Analysts from Bank of America Merrill Lynch have said that the crash in cryptocurrency and oil markets are indicators of a looming “flash crash” in markets, Reuters reported Nov. 16.

The strategists reportedly suggested that rising volatility across various asset classes and deleveraging, such as that which happened in oil markets over the past weeks, are signs of the evolution of a bear market.

On Nov.14, Bitcoin (BTC) price slumped below $5,400, while total market capitalization of all cryptocurrencies dropped as low as $174 billion. The price dive marked a new volatility record for markets this year, while the BTC volatility rate exceeded the index of seven on Bitcointicker for the first time since April 2018.

On Tuesday, Brent crude reportedly hit an eight-month low, making it the most extreme one-day fall in over three years. As a result of the current bear market, cash has outperformed stocks and bonds this year for the first time since 1992. The strategists reportedly said:

“Ingredients of flash crash rising … bond, FX, equity volatility all trending up, vicious deleveraging events, dislocation risk via abnormal spreads … triggers could be violent U.S. dollar move and/or shock macro data forcing abrupt GDP and earnings downgrades.”

The analysts told Reuters that, despite bearish signals, $122 billion has flowed into equities, $35 billion into money market funds, and $24 billion into bonds. At the same time, markets saw large outflows from corporate bonds, where investment grade corporate bond funds lost $2 billion and high-yield bond funds lost $2.3 billion.

The “last bulls standing” are high-yield corporate bonds and the U.S. dollar, according to the strategists. The U.S. dollar will purportedly rise by the end of the current year and continue climbing further in the first quarter of 2019 before falling.

Fundstrat analyst Rob Sluymer predicted that Bitcoin’s collapse on Nov. 14pushed crypto markets into a “deeply oversold” area, while “longer-term technical indicators aren’t so favorable.” Sluymer concluded that Bitcoin will be able to support a “multi-month rally,” but only after the “significant” damage done this week has been overcome.

Yesterday, a trader at eWarrant Japan Securities K.K. in Tokyo, Soichiro Tsutsumi, told Bloomberg that the loss of $6,000 support looks like a “dangerous sign” for industry players, especially the ones with “business models reliant on a client pool.”

This post credited to cointelegraph Image source: Cointelegraph 

As the Nov. 15 Bitcoin Cash hard fork draws closer, a majority of hash power favors the Bitcoin Cash SV iteration favored by Australian computer scientist Craig Wright’s nChain, data from Coin Dance shows Nov. 12.

According to Coin Dance, 66–77 percent of Bitcoin Cash (BCH) miners are backing the SV network based on currency hash rates, compared to 18–29 percent backing Bitcoin Cash ABC, which is favored by crypto evangelist Roger Ver.

The data is an estimate based on which mining pools have shown support for the coins after the eventual hard fork.

Conversely, Coin Dance notes that of the 2,246 nodes running on the Bitcoin Cash network, 1,079 are Bitcoin Cash ABC nodes, while 166 are Bitcoin Cash SV nodes.

Bitcoin Cash Nodes as of Nov. 11. Source: Coin Dance

Bitcoin Cash Nodes as of Nov. 11. Source: Coin Dance

Notably, neither factor is a total indicator of which camp will come out on top after the hard fork. Launching a Bitcoin node is cheap, and in theory, a user could launch several nodes for under a few hundred dollars. While hash rate is crucial for Proof-of-Work (PoW), if a coin is not accepted by exchanges, the hash would be wasted. At press time, Bitcoin Cash ABC and Bitcoin Cash SV are trading on Poloniex at $393 and $107, respectively.

The controversy surrounding the hard fork took a personal turn earlier this week, as arguments from each side’s largest proponents, Ver and Wright, became more strongly worded. Wright — who has previously claimed to be Bitcoin (BTC) inventor Satoshi Nakamoto — allegedly claimed in an email that Ver “hates Bitcoin” and regards him as “an enemy.”

Wright reportedly finished his email by repeating, “I AM Satoshi” and stating “Have a nice life. You will now discover me when pissed off.”

At press time, Bitcoin Cash is down four percent on the day, trading at 508.60, according to data from CoinMarketCap.

This post credited to cointelegraph Image source: Cointelegraph

The stage seems to be set for a dramatic cryptocurrency price surge, like the one we experienced in 2017. However, Bitcoin, the world’s largest digital currency, might not be the one triggering the explosion this time.


WHAT’S NEXT FOR THE CRYPTOCURRENCY MARKET?

This year has been horrendous for the crypto market. Some digital currencies have lost 80 percent from the all-time high values they achieved in January 2017.

However, for some economists, this dive to earth-bound values might turn out to be beneficial for the market. In effect, referring to the depressed crypto market, economist and Bloomberg opinion columnist Tyler Cowen writes, “But perhaps that development is precisely what we need for crypto to take the next step forward.”

For the past several weeks, Bitcoin’s price has been increasing modestly but steadily. Indeed, as of this writing, Bitcoin’s volatility index for the latest 30-day estimate is 1.55 percent, and for the most recent 60-day estimate is 1.54 percent.

Investors find Bitcoin’s low volatility encouraging because it might help Bitcoin $6401.78 +0.13% to gain traction as a payment method and as ‘digital gold‘ for storing value.

Moreover, the U.S. Securities Exchange Commission (SEC) might view Bitcoin’s low volatility favorably when deciding whether to approve or reject ETF Bitcoin petitions. In fact, low volatility might be evidence that price manipulation is receding.

Now, many crypto analysts are expecting a crypto price explosion as the market has pretty much flatlined, which may be indicative of a possible bottom. In this regard, Anthony Cuthbertson writes, “cryptocurrency analysts believe the market might be on the verge of mirroring the gains it experienced in late 2017.”

However, Cuthbertson notes,

The only caveat is that it might not be bitcoin that leads the charge this time.

COULD ETH OR XLM BE THE NEXT SPARK?

The question is, if Bitcoin will not be the one igniting the rocket for the next crypto price explosion, then, which currency would be the catalyst?

Ethereum, or a crypto-based on Ethereum, could be a candidate. According to Santiment, Ethereum-based networks “are done waiting for ETH to bounce back: they’re paving their own bull run.”

And, Cuthbertson quotes technology expert Ian McLeod of Thomas Crown Art, who says that Ethereum “could be on the verge of a monumental, defining global breakout.”

Or, the detonator could be a yet unknown crypto coin such as Stellar Lumens (XLM) $0.26887 +0.0%.

Blockchain announced that from November 6, 2018, it was giving away $125 million in XLM to its Blockchain wallet users who sign up for the airdrop.

Peter Smith@OneMorePeter

Excited to add to the @blockchain wallet today and announce a $125M airdrop – the biggest digital giveaway ever. We’ll be giving millions of people their first $20 of crypto over the next few months ⚡️🚀https://blog.blockchain.com/2018/11/06/we-always-put-users-first-and-now-we-have-125m-ways-to-show-it/ 

Introducing: Stellar, now in the Wallet, and $125M of free crypto in your pockets

The Blockchain Wallet is designed so users can control their crypto with ease and truly use it. But we’d be nowhere without the tens of millions of people that have used the Blockchain Wallet and…

blog.blockchain.com

Peter Smith@OneMorePeter

We’ll be running the program over the next few few months, with distributions done daily in small tranches relative to the market. To participate head to: https://www.blockchain.com/getcrypto 

Get in line for what’s next.

The rumors are true. We’re adding Stellar & we’ve got $125M worth of XLM to give away. Claim yours here!

blockchain.com

28 people are talking about this

Blockchain’s rationale behind the airdrop is to drive decentralization and popularity, or use, of the network.

However, let’s not discount the possibility that ten-year-old Bitcoin could ignite the next market explosion. After all, Bitcoin remains the largest cryptocurrency, and it continues to help businesses, such as financial services company Square, become profitable.

This post credited to bitcoinist  Image source: Bitcoinist 

Throughout this year, during a 69 percent correction, only 25 percent of Bitcoin were moved between addresses, suggesting that 75 percent of Bitcoin had not changed hands.

That is nearly a 58 percent decline in Bitcoin user activity since 2017, during a period in which BTC  surged to a new all-time high at $20,000 and the cryptocurrency market reached a valuation of $800 billion.

Analysts expected a higher percentage of Bitcoin in circulation to change hands throughout the past 11 months despite the bear market, given that many new investors have entered the market through alternative platforms such as the CBOE and CME Bitcoin futures markets.

The launch of the Bakkt Bitcoin futures market in December and the release of the Goldman Sachs and Morgan Stanley cryptocurrency derivative products are also expected to increase the user activity of crypto, growing the liquidity of the stagnant cryptocurrency market.

Bitcoin is Still in Recession

Speaking to Bloomberg, Coin Metrics co-founder Nic Carter stated that the noticeable decline in the user activity of Bitcoin demonstrates the market is still in recession. Less new investors have entered the market since late 2017.

“It tells me we are still in a Bitcoin recession,” Carter said, adding that a dip in user activity enables the evaluation of the actual liquidity of the asset. “I think it helps us assess ‘true liquidity’ in the idealized, global order book sense. To some degree, I think it lets you roughly calibrate the effect of future inflows.”

In bear markets, Carter emphasized that less than 30 percent of BTC in circulation are available to the public through cryptocurrency exchanges, as the vast majority of investors tend to hold onto their long-term investments.

Still, according to cryptocurrency market data providers, the daily trading volume of BTC is estimated to be around $4 billion. At its peak in January, the volume of BTC neared $10 billion, led by leading markets such as Japan and South Korea.

As such, DA Davidson & Co. institutional equity director Gil Luria noted that BTC does not have a liquidity issue, as the $4 billion daily trading volume allows any investor to liquidate an entire position in one trading day.

Cryptocurrency exchanges operate 24 hours a day and seven days a week, without closing and opening periods dissimilar to stock markets and traditional exchanges. Hence, the $4 billion daily trading volume is more meaningful if the fact that the cryptocurrency exchange market operates without downtime is considered.

“That does not mean there is a liquidity issue. Four billion of volume a day means almost any investor in Bitcoin can liquidate their entire position within one trading day,” Luria said.

One Positive Takeaway

This year, Bitcoin suffered one of its worst correction in recent years, the fourth-worst crash in the past nine years.

The decision of many investors in the market to hold onto their Bitcoin investments regardless of a 69 percent drop in price demonstrates confidence towards the long-term price trend of the dominant cryptocurrency, and more importantly, that investors are considering crypto as a long-term investment rather than a short-term position.

This post credited to ccn Image from Shutterstock.

From a new prediction on how long the Bitcoin bear market will last to a wild moonshot on Ethereum, here’s a look at some of the stories breaking in the world of crypto.

Bitcoin

The CEO of crypto exchange BitMEX says the current Bitcoin and crypto bear market could last another 18 months.

In a new interview, Arthur Hayes told Yahoo Finance UK,

“My view is the volatility environment that exists right now could persist for another 12 to 18 months – the flatness.

I’m just basing it off my previous experience. I started in Bitcoin in 2013 when the price went from $250 to $1,300 and then 2014 to 2015 was sort of the nuclear bear market. Price crashed, volume crashed – very, very difficult to make money…

We think trading volumes could fall further from where they are now.”

On the other end of the spectrum, the head of research at Fundstrat Tom Lee recently said he believes Bitcoin could still breakout this year.

Meanwhile, Galaxy Digital’s Mike Novogratz predicts institutional investors will trigger a Bitcoin turnaround in the first quarter of next year.

Ripple

A new interview from the Money20/20 conference in Las Vegas features Ripple co-founder Chris Larsen.

Larsen talks about the regulation of digital assets and blockchain’s role in transforming how people and businesses move value.

XRP, Bitcoin Cash, Litecoin

One of the biggest financial derivatives dealers in the UK has listed XRP, Bitcoin Cash and Litecoin.

According to a press release,

“CMC Markets, a leading global provider of online trading, has today expanded its cryptocurrency spread betting and contracts for difference (CFDs) offering to include three additional coins: Bitcoin Cash, Litecoin and Ripple. Clients can now take a position on the three altcoins paired against the US dollar.”

Ethereum

The Ethereum development studio ConsenSys just bought the asteroid mining company Planetary Resources.

One of the company’s primary missions is to “identify and unlock the critical water resources necessary for human expansion in space.”

The company’s general counsel Brian Israel says, “Ethereum smart contract functionality is a natural solution for private-ordering and commerce in space – the only domain of human activity not ordered around territorial sovereignty – in which a diverse range of actors from a growing number of countries must coordinate and transact.”

EOS

State of the DApps just released a progress report on the latest decentralized apps on the EOS network.

From gaming to social media to exchanges, there are now more than 100 DApps live on EOS.

IOTA

IOTA says it’s collaborating with the car API development company High Mobility.

The company creates software tools that connect cars to the outside world, and will explore ways it can integrate IOTA’s distributed ledger technology into its platform.

Tron

Tron is partnering with JOYSO to create a decentralized exchange on the Tron network.

According to a new post on Medium, in a “recent collaboration with TRON, JOYSO will be building the exchange with off-chain matching, on-chain settlement where users can trade any token directly via their digital wallets.”

VeChain

The blockchain gambling platform Decent.bet just launched on the VeChain network.

DecentBet@Decent_Bet

And we are now officially live on our Closed Beta Mainnet- the very first dApp on the @vechainofficial blockchain!

Huge, huge thanks to all of our supporters, wider community and the participants themselves. https://medium.com/@decentbet2017/private-mainnet-launch-a-go-15acf46e04d9 

Private Mainnet Launch A Go! – Decent.Bet – Medium

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Decent.bet is designed to be a transparent, smart contract-based sports betting platform and online casino.

 

This post credited to Daily HODL  Image source: Daily HODL

Goldman Sachs is allowing few of its clients to sign up for its future crypto products, according to reports.

The New York investment bank plans to roll out its bitcoin non-deliverable future contracts (NDF), a derivative product pegged to futures. Ideally, the service should allow an investor/borrower to take a short-term position in Bitcoin even though the government may not allow exchanges. The investor/borrower uses the foreign currency, but any foreign exchange gain or loss should be paid in Bitcoin. The service could lead corporates seeking to hedge exposure to foreign currencies whose use is limited or restricted in the domestic markets – this time using Bitcoin, not the dollar.

Details Not Finalized

According to The Block, the source notably contradicted with an earlier report which said that Goldman Sachs was looking for a similar NDF contract on Ether, Ethereum’s platform token. There was an announcement from the Chicago Boards Options Exchange (CBOE) that it would introduce an Ether-backed futures contract earlier this year. However, that product is still not out yet.

Goldman Sachs is reportedly studying whether the market needs a crypto NDF contract as a whole. The bank is reaching out to its clients, including senior bankers and institutional traders, to seek their opinion on how a Bitcoin NDF can break into the market. The source said that the bank’s clients weren’t necessarily looking for a Bitcoin NDF but that doesn’t mean they will not be interested in exploring the market.

Bitcoin Derivatives in the US

While Goldman Sachs researches its way into launching a Bitcoin NDF, the regulated US trading platforms, including CBOE and CME, offer crypto-based cash-settled future and future derivative products. Both the exchanges have expressed their interests in crypto futures, allowing speculators to believe that they would expand their offerings in the long run. CBOE, in particular, has admitted that it wants to be the leader of the cryptocurrency derivative marketplace. Meanwhile its counterpart, CME, is there but looks relatively less enthusiastic regardless of launching an Ether price reference rate.

There are developments taking place outside the CBOE and CME markets as well. Bakkt, a crypto startup headed by the owner of the New York Stock Exchange (NYSE), has announced that it would launch its first Bitcoin derivative product on December 12 this year. The firm has ensured that their future product would allow traders to settle contracts physically, meaning the contract expiry dates would see an actual Bitcoin exchange between the involved parties.

LedgerX, another crypto derivative platform, is also seeking to launch an Ether-backed future contract, pending approval from the Commodity Futures Trading Commission (CFTC).

This post credited to News BTC  Image source: News BTC

Choi Jong-Ku, the commissioner of the Financial Services Commission (FSC) of South Korea, has reaffirmed that there exists no issues related to compliance and security in the process of banks providing virtual bank accounts to local cryptocurrency exchanges.

At the state affairs audit conducted by the government of South Korea to evaluate the progress of all government agencies and commissioners in the nation, commissioner Choi emphasized that as long as cryptocurrency trading platforms are well equipped with Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, digital asset platforms will be able to obtain banking services from the country’s commercial financial institutions.

“There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges,” commissioner Choi said.

In South Korea, crypto exchanges employ a unique system called virtual bank accounts that enable users to deposit and withdraw the South Korean won instantly so that users can hold KRW on exchanges securely.

Crypto Investors Optimistic

In early 2018, the government of South Korea encouraged banks to prevent working with cryptocurrency exchanges to eliminate the possibility of laundering money using digital assets.

While Nonghyup, a major commercial bank in South Korea that has worked with crypto exchanges for over a year, continued to provide services to local exchanges, in mid-2018, even Nonghyup was pressured to end its services to Bithumb and other major cryptocurrency exchanges.

The public statement released by commissioner Choi clarified the stance of the government and local financial authorities towards cryptocurrency exchanges and in the years to come, local digital asset trading platforms will no longer suffer from the lack of banking services from major financial institutions in South Korea.

South Korea Blockchain Association, which represents both small to medium-size and major cryptocurrency exchanges in the local market, expressed its optimism towards the newly established stance of the FSC and added that the initial problem related to KYC and AML introduced by the FSC 10 months ago have been resolved.

Considering the concerns of the FSC and local financial authorities towards security breaches, the South Korea Blockchain Association and the country’s largest cryptocurrency exchanges have initiated the process of obtaining insurance to protect investor funds.

Bithumb, Upbit, Gopax, Korbit, Coinone, and other large cryptocurrencies have also recently been approved by the government of South Korea for having sufficient security measures and internal management systems in place.

In August, security analysts at KISA and the Ministry of Science and IT told local publications that UPbit, Bithumb, Korbit, Coinnest, Coinlink, Coinone, Coinplug and Huobi a have solid ecurity and internal management systems integrated into their exchanges.

South Korea’s Crypto Exchange Market Infrastructure Strengthening Rapidly

This week, Bithumb, the second largest cryptocurrency exchange in the country, eliminated all banking options on its platform apart from Nonghyup, its partner bank.

Investors, confused by the abrupt decision of Bithumb, experimented with emerging crypto exchanges like Gopax, which is financed by the nation’s second largest commercial bank Shinhan.

Gopax, possibly due to the assistance of Shinhan, supports deposits and withdrawals for all local banks in South Korea, along with Kakao and Dunamu’s Upbit.

The competition in South Korea’s crypto exchange market is increasing with key players like Upbit, Gopax, Coinone, and Korbit gaining more market share, offering investors with several alternative options.

This post credited to ccn Image from FSC.

The conducive developments in South Korean crypto space have boosted fiat influx into the market, reveals this month’s data.

eToro eanalyst Mati Greenspan pitted Korean Won against the most volumed bitcoin-quoted assets, including the US Dollar, Euro, the Pound and also Tether. The comparison revealed a dramatic surge in the BTC/KRW trading volume compared to other instruments that remained mostly stable throughout this October.

SOURCE: CRYPTOCOMPARE.COM

Japanese Shift Theory

While the Korean Won volume surges against Bitcoin, the one that fell in response is that of the Japanese Yen. At the beginning of October, the KRW volume covered 3.39 percent of the Bitcoin market, while the BTC/JPY – at the same time – covered 11.96 percent. By mid-October, the KRW trades had gone up to as much as 41 percent while the JPY toppled to as low as 1 percent.

Australia’s Finder theorized that Japanese investors could be moving their Yens into the South Korean Bitcoin market over security concerns. Japanese crypto exchanges this year had gone through a few high-profile hacks, in which swindlers stole $600 million of cryptos. The yuan trading volume is on its way to the south ever since the hack at Zaif exchange in September.

The October Yen volume on BitHumb, nevertheless, has attained its initial value already and is now covering 12 percent of the overall Bitcoin market. Korean Won yet remains the leading fiat currency by volume in October, beaten only by Tether that is not state-backed.

USDT Volume Depleting

BitFinex still has a lead over other exchanges in Bitcoin-to-dollar trades. It is further reflective in the dominance of Tether’s USDT – a BitFinex-supported stablecoin – over the bitcoin volume charts. Nevertheless, the coin is losing its sheen after being criticized for non-disclosure of US reserves. A considerable number of traders has shifted to other stablecoins. Many have parked their crypto assets in fiat also, which explains a volume shift towards the Won.

The deviation between USDT and Won volume is visibly more than the divergence between Yen and Won on half-yearly charts.

BTC/KRW Price

The high volume did not reflect upon the way Bitcoin is trading against the Korean Won. Another chart sourced from BitHumb and TradingView.com reveals that the BTC/KRW pair is trending sideways on daily charts for quite a time. It could mean that while trading on the exchanges has increased, the Bitcoin demand is in equilibrium with its supply. It further explains that the high volume does not specifically signify South Korean investors’ interest in the crypto.

The overall bias in the Bitcoin market is turning bullish after the extension of its stability action. Especially in times when the mainstream stocks are underperforming, Bitcoin is rock steady compared to its volatile swings in the past.

This post credited to News BTC Image source: News BTC

 

Sleepy Sunday in crypto land; Veritaseum making a move, Ravencoin flapping.

It is another slow Sunday in crypto land with markets still slumbering. There has still been no movement for most of the major cryptocurrencies leaving markets at the same level around $210 billion.

Still at the same level a touch below $6,500, Bitcoin is static. BTC has traded at the same price range for the past two weeks and has not been able to get anywhere near $6,600. Ethereum is also immobile for another day trading at just below $205.

Yet again the altcoins are mixed and there really isn’t much to write about. Nothing is gaining more than a percent on the day in the top ten and Stellar has declined the most falling back over 2% to $0.228.

The top twenty shows equal torpor with more red than green. Iota and Nem have dropped just over 2% and Dash is not far behind. There are no altcoins making gains until we get way down the chart, and even those are small.

No major fomo pumps going on either today as the markets sleep. The top performer in the top one hundred at the moment is Veritaseum climbing 8% on the day. Polymath and Metaverse ETP are both up just over 7% and Decentraland has made 6.5% at the time of writing. Dropping between 5 and 6 percent at the red end of things is Ravencoin, Aion, Bytom and Golem.

Total market capitalization is still at $209 billion, exactly the same level as this time yesterday. Over the past week markets have ranged between $212 and $208 billion, unable to break out in either direction. The crypto bears are keeping things firmly on the floor and markets haven’t really done much since early September. A real recovery looks a long way off at the moment and this lethargy could continue for another month or more.

This post credited to News BTC  Image soure: News BTC

Markets are sleeping again this weekend; only Veritaseum and Ravencoin going anywhere.

Sunday has seen a small upward shift in crypto markets as predicted in yesterday’s market update. With a series of small higher lows over the past 24 hours market capitalization has crept back over $210 billion.

Bitcoin has climbed back over $6,500 again but is only up around half a percent on the day. There are no solid signals for movement in either direction as BTC looks to stay here for a while as it faces solid resistance at this level. Ethereum is a similar situation with a one percent gain to $207 during Asian trading today.

The altcoins are mostly green at the moment but as in previous days gains are very small. In the top ten Bitcoin Cash has made the most progress with a 2% rise to $450. The rest have made between zero and 1.5 percent on the day.

The top twenty is a very similar pattern with Zcash making the biggest gain of 3.4% to trade at $126. Some altcoins such as Dash and VeChain have not moved at all but most are up around a percent since this time yesterday.

Today’s fomo pump is Veritaseum which has entered the top one hundred and is surging 33% at the time of writing. Tomorrow it will probably be the opposite for VERI. Ravencoin is also doing well at the moment with a 22% climb as is Bytom which has jumped 19% on the day. Nexo has made 13% and Siacoin is also in double figures with a 10% gain.

Two altcoins are topping the red end of the chart with CyberMiles and Digitex Futures both losing over 6% right now. Losses are very small for the rest of them.

One percent has been added to the total crypto market capitalization which currently stands at $211 billion. Trade volume has dipped below $10 billion again and things are still very slow and very sideways in crypto land. Bitcoin dominance as dropped a touch to 53.6% but none of the top altcoins are showing any significant movements this Sunday.

This post credited to News BTC  Image source: News BTC