3 Reasons Why Bitcoin Price Crashed 17% to $16,300

Well, this was to be expected after a surge of 85% in the price of Bitcoin since October.

People got a Thanksgiving sale as the BTC price dumped nearly 17% to almost $16,300. Still, the last time we were at this level was just last week, so all good. The lowest we were in November was about $13,200.

Trading around $17,000, the ‘real’ trading volume continues to go up, reaching $6.68 billion.

What else did you expect?

It has been glaringly obvious that Bitcoin is overextended as it kept on breaking above one level after another in quarter four of 2020.

In less than two months, from just above $10,000, we made a new 2020 high of $19,500 just yesterday. After such a wild run, it is to be expected the market would see some correction. Not to mention the leverage started “dangerously” creeping up this weekend.

As we have reported and market participants have been vocal about all this time has been the expectation for a pullback.

“Conditions are very massively overbought and bound for a correction,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore. “So I don’t think it’s unusual, frankly.”

Ayyar expects Bitcoin to stabilize and achieve all-time highs but warned that it would be followed by a larger drop in the cryptocurrency.

It’s Usual and Bullish as F

During the last bull run, the digital asset had an average of 30% drop about nine times.

By this standard, we only had half of the correction, another such drop, and we would be going under $15,000, which could give us another Black Friday sale.

Bitcoin trader @CryptoCobain called this a “very bullish dumping.”

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It’s “not unusual to see a short-term pullback following periods of significant, accelerated gains as traders look to take profits before resetting once volatility subsides,” said Ryan Rabaglia, global head of trading at OSL brokerage in Hong Kong.

“Once the dust settles, we’re back to business as usual with all medium to long-term bullish indicators still in play,” he added.

You can Blame Some These Too

If you are still looking for a reason why this happened, an assortment of reasons could be blamed.

Just today, OKEx restored the full range of withdrawal services, reopening at 08:00 UTC.

Around the time of the fall in prices, Coinbase CEO forewarned the community on Twitter that the US Treasury Secretary is planning to “rush out some new regulation regarding self-hosted crypto wallets before the end of his term.” This led to the transfer of 1,008 BTC worth over $18.7 million to Binance.

“This tweetstorm made a difference for some market participants, and likely triggered selling flows, which against a backdrop of unsustainable high leverage (present since Monday) led to the largest 24h drop since March,” said trader and economist Alex Kruger.

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Author: AnTy

ETH Gas Prices Explode Higher After Ethereum Dumps to $480

Everything is going as expected and as seen by the crypto market so many times.

The market has been given a Thanksgiving sale as the price of Bitcoin fell hard, to about $6,300 level.

This obviously led to an even bigger sell-off in the price of the altcoins.

After the rally seen by the cryptos in the past few weeks, a correction was expected, and retail flows into the sector further meant “it’s time to be cautious.”

ETH Got Cheap Again

The second-largest cryptocurrency market cap went down to as low as $480.

Just the day before yesterday, ETH went as high as $620, a level that was last seen in May 2018, thanks to the confirmation of the ETH 2.0 launch on December 1st.

“While Bitcoin has understandably dominated market attention over the past number of weeks, Ether has been quietly building steam in its shadow,” said Konstantin Richter, founder of Blockdaemon. As ETH 2.0 comes closer, “market confidence is peaking,” he said.

After reaching the $600 mark, Etherem faced strong selling pressure. As per the IOMAP indicator of IntoTheBlock, “the strongest level of support for ETH is located between $531 and $547, where 499k addresses previously bought 6.43m ETH.”

As a result, on several of the top centralized exchanges, the funding rate for Ethereum got positive, meaning long traders started paying the shorters to keep the price of perpetual futures contracts near the index price.

Then last night, the price of ETH dropped more than 20% to $480, seen last Friday only.

At the time of writing, ETH/USD has been trading around $500 with $3.4 billion in ‘real’ trading volume.

And Network Becomes Too Costly

Not just ETH but DeFi tokens much like most of the cryptocurrency market are in losses; these cryptos are actually down 15% to 30%.

CREAM, up 14%, is among a handful of tokens that are in the green at the moment.

As a result of these losses, people are changing their positions, and a lot of activity on the Ethereum network is leading to a surge in gas prices.

“Gas has exploded higher since the flush. DeFi traders are active rebalancing positions,” noted trader and economist Alex Kruger.

Ethereum gas fees have surged to 180 Gwei, up 200% from yesterday’s 60.7 Gwei, as per Blockchair.

Earlier this week, the gas fees went down to 29 Gwei, declining from the Sept. 17 high of 539 Gwei when DeFi was topping out.

As such, average Ethereum fees went up to $7.48, an increase of 236% from yesterday’s $2.28. The all-time high in average fees was achieved on Sept. 2nd at $15.2.

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Author: AnTy

Ethereum 2.0 Deposit Contract Only at 18% Staked; Will It Launch on Dec 1?

The Ethereum 2.0 upgrade may not happen as soon as the community expected if the minimum threshold of 524k ETH isn’t met within the next week. Currently, 99,488 ETH has been staked in preparation for the launch, roughly 18.97% of the required ETH. Nonetheless, Ethereum 2.0 developers are still optimistic about the Dec 1 launch.

While there is a target date for the ETH 2.0 launch, hiccups hitting the minimum threshold could mean that this date will have to be rescheduled. Going by the updates from Dune Analytics, the eventuality of postponing the launch is more likely than not.

This is because all the ETH must be deposited seven days before the target launch date of Dec 1, according to Danny Ryan, a core researcher at the Ethereum Foundation. If the threshold is not met within the expected time frame, Ryan noted that the genesis would be triggered at a later date when it is achieved,

“If not … genesis will be triggered 7 days after this threshold has been met (whenever that may be).”

So far, a total of 458 contributors have deposited to the ETH 2.0 deposit contract, totaling 3,023 transactions as of press time. Some of the largest contributors include Ethereum’s co-founder Vitalik Buterin who has allocated 3,200 ETH, which is over $1.4 million as per the prevailing market prices.

With the December launch set to mark phase 0 of ETH 2.0, the upgrade to a PoS ecosystem will still be far from over. This will only lay the groundwork for phases 1 and 2, which are expected to roll out in the coming year as part of a full migration from the PoW consensus.

Notably, the Ethereum and larger crypto community have been waiting patiently for this shift. Basically, a migration from the PoW consensus means that Ethereum’s blockchain will be more scalable since less computing power is needed in the PoS model. If successful, the Ethereum blockchain will solve the underlying scalability challenges, which are a pain point to its booming ecosystem.

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Author: Edwin Munyui

Ripple CEO: ‘Jumped the Gun’ Predicting Banks Would Start Using ODL

While Ripple jumped the gun in predicting a spectacular 2019, this year, which was expected to be a challenging one, is actually doing well, said Ripple CEO, Brad Garlinghouse.

“We aren’t going to grow as fast this year as we thought. However, we’re still getting two production financial contracts a week,” said Garlinghouse in an interview with The Scoop.

“Obv jumped the gun when I predicted 2019 was the year banks would use ODL,” Garlinghouse said on Twitter.

It was recently revealed that Ripple had bought $46 million worth of XRP for the first time in the Q3 of 2020, as such increasing the price of the cryptocurrency.

XRP is currently trading at $0.272, up only 40% YTD, still down more than 93% from its all-time high.

The company, which already owns about half of the digital asset’s supply, made the purchase to support “healthy markets.”

It stated in its quarterly report that Ripple might continue to purchase XRP to support its newly launched product, Line of Credit, that allows its ODL customers to buy XRP on credit from the company.

The report also revealed that Ripple sold $35.84 million worth of XRP to its ODL customers in Q3 but again, no programmatic sales were made.

During the interview, Ripple CEO said the non-transparent regulatory is keeping the company from reaching its potential and that there isn’t a “level playing field” for all the digital assets.

“Bitcoin was the only one with the hall pass,” he said, adding Ripple is “fighting with one hand tied behind our back.”

For some time now, Ripple has been considering moving out of the US to a country that has more regulatory clarity. Already, it has opened a new regional headquarters office in Dubai International Financial Centre.

“Once banks have regulatory clarity, there’s little doubt in my mind that they’ll use these technologies,” tweeted Garlinghouse.

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Author: AnTy

BlockFi Eyes European Market in Q1 2021; Excludes the UK Due to Regulatory Uncertainty

BlockFi, a crypto lending service, is eyeing the European retail market with an expected product launch in Switzerland, Italy, and the Netherlands by the first quarter of 2021. The crypto lending firm has already begun the trials for the launch in Italy. However, to many people’s surprise, BlockFi has excluded the United Kingdom from the list despite having several London offices.

David Olsson, Blockfi’s vice president for Europe and Asia, shed some light on the launch of their retail products in the European market and said,

“They’re large enough markets that it’s worth our while to go in and put the resources to work to get traction there, and there is also the regulatory certainty that they’re more pro-crypto and it’s a stable regulatory environment.”

The crypto lending firm said that they are only focusing on institutional clients in the UK for now. The reason for excluding the UK could also be attributed to the latest crypto regulation update in October made by the Financial Conduct Authority (FCA). The October update prohibited offerings of derivative crypto products to retail investors.

While the October update does not impact BlockFi, the firm is currently observing the country’s retail market and regulatory policies surrounding it. The crypto lending firm believes it’s too complicated at present to roll out an elaborate business model in the country.

Olsson said that the October ban on derivatives offering for retail investors would hamper the future of crypto services in the country. He said that the ban looks like “it’s putting crypto on a different footing to equities,”

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Author: Silvia A

Crypto Exchanges Contribute to Curve Finance’s Front-Run & Premined CRV Token Launch Insanity

  • Things continue to get more and more bizarre in the DeFi world.
  • The crazy is to be expected when “you give people a permissionless uncensorable platform.”
  • This time, the center of attention was one of the most popular DEX Curve Finance and its highly anticipated token launch.

Within hours of the surprising launch of the CRV token, the leading spot exchange Binance announced the listing of the token with deposits now opened but said due to the token’s limited circulating supply, trading won’t start until a “sufficient enough” levels of CRV deposits are reached.

The trading for the pairs CRV/BNB, CRV/BTC, CRV/BUSD, CRV/USDT, will be opened on Saturday, August 15th, at 4:00 AM (UTC).

As expected, the listings pushed the price of CRV to as high as $54, as per CoinGecko, before going back to $14.12. On Uniswap, at one point, 1 CRV got about 124 ETH. As a result, its market cap “briefly surpassed” even that of Bitcoin on a fully diluted basis.

As such, Binance CEO Changpeng Zhao wants people to “use your judgment. Be responsible for your actions.”

But the community isn’t thrilled with Binance’s decision. One trader criticized CZ for “contributing to this “insanity’” saying, “you listed a CRV without consulting with the team after it had already been premined” and that Binance’s FOMO led other crypto exchanges, OKEx and Poloniex, to FOMO list CRV as well.

Does it get any more decentralized than this?

The launch of the CRV token itself has been nothing short of peculiar. Instead of Curve Finance, the token was launched by an anonymous developer.

An exchange liquidity pool on Ethereum, Curve, is designed for stablecoin trading. A popular DEX in the DeFi space, Curve accounts for more than 20% of all DEX volume for the past two months.

Just launched CRV is its native governance token, which is also used as a reward for liquidity providers. A portion of the trading fees collected on the platform will be used for burning CRV tokens.

The token came in the market at 6.25 PM EST yesterday, sooner than its scheduled launch after an anonymous user deployed the open-source CRV token and CurveDAO contracts on the Ethereum mainnet.

Initially seen as a scam, the Curve team later confirmed that the contract is authentic, and they have adopted it after it gained traction.

Users subsequently found that wallets have been staking Curve assets and earning CRV assets before the official launch, which led to unfair “premine” allegations.

About 20,000 CRV tokens were also awarded to early stakers, as is the design of this protocol, and one or more of the wallets presumably belong to the developer, dubbed “Chad” who prematurely launched the token.

Interestingly it only cost 19.9 ETH, worth about $8,400 to deploy the contract.

Before the community got heated up about the “pre-mining” of tokens, Curve’s project lead Charlie commented, “I think it’s kinda cool personally” on the Discord channel.

As for the CRV token distribution, out of the initial 1.3 billion tokens, 5% of tokens with a one year vesting period will provide liquidity to the platform along with another 57% of all CRV tokens that will also be distributed to LPs from the 3.03 billion total supply. Employees and shareholders will get 3% and 30%, respectively, with a vesting period between two to four years while the remaining 5% will go to community reserve.

But this isn’t deterring the DeFi users given the new record $5.22 billion of total value got locked in the sector today

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Author: AnTy

Binance Futures to List BTC/USD ‘Inverse’ Perpetual Futures; Leveraged Up to 125x

Binance announces the launch of its Bitcoin perpetual coin margined futures contract expected on Tuesday, August 11, 2020, at 7 AM GMT. According to the published blog post, traders can leverage their positions on the BTC/USD coin margined contracts up to 125x, to increase their rewards.

Remember, a higher leverage position increases your risk by the same proportion; hence be careful while using leverage.

The statement obtained by BEG states the coin margined BTC/USD contracts will be listed on Binance Futures, the exchange’s derivatives wing. BTC/USD coin margined perpetual contracts are similar to standard crypto futures. Still, they do not have an expiration date, and the margin is set in BTC instead of the conventional fiat currency.

Binance Futures’ BTC/USD coin margined contracts are the second in line to use BTC as the base currency following the recent launch of quarterly BTC/USD coin margined products. The exchange has launched the COIN- and USDT- margined products in a bid to promote the use of BTC and altcoins as the currency of settlement.

Changpeng “CZ” Zhao, CEO of Binance, states the ‘inverse’ futures contracts “helps strengthen the digital asset’s industry standing” as they allow long term crypto hodlers to invest with a long term view on the crypto. On the launch of these margined futures products, Aaron Gong, VP of Binance Futures said,

“[Binance] We are the only exchange that offers users flexible control of their margin balance by either spreading it across all their open positions or setting individual limits for each position they own (cross or isolate margin modes), as well as the ability to switch their margin modes at any time.”

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Author: Lujan Odera

Bitcoin Again on the Move Amidst “Increasing Market Demand”

Bitcoin is back on the move today. Volatility has been expected as options for 67,700 Bitcoin worth $745 million are expiring today.

Currently, the largest cryptocurrency is trading just under $11,400, up more than 3%, with over $2 billion in trading volume. In the past ten days, BTC has surged 24.5% that has resulted in the number of bitcoin addresses holding 1 million USD spiking by 38% to about 18,000.

Also, a whopping 93% of bitcoin’s supply is at a profit with the price at $11k.

Interestingly, BTC deposits at major exchanges continue to drop, which has been falling since March after the digital asset crashed along with the other asset classes. The deposits have currently reached the low-levels, last seen in May 2019, which suggests users prefer to store their BTC in private wallets. Moreover, it “may lead to a lower selling pressure the upcoming months.”

“Despite BTC’s recent surge to $11k, there are currently no signs of weak hands from long-term investors,” noted Glassnode. “Hodler Net Position Change remains positive since the end of March, with hodlers currently accumulating more than 50k BTC each month.”

However, Ki Young-ju, the CEO of on-chain analysis firm CryptoQuant, said whales have started to send Bitcoin and stablecoins to exchanges. He said,

“BTC whales are sending Bitcoins to exchanges. Stablecoin whales are sending stablecoins to exchanges as well. This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy/sell pressures.”

So Much HODling & Accumulation

Bitcoin gains are recorded amidst the amount of USDT flowing into exchanges spiking to yearly high. All the while, Tether continues to mint millions more USDT that “hints at increasing market demand and could potentially support further Bitcoin price appreciation,” states OKEx.

The exchange’s one-month futures annualized basis has also surged to as high as 27.67%, its highest level since late February. “Values above 20% indicate that traders are paying a very high premium on spots and using high leverage,” OKEx said.

Just this week, Bakkt recorded peak volume twice in a row while CME saw its open interest making new highs. Regarding the slow adoption of its bitcoin options product, CME Group continues to “work with both brokers and platforms to get them connected and up and running to facilitate trades with customers.”

Another bullish development seen in the market is the 1-year HODL wave, which has been unmoved on the blockchain over the last 365 days.

Additionally, this Bitcoin 1-year HODL wave has hit a new all-time high of 63%, up 1% since the start of July.

The fact that an increasing number of bitcoin investors are HODLing with no pressure from any sell-side in the form of deposits to exchanges speaks well for the world’s leading digital currency.

At this point, if bitcoin closes above ~$14,300 on the 12 Monthly charts, that would be one of the most bullish developments in this new cycle, said analyst Rekt Capital.

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Author: AnTy

FinTech Merchant Bank and Vertalo Partner To Tokenize $200M In Securities on Tezos

Over 20 companies are expected to tokenize securities that represent about $200 million in deals on the Tezos blockchain, after a new partnership between DealBox, the fintech merchant, and Vertalo, the software provider, has been closed.

The announcement was made on Monday and says Vertalo is going to tokenize 22 securities that are issued by clients of DealBox. Dave Hendricks, the co-founder and CEO of Vertalo, said that this will provide liquidity and data management services. It should be noted Vertalo has registered with the Securities and Exchange Commission (SEC) as a transfer agent.

DealBox is an Intermediary and Vertalo the Tech Provider

Hendricks mentioned that Vertalo is the tech provider in this partnership, whereas DealBox acts as an intermediary between the tech company and clients. He also said this is the preferable situation because Vertalo prefers to collaborate with channel partners, even if it can work with issuers directly. The Vertalo customers number is going to double as far as digital security issuance goes. As of January this year, the company had 18 clients. Here is what Henricks said regarding how tokenizing may be able to increase liquidity:

“The private assets are a bigger market than public securities. Because of the antiquated methods for asset management, and for ownership of private assets, owners of private assets cannot obtain liquidity.”

Vertalo Decided on the Tezos Network 6 Weeks Ago

Vertalo formally decided on the Tezos network to be its security issuing default blockchain a month and a half ago. It supports Tezos and Ethereum (ETH) issued securities but made the announcement in January this year that it encourages its customers to go with Tezos if possible. The chief investment officer and president at DealBox, John Nance, said the partnership with Vertalo will help the digital investments market infrastructure to develop. Here are his exact words:

“This idea of crowdfunding and using online investment platforms is pretty new.”

He added some companies that are well established may not have what it takes to support the issuing of such securities.

DealBox Hopes for Migration to Tezos

While DealBox has had Stellar blockchain issued securities in the past, it’s hoping for a migration to Tezos. Here are Nance’s exact words on the matter:

“We’re going to be bringing a significant amount of capital to the Tezos platform.”

As Hendricks said, the integration already started and should continue for the entire second quarter.

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Author: Oana Ularu

Ripple: Asia-Pacific Remittance Market Seeing Growing Demand And is Ripe for Digitalization

  • APAC digital transfer and remittance market expected to grow by 24.2% from 2018 until 2025
  • But what’s astounding is the expensive services charging as high as 10.34%

In its latest insight report, Ripple shares the growing demand the Asia-Pacific (APAC) region is seeing.

“More remitters than ever are sending money home to their loved ones,” the San Francisco-based company points out adding APAC saw a growth of 12% in remittance flows in 2018, as per World Bank. About 2bln in remittance transactions flow in the area every year.

APAC region to see a growth of over 24%

Remittance flows in the Philippines, makes them the 3rd largest remittance-receiving nation worldwide, and another staggering number that is reaching record highs of $529 billion last year is Thailand, and is also anticipated to see exponential growth as the Philippines greatest help for external financing.

On the opposite side, Australia and Thailand entice a remarkable amount of migrant workers. Australia’s payment outflows are $7.2 billion to China, India, Vietnam, the UK, and the Philippines. Also becoming a major destination for foreign workers is Thailand, with $7.5 billion set against ejaculations of $4.9 billion estimated payment inflows.

From 2018 until 2025, APAC digital transfer and remittance market is actually expected to experience a Compound Annual Growth Rate (CAGR) of 24.2%.

But traditional payment channels charging fees as high as 10%

The rise of worldwide remittances is “significant” but even more astounding are the expensive services. Ripple notes,

“The Asia-Pacific (APAC) region is seeing significant growth in remittances, yet the high cost of cross border payments leaves remitters with few options.”

Here blockchain technologies have a huge part to play as they can offer a fast, smooth encounter for global payments with reliability, and transparency, that people are accustomed to and require from services like email.

The global median cost of transferring $200 was 6.84% in 3Q19, with banks charging an average fee as high as 10.34%.

There is also a high price variance by corridors, from Thailand to Vietnam, Lo PDR, and China has remittance fees exceeding 10% in 2018.

Blockchain provides a solution

Financial businesses desire a cheaper, simpler, and more effective way of processing cross-border transactions and blockchain has created a resolution.

With APAC market “ripe for digitization,” Ripple is already working and seeing much activity in the Philippines and Thai market.

Recently, the company along with Thailand’s oldest bank Siam Commercial Bank announced that they were working on enabling cross-border payments via QR codes.

Through its partner FlashFX, Ripple has opened payment channels in Mexico, the US, and the Philippines with Australia next on the list. Apart from SendFriend, MoneyGram is also using XRP to conduct transactions in Europe, Australia, and the Philippines as well to tap this growing demand in APAC region.

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Author: AnTy