Bitcoin to Follow the Equities Market; One-Month Correlation Spikes to an All-Time High

Yet another week of weak price movement.

The world’s leading digital asset is trading at $9,072, in red with 24 hours ‘real’ volume of just $624 million.

Meanwhile, altcoins, especially the low cap ones, are enjoying a good uptrend. Among the top altcoins, Cardano is leading the rally with about 6% gains.

Among the top 100 cryptocurrencies, some of the top gainers include REN (17.19%), Loopring (16.95%), Nexo (11.18%), Augur (10.93), ZRX (10.76), Status (9.3%), VeChain (8.42%), Enjin Coin (7.89%), OMG Network (6.92%), and Maker (5.88%).

The market in Anemic State

With a downside move on Thursday, the price of bitcoin bounced from June 27 low, and the hourly chart with a long wick candlestick indicates “the short-selling is not sustainable.”

According to the In/Out of the Money Around Price (IOMAP) indicators by IntoTheBlock, more than 2.1 million addresses previously purchased 1.38 million BTC in the range of $9,095 and $9,365, which is “a critical resistance level as several of these addresses will attempt to break-even on their positions.”

When it comes to the support levels, over 1 million addresses previously purchased 705,000 BTC between $8,805 and $9,076. Holders in this range will “attempt to remain profitable on their positions and push prices above this level.”

As such, buyers are expected to create support near the $8,900 range and sellers to provide resistance around $9,200.

Meanwhile, for trader DonAlt, a close above $9,500, bitcoin could be expected to move over $10,500; otherwise, he’s looking for $8,500 first and then lower to $7,700.

However, the market remains “boring” and “could stay that way for a while,” he said.

Follow the Equities Market?

Due to the Independence Day holiday on July 4, the US stock market was closed today before the S&P 500 rose for the fourth straight day and closed at a 4% weekly gain. The improving job market has the hopes for economic recovery rising that has the equities market up about 7% of the record set in February after about a 34% drop.

“We’re starting to see the real economic data say, ‘Yes, the recovery is here, and it’s real,’” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

The biggest risk to the markets currently is the return of panic we saw in March.

“Legacy markets, however, are rejected at breakout point resistance and “breakdown from these levels would be most logical,” said trader Crypto Yoda.

Now that the trendline is broken and retested on lower time frames, the trader is also expecting bitcoin to follow.

Bitcoin’s 1-month correlation with the S&P 500 provides support to this. The correlation hit a new high of 65.8% this month, as per Skew, which began tracking the data in April 2018. The one-year correlation has also jumped to an ATH above 37%, but reading between 30% to 50% implies a weak correlation.

This means bitcoin continues to be treated like a risk-on asset, but in the current scenario of money printing, this could be a blessing in disguise.

HODLers gonna HODL

HODLers meanwhile are busy holding the digital asset. The number of addresses that are storing bitcoin for at least a year has risen to a peak of 20.3 million in June.

Bitcoin investors believe the flagship cryptocurrency should have a higher value.

Interestingly, bitcoin miners‘ balance is also rising. 1.8 million BTC, about 10% of bitcoin supply is currently held in miner wallets.

But out of this 1.73 million BTC belong to very early miners, and are likely to be lost, as such only 70k BTC is with current mining pools, noted Glassnode.

Miners’ cumulative revenue has also reached $17.5 billion on July 2nd, as per Thermocap, a metric used as a lower bound for the capital inflow into an asset.

Since 2018, while Bitcoin’s Thermocap has been $12.6 billion, Ethereum recorded $4.9 billion, Litecoin $932 million, and Bitcoin Cash $810 million.

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Author: AnTy

Bitcoin Price Dullness Reflects in Difficulty that Records its Lowest Drop Since 2010

For the past two months, the price of bitcoin has been stuck in a range of $8,500 and $10,000. The leading cryptocurrency has been boring for some weeks now, with ‘real’ volume at extremely low levels, going below $1 billion.

However, it’s not just bitcoin, most of the major asset prices have been dull as well.

“Most major asset prices (my emphasis is on EM) are currently within a fairly narrow range relative to their pre-COVID 12-month averages,” said Natalia Gurushina, an economist at VanEck. “There are two big exceptions: EMFX and Gold.”

Move BTC Move

Since yesterday, however, the digital asset has been recording slight gains, going to nearly $9,300 before dropping back down to almost $9k flat. Today’s earlier gains came along with US stocks which are extending their greens as jobs in the country increased by 4.8 million in June, higher than the estimated 2.9 million. This helped bring the unemployment rate down to 11.1%.

“Payrolls even managed to move this tired dog,” commented trader and economist Alex Kruger about bitcoin’s movement.

Still, Bitcoin had a “strong” quarter 2 with 42% returns and closed at $9,150, making it the third-best quarterly close in the digital asset’s short history.

This has been despite June being an extremely slow month for Bitcoin, ending the month about 8.5% lower. The last month, however, proved to be a good one for small-cap cryptocurrencies while large and mid-cap indices followed Bitcoin.

“The year started out incredibly strong, but the party came to a sudden halt as corona shook the markets. Despite the sharp corona sell-off, all indices sits comfortably in the green, with BTC being the worst performer at +27% YTD,” noted Arcane Research.

Ya Boring

It’s not only the price that is boring, but so is the mining difficulty. Amidst the low volatility, bitcoin difficulty posted its smallest percentage change in a decade, it was last seen in March 2010.

A mere 0.0033% drop saw the bitcoin mining difficulty going from 15.7847 trillion to 15.7842.

Bitcoin difficulty that measures how hard it is to mine bitcoin, adjusts every 2,016 blocks, roughly every two weeks based on the total computing power participating in the network.

Network hashrate meanwhile hovers around 100 Th/s since the beginning of last month. This slowdown in hashrate growth may continue, says bitcoin mining pool, F2Pool, because “many of the large hardware orders reported recently won’t deliver until late in the summer.”

“With a relatively stable BTC price, daily mining revenue per TH/s also sees little change. Each day you can earn around $0.075 per terahash for your contribution to secure the Bitcoin network,” stated F2Pool.

“With such little change in the past two weeks, it means every new-gen machine is profitable at both $0.03 and $0.05/kWh.”

It’s Moving!

Not the price but the network.

From price to network fundamentals all have been dull and boring for quite some time but the on-chain activity on bitcoin today brought some enthusiasm with it.

Hourly new bitcoin addresses hit a 2-year high and hourly active addresses 1-year high. Hourly transaction count also hit a 10-month high while hourly spent outputs with a lifespan 24 hours reached an all-time high, noted Rafael Schultze-Kraft CTO at Glassnode.

Bitcoin price, volume, and social activity might not be doing much but some network activities are showing promising growth, not to forget all the accumulation by the retail and increasing interest from institutions.

Also, trader Bob Loukas says, “The July bitcoin Cycle low is slowly coming into focus. Continued consolidation is very bullish action.”

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Author: AnTy

Binance Lists DigiByte (DGB) with ‘0 BNB’ Fee; “Big Win for the Future of True Decentralization”

Today, leading spot cryptocurrency exchange Binance announced that it is listing DigiByte (DBT) for “0 BNB.”

Trading for DGB/BTC, DGB/BNB, and DGB/BUSD pairs will be opened at 2:00 PM (UTC) on June 22nd, 2020.

“You asked for it, we listened. Had to filter through “some noise” on this one, lol. It would have happened sooner otherwise,” said Binance CEO Changpeng Zhao “CZ” about the listing.

In response to the listing, the price of DGB jumped 40% and is currently trading at $0.0217. The 34th largest cryptocurrency by market cap of $290 million is up 300% YTD but still down 85% from its all-time high.

Source: TradingView

DigiByte founder Jared Tate called this a “big win or everyone & the future of truly decentralized blockchain Tech.” He added,

“To my surprise & many others Binance freely listed DigiByte w/o any requests/ stipulations just as any exchange can do. No permission required. Thank you CZ, Binance team & DGB fam!”

DigiByte-twitter

Looks like Tate would be burying the hatchet now that DGB is listed on Binance after being in a months-long feud with Binance and CZ.

Just as recently as December, Tate has called CZ a “crook” along with Tron co-founder and CEO Justin Sun who acquired the cryptocurrency exchange Poloniex which then threatened to delist the cryptocurrency.

This feud first started in September when Tate took to Twitter to accuse Binance’s team of asking him $300,000 and 3% of all DGB to list the digital currency. But now, with “0 BNB” fees DGB is available for all the retail and institutional investors of Binance.

However, some are still questioning Binance’s move as the listing came just over a month after Tate announced that he is stepping down from handling the daily operations while accusing the crypto community of becoming “co-opted [and] eroded by greed.”

“Every day I see this tech being used to enrich the few at the expense of the long term good of the many,” he said at that time. He also warned that “the centralization of this industry will be its undoing if we let it.”

Ambroid-twitter-dgb-binance

“Was there pushback from Binance side towards the rest of the DGB team/inner circle? This might have been another hidden power move that shows how much influence Binance has over the cryptos listed on there,” questioned one Twitter user.

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Author: AnTy

Bitmain Losing its Market Share as Customer Base Moves More and More Out of China

  • MicroBT eating into Bitmain’s lead, having a share of 35% in 2019
  • Bitmain still leading in energy efficiency with its brand new Antminer S19 Pro followed by MicroBT’s Whatsminer M30S++, Canaan Avalon 1146 pro, and Ebang

“Competition has tightened within the ASIC manufacturing industry,” stated BitMEX in its latest research report noticing the presence of big players like Bitmain, Canaan, Ebang, and MicroBT.

According to the report, post halving, both the ASIC manufacturing and mining farm operating sector will consolidate further.

Meanwhile, China which is still dominant in ASIC manufacturing has already started losing share in the mining farm operator business to Europe and North America.

“The customer base is moving more and more out of China,” said MicroBT marketing manager Elsa Zhao. The average customer size is also growing considerably but instead of longer small businesses or individuals, they are now larger funds, he said.

The Race to Lead

In late 2012 to early 2013, Butterfly Labs was leading the bitcoin mining industry but after it was shut down on the request of the US courts, it left Avalon as the market leader.

However, from 2015 to 2018, it was Bitmain who had the dominant position with the most efficient products.

“At the height of Bitmain’s power during the 2017 bull market, its market share was around 75%.”

The largest bitcoin mining manufacturer Bitmain’s dominance has been reducing, significantly so in the last 18 months or so. The largest player in the space is currently going through a power struggle between the company co-founders Micree Zhan and Jihan Wu.

Amidst the increasing competition, MicroBT is the one gaining traction and eating into Bitmain’s lead, having a share of 35% in 2019.

Relatively new to space, the company is founded by the former director of design at Bitmain which completed a round of financing in January 2019 at a valuation of $700 million.

The IPO Failures

Bitmain unsuccessfully attempted to IPO in 2018 but it remains on their agenda, however, BitMEX cautioned,

“it seems almost impossible to imagine Bitmain conducting a successful IPO until the above management difficulties have been resolved.”

Canaan however, did have a successful IPO and is the first Bitcoin ASIC manufacturer to market it to the public markets. But it’s performance has been extremely bad since the IPO, generating a full-year net loss of US$149.8 million in 2019. Canaan attributed these losses to COVID-19 but,

“going forward it may be challenging for the company to regain trust from investors following on from the write-down so shortly after the IPO.”

CAN shares are down 77% since the IPO while Bitcoin price is up 17% during the same period.

Just like Canaan, Chinese ASIC manufacturer Ebang is struggling with declining sales and inventory write-down driving losses. The company has also filed for an IPO in the US after a previous failed attempt to list in Hong Kong. The risk here, however, is lower.

Product Strength

When it comes to technology, Bitmain lost its lead in energy efficiency as well in the last year or so. MicroBT’s products have been more efficient than bitcoin, with the Whatsminer M30S++ operating at around 31 J/TH. However, it is marginally behind Bitmain’s brand new Antminer S19 Pro product at 30 J/TH.

Meanwhile, Canaan might release its 5-nanometer products in the market by 2021. In its quarterly report, it also mentioned the new Avalon 1146 pro, which will have an efficiency of 42 J/TH, compared to the currently on sale Avalon A1166 at 47J/TH. The new product, however, would still place it behind MicroBT and Bitmain.

Ebang’s latest product has an efficiency of about 57 J/TH, ranking it behind all of the other three players.

According to BitMEX, the lifespan of ASIC mining machines is likely to extend considerably.

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Author: AnTy

ConsenSys Codefi Staking Service Launches Institutional Testing Ahead of Ethereum 2.0 Launch

Binance and Huobi exchange are part of a six-institution team selected by leading Ethereum developer, ConsenSys, to test the upcoming ETH 2.0 staking service. The testing period will allow the developers to find the best iterations to enable the institutions to successfully conduct staking on Ethereum’s upcoming upgrade.

ConsenSys launches testing for Codefi Staking

ConsenSys backed, Codefi Staking project announced the release of its first ETH 2.0 staking-as-a-service platform to six institutions including Binance, Crypto.com, Huobi Wallet, Trustology, MaxiPort, and DARMA Capital. This is the first release of its kind with the platforms expected to return feedback on several components during the testing phase.

ConsenSys developers, led by enterprise-focused, PegaSys, built the Codefi Staking platform coding in Java programming language using Teku.

Speaking on the launch of the test phase, Tim Lowe, the project manager of the Codefi staking platform, expects feedback on users’ responses on the payments of rewards on the amount staked in ETH or fiat fee, custodial services’ security protocols once the ETH 2.0 proof-of-stake (PoS) launches, and finally the ease of API integration on the platform.

‘Enterprise focused platform’

The Codefi Staking platform is focused on providing a powerful ETH 2.0 staking platform to blockchain-based enterprises such as exchanges, custodial services, hedge funds, etc. Lowe believes ETH 2.0 holds a lot of potential, given the current demand for such services. Lowe said,

“I think anybody who is holding any crypto assets and is aware of Ethereum generally is starting to look at Eth 2.0 and staking. It’s still early but the interest is there across the board.”

The pricing is yet to be set for the institutions waiting to use the platform as a SaaS, Time Lowe said. However, the price will not be their selling point, Lowe explained;

“From a staking point of view, we are not going to be the cheapest, but we’re also not going to be the most expensive.”

Is Custodial staking good for users?

Codefi’s platform focuses on exchanges and custodians but some sections of the community believe better options are available. Binance currently offers staking services for a number of PoS coins including Tezos, Algorand, and Cosmos without the need to own a whole node.

The Codefi staking service is only focused on Ethereum staking, Changpeng “CZ” Zhao, Binance founder said. He hopes to replicate the user-friendly features on its staking such as “low fee staking or minimum staking amounts” into Ethereum staking. Speaking on Codefi’s test phase CZ said,

“Users deserve the rewards that their coins can earn them. With the eventual launch of Ethereum 2.0, we are excited to support staking for all of our ETH holders on Binance.”

Exchanges and custodians offer users a direct gateway into staking while allowing the use of assets to trade and transact without affecting the staking rewards.

Mirko Schmiedl, founder and CEO of Staking Rewards, however, holds a negative view on leaving the exchanges to fully control your staking. In addition to not having control over the governance decisions, “it’s not possible to store a staked asset on Binance and then use it as collateral in BlockFi or Maker to take out a loan,” Mirko said.

This increases the centralization of power over certain blockchains to exchanges beating the purpose of PoS governance systems.

‘Codefi staking rewards to come in two years’

Codefi Staking will be integrated into Ethereum’s “intermediate phase” allowing users to earn staking rewards before the official launch of ETH 2.0.

As the Eth 2.0 is in preparation to launch, an intermediate phase (“ETH 1.5”) will be adopted to ease the transition from the Ethereum 1.x version as the PoS system cannot be directly compatible with the old proof of work system. This phase of moving from ETH 1.x to ETH 2.0 will take approximately two years.

The rewards gained during the intermediate phase will be accessible to the users only upon the launch of the Ethereum PoS network.

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Author: Lujan Odera

Bitcoin Pops Up on More QE But No Reason to be Overly Bullish Yet

After falling below $9,000, Bitcoin is back to hovering around $9,500. The leading cryptocurrency has been trading in this range since early May and continues still but on low volume.

The Commitment of Traders (COT) report doesn’t paint a good picture with CME Dealers net short, the bias actually increased by 35% last week, the biggest exposure the sell-side had.

But these gains came in line with the US stocks market after the Federal Reserve said on Monday that it will start buying individual corporate bonds. Although nothing new, markets went wild with FOMO (Fear of Missing Out).

Unlimited QE

The Fed has already committed to prolonged use of QE which “may represent a major turning point for the US Dollar,” said Koyfin. Currently, sitting on medium-term support, if DXY breaks below, it would likely be the start of a downtrend.

This suggests future outperformance of Technology, Materials, Energy, and Industrials, emerging markets, and bitcoin.

San Francisco Federal Reserve President Mary Daly in turn called on fiscal policymakers to boost spending on education, healthcare, and digital infrastructure.

“Much more will be needed in order to build a strong economic foundation that will allow a full recovery and sustained expansion,” Daly said.

There are also reports that President Donal Trump’s administration is preparing for a $1 trillion infrastructure proposal.

Bitcoin pumped in response with added support from Bank of Japan’s decision to pump $1 trillion to combat the effects of the pandemic.

On Monday, the markets were driven by the fear of the second wave of coronavirus. But today, Bitcoin is yet again back to trading like a stock as equity volatility spikes.

Bitcoin is consolidating

Stocks might have jumped higher but according to analyst Benjamin Blunts, S&P 500 and other equities had a “5 wave decline on 4h,” which “indicates the start of a larger pullback.”

Now, that bitcoin is correlating with risky assets again, although it is not expected to last forever, “a 5 wave decline on equities does not bode well for BTC in the next few weeks.”

Analyst Rekt Capital believes currently there is no reason to be overly bullish until bitcoin breaks above $9,800 on the weekly and overly bearish until we break below $8,700.

Bitcoin ranging isn’t anything new either, historically, there has been a lot of consolidation after every halving and this time is no different.

“This is the 7th week that Bitcoin has been consolidating within a $8700 – $9650 range,” noted the analyst.

Bloomberg has already made a call for bitcoin to target $20,000 this year. But the more important thing here is the fact that Bloomberg has now made this data available to over 300,000 Bloomberg Terminal users and now those institutional investors don’t have the excuse to ignore this asset class anymore, said Arca CIO, Jeff Dorman.

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Author: AnTy

Bitcoin Will Hit $150,000 & 5 Altcoins Will Rally in Next Bull Run: Predicts BlockFyre Founder

The world’s leading digital currency is currently trading around $9,700, still down 51% from its all-time high of $20,000.

But according to Simon Dedic, co-founder of Blockfyre, a crypto market research firm, bitcoin will rally 1,445% in the next bull run.

Dedic predicts $150,000 as bitcoin’s top, which isn’t the most outrageous one in the market. There have been popular calls of $100k by the end of 2021, $250k/$288k/$400k in the coming three to five years, and even a million in the future.

Interestingly, bitcoin had its third halving last month and historically, it has led the rallies. Amidst this, institutional adoption is strong with big names like Paul Tudor Jones also jumping in.

Bitcoin will rule the market, no doubt, but there are some altcoins as well that the venture capitalist is looking forward to in the next bull run.

Which altcoins will pump?

According to him, this bull rally won’t be like 2017 when one could have bought any altcoin and it would have been a good investment.

“This won’t happen again,” he said. But he still believes the bull rally will be here for altcoins and a few solid altcoins will see the pump.

Among the high market capitalization cryptocurrencies, Dedic has some really high price forecasts for Ethereum.

The second-largest cryptocurrency is already enjoying a rally for the past few weeks, with staking coming soon. It is also the base of the popular Decentralized finance (DeFi) ecosystem. Many are expecting Ether to outperform bitcoin.

Currently trading at $240, he expects it to hit $9,000, an uptrend of 3,650% much higher than Bitcoin just like in the 2017 bull rally.

Two of his altcoins are the hottest coins of the market, Tezos (XTZ) and Chainlink (LINK).

While Tezos is already up 120% YTD, LINK recorded 134% gains. Dedic sees both Tezos and LINK skyrocketing to $200 but while it is an increase of a whopping 6,723% for XTZ, it’s 4,455% for Chainlink.

BNB, the native coin of leading spot crypto exchange Binance, is also part of his altcoin to rally list which according to him can spike 2,840% to $500.

The most surprising addition to this list is VeChainThor, which he sees making the biggest percent of increase – more than 13,000%. VET is currently trading at $0.0075 and still down 73% from its ATH which according to Dedic could make its way to $1.

And the reason for the same is, “They continue to kill it and at some point, they will be rewarded.”

However, he did say that there needs to be “an improvement of the dual token system” because “VTHO isn’t optimal” and “it would be more beneficial for VET holders if VTHO wouldn’t be infinite and thus more precious.”

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Author: AnTy

2018 Pentagon War Game Distributes Bitcoin to ‘Worthy Recipients’ In Mid-2020’s Protest

A Pentagon war game from 2018 for Generation Z used the world’s leading digital currency Bitcoin to distribute funds to “worthy recipients,” reported The Intercept.

The Pentagon war game called the 2018 Join Land, Air, and Sea Strategic Special Program (JLASS) involves discontent Generation Z, those born after 1996, launch a “Zbellion” in America in the mid-2020s.

Zbellion plot, however, was just one of the parts of the war game. JLASS 2018 also featured Islamist militants in Africa, anti-capitalist extremists, and ISIS successors.

Conducted by students and faculty from the US military war colleges, the war game covers the future through early 2028. It intends “to reflect a plausible depiction of major trends and influences in the world regions,” reads over 200 pages long documents.

The Plot

According to the scenario, the 9/11 terrorist attacks and the Great Recession have influenced the attitudes of Gen Z. Having lived through these events as part of their childhood, they are least likely to believe in the “American Dream” and feel the “system is rigged” against them. Gen Z actually prefers person-to-person contact to online interaction.

In early 2025, the dissatisfied Zoomers launch a protest movement. A group known as Zbellion begins a “global cyber campaign to expose injustice and corruption and to support causes it deem[s] beneficial.”

Starting with Seattle, the movement first spread in the US; New York City, Washington, Los Angeles, and Austin; then all over the world — Europe, cities throughout Africa, Asia, and the Middle East.

Zbellion’s would-be members are ordered to siphon funds from corporations, financial institutions, and nonprofits that support “the establishment” through sophisticated malware accessed on the dark web.

The gains are then converted to bitcoin and distributed to “worthy recipients” including the members who claim financial need. This wealth distribution is assured by the Zbellion leadership to be untraceable by law enforcement. It is also “ultimately justifiable,” because targets are selected based on the “secure polling” of “network delegates.”

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Author: AnTy

‘Big Buys’ on Bitfinex Exchange has Bitcoin Trading at a Premium

The world’s leading cryptocurrency shot past $10,000 yesterday in a strong move only to fall to $9,150 on Bitfinex and $8,600 on BitMEX in a sudden drop.

Bitcoin has officially failed at yet another attempt to take over $10,000. Currently, BTC/USD is trading just under $9,500 with 1.21% loss.

Following the spike in bitcoin price earlier in the day, a ”very strange” movement occurred on cryptocurrency exchange Bitfinex that has BTC trading at a $40 premium to the rest of the market.

This “peculiar price action” was accompanied by more than 3,500 BTC, $35 million volume in the 10 minutes candle, observed Coin Metrics.

“We’ve seen some big buys on Finex since the spike. Especially the second green candle is only on us (some users entered hard in the market…) Spreads super tight,” said Paolo Ardoino, CTO at Bitfinex and Tether.

“Felt a bit like “let me fkn enter now!,” said Ardoino about over a million dollar worth of bitcoin buy orders on the exchange

This premium has now almost completely disappeared with bitcoin now trading on Bitfinex at $9,490, $9,480 on Bitstamp, $9,477 on Coinbase, and $9,470 on BitMEX, at the time of writing.

Founded in 2012, Bitfinex offers both a spot trading exchange and an OTC market.

Bitfinex is a sister company of Tether that issues the stablecoin USDT which has been accused of manipulating BTC price in the past and is fighting a lawsuit over that.

Both Bitfinex and Tether are also being probed by the New York Attorney General (NYAG) over an alleged $850 million fraud.

It is also the exchange that has seen the biggest exodus of bitcoin from its platform. Since the March sell-off, a whopping 66.6%, 133,000 BTC has been moved out of Bitfinex.

Crypto derivatives platform BitMEX comes second at 35.6%, 105 BTC, and then Huobi with 24.6% decline in BTC balance.

This could be because investors are choosing to hold their bitcoin but in the case of Bitfinex, it’s BTC balance has been dropping long before the Black Thursday. As a matter of fact, when the March sell-off occurred, the amount of bitcoin stored on the exchange had already dropped more than 47% from its highest point in December 2018.

Besides BTC balance, Bitfinex’s web traffic has also declined by 23% in April.

The exchange, however, is the third-largest exchange in terms of US dollar volume at $0.086 billion following Coinbase and Bitstamp.

Source: CoinMetrics

Coin Metrics found that 90% of the dollar quoted spot market volume is concentrated in the top four exchanges, Coinbase, Bitstamp, Bitfinex, and Kraken.

However, unlike Coinbase that goes off online repeatedly even on 5% moves as it did yesterday, Bitfinex hasn’t reported any such behavior.

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Author: AnTy

Crypto Data Firm, CoinMarketCap, Rolls Out ‘Confidence’ Indicator For Ranking Algorithm

  • Leading crypto data aggregator, Coinmarketcap.com, introduces new metric systems on the platform to combat fake volume data from exchanges.
  • The release on the changes on the platform also includes a new default ranking system for market pairings on the platform.

In an announcement released on Friday, May 29, 2020, CoinMarketCap announced new changes to its metrics and market pairing ranking systems in a bid to chaff out exchanges presenting fake volumes. The new system, however, is facing major criticism from the community who claim the changes favor its parent company, Binance exchange.

Studies on cryptocurrency exchanges have found that over 90% of the trading volume reported by the platforms is fake. In a bid to combat the reporting of fake volume, Today, CoinMarketCap announced the “Confidence metric” that aims to “determine if the volumes reported by exchanges are inflated, and to what extent”.

Coinmarketcap introduces new market pairing metric

Following the launch of the #RoastCMC campaign that saw the community critic and make fun of the aggregator, the company has started to take steps towards a better platform. The platform will introduce new metric systems on the market pairings using an algorithm built including the Liquidity Score, the recently added web traffic, and the volume of each pairing.

Previously, the system only used the volume, which enticed some exchanges to inflate volumes on some of their pairs.

While the current system is expected to boost the credibility of the market pairs listings on the platform, there are concerns on Binance role in the latest changes.

Is CMC favoring Binance?

Since the reported $400 million acquisition sale of CMC to Binance exchange a number of analysts have criticized the independence of the data aggregator. The addition of the web traffic factor in the metric system tilts the favor to Binance exchange, which topped the rankings as soon as the factor was added.

Changpeng ‘CZ’ Zhao however, came forward claiming the latest changes on the crypto data platform is set to provide a short term solution for the platform.

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Author: Lujan Odera