Archive for the ‘Crypto Corner – Bitcoin, ETC’ Category

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani…

Source: Bloomberg

…topping $8,000 for the first time since before Thanksgiving…

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October…

Source: Bloomberg

But it's not just Bitcoin, the rest of the cryptospace has been bid since tensions escalated…

Source: Bloomberg

Additionally, as CoinTelegraph's William Suberg notes, Bitcoin may have just signaled its return to a bull market, according to fresh analysis using a century-old price prediction method.

image courtesy of CoinTelegraph

In a tweet on Jan. 7, ex-Goldman Sachs analyst Murad Mahmudov channeled the work of Richard Wyckoff to suggest Bitcoin was in the process of a major recovery. 

BTC puts in Wyckoff “SOS”

BTC/USD cracked resistance at $7,600 on Monday, surprising punters who considered the levels too difficult to pass under current conditions. At press time, the pair traded at $7,875, having reached $7,980 and gaining 5% on the day.

Wyckoff was the father of a whole new method of analyzing price performance, dubbed the Wyckoff Method. According to Mahmudov, who uploaded a chart to demonstrate Bitcoin’s position, the largest cryptocurrency has already put in a bottom.

Tuesday’s spike to near $8,000, for example, was an “SOS” point for BTC/USD in Wyckoff terms. SOS stands for “sign of strength,” and typically follows a so-called “spring” event which sees a price low point. 

After the SOS, a slight retracement called a “back-up” should precede further gains, according to the model. 

Bitcoin price as analyzed using the Wyckoff Method. Source: Murad Mahmudov/ Twitter

Accumulation phase ending?

Mahmudov did not comment on the extent to which he personally believed in the validity of the bull scenario, which would reverse a


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Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via CoinTelegraph.com,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Department of Justice.

image courtesy of CoinTelegraph

The accusations against BitClub Network

According to the press release, BitClub Network promised massive rates of return in exchange for investments in a shared cryptocurrency mining pool. The parties at the center of the scheme then allegedly misappropriated over $722 million of those funds into their own lavish living rather than the promised mining pool. 

Authorities further accuse the three men arrested of falsifying information on returns in order to solicit more investment as well as 

The three accused are Matthew Goettsche and Jobadiah Weeks — both from Colorado — and Joseph Abel of California. Authorities are charging the first two with conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, as well as conspiracy to offer and sell unregistered securities. Abel, who was apparently less central to the scheme, has only been charged with conspiracy to offer and sell unregistered securities, a charge that carries a maximum prison term of 5 years.

The press release mentions additional conspirators who have not been named or charged with crimes.

A suspicious history

This is not the first indication that BitClub may not be a fully above-board operation. Back in 2016, crypto news outlet 99Bitcoins warned against investing in BitClub, despite removing an earlier “scam” label from the company. The author, Ofir Beigel, explained: 

After gathering the facts I can’t prove that Bitclub network is a scam beyond a shadow of a doubt. I do however still think that Bitclub Network’s business model is lacking and wouldn’t invest in it personally.”

Back in March of 2017, Cointelegraph reported on accusations that BitClub had launched a malleability attack on the Bitcoin (BTC) network.


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The Road To Retirement: Millennials Put Their Faith In Bitcoin But Goldman Says Go With Gold

Courtesy of ZeroHedge View original post here.

"Drop Gold" – the ever-present tagline of Grayscale's Bitcoin Trust TV commercial – appears to be working its magic on a certain cohort of society.

2019 has seen assets under management in GBTC soar…

Source: Bloomberg

And for Millennials, according to the latest data from Charles Schwab, the Grayscale Bitcoin Trusts is the 5th largest holding in retirement accounts (including 401(k)s) with almost 2% of their assets tied to the success (or failure) of the largest cryptocurrency.

h/t @jsblokland

For now this remains a relatively small number…

But, given the increasing acceptance of socialist policies, and the historically-ignorant promise of MMT (and don't forget UBI), Goldman Sachs suggests that Millennials' willingness to accept ever-increasing central-planning means gold is the go-to asset to preserve wealth over long-term horizons.

And, at least in the short-term, gold has held its value (relative to Bitcoin) as the world's volume of negative-yielding assets has shrunk on the latest round of optimism that 'this time is different'…

Source: Bloomberg

Indeed, Goldman notes that gold looks attractive particularly relative to DM bonds. Both bonds and gold are defensive assets which go up in value when fear spikes. Exhibit 5 shows that investment and central bank demand for gold has been highly correlated with US 10 year real rates.

During the next recession gold may offer better diversification value to bonds because the latter may be capped by the lower bound in rates limiting their ability to appreciate materially. This is particularly relevant for Europe where rates are already close to the lower bound. This


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Visualizing The New Cryptocurrency Economy

Courtesy of ZeroeHedge

Over a decade ago, the birth of Bitcoin sparked a revolution in the digital world – and just last year, the number of active cryptocurrencies jumped from roughly 1,600 to over 3,000 worldwide.

As Visual Capitalist's Ashley Viens details below, cryptocurrencies have now evolved past simple digital currencies, offering solutions to meet the complex needs of modern financial markets.

Today’s graphic from Abra visualizes the complex, ever-evolving cryptocurrency ecosystem and its real-world applications.

Characteristics of Cryptocurrencies

Why are cryptocurrencies important for the future of digital finance?

  • Borderless
    Drastically reduces fees and processing times due to a lack of cross-border restrictions

  • Censorship-free
    Prevents governments or major institutions from blocking financial activities at whim

  • Greater financial control
    Individuals can have total control of their funds

  • Greater security
    Prevents fraudulent alterations from third parties

  • Lower costs
    Lower transaction fees thanks to fewer third parties

  • Greater Accessibility
    Reduces or eliminates traditional barriers to capital markets

Much like the internet has forever altered how we live and work, cryptocurrencies have the potential to change how people participate in global financial markets.

Categorizing the New Crypto Economy

Today’s cryptocurrencies go beyond replacing cash. This new token-based economy is evolving?with unique solutions emerging in finance, security, identification, social engagement, and ownership.

Cryptocurrencies are generally categorized by their primary application within the ecosystem:

  • Payments
    Digital cash can be used for both ecommerce and brick-and-mortar retailers

  • Store of value
    New form of scarce native currency and a means of settlement

  • Programmable money
    Borderless money that enables easy conversion between currencies

  • Stablecoins
    Crypto version of fiat which is tied to the value of resources like gold or the U.S. dollar

  • Privacy
    Private digital transactions, with some offering anonymity

  • Digital ownership
    Digital handling, storage, and monetization of data

  • Decentralized utilities
    Crypto-enabled networks, products, and services that exchange between assets

  • Alternative finance
    Digital assets such as collectibles,


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Chinese Crypto Exchange IDAX Locks Cold Wallet As CEO “Goes Missing”

Courtesy of ZeroHedge

By William Suberg via CoinTelegraph.com

Chinese cryptocurrency exchange IDAX has suspended deposits and withdrawals after its CEO allegedly disappeared.

In a blog post on Nov. 29, IDAX, which earlier this week warned it was seeing a run on withdrawals, said the whereabouts of Lei Guorong were currently unknown. 

image courtesy of CoinTelegraph

IDAX: cold wallet access “restricted”

“Since we have announced the announcement on November 24, IDAX Global CEO have gone missing with unknown cause and IDAX Global staffs were out of touch with IDAX Global CEO,” it reads.

The blog post continues that as a precaution, the company’s cold wallet was on lockdown to protect user funds:

“For this reason, access to Cold wallet which is stored almost all cryptocurrency balances on IDAX has been restricted so in effect, deposit/withdrawal service cannot be provided.”

IDAX did not directly link Lei with cold wallet access, nor did it suggest that users’ money was specifically at risk. 

Exchanges feel renewed pressure

The debacle follows a contentious period for cryptocurrency in China after authorities doubled down on the country’s 2017 trading ban last week. As Cointelegraph reported, a sweep saw the central bank vowing to “dispose of” any exchanges it found flouting the ban. 

IDAX stopped serving Chinese users at the start of the week. Its predicament nonetheless provides yet another example of the pitfalls involved when trusting a third party to store cryptocurrency.

Earlier this week, South Korean exchange Upbit likewise halted users’ access to funds after a suspicious transaction saw more than $50 million leave its books at once. 

While investors appear to be waking up to the risks, recent data shows that even institutional traders still overwhelmingly prefer trusting others with their funds.





Bitcoin Busts Below $8,000 To One-Month Lows

Courtesy of ZeroHedge View original post here.

Another sea of red across cryptos this morning after tumbling in early European trading (it's been an ugly 7 days as the image below shows)…

Source: Coin360

Bitcoin Cash is leading the decline on the week along with Litecoin…

Source: Bloomberg

But Bictoin's psychological plunge to a $7k handle is most notable…

Source: Bloomberg

As CoinTelegraph's William Suberg notes, analysts had widely predicted the bearish move, with regular Cointelegraph contributor Michaël van de Poppe recently eyeing $7,400 as a realistic new support zone for Bitcoin.

Continuing the forecast, fellow contributor filbfilb highlighted even lower levels — $6,500 or the pivotal profitability price for miners — as the ultimate floor if bearish sentiment continued. Before that, the 100-week moving average (WMA) at $7,520 could provide further support.

As Cointelegraph reported, $6,500 is considered by many commentators as the lowest possible Bitcoin price under current conditions. 

“Still think the 100 WMA will hold up at this stage, but if it doesn’t, I’m all in at $6,500,” filbfilb said in private comments.

On Monday, statistician Willy Woo forecast that current Bitcoin price behavior would remain “unique” compared to previous cycles in its history. Specifically, BTC/USD would approach its 2020 block reward halving on bearish sentiment. In 2012 and 2016, halvings followed at least six months of bullish progress.

Woo additionally predicted that volatility would remain a feature for Bitcoin in the coming months.

 





More than 1,000 cryptocurrencies have already failed – here’s what will affect successes in future

 

More than 1,000 cryptocurrencies have already failed – here's what will affect successes in future

Gaining currency? Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

Many cryptocurrencies have been launched in the past few years, often to great fanfare and celebration, only to fade and fail as the public and investors shun them. According to Coinopsy, which tracks such failures, there are some 1,085 dead coins at the time of writing. That’s a substantial number, even next to the approximately 3,000 still in existence, and senior industry figures expect many of those to fail, too.

Why do so many of these projects unravel? You expect many initiatives to come and go in a fledgling market, of course – the 1990s dotcom bubble is the perfect example. But at the same time, cryptocurrency developers have traditionally spent too little time designing the business-use case for their coins and tokens, then only realising after the launch that their idea is yesterday’s news.

Time and again, we see launches that copy a previously successful coin – “coin x is the new Bitcoin”, for example. Yet the market already has Bitcoin, and it continues to be in demand – as evidenced by the 18 millionth Bitcoin being mined only last month. We tend to overlook this problem with developers, even while we rightly criticise regulators for not being able to keep up with the fast evolution of the crypto market – despite efforts such as Howey Coin by US regulator the SEC, which was a fake new coin offering designed to teach investors about the risks of putting money into crypto.

No doubt these kinds of developer errors will continue. Here are several other themes that we think will have a bearing on future crypto failures:

1. Big Finance has arrived

Eleven years ago, the pseudonymous Satoshi Nakamoto quietly revolutionised money with the release of his or her now famous white paper that outlined Bitcoin. In the early years after this vision took off, many of those who launched altcoins and tokens were small teams of developers and leftfield entrepreneurs.…
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Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

Today I will be emceeing the third annual Invest: NYC event at the Marriott Marquis in Times Square. There will be over a thousand attendees and lots of big investors appearing on stage. I’ll be keeping my eyes and ears open for information and perspectives that differ from my own and relaying the good stuff back to you right here on TRB.

Source:





As Regulators Stonewall Libra, Facebook Rolls Out New Payment System

Courtesy of ZeroHedge

Authored by Joeri Cant via CoinTelegraph.com,

As the Libra stablecoin project continues to face a hostile audience of regulators, Facebook launches a new fiat payment system called Facebook Pay.

image courtesy of CoinTelegraph

Empower people everywhere to buy and sell things online

On Nov. 12, the social media giant announced that it is introducing Facebook Pay, a payment system that is designed to facilitate payments across Facebook, Messenger, Instagram, and WhatsApp. Deborah Liu, VP, marketplace & commerce at Facebook said:

“People already use payments across our apps to shop, donate to causes and send money to each other. Facebook Pay will make these transactions easier while continuing to ensure your payment information is secure and protected.”

In an apparent bid to avoid further regulatory scrutiny, the company clearly states that Facebook Pay is “built on existing financial infrastructure and partnerships.” The firm is similarly clear that the payment service will be kept separate from Facebook’s new Calibra wallet and the Libra network.

Facebook Pay will start rolling out this week on Messenger and Facebook in the United States for “fundraisers, in-game purchases, event tickets, person-to-person payments on Messenger and purchases from select Pages and businesses on Facebook Marketplace.”

Facebook concludes the announcement with the belief that the firm can “help businesses grow and empower people everywhere to buy and sell things online.”

Every major U.S. payment processor has left the Libra Association

At the beginning of October, the Libra Association lost seven partners out of the original 28. Namely PayPal, Visa, Mastercard, Stripe, eBay, Mercado Pago and Booking decided to leave the consortium.

However, not long after, Alfred F. Kelly, CEO of major payment processor Visa, said that the company is still in discussions with Facebook on the Libra project, adding that it believes that digital currencies provide safer payments to more people and places.





3 Reasons Why One Trader Didn’t “Manipulate” Bitcoin Price To $20K

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin price highs in 2017 were not the result of a single trader on an exchange, the CEO of payment company Circle claims. In a series of tweets on Nov. 4, Jeremy Allaire disputed recent research which claimed Bitcoin’s bull run to $20,000 was the result of efforts by a single wallet holder. 

image courtesy of CoinTelegraph

Circle CEO: Research fails to understand exchanges

The findings are currently featuring as part of the $1.4 trillion lawsuit against stablecoin Tether (USDT). Its issuance, researchers argue, coincided with Bitcoin price jumps. 

For Allaire, however, the idea that one Tether trader engaged in manipulation on an exchange had no logic.

“Exchanges use omnibus wallets that pool all customer balances and transactions on and off the exchange. So an analysis that shows that ‘a single wallet’ was involved in flows from Bitfinex to other exchanges is meaningless. All it shows is that traders were trading,” he summarized.

Others, meanwhile, including Cointelegraph contributors, followed Allaire in disagreeing with the conclusion that entire markets were swayed by a single wallet.

“Wake up call; every market is ‘manipulated’. Everybody tweeting something about the price of a certain asset is ‘manipulating’ the market. Doesn’t mean you can’t make money,” trader Michaël van de Poppe summarized in a Twitter post on Monday.

Bruce Fenton, former executive director of the Bitcoin Foundation, criticized the technical proficiency of the data.

“The entire premise seems to misunderstand how markets and stablecoins work,” he responded, calling the research “bad science.”

More Tether does not mean higher BTC price

The dispute comes as curious movements in Bitcoin price continue. As Cointelegraph reported, several recent jumps have sparked speculation, including one which induced the second-biggest daily gains in Bitcoin’s history. 

In December 2017, Tether’s market cap was around $1 billion. But while Bitcoin’s price is now 50% lower, Tether’s market cap has increased four times over to current levels of $4.1 billion.

Therefore, the issuance


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Zero Hedge

Coronavirus Kills Man In Shanghai As China Confirms Nearly 2,000 Cases

Courtesy of ZeroHedge View original post here.

Summary
  • First nCoV death reported in Shanghai
  • South Korea confirms third case
  • Toronto health officials to announce first 'presumptive case' of coronavirus in Canada
  • 1975 Cases Worldwide; 56 deaths (still about a 3% mortality rate)
  • 18 Chinese cities - 56 million people - quarantined
  • President Xi said China faces a 'grave situation' as the spread is 'accelerating'
  • US and Russia plan...


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Phil's Favorites

Preparing For Lower Returns

 

Preparing For Lower Returns

Courtesy of 

We’ve been hearing about the prospect of lower future returns for U.S. based investors for years now*. The thesis behind this is fairly straightforward; high recent returns coupled with high valuations in the stock market, and low interest rates in the bond market is not conducive to further above average returns.

Consider the following:

  • A U.S. only 60/40 portfolio has compounded at 10.5% over the last 10 years.
  • The CAPE ratio is at 30.9
  • The ten-year treasury is currently yielding 1.8%

...



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Insider Scoop

BofA Downgrades Wynn Resorts On Wuhan Coronavirus Concerns

Courtesy of Benzinga

After initially dismissing the potential impact of the Wuhan coronavirus on Macau gaming stocks, one Wall Street analyst downgraded Wynn Resorts, Limited (NASDAQ: WYNN) on Monday due to concerns over the virus’ potential impact on Macau travel.

The Analyst

Bank of America analyst Shaun Kelley downgraded Wyn...



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Chart School

Top Patterns for Retail Investors

Courtesy of Read the Ticker

Retail investors are last in line for market leading research, no matter, the retail investor can profit from these secret sauce patterns..

Well not so secret now, the main point is you do not have to climb Mount Everest to be called a mountain climber, there are many other hills to climb to make your mark. Just like stocks.

You do not have to battle with the high frequency traders to win in the markets, there are long and slow methods to do just as well.  

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The Wuhan Wipeout - Could It Happen?

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News is traveling fast about the Corona Virus that originated in Wuhan, China. Two new confirmed cases in the US, one in Europe and hundreds in China. As we learn more about thispotential pandemic outbreak, we are learning that China did very little to contain this problem from the start. Now, quarantining two cities and trying to control the potential
outbreak, may become a futile effort.

In most of Asia, the Chinese New Year is already in full swing.  Hong Kong, China, Singapore, Malaysia, India and a host of other countries are already starting to celebrate the 7 to 10 day long New Year.  Millions of people have already traveled hundreds of thousands of miles to visit family...



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Kimble Charting Solutions

Bad News For Crude Oil Should Come From This Pattern, Says Joe Friday

Courtesy of Chris Kimble

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the US Dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history, and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock market tops and bottoms over the years, and especially the past several months, Crude Oil.

When crude oil tops or bottoms, it seems that ...



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Biotech

Snakes could be the original source of the new coronavirus outbreak in China

Reminder: We are available to chat with Members, comments are found below each post.

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

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The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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