“I Won’t Tell You To Short Bitcoin,” says Guggenheim CIO After Capitulating During June Drop

“I Won’t Tell You To Short Bitcoin,” says Guggenheim CIO After Capitulating During June Drop

It looks like Guggenheim Chief Investment Officer Scott Minerd didn’t get his sub $30k bids filled as he revealed this week that he is no longer invested in Bitcoin. In an interview with CNBC he said,

“The one thing I learned as a bond trader years ago, when you don’t understand what’s happening, get out of the market … So discipline tells me now I don’t fully understand this.”

The CIO first came into the limelight when back in December 2020, he said that Bitcoin could hit $400,000 only to increase this target to $600,000 two months later. During this period, BTC went from $20,000 to $60,000.

But in June, when Bitcoin lost more than 50% of its value from May ATH to just under $29k, Miners called for a drop to $15k. Now that Bitcoin is back on the rise, on the way to hitting its ATH as it trades around $64k, Minerd has completely got out.

“We were long going into that, we sold, it pulled back to where I thought it was and really after looking at it thought you know, we gonna probably go lower.”

“Well, we didn’t, so we’re not in.”

The latest euphoria in the crypto market is on the back of the ProShares Bitcoin Strategy ETF making its debut on NYSE to mark the launch of the first Bitcoin ETF in the US. The futures-based ETF will make it easy for institutional investors who want exposure to the cryptocurrency, said Minerd.

Besides crypto assets, crypto-miner stocks are also surging, with Marathon Digital Holdings Inc., Bitfarms Ltd., and Hut 8 Mining Corp., up at least 180% so far this year. Michael Novogratz’s crypto asset manager, Galaxy Digital Holdings Ltd. has also doubled in value this year.

According to Minerd, the upward moves in the stocks are “spilling over” into other asset classes, including cryptocurrencies.

“You see bitcoin and what it’s done over the last few weeks. I can’t tell you it’s a value but I won’t tell you that you should short it because you know it’s likely to be higher in the coming months.”

He also said that he still sees the potential for the price of Bitcoin to reach his first target of $400,000 based on its value and scarcity relative to gold.

In an interview with Bloomberg, Minerd also said that the majority of cryptos are worthless and bound to fail. Only a handful of big winners will remain in the end, he added.

“Seventy percent of the coins are garbage and will go away.”

“The question is, just like the internet bubble, which of the companies, survive. Will Amazon be the big winner or will Pets.com be the big winner?”

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Author: AnTy

Billionaire John Paulson Prefers Gold Over BTC; “There’s A Very Limited Amount Of Investable” Bullion

‘Big Short’ Billionaire John Paulson Prefers Gold Over Bitcoin Because “There’s A Very Limited Amount Of Investable” Bullion

And yet he doesn’t understand Bitcoin; it looks like he’s married to his gold bags. And he can’t put a short on crypto either because “there’s unlimited downside” to them, and he doesn’t want this trade to outdo his “greatest trade” made a decade ago.

Billionaire John Paulson, who netted $20 billion from the 2008 ‘Big Short’ crisis, says cryptocurrencies are a bubble that will “eventually prove to be worthless.”

While Paulson made it big by betting against the U.S. housing market more than a decade ago, the same can’t be said of the crypto market, where the easiest trade seems to be long or going ultra-long.

Things don’t seem to be going well with his firm. According to Bloomberg, he turned his hedge fund into a family office last year after assets dropped from their peak of $38 billion in 2011 to about $9 million in 2019, and “he found himself managing mostly his own money.”

Much like Paulson, ‘Big Short’ fame hedge fund manager Michael Burry also described Bitcoin as the “greatest speculative bubble of all time” in March and then three months later, following the big sell-off. He said the crypto-asset would collapse, but since then, BTC has retraced sharply and is back to make its way to $50k.

Now, in an interview with Bloomberg, Paulson, 65, dismissed crypto assets, saying, “I wouldn’t recommend anyone invest in cryptocurrencies.”

This makes sense that he is invested in gold and believes the precious metal “does very well in times of inflation,” noting the last time the billion was parabolic was in the1970s when there were two years of double-digit inflation.

He further explains why exactly gold does parabolic, which is basically “a very limited amount of investable gold.”

‘As inflation picks up, people try and get out of fixed income. They try and get out of cash. And the logical place to go is gold, But because the amount of money trying to move out of cash and fixed income dwarfs the amount of investable gold, the supply and demand imbalance causes gold to rise.”

And yet, he doesn’t get Bitcoin. He could very well be married to his gold bags.

According to him, when it comes to cryptocurrencies, they are “a limited supply of nothing,” and they have “no intrinsic value.” “So to the extent there’s more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down,” he said.

Paulson added that crypto assets “will eventually prove to be worthless” and will go to zero once the exuberance wears off or liquidity dries up.

Given his confidence in cryptos going to zero, it would make sense that Paulson would put a big short on them. But not according to the billionaire because “there’s unlimited downside” to them.

“Even though I could be right over the long term, in the short term, I’d be wiped out. In the case of Bitcoin, it went from $5,000 to $45,000, It’s just too volatile to short.”

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Author: AnTy

FTX Now Allows to Short or Long GBTC, ETHE, & BITW

FTX Now Allows to Short or Long Grayscale’s GBTC & ETHE and Bitwise 10 Crypto Index (BITW)

This time, cryptocurrency derivatives exchange FTX has listed the stocks of crypto asset funds.

The world’s largest asset manager Grayscale Investment’s two popular products GBTC and ETHE are now available to trade on FTX. Both the products currently trade at 17% and 15% premium respectively on the secondary market.

Bitwise 10 Crypto Index (BITW), which has more than $500 million in assets is another fund listed by FTX. The price of Bitwise’s crypto fund shares jumped 369%, higher than the digital assets it holds which rallied over 300% last year.

GBTC/USD is trading at $34.9 with $4,052 volume, ETHE/USD at $12.4 with $2,214 in volume, and BITW/USD is trading at $54 with a volume of $2137 on FTX.

As the CEO Sam Bankman-Fried noted in a 2020 review, “FTX has built a reputation as an exchange that’s quick to roll out new products and features,” and the latest listings are just an addition to what the exchange has been doing since last year.

The exchange has tokenized the stocks like Tesla, Google, Amazon, and other hot ones to enable qualified traders to trade them 24 hours a day, 7 days a week, 365 days a year.

They also listed pre-IPO contracts of Airbnb and Coinbase and just last week added Superbowl to its prediction market.

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Author: AnTy

“Short the Dollar”, says Bitcoin-friendly US Congressman, Warren Davidson

US Congressman Warren Davidson, a Bitcoin proponent, tweeted on Tuesday, “Short the Dollar.” This has been in response to the Twitter account of Forbes Crypto asking the community to sum up cryptocurrencies in 2020 in three words.

Davidson replied with shorting the US dollar and the hashtag “Sound Money,” referring to Bitcoin.

According to him, Bitcoin is a “great store of value,” which he views “like digital gold versus a true currency.” But he doesn’t own any personally. Davidson’s reply triggered some, Rohan Grey being one of them who wrote,

“Another brilliant monetary insight from one of the Republicans who opposes the #STABLEAct.”

Grey, an assistant professor at Willamette University College of Law, has recently been in the limelight helping draft the controversial Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act.

Grey also worked with Rep. Rashida Tlaib on the Public Banking Act draft, which was introduced in October, and a COVID relief plan to invest in the digital wallet.

The latest draft STABLE Act requires any stablecoin issuer to obtain a banking charter and approval from the Federal Reserve and be FDIC-insured. This bill further holds the node operators and network upon which these fiat-based cryptos will operate liable.

According to him, it’s about the systemic risk that stablecoins pose, and as they become larger, they are no different than any other big financial institutions. For him, even if an instrument is issued on a decentralized network, if it is “trying to walk and talk like money, and therefore carries a systemic risk, it should be regulated like money.” Grey said,

“I hold the view…that decentralized networks are not sort of a crowd where there’s nobody liable—that there are actors you can point to that operate and govern and make decisions related to key parts of that infrastructure.”

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Author: AnTy

OFAC Blacklists Three Russians’ Crypto Addresses Linked to 2016 US Presidential Election

The Treasury Department of Foreign Assets Control, OFAC in short, announced sanctions for three Russian hackers involved in meddling in the 2016 Presidential elections. The statement further added cryptocurrency addresses attached to the Russian Troll group, Internet Research Agency, were also sanctioned.

The sanctions stretch to several crypto addresses, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Zcash (ZEC), and Bitcoin SV (BSV). As of the publishing of the sanctions, “all property and interests in property of these targets that are subject to U.S. jurisdictions are blocked,” the statement adds. U.S. citizens are also prohibited from engaging in transactions with the listed persons.

The three sanctioned persons – Artem Lifshits, Anton Andreyev, and Darya Aslanova – are listed for controlling the crypto wallet accounts and dealing with the IRA. The statement reads,

“Russian nationals Artem Lifshits, Anton Andreyev, and Darya Aslanova, as employees of the IRA, supported the IRA’s cryptocurrency accounts. The IRA uses cryptocurrency to fund activities in furtherance of their ongoing malign influence operations around the world.”

OFAC first listed IRA operations using cryptocurrency in 2018, accusing the firm of participating in meddling in the 2016 U.S. Presidential election.

Russia is not the only nation the U.S. agency is focusing on. In November 2019, BEG reported OFAC was accelerating its efforts to sanction cryptocurrency addresses from two Iran nationals in relation to ransomware attacks within the country.

The list of Russian cryptocurrency addresses that have been blacklisted by the U.S. Treasury Department.

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Author: Lujan Odera

Binance Plays Catch Up, Launches DeFi Index Perpetual Contract With Up to 50x Leverage

“Trade DEFIUSDT. Trade the trend,” says Binance.

“Long or short the DeFi market, all in one contract,” it further states as the exchange announces the DeFi Composite Perpetual Contract with a leverage of up to 50x. The futures will start trading from August 28th, 7:00 AM (UTC).

That’s right, Binance is offering you 50x leverage to trade the explosive DeFi tokens which have been already surging like crazy.

Binance isn’t the first one to offer a DeFi index trading, except for the 50x leverage, of course. FTX first announced the launch of a DeFi Index perpetual contract, and just this week also introduced Uniswap index futures that cover the top 100 Uniswap pools. FTX also launched a decentralized derivatives platform, Serum.

This week, the exchange also acquired Blockfolio in a $150 million deal to attract retail traders. While the community celebrated the acquisition, “FTX didn’t pay for a portfolio tracker they could build in 5 minutes, they paid $150M for your data and bag info.”

What’s Available & Missing?

Binance’s DeFi index covers 10 DeFi projects that are currently popular in the market. This list comprises some of the hottest tokens that almost completely feed the DeFi appetite of a trader.

With names like Band Protocol (BAND), Compound (COMP), Kava.io (KAVA), Kyber Network (KNC), Aave (LEND), Chainlink (LINK), Maker (MKR), Synthetic Network Token (SNX), and 0x (ZRX), the index is attractive.

However, amidst this is Swipe (SXP), which has more weightage in this index than any other token except for Chainlink, Aave, and 0x.

The community didn’t appreciate that while this list lacks the DeFi darling YFI, it also covers Swipe, arguing it isn’t even a DeFi project. Swipe might not be a DeFi yet, but it is on its way to join the craze as it announced earlier this month that Swipe would be launching a decentralized finance lending/earn application on Binance Smart Chain.

Binance acquired Swipe last month; the latter one also added BNB making it spendable with fiat at over 50 million locations worldwide via the Swipe Visa Debit Card.

Reportedly, when Binance acquired CoinMarketCap, in the biggest ever deal of $400 million, first introduced DeFi project ranking, it published its native token BNB at the top, which has since then been removed.

Binance has constantly been listing new DeFi tokens to capture this hot trend and now advertising its Binance Smart Chain with EVM compatibility, rich & growing ecosystem of assets, cheap transaction fees, high performance, funding, and cross-chain DeFi mechanisms to be the perfect blockchain to launch DeFi projects.

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Author: AnTy

DiversiFi, Formerly Ethfinex, Launches Its DEX 2.0 With Starkware; Processing 9,000 + TPS

  • Bitfinex sister decentralized exchange, DEX in short, DiversiFi, which relabeled from Ethfinex in August last year, announced a relaunch of their platform, now DiversiFi 2.0, on June 3rd, 2020.
  • The new platform will introduce Starkware’s zkSTARK layer 2 scaling solution, which will improve the privacy and reduce latency on the exchange.

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According to an official publication, DiversiFi 2.0 DEX will be able to process over 9,000 transactions per second by employing a ‘batching mechanism. The DiversiFi DEX is a non-custodial trading platform that targets high-frequency traders and the latest integration will allow the users to capitalize on arbitrage and real-time orders – a problem on centralized crypto exchanges.

The new launched platform will be powered by zero knowledge proof batch validation relying on zkSNARKS and ZK Rollups scalable solutions. The Starkware scaling solution will batch the trade transactions in large batches and securing each batch with a ZK verification signature.

Given that these transaction will be done off-chain, the transaction details only consume a small part of the Ethereum blockchain reducing the overall cost in transaction fees.

New solutions through Starkware’s integration

In a statement released following the re-launch of DiversiFi 2.0 with Starkware integration, the CEO of the company, Will Harborne, said the new platform will offer solutions to current scalability solutions. Deep liquidity, the instant transfer of trades between peers and withdrawal certainty through a partnership with BitFinex and ConsenSys are key on DiversiFi 2.0’s development agenda. Harbone said,

“The solutions born out [Starkware integration’s] will address the key issue of scalability – but without the usual traditional sacrifices of liquidity, speed, settlement and fees.”

Always certain to withdraw your funds

DiversiFi also formed the Data Availability Committee, DAC in short, who will maintain the copies of users account balances in case the DEX fails or faces a blackout. The DAC committee includes its sister company, BitFinex, Nethermind, StarkWare, and ConsenSys.

Furthermore, copies of the account balances allows easier distribution of users fund and maintains the withdrawal operations on the DEX when there is a failure in the system.

The platform records a second by second timer list showing users withdrawals and what time they will complete keeping arbitrage traders in a real time loop.

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Author: Lujan Odera

Bitcoin in the Re-accumulation Phase But Market Not Confident about Price Escalation

  • Long term sentiments bullish but in the short term, the market is still fearful of another decline

Since yesterday’s lowest point, Bitcoin has risen over 20%, going to nearly $6,900 on Bitstamp. At the time of writing, BTC/USD has been trading around $6,700 while managing $2.5 billion on top ten exchanges with real volume.

Bitcoin has made a good jump that according to some traders could go to $7,500 level with the “crucial area to break is still the $6,800-6,950 zone.”

Last week, before the weekend, the world’s leading cryptocurrency jumped to about $7,000 level but the same day we went down to below $5,700. So, there’s yet to be known if we would be holding this level this time.

According to Trader XO, this rally might not be a real one as bitcoin tends to revisit the previous levels after making a pullback. He said,

“Don’t be surprised if we see one more raid around $6,500s before a bigger drop – wiping out a large number of late shorts / tight stops.”

Another trader Jonny Moe, who is “bullish as hell” where Bitcoin is heading fundamentally in the next few months, sees a “large bear flag right into horizontal resistance” that could see us revisiting the $3,000 to $4,000 range.

Tuur Demeester of Adamant Capital is also “not sure” that bitcoin will hold the current levels and believes it to be in the re-accumulation phase.

Has Bitcoin Bottomed?

Over the past few weeks, the price of bitcoin has been in a downturn that saw the digital asset crashing to $3,850. Could it be the bottom of this cycle? According to many, it might not be and we could very well visit new lows.

If equities fall another 30%, BlockTower Capital CIO Ari Paul says, both bitcoin and gold could go lower. Although they are still risk assets, with Wall Street focusing on inflation and depreciation 10x as much as 2009 and Fed announcing “infinite” money supply, both the assets can “catch a sustainable bid even before equities start recovering.”

In the long term, the market is confident and bullish on cryptos while seeing the pullbacks as buying the dip opportunities. But in the short term, the market is having a mixed reaction, with some expecting the world’s leading digital asset to continue to see high volatility and fall back to $4,200 level while others believe it’s time for BTC to soar 50 days before the halving. Analyst with pseudonym Ceteris Paribus said,

“Bitcoin is going to pump so fucking hard at some point, but there can be some nasty swings before it happens. Cut down on your margin positions heavily, hold the majority spot. Don’t get wiped out.”

“You think the worst case scenario is being in cash during the BTC pump? It’s not. It’s being early, getting liquidated before the pump, and then missing out on all the gains you could have had if you played it conservatively.”

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Author: AnTy

dYdX Intends on Stopping Support for 0x Decentralized Exchange Markets

dydx, a non-custodial exchange based out of Ethereum blockchain which allows for derivatives and short selling may end its support for 0x protocol based markets. The main reason for the discontinuation of 0x is the success of ETH/Dai.

0x protocol is also a decentralized exchange protocol on the Ethereum’s network, but it seems liquidity has been a growing problem and dydx believe ETH/DAI resolved the liquidity issue quite fast and because of that they might shift their focus only towards that.

Zhuoxun Yin, head of operations at dydx said that the 0x protocol based market would be discontinued after 0x transitions to the third version of its protocol. He said, “We’ve been able to build meaningful liquidity on our markets so far, quite quickly, ”

Matteo Leibowitz, a market researcher for block analyzed dydx and its progress over the last three quarters and noted that dydx registered a volume of $60 million in the second quarter of 2019 which rose to $70 million in the third quarter and the number is expected to grow even further in the last quarter.

Although 0x markets would be discontinued after its switches to version 3, the new update would bring in several infrastructural updates as well as a new version of its token ZRX.

Leibowitz also presented the new updates coming to the 0x protocol stating,

“in 0x v3, traders using the 0x protocol must pay a fee to market makers, distributed pro-rata according to ZRX staked, equal to the transaction gas fee. This updated model is intended to attract more market liquidity, with the explicit user fee offset by tighter spreads. However, dYdX is confident that it can attract liquidity without burdening users with additional fees.”

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Author: Silvia A

ZILLIQA Price Prediction Today: Daily (ZIL) Value Forecast – July 31

zilliqa

• The short and medium-term outlook is in a range-bound market.
• Patience is required trading the consolidation.

Supply zone: $0.02500, $0.02600, $0.027000
Demand zone: $0.01600, $0.01500, $0.014000

ZILUSD remains in consolidation in the medium-term. The bulls maintained the momentum within the range as markets opened today at $0.01083. The rally got price initially at $0.01156 and later $0.01168, above the upper supply area of the range but the candle closed within the range.

The exhaustion denoted by wick at the supply area imply takeover of the market by the bears as price drops to $0.01056.

Price is below the two EMAs and the stochastic oscillator points down at 52% suggesting downward momentum in price within the range in the medium-term.

ZILUSD is in consolidation and trading between $0.01150 in the upper supply area and at $0.009500 in the lower demand area of the range. A breakout at the upper supply area or breakdown at the lower area may occur hence patience is required to allow this to happen before a position is taken.

ZIL/USD short-term Trend: Ranging

The cryptocurrency is in consolidation in its short-term outlook. The bulls broke the upper supply area and pushed the coin to $0.01154 shortly after today’s opening at $0.01073. The bulls pushed price further high after a minor correction the retested the broken upper supply area.

Price is below the two EMAs at $0.010865 and the stochastic oscillator signal points down at 20% suggesting a downward movement in price within the range in the short-term.

$0.001100 is the upper supply area while $0.001000 is the lower demand area. A breakdown or breakout in price may occur, hence patience should be exercised before taking a position after retest.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com 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