What Does The Options Market Have To Say About The Bitcoin Halving?

Bitcoin reward halving is just about four months away and the market is divided on if it is already priced in or we would see sparks flying yet again.

Amidst this heating up debate, the crypto research company Skew sheds some light on this from the options market point of view.

Whether or not the halving is already priced in, it has been claimed that some volatility in the spot price should be expected around the upcoming halving scheduled on May 13. This is because the market will be making adjustments to the sharp decrease in the natural supply from miners.

The third reward halving will cut down miners’ reward from 12.5 BTC to 6.25 coins. Bitcoin’s inflation rate will also drop from the current 3.69% to 1.80%.

Kink in Implied Volatility will Determine

To determine if the event is priced in, Skew analyzes the implied volatility of the crypto asset that exhibits a “kink”. Traders it says can trade an implied move by using “option calendar spread.”

Implied volatility is the market’s prediction of a likely movement of an asset’s price which is calculated using supply/demand and time value. High implied volatility results in options with higher premiums while the lower implied volatility in lower premiums on options.

In bearish markets, implied volatility increases while in a bullish market, it decreases.

No Such Kink, At least not at the right time

The Bitcoin options market, however, finds no such kink in the implied volatility structure for the options contracts expiry in June 2020, closest and relevant to halving date.

This means the options market does not anticipate any increased volatility around the upcoming halving event.

The kink in the BTC options chart occurs in the March 2020 expiry which means the market anticipates heightened relative volatility months before the halving event, in Q1 of 2020 instead of Q2 of 2020.

If the turmoil for this event is actually anticipated by the options market, one would expect to see higher forward volatility for Q2 2020 in comparison to the rest of the forward volume curve, argues Skew.

This the company says means either the BTC options market believes the having is already priced in or it is a “very inefficient” market.

Read Original/a>
Author: AnTy

Every Top IEO Lost 80% of their Value Except One with Tremendous Gains

  • Relative to IEO offering price, four of twelve ICOs in red out of which three belong to Binance

2017 was all about Initial Coin Offerings (ICO) but that trend has been all fazed out. In Q1 of 2019, ICOs raised about $118 million, which has been more than 58 times less than the $6.9 billion raised during the same period in 2018. During this period, Security Token Offerings (STOs) saw an increase of 130%.

But the prevalent trend of 2019 as been Initial Exchange Offerings (IEOs). With ICO market down 97% in Q1 2019 (YOY), exchanges or trading platforms conducted the issuance and sale of a token.

IEOs raised $38.9 million as of April 25th with Binance as the most prolific platform. BitMEX in its first research piece on IEOs, however, has been skeptical of this in the long term.

Looks like, it may have been right.

In crypto derivative exchange’s update on the investment performance of IEO projects reveal that all eleven of those projects have declined significantly in price since May 2019.

Since May 2019, while the leading cryptocurrency Bitcoin appreciated in value, going from $5,300 in May to $13,900 in late June to back at $7,550, these IEO projects lost a good portion of their value during this period.

IEO Investment Return Since The First Exchange Traded Price

Relative to the first traded exchange price of these IEOs, their performance to date has been “poor,” with almost all the tokens down over 80%. There’s only one exception to this and that’s Matic, a Binance IEO.

The IEO price itself is normally lower than the first traded price on exchanges, which is to allow the participants to earn the quick buck as the token lists and soars. When it comes to the IEO investment return versus the offering price, the performance is more of a mixed picture.

The majority of the tokens still have fallen relative to the offering price but four of those generated positive investment returns. Three of these Bread (129.2%), Bittorrent (101.7%), and Matic with a whopping 493.2% gain belong to Binance platform while one Dos network was issued on BitMax.

Read Original/a>
Author: AnTy

Fed: ‘We Recognize The Power Of Technology And Innovation To Transform The Financial System’

An US Federal Reserve official who’s in the board of governors thinks one in four people making Bitcoin (BTC) transactions are doing something illegal.

At a panel speech that honored Benoît Coeuré, one of Europe Central Bank’s (ECB) executives, Lael Brainard talked about how she sees the risks cryptocurrencies are posing.

Brainard Thinks Crypto Exchange Security is Problematic

At the Frankfurt, Germany, Monetary Policy: The Challenges Ahead event, one panel discussion was about the illegal activity involving Bitcoin. Brainard cited one of the academic studies released earlier this year and talked about how many Bitcoin users are criminals. Lael Brainard said,

“Only a third of the most popular exchanges require ID verification and proof of address to make a deposit or withdrawal. This is troubling since a number of studies conclude that cryptocurrencies support a significant amount of illicit activity. One study estimated that more than a quarter of bitcoin users and roughly half of the bitcoin transactions, for example, are associated with illegal activity.”

There Are Misconceptions on How Bitcoin is Being Used in the Real World

Brainard’s speech did nothing but to add to the misconceptions on how the Bitcoin is being used in the real world. Studies on transactions usually arrive at all sort of opposing conclusions, with many voices saying criminals prefer cash over cryptocurrencies. Problems appear when having to determine how many Bitcoin users are out there, since a user has control over how many addresses he or she wants. Brainard decided to talk just before the European Union will impose new crypto regulations. Besides, Coeuré has also expressed criticizing opinions on Bitcoin, describing the coin as the “evil spawn of the financial crisis.”

Read Original/a>
Author: Oana Ularu

KPMG Rankings Show a Drop in Bitcoin Yet a Reinforced Cryptocurrency Innovations

KPMG, the big four auditing firm shared its 2019 companies list, Fintech100 rankings. This list contains the 100 top Fintech entities globally. According to these rankings, Bitcoin-based Company has dropped. On the other hand, payment industries have a strong showing on the rankings.

Just like it was in 2018, the Ant financial company founded by the owner of Alibaba, Jack Ma led the list. This Ant financial company controls one of China’s payment systems known as Alipay which has a value of 83 billion dollars.

JD Finance took the third position among the entities that are in both blockchain and cryptocurrency. Grab, an application for a ride company (like Uber) led the list. In Singapore, Grab is used as a payment system.

Robinhood failed to maintain its 2018’s 8th position and dropped to 14th this year. KPMG rankings have shown reinforced cryptocurrency innovations. Other blockchain-based companies that featured in the list were One Connect at 18th position, Coinbase at 34th, Banketa at 42, Liquid at 38th, and Revolut on 26th. According to Chris Wang, Partner of KPMG china,

“As fintech development continues to go strong in China, we are seeing some changes in China’s fintech landscape. Aligned with trends we observe globally, we see an increasing number of wealth, insurance and multi-sector companies in China on the list, which indicates that technologies and innovations have spread into more financial services sectors.”

Companies that appeared in the list for the first include Tokeny, Silot, Binance, Moin, and MemaPay among others.

The companies in the Fintech 100 list raised 70 billion dollars in their lifetime and 18 billion dollars in the last financial year. These companies serve customers over 2.5 billion around the world. According to KPMG, the companies in the Fintech 100 ranking have enjoyed the benefit of open banking.

Here is a snapshot of the top 50 rankings from the KPMG list:

kpmg-crypto-rankings

kpmg-crypto-rankings

kpmg-crypto-rankings

These companies have been able to improve customer banking as a result which has greatly improved their services and experience.

Read Original/a>
Author: Daniel W

If Softbank’s Yahoo Japan And LINE Merge, Will Ripple’s MoneyTap Get A Boost From SBI-PayPay?

  • MoneyTap’s app was adopted by four Japanese banks in September 2019.0
  • SBI Holdings was developed by Ripple and MoneyTap as a financial company.

Yahoo Japan by Softbank is the leader in search and shopping departments. Recent reports from CNBC reveal that the company is now launching with a leader in local messaging called Line, adding more to the many features of the Softbank Group.

While CNBC is reporting this merger as a certain thing, the official statement from Line is that the deal is still not done. Even though Softbank already has secured a majority stake in the mobile unit that Line runs in 2018, the company has recorded three quarters with massive losses, struggling to start making a profit.

Now, a recent tweet with the XRP Research Center states that it is possible for Line to take advantage of MoneyTap’s PayPay integration. The XRP Research Center watches the developing Ripple ecosystem for updates. PayPay is the e-payments app that Softbank and Yahoo already own.

SBI Holdings, a Tokyo-based financial company that was developed between MoneyTap and Ripple, recently signed a deal with PayPay. Line Pay, in the meantime, has still reached 82 million users over time, which means that Ripple’s technology could realistically be used by the two biggest payment apps that use QR code.

Even though the fifth-largest bank in Japan, Resona, has snubbed MoneyTap, the company still has managed to rise in popularity in the country. The system, which relies on the blockchain technology offered by Ripple in their bank-to-bank transfers, has already been adopted by for additional Japanese banks back in September.

SBI Holding established an alliance with Fukushima Bank on November 11th. Fukushima Bank has stated that they want to integrate MoneyTap as well to improve profitability.

Read Original/a>
Author: Krystle M

EY (Ernst & Young) Releases New OpsChain Public Finance Manager Blockchain Tool

Ernst & Young (EY), one of the Big Four auditing firms, has recently launched a new blockchain-based product, a platform that was designed to enhance the transparency of the government. According to the reports, the new platform will be called OpsChain Public Finance Manager.

This system is set to enable transparent tracking of public finances and budgets so that all citizens can view it. The service can also be used to match how much money is being spent against outcomes, which can show how effective the policies are.

One of the main goals of this system is that governments will be able to make data-driven policy decisions with more efficiency. With the data gathered by the platform, they can understand the outcome of their decisions better and create better policies.

According to EY’s official statement, blockchain technology can be important when impacting public spending. This way, public managers can focus on what they need and enhance their work by making it more transparent and accountable.

EY is already testing the product in some cities. One of them is Toronto, Canada. The system allows financial transfers between different sectors of the government and the company claims that its experiments were important to increase the transparency of the city.

Heather Taylor, the chief financial officer of Toronto, affirmed that the official os the city is constantly striving to find better technologies to meet the needs of the residents and to help them more effectively.

Read Original/a>
Author: Gabriel Machado

Bitcoin Is Stronger Than Ever, But is Investor Interest Falling? A Look at Google Trends

Bitcoin has hit its lowest point in four months now. Before you panic, though, let’s be clear: we’re not talking about price. While the prices of the token are still stable and are above $10,200 USD at the time of this report, the lows are linked to Google searches for the asset.

Data extracted from Google Trends shows that the interest in Bitcoin is going downhill. On a scale that goes from 1 to 100, Bitcoin peaked during the week that comprised June 23 to 29, reaching 100 points. This week, it has only 33 points. The last time that the asset scored so low was when it had 24 points on March 24 to 30.

The peak coincided with prices reaching $13,800 USD, but as they did not grow any higher than that, speculators and casual investors seem to be losing interest in the asset.

It has been proven that interest follows price. Whenever the price is quickly going up or when it goes down very fast, searches go up. What the token needs right now in order to get some more popular interest again is to breach the $10,000 barrier once more. Despite dipping below the value quite a few times recently, the asset has been struggling to go over it.

If more parabolic upward movement happens, it is certain that the interest would pick up. Now, if we are to believe Bitcoin analysts, we just have to wait until the next bull run is upon us.

Read Original/a>
Author: Hank Klinger

Deloitte’s Canteen to Accept Bitcoin Purchases as the Big Four Prepares for Blockchain Operations

Deloitte LLC, one of the Big four accounting firms in the world recently joined the Blockchain and Cryptocurrency wave. The firm gave hints of its intention to accommodate blockchain in operations after it allowed employees to purchase lunch via Bitcoin.

One of the firm’s partners told the Luxembourg Times in an interview that Deloitte would allow Bitcoin lunch purchases in its canteen.

Deloitte’s Future Plans in Blockchain and Bitcoin

The Big four accounting giant was keen to note through one of the partners, Laurent Collet, that it had no intentions of accepting crypto payments in the near future.

However, Deloitte’s interest in leveraging blockchain technology for operations ranging from audit functions to fund management remains a keen topic for the firm. Bitcoin has had its fair share of challenges and criticisms over the past decade, most notably the speed of transactions.

The Satoshi coin takes an average of 8.2 minutes to confirm a transaction, this is much longer than one would expect from digital currencies. Deloitte’s staff might have to wait longer than usual if they opt to pay using BTC form their mobile wallets.

However, a number of developers in the crypto space have dedicated their efforts to solve this challenge; the Lightning network is a good example that solves the inefficiency of using BTC for micropayments.

This ecosystem is a “two layer” designed to integrate central channels that enhance the speed of BTC transactions. As a result, big players like Deloitte have given blockchain and crypto technology a chance to prove its fundamental value in today’s financial services sector.

Why Blockchain But First Bitcoin?

Deloitte has emphasized that its long term goal to have a piece of the pie in Blockchain technology and not digital assets led by BTC.

The firm’s partner, Laurent Collet, said that Deloitte would study blockchain through its resources and see where the tech fits as a solution in the Luxembourg industry. In addition, the uses of blockchain are evident in Deloitte’s functions and would speed up its processes besides removing middlemen.

Read Original/a>
Author: Lujan Odera

Major Auditing Firm EY To Help Developing Fine Wine Trading Blockchain Platform for WiV

EY, one of the four largest auditing firms in the world, has recently revealed that it was hired to work on a new fine wind trading platform that uses the blockchain technology. The company in charge of the new trading platform, WiV Technology, is set to let its clients trade premium wine.

With the help of this blockchain-based platform, traders would be able to certify the authenticity of the wine and determine its origin.

The company has affirmed that smart contracts will be used on the platform in order to help to determine the ownership of several goods and their transactions history as well. The properties of each wine will be able all stored on the blockchain and can be easily accessed with the help of the QR code.

The CEO of Wiv Technology, a man named Tommy Nordam Jensen, affirmed that this will make fine wine trading considerably less expensive. Investors will be able to trade it for only a fraction of the original cost this way.

Normally, large paperwork is needed in order to prove that a bottle of wine is, in fact, valuable without needing to open it first. The blockchain is a major help because it lets the investors trade without having to go through a huge process.

EY will be responsible for helping the company to determine the quality of blockchain technology and to help in enhancing the process.

Read Original/a>
Author: Bitcoin Exchange Guide News Team

Will the Price of Bitcoin in USD Value Stop at $20,000 This Cycle? Here’s Four Catalysts for New Highs

Will the Price of Bitcoin in USD Value Stop at $20,000 This Cycle? Here's Four Catalysts for New Highs

Bitcoin is not Just Stopping at $20,000 This Time – Here are Four Reasons Why

This month has seen the abrupt and very welcome surge of Bitcoin’s value over this year, and its price continues to set itself new yearly highs in stark contrast to the less than impressive displays over the previous year.

While we are seeing an impressive rise in Bitcoin’s value year on year, the question that is taking the front seat in the minds of investors and enthusiasts of all kinds, is whether this bullish upswing is different to the surge that took place in late 2017.

The best way for us to understand whether or not this is, in fact, different, we need to take a close look at why this market rally is well and truly different compared to the investment ‘bubble’ that was 2017.

What a good number of experts and analysts point out is that bitcoin has currently been pushing about the key upper and psychological $10,000 price mark. This push above the $10k point brings with it the prospect of triggering a broader feeling of FOMO (or the Fear of Missing Out), according to experts like Tom Lee of Fundstrat. Lee himself goes on to add that Bitcoin, as a result of this fact, that Bitcoin is now in a position to take out some of its all-time high price points.

This is not a uniform opinion among market analysts and investors, however. Others, like Tone Vays is among those that disagree with this theory, he argues the following:

“I actually don’t think it’s important at all. The $10,000 benchmark did nothing to slow down price back in 2017. And it looks like it did nothing to slow down the prices here in 2019.”

With the Bitcoin Bus Heading Uphill – Who’s in the Driver’s Seat? Institutions

While one of the main drivers for the massive bullish uptick of 2017 for Bitcoin was attributable, to a large extent, the interest of retail companies and investors, allowing for the upswing of its value to $20,000 – the same is not the case for this uptick, however.

This time, the very same public and retail investors have pretty much been sitting on the sidelines instead of putting themselves back into the game, according to Google Trends.

The most prominent example of this that we’ve seen is from the number of Google searches related to Bitcoin, or cryptocurrencies; both of which are only around 10 percent of what they were in contrast with the public hype of 2017.

To put this another way, while momentum has picked up for Bitcoin’s value, there has yet to be any clear feeling of FOMO among the same retail investors that drove the bullish trend this year. This factor may suggest that the price of Bitcoin has the potential to rise far higher than in 2017.

While this is one strong theory, the other perspective is that institutional demand for Bitcoin has increased dramatically.

According to developments from June 17th of this year, there was some very open interest from the CME Group, which saw the creation of more than 5,311 contracts worth a total of more than 26,555 BTC, translating to more than $246 million – which dwarfed the volumes seen during the bullish upswing of 2017, even at its peak.

“CME Bitcoin futures (BTC) shows growing signs of institutional interest,” according to the CME Group during the same week through its Twitter feed.

“BTC open interest rose by a record 643 contracts in a single day, establishing a new all-time high of 5,311 contracts on June 17 (26,555 equivalent bitcoin; ~$250M notional).”

There have been some other indicators seen within the institutional market – these include the GBTC price premium, which, along with the charted record volume for Bitcoin-based derivatives within the exchange – BitMEX (this weekend). Both of these suggest that there is a larger deal of ‘Smart Money’ entering the crypto ecosystem.

Better Than Ever Before – Network Fundamentals

Along with the side-lining of retail investment, along with the increasing level of institutional investment, there have been other attributes that we can look to as indicators that Bitcoin is on a different trajectory.

One of these is the report from this week that Hash rates from Bitcoin have since reached an all time high, totalling more than 65 million TeraHashes Per Second (TH/s). So what does this mean, exactly? Bitcoin is proving to be more secure than it ever has been and, in order to actually influence the network – entities would need an ungodly amount of power in terms of computational power in order to get away with it.

In the meantime, other fundamentals have developed in conjunction with the increasing hash rate of Bitcoin. Some of these include the Daily on-chain transaction volumes, the relative block size, height, weight and number of transactions within each of these blocks. These are also confirming that there are far more people than ever before making use of Bitcoin.

Along with these attributes, the networks transaction fees, in contrast with the levels seen during 2017 between users, have remained comparably low over 2019. We can thank innovations such as off-chain, layer-2 scaling solutions such as the Lightning Network being used in order to ease congestion, along with SegWit and Merkle Trees in order to optimize the network overall.

11 Months Away From Bitcoin Reward Halving

The current upswing in Bitcoin to five figures is taking place with a long time before the next halving of Bitcoin mining rewards takes place – the latter of which is scheduled to happen during May 2020.

With this taking place, any mining block rewards will be cut from 12.5 Bitcoin to 6.25, reducing the underlying number of Bitcoin being minted by the miners of the community – who are commonly the biggest market sellers.

One of the interesting facts is that – during the last halving event within Bitcoin, which occured during the summer of 2016 – this was more than one year before the price of Bitcoin surged upwards. What makes this time different is that the pairing of BTC to USD is headlining this bullish event, with the halving event still under one year away.

PlanB, who is one of the more well known analysts of the Bitcoin market has since suggested that investors could be waiting around until the expected reduction in supply that will coincide with the halving of Bitcoin rewards in May 2020. PlanB goes on to further add –

“Front running would be in line with Efficient Market Hypothesis: if you believe S2F and that BTC will be $50k May 2020, why wait?”

Looking at the Macroeconomics for Bitcoin

When it comes to the day to day movements of Bitcoin, these developments aren’t exactly as critical to pay attention to if you’re a low time preference investor, or in it for the long-haul. These same ‘Hodler’ types have a good degree of confidence in Bitcoin and its potential to go higher.

These Hodlers point to its intrinsic fixed supply of Bitcoin over time as a way in which it will prove able to outperform conventional supply and demand fiat currencies – with their relative volumes of supply increasing at a far faster pace now in contrast to just decades ago.

According to reports out of the European Central Bank in June 18th, the head of the institution – Mario Draghi dropped hints that, in light of a still sluggishly performing Eurozone economy – that a monetary stimulus package may be in the works. Draghi’s hints represent a more dovish tone that has since been met with a great deal of positivity by the financial districts of the European Union.

At the same time, however, Draghi has since been criticized by the President of the United States – Donald Trump. The US President arguing that this move by the central bank of the EU would spark an unfair level of competition against the United States – the latter of which has put pressure on the United States Federal Reserve to hold off on any push to raise interest rates.

Anthony Pompliano, one of the co-founders of the financial institutions – Morgan Creek, has since stated that this economic state of affairs and respective macroeconomic instability would make Bitcoin an even more scarce resource, especially as interest rates go lower and more fiat currency is created and issued.

“Cut rates. Print money. Make BTC more scarce. Long Bitcoin, Short the Bankers!”

Generally speaking, the macroeconomic landscape for Bitcoin and its associated investors is looking very bright. Especially as more and more investors, on an individual and institutional level, are scrapping the now depreciating fiat currencies in order to pour more assets into Bitcoin as a hedge against economic uncertainty.

In addition to this, investors of all kinds are starting to broadly see that the supply of Bitcoin is itself fixed and wholly transparent. But, along with these factors – it is a wholly neutral, open-access money that has no centralized system of authority that can control it.

To put this in a different way – what the first and later iterations of the internet did to the concept of information, Bitcoin is starting to do with the world of money.

The historic market cycles encountered within Bitcoin, the rising level of interest from institutional investors, along with increasingly durable network fundamentals, along with the confirmation of the depreciating nature of fiat currencies, all of these have the potential to push the price of Bitcoin to a scale that has never before seen – exceeding even the levels seen within 2017.

Bitcoin’s price is $10,825.14 BTC/USD exchange rate today. The real-time BTC market cap of $192.43 Billion currently ranks #1 with a chart dominance at 59.11%, daily trading volume of $7.85 Billion and live coin value change of BTC 1.23 in the last 24 hours.

Live Bitcoin (BTC) Price:

1 BTC/USD =$10,825.1370 change ~ 1.23%

Coin Market Cap

$192.43 Billion

24 Hour Volume

$7.85 Billion

24 Hour VWAP

$10.8 K

24 Hour Change

$133.0000

“}” data-sheets-userformat=”{“2″:14849,”3”:{“1″:0},”12″:0,”14″:[null,2,0],”15″:”Open Sans”,”16″:11}”>Bitcoin’s price is $10,825.14 BTC/USD exchange rate today. The real-time BTC market cap of $192.43 Billion currently ranks #1 with a chart dominance at 59.11%, daily trading volume of $7.85 Billion and live coin value change of BTC 1.23 in the last 24 hours.

“}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12”:0}”>All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

Read Original/a>
Author: James Fox