Time to Be ‘Cautious or Short’ Bitcoin, Says Bollinger Bands Creator

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John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out it’s time to be “cautious or short” on the price of bitcoin, after the cryptocurrency’s price dipped below $10,000 for the third time since the so-called black Thursday.

On social media, Bollinger pointed out that bitcoin’s last move p over the $10,000 mark, which came shortly after U.S. President Donald Trump finished a speech on law and order in which he vowed to take “immediate presidential action to stop the violence” and said he was “mobilizing all available federal resources — civilian and military — to stop the rioting and looting,” was a head-fake.

A head-fake, Investopedia writes, occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction. These trades occur most frequently at key breakout points – for bitcoin, a key point was the $10,000 mark.

The price of the cryptocurrency dropped suddenly after breaking its key breakout level earlier this month over a flash crash on BitMEX that saw its price dip to $8,600 before it started recovering. CryptoCompare data shows that bitcoin is now trading above $9,600, but that since the March 12 coronavirus-induced market crash it has tested the $10,000 mark three times already.

Bollinger, it’s worth noting, has a decent track record looking at cryptocurrencies. In October 2019 the analyst accurately said the price of BTC dropping to $7,300 was a head-fake, and the price of the cryptocurrency then moved up in a significant rally to $9,500.

In April of this year, Bollinger tweeted out BTC was “moving into squeeze territory,” shortly before the cryptocurrency’s price started surging. He was, however, caught off guard by the Black Thursday sell-off, as were most investors and analysts.

It’s worth noting many in the cryptocurrency space are still bullish long-term. As reported early BTC developer Adam Back – who some believe could be Bitcoin creator Satoshi Nakamoto – has said he believes the price of the cryptocurrency will hit $300,000.

Featured image via Unsplash.

Chinese Authorities Discover Illegal Bitcoin Mining Operation Beneath Cemetery

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Chinese Authorities Discover Illegal Bitcoin Mining Operation Beneath Cemetery

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Chinese authorities uncovered an illegal bitcoin mining operation that was buried beneath a local cemetery.

According to a report by Beijing News, Daqing police in the Heilongjiang Province discovered a bitcoin mining operation in a village’s nearby cemetery. Authorities initially suspected that electricity was being stolen in the village to mine bitcoin, and traced the operation using data provided from an oil field. 

The report claims authorities uncovered a suspicious “cemetery” in the woodland outside the village and were able to locate a secrete entrance. After drilling through the entrance, police confirmed that it was a den for illegal bitcoin mining. 

According to the report, authorities found lightning equipment and sources for power transmission, in addition to seizing eight bitcoin mining rigs. 

The report follows on a similar discovery in April, when Daqing police uncovered 54 illegally powered bitcoin mining rigs beneath a dog kennel. 

China has continued its crackdown on cryptocurrency mining. In May, the Sichuan Province government announced a suspension of all crypto mining operations, despite the region accounting for roughly 10 percent of bitcoin’s hash rate. 

Featured Image Credit: Photo via Pixabay.com

Coinbase Cuts Interest users Earn on USDC Stablecoin by 88%

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Coinbase Cuts Interest users Earn on USDC Stablecoin by 88%

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San Francisco-based cryptocurrency exchange Coinbase has cut the interest users can earn on the USDC stablecoin with the platform by 88%, from a 1.25% APY to 0.15%, according to an email the firm shared.

As CryptoGlobe reported, Coinbase started letting its eligible U.S. users earn 1.25% per year on the stablecoin in October 2019. At the time the firm said the move was in line with its mission “to make crypto accessible to everyone.”

The 88% drop in rewards puts Coinbase in line with major banks in the U.S. that offer similar savings rates. Large banks like the Bank of America, HSBC, Chase, and Wells Fargo offer savings accounts with no minimum balance requirements offering yields as low as 0.01%, while newer businesses, according to TheBalance, offer accounts with no minimum requirements offering up to 1.5% a year.

The average rate, according to the same source, is at 0.09% which means Coinbase’s rewards rate for USDC holders is still above the average being offered. The USDC stablecoin itself was launched in September 2018 as a product of CENTRE, a collaborative open-source technology project built by Coinbase and Circle.

Since then the stablecoin has become the second-largest in the cryptocurrency space, behind only Tether’s USDt token. In March of this year, during the crypto market crash, Tether’s stablecoin saw its supply surpass the 6 billion mark, while USDC surpassed 600 million.

At press time, there are over $9.19 billion worth of Tether’s USDt in circulation, while there are now $736 million worth of USDC tokens in circulation. It’s worth noting users can earn interest on USDC and USDt tokens on other platforms, including decentralized finance protocols.

Featured image via Pixabay.

PlanB’s S2F Bitcoin (BTC) Indicator Turns Bullish for the Third Time Ever

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PlanB’s S2F Bitcoin (BTC) Indicator Turns Bullish for the Third Time Ever

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Pseudo-anonymous Bitcoin (BTC) analyst PlanB has updated his famous Stock-to-Flow (S2F) chart, and crypto-Twitter has gone ablaze. The reason for this is that the indicator is now flashing bullish (red in this case) for only the third time in Bitcoin’s entire ten year lifespan.

The S2F model, explained fully here, essentially establishes a correlation between the time it takes to reproduce the entire supply of an asset and its value. Recently, Bitcoin’s S2F had been trending similarly to silver, although PlanB was estimating that it would begin to more resemble gold (XAU) after the recent halving.

If it does come to resemble gold’s S2F plot, PlanB thinks a 10x in price is in the cards within two years of the recently-completed halving.

The S2F’s momentous update has come at an interesting time, as just last night Bitcoin performed a rather dramatic reversal to the downside, after a sharp move up.

FakeoutBTC chart by TradingView

These smaller movements are happening within an incredibly important larger context on the Bitcoin charts, as price tries to break out of a two-year downtrending resistance zone (red). If Bitcoin were to break free from this zone, there is little stopping it from a return to its highs at $20,000.

It is still trending within this zone and fighting at $9,400. We could see this jostling safely move all the way down to about $8,300, and still eligible for a breakout.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Featured Image Credit: Photo via Pixabay.com

Bitcoin to Rise 30,000% Within Five Years: Original Developer Adam Back

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Bitcoin to Rise 30,000% Within Five Years: Original Developer Adam Back

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Adam Back, an original Bitcoin (BTC) contributor—according to some the man behind the Satoshi Nakamoto pseudonym— and CEO of crypto-dev company Blockstream predicted that bitcoin will hit $300,000 per coin within five years.

Back points to two sources for this rocket fuel to propel Bitcoin 15x from its current record high, at $20,000: “money printing,” and non-institutional investors.

Bitcoin to $300,000

The more immediate cause for Bitcoin to potentially rise, according to Back and many others, is the significant amount of money being pumped into economies around the world in an effort to combat the (economic) effects of the COVID-19 pandemic.

Already trillions of dollars have been committed in the U.S. alone to this cause, to shore up an a battered economy that is already seeing Great Depression levels of unemployment.

Back told Bloomberg that Bitcoin is something that would “[retain] value when there’s a lot of money printing in the world.” He continued, saying that the traditional investing favorites like real estate or bonds may not see the sort of yields they have in the past, which is “causing people to think about the value of money and looking for ways to preserve money.”

It is worth noting that inflation has been notoriously absent in the last couple of decades, even when economists swear that it should be more prevalent.

The other X-factor that Back thinks will launch Bitcoin in the coming years is retail investors, i.e., normal folks. Having propelled the digital asset to where it is long before institutions got interested, Back says this traditional source of demand will continue to carry Bitcoin.

It is also worth noting here, however, that by all appearances institutions do seem to be entering Bitcoin in force lately: CryptoGlobe recently reported on a record inflow of half a billion dollars into crypto through Greyscale Investments, in Q1 of this year—the vast majority of it from hedge funds.

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Ethereum Co-Founder Tells Binance CEO Crypto Can Do More Than Reform Money

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Ethereum co-founder Vitalik Buterin has told Binance CEO Changpeng Zhao that cryptocurrencies can do more than just “reform money,” adding the crypto community should expand beyond the finance mentality.

In a tweetstorm, the co-founder of the second-largest cryptocurrency by market capitalization argued that some of the most popular narratives in the cryptocurrency space do not apply to this year’s crisis. Per Buterin, while Bitcoin was created n the aftermath of a global financial crisis in 2008, this year we’re dealing with a “virus crisis,” a crisis related to epistemology, and one of “overbearing policing.”

As a result, he said, the narrative bitcoiners user surrounding inflation is not the best one to use right now, taking into account that while the Federal Reserve’s balance sheet has been growing, inflation isn’t.

Buterin added, pointing to the March crash in equity markets and in the cryptocurrency space, that Bitcoin and other cryptos are also not uncorrelated to traditional assets, as at the time both dropped significantly. While Bitcoin has since recovered to give investors positive returns YTD, the S&P 500 has been struggling to climb back up to its highs.

Nevertheless, Buterin argued that it is time for the cryptocurrency community to understand “finance is relatively less important this decade than it was in the last decade,” and adjust to this new reality. The co-founder of ETH added his cryptocurrency already has various applications that go beyond finance, including governance, decentralized communities, censorship-resistant publishing and communication, and more.

Per his words, stablecoins have succeeded in the space because users are not trying to get away from the U.S. dollar, but are instead moving into the cryptocurrency environment to have more options on what they can do with their own money.

He then pointed to a tweet from Binance CEO Changpeng Zhao arguing “Bitcoin is the peaceful protest,” and claimed that “reforming money is not sufficient” and the crypto community needs to expand its mentality.

Buterin went on to say that 2016-.2020 is a “period of ideological realignment. Many old ideologies and coalitions are dying, and many new ones being born. The hills and valleys on the battlefields are shifting.”

Featured image via Unsplash.

MVIS and CryptoCompare Launch a New Bitcoin Benchmark Rate

On Wednesday (June 3), MV Index Solutions GmbH (“MVIS”), the indexing division of U.S. asset manager VanEck, and CryptoCompare, a leading digital asset market data provider, launched the MVIS CryptoCompare Bitcoin Benchmark Rate (ticker: BBR).

Frankfurt-based MVIS “develops, monitors and licenses the MVIS Indices, a selection of focused, investable and diversified benchmark indices.” Approximately $14.48 billion in assets are “currently invested in financial products based on MVIS Indices.”

CryptoCompare, which was founded in 2014 and is headquartered in London, provides retail and institutional investors with reliable real-time and historical cryptocurrency market data. One way it tries to insure the integrity of its data is by reviewing crypto exchanges on a monthly basis, monitoring for market abuse, and taking regional anomalies and geographical movements into consideration. 

On 6 November 2017, MVIS announced that it had “became the first major index provider to offer digital asset (crypto) indices” via a partnership with CryptoCompare, and said that “MVIS CryptoCompare Indices are the first to meet investment industry benchmarking standards by providing a public rulebook for fork treatments and other events, industry-wide data distribution, proper identifiers and further standard index governance requirements that are expected from a regulated, unaffiliated, major benchmark provider.”

In a press release shared with CryptoGlobe, the two companies said that their newly-launched Bitcoin Benchmark Rate is an index “designed to offer a robust hourly price for Bitcoin in USD.” 

BBR is a rules-based index that covers the five highest ranked exchanges in CryptoCompare’s Exchange Benchmark. At the time of writing, these top five exchanges are three AA-rated exchanges itBit, Gemini, Coinbase, Kraken, and Bitstamp, as you can see from the screenshot below:

Exchange Benchmark - Top 10 - 3 June 2020.png

This index “aggregates transaction prices” on these five exchanges by taking an average of quantity-weighted median prices, and it is updated on an hourly basis. 

The MVIS CryptoCompare Bitcoin Benchmark is meant to serve “as a reference rate for funds, asset managers and exchanges who wish to build financial products on bitcoin, such as derivatives and ETPs.” 

Here are some key features of the MVIS CryptoCompare Bitcoin Benchmark Rate:

  • Number of Components: 1
  • Base Date: 31 December 2015
  • Base Value: 425.53

One of the first companies that plans to take advantage of this new index to launch new innovative products in the digit assets space is Swiss bank SEBA Bank AG, which calls itself “The Bank for the New Economy”. Interestingly, SEBA was “closely involved in the development of the reference rate.”

Currently, SEBA offers a wide variety of crypto services, including trading, custody, lending, research, and asset management (“with active and passive strategies”).

Daniel Kuehne, Head of Asset Management at SEBA, had this to say:

“It is essential for derivatives on cryptocurrencies to have a representative reference rate which is robust against market distortions and manipulations. We are pleased to have contributed to the MVIS CryptoCompare Bitcoin Benchmark Rate and to play a key role in helping the emerging derivatives market gain greater acceptance among professional and institutional investors”.

As for Thomas Kettner, Managing Director of MVIS, he added:

“We are pleased to launch this index, which is designed to provide a price for bitcoin which is hard to manipulate. The index follows our long-term mission in supporting new product developments with the aim of providing investors access to bitcoin data”.

Finally, Charles Hayter, CEO and Co-Founder of CryptoCompare, stated:

“We are excited to be leading the charge to bring greater transparency to the digital asset class by providing high-quality data and trusted indices. Working in partnership with MVIS, we are pleased to offer investors a premium tool to better measure the performance of their Bitcoin exposure.”

Featured Image by “petre_barlea” via Pixabay.com

Brave Browser Adds 1.5 Million Monthly Active Users in Two Months

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The cryptocurrency-powered Brave browser has added 1.5 million monthly active users (MAU) in the months of April and May, taking its total monthly active user base to 15.4 million.

According to an update shared by the privacy-centric browser, it now has a total of 5.3 million daily active users, after surpassing the 5 million DAU mark in May. Per the update, Brave had 2 million people using its browser on a daily basis a year ago, showing significant growth.

Brave lets users opt-in to see privacy-respecting ads and be rewarded in its Basic Attention Token (BAT) for seeing them while browsing the web. Brave’s ads, the firm adds, brought in 1,530 campaigns since they were launched last year, showing a 255% increase from the 400 campaigns reported in October 2019.

Users are also rewarded in BAT for seeing sponsored images when they open a new browser tab. Since these were launched in February 2020, 25 campaigns using them were launched. Several high-profile companies, including Verizon, Newegg, Chipotle, and PayPal/Honey have advertised to users using the Brave browser.

In its update, Brave claims its ad campaigns are now supported in 183 countries, and have CTR (click-through rate) of 9%, far above the advertising industry’s average of 2%. Some brands, it says, even saw CTRs of up to 15%. The Brave Ads Grant Program is now reportedly providing additional awareness and support to non-profit organizations, including the Khan Academy, Save the Childre, and UNICEF France.

Creators who verified with Brave to receive BAT rewards with their users have also been steadily growing. There are now over 700,000 websites, GitHub contributors, YouTube channels, Twitter users, Twitch live streamers, and more verified to receive BAT rewards.

Featured image by Campaign Creators on Unsplash.

Ethereum Could Soon Outperform Bitcoin, Says Raoul Pal

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Ethereum Could Soon Outperform Bitcoin, Says Raoul Pal

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Crypto analyst and investor Raoul Pal claims that bitcoin and ether are on the verge of a price breakout, with ETH poised to potentially outperform the top cryptoasset at some point in the future. 

Pal, CEO & founder of Real Vision, published a series of tweets on June 1 explaining that bitcoin was experiencing a price breakout after jumping above $10k.

According to Pal, Monday’s price increase for bitcoin represented the asset’s largest chart pattern break thus far. 

Pal also commented on ethereum’s sudden price increase, which took ether above $250. Pal claimed that ETH had likely based and was poised for a breakout, with the charts pointing to ether outperforming bitcoin “at some point.”

Pal pointed out the value of investing in crypto-related equities, such as Mike Novogratz’s Galaxy Digital Fund, which could receive a boost from the positive price movement of top cryptoassets. 

The Real Vision CEO concluded his series of tweets by asking crypto supporters to avoid “tribal attacks” against bitcoin or ethereum, saying the assets represented different ecosystems rather than direct competitors. 

Featured Image Credit: Photo via Pixabay.com

Flash Crash on BitMEX Drags Bitcoin Price All the Way Down to $8,600

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Flash Crash on BitMEX Drags Bitcoin Price All the Way Down to $8,600

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Around 14:30 UTC (10:30 EDT) on Tuesday (June 2), the price of Bitcoin fell from around $10,150 on BitMEX all the way down to $8,600 in a span of about 15 minutes, as you can see in the 24-hour price chart below:

TV Chart for BitMEX XBTUSD on 2 June 2020.png

This drop to $8,600 was at least $700 greater than the drop on othe exchanges such as Binace, Coinbase, Huobi, and OKEx, as macro-economist and crypto trader Alex Krüger pointed out in the tweet below:

Crypto analyst/trader Josh Rager pointed out that this kind of volatility demonstrates the importance of setting stop-loss orders:

This is what popular technical analyst ‘Cred” had to say about Bitcoin’s recent price action:

Blockchain analytics startup CryptoQuant says that today’s crash may have been caused by Bitcoin whales who moved their coins to Binance and BitMEX a few hours before the start of today’s Bitcoin flash crash:

Currently (as of 16:00 UTC on June 2), according to data from CryptoCompare, Bitcoin is trading at an average price of $9,469, down 0.71% in the past 24-hour period:

BTC-USD 24 Hour Chart  #3 on 2 Jun 2020.png

 

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