Flash Crash Caused Serious Network Congestion for ETH, ETC, And ERC 20 Tokens on Coinbase

On August 1, the Ethereum’s blockchain faced a spike in network transaction fees, causing a backlog in transfers across several exchanges. Coinbase and Binance, two of the largest cryptocurrency exchanges, saw hundreds of transactions jammed, leading to trading delays. In a blog post by Coinbase, during the fees peak, at 11 pm PST, a total of 559 transactions, deposits, and withdrawals were delayed.

The post reads:

“Starting at 9:45 pm PST, 559 transactions were delayed. The backlog of transactions started clearing 15 minutes after the peak of the fee spike and was fully processed in 110 minutes.”

Coinbase ETH Fees
Source: Coinbase

What Caused the Network Clog?

On the Ethereum blockchain, all transactions are charged a fee that is paid to miners that verify and confirm transactions. This network fee is determined by the variable demand for fixed processing capacity whereby when there is a significant demand, fees will rise and fall when demand is low.

The clog started at about 9.45 pm PST, causing a delay across the ETH and ERC20 tokens with the average delay spiking at 11:30 pm PST at 105 minutes.

Trading remained stable through the clogging moment, with only deposits and withdrawals affected. As of now, Ethereum Classic remains in the status of ‘degraded performance’ on Coinbase.

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Author: Lujan Odera

Green Day: Market Enjoys BTC Waking Up from the Slumber as EU Approves $2T Stimulus Package

After a very long time, bitcoin moved today. It is just a 3% spike that saw the world’s leading cryptocurrency going from about $9,150 to $9,442 on Bitstamp. However, we have started to slide down, currently trading around $9,330 with $1.47 billion in ‘real’ trading volume.

By crypto market standard, it is a tiny move, but given that bitcoin has been acting like a stablecoin lately, this upwards move brought back the enthusiasm in the market and community.

“Bitcoin awaken from thee slumber. I’m getting fucking bored,” tweeted BitMEX co-founder and CEO Arthur Hayes.

As we reported, Bitcoin has been trading in a tight range for the past few months, which continues to keep on getting tighter. One month bitcoin price range in July actually has been to its historic low of 6%.

Today, bitcoin’s move came as EU leaders reached a €1.82 trillion (over USD $2 trillion) COVID-19 recovery package earlier this morning.

“It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU,” the EU leaders said in a joint declaration.

“Exceptional situations require exceptional efforts,” said German Chancellor Angela Merkel, who said the financial foundations for the next seven years had been laid out.

The small spike in Bitcoin price has OKEx BTC futures open interest surging 7.5% and trading volume increasing 14.5 times within an hour on the platform.

The market is excited but still waiting for the digital asset to break the recent high of $9,500 to “make the reversal a legit signal long.”

“About time we get some price action around here. Meme trendline broke. A daily close above $9,443 would be a higher close on the trend. Close above $9,700, and I’ll feel bullish. Close above $10k, and I’ll market buy in this corn,” said trader Josh Rager.

Green Markets

Today, everything is green.

Nasdaq rose to yet another all-time high to 10,837 only to slide to 10,731. Dow Jones jumped 0.98% to 26,943.

S&P 500 started by recording gains to 3,276 but is currently at 3,268 — the highest level since February and not far from its all-time high of 3,386. And Bitcoin’s correlation with the S&P 500 is still high at 64.6%, as per Skew.

“S&P500 and Bitcoin have been correlated and co-integrated last 10 years. S&P implied BTC price: $25K .. interesting times ahead!” said PlanB.

Precious metals are shining with both gold and silver hitting multi-year highs on stimulus and concern over the coronavirus.

Gold jumped 1.23% to $1,840 per ounce. But it is Silver, which is leading the charge with Citigroup seeing its prices rising to $25 in the next six-to 12 months.

According to economist and trader Alex Kruger, soon, most of the assets will look like silver even though “people will fight it, and the word “bubble” will be used with increased frequency.”

This is because of negative real rates, continued monetary & fiscal stimuli, coronavirus overrated (market over-reacted), and economic recovery.

And the US Federal Reserve has plenty of room yet, with its balance sheet as a percentage of GDP currently standing at 35% compared to the ECB’s 57% and the BoJ’s 118%.

“We moved to the “Fear is Good” stage, the more fear about coronavirus resurgence, the more fear among policy makers. And what do fearful policy makers do? They provide stimulus,” he said.

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Author: AnTy

U.S Treasury Secretary Says the Country Will Not Shut Down Despite Second Wave COVID-19 Fears

U.S Treasury Secretary, Steve Mnuchin, has ruled out the possibility of a second lockdown despite a spike in new COVID-19 cases within the United States. This comes as Wall Street and Asian markets dipped towards the end of last week in fears of possible second wave.

Mnuchin was speaking to CNBC reporter, Jim Cramer, on June 11 as he made these remarks. He went on to defend the position of keeping the economy open noting that a contrary move would cause more damage,

“We can’t shut down the economy again. I think we’ve learned that if you shut down the economy, you’re going to create more damage.”

Furthermore, many vital areas such as medical have been put on hold and ought to bounce back according to Mnuchin. The Treasury Secretary noted that they foresee a bounce back in the remaining two quarters of 2020.

The Optimistic Outlook

While the U.S remains as the highest country with active COVID-19 cases, Mnuchin signaled an optimistic future for the leading economy. He emphasized that President’s Trump approach was prudent coupled with the $3 trillion stimulus approval from the House of Reps and Senate. Notably, only about $ 1.6 trillion of the injected funds are the in U.S economy. Mnuchin has since highlighted that another $1 trillion will be pumped into the economy within the next month.

Following this progress, the U.S Treasury Secretary, said that his number one job is getting everybody to work; an initiative that is already underway in collaboration with the Trump administration. Mnuchin said,

“We have the Fed program, we have Main Street [lending program], which is going to be now up and running, and we’re prepared to go back to Congress for more money to support the American worker.”

Recently, another $3 trillion stimulus package was passed by the House Democrats sparking debate but is yet to be voted in the Republican-dominated Senate. The latter, however, prefer a more conservative approach towards increasing federal deficit to ease the COVID-19 economic effects.

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Author: Edwin Munyui

WBTC has Become the Second Most Popular MakerDAO Collateral Type

A huge spike in the bitcoin locked in DeFi has been seen, as it jumps to 4,800k BTC. This has been the result of WBTC, an ERC-20 token backed with bitcoin, making BTC available on the Ethereum network.

Up until May, the Bitcoin locked in DeFi was just around 1,000 BTC. In May, so far, the locked BTC has jumped 243% to 3.85k BTC, as per DeFi Pulse.

Source: DeFi Pulse

This growth is also the result of Maker enabling WBTC as collateral. Earlier last week, it was confirmed that the newly minted WBTC was being sent to Maker. In return, 4 million DAI got minted with WBTC, a new way for the lending platform NEXO to leverage DeFi in their business.

Last week, Nexo locked up the remaining nearly 1000 WBTC worth about $9.2 million in Maker and then beat their last record by minting another 1.5k WBTC. The latest minted coins also made it to Maker which resulted in a massive spike on the WBTC in Maker and BTC in DeFi.

Over the weekend, DAI from WBTC also surpassed DAI from USDC. By overtaking USDC, WBTC has become the second-largest collateral backing DAI, with Ether still dominating at 84%.

The DAI minted against WBTC has also maxed out the debt ceiling for WBTC, currently sitting at about 95%, noted Alex Svanevik, co-founder of Nansen.

However, Ethereum co-founder Vitalik Buterin has shown his concern about this growth as he said, “I’m worried about the trust models of some of these tokens. It would be sad if there ends up being $5b of BTC on ethereum and the keys are held by a single institution.”

WBTC is primarily held by DeFi-related contracts with 68% of its total supply 3,861 WBTC now locked in Maker.

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Author: AnTy

Ethereum Miners Busy Hoarding ETH at Record Levels But Exchange In-flows also on Rise

Bitcoin is surging and so are altcoins. The second-largest network is also enjoying a spike of 7.34% as Ether moves above $200. When it comes to YTD gains, Ether which recorded 60% gains is outperforming BTC which is up only 13.18%. Much of these gains, over 58% have been made in April.

This price increase has the number of Ethereum addresses in profit increased to 40%, the highest percentage number since early March.

Interestingly, roughly 17% of Ether supply 16.6 million ETH is held by 10 addresses while the top 10,000 addresses hold 91.7 million ETH. The top 1k addresses represent 70.7M ETH and 37.8M ETH are held by the top 100 addresses.

On removing the smart contracts, the distribution of ether supply shows the top 10,000 addresses hold 56.7% (over 57 million) of ETH in comparison to 57.44% of Bitcoin supply holding 10.54M BTC.

Only 16 of XRP addresses hold over 55% of XRP supply while 300 of Litecoin addresses hold 54.3% of its supply and 55.8% of BCH supply is held by 1100 addresses.

Meanwhile, the top 100 has 26.4 million ETH and the top 1,000 42.5 million ETH, analyzed venture capitalist Adam Cochran.

Interestingly, March was a record-breaking month for Ethereum as almost 2 million smart contracts were deployed on the Ethereum network.

Busy Accumulating Ether

Cochran who recently wrote about how ETH 2.0 could be “the largest economic shift in society,” has found another reason to be bullish on Ether based on top 10,000 Ethereum addresses.

The venture capitalist comes up with 44.6M ETH with roughly 9% of ETH inaccessible, there is 100 million ETH in circulation that is in a position to enter into staking after removing 80% of cold exchange funds and burned, lost, and locked ETH. And  ETH 2.0 will likely initially return 12%-17%+.

Whales are reportedly also busy accumulating, existing whales increased their position by 4% in the past 6 months, and during this period, new whales bought over $650 million.

“We were also able to identify wallets associated with major players such as JPMorgan Chase, Reddit, IBM, Microsoft, Amazon, and Walmart,” and all of them are accumulating ETH, he said.

Miners are also busy hoarding, they accumulated 1.15 million in the past 6 months. Cochran said,

“We’ve never seen such a rapid increase in miner hoarding on ETH. Ever.”

“It seems likely that as we edge closer to Phase0 roll out, ETH miners are getting ready to convert mining operations into staking operations.”

While miners are looking bullish on Ether’s future, DeFi has plenty for a room to grow as well with the majority of $800 million locked in DeFi coming from individual micro-accounts.

However, exchanges’ Ether deposits grew by 5x in the past 6 months. It is the leading early indicator of mass sell-off but this time, the price rose, unlike the last three times when Ether price fell over 40% in the one-month span of the deposits increasing by 4-5x, so that’s a point of concern for now.

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Author: AnTy

Neither Bitcoin Nor Gold; Is Cash the Only Safe Haven During A Panic?

  • Bitcoin volume skyrockets amidst the worst sell-off in 7 years
  • A major volatility spike was also recorded that was last seen in 2014
  • Only cash is the safe haven during the time of crisis and panics

Bitcoin had its worst sell-off in 7 years as it dropped to $3,850 and even lower at $3,600 on BitMEX that resulted in only 44% of Unspent transaction output (UTXOs) in profit. Bitcoin’s market value to realized value (MVRV) has also fallen below 1 while Net unrealized profit/loss (NUPL) has dipped into capitulation. Bitcoin and USDT exchange inflows meanwhile surged during this sell-off.

A drop of about 66% from 2020 high of $10,500, saw a reshuffling of bitcoin ownership as a lot of bitcoin changed hands this week. The daily trading volume skyrocketed amidst the sell-off, going to the level last seen in 2019.

A whopping $4.2 billion changed hands on March 12 with the 7-day average real trading volume spiking to $1.5 billion, more than double the volume we recorded at the beginning of the week.

Such a big move has the 20-day volatility jumping above 7%, not seen since 2014. The futures market for bitcoin also turned extremely volatile, with the premium rates on futures gone. Most of the contracts are now trading below the spot price.

The March contract on deribit is trading $300 below spot price “implying an astonishing -80% annualized premium.” The bearish sentiment can be seen in the futures market as contracts for September expiry are also trading below spot.

It was Panic Selling Not Institutions Behind Bitcoin’s Crash

The crash in bitcoin price also recorded the highest correlation with the stock market in BTC history, going from 0.1 to over 0.5.

“Today proves that institutions buying Bitcoin has a flip side,” commented bitcoin developer Jimmy Song.

However, billionaire investor Mike Novogratz of Galaxy Digital believes that isn’t the case.

“That wasn’t institutions. That was a leveraged washout. Institutions aren’t fast enough to sell like that. That was panic selling from people who bought on margin,” said Novogratz.

We have been seeing the same sell-off even in gold, a traditional safe-haven asset which during the times of emergency had its worst weekly drop since 2013.

As Ari Paul says, “during standard panics, *everything* sells off except cash. That’s because people want the stuff that lets them buy food and pay rent. Fear = everything falls except cash.”

On BTC as a safe haven, he said the deflationary crypto asset “does well when people *fear cash* – when they fear inflation/depreciation,” and not economic turmoil. Bitcoin was introduced as a censorship-resistant way to exchange value.

“I’d argue it’s more valuable as a seizure resistant asset. Live in a place where a bank or thugs or the government might confiscate your money? It’s very useful to you,” said Paul.

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Author: AnTy

Bitcoin Price Jumps 9.7% But All Patterns Point to the Same Thing

  • Bitcoin recorded a spike of almost 9.7%, going as high as $7,772
  • But we are still not out of the woods, the price can very well go in the low $6,000s
  • 10,000 BTC added to longs, an increase of 43% and pushing for the ATH levels
  • Wall Street also recording gains after the Dow lost 457 points on Tuesday

In a sudden move, Bitcoin jumped to $7,772 level on Bitstamp. The world’s leading cryptocurrency has been trading just around $7,000 after recovering from the drop to $6,500 on Nov. 25. We dropped to the lowest point in five days at $7,087 today only to jump $500 in a few minutes.

Currently, BTC/USD is trading at $7,464 with 24 hours gains of 1.84% as per Coincodex. The trading volume has also seen a slight increase to $414 million from less than $200 million earlier this week. The 7-day average real trading volume has been slowly trending upwards since October as well.

“The technical pattern does look more bullish but the fact that it was a spike that carried it over, rather than more gradual growth is a bit suspicious. Now we’ll need to see how it closes,” wrote Mati Greenspan, founder of investment firm Quantum Economics in his daily newsletter.

The crossover between the 50-week moving average ad the 100-week moving average has been forming this week which is typically a bullish signal.

If BTC closes above these two moving averages, a trend shift might be on the line but if not, $5,000 is the most likely area next. And then, we could be looking at a bottom early next year.

Interestingly, 10,000 BTC has been added to the longs in the last 10 days on Bitfinex, which is an increase of 43% and pushing for the ATH levels.

“The steady rise after months of sideways makes me wonder if this is a single party trying to DCA in heavy,” said trader Jonny Moe about these longs.

However, in notional value — currently at $257 million, the longs are far from 2017 high at $619 million, even 2019’s notional value peaked at $323 million.

Bitcoin price might have seen some relief but it isn’t a guarantee that bulls are back in the market.

“If we need to capitulate, I don’t think it will happen now. More probably we will retest key resistance 7860-8090, and upper boundary of channel,” said analyst and trader CryptoWolf.

To be bullish, he said Bitcoin needs to break above and close above the key resistance area at $7,860-$8,090. Analyst Benjamin Blunts sees us eventually going to $6,800 but not before we make a few more ups and downs that won’t break above $7,600 level. Moe has even a lower target — it’s in the low $6,000s.

Wall Street is also looking good following a report that the US and China are moving closer to agreeing on the number of tariffs to be rolled back.

After losing 457 points at one point on Tuesday following President Donald Trump talking about waiting until after the election before making a deal with China, the Dow Jones Industrial Average rallied Wednesday. Nasdaq and S&P 500 also pointed to sharp gains.

However, disappointing jobs data — data from ADP and Moody’s Analytics reported private payrolls rose by just 67,000 last month, well below the estimated 150,000 — had futures pare their gains.

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Author: AnTy

CRYPTO.COM CHAIN Price Prediction Today: Daily (CRO) Value Forecast – June 25

  • CRO/BTC market has now been making attempts to push northwards.
  • The sudden spike may be a signal to expect more bulls’ potentials as long as the B0.000005 price point isn’t broken southwards.

CRO/BTC Medium-term Trend: Ranging

  • Supply levels: B0.000009, B0.00001, B0.000011
  • Demand levels: B0.000004, B0.000003, B0.000002

Between June 22 and until about formation of two 4-hour candlesticks of early trading sessions today, the CRO/USD market moved notably in a range. The third emergence of the 4-hour candlestick has come up with a violent spike that broke out of the range spot to average B0.000009 mark.

Not too long, the pair made a quick correction to now hover around upper range spots depicted at B0.000007 and B0.000006 price levels. The Bollinger Bands are located underneath the 50-day SMA. But, the Bollinger Upper Band has touched the SMA indicator from below. The Stochastic Oscillators have crossed to point north within ranges 40 and 20.

The crypto-market has now had a selling wall between the B0.000009 and B0.000007 points. Therefore, the bulls are not expected to push the market line beyond the B0.00009 mark in a near trading time of the CRO/BTC market.

CRO/USD Short-term Trend: Ranging

A spike that occurred earlier in the CRO/BTC market in the short run has led it into entering upper range zones afterward. Yesterday’s trading sessions witnessed its series of ranging market movements around lower zones as compared with the present.

The crypto-market has now been fluctuating around B0.000007 and B0.000006 price lines. The Bollinger Bands have opened wider around the B0.000007 and B0.000005 marks with the 50-day SMA located a bit under the Bollinger Middle Band’s trend-line. The Stochastic Oscillators have conjoined hairs to move along range 40.

There are indications that the bulls in the market of CRO/BTC are likely to gain the market’s advantage in the short-term run. Therefore, the bears may not have the possibility of pressing down the market retest a low point at B0.000005 mark.

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

Bitcoin Bulls and Mainstream Media Not on the Same Page as Headlines and Price Shows Divergence

Bitcoin Bulls and Mainstream Media Not on the Same Page as Headlines and Price Shows Divergence

Bitcoin is more famous now in 2019 than it ever was before. The recent price spike caused the newest wave of people investing in the asset today. Traditional financial investors, giants from social media and even retail companies such as Starbucks are all talking about cryptos, this is a fact.

However, most of the mainstream media outlets flat out affirm that Bitcoin can be known as a fool’s gold, not digital gold. According to them, the whole thing ranges from a scam to a bubble, something that the investors know that it is not the truth (although eventual bubbles do happen and they end bursting like last year).

Also, while die-hard crypto fans hold their own keys and praise the decentralization of the ecosystem, several crypto users are simply not that much excited about the whole idea. They often do not care about nodes, private keys and cold wallets, they just want a trustworthy company to hold their digital money for them.

This interesting new Reddit post created by u/atc2017 has tried to correlate how the notoriety of crypto and Bitcoin is going up with how prices go up and down. The main reason for creating this was to understand how rise and fall in prices are correlated with exposure and awareness, a theory that is pretty popular in the BTC community.

Tooling to analyse Bitcoin/Crypto exposure in mainstream media, exposure is increasing from CryptoCurrency

The graph shows in green the positive mentions of BTC and crypto, the negative ones in red and neutral in gray. Unfortunately, even as the prices increase, most of the news is either neutral or negative and almost none of them are positive.

With the graph, it can be clearly seen that the media continues to be skeptical even as the crypto bulls are making more and more money. Even when the big price increases happen, the token is not really appreciated by the media outlets, as the price bumps may be comparable to more news about it, but not necessarily positive exposure.

When the prices go down, however, negative exposure tends to go up, which clearly shows the negative bias that the traditional media has against BTC.

What could actually be surprising is that most of the time the news is generally deemed to be fairly neutral. This shows that it does not really mean whether prices are going up or down, the media also does not seem to hate BTC that much. Also, this year the negative views have somewhat diminished.

Are these trends ever going to chance? We have to wait and see. Negativity will certainly continue for a long time, at least until the ecosystem is fairly well-regarded around the whole world.

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Author: Gabriel M