Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

In Monday’s crypto carnage, the market provided a hefty discount that people have been calling out for some time now, with the digital assets rallying hard.

The overall cryptocurrency market lost $240 billion, but since then, it has gained some $86 billion back as the prices of cryptocurrencies make a recovery.

While Bitcoin went under the $50,000 level, Ethereum went under $1,550. But what has been interesting and for some devastating, the price of Ether went to $700 on Kraken.

The cryptocurrency exchange had some wild price action on Ether as after such a discounted opportunity, it went back right above $1,700 and caught up with other exchanges soon after.

This hasn’t even been a one-time thing as popular crypto personality, CryptoCobain, tweeted, “People trading on Kraken are masochistic. Once per month they get completely fucked by the matching engine.”

While for leveraged traders, it was a disaster, this also turned out to be a perfect opportunity for spot buyers.

“Unbelievable, my fishing ETH orders below $1.2k have been filled on Kraken,” tweeted one trader, who is extremely bullish on Ether and has long been calling out for a $10,000 price target for the second-largest cryptocurrency in this cycle.

On top of the deep red market, this much price volatility sent the gas prices on the network soaring. This made trading on-chain nearly impossible, let alone allowing traders to front-run.

Exchanges were already struggling with too much activity, with Kraken reporting, “Due to heavy traffic you might experience some connectivity issues. We are working to resolve the issue as soon as possible.”

Then, this congestion due to demand spikes on the Ethereum network led to delays with ETH and ERC20 token withdrawals.

Besides Bitstamp, Binance, as usual, felt the heat and suspended withdrawals.

“Binance has temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion. Rest assured funds are SAFU, and we apologize for any inconvenience caused,” informed the leading spot exchange.

For now, things are slowly coming back to normal, ETH is currently around $1,750, and Bitcoin is back above $53,500.

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Author: AnTy

Darknet Markets Account For Only 0.08% of All Incoming Crypto Transactions: Chainalysis

  • In 2019, darknet sales increased by 70% and for the first time, it surpassed $700 million
  • Active markets collected more revenue than ever, except in 2012 and 2013
  • Chainalysis expects more darknet markets to accept privacy coins like Monero in 2020

In 2019, cryptocurrency prices weren’t the only ones that saw an increase but the darknet market also grew. Its transaction activity actually hasn’t been influenced by the ebbs and flows of the crypto markets and other seasonalities.

According to Chainalysis, after a decline in 2018, the total darknet sales increased by 70% in 2019 to more than $790 million worth of cryptocurrency.

This has been the first time that the sales surpassed $600 million and for the first time since 2015, darknet market share of overall incoming transactions increased, doubling from 0.04% in 2018 to 0.08% in 2019.

Darknet markets total share of incoming activity remains “extremely low” but Chainalysis states,

“recent increased volume speaks to the resilience of darknet markets in the face of heightened law enforcement scrutiny.”

The trend that remained intact was that the vast majority of these transactions flow through exchanges. Exchanges are the most common service customers use to send cryptos to vendors and then sending these funding to cash out.

Active Darknet Markets Collected Huge Revenues

In 2019, eight of the darknet markets closed but eight new ones took their place, keeping the total number of active markets steady at 49. Each of these active markets also collected more revenue than ever, except during the height of Silk Road’s heyday in 2012 and 2013.

This revenue was driven by more purchases rather than larger ones. While the median purchase size remained constant in USD value, the number of transfers jumped yet again from 9 million to 12 million.

“This suggests that either more customers bought from darknet markets in 2019, or that old customers are making more purchases.”

Darknet Markets Implement Safety Features

In the darknet markets, drugs remains a popular choice. Markets specializing in other illicit goods also bring in sizable funds.

Chainalysis report finds that some of these darknet markets have begun implementing user safety features such as multi-signature technology and wallet-less escrow also knowns as direct deposit. Some are even adopting new infrastructure to avoid shutdowns by law enforcement.

Going forward, Chainalysis expects more darknet markets to accept or mandate the usage of privacy coins like Monero as used by Empire which it says “could change in 2020.”

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Author: AnTy

Institutional Investors Buying the Dip? Bakkt Volume Shoots up to Hit ATH As BTC Price Crashes

Bitcoin is bleeding today, having lost about $700 in a few hours.

The leading cryptocurrency went down hard today, going as low as below $7,300 on Bitstamp. But soon after it recovered $200 back.

Currently, Bitcoin is trading at $7,500 with 24 hours loss of 8.38%, as per Coincodex. Reported trading Volume, meanwhile is over $20 billion on all spot exchanges and $653.5 million, up from $200 million last weekend, on top ten exchanges with real volume.

As Bitcoin takes a fall, institutions seem to have taken to buy this dip as evident from the huge spike in the trading volume of Bakkt.

Today, Bakkt has been breaking into a new record one after another.

At the time of writing, Bakkt’s monthly bitcoin contracts recorded a volume of 558 BTC (last updated) equivalent of over $4.185 million (at $7,500 per BTC rate). We still have a few hours left in the day, so it’s to be seen what will be the new record that Bakkt will make.

Given the fact that the day BTC price crashed, Bakkt volume took flight, it can be said that Bakkt’s institutional investors are buying the dip and filling their bags.

The current figure is a significant increase from just 72 BTC the physically-settled bitcoin contracts platform got in just 24 hours of its launch.

Up until now actually, Bakkt has been a “Flopkkt,” a moniker given by economist and trader Alex Kruger in the light of disappointing volume registered by the ICE-backed platform in the past month.

Could this mean, Bakkt is finally starting to see the growth it was meant and expected to? Well, this time this surge in volume seems to be coinciding with the drop in BTC price, so, it’s hard to tell if it’s the sign that institutional interest in BTC has come knocking in full force. But they sure seem to be all-in in this dip.

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Author: AnTy

Zcoin Price Prediction Today: Daily (XZC) Value Forecast – July 16

  • However, if the price does fall it will depreciate to the previous low of $7.00 price level.
  • The crypto’s price is below the moving averages suggesting that price may fall.

XZC/USD Medium-term Trend: Ranging

  • Resistance Levels: $12.0, $13.0 $14.0
  • Support levels: $10.0, $9., $8.0

Yesterday, July 15, the price of Zcoin was in a bearish trend that broke below the 12-day EMA and the 26-day EMA. The moving averages are trending horizontally indicating the price is in a range bound move. The crypto’s price is below the moving averages indicating that price may likely fall.

However, if the price does fall it will depreciate to the previous low of $7.00 price level. From the Fibonacci tool, the coin has reached the downtrend zone of 0.618 Fib retracement level. The previous trend has already been reversed. Meanwhile, the price of Zcoin is in the oversold region of the daily stochastic but below the 40% range. This indicates that price is in the bearish momentum and a sell signal.

XZC/USD Short-term Trend: Bearish

On the 1-hour chart, the XZC price was in a bearish trend. The 12-day EMA and the 26-day EMA were sloping southward indicating that price is falling. The crypto’s price is below the moving averages suggesting that price may fall.

The market was on a downward correction to a low at $10 price level. Meanwhile, the price of Zcoin is in the overbought region of the daily stochastic but below the 80% range. This indicates that price is in the bearish momentum and a sell signal.

The views and opinions expressed here do not reflect that of and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Azeez Mustapha

Bitfinex Makes Good on Tether Loan By Repaying $100 Million of $700 Million Loan from USDT


Bitfinex, a prominent crypto exchange, has recently repaid $100 million USD from the $700 million loan that the company had with its sister company Tether, a stablecoin operator.

According to the announcement, the payment was made via a wire transfer to the banking account of the other company. The payment was expected to be made later this year, but the company decided to go ahead and do it this week. Also, all interest accrued under the loan was also paid up until June 30.

In case you are not familiar with this very divisive loan, Bitfinex was facing a hard time in the first half of 2019 when one of its payment processors did not pay it. Crypto Capital, the payment processor, had its funds seized by the authorities because it was linked to illegal activities.

In order to continue its activities, the company decided to loan the money from Tether, which shares the same owners of Bitfinex. The trouble started when the New York Attorney General complained that the $700 million USD that was loaned to pay for the $850 million hole caused by Crypto Capital not paying.

The funds that were the basis of the stable price of Tether (USDT), should not be used for loans, according to the New York Attorney General, and this caused controversy and the start of a legal battle.

While the two companies share owners, they are distinct entities and Tether is supposed to be backed 1-for-1 with the USD. By lending the money, some of the value of the token was actually backed by debt, not fiat. Curiously, this did not affect the price of the tokens at all. They still continued to trade at normal prices even after the controversy.

Right now, the battle between the New York Attorney Office and IFinex, the holding company that manages both Bitfinex and Tether, continues. The company is being accused of covering up the losses, but it has filed a motion to dismiss the accusation, affirming that the attorney office is out of its jurisdiction and lacks the data to continue its claims.

This month, the legal battle will reach its next chapter. The NYAG office has until July 8 to file its opposition with the court and IFinex has until July 22. At the end of the month, on July 29, both companies will face each other in court again.

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Author: Gabriel Machado