Dogecoin’s traders must be wary of a decline if this happens

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice Elon Musk’s favorite cryptocurrency has been trending slightly higher over the past week. However, recent gains of 5% were nowhere close to the gains seen by some of its top-10 counterparts that saw double-digit […]

Will Crypto History Repeat? On-Chain Analyst Willy Woo Questions Conventional Wisdom on Bitcoin’s Trajectory

Widely followed on-chain analyst Willy Woo says Bitcoin (BTC) traders shouldn’t expect the current market cycle to end up resembling the 2013 BTC bull run.

In a new episode of What Bitcoin Did with Peter McCormack, Woo says the crypto space has a “cycle imprint” in which traders are looking too much at past bull runs in order to time the current one.

 

Woo says that some traders might be hoping that Bitcoin experiences something similar to its 2013 mid-cycle crash, in which the flagship cryptocurrency dropped nearly 80% before breaking new highs.

“We’ve got this cycle imprint. People are now cycle-imprinting 2013 now that we’ve got this big dent in the bull market. I think everyone’s now agreeing that it is still a bull market, and now we’re cycling back to 2013…

I’m beginning to think this is not going to happen. I’m actually siding towards this being unlike anything. I think we’ll go past the end of this year, and there’s a fair amount of likelihood that it won’t come into a full-blown bear market like we saw in the prior cycles, and then people start talking about the extended cycle theory.”

According to the closely followed analyst, Bitcoin is more likely to experience a random grind upwards with less dramatic peaks and shorter bear trends.

“I think this thing is just going to do a crazy wander around demand and supply and the halvening has less impact. And maybe Michael Saylor is right: there is no top. It just keeps wandering and discovering. You might have things that we just experienced, mini-bear seasons.”

In June, MicroStrategy CEO Michael Saylor outlined a slew of catalysts that he believes can drive Bitcoin’s price in the coming years.

As for the current state of Bitcoin, Woo names the $42,000 level as the key area to break before BTC can start challenging the $50,000-$60,000 range. At time of writing, Bitcoin is trading at $39,120, according to CoinGecko.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Mia Stendal

The post Will Crypto History Repeat? On-Chain Analyst Willy Woo Questions Conventional Wisdom on Bitcoin’s Trajectory appeared first on The Daily Hodl.

Mexican authorities burst 12 crypto exchanges involved in money laundering

TL;DR Breakdown

  • Mexican authorities burst  12 exchange firms involved in money laundering
  • Crypto continues to be big tool for money launderer

Mexican authorities has burst 12 local crypto exchanges said to have been involved in laundering money for the Jalisco drug cartel in the country. 

The Financial Intelligence Unit, behind the burst operation got intelligent information that the exchange firms operated without any legal backing or authorization after which the exchange firms were uncovered. 

Mexican authorities furious of cartel relationship with crypto

The Mexican FIU said it identified the 12 exchange firms after gathering intelligent information from different sources. Nieto Castillo – the head of the FIU raised suspicion that the firms might be related to criminals that employ digital assets in money laundering operations. 

He also hinted that the exchanges may have a thing to do with drug cartel Jalisco Nueva Generación. 

The cartel is a semi-militarized Mexican criminal group based in Jalisco which is headed by Nemesio Oseguera Cervantes, one of the world’s most-wanted drug lords.

Per the law in Mexico, the exchange firms if found guilty are liable to monetary penalty of up to $15,000.

However, for now, the Mexican authorities have identified three suspected criminal cases involving cryptocurrencies. One of them involved Nigerian citizens in Mexico City, who used to drain cryptocurrencies from Mexican victims and sent them to their home country.

Crypto drug baron nabbed in Spain

Whenever hard drug crimes are mention nowadays, it’s very difficult for it not to be linked one way or another with cryptocurrencies. 

The pattern has been so for a long time with crypto and series of other crimes including terrorism financing, human trafficking among others. 

Last year, the case of an anonymous Dutch narco dealer arrested in Spain was widely reported. The suspect was part of the notorious Cali cartel and represented the syndicate in Europe.

He was arrested amidst several luxuries like wristwatches, exotic cars believed to be proceeds of drugs and illegal crypto transactions are part of exhibits seized from him are credit cards connected to cryptocurrency accounts, computers, and cell phones.

Bear Market Over? Why Bitcoin Could Soar To $45K As Strong Holders Grow

Bitcoin has retaken the highs of its current range. The first cryptocurrency by market cap trades at $41,300, at the time of writing, with a 6% and 23.8% profit in the daily chart.

BTC moving sideways after retaking $40,000 in the daily chart. Source: BTCUSD Tradingview

The general sentiment in the market has flipped bullish, the fear and greed index signals greed for the first time in months. Other indicators, as many experts have pointed out, suggest a definite shift in the market. The bulls could see more green days in the coming weeks.

Data from Glassnode, provided by the CIO of Moskovski Capital Lex Moskovski, recorded an increase in the amount of Bitcoin held by “strongest holders”. According to the Illiquid Supply metric, these holders have risen to an all-time high and suggest “bullish” price action.

Source: Glassnode via Lex Moskovski

Charles Edwards, a founder at Capriole Investments, revealed an increase in long-term Bitcoin holders. According to the HOLD Waves metric, these types of investors have been growing their supply since the May 2021 crash. Edwards added:

This type of sharp rise never occurred in the early stages of prior bear markets, suggesting that there is a chance the Bitcoin bull-cycle is still intact.

Source: Glassnode via Charles Edwards

Additional data provided by Edwards indicates that exchanges platforms had their “first positive outflows” since last week when Bitcoin made a run from its yearly open at around $29,000 to its current levels. This metric suggests that the demand in the crypto market could be returning and could support further appreciation.

Days prior to the current price action, Bitcoin dropped from about $35,000 to its yearly open, as mentioned. Edwards called this price action a “failed breakout”, as sellers were exhausted at those lows and were unable to push the price further down. He added:

The ensuing squeeze to the upside was supported by a heavily short market, with over-exposure to stable-coin contracts. This resulted in a short squeeze over the last week which culminated on the candle highlighted (…)

Source: Charles Edwards – Capriole Investments Bitcoin Fundamentals Turn Positive, Bulls Back In Control?

Edwards reviewed other indicators, such as the Hash Ribbons metric and believes it looks “promising”. The metric saw an important decline after China banned Bitcoin mining from the country. Miners had to migrate to friendlier destinations.

The Bitcoin hash rate and its Energy Value has been rising. Edwards found that both of this metric grew around 8%, indicating that the miners’ migration has ended. Another bullish factor, since these entities can stop selling BTC; the market could see selling pressure diminish. However, investors must remain cautious:

Hash rate is showing a positive and strong trend, not dissimilar to December 2018, suggesting the bottom could be in. However, Hash Rate can give various false positives during capitulation. This is why we remain cautious until the Hash Ribbon buy signal is confirmed.

In the coming days, Bitcoin could see more accumulation around its current levels with a “higher chance” of another leg up to the mid-range, $45,000. If BTC’s price retraces, the invalidation zone stands at $39,000.

The macro-economic outlook presents a potential tailwind and risk for Bitcoin. Edwards claims that the U.S. Federal Reserve and its inflationary monetary policy could continue to boost BTC if the financial institution keeps printing money.

There is a potential risk in the traditional market. If the stock market crashes, Bitcoin could follow. The cryptocurrency has displayed a high level of correlation with the S&P 500. In consequence, it could hurt its chances to reclaim previous highs in case of a dropped. Edwards concluded:

For now, fundamentals and technicals are skewed towards the upside, and our base case is we will move towards the mid- to high-$40Ks over the coming weeks. In the near-term this thesis would be validated if we breakdown below $39K. Finally, Bitcoin cycle history tells us to be wary of significant volatility and downside risk until conditions are further improved.

eToro Listed Shiba Inu (SHIB) While ShibaSwap TVL Drops Almost 80% in Two Weeks

The multi-asset investment platform, eToro, which plans to go public later this year, has listed Shiba Inu (SHIB). The company argued that the decision came following substantial demand from customers.

  • Founded in 2006, eToro is an Israeli social trading and multi-asset brokerage company with offices in several European countries, the US, and Australia.
  • The firm announced the listing of Shiba Inu (SHIB) in a press release shared with CryptoPotato. The statement reads that the addition has come due to “strong customer demand.”
  • Users of eToro will be able to interact with the popular meme coin as “Shiba (in millions),” which is a “lot” of one million Shiba Inu units. According to the statement, this would provide customers with a “clearer understanding of the pricing in a regular, two-decimal-point format.”
  • The company recently outlined plans to go public later this year. It would become possible after a merger with a Special Purpose Acquisition Company (SPAC) with a total valuation of over $10 billion.
  • Back in May, eToro also listed arguably the most popular meme coin – Dogecoin. Shortly after, DOGE pumped to an all-time high at that point of about $0.5.
  • SHIB saw its record price in mid-May as its popularity skyrocketed. However, it has declined by more than 80% since then, even though the recently launched ShibaSwap DEX attracted billions of dollars in total value locked in just a few days after the launch.
  • However, the TVL has declined by nearly 80% since then to around $400 million as of writing these lines, according to data from DeFiLama.

Swiss Private Bank Says Its Wealthy Clients Are Interested in Crypto

In a recent interview, Zeno Staub, the CEO of Swiss private banking and investment management group Vontobel Holding AG, talked about their clients’ interest in crypto. The Vontobel CEO’s comments were made on July 27 during an interview with Bloomberg TV anchor Anna Edwards. When Edwards Staub what Vontobel’s clients are asking for with regard to […]

Cardano Could Be Gearing Up for 800% Rally, Says Crypto Analyst Michaël van de Poppe

A popular crypto analyst says Cardano (ADA) may witness another major rally this year if two crucial support levels hold.

In a new strategy session, Michaël van de Poppe says Cardano has been in a downtrend against Bitcoin since late June.

 

He highlights the $1.33 region as the first level of support and a second crucial level of support at around $1.16.

“[Cardano] is consolidating, or retracing, nicely here. It used to be one of the biggest runners of 2021, especially the one with the biggest hype.”

In order for Cardano to form a solid bottom, van de Poppe says it has to break the 3500 satoshi level, which is at about $1.45 at time of publishing. That could prompt another move to the upside.

If that happens and a market-wide crypto bull run begins, he sees Cardano surging as much as 800% in its dollar value.

“If we’re going to make a bottom around 2800 satoshis [about $1.16], we can see a 170% and usually overshoot 190% trade on the Bitcoin pair.

I’m also expecting the value of Bitcoin against the US dollar to do well. So if we get into this region, it’s probably going to result in a 400% to 800% move on the US dollar value, especially given that the market is going to heat up once again.”

Van de Poppe traces a path that shows Cardano consolidating for about another month before a potential reversal begins.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Cardano Could Be Gearing Up for 800% Rally, Says Crypto Analyst Michaël van de Poppe appeared first on The Daily Hodl.

Binance Limits Exchange Activity for Unverified Users

Leading digital currency exchange Binance – arguably the biggest cryptocurrency trading platform in the world – is taking heavy action against unverified users.

Binance Moves Towards Limiting Unverified Customers

In a series of tweets, Changpeng Zhao – the company’s CEO – announced that Binance would be limiting how much money customers can remove or withdraw from their accounts daily, granted they have not gone through the verification process with the exchange. Zhao explained the details as such:

Daily withdrawal limits will be adjusted from two BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed basic account verification.

For the past month or so, Binance has been facing heavy regulatory pressure from regions such as Canada, the United Kingdom and Japan. Not long ago, a division of Binance known as Binance Markets Limited was forced to exit the UK and forgo all services it was offering there given that it was allegedly not complying with monetary rules that had been set in place.

Now, it appears the company is trying to gain its reputation back and spread its wings to other territories by keeping all customers in check and ensuring a safe environment for its traders.

Changpeng Zhao further explained in a statement:

We are actively hiring leadership with regulatory and compliance experience. Binance is ready to assist regulators from around the world and together find the optimal way to set a fair playing field – consumer protection is important to all of us. We want to create a sustainable ecosystem around blockchain technology.

The situation is a rough one in that while the crypto space has often been wrought with fraud and criminal activity since the day it first arrived on scene, the whole idea of crypto is to give everyone the financial privacy they are potentially looking for. Many exchanges, digital currency trading platforms, and similar firms have been implementing what are known as KYC or “know your customer” protocols that require individuals to provide data suggesting they are who they are. This may include anything from a social security number to an uploaded copy of one’s government-issued ID card.

Is Privacy Affected?

Many have felt that this potentially gets in the way of crypto’s goal of keeping privacy and financial independence in play. At the time of writing, the basic account verification process through Binance – the one that permits daily withdrawals of around $2,000 – requires that users enter their addresses, names, and dates of birth. No supporting documents are required, and thus people can provide false information if they choose.

Those who wish to go beyond these horizons must take greater measures at proving themselves and must upload either copies of their passports or driving licenses, along with selfies for facial verification purposes. Granted they pass and their accounts are approved, they can withdraw up to 100 BTC per day.

The post Binance Limits Exchange Activity for Unverified Users appeared first on Live Bitcoin News.

ETH Compatible BCH Sidechain Smartbch Successfully Launches Three Nodes

ETH Compatible BCH Sidechain Smartbch Successfully Launches Three Nodes

The day before the fourth Bitcoin Cash anniversary, the Smart Bitcoin Cash team (Smartbch), announced the project has launched three nodes as genesis validators. Smartbch disclosed that Btc.com, Viabtc, and Matrixport are participating and the project has officially started its voting period.

Smartbch Fires up Smart Chain’s Genesis Validators

For quite some time now, the Bitcoin Cash (BCH) community has been patiently waiting on the development of the Smartbch project. The reason for this is because Smartbch could unlock massive potential between Ethereum (ETH) and Bitcoin Cash.

The protocol could bolster decentralized finance (defi) on Bitcoin Cash and be compatible with the second largest crypto asset in terms of market capitalization. Bitcoin.com News first reported on Smartbch during the first week of April and interviewed the project’s lead developer 15 days later.

By the end of the month, Smartbch launched the testnet publicly and which gives developers and decentralized app makers the ability to experiment and develop with the high-performance, EVM-compatible Bitcoin Cash sidechain. Now Smartbch has now fired up its engines with three nodes acting as the genesis validators.

The three Smartbch nodes are operated by Viabtc, Matrixport, and Btc.com. “Smartbch is now in its first voting period,” the project’s announcement explains. “More validators will be elected by SHA256 miners and will take on the duty in the future.”

“We have spent two more months in development than the original estimation to finalize the data structure of MoeingADS and to implement SEP101, SEP206, and Transaction Reorder onto Smartbch,” the Smartbch development team adds.

“MoeingADS is the underlying storage engine for the world state, which is very hard to change in hard forks,” the Smartbch devs say. “Ethereum’s underlying storage engine MPT has never modified its data structure since the beginning. MoeingADS is now strong enough to support 51K TPS and can support Smartbch’s growth for many years without changing its primary data structure.”

Focusing on a Secure Cross-Chain Bridge

The Smartbch team says the project will take a lot of time to make the protocol robust. During the last few weeks, the developers noticed a number of defi projects that suffered from exploits and it was due to cross-chain bridge vulnerabilities.

The Smartbch team aims to strengthen the Bitcoin Cash sidechain’s cross-chain gateway so it is very secure and powerful. “It will take security as the priority and be audited by the community,” the Smartbch team says.

“The launch is a solid step in Smartbch’s long journey,” the project’s creators conclude. “We invite everybody from the BCH community to use it and help its growth. We’ll soon provide some guides for BCH holders to try it and transfer a limited amount of coins cross-chain through the current simple gateway.”

What do you think about Smartbch launching three nodes for genesis validators and the focus on the cross-chain bridge? Let us know what you think about this subject in the comments section below.

Wealthfront ($21 Billion AUM) Offers Cryptocurrency Exposure to its Clients Through Grayscale

GrayscaleGrayscale

Wealthfront, a financial institution based in California, has announced an expansion of its digital asset investment menu on Thursday. Reportedly, the company will now include Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) among its other investment options. Wealthfront also noted that they would deliver additional solutions to customers with cryptocurrencies different from BTC and ETH.

Wealthfront Enables Customers To Invest in GBTC and ETHE

The investment service firm, Wealthfront Inc. rolled out a blog post on July 29, 2021, stating the expansion of its digital asset investment menu. According to the company, users can now diversify their portfolios by allocating funds in Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). However, Wealthfront warned the customers that such investments are more volatile and risky compared with most ETFs and that they would restrict the allotment.

The investors would not be permitted to allocate more than 10% of their total portfolios into GBTC or ETHE, as the company claims itself to be a fiduciary and promises to act in the customers best interests all the time. 

Furthermore, the company’s clients would not need a crypto wallet or an account in any cryptocurrency exchange to take advantage of the service.

Reportedly, Wealthcare Inc. has over $25 billion in assets under management (AUM) across 440,000 accounts at present. But, they aim to expand their ETF menu soon which according to the company would offer even more cryptocurrency options. 

GBTC Roundup: GBTC May Outweigh The Largest Gold ETF

GBTC AUM has neared $40 billion. The growth of the Grayscale Bitcoin Trust has prompted people to believe that it can surpass the SPDR Gold Shares (GLD) – the largest gold-tracking ETF. However, according to a recent analysis, institutional demand for Bitcoin and Ethereum investment products has taken a breather, and outweighing the SPDR Gold Shares now may be less likely.

 

The post Wealthfront ($21 Billion AUM) Offers Cryptocurrency Exposure to its Clients Through Grayscale appeared first on Coingape.

MicroStrategy Secures A Whopping $1.4 Billion In Bitcoin Gains – Not Dumping Anytime Soon

MicroStrategy Is Now Paying Its Board Of Directors In Bitcoin Instead Of Dollars

A strong advocate for Bitcoin, Michael Saylor, has restated his bullish stance on the cryptocurrency calling it an open-digital property network, an international trust network as well as the only asset his company, MicroStrategy, needs to have a diversified investment for the long term. 

Speaking to Bloomberg TV, the CEO of the first publicly-traded company to have Bitcoin on its balance sheet stated that the company is leveraged long on Bitcoin, with a 10-year view based on the fact that they envision a time when billions of people will catch on to the benefits of the network; they are working patiently to get there before the billions of users do. 

He also points out that MicroStrategy is unique in the way it has put together its leverage with debt. The company made around $1.4 billion in profit on paper as it has not sold or plan to sell its BTC holdings soon. The company acquired its Bitcoins with both operating income and debt of $2.2 billion at a blended interest rate of around 1.5% interest. Saylor, pitching to win potential investors over for the company, said “if you like Bitcoin, then you’d like the idea of owning $2.2 billion in Bitcoin if it is at 1.5% of interest.” 

BTCUSD
BTCUSD Chart By TradingView

Saylor, who has been unwaveringly bullish for Bitcoin, even amid the bear market, stated that his company envisions “Bitcoin on the balance sheets of cities, states, governments, companies, small investors, big investors…” adding “ultimately, we think Bitcoin is going to be the core to big-tech innovation at Apple, Amazon, and Facebook.” 

Explaining further Saylor said that while the equity market was closed on weekends, the Bitcoin network never goes offline twenty-four hours a day, 365 days a year. This feature is already yielding benefits for platforms such as Square, PayPal, and Robinhood. 

In much the same way as he has given publicity to Bitcoin in the past, Saylor further said that Bitcoin will solve issues in big-tech and social media companies as the network being trustless would help companies improve user experience online by eliminating spam and improving cybersecurity.

To clear all doubts, MicroStrategy is not relenting in its Bitcoin stance as the CEO also revealed that in the future the company still had plans to purchase more Bitcoin. Though it was still uncertain how it would fund the purchase, the company’s shareholders will decide if the move will be financed by cash flow, debt, or equity when the market conditions are right. 

MicroStrategy currently holds over 105,000 Bitcoins on its balance sheet. The company does not consider any other cryptocurrencies and has been instrumental in reassuring the public to hold on to their positions.

Central Bank of Brazil says country to shift to digital payment

TL;DR Breakdown

  • Brazil Central Bank says country to shift to digital payment
  • Central Bank of Brazil to roll out CBDC 2022

João Manoel Pinho de Mello, the Director of the Central Bank of Brazil (BCB) has highlighted the importance of digital currency noting that the country was exploring ways to shift from paper currency to digital currency in the coming years.

The Central Bank of Brazil director made this known at a symposium organized for stakeholders to discuss the possibility and capability of digital currency and how the migration from fiat currency to digital form of payment can be executed.

According to Mello, for the initiative to work and a successful shift to digital form of payments to occur, the Central Bank of Brazil will have to embrace central bank digital currencies (CBDC).

Mello, who heads the financial system organization and resolution department at the Central Bank of Brazil explained that the use of CBDC will help the bank achieve its vision. He noted that if well designed and organized the state-owned digital currency can boost the country’s financial inclusion as well as reduce the cost and time of cross-border payments.

The bank director, however, emphasizes that launching a state-owned CBDC would require a lot of attention and rigorous scrutiny to avoid a breach of any data protection laws and to prevent cyberattacks. He also maintained that launching a CBDC will occur in situations where it can bring greater efficiency and transparency to transactions.

Central Bank of Brazil to roll out CBDC 2022

In a similar development, Roberto Campos Neto, President of the Central Bank of Brazil has recently revealed that the country could be ready to roll out a state-owned digital currency as early as next year.

According to reports, the country is actively exploring digital currency and the current report shows that the requirements for the adoption of a Brazilian CBDC will be achieved in two to three years.

Neto who earned a master’s degree and a bachelor’s degree in economics from UCLA has been championing a new course noting that the central bank needs to continue to innovate, test digital currencies, and explore how to better monetize data. He further pointed out that Brazil’s currency laws date to 1960 and should also be researched and updated.

Additionally, Mello has also urged countries to look into the creation of a state-owned digital currency that can be used between different countries. According to him, if unveiled its would facilitate the growth of national economies and also prevent unwanted substitutions of one country’s sovereign currency for that of another.

Pro traders look for this classic pattern to spot Bitcoin price reversals

Crypto and stock traders view the inverse head-and-shoulders pattern as an early signal that a bullish trend reversal is in the making.

Every trader aims to buy low and sell high, but only a few are able to muster the courage to go against the herd and purchase when the downtrend reverses direction. 

When prices are falling, the sentiment is negative and fear is at extreme levels, but it's at times like these that the inverse head and shoulders (IHS) pattern can appear.

The (IHS) pattern is similar in construction to the regular H&S top pattern, but the formation is inverted. On completion, the (IHS) pattern signals an end of the downtrend and the start of a new uptrend.

Inverse head and shoulders basics

The (IHS) pattern is a reversal setup that forms after a downtrend. It has a head, a left shoulder and a right shoulder that are upside down and placed below a neckline. A breakout and close above the neckline completes the setup, indicating that the downtrend has reversed.

Head-and-shoulders bottom pattern. Source: TradingView

As shown above, the asset is in a downtrend but after a significant decline, value buyers believe the price has reached attractive levels and will start bottom fishing. When demand exceeds supply, the asset forms the first trough from the left shoulder and the price starts a relief rally.

In a downtrend, traders sell on rallies. The bears sell aggressively after the pullback and the price dips below the first trough, making a lower low. However, bears are unable to capitalize on this weakness and resume the downtrend. The bulls buy this dip and start a relief rally, forming the head of the pattern. As the price nears the previous peak where the rally had stalled, the bears again step in.

That starts the decline, culminating in the formation of the third trough, which is arrested almost in line with the first trough as buyers anticipate a turnaround and purchase aggressively. This forms the right shoulder of the setup. The price turns up and this time, the bulls manage to push the price above the neckline, completing the pattern.

The neckline thereafter becomes the new floor as traders buy the dip to this support. This signals the start of a new uptrend.

Identifying a new uptrend with the (IHS) pattern

BTC/USDT daily chart. Source: TradingView

Bitcoin (BTC) had been in a downtrend since forming a local top at $13,970 on June 26, 2019. The buyers stepped in and arrested the decline in the $7,000 to $6,500 support zone, forming the left shoulder of the (IHS) pattern. This started a relief rally that pushed the price to $10,450. At this level, short-term bulls booked profits and bears initiated short positions, aiming to resume the downtrend.

Aggressive selling broke the support at $6,500 and the Bitcoin/Tether (USDT) pair plunged to $3,782.13 on March 13, 2020. The bulls viewed this fall as a buying opportunity and that started a strong relief rally, which reached close to $10,450. This second trough formed the head of the setup.

The right shoulder was shallow because the selling pressure was reduced and bulls did not wait for a deeper correction to buy. Finally, the bulls pushed the price above the neckline on July 27, completing the (IHS) pattern.

The bears tried to trap the bulls and they pulled the price back to the neckline. Although the price dipped just below the neckline, traders did not allow the pair to sustain below $10,000. This suggested a change in sentiment. The bullish momentum picked up as buyers pushed the price above $12,500.

How to calculate the pattern target of a IHS setup

BTC/USDT daily chart. Source: TradingView

To calculate the minimum target objective of the (IHS) pattern, calculate the depth from the neckline to the lowest point, forming the head. In the above example, the neckline is around $10,450, and subtracting the lowest point at $3,782.13 gives a depth of $6,667.87.

This value is then added to the breakout level, which in the above example, is near $10,550. This gives a target objective at $17,217.87. When a trend changes from down to up, it may fall short or exceed the target objective. Therefore, traders should use the target as a guide and not dump their positions just because the level has been reached.

Patience pays o because sometimes the pattern fails

No pattern succeeds at every breakout and traders should wait for the setup to complete before initiating the trades. Sometimes, the pattern structure forms but the breakout does not happen. Traders who preempt the completion of the pattern and initiate trades get trapped.

LINK/USDT daily chart. Source: TradingView

For example, Chainlink’s LINK topped out at $4.58 on June 29, 2019, and started a correction. The buyers attempted to stall the decline in the $2.20 to $2.00 zone. This formed an (IHS) pattern with a head and two shoulders as can be seen in the chart above.

Although the price reached the neckline on Aug. 19, 2019, the buyers could not push the price above it. Due to this, the pattern did not complete and the buy signal did not trigger.

The LINK/USDT pair turned down from the neckline and broke below the head of the setup at $1.96, invalidating the pattern. This trapped traders who may have purchased in anticipation of a trend reversal.

Key takeaways

The (IHS) pattern could be a useful tool for traders to jump on a new uptrend as it is getting started. There are a few important points to remember while using this setup.

Traders should wait for the pattern to complete, which happens after the price breaks and closes above the neckline, before initiating any long positions. A breakout of the neckline, which is on above-average volume, is more likely to result in a new uptrend compared to a breakout that happens on low volumes.

When a trend reverses, it generally continues for a long time. Therefore, traders should not be in a hurry to dump positions only because the pattern target has been met. At other times, the pattern completes but quickly reverses direction and the price plummets. Traders should closely watch the other indicators and price action before squaring up a position.

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

El Salvador’s Push To Adopt Bitcoin Riddled With Risk, According to IMF Managing Director

International Monetary Fund’s (IMF) managing director Kristalina Georgieva says El Salvador’s move to adopt Bitcoin as a legal tender will introduce significant risks to the Central American country.

Georgieva says that El Salvador’s adoption of Bitcoin as a currency will bring uncertainty to financial planning at the household, enterprise and national levels, among other risks.

 

“Let me start by saying it is a sovereign decision. Being a sovereign decision doesn’t automatically make it a very good decision because what it introduces in El Salvador is a highly volatile asset to serve as a currency. And the risks it brings are for the naked eye to see.

One, how do we know what we collect in taxes when Bitcoin goes up and Bitcoin goes down? How do we plan for expenditures? Remember in April, Bitcoin crossed $65,000, and then it dropped almost half of it. That is a problem that the Ministry of Finance is going to be wrestling with. It is not an easy one.

Secondly, how do people plan – individual consumers or the vendors that have to sell goods and services in that volatile asset?

And the third one is – those who know me know I care very deeply about the environment. One of the issues with Bitcoin is mining Bitcoin is very energy intensive.”

Georgieva also says that it’s difficult to make a means of payment out of an asset.

“[It’s] hard to make an asset to be a means of payment. And what we care about is efficient, effective, reliable payment systems.”

I

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post El Salvador’s Push To Adopt Bitcoin Riddled With Risk, According to IMF Managing Director appeared first on The Daily Hodl.

Amazon rumored to be accepting Bitcoin, MicoStrategy pledges to buy more BTC despite losses, Bitcoin struggles at $40K: Hodler’s Digest, July 25-31

Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.

Top Stories This Week

 

Amazon plans to accept Bitcoin payments this year, claims insider

The crypto community was going wild at the beginning of this week after rumors circulated that Amazon was planning to accept Bitcoin payments.

The rumors started after Amazon posted a job opening for a digital currency and blockchain product lead on July 22. Four days later, an anonymous source within Amazon reportedly told London business newspaper City A.M. that the e-commerce giant was planning to start accepting Bitcoin (BTC) payments by the end of 2021.

This isnt just going through the motions to set up cryptocurrency payment solutions at some point in the future this is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work, the source told City A.M., according to a report published on Sunday.

Chinese crypto journalist Colin Wu attributed Mondays surging market action, during which Bitcoin gained roughly 15% in less than three hours, to Amazons rumored plans.

How wrong that very self-assured sounding quote from an unnamed source turned out to be after the multinational giant refuted the speculation two days later.

Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true, a spokesperson said.

 

Bitcoin struggles at $40K after most confusing Jerome Powell press conference

Bitcoin rose above $40,000 on July 29, a day after the Federal Reserve hinted that it was getting closer to winding down its asset purchasing program that has boosted the economic recovery of the United States.

The digital gold previously approached $41,000 ahead of the critical Fed update. Unsurprisingly, it started losing upward momentum after the Federal Open Market Committee released its policy statement, followed by a press conference helmed by the Fed’s chairman, Jerome Powell.

Powell had previously said that the Fed’s asset purchases would continue until it sees substantial further progress in the U.S. economic recovery. However, for a while, it was unspecified as to what that actually meant, and Powell finally cleared that up after being questioned in a July 28 press conference.

Turns out that substantial further progress means strong labor numbers and gains towards maximum employment.

Maximum employment refers to the highest level of achievable employment that the economy can sustain while maintaining a stable inflation rate. Given the rise of inflation and the decline of jobs due to the pandemic, the Feds maximum employment targets may need further clarification.

BTC investors have been closely monitoring how soon the central bank might unwind its $120-billion-per-month bond-buying program due to its role in aiding the Bitcoin bull market.

 

Binance cuts withdrawal limits, rolls out tax reporting tool

Following increased scrutiny aimed at Binance from governments and financial institutions across the globe, the worlds biggest crypto exchange has been working on regulatory compliance.

In the latest attempt to maintain dialogue with global regulators, Binance introduced withdrawal limits and a new tax reporting system.

The company officially announced on July 27 a major update to its Know Your Customer policies, significantly reducing maximum withdrawal amounts for users who have not completed full identity verification.

Effective from the date of the announcement, new Binance accounts whose users have completed only basic account verifications will be unable to withdraw more than 0.06 Bitcoin per day, worth roughly $2,329 at the time of writing. Previously, the maximum daily withdrawal amount was capped at 2 BTC, or about $77,661.

On July 30, the platform also announced that it will be shutting down its crypto derivatives trading for customers across Europe, first starting with Germany, Italy and the Netherlands.

This week, Changpeng Zhao, the CEO and founder of Binance, said he wanted the crypto exchange to work with local regulators as it establishes regional headquarters.

Zhao, also known as CZ, hinted that Binance would depart from its decentralized approach to finance and that wanted the exchange to coordinate with regulators as the company expands.

We want to be licensed everywhere, CZ said. From now on, were going to be a financial institution.

 

MicroStrategy pledges to buy more BTC despite paper loss on its holdings of $424.8M in Q2

MicroStrategy pledged to buy more Bitcoin despite reporting impairment losses of $424.8 million in Q2, after it stated that it was pleased by the results of its digital asset strategy in its July 29 Q2 report.

At a first glance, it appeared that MicroStrategy had lost the plot, as the Q2 report showed that as of June 30, MicroStrategy held an approximate 105,085 BTC with a carrying value of $2.051 billion, at an impairment loss of $689.6 million since acquisition. The average carrying amount per Bitcoin was an estimated $19,518.

Earlier this week Elon Musks Tesla also published a Q2 report which showed a $23 million impairment loss on its Bitcoin holdings.

As both firms categorize Bitcoin as an intangible asset, accounting rules mandate that they must report an impairment loss when the assets price drops below its cost basis. However, they are not required to report price appreciation in the specified asset until the position is realized through a sale.

The digital asset figures were calculated using Generally Accepted Accounting Principles (GAAP) a collection of commonly accepted accounting rules used for financial reporting. The firm also provided non-GAAP calculations, which in this report exclude the impact of share-based compensation expense and impairment losses and gains on sale from intangible assets.

The non-GAAP figures paint a different picture for MicroStrategys digital asset holdings, with the BTC cost basis at $2.741 billion but its market value is $3.653 billion, which reflects an average cost per BTC at $26,080 and a market price of $34,763 as of June 30.

This may be the reason why MicroStrategy CEO Michael Saylor continues to double down on BTC and pursue the hodl modl.

 

PayPal set to launch crypto trading in the UK and may embrace DeFi

On July 30, it was revealed that global payments platform PayPal is looking to expand its crypto trading services to the U.K. market, with the firm also revealing that it is looking at embracing DeFi.

According to the companys second-quarter earnings call on July 28, PayPal was very keen to pat itself on the back after the firm noted how well it performed during Q2 with its crypto trading services. CEO Dan Schulman stated that the U.K. is likely to be the next country where crypto trading is offered, and maybe even next month.

Speaking on DeFi, Schulman suggested that PayPal was looking into what the next generation of the financial system looks like and how to integrate smart contracts and decentralized apps into the platform:

How can we use smart contracts more efficiently? How can we digitize assets and open those up to consumers that may not have had access to that before? There are some interesting DeFi applications as well. And so we are working really hard.

Schulman also revealed that revenues of PayPal-owned mobile payment service Venmo grew by 183% year-over-year and that there has been strong adoption and trading of crypto on Venmo as well. Venmo launched crypto trading services to an estimated 70 million users in mid-April.

Paypals 2020 entrance into crypto was widely cited as one of the early catalysts for last years meteoric bull run, with the firm first announcing it would introduce U.S. crypto trading service in November.

Winners and Losers

 

 

At the end of the week, Bitcoin is at $38,906 Ether at $2,357 and XRP at $0.72 The total market cap is at $1.53 trillion, based on CoinMarketCap data.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Quant (QNT) at 70.71%, Amp (AMP) at 55.88%, and Terra(LUNA) at 43.75%.

The top three altcoin losers of the week are Compound (COMP) at -5.79%, Mdex (MDX) at -5.35%, and Shiba Inu (SHIB) at -5.19%.

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

 

 

Most Memorable Quotations

 

I think central bank digital currencies were concocted in hell by Satan himself.

Rich Checkan, president of Asset Strategies International

 

You even have some in the House that sit not too far from me on the House Financial Services Committee that would call blockchain basically a financial 9/11.

Representative Ted Budd of North Carolina, member of the House Financial Services Committee and Congressional Blockchain Caucus

 

They claim to enable transparency. Their backers talk about the democratization of banking. Theres nothing democratic or transparent about a shady, diffuse network of online funny money.

Sherrod Brown, United States Democratic Senator

 

Spending America deeper into a hole is a stupid, inflationary & altogether undesirable way to drive ppl to digital assets. I want USD to continue as the world’s reserve currency. We need to reign in spending & support financial innovation on US soil.

Cynthia Lummis, United States Republican Senator

 

When the scourge of the COVID-19 pandemic hit and forced many economies into partial and total lockdowns, it reinforced the need to pursue digitization.

Mahamudu Bawumia, Vice President of Ghana

 

There has been an enormous failure by the big banks to reach consumers all across the country. Digital currency and central bank digital currency may be an answer there.

Elizabeth Warren, United States Senator and former presidential candidate

 

We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy.

Michael Saylor, MicroStrategy CEO

 

Bitcoin Mining is the most ESG friendly business in the world. Bitcoin miners are 24/7 consumers of energy that can be placed near wasted power assets. Bitcoin miners help energy companies plan/control their demand this brings in revenue to divest from coal and invest in renewable energy assets.

Will Szamosszegi, CEO and founder of Sazmining Inc., from Markets Pro Q&A

Prediction of the Week

 

Ethereum price can hit $14K if the March 2020 chart fractal holds

Now that it looks like the cryptomarkets are picking back up, numerous bullish predictions are beginning to resurface. The recent flip in sentiment makes one wonder whether the highly coveted moon may once again be in sight.

Earlier this week TradingView user TradingShot spotted an extremely bullish fractal on the Ethereum chart which indicated that ETH may close 2021 above $14,000.

The Ethereum fractal involves three technical indicators: a 50-day simple moving average (SMA), a Fibonacci channel and a relative strength index.

Ether closed above its 50-day SMA in July 2021, the first time since the May 2021 bearish buzzkill market correction. As TradingShot pointed out, breaking above the 50-day SMA has historically predicted bull runs. For instance, a run-up above the 50-day SMA in April 2020 took the ETH/USD exchange rate from around $170 to over $500 in September 2020 in only 137 days.

A word of caution, however, based on this authors 20-second analysis: The last time ETH hit all-time highs around the $4,000 to $4,300 price range in mid-May, it stayed there for roughly five days before crashing sharply and forcing the bulls into hibernation.

FUD of the Week

 

Warren urges Treasury Secretary Yellen to combat rising crypto threats

Earlier this week, U.S. Democratic Senator and anti-crypto proponent Elizabeth Warren called on Treasury Secretary Janet Yellen and other regulators to develop a comprehensive and coordinated framework for addressing risks in the cryptocurrency market.

As the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, consumers, the environment, and our financial system are under growing threats, Warren said in a letter to Yellen.

According to Warren, an under-regulated cryptocurrency market poses a significant risk to major financial players, such as hedge funds and banks. What Warren is forgetting, however, is that hedge funds and banks are usually bailed out with taxpayer money in times of financial crises, so they really have nothing to worry about.

The senator is renowned for pushing back against cryptic currencies or whatever they are called, and has described assets like Dogecoin as a fourth-rate alternative to real currency.

It appears she hasnt seen enough memes from the DOGE community to be swayed on the value of Dogecoin as of yet.

 

IMF issues veiled warning against El Salvadors Bitcoin Law

The International Monetary Fund, or IMF, warned this week that the consequences of a country adopting Bitcoin as a national currency could be dire.

The IMF didnt specify which country it was talking about, but one thinks it may be El Salvador the first nation to adopt Bitcoin as a national currency.

According to assertions from IMF marketing department financial counselor and director Tobias Adrian and legal department general counsel and director Rhoda Weeks-Brown,

countries adopting cryptocurrencies as national currencies or granting crypto assets legal tender status risks domestic prices becoming highly unstable.

They also emphasized that the assets could be used contrary to Anti-Money Laundering and financing of terrorism measures, in addition to having issues surrounding macroeconomic stability and the environment.

 

Law professor calls for crypto mining regulation during US Senate hearing

Just as everyone was getting excited about the majority of the global BTC hash rate migrating out of China to the U.S., one little-known law expert has to come to ruin it all.

Professor Angela Walch of the St. Marys University School of Law attended the July 27 crypto hearing before the U.S. Senate Committee on Banking, Housing and Urban Affairs to call for stricter regulations on people who keep the crypto sector moving smoothly.

Thankfully, she wasnt asking for a China-esque ban and, in addressing the committee, Walch claimed that miners held meaningful power over the way blockchain networks operate. She asserted that they can potentially exploit the role of transaction ordering, which could become a major issue for cryptocurrencies.

In stressing the point, professor Walch likened the miner extractable value paradigm where miners earn more profits from ordering transactions in a certain way as being akin to a bribe.

She may have a point, though sometimes it does feel like youre bribing someone to get an Ethereum transaction through the books when tokenized cats clog up the network and send gas fees to the moon.

 

Best Cointelegraph Features

Blockchain tech is holding NFTs back because of these three design flaws

Three design flaws in blockchain tech are holding the NFT sector back and they need to be tackled for it to reach its full potential.

Powers On… Why the fear of ICO enforcement and liability is coming to an end

Eleven class actions against crypto firms and their founders started with a bang and will end with a whimper as they should.

Traders anticipate ‘DeFi Summer 2.0 after TVL and token prices rise

A rally in blue-chip DeFi tokens and the sectors rising total value locked has traders hopeful that a prolonged rally will take place.

Improve Your Trading Performance with a Demo Account on Bitop

Improve Your Trading Performance with a Demo Account on Bitop


It’s a great feeling not having to worry about losing your funds while trading digital assets. Most platforms do not offer demo trading for cryptocurrencies, forcing traders to test new trading systems with real money and increasing the risk of losing capital. 

Only a few platforms, such as Bitop, have implemented the functionality of a trading simulation, which will allow you to test a trading system or idea without risking real money and improve trading practices using real-time data of connected crypto exchanges. This means that a trader can exchange cryptocurrencies without having a trading account with a particular broker or a crypto exchange.

The real purpose of a trading simulator is to not only serve you as a learning point on how trades can be carried out but also to understand how the crypto market behaves, price fluctuations, test selected company tools and strategies or techniques that you can use when trading money.

Best Strategies for Demo Accounts

Eventually, you will find a winning strategy from your simulations that you will be able to translate to your live account and make real money. One of the main things you should take into account when using the demo feature is to make the experience as real as possible no matter if you are using artificial money. The key point is to improve your practice and not develop bad habits.

Moreover, you should always practice with the same monetary value of what your real account will have. If you have $5,000 saved for day trading, your demo account should also start out with the same amount.


Last but not least, your demo software/platform should be the same software/platform you intend to use in live trading. Part of demo trading is becoming comfortable with your trading platform and broker. Never start live trading with an untested/unknown platform.

Demo vs Live Trading 

When practicing with a demo account you should take into consideration a few differences that you will encounter when going out to the real world. Some of them include differences in execution and psychological components. 

  • Differences in execution: Data available in both accounts, demo and live, types may vary slightly. Why? In a demo environment, the market is normally able to fill any size of your position. Nonetheless, when you act in a live trading environment, a slippage in order execution may occur. The size of the position is related to what is accessible in the market.  A demo account reflects the market conditions in a live environment. 
  • Psychological components: whether you are using a demo or live account, you will experience plenty of emotions when trading. It comes in handy to practice having control over one’s feelings to avoid burnout when trading in real time. While using the demo account you are aware that you are not risking real money which can translate into allowing yourself for more, taking bigger risks and developing bad trading habits which can lead you to a disaster

Best Demo Account, Bitop Exchange. 

A demo account is recommended especially for the people who just started their journey in the crypto world, however, it can also be beneficial for experienced traders to test new systems and strategies. 

Bitop features a first-class copy trading system that allows new users to copy trades and strategies from experienced traders, allowing them to acquire experience, getting familiar with trading operations and reducing errors when trading with real money. 

The possibility to practice in a risk-free environment is a wonderful thing, use it wisely and treat it the same way you would with a real account. Experiment with different approaches and learn the trading craft in a safe place like a demo account. It can help you improve trading performance.

Don’t forget to check out bitop official website for more information and to open your demo account. Follow us for daily updates and special promotions:

Facebook: https://www.facebook.com/BitopGlobal

Twitter: https://twitter.com/bitop_exchange

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Linkedin: https://www.linkedin.com/company/bitop-cryptocurrency-exchange

Stay in touch via our Telegram channels: 

(CN) https://t.me/Bitop_ExchangeZh

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Russian Community:

https://vk.com/bitop_russia

Kentucky Regulators Crack Down on Blockfi Interest-Bearing Accounts

Kentucky Regulators Crack Down on Blockfi Interest-Bearing Accounts

The crypto lender Blockfi is now dealing with regulators from five states as Kentucky has joined the fray against the firm’s Blockfi Interest Accounts (BIAs). On July 30, Blockfi shared a statement on Twitter that explained the Kentucky Department of Financial Institutions (DFI) has sent the company an order that aims to ban new BIA accounts.

Blockfi Now Has Problems With Regulators From 5 States

The New York City-based cryptocurrency finance company Blockfi was founded in 2017 by co-founders Zac Prince and Lori Marquez. The firm is a cryptocurrency lending firm that offers interest-bearing accounts called “BIAs” and also provides customers with a cryptocurrency-denominated credit card. Since January 2018, the company has allowed lending services that leverage crypto collateral.

Bitcoin.com News reported on Blockfi’s initial issues with New Jersey regulators which was followed by problems with Texas, Alabama, and Vermont. The regulators from all of the states take issue with the BIA products and statements indicate officials believe they might be unregistered securities.

Following the four states that sent notices to Blockfi, the Kentucky Department of Financial Institutions (DFI) sent the company an order, according to Blockfi’s official Twitter account.

“Friday afternoon we received an order from the Division of Securities of the Kentucky Department of Financial Institutions regarding the Blockfi Interest Account (BIA) operations in the state of Kentucky,” Blockfi’s message notes. The crypto lender’s message adds:

The order prohibits Blockfi from soliciting or offering ant securities in Kentucky. Blockfi firmly believes that the BIA is lawful and appropriate for crypto market participants. But in light of the order, Blockfi will stop accepting new BIA clients residing in KY immediately.

Much like the other four states, Blockfi cannot allow individuals to create new BIAs until the issues with regulators are solved. So far, no other crypto companies have been targeted for offering interest via crypto accounts. Blockfi’s statement on Friday further adds that current BIA customers in Kentucky were not affected and like the statements it made prior, Blockfi says it is in discussions with U.S. regulators.

“We remain steadfast in our commitment to protect consumers’ rights to earn interest on their crypto assets,” Blockfi’s message concludes.

What do you think about the issues Blockfi has with Kentucky and the four other states? Let us know what you think about this subject in the comments section below.

Cardano, Binance Coin, DASH Price Analysis: 31 July

Bitcoin registered a substantial gain of 24.3% over the last seven days. The altcoins followed suit, moving north, albeit not as considerably as the king coin. Despite volatility, ADA was on the rise and might overcome its immediate resistance level of $1.31 over the upcoming trading sessions. Binance Coin flashed bullish sentiments overall. DASH gave […]

Pavan Sukhdev Says Bitcoin Is an “Asset” and “Not a Currency”

We have constantly been hearing arguments in the past that bitcoin is “digital gold.” Both bitcoin and the precious metal the entire world has grown to love are consistently being compared, though according to one expert – Pavan Sukhdev – there is still too much speculation involved.

Pavan Sukhdev – Bitcoin Is Not a Currency

Sukhdev is the president of environmental advocacy group WWF International. In a recent interview, he commented that both bitcoin and gold remain highly speculative assets that do not quite serve the purpose of anti-inflationary tools, like so many other experts appear to suggest.

This has been a common argument over the past year and a half. Ever since the coronavirus pandemic began, many crypto experts have come out to suggest that bitcoin – very much like gold – is somehow a hedge tool that can protect one’s wealth during times of economic strife. Given how much overprinting of fiat occurred throughout the world as a means of keeping stimulus measures at hand, bitcoin took on new form under this guise and rose to more than $29,000 by the time 2021 was ready to enter the mix.

But according to Sukhdev, bitcoin is not ready for this newfound role of keeping money safe during rough times. In a recent interview, he went so far as to say that bitcoin is not even a currency, but rather an asset, and that it is nearly impossible to utilize for transaction purposes. He explains:

Bitcoin is not a currency – it’s an asset, when you have something that is as volatile as bitcoin, which goes down from $60,000 to whatever $30,000 and back up to $40,000 in the span of sharp areas. Imagine if you were buying and selling your daily shopping with one dollar in your wallet, which went up and down in value ten percent, 20 percent, 30 percent every day. I mean, how happy would you feel with that?

This is an argument we have been witnessing for several years. Bitcoin – like most major cryptocurrencies – was initially created to serve as a payment tool. Something that would potentially overpower things like credit cards, checks, and above all, fiat currencies. However, this has been a slow journey considering just how volatile the asset has been. Bitcoin is extremely vulnerable to price swings, and thus several retailers and stores have been hesitant to say “yes” to BTC payments out of fear of losing profit.

Still, this “Asset” Has Value

Still, despite what one might consider negative sentiment, Sukhdev commented that while he does not see bitcoin as a currency, he does feel it can serve as a powerful store of value in the future. He stated:

I don’t see bitcoin as an alternative currency, but I do see it as a speculative store of value, like gold or whatever. In fact, even more speculative than that.

The post Pavan Sukhdev Says Bitcoin Is an “Asset” and “Not a Currency” appeared first on Live Bitcoin News.

Bitcoin and Crypto Threaten the Dollar and Have Advantages Over CBDCs: Economist Steve Moore

Economist Steve Moore says that crypto assets such as Bitcoin are a threat to the dollar and have advantages over central bank digital currencies (CBDCs).

In a recent interview with Kitco News, Moore says that although he doesn’t think the US dollar will lose its reserve currency status in his lifetime, he believes that crypto is a threat to that status.

 

“But I do think that a real threat – and a welcome threat – to the dollar is these cryptocurrencies, like Bitcoin and so many others. I think this is here to stay. It’s an incredibly positive thing because it’ll have a disciplining effect on these central bankers that feel like they run the world economy.”

When asked about his thoughts on the US government’s role in regulating crypto, Moore says that the government will likely take a tougher stance on Bitcoin.

“Because they’re terrified. What do government officials want? Control. They can’t control these things like Bitcoin… That’s exactly why if you love freedom and liberty, you should be in favor of these kinds of alternative currencies.”

Moore also believes that crypto provides a viable alternative to CBDCs for consumers who don’t want the government to track their spending activities.

“Just because you don’t want the government knowing how you’re spending your money doesn’t mean you’re a criminal… There are very legitimate reasons where I, as an individual, want my privacy from the government. That’s where these other cryptocurrencies come into play, and that’s exactly where they’re going to compete with, potentially, these digital central bank currencies.”

l

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Bitcoin and Crypto Threaten the Dollar and Have Advantages Over CBDCs: Economist Steve Moore appeared first on The Daily Hodl.

Ripple, Binance, BitMEX – Why this exec thinks there’s ‘zero value’ to regulatory actions

The SEC v. Ripple Labs lawsuit has been in the spotlight often over the last few months. What’s more, the SEC‘s approach towards cryptocurrencies has also been questioned and criticized by many. In fact, the SEC’s own commissioners have repeatedly bemoaned a lack of regulatory clarity. On a recent edition of Unchained podcast, founder and […]

Kentucky instructs BlockFi to cease the registration of new Interest Accounts

TL;DR Breakdown

  • Kentucky is the newest member of the United States recognizing BlockFi Interest Accounts as a violation.
  • BlockFi Interest Accounts have been stopped from gathering new users by Kentucky, making it the 5th state in line.
  • BlockFi immediately complied with the request of Kentucky’s Division of Securities, ceasing new registrations.

Kentucky became one of the five states that have considered that BlockFi’s feature wherein it allowed the users to borrow or lend any sum of crypto as a violation of the state’s laws. As a result, the members of the Division of Securities have instructed the organization to cease operations.

The instructions do not forbid the organization to put a stop to the currently operational accounts but have forbidden BlockFi to register new users to Interest Accounts. This means that the firm won’t be accepting new applications for the Interest Accounts registrations.

Interest Accounts violated laws

According to the announcement by the Division of Securities, the BlockFi Interest Accounts have breached security laws while providing the services of lending and borrowing. To these allegations, BlockFi has acceded to the requests of the authorities.

The problem with these accounts stemmed from the fact that if a person was depositing cryptocurrencies, the firm earned money from the crypto being deposited.

BlockFi seeks Series E funding

Although these regulations from about five states have got the company pinned down, BlockFi has still been in the pursuit of Series E funding from various institutional investors as there is a possibility that the organization might be holding a public offering in the near future.

The Series E round was supposed to end this week, but as of now, it is not public whether the firm has been able to gather funding or not. The regulations on cryptocurrencies and exchanges have tightened, which is considered a positive sign.

Is a New Bitcoin Bull Cycle on the Horizon? Kraken’s Dan Held Looks at BTC’s Trajectory

Dan Held, the director of growth marketing at crypto exchange Kraken, is predicting what’s next for Bitcoin in 2021.

In a new issue of The Held Report, the Kraken executive credits the 2013 bull cycle with catapulting Bitcoin (BTC) into “mainstream visibility.”

“It [Bitcoin] started the year [2013] at $13, had a spike to $260, then retraced to ~$80 for nearly 6 months until the winter, when it surged again to ~$1,200.”

 

Held says that the circumstances for Bitcoin are far different in 2021, citing more BTC holders, a massive trading infrastructure and a regulatory structure. Bitcoin’s current price action, however, appears to be mimicking its price action from nearly a decade ago, according to Held.

“As you can see, it is eerily similar with an intense first bull run, then an extended pullback, with one last bull run at the end.”

Source: Dan Held

According to Held, if Bitcoin is closely following its 2013 path, the flagship cryptocurrency will likely chop sideways for a bit longer before taking off in the last quarter of 2021.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Wealthfront to Offer Cryptocurrency Exposure to its Clients Through Grayscale

The financial institution Wealthfront announced it would expand its menu of digital asset investments by including Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE). Additionally, the company would provide more solutions to its customers with cryptocurrencies different than BTC and ETH.

Wealthfront Customers Can Now Invest in GBTC and ETHE

The California-based investment provider Wealthfront with more than $25 billion in assets under management, revealed in a recent blog post that its users can now diversify their portfolios by allocating funds in Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).

The clients would neither need wallets to take advantage of the service nor be required to open an account in a cryptocurrency exchange.

However, Wealthfront warned that such investments can be risky and more volatile than most ETFs and would limit the initiative. With that being said, investors would not be able to allocate more than 10% of their total portfolios into GBTC or ETHE.

The company also expanded its menu of ETFs and assured its nearly 440,000 users that soon it would offer even more cryptocurrency options:

“For example, you can now choose from a bigger selection of ARK ETFs, pick ETFs that are specific to industries like cannabis or self-driving cars, or choose from a larger pool of socially responsible investments. The choice is yours.”

GBTC Can Surpass The Largest Gold ETF

Grayscale is the largest digital asset manager that enables institutional investors to receive exposure to various cryptocurrencies without having to worry about storing or managing their funds. The company has enjoyed a massive increase in clients in the past year and a half, with GBTC taking the most substantial portion.

In fact, the growth of the Bitcoin Trust prompted some to believe that it could actually surpass the SPDR Gold Shares (GLD) – the largest gold-tracking ETF.

The difference between the two was significant in the middle of last year when the GLD was riding high with its AUM exceeding $80 billion while the GBTC was struggling beneath $5 billion. Yet, as institutions opened their minds to bitcoin and started accumulated massive portions, the gap began to close. At the end of 2020, the Grayscale Bitcoin Trust skyrocketed to about $20 billion.

2021 started even more impressively for GBTC as its AUM neared $40 billion. Somewhat expectedly, this expansion caused many experts to believe that the Grayscale Bitcoin Trust can soon outweigh the GLD.

However, according to a recent analysis, institutional demand for Bitcoin and Ethereum investment products has  started to slow down, and surpassing the SPDR Gold Shares now seems less likely:

“Between observations of the GBTC premium, net outflows from the combined Purpose and QBTC ETFs, and a stagnant Coinbase balance, institutional demand appears to remain somewhat lackluster.”

Bitcoiner Uses Portable Mini Rig to Mine BTC at Starbucks

Recently, Idan Abada, the owner of an online store (“Bitcoin Merch“) that specializes in crypto mining equipment, shared on TikTok a video of him using “free” electricity at a Starbucks cafe to mine Bitcoin on his laptop via a custom mini mining rig. In this TikTok video, we see Abada, who lives in Los Angeles, […]

Many Crypto Experts Believe Ethereum Will Overpower BTC

Over the past week, talk surrounding bitcoin has been invigorated considering the world’s number one digital currency by market cap has shot up to just under $40,000 for the first time in well over a month. As good as the news is, it is easy to allow bitcoin to overshadow Ethereum and many other heavy hitters within the crypto space, but one panel of experts refuses to turn away from competing altcoins.

Ethereum Is Climbing Up the Financial Ladder

Ethereum is the second largest cryptocurrency by market cap and the number one coin going head-to-head with bitcoin. At the time of writing, the asset is trading for approximately $2,300 per unit, and the experts in question say that the currency could potentially double its present price to about $4,600 by the end of the year. They are rather confident that Ethereum will potentially leave bitcoin in the dust over the coming months.

One of the panel members is Daniel Polotsky, the founder of crypto ATM company Coin Flip. In a recent interview, he said:

Ethereum’s price largely follows bitcoin’s halving cycles, although that relationship may begin to decouple as time goes on, and as Ethereum continues to develop use cases that bitcoin cannot achieve. Its price may grow at a faster rate than bitcoin’s.

One of the reasons Ethereum remains so popular has to do with its smart contract capabilities. The network offers the technology necessary to create a wide array of decentralized applications (dapps) and many of the new digital tokens entering the space.

Furthermore, ETH has undergone a few changes with the release of ETH 2.0, set to occur later this year. For one thing, several Ethereum tokens that have been put out of commission are set to be burned, which according to co-founder Vitalik Buterin, will make the network safer and far more efficient.

Forrest Przybysz – senior crypto analyst at Token Metrics – agrees, commenting:

Ethereum’s proof of stake later this year or early 2022 will result in Ethereum’s supply becoming deflationary and will be equivalent to multiple bitcoin halvings [cuts to bitcoin’s supply of new tokens] in terms of supply restriction. This will make it a better store of value than bitcoin in addition to all the utility it provides that bitcoin does not have.

A final complement came by way of Martin Frohler, the chief executive of crypto brokerage Morpher. In a statement, he said:

Ethereum has the potential to power the future global financial infrastructure.

Not All Thoughts Are Good

Despite all the positive vibes, not everyone on the panel was crazy about Ethereum, and some even felt that the asset would never amount to anything when compared with bitcoin. John Hawkins – a lecturer at the University of Canberra in Australia – stated:

I think Ethereum is a speculative bubble and will get dragged down by bitcoin.

The post Many Crypto Experts Believe Ethereum Will Overpower BTC appeared first on Live Bitcoin News.

Central Bank Governor: South Africa’s Digital Currency Study Ongoing

South African Reserve Bank (SARB) governor, Lesetja Kganyago, has once again confirmed that the central bank is presently studying the feasibility of issuing a digital currency. In his remarks at the SARB’s annual general meeting, governor Kganyago suggested his organization has embarked on this study to keep abreast with the growing trend of central banks that are studying CBDCs.

Retail CBDC

In the past few years, several central banks including a few in Africa have similarly announced their CBDC studies. Already, the central banks of Ghana and Nigeria have both revealed they will start piloting their respective digital currencies in the second half of 2021.

However, as the recent Mybroadband report quotes Kganyago explaining, the SARB’s e-rand study will also seek to understand the feasibility of issuing the CBDC for retail purposes. Kganyago explained:

The objective of the study is to investigate if it would be feasible, appropriate and desirable for the SARB to issue a CBDC to be used for retail purposes, complementary to cash, in South Africa.

Crypto Regulation Imminent

Kganyago’s confirmation of SARB’s study of the CBDC comes as South Africa readies to regulate digital currencies. As reported by Bitcoin.com News, a working group known as the Intergovernmental Fintech Working Group (IFWG) recently published a position paper that recommended the regulation of crypto service providers.

Already, several South African banks are blocking clients from using buying cryptocurrencies on overseas platforms. According to reports, this action by banks is being made at the behest of regulators who want the country’s exchange control rules to be extended to include cryptocurrencies.

Meanwhile, no date has been given as to when SARB is expected to complete its study and when the central bank expects to start piloting this.

What is your view on this revelation by the SARB governor? You can tell us what you think in the comments section below.