3 Reasons Why Bitcoin Price Hasn’t Returned to $13,000

bitcoin price below usd $13,000

Despite the promises of crypto analysts and institutions like Goldman Sachs, Bitcoin price continues to hover around low 5 figures. What’s going on?


After struggling to hold above the $11,000 point earlier this week, Bitcoin price, at last, succumbed to selling pressure and dropped below $10,000 for the second time in three weeks. Prior to the drop, numerous analysts predicted that $10k would serve as a reliable bounce point as the price represents important psychological support.

Clearly, this was not the case and even after making a strong upside move from $9,500 to $10,450, Bitcoin still struggles to stay above $10,100. 

Let’s take a look at what is keeping the king of cryptocurrencies down. 

Dovey Wan says Ponzi Scheme is Crashing the Crypto Market

On July 14 Primitive Crypto founding partner Dovey Wan attributed the sharp sector-wide correction to bulk Bitcoin sells from PlusToken, a Chinese Ponzi scheme. The scheme managed to accrue 200,000 Bitcoin and more than 800,000 Ethereum from naive investors in China.

According to Wan, not every member of the PlusToken team has been arrested yet and data from cybersecurity auditing firm Peckshield shows that recently more than 1,000 Bitcoin was transferred to Huobi and Bittrex from PlusToken accounts. 

Wan is convinced that the scammers are covertly shifting their funds “into small batches into exchanges, like 50 to 100 Bitcoin per batch.”  Wan also claimed that she recently stumbled across a chat where Chinese traders were saying that someone had been dumping 100 BTC non-stop on Binance.

If true, it is entirely possible that large back to back sales of Bitcoin could affect spot rate across exchanges but this sole event is probably not fully responsible for Bitcoin’s malaise

Mind the CME Gap 

The CME Bitcoin Futures gap is another popular topic amongst Bitcoin traders and many cite the existence of the gap as a reason why Bitcoin continues to drop below $10,000. A glance at a Bitcoin daily chart shows an $870 gap between $7,177 and $8,050.

The gap is simply the outcome of Bitcoin price moving over the weekend while the CME Futures are closed and the space denotes the difference between the previous close and the new opening price once the market reopens.

The gap is a cause for concern as traders set the price as a target that must be filled at some point, typically when an asset corrects and retraces to supports in the vicinity of the gap.

Many traders believe that Bitcoin must revisit this $7,100 to $8,500 range to truly correct before resuming its strong bullish trend to a new all-time 2019 high. 

Bitcoin Accumulation Before Surge on Recession Fears 

An assortment of crypto analysts have posted charts suggesting that Bitcoin has entered a lengthy consolidation phase and will continue to be pinned between $9,000 to $14,000 until more excitement and momentum build up over the 2020 halving event. 

Earlier this week as the stock market took a horrific tumble over weakening macroeconomic fundamentals, fears of a recession sprang up as an economist focused on an inverted yield curve on treasury bonds.

This week the slope on US Treasury bonds became inverted and for economists and market analysts, this is typically an indicator that a recession could be on the way.

At the same time, Gold has continued to rise in price and many investors believe that Bitcoin is a similar store of value and hedge against volatility.

If the US and other countries truly are on the verge of a recession, one would increase inflow into Bitcoin and a significant increase in its market cap and value.

At the time of writing, Bitcoin is steadily dropping back towards $10,000 and $9,800 is the most immediate support level. 

Do you think Bitcoin price will dip below $10,000 over the weekend? Share your thoughts in the comments below! 


Images from Bitcoinist Image Library, Twitter: @DoveyWan, BTC/USD charts by TradingView

 

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Analyst Looks to Blockchain Data to Explain Why Bitcoin is Still ‘Bullish’

bitcoin

Market analyst Jesus Rodriguez believes that investors should consider blockchain datasets when devising their Bitcoin investment plans.


Blockchain data helps with crypto investing

On August 12, Invector Labs chief scientist, Jesus Rodriguez, took to Hackernoon and made his case as to why he believes Bitcoin remains bullish despite correcting from $13,800. At the time of writing, Bitcoin continues to struggle to stay above $11,000 and technical analysis suggest the digital asset could drop to $10,800 – $10,600 over the short-term. 

According to Rodriguez, the majority of speculation surrounding Bitcoin price has been focused on macroeconomic factors such as the US / China trade-war, global monetary easing and central bank policies that are leading to the devaluation of fiat currencies. 

Last week, President Trump introduced additional tariffs on Chinese goods and the Dow Industrial Average reacted by dropping nearly 800 points. At the same time, volatility has increased across major world indices and China placed the cherry on top of this disastrous sundae by devaluing their currency. 

Meanwhile, Gold and Bitcoin increased in value as investors viewed the assets as a store-of-value and hedge against volatility. 

What does blockchain say about the Bitcoin rally?

While these are incredibly relevant factors that are clearly impacting Bitcoin price, Rodriguez suggests that investors take a deeper look beyond the macroeconomic perspective and analyze blockchain data. 

Looking closer at blockchain data could uncover some interesting details and patterns that shed light on the recent Bitcoin rally. 

According to IntoTheBlock’s blockchain-based data sets, nearly 90% of Bitcoin investors are “in the money”.

There are also nearly one million addresses with positions acquired near Bitcoin’s current price and Rodriguez argues that these investors will help “influence the trading activity in the next few days.”

IntoTheBlock’s Break-Even analysis primarily focuses on realized gains and the indicator shows that Bitcoin’s next strong support/resistance is near $10,400.

Furthermore, as BTC price rose, so did the number of active addresses and this is a sign of growing strength within the Bitcoin network. 

 

Rodriguez also attempted to poke a hole in the default explanation that China’s yuan devaluation led to Asian investors taking shelter in Bitcoin. 

Macro is micro when it comes to analyzing Bitcoin price action

Even more interesting is the fact that the majority of ‘new’ Bitcoin investors accumulated the digital asset before the current price rally began.

Essentially Rodriguez is saying that the current macroeconomic factors are reflective of long-term, structural challenges that have long existed in various economics and are just now showing themselves. 

This does not mean that macroeconomic challenges are directly responsible for the majority of BTC price action. In fact, macro-economic factors are short-term price indicators for Bitcoin price action and should not be fully relied upon to predict price movement. 

Rodriguez advises that investors also incorporate analysis of blockchain data like on-chain activity, network hash-rate, the volume of large institutional and retail transaction, new address origination and the fluctuations in Bitcoin address openings, closing, and transfers at various price points. 

By doing this, investors attain a more comprehensive view of the whole market and are likely to make wiser investment decisions. 

Do you think the current Bitcoin rally is primarily driven by macroeconomic factors? Share your thoughts in the comments below! 


Images from Shutterstock

 

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Pompliano Labelled ‘Crazy’ For His 50% Market Exposure to Bitcoin

Morgan Creek Digital co-founder Anthony Pompliano received a verbal beating for disclosing that 50% of his portfolio is in Bitcoin. Question is…is his lack of diversification a bad thing?


Is Pomp Crazy? 

Earlier this week, Anthony Pompliano participated in a CNBC Squawk Box panel which discussed macro-economics and its impact on Bitcoin price action. One panelist asked Pompliano what percentage of his net worth was invested in Bitcoin and Pompliano resolutely said 50%. 

Panelist Kevin Oleary, a well-known Canadian businessman, swiftly pounced on Pomp and administered a verbal beating, along with a quick lesson in the economics of investing. 

O’Leary said:

That’s crazy, I forbid that, that’s insane, that breaches everything about diversification investing!” 

O’Leary then rattled off a list of top-10 altcoins, pointing out their significant losses since 2017, then asked Pompliano, “If this is really such a great idea, when is there only one Vegas game working?” 

Pompliano did his best to explain why institutional and retail investors should make an allocation for Bitcoin as it is a scarce asset that is non-correlated to traditional markets, and is also a hedge against macroeconomic instability.

Forget Altcoins, Go Bitcoin

While traditional economists, financial advisors, and market analysts are likely to agree with O’Leary’s scolding of Pompliano, a cryptocurrency analyst from Twitter swiftly came to Pompliano’s defense. 

@RhythmTrader pointed out that despite a 200%+ gain from Bitcoin, 60% of Bitcoin hasn’t moved for more than a year. 

This statement aligns with recent data released from CoinMetrics which also showed that Bitcoin’s ‘untouched supply’ had risen to a new high of 21.6%. 

The report also observed an uptick in the origination of new Bitcoin addresses. RhythmTrader then asked, “if doubling their wealth isn’t enough to part them with their Bitcoin…then what is?”

Alistair Milne also chimed in and tweeted that while it may seem absolutely crazy to invest 50% of one’s net worth into Bitcoin “anyone who “HODL’d since 2015” has seen 60x returns. According to Milne, “it would have only taken a 1% allocation” to bank at least a 50% return. 

Good Things Come to Those Who Wait, for Bitcoin

Of course, investors should carry out due diligence prior to investing in any asset, especially ones that are known for their volatility. Also, while investors are encouraged to diversify their portfolios, it should be noted that Bitcoin is not a stock. 

It has no need to generate revenue, it doesn’t answer to a board of ‘shareholders’, it is not controlled by any centralized entity. Putting all one’s eggs in one basket is risky but RhythmTrader left his followers with this: 

Do you think it is wise for Anthony Pompliano to keep 50% of his net worth in Bitcoin? Share your thoughts in the comments below! 


Images from Shutterstock, Twitter: @Rhythmtrader, @alistairmilne

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When It Comes to ROI, Altcoins Are No Match For Bitcoin: Analyst

bitcoin better than altcoins

Bitcoin appears to be back on the rise but will altcoins follow? Alex Krüger thinks not.


Bitcoin is King

Earlier this week, economist and crypto analyst Alex Krüger tweeted that in his opinion, the majority of altcoins have “become asymmetric bets with an unattractive return profile.”

Outside of February – April’s impressive altcoin rally (Alt Season) where a number of altcoins posted 300% to 500% gains, altcoins have performed poorly against Bitcoin since late April. 

Altcoin to Bitcoin pairings have taken an absolute beating, and altcoin to fiat pairings have also endured some dark days.

Krüger’s observation that “alts consistently underperform BTC on down days, and only sometimes outperform BTC on up days” aligns with a detailed report released by Coin Metric’s last week

Data from the report shows that over the month of July the majority of altcoins were down more than 40%. This came as Bitcoin had only dropped 2% at the time of the report’s publication. 

The report pointed out that EOS (-44%), Cosmos (-41%), Cardano (-37%), Tezos (-6%), VeChain (-10%) were “notable underperformers”. 

Regulatory Pressure is Impacting all Coins

The report points to geopolitical, macro-economic, and regulatory factors as the primary influence upon Bitcoin and altcoin price action.

Continued regulatory pressure on the cryptocurrency exchanges led to Bittrex, Binance, and Poloniex implementing new policies that bar U.S. traders from derivative instruments and certain digital assets. 

The CFTC also launched an inquiry into BitMex over allegations that the exchange allowed U.S. residents to trade on its platform. These actions appear to have shaken investor confidence in altcoins and led to their poor performance. 

Facebook’s reveal of its Libra token project also excited Bitcoin investors but the following regulatory pressure brought on by U.S lawmakers seems to have negatively impacted Bitcoin price.

Additionally, U.S. Treasury Secretary Steven Mnuchin’s comments about stringently regulating Bitcoin shoot confidence as these statements circulated throughout mainstream media. 

The Big Picture Favors Bitcoin

From a macroeconomic perspective, many countries are gravitating toward monetary easing and investors are wary that a global recession could slowly be in the making. Coin Metrics points out that: 

It now seems nearly certain that the four major central banks of the world (the Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China) are on the cusp of another monetary easing cycle. As real interest rates decline, the opportunity cost of holding non-yield producing assets like Bitcoin declines. 

Only time will tell whether or not altcoins find some strength and regain the large swathes of territory that have been forfeited to Bitcoin over the past few months. To be frank, until Bitcoin’s dominance rate drops, it seems highly unlikely. 

Do you think altcoins will recover before the end of 2019? Share your thoughts in the comments below! 


Image via Shutterstock, CM Reference Rates, Twitter:@krugermacro

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New Bitcoin ‘ATHs Possible in 2019, Likely in 2020’: Report

new bitcoin price high 2019

On Friday, Ikigai Asset Management founder and CIO Travis Kling released an incredibly detailed report which makes a strong case for Bitcoin price achieving a new all-time high in 2020.


The Devil is in the Details

On Friday Ikigai Asset Management released its tenth monthly crypto and traditional market update and the report was filled with some intriguing Bitcoin price action observations. Ikigai believes that the crypto-sector can “fundamentally change the world and create trillions of dollars of value in the process.” 

The asset management firm also firmly believes that the crypto-market is “well on its way to new ATHs for BTC after a truly spectacular Q2-19 – the fourth-best quarterly performance since 2012.”

In fact, Ikigai explicitly said: 

In our Monthly Update letter that went out June 1st we said, “last month we stated that new all-time highs were well within reach for 2020. We now believe that may have proven too conservative, and there is a meaningful chance new ATHs are possible in 2019, and likely in 2020.

Ikigai supported this conclusion by pointing out that:

  • Mainstream media coverage of cryptocurrency has risen significantly.
  • No-coiners are joining the pack, or at least expressing more interest in cryptocurrency. 
  • Exchange volume has exploded upwards.

Credit Due to Facebook

Ikigai also suggested that the crypto market’s bullish sentiment is partially driven by Facebook’s Libra cryptocurrency. According to Ikigai: 

Facebook’s Libra project is tremendously important to the crypto ecosystem. While Libra competes with certain crypto projects, it does not compete with Bitcoin – it is a gateway to Bitcoin. With 2.4bn MAU’s across the Facebook Messenger, WhatsApp and Instagram platforms, Libra has the potential to bring the concept of “value accrual in digital assets” to the world at a scale never before seen.

Metrics Support a Rising Bitcoin Price

Kling confidently asserts that “we are in the midst of a raging bull market [but it is] important to note [that] we are experiencing a significant and much-needed pullback.” Ikigai explained that a strong correction was expected as Bitcoin had already appreciated by +60% in the month of June. 

The report also mentioned that the strong pullback resulted in more than $260 million worth of long liquidations on Bitmex in just one hour.

As the chart shows below, Bitcoin was severely overbought and in historical correction territory. 

The report also delves a bit into the world of conspiracy theory by suggesting that: 

While a deeper pullback in the near term is certainly possible, we believe it is most likely simply an engineered opportunity for Risky Whales to profit from short-term shorts and accumulate more BTC at lower prices before taking the market to new YTD highs.

All-Time Bitcoin Price Highs are Imminent

The report points out that another case for Bitcoin rallying toward new all-time highs is Bitcoin’s rising dominance level. In June the dominance rate rose to heights not seen since the 2017 bull market.

Ikigai attributes this rise in BTC dominance to improving fundamentals and deep interest from institutional investors. According to Ikigai:

BTC is separating itself from the rest of the crypto asset landscape in terms of institutional investability.

The report takes a deep view at an array of metrics (hash rate, volume, on-chain activity, USDT printing, short and long-term price action ) and Ikagai concludes that despite the current pullback, Bitcoin is incredibly bullish.

The firm suggests that the upcoming Bitcoin halving event will catalyze a powerful bull market which will take Bitcoin and the crypto-sector to new all-time highs. 

Do you think Bitcoin price will rally to $2o,000 before the end of 2019? Share your thoughts in the comments below! 


Image via:Kanaandkatana

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Failure to Launch: The LedgerX Controversy

LedgerX bitcoin futures fail

LedgerX CEO, Paul Chou, is really mad and apparently his company is not offering physically-settled Bitcoin futures contracts yet…


Failure to Launch

On Thursday LedgerX CEO Paul Chou sent out a series of tweets explaining the current LedgerX controversy and his decision to sue the Commodity Futures Trading Commission (CFTC) for what he calls ‘anti-competitive behavior’.

Chou alleges that the CFTC asked him to censor LedgerX’s tweets and he admitted that they did but will “never again, this is a disaster for democracy”.

The issue appears to have started on Wednesday when LedgerX announced that it had launched physically settled Bitcoin futures contracts that were accessible to retail and institutional investors.

Chou told media that “not only are they delivered physically in the sense that our customers can get Bitcoin after the futures expires, but also they can deposit Bitcoin to trade in the first place.”  

Fast forward to Thursday and LedgerX was forced to retract this statement as the CFTC claims it did not provide a derivatives clearing organization (DCO) license to the firm.

Interestingly, a CFTC press release from June 25 says: 

LedgerX has requested that the CFTC amend its order of registration as a DCO, which limits LedgerX to clearing swaps, to allow it to clear futures listed on its DCM.

A quick glance at LedgerX’s trading data page also shows that options and swaps did occur on Wednesday, but no futures contracts were processed. 

LedgerX Attempted to Exploit the 180-Day Rule

When asked about the discrepancy, LedgerX chief operations, and risk officer Juthica Chou admitted that LedgerX was not trading futures contracts yet.

She clarified that LedgerX’s previous statements regarding physically-settled futures were directly referencing the firm’s retail platform, Omni. According to Juthica Chou, Omni is live and processing swaps and options products and she said, “We’re still operating, we’re putting the product in front of retail.” 

The CFTC did approve LedgerX as a designated contract market (DCM) in July but the firm still requires a DCO license in order to offer futures.

CFTC regulations (Title 17 part 39.3) stipulate that the agency has up to 180 days to make a decision on DCO applications. Chou said that: 

[The CTFC] said to clear swaps and they said later that [we] should actually clear futures too and…we were waiting essentially for this amendments.

LedgerX appears to have assumed that a default approval would occur if the 180 day period passed without any decision from the CFTC. Juthica Chou said: 

We submitted the amendment on Nov. 8, 2018, it’s been more than 180 days, we don’t know why that’s the case [that it has not been approved].”

Chou also said that “we have email correspondence confirming that there were no additional items that they needed for the amendment.” 

There’s a Light at the end of the Tunnel

An unnamed CTFC official commented on the situation and said this assumption is flawed as LedgerX requires direct approval in order to offer futures.

According to the official, “the absence of a decision does not constitute approval, and entity self-certification is not an option.” 

On a more positive note, the same official said that LedgerX’s DCO application “appears to be in the very final stages of the approval process.” 

This is a developing story which will be updated as more information becomes available. 

Do you think LedgerX intentionally jumped the gun on announcing that it was approved to launch physically-settled Bitcoin futures? Share your thoughts in the comments below! 


Image via Shutterstock, Twitter:@paul_l_chou

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Bitcoin Whale Transfers $468 Million for ‘Low Dollar Fee’

bitcoin whale no-fee transfer

Bitcoin takes a lot of criticism over its ‘unsuitability’ as a payments mechanism but when it comes to low fee transfers the digital-asset is king when compared to the fees charged by traditional remittance houses.


Owner 26 Transfers $468.5 Million for How Much?

On Monday, Whale Alert, a cryptocurrency transaction tracking bot, tweeted that a Bitcoin whale known as ‘Unknown Owner 26’ moved $468.5 million worth of Bitcoin (49,756) for just $374.98. 

bitcoin whale alert

While transfers of this size are a regular occurrence in the crypto-world, it’s worth pointing out that the transfer took place without the need of providing personal identification details or registering the transfer with local and international financial regulators. 

@Rhythmtrader from twitter tweeted about bitcoin whale

If Owner 26 had chosen to send the funds via Western Union, TransferWise, or a traditional banking institution the fees would have been much higher. 

Bitcoin Beats the Competition

The Next Web did a little digging into the costs and found that a user looking to transfer $1 million worth of Bitcoin via TransferWise would still pay a substantial amount in fees. TransferWise is a major provider of international remittances and alternative to remittances via big banks. 

Using TransferWise, the sender would be charged 0.36% in fees, which amounts to $3,628. Applying this rate to a remittance of $468.5 million would lead to the sender paying $1,684,800 in fees! 

The fees Owner 26 paid are higher than previous Bitcoin transactions of similar size. Take, for example, a $212 million transfer on May 1 which cost just $3.93 in fees. The vast difference in fee size can likely be attributed to the whale behind the $212 million transfer using a Segregated Witness (SegWit) address. 

SegWit expands Bitcoin’s ‘block-size limit’ from 1MB to 4MB and the result is miners can package a higher number of transactions into each block. As a result, a higher number of transactions can be confirmed simultaneously. SegWit users pay smaller fees and transactions are quicker. 

More bitcoin whale alerts

Whale Alert also tracked 3 more transactions from Owner 26 and each was roughly $450 million. Given the near-identical size of each transaction, it seems likely that a cryptocurrency exchange is transferring funds between wallets. 

Do you think the bitcoin whale responsible for these transfers is an individual or an exchange? Share your thoughts in the comments below! 


Image via Shutterstock, Twitter: @whale_alert

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Judge Postpones Decision on NYAG Case Against Bitfinex and Tether

bitfinex tether case postponed

New York Supreme Court Judge Joel M. Cohen has postponed issuing a decision on whether the Office of the New York Attorney General’s case against Bitfinex and Tether will stand.


Judge Cohen Requests More Time

As previously reported by Bitcoinist, Bitfinex and the New York Attorney General’s office has been enmeshed in a lengthy legal dispute over allegations that Bitfinex illegally conducted business activities in the state of New York. The matter was meant to move another step closer to resolution as both parties met before the New York Supreme Court today.

Rather than issue a decision, Judge Joel M. Cohen chose to delay making a decision, citing the need for more time to review the case. The NYAG had requested that Bitfinex and USDT stablecoin issuer Tether hand over documents pertaining to an alleged $850 million loan the exchange borrowed from Tether reserves to cover client losses.

The NYAG also alleges that Bitfinex violated the law by knowingly allowing users residing in the US to trade on its platform. 

Bitfinex Plagued by Scandals

Last Friday, in somewhat of a blockbuster reveal, Bitfinex admitted that a U.S.-based customer had successfully found a workaround to the Bitfinex’s restrictions to trade on the platform. A statement from Bitfinex’s website explained that:

We have now identified this user. We correctly flagged this user’s IP address as being in the U.S. Notwithstanding the U.S. IP address — which may be used by Bitfinex customers, as appropriate — our system logs demonstrate that this user represented to us several times that he was not an individual resident in the U.S. This person has lied to Bitfinex on multiple occasions, deliberately and wrongly concealed his location, and flagrantly violated our terms of service.

Bitfinex and Tether are calling for a motion to dismiss the case and the NYAG is seeking for the release of documents they claim are crucial to understanding exactly how and for what purpose the $850 million loan was issued.

Judge Cohen’s delay in issuing a final decision is likely to extend the current preliminary injunction by another 90 days. Cohen said, “I will extend the injunction…if I dismiss the case then obviously the injunction goes with it.

If I don’t dismiss the case the injunction will be extended.” Cohen further clarified that “the idea is to keep things where they are until the decision of this motion, so the decision is to extend the stay and…extend the injunction.” 

As things currently stand, Tether and Bitfinex are free to continue normal operations, with the exception being, Tether cannot lend additional funds to Bitfinex. 

Tether Keeps it Moving

Generally, Tether appears unconcerned about the kerfuffle with the NYAG and on Monday the company announced that its USDT stablecoin had launched on Blockstream’s Liquid Network sidechain. 

Liquid functions as an additional layer to Bitcoin’s blockchain and facilitates the speedy transaction of large volumes. Tether’s launch on liquid means users can now make atomic swaps between Liquid BTC and Liquid USDT.

According to Blockstream, atomic swaps ease and secure over-the-counter (OTC) trades. Liquid’s lightning-quick block times will also assist traders looking to quickly make transfers between exchanges and exploit arbitrage opportunities. 

Do you think the delay on the case will give Bitcoin room to rally? Share your thoughts in the comments below! 


Image via Shutterstock

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Bitcoin’s ‘Untouched Supply’ Reaches All-Time High of 21.6%

bitcoin piggy bank

Newly released data from Coin Metrics shows that the number of un-moved Bitcoin has risen to a new high. Does this mean Bitcoin is a better store of value or does it still have potential as a medium of exchange?


Is HODLing Bitcoin Back in Style?

Today, crypto-analyst and Tales From the Crypt podcast co-host Matt Odell noted that the amount of untouched Bitcoin has grown significantly over the past five years. Odell referenced a Coin Metrics chart which shows Bitcoin’s ‘untouched supply’ recently reaching a new all-time high. Untouched coins are those which have not been transferred from a wallet, and the chart measures Bitcoin held for 180 days to 2 years.

The data suggest that BTC is steadily becoming more of a store of value than a medium of exchange, but the significance of this suggestion various depending on one’s reason for acquiring Bitcoin. Those in the ‘Bitcoin to $100k’ camp will use the data to support the belief that Bitcoin is entering a bull market that will take it well above its previous all-time high. 

Others, like Willy Woo, might express concerns that the lack of Bitcoin circulation could lead to a decrease in volatility that could make the asset mirror the price action of commodities like gold. Earlier today, Adaptive Capital partner and crypto-analyst Willy Woo tweeted a chart of gold’s price action over the past century and asked: 

Essentially, Woo projected his concern that if the majority of BTC becomes held by a few wealthy hands, then this group will become the “new bankers”. The fact that Bitcoin has a limited supply and large institutional investors steadily accumulated cryptocurrency throughout 2018 means there is a degree of credibility to Woo’s concern.  

Will the ‘Untouched Supply’ Continue to Rising?

Tuur Demeester quickly countered Odell’s tweet by saying, “I’m not so sure… 5 years without updating your cold storage method is a long time in Bitcoin. IMO most of these coins are likely lost.” Closer investigation of Coin Metrics chart shows that there has been a noticeable uptick in the amount of ‘untouched coins’ on the 180-day and 1-year timeframe when compared against longer-time frames and this growth corresponds with Bitcoin’s price increase in USD. 

CoinMetrics also pointed out that: 

Although the size of the BTC supply has been consistently growing, the percent of the overall supply of BTC that has been untouched for at least five years also recently reached a five year high of 21.6%

If one takes the data from Coin Metrics literally, then it seems sensible to assume that as Bitcoin’s price continues to increase so will the number of untouched coins. Although there is the possibility that long-term holders who bought BTC at its $20,000 peak onto $16,000 could be looking to exit their positions as the digital asset approaches previous all-time highs. It’s likely these holders will be influenced by the strength of Bitcoin’s future rallies and its technical setup as it reaches these previous highs. 

Do you think the number of unmoved Bitcoin will rise as Bitcoin’s value increases? Share your thoughts in the comments below! 


Image via Shutterstock, Twitter @Woonomics, Matt_Odell

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Willy Woo Discusses the Greatest Threat to ‘Bitcoin’s Dream’

bitcoin caution

Popular crypto-analyst Willy Woo wonders if institutional investment will negatively impact Bitcoin price action. 


Willy Woo Wonders…

On Tuesday, Adaptive Capital partner and crypto-analyst, Willy Woo, tweeted out a thought that has long been on the minds of many Bitcoin investors.

In the semi-stream of consciousness that followed, Woo suggested that the primary reason for the commodity’s sh*tcoin like trading behavior is due to it existing in “a controlled market with a few hands holding a concentrated supply.”

While Bitcoin has proven to have an unshakeable network and zombie-like price action that always comes back to please, there is one major vulnerability that could negatively impact Bitcoin price action. According to Woo, this risk to the “Bitcoin dream” is the possibility of coins becoming concentrated into a few hands which will function as “the new bankers” 

This is a common theory bandied about throughout crypto-circles and there are a number of people who worry that institutional investment will lead centralization and a dampening of BTC’s price volatility.

Many investors are actually drawn to Bitcoin’s volatility and believe that this is part of the ‘magic’ of investing in the digital currency. If it’s price action began to mirror Gold its possible that some investors would lose interest and many would simply hodl Bitcoin as a store of value.

Is Bitcoin a Store of Value or a Medium of Exchange?

Earlier this year, Diar Research published a report showing that all throughout 2018 institutions were steadily accumulating Bitcoin; especially during November 2018 when the digital asset crashed to a yearly low. Given that Bitcoin’s coin supply is limited to 21 million and that many retail investors hold on to their coins, large-scale accumulation by institutions could present challenges. 

Woo ponders “what kind of monetary policy would be sensible to encourage distribution [and concludes] that the 49 year  Jubilee Cycle of debt forgiveness in Babylonian times looks pretty smart.” While cryptic, Woo’s mention of the Jubilee Cycle refers to the conclusion of seven cycles of Sabbatical years and its significant impact on the management and ownership of land in Biblical times. During the Jubilee, slaves and prisoners were supposed to be freed, and all debts were forgiven. Bitcoinist intends to contact Woo for further elaboration on the relevance of this reference. 

The Twitter community appeared deeply interested in Woo’s musings and a number of followers engaged with thought-provoking responses. Popular crypto-analyst Dave the Wave suggested that market cycles encourage increased distribution, whereas @less_is_a_lot suggested that solution is a “deflationary currency that can actually work as a medium of exchange.”

According to @less_is_a_lot, Bitcoin is nothing more than a complex speculative asset the wealthy use to “suck wealth” away from the dumb and greedy.

Some respondents also suggested that it will take a clear fiscal policy where large Bitcoin holders are taxed at a variable rate dependent upon the size of their holdings. @davidegallo suggests that such a tax would “encourage the emission of BTC in the real economy and therefore circulation and distribution.” 

Ultimately, Woo presents a fantastic question which will continue to gain relevance as institutional investors deepen their involvement with the crypto-sector. 

Do you think institutional investment will dampen Bitcoin’s price action? Share your thoughts in the comments below! 


Image via Shutterstock, Twitter@Less_is_a_lot, @Woonomic, @Davethewave

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Palestinian Authority: Cryptocurrency Will Bring Economic Freedom

palestinian authority cryptocurrency

The Palestinian Authority believes issuing a sovereign cryptocurrency token will reduce Palestine’s reliance on the Israeli shekel.


Palestinian Authority: First Money, then Power

Palestinian Prime Minister Mohammad Shtayyeh recently announced that his government will use cryptocurrency to bypass sanctions levied by Israel. Shtayyeh issued the statement while speaking before the Palestine Center for Computer Emergency Response in Ramallah on July 9. While speaking on Palestine TV, Shtayyeh said: 

The Palestinian economy has about 25 billion shekels [$7 billion] circulating in the local economy, but we’re not forced to remain dependent on the shekel.

Shtayyeh promised to consider every option and do whatever it takes to find a path to economic freedom that Israel cannot block. The 1994 Paris Protocol equips the Palestinian Monetary Authority (PMA) with the powers of a central bank, but the government has been unable to issue banknotes. The agreement was signed by the Palestinian Liberation Organization (PLO) and Israel in 1994 but it states that the shekel will be used “as means of payment for all purposes including official transactions.”

As a result, the Israeli shekel is one of the primary currencies in circulation, along with the Jordanian dinar, and the US dollar. 

Not All Good Ideas Work

In 2017, the PMA pitched the idea of launching a sovereign digital currency and the body hopes to have the digital asset ready within the next five years. In theory, using a sovereign digital asset to bypass sanctions sounds good but not everyone is on board with the idea. 

Najah University economics and social science professor Bakr Shtayyeh doubts that cryptocurrency will be economically feasible or practical for most Palestinians. Shtayyeh also questioned whether a Palestinian cryptocurrency will effectively separate Palestine from relying on Israel. Shtayyeh told Al-Monitor:

If Palestine has its own currency will it be able to prevent Israel from withholding tax clearance funds or controlling crossings and the movement of exports and imports? Will Palestine be able to conclude direct commercial deals with neighboring countries without the imported or exported goods passing through Israeli commercial ports. 

Shtayyeh believes that money is not the problem, rather, the Palestinian economy’s “complex economic and political reliance on Israel” is the true issue. According to Shtayyeh, “there are 170,000 Palestinians working in Israel who earn their salaries in the Israeli shekel [and] 80% of the trade exchanges with Israel are in shekels.” 

Furthermore, what foreign parties or countries would actually take the risk of violating international sanctions to transact with Palestine using its sovereign currency? Shtayyeh explained that in all reality, Israel will shun Palestine’s cryptocurrency and the countries reliance on the shekel will “remain unchanged”. 

Cryptocurrency to Alter the Post World War II International Order?

Security is another issue to consider, and Shtayyeh and Mazen al-Agha, an economics professor at the Palestinian Planning Center cautioned that Israel’s cybersecurity, cyberattack capability, and software development infrastructure is extremely advanced compared to Palestine.

Even if Palestine’s digital currency is developed to completion, there’s always the possibility that it could be compromised by outside cyberattacks. Shtayyeh and al-Agha suggest that a more realistic option would involve Palestine reducing trade exchanges with Israel and building special trade relations with neighboring countries. 

Palestine is not the first country to consider cryptocurrency as a method for overcoming oppressive governments or international sanctions. Currently, Iran, Cuba, Venezuela, and the citizens of Zimbabwe are considering cryptocurrency as a path to economic freedom.

All of the concerns aired by Shtayyeh and al-Agha are valid critiques that must be considered and while they may come off as skeptics, both agree that “in theory, it’s possible to issue this currency, but in practice, there are a lot of difficulties. Before issuing it, the PA needs to create a favorable economic environment.” 

Do you sovereign digital assets are a path to freedom for countries like Palestine, Venezuela, Iran, and Cuba? Share your thoughts in the comments below! 


Image via Shutterstock

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Circle Shifts Exchange Operations to New Bermuda Office

circle

As the U.S. lawmakers and the Treasury Secretary consider implementing stringent regulations against cryptocurrency, Circle has packed its bags and moved offshore to Bermuda.


Circle Moves to Evade Oppressive Regulation

As regulatory pressure continues to stack up against cryptocurrency companies, Circle has announced that it is moving nearly 100% of its exchange operations offshore. Circle made the announcement earlier today after receiving a Digital Assets Business Act license to conduct business in Bermuda. According to Circle CEO Jeremy Allaire, roughly 70% of Poloniex uses live outside the U.S, and Circle’s Bermuda-based office will now be in charge of these accounts. Allaire also said:

Europe and Asia are both pretty significant markets for us in particular [and] the USDC stablecoin is particularly popular with institutional Asian investors.

The Lack of Regulatory Clarity is Stifling Growth

It is possible that additional crypto-companies could follow suit as last week’s U.S. Senate and Congress hearings over Facebook’s Libra cryptocurrency thrust Bitcoin back into the spotlight. The closing comments from Steve Mnuchin suggested that more stringent regulation was coming to the industry, to prevent Bitcoin becoming “swiss-numbered bank accounts“.

A number of crypto-company CEOs have repeatedly expressed their frustration that the lack of a clear regulatory framework will give other countries the upper hand in developing blockchain and cryptocurrency infrastructure. Allaire said that “the lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the U.S.”  

Now that Circle is partially out of the reach of U.S. regulators, the company plans to hire 30 employees over the next 24-months and the focus will be on global markets. Allaire said: 

The project to establish a new international hub for our market, exchange and wallet services, was a major project. It took a long time working with the Bermuda government and the Bermuda Monetary Authority. 

Going forward, Circle intends to offer a more diverse set of assets and Poloniex could branch out to offer financial services. While Allaire did not elaborate on the exact nature of these services, he did reveal that more “yield-generating crypto accounts” could be on offer. 

Do you think that the lack of clear regulation is stifling the U.S. crypto market? Share your thoughts in the comments below! 


Images via Shutterstock

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Economist Saifedean Ammous, ‘Bitcoin Over Everything’

Bitcoin

In a recent tweet crypto analyst Saifedean Ammous says those investing in altcoins are losing a ‘zero sum game’.


Bitcoin Over Everything

Popular crypto analyst and economist Saifedean Ammous recently tweeted that any investor crypto investor not holding Bitcoin has already “lost the battle”. According to Ammous, cryptocurrency is “a zero sum game, and if you’re not in Bitcoin you’ve already lost.”

Ammous explained that the majority of altcoins simply copy Bitcoin and wise investors would choose to invest in the Bitcoin, as the digital asset has already rallied more than 300% in 2019. 

Ammous’s tweet was also a response to Blockstack CEO Muneeb Ali, who tweeted, “You can be long on Bitcoin and support other innovations in crypto. Crypto is not a zero-sum game.”

There is validity to Ammous’s conclusion that Bitcoin serves as an inspiration to all other cryptocurrencies, but the blanked statement that all altcoins are mere carbon copies of Bitcoin is a bit off the mark.

Ammous seems to believe that all other cryptocurrencies are “running an old scam” which is akin to money printing rather than innovation. To date, cryptocurrencies like Ripple and Stellar have found significant use cases, and Ripple is used by more than 200 financial institutions around the world. Both the XRapid and XCurrent products offered by Ripple have also helped to legitimize the crypto-sector in the eyes of large banks and remittance houses. 

Not Everyone Agrees

ShapeShift CEO Erik Voorhees replied to Ammous by saying: 

This is just not true. Once chain cannot optimize for all variables and all desired attributes of a digital asset. Thus multiple will exist, and further, while in part competitive, they are also in part complementary and constructive. “Only BTC” is a weaker landscape. 

From a developmental point of view, the crypto sector is still in its infancy and the near limitless array of cryptocurrency use cases means that there is plenty of room for the innovations non-Bitcoin networks offer. The ‘Bitcoin over everything’ perspective might be an appropriate phrase for traders but as a payments network there is still room for improvement.

Take for example, Binance DEX recently completed a $1.2 billion transaction using its native BNB token in just 1.1 seconds. All of this was done with a fee of $0.015. While Bitcoin is capable of easily handling these amounts it’s common knowledge that transaction speed is still in need of improvement. 

Do you agree or disagree with Ammous? Share your thoughts in the comments below! 


Images via Shutterstock

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Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500

bitcoin futures great buy at $8500

Crypto analyst John Kolovos recently told Bloomberg TV that Bitcoin price will drop to $8,500 before sharply rebounding.


4-Digit Bitcoin Price Is A Steal

Earlier this week Macro Risk Advisors chief technical analyst John Kolovos spoke with Bloomberg TV about Bitcoin price action and the recent Congressional and Senate hearings over Facebook’s Libra cryptocurrency. According to Kolovos, Bitcoin price is “going through a corrective process” and he placed emphasis on “process” in order to clarify that he does not believe Bitcoin is going through a trend changing correction. 

Kolovos explained that Bitcoin price is currently going through the motions of a classic ABCD correction and finding support around $9,000. Kolovos suggests that Bitcoin is nearly on the verge of stabilizing but cautioned that before this happens the digital asset is in for a more downside followed by choppy consolidation. 

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

Currently, Bitcoin price is finding support at the 50-day moving average but the presence of an M top (double top) formation could continue to attract bears. Additionally, the RSI still has room to drop before a healthy bounce. During the 2017 bull run, an RSI reading of 40 proved to be a reliable bounce point that attracted buyers. 

Why $8,500 instead of $7,500?

When asked about his thoughts on why the double top will complete at $8,500 to $9,000 instead of Bloomberg’s forecast that Bitcoin price could drop to or below $7,000, Kolvos outlined the following: 

  • There is a lot of price congestion in the current range. 
  • The prevailing trend on the long-term chart was very strong and a counter-trend trade is not advised.
  • There are buyers at lower levels between $9,000 and $8,000
John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

                                                  John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

Kolovos also explained that bulls are clearly in charge as Bitcoin is above the 50-week moving average and the break above the descending wedge in April 2019 was a clear indicator of the resumption of the long-term uptrend. Kolovos said:

Classic technical analysis tells you that this pattern, implication of which, gets you back to the old highs, which would be around $20,000. So the long-term trend tells me to buy the pullbacks so that’s the reason why I think we should be buying around $8,500. 

It could be a Rocky Weekend

At the time of publishing, Bitcoin price is holding above $10,000 and trading in a tightening range between $10,300 – $10,600. Price action has been relatively choppy throughout this week and the current rumor that the Commodity Futures Trading Commission (CFTC) is investigating BitMex for allowing U.S. residents to use the platform has shaken traders interim confidence in the crypto-market. In 2019 weekends have tended to witness whipsaw volatility from Bitcoin so the next 48-hours could see a series of decisive moves from Bitcoin. 

Do you think Kolovos is on the money about his $8,500 Bitcoin price prediction? Share your thoughts in the comments below! 


Images via Shutterstock, Bloomberg

The post Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500 appeared first on Bitcoinist.com.

Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500

bitcoin futures great buy at $8500

Crypto analyst John Kolovos recently told Bloomberg TV that Bitcoin price will drop to $8,500 before sharply rebounding.


4-Digit Bitcoin Price Is A Steal

Earlier this week Macro Risk Advisors chief technical analyst John Kolovos spoke with Bloomberg TV about Bitcoin price action and the recent Congressional and Senate hearings over Facebook’s Libra cryptocurrency. According to Kolovos, Bitcoin price is “going through a corrective process” and he placed emphasis on “process” in order to clarify that he does not believe Bitcoin is going through a trend changing correction. 

Kolovos explained that Bitcoin price is currently going through the motions of a classic ABCD correction and finding support around $9,000. Kolovos suggests that Bitcoin is nearly on the verge of stabilizing but cautioned that before this happens the digital asset is in for a more downside followed by choppy consolidation. 

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

Currently, Bitcoin price is finding support at the 50-day moving average but the presence of an M top (double top) formation could continue to attract bears. Additionally, the RSI still has room to drop before a healthy bounce. During the 2017 bull run, an RSI reading of 40 proved to be a reliable bounce point that attracted buyers. 

Why $8,500 instead of $7,500?

When asked about his thoughts on why the double top will complete at $8,500 to $9,000 instead of Bloomberg’s forecast that Bitcoin price could drop to or below $7,000, Kolvos outlined the following: 

  • There is a lot of price congestion in the current range. 
  • The prevailing trend on the long-term chart was very strong and a counter-trend trade is not advised.
  • There are buyers at lower levels between $9,000 and $8,000
John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

                                                  John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

Kolovos also explained that bulls are clearly in charge as Bitcoin is above the 50-week moving average and the break above the descending wedge in April 2019 was a clear indicator of the resumption of the long-term uptrend. Kolovos said:

Classic technical analysis tells you that this pattern, implication of which, gets you back to the old highs, which would be around $20,000. So the long-term trend tells me to buy the pullbacks so that’s the reason why I think we should be buying around $8,500. 

It could be a Rocky Weekend

At the time of publishing, Bitcoin price is holding above $10,000 and trading in a tightening range between $10,300 – $10,600. Price action has been relatively choppy throughout this week and the current rumor that the Commodity Futures Trading Commission (CFTC) is investigating BitMex for allowing U.S. residents to use the platform has shaken traders interim confidence in the crypto-market. In 2019 weekends have tended to witness whipsaw volatility from Bitcoin so the next 48-hours could see a series of decisive moves from Bitcoin. 

Do you think Kolovos is on the money about his $8,500 Bitcoin price prediction? Share your thoughts in the comments below! 


Images via Shutterstock, Bloomberg

The post Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500 appeared first on Bitcoinist.com.

Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500

bitcoin futures great buy at $8500

Crypto analyst John Kolovos recently told Bloomberg TV that Bitcoin price will drop to $8,500 before sharply rebounding.


4-Digit Bitcoin Price Is A Steal

Earlier this week Macro Risk Advisors chief technical analyst John Kolovos spoke with Bloomberg TV about Bitcoin price action and the recent Congressional and Senate hearings over Facebook’s Libra cryptocurrency. According to Kolovos, Bitcoin price is “going through a corrective process” and he placed emphasis on “process” in order to clarify that he does not believe Bitcoin is going through a trend changing correction. 

Kolovos explained that Bitcoin price is currently going through the motions of a classic ABCD correction and finding support around $9,000. Kolovos suggests that Bitcoin is nearly on the verge of stabilizing but cautioned that before this happens the digital asset is in for a more downside followed by choppy consolidation. 

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

John Kolovos: Bitcoin Futures Are A Great Buy At $8500

Currently, Bitcoin price is finding support at the 50-day moving average but the presence of an M top (double top) formation could continue to attract bears. Additionally, the RSI still has room to drop before a healthy bounce. During the 2017 bull run, an RSI reading of 40 proved to be a reliable bounce point that attracted buyers. 

Why $8,500 instead of $7,500?

When asked about his thoughts on why the double top will complete at $8,500 to $9,000 instead of Bloomberg’s forecast that Bitcoin price could drop to or below $7,000, Kolvos outlined the following: 

  • There is a lot of price congestion in the current range. 
  • The prevailing trend on the long-term chart was very strong and a counter-trend trade is not advised.
  • There are buyers at lower levels between $9,000 and $8,000
John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

                                                  John Kolovos: Bitcoin Has A Bullish Outlook In Long Term

Kolovos also explained that bulls are clearly in charge as Bitcoin is above the 50-week moving average and the break above the descending wedge in April 2019 was a clear indicator of the resumption of the long-term uptrend. Kolovos said:

Classic technical analysis tells you that this pattern, implication of which, gets you back to the old highs, which would be around $20,000. So the long-term trend tells me to buy the pullbacks so that’s the reason why I think we should be buying around $8,500. 

It could be a Rocky Weekend

At the time of publishing, Bitcoin price is holding above $10,000 and trading in a tightening range between $10,300 – $10,600. Price action has been relatively choppy throughout this week and the current rumor that the Commodity Futures Trading Commission (CFTC) is investigating BitMex for allowing U.S. residents to use the platform has shaken traders interim confidence in the crypto-market. In 2019 weekends have tended to witness whipsaw volatility from Bitcoin so the next 48-hours could see a series of decisive moves from Bitcoin. 

Do you think Kolovos is on the money about his $8,500 Bitcoin price prediction? Share your thoughts in the comments below! 


Images via Shutterstock, Bloomberg

The post Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500 appeared first on Bitcoinist.com.

Hodl Hodl And L2B Global To Launch New Bitcoin OTC Desk

hodl hodl OTC Bitcoin trading

Hodl Hodl and L2B have partnered to provide multi-sig contract guaranteed services that will make Bitcoin OTC trading safer and faster.


OTC Bitcoin Transactions are now Safe and Easy

A recently announced partnership between hodlhodl.com and L2B Global means Bitcoin traders will have another rock-solid option when looking to transact over-the-counter (OTC). Hodl Hodl provides multi-signature contracts for peer-to-peer trading and this eases the process of buying and selling for traders looking to make large OTC transactions. 

Hodl Hodl even has a privacy mode called “Private Offers” which allows traders looking to deal off the public order book to connect with other buyers/sellers through a special link. L2B Global, a regulated European broker, facilitates OTC transactions and also handles custody-based transactions on the buy and sell-side. The company is deeply liquid and its banking and compliance network allows them to quickly process large transactions without a hiccup.

Traders Access Deep Liquidity at Lightning Speed

Initially, the partnership between the two companies will focus on the provision of a one-stop solution for all OTC participants. Hodl Hodl CEO Max Keidun said: 

Our cooperation with L2B Global will be able to add more liquidity to hodlhodl.com…in the upcoming months, we plan to expand our newly formed OTC desk to Europe, Central Asia, and the Middle East.” 

Keidun also said the company plans to move into the Eastern European regions as the “region lacks a proper OTC solution while having huge liquidity and significant interest in Bitcoin from wealthy families and institutional players. 

L2B Global also believes that Hodl Hodl’s multi-signature settlement and arbitration system will enable the firm to quickly process high volumes and transaction settlement for clients. LB2 Global CEO Nik Oraevskiy explained that “Until now, our matching deals relied on slow legacy trust structures and mounds of paperwork” 

Crypto Can’t Be Stopped

Despite Bitcoin’s recent bearish price action, the partnership between HodlHodl and L2B Global shows that venture capitalists, hedge funds and large financial institutions are still deeply interested in participating in the next Bitcoin rally and beyond. 

At the moment, traders eagerly await the launch of Bakkt’s Bitcoin exchange, TDAmeritrade’s Bitcoin trading services and it could be just a matter of time before Fidelity Digital Asset Services rolls out a product aimed toward retail investors. 

The debut of multi-sig OTC contracts should also help to address the issue of OTC trades gone wrong, an issue that has somewhat frequent in the crypto-sector. The partnership also underscores the resiliency and ingenuity of Bitcoin and those working in the sector. 

After a nearly two-year delay on the approval of a Bitcoin-ETF, an approval date is still nowhere in sight. Fortunately, entrepreneurs within the space have simply shrugged off the constant resistance the sector faces from regulatory authorities and continued to innovate. 

Do you think the partnership between Hodl Hodl and L2B Global is a sign of mass Bitcoin adoption? Share your thoughts in the comments below! 


Images via Shutterstock

The post Hodl Hodl And L2B Global To Launch New Bitcoin OTC Desk appeared first on Bitcoinist.com.

Former Cryptopia Developer Says Hack Was ‘Inside Job’

Cryptopia

Vcdragon, a former developer and co-founder of Cryptopia exchange, has released new evidence detailing exactly how Intranel intentionally destroyed the exchange.


Former Cryptopia Developer Spills the Beans

On July 18 @notsofast, a twitter user claiming to be a former developer at Cryptopia, tweeted a link to an article which he claims provides “the complete story of the fraudulent hostile takeover of Cryptopia_NZ by Intranel from its founders Adam and Rob”

According to @notsofast, “Intranel inside-job hacked Cryptopia.”

According to vcdragon, the author of the steemit post, he and Cryptopia co-founder (Adam) began building Cryptopia as a hobby project around January 2014. As the project took form, Adam eventually resigned from his developer position at Intranel.

vcdragon explained that Intranel did not want to lose Adam as an employee and offered the duo a room to rent in their company office. Intranel’s interest continued to grow as the crypto market and exchange took off.

At the start of 2017, Adam and vcdragon felt that they could benefit from the business development support Intranel could provide. vcdragon explained that: 

Intranel made us an offer that for 20% of the company they would handle all of the business management and development things like helping with hiring and managing staff, paying tax, lobbying for regulator guidance and all the ‘boring’ business stuff.

The firm also offered to contract 4 of their staff to the developers at a discounted rate and also provide assistance with finding top talent for Cryptopia. It was at this point that the story takes a turn for the worse. According to the lengthy and detailed post, Intranel hired staff for themselves and contracted these newly acquired employees to the Cryptopia founders at “exorbitant rates”. New staff were given unwarranted managerial latitude and once Cryptopia was reliant on new staff, Intranel demanded an extra 5% equity in the exchange. 

Intranel “Bled Cryptopia Dry”

Eventually, Adam resigned from the pressure and vcdragon followed Intranel’s advice to take a holiday in order to avoid burnout. vcdragon claims he was not paid during his 1 month holiday and found that his workspace had been filled upon returning to Intranel.

Vcdragon also said Intranel issued a dividend to everyone except Adam and himself, and explained that Intranel “forced the extra 5% as they needed the extra shares to block any major transaction the company tried to undertake so that we could not achieve a 75% threshold.” 

The former developer alleges that Intranel bled Cryptopia dry while also methodically absorbing the company into its ownership. Intranel supposedly issued themselves a loan for $300,000 to cover “startup costs” and they repeatedly took on clients using Cryptopia’s name, then billed the company for the work. 

They bled money everywhere they could, we paid for tax on their staff’s flu shots? We paid taxes on Christmas fits to their staff and our company bought the gifts. Everything they were unable to take for themselves they pissed into the wind on needless expenses and luxuries to the company could not afford….that ultimately buried us. 

Apparently, Intranel attempted to sell the company right “out from underneath” the co-founders on 3 separate occasions. By the time Intranel was forcibly separated from Cryptopia, the company was nearly bankrupt. 

The Saga Continues

Vcdragon ends his article by concluding that he believes the hack was intentionally deployed to cover all of the idiotic business practices. Their plan to completely absorb and wreck Cryptopia was interrupted after they were “forcibly removed from the company”. Vcdragon fears that the saga is not yet complete as Intranel are currently partnered with ANZ, a bank that previously refused to provide Cryptopia with banking services, and PWC, a firm which is tasked with providing legal counsel to Cryptopia. 

Do you believe vcdragon’s side of the tale? Share your thoughts in the comments below! 


Images via Shutterstock, Twitter

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Study Finds Bitcoin’s Most Volatile from Midnight to 1 A.M. (UTC)

bitcoin

Data analysts at Longhash found that Bitcoin’s price action fluctuates most from midnight to 1 a.m. UTC. Could this present an opportunity for day traders?


 Does the Early Bird Get the Worm?

A recently published report from Longhash found that Bitcoin’s most volatile trading hours occur between midnight and 1 a.m (UTC). The data analytics collective used Crypto Data Download to analyze Coinbase trading data from July 6, 2017, to July 2, 2019. The team observed hourly high and low prices for each hour of each day and then compared this data set to the remaining 23 hours of each day. 

The results show that for the past two years, midnight to 1 a.m. UTC has been the time slot where Bitcoin’s price experienced the most volatility. 1 a.m UTC is especially volatile and has a greater number of daily highs and lows than any other hour of each day. It’s possible that 1 a.m UTC is exceptionally volatile as it matches with the start of the evening in North America and beginning of the 8-hour workday in Asia.

It’s fair to say that this is likely one of the times where Western and Asian traders are both actively trading cryptocurrency. The traders in Asia are just waking up and responding to the crypto news of the day, while the red-eyed North American traders are still staring at their keyboards and observing Asian traders reaction to crypto price action. 

Daytrade or Hodl?

The chart also shows that there is not a routinely ‘perfect’ time of day to trade Bitcoin and the data set from the last two years suggests that one would have been more likely to buy into a daily low than a high if the purchase was made between 3 a.m. to noon UTC. Longhash cautions that the differences are minuscule and advises that traders not apply the information to their daily trading strategy. 

Ultimately, time and Bitcoin’s price action show that time spent invested in the digital assets is much more fruitful than attempting to time the market and purchase on price swings. A quick look at any long-duration chart supports this conclusion. 

Do you think its better to day trade or hodl Bitcoin? Share your thoughts in the comments below! 


Images via Shutterstock, Longhash

The post Study Finds Bitcoin’s Most Volatile from Midnight to 1 A.M. (UTC) appeared first on Bitcoinist.com.

Another Canadian Town to Accept Bitcoin Payments For Property Taxes

bitcoin

Bitcoin takes another step toward mass adoption as a Toronto suburb favorably votes to accept Bitcoin for property tax payments.


Cash, Credit or BTC?

Canadians living in the Toronto suburb of the City of Richmond Hill can now pay their property taxes in Bitcoin thanks to a partnership between the municipality and Coinberry. Coinberry is a Toronto-based crypto-solutions provider and trading platform. Its partnership with the City of Richmond Hill is the second contract the company has inked for processing property taxes. Coinberry’s second client is the Town of Innisfil which is also part of metropolitan Toronto. 

bitcoin

On July 10, the city council of Richmond Hill voted to accept Bitcoin as property tax payments, and the option extends to residents as well as businesses in the suburb. When clients make their property tax payments the funds are received by Coinberry and converted into Canadian dollars. This means that the City of Richmond Hill and Innisfil don’t actually hold cryptocurrency for any length of time. 

Mayor says Bitcoin is the Future of Money 

Municipal staff in the City of Richmond Hill estimate that they will be able to accept payments as soon as September 30, but this is dependent upon the amount of time it takes to integrate Coinberry’s technology to existing infrastructure.  Joe di Paola, the deputy mayor of the City of Richmond Hill, said that:

We believe that the demand for a digital currency payment option is only going to grow in the coming years, especially amongst millennials. Our Council was aware of Coinberry’s successful implementation of a digital currency payment service with the Town of Innisfil, and since there was no cost and no risk to do the same, it made the decision that much easier for us.

Similar partnerships have also been struck in the United States where earlier this year the state of Ohio passed a bill allowing businesses to pay up to 23 various taxes in Bitcoin. The state legislatures in the U.S states of Wyoming and Colorado also have passed legislation which makes it easier for blockchain and cryptocurrency businesses to operate in the state. 

Do you think the Bitcoin will eventually be accepted for tax payments worldwide? Share your thoughts in the comments below! 


Images via Shutterstock

The post Another Canadian Town to Accept Bitcoin Payments For Property Taxes appeared first on Bitcoinist.com.