Since Bitcoin found a foothold in the $6,200-$6,800 range in early-August, crypto traders have been doing their best to discern where this unpredictable market will head next. But, with positive crypto-centric news becoming commonplace, there has been an unprecedented number of investors, commentators, and industry leaders that have foreseen a bottom in the tumultuous cryptocurrency market.
“Last Dip Ever”
AngeloBTC, a well-followed cryptocurrency commentator and analyst, recently broke his one-month-long Twitter hiatus to claim that Bitcoin was seeing its “last dip ever,” alluding to the well-read theory that crypto assets are finally starting to undergo a bottoming phase.
Last dip ever. pic.twitter.com/IiJ1AoR2UB
— Angelo฿TC (@AngeloBTC) October 15, 2018
Although some claimed that his bullish call was fueled by hope, and nothing more, the fact that such a prominent trader made this prediction comforted thousands of his 124,000 Twitter followers. While Angelo, who was BitMEX’s top trader by volume in early-2018, failed to rationalize his call with technical and fundamental indicators, there has been a multitude of industry leaders that have done that job for him.
Mike Novogratz, a former Wall Street guru turned crypto diehard, revived his dust-ridden Twitter page in early-September to claim that this market “put in a low.” Clearly tapping into his knowledge of traditional capital markets, the Galaxy Digital CEO explained that markets of any variety “like to retrace to the breakout.” So, seeing that crypto assets essentially “retraced the whole of the bubble,” Novogratz claimed that a reversal to the upside is imminent.
Image Courtesy of Mike Novogratz/Bloomberg
While critics of this theory may point out that the chart Novogratz highlighted is now one-month outdated, his point is still as valid as ever. One week after he issued his “#callingabottom” tweet, Novogratz took to CNBC Fast Money to highlight the other side of the coin — fundamental indicators.
Although his appearance on CNBC stretched out to a painstaking 11 minutes, a theme was consistent throughout his comments, which was that institutions are poised to allocate capital to the cryptocurrency market, adding that “institutional FOMO” is proverbially right around the corner.
Since then, however, Novogratz has since retracted some of his short-term price predictions. But, investors shouldn’t be wary, as other industry leaders picked up right where the CEO left off. Long-time Bitcoin proponent Tom Lee, the head of research at Fundstrat Global Advisors, told his clients that $1,900 per Ether by year’s end is a likely scenario. Despite not explicitly stating it, it is likely that Lee also believes that his $25,000 Bitcoin prediction is still in the cards as well.
Crypto News Cycle Turns Positive, “Kindling” For The Next Bonfire
Blockchain Capital’s Spencer Bogart also had bullish sentiment to tout, recently claiming that while patience is essential, the long-awaited bottom is within this industry’s grasp. Giving his forecast some credence, Bogart explained that the positive developments the crypto market has undergone in the past few months will be “kindling” for crypto’s next bonfire, or growth cycle in other words.
And, as seen by the recent news cycle, this industry has undoubtedly seen its fair share of fundamental developments that will only better the experience for institutional and retail participants.
Bakkt, a cryptocurrency platform aimed at revolutionizing how institutions, retail investors, and merchants interact with this industry, is slated to launch its first product in November. If the launch of its physically-backed futures products goes according to plan, the platform, which has been formally backed by the Intercontinental Exchange, Microsoft, and Starbucks, will only increase the adoption and real-world use of crypto assets.
In a bid to seemingly undermine Bakkt’s launch or to hop on the gravy train, American banking giant TD Ameritrade joined hands with ErisX, which will reportedly offer Bitcoin, Ethereum, Litecoin, and Bitcoin Cash futures by Q2 of 2019. Some argue that ErisX is even more bullish than Bakkt, as its futures vehicle will immediately be available to TD Ameritrade’s 11 million consumers upon launch.
Not only have multinational corporations forayed into crypto through partnerships, but Wall Street giants are willing to gain a vested interest in this budding space through the establishment of crypto-focused products and services. Morgan Stanley, Citigroup, and Goldman Sachs, for example, all recently began work on offering Bitcoin derivative swaps to their clients, which will allow these firms to bring crypto trading to the mainstream.
It is important to note that the aforementioned developments are just the tip of the iceberg when it comes to positive crypto news. So make no mistake, despite the dismal performance of the market, this industry is far from dead in the water.
Although the fundamental indicators are signaling crypto’s biggest bull run to-date, as pointed out by Joseph Young, the lack of volume is still one hurdle the crypto market needs to clear before a bull run is all but confirmed.
Bitcoin and crypto market waiting for 1 thing
1. Final shakeout 2. Positive developments (Bakkt, Custody, Banks) 3. Months of stability Bitcoin at $6,200 ~ $6,800 range since August 9 4. Lower highs since January bottoming out with record low volatility 5. Volume
— Joseph Young (@iamjosephyoung) October 15, 2018
Featured Image From Shutterstock
The post Has Bitcoin Bottomed Out With its Last Dip at $6,200? Investors Optimistic appeared first on NewsBTC.
Bitcoin price rallied above the $6,600 and $6,700 resistances and later reversed gains against the US Dollar.
There was a break above a major bearish trend line with resistance at $6,310 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Tether (USDT) pairs rallied above the $7,000 and $7,500, but later trimmed most of its gains.
Bitcoin price broke the $6,700 resistance, but it failed to hold gains against the US Dollar. BTC/USD is back to $6,400 and it is currently under pressure.
Bitcoin Price Analysis
There was a major sell-off noted for Tether (USDT) pairs, which ignited an upward move in bitcoin price against the US Dollar. The BTC/USD pair also gained traction and moved above the 6,600 and $6,700 resistance levels. Earlier, there was a decent support base formed near the $6,150 level. The price started an upward move above the $6,300 level and the 100 hourly simple moving average.
The upside move was strong as the price broke an ascending channel with resistance at $6,300. Moreover, there was a break above a major bearish trend line with resistance at $6,310 on the hourly chart of the BTC/USD pair. The pair rallied towards the $6,800 level and traded as low as $6,825. Sellers appeared and protected further upsides above $6,825. Later, there was a sharp reversal and the price trimmed most of its gains below $6,600. It even broke the $6,500 level and it is currently testing $6,400. The 61.8% Fib retracement level of the recent run from the $6,152 low to $6,825 high is also acting as a support.
Looking at the chart, bitcoin price faced most of its gains above $6,600. This seems like a false break caused by Tether unwinding. Going forward, there could be range moves above $6,300 before the next leg.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is placed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently above the 50 level.
Major Support Level – $6,400
Major Resistance Level – $6,520
The post Bitcoin Price Watch: BTC/USD’s Upside Drift, Reversal And Tether’s Decline appeared first on NewsBTC.
After months of bearish action, the Bitcoin price on Monday soared above $7,000 within a matter of hours.
BTC/USD bounced from $6,269 earlier today to establish fresh highs towards $6,950, according to CoinMarketCap, adding approximately $9 billion to its market cap. On some exchanges, including Hong Kong-based BitFinex, the pair skyrocketed above $7,000.
Weak USDT Pumps Bitcoin
The circa ten percent jump was waved by the sell-off of USDT, a USD-pegged token, which didn’t exactly remain pegged to the greenback. The controversial stablecoin dropped to as low as 85 cents amidst a growing bearish sentiment against it which benefitted its quote currencies. They included Ethereum, Ripple, EOS, and other top coins – other than Bitcoin.
USDT was already receiving flacks for staying below its promised peg for weeks. The coin’s issuer, Hong Kong-based Tether, and its close ally Bitfinex, an international cryptocurrency exchange, recently dropped Noble Bank as their chief banking partner after news of insolvency started surfacing. Tether, which was reportedly holding the funds that backed USDT supply in Noble Bank, couldn’t maintain the peg for the same reasons. Hence, the price fell.
But, researchers argued whether Tether had funds to stabilize USDT at all. The company reportedly has been avoiding independent financial audits since launch. The crypto community is already questioning the authenticity of Tether’s early day promises in which it said that it would perform regular audits to prove a 1:1 relation between its USDT supply and USD capital.
A large USDT population, amid a mounting negative sentiment, swapped their holdings for Bitcoin, eventually pumping its value to a synthetic higher high.
Bitcoin Real Value Undecided
The stark difference in Bitcoin value between mainstream crypto exchanges is noteworthy, at the same time. The exchanges which had larger Tether volume apparently expressed higher Bitcoin upside swings compared to those with less-to-zero Tether volume. On BitFinex, for instance, the highest recorded Bitcoin-to-dollar exchange rate today was circa $7,785. Around the same time, US crypto exchange Coinbase noted Bitcoin upside limited to 6810.
All Tether driven. Not a healthy pump.
— Alex Krüger (@Crypto_Macro) October 15, 2018
At the press time, Bitcoin is trading approximately $300 higher on BitFinex than Coinbase, signifying that the market is yet to decide the Bitcoin’s real-time price, which could settle anywhere between $6,300 and $6,600 once the volatility drops. Another factor is bears that have already exited their long positions on a strong rally all across the exchanges, causing a circa $1,000 downside correction. Before the US market opens, BTC/USD could retreat back to its old range below $6,600. Long sentiments would be minimal in times of the lower lows formation.
Investors Moving to Other Stablecoins
As Bitcoin continues to go haywire, investors are already parking their funds to other stablecoins. TrueUSD, for instance, is Tether-competitor, whose volume and value have gained traction in the past 24 hours.
Although, TrueUSD is correcting lower, but is yet maintaining its peg against the US dollar. The coin against the dollar itself is trading 1.9 percent higher than expected on Binance. TrueUSD’s weekly rate has been 3.7 percent higher than the greenback, confirming that the coin is emerging amidst the unrest in the Tether market.
The post Bitcoin Explodes to $7,000 within 24 Hours; What Caused the Short-Term Rally? appeared first on NewsBTC.
A mass exodus from the most popular dollar-pegged stablecoin Tether (USDT) has led to its devaluation against peer stablecoins.
USDT on Monday broke away from its historically tight link with the US Dollar to touch 85 cents across multiple crypto-exchanges. As a result, a substantial USDT volume shifted to other cryptocurrencies, including Bitcoin, raising their price in an otherwise bearish market. Among the gainers were also other stablecoins whose per token value advanced against the dollar – as well as the Tether’s USDT.
USDC, TrueUSD, GUSD among Gainers
Traders started to flee USDT in the wake of growing skepticism against its issuers. There were doubts about whether Tether was operating a fractional reserve to inflate the Bitcoin price artificially. But traders opted to pool their crypto funds into USDT to protect themselves against the market’s trademark volatility. The faith in Tether diminished at last on Monday amid speculation over its poor financial status and alleged BitFinex’s insolvency, an exchange whose CEO is the USDT issuer.
Circle USD rising against the USD-peg
At the same time, stablecoins promising lower credit risk than USDT have shown up to 10% premium in their price against the USDT. Circle and Gemini, for instance, noted an impressive surge in their stablecoin prices against the dollar. While Gemini’s GUSD token surged as high as $1.05, Circle’s USDC established its new monthly high near $1.07, according to data available at CoinMarketCap.com.
TrueUSD, stablecoin, also witnessed an increase in demand against the limited supply amid Tether’s negated price action.
where a simple filthy statist buck is "worth" $1.08 on an exchange… because reasons: pic.twitter.com/ktQaaLHojb
— Tim Swanson (@ofnumbers) October 15, 2018
TrueUSD, Gemini and Circle are US-regulated entities and are liable to issue tokens backed by real fiat funds or face severe penalties. Tether, on the other hand, has been accused of ducking independent financial audits of its balance sheets in the past, to which it reasoned that the auditing procedures were “excruciatingly detailed.”
Gemini stablecoin rising as Tether drops
It demonstrates why a growing negative sentiment in Tether market is influencing USDT holders to fly to less risky alternatives like TrueUSD, USDC, and GUSD. Alex Kruger, in his interview to NewsBTC’s Chief Editor Joseph Young, had predicted the ongoing scenario earlier.
“One should expect a great percentage of all USDT (Tether) holdings to migrate to GUSD (Gemini) and USDC (Circle),” he had said.
Can Tether Reclaim $1?
The USDT/USD is now undergoing a reversal action, the authenticity of which cannot be verified at the time of this writing. The tether issuer would need to settle community criticism once for all by opening their doors to independent financial auditors and make their balance sheets public. Unless that happens, one cannot look at the so-called stablecoin as a haven for safe crypto parking anymore.
The recent market performance of Tether’s peers has proven that the community would jump the sides than stay in the superstition of stability.
The post Peer Stablecoins are Showing 10% Premium against a Weak Tether appeared first on NewsBTC.
The Financial Crimes Enforcement Network has warned U.S financial institutions that the Iranian government might be dodging economic sanctions by using cryptocurrencies. The document highlights challenges arising from peer-to-peer virtual currency exchanges and encourages banks to monitor blockchain ledgers for transactions tied to the country.
Also Read: Church Mining Cryptocurrency to Pay Higher Electricity Rates
Iranian Bitcoin TransactionsEstimated at $3.8M Since 2013
The U.S. organization, known as Fincen, issued the warning in an advisory to assist U.S. banks and other financial actors such as cryptocurrency exchanges in identifying “potentially illicit transactions related to the Islamic Republic of Iran.” The document includes a lengthy section relating to crypto, as well as an estimate that “since 2013, Iran’s use of virtual currency includes at least $3.8 million worth of bitcoin-denominated transactions per year.”
Fincen noted that “while the use of virtual currency in Iran is comparatively small, virtual currency is an emerging payment system that may provide potential avenues for individuals and entities to evade sanctions.”
P2P Exchanges Highlighted asKey Crypto Conduit
While reports have indicated that the Central Bank of Iran has prohibited domestic financial institutions from touching cryptocurrencies, Fincen stated that “individuals and businesses in Iran can still access virtual currency platforms through … Iran-located, internet-based virtual currency exchanges; U.S.- or other third country-based virtual currency exchanges; and peer-to-peer (P2P) exchangers.”
Fincen said that P2P cryptocurrency exchangers are a significant means through which Iran can bypass economic sanctions. It defined such individuals as people who offer to purchase, sell or otherwise exchange virtual currencies, either face to face or through websites. It added that “P2P exchangers may operate as unregistered foreign (money services businesses) in jurisdictions that prohibit such businesses; where virtual currency is hard to access, such as Iran; or for the purpose of evading the prohibitions or restrictions in place against such businesses or virtual currency exchanges and other similar business in some jurisdictions.”
Financial Institutions Urged toConduct Due Diligence
Fincen also said that U.S financial institutions should remain aware of the “highly dynamic” nature of the global market for cryptocurrencies.
“New virtual currency businesses may incorporate or operate in Iran with little notice or footprint,” it explained. “Institutions should consider reviewing blockchain ledgers for activity that may originate or terminate in Iran.”
Fincen urged institutions to use technology to keep an eye on open blockchains and monitor P2P transactions. Examples of the latter could include “wire transactions from many disparate accounts or locations combined with transfers to or from virtual currency exchanges.”
In addition, the organization reminded institutions and individuals in the U.S. that handle virtual currencies to refer to a list of frequently asked questions on international sanctions that was published by the Office of Foreign Assets Control earlier this year. “Financial institutions and virtual currency providers that have (Bank Secrecy Act) and U.S. sanctions obligations should be aware of and have the appropriate systems to comply with all relevant sanctions requirements and (Anti-Money Laundering/Combating the Financing of Terrorism) obligations,” Fincen said.
Do you think regimes such as Iran will increasingly turn to cryptocurrencies to dodge economic sanctions? Or do you think the concerns outlined in the Fincen document are overblown? Share your thoughts in the comments section below!
Images courtesy of Shutterstock
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