Bitcoin Market in Backwardation Supports A ‘Cautious Tone’ for BTC Price Short Term

  • Bitcoin price certainly go down but wouldn’t be “surprising if they keep melting up”
  • June Bitcoin futures contracts on BitMEX trading as low as $6,665 while $6,725 on CME
  • A break below $5,000 zone will be particularly painful

The price of Bitcoin on spot exchanges is currently trading around $6,750 after sliding below $7,000 over the weekend. Some extremely bearish predictions are even calling for fresh lows.

However, the good thing is Bitcoin has found a “higher floor” and given that currently, the cash on exchanges is at all-time highs and sentiments are still near their all-time lows, and leverage at two-year lows, “it is VERY hard to short risk assets into a wall of cash right now, including Bitcoin. Prices can certainly go down, but it would not be surprising if they keep melting up,” said Jeff Dorman of Arca.

The stock market is also recording losses amidst the report of the largest drop of 8.7% on record going as far as 1967 in the US retail sales for March. This has been because of the majority of people staying home to slow the spread of coronavirus amidst the news of companies furloughing employees.

Treasury yield also fell to a 7-year low on the back of this data. The two-year-old hit the lowest level of 0.199% since July 2012.

The relief came in the form of stimulus checks that the government started sending late last week that Americans are largely spending on food and gas.

Lower prices in the future

This week, we started seeing the open interest on Bitcoin futures slowly rebounding.

However, bitcoin futures are in backwardation which means the price of an underlying asset currently is higher than prices trading in the futures market.

On CME, June 2020 contracts are trading at $6,725 while Bakkt’s June contracts are at $6,755.

Bitcoin perpetual swaps meanwhile are at a much lower price.

The June Bitcoin futures contracts on Kraken are trading at $6,721, $6,707 on FTX, $6,690 on Deribit, $6,683 on Huobi, $6,668 on OKEx, and the lowest on BitMEX at $6,665, as per Skew Markets.

Futures data suggests speculators are expecting to see lower prices in the near future.

According to Denis Vinokourov, head of research at Bequant, a crypto investment brokerage, “a break below $6,500 level will likely lead to another round of liquidations and send the price towards the $6,100/ $6,200 area.”

With not much support until the $5,000 zone, “a break below will be particularly painful,” for bulls, as such calling for a cautious tone which is supported by the shift in the futures curve into backwardation.

Over-the-counter (OTC) bitcoin liquidity provider B2C2 also warns of caution with the weekly BTC chart “tapped the trendline and formed a shooting star. Unfortunately no follow-through in a negative funding environment (leveraged shorts outweigh longs).”

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Author: AnTy

Kate Winslett Addresses Bitcoin Code Scam Claiming Her Endorsement

Being famous has its advantages, but it certainly has its own problems as well. The famous actress Kate Winslett, for instance, has been suffering from one of these problems. She was recently impersonated in a crypto scam to lead people to believe that she got money from buying BTC from them.

A crypto trading program called Bitcoin Code, which is said to always trade with 99.4% accuracy, used her image for marketing.

The actress categorically denies this and affirmed that she has no relationship at all with the fake platform. According to her recent interview with The Mirror, the whole thing was “categorically false”.

The scammers used her face to prompt people into investing at least $250 USD in the scam that promised to let them become rich quickly. While the site is a clear scam, it is possible that it could fool people who are not savvy about how the crypto market works. Winslett affirmed that she would deal with the criminals “via the appropriate channels”.

Other people are also featured on the page. Some of them are also famous people while others are fake people such as “Steve McKey”, which is said to be a CEO who made millions quickly. His image, however, belongs to a person with another name.

Unfortunately, this kind of scam continues to proliferate despite all the effort from the authorities that they are shut down. It is easy to create a fake site and go to Twitter to tell people that Elon Musk or a famous actress wants to give them money and, unfortunately, it works sometimes.

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Author: John Isige

Blockchain Tech Will Transform Major Industries Within 10 Years: Gartner Hype Cycle Survey

The blockchain technology is certainly bringing a revolution to the financial world. What some people don’t know, however, is that several other industries are bound to be affected as well. Gartner, a giant of the information technology area, has recently affirmed that the blockchain will change most industries within 10 years.

These remarks were made on a press release that talked about its newest research: 2019 Hype Cycle. The report tries to explain how the blockchain is changing business all over the world.

According to David Furlonger, the vice president of research at Gartner, 60% of all CIOs in the survey expected to adopt the technology despite not knowing what impact it will have. However, the lack of governance is still one of the main issues that are still preventing them from achieving the potential of the technology.

18% of all the banking-related companies plan to adopt the blockchain within the 12 next months or already have done it. Other 15% plan to do it within the next two years.

Furlonger affirmed that the financial industry is already adopting the technology at quite a quick pace. However, other non-financial industries are still needing more efforts before they can be able to use the technology properly as well.

To Gartner, the key to the success of the blockchain is tokenization and decentralization. Several industries could decentralize by adopting this kind of technology and see real business value from these decisions. The authors of the study believe that only a few industries do not benefit from the technology and that the market will grow 42% annually until 2024.

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Author: Gabriel Machado

Bitcoin’s Computing Power Breaks Records At Around 90 Quintillion Hashes Per Second

Bitcoin may not be breaking the records of price, but it is certainly breaking some kinds of records this year. The network has recently seen its computing power go up after its hash power grew 25% in a single week.

Recent data shows how much the hash rate has went up. It overcome 80 quintillion h/s and set new highs at around 90 quintillion h/s. A higher hash rate means that there are more people mining Bitcoin out there. The great this metric is, the more successful the network seems to be. Because of this, the security of the network against 50% attacks is also improved with a high hash rate.

A high hash rate also means other things. For instance, that miners will invest more money in mining, as the mining difficulty goes up when more people are mining. This way, a block is still mined every 10 minutes.

Bitcoin’s Prices Follow the Hash Rate, Keiser Affirms

The main point that really hypes people when the hash rates are high is that prices are generally bound to follow the hash rate. Generally, when the hash rate is going up, we see prices going up some months afterward.

This leads people such as Max Keiser, a prominent Bitcoin investor, to affirm that both the hash and prices are set to go up in the near future. According to Keiser, the political upheaval in the world (the U. S.-Trade War, riots in Hong Kong, Brexit) is fuelling chaos and making prices go up as people are starting to see Bitcoin as a safe haven asset.

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Author: Bitcoin Exchange Guide News Team

Amid Lawsuits, XRP Tokens Are Faring Bad In The Market as Ripple Investors React

Ripple’s XRP tokens are certainly not a great investment. At least that’s the take that most holders have right now. XRP is on a huge downtrend since its all-time high and is seeing its value drop. The token is trading at $0.25 USD at the moment, 90% down from its highest value, $3.30 USD.

Amid several lawsuits against Ripple, investors are starting to lose hope. Many of them are about to capitulate and leave the community for good because prices don’t seem to go up anymore.

A fan account called XRPBRad, for instance, affirmed that it would sell off its XRP and invest in other tokens. This person is not alone. The XRP market sentiment is considerably bearish right now and some people believe that the token may lose even 50% of its value in the future.

Tradeboi Carti, a Twitter figure, for instance, affirmed that the token could take a huge hit if it breaks its $0.27 USD support and it seems that this has happened.

The community is far from happy with the news. Some people are angry that Ripple Labs continues to release more XRP tokens in the market, which causes inflation and makes the price of the tokens go down.

Some users have even started a petition to make Ripple stop selling tokens to companies, which will obviously never happen. This gives more strength to the idea that Ripple is simply not so interested in its community as it claims and that the eyes of the company are really turned to the larger financial market.

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Author: Bitcoin Exchange Guide News Team

Canadian Mining Company Hut 8 Sees Revenues Going Up 250% In Q2

If there are clear winners of the crypto market in 2019, they are certainly the miners. Many companies are seeing huge improvements in their profits during the second quarter of 2019. Hut 8 Mining Corp. was the latest one to publish amazing results.

During Q2 2019, the Toronto Stock-listed company saw its net profits go up from a net loss of $3.6 million USD to a profit of around $25.3 million this year. Quite an improvement. Revenues also increased by over 250%. The revenue from the same quarter last year was $5.8 million USD and this year it was $21.3 million USD.

According to the CEO of the mining company, Andrew Kiguel, this was the best quarter that the company ever had since it was founded. The main reason for the success of this was that mining costs were reduced considerably and the price of Bitcoin went up quite fast.

This combination of low prices ($2,757 USD per BTC) with BTC going as high as $10,000 during the quarter was essential for the record-breaking performance. According to Kiguel, the improvements did not happen alone. The company was very focused on reducing costs and optimizing its systems at the end of 2018 when the bear market was putting several companies out of business.

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Author: Bitcoin Exchange Guide News Team

Coinbase Is Seeing Institutional Deposits of $200 To $400 Million Weekly, CEO Affirms

2019 is certainly a huge year for cryptos. Coinbase, the largest exchange of the U. S., is reaping the profits from that. The CEO of the company, Brian Armstrong, has recently tweeted about how institutional investors are entering the crypto market right now.

According to him, there is an obvious trend, which is that institutions are becoming a part of the crypto world. He affirmed that around a year ago, people were always asking whether we would see institutions really get into Bitcoin and crypto investing. According to him, Coinbase has the answer now.

The company is currently seeing institutional investors depositing from $200 to $400 million USD in assets on the company each week.

Coinbase Is The Largest Crypto Custodian of the World Now

If the crypto markets are changing, you can be sure that Coinbase is prepared for that change. The company has just acquired Xapo, a crypto provider that was one of the largest custodians in the market.

With the acquisition, Coinbase now sits at the top, being the largest crypto custodian in the whole world. At the moment, the company would have at least $7 billion USD worth of cryptos under its management.

Armstrong: The Future Is Bright

Despite the bull run that was started some months becoming calmer in the last few weeks, the future of the crypto market is pretty bright, according to Armstrong. Several institutional investors are finally ready to enter this world and companies such as Bakkt, which will offer BTC futures, will be important in this new phase.

He also hinted that Coinbase is exploring new products and looking at new ways to monetize assets and to improve its business model.

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Author: Gabriel Machado

Crypto Businesses Now Comprise 7% of the Swiss Financial Services Standards Association

Crypto Businesses Now Comprise 7% of the Swiss Financial Services Standards Association

The crypto industry is certainly growing a lot in Switzerland right now. Do you want a big proof of this? The Swiss Financial Services Standards Association, known also as VQF, currently has 7% of its members being members of the blockchain market.

VQF is the oldest cross-industry self-regulatory organization of the country and it has seen a huge spike upward in blockchain companies in the last year.

According to one of the co-CEOs of the organization, a man named Simon Waelti, the organization already has 88 blockchain-related members. He also affirmed that the figure may vary during the year as it is possible that other companies will also get interested in becoming a part of the traditional Swiss group.

The official mission of the cross-industry organization is to fight money laundering and to prevent terrorism financing in the country. The organization is supervised by The Swiss Financial Market Authority (FINMA), though, so it is not completely free and without regulation, despite providing its own self-regulatory power.

88 Companies Joined VQF, Bitcoin Suisse Was The First

From all the companies that joined the cross-industry organization, Bitcoin Suisse was the first one. The regulated crypto broker is based in Zug and it first entered the organization back in 2014. At the time, most of the companies which are a part of the VQF today did not even exist.

Bitcoin Suisse is also a member of the Crypto Valley Association and it is turning into one of the most important companies of the country in the crypto trading area. Recently, the company has decided to supply with the FINMA for a securities dealer license in order to offer more regulated products.

The number of companies which are related to the organization is linked to the rise of the blockchain Swiss market. With the help of the local regulation, Switzerland is becoming an important place for cryptos and a beacon of light for investors who are looking for a stable country that has a pro-blockchain regulation.

Because of this, the percentage of companies from this sector to be a part of the VQF is probably going to grow a lot in the next couple of years.

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Author: Gabriel Machado

Bitcoin Places 11th In Chinese Monthly Crypto Innovation and Technology Ranking, EOS Remains #1

Bitcoin Places 11th In Chinese Monthly Crypto Innovation and Technology Ranking, EOS Remains #1

Bitcoin is certainly the most important and beloved cryptocurrency in the United States, but can we say the same about China? Probably not, according to a new ranking published by the CCID Research Institute, a Chinese institution which ranks cryptocurrencies each month.

In its latest ranking, which was published today, July 31, the institution decided to put Bitcoin in the 11th place in terms of technology and innovation among all the 37 tokens listed.

The ranking is part of an initiative created by the Chinese Ministry of Industry and Information Technology. Every month, a ranking is made to show which are the most innovative and important cryptos in the market.

All the 37 tokens are evaluated and some of their characteristics are taken into account and compared. The main points are innovation, technology and applicability. Using this, a total value index is created and the tokens are compared.

Bitcoin was only able to score 103 points using this system. Despite the bad ranking, the token is still 4 places up from where it was before.

The report does not bash BTC, however. It sees as slowly gathering some mainstream audience and being a unique investment with some relevant characteristics that make it very interesting.

EOS Is The Crypto King In China

Curiously, a token that is not really so popular in the U. S. has ranked first: EOS. The project was able to overcome all of its competitors by scoring a total of 153.1 points. Mimicking its market cap, Ethereum (ETH) was ranked in second with 148.6 points. Not a bad score.

Tron (TRX), created by the Chinese entrepreneur Justin Sun, was able to get the third place while NULS and GXchain ranked fourth and fifth.

This is a considerably different rank than we would see in the West. Several tokens which are not very popular are ranking well against the most famous crypto and several relevant tokens are not ranking so well, too.

Despite ranking well almost every month in the CCID’s rankings, EOS is often not so praised outside this circle. The token, which has a strong community, is often criticized by lacking decentralization and for being able to reverse transactions, something that is considered a huge sin in most of the crypto world.

In any case, it is very interesting to see the main differences between what is important to Western and Chinese audiences and see the stark contrast between these opinions.

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Author: Gabriel Machado

Bitcoin Mining Industry Is Booming: Difficulty Up 14%, Reaches New High, Will BTC Price Follow?

Bitcoin-Mining-Industry-Is-Booming-Difficulty-Goes-Up-14-And-Reaches-New-High

If 2018 was an awful year for Bitcoin, 2019 is certainly being the exact opposite of that. As the price of BTC tokens has started to soar again, a lot of people in the industry are getting pretty excited about the prospects of the future and this means that miners are back in the game.

Several miners have left the market when the prices hit their lowest point recently, but they are getting back and now the mining difficulty has surged over 14% recently, according to BTC.com, a popular Chinese crypto mining pool.

On July 9, when the 14% increase happened, the average hash was 64.85 EH/s, a new all-time high in the industry. It was a year ago when this happened for the last time. Back in late July 2018, the block difficulty went up 15% during the 2,016 block interval.

The hash rate was only 42.59 EH/s at the time, however, which means that the difficulty was lower, hitting only 5.95 T. This week, the difficulty reached 9.06 T, a considerably higher number.

In case you are not aware, the mining difficulty is generally adjusted in order to keep a consistent block being mined every ten minutes. The change in the difficulty happens every 2,016 blocks, which generally take around two weeks to be mined.

This means that if there are more miners working at the same time, the difficulty will spike and it will fall when these miners decide to shut down their machines. It is a counterbalancing mechanism that is used in order to balance the network.

Now, the difficulty is expected to spike even more in the future. We are around 11 days from the next update and it looks that a boost is expected to go up at least 10%, not so much as this week but still a considerably high growth rate.

The deficit in the difficulty is generally calculated by taking into account how much time it takes for a block to be mined. For instance, a block is taking around 8 minutes and 46 seconds recently. This is short over 10% of the desired time of 10 minutes that should be the ideal.

Historically, the increases can be even higher than the ones that we are seeing these days. There are reports of the block difficulty going up over 20% in some cases. However, it should also be noted that the difficulty was considerably lower at these times and that the “volatility” on this aspect was higher because adoption was not as big as today.

Back in 2010, during Bitcoin’s infancy, for instance, there were hikes which were almost as high as 56%.

Last December, when some people were abandoning the network, the network faced one of its largest drops in difficulty so far: the difficulty went 15% down. This was the second-largest drop ever seen and was largely due to the fact that Bitcoin had lost over 80% of its price that year.

The recovery was only started after April 2019 when the current bull run started. When this happened, the miners finally decided to start mining tokens again as it was becoming once more a profitable ability.

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Author: Gabriel Machado