Max Keiser: There Isn’t Anything Crypto Altcoins Do That Bitcoin Won’t Do

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Max Keiser: There Isn’t Anything Crypto Altcoins Do That Bitcoin Won’t Do

Ever since the peak of the 2018 crypto bull market, Bitcoin has been front and center for most investors.

Bitcoin dominance — the percentage of the cryptocurrency market made up of BTC — has doubled from the 33% lows, while a number of altcoin projects have died out due to funding issues and a lack of public interest.

Even still, there remain thousands of projects cumulatively worth dozens of millions promising to be the “next BTC” or something along those lines.

But according to Max Keiser, the host of the “Keiser Report” on RT and one of the earliest Bitcoin bulls,” these projects have no intrinsic value.

Bitcoin Is Still Stronger Than Altcoins

Speaking in a recent interview with London Real, Keiser doubled down on his long-held sentiment that altcoins provided little (if any) value over Bitcoin.

In response to the interviewer Brian Rose’s question if there is any cryptocurrency “complementary to BTC,” Keiser said no.

He explained that there is “no coin out there that can do something that Bitcoin doesn’t do already or will be able to do shortly.” Bitcoin’s security, with a majority of the hash power and the majority of the crypto market share, also makes it a better bet than altcoins, Keiser added.

It’s a Common Sentiment

Keiser isn’t alone in touting the sentiment that altcoins still pale in comparison to Bitcoin despite the technical developments and the billions of dollars worth of funding.

Kevin Rose, a co-founder of digital media site Digg and a general partner at True Ventures, recently told TechCrunch the following: 

“The problem is that 99% of the projects out there and a lot of the people who are behind them are just in this for the pure financial gain. And there’s a lot of garbage out there. And that’s unfortunate because it really drags down the high-quality projects, and it muddies the space quite a bit.”

Rose led Google Ventures’ investment in Ripple that took place in 2013.

Stock trader/analyst Steve Burns, who has a following of over 200,000 on Twitter, echoed this sentiment. He said that he thinks “99.9% of altcoins are going to $0 [… over a] buy and hold timeframe,” adding that he thinks so because “they have zero value.”

There is technical evidence to suggest that Bitcoin will outperform altcoins, too.

Per previous reports from Bitcoinist, Josh Olszewicz, a Brave New Coin crypto analyst, observed on May 15th that Bitcoin’s dominance chart printed a textbook golden cross.

The arrival of the golden cross, the analyst suggested, is a sign that those awaiting an “altcoin season” may be rudely awakened.

Chart from Josh Olszewicz (@CarpeNoctum on Twitter), a crypto analyst at Brave New Coin. Chart is of Bitcoin's dominance printing a "golden cross" formation.

Chart from Josh Olszewicz (@CarpeNoctum on Twitter), a crypto analyst at Brave New Coin. The chart is of Bitcoin’s dominance printing a “golden cross” formation.

Featured Image from Shutterstock

Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case

Ethereum’s budding decentralized finance (DeFi) ecosystem took a heavy beating after the March capitulation crash.

As I detailed in an analysis for LongHash, what happened was that MakerDAO became unstable due to what some say is an erosion in trust in the protocol. Ethereum investor Parafi Capital wrote in a blog post:

“We believe this lack of stability and liquidity is translating into uncertainty around using DAI as a decentralized stablecoin in many DeFi protocols. Anecdotally, we have heard a handful of DeFi teams express frustration over DAI’s lack of liquidity/stability.”

Adding to this, a fledgling DeFi protocol with more than $25 million worth of crypto assets was hacked due to a glitch in a smart contract.

After this mess, one commentator went as far as to say that “the entire DeFi ecosystem almost died.”

But, as we now know, this death didn’t happen. This bodes well for the Ethereum bull case.

DeFi Is Still Alive and Kicking

In the wake of March’s crypto crash, the value locked in DeFi applications crashed to $500 million from well over a billion. This was to be expected: March’s crash also resulted in an over 50% reduction in the value of top cryptocurrencies.

But according to data shared by data site DeFi Pulse, decentralized finance has since recovered alongside the value of cryptocurrencies.

There is now $953 million worth of assorted crypto assets locked into DeFi applications, according to the site. This is up nearly 100% from the March lows.

Notably, not 100% of the $953 million in DeFi assets is based on Ethereum, but a majority is.

Case in point: Maker, Synthetix, and Compound — all based on Ethereum — hold approximately $750 million worth of assets.

DeFi Pulse Ethereum

Data of value locked in decentralized finance (mostly Ethereum) from Twitter user Alex.eth (@AlexanderFisher).

Ethereum Stands to Benefit

With DeFi gaining strength once again, analysts say that ETH’s bull case is being strengthened.

The founder of MakerDAO Rune Christensen said that Ethereum through DeFi will attract “all value” in the cryptocurrency space:

“4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.”

There’s also Ryan Selkis, chief executive of crypto research firm Messari.

He explained that due to the introduction of DeFi and the market share it could capture, ETH has a “higher ceiling” to rally towards than 2017/2018’s rally. For reference, the 2017/2018 rally brought ETH to $1,400.

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Bitcoin Investors Reportedly Lose Millions in South African Exit Scam


Bitcoin Investors Reportedly Lose Millions in South African Exit Scam


South African cryptocurrency investors are accusing the CEO of VaultAge Solutions of stealing millions in crypto before going on the run. 

According to a report by AllAfrica, Willie Breedt, the CEO of cryptocurrency investment firm VaultAge Solutions, is presumed to be on the run after not making public communications since December 2019. The report claims Breedt was speculated to be staying near the town of Jeffrey’s Bay and that his whereabouts where being looked into by the country’s criminal investigation unit. 

However, South Africans who invested cryptocurrency with the now-defunct firm fear the CEO may have fled the country for Mozambique. 

Breedt is accused of stealing millions from bitcoin investors. The report claims VaultAge Solutions is not registered as a legitimate financial institution with the Financial Services Conduct Authority (FSCA), despite having more than 2000 investors. 

The report quoted investor Lettie Engelbrecht from Krugersdrop, 

We are pensioners and invested R200 000. From December until April, we received payments on the growth of our investment. Since then, we never got any money. We are desperate and living on a shoestring budget.

One South African investor reportedly had deposited more than R6 million ($342,000) with Breedt’s company. 

Breedt delivered a written reply to local outlet News24, explaining, 

I am busy attending to the commitments I have made to members. The commitment is to have all the initial capital paid back by 31 May.

Colonel Katlego Mogale of the Directorate for Priority Crime Investigation (DPCI) said authorities are investigating the case but cannot reveal any more information “at this stage.”

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Bitcoin Could Surge Past $10,000 as Ethereum “Hammers” Higher: Top Analyst

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Bitcoin Could Surge Past $10,000 as Ethereum “Hammers” Higher: Top Analyst

Bitcoin and the rest of the crypto market have performed extremely well over the past few days, bouncing 10% from last weekend’s correction lows.

Though one cryptocurrency has been dramatically outperforming all the rest: Ethereum.

The second-largest cryptocurrency and foremost altcoin was up 10% on Saturday, surging higher on the back of an influx of buying pressure. It was a move that allowed Ethereum to break past a crucial resistance.

Although Bitcoin has yet to follow Ethereum higher, analysts say that ETH’s strength could drag the rest of the market higher.

Ethereum’s Strength Could Boost Bitcoin

One prominent trader asserted that ETH’s ability to continue to “hammer” past key resistances is adding fuel to the Bitcoin bull case:

“ETH continues to hammer up, dragging BTC past a $10k breakout. That adds fuel to ETH until ETH has gone fully absurd. That’s my favored son scenario.”

Bitazu Capital founding partner Mohit Sorout shared this sentiment in his own analysis on the matter. In reference to the chart below, he explained that “Ethereum maximalists are waiting for Bitcoin bulls to join the party.”

The chart below shows that Bitcoin has yet to break a downtrend formed at the end of April while Ethereum has.

Charts of both ETH and BTC from Mohit Sorout (goes by @SinghSoro on Twitter)

Charts of both ETH and BTC from Mohit Sorout (goes by @SinghSoro on Twitter)

As ETH led BTC higher during February 2020’s rally, chances are BTC is about to break past the level indicated in Sorout’s chart too. Should this happen,~$10,100 could be within BTC’s sights in the coming few days.

BTC Is Bullish Too

Bitcoin, too, is showing technical and fundamental strength.

As reported by Bitcoinist previously, the leading cryptocurrency is on the verge of closing above a key downtrend resistance on a monthly time frame.

Analyst Eric “Parabolic” Thies pointed out this technical occurrence with the chart below. It shows that BTC is finally peaking above the downtrend formed after the $20,000 high.

BTC chart from Eric "Parabolic" Thies, a crypto analyst and programmer.

BTC chart from Eric “Parabolic” Thies, a crypto analyst and programmer.

Thies believes that Bitcoin closing the May candle above that crucial level in approximately four hours (as of this article’s writing) will be “incredibly significant for bulls.”

Adding to the bullish confluence, there are macroeconomic and geopolitical trends favoring BTC growth.

Matt D’Souza — CEO of Blockware Mining — recently identified four such trends, some of which are as follows:

  • There is growing geopolitical unrest: The U.S. and China have seen tensions grow again over Hong Kong democracy. The mainland Chinese government proposed a law that some American officials say erodes the autonomy of the region. As a result, the yuan has sunk, boosting Bitcoin’s opportunity to act as a hedge.
  • Central banks continue to print money to save the economy: To respond to the ongoing recession caused by the illness, central banks and governments have continued to print trillions upon trillions of dollars to bail out companies and individuals. Bitcoin’s scarcity allows it to appreciate over fiat money.
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Key Indicator: Bitcoin and Other Top Cryptos Are Printing “Perfect Sell Setups”

After plunging last week, the Bitcoin market has mounted a hefty recovery over the past week. The leading crypto asset traded as high as $9,700 on Saturday evening — just a few percentage points shy of the monthly high.

Ethereum has fared even better, with the asset pushing 10% higher within a 24-hour time period this weekend.

This recovery has convinced many traders that the crypto market is on the verge of a full-fledged bull run, but a key indicator is suggesting a “perfect sell setup” has formed.

Bitcoin & Top Altcoins Form “Perfect Sell Setup”

One prominent trader recently shared the image below, showing that top cryptocurrencies such as Bitcoin, Ethereum, and Chainlink are printing “perfect sell setups.”

“Even though some of [the assets are] on perfected sell setups, most [will see] new weekly highs, but TD says 80% of the market is toppy by next week! The list is long — I can’t fit them all in one chart,” said the analyst that shared these charts.

Bitcoin and other top crypto price chart from Moe_Mentum_ on Twitter

Charts of top cryptocurrencies, including Bitcoin, Ethereum, and Chainlink, from crypto trader “Moe” (@Moe_Mentum_ on Twitter).

The sell setups are shown by the fact that all the assets in the image are printing a Tom Demark Sequential “8” candle, often seen just before or at a trend’s high.  The Tom Demark Sequential is a time-based indicator that forms “8,” “9,” and “13” candles when an asset is near an inflection point in its trend.

Adding to the bearish sentiment, Bitcoin and other top cryptocurrencies are forming this “perfect sell setup” right below crucial levels of resistance.

For BTC, in particular, this is important.

Bitcoin is currently sitting at $9,500, just a few hundred dollars below the crucial $10,000-10,500 resistance.

It seeing a rejection here could spell disaster for bulls because that would mean BTC has formed a lower high on a macro timeframe. Consecutive lower highs, as seen over the past year, are suggestive of a macro downtrend.

The Fundamentals Are Still in BTC’s Favor

The fundamentals still lean in favors of bulls though, despite the bearish technical analysis depicted above.

Blockchain analytics firm Glassnode recently found that around 60% of the ~19 million BTC in circulation “hasn’t moved in over a year, showing increased investor HODLing behavior.”

The last time this much of BTC (percentage-wise) was “frozen” so to say was “right before the BTC bull market of 2017,” prior to the 2,000% rally that took Bitcoin from $1,000 to $20,000.

Chart of Bitcoin investor habits from crypto analytics firm Glassnode (@Glassnode on Twitter). The image was shared on May 29th, 2020.

Chart of Bitcoin investor habits from crypto analytics firm Glassnode (@Glassnode on Twitter). The image was shared on May 29th, 2020.

Adding to this, the Chinese yuan has continued to slide against the U.S. dollar on expectations of sanctions and backlash.

The backlash comes after the mainland Chinese government began a process to impose a new security law on Hong Kong.

Featured Image from Shutterstock

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If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

Why Surging Options Volume Can Put an End to Ethereum’s Epic Rally


Why Surging Options Volume Can Put an End to Ethereum’s Epic Rally

  • Ethereum posted an intense breakout rally yesterday that allowed it to set fresh local highs
  • This rally came about rather suddenly, with it coming about prior to any movement seen by Bitcoin or the aggregated crypto market
  • Analysts are now noting that this uptrend may start to falter in the days ahead, as it is currently repeating a pattern that is strikingly similar to that seen in months past
  • This potential weakness comes as Ethereum’s options see rocketing volume, signaling that ETH is likely to see heightened volatility

Ethereum’s recent uptrend allowed it to post massive gains, climbing from the lower-$200 region to highs of $250.

The cryptocurrency’s momentum has stalled a bit as of late, which could be a sign that buyers overextended themselves throughout the course of this latest movement.

It now appears that this upswing came about after ETH formed a similar technical pattern to that seen prior to its rallies in months past.

All of these rallies were fleeting and followed by sharp retraces, and if history repeats itself, ETH could soon find itself caught within another downtrend.

Ethereum’s Rally Stalls as Analysts Eye Potential Downside 

At the time of writing, Ethereum is trading up marginally at its current price of $235. This marks a notable retrace from daily highs of roughly $245 that were set at the peak of this latest upswing.

This movement first began last Thursday when ETH bounced from lows of $210 to $225. After hitting this level, the crypto ranged sideways for a day before incurring immense upwards momentum that led it to its recent highs.

The technical formation that drove this movement was the same one that triggered the other rallies it has seen throughout 2020.

One popular crypto analyst pointed this out in a recent tweet, offering a chart showing that striking similarities between this uptrend and the ones seen in February and April.

“ETH this time was not different… Up 15%+ after breakout & retest,” he said while pointing to the chart seen below.


Image Courtesy of Luke Martin

If Ethereum replicates its previous price action, it could see a bout of sideways trading before declining lower.

ETH Options Volume Rockets, Signaling Volatility is Imminent 

Another factor that could influence Ethereum’s price action is rocketing options volume.

According to data from research platform Skew, ETH options volume rose by $20 million on Deribit yesterday.

“New record for ether options volume on Deribit: $20mln notional traded yesterday,” they noted while pointing to the chart seen below.

Data via Skew

Heightened options volume suggests that the cryptocurrency is likely to see further intense volatility in the days and weeks ahead, and the aforementioned pattern suggests that this volatility will be to the downside.

Featured image from Shutterstock.