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Weekly Update #27: $10,000 For a Bitcoin

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$10,000 For a Bitcoin - Blockchain24.co

This was a generous week for Bitcoin and an exciting time for the industry. Check the last updates from the crypto world!

Back in the last Weekly Update, we have commented about the blockchain industry’s reaction for the Brexit and some news concerning famous crypto-related lawsuits. Let’s see what stories this week has brought.

$10,000 achieved

First, let’s start with a price update. Bitcoin managed to reach the cap of $10,000 per coin, proving that the current bull run is a serious business. Since the beginning of the year, the leading cryptocurrency performed very well. There are various theories pointing to reasons for this price growth. Most of them are seeking them in the last international events, like the coronavirus outbreak or tense situation between the USA and Iran. Nevertheless, the market appears to be in excellent condition – and let’s hope it will last long.

Charity against coronavirus

Since we mentioned the infamous disease, it is good to mention that the blockchain industry is also trying to help fight the outbreak of the coronavirus. Hyperchain, a Chinese company specialized in blockchain application, announced the launch of a charity initiative devoted to that goal. Alongside with Fuxing Group and Xiongan Group, they are going to gather funds for medical supplies

The coronavirus outbreak coincided with the proclamation of the Chinese shift toward the blockchain. Decentralized technologies are believed to be a solution for better management of many systems, including healthcare. But Chineses government probably didn’t expect that the usage of blockchain may be useful in practice so quickly.

More details about Telegram’s blockchain

Messaging platform Telegram is already strictly connected with the blockchain technology, with many cryptocurrency firms actively communicating through its app. But Telegram’s relation with the industry doesn’t end here. Since 2017, the company is working on its own project called TON Blockchain, alongside with related currency, gram. 

The project, however, has already caused some controversies, mostly by a lawsuit by the U.S. Securities and Exchange Commission. The reason for the legal fight was the alleged selling of unregistered securities during a pre-sale of grams. However, it doesn’t stop Telegram from the development of TON. Last works on it concerned tests over the blockchain and resulted in a white paper summarizing present progress.

Does Wright defend himself with defunct companies?

The case of Craig Wright’s legal problems is still pending, and every week brings some new updates. First, a short reminder: Wrights got sued over the rights to the $10 billion in bitcoin by the family of his former, deceased partner, Dave Kleiman. According to the lawsuit, Wright defrauded Kleiman of money and intellectual property.

New concerns are about the 11,000 documents, which could shed some light on the case. The papers are, according to Wright, unavailable to be provided in court due to attorney-client privilege. It caused a reaction of Kleiman lawyers, who believed that documents are considered privileged without any legal basis, since they come largely from defunct companies, and called for the court for a reaction.

North Korea stole funds on the realistic-looking website

The Democratic People’s Republic of Korea, widely-known as an international troublemaker, is frequently trying to use blockchain and cryptocurrencies to its advantage. The range of North Korean actions consists of both hackers’ operation and a blockchain conference, which caused some problems to former Ethereum developer, Virgil Griffith.

This time, Kim Jong-un’s regime managed to steal coins via a highly sophisticated method. As Chainalysis has reported, a well-known hackers group called Lazarus managed to create a realistic-looking trading bot, which fraudulently obtained about $7 million from traders. The sum may not seem big, but the website used to steal it is definitely worth attention. 

A fake firm named WFC Proof had everything that a proper blockchain company should have: a legitimate website with a professional look and active social media, ironically pointing on the importance of the security. Such a high-level of fraud should be alarming.

Half a billion transactions on a Bitcoin blockchain

Reaching the $10,000 wasn’t the only Bitcoin’s success last week. The cryptocurrency has achieved a historical milestone of half a billion transactions. Since the first transaction between Satoshi Nakamoto and Hal Finney, the first cryptocurrency was pushing forward to reach this impressive number. You may find more details about the half a million Bitcoin transactions in our article dedicated especially for this event. And we hope there will be even more positive news like this one in the incoming weeks.

Artykuł Weekly Update #27: $10,000 For a Bitcoin pochodzi z serwisu Blockchain24.co | portal with cryptocurrency bitcoin & blockchain news.

Source: https://www.blockchain24.co/weekly-update-27-10000-for-a-bitcoin/

Blockchain

Bitcoin Rising Correlation With Traditional Market Undermines ‘Non-Related Asset’ Narrative

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Despite the fact that Bitcoin has been long-touted as a “non-correlated asset”, there have been many instances when the largest cryptocurrency behaved similarly to the mainstream market.

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Altcoins undergoing another major pullback was occasioned with occurs not as drop significantly in the traditional markets and additionally in gold’s price which took a massive hit as markets opened. Amid rising fears of the pandemic, the US Stock market fell to a 2-months low with the Dow Jones Industrial Average dropping over 700 points in the afternoon trading sessions.

Santiment’s tweet read,

“As has been the case since Black Thursday, the correlation between the US stock markets & gold, and BTC, ETH, and rest of the crypto markets has been much higher now than any year in crypto’s history.”

Additionally, data from Skew shows that the one-year realized correlation between Bitcoin and S&P 500 reached 52.9%.

Source: Skew

Commenting on the latest price movement, popular Podcaster, Lark Davis tweeted,

“Historically the S&P 500 has done poorly in September, and quite badly in October of election years. Bitcoin’s high correlation to the equity markets could mean that we are in for some big bumps over the next 6 weeks. GOOD NEWS is that November is usually a strong month.”

Besides, the one-year realized correlation between Bitcoin and Gold was also hovering a little below its ATH. Notably, prior to 2018, the Bitcoin-Gold correlation was negative and hence the narrative was mostly dismissed. Similar was the case with other tech stocks or stock indices such as VIX. The recent trend could also potentially signal to the point Bitcoin has slowly evolved into a mainstream asset over the last two years and hence its correlations with non-crypto assets are important to gauge its price movement in the coming days.

The coronavirus crisis has impacted every industry, from tourism to real estate, health care to manufacturing and the cryptocurrency industry is not exempt. While Bitcoin did start with an impressive streak in the first quarter of 2020, it hit a snag as the pandemic’s economic blow quickly affected all markets. Similar to the traditional market, the collective crypto market crashed by more than 50% from its February high.


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Author: Ketaki Dixit




Experienced writer and editor with a demonstrated history of working in the industry. Skilled in Copywriting, Web Content Writing, Copy Editing, Writing, Cryptocurrency News Writing, and News Editing.

Source: https://coingape.com/bitcoin-rising-correlation-traditional-market-undermines-non-related-asset-narrative/

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First Mover: Bitcoin’s Latest Sell-Off Gets Crypto Traders Mulling Election Chaos

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In seeking to explain Monday’s sell-off across traditional markets and cryptocurrencies, the digital-asset firm QCP Capital rattled off a list of seven major market events that occurred in Septembers past, from the 1929 stock-market crash to the Lehman Brothers bankruptcy in 2008. 

There might be some deep human connection with the fall equinox — when the days turn shorter than nights in the northern hemisphere and summer turns to fall, according to the firm. “The human nervous system typically undergoes major measurable perturbations” during this period, QCP wrote Monday in its daily market update. 

The outlook is cloudy but there’s a risk of a steep plunge similar to the sell-off in March that took bitcoin prices to their 2020 lows just below $4,000. One catalyst could be the upcoming U.S. presidential election, which has become more contentious in recent days following the death of Supreme Court Justice Ruth Bader Ginsburg. 

Bitcoin (BTC) on Monday posted its biggest drop in three weeks, retreating from the psychological $11,000 hurdle that the cryptocurrency until just recently had seemed poised to eclipse. There was also an apparent unwind of the recent frenzy in decentralized finance, or DeFi, with associated digital assets from ether (ETH) to Aave (LEND ) and Curve (CRV) falling even harder.    

“It got to a point where the market demand just kind of got exhausted, and there wasn’t enough new capital flowing to sustain the push higher,” said John Todaro, an analyst for the digital-asset firm TradeBlock. 

Despite recent bets in foreign-exchange markets that massive money printing by the Federal Reserve and other central banks might drive down the value of the dollar, investors apparently sought refuge in the U.S. currency. The U.S. Dollar Index charted its biggest gain in a month. 

“The dollar’s not dead, the dollar’s a survivor,” Denis Vinokourov, head of research for the cryptocurrency prime broker Bequant, said in a WhatsApp audio interview. “It’s a real flight to quality, and cash is king, and cash is the dollar, nothing else. The dollar rules.”

Monday’s sell-off nearly wiped out 2020 gains for the Standard & Poor’s 500 Index of large U.S. stocks, though ether, bitcoin and gold are still sitting on substantial 2020 gains. 

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Bitcoin percentage year-to-date returns versus ether, gold and the S&P 500.
Source: TradingView

There’s a lot of major factors buffeting the global economy and geopolitical landscape, as the coronavirus continues to spread and the U.S. elections approach. President Donald Trump is pushing to nominate and confirm a pick to the high court prior to the election, even though Republican leadership had previously suggested such a step would be inappropriate

Gavin Smith, CEO of the cryptocurrency firm Panxora, says that if the election leads to political turmoil in the U.S., he could see the largest cryptocurrency trading as low as $7,000. 

“The danger to the crypto market is much the same as we saw in March,” Smith said. “If you get that big sell-off in risk assets, there will be that liquidation of bitcoin.”

He says central-bank money printing should eventually push up inflation, which could be a catalyst for higher bitcoin prices, though “that’s very much a 2021 story.” 

“When we’ve seen the election past, all of a sudden it’s going to become clear just how much money has been pumped into the system,” Smith said. 

A battle over confirmation of Ginsburg’s successor could derail any last-ditch efforts to revive any effort to provide new U.S. fiscal stimulus, even amid growing signs that the economic recovery is stalling. 

The Federal Reserve could step in to increase its pace of money printing, but any such decision would have to be made on an emergency basis, since the next regular meeting isn’t scheduled until Nov. 5, in the days after the election.

The Fed has already cut interest rates close to zero and is buying U.S. Treasury bonds and government-backed mortgage securities at a pace of $120 billion a month. Chair Jerome Powell reiterated in prepared testimony for a scheduled Congressional appearance Tuesday that officials “remain committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible.”

But Mati Greenspan, founder of the foreign-exchange and cryptocurrency analysis firm, Quantum Economics, told subscribers in a daily newsletter, said that the bar will be high for further action. 

“The Federal Reserve and other central banks have already injected quite a lot of stimulus and are already committed to keeping rates suppressed for a long time to come,” Greenspan wrote. “There doesn’t seem to be much in the way of action from them for markets to look forward to.”

btc-gold-and-stocks-correlations-90d
Bitcoin’s price correlations have increased recently with both U.S. stocks and gold.
Source: CoinDesk Research

Bitcoin Watch

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Bitcoin daily chart. (TradingView)
Source: TradingView

Bitcoin fell by more than 4% on Monday, confirming a bear flag breakdown on the daily chart. 

The bearish technical pattern indicates the bounce from the recent low of $9,869 has ended, and the pullback from the August high of $12,476 has resumed. 

Analysts foresee a more significant decline in the cryptocurrency if the global stock markets extend Monday’s sell-off. 

“Sustained risk-off in broader equity markets will lead to heavy offers across major cryptocurrencies,” Matthew Dibb, Stack Funds’ co-founder and COO, told CoinDesk. “Bitcoin may revisit September lows” around $9,870.

Monday’s drop has boosted demand for put options or bearish bets. According to data source Skew, the one-month put-call skew has increased to over 4% from -3% on Sunday. The positive figure indicates that put options are drawing higher prices than calls. 

However, three- and six-month skews remain negative, meaning the long-term bias remains bullish. 

– Omkar Godbole

Read More: Equity Markets Turmoil Could Push Bitcoin Below $10K, Say Analysts

Token Watch

Uniswap (UNI): Arca Funds chief legal officer argues that tokens  probably aren’t securities under the SEC’s test

Swerve (SWRV): Liquidity in this three-week-old automated market maker for stablecoins has dried up following the conclusion of a “boosted reward period,” according to Messari.  

What’s Hot

U.S. regulator OCC says banks can provide services to stablecoin issuers (CoinDesk)

Chinese e-commerce giant JD.com is reportedly to help the nation’s central bank develop infrastructure for its cash-equivalent digital currency (CoinDesk) 

ECB President Christine Lagarde says digital euro might provide alternative to “private digital currencies” (CoinDesk)

Bitcoin miner Bitfarms leases 2K rigs from BlockFills, has options for 7K more (CoinDesk)

Analogs

The latest on the economy and traditional finance

Bank shares plunge on reports Deutsche Bank, JPMorgan moved suspicious funds (CNBC)

Key Republican senators propose $28B in airline assistance to avoid job cuts (Reuters)

U.S. government debt seen hitting 195% of GDP 2050, up from 98% this year and 79% in 2019 (Bloomberg)

Fed Chair Powell says small businesses might need “direct fiscal support” (FT) 

Commercial mortgage bonds lag behind broad credit-market recovery (WSJ)

Unemployed cutting back on consumer spending as extra benefits expire (WSJ)

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Source: https://www.coindesk.com/first-mover-bitcoin-cryptocurrencies-september-election-chaos

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World’s First Bitcoin ETF Approved with Expected Launch in Bermuda by End of Year

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The first-ever Bitcoin ETF will be launched on the Bermuda Stock Exchange (BSX) by Hashdex, a regulated Brazilian fund manager, and Nasdaq after garnering approval for the “Hashdex Nasdaq Crypto Index” four days ago.

The news continues Bermuda’s legacy of being a crypto-friendly offshore international business and financial center.

Three million Class E shares will be issued for trading and the exchange-traded fund is expected to go live by the end of 2020.

Hashdex currently boasts $46.4 in assets under management across four funds and uses Xapo, Kingdom Trust, and Vo1t for services relating to crypto custody. KPMG is the firm’s auditor.

‘When Bitcoin ETF?’

For years now, many Bitcoin proponents and cryptocurrency enthusiasts have been asking the question “when Bitcoin ETF?” While one is officially on the way for the Bermuda Stock Exchange, the prospect of such a regulated, insured, and institutional-focused vehicle for BTC exposure appearing on exchanges in the United States appears grim.

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Bids from various parties — such as the Winklevoss twins, VanEck, SolidX, and Wilshire Pheonix — have all been rejected by the U.S. Securities and Exchange Commission or pulled by the applicants. The securities regulator has frequently claimed that applicants failed to provide enough evidence that the BTC market is resistant to manipulation.

Speaking on the matter was the SEC’s Chair, Jay Clayton, who said that a Bitcoin ETF in the US is possible, but there’s a lot of work to be done.

‘Biggest Front-Running Opportunity of Your Life’

However, former Goldman Sachs executive and well-known fund manager Raoul Pal believes that a Bitcoin ETF is coming to the U.S. very soon. He recently stated:

“I’m going to give you the biggest front-running opportunity of your life: they will get an ETF across the line. There will be billions of dollars that pour into it. Every pension plan will allocate some money to it. Every family office will allocate some money to it. And the more the price goes up, the more they will allocate.”

Whether or not Pal’s prediction comes to fruition remains to be seen. However, it stands to reason that the SEC is objectively aware of the BTC market’s continued maturation and correlation to the equities markets. As such, it may take a more favorable stance as new Bitcoin ETF applications come across its desks.

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Source: https://cryptopotato.com/worlds-first-bitcoin-etf-approved-with-expected-launch-in-bermuda-by-end-of-year/

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