Bitcoin Records 2nd Largest Crash in History After Mt. Gox

  • More than half of Bitcoin’s circulating supply 9.8 million in loss, for the first time in a year
  • A buy the dip opportunity but investments in “extreme fear,” Time to be greedy when others are fearful?

Yesterday has been a day that turned out to be brutal even for the hardcore believers and HODlers. Bitcoin was in free fall as the price tanked to $3,850, the new 2020 low last seen in early March 2019.

In a matter of 4 hours, Bitcoin price went from $6,000s to $3,000s while it took 2 weeks for the price to have the same route in 2018.

In the opposite scenario, again in an hour, the price was back from $3,000s to $5,000s while last year it took a full week.

This heightened volatility also resulted in record volume on cryptocurrency exchanges.

Be greedy when others are fearful?

A spectacular ‘buy the dip’ opportunity came in after a single 1-day candle the price of the digital asset dropped 40% that hasn’t happened since 2014. However, with the crypto market in “extreme fear” with a reading of 10 on a 1-100 scale of Crypto Fear and Greed Index, investors are fearful of marching in and following Billionaire investor Warren Buffett’s

“Be fearful when others are greedy and greedy when others are fearful.”

For now, the price of the leading digital asset has climbed above $5,000 and hovering around $5,500, still down 30% in 2020 so far while managing $1.89 billion on top ten exchanges with real volume.

“Bitcoin just closed its largest daily range % & worst performing day since 2016. Taking the 10 largest daily ranges, next day range average out to 16.41% indicating high volatility following these extreme days. 1-2 day returns are + following down days & – following up days,” noted Market Science.

9.8 million BTC in Loss

Popular crypto derivatives exchanges BitMEX, that offers leverage of 100x, is reportedly the perpetrators behind this carnage. Amidst the cascading liquidations on the exchange, bitcoin found the bottom as trader Jonny Moe notes, “Literally -to the minute- of BitMEXgoing down, BTC immediately began its recovery. What a coincidence.”

In the traditional markets, a 7% drop in the price of the benchmark index triggers a halt which in the past few days have been hit several times but in the cryptocurrency market, it only means finding a new low after anther and getting REKT, highlighting the need for regulatory clarity and oversight in the space all the much more.

Besides the “true liquidations,” these extreme losses were also “100% driven by coronavirus (Covid-19)” and to some extent by US President Donald Trump, ECB, and the Fed that “delivered squat and crashed the market,” said economist and trader Alex Kruger.

This drop in Bitcoin’s price also puts more than half of the circulating supply of the flagship cryptocurrency, 9.8 million BTC in loss. This has been the first time in over a year that the percent of Bitcoin supply in profit is less than 50 percent, as per Glassnode.

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Author: AnTy

Vodafone Turns To ‘Trust Your Supplier’ Blockchain-based ID Platform To Increase Diversity

Vodafone, the multinational telecom company, is exploring blockchain tech in an attempt to enhance its supply chain and verify its suppliers.

If it integrates blockchain with its internal processes, it will manage to enhance its supply chain. Known as Trust Your Supplier, a digital identity platform, they are able to endorse and authenticate suppliers, per a Vodafone announcement on 3/6/2020.

Criteria for Diversity to Be Implemented

In the same announcement, Vodafone also explained that it is implementing diversity criteria in order to influence decisions on procurement, all while not ignoring the standard criteria that include value, technology, safety, and delivery when suppliers are invited to manage the business.

Developed last summer by tech behemoth IBM and Chainyard, a blockchain company, Trust Your Supplier doesn’t have only Vodafone as a founding member. On the contrary, its founders include Lenovo, Cisco, Schneider Electric, Nokia and even one of the biggest pharmaceutical companies in the UK, GlaxoSmithKline. And these are only a few of the big names behind it.

The Trust Your Supplier platform’s main objectives are eliminating manual processes than consume too much time and reducing the risks of errors and fraud.

Blockchain Embraced by the Telecom Sector

Telecom providers from all over the world are deploying blockchain more and more, and even for other than their supply chain. For example, Telefonica closed a partnership with the Association of Science and Technology Parks and allowed access for around 8,000 Spanish firms to its blockchain.

The largest telecom firm in South Korea, KT, was about to launch a blockchain-based currency for the city of Busan on December 30, saying the currency could have been used with any credit card terminal, especially more at small local business and less at larger retailers so that shopping with businesses run by families or individuals and not corporations would be encouraged.

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Author: Oana Ularu

Ripple Price Analysis: Can XRP Break the Supply Level at $0.30?

Key Highlights

  • XRP/USD market consolidates below the $0.30 supply zone for about a couple of days.
  • The XRP price now experiences a pit stop between $0.30 and $0.20 lines.
  • Either a breakout or a reversal at $0.30 mark will signify a clear-cut move of the XRP market.

Major supply zones: $0.35, $0.40, $0.45
Major demand zones: $0.20, $0.15, $0.10

Ripple (XRP) Price Analysis February 9, 2020

About December 18 last year, XRP has been on a relative increase against the market valuation of the US dollar. The crypto was previously trading a bit below the immediate demand zone at $0.20 point. After a long series of a slow upward-moving spree, it is now trading closer below the $0.30 price line. The market has been converging very closer to the point earlier mentioned over a couple of trading days.

In the meantime, $0.25 price remains the wary point that the bears will have to breach southward to suggest a potential return of a decline move in this crypto trade. However, a reversal at that point could give way to an upswing above the $0.30 market value.

Ripple Technical Indicators Reading

The XRP market’s worth has been about some days ranging above its the 14-day and the 50-day SMAs since the smaller indicator crossed the bigger northward on Jan. 14 until now. Being as it is, the crypto may continue to trade in the form of range outlook between the market lines of $0.25 and $0.30 in the next sessions as long as volatile move occurs.

A breakdown of the 14-day SMA may lead the crypto value toward approaching its previous low point around $0.20 mark. The Stochastic Oscillators are now consolidating around range 80. That denotes that the market is now facing a consolidation move. At this point, traders need to exercise some degree of patience.

Conclusion

The interception of the 50-day SMA indicator by the 14-day SMA northwardly indicates that the bulls have been in the control of the XRP market to a visible extent. But, currently, the market is in a consolidation moving outlook a bit below the. If the bulls fail to push past the $0.30 point, there will be a possibility that the crypto will trade at a low point of its bigger SMA indicator.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Former Ripple CTO Jed McCaleb Still Got 4.7 Billion XRP to Dump on the Market

  • 5% of total existing XRP supply is still left with Jed McCaleb, founder of Ripple, Stellar & Mt. Gox
  • Arthur Britto also holds billions of XRP in escrow that are to expire in the future

Whale Alert that monitors blockchains has taken to analyze XRP whale, Jed McCaleb. Founder of Mt. Gox, Ripple, and Stellar, McCaleb is one of the most famous whales of crypto space that has been a matter of concern for XRP investors because of the 9 billion XRP tokens he claimed to have received as part of his compensation for his role at Ripple.

A significant portion of his assets has been sent to Ripple for unknown reasons. Former Ripple CTO has also donated at least 140 million XRP to various charities.

In its latest study, Whale Alert tracked around 8 billion XRP to Ripple, a settlement account and his personal accounts from here McCaleb actively sells. In May 2014, when he first shared his intent to sell XRP, McCaleb’s holdings were worth about $45 million.

They managed to track the sales of 1.05 billion XRP, “almost exclusively through Bitstamp,” between 2014 and 2019 at an average price of 0.129 cents, putting the total sale amount at $135 million USD. McCaleb continues to sell, even last month he sold another 19 million XRP.

The profits have also been cashed out directly through Biststamp with no evidence of it being reinvested into the crypto market.

At present, 4.7 billion XRP which is around 5% of total existing XRP supply is still left with McCaleb, worth over a billion dollars, estimates Whale Alert.

“At the current rate it would take him around 20 years to sell all of it, however his activities have been limited by the settlement agreement with Ripple, which is likely to expire sometime in 2020.”

Insignificant amount but economic power can’t be ignored

The big question is does McCaleb selling XRP affects the price of the third largest digital asset by market cap. Whale Alert found that compared to XRP’s total trading volume per day, the amount his selling is “insignificant.”

But volume is not a good indicator for how much the market can absorb, as it explains, “It’s likely that a very significant part (if not most) of the volume on exchanges comes from comparable traders and that the net change of XRP on the market is much lower.”

The real question is how much effect does this whale have on the net amount of XRP available. Though there is not enough data, “because he is exclusively selling XRP, he is adding to the net amount available,” wrote Whale Alert.

While McCaleb has 4.7 billion of XRP left to be dumped on the market, Ripple co-founder Arthur Britto also holds billions of XRP in escrow that will expire in the future as well.

The significance of a large amount of sale on XRP’s sale might not be big but the “economic power and consequences of whales cannot be ignored,” concludes Whale Alert.

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Author: AnTy

Bitcoin Supply of Huobi & BitMEX Shot Up While Poloniex Crashed

  • The supply distribution for exchanges has become “significantly more distributed,” is a “positive sign for the health of the overall market”
  • Poloneix’s BTC supply dropped to its lowest levels since Jan. 2016

In 2018 Bitcoin price went through a brutal winter, losing 84% of its value. In the second half of 2019 as well, BTC went from $13,900 to $6,400. But despite the ups and downs in the price, the total amount of BTC held on the nine exchanges surged over the last five years.

While Gemini and Bittrex saw a large increase in early 2018 only to level off, Binance continued to grow after 2018. Bitstamp saw a sudden dip in their supply due to moving their cold storage back and forth between Xapo.

Poloniex BTC Supplies Dropped to Lowest Levels since Jan. 2016

The biggest hit was taken by Tron founder Justin Sun who invested Poloniex. Launched in 2014, Poloniex thrived in the unregulated market becoming one of the largest exchanges in the world. But coming to the end of the 2017 bull market, it suffered from scaling and support issues.

After acquired by Circle in February 2018, in less than two years, the company announced they were spinning out Poloniex. Things continued to get worse for the exchange as one month after that in Nov. 2019, it ended support for US customers. All of this sent Poloniex on-chain supplies to their lowest levels since Jan. 2016.

2019 Recorded a Surge in Exchanges’ BTC Supply

Crypto derivatives exchange BitMEX that offers leveraged trading of up to 100x has been only growing steadily over the last few years. Founded in 2014 as well, the Seychelles-registered platform increased its BTC supply during the 2018 bear market.

Despite being under investigation by the US CFTC, its “insurance fund” of BTC grew by more than 63% in 2019.

The exchange that emerged as the winner is Huobi which had moderate success over its first five years of operations. It was during the second half of 2019 that the exchange saw a large increase in both BTC and ETH supply.

Huobi was also the platform that received large quantities of BTC and ETH from China-based Ponzi scheme $3 billion PlusToken scam.

During the last five years, supply distribution for exchanges has become “significantly more distributed, which is a positive sign for the health of the overall market.”

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Author: AnTy

IBM And Maersk’s TradeLens Blockchain Tracking Platform Adds Largest Shipping Port In Oman

Salalah, the largest port in Oman, has signed up to IBM and Maersk’s blockchain supply chain platform TradeLens.

According to a Times of Oman report from Wednesday, the port has only recently been included in the shipping data project, in an attempt to make some digital transformations. TradeLens allows companies and shipping supply chains to share information on cargoes in real time, through its permissioned blockchain. This ensures increased efficiency and more transparency when it comes to international trades.

Salalah to Make Shipping Operations Transparent

As Times of Oman says, the Salalah port is trying to collaborate with other supply chain entities to make its operations digital. It’s believed TradeLens can be very helpful when it comes to bringing transparency to shipping operations. This is what Port of Salalah’s CEO, Mark Hardiman, had to say about using blockchain tech for the port’s operations:

“Adopting and incorporating blockchain technology into all aspects of the supply chain will not only enhance the attractiveness of Salalah for [ecosystem] companies but also support the development of new business models that can further leverage the geographical location of Salalah.”

TradeLens Has Welcomed Aboard Many Major Carriers Last Year

The TradeLens project has been launched in 2018. It has seen many of the most important carriers joining its platform last year, as in the beginning, shipping companies were reluctant to work with it because it was favoring only founding companies. At the moment, there are over 100 participants on the TradeLens platform, including shipping firms and port regulators or operators.

Thailand’s Customs Agency Also Working with TradeLens

In August 2019, Thailand’s customs agency integrated its shipment tracking procedures with TradeLens. The platform was antitrust exempted by the US Federal Maritime Commission to no longer be legally restricted when it comes to cooperating with US Shipping Act of 1984’s mandated shipping companies. According to reports, port of Salalah had a yearly volume of 4 million shipping containers in 2019, when it broke its own record.

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Author: Oana Ularu

TRX Bagholders Must Get Ready For More Fireworks As Tron Supply To Shoot Up On New Year’s Eve

  • 33 billion TRX worth $450 million to be released in the market on January 1st, 2020
  • This 50% of TRX circulating supply could lead to a drop in its price
  • “People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth,” says analyst Mati Greenspan

Tron Foundation is going to be releasing a whopping 33 billion TRX, worth about $450 million in the market on New Year’s Day.

These 33 million were locked by the non-profit organization after Tron made its shift from Ethereum blockchain to its mainnet. A few days before its Independence Day on June 25th in 2018, Tron Foundation CEO Justin Sun, who is the founder of the cryptocurrency TRX announced a token burn of 1 billion TRX.

At that time the organization burned 50 million USD that Justin Sun said was “the most amount of money destroyed in human history.”

At the mainnet launch, out of the total supply of 99 billion TRX, about 33 billion TRX held by Tron Foundation were locked in 1000 addresses of TRON Mainnet. These TRX would have been then unlocked on January 1st 2020, which is just about here.

A Dump Incoming?

33 billion TRX is about 50% of the current circulating supply of 66.6 billion TRX in the market, increasing the supply of TRX in the market.

While the supply will see an increment of 50%, the demand remains the same, which has been slow in the second half of the year. This means the price could see a fall.

At the time of writing, the 12th largest cryptocurrency with a market cap of $910 million is currently trading at $0.0134. TRX registered negative returns of 30% on a year-to-date basis and is also down 96% from its all-time high of $0.302.

However, TRX is not the only which is a bad performer, a vast majority of altcoins are crashing hard. This Mati Greenspan, founder of investment firm Quantum Economics says is because the “entire industry is returning back to Bitcoin” during this current period of “great consolidation.” He added,

“People are realizing that many of the altcoins had exaggerated valuations beyond what the projects were worth.”

Amidst this bad news, however, Sun has come up with another announcement of an announcement that he says would be good for TRX and the Tron ecosystem. He tweeted,

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Author: AnTy

Demand for Trained Blockchain Experts in China is on The Rise

The demand for blockchain technology experts in china is higher than the supply of such talents. The industry is offering a variety of job opportunities that require high qualifications in the field. Reports show that there are many job seekers in the field, but not many of them possess the requisite knowledge and skills required in the application of blockchain tech.

Many of the job seekers are just interested in the high salaries available in the blockchain field despite them not meeting the qualifications. This has led to the scarcity of employees in the industry as employers compete for the few qualified blockchain talents. Most of these employers are Chinese internet and entrepreneurial companies and require both technical and soft skills. Some require blockchain tech development engineers, product managers, and technology experts.

Salaries in the blockchain space range between 20,000 Chinese Yuan and 60,000 Chinese Yuan per month. An average salary in a blockchain-related job is about 16,000 Chinese Yuan, which converts to $2,322. Surprisingly, the average salary in the blockchain industry is about twice the country’s average salary, according to a recent report released by 8btc.

Technology cities in China are competing to hire the few fully qualified blockchain talents available in the country. The city of Guiyang issued a policy in 2017 that highly qualified blockchain talents to enjoy apartment treatment and living allowances. Hangzhou issued a 3 million Chinese Yuan subsidy in May 2018 to attract highly skilled blockchain talents.

However, the recruitment of blockchain enterprises has dropped by 53.68% after China’s regulatory authorities recently pressed too hard on cryptocurrency. For the same reason, the number of blockchain recruiters has also dropped by 51.71%. Despite these shortcomings, the number of employment seekers is 7.12 times the recruitment demand.

Blockchain talents are split into two fields; application development and the fundamental structure talents. These qualified programmers play a crucial part in the development of blockchain technology. Many of these talents have acquired their skills through self-study.

Over ten universities in China are currently offering blockchain-related programs. Tsinghua University has been offering blockchain courses that are yet to be made majors. A couple of colleges are also offering training programs on blockchain technology through cooperation with blockchain enterprises. Huobi, a leading crypto exchange in China, has also partnered with Xiamen University to train students on blockchain tech.

China will be investing heavily in training more blockchain talents in the future due to their high demand. This will be achieved through the establishment of blockchain research programs and training computer and information security personnel. There is also a need to introduce blockchain knowledge in management and finance majors.

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Author: Denis Miriti

This Could Lead to a Bitcoin (BTC) Price War

China started the decline in BTC price and miners releasing additional supply into the market further put pressure

S9-Antminer rigs no longer profitable, so the old machines need to get a shakeout. Miners are easy to regulate and provides tax revenue benefit unlike crypto exchanges that helped fuel speculation and capital flight in China

What is behind the 15% drop in Bitcoin price?

According to several commentators, it is China. CNBC’s Brian Kelley claimed China cracking down on crypto trading is what got this bloodbath started and then some miners getting capitulated did the job further.

Economists and trader Alex Kruger also tweeted.

However, analyst Mati Greenspan believes we are just looking for a “scapegoat.” This is because even though it has been promoting blockchain technology, China hasn’t reversed its stance on crypto trading.

PBoC’s latest move against crypto trading has people “downright scared”. This can be seen in the Crypto Fear and Greed Index that is signaling “extreme greed” for the past few days as BTC price today fell to $6,515 level.

Miners Releasing Additional Supply into the Market

Greenspan in his newsletter on Monday said China news is only half the story. He pointed out that much of the crypto community on social media are long term BTC hodlers who “won’t necessarily be knocked off their positions by FUD.”

The other half of the story is the miners releasing additional supply of their BTC stash, stored during the bull run in the market. Just this morning, Dovey Wan, founding partner of Primitive Crypto in an interview with BlockTV shared that 50% of the current hash rate is contributed by S9-Antminer rigs and they are no longer profitable.

This year, the hash rate of the Bitcoin network has also increased significantly, making an all-time high in late October. This “unprecedented growth” Greenspan says is for the most part because of advances in ASIC technology. As new rigs come online, the hash rate has grown, Greenspan continued,

“what we’ve yet to see, or may be seeing at this moment, is a shakeout of the old machines. Let’s just hope it doesn’t lead to a price war,”

Bitcoin mining profitability calculator, Source: CryptoCompare

Bitcoin Mining Works in Regulators’ Favor

When it comes to mining, China dominates with 70% of global bitcoin mining operations. And in late October, in a surprising move, China’s economic planning agency removed crypto mining from its list of activities set for being banned or eliminated.

This decision reportedly left many miners confused about the central government’s stance on cryptocurrency. However, it doesn’t mean there would be “a wild growth of mining farms,” said Wang Hongyi, who manages mining machines in the provinces of Sichuan, Shaanxi, Xinjiang, and Inner Mongolia. Miners he said think:

“very far ahead in the future and [believe] this type of business will come under regulation.”

They are actually expecting the electricity fees to rise because

“once the government regulates it, they will want the fee to cover construction and fire services, etc.”

But while it will increase the cost of operation, it will make it easier for miners to work with governments, Wang said.

Taking a look from the regulators’ side, cryptocurrency exchanges have been bad for them because they helped fuel speculation and capital flight whereas mining can provide tax revenue benefits, Martin Chorzempa, a research fellow from Peterson Institute for International Economics shared his views with the South China Morning Post. He said,

“My sense was always that they [miners] are easier to regulate because they run on physical hardware in China and you know who won each block and how much that is worth because that is all public information.”

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Author: Carl T

Why is Tezos (XTZ) Enjoying a Rush of Green Amidst the Bloodbath on Crypto Street

  • XTZ up 70% against the USD and 82% against BTC in the past month
  • The basic supply and demand driven by staking are pushing the prices up

In the past 2 days, Bitcoin lost about 21% of its value. Altcoins followed the leading cryptocurrency and dropped 20 to 30%. This resulted in wiping out $50 billion from the total market cap.

However, Tezos is one cryptocurrency that is not following this trend. On Nov. 22, XTZ registered a loss of 14% but soon after it jumped over 27% to $1.40, last seen in early August.

At the time of writing, XTZ was trading at $1.33, as per Coincodex. Tezos is up 70% against the USD and 82% against BTC in the past month and 175% YTD in the USD market. But despite these gains, it is still down 88% from all-time high of $10.7.

Source: Coin360

What’s Driving XTZ Prices Up?

So, what’s behind this surge?

Recently, Tezos partnered with Tribe, a Singapore government-backed blockchain platform to launch a trading program for developers in the Tezos blockchain.

But there is more than this. It is actually, the basic supply and demand driven by staking.

Staking or called baking in Tezos is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network that adopt the Proof of Stake (PoS) consensus mechanism or its variants. In the process, the crypto is locked to receive rewards.

Most of the users delegate this to a baking service for a percentage of its rewards as a fee.

A few months back, Coinbase Custody announced staking for Tezos, offering rewards of about 6%. In the first two months of the baking, the US-based crypto exchange platform generated an estimated revenue of $7,580-$8,324 from Tezos rewards.

Initially, it was only available for institutional clients only to be extended to all of Coinbase Custody’s US customers. This week, it expanded its XTZ staking services to all of its global clients as well.

Last week, Amun AG launched Amun Tezos exchange-traded product (ETP) with staking rewards where the underlying asset is held by Coinbase Custody.

Over 70% of XTZ Supply is Locked in Baking

With Coinbase already stepped up XTZ staking, Binance, Kraken, and others are expected to follow up soon. Already, over 71% of the Tezos circulating supply has been staked, as per Messari which could be expected to rise further as “On-chain data shows demand for baking is steadily increasing.”

Jack Miller, a partner at Cosimo.fund shared that Coinbase is one of the reasons for the increasing demand by making staking extremely simple. The exchange automatically starts baking for XTZ holders if they have more than 500 XTZ in their wallet for a fee of 25% of rewards. He stated,

“Coinbase Custody is over-subscribed by 15,557,014 XTZ. They need about ~2 million tezzies ASAP to be able to pay out all delegated users. They will also have an insufficient security deposit for their existing users in 4 cycles (12 days).”

With 70% of XTZ already stored in baking, the supply of Tezos is shrinking while demand for XTZ is growing because of an increase in demand in baking and need to buy and hold a lot of XTZ to earn revenue via staking, as such pushing the price of Tezos up.

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Author: AnTy