Bitcoin Decoupling from The Stock Market is Here as BTC Eats Up Altcoin and DeFi Market

Bitcoin 2, everything else 0.

This is the tally after Bitcoin continues to move up following yesterday’s jump above $11,800.

Today, the leading cryptocurrency actually hit $12,000 on Bitfinex, last seen on Sept. 1st.

Since yesterday, BTC/USD has jumped over 5% on the back of $1.7 billion in real trading volume.

Interestingly, altcoins are not following this move up; as a matter of fact, they are recording losses, which means money is flowing out of the altcoins and into Bitcoin.

“Bitcoin about to consume the entire DeFi market and all the alts in the greatest consolidation crypto has/will ever see,” noted analyst Mati Greenspan.

Among the top cryptos, Chainlink is down the most, 5.43%; however, according to IntoTheBlock data, the number of LINK holders keeps on growing to hit a new record of 249.55k.

Ether is also down about 3% to just under $373.

“Eth is really lagging now but I think this recent move was probs some derivs bears tryna get out of their underwater btc shorts by nuking alts lol, waiting for eth derivs to give me more market info but honestly might actually punt an eth long soon,” said trader Loomdart.

DeFi tokens are experiencing even more severe losses between 5% to 15%, and in the past week, it has been up to 35%.

Besides altcoins, everything else is also not feeling as good or as bullish as BTC.

The equity market started with greens but soon dropped with S&P 500 trading at 3,448. The same is the case for tech-heavy stocks Nasdaq at 11,532 and Dow Jones Industrial Average at 28,370.

Unlike yesterday, today, gold is making some moves as it rises to $1,910. The USD Index actually went under 93 and is currently trading around this level.

“The decoupling is upon us. Makes sense that BTC will continue to be correlated in short timeframe trading; but not in the longer timeframes. BTC is a safehaven, just that “risk-on” (meaning it’s very new) is skewing this fact,” said on-chain analyst Willy Woo.

Meanwhile, for Bitcoin, the ongoing spike in the price is resulting in millions in liquidations, with the largest single liquidation order happening on Bitmex-BTC value $5.57 million.

The good thing for the Bitcoin market is that the BTC exchange balance continues to fall ever since March 15th. During this period, the net outflow has been 450,000 BTC, and the total exchange balance has reached the lowest point since November 2018.

On the other hand, the number of addresses holding at least $1 worth of BTC topped 24 million for the first time last week.

Additionally, institutional sized traders on CME, although don’t make up much of the open interest (OI), were only holding long positions last week. Overall, CME futures OI rose sharply yesterday, adding nearly 1,500 contracts on the October expiry.

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Author: AnTy

Reserve Bank of Australia Is ‘Closely Watching’ CBDC Research, Despite A ‘No Rush’ Attitude

Barely a month after saying it sees no rush in launching a central bank digital currency (CBDC), the Reserve Bank of Australia (RBA) has confirmed that it is still following closely on the developments in this space. RBA’s head of policy payments, Tony Richards, said that the monetary authority is also considering going the ‘wholesale’ way where the CDBC would be limited to particular financial institutions.

Richards spoke at a Blockchain, Crypto, and FinTech conference held at the University of Western Australia. He highlighted some of the considerations that RBA will focus on as it continues to deliberate on the CBDC proposition,

“We will be continuing to consider the case for a CBDC, including how it might be designed, the potential benefits and policy implications, and the conditions in which significant demand for a CBDC might emerge.”

While RBA’s mid-September report was skeptical about issuing a CBDC, Richards noted that a public policy case for its issuance is yet to be made. He went on to add that the bank is currently looking at the design options that it could take if it eventually launches a CBDC. Unlike Bitcoin, whose foundation is on the blockchain, Richards anticipates that an Aussie CBDC will take the form of a centralized & permissioned digital ledger.

Other consideration factors include whether to develop the CBDC as a token-based or account-based ecosystem. The RBA is also looking at the retail case as part of its ongoing research on the policy and technological effects of launching a CBDC. Richards confirmed that they would continue to follow closely what CBDC advanced jurisdictions are doing,

“If some jurisdictions do move towards full implementations of CBDC, there will be many central banks like us who will be closely watching.”

With the current CBDC developments, it appears that these digital assets may soon become part of legal backed tenders in global circulation. The Bank of International Settlements (BIS) recently released a CBDC report in collaboration with seven major central banks. Russia has also issued a consultative paper on CBDCs, while Japan’s central bank is set to pilot its digital yen in 2021.

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Author: Edwin Munyui

Bitcoin On The Way to $12,000 as US Dollar Moves Down

After ending the market on a high note last week, this new week is seeing another good start.

What started as a not so pleasant Monday with Bitcoin losing about $200 turned out to be a green one with the digital asset going for $11,550.

“Some technical overhead resistance right now and a CME gap below at 11.1k, pretty low risk in buying the dip if it comes,” says on-chain analyst Willy Woo.

The price now has resistance coming at $13,000-$14,000 with trader Josh Rager seeing $12k real soon.

“Price is back up in previous range prior to breakdown, and personally, I don’t see why we can’t see $12k this week,” said Rager.

Square’s $50 million Bitcoin investment caused the price increase to prevent institutional investors from placing long positions as of yet.

While asset manager accounts long positions on CME went up from 523 to 703, Leveraged funds and other reportable positions accounts didn’t show a direction adjustment indicating a conservative approach, as per CME’s latest report, as of Oct. 6.

Open interest also rebounded from 7,324 to 7,511, after a two week contraction period.

The Longest Run

The good thing for bitcoin is despite a slew of regulatory moves like the UK FCA banning the sale of crypto derivatives and the DOJ issuing a crypto enforcement framework, Bitcoin held to $10,000 strong.

As a matter of fact, it has now been a total of 90 days, so far in 2020 that bitcoin has been above $10k compared to 86 in 2019, 53 in 2018, and 34 in 2017.

According to Fundstrat Global Advisors LLC, regulatory clarity is good for crypto as it would clean up “bad actors.” “Despite select smaller pockets of risk,” they see it as a positive for the overall market, adding, “we believe the prevailing bull market trend is intact.”

But they do see DeFi “coming under pressure” for lack of KYC and AML protocols along with offshore quasi-equity exchange tokens and further risks with “crypto tokens exclusively listed on offshore exchanges where stricter U.S. investor prohibitions could limit liquidity and demand.”

Derisk Mode Still on

Unlike BTC, gold is seeing no such spike, trading at $1,924, the same as S&P 500 at just above 3,500. The US Dollar, however, has declined to 93, which is in strong negative correction to bitcoin.

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The general market remains in de-risking mode ahead of the US Presidential election on Nov. 3rd.

However, investors are growing more hopeful of additional economic stimulus as President Donald Trump said that he wants to see a bigger stimulus package than either Democrats or Republicans were offering.

While Trump made a reversal from earlier last week’s threat to halt negotiations, Senate Majority leader Mitch McConnell expressed doubt that Congress would pass a package before the election.

According to Goldman’s chief equity strategist David Kostin “new information on the election, vaccines, and upcoming 3Q earnings represent substantial cross-currents for equities during the next two months.”

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Author: AnTy

YFI’s Andre Cronje Re-Confirms He’s Not Quitting DeFi and ‘Still Building’

Popular Yearn.Finance creator Andre Cronje came on Twitter after a 10-day hiatus to deny the reports of him leaving the project.

“Still here. Still building. Nothing has changed. Anyone that says otherwise fuck off. I’m just done tweeting and being on social media,” tweeted Cronje.

The clarification came after CoinDesk reported that Cronje is quitting DeFi, and other employees have taken over the project.

Before this, there have been rumors floating in the market about him quitting the project, with some team members saying that is not the case.

“I’m not building anything at all anymore,” he reportedly told the publication earlier this month.

“I do it because I’m passionate, but if people are going to use my test environments, then lose money, and then hold me liable, it means there is 0 upside and only risk for me.”

This has been concerning Cronje’s other product Eminence.Finance rug pulling $16 million.

This isn’t the first time such a thing has happened. In August, Cronje had told another publication that he is quitting DeFi, after having similar thoughts in February this year, only to change the course as he said he won’t leave the space and will continue to build.

On Friday, the price of YFI found its bottom just under $12,300 to rally above $19,500, but today, the price went down to $16,880 before making its way above $17,300 to only fall back down to the current price of $16,630.

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Author: AnTy

Solana Targets Ethereum’s Scalability Issue by Introducing a Bridge called Wormhole

After launching DEX Serum, Solana Blockchain is now going for the heart of the problem.

Today, Wormhole – a secure, trustless bridge connecting Ethereum to Solana is announced.

With the DeFi frenzy, up until a few weeks ago, pushing the activity on Ethereum to new highs — fees to skyrocket and the network to clog — the market has been in serious need for a solution. As the team mentions in its official statement, speed and cost being the hurdle for adoption –

“the big leap that tips the scale towards Web3 will be propelled by scalability, and that’s exactly what Solana is solving.”

To cater to the significant growth in DeFi applications and to make sure the flow of “greater multiples of new capital” is not stopped by congestion and high gas fees as they keep money on the sidelines, Solana has joined hands with Certus One. Stating,

“Wormhole enables DeFi platforms to leverage Solana for high speed, low-cost transactions, while still allowing for settlement on another base chain.”

This bidirectional cross-chain bridge on Solana, which is just the first of many, connects ETH and ERC 20 tokens to SPL tokens, Solana token standard. When it comes out in a month, DeFi projects can move tokenized assets across blockchains running into constant issues.

Wormhole uses decentralIzed cross-chain oracles called guardians, operated by a set of node operators including Solana validators and other stakeholders who certify token lockups and burns on one chain to mint new tokens on others.

And with this, Solana Foundation is hosting a virtual hackathon, starting October 28, for the community to get together, use Wormhole and bring ideas to create highly scalable and cost-efficient web3 applications.

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Author: AnTy

Is FTX CEO Accelerating the Deep DeFi Rout?

After going through a deep pullback in the past month, most of the DeFi tokens struggle to let go of the losses.

Although the news of Square buying $50,000,000 worth of BTC has sent the market into a tisy, not all coins are moving out of the red. Coins like UNI (+22%), LRC (+13.5%), and KNC (+5%) are recording some gains. DeFi darling YFI has manged to dig itself out of the deep red into the green (+5%).

Much like the price, the total value locked (TVL) in the DeFi Sector has declined by almost 10% to $10.12 billion, as per DeFi Pulse.

Popular DEX Uniswap, however, is an exception to this, whose TVL has jumped 30% in a fortnight.

Keep on Dumping!

As we reported, numerous popular DeFi tokens have lost 80% to 90% of their value since hitting all-time highs during the period of mid-August and the beginning of September.

But still, they continue to go down more and more, which could be seen as an opportunity for the project enthusiasts to buy these tokens at low prices which might have missed them the first time around.

In the past 7 days, more losses have been incurred by the DeFi sector, with YFII leading with almost -46% drop. Other notable losers include SUSHI (-41%), CRV (-37%), YFI (-29%), SWRV (-33%), bzrx (-37%), UNI (-24%), UMA (-25%), LEND (-20%), and SNX (-17%).

As another round of losses hit DeFi tokens, Twitterati points to derivatives exchange FTX CEO Sam Bankman-Fried shorting YFI, CRV, and UNI.

Some market participants speculate that Bankman-Fried might be behind the latest dose of losses, especially for YFI, CRV, and UNI, which he has been dumping on leading spot exchange Binance.

It is worth noting that Bankman-Fried is also the CEO of the quantitative cryptocurrency trading firm Alameda Research.

The Catalyst…

While some aren’t liking it, others said Bankman-Fried is simply shorting a few cryptos, which means he believes the coin will decline in value.

Jason Choi of crypto fund The Spartan Group found it all absurd, stating, “Always find it amusing that the idea of shorting is deemed evil on crypto twitter.”

And if you think Bankman-Fried will short his FTT or SRM, that’s a big fat no, because he ain’t short on his creation, of course, rather he is “long as fuck.”

Trader Moon Overlord also pointed out the obvious nature of the situation, which is “a person apart of a trading firm does a trade.” Back in late August, when FTX acquired the crypto portfolio tracker Blockfolio, the trader said, “FTX didn’t pay for a portfolio tracker they could build in 5 minutes they paid $150M for your data and bag info.”

The market also likened Sam’s behavior with billionaire investor George Soros acting as a catalyst in collapsing the British pound in 1992 by shorting it.

In the process, Soros made an estimated $1 billion profit. While that incident was viewed as “a permanent black mark on the UK as a center of financial prestige,” following the event, “Britain entered a period of growth and prosperity,” noted Sahil Bloom, VP at Altamont Capital Partners.

If not Soros, someone else would have used the opportunity to their advantage, and he “merely accelerated” the process. The same could be seen in the DeFi market, which may finally find its bottom and embark on a new bull run.

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Author: AnTy

Contour Trade Finance Platform Backed by HSBC Launches; Reducing LC Processing Time by 90%

Contour, a blockchain-based trade finance platform, has gone live after a successful beta testing phase. The trade finance platform aims to optimize the traditional financial system by digitizing them and putting them on a blockchain. The trade finance platform is backed by 8 major banks, including HSBC, Citi, ING, Bangkok Bank, BNP Paribas, CTBC, Standard Chartered, and SEB.

The platform was launched back in 2017 as Voltron built on top of the R3s Corda Platform. The platform promise to ease up the slow bureaucratic process for several institutions and companies via a global blockchain network. HSBC tweeted about the official launch of the platform and said,

“We’re excited to announce the world’s first global, decentralized, digital trade finance platform using #Blockchain technology has gone live this week to coincide with #Sibos2020:”

However, it is also important to note that the network is a private blockchain that would be exclusively available for partner companies for data sharing. Thus, even though HSBC’s tweet calls the platform a decentralized network, it is not centralized in the traditional sense.

How Would Contour Optimize Traditional Trade Finance?

After its launch, the first goal for Contour would be to optimize the letter of credit (LC) process among parties, which, on average, takes 10 days to process currently. With Contour’s blockchain system, the time consumed for processing would be reduced by 1/10th, taking around 24 hours.

Contour would develop a rulebook and membership agreement system, which would allow for the reduction of processing time by 90%.

Carl Wegner, the CEO of the platform, explained how the rulebook would help in optimizing the process and said,

“The rulebook is really important. Rather than having to string together four or five different legal agreements between the buyer, seller, buyer’s banks, and seller’s banks, which was very onerous, we now have a rulebook which makes it very easy for everybody to sign up and know what their roles and responsibilities are.”

With the official launch of the platform, all the existing members would migrate to the main net. However, it is unclear how many other members are on the platform apart from the official partners.

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Author: James W

Google Cloud Partners With Block.one to Become an EOS Block Producer

  • Google Cloud joins the EOS blockchain network as a block producer (BP) after a successful vote from current EOS token holders.
  • The search engine subsidiary becomes the first high-level Silicon Valley firm to join the EOS BP network.

In an official statement online, Google confirmed they would join the EOS community and participate as one of the blockchain’s 21 block producers. EOS, built by the Block.one development team, is a blockchain platform that allows 21 block producers (BP) who verify the transactions. These BP are selected by the EOS token holders, giving a different feel to Bitcoin’s or Ethereum’s mining mechanism.

Google Cloud joins crypto heavyweights Binance, OKEX, and Huobi crypto exchanges as top block producers with the rest run by the EOS community. The statement from Google reads,

“Google Cloud has partnered with Block.one and will become a block producer candidate to provide infrastructure in support of the EOS network, which is built on the EOSIO blockchain protocol published by Block.one.”

Block.one aims to leverage Google Cloud’s low latency and global connectivity to provide a stable, convenient, and reliable EOS blockchain platform.

Allen Day, Developer Advocate at Google Cloud, in his welcome statement said,

“As organizations begin to incorporate distributed ledger technology into their infrastructures, we are committed to ensuring that the information on public blockchains are securely stored, reliably available, and can be accessed in meaningful ways.”

As EOS grows, there is an increasing need for reliable BP in the system, and Google is expected to provide the much-needed “highly provisioned, low-latency infrastructure to Block.one,” Dan Larimer, founder of EOS, said.

“Google Cloud’s confidential computing infrastructure will enhance the security, scalability, and decentralization of blockchain technology.”

The Google Cloud block producing team will be vetted and voted for by the current EOS token holders on what roles it takes on the network.

The news of Google Cloud joining the EOS blockchain BP team set the native EOSIO token to surge 17% in an hour to touch a high of $2.92. The token currently trades at $2.63, representing a 5% growth in the past 24 hours.

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Author: Lujan Odera

150,000 Bitcoin Coming Back to Mt. Gox Creditors in 10 Days; Will BTC Price Drop?

After being postponed several times, the hacked Mt. Gox Bitcoin will finally be sent to the rightful owners of those BTC in 10 days’ time, i.e., October 15, 2020.

The last date of the rehabilitation plan was July, set in March this year by the Tokyo District Court.

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The Japan-based Bitcoin exchange was launched in 2010, which was managing 70% of all bitcoin transactions worldwide. Former Ripple CTO Jed McCaleb was the one behind this exchange but sold it to Mark Karpelés just after three months.

Between 2011 and 2013, the exchange reported the loss of around 840k BTC, about 6% of all bitcoin in existence at the time. The initial loss of funds sent the price of one Bitcoin on the exchange to just one cent. At the time of writing, BTC/USD has been trading at $10,700.

The company announced bankruptcy, and although 650,000 BTC were never recovered, 200,000 BTC were in fact recovered.

At one point, Mt. Gox was investigated by the US Department of Homeland, and a former business partner sued to claim a breach of contract.

Mt. Gox creditors have been empty-handed for a long time due to the ongoing bankruptcy process until a Japanese court finally put a rest to it and put it under rehabilitation law.

Volatility Coming for Bitcoin?

After going through various deadline postponements, the day could finally be here. This has rattled some of the market participants who believe this could have a “catastrophic impact” on the price of BTC. According to one such participant,

“If 150,000 BTC is sold on the market, it would cause a brutal drop, and fear would quickly spread across the markets.” This is because creditors will take the opportunity to take profits on the “over 2,600% ROI from 2014.”

However, it is a very real possibility that bitcoin won’t react at all. In 2020, we saw MicroStrategy bring about $425 million worth of BTC that did not affect whatsoever on the price of the leading digital asset.

These past couple of weeks, we also saw big news like the $281 million KuCoin hack, CFTC bringing criminal charges on popular crypto derivatives exchange BitMEX, and the US President Donald Trump testing coronavirus postie having a ‘zilch” effect on the price of BTC.

Bitcoin has become almost boring for many traders, with its 180-day volatility falling to a two-year low. The digital asset is holding strong to its $10k mark; as a matter of fact, Bitcoin’s winning streak of sustaining above $10,000 has made a new high of 70 days. As per data source IntoTheBlock,

“The IOMAP shows that over 1.45 million BTC was purchased by 1.76 million addresses between $10,427 and $10,736.81. This is expected to (and has been) an area of strong support.”

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Author: AnTy

Ethereum 2.0 Developers to Launch Zinken Testnet After Spadina ‘Dress Rehearsal’ Fails

After five years of waiting for Ethereum 2.0, developers may have to wait longer for its launch after a failed launch of the Spadina Network. The ETH 2.0 developers plan a third testnet, Zinken, which is expected to solve bugs and fix problems found in the previous two testnets – Spadina and Medalla.

ETH 2.0 is expected to introduce sharding protocols to increase Ethereum’s scalability and reduce blockchain gas costs. The main upgrade on ETH 2.0, however, is the proof-of-stake (PoS) consensus mechanism that is expected to replace the energy-intensive proof-of-work (PoW) currently available.

ETH 2.0 Phase 0, or the Beacon Chain, is expected to launch later in the year with the full implementation of the upgrade set to take over two years. According to original plans, Spadina was set to be one of the final testnets, or a “dress rehearsal, before the launch of Phase 0, but bugs and finality problems were discovered.”

One ETH 2.0 developer, Danny Ryan, wrote on Twitter that despite ETH 2.0 clients becoming more robust, the high latency times for finality raised several issues on the Spadina network, including “cli options, testnet config, bootnodes, and genesis calculation bugs.” Ryan further wrote,

“Even though we expect moderately low participation on a short-lived non-incentivized testnet, small errors in the client release process greatly exacerbated this problem, resulting in ~1/3 participation in the first few epochs.”

To respond to the issues stated above, the developers will run the Zinken testnet as a “dress rehearsal.”

The bugs, however, are not critical, Prysmatic Labs developer, Raul Jordan, stated. Comparing the failures in Spadina to Medalla’s earlier failures, Jordan believes the failures will be a “learning experience” for ETH 2.0 developers.

Also Read: Ethereum Miner Fees Beats August Record with a 47% Increase in September

Ryan confirmed the Zinken testnet dress rehearsal would be launched in the coming two weeks.

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Author: Lujan Odera