BitMEX Aims to Achieve ‘Near-Zero Downtime’ with ‘Aggressive’ Hiring After Major Outage

BitMEX has released the postmortem of the downtime it suffered on May 19 ensuring that “at no point during this event were any customer funds at risk,” and that no liquidations occurred while the exchange was offline.

The event resulted in 38,437 cancel-order instructions just 17 minutes before the resuming full functionality of the platform. Also, all the pending and new customer withdrawals were processed within 90 minutes of coming back online.

Working on improvements

As per its report, the exchange’s trading engine server “unexpectedly restarted” because of underlying hardware issues, which took the platform offline. After being recovered partially, it restarted a second time prompting the team to trigger a recovery procedure that utilized a new failover mechanism introduced earlier this year.

The whole ordeal took less than 2 hours while withdrawal wasn’t processed until an hour and a half after the trading resume successfully.

The crypto derivatives platform says it is taking steps to minimize the risk of any downtime which involves making architectural improvements so that the impact of hardware/software failures on the platform is reduced.

They have already replaced the technology behind its primary database that improves recovery times 4x and opens opportunities to scale it 15x over the next few months.

BitMEX is also growing its teams “aggressively” with most of its positions that involve data engineer, developer, analysts, and AML operations managers among others for primarily Hong Kong, Singapore, and San Francisco locations.

Trying to live up to the expectations

BitMEX’s market share has been declining ever since the March sell-off when the crypto derivatives platform reportedly suffered two DoS attacks and the price of bitcoin went down to $3,600 on it and could have crashed to zero, compared to $3,800 on other exchanges.

But still when BitMEX that offers 100x leverage went down, the market felt the effects as Crypto Twitter came alive.

“The burden of being on top. And no guarantee it lasts forever. This is just complacency,” said trader Ledger Status.

While Binance has been capturing its market share, BitMEX’s BTC balance also took a hit and diminished by 32% since then, although exchanges’ bitcoin balance has been on a downtrend on almost all the exchanges.

“The cryptocurrency industry has come a long way in a short amount of time. We know that the expectations on us have risen and we’re working 24/7 to further improve the resiliency of our platform,” said the company which aims to achieve “near zero down-time.”

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Author: AnTy

Declining Bitcoin Volatility Indicates “Consolidating Bull Market”

Bitcoin is back against a key inflection point following a swift rally over the past week. Currently, hovering around $7,700 after printing a fresh, multi-high yesterday.

While BTC/USD has recovered to pre-crash levels, US oil prices are still plunging amidst the excess supply of crude at a time when there is no demand for it. The latest crash came as the USO ETF said it would dump its June contracts this week and reduce contracts for other upcoming months to focus on buying long-term oil contracts.

As such, Bond King Jeffrey Gundlach is of the camp that believes, “we are not out of the woods. … I think a retest of the low is very plausible.” He shorted S&P 500 because,

“People don’t understand the magnitude of the social unease that’s going to happen. We’ve lost every single job that we created since the bottom in 2009.”

With the money printer going brrr…

Currently, the equities market is only 16% off its all-time high, and “When those who are in charge of creating the money are buying, it’s kind of hard for prices to fall,” said analyst Mati Greenspan.

Just yesterday, the Bank of Japan ramped up its stimulus with a promise of unlimited bond-buying aimed at preventing its economy from causing a coronavirus-triggered collapse.

With the money printing going on, it is possible we would “bust through the top and zoom toward the next point of resistance, possibly near $10,000,” or it is also “entirely possible that we’re now in a temporary bull trap, and we may test $7,000 to the downside again. In fact, this would be well within the current upward-facing channel,” wrote Greenspan in his daily newsletter Quantum Economics.

A 260-day volatility measure of Bitcoin meanwhile has come down to a record low versus the S&P 500 which indicates a price appreciation tilt towards the digital asset.

“Bitcoin volatility in decline is indicative of maturation and a consolidating bull market,” wrote Bloomberg Intelligence’s Mike McGlone.

“The original cryptocurrency appears to have weathered the financial-market storm and is on sounder footing on the back of a price decline into good support with indications of increasing adoption.”

Long-term Bitcoin undervalued

Meanwhile, the crypto market is preparing for the upcoming halving which can act as a positive catalyst for prices. Don Wyper, COO at DigitalMint said,

“There are so many moving parts to the Bitcoin economy that some potential effects from the halving are likely not fully baked into the price of Bitcoin at this moment.”

Based on bitcoin’s past performance, he expects the price to “skyrocket” as such long-term Bitcoin is undervalued with increased volatility expected in the short-term.

At its current level, bitcoin is holding strong but that fact that $7,800 level can’t take too many more hits and most dips got bought up quickly, “the risk on appetite is still ripe.”

However, as per the futures market which is in backwardation, we are “positioning for more downside” both in the long and short term.

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Author: AnTy

Bitcoin Sells Off Like Stock Market Even After The Fed Cuts Rates by 50bp; Trump Wants More

Today, in a surprise move, the US Federal Reserve cut its benchmark interest rate by a half-percentage point to help mitigate the impact of the coronavirus on the market and economy.

The officials were in unanimous agreement for an emergency cut to a range of 1% to 1.25%. The Fed also said the “fundamentals of the U.S. economy remain strong,” but added that Fed policymakers “don’t think we have all the answers.”

On Monday, the promise of the interest rate cut had the stock market surging, the Dow Jones Industrial Average jumped a record 1,294-points. Today, the Dow initially added to the gains after the Fed announced the rate cut but soon went down.

The Dow was down more than 700 points, or 2.7% after rising nearly 400 points at one point in the day. The S&P 500 was down 2.5% while the Nasdaq Composite dropped 2.5%.

According to investors, the Fed’s rate cut was bad news. This also means the market had already priced in a rate cut, aggressively.

The market was expecting an interest cut from the Fed in the March 18 meeting and even though the Fed officials spoke out against the cut right away last week, they made the first such emergency cut since the financial crisis.

However, President Donald Trump, who called for a rate cut today early in the day after Australia’s central bank did, pushing its rates to a record low, yet again called out for another cut.

“The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to the USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!,” Tweeted Trump.

The crypto market is reacting the same way as the stock market. Bitcoin also jumped to about $8,870 but soon after followed stocks and dropped below $8,700. However, the volume is extremely low, only $400 million exchanged hands on the top ten exchanges in the past 24 hours.

Source: Coin360

However, stock markets are more volatile than bitcoin today and trader Crypto Micheal notes, “BTC is stabilizing, while some alts are gaining momentum already.”

However, traditional safe-haven assets like gold and silver are surging. Gold prices rose sharply, with April futures were last up $51.20 an ounce.

Lower Fed rates also have investors paying attention to treasury yields, with the 10-bond yield hovering above 1% near an all-time low.

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Author: AnTy

Institutional Investors are Manipulating the Price of Bitcoin: Arcane Research Report

In September, Bitcoin price took a hit of over 19%. It went from its highest point of $10,930 on Sept. 6 and dropping to almost $7,730 on Sept. 26.

On Sept. 27, the day CME BTC futures contracts settled, the price went under $8,000 for the first time since June.

The drop in BTC price might be caused by institutional investors, according to Arcane Research.

Bitcoin price falls on average 2% ahead of futures contracts on CME being settled. Arcane Research has looked closely at the numbers, and the systematic trend is striking; the price has dropped 15 out of 20 times.

CME’s Bitcoin futures contracts, that are an indicator of Wall Street’s institutional interest in cryptocurrency settles in dollars and not in BTC. The settlement meanwhile is determined by the BTC price in the underlying market.

This means, no BTC changes hands rather it’s just underlying market trading in dollars while allowing Wall Street traders to go long or short on BTC futures contracts.

On settlement date of the contracts, traders can sell off their BTC and potentially trigger a price drop in the spot market.

This allows traders with short positions to earn profit on futures contracts upon settlement as the value of their position rises.

A Clear & Striking Trend in BTC Price & CME BTC Futures Settlement

According to Arcane Research’s analyzation, the trend is “striking.”

On an average Bitcoin falls 2.27% towards each settlement each month in comparison to only 0.06% all on a random day.

The trend becomes even clearer on looking at the median, on any random day, the fall is of 0.04% while before settlement, price takes a drop of 1.99%.

Moreover, there is an even relationship between positive and negative days while just the day before the settlement, only 25% of the days were positive.

Interestingly and oddly, BTC price falls the most before settlement, this was particularly seen this spring.

The data supports the hypothesis that

“the bitcoin price is manipulated in advance of CME settlement.”

However, it doesn’t say anything about “deliberate manipulation.”

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Author: AnTy

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.

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Author: Hank Klinger

Ethereum Classic (ETC) Mining Profitability Has Been Growing Steadily (Stats Inside)

  • At one point, ETC was ranked in the list of top -10 crypto assets by overall market capitalization. However, the digital currency is now ranked 20th on the same list.
  • Supporters of ETC claim that it is the only ETH hard fork to have stayed true to the original vision of the currency.

As most of our regular readers are probably well aware of, Ethereum Classic [ETC] first came into existence during the latter half of 2016. Upon its inception, the currency was viewed as a fork of ETH that stuck to the original Ethereum blockchain and could be used by developers to create a host of novel dApps (decentralized applications) as well as smart contracts.

With that being said, it bears mentioning that over the past couple of years, the currency has been sliding in value — with a single token currently trading around the $7.79 mark. Additionally, the once sought after altcoin currently possesses a total market cap worth $870 million. However, despite all this, over the last 12-14 months, ETC mining activity has been on the rise, with many crypto enthusiasts claiming that the currency is on the verge of a serious breakout.

As can be seen from the chart above, Ethereum Classic’s [ETC] mining profitability has been on a steady rise since the start of the year. Not only that, a number of independent research studies have shown that the most profitable ETC-oriented mining pool right now is ’2Miners’ — which recorded a profitability ratio of 100% and displayed a weekly income of 21.391 ETC [$164.50]/1 GH/s.

Ethermine — another extremely popular mining pool — also registered returns of over 98% during the last week or so. To be a bit more specific, we can see that the pool’s weekly income stands at 20.486 ETC [$162.06]/1 GH/s.

Lastly, Nanopool was able to rake in profits of around 95% (estimated returns of $20.486 ETC [$157.54] /1 GH/s) over the week gone by.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Shiraz J

Bitcoin-Led Crypto Markets Could Be Negatively Affecting the US Dollar Claims ING Bank

  • The DXY Index registered the lowest point since March 2019
  • Cryptocurrencies and strong commodity prices could have affected the US dollar

According to a recent report released by ING on June 24, strong commodity and cryptocurrency prices plus sharply falling US dollar hedging costs should negatively affect the US dollar. The report conducted by ING’s global head of strategy Chris Turner was released as his latest foreign exchange analysis and just after Bitcoin (BTC) surged above $11,100 last days.

Cryptocurrencies Affect The US Dollar

During the last few days, the US dollar has been falling compared to other currencies around the world, including the EUR, GBP, Bitcoin and even against gold. In addition to it, the price of the DXY Index that measures the performance of the US dollar against a basket of other currencies around the world has been dropping since June 18, the lowest point since March this year.

In this report released by the bank, Mr. Turner commented:

“Strong commodity (and cryptocurrency) prices, plus sharply falling US dollar hedging costs should keep the dollar on the soft side this week.”

Moreover, the U.S. is also expected to update the personal consumption expenditure (PCE) deflater as soon as on Friday. If there is another low, the Fed could eventually become worried about this issue.

There are some geopolitical and economic issues as well that can be related to the weakness of the U.S. dollar. The U.S. President Donald Trump is expected to meet his Chinese counterpart on Friday and Saturday at the G20 summit in Japan.

At the time of writing this article, Bitcoin remains the strongest cryptocurrency in the market with a price increase of 1.35% in the last 24 hours, the largest gain among the top 17 cryptos. At the same time, it has a market capitalization of $195 billion.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Carl T

WANCHAIN Price Prediction Today: Daily (WAN) Value Forecast – June 20

  • The $0.40 lower range mark has been assumed to be the defining point to both the north and the south direction of the WAN/USD market as at this point in time.
  • The bulls may eventually find a way of coming back while the bears can’t push the market line below $0.40 mark.

WAN/USD Medium-term Trend: Ranging

  • Resistance levels: $0.50, $0.55, $0.60
  • Support levels: $0.35, $0.30, $0.25

The range moving market between Wanchain and the US dollar still features in the week’s medium-term run. The range zones are found at $0.45 and $0.40 marks. The 50-day SMA indicator has clearly given a clear understanding that the choppy price movements are of that of lower lows and lower highs as they’ve been showing under its sell signal line.

The Bollinger Upper Band and the SMA trading indicators are closely located at the $0.45 upper range spot. The Stochastic Oscillators have slightly crossed hairs within ranges 60 and 40.

Were it be that the market would be experiencing smooth falling run to the south, the $0.40 lower range mark then needs to be broken downward. However, the same lower range spot is expected to be used by the bulls to build their foundational base for energy to surge out of the current range zones of the WAN/USD market.

WAN/USD Short-term Trend: Ranging

The market operations of WAN/USD has been serially rising and falling within a range today. The falling of the pair has only overridden the risings yet around range points of $0.44 and $0.42.

The indicators also fall in line with the range zones to affirm the on-going choppy price movements of the cryptocurrency. The Stochastic Oscillators have gone down towards range 20. And, they now attempt crossing at it.

The WAN/USD market’s bearish force now appears to be getting a reduction as it has been hovering around its short-term lower range point at $0.42. Expectantly, the bulls may soon regain their energy around that point or around $0.40 mark.


The views and opinions expressed here do not reflect that of and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

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Author: Azeez Mustapha

As Cryptopia’s Bankruptcy Proceeds, Hacked Users’ Funds May Not Be Reimbursed Completely

As Cryptopia's Bankruptcy Proceeds, Hacked Users’ Funds May Not Be Reimbursed Completely
  • Cryptopia’s January hack has led the company to pursue bankruptcy proceedings.
  • Issues in the security of the exchange may point to a greater problem in the cryptocurrency industry.

Cryptopia has had a really rough year. In January, the exchange was hacked, losing millions of dollars before the exchange cut off customers from their withdrawals. The company worked hard to try and bring their platform back to consumers in March, but ultimately had to shut down when the relaunch was unsuccessful.

The proceedings for their bankruptcy case began a few weeks ago, and the liquidators are already running into trouble.

The former New Zealand exchange had made creditors hopeful that they would see their funds again as the bankruptcy commences. However, that optimism has not lasted, as the Grant Thornton auditing and liquidation firm has revealed that the entire process will end up taking “some months at least.”

Executive David Ruscoe of Grant Thornton added that the firm plans to “conduct a thorough investigation,” adding that they will be collaborating with multiple stakeholders, members of management, and shareholders for a satisfactory solution. Even in the last week alone, there has been new information discovered, which is why it is so necessary to continue with the wait for the firm to continue their research.

Even though the company has already stated which crypto wallets were responsible for holding most of the funds that were stolen, the actual hackers are difficult to figure out. Furthermore, actually figuring out which customers are owed the funds that the firm finds is becoming even more difficult. Looking at the filing on May 24th, which was processed through the Bankruptcy Court in the Southern District of New York (SDNY), shows that the liquidators have no idea which customers should be given the funds they find.

With the filing for the emergency provisional relief, the court first needs to issue an order that would preserve an SQL database, which is presently being held in Arizona.

While the information in this database has a lot of necessary details for reconciliation, the company that hosts it publicly ended their relationship with Cryptopia during their difficulties, which is why an order from the court is crucial. In fact, Grant Thornton has already said that the reconciliation of the funds and the distribution to users simply cannot be achieved without the data.

Speaking with Cointelegraph, Pauline Shangett from ChangeNOW said that the cryptocurrency market is young, and the traditional legal system just is not set up to deal with it yet. Shangett believes that there’s two solutions that could be implemented –

“Either the space moves on to being fully decentralized and self-regulated, or it adopts the best practices of regulators. The former might lead to anarchy as cases like Cryptopia’s have a chance to happen again, which would hinder mass adoption.”

With all of the chaos that Cryptopia has come against, there’s more of a sense of urgency for legal entities to get involved in fraud causes in the industry. CEO Kamil Gorski of Blockhunters pointed out that there is plenty of tools that exchanges could implement in a way that will prevent the hacks from happening, but “there’s no obligation to use them.”

Those tools can include ways to track the funds that have been stolen, protocols that would stop payouts if something triggers it, and even ways to track bugs. Essentially, Gorski believes that that the only lesson learned here is that “this approach can end up biting them, and more importantly their users, in the a–.”

With such a lazy attitude towards security creates a problem that just leaves investors unprotected, when it would not take much to implement. Still, by lacking protection, the fault comes back on Cryptopia when the hacks occur. No amount of avoidance can help Cryptopia to escape the fact that the money will have to come from themselves.

The majority of the funds stolen in this circumstance has come from American users, which means that the SDNY could end up getting involved in the reconciliation. However, the fact that a company from New Zealand is largely profiting from predominantly Americans is a reason to be a little concerned about how the crypto industry works.

A crypto commentator named Stephen Palley even said that the purpose of a Chapter 15 bankruptcy would be to rope in the US bankruptcy court in an effort to:

“give effect to a foreign bk/liquidation proceeding.”

It also lets the courts issue an order with the database provider in Arizona to hold on to the information that they need, which was the purpose of hiring Grant Thornton in the case.

As the drama continues to unfold, it is clear that the problems that Cryptopia faces are indicative of much bigger problems in the cryptocurrency space. The regulation in the space has been the biggest focus of the market for so long, but perhaps the necessity for clearer security requirements needs to be pushed to the forefront.

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Author: Krystle M