Bitcoin Shows Resilience, As Bloomberg Predicts That It “Is (Probably) Here to Stay”

  • Bloomberg reported on three main reasons why they think that Bitcoin’s price is rising and why the crypto market is sticking around.
  • Presently, Bitcoin is above the $12,000 price level, at the time of writing.

Bitcoin is having a great month so far, and there are many people that believe that it is going for a full rally. For much of 2018, Bitcoin resided below $4,000, but this week has increased the price by nearly $10,000. The cryptocurrency still has a relatively volatile price, but there are many proponents of Bitcoin that believe it to be on the way to that $20,000 price level of late 2017.

Reported by Bloomberg, these price changes almost create a paradox – if the Bitcoin boom was nothing more than a bubble in the first place, how is it now gaining traction again. The only logical explanation is that cryptocurrencies are most likely securing their place in the economy now.

The recent Bloomberg article speculates that one of the reasons for the rising Bitcoin price could be rising is due to the trade war between the US and China. At this point, it looks like China does not intent to join the international economic order, creating a cold war. If China opts against liberalization and stays out of this order, then Bitcoin would serve as a helpful way to move funds outside of China. It is possible that the government could stop this practice from happening but choosing to outright liberalize would stop Bitcoin from being usable entirely.

Another development that Bloomberg credits is the way that the Democratic Party of the US continues to lean to the left, especially regarding a wealth tax. Fiscal deficits in the US have grown, and restoring the balance is a long-term goal. Presidential candidate Elizabeth Warren has campaigned for a 2% wealth tax.

Regardless of the public view of these opportunities, it is clear that cryptocurrency provides an avenue to store assets in unreachable accounts to keep them away from the tax authorities. Many nations could potentially look to a wealth tax to help them establish balance in their financial issues. Realistically, the growing price of Bitcoin is showing that it will be hard to find “fiscal solvency,” as Bloomberg wrote. However, it does not look like the wealthy plans to bid farewell to their assets yet.

The third reason that Bloomberg believes that Bitcoin is rising in price is due to the movement for Facebook to launch their Libra cryptocurrency. There are many roadblocks in the current laws that could impede the progress of this launch, but the idea that remittance and other fund transfers could come at such a low cost would be highly beneficial to consumers. The stakes get even higher if the costs could be dropped from 7% to around 1% or 2%.

Cryptocurrency is an ever-evolving landscape, and all of this progress shows that it is a market work looking at. Competitors may arise for the original cryptocurrency, but that competition just means that companies have enough faith that they can become successful too. As long as their competition, there’s a clear desire for the market to be kept alive.

At the time of writing, Bitcoin was priced at $12,284.96, jumping by 14% in the last 24 hours.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

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Author: Krystle M

Crypto Investors Are Paying Over 2,000% Premiums on ETH via Grayscale’s Ethereum Trust


Something pretty weird is happening on the Ethereum (ETH) market. According to Charlie Bilello, known as a financial researcher and investor, Ethereum is currently being traded in some markets with substantial premiums that can reach 2,000%.

On Twitter, he affirmed that ETH was traded with a premium of exactly 2,022% ($580 USD per share) on Grayscale’s Ethereum Investment Trust during June 21. Today, the premium stands at around 312%, as it is decreasing, but it started around 1,000% on June 20. The premiums are way above the Grayscale’s Ethereum Investment Trust, obviously.

According to Bilello, people who bought the shares at 2,000% obviously got burned. The price of the asset went up after they bought, but the price was actually so high that they simply had no way to make up for their losses by investing with such a high premium. So far, they had a 78% loss, he affirmed.

At the time of this report, the price of ETH is around $305 USD. The shares are the equivalent of 9.6% of that price, so they cost around $28.87. By paying such an absurd premium, investors bought shares as it Ethereum was actually worth $5,800 USD, which is obviously not a price that the token will reach anytime soon.

Why Are The Investors Paying So Much To Buy Ethereum?

We can start to have an idea of how the premium got so high when we look at how Bitcoin is trading on this kind of over the counter (OTC) desk. The Grayscale’s Bitcoin Investment Trust, for instance, sold BTC for $11,000 USD a piece during May 29. This meant that the premium was 37%.

The reason for that is that some accredited investors cannot buy Bitcoin and Ether using the existing crypto exchanges. Some of them are very wealthy people who are watched carefully by the regulators and most exchanges are not very well regulated.

In order to be able to participate in the market, they need to use a company such as Grayscale. The company is fully insured, regulated and transparent, so they have the perfect channel for investing. Unfortunately for them, so many investors looking for these products can make the prices go up.

This is basically why so many companies are starting to invest in institutional services. This way, they are able to cater to these new investors and get their huge amounts of money. As you may know, one wealthy institutional investor is worth a lot more than dozens of retail ones for a company since they hold a lot of money.

The premium can be explained because of the high demand for the shares. The investors had to pay so much money exactly because they wanted to participate and they were not alone but in a huge crowd of similar investors.

At the time of this report, the premiums are still very high. It looks like the investors will still need to pay a high premium if they want to be a part of these services.

Is There A Solution For This Problem?

How to solve this problem? The answer is actually fairly easy: the eagerly awaited Bitcoin exchange-traded fund (ETF) could be an answer. With a regulated mechanism such as this one, the investors would not need to pay such a large premium anymore, which would benefit them and the market.

Unfortunately, the ETF still looks to be far from approved at the time. Bitcoin is already a popular product, but concerns regarding market manipulation are preventing the U. S. Securities and Exchange Commission (SEC) to act on this issue. How much time do we have to wait until the SEC finally votes in favor of the ETF? Nobody knows.

All of Today’s Ethereum (ETH) Price Analysis, Chart Forecasts and Industry News

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Author: Gabriel Machado

German Police Bust Largest Dark Web Store ‘Chemical Revolution’ Where Users Paid Bitcoin for Drugs


The Police in Germany on June 28 raided an organized criminal syndicate, Chemical Revolution, a dark marketplace that allows its teeming customers to purchase all manner of drugs with Bitcoin.

The latest development by the authorities in Germany was contained in a press release issued by the office of the Federal Criminal Police Office. The authorities have officially arrested 11 suspects in connection with the case.

Bitcoin Criminal Gang

The police also shut and seized the site’s servers, so as to get relevant information to nail the suspected culprits. The French police also supported their German counterparts in fighting this new menace that is threatening to sweep over all European countries.

Although authorities have been on this case for a long time, the investigation took a dramatic turn when a 26 years old German national from Brandenburg was arrested in spring last year. Upon his arrest, the police found some incriminating objects from him, some of which includes 50 Kilograms of amphetamine, 16 Kilograms of cannabis, 2 Kilograms of MDMA, 600m grams of heroin, and a high number of ecstasy tablets and the LSD trips.

Crypto Aided Drugs In Europe

The arrest of the suspect on May 28 has led to so many other arrests, as the suspect is cooperating fully with the police, his statement so far is helping the police in the course of their investigation.

Also arrested was 43-year-old Dutch national on February 13, while he was handing over 14 Kilograms worth of various drugs to customers in Hamburg. The drugs in his possession were said to be procured from the Netherlands but carefully transported to Germany, from where it will be sold to their eager customers.

A man who specializes in the transport of the drugs from their base to Germany was also arrested and currently cooling his heels with the police.

The crackdown on dark websites and marketplace in Germany took a new turn when the German authorities sought the help of the Polish, Dutch, Spanish and French Police to fight the menace.

The cross country policing made it very hard for the criminals to escape and the result is the demolition of various sites and arrest of several criminals in Germany and Europe as a whole.

Cryptocurrency is now a force to reckon with in Europe, but the big names are still sceptical about the digital currency market, due to the high level of crime that’s associated with it and the ‘’prone to hacking’’ reputation it has gained in recent years.

Bitcoin Exchange Guide reported last month that the European Central Bank released a new paper on Cryptocurrency and financial stability on the continent.

The bank apex body subscribed to the view of the crypto space that the virtual currency is stable and does not pose any threat to financial stability in Europe.

But, if they are to be taken seriously, all manner of crypto-related crime must be flushed or reduced to its barest minimum.

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Author: Ogwu Emma

BFIA Releases Notice, Warns about Risks of Virtual Currency as Market Warms up

  • Beijing Internet Finance Industry Association (BFIA) on “Risk warnings about continuing to be vigilant when investing virtual currency”
  • Companies vigorously promoting their virtual coins under the guise of academic research
  • Illegal investment behavior, claiming “the currency value is rising again” while manipulated by criminals.

Beijing Internet Finance Industry Association (BFIA) released a notice on June 28 titled,

“Risk warnings about continuing to be vigilant in investing in the virtual currency market.”

In this notice, the association, not a government department, that is established by dozens of company from the internet finance industry stated that the current scenario of the international virtual currency market is warming up once again.

This has some companies like Algorand project, DVS publicizing their virtual currency under the guise of academic research promotion and “confuse domestic investors to participate in virtual currency transactions.” The ICOs and ICO variants continue to conduct cross border financial activities as well.

Moreover, perpetrators are claiming that “the currency value is rising again” and that “the investment period is short, the income is high, and the risk is low,” which in practice is actually manipulated by criminals, to attract investors and illegally profit, states the notice.

This month, Bitcoin has risen from around $8,400 to $13,900 before taking a drop and currently trading at $11,744. Since April, BTC/USD has been surging, recording more than 190 percent gains in the past 90 days.

“Do not blindly follow the trend, always be alert to speculative risks and avoid loss of property,”

advises the Association.

Reiterating the 2017 ICO ban and other warnings, BFIA said IEO, IFO, IMO and others are of extreme risks that use ‘“financial innovation” as the gimmick.” Most of these fundraising, it says are not really based on blockchain technology rather are speculative, pyramid schemes, and frauds.

BFIA urges the relevant companies to strictly abide by the laws and regulations and report to the financial regulatory authorities or industry association if anyone finds any organization involved in such illegal financial activities.

“The Association advocates that members and social institutions should strengthen self-discipline, resist illegal financial activities, and not participate in any “ICO” and its variants or speculative “virtual currency” illegal financial activities.”

As reported, it’s just an association’s warning notice and is not a law or regulation.

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Author: AnTy

Two GNT Co-Founders Resign To Open Golem Foundation; A Non-Profit Research And Development Wing


Two of the founding executives of the multi-million Golem Factory are leaving the startup to head up a new non-profit R&D effort known as Golem Foundation. The new foundation will pursue riskier yet ambitious research and development initiatives.

In a press release, Golem Factory CEO, Julian Zawistowski, stated that the goal of the foundation is to pursue fresh, innovative and experimental yet riskier opportunities as per the Golem proposition and to enhance the Golem Network Token (GNT).

The statement said that Julian Zawistowski and the immediate former COO in Golem Factory, Andrzej Regulski are set to leave the company leaving the reigns to CTO Piotr Janiuk and lead software engineer Aleksandra Skrzypczak.

Explaining the developments, Zawistowski said that the Golem project has reached a stable phase. In this regard, part of the team can easily diversify and research different business or tokenomics avenues.

Skrzypczak explained the new model in details to CoinDesk:

“After several years working together, we came to the realization that in order to keep the research and development of the Golem Network stable and focused, while not relegating the thirst that any technologist has for constant innovation, spinning off a new entity within Golem’s ecosystem is the best way to boost the efforts.”

The four men started Golem Factory in 2016 and managed to raise about 820,000 ETH or about $240 million as per the current market metrics, to develop a distributed computation platform on based on Ethereum blockchain.

Popularly known as Airbnb for computers, the project is basically an option to the cloud computing platforms where a user is free to buy or let out idle computational resources.

Golem was released on the Ethereum mainnet at the start of 2018 with a product beta launch that was referred to as Brass Golem. Currently, the team is poised to launch its next beta that will be released in the coming fall and will be known as Clay Golem. In addition, the developers are also developing Golem Unlimited that will enable the formation of subnetworks on Golem and will be run by data center-like setups so as to increase the network reach.

Although the team is pursuing the technical roadmap for the Golem community, the newly created Golem Foundation will be operating independently and will have its own goals.

Zawistowski explained the mandate of the new foundation:

“In the beginning, we want to start with thorough research of alternative approaches that contribute to the long-term vision behind Golem and create novel and out-of-the-box solutions useful for Golem and GNT. Exploring these options requires a limited period of time working in a semi-stealth mode.”

More Details To Be Announced Later

Currently the company has not yet announced the details or the areas of focus by the research and development team. However, Skrzypczak was categorical that privacy related tools will be part of the Foundation’s plans. The details will be shared in the near future in order to keep the Golem community updated.

What areas would you like the Golem Foundation to focus on? Let us know in the comments section below.

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Author: Joseph Kibe

Bitcoin Needs to Be Involved in More Real-World Apps, According to Over One Fourth of UK Residents

  • took a survey to understand the needs and expectations of the public in the UK, in relation to cryptocurrency.
  • The survey revealed that more people would be involved in cryptocurrency with more real-world use cases and integration into familiar technology.

Cryptocurrency, even though it has been around for 10 years, still has many people around the world that know nothing of it.

The lack of information for the public is one of the major reasons that the industry still has not reached the level of notoriety hoped for, but that does not mean that the public is not interested. In fact, in recently published research by the crypto exchange, it appears that 27% of the surveyed citizens in the United Kingdom are hoping for more “real-world applications” of digital currency.

In a report from BTCManager on June 27th, offered the results of their survey, primarily centered around adoption, application, and expectations of digitals currencies in the region. The survey involved 1,013 respondents.

In the survey, 32% of the individuals said that it would be nice to have the tech integrated more easily into payments apps, mobile storage, and other types of “everyday technology.” Real-world use cases for cryptocurrency, like credit card payments and sending cross-border payments, are desired by about 27% of respondents.

The survey asked the participants why they personally own cryptocurrency. While 18% said that they just liked trading in general, curiosity and hoping for prices to surge were the reasons for 21% of respondents, each. In the survey, nearly half of the cryptocurrency owners had some amount of Bitcoin, which makes it the most dominant coin amongst participants.

Of the people who did not hold cryptocurrency at the time of this survey, 28% said that this would probably change if they understood it better. However, 12% said that they wanted to have an understanding of how to store it safely and securely before owning it, and another 11% said that they would purchase cryptocurrency if it could buy real-world goods. Making cryptocurrency easier to purchase was the leading reason for 7% of respondents.

Kaspersky Lab, a cybersecurity firm in Moscow, held a survey that was published on June 17th, stating that 19% of people around the world have purchased cryptocurrency before.

However, that means that 81% of the respondents have never purchased cryptocurrency. Overall, there were 10% of respondents who said that they “fully understand how cryptocurrencies work,” which means that there is a fraction of people who are involved with cryptocurrency but do not understand it.

The deVere Group, a financial consulting firm in Dubai, released a survey last month that showed that 68% of the individuals in the world with a high net worth already have invested in cryptocurrency, or plan to by 2022.

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Author: Krystle M

Ripple’s xCurrent-Based Money Tap Gains Seven New Banks as Equity Holders


Ripple has recently made the news for announcing that it would invest $50 million USD on MoneyGram and SBI Holdings, a Japanese financial services company. Now, the company is on the spotlight again and, fortunately, it is because of good news once more.

The company has recently announced that seven new banks are onboard of its Money Tap initiative, which is powered by the company’s xCurrent technology, based on the XRP Ledger.

Money Tap, in case you are not familiar with this technology, is a payment app launched by Ripple in order to make payments more seamless and faster. With the app, users can transfer money almost instantaneously whenever they want to.

The app also allows for transactions with bank accounts, using QR codes to pay and cross-border transfers. At the moment, only two banks were fully compatible with the system: Suruga Bank and the Suminobu SBI Net Bank.

Now, the Fukushima Bank, Towa Bank, Toho Bank, Chubuko Bank, Shimane Bank and Ashiga Bank, as well as a yet unnamed bank, are all using the Money Tap system, too. The number of banks which have invested in the technology, counting the ones that do not use it, is at 20 now. These banks include Shimizu Bank, Shiga Bank, Hiroshima Bank, Fukui Bank, Shinsei Bank and others.

As you may have perceived, basically all these banks are based in Japan. The Money Tap is becoming pretty strong locally, so there is no doubt that Japan is the main target that Ripple has for this project.

The current goal at the moment is to allow other organizations to participate in this consortium as well, which may bring benefits to them and to their customers. No names were announced, but some financial institutions are already interested in being a part of the new project.

All of Today’s Ripple (XRP) Price Analysis, Chart Forecasts and Industry News

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Author: Gabriel Machado

Goldmoney Founder: Bitcoin Is An Enterprise And Users Are Akin to Its Shareholders


Unless you are very young, you probably remember the 2008 financial crisis. The last crisis that rocked the financial world and its consequences (the bank bailouts, for instance) were part of the reason why Bitcoin was created.

Back in 2008, a man who used the alias of Satoshi Nakamoto decided that a revolution was needed and Bitcoin was born. Fuelled by the lack of confidence in the institutions, Bitcoin rose from the depths of the internet to the mainstream and now it is the hottest financial asset of the world, some would say.

With fame, came the need for regulation. The governments would not simply allow everybody to use BTC without regulating it somehow, so the U. S. Securities and Exchange Commission (SEC) teamed up with the Commodity Futures Trading Commission (CFTC) in order to define that BTC was a commodity and that it should be taxed that way.

Obviously, not everybody agrees with this definition. Roy Sebag, the Goldmoney founder, is one of these people. He recently tweeted that Bitcoin was not a commodity but an enterprise instead. According to him, BTC was working its good and he compared the token holders with traditional shareholders of financial companies.

Because of this, he believes that BTC can be considered a security, not a commodity. The reason for that, he affirmed, is that miners are constantly issuing new tokens and they are the ones responsible for the governance of the system. The fact that they do not have any kind of formal relationship is irrelevant to him, but it has confused the regulators, in his opinion.

Sebag also affirmed that the miners had the role of “stewarding” the enterprise that Bitcoin is and that they get paid fees for their work. Because of this, BTC is akin to an enterprise and the miners work there, as the token holders are shareholders who have a common interest in seeing the prices going up.

He affirmed that all tokens are traded at exchanges, which makes it clear that they are designed for price appreciation.

Because of this, Sebag believes that the U. S. government could shut BTC down like they did with some other file sharing big players. BTC would be a security and, therefore, it would be acting illegally this way, according to the Act 34 of the SEC.

Obviously, he enraged the crypto community with his remarks. The CTO of Casa, Jameson Lopp, refused to agree with Sebag and affirmed that he may believe whatever he wants, but he is not participating in the ecosystem, so his opinion is pretty much irrelevant to the consensus formation.

Other people have also responded negatively to his allegations, which is to be expected since he is affirming that BTC is illegal.

The truth is that we are far from having a consensus about BTC, so this kind of discussion will keep happening for a long time.

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Author: Gabriel Machado

Did you Know More Than 65% of Crashed Stablecoins Were Gold-Backed?

Did you Know More Than 65% of Crashed Stablecoins Were Gold-Backed?

The cryptocurrency sector has recorded a lot of growth in recent times, especially with all the good news that has come out of the industry in 2019.

The fact that the crypto winter successfully ended and the market has been quite impressive since April when the surge started, coupled with Bitcoin’s over 200% return this year alone, has brought many people to the sector.

There is also a lot more institutional investment than has been seen in previous years. Regardless of all these, there are still a lot of people – some of them powerful government officials – who are less than excited about cryptocurrency.

On one hand, people are bothered about the decentralization and the fact that everything goes largely untraced. However, on the other hand, the biggest problem people have (including crypto proponents) is the volatility.

Bitcoin, for example, recently gained more than $1,000 in a short period of 24 hours and another 24 hours after that, it lost more than $2,000, currently trading just a little below $11,000.

Enter Stablecoins

A stablecoin is a digital asset whose value is backed by a particular asset or a range of assets. They are specifically designed to control the usual cryptocurrency instability as much as possible. A stablecoin can either be pegged to a traded asset like gold, or to a particular fiat currency.

However, it seems like the general idea of stablecoins (especially those backed by gold) isn’t really working and a lot of them are either defunct or didn’t kick off at all in the first place.

According to information from Blockdata, a blockchain analysis service, almost 120 stablecoins have been announced since January 2017 and till date, they have all failed to kick off. Another 24 stablecoins did kick-off but didn’t do well and eventually died out leaving only 66 stablecoins active today.

Another interesting piece of information is that of the 24 stablecoins that crashed out, 16 – representing more than 65% – were not backed to fiats but to gold reserves.

It has been said that stablecoins pegged to fiat should generally be supported by a properly centralised financial figure like a bank, so as to ensure some security. While this sounds like a fantastic idea, the recent problem that Bitfinex and Tether had, has shown that there is always the chance that things don’t go as well as planned.

Gold-Backed Stablecoins Might Be A Bad Idea

The assumption can now also be made that gold reserves are not the best backing for a stablecoin. For a gold-backed coin to work, there has to be actual gold stowed somewhere for the exact purpose of backing the coin.

However, a gold backed stablecoin would still have the same volatility issues plaguing the rest of the sector. This is because gold is far from stable and is still vulnerable to price swings.

Gold has been advertised for hundreds of years as a great store of value and while this works sometimes, one has to wonder why this many gold-backed stablecoins have crashed. There’s also the fact that some of the other cryptocurrencies give better returns than any stablecoin. Ethereum for example recently recorded a 150% year-to-date return while that of Bitcoin is well past 200%.

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Author: Tolu

Bitcoin’s Roller Coaster Week: Ebbing and Flowing With Futures Expiry

Bitcoin's Roller Coaster Week: Ebbing and Flowing With Futures Expiry

Bitcoin has been on an interesting and energetic journey over the last couple of weeks. Having seen values soar by more than $2,000 as of Wednesday, pushing it beyond $11,500 to a staggering $14,000 with a record breaking volume of more than $44 billion dollars

While it enjoyed a brilliant rally, it also endured a similar kind of reversal in as many days starting off last night by European time, receding back to around $11,800 on Thursday.

What we can see from some of the above candlestick charts, especially from the large green candle alongside the equally substantial red candle, with Bitcoin managing to scrape at the incredibly rare $14,000 marker.

While this was more than a welcome surprise for  investors, this price point was an unfortunately shaky one, with a range of fast movements and a general ‘feeling’ of great heights from the market. As a result, a price correction was expected to be around the corner.

The moment that it manages to reach the $14,000 marker is also the time when we would all expect there to be a steady retreat away from it as BTC adjusts to newer heights. As it all looks pretty standard for the most part.

While this is the way the cookie crumbled for the Bitcoin market of 2017, the past is no clear indication of what the future holds for crypto. We have a pretty extensive lesson to take from the meteoric surge that Bitcoin underwent during 2017.

Back during that time in 2017, when Bitcoin successfully managed to push upwards from around $9,000 to around $12,000 all before staggering back down to about $9,000, with it managing to climb further up from thereafter.

In contrast, Bitcoin, while managing to do the same here, but at higher points of $14,000 and higher still before it reaches resistance levels at around $17,000.

Were it to have climbed up even further without any kind of correction then perhaps there may have been a more substantial reason for investors to feel concerned about the ongoing reversal, but the current dip that Bitcoin is experiencing is actually pretty healthy all things considered.

This is substantiated by the fact that CME Bitcoin futures officially close tomorrow, not before clocking in a truly amazing 132,455 Bitcoin representative contracts being exchanged over the course of yesterday along – totaling an incredible 1.5 billion dollars.

CME’s Bitcoin Futures contracts have been at a pretty strong premium and continue to operate at the same level during the time this is published, with a longer premium rate placed on contracts for September as well, some of which are being priced at more than $600.

So what does this mean for Wall Street overall? Ultimately, its overall performance is basically in the green, but there is to be some loss expected with this as yet healthy performance.

While this is the case, there has been some noticeable one off market selling over the course of Wednesday evening. As a result of this news, it may be the case that Wall Street was responsible for the dip, while the June contract comes to a close on Friday.

This isn’t so much of a surprise for more experienced investors, however, the dipping pattern ahead of the expiry of futures contracts has been happening with a degree of regularity over the past 3 months, almost like clockwork, with CME’s futures design facilitating this trend.

While this may not essentially be something that is wholly unique to Wall Street, but with what we have previously seen with the likes of OKCoin, which had been regarded as one of the popular settled futures related to Bitcoin – this too had created a similar kind of ebb and flow pattern.

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Author: James Fox