future as a replacement for fiat currencies. In an email to Bloomberg, Kim Grauer, a senior economist at the firm, proposed that:

"Bitcoin economic activity continues to be dominated by exchange trading. This suggests Bitcoin’s top use case remains speculative, and the mainstream use of Bitcoin for everyday purchases is not yet a reality."

Bitcoin Activity by Category

As part of its dataset, Chainalysis reportedly monitors crypto payment service providers such as BitPay, which reportedly processed $1 billion for merchant in both 2017 and 2018.

Chainalysis’ data shows that merchant activity for bitcoin peaks during a crypto market bull run — as in late 2017, when merchant services hit a high of 1.5% of total bitcoin activity, before dropping to 0.9% in 2018 during the bear market and then rising again during this year’s recovery. BitPay CCO Sonny Singh told Bloomberg the firm had observed the same trend.

Between January and April of this year, exchange-related transactions nonetheless continued to account for 89.7% of all bitcoin activity — down just a fraction from 91.9% for the whole of 2018, Chainalysis’ data indicates.

This month, major U.S.-based cryptocurrency exchange Coinbase announced that Coinbase Commerce — its crypto payment processor for merchants — would begin supporting Circle’s stablecoin USD Coin (USDC).