Coinbase Premium Tanks to an All-Time Low During Bitcoin Sell-Off

But soon it skyrocketed to nearly +$500.

The price of cryptocurrencies continued its downwards journey until a good bunch of longs was liquidated, and the price of Bitcoin went under $50k.

BTC went down as low as $48,250, down 27.5% from Sunday’s all-time high around $58,300.

With this latest dip, the leading digital currency has turned the old ATH of $46,700 into new support, noted analyst and trader Rekt Capital. However, the trader says this is not a Bitcoin correction because, historically, the trend tends to between 30% to 40%.

“But there are many more dips along the way which are much shallower than -30%,” added Rekt Capital.

This pullback pushed Coinbase Premium, the gap between Coinbase Pro price (USD pair) and Binance price (USDT pair) to an all-time low of -$1,020. Soon after, this premium skyrocketed to +486. Coinbase whales are actually the ones driving the market, and they took this opportunity to accumulate more BTC.

MicroStrategy and Tesla also availed Coinbase’s services to make their Bitcoin purchases.

This means, “Even if there are more corrections, it’s unlikely to go down below 44k,” said Ki Young Ju, CEO of CryptoQuant.

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Source: CryptoQuant

While after a wild rally that pushed us past the $1 trillion dollar market cap, correction is sometimes expected, we are also to blame for this correction because last week, the Crypto Twitter (CT) went crazy with red lasers, quipped another trader Josh Rager.

What actually exacerbated this sell-off was the degens that were trading with high leverage. In the last 12 hours, $3.64 billion worth of liquidation happened. In the past 24 hours, it was nearly $4 billion, as per Bybt.

Binance lead in these liquidations, accounting for $1.58 billion of them, followed by Huobi ($878.53 million), OKEx ($426.63 million), and Bybt ($322.49 million). Bitfinex and Deribit saw the least amount of liquidations at 8.74 million and $55.14 million, respectively.

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Source: ByBt

The liquidation helped the funding rate on BTC perpetual contracts to come down between 0.0068% on Deribit and 0.0686% on Binance. On OKEx, funding is negative.

For now, the market has recovered from the lows as Bitcoin now trades around $52,644.

Amidst the red market, good news came from Vancouver-based cannabis company Vinergy that announced the expansion of its investment policy to include Bitcoin and cryptocurrencies as the “influx of investment and increased institutional adoption is creating a highly lucrative opportunity.”

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Author: AnTy

Bitcoin Finally Hits a 34-Month High as BTC Briefly Pushes Past $14,000 on Its Birthday

Bitcoin continued inching closer to the big resistance of $14,000 on its way to the all-time high of $20,000 today, and finally, on its whitepaper Birthday, BTC hit it.

The leading digital currency went as high as $14,100 on Bitstamp, up 5% today with $2.6 billion in trading volume, before retracing under $14k. The last time we hit this level was in the middle of January 2018.

Today, as October comes to an end, Bitcoin has printed a monster monthly candle as we rallied 35% this month following the start of around $10,340. Now, it’s to be seen how high we actually end it.

In 2020, to date, Bitcoin has recorded 90.5% gains.

Bitcoin Shines Bright

On Wednesday, this week, BTC came close to hitting 2019 high but failed and dumped to go under $13,000.

Yesterday, we started moving yet again, while the equity market dropped even lower. Since Oct. 12, S&P 500 has been on a downtrend and has decreased by 7.5% during this time. In the same time period, Bitcoin’s price increased by nearly 25%.

It was the tech stocks that were hit the hardest, yesterday Nasdaq fell 2.8%, and since Oct. 12, it has slid more than 8%. Apple stocks were down 5.2% after it posted the steepest drop in quarterly iPhone sales in two years, while Amazon dropped 4.1% because of the increase in costs forecast and waning of a tougher 2021 had Facebook shedding 6.2%.

Also Read: Apple Can Buy 145k Bitcoin With Just 1% Of Its $191B of Dollars Held in Cash

“Exact opposite happened. Bloodbath, tech stocks in particular. The Warren effect,” said economist and trader Alex Kruger referring to Senator Elizabeth Warren expressing a desire to be Joe Biden’s Treasury Secretary adding to the risks.

“Rare given the size of the stocks dump. Could it be the market appreciates how bullish BTC Warren would be?”

Even gold continues to fall, going as low as $1,860 today before recovering to $1,880. The US dollar is also stuck between 92 and 94 ever since late July.

Even in the Crypto Market

In the cryptocurrency market, after a long time, this weekend is promising to see some activity. Bitcoin’s uptrend is also helping altcoins recover today.

For the past few weeks, altcoins have been losing in the wake of the flagship cryptocurrency’s strong upward movement. However, today Ether made it to $390 while DOT, WBTC, XTZ, and YFI all are up about 5%.

For now, Bitcoin continues to steal the show as Grayscale Bitcoin Trust bought another 5,190 BTC yesterday.

Additionally, CME is poised to close with its highest quarterly close ever and highest monthly close as well. Since its launch in December 2017, the total open interest (OI) on the platform is up 7.5x in terms of contracts.

“Institutions have clearly flipped their view of the world since 2018; as of this week, they were long Bitcoin with no short exposure,” noted analyst FilbFilb.

Leveraged Funds that make up most of the OI have been short as they perpetually are bearish; this week, they further increased their shorts. Other reportables, meanwhile, are pretty flat, retail bullish, and dealers short.

“So overall takeaways; Chart; very bullish bucking the trend vs. traditional. Institutions total mindset shift. Dealer Short. OI increasing as price increases. Bullish,” he added.

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Author: AnTy

LocalBitcoins Show Strong Transaction Volume Despite The Recent Regulatory Clampdowns

Bitcoin peer-to-peer decentralized marketplace, LocalBitcoins, has continued to maintain steady volumes despite the change in policies around the world that now require the user to complete a KYC procedure and even banned cash transactions.

The policy change was undertaken in accordance with new European anti-money laundering directives. In fact, the policy change was made in June 2019 and people thought it would really hamper the business and customer inflow.

However, the data suggest that policy changes didn’t really have any negative impact on the peer-to-peer exchange’s volume. In fact, the trading volume on the platform is well on-par with centralized exchanges such as OKEx and Coinbase, as per a data set from Nomics.

The data set revealed that in the past 12 months, OKEx and Coinbase have seen a volume drop of 30% and 45% respectively, while LocalBitcoins in the same time frame saw a decline of 27% which is less than both the prominent exchanges.

One of the spokespeople from the peer-to-peer exchange revealed that cash transactions on the platform were minimal and constituted only 0.5% of the total volume on the exchange. Thus removing the cash transaction option did not really have any long-lasting impact.

LocalBitcoins was created back in 2012 as a peer-to-peer exchange where anyone can buy/sell their bitcoins without the need to create an identity-based account, The main motive was to avail banking and financial services to the underprivileged who cannot get access to banks.

Developing Nations With Financial Troubles Contribute Largest to the Volumes

LocalBitcoins registered elevated transaction volumes from developing nations that are facing financial troubles due to various reasons. For example, transaction volumes recorded from Argentina, Colombia, and Venezuela have risen by 51%, 46%, and 125% respectively in the past couple of months.

Thus, it is quite clear from these statistics that LocalBitcoins volume hasn’t degraded after the policy change which many believe would bring the platform’s doom. In fact, since the policy change, the exchange has managed to keep its trading volume in-line with mainstream centralized crypto exchanges These statistics also prove that people do not really care about privacy for as long as they get to trade bitcoin.

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Author: Silvia A

Grayscale Now Holds 1.7% of All Bitcoin; Reports Record Growth in Q1 2020

In Q1 2020, which was characterized by significant volatility, Grayscale Investments saw continued demand and that too at a “record pace.” This is because “investors are tactically using drawdowns to increase their exposure to the asset class, even in a “risk-off” environment.”

Strong and sustained interest in Crypto

The new decade had a turbulent start with coronavirus pandemic induced sell-off triggering a huge drawdown in nearly all risk assets and currencies. But despite the drawdown this quarter, Grayscale continues to hit all-time highs.

For the first time, the inflows into Grayscale products over a 12-month period surpassed $1 billion, “showing strong and sustained evidence that investors are increasing their digital asset exposure at current levels.”

The digital currency manager which has over $2.2 billion in assets under management as of March 31, 2020, had its largest quarterly rise of $503.7 million in 1Q20 in its history.

Both its Bitcoin Trust and Ethereum Trust saw record quarterly inflows of $388.9 million and $110.0 million, respectively. The demand for Grayscale Products ex Bitcoin Trust also grew a whopping over 260% from last quarter.

Not just the assets under management but Grayscale’s market share also spiked to a new high.

“Grayscale’s ten funds now hold 1.2% of ALL crypto in circulation and 1.7% of bitcoin in the world,” said Barry Silber, founder, and CEO of Digital Currency Group, the parent company of Grayscale.

Source: Grayscale Q1 2020 Investment Highlights

Grayscale investors are seeing digital assets as a medium to long-term investment opportunity and using the drop in price as the way to do so at the fastest pace in its history.

Most of the company’s investors allocate into Bitcoin via Grayscale Bitcoin trust or Grayscale Digital Large Cap Fund that accounts for 80% of Bitcoin. However, now 38% of investors, up from 29% in 1Q19, have invested in multiple Grayscale products.

Other cryptos covered are Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), XRP, Stellar Lumens (XLM), Litecoin (LTC), Zcash (ZEC), and Horizen.

This demand for Grayscale Products is primarily from institutional investors at 88%. These investors are dominated by hedge funds, registering a jump of 9% from the past 12 months. New investors meanwhile accounted for $160.1 million in inflows.

Source: Grayscale Q1 2020 Investment Highlights

The new investment capital this time was more heavily weighted to offshore investors than the rough split between the U.S. and offshore investors.

Now, large capital inflows can be taken as a sign of perceived value and “potential future price momentum.” Grayscale also found that “large increases in dollar-denominated inflows relative to Grayscale AUM have historically preceded market rallies.”

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Author: AnTy

After The Crypto Price Crash During COVID-19, BTC Mining Hash Rate Has Regained 34%

A North American Bitcoin mining operator Bitfarms shared that they continued to mine BTC despite the violent sell-off triggered by investors’ fear over the COVID-19. Interim CEO and Chief Strategy Officer, Emiliano Grodzki said,

“We are pleased to see that, despite the challenges to traditional markets, our scale and quality of operations has allowed us to continue to generate positive cash flow in these difficult times.”

From the price drop to the recovery of the price to $6,000, the company maintained an average daily hashrate of approximately 630 petahash per second which again increased to about 750 PH.

By reducing the staff temporarily in line with government guidance and implementing permanent measures to reduce overhead costs, they are looking to cut down their expenses by 20 to 25%.

According to John Rim, the CFO, they will be “best positioned” to withstand the short-term volatility and remain profitable come halving.

Significant Percentage of Bitcoin Miners can still Exit

In the past few weeks, the bitcoin price has recovered from the low of $3,850 hit during the crypto carnage to surging above $7,400 on Tuesday.

As we reported, not just price but network fundamentals have also been showing recovery signs. Bitcoin miners have turned profitable yet again and more than 34% more hash has been added in just over two weeks, meaning new rigs have been added to mine BTC.

Recently, on-chain analyst Willy Woo shared bullish miner charts, with the Hash Ribbon and Miners Energy ratio recovering. According to him, the 45% drop in hash rate in March saw some miner capitulation and now he isn’t expecting any more sell pressure from miners.

However, according to Matt D’Souza, Hedge Fund Manager and CEO of Blockware Solutions, a crypto mining service, it is likely that a meaningful percentage of inefficient miners will still be removed from the bitcoin network. However, he advised keeping the demand side in mind as,

“price is made up of supply & demand. Inefficient miners can remain if the funds & hodlers (demand side economics) counter-balance sell pressure by raising new fiat into the system. Bitcoins fundamentals are better than ever.”

Overall, it all depends on the if price and if Bitcoin price continues to move higher, all the miners will be operating at healthy margins, that is until either difficulty pulls back or price corrects. D’Souza said,

“Sustaining margins for the long term determines inefficient vs efficient miners.”

Come halving next month, the miner flow will cut down in half from 1800 BTC per day to 900 BTC per day. In order for the miners to remain profitable, the BTC price needs to rise as the cost of mining one BTC will surge between $12,000 to $15,000.

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Author: AnTy

Ripple SVP: $11.3M MoneyGram Payout Is No Different Than A Visa Or PayPal “Incentive Program”

  • In a business move “MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities”
  • Ripple’s “financial benefit” of $8.9 million in the Q4 and $2.4 million in Q3 will be accounted for as contra expenses
  • We are building new infrastructure together and it costs money – Ripple SVP, Asheesh Birla

Ripple partner, MoneyGram, which uses Ripple’s On-Demand Liquidity (ODL), using the digital asset for cross-border remittances, received over $11 million over 2019 from the firm, according to a legal filing with the US’ Securities and Exchange Commission (SEC).

MoneyGram has stated that it’s currently looking to expand its existing partnership with Ripple.

“MoneyGram continued to expand its strategic partnership with Ripple as the first money transfer company to scale the use of blockchain capabilities,” the announcement continues. “As the first money transfer company to scale the use of blockchain capabilities.”

MoneyGram’s end of year financial results of the company for 2018 revealed their income at a little over three hundred million. This income coincided with a decline of 6% from 4Q18 and excluded “$8.9 million of benefit from Ripple.”

Overall, in 2019, MoneyGram’s reported a revenue decline of 11%.

According to MoneyGram, this amount will be accounted for as “contra expenses” rather than revenue after consulting with the SEC.

In the prior quarter, the company had treated “Ripple market development fees” as revenue. But now, this Ripple “financial benefit” of $8.9 million in the fourth quarter, and $2.4 million in the third quarter are considered as amounts to offset existing operating expenses in its Transaction and Operations Support.

Ripple Paying MoneyGram to use their Software & XRP

In June 2019, Ripple announced a $50m strategic partnership deal with the money transfer giant. However, there was no mention of the $11.3 million MoneyGram received from Ripple until now.

In Jan. 2018, the first reports came in that MoneyGram would test Ripple’s xRapid solution. In Nov. last year, it was revealed that XRP has been powering 10% of MoneyGram’s Mexico-US corridor transactions through ODL.

A few months ago, it was disclosed by MoneyGram’s Q3 filing that the company “allows MoneyGram to utilize Ripple’s On-Demand Liquidity blockchain product (formerly known as xRapid)” and XRP to facilitate cross-border settlements.

The reimbursements by Ripple to MoneyGram aimed to develop and bring liquidity to foreign exchange markets.

While the new filing doesn’t specify what the $11.3 million was for but it looks like the $2.4 million in Q3 and $8.9 million are given to the MoneyGram to use XRP.

Market Development Costs Money

On this investment, Ripple SVP, Asheesh Birla said:

“Ripple and MGI are strategic partners – we are building new infrastructure together. This market development requires a ton of work, effort, and resources. Surprise, that costs money!”

He further pointed out that Visa (which “allocated a casual $4.1B on incentives in 2019”) and PayPal had also employed “incentive programs” to boost their network adoption. Birla finished saying,

“MGI said today that they are actively expanding to new corridors, and even working to integrate RippleNet for account-to-account transfers in 2020. ODL reduces their capital costs because of the product’s efficiencies, not because they are receiving any fee on the other side.”

Related News:

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Author: AnTy

Bitcoin Continues to Set New Performance Records for Its Network Hash Rate Power

Bitcoin dominance has continued to soar in the cryptocurrency ecosystem. BTC has set new records this month for its network hash rate, which indicates that miners jiggled off delicate price accomplishment.

Bitcoin Records All-Time Hash Rate High in October

Blockchain, which is the authoritative resource that keeps track of data established, the hash rate reached 114 quintillion hashes per second on the 23rd of this month.

This, by far, is the enormous recording ever shared by others, including BitInforCharts, which at the same time also recorded an all-time high of over 110 quintillions. On 10th October, Coin Dance recorded an all-time high of 134 quintillions.

Hash rate is the all-inclusive computing power required to intricate agreements on the Bitcoin infrastructure. More potential advocates perfect network security as well as potential profits in Bitcoin mining. Meaning, miners are expecting an increase in Bitcoin’s value soon.

The Latest Price Drop Is Testing Miners Profitability

The network hash rate seemed to undergo rapid change last month. At the same time, Bitcoin dropped by 40% in a day.  Experts elaborated the data did not imply miners were giving up on Bitcoin as reported by Cointelegraph.

Be it as it may, the continuing hash rate before the fall in the price of Bitcoin drew a line showing their laxity in investing in the industry- so is its profitability. This week, the mining giant Bitmain started the world’s largest mining farm in Rockdale, Texas.

The profitability measurement is nearing its cheapest in 12-months. Cointelegraph reported that one miner said that $6,500 is the bottom line to keep gains for miners. Bitcoin could experience lower hash rates if it scales over it. This may lead to miners to down their tools until when the prices return to normal.

Dovey Wan, one of the investors, said that Bitmain’s Antminer S9 mining supply model is one he famous miners around the globe. At the moment, the miner is in the negatives at the present prices, excluding other costs such as electricity.

It is, therefore, a matter of time to see if the fall in Bitcoin price will have a contradiction on the hash rate.

All Eyes On Block Prize Method

Miners will now keep up with at least half of the new Bitcoins per block starting May 2020. Instead of 12.5 BTC, they will now compete for 6.25 BTC.

Reporters are anticipating the block halving to increase Bitcoin price with a comparison of up to $63 million not able to be used each week.

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Author: Ali Qamar

Craig Wright to Take the Stand Soon for Kleiman Lawsuit Hearings Regarding Bitcoin’s Creation

Craig-Wright-to-Take-the-Stand-Soon-for-Kleiman-Lawsuit-Hearings-Regarding-Bitcoins-Creation
  • Craig Wright has continued to claim to be the true creator of Bitcoin.
  • He will be calling himself as a witness in the Kleiman vs. Wright lawsuit.

The case of Kleiman vs. Wright has been going on for quite some time, and new reports show that Craig Wright will be calling witnesses at the June 28th deposition. Wright has consistently stated that he is the creator of Bitcoin, and he will be calling two expert witnesses, a fact witness, and himself to the stand. Ultimately, since Wright will already be on the stand, he opens himself up to cross-examination.

There is already a chance that Wright will end up being placed in contempt of court after he failed to provide the list of Bitcoin holdings that he kept before the end of 2013, according to CoinDesk. This failure could lead him to trouble at either the civil or criminal level.

The chief scientist for nChain had allegedly mined over 1.1 million Bitcoin with Dave Kleiman between 2009 and 2011, believed to be stored in the “Tulip Trust.” Though Kleiman has since passed, his sister Ira is suing on behalf of his estate, asking for the fair market value and rights to the intellectual property.

The court documents say that Brett Roberson will be offering his testimony regarding digital forensics and PGP signature. His experience also covers theft of intellectual property, analyzing the activities found on a computer through a specific range of time, and recovering files that have already been deleted. All of this experience can be found in his CV, which is being used as Exhibit 1.

Kevin Madure is the second expert witness, who is the former IBM consultant and VP of cybersecurity at AlixPartners. He will be testifying to cryptography, blockchain technology, and cryptocurrency, specifically in reference to how it affects this case.

The fact witness will be Steve Shadders, who is the CTO of nChain. Previously, Shadders posted a blog titled “On the Satoshiness of Dr. Craig S. Wright.” The blog discusses the reasons that Shadders believes that Wright could be the true identity of Satoshi Nakamoto. His statements are based on his experiences with Wright, even though he claims to have decided against seeing conclusive evidence.

To ensure that he has some kind of control over the narrative, Wright is calling himself as well. Palley, a lawyer that is following the case but is not directly involved, tweeted about the issues, saying that “criminal contempt” is still on the table.

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Author: Krystle M

Bitcoin Pre-Paid Cards with a Conversion Option for 10 Fiat Currencies by The White Company & Paxful Launches

Bitcoin Pre-Paid Cards with a Conversion Option for 10 Fiat Currencies by The White Company & Paxful Launches

Partnerships have continued to be a fundamental indicator of growth and stability for projects within the blockchain and cryptocurrency space. One recent collaboration by Paxful, a digital coin exchange, with The White Company (TWC) is expected to tap more unbanked individuals into crypto.

TWC which is a New York based Fin Tech firm specializes in developing blockchain-oriented products for both supply and demand stake holders interested in leveraging the new technology.

This move is a significant milestone for the crypto space as clients will have the option to convert their BTC to 10 different fiat currencies. So far, the most pegged currency (USD) is featured amongst others like the Australian dollar and Swiss Franc.

Elizabeth White, founder and CEO of The White Company, noted that the partnership is set to facilitate the inclusion of millions into the digital asset ecosystem through Paxful’s P2P market. She went on to add that;

“Together we can bring all the benefits of banking without the high costs to developing countries and the unbanked, as well as promote the usability of cryptocurrency worldwide.”

Bitcoin; The Game Changer in Banking!

The on-boarding process for this platform is quite simple, clients will only be required to provide an email address and in turn receive a card with virtual prepayments.

Users will then have to make a conversion from digital currency (BTC) to fiat so as to easily use their designed cards for online purchases and service payments.

In addition, the clients can also ask for a physical card delivered to them. These will be efficient in ATM withdrawals and physical purchases from retailers. This technology appears quite lucrative to big city folks but the main targets by Paxful and TWC are developing economies whose population is mostly unbanked.

Both entities noted through a statement that their collaboration will mostly have a positive impact in African and Latin American markets where a bigger part of the population is unbanked.

Ray Youssef, the Co-founder and CEO Paxful, echoed that the firm’s mission of liberating financial services around the globe just acquired new ground with this partnership;

“Many of our customers are unable to become banked. By allowing them to change bitcoin into prepaid debit cards we are giving them the chance to participate in both the current financial system and the digital economy.”

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Author: Bitcoin Exchange Guide News Team