XRP Leading the Top Cryptocurrencies, Altcoins Jump over 10% As The Market Turns Green

  • The cryptocurrency market has turned green today.

Yesterday, Bitcoin dropped below $8,000 to $7,914 level which Jeff Dorma, the chief investment officer of asset manager Arca said has been

“less about the magnitude and more about the correlation and direction.”

But today, with 24 hours gains of 1.52%, the leading cryptocurrency has gone back above $8k, trading at $8,112, as per Coincodex.

Though low, trading volume has also risen to $266 million, this Dorman said means

“shorts are incentivized to keep pushing prices lower until they hit resistance.”

Commentators, however, are expecting BTC to drop to $6,000 level.

Analyst Benjamin Blunts also notes,

“GBTC already broke down on daily yet spot BTC hasn’t. For the last few months, has GBTC also been leading spot price by about 24 hours or so. This doesn’t look good for btc tbh.”

BTC dominance meanwhile, remains below 70% at 68.31% as altcoins record a higher jump than that of Bitcoin.

According to Joshua Frank, co-founder of TheTIE.io, a cryptocurrency analytics platform, since Bitcoin’s bull run this summer,

“a large decline in retail interest in the cryptocurrency,”

has been seen.

Altcoins, however, are enjoying the gains currently.

Among the top cryptocurrencies, XRP is the winner. The digital asset today touched $0.30, hitting a 7-day high after rising almost 7% in the past 24 hours.

XRP is followed by Stellar (6.20%) and Binance Coin (5.21%).

However, the top mover of today’s market is Basic Attention Token which is up by 11.91, trading at $59.19.

Other coins registering a surge of more than 10% are Monero (10.43%), NEM (10.42%), Dogecoin (10.60%), and Siacoin (11.20%).

While Bitcoin has been trading sideways this month, altcoins like XRP and Link recorded gains. Though a few coins like BNB, Matic, and REN among others are up a whopping more than 400 percent, the alt season hasn’t started yet. But with the positive momentum seen in the last few days, we just might see the top altcoins and a few other selective ones move closer to their all-time highs.

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Author: AnTy

$77 Million Worth of Bitcoin Locked in Sidechains, Unavailable for Use

Out of the total circulation supply of around 18 million Bitcoin, around 9661 Bitcoins are stuck in different sidechains, which are not lost but cannot be used either. These bitcoins are stuck in primarily 3 major side chains that include Liquid, Binance Chain and Wrapped Bitcoin (WBTC) sidechains.

Side Chains are just like sister chains to the main network which are built to perform specific tasks. Their primary use is to hold the transaction amount when the user sends the fund to or from the sidechains.

As per the latest data from block explorers, Liquid network contains the smallest amount of Bitcoin stuck in sidechains with 89 BTC, while WBTC contain 571 BTC and Binance Chain has the highest number of Bitcoin stuck with 9001 BTC.

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Author: Hank Klinger

New Bitcoin ATM Location Pops Up in Miami International Airport by Bitstop

Bitstop has recently installed a Bitcoin (BTC) ATM machine on the Miami International Airport. This marks an important milestone as the airport has never had such a machine before, despite how common they are found across the U.S.

According to the company, this was a strategic location to set up a BTC ATM. This is one of the busiest airports in the whole country and it has a lot of international traffic, meaning that people may need to buy Bitcoin, as not everybody wants to buy fiat currency to use somewhere else.

The airport is also known as the largest airport between the US and Latin America, which makes it very important for business in general.

Doug Carrillo, the co-founder and current Chief Strategy Officer at Bitstop has talked about the situation, the new ATM will be very useful for travelers. A lot of people are choosing to use Bitcoin instead of fiat currency these days, especially because more places are accepting it and they are very convenient when traveling abroad.

This is set to be the 130th ATM that Bitstop installed in the United States. The goal of the company is to have at least 500 Bitcoin ATMs in the country before the end of 2020. When we look at the numbers worldwide, there are over 5,750 Bitcoin ATM machines all over the world. The number is set to more than double within the next few years.

Next time you are at the Miami Airport and want to check it out, or if you are there now, the new machine has been installed in Concourse G right next to Gate 16.

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Author: Hank Klinger

Next Bitcoin Halving Is 211 Days Away; With Smaller Miners Pushed Out How Will BTC Price React?

Bitcoin is about to halve its rewards soon and the crypto community is speculating about what will happen. After the two first halvings, which occurred in 2012 and 2016, another one is being expected for 2020. Both times that the rewards were halved before marked the beginning of a bull run that took the network to new highs.

Last week, several miners reunited at the World Digital Mining Summit, which was organized by Bitmain in Frankfurt. During the event, the co-founder of Bitmain, Jihan Wu, seemed pessimistic about the halving.

Wu pointed to Litecoin, which had it’s rewards halved some weeks ago. The price of the asset went down, not up. Litecoin’s price went from $31 to $135 USD during the year and then fell again to $57 USD after the halving. Could something similar happen to Bitcoin?

He also affirmed that people didn’t know what to expect during the first and second halving, but now people are betting that the price will go up. If it does not, there is a big possibility that the market sentiment may turn sour.

Another reason why this might be bad news, is that several ASIC miners will not be profitable to use anymore. The Antminer S9, for instance, was a very popular model, but it is barely able to make a profit now, so after the halving, the situation might become worse.

Marco Streng, the CEO of Genesis Mining, affirmed that only the strongest miners will remain. Retail miners are very likely to be pushed outside of the market and only the major mining companies will still be competitive unless prices go up as expected.

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Author: Gabriel Machado

Grayscale’s Crypto Assets Inflows Increased By $250 Million In Q3; Showing Strong Demand

Grayscale Bitcoin Trust released its Q3 2019 report earlier on Tuesday, October 15, 2019 showing increased interest in institutional investment in the crypto industry.

The “Digital Asset Investment Report Q3 2019” states Grayscale holds a total of $2.1 billion USD in crypto assets under management. Grayscale enjoyed a boost in AUM value despite the price of Bitcoin plummeting from $12,000 USD to $8,100 USD during the period.

‘Over $75 million USD inflows in a day’

According to the report, the crypto asset management firm’s AUM has increased by $382 million USD since the start of the year.

The Grayscale Bitcoin Trust (GBTC) product contributed to over 60% of the total inflows averaging $7.1 million USD weekly. The weekly average inflows of the rest of cryptocurrencies including Ethereum, ZCash and Ethereum Classic stands at $2.7 million USD.

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Grayscale’s AUM grew to $412 million USD in the past one year as institutional investment grows. In a statement on the massive AUM growth during the third quarter, managing director, Michael Sonnenshein, said,

“I actually think that we had a day where we raised over $75 million in a single day — which was the largest inflow we ever had in a single day.”

GBTC investments boss inflows in Q3 2019

In Q3 2019, the company witnessed huge inflows of crypto assets following a highly successful #DropGold campaign, which lured U.S investors to switch from the shiny precious metal to digital gold.

According to the report, an average of $19.6 million USD entered Grayscale’s coffers, totaling $254.9 million USD in the three months. GBTC investments remained popular through the year raising $13.2 million during Q3 2019, representing 67% of the total investments during the quarter.

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Excluding the flagship GBTC product, the company’s alternative crypto assets grew by $107 million USD during the quarter. On Monday, the Financial Industry Regulatory Authority (FINRA) approved the trading of Grayscale Digital Large Cap Fund (GDLCF) on OTC markets in the U.S.

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Institutional investment is growing

Over 84% of investment in Q3 came from institutional investors including legacy finance and crypto related hedge funds. However, a large number of investors are not native to the crypto field as Sonnenshein explained,

“Most of our institutional investors are actually not crypto hedge fund. It really runs the gamut — we have tons of global macros funds who maybe look at digital assets as a way to be short fiat money or thinking about all the economic and political turmoil going on globally.”

Images sourced from Grayscale Digital Asset Investment report Q3 2019: https://grayscale.co/insights/grayscale-q3-2019-digital-asset-investment-report/

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Author: Lujan Odera

Layer1 Raises $50M From Investors Like PayPal’s Co-Founder, To Build Wind Powered Bitcoin Miners

Bitcoin (BTC) mining industry is a lucrative and profitable industry that is witnessing a swelling growth in the number of companies entering the field. The U.S still lags behind in the industry as Chinese mining firms and chip makers hold 60% of the global BTC mining business – compared to U.S’s 5% capture of the mining business.

However, one startup –backed by Digital Currency Group (DCG) and raised $50 million USD in a Series A funding at a $200 million USD valuation – is looking to triple U.S market control in BTC mining.

Layer 1 raises $50 million in series A funding

Layer 1 raised $50 million in a series A funding led by DCG and top investors including Peter Thiel, co-founder of PayPal, Shasta Ventures, and other respected crypto investors. The company will set its operations in Texas and use renewable windmill generated electricity to mine Bitcoins. Once the company begins operation in 2020, it is set to become the largest mining firm at scale in the country.

According to the co-founder of Layer 1, Alexander Liegl, the firm is set to rival the domineering Chinese companies in the BTC mining market by minimizing costs of electricity and optimizing efficiency of the mining chips. Alexander said,

“We expect our chips to be competitive for at least eight years now…you want to have your own chips in hand. We also have our own electricity substations: effectively that’s as close you can get to own your own power plant.”

A lukewarm situation in Texas

Texas ranks as one of the most crypto mining friendly states in the U.S due to its cheap energy sources. According to the Department of Energy, 15 percent of the total electricity consumed in the state comes from wind with the prices among the lowest across the globe. However, the high temperatures in the region make it almost impossible to effectively run a mine in the state.

Layer 1 is employing a highly technical cooling system on the miners to prevent burning up or malfunction. The development team of company are working on a system that employs a liquid-cooling component to lower the mining system’s temperatures.

All in all, Liegl believes the San Francisco based company will heavily benefit from the cheapest rates of electricity to offset the heat problem. He further spoke to Coindesk on a phone call saying,

“I love the place. It’s so private-market-friendly. Bitcoin mining is pretty compelling to people out there because it’s pretty analogous to how oil and gas works.”

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Author: Lujan Odera

Bitcoin Storage Costs On The Rise, Now At 2.1% Annually Plus Transaction Fees

Bitcoin storage costs have been increasing steadily in the last few years and at the moment it is estimated to be 2.1% per year for Bitcoin, reported BTC developer Tamas Blummer.

According to an independent Bitcoin developer and researcher, Tamas Blummer, the costs of storing Bitcoin is mostly overlooked. In a post published by Medium, Blummer revealed that the cost, mostly referred to as carry for other assets, currently stands at 2.1% per year.

Blummer explained that the most common cost for Bitcoin storage was the expenses involved in moving the king coin in and out of the wallets. He added that these costs are paid by individuals moving the coins and are proportional to the size of the byte of the transaction involved rather than the amount being moved.

As per the post, the total amount of Bitcoin paid in as transaction fees was estimated to be about 50,000 in 2016, however, the fees has increased to more than 200,000 BTC this year.

Blummer explained that there are other factors driving up the costs. One of them is capital inflow. He explained that newly mined coins enhance the market supply and subsequently lower the value. During a bull market, fiat currency enters the crypto markets while during the bear market it leaves the market.

Additionally, Blummer explained that mining costs also has an effect on price movements. This is because miners are always looking forward to sell more of their coins to balance their expenses. In this case, the profit levels will depend on the mining difficulty. When market prices are unable to sustain production, the mining process will go down and reduce competition. In such scenarios only the miners with the best equipment and cheap sources of power are able to survive.

To arrive at the 2.1% estimate, Blummer took the price of BTC to be $8400 and the cost of mining to be $5000, with 12.5 BTC per block. This makes a profit of $9 million daily going by the current market rates. He then divided the figure by the current Bitcoin market cap which is $150 billion which comes to 2.19% storage figure.

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Author: Joseph Kibe

Indexica Reports: Any Factor Can Make Bitcoin Move Just Like Gold or a G-10 Currency

  • In 2019, Bitcoin went as high as $13,900 only to lose about 40 percent of its value. This drop in Bitcoin’s price has been attributed to a number of factors.

Intercontinental Exchange launching the physically delivered Bitcoin futures platform Bakkt’s disappointing performance, recording a meager 72 BTC futures contracts in the first 24 hours, has been seen as the factor that triggered the price’s crash.

While some pointed to the unwinding of long positions as the driving factor behind BTC price nosediving, others pointed to the technical bearish signals that triggered the leading cryptocurrency to take a breather after surging more than 200% in the first half of 2019.

But all these factors might not be what has been behind the 40% drop.

According to Indexica, a Los-Angeles based alternate data provider, this fall has less to do with Bitcoin itself and more to do with the growing cryptocurrency ecosystem.

As per their index built on data from Aug.1 through Oct. 1, the movement in the price of the flagship cryptocurrency is driven by new blockchain technologies and competing for digital currencies.

Actually, the talk around Mastercard’s partnership with R3 to develop a new blockchain payment system, the study stated has been a strong driver of recent returns.

“Now that Bitcoin is a big kid, anything can make it move, just like anything can make gold or a G-10 currency move,”

Zak Selbert, chief executive officer at Indexica told Bloomberg.

“Bitcoin is part of the financial landscape in a very intertwined and mature way.”

Selbert said this sensitivity of Bitcoin to the development of competitors is another sign of a coming of age.

Moreover, Bitcoin’s strongest predictive measure, Indexica found was its “quoteability” that showed the digital asset was most often talked about in concurrence of traditional currencies.

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Author: AnTy

Ex-Bitmain CEO Jihan Wu Goes Anti-Moon, Thinks Bitcoin Halving Won’t Lead To A Bull Market

Right now Bitcoin Halving is a big topic in the cryptocurrency world. The Bitcoin halving occurs at periodic intervals based on Bitcoin etiquette. The term Bitcoin Halving refers to the block rewards, which the miners get if they find a valid block.

The point where new coins are created means the money supply rises by a projected amount, but this does not inevitably rise in inflation. If the supply of money grows at the same rate that the number of people utilizing it rises, rates remain constant.

If it does not grow as fast as demands, there will be deflation and early holders of money will see its value rise. Coins have to get originally allocated somehow, and a fixed rate looks like the most suitable formula. The 2020 bitcoin mining halving is set to make the block rewards go from 12.5 BTC to 6.25 BTC and will user in a whole new era of bitcoin as over 85% of the bitcoin will be in circulation at that point. In 2012 it went from 50 BTC to 25 BTC, then in 2016 dropped from 25 down to 12.5 BTC where we are at today. This ‘phenoma’ happens every 210,000 blocks and there are 1,800 blocks per day (roughly 144 ten minute increments in a 24 hour time period). The new mining rewards phase is also making new mining equipment upgrade too which will have an impact on the greater ASIC ecosystem.

The former CEO of Bitmain thinks that now is a good time to invest in crypto mining but bitcoin halving might not trigger a bull run.

“There are many uncertainties, but now is a good time to invest in crypto mining. If I were a miner, I would not stop mining but continue to invest in mining equipment. We are currently in a short-term correction of price. Having a long-term perspective is significant. If bitcoin’s price remains unchanged after halving, the efficiency of existing equipment must be improved to balance efficiency and computing power.”

It is important to note that during the last Halvening, the Bitcoin price didn’t really fluctuate. Although, some blame the 50 percent price rise (from $435 to $645) in the three months before the reward cut, with small risk of establishing causation. Apart from that, the network was moderately routine. The overall hash rate stayed the equivalent.

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Author: Sritanshu Sinha

Banks are Feeling Threatened of Bitcoin and for Good Reason, Tim Draper

  • A new opportunity for a new currency
  • Governments have to adapt to not control through currency

Venture capital investor and Bitcoin bull Tim Draper currently in an interview shared how currencies today are based on faith in the government. But Bitcoin is a currency that isn’t backed by the government rather frees us from that control.

These fiat currencies, he said started as a promise of gold but not a promise that the government will back you up.

But

“all of a sudden, we have a currency that is not tied to a government and not tied to a geographic territory,”

said Draper.

“That frees us because governments have always used that currency to control us,”

he added.

Governments control people by keeping control of their currency, but with Bitcoin, we can operate across borders much more easily and further move money all over the globe. The digital asset also reduces friction significantly.

A New Opportunity for a New Currency

Draper further pointed out the reason behind the banks being so big and rich, two and a half percent of every transaction that we do is picked by credit card companies and banks get the bulk of that.

But now that people use Bitcoin, this would go away and

“banks are feeling threatened and for good reason.”

Moreover, if you use bitcoin instead of dollars, the bank does not control your BTC. As such, there is a new opportunity for a new currency that is not just frictionless and transparent but also open, cross border, and a

“great store of value.”

According to Draper, Bitcoin is going to be faster and cheaper than the Visa network. However, currently, it is much lower than the credit card processing companies like Visa, and Mastercard at around 800,000 transactions per day.

But the network has also seen a huge amount of money being moved with just a small fraction of fee paid in the traditional payment system.

And Govt. has to Adapt to Not Control through Currency

“It’s a sea change,” said Draper adding, there is a new technology that is better, faster, and cheaper than anything else out there. “

“We are gonna move that way,”

said Draper which means, governments have to figure out how they are going to adapt to not controlling everybody through the currency.

Recently, Draper, who has been standing firm on his $250,000 price prediction for Bitcoin, said it is a conservative number for the leading cryptocurrency. He said $250k would mean BTC would have 5% of the market share of the currency world and that may be

“understating the power of bitcoin.”

Moreover, as it becomes easier for people to use the flagship cryptocurrency, they would make the decision that they like it better than fiat because

“they know that their fiat will depreciate in value,”

he said.

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Author: AnTy