Bitcoin is Gold on Steroids that would Make an All-time High by Halving: Galaxy Digital CEO

Earlier this week, Bitcoin breached $10,000 and since then we have been keeping above this level.

The digital asset is up 40% in 2020 so far and according to Michael Novogratz, the founder, CEO and chairman of Galaxy Digital that invests in cryptocurrency, it could further continue its upward trend and “by the end of the year we certainly take out the old highs.”

Bitcoin started climbing up last year after losing 84% of its value in 2018 from the high of $20,000 hit during the 2017 bull run.

“Right now bitcoin feels a little frenzied,” Novogratz said on CNBC but feels a new high of $20,000 could come as soon as the havening in May 2020.

Bitcoin is a Social Construct

During his interview, he emphasized that Bitcoin is becoming a store-of-value, as compared to other crypto assets. “Coming out of the ashes, bitcoin has really developed its own lane as a store of value.”

He further explained that gold has got three thousand years and ten trillion dollars behind it. Bitcoin he said is probably the best new brand in the last eleven years,

“Two hundred billion dollar market cap for the line of code that came out 11 years ago. It’s a social construct, it’s nothing technical.”

Barrel of Liquidity Driving Stocks, Gold, & Bitcoin

As for what’s driving Bitcoin, the former Goldman Sachs macro trader said it’s the monetary stimulus around the world, particularly in China in response to the deadly coronavirus. Novogratz said,

“The Chinese are about to pull two giant bazookas out and stimulate the heck out of the second-largest economy in the world.”

“That’s going to be good for Chinese stocks at one point, but that stimulus always finds its way around the world.”

And the same “liquidity” is driving Bitcoin, with global rates low and people pumping in money with the Chinese government preparing for round two. This barrel of liquidity is not only driving stocks but crypto and gold as well.

As we reported, analyst Mati Greenspan and analyst PlanB share the same opinion that the government printing money is what’s driving the bitcoin rally.

But bitcoin didn’t react to this liquidity every time central banks pumped money in the market during the last eleven years because the market is maturing. Additionally, the likes of Bakkt from Nasdaq’s parent company ICE and Fidelity are adding plumbing through crypto custody solutions to allow people to feel more comfortable holding Bitcoin.

Belief in Store of Value

Some may believe in the monetary theory but Novogratz says gold’s movement shows, not everyone does. As we have seen “with stocks at an all-time high gold shouldn’t be trading as well as it does,” but the precious metal has been trending up as well.

Gold climbed to its peak in late 2011 at just above $1,800 per ounce to drop to $1,064 in Dec. 2015 has been on the rise ever since, currently at seven-year highs at $1,583 per ounce.

And Bitcoin is a version of gold, “it’s just on steroids because it’s an early adoption.” That’s why Novogratz feels Bitcoin’s new high could come as soon as in the next few months.

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Author: AnTy

Top 10 Cryptocurrencies In 2019 by ROI Doesn’t Include BTC In The First Half

  • There’s less than a week left in 2019 but before we start a new year, let’s see which crypto assets ruled the market in the past year.

Bitcoin isn’t in the Top 5

The leading cryptocurrency Bitcoin surged to $13,900 level just at the mid of the 2019 a level that was last seen in early January in 2018 when BTC was in a downtrend. On the uptrend, we see it in early December in 2017 which was the first time, we hit that level.

Bitcoin, however, couldn’t sustain this level and soon made its way to the downside and is currently trading around $7,300. We are, however, still up about 94% YTD that has it among the top ten cryptos with the best return on investment (ROI). But we still couldn’t make it to the top 5 and are lower at 7th spot.

Trader NebraskanGooner shared through on Twitter,

Litecoin, VeChain, and RVN

With 32% gains, Litecoin is in the tenth spot that experienced its second reward halving. In 2019, after the reward having, the hash rate tanked while in a sudden move the transactions shot up.

In Sept., it has been one of the worst performers only to break the yearly high. While the crypto asset made “great progress” on the implementation of Mimblewimble, the Litecoin network also suffered from dusting attacks.

On 9th and 8th spots are VeChain and RavenCoin with 34 and 57% ROI receptively. This year we saw VeChain releasing a new blockchain tracking solution for food and beverages. VeChain partnered with Walmart, BMW, Haier, and the Republic of Marino as well. The company also announced a VET buyback program that resulted in $6.6 million of its token getting stolen.

The Key Player of the Fastest-Growing Company in Crypto Space

One step above Bitcoin is BNB, the native token of leading cryptocurrency exchange Binance which is up 135% in the past year.

At one point, BNB has been up 500% which is kind of a no-brainer because it is the center point of the fastest growing platform of crypto space. From Binance Chain, Binance DEX, IEO, to trading fees, the actually usable asset is everywhere on Binance exchange.

Economist & trader Alex Kruger on what got Binance so popular among people in a Feb 2019 Tweet,

CEO CZ himself, customer service, perception of funds safety, great product, user-friendly, community outreach, transparency, marketing, mobile app, innovators, volume/liquidity, pumps, lots of coins, low fees, BNB, trading profits, not spooked by regulators, and pushing global adoption are some of the reasons behind Binance and BNB’s success.

The Exchange Token

Yet another exchange token. Exchange tokens have been the norm of the market in 2019 which has been outperforming the other cryptocurrencies by a wide margin.

The Huobi exchange native token Huobi Token (HT) is at the 5th spot with 159% gains. One of the oldest crypto exchanges, it reduced the supply of its token in July this year by burning a whopping 14 million HT tokens in its quarterly burning event, which has been at a rate that was 116% greater than its previous quarter.

The Hottest One

Currently, the hottest cryptocurrency in the market is Tezos whose more than 70% of circulating supply is locked due to staking. Up over 179% over the past year, this year, the top exchanges like Coinbase, Binance, and Kraken introduced baking on XTZ that had its price shooting up.

Staking is expected to see much growth in the coming year with Caleb Kow, CEO of Tezos Southeast Asia himself predicting,

“Many who never came from the POW world would also start to explore staking for the first time and enjoy the seamless process.”

The Top 3

Centrality (CENNZ) recorded an ROI of 290% which is yet another token in the staking game.

Chainlink (LINK) is at the 2nd spot with 483% gains. This year LINK went into partnership with Binance, Deutsche Borse, Intel and got listed on Coinbase. LINK price’s “Parabola meme (meanwhile is) still intact” says trader Scott Melker but if it breaks, according to him we can expect at least a 40-50% drawdown.

The ruler of the market is EDUCare (EKT) which has been up a whopping 1,300 percent.

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Author: AnTy

All Roads Lead To Bitcoin (BTC) Price Dropping Back Down

  • Analyst Magic is extremely bearish, predicting a 60% drop in April 2020

After the first week of trading sideways, Bitcoin has started slowly making its way downwards. From $7,500 on Dec. 9, today, we dropped to $7,072.

As Bitcoin turns red, altcoins follow the world’s leading cryptocurrency and register loses.

All Roads Lead to a Drop

Crypto trader Josh Rager is seeing all the roads leading us back down below weekly support at $6,902 because “HTF frames remain bearish trend and it’s looked weak in this range.”

Though BTC price could have a short term bounce, he is expecting another move down at least one more time. The time, according to him is to “accumulate.”

However, analyst Magic Poop Cannon who has been bearish on the flagship cryptocurrency is predicting a 60% drop in price. According to him, a new low will be coming at $3,000 level.

The call for a severe drop might not be seeing much mentions in the market as many like analyst Willy Woo and data analytics platform Glassnode are saying Bitcoin is close, but some like Magic and even veteran trader Peter Brandt has been calling for more pain ahead.

However, while Brandt has been projecting $5,400 as the bottom in June next year, Magic is predicting a 60% fall in April 2020. Majic said,

“Over the next six months or more, I think BTC (and the rest of crypto) is going to destroy a lot of hodlers. BTC looks very bearish, and I’m not only talking about short term price action. It looks long-term bearish.”

A warning call has also been made by trader CL who notes that the time-weighted average price of 2019 is at $7,100-7,200s.

And if we are in a bull market, bitcoin should not be below this level for “for a prolonged period.”

Meanwhile…

Crypto exchange OKEx also states in its blog update,

“Candlestick patterns and technical indicators have suggested that BTC volatility could increase in the short-term, with a bias slightly towards the downside.”

Retail Investors are on the Sidelines

With the majority of the crypto twitter turning bearish, it won’t be surprising if Bitcoin decides to make a move in another direction. Moreover, with volumes extremely low, a big transaction has the ability to move the market as well.

Matt D’Souza, Co-founder of Blockchain Opportunity Fund meanwhile shares a bullish picture saying, “We believe we are in the first 1/3 of a bull market.”

He points out how CME volume outpaced Coinbase and Bitfinex in Q1-Q3 of 2019 which indicates crypto was led by institutional money, signaling a market cycle turning point.

Institutions meanwhile won’t invest in ICOs that are surrounded by regulatory uncertainty and have liquidity issues. As such, now that altcoins are experiencing zero to negative returns, it means retail investors are on the sidelines.

“Once the last retail is in there are no more buyers left. All buying is exhausted and we experience a top. We are presently in the opposite environment where the institutions are accumulating, while the retail shows zero interest.”

No matter the next move Bitcoin will make, the best step, for a HODLer at east, is to accumulate – stack those sats.

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Author: AnTy

There’s Never Been This Many Addresses Ever HODL BTC in the History of Bitcoin

  • Do not mistake volatility for meaning
  • ~4.87% of all BTC addresses have a non-zero balance

This entire week Bitcoin has been constantly on the up and down. We started December at about $7,500 only to fall to $7,070 level in the following days.

At the time of writing, BTC/USD has been trading at $7,540 with 24 hours gains of 2.52% as per Coincodex while down by nearly 19% in the past month. Volume, however, is still extremely low just like the rest of the week at $270 million.

The lack of volume behind this surge is why there is no confidence in this move. It also means any large transaction is having an outsize impact on price.

“I get it, price has moved up. But It seems like everyone is immediately hyper-bullish. First 7800, then 8200. Until then you are mistaking volatility for meaning,” says trader Cantering Clark.

~4.87% of all BTC Addresses have a Non-zero Balance

However, while the price may have yet to give any strong bull signals yet, there is one chart that is painting a very bullish picture.

The total number of Bitcoin addresses that hold some amount of BTC, are non-zero, has hit an all-time high at more than 28 million addresses, surpassing the previous record made in early January 2018.

As Glassnode puts it, “There have never been this many addresses holding btc in the history of Bitcoin.”

When non-zero addresses hit ATH, BTC price was around its peak at about $20,000. But in the next two months, these addresses reduced by about 7 million while the price dropped to $8,800 level.

Ever since then, these addresses have been on the rise and hit an ATH recently while the price is trading around $7,500.

“~4.87% ( ~28.3M out of ~586M) of all BTC addresses have a non-zero balance,” notes on-chain data platform TokenAnalyst.

This metric is one of the best ways to provide us with the total number of Bitcoin users. However, it has its limitations in the way that one user can have many wallets, one wallet can hold many addresses, and one address can hold many UTXOs.

Also, many users keep their BTC with exchanges and custodian meaning one single address is holding the funds of many customers.

But they both kind of offset each other because while the first point gives us with more addresses, the second one undercounts the actual numbers.

So, this metric gives us the nearest if not the best idea of the Bitcoin adoption growth.

Addresses with a Balance of more than 0.1 BTC, 1 BTC & 100k BTC Slightly Down

Meanwhile, addresses with a balance of more than 0.1 BTC have are down to 2.817 million from its peak of 2.847 million addresses in mid-October. The same is the case for addresses with more than 1 BTC, they are down to 778k BTC from all-time of 788k from late October, this year.

Those that have over 10 BTC have taken a dive to 152.6k address from 157k in September. There are just over 16k addresses that has more than 100 BTC which is down from 18.5k in July 2017.

Interestingly, addresses that are holding over 100k BTC have risen to its ATH at 2,187 on Sept. 28, 2019, and are currently at 2,135.

The richest bitcoin address — a lot of which are exchanges, custodians, and OTC — that have over 10k BTC is currently at just 107, down from its ATH of 125 in Nov. 2018, from where it took a drop to 97 BTC in mid-December 2018 when the price hit its bottom at $3,200.

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Author: AnTy

Bitcoin Bull Run Set to Start on Thursday Based On One Prominent Mining Metric

Last week, Bitcoin was having trouble adjusting per PlanB. An analysis was showing that a previous difficulty reduction of 7% can give some signals that a major bull-run is about to start if a significant increase was about to follow.

When PlanB made the analysis, there was a 4% difficulty increase predicted for the time of the adjustment. However, things have changed and the fall was 0.8%. What’s good to know is that ever since then, the miners have started to churn out blocks, which once again indicates a 4% difficulty increase for Thursday.

PlanB Offers the Most Accurate Predictions

PlanB is a champion when it comes to the stock-to-flow (S2F) Bitcoin model. It has always been accurate throughout the last 9 years, having the most reliable prediction tools and giving a long-term forecast of $100k for Bitcoin by 2021.

PlanB has started to first analyze difficulty adjustments after the 7% reduction from November 7th and 8th. Inspecting this reduction more closely, things no longer seemed so negative because such drops have happened before, not to mention price gains have been indicated when they were followed by a major difficulty increase.

Bitcoin Price Won’t Be the Only One to Swing

At a 4% gain by November 21st, good things are sure to happen. However, seeing that predictions arrived right at the beginning of a new difficulty period, a few slow blocks in this situation may have quite a major effect on expectations. While the predicted adjustment was getting closer to -0.8%, the bull-run was no longer in the cards because the gain wasn’t desired, nor a significant reduction was in the cards for a gain to be expected. However, after a week and a chance at 4%, the bull-run is anticipated for Thursday.

This Has Happened Before

While this has happened before, it still doesn’t ensure a significant bull-run. At the same time, it doesn’t offer any guarantee that any adjustment in the predicted difficulty won’t happen before Thursday. In the event in which everything stays the same and the history of the Bitcoin continues to work as it did until now, the bull-run is sure to deliver.

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Author: Oana Ularu

Central Bank of Tunisia Refutes Claims Of Launching A CBDC Dubbed The E-Dinar

Last week, rumors that the Central Bank of Tunisia is looking to launch the E-dinar digital currency were circulating, but this week, the bank said that the claims were unfounded and that it doesn’t plan to issue a CBDC, also known as a central bank digital currency. It seems that a POC (proof of concept) project that was in discussion at an event in Tunisia was misunderstood, this being the reason for the false information getting spread.

The Bank is Prospecting all the Alternatives

In spite of the fact that it has rejected the rumors, the Central Bank of Tunisia still admitted that it’s considering the CBDC option, seeing that it’s studying all the financial alternatives available. However, there are no plans to launch an E-Dinar. It’s just that the bank is looking into new technologies and the opportunities they offer, assessing the risks and investigating methods of promoting financial stability and offering cybersecurity.

Where Did the News Come From?

The news on the Central Bank of Tunisia launching the E-Dinar were launched after the state-owned Russian news agency Tass said that the Central Back is partnering up with the Universal Blockchain in order to create and issue a CBDC. It was claimed that the announcement was made at a FOREX Club event in Tunisia.

Still, the Central Bank denied these rumors and highlighted that it has only made a test demonstration for CBDC at the event.

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Author: Oana Ularu

Nearly 19 Million EOS Coins, Valued Over $60 Million Today, Transferred on EOS Blockchain

An eventful week for EOS as the cryptocurrency sees a mysterious 19 million EOS tokens transferred across unknown wallets on November 10. This follows the recent congestion on the blockchain as an airdrop of the EIDOS project launched and EOS locked out most users from accessing the platform. On the peak of the cycle, the coin was named the best cryptocurrency project by Chinese authorities in the latest technological report.

The transaction summed up close to $64 million USD in the value of EOS tokens transferred between the unknown wallets (except for one transaction that was sent from the Gate.io cold wallet storage). The transaction was separated into 12 different transactions that included 10 successive transfers of 1 million EOS tokens, worth approximately $35.6 million USD, and two transactions of 3.6 million EOS tokens (from Gate.io) and 4 million tokens successively.

While the value of transactions on EOS has remained rather constant in the past few weeks, the number of users has dropped drastically citing a challenge with the recent congestion of the blockchain due to an airdrop. In the past 7 days, the blockchain experienced a lag as EIDOS token contract launched on EOS rewarding users with more than 0.0001 EOS in the airdrop.

The slow nature prompted some of the community members to ask for a boost in the number of tokens available in the ecosystem to smooth the lag. Could the recent silent injection be a cause of EOS development team?

EOS Remains a Top on China’s CCID Rankings

In a sustained effort by EOS blockchain, the blockchain remained top in the latest rankings by the China’s Center for Information and Industry Development (CCID) workgroup. The blockchain dropped slightly from its previous score at 153.8 to 151.3 in the latest ranking that includes the blockchain’s basic technology, applicability, and creativity. Tron (TRX), and Ethereum (ETH) took the second and third place respectively with the pioneer cryptocurrency coming in 11th in the CCID rankings.

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Author: Lujan Odera

People’s Bank of China (PBoC) Launches Digital Payment Certification of Fintech Products System

In what has been China’s week for blockchain, The People’s bank of China (PBoC), launched a new certification program to regulate digital currency payments in the country.

The new laws will be set up and approved by the authority according to the official report released in a filing dated Oct. 26. The report states the “Certification of Fintech Products” will verify and certify 11 financial technology classes including digital payments.

Following President Xi Jinping’s remarks on the adoption of blockchain technology, setting up regulation on cryptocurrencies, CCP support on blockchain and the development of their sovereign digital asset, China is setting up to become the first country to go full crypto nationalization.

People’s Bank of China jointly promotes the integration of financial technology products into the nationally accredited certification system. With such a huge population up for digital payments and other financial products, the central bank launched the certification system that covers all possible payment systems in China including point-of-sale mobile terminals, embedded application software, user front-end software, and security carriers and chips.

The certification will be reviewed online and random checks by ordinary officials done on the payment systems. The license lasts for 3 years.

Launch of the Trusted Execution Environment (TEE)

According to the report, one of the 11 classified financial technologies, the trusted execution environment (TEE) focuses on blockchain payments which could open up the industry to the public.

Furthermore, this can assist in the establishment of a “consortium blockchain network and verifying blockchain transactions in financial transactions use cases,” the report states.

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Author: Lujan Odera

Binance CEO: Massive “Gains in Stock Markets will Spill Over to Crypto Soon”

Last week, China’s President Xi Jinping said China should hasten the development of blockchain technology and take a leading position in this nascent field. This drove blockchain-related stocks upwards on Monday.

Shenzhen Xunlei Networking Technologies is one of the companies, that sells cloud downloading services and is heavily invested in blockchain, which saw it’s stock market cap doubling over the night. This huge surge was the highest daily rise since the company’s listing on Nasdaq in 2014.

Dozens of Chinese blockchain-related companies listed on the A-share market maxed out their 10 percent daily limit on Monday. It has been expected that more capital flowing into the sector is to follow.

More Gains Coming Soon

Bitcoin price, meanwhile soared 42% last week, going as high as $10,600. At the time of writing, BTC has been trading at $9,383 with a 24 hours loss of 2.78%, as per Coincodex.

An explosion of interest in blockchain and bitcoin is also seen in search data on Baidu and WeChat, with investors correlating the price rise in the flagship cryptocurrency with this surge in interest.

This hike in stock market prices is also expected to be seen in cryptos in the coming days, projects Changpeng Zhao, the CEO of the world’s leading cryptocurrency exchange, Binance.

“Those gains in stock markets will spill over to crypto soon… Told ours guys to scale up system capacity, waiting,”

said Zhao.

Chinese altcoins like NEO, Tron, Qtum, and Ontology among others have been recording as much as 50% gains but have today dropped drastically, as much as 12%.

But as CZ and Wan have noted, if the capital flow moves in the crypto market in the coming days, we might see a new 2019 high for BTC and a movement in altcoins.

Today, Wan also reported another development, China Merchant Bank investing in BitPie, a Bitcoin wallet with “longest history and most users back in China.”

“All I can say is this to me it’s a sign of beginning of the nationalization of Bitcoin / Cryptocurrency related infra in mainland,”

she added.

In other news, the head of the technology department at the People’s Bank of China, Li Wei urged commercial banks to ramp up their application of blockchain and embrace digital finance.

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Author: AnTy

LocalBitcoin Suffers a Massive 30% Drop in Trade Volumes, Even In Low Economic Freedom Areas

From the first week of October, LocalBitcoins, a cryptocurrency exchange, could only watch as their trade volumes went into a freefall. At the end of last week, the exchange only saw around $38.49 million in BTC traded, while this may seem high to conventional people, for the finance industry, this is not a good sign.

For LocalBitcoins itself? It’s the lowest trading volume (Measured in USD) since September of 2018. Tallying it up, LocalBitcoins has lost more than a third of its trading volume within a month.

Excluding the trading volume in terms of USD, the number of Bitcoins being traded has dropped even more than the monetary value of it. With only 4,595 BTC changing hands last week, LocalBitcoins is experiencing one of the worst trading weeks in their entire existence. The only time they traded less Bitcoin was back in June of 2013, a year after they started trading altogether.  Compared to last month, where they show trading at 5,344, which means they experienced a hefty drop of 13%.

Most of this diminished trade volume is a direct result of reduced trading activity in both Sub-Saharan Africa and Eastern Europe. These two regions underwent a drop-in activity around 35%-40% in trading volume from the month before. While the Asia-Pacific region constitutes a small part of LocalBitcoins’ trade volumes, the firm still felt the massive 40% trade volume drop that happened in the region.

Digital Gold for the Third World

Interestingly enough, it’s been discovered that LocalBitcoins has a hold on a market niche that very few expected. It’s the most popular in countries with high corruption and low economic freedom. Throughout the 200 plus countries that the platform can serve, the highest trade volume increases were in places like Nigeria, Russia, Columbia, and Venezuela. These countries hold disproportionately high numbers of trade volume, considering its relatively low GDP or population.

Many speculators believe that bitcoin can be considered a “haven asset” due to its properties, so many people from economically unstable countries could see Bitcoin as a way to keep their funds safe. While there are a few issues about this, the most prominent being Bitcoin’s extreme volatility, it hasn’t stopped people from seeing it like that.

Even with this unexpected foothold in the Bitcoin trading market, LocalBitcoins is still falling in trade volumes. The reason for it has less to do with LocalBitcoins and more to do with the world’s bitcoin market slump. Trading volumes on crypto exchanges have been falling across the board. Messari has recently shown some troubling news: Where there was once a trading volume of over $4 billion in Bitcoin, there is now only $200 million. That’s an incredible 5% of what there once was.

Mati Greenspan, a market analyst at eToro, pointed this out on a tweet as well,

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Author: Ali Raza