Říj 13

Sunday Digest: Bitcoin Price Consolidation, And The SEC Spoils The Party

Japan was hit by Typhoon Hagibis this weekend, causing devastation and affecting both the Japanese Grand Prix and Rugby World Cup. So what has been causing devastation and affecting bitcoin and cryptocurrency markets for the past week?


Bitcoin Price: Consolidation Station

So it seems we are back in a consolidation phase, albeit around the lower underlying price point of $8k.

Monday saw a dip down to $7,800, prompting some to herald the long-awaited return of an alt season that some think will never come.

Bitcoin price bounced back up to $8200 on Tuesday, but a whale move of 13,180 BTC on Wednesday sparked fears of another dump.

That dump never materialized, with the price actually pushing higher towards $8600. Although, perhaps a “terminal shakeout”, is what the market really needed to spur another bull-run, suggested one analyst.

Fundstrat’s Tom Lee felt that the next breakout was more reliant on a positive move from the S&P500, however.

Whatever will spur the next breakout, didn’t come this week, as price slipped gradually back to the $8300 level.

Bitcoin Network: Evolution Vs Revolution

The Bitcoin network isn’t perfect (there, I said it). If it was then there would have been no need for the flood of ‘improved’ altcoin clones which we see today. However, there are some interesting updates in the pipeline, including the Schnorr and Taproot soft-fork.

This aims to improve scalability and fungibility, amongst several other updates. So is this going to deal with all of the legacy ‘issues’ with bitcoin scalability and spur a new wave of fans getting on board?

Not according to BitMEX, which doesn’t see network improvements or second-layer solutions like Lightning Network as a magic button with immediate effects. Instead, it says, Bitcoin may slowly improve over the years, rather than gain the sudden technological jump that users want.

Meanwhile, Ethereum’s upcoming upgrade to ETH2.0 has been labeled a “scam” by critics over claims of scalability. But then, by now we all realize that in the crypto-world, haters gonna hate harder.

One DEX Opens, Another One Closes

On Monday, John McAfee launched his Twitter-teased KYC-free decentralized exchange (DEX), McAfeedex. Initially only allowing listings of Ethereum-based coins, it did have the benefit of those listings being completely fee-free.

Then on Tuesday, Aphelion closed down its DEX platform making the native APH token worthless. It is not believed that this was due to the launch of McAfeedex, rather the relative lack of interest in DEX solutions currently.

News In Brief

Binance quietly added WeChat and Alipay onramps to its P2P trading solution for the Chinese market. This move was so quiet however, the WeChat and Alipay weren’t aware of it, and nixed the whole thing as soon as they found out.

Bakkt futures products have been gaining momentum after a slow start, while Grayscale is trying to tempt high-flyers with zero premium on GBTC.

Ripple announced an updated release schedule regarding the 55 billion XRP it holds in escrow. According to the new list, Ripple will be flooding the market with its personal stash for the next 18 years.

Meanwhile, Ripple CEO, Brad Garlinghouse threw shade at Facebook’s Libra, claiming it would not launch in the next three years. At the same time, he made a flawed analogy between XRP and oil, in an attempt to defend against accusations that Ripple sold XRP as an unregistered security.

In more bad news for Libra, Visa, Mastercard, and Stripe followed PayPal out of the Libra Association, following strong warnings from US Senators.

The ‘widow’ of QuadrigaCX CEO, Gerald Cotten, will allegedly handover assets of the exchange still in her possession, along with her husband’s entire estate, and a vast majority of her personal assets, to liquidators for the compensation of the exchange’s customers.

UNICEF is accepting funds in Ether and BTC, and in a surprising move, will not convert these funds into fiat, but distribute and use them in original form.

Ether was ruled to be a commodity by the CFTC, paving the way for ETH derivatives markets.

And Finally…

The SEC was due to give Bitwise Investments a decision on its application for approval for a Bitcoin-ETF by today. On Tuesday, Managing Director, Matt Hougan, said the company was optimistic about approval being given.

Hougan didn’t have to wait until today to find out, as the SEC gave its final decision before the final deadline. Unfortunately, it was bad news for anyone hoping to finally see a regulated Bitcoin-ETF.

The SEC also managed to put the kibosh on Telegram’s planned $1.7 billion planned ICO, at least for the time-being.

What do you make of this week’s bitcoin and crypto news? Let us know your thoughts in the comment section below!


Image via Shutterstock

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Říj 11

Bitcoin Miners Drove Price Volatility In 2018 Bear Market, Says New Data

Bitcoin miners are behind spikes in price volatility which saw the largest cryptocurrency hit $3100 in 2018, new data suggests.


Miner Sell-Offs Preceded BTC Price Floor

In fresh analysis uploaded to social media on October 11, on-chain intelligence resource Token Analyst revealed miners selling coins directly influenced the Bitcoin price.

Specifically, large sell-offs coincided with BTC/USD dropping to $3100 late last year. Large chunks of coins moved to exchanges in June and August, which “drove the price down even further.”

“We see miners taking advantage of volatility by sitting on their mined stash and then selling aroung (sic) large price swings,” Token Analyst summarized.

Bitcoin mining chart

Bitcoin mining chart

The data followed up on previous findings by Decentral Park senior research analyst Elias Simos, who in August tracked to which Bitcoin mining rewards went over time. Before the 2016 block reward halving, more independent miners shared the coins.

“70% of the reward went to non-mining pool affiliated entities, in the beginning. This figure is now at ~25%,” Simos found. He described the current mining period as the “professional era.”

Miners And Price Control

Token Analyst’s data adds fuel to mounting theories about the overall role miners play in dictating the Bitcoin price. 

As Bitcoinist reported, well-known commentators are also increasingly aware of the phenomenon. Chief among them is PlanB, whose stock-to-flow Bitcoin price model has demonstrated the importance of miner participation. 

Another well-known hypothesis, championed by Bitcoinist contributor Filb Filb, Cole Garner and others, revolves around miners sustaining minimum BTC prices.

This week, Garner referenced Bitcoin creator Satoshi Nakamoto in endorsing the concept. In 2010, Nakamoto had claimed the price of a commodity “tends to gravitate toward the production cost.” 

“If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more,” he added.

As such, it is unlikely that miners will sell at levels below around $6400 under current conditions, leading to the conclusion the figure represents a new price floor for Bitcoin. 

For everyone, the next block size halving in May 2020 represents a key moment. As with 2016, overall momentum should start to build for new price highs after the block reward drops to 6.25 BTC per block.

What do you think about Token Analyst’s data? Let us know in the comments below!


Images via Shutterstock, chart by thetokenanalyst

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Říj 08

Bitcoin is Still Best-Performing Asset YTD Despite Bearish Q3

Summing up the returns as at the end of the third quarter, Bitcoin is the best-performing asset year-to-date despite the September crash.


Bitcoin is the Indisputable Winner

On January 1, the oldest cryptocurrency out there started at $3,746, according to Coinmarketcap data. At the time of writing, Bitcoin is trading at around $8,204 as at 01:34 PM UTC. This suggests a 119% year-to-date gain, which makes BTC the best performing asset so far.

The chances are that the cryptocurrency will keep this label till the end of the year.

Bitcoin almost touched the $14,000 level at the end of June. However, the digital currency left the YTD peak to form a descending triangle that was finally broken below in September. In fact, last month Bitcoin had its worst four-weeks since November 2018 and one of its worst quarters ever in terms of percentage performance. Despite that, the king of crypto continues to dominate the space and show higher returns than traded companies, commodities, and other assets.

Interestingly, Bitcoin is still the first violin of the crypto space as the long-awaiting altcoin season hasn’t really started yet.

Major Assets Are Not Even Close

So how does BTC compare to other assets? Well, if you check gold, an asset that shares some similarities with Bitcoin in terms of scarcity and use, you’ll see that it displays a 16% YTD return. The commodity has benefited from the Sino-US trade conflict, Brexit uncertainty, and geopolitical tensions.

Elsewhere, Nickel is the best performer among commodities, gaining over 63% since January 1.

The S&P 500 index has increased by more than 20% since the start of the year. This is an excellent result for the US stock market index, which updated the record high several times but it’s still not enough to compete with Bitcoin. Here is how the cryptocurrency compares to S&P 500, NASDAQ, oil, and gold:

Bitcoin trading chart

BTC’s performance and volatility level prove that it doesn’t correlate with traditional assets, which makes it a great diversification option.

While Bitcoin has shown the best results among major assets, there are some high-risk assets with better returns, such as lesser-known tokens or penny stocks.

Do you think Bitcoin will be the best performing asset in 2020 as well? Share your thoughts in the comments section!


Images via Shutterstock, BTC/USD chart by TradingView

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Zář 29

US Stocks Dip on New Trade Tensions; Should Investors Move To Bitcoin?

As reported by the Financial Times yesterday,  market participants are not too sure about the latest trade developments between the US and China. Coupled with Washington’s political scenario concerning Trump’s impeachment row, stock prices fell on Friday. Does this mean that bitcoin (BTC) is the obvious alternative now for investors?  


S&P 500 Falls, Nasdaq, and Dow Jones Too

Wall Street stocks took a hit on Friday, in response to latest reports coming from the White House. As per, the Inquirer, the US government is considering restricting American business investment in China and the country’s assets. Plus delisting Chinese companies from US stock markets is also on the cards.

The S&P 500 registered its worst performance in 5 weeks by falling one percent through the week. It closed the day on Friday at 2,961.80, with a 0.5 percent loss. Nasdaq Composite Index fell 1.1 percent to end the day at 7,939.63, and the week with a 2.2 percent drop. The Dow Jones Industrial Average also joined the downhill ride with a 0.5 percent drop to 26,820.25.

BTC Markets Are Shaky At the Moment

As per an analysis published by Bitcoinist a couple of days ago, massive margin call liquidations from Seychelles based bitcoin derivates exchange BitMEX is responsible for the sad state of BTC markets. But there are other possible factors too which might have led to the same.

Zooming out the picture, in the current quarter, it can be seen that bitcoin prices have put up a dismal performance so far. With the latest crash to $7,800, down from recent levels above $10,000, BTC is on track to log the worst third quarter since 2014.

Atlantic Capital founder, Bruce Fenton added further perspective to this matter in his latest interview with BlockTV. On being asked about his opinion on the latest BTC pullback putting a bad reputation on investment attractiveness in the space, he said the current conditions are part of the natural cycle of cryptocurrency markets.

Nonetheless, Bruce pointed out that it’s a concerning thing. If a lot of investors lose money due to such sporadic volatility, then it turns them off from the market, he said.

The most high-quality coin is bitcoin, and that has the largest market cap. But even bitcoin is still very risky and speculative. It’s a speculative risky asset. I believe in it. I believe in its superior technology. It think we can demonstrate and prove that it is superior technology. But…. superior technlogy doesn’t always win, in terms of economic performance. 

On speaking about BTC’s safe-haven narrative, Mr. Fenton’s said that although he has benefitted from being an early adopter in the top crypto asset, he doesn’t believe in bitcoin being an investment alternative in times of downturn. Although people should have some exposure compared to not having BTC at all.

Bitcoin In Macro Bull Trend & Will Bounce Back Soon

Noted cryptocurrency analyst, Josh Rager came out with a rather positive stance in response to the current bitcoin market situation.

On BTC’s 42 percent pullback over 91 days this year, he opined that this isn’t a big deal, as bitcoin has seen 75 percent pullback to lows coupled with a 1600 percent surge to all-time highs. This phase too shall pass and there will be a great resurgence in buying sentiment in the market in the near future.

Also according to Hans Hauge of Ikigai Asset Management, bitcoin fundamentals are pretty robust and BTC as a solid investment platform is not going anywhere.

Has the current pullback dashed your hopes in bitcoin, or is this another buying opportunity? Let us know your thoughts below. 


Images via Bitcoinist Image Library, Twitter: @ReformedBroker, @skew_markets, @Josh_rager

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Zář 21

‘BTC’ Is More Popular Than ‘Bitcoin’ On Google

Baidu search trends in 2019 show Chinese bitcoin interest being driven largely by price action news. Meanwhile, ‘BTC’ has become a more popular search term than ‘bitcoin’ according to data from Google Trends.


Chinese Bitcoin Interest is News Driven

Tweeting on Friday trader and analyst Alex Krüger revealed spikes in Chinese bitcoin interest as shown by Baidu searches coincided with significant price action and news events.

The chart below from Krüger shows massive spikes during the April Fool’s breakout, late June price rally to $13,800, and the VanEck ‘pseudo-ETF’ news to name a few.

On average, Chinese interest in bitcoin for 2019 has been on the rise. Back in June, Bitcoinist reported that there was a growing BTC interest in China amid tighter capital controls and the trade war with the United States.

On the global level, data from Google Trends shows a continued decrease in bitcoin interest since hitting its 2019 peak in the last week of June 2019.

Coincidentally, this period was also when the top-ranked cryptocurrency pulled off its rise to the current 2019 all-time high (ATH).

Chinese bitcoin interest

Compared side-by-side, Baidu and Google search trends for bitcoin paint a somewhat similar picture. The Google Trends chart also shows significant peaks in early April, mid-May, and late-June — periods that coincide with massive price rallies.

In the last few weeks, bitcoin’s price action has remained flat with successive retracements below $10,000 followed by an immediate climb towards the $10,300 resistance level.

BTC 7 Times More Popular than Bitcoin

In a related development, BTC is now a more popular search term than bitcoin on Google. Comparing both on Google Trends shows that sometime after early August, there was a huge spike in interest in BTC over bitcoin.

bitcoin and BTC interest

Despite a significant decline since the start of September, BTC popularity as a search term on Google Trends still outpaces bitcoin by more than 86%.

Why does this matter? — well, being the general trading name for bitcoin, it is possible that some traders are trying to manipulate the market by propping up interest in BTC.

Trading bots set up to enter into positions and execute trades based on algorithms data mining patterns between BTC searches and price trends could be gamed into thinking there is a spike in bitcoin interest.

Trijo News, a Swedish crypto media outlet first reported on the inorganic trend revealing that it began in Romania.

Do you think some traders are trying to game the system using inorganic BTC searches? Let us know in the comments below.


Images via Bitcoinist Image Library

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Zář 17

Bitcoin Price to Surge After Crossing $10,700: Analyst

Bitcoin price inched lower on Tuesday as investors waited for the outcome of the Federal Reserve’s two-day meeting on monetary policy.


The benchmark cryptocurrency slipped by $44.70, or 0.44 percent, to $10,217.84 as of 13:09 UTC. The downside price action occurred on the sidelines of better-performing alternative cryptocurrencies. While the second-most valuable blockchain Ethereum climbed 2.18 percent against bitcoin, XRP became the second-largest gainer against the king cryptocurrency after rising 5.97 percent. Other altcoins, including Bitcoin Cash, Litecoin, and EOS, also registered impressive gains.

bitcoin, bitcoin price

Bitcoin slips as altcoins surge higher this Tuesday | Image credits: TradingView.com

There is a notion that bitcoin didn’t live up to its “safe-haven asset” status in the face of an adversary. Recent drone attacks on two Saudi Arabia’s crude oil production facilities ended up messing an already worsening global economic outlook. The US’ S&P 500, China’s CSI, and Europe’s Stoxx 600 each dwindled as investors digested the long-term prospects of the Saudi attack. Analysts believe the incident would halt the global oil supply for months, the effect of which will start reflecting on the health of the international markets. 

“While the ultimate impact will depend on a combination of the extent of damage, the US and Saudi response, and whether further attacks occur, the current production decline will exacerbate the tightening in the oil market that was already underway and could add a more lasting geopolitical risk premium to prices,” Greg Sharenow, a portfolio manager at Pimco, told FT.

Almost all the haven assets responded positively to the Saudi attacks. Gold and Treasuries rose as investors looked at them as hedging assets. Unfortunately, bitcoin didn’t live up to the expectations.

The Fed Meeting

All eyes are now on the Federal Reserve meeting that commences today. Markets expect the US central bank to cut interest rate by a 25 basis-point, as the Fed chair Jerome Powell continues to face political pressure from President Donald Trump. Powell’s office will update its dot plot, a visual representation of the direction of the interest rates, while the chairman himself will address the attendees tomorrow with a final decision.

Changes to the dot plot could see influence from the ongoing US-China trade war and Saudi attacks. It would also consider Bank of America Merrill Lynch’s September fund manager poll that found that 38 percent of investors expect a recession over the next 12 months.

Bitcoin Bulls At It

Speculators in the cryptocurrency market see rate cuts as bullish for bitcoin. Coupled with the launch of Bakkt’s most-awaited physically-settled bitcoin futures, traders predict at least a $10,700 bitcoin by the end of this week. But to this date, Bitcoin has least reacted to any of such updates, as visible in the cryptocurrency’s dismissive performance after the European Central Bank (ECB) announced fresh rate cuts and quantitative easing rounds last week.

Dan Tapeiro, the founder of New York-based DTAP Capital, meanwhile brings in a technical perspective. The analyst on Monday said bitcoin could accelerate higher if it manages to “strongly close over $10,700.” The level roughly matches shoulders with a descending trendline.

He, meanwhile, added:

“Everyone “knows” that fact already. In traditional markets, when everyone knows the fact it is considered “priced in.” In Bitcoin, you never know what’s priced in. But it doesn’t matter because Bitcoin doesn’t care about your opinion.”

To sum up, bitcoin can go up, but it can go down also.

Do you think Fed rate cuts will push bitcoin price past $10,700 this week? Let us know in the comments below.


Images via Bitcoinist Image Library, BTC/USD charts by TradingView, Twitter: @thehill, @DTAPCAP

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Zář 15

Tim Draper Says $250,000 Bitcoin Price Prediction is Conservative

Billionaire venture capitalist Tim Draper says his bitcoin price forecast of $250,000 by 2022 understates the power of BTC.


Inflation and Government Distrust Will Boost Bitcoin Price

Speaking to BlockTV, Draper described his famous $250,000 bitcoin price forecast as being conservative. According to Draper:

$250,000 means that bitcoin would then have about a 5% market share of the currency world and I think that may be understating the power of bitcoin.

The billionaire investor has consistently maintained his popular bitcoin price prediction calling it “absolutely solid” back in 2018.

The stock-to-flow (S2F) model puts bitcoin’s price post-halving at $50,000. Based on the current number of BTC in circulation, the bitcoin market capitalization at just under $1 trillion.

Thus, Draper’s forecast places bitcoin firmly in the league of assets like gold with market caps in the trillions of dollars range.

As previously reported by Bitcoinist, BTCC founder Bobby Lee believes the bitcoin price could reach $200,000 “in a very short time.”

According to Lee, bitcoin hitting $20,000 again will be the trigger for an even greater parabolic advance that would see the BTC all-time high (ATH) price entering a new order of magnitude.

For Draper, bitcoin provides a viable alternative to fiat currency as currency and government distrust will drive more people into cryptocurrency.

During the interview, founder of Draper Fisher Jurvetson (DFJ) Venture Capital highlighted the situation in Argentina as an example of how people will make the pivot from fiat to BTC.

Back in March 2019, Draper made a wager with Argentina’s President over the price of bitcoin.

Bitcoin Needs to be Easy to Use

During the interview, Draper declared that there was still work needed to be done to make bitcoin easier to use.

The DFJ chief who is himself a bitcoin owner says ease of use will draw more people into adopting cryptocurrencies.

Back in February 2019, Draper predicted that people will be using bitcoin to pay for coffee by 2021. He was even part of $1.25 million investment round for OpenNode — a bitcoin payment processor startup, in late 2018.

Fellow billionaire and bitcoin Jack Dorsey earlier in September noted that why bitcoin appears primed to become the native currency of the internet, it is still some way off from achieving such heights.

What do you think the bitcoin price will be by the end of 2023? Let us know in the comments below.


Images via Shutterstock, Twitter @BLOCKTVnews.

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Zář 10

Fundstrat’s Tom Lee: Bitcoin Misery Index Suggests New Bull Run Soon

The Bitcoin Misery Index, a technical indicator of trades, has been falling all summer. The indicator is sinking to 50 points, a level at which Bitcoin (BTC) prices may start to rally, thinks Fundstrat’s Tom Lee.


The Bitcoin Misery Index (BMI) by Fundstrat is a subscription-only technical indicator based on the profitability of average trades. High scores for the index point to exuberance and hype, while low scores show that most investors are “miserable” and the market is difficult to navigate.

Bitcoin on the Bounce

Since the hot price moves of July, Bitcoin turned flat, and the BMI deflated slowly over the course of a few months. BMI sank from 67 down to around 53. Investment expert Tom Lee of Fundstrat pointed that BTC had a “boring” summer, but with the index under 50, more dramatic moves are possible.

Following a “trendless” summer, bitcoin enters September with expectations of a possible shift in sentiment.

BTC remained stuck in a range, moving between $9,500 and $10,500 on most days. Other indexes, such as the “fear and greed” indicator, remained shaky. Fear is no longer extreme, but BTC is still somewhat directionless.

Bitcoin market prices appeared even shakier on Monday, sinking down to $10,279.69. The price slide and weakened volumes also brought lower market capitalization dominance of 69.7%, down from 71% in the previous week.

Time to FOMO?

Lee expects the BMI to be within the 50-53 points range in early September. At those levels, this predicts a potential stronger appreciation in the coming six months. The index is not an exact predictor, but Fundstrat sees more tailwinds for bitcoin than headwinds. Macroeconomic factors are also in play, such as a lowered Fed interest rate, as well as high fiat liquidity.

Fundstrat warned of lowered volumes, as BTC trading moved down to $16 billion in 24 hours, down from above 25 billion during the more active days in July. Lowered volumes may also cause unpredictable, dramatic price moves.

The most bullish predictions see bitcoin repeat the end-of-year rally from 2017. Fundstrat believes crypto winter is behind us, but a rally is not guaranteed.

Short-term negative predictions for BTC see the coin returning to $8,500, or at best hovering in rangebound trading. “Launchpad” levels may start at prices above $11,700, if BTC manages to rally to that range.

What are your thoughts on BTC sentiment? Share your thoughts in the comments section below!


Images via Shutterstock, Twitter @Fundstrat

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Zář 06

Bitcoin Hitting $1T Market Cap By 2025 ‘Entirely Possible’: New Analysis

Bitcoin has most of its wealth creation still to go and could top a giant $1 trillion in market cap in just six years, new analysis claims.


$1 Trillion Bitcoin Doesn’t Need Parabolic Trend

Published last week, the forecast by Blockchain investment advisory resource, Byte Tree, suggests that even with conservative growth, Bitcoin will achieve wild new heights.

“Growth rates can go on for long periods of time but will inevitably slowdown as they mature. The implications for this new trendline imply $10,000 bitcoin will remain a theme until late 2020, rising to $20,000 by Feb 2022 and $40,000 by May 2023,” it reads.

Recall that if (nearly) 18 million coins quadruple in price, more than half a trillion dollars of wealth will be created. That’s more than possible and the network could touch a trillion dollars by 2025. Considerably more wealth creation lies ahead, than has occurred in the past.

The figures come at a time when BTC/USD had come off its latest bullish rise, which previously saw the pair touch $13,800. 

Sideways action subsequently culminated in a dip to $9350 last week, with markets since recovering to linger just below $11,000 at press time on September 6.

Tech Stock-Style ‘Mega Trend’ Inbound

Bitcoin’s annualized investor returns are 212%, Byte Tree notes, adding that the figure was unlikely to continue at such an aggressive pace forever. 

Despite that however, slowing down does not equal bearish signals, and this holds true for assets other than Bitcoin.

“You can’t reasonably expect steep trendlines to continue indefinitely, but you can expect credible assets to keep on moving higher year after year,” the publication concluded. 

“If you doubt that, then just look at the leading tech stocks which seemingly go from strength to strength. They grow because the internet is an established mega trend; something that bitcoin will enjoy for years to come.”

The idea of a $40,000 Bitcoin by 2023 is certainty moderate compared with some other predictions. As Bitcoinist reported, it is ‘permabulls’ John McAfee and Tim Draper leading the way, the former still infamous after pledging to consume his own male appendage if BTC/USD did not hit $1 million by 2021. 

Draper believes $250,000 is achievable by 2023. In the short term, technical indicators meanwhile err on the side of caution, nonetheless suggesting an end-of-year price for 2019 at around $20,000 – sooner than Byte Tree.

What do you think about Byte Tree’s Bitcoin forecast? Let us know in the comments below!


Images via Shutterstock

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Zář 01

Sunday Digest: Bitcoin Price, Libra-Killers and Craig Wright (again)

Obviously, it’s still just about the end of summer, so French air traffic controllers have decided to go on strike. Maybe there would be less annual havoc across Europe’s skies if they ‘paid them in Bitcoin’?


Bitcoin Price: Yet More Consolidation

So BTC has spent another week trading sideways in a band around $10k. Whilst the lack of breakout will undoubtedly be disappointing for some, the further solidification of support is welcome.

The week again started strongly, with a push on Monday taking price up to $10,600. We also saw the realized market cap (which adjusts for lost coins) breakthrough $100 billion for the first time ever.

The MACD indicator turned bearish for the first time this year, but we still had plenty of bullish sentiment from analysts. Bulls were accumulating, the order book looked bullish, and Max Keiser chipped in with a $25k prediction based on the fragile stock markets.

Institutional investors were becoming more bearish according to one report, but this could all change in the autumn with the Bakkt futures launch, and final Bitcoin-ETF decisions from the SEC.

All the while Monday’s gains had been slowly trickling away. Then Wednesday evening through Thursday saw a larger crash of 9% over the course of a few hours. Support at $9,400 held and we looked for potential reasons for the sudden drop.

Still, looking at longer-term trends, there are a lot of reasons to be positive. The uptrend for the year is still very much intact and will be even if price falls back to $6k levels. Although at least one analyst believes that bitcoin won’t retrace that level, claiming that $10k is the new $6k, and is just a stepping stone on the inexorable grind upwards for bitcoin price long-term.

Technicals were good, as hash rate hit an all-time high, while BTC price finished the week trading sideways at around $9,600.

The Race Is On To Beat Facebook’s Libra

The one thing that Facebook appears to have achieved with its announcement of the Libra ‘cryptocurrency’ is galvanizing the entire crypto-community to make it obsolete before it even launches.

It seems that everyone and their mum is now working on a stablecoin for online payments and money transfer. Telegram has long mooted its cryptocurrency, but recent reports suggest it is now imminent, along with a bunch of localised stablecoins from Binance.

Even the Chinese government is (or isn’t depending on who you believe) about to launch a Libra-killer.

Meanwhile, Facebook launched its bug bounty program for Libra. Anybody who finds 100 bugs will bag themselves a cool $1 million… and with Facebook, one would imagine that there will be enough bugs to go around.

News In Brief

Goldbug Peter Schiff couldn’t wait to gloat after bitcoin’s midweek price drop, claiming it had ‘failed [the] safe haven test again’. Obviously he didn’t mention the recent Reuters report saying that $50 million of forged bars had been flooding the gold market.

An XRP advocate has suggested that users fork the cryptocurrency to prevent Ripple from repeatedly dumping its ‘reserved’ share of the tokens for profit.

Blockstream’s Samson Mow called Ethereum a technological dead-end, much to the chagrin of the Ethereum community.

And Finally…

Always nice to finish with an update into (Dr) Craig Wright’s clownery.

The Craigster didn’t have much luck in his Florida court case with the estate of Dave Kleiman this week. The judge ordered that he must hand over half of his claimed 1 million BTC and half of all his intellectual property (which arguably may not be worth all that much).

‘Faketoshi’ stated that he now ‘had no choice’ but to do this, warning that the flood of $4 billion worth of bitcoin would likely tank the market. Few were convinced by his insistence that (as Satoshi) he could do this though. Peter McCormack, currently being sued for libel by Wright in a UK court, bet $10k that Wright would/could not move any of the coins in the next year.

What do you think of this week’s Bitcoin news roundup? Let us know your thoughts in the comment section below!


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