Bitcoin Has Only Had One Other Rounded Top, And a Major Correction Followed

If the current price action is a top formation, then it doesn’t match the sharp spikes Bitcoin and blow-off tops the cryptocurrency is known for. Only one other time has a comparable rounded top formation appeared on BTCUSD price charts over the last ten years. And when it happened, a major correction followed.

Should the first-ever cryptocurrency fail to pump soon and prove this trading range isn’t a top, then another collapse could be next.

When Will The Confusing, Sideways Trading Range End and Crypto Break Out?

The current Bitcoin price action has the crypto market and its participants confused. The indecision is reflected in both the sideways price action and the doji on the June monthly close.

Volatility in the normally notoriously explosive asset class has reached record lows. The cryptocurrency rarely stays in this tight of a trading range for very long. When it does eventually break out, a powerful, over 20% move follows, according to data.

Crypto analysts review past price action in Bitcoin seeking clues to how current and future price movements may play out.

Related Reading | Bitcoin Monthly Shows Indecision, Data Reveals The Shocking Aftermath of Past Doji

Fundamentally, Bitcoin has never been healthier. The cryptocurrency’s halving just passed, and records are being set for the fewest BTC moved in years. A number of key indicators are “screaming buy.”

Technically speaking, the cryptocurrency could be on the verge of its next long-term uptrend. Or, another crash could be on the way before that happens.

And if the current price action is a slowly rounding top, it marks only the second structure of this kind in the asset’s history. Only one other time did Bitcoin trade within a similar range and timeframe, and a massive correction followed.

Bitcoin Ditches Sharp, Blow-Off Tops For Rounded Formation, Last Time a Dangerous Drop Followed

The leading cryptocurrency by market cap is at an impasse. A new tool indicated that Bitcoin’s next bull run was here, but the pandemic had other plans. Now, cases of the outbreak are skyrocketing across the globe, putting the crypto market at risk of another steep selloff.

The last panic-driven selloff on Black Thursday cut Bitcoin price in half within 48 hours. The move shocked the investment world as record losses were around every turn.

While the asset has since recovered alongside the stock market, as cases spike again, there’s more danger and risk ahead.

Coinciding with this concerning increase in cases and a return of fear, Bitcoin is ready for a decision to be made.

The asset has been trading sideways for a total of 63 days within a 20% range. The only other instance of a rounded top in Bitcoin’s history that traded within a similar range and timeframe, resulted in a shocking drop.

bitcoin btcusd rounded top

The drop resulted in yet another lower low in Bitcoin and a deeper dive into an extended bear market.

Such a scenario, given Bitcoin’s fundamental health and the hyperinflation that is coming, is unlikely. However, Bitcoin must prove that this isn’t a long, drawn-out rounded top.

This type of rounding top formation exhausts buyers at high levels, causing the drop to be that much more significant. Fewer buyers are willing to step in on the way down after buying at a loss above.

Related Reading | Fund Manager: If Black Thursday Didn’t Shake Out BTC Holders, Nothing Will

It could be the catalyst necessary for a larger, more effective shakeout of the strongest holders.

A rounded top here at current prices would result in a lower high. The Black Thursday drop following the fall to $6K in December 2019, acted as a lower low.

A lower high and a lower low is the definition of a downtrend forming. If Bitcoin cannot set a new high, a lower low may be coming, and this rounded top could be the reason.

XRP Tanks Compared To Crypto Counterparts Bitcoin And Ethereum, But Why?

XRP spent the last several years as the worst performer in the cryptocurrency market. And even though the altcoin has been beaten and battered, it has recently sunk even lower compared to Bitcoin and Ethereum.

Why exactly is the altcoin commonly referred to as Ripple, so severely crippled and unable to gain positive momentum?

XRP Underperformance Against Bitcoin and Ethereum Reaches New Extremes

For two years running, XRP has been among the worst performers in the cryptocurrency space, alongside XLM.

The previously third-ranked cryptocurrency reached an all-time high of over $3.50 per token following Bitcoin’s peak in 2017. But since then, it has fallen so hard that the stablecoin Tether has knocked it out of the third-ranked spot.

The altcoin remains over 94% down from its record set in early 2018 on the XRPUSD pair. On the XRPBTC pair, the asset is currently down 91%.


Ripple XRPBTC & XRPUSD Comparison | Source: TradingView

The cryptocurrency has reached extremely oversold conditions, yet any glimmer of a rally is immediately sold down. Even Ripple execs committing to cease selling themselves hasn’t had any positive impact on price action.

Related Reading | It’s Official: Tether Flippens Ripple After Recent Crypto Crash

Negative sentiment continues to build. It’s led the altcoin, now in fourth place in the top list of crypto asset by market cap, to underperform Bitcoin and Ethereum over the last 30 days. But what is causing the gross underperformance in Ripple, and the extreme deviation between it and other assets?

 xrp btc eth usd

Ripple Bitcoin Ethereum Comparison | Source: TradingView

Why Are Whales Accumulating The Crypto Market’s Worst Performer?

The altcoin known as Ripple over the last 30 days, has fallen nearly 14% according to data. During the same timeframe, Bitcoin dropped over 3%, and Ethereum, just over 4%.

The three long-time top crypto assets are typically tightly correlated. When one pumps, so do the others. Especially on USD trading pairs.

Then why exactly is XRP falling so sharply against BTC and ETH by comparison?

A large supply of the altcoin held by PlusToken scammers is said to have been mixed recently, and stealthy selling could be responsible for the continued drawdown. However, these scammers are said to have Ethereum and potentially more Bitcoin to sell as well.

Related Reading | Ripple Effect: Crypto Whales Buy Up A Sea of Small Fish Selling

Sentiment could simply be this bad in XRP holders, who have suffered far worse than most other altcoin bagholders.

Watching Tether “flippen” the asset, and Bitcoin and Ethereum surge could be causing mass capitulation amongst holders of the altcoin.

But while any capitulating small-time fish are selling off their XRP at extreme lows, the largest account holders – whales – are absorbing the selling.

Data shows that the largest under 1% of wallets are increasing their holdings, while smaller wallets dump theirs.

Even despite the ongoing downtrend in XRP, even reaching new depths, the reason why investors continue to hold out hope can be seen below.

xrpusd xrp

Ripple XRPUSD Weekly | Source: TradingView

Although the cryptocurrency has spent nearly three full years in an over 90% downtrend when it does breakout, it is unstoppable.

In less than a year, XRP rose over 50,000%. That’s not a typo, it’s one of the largest gains ever recorded in cryptocurrency history. If this happens again, anyone selling now at these lows are going to experience something far more painful than the downtrend has been.

Bitcoin Supply Metric Reaches Low Last Seen Ahead of Historic Bull Market

Momentum is building in Bitcoin. The asset has never been healthier fundamentally, and its most important indicators are all screaming buy.

On-chain activity, hash rates, and BTC supply metrics also support this. In fact, one BTC supply data point has now reached a level that last time led to the greatest bull market in crypto history.

Bitcoin: First Of Its Kind Financial Asset Requires Unorthodox Fundamental Analysis Tools

Bitcoin is an asset unlike anything else that exists today. It’s just over a decade old. And while many cryptocurrencies were made in its image, none are privy to the same level of acceptance and adoption.

Unlike stocks that derive their valuations from things like company revenue, crypto assets create value through utility and their networks.

Because the value of the native asset relies on the underlying protocol, fundamental analysis looks at the health of this network. This involves hash rates, the cost of production, mining difficulty, transactions, and supply.

Related Reading | Fund Manager: If Black Thursday Didn’t Shake Out Bitcoin Holders, Nothing Will

The beauty of blockchain that Bitcoin birthed with its creation, is that all distributed ledgers are fully transparent. This means that anyone can look up public transactions and wallet data.

Wallet addresses may not be easily tied to individuals. But the way blockchain works, the total value stored and all transactions flowing in and out of the wallet are visible.

Advanced tools have been developed to monitor blockchain data and the movement of BTC through addresses and across the network. Understanding if wallets, particularly the largest wallets, are holding BTC for the long term, can provide insight into coming trends.

If more large investor wallets are increasing in supply and aren’t moving that supply in months, it could be a sign of an uptrend brewing. And that’s exactly what data is showing now.

Just Over One-Third of BTC Supply Has Moved in Last Year, Lowest Since Last Bull Run Began

According to BTC supply data, only 38.5%, or just over a third of all BTC supply, has moved in the previous year. The remaining nearly two-thirds of circulating BTC supply, haven’t moved in over a year.

This metric has now fallen to a level not seen since 2016, just ahead of the bull market that propelled Bitcoin into the public eye.

Related Reading | The Crypto Market’s Most Accurate Tool Says New Bitcoin Uptrend Is Here

Actively moving BTC supply dropped to this bullish low in 2016 and stayed grinding near the low until mid-to-late 2017. Then, Bitcoin prices reached highs too attractive not to sell, and the asset started moving again.

During that time, thebitcoin btc supply cryptocurrency took the world by storm and rallied from $1,000 to $20,000.

This data indicates that more Bitcoin investors and wallets are holding in anticipation of the next bull market. Not even the Black Thursday collapse was able to shake out these strong hands, and nothing possibly will.

Why The Hot New Trend In Crypto Is The Twitter Hashtag Emoji

crypto twitter hashtag emoji
The “Crypto Twitter” hashtag emoji has become all the rage across the industry in recent weeks, but why? Is it just to jump on a trend, or is it to gain valuable brand visibility? Or is it something more altogether? The Crypto In Crowd: Binance Joins Bitcoin and CRO With New Twitter Hashtag Emoji Twitter CEO Jack Dorsey is a well-known Bitcoin backer, and also heads the company Square Inc. Square offers the popular payments app CashApp, which acts as a fiat payment gateway for Bitcoin buying. Dorsey has gone on record saying he sees the cryptocurrency someday becoming the currency of the internet. The outspoken CEO has taken several steps to see this through. In early February 2020, Dorsey revealed in a tweet that Bitcoin now had a hashtag emoji. Twitter users could include within their character strapped tweets a hashtag of #Bitcoin. Inputting the hashtag also results in an emoji for the cryptocurrency. The crypto community had been expecting perhaps Ethereum, Ripple, or Tether to arrive next. RELATED READING | REDDIT’S NEW ETHEREUM TOKEN HAS REACHED 10K FORTNITE USERS SINCE ROLLOUT Months later, in June 2020, crypto-focused debit card provider was the next crypto asset to get an emoji of its own. The company debuted it alongside a giveaway and a 4th-anniversary celebration. Typing the CRO# hashtag would result in the emoji. Today, top crypto exchange Binance revealed it too now has a crypto emoji on Twitter of its own. The Changpeng Zhao-run organization has its hands in everything, recently acquiring CoinMarketCap and growing its stronghold over the industry. This latest move to gain an emoji is just another part of its strategy. And it explains why crypto Twitter hashtag emoji are becoming the hottest trend in the space. How Including an Emoji On Social Media Boosts Big Business Binance getting a Twitter hashtag emoji isn’t just the crypto exchange jumping on the bandwagon. Including emoji in social media posts has been statistically shown to increase user engagement. Data shows that including an emoji within a tweet can increase engagement by over 25%. Using emoji on Facebook yields even better results, at an increase of over 57% ‘Likes.’ It can also increase comments and shares on Zuckerberg’s platform by 33%. RELATED READING | IRONY OR CRUSHING THE COMPETITION? FACEBOOK CONTINUES TO BLOCK CRYPTO ADS, DESPITE LIBRA EFFORT But it’s not just to increase engagement, it’s also to boost brand visibility. By having a logo acting as a hashtag emoji on Twitter, the brand will immediately have more visible exposure to its audience. Emoji are also a universal language. Users speaking any language at all will instantly understand what the tweet is regarding. Beyond that, it’s a fun way for brands to interact with their users and more easily grab their attention in Twitter feeds. Considering the impact that Twitter emoji can have for brands of any kind, more crypto companies will likely jump on this trend moving forward. Featured image from Shutterstock.

Billions of Dollars May Be Waiting to Enter Bitcoin, Stunning USDT Data Shows

Tether has long been used as a flight to stability when Bitcoin crashes. The influx of capital reentering the cryptocurrency market also helps to drive up valuations during bull runs.

With over $9 million sidelined and climbing, could all of this capital be waiting to enter Bitcoin at the first sign of a breakout? Or has Tether developed new use cases that are fueling its tremendous growth in 2020?

Tether’s Unstoppable, Growing Market Supply Dominance Over Crypto

Cryptocurrency stablecoins like Tether, USD Coin, and Paxos Standard all are tied 1-to-1 to the dollar. Each asset is backed by a corresponding dollar, or an equivalent valued asset.

By acting as a stable peg to the dollar, these assets have long been utilized as a safe haven during crypto market volatility. During drawdowns – the majority of the last three years – stablecoins are especially valuable to crypto traders.

Moving capital from Bitcoin, Ethereum, Ripple, and other altcoins to stablecoins can protect wealth from loss. It also keeps capital in the cryptocurrency market, rather than cashing out to fiat.

Related Reading | It’s Official: Tether Flippens XRP After Recent Crypto Crash

All of this capital remains on the sidelines waiting for an uptrend to begin, then crypto traders will use the USDT to take positions.

If all of this USDT is sitting waiting on the sidelines to make its way into BTC, it could result in a major boost to Bitcoin’s next bull run.

The Tether market cap has now surged past $9 billion. In the comparison chart below, the growth in Tether’s market cap has begun to outpace growth in Bitcoin price.

bitcoin btcusdt btc usdt tether

Bitcoin BTCUSDT Tether Market Cap Comparison | Source: TradingView

Is This Money Sidelined Waiting For Bitcoin, Or Has USDT Found A New Use Case?

Over time, stablecoins have become more valuable than the dollar they are tied to. Dollars are stable, however, they are often costly to move and require an intermediary to do so.

Because stablecoins are cryptocurrencies built on blockchains like Omni-layer Bitcoin, Ethereum, and others, they make moving money fast, easy, and cheap. And because they are tied to the dollar, the stability that earned these assets their names remains.

Related Reading | The Crypto Market’s Most Accurate Tool Says New BTC Uptrend Is Here

This gives them a flexibility that the dollar cannot yet match, and is perhaps becoming a strong use case outside of a safe haven during downtrends.

Tether’s growth may be less tied to Bitcoin than it once was. Regardless of any bullish moves in Bitcoin, much of the USDT supply could remain parked there for whatever reason.

However, not all of it would remain in the stablecoin, and at least a portion would flow into the first-ever cryptocurrency. Along with new fiat coming in, institutional money finally entering the market, any inflow of stablecoins could be the final ingredient missing for Bitcoin’s next bull market.

The Crypto Market’s Most Accurate Tool Says New Bitcoin Uptrend Is Here

The crypto market is at a pivotal moment. A new uptrend in Bitcoin was starting prior to the Black Thursday selloff, and now prices are consolidating below a critical level.

A breakout all but guarantees a new bull market for cryptocurrencies. And now, one of the most accurate tools used in crypto technical analysis is signaling that a new uptrend is here.

A New Cryptocurrency Bull Market May Finally Be Here

Bitcoin price continues to trade sideways, following a V-shaped recovery from the Black Thursday bottom below $4,000.

Prior to that catastrophic collapse a new indicator developed by Bitcoin expert Willy Woo, shows that the crypto asset was ready for a new bull market.

Related Reading | Bitcoin Bull Run Was Here, But White Swan Pandemic Put It On Lockdown

What he calls a “white swan” event by way of the pandemic, got in the way and set the cryptocurrency back a couple of months.

However, another indicator that’s been used with regular success across the cryptocurrency market for spotting important reversals, is now pointing to a new, long-term uptrend.

BTCUSD 6-Month Price Chart: TD Sequential Signals New Uptrend In Bitcoin

The TD Sequential indicator is a technical analysis tool created by market timing expert Thomas Demark. The tool is used for trend recognition, as well as for watching for a sequence of candles that could result in a reversal.

The TD Sequential was popularized in the crypto industry by controversial internet personality Tone Vays. Love him or hate him, the TD Sequential has been extremely accurate.

It called Bitcoin’s top at $20,000, and again at $14,000, and in February 2020 ahead of Black Thursday. It also signaled a reversal just ahead of the asset bottoming the last two Decembers.  It has also worked well with altcoins, like Ethereum, Chainlink, and more.

Related Reading | Bitcoin Holds Bullish On Key Technical Indicator, But Trend May Be Turning

Reversals are likely when the tool reaches a 9 or 13 on a specific candle sequence. If the sequence is broken before the countdown has finished, the count starts all over again.

Given its accuracy, crypto traders have come to give it a lot of weight when making decisions or planning a trading strategy. But the tool can also be used for trend recognition.

bitcoin crypto td sequential indicator accurate

Brave New Coin Bitcoin Liquid Index 6M Price Chart | Source: TradingView

A green 1 candle signals the start of a new upward trend. This green 1 signal has now appeared on the 6-month timeframe on BTCUSD price charts.

Higher timeframes hold the most significance in technical analysis, but such long timeframes aren’t often looked at.

If Bitcoin price can hold at current levels for the next few hours, the 6M candle will close and the green 1 will confirm. If it does, it could be the start of another long-term uptrend in Bitcoin and crypto.

Bitcoin Monthly Shows Indecision, Data Reveals The Shocking Aftermath of Past Doji

Bitcoin price has traded sideways for the entire month of June. The lack of conviction by both bears and bulls has resulted in a doji currently on the monthly timeframe on BTCUSD charts.

If the cryptocurrency closes tonight around current levels, the doji will be confirmed. However, past data suggests that this isn’t a bad thing for Bitcoin, and could precede a powerfully bullish move.

Market Cycles, Repeating Patterns, And More: Crypto Analysts Rely on Historical Data For Decision Making

Bitcoin is a relatively young asset in the financial world at just over a decade old. Due to this, analysts only have a small sample size in which to compare current price action against historically.

Things may not play out exactly the same way a second or third time in the land of cryptocurrency. However, markets are cyclical, and history often repeats.

Fractals, or repeating price patterns, exist for those very reasons and appear with much frequency.

Other repeating chart patterns, such as triangles and wedges, can tip traders off as to what the next move may be. Japanese candlesticks also serve this purpose, making them popular with traders performing technical analysis.

Related Reading | This Trend Measuring Tool Says Bitcoin Drop Is Only Just Getting Started

These candlesticks also form patterns or can act as signals all by themselves. Doji are just one type of singular Japanese candlestick that can provide powerful clues as to what comes next.

Doji show indecision in markets, and either act as a prelude to a reversal, or strong continuation. Occasionally, doji will form in a cluster, dragging out indecision until an explosive breakout occurs.

One of these indecision candles will form on monthly BTCUSD price charts if the cryptocurrency continues to trade at current levels.

Bitcoin Monthly Doji More Likely To Result In Continuation To Upside, Data Shows

Doji candles and indecision aren’t always a bad thing. They often come at the top or bottom of a trend just as that previous trend reverses. Doji can act as an important signal for traders to pay attention and watch for a breakout.

But if that breakout is in the direction of the prior trend, doji can be a prelude to strong continuation in the primary direction.

Bitcoin price has been trending up since the Black Thursday bottom in mid-March. Highlighting the importance of monthly candle closes, the following month in April closed as a bullish engulfing.

Bullish engulfing candles signal a short-term trend reversal. What comes after is what turns things from short to long term. May closed green, and now June’s consolidation and indecision are resulting in a doji.

But data from past doji candles within a 3.5% or less range, have resulted in a breakout to the upside ore than 50% of the time. Bitcoin is working on its tenth ever doji on monthly timeframes within a 3.5% or less range.

bitcoin doji monthly data

Bitcoin BTCUSD Monthly | Source: TradingView

Five of the prior nine times have resulted in a long-term move to the upside. Two of the instances, resulted in a massive move to the upside, followed by a bearish reversal.

The final two times, occurred shortly after a new peak was set, and resulted in a long-term downtrend.

Related Reading | Bitcoin Holds Bullish On Key Technical Indicator, But Trend May Be Turning

Thus far, all negative performing doji have resulted in a break to the upside. If Bitcoin closes at current prices below $9,200, the monthly close will fall into that negative category.

Things could change within the next several hours before the monthly close occurs, however, what comes following the close is what matters most.

Fund Manager: If Black Thursday Didn’t Shake Out Bitcoin Holders, Nothing Will

Markets are still reeling from the impact of the pandemic and the resulting Black Thursday selloff. However, one fund manager says the powerful shakeout demonstrated the strong will of Bitcoin investors.

If that violent selloff driven by panic and fear didn’t cause holders to sell, what might it take?

Remembering The Most Violent Shakeout In Crypto History

At the start of 2020, Bitcoin and the rest of the cryptocurrency market went on a tear. Bitcoin had exploded out of consolidation from the previous winter, and the decentralized finance movement brought renewed interest to the space.

Ethereum closed a record seven weeks bullish in a row, while Bitcoin retested and even held above $10,000. Altcoins like Chainlink set a new all-time high. Meanwhile, the stock market was also setting records of its own.

All of this came to a screeching halt, and a historic crash followed once the world learned of the gravity of the pandemic. The stock market went from setting record highs, to closing the worst quarterly loss in history.

Related Reading | Bitcoin Bull Run Was Here, But White Swan Pandemic Put It On Lockdown

Bitcoin, which was poised to finally break out into a new bull run, experienced a severe drop of over 50% in 48 hours. Days prior, Bitcoin was trading above $10,000. By the time the dust settled, the cryptocurrency traded below $4,000 briefly before a bounce occurred.

A cascade of liquidations of high leverage traders on the margin trading platform BitMEX further fueled the violent drop. The entire crypto industry watched in shock, fearing that Bitcoin may actually hit zero as pundits and naysayers had claimed.

Turning off BitMEX saved the day, and the asset has been on a steady, V-shaped recovery since. But the memory of that day will always stand out to any market participants that lived through it.

If Black Thursday Didn’t Break Bitcoin Holders, What Will It Take?

Clearly, it took plenty of selling to drive prices that low. However, wallets holding BTC are rising to the highest levels ever.

Data shows that crypto investors holding for a year or more has reached a new all-time high of 62%. The last time such levels were achieved, was prior to the greatest bull run in crypto history.

Related Reading | The Amount of Bitcoin That Hasn’t Moved In a Year Hits an All-Time High

The steady increase in the metric has prompted a well-known crypto fund manager to pose a “serious question.” They ask, “if a round trip to $4,000 and back in March” did nothing to break the strong hands of crypto holders, then “what will?”

The fund manager may be right. After withstanding such a sharp decline in a single day, there may not be anything that could cause crypto holders to fold.

As far as what may do so, the clear answer is a lower low. The current $3,200 bottom has been untested since early 2019. Although the Black Thursday selloff came close to returning to that level, it fell short, stopping at $3,800.

Bitcoin returning to $3,200, or possibly breaking below that number, would strike fear into the hearts of any crypto investors – new or old.

Hyperwave theory and other price action concepts suggest Bitcoin needs to retest its former top at just above $1,000 in order to have bottomed. There is untested support in this area, making it a prime target for a retest.

Reaching any of these zones could be the only thing to cause a shakeout at this point. But that also may never happen, and those holding now will be handsomely rewarded.

WHO’s Scary Warning May Set Back Bitcoin’s Bull Run, Here’s Why

bitcoin btcusd btcusdt xbtusd pandemic who world health organization
The World Health Organization has issued a terrifying warning that the “worst” of the pandemic “has yet to come.” The first wave brought record devastation to Bitcoin and the stock market, and investors now fear another crash. If the worst has yet to come for the outbreak itself, could the market experience an even steeper selloff alongside the resurgence of cases globally? World Health Organization Warns of Pandemic Spreading, Worst Is Yet To Come Six months have passed since the pandemic first emerged, and life is still not back to normal. Nor have markets fully recovered from the selloff called Black Thursday in hindsight. As the world learned of the coming quarantine and health care scare, panic spread across markets and caused a collapse. The stock market went from setting an all-time high the month prior to the worst quarterly close on record. Bitcoin and other cryptocurrencies fell by 50% or more in 48 hours. Chaos was everywhere, and it was just the start. RELATED READING | DEUTSCHE BANK WARNS OF DISASTER WORSE THAN PANDEMIC THAT COULD COMPLETELY KILL BITCOIN Over time, stimulus money offered by the Federal Reserve and other global governments helped save economies from disaster. However, these efforts may not be enough to combat another wave of the virus. The pandemic isn’t going away. And even six months in, the World Health Organization chief isn’t optimistic things will improve before they worsen. “Although many countries have made some progress globally, the pandemic is speeding up,” WHO head Tedros Adhanom Ghebreyesus said at a briefing in Geneva, Switzerland. “The worst is yet to come. I’m sorry to say that,” Tedros added. His comments come as the pandemic reaches over 10 million confirmed infections and over 500,000 deaths. How could it possibly get worse? Bitcoin Bull Run To See Further Delay If Another Wave Of Selling Hits The Stock Market Cases spiraling out of control again in some parts of the United States during the initial stages of reopening isn’t promising. A return to even stricter lockdown conditions could be demoralizing for the public that has already gone through so much. Another wave of panic could be devastating for markets as well. The stock market’s V-shaped recovery could be in jeopardy. Another crash could make the structure form a W rather than a V-shape. RELATED READING | WELLS FARGO WARNS OF STOCK SHOCK FROM BIDEN WIN, HOW WOULD BITCOIN BEHAVE? In Bitcoin, the bull run everyone is waiting for could be delayed further. According to a new tool developed by an industry expert, Bitcoin was prepped and ready for a new bull run in early 2020. But the Black Thursday crash caused by the initial reaction to the outbreak and quarantine stopped it in its tracks. This is a new model I'm working on, it picks the start of exponential bull runs. 1) Bitcoin was setting up for a bullish run until the COVID white swan killed the party. 2) This model suggests we are close to another bullish run. Maybe another month to go. — Willy Woo (@woonomic) June 27, 2020 It could take another month or more for the asset to be ready again. During that time, the broader financial market could collapse under the weight of more fear and uncertainty. If stocks fall due to another wave of pandemic panic, Bitcoin’s bull run will have to wait a while longer as well. Featured image from Shutterstock.

These Altcoins Set a New ATH While Bitcoin And Ethereum Tank

Last week, Bitcoin price fell from a high of $9,800 to a low of $8,900. Ethereum fell over 10% from $248 to $215. But while these top crypto assets tanked, several small-cap altcoins not only surged but set records for a new all-time high.

What’s causing these underdog altcoins to rally while major crypto assets continue to struggle under the same market conditions?

Major Cryptocurrency Assets Bitcoin and Ethereum Continue To Struggle With Resistance

Bitcoin and Ethereum continue to struggle with resistance above $10,000 and $250 respectively. Worse yet, the two major cryptocurrency assets dominating the market, are now having a hard time with levels below that.

The weight of stock market uncertainty and a resurgence of cases of the pandemic has brought fear back to crypto.

The chances of a V-shaped recovery completing fade by the day. Instead, most major assets have done nothing more than set a lower high, which is a sign of a coming downtrend.

Related Reading | Brutal Drop In Altcoins Anticipated as Bitcoin Dominance Projected to Surge

A lower low could be next, confirming the existence of a deeper downtrend. The risk alone has put a damper on any bullish momentum the assets had at the start of 2020 and in recent weeks.

But while the most important crypto assets struggle, small-cap altcoins have been soaring under the same conditions and sentiment. But why?

crypto bitcoin ethereum altcoins altcoin

Ten Small-Cap Altcoins Set New All-Time High Records During Crypto Drawdown

Last week, while Bitcoin and Ethereum sank, small-cap altcoins not only surged, they set new records. According to data, ten different small-cap altcoins across six different exchanges set a new all-time high.

The list includes:

  • Universal Market Access (UMA)
  • Ren (REN)
  • DMM: Governance (DMG)
  • Synthetic Network Token (SNX)
  • Celsius Network (CEL)
  • THORChain (RUNE)
  • Reserve Rights Token (RSR)
  • pNetwork (PNT)
  • Balancer (BAL)
  • (ALEPH)

Not even a handful from the list crack into the top one hundred cryptocurrencies by market cap. Combined, all ten cryptocurrencies don’t even amount to $1 billion in market capitalization with just over $775 million total.

Aside from being a low cap altcoin, these assets have very few things in common. With little correlation, there seems to be no rhyme or reason as to why these crypto assets are pumping while Bitcoin and Ethereum sink further.

Related Reading | Altcoins Pumping on Cryptocurrency Exchange Listing Brings Back Memories Of Bull Market

The allure of opportunities elsewhere in the crypto market may be prompting profit-taking in Bitcoin and Ethereum. Another theory simply points to these low liquidity assets pumping through very little capital injection.

At under $1 billion in total capital, and with a couple of the projects amounting to just $1 million in market cap, it takes very little money to move the prices of these assets.

With such low market caps and trading volume, any activity in these assets could result in larger gains. Whales know this and could be utilizing the small-cap altcoins to bolster their BTC and ETH holdings ahead of an eventual breakout.

Profit-taking is said to flow out of small-cap altcoins eventually, into mid-cap altcoins. From there, money eventually makes its way back into major altcoins like Ethereum, then back into Bitcoin. That is when the bull market may begin, and then the cycle will repeat all over again.

Telegram (TON) To Return $1.2B From Failed Crypto, Will Investors Get a Refund?

The Securities and Exchange Commission stepped in and put an end to Telegram’s TON crypto token. This week, Telegram settled with the SEC for $18.5 million and intends to return the remaining ICO funds to investors.

But after commissions paid to venture capitalists and retail investor premiums, the refund process is likely to be a big mess. With so many loopholes and money changing through greedy hands along the way, will retail investors ever see a full refund?

Remembering the Historic ICO That Raised a TON of Money

Telegram is a private, “heavily encrypted” cloud-based instant messaging and voice over IP service. The messaging app is particularly popular with crypto users due to the privacy features offered. Accounts can even “self destruct” after a period of inactivity.

Its popularity with crypto users prompted the company to attempt to monetize the platform through the debut of a crypto protocol and token: TON, or Telegram Open Network.

Telegram raised over $1.7 billion from investors in the TON initial coin offering in 2018. Investors flocked to the TON token in droves.

Come October 2019, however, the United States Securities and Exchange Commission filed suit against the company for an unregistered securities offering.

Telegram refused to admit any wrongdoing but this week settled with the SEC for $18.5 million in fines. Telegram also agreed to return $1.2 billion worth of the remaining $1.7 billion in funds raised during the ICO.

But returning those funds, this far after the funds being raised and after changing through so many hands, will be messy.

Retail Investors May Never See Full Refund From Telegram Token Offering

Telegram’s TON initial coin offering, being a high-profile ICO, meant it had a more convoluted investment process than most others.

Typically, ICO investors would send BTC or ETH to a whitelisted crypto wallet address during a pre-sale phase. When the ICO launched, the newly issued tokens would then be deposited into a corresponding supplied crypto wallet.

With Telegram’s TON, according to a well-known crypto investor, three-quarters of that sum was “syndicated downward toward retail investors” at a premium.

Along the way, venture capitalists offering exposure to the ICO to clients would have taken commissions. VCs often take high commissions – commissions that were taken some two years ago at this point.

Even if the accounting nightmare is ever sorted, it will likely be the smallest time retail investors that lose out the most in the fallout of the historic ICO. Retail investors may never get all of their cash back, if at all.

This issue alone shines a spotlight on the reason why the SEC seeks to protect investors from such unregistered securities offerings. More protections in place could have prevented the accounting nightmare in the first place.

With ICOs now a thing of the past, crypto investors are a lot safer because of it, and the market much better off without them.

Bitcoin Holds Bullish On Key Technical Indicator, But Trend May Be Turning

Bitcoin price closed its weekly candle last night at roughly $9,100 on the BTCUSD trading pair. The weekly close marks the fifth consecutive weekly close above the Ichimoku cloud.

During the last bull market, it was holding above this key level that sent Bitcoin skyrocketing. However, there are some signs that the trend may be turning down one more time before the uptrend begins.

Bitcoin Price (BTCUSD) Closes Fifth Consecutive Weekly Above the Cloud

Bitcoin price has been trading sideways now for nearly two full months. Repeated attempts to break through resistance above $10,000 have failed.

But just as many attempts to push Bitcoin to the downside have gotten bears nowhere. Each push down has wicked into the Ichimoku cloud on weekly timeframes.

Last night’s weekly close, has marked the fifth week in a row that the cryptocurrency has held above the key level. Wicks into the cloud, also called the kumo, signal that buyers have been ready and waiting to buy up each dip.

Related Reading | Crypto’s Most Important and Profitable Buy Signal Is Just About to Trigger 

Comparing the current price action holding above the cloud to the previous bull and bear market cycle shows similarities. If the asset can hold firm above the Ichimoku cloud on weekly timeframes, it could provide the base for a new uptrend to begin.

After Bitcoin held above the cloud on the weekly in late 2016, the cryptocurrency never looked back. Holding above it again here could result in a trip to the moon next.

bitcoin ichimoku cloud weekly kumo

Bitcoin Ichimoku BTCUSD Weekly | Source: TradingView

Ichimoku Indicator Signals Retest of Support Before Uptrend Confirmation And Bull Market Breakout

But before Bitcoin embarks on a new uptrend, a steep crash could be next. However, if the price action matches the last cycle, it’ll be the last chance to buy Bitcoin cheap before the bull market starts.

In the chart above, Bitcoin can be seen holding strong above the kumo on weekly timeframes. Just ahead of the Black Thursday collapse, the cloud couldn’t hold resulting in the crash.

This time around, the asset has held several weeks in a row. However, the indicator could be suggesting a drop soon.

Related Reading | This Trend Measuring Tool Says Crypto Drop Is Only Just Getting Started 

This most recent weekly candle has closed below the senkou span A, in blue. When the senkou span A crosses above the senkou span B, it signals an uptrend is in effect.

Price crossing below the senkou span A could hint that the uptrend is reversing, but the two lines would need to cross to confirm the trend change.

The cloud itself is also potentially pointing towards a crash. Ahead of the current price action, the cloud is twisting. A kumo twist also often indicates a trend change. A kumo twist is also a weak point in the cloud, that price can more easily pass through.

A fall through the kumo in the coming weeks cannot be ruled out. Bitcoin price breaking below the kumo, even temporarily, would likely send the asset to the senkou span B to test as support.

bitcoin ichimoku cloud weekly kumo

Bitcoin Ichimoku BTCUSD Weekly | Source: TradingView

Senkou span B is currently resting around $7,100. A retest of this zone as support confirming it as such could start the real bull market.

Zooming out further, ahead of Bitcoin’s 5000% rise after the cloud holding, it was breached quickly for a sharp decline and touch of the senkou span B. This held as support, and the biggest bull run in the asset’s history followed.

Wells Fargo Warns Of Stock Shock From Biden Win, How Would Bitcoin Behave?

bitcoin stock market biden presidential election
Past data shows that Bitcoin bull market breakouts typically happen following a US Presidential Election. However, Democratic party candidate Joe Biden has recently overtaken Trump in the polls – something Wells Fargo warns could shake up the stock market. And with Bitcoin tightly correlated to the stock market, a Biden win could be harmful to the leading cryptocurrency by market cap. But why? Wells Fargo Chief Strategist Warns of Stock Market Reaction To Joe Biden Win The United States presidential election is coming in just a few short months. Current and controversial President Donald Trump will face off against former Vice President Joe Biden. Biden served in the role under Barack Obama from 2009 to 2017 and was the 47th Vice President in the White House. Now Biden is looking to take on the top-ranking role in the country, and oust Trump from the White House after just one term. The economy may now be in trouble under Trump’s watch, though his presidency has done wonders for the stock market. A favorable tax environment and other corporate benefits have helped the stock market boom. RELATED READING | GROWING MISTRUST IN GOVERNMENT AUTHORITY MAY BOOST BITCOIN BUYING At the start of the year, major stock indices like the S&P 500, the Dow, and more set a new all-time high. But the pandemic caused a major shakeup in markets and dealt a powerful blow to the economy. It caused the stock market to set its worst quarterly close on record. Bitcoin also crashed over 50% in the madness. In these conditions, Biden taking over could make matters worse due to a poor tax climate and other changes potentially coming from a Democratic power change. Wells Fargo head of equity strategy Chris Harvey says that a Biden win is a major risk to the market. Harvey also says that the potential scenario isn’t yet “priced into the market,” according to comments made on CNBC’s Trading Nation. Brave New Coin Bitcoin Liquid Index Daily | Source: TradingView Bitcoin Correlation With S&P 500 Could Be Harmful Post 2020 Presidential Election The first-ever cryptocurrency has only existed a little more than a decade. But during that time, its seen three total US presidential elections. The two prior presidential elections sparked incredible bull runs in Bitcoin after the uncertainty settled. From the moment Trump took office, Bitcoin went on its strongest bull market ever. The asset peaked a year after Trump took office at $20,000. This next time, however, may not have such positive results if Wells Fargo is correct. RELATED READING | HOW THE 2020 US PRESIDENTIAL ELECTION MAY BE KEEPING BITCOIN AT BAY Bitcoin has been tightly correlated with the S&P 500 over the last several months. The S&P 500 is one of the most important US stock indices and a barometer to the country’s economic health. Recently, as the S&P 500 rises and falls, Bitcoin follows closely behind. If a Biden win drags down the stock market post-election or gets priced in pre-election, it could be harmful to Bitcoin. The cryptocurrency’s next bull market could be postponed further as a result. If not, as past data suggests, the election could be the one thing standing in the way of the next bull market. Featured image from Shutterstock. Charts via TradingView.

Bitcoin’s Most Important and Profitable Buy Signal Is Just About to Trigger

Despite falling prices, one of the most important and profitable buy signals in the history of Bitcoin is about to trigger.

Unless a sharp decline happens and miners powering the cryptocurrency protocol begin to capitulate, the signal is just days away from confirming.

Bitcoin Price Holds Above $9,000, Just Days Away From Most Important Buy Signal Triggering

Bitcoin price has traded sideways for the last month and then some. Volatility in the normally notoriously explosive cryptocurrency asset has reached shocking lows.

All signs suggest that the leading cryptocurrency by market cap is gearing up for a massive move. Perhaps one of its biggest ever.

Data suggests that when Bitcoin trades sideways and consolidates for this long, it typically moves over 20%. A pump usually follows a breakout, but the longer the sideways, the more dangerous the results.

Related Reading | Crypto Bull Run Was Here, But White Swan Pandemic Put It On Lockdown

The last two times volatility dropped this low, was prior to Bitcoin’s drop to its current bear market bottom at $3,200. Before that, kicked off the asset’s historic bull market and rise to $20,000.

The instance that resulted in the bull market, came just after the asset’s last block reward halving in 2016. The cryptocurrency is at a similar point in its market cycle.

More signs are suggesting that the asset may be ready for another breakout to the upside. Hash Ribbons, one of the most important and profitable signals ever, are just days away from triggering a buy signal.

bitcoin btcusd crypto hash ribbons buy signal

Hash Ribbons Buy Signal Kicked Off Last Bull Market, And An Over 3,000% ROI

There’s no arguing the importance of the Hash Ribbons indicator. The tool is yet another important Bitcoin fundamental analysis indicator designed by analyst Charles Edwards.

Edwards also created tools that look at cost of production, energy value, and much more.

These tools make up some of the most critical tools in Bitcoin analysis, especially form a fundamental standpoint.

Hash Ribbons signal that miners that power the network are capitulating. When that’s over, it signals a “buy.”

Related Reading | This Trend Measuring Tool Says Bitcoin Drop Is Only Just Getting Started 

Several times throughout cryptocurrency’s history have resulted in a significant upside following the buy signal triggering.

It triggered just ahead of Bitcoin’s rise from the bear market bottom to $14,000 in June 2019. It also triggered just ahead of the pump to $10,000 in early February, and again on the way up to current levels.

bitcoin btcusd crypto hash ribbons buy signal

Prior to those instances, the Hash Ribbons buy signal resulted in the last bull market. After the buy signal, Bitcoin price rose over 3,000 percent, reaching an all-time high of $20,000.

Unless a catastrophic collapse occurs, this buy signal is just days away from triggering. If it does, these current lows may be the cheapest Bitcoin will ever be again.

Bitcoin Bull Run Was Here, But White Swan Pandemic Put It On Lockdown

At the start of 2020, Bitcoin was trading above $10,000 for the first time since June 2019. Several indicators and sentiment suggested a new bull market was underway.

But the “white swan” pandemic that put the world on lockdown, also put a stop to Bitcoin’s momentum. And according to a new tool developed by a respected crypto analyst, it may take another couple of months to get back there.

White Swan Pandemic Causes Widespread Crypto Market Chaos

Major US stock indices were setting records for the highest price ever traded in February 2020. At the same time, there was a renewed interest in cryptocurrencies.

The decentralized finance movement brought Ethereum to a record-string of weekly positive closes, and Bitcoin reclaimed $10,000.

But in Wuhan, China, an outbreak was spreading rapidly, threatening the rest of the global economy. By the time early March rolled around, investors began to brace for the worst.

Related Reading | BTCUSDPlunges Below Crucial $9,000 Support; What Analysts Think Comes Next

The “white swan” event of a pandemic taking many by surprise, caused a shocking selloff now referred to as Black Thursday.

Stock markets went from setting records for highs, to setting a record for the worst quarterly close on record. BTCUSD crashed over 50% in under 48 hours. Other cryptocurrencies flash crashed to zero.

Even gold and other precious metals collapsed under the weight of the selloff.

Months later, neither the stock market nor Bitcoin have been able to reclaim those highs. And according to new data, it may take a few more months to get there.

New Exponential Bull Run Bitcoin Model Signals ‘Not Yet’

According to a new tool developed by Bitcoin expert Willy Woo, the assetisn’t ready for a new bull run just yet. At least it isn’t as ready as it was before the pandemic struck.

The new tool which the creator says may predict the “start of exponential bull runs,” signals Bitcoin could have another month of consolidation.

The model clearly marks the start of past bull runs in the cryptocurrency. The data indicated that Bitcoin was close once again in early 2020, but the rug was pulled by the outbreak.

The analyst also says that the longer it takes for the asset to coil up, the higher the peak price will be.

Bitcoin price predictions range anywhere from $100,000 to $1 million per BTC long term. The longer the “long sideways accumulation band,” the more likely Bitcoin will trade at such highs.

Related Reading | It May Take Crypto Until Q4 2020 to Break Into a Bull Market: Analyst 

Woo is also the creator of other popular Bitcoin indicators and tools such as NVT ratio. The Network-to-Transaction Volume ratio was developed to spot potential tops and bottoms in the cryptocurrency.

It has worked with great accuracy throughout the past several years for calling tops in the cryptocurrency.

It triggered red during the bubble peak, right before Bitcoin fell to $3,200, in June 2019, and again in February 2020. As of right now, it’s not signaling a top is in.

The new model shows Bitcoin is also not ready for another exponential bull run just yet. However, this older, proven model also says it isn’t ready to top out.

This could indicate that more sideways is in the cards before the next move up and bull market begins.

Ripple Effect: XRP Whales Buy Up A Sea of Small Fish Selling

Blockchain data transparency offers a figurative ocean of information at a click. New data shows that Ripple whales are buying up any XRP small fish sellers are offering up.

In the past, XRP broke out from downtrends with an explosive move. With so many whales accumulating, will there soon be a “thar she blows” moment?

Ripple Protocol Reveals Public Wallet Data, What Does It Say?

XRP is the native cryptocurrency token of the Ripple protocol, another distributed ledger like Bitcoin or Ethereum.

The beauty of blockchain distributed ledger technology is the transparency it provides. Anyone can access this information, at any time using various explorer tools.

Blockchain data available includes how many transactions are made, at when, and for what amount. It also contains details of how much crypto is stored in the wallet, along with the wallet address.

Related Reading | Ripple Whale: It Only Takes $20,000 To Become a One-Percenter 

This publicly available information can be helpful in fundamental analysis in cryptocurrencies. By understanding wallet inflow or outflow, or the size of wallets, it can sometimes tip off market movements.

XRP transactions act the same, with all of this detailed information visible through the Ripple network.

A divergence in XRP whale wallets and small fish crypto investors may provide clues as to what to expect next.

ripple xrp whale small fish crypto

XRP Whales Are Accumulating,  Absorbing All Selling In A Sea of Small Fish

According to blockchain data, wallets containing a balance of 175K to 775K XRP have been accumulating at a full pace.

Meanwhile, smaller wallets containing just 3K to 15K XRP are either selling or still holding strong.

The first subset represents the top 0.1 through 0.5 percent of accounts. The second group represents between the top 4 and 10 percent of accounts.

The size of the second group is much larger, yet the data shows whales are soaking it all up.

Related Reading | Number of Ripple Whales Spikes to New All-Time High as XRP Eyes $0.20 

Whales get their name due to their sheer size and ability to make a big splash in markets. They also can absorb more opposing market pressure than most participants.

If XRP whales are accumulating, it could be because history often repeats. In the past, Ripple skyrockets after a confirmed breakout of downtrend resistance. If it happens again, the asset could target $14 per token.

Past research revealed it only takes a $20,000 investment in the altcoin to be a “Ripple one-percenter.” However, with the largest XRP accounts growing in size, this wealth may since have been redistributed.

Whatever the case, there’s no arguing with data. And data shows whales are buying up an entire sea of small fish. Will there be a “thar she blows” moment soon in the cryptocurrency?

This Trend Measuring Tool Says Bitcoin Drop Is Only Just Getting Started

After a series of higher lows above the current support level, Bitcoin looked primed for a move higher. However, a recent drop setting a lower low on daily timeframes has potentially started a short-term downtrend.

And according to a trend measuring tool, this drop may have a lot further to go.

Bitcoin Sideways May Finally Be Over, Initial Drop Is Prelude To Short Term Downtrend

Discussion around Bitcoin over the last month has mostly been centered around its sideways stability. With no price movement, crypto analysts are left to speculate on what might cause a breakout instead.

A record-breaking contract expiration today nor all-time high open interest has been able to provide the spark. Neither was the positive news that PayPal and Venmo may soon launch support for cryptocurrencies.

Related Reading | 21 Million BTC: How PayPal Active Users Underscores Bitcoin Digital Scarcity 

Most metrics in Bitcoin are stagnant. Bollinger Band Width is signaling record lows. All signs point to a massive breakout sooner than later, but neither side has yet to give.

The breakout may finally be underway, as Bitcoin price has now set another lower low on daily timeframes. A series of lower highs and lower lows is the definition of a downtrend, which may be beginning for Bitcoin.

The short-term downtrend is part of a longer downtrend lasting nearly three years now. A break up through resistance could possibly put an end to that downtrend once and for all.

But as this selloff picks up in severity, a trend measuring tool is suggesting that this downtrend has legs, and its just getting started.

Average Directional Index Signals Bear Trend Has Only Just Begin

The Average Directional Index is a technical analysis indicator created by J. Welles Wilder, Jr. The market analyst and author also created the Relative Strength Index and the Parabolic SAR.

The Average Directional Index, or ADX, measures the strength of a trend. A reading of under 20 typically indicates a lack of a trend and anything rising above 20 shows that a trend is beginning.

The higher the reading, the stronger the trend. Higher readings also often suggest that the trend soon could reverse, while lower readings following a breakout suggest trends have more to go.

Related Reading | Freaky Friday: 60% of Bitcoin Contracts Expire Today

The ADX ballooning over a reading of 15 has in the past led to the strongest short term trends in crypto. Each time the reading went over 15, a strong trend followed. The only anomaly was following the China pump, where the prior trend was interrupted by the FOMO frenzy.

bitcoin adx trend average directional index

Bitcoin BTCUSD Daily Average Directional Index | Source: TradingView

Further confirming a bearish trend may be starting, is a crossover of the two Directional Movement Indicators, depicted in green and red. Past bullish or bearish crossovers determined the direction of the trend in the past.

All these signals point to strong downside in Bitcoin and the rest of the crypto market. But more importantly, finally a break of the sideways trading range.

Lobbyist, Filmmaker, Cryptocurrency Scammer: Who Is Jack Abramoff?

Former Washington lobbyist Jack Abramoff has agreed to plead guilty in a case involving a cryptocurrency scam.

How did this former filmmaker turned lobbyist end up involved in a cryptocurrency scam? And who exactly is Jack Abramoff?

Former Lobbyist and Hollywood Filmmaker Involved in Cryptocurrency Scam

Lobbyist Jack Abramoff has been hit with dual charges related to a crypto scam, along with cohort Rowland Marcus Andrade.

Andrade is the chief executive of NAC Foundation, a Las Vegas-based virtual currency firm according to the Better Business Bureau.

The duo is accused of making false claims associated with a cryptocurrency scam called AML Bitcoin.

Related Reading | PSA: New XRP Scam Is Targeting Scorn Ripple Investors 

The United States Securities and Exchange Commission says they made statements that misled investors.

Abramoff is also charged with violating a lobbyist disclosure law, associated with the scheme.

The SEC says that the project claimed to be “superior to the original Bitcoin.” AML Bitcoin was also said to offer anti-money laundering and theft-resistance tech. These claims, the SEC says aren’t credible.

Abramoff pled guilty to the charges and faces potential jail time for the crimes. However, this wouldn’t be Abramoff’s first stint in prison.

From Bribery To Fraudulent Bitcoin Claims, Jack Abramoff’s Criminal Curveball

Lobbyist Jack Abramoff is now embroiled in a case involving the SEC and a cryptocurrency scam. But it’s not the former filmmaker and disgraced lobbyist’s brush with the law.

In 2006, Abramoff pleaded guilty to felony counts of conspiracy, fraud, and tax evasion. He served four years in prison for the crimes.

Abramoff has had a bizarre career, first starting out as a filmmaker. He spent ten years in Hollywood, producing the film Red Scorpion, starting ’80s star Dolph Lundgren of Rocky fame.

Abramoff later took a job at the lobbying arm of the law firm Preston Gates & Ellis LLP, where his lobbyist roots began.

Related Reading | Michael Jordan of Crypto Trading Scams MLB Players Out of Millions

In September 2008, a court judge found Abramoff guilty of using expensive gifts, meals, and luxury trips in political bribes.

Abramoff was accused of bribing several lawmakers, politicians, and more. He served four years out of a six-year sentence.

He isn’t exactly the most trustworthy individual, so it is not surprising to see him once again involved in a scandal.

The story reads like a Hollywood script, something Abramoff is familiar with. The happy ending is that this crook will once again be behind bars.

Unfortunately, the next chapter involves scorn investors burned by the scam, picking up the pieces and rebuilding.

How Bitcoin is The Answer To Venezuela’s Stuck-At-Sea Oil Supply

Bitcoin solves many problems, from monetary policy mishandling to acting as the first decentralized store of wealth.

But could it also be a solution to Venezuela’s sanctioned and stuck-at-sea oil problem? Rather than aimlessly floating at sea, the oil could be put to much better use.

Venezuela Has Over 18 Million Barrels Of Sanctioned Oil Floating At Sea

It’s a phrase used so often, it is commonly used sarcastically or as a joke: Bitcoin is the answer.

But the first-ever cryptocurrency truly solves many problems. It also may provide a profitable solution for the cash strapped Latin American country of Venezuela.

Venezuela is one of many countries under strict sanctions from the United States. The US has been applying pressure to the country recently, seeking to cut off revenue flow to the regime.

President Nicolás Maduro launched a cryptocurrency backed by oil, the petro, in an attempt to skate sanctions. Trump banned the cryptocurrency in the United States.

Related Reading | Cryptocurrency Community Explodes In Chatter Over Oil and Stocks 

Due to the sanctions, and conditions in the oil market, Venezuela has over 18 million barrels of oil just floating at sea.

This amounts to roughly two months of production in the country, unable to be monetized due to sanctions.

Countries won’t do business with Venezuela over the fear of US retaliation, and the demand for oil is weak.

Months ago, oil fell to negative prices due to the related storage costs associated with owning the commodity.

It is one of the few assets that can trade at negative pricing. However, few ever expected it to do so.

One Simple Trick To Revenue: Refine Oil, Burn Diesel, Get Bitcoin

Rather than floating aimlessly, this oil could be converted into diesel fuel. The diesel could be used to power turbines, that generate energy.

Energy is the key ingredient to Bitcoin mining. And it could be the solution to Venezuela’s revenue problems.

This oil, instead of being stuck at sea, would be put to much better use. Generating Bitcoin through mining that is fueled by their oil supplies could be highly profitable.

Related Reading | Is This Bitcoin Wave Fractal Following Oil’s Path to Negative Pricing?

Venezuela needs badly needs a solution to their monetary issues, and Bitcoin is increasingly the answer. Not only could the government benefit from the cryptocurrency through mining, but its citizens rely on it too.

The country’s fiat currency has been in a death spiral. The country also tightly controls its hyperinflated monetary supply.

More and more citizens in the county have turned to Bitcoin as a result.

So while the phrase “Bitcoin is the answer” is often mocked across the web, for Venezuela, it provides many solutions.

Bitcoin Sees Third Lowest Volatility Since The Crypto Bubble First Began

bitcoin btcusd post halving volatility
Bitcoin price has been trading sideways for over forty days and counting. The crypto asset has been unable to break above $10,000 or remain below $9,000 for more than a few moments. The sideways action has caused the third-lowest volatile point on record over the last four years. The first time started the last bull market; the last time caused a 50% drop – is the third time the charm? Sideways Trading Bitcoin Markets Still Reeling From Black Thursday Chaos Bitcoin and the rest of the crypto asset class are known for its wild price volatility. But that notorious trait has all but vanished after the dust settled on Black Thursday. The massive, broader market collapse crushed cryptocurrencies and liquidated high leverage whales in the cascade of selling. The selloff brought the market – and the world – to a pause. But stimulus money helped Bitcoin slowly claw its way back up to nearly $10,000. There, the asset continues to trade now after nearly two full months of sideways. RELATED READING | FADING BITCOIN VOLATILITY VERSUS NASDAQ MAY SIGNAL BULL MARKET IS HERE The coiling trading range has confined any attempts at a breakout to either direction thus far. The lack of activity has most crypto analysts looking for a massive move when the breakout does occur. According to data, past breakouts from consolidation like this results in an over 20% move. These breakouts, more often than not, result in a move to the upside. And consolidation typically doesn’t last for more than six weeks. Only one time in the last several years did Bitcoin consolidated for longer. It resulted in the infamous drop in November 2018, where the asset fell by over 50%. Bitcoin BTCUSD 3-Day Bollinger Band Width Chart | Source: TradingView This Low Of Volatility Has Resulted In a Crypto Bull Market, Or a Dangerous Collapse 3-Day Bollinger Band Width is signaling that Bitcoin volatility has reached a low only touched three times over the last four years. Bollinger Bands are a technical analysis toolset consisting of a simple moving average and two standard deviations. Those two standard deviations act as bands that widen and contract to measure volatility. Only two other times other than now did the crypto asset reach such a low on 3-Day BTCUSD price charts. The first time was during the just over one hundred days of sideways following the 2016 halving. It was reaching this low that set off the historical volatility that led Bitcoin to $20,000. RELATED READING | BITCOIN HALVING FACTS: PAST PRICE DATA MAY SHED LIGHT ON WHAT’S TO COME The following time was a period of tranquility before the epic plunge to $3,200 in late 2018. During this phase, Bitcoin traded sideways for 39 days after reaching the low point before breaking down. If history repeats, the bearish scenario has Bitcoin breaking down within the next 40 more days. In the bullish scenario, Bitcoin trades for at least another 60 days. Both would put a breakout somewhere in August in either case. There’s also perhaps no correlation at all to the data, and Bitcoin could be in the midst of a breakout even now. For now, there’s no denying that volatility is extremely low. And when it does reach such lows, an explosive move usually comes next. Featured image from Shutterstock.

US in “Deep Trouble” As Outbreak Returns, Will The Market Response End Bitcoin’s Rally?

The United States has barely begun to reopen its economy and it already experienced a resurgence of the pandemic. The last time cases spun out of control, it was Bitcoin and the stock market’s undoing.

Cases are rising in the South and the Western parts of the country, erasing nearly two months’ worth of preventative measures. How will markets respond to the return to quarantine and increasing infection rates?

Health Care Officials Warn: The United States Is In “Deep Trouble”

While Northern states are seeing dramatic results from strict lockdown conditions, cases in the South and West have been climbing.

This week, the United States reported the highest increase in total reported cases of the outbreak since April.

The United States has the largest death toll out of the entire global community. However, health officials claim that people are just getting “complacent.”

Related Reading | Economist Warns of Warp Speed Dollar Decline, How Will Bitcoin Respond? 

Dr. Don Williamson, head of the Alabama Hospital Association, adds that there “is nothing that I’m seeing that makes me think we are getting ahead of this.”

Another healthcare professor Dr. Joseph Gerald, of the University of Arizona, claims “we are in deep trouble” as a nation.

Infectious-disease expert at the Baylor College of Medicine in Texas, Dr. Peter Hotez, doesn’t believe a vaccine will provide the “rescue” that the world expects.

Rapid Resurgence in Pandemic Could Crush Bitcoin, The Stock Market, and the Dollar

The United States is only at the beginning stages of reopening its struggling economy. Stimulus and money printing left and right has kept the economy and stock markets afloat.

But it can’t save the health care system nor can it fight a virus.

With fear returning, cases rising, and all that uncertainty looming over markets, another crash could be ahead.

The last crash came about when markets first learned of the potential impact the pandemic was going to have. With another wave of the virus starting, another wave of selling is likely.

Related Reading | Bitcoin’s Perfect Storm On The Horizon As Analyst Calls For ‘Inevitable’ Dollar Collapse 

Ahead of the selloff, CBOE’s VIX index predicting market volatility based on the S&P 500 began to rise. VIX recently fell back below a level that appears to trigger a surge in the metric.

However, starting about two weeks ago, a spike in the VIX broke through that level again, and it is currently holding.

The correlation between VIX, the S&P 500, and Bitcoin can be seen in the chart below.

bitcoin btcusd sp500 united states

If the stock market experiences another strong selloff, Bitcoin’s correlation will likely carry the asset lower as well. How markets will react beyond that is anyone’s guess.

The initial panic from dealing with the unknown has worn off but left behind a weakening dollar and US economy. The dollar’s weakness has left it vulnerable to competing currencies, as well as Bitcoin.

Making matters worse, the country has erupted with civil unrest and widespread protests. These protests often neglect social distancing measures and are attributing to the growing number of cases.

All of the uncertainty and other underlying political and economic factors point to more downside in financial markets in the days ahead.

Brutal Drop In Altcoins Anticipated as Bitcoin Dominance Projected to Surge

A brutal drop in altcoins may be coming if the bottom of a two-year-long bullish channel holds in Bitcoin dominance.

If it breaks down, however, altcoin season may finally be here.

Why Bitcoin Dominance Matters In The Cryptocurrency Market

Bitcoin was the first-ever cryptocurrency, designed by Satoshi Nakamoto. In its likeness, all other cryptocurrencies were then created, sparking an entire category of thousands of altcoins.

Over time, more new and useful use cases developed, and tokens were designed with goals that differ greatly from Bitcoin’s.

The crypto market has since grown from just a new form of encrypted, digital payments to its own sector of the tech industry.

Related Reading | BTC Dominance Bear Flag Nears Breakdown, But 58% Level Remains Barrier To Altcoin Season

But the relationship between Bitcoin and altcoins remains something crypto analyst watch closely. A metric weighing Bitcoin against all other altcoins in the space is an especially helpful tool. This metric is called BTC dominance.

It can be used to predict any strong deviations between Bitcoin and altcoin performance. One of those deviations may soon be coming, and it is one where altcoins could suffer severely.

bitcoin dominance altcoin

BTC.D Monthly | Source: TradingView

BTC.D Long-Term Bull Channel Targets 88% Dominance and Total Altcoin Destruction

According to a long-term bullish channel that’s now formed on BTC dominance across two years, altcoins may be in trouble.

If the bottom of the pitchfork channel holds, BTC.D would likely target one of the upper quadrants outlined by the tool.

The move up would match the last major movement in BTC.D, following a similar downtrend breakout at a similar angle.

The rise in Bitcoin dominance would send the metric to as high as an 88% share of the total crypto market. It would also leave altcoins dropping to the lowest levels the bear market has to offer.

The decline would nearly erase all progress in altcoin growth over the last few years. It would be almost as if the crypto bubble never formed at all.

Related Reading | Altcoins Pumping on Cryptocurrency Exchange Listing Brings Back Memories Of Bull Market

Unlike Bitcoin that’s been becoming more recognized by institutions as a potential hedge against inflation, altcoins continue to get a bad reputation.

But the bad rap is mostly due to the ongoing decline in these assets. If BTC dominance breaks down from the channel, altcoins season would happen instead.

Regardless of what Bitcoin did, altcoins would overperform the number one cryptocurrency according to the metric.

Breaking down could potentially result in a fall to former support, resting at roughly 53%. 58% has long been considered a barrier to altcoin season.

If and when that level is broken, major altcoins such as Ethereum, Ripple, Litecoin, and more should finally catch up with Bitcoin.

Meet The Malware That Uses Bitcoin’s Blockchain To Update It’s Army of Bots

An advanced malware is utilizing messages hidden within Bitcoin‘s blockchain transactions. These messages send signals to a botnet army ready to attack at command.

How exactly is this malware using Bitcoin’s blockchain and why?

Glupteba, The Malware-Installing Trojan From 2011 That Uses Blockchain To Command An Army

Glupteba, a backdoor Trojan designed to install malware on unsuspecting computers, has also been using Bitcoin in an unusual way.

It was initially distributed in 2011, as “a secondary payload by the Alureon Trojan in order to push clickjacking contextual advertising.” Later, in 2014, it was used as part of “Operation Windigo” – a highly sophisticated attack involving thousands of compromised Linux systems.

Once the malware is installed, the compromised computer is then added to a botnet army ready for an array of commands.

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Somewhere along the line, Glupteba was updated to take advantage of Bitcoin’s public and transparent distributed ledger.

Like other malware with connections to cryptocurrencies, Glupteba can be used for cryptojacking. Cryptojacking is the process of backdoor malware mining for Monero, Bitcoin, or anything else, without the user’s consent or knowledge.

However, this is just one of many ways it can be used for harm and isn’t the reason for utilizing Bitcoin’s blockchain.

Botnet Commands Sent Via Messages Hidden In Bitcoin Blockchain Transactions

After malware utilizes its botnet to carry out an attack, once successful, the botnet can be rerouted to perform other tasks. These are typically more attacks, albeit on different servers with a unique domain or IP coordinates.

Botnets of this kind have in the past used Twitter, Pastebin, Reddit, and other messaging services to relay their commands. Glupteba, however, is using Bitcoin.

Not all Bitcoin transactions need to have a monetary value. Messages can be stored in a Bitcoin transaction’s OP_RETURN field, at up to 80 characters.

Using this method, Glupteba is able to hide its messages in plain sight and distribute them widely across to its botnet army.

Related Reading | Checking Crypto Prices on Your Mac? Watch Out for Malware 

Hiding messages in plain sight is called steganography and dates back to the late 1400s. The advantage of steganography over cryptography is that messages hidden in plain sight don’t attract attention to themselves.

The term typically refers to computer data, however, it was also used by spies posting personals in local newspapers to deliver messages during the Cold War.

Also happening in plain sight, is another Cold War, between cybercriminals and security experts.

Cybercrime, especially in the cryptocurrency space, has seen explosive growth. Bitcoin ransoms are growing in number and hackers are becoming more brazen.

Cryptojacking may not be getting as much coverage in media due to it being yesterday’s news, but numbers cases continue to rise.

For now, Glupteba doesn’t appear to be targeting cryptocurrency users despite leveraging the Bitcoin blockchain in another way. But crypto investors will want to pay extra attention to cybersecurity to protect any funds they hold.

Why the Second U.S. Stimulus Round Could Stimulate a Bitcoin Rally

bitcoin united states pandemic outbreak stimulus checks
This week, United States President Donald Trump told media that Americans can expect a “generous” second stimulus check issued. Like the first round of checks, some of this money flowing into crypto could cause a short term Bitcoin rally. And with the stimulus potentially coming while Bitcoin is consolidating below resistance, it could lead to a sizable breakout.  First Found of Stimulus Money Flows Into Crypto Over Groceries, Bills, and Essentials The start of 2020 was rough for the United States. It kicked off with renewed trade tension with China, and a short-lived conflict with Iran. Months later, the United States and the rest of the world found itself preoccupied with a pandemic. The outbreak caused an unprecedented mass quarantine to contain its spread, which resulted in the economy coming to a halt. Jobless claims reached astronomical highs overnight, and the stock market plummeted under the weight of uncertainty and fear. Bitcoin and the rest of the crypto market were dragged down with the S&P 500, the Dow, and other major US stock indices. RELATED READING | THE FED’S UNLIMITED AMMO HIGHLIGHTS IMPORTANCE OF BITCOIN’S DIGITAL SCARCITY It was clear that the economy was in trouble, and it still is. But in an effort to keep markets from plummeting further, the Federal Reserve stepped in with stimulus money. Checks were issued to individual taxpayers at a rate of $1,200 per person. Other relief efforts were offered to small businesses and corporations. Further pandemic assistance was made available for those that lost their jobs. Some of that free-floating cash made its way back into Bitcoin and crypto, helping fuel the early stages of the recovery that’s still going strong today. BraveNewCoin Bitcoin Liquid Index | Source: TradingView Second Round Of Stimulus Checks May Boost Bitcoin, But Not Until Fall Coinbase CEO Brian Armstrong saw a dramatic increase in BTC purchases on the platform in the amount of $1,200 following the issuance of stimulus checks. The data suggests that those that weren’t immediately impacted by the pandemic, put it into Bitcoin. The money may have flowed into the crypto market rather than covering bills, or essentials like groceries. Another round of stimulus checks could have a similar impact. Congress is discussing adding parameters to the next issuance of stimulus to prevent it from going into excess and keep it flowing to those that need it. RELATED READING | DEUTSCHE BANK WARNS OF DISASTER WORSE THAN PANDEMIC THAT COULD COMPLETELY KILL BITCOIN With Bitcoin brushing up against resistance, a boost from stimulus money could help the asset break out from its downtrend. Unfortunately, legislators say that the stimulus package won’t be settled until the month of July is over. This could push actual stimulus money from reaching American individuals until late August or early September. Politicians will be working around their two-week, July 4th holiday. Meanwhile, Independence Day celebrations across most of the country have been condemned under social distancing measures. More time may be required before the stimulus checks arrive and impact Bitcoin. But when they do arrive, if they have the same impact as before, it could help kickstart Bitcoin’s next uptrend. Featured image from Shutterstock.

Bitcoin Miners Sell Down Latest Rally, What Happened To Post-Halving Hold?

Less than 48 hours ago, Bitcoin price was trading at over $9,700. Today, it hit under $9,200 at the low on Coinbase.

Data shows that the selloff was preceded by a massive outflow from miners to cryptocurrency exchanges. If miners were indeed behind selling down the recent rally, why aren’t they holding post-halving as expected?

Bitcoin Miners Sell Recent BTCUSD Rally Down To Nothing

Bitcoin is at a crossroads, after months of consolidation and sideways trading. Nearly every crypto market participant is watching and waiting, expecting a major move to arrive soon.

At the start of the week, following Sunday’s night’s weekly close, the first-ever cryptocurrency began to pump. The asset rose over $500 and 5% intraday before a rejection happened.

As of moments ago, the entire rally was erased and then some. Starting at 2 AM ET, Bitcoin price plummeted by $400 and 4%.

Related Reading | Data Indicates Bitcoin More Likely To Pump Following Consolidation, 20% Move Anticipated 

Thus far, support at $9,200 is holding, but if more selling picks up, a deeper drop is possible.

According to data, the selloff may have been Bitcoin miners taking advantage of higher prices, selling down the rally. Outflows of BTC potentially being sent to cryptocurrency exchanges were spotted late last night ahead of the selloff starting.

The outflow was the second largest since the rejection above $10,000.

Moments later, the fall began. It’s not clear, however, if the supply moved has been exhausted, or if another round of selling is coming. What also isn’t clear, is why miners are selling Bitcoin in such large sums, when the expectation was they would hold post-halving.

Why Are Miners Dumping BTC When They Are Supposed To Be Holding?

If miners were indeed responsible as outflow data suggests, then why are Bitcoin miners selling off their BTC holdings after each pump?

The now past block reward halving was long anticipated to cause miners to hold their BTC supply ahead of a markup phase. A post-halving selloff driven by miner capitulation was also expected, however, neither scenario has happened.

Instead, Bitcoin has traded sideways, with buyers eagerly buying up any selloffs caused by miner sell pressure. Neither side has been able to cause a break in the trading range, but one will eventually give. A massive, over 20% move is expected when the breakout finally happens.

Related Reading | Data Shows Recent Bitcoin Difficulty Adjustment May Kickstart New Accumulation Phase 

The sideways price action could be equilibrium taking place as miner sell pressure dries and buying pressure picks up. When miners eventually run out of supply, the increase in genuine bullish momentum could cause a breakout of downtrend resistance.

With the halving behind us, miners out of supply and holding, a new long term uptrend in Bitcoin could finally begin.

Gold Aims For Decade Highs, Safe Haven Surge May Also Boost Bitcoin

Gold this week reached a price not traded at since nine full years ago, fueled by a mad dash to safe-haven assets. Could the same surge in safe-haven interest that gold is experiencing soon translate into a boost in Bitcoin?

Gold Targets All-Time Highs After Reaching New Nine-Year-Record

This week, as economic uncertainty continues to create chaos in markets, gold set a nine-year high.

The XAUUSD pair traded at just under $1780 at its local high, but the precious metal ultimately is targeting $1800 and higher.

Demand for the hard, safe-haven asset has been growing over the last two years, starting with trade tensions between the US and China.

The recession and pandemic combined, has only added to the gold rush taking place across the globe.

Related Reading | Gold Chart Shows Why Bitcoin Is The Fastest Horse In Race Against Inflation 

Investors cash out riskier assets like stocks in favor of a stable asset with centuries of trust behind it.

Gold has been looked toward for ages for this very reason, as well as the asset acting as a hedge during inflation.

When gold first decoupled from the dollar, it traded at $35 an ounce. Today, analysts are calling for anywhere between $2,000 and $3,000 an ounce.

But first, the safe-haven asset must break through resistance at around $1,800 to revisit previous record highs.

Rush to Safe Haven Assets May Benefit “Fastest Horse” Bitcoin in Long Run

The surge in interest in safe-haven assets like gold that acts as a hedge against inflation could be bringing more interest to Bitcoin.

And as things get even bleaker, with cases of the virus once again climbing and political tensions boiling over, Bitcoin may see an even bigger boost.

Although the cryptocurrency only exists digitally, due to its design, it is considered a hard asset like gold.

The precious metal has a finite supply, buried deep within the earn or held in vaults. Bitcoin is coded so that only 21 million BTC will ever exist.

The exact figure known of BTC versus the untapped supply of gold may give the cryptocurrency even greater benefit.

Related Reading | 21 Million BTC: How PayPal Active Users Underscores Bitcoin Digital Scarcity 

Of those 21 million BTC that will ever exist, only a certain amount are in circulation. Many are lost forever on the blockchain, while the rest remained locked away in the protocol.

Miners unlock new BTC with each block added to the blockchain, and when this process finishing pumping out coins, that’s it.

This won’t happen until an estimated 2140, however, the scarce supply gives the asset added value even today.

Beyond acting as a safe haven like gold or a hedge against inflation, Bitcoin has many other benefits.

Its contactless usage, and ability to be stored beyond the physical world gives Bitcoin value over gold. Gold is even being adapted to be more like the cryptocurrency, so its value can thrive in the digital age.

Although both gold and Bitcoin are expected to rise by the same analysts, the cryptocurrency is said to be the fastest horse in the race.

Brazil’s Shutdown of WhatsApp Pay May Spark Big Demand For Bitcoin as Currency

Bitcoin may see a major boost in demand following Brazil’s Central Bank blocking payments from the WhatsApp messenger app in the country.

Brazil is the app’s second-largest market, leaving a massive hole that could soon be filled by cryptocurrencies.

Central Bank Of Brazil Suspends Facebook’s WhatsApp Payment Feature

In a move to “preserve an adequate competitive environment,” the Central Bank of Brazil has suspended the payment feature on WhatsApp in the country.

WhatsApp is a popular chat application offered by Facebook, Inc. with built-in payment functionality. This functionality is now hindered in the country due to an abrupt decision made by the Central Bank.

As part of the move, authorities asked Mastercard and Visa to immediately cease approving transactions made through the application.

Related Reading | Rumored PayPal and Venmo Crypto Support To Provide Big Boost To Adoption 

Facebook’s rollout of WhatsApp in Brazil has barely lasted a month before the banking authority pulled the plug.

The sudden surprising suspension will allow the Central Bank to consider any risk to the country’s own payment system.

The Central Bank claims the “irreparable damage” could be done to the existing system” if WhatsApp is allowed to proceed without regulatory approval first.

The Central Bank says its especially concerned with “competition, efficiency and data privacy.”

Brazil appears keen to prevent Facebook Inc. from stealing the thunder of its own PIX payments system. The country says it will be rolled out by November 2020.

Brazilian Citizens To Turn Toward Bitcoin and Other Cryptocurrencies

Due to the sheer size of the population and the lack of access to traditional banking infrastructure, Brazil was already WhatsApp’s second-largest market. Over 120 million users from the region are using the app.

Leaving citizens of Brazil without a digital payment option during a pandemic while cases are growing is dangerous.

It also may push more users in the country to embrace Bitcoin and other cryptocurrencies.

Related Reading | Latin America: Surging Growth in Digital Payments May Be Boosting Bitcoin

Since the outbreak first began, VISA reported an explosion in first-time digital payments. But for those without credit or debit cards, such as mom-and-pop shops that relied on WhatsApp, another option is needed.

Source: CoinDance

Bitcoin is already replacing traditional banking services in some areas of Latin America. LocalBitcoin data from the country also points to the growing acceptance of the first-ever cryptocurrency.

With such a large hole left behind from the Central Bank suspending WhatsApp, and with PIX not ready until the end of the year, will more Brazilians turn towards Bitcoin?

How Will The Crypto Market React To Next Week’s Senate Hearing On a Digital Dollar?

crypto digital dollar
Bitcoin and the rest of the crypto market are at a pivotal moment. Either a new bull market is beginning, or a deeper fall into a bear market is next. How will the market react to the potential emergence of a digital dollar coming out of next week’s Senate hearing on the topic? Crypto Dad Pushes United States To Embrace A Central Bank Digital Currency Next Tuesday, the United States Senate Banking Committee will hold an important hearing on the potential of a digital dollar. The virtual hearing, dubbed “The Digitization of Money and Payments” takes place on June 30, 2020. The hearing is expected to discuss the potential tokenization of the dollar and the creation of a “CBDC.” CBDC stands for Central Bank Digital Currency, similar to how China has named its digital yuan as DCEP (Digital Currency Electronic Payment). Speaking at the hearing is former Commodity Futures Trading Commission chairman J. Christopher Giancarlo. Giancarlo was affectionately dubbed “Crypto Dad” in the years prior due to his support of the crypto industry. RELATED READING | GOLD TO BECOME MORE LIKE BITCOIN IN COMING DECADE AS WORLD GOES DIGITAL Now, he’s pouring his efforts into the Digital Dollar Foundation, a not-for-profit that focuses on research and discussion surrounding a tokenized dollar. Through a partnership with Accenture, Crypto Dad seeks to push the United States towards a new era of a digital dollar. The digital dollar was recently mentioned as part of a draft of the CARES Act, however, the mention was later removed when it reached the House of Representatives. The United States moving to a crypto-like version of the dollar will help the country keep its currency in power during the emergence of the digital yuan. Can a Digital Dollar Save USD From Bitcoin, the Yuan, and Other Currencies? It also could help the dollar compete with Bitcoin and other cryptocurrencies in the long haul as digital money. The event also takes place on the last day of the month. Monthly candle closes in the cryptocurrency market are especially important. And with nearly a $1 billion in options contracts expiring in Bitcoin this coming Friday, the following week when the hearing and monthly close takes place, could be especially volatile as a result. It’s not just due to the crypto market’s response to the hearing, either. The dollar itself is facing its most brutal environment yet. RELATED READING | ‘WANING’ SAFE HAVEN STATUS LEAVES THE DOLLAR VULNERABLE TO BITCOIN Analysts expect the dollar to drop as much as 35% against competition currencies. This could also boost Bitcoin and other crypto assets as well, which are bound to the dollar by way of a USD pair. Unless the United States releases extremely positive news regarding a new digital dollar that brings renewed trust and comfort in holding the asset, markets could catch fire as the dollar burns down. Featured image from Shutterstock.

Ethereum Ready To Explode As DeFi Value and DEX Volume Spikes

Ethereum, the second-ranked cryptocurrency by market cap’s most important use cases, continues to spike. As these metrics breakout and surge, the smart-contract focused altcoin may be ready to explode.

Ethereum Finds New Use Case After ICO Fallout

The initial coin offering boom of 2017 helped bring Ethereum to an all-time high of $1,400 per ETH token.

That use case eventually disappeared due to regulatory crackdowns from the US Securities and Exchange Commission.

The lack of a strong use case turned the tide on the altcoin, causing it to lose over 90% of its value. Ethereum reached as low as $80 at its bear market bottom.

Years later, the promise of these emerging assets is starting to show.

Related Reading | The Great ETH Debate: DeFi Versus ICOs 

Bitcoin’s digital scarcity is helping it stand out as a hedge against inflation. Meanwhile, Ethereum’s smart contracts are being utilized for more than just launching new tokens.

Decentralized finance is among the new Ethereum use cases coming to fruition and growing at a rapid pace. The protocol also runs decentralized applications, such as decentralized exchanges or DEX.

In another sign that the altcoin is establishing plenty of new, more sustainable use cases, is the surging volume in DEX platforms.

The combination of DeFi going parabolic, DEX volumes reaching all-time highs, and ETH 2.0 on the horizon has enormous potential. It could even finally be the catalyst that helps Ethereum explode through resistance and revisit previous highs.

ethereum locked up defi dex eth

DeFi Goes Parabolic, DEX Volume Revisits All-Time High, Are ETH Prices Next?

According to data, weekly DEX volume on Ethereum has just set a new all-time high. The trading volume even trumps what was seen on Black Thursday this past March.

Cumulative June DEX volume has already beaten out March, with an entire week left to go.

Coinciding with the surge in DEX volume, is yet another spike in the amount of Ethereum locked up in DeFi applications.

ethereum locked up defi dex eth

Total ETH locked up in DeFi has risen sharply by 0.5 million ETH – a 22% increase – in just seven days. DeFi users have doubled over the last six months. The alternative to traditional finance has gone parabolic as a result.

Related Reading | Fund Manager: DeFi Will Propel ETH To $1 Trillion Market Cap 

More and more Ethereum will soon be locked up, as ETH 2.0 enables staking for those holding 32 ETH or more.

All this together could provide the cryptocurrency with the fuel necessary to break through resistance.

ETHUSD Weekly | Source: TradingView

Much like $10,000 has remained unbreakable for Bitcoin, $250 has acted as a barrier between Ethereum and a retest of former highs.

With real fundamental growth happening in the altcoin, technicals will eventually catch up, and ETH prices could soon explode higher. And once resistance at $250 breaks, fireworks are bound to ensue.

Economist Warns of Warp Speed Dollar Decline, How Will Bitcoin Respond?

The United States is in turmoil, and the dollar is weakening slowly, but steadily. But an economist is warning that the decline may soon kick into warp speed. If it does, what might that mean for Bitcoin?

Warp Speed Dollar Decline Could Lead Bitcoin To Take The Throne

The United States has long enjoyed its role as an economic superpower. Its been almost 100 years since the dollar became the global reserve currency, fueling financial dominance in the country.

For the first time in its history, the dollar is showing signs of serious weakness and doubt.

As the black swan pandemic first began to impact the economy, investors flocked to safe-haven assets like gold, yen, franc, and the dollar.

Related Reading | Peaceful Protestor Recommends Buying Bitcoin On Live TV To Opt Out Of Failed Monetary System

These assets, including the dollar, traded at a premium, while other assets like stocks and cryptocurrencies like Bitcoin tanked.

But how the United States has handled the hit to the economy the pandemic caused, has put the dollar in a vulnerable position.

Former Morgan Stanley Asia chairman Stephen Roach believes that things are about to get much worse for the dollar, however. And fast. It also may be a favorable environment for Bitcoin.

Economist Examines Perfect Storm For Unprecedented USD Deterioration

According to the American economist, the dollar could soon decline at “warp speed.” And it could leave the asset vulnerable to Bitcoin.

“In a COVID era everything unfolds at warp speed,” Roach told MarketWatch.

Roach sees the deterioration of the dollar happening “sooner rather than later,” and it could end the dollar’s domination as a global reserve.

The economist cites the combination of record unemployment rates, a rapidly growing Fed balance sheet, and a shrinking GDP as reasons for the sharp decline.

Roach’s comments have been met with strong criticism, which he blames on especially sensitive timing in the United States.

The recent, controversial political cycle may be coming to an end, and the nation is currently in turmoil. Public unrest over police brutality, wage inequality, and racism, has led to widespread protests and riots.

The country’s plan to reopen the economy has come under scrutiny as being “poor.”

Adding insult to injury, new cases of the virus that caused the disruption in the first place is once again starting to climb.

Related Reading | Bitcoin Is The Answer: Survey Results Reveal Growing Millennial Distrust in Big Banks

If another wave of the pandemic hits the United States full force, with so much else going on, it could destroy the dollar.

During this, Bitcoin is further emerging as an ideal replacement for the dollar. Contactless payments are becoming preferred, and a non-physical store of value is becoming more necessary.

The US continues to fail to release a digital dollar of its own, and could soon be preempted by rival China.

Bitcoin is non-sovereign, acts as a hedge against inflation, and found itself suddenly a topic at recent protests. Protesters were championing Bitcoin as a way to opt-out of the government’s control and poor management of monetary policy.

Monetary policy that’s been so grossly mismanaged, it could lead to the warp speed decline of the dollar as Roach says.