Here you will find regular updates of what we consider to be important news items relating to Crypto currency markets:
CME's Bitcoin Futures Hit New Records
Source: Bitcoin.com | 13th June 2019
Ever since the Chicago Board Options Exchange (Cboe) announced it was ending its bitcoin futures products back in March, the Chicago Mercantile Exchange (CME Group) has seen a huge influx of bitcoin derivatives volumes. During the second week of May, CME’s bitcoin futures touched a milestone when it surpassed 33,000 contracts ($1.3 billion notional value) in one day. In another instance, CME’s open interest for its bitcoin derivatives positions smashed an all-time record high of 5,190 contracts on May 28.
Average Daily Volume (ADV) by month shows 1,188% growth since December 2017.
Bitcoin Surpasses USD 9,000 and Drops Below USD 8,200 in Five Hours
Source: Cryptonews.com |
The most popular cryptocurrency, bitcoin just gave another example of the recently increased volatility.
After suddenly spiking above USD 9,000 for around 10 minutes on Thursday evening (UTC time) it dropped and after five hours it was already below USD 8,200. At pixel time (05:40 UTC), bitcoin trades at around USD 8,204, or 6% less than 24 hours ago.
Bitcoin price and volatility:
No looking back for Bitcoin - Sunday BTC/USD rally extends towards 9000 USD
Source: Forexlive.com |
It has not relented, although its slowed a little. As I post its above 8900
Late last week news of further mainstream acceptance of crypto came through, US phone network AT&T announced that customers can pay their phone bills in crypto now.
A Surprise from JPMorgan: 'Bitcoin Has Intrinsic Value'
Source: Cryptonews.com | By Sead Fadilpašić
Bitcoin has intrinsic value, admitted a team of strategists at major investment bank JPMorgan Chase & Coand warned that the coin mirrors a boom-bust pattern of 2017.
According to the strategists, bitcoin price now surges beyond its “intrinsic value,” trading about twice as high as where the valuation would place it, Bloomberg reported.
The team have treated Bitcoin as a commodity and have calculated its “cost of production” taking into account the information such as the estimated computational power, hardware energy efficiency, and electricity expense, the report said.
The analysts have added, however, that “Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. […] views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”
"It's wonderful that JPM is finally ready to admit that bitcoin has intrinsic value, and it's not at all surprising that they see the current price as overvalued in comparison to their calculations. Yes, bitcoin is well above the mining cost at current rates, but what JPM has failed to take into account is that frequently, when miners are running a surplus, they will start hoarding coins. By withholding supply from the market when times are flush, they aim to further limit liquidity and send prices even higher," commented Mati Greenspan, senior market analyst at eToro.
Meanwhile, other strategists are saying that this latest surge of BTC could actually be signaling the worsening of global economic cycle, as fears of recession grow and amidst the current US-China trade war, according to Business Insider. Michael Hartnett, the chief investment strategist at Bank of America Merrill Lynch, explains that all this is further suppressing the yields on bonds that have already fallen and remain near historic lows in several major countries, while the bond prices in the US are slowly rising. Hartnett said in a recent note to clients that what investors have done is piled into a "greed trade" that includes USD 127 billion in corporate and emerging-market debt.
He also said that bitcoin is more appealing to investors during the times of uncertainty, and that the surge above USD 8,000 "confirms belief in world of negatively-yielding debt," not actually saying that the rise occurred to the greed trade, but finds it of interest that these two events occurred at the same time. Hartnett stated that BTC’s 2017 bubbles was one of the greatest ever and, interestingly, his team had conducted a survey conducted just before it crashed, which “showed that large fund managers thought betting on bitcoin was the most crowded trade in the world”, according to Business Insider.
In either case, the cryptoverse is looking for more signs that bitcoin price will continue to rise through 2019. George Kikvadze, executive vice chairman of major cryptocurrency and blockchain venture Bitfury, reminds that we're one year away from the next Bitcoin halvening, when the Bitcoin block mining reward will decrease from 12.5 to 6.25 bitcoins. It is estimated that this will be the last halvening to have a very significant impact on its price.
Markets Update: Bears Claw Crypto Prices Back While Uncertainty Fills the Air
Digital asset markets fell hard during the early morning trading sessions on May 17 as the price of bitcoin core (BTC) quickly tumbled from $7,900 to a low of $6,200 on Bitstamp. Many other crypto markets followed BTC’s drop in value, but over the last few hours, a good portion of coins have regained a percentage of the intraday losses.
Crypto Markets Dump In Unison
Markets faced extreme volatility on May 17, as the price of many coins nosedived in value from the previous day’s high. Currently, the entire market capitalization of the whole cryptoconomy is roughly $226 billion, but close to $30 billion was shaved off the overall valuation since the dump. At the moment, on Friday afternoon, the price of bitcoin core (BTC) is roughly $7,085 and is down 10.9% in the last 24 hours.
The second largest market valuation belongs to ethereum (ETH) markets which are currently down more than 13.6% today. Each ETH is swapping for $229 per coin and the market capitalization is roughly $24.3 billion. Ripple (XRP) prices are down 12.6% and each XRP is swapping for $0.36. Lastly, eos (EOS) holds the fifth largest market cap today, after knocking litecoin (LTC) out of the position. One eos is trading for $5.83 per coin and the market is down 10.9%.
The Verdict: Crypto Sentiment Changed Fast Like a Mood Ring
At the moment, a decent amount of uncertainty is in the air and traders are likely hoping they played the correct positions. Right now, tether (USDT) has the strongest volume which is about $1 billion dollars higher than BTC’s trade volume today. Crypto markets started rising pretty fast, about a week before and during the Consensus conference in New York which typically happens on an annual basis.
However, during the early morning trading sessions this Friday, traders saw a BTC sell order worth a whopping $35 million on the Luxembourg-based exchange Bitstamp. As soon as the order hit the market, it triggered a very fast nosedive which saw BTC lose $1,000 in value. So far the cryptoconomy is calm but traders are unsettled by the extreme volatility and the mood has certainly changed.
SEC Commissioner Says Time Is Right for Bitcoin ETFs — 3 Funds Pending
The U.S. Securities and Exchange Commission (SEC) is currently reviewing three bitcoin exchange-traded funds (ETFs), one of which was filed last week to track the prices of two cryptocurrencies. An SEC commissioner said at the Consensus conference on Monday that the time is right for a bitcoin ETF, as the commission is due to make a decision on one of them next week.
SEC Commissioner: Time Is Right for Bitcoin ETF
At the Consensus 2019 conference in New York on Monday, SEC Commissioner Hester Peirce, also known as “crypto mom,” discussed the regulatory environment for bitcoin ETFs. Expressing her dissatisfaction with the current law, she asserted that the SEC should do more to provide a regulatory framework for cryptocurrency including rules around safe harbor. Decrypt quoted her as saying:
I thought the time was right a year ago — even longer than that … My first chance to comment on it was a year ago … Certainly the time is right, but there are still questions floating around the SEC that need to be answered as much as possible by you all.
Peirce then encouraged the audience to write to the SEC to help them understand the market. One issue she noted was market manipulation, which “is a concern that people keep raising at the SEC,” she shared. “Other issues like custody issues [also] come up a lot.”
Her comments at Consensus echo her speech at the Securities Enforcement Forum which took place on May 9. “The problem is that the securities laws do not cease to operate as a new industry develops,” she explained. “Consequently, individuals and companies in the industry must comply with our securities laws or risk becoming the subject of an enforcement action. It is therefore our duty as a regulator to provide the public with clear guidance as to how people can comply with our law. We have not yet fulfilled this duty.” The commissioner additionally described:
It is not the SEC’s overzealous action that has stifled the crypto industry, but its unwillingness to take meaningful action at all.
Peirce also expressed concern that the U.S. is falling behind other forward-thinking countries. “Our country has always been a country where innovation can really thrive,” she opined Monday. “I worry that a lot of the activities are now happening offshore. I want the US to be the market for innovation.”
The SEC staff recently issued a 14-page document detailing a framework to assist issuers with conducting a Howey analysis to evaluate whether token offerings are securities. It details features of an offering and actions by an issuer that could signal that the offering is likely a securities offering. Peirce expressed her worry, however, that this framework “could raise more questions and concerns than it answers.”
The commissioner previously said she believes the SEC has no jurisdiction to look at the underlying asset when considering whether to approve a proposed rule change for an ETF. She has also emphasized that excessive regulation could hurt innovation such as cryptocurrency.
The SEC’s Senior Advisor for Digital Assets and Innovation, Valerie Szczepanik, explained that the agency is moving slowly on cryptocurrency regulations and cryptocurrency-based products because it needs to be cautious. Szczepanik coordinates efforts across all SEC divisions and offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including cryptocurrencies and initial coin offerings.
In his speech at the SEC Sparks conference on April 8, Chairman Jay Clayton said one of the areas the commission has focused its attention on due to heightened risks is “digital assets, including cryptocurrencies, coins, and tokens.” At the Consensus Invest conference in November last year, he revealed the key upgrades he needed to see before the SEC could consider approving its first bitcoin ETF such as better market surveillance and safe custody of crypto assets.
Bitwise Bitcoin ETF: August 14
One of the proposals being reviewed by the SEC is for the listing and trading of shares issued by Bitwise Bitcoin ETF Trust filed by NYSE Arca Inc. on Jan. 28. This proposed rule change was published in the Federal Register on Feb. 15. On March 29, the SEC designated May 16 as the day to make its decision on this proposal. However, on May 7, the exchanged filed Amendment No. 1 to the proposed rule change, replacing the original one in its entirety. According to the amended registration statement filed with the SEC:
The trust will hold bitcoin … [and] will store its bitcoin in custody at a regulated third-party custodian, and will not use derivatives that may subject the trust to counterparty and credit risks.
Furthermore, the company explained that “the trust will not directly purchase or sell bitcoin. Instead, authorized participants will deliver bitcoin to the trust in exchange for shares of the trust, and the trust will deliver bitcoin to authorized participants when those authorized participants redeem shares of the trust.”
For the full article detainling other ETF that have been filed see:
Bitcoin's Surge to Almost $8,000 Rekindles Memories of Bubble
Token’s 8-month high sweeps up Ether, Litecoin, Bitcoin Cash
Short sellers tracked by CFTC had just increased net holdings
Bitcoin jumped to almost $8,000 and didn’t look back, as its longest winning streak since 2013 continued to rekindle the global cryptocurrency market.
Monday’s advance of as much as 26% comes only a few days after the digital asset broke through $6,000 and looks set to boost investor interest in conferences on the technology underlying the biggest crypto asset that are taking place in New York this week. Bitcoin’s latest surge started Saturday, when the two U.S. exchanges carrying futures are closed, making it potentially difficult for short sellers to cover their wagers.
B“Bitcoin is acting differently since moving above its 200-day moving average” and the gains are occurring on strong volume, Fundstrat co-founder Tom Lee, a noted Bitcoin bull, wrote in an email. Blockchain Week is underway, co-sponsored by the New York City Economic Development Corp., and the Consensus forum is set to start, where people are “expecting a higher-quality conference,” Lee said.
With fundamental analysts often struggling to explain crypto markets, traders have recently pointed to institutions increasingly embracing digital coins. The likes of Fidelity Investments plans to buy and sell Bitcoin for institutional customers soon, and E*Trade is dipping into the trading space.
Adding to the optimism was speculation Monday that more mainstream companies such as eBay and Whole Foods are about to start accepting cryptocurrency payments. Bakkt, a venture that includes Intercontinental Exchange Inc. , said Monday it will begin testing Bitcoin futures in July.
“The largest crypto gathering in the world is going on right now, Consensys, and there’s Bakkt announced their futures product is going to be up and running in July,” said Travis Kling, founder of the Los Angeles-based crypto hedge fund Ikigai. “Before then there was not a concrete date on when the Bakkt product is going to be launched.”
Bitcoin climbed as high as $7,963, the most since July 2018. Rival coins surged in a broad rally, with Bitcoin Cash up as much as 40%, and Litecoin and Ether both at least 21% higher.
Hedge funds and other investors had increased their net short bet against Bitcoin in the week through May 7, the U.S. Commodity Futures Trading Commissions said Friday. When trading opened on Monday, futures traded on CME opened 12% higher.
While Bitcoin has more than doubled from its post-crash low, the crypto space is by no means free of headaches.
Based on the DVAN Buying Selling Pressure Gauge, the coin is seeing the most buying pressure since the rampant run-up in 2017. In addition, Bitcoin appears prime to retest its previous break of $8000 when it soared to $8500 a coin in July of 2018.
Blockchain Projects Bloom as Crypto Spring Fuels a Fundraising Boom
As crypto winter subsides, spring has sprung in the cryptosphere, ushering in green shoots of growth across the board. Attention has largely focused on the increase in digital asset prices, as cryptocurrencies have swelled by an average of 40% in 2019. But away from the frothy market action, there is far more tangible evidence that the worst of the downturn is over. Scores of crypto projects have reported renewed interest from investors, signaling that better times are ahead.
Crypto Spring Is in Full Bloom
There is still significant debate as to whether we’ve officially exited the bear market that has dragged on since early 2018. Some commenters, such as Vinny Lingham, believe BTC will have to surpass $6K territory again for that to occur. Regardless of whether bitcoin’s cup is currently deemed to be half full or half empty, what’s indisputable is that raising funds has become significantly easier for crypto projects since the market perked up a months ago. This week, news.Bitcoin.com spoke to more than half a dozen projects that all reported a similar story: investors have loosened their purse strings.
Crypto Markets and CME Futures Post Record Trade Volume
Volume has been ramping up across the cryptocurrency markets, with April seeing a new all-time high posted for daily global cryptocurrency volume. The month has also seen Chicago Mercantile Exchange (CME) report record trade volume for its BTC futures contracts, in addition to Cumberland’s trade desk reporting an influx of 1,000 BTC buy orders, signaling strength across numerous facets of the virtual currency ecosystem.
BCH Maintains Strong Lead as Crypto Prices Record Slight Pullback
Cryptocurrency markets saw some significant gains over the last two days, but prices on Thursday have started to pull back from this year’s all-time highs. When the spikes first initiated, bitcoin cash (BCH) led the pack out of the top 10 cryptocurrencies and still maintains a lead with over 75 percent worth of gains for the week.
Bitcoin Surges as Cryptocurrency Market Suddenly Springs to Life
Double-digit advance in virtual currencies ends months of calm
Traders struggle to pinpoint reasons for brisk comeback
An abrupt surge in Bitcoin sent the world’s most popular cryptocurrency to the highest level since November, jolting the $160 billion market for digital assets after three months of calm.
Traders struggled to pinpoint reasons for the rally, though some noted a flood fresh interest after Bitcoin breached the $4,200 level. The cryptocurrency briefly topped $5,000 and the value of digital assets tracked by CoinMarketCap.com jumped by about $17 billion in less than an hour.
Sudden swings in Bitcoin are nothing new, but price action had been relatively subdued this year as investors weighed the prospects for mainstream adoption after last year’s 74 percent crash. Market participants say big buy orders in Bitcoin can often lead to outsized moves, in part because volume is spread across dozens of venues. Trend-following individual investors and short covering can also exacerbate volatility.
“The Bitcoin market and crypto market in general continues to be small relative to the rest of the markets -- and emotional,” said Jehan Chu, managing partner at blockchain investment and advisory firm Kenetic Capital. “It’s still very much subject to waves of enthusiasm. I don’t think today is anything special.”
Even after paring some of its gain, Bitcoin was trading up 15 percent at $4,737.59 as of 11:35 a.m. in New York. Rival coins Ether, Litecoin and Bitcoin Cash jumped by double digits. Cryptocurrency-linked stocks including Remixpoint Inc.and CMC Markets Plc advanced.
George Harrap, chief executive officer at Bitspark, said he’s putting “most things on pause” until the market settles down. His contacts in the Bitcoin community have yet to identify a catalyst for the sudden jump.
“The reason why? Anybody’s guess at the moment,” Harrap said.
Among potential triggers discussed on trading desks and in social media: short covering by traders who had stop-loss orders around the $4,200 level, computer-driven trading and an April Fool’s Day story on a little-known online news site claiming that the U.S. Securities and Exchange Commission had approved Bitcoin exchange-traded funds.
Gibraltar Exchange to List Bitcoin Cash Fiat Trading Pairs
A Gibraltar insured and regulated digital asset exchange is set to list bitcoin cash (BCH) versus fiat trading pairs. Users of the platform, that also features fiat onboarding capabilities, will soon be able trade the popular cryptocurrency against the U.S. dollar, British pound and the euro.
BCH/Fiat Trading Pairs Are Coming to GBX-DAX
The Gibraltar Blockchain Exchange (GBX) has announced that starting from March 13, fiat trading pairs with bitcoin cash (BCH) will be available to users of its insured and regulated Digital Asset Exchange (DAX). The new bitcoin cash fiat trading pairs will include BCH/USD, BCH/GBP and BCH/EUR, as well as trading pairs with BTC and ETH.
Bitcoin Whales Have Accumulated Thousands of Coins in the Last 2 Months
Cryptocurrency markets experienced a long bearish cycle last year which has continued into 2019. With some of the top cryptocurrencies like bitcoin cash (BCH) and bitcoin core (BTC) losing significant fiat value, large holders, otherwise known as ‘whales,’ have been able to accumulate massive amounts of digital assets. According to the top 100 rich list addresses for both coins, the world’s richest bitcoin holders have taken full advantage of ‘weak hands’ and discounted prices.
Davos 2019: Leaders Share Mixed Cryptocurrency Predictions
The annual meeting in the Swiss mountain resort of Davos from Jan. 22 to 25, attended by business leaders, politicians, and economists is in progress. Cryptocurrency is once again on the agenda, but so far the discussions emerging from the conference have been mixed, giving attendees plenty of FUD for thought.
Cryptocurrencies on the Agenda at Davos
This year many high profile government representatives dropped out from attending the Davos conference aimed at the global elite. President Donald Trump canceled his trip due to the ongoing government shutdown, French president Emmanuel Macron said he would not attend after weeks of protests in France, and U.K. prime minister Theresa May pulled out due to the complications caused by Brexit.
Despite the high profile dropouts the show, must go on. Delegates at the Swiss resort have been busy discussing major issues around crypto. Bloomberg TV reports that Huw van Steenis, senior advisor to Bank of England Governor Mark Carney, said: “Cryptocurrencies fail fundamental tests of financial services.”
During a CNBC hosted panel, Jeff Schumacher, founder of BCG Digital Ventures, said: “I do believe it [bitcoin] will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything.”
Cryptocurrency Representatives Keep a Low Profile
From the conference, Angel Versetti, CEO of decentralized internet of things networkAmbrosus, told news.Bitcoin.com there is a general sentiment of uncertainty and worry in the air, with broader menacing macro-trends indicating a potential looming global crisis not only economically, but also politically across different zones.
Compared to Davos 2018, many crypto delegates are keeping a low profile this year. Versetti said: “Already, almost every one of the great powers has canceled their attendance; heads of state from Russia, China, America, France, the UK, and India all opted not to attend. In general everything is toned down compared to last year.”
In 2018 we witnessed economic growth and the World Economic Forum (WEF) took place when cryptocurrencies were close to their peak value. Versetti said:
While last year, people were talking about crypto and blockchain anywhere and everywhere, this year there is comparatively little discussion around it.
Another observation made at Davos on Jan. 23 is that the flagship flashy crypto pavilions of last year, such as Consensys and Global Blockchain Council, have become much more modest and low profile.
“One can feel the crypto crisis there, because the pavilions are never full and most guests are from the crypto space itself, rather than from other industries. As the 1 percent continue to go back and forth on their position on crypto, big bankers’ skepticism on the role of cryptocurrencies in finance is unwavering. Some crypto events even shut down their pavilions and canceled their participation altogether,” said Versetti.
Some attendees are remaining positive despite all the doom and gloom talk at Davos. Michael Sung, a technology investor and co-director of the fintech research center, told news.Bitcoin.com: “This year crypto will finally get grow up and get real, where the technology, business models, traction across industries, and regulation are all simultaneously maturing to enable practical enterprise applications. We are waking up from a crypto hangover where undisciplined unenthusiasm of last year will lead to better behavior which will drive the industry into professionalism such that institutional participation will be possible.”
More Balanced Panels and Views Shared
One key panel at Davos, called Building a Sustainable Crypto-Architecture, was more interesting as it featured a range of balanced views. The panel pitted well-known Bitcoin skeptics Gillian Tett from the FT and Ken Rogoff from Harvard against the founders of Circle, which is backed by Goldman Sachs and Bitpesa.
As the Building a Sustainable Crypto-Architecture panelists noted, it’s likely that regulation of the cryptocurrency space will increase. Regardless of the stance that lawmakers take, this much is for certain: business leaders will continue to flock to Davos every year and the vast majority will continue to be badly wrong about Bitcoin.
Russian Institutions Back Proposal to Let Companies Use Cryptocurrency
An idea to allow companies from certain sectors and in some regions to use cryptocurrencies is gaining traction in Russia. The proposal has been included in a draft law prepared by the Economy Ministry, a high-ranking parliamentarian has voiced his support, and big business is discussing its implementation.
Draft Law Offers to Create Regulatory Sandboxes in Russian Regions
Select entities from the IT sector and the blockchain industry may be permitted to utilize digital assets in their financial transactions, Russian media reported. The experimental regulatory regime is to be implemented in some regions of the vast country, according to a draft law put forward by the Ministry of Economic Development.
Using Technical Indicators to Trade Crypto in 2019
Technical analysis (TA) has been used to trade crypto since its inception. Traders claim that through careful analysis of historical data and focus on price, volume, and related indicators it is possible to identify patterns and predict outcomes. Here are a number of key indicators and mechanics commonly used for trading crypto.
SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval
At the Consensus Invest conference on Tuesday, SEC Chairman Jay Clayton explained what he needs to see before the SEC can consider approving its first bitcoin exchange-traded fund (ETF).
According to Cnbc, Clayton said he “needs to see key upgrades in cryptocurrency markets before approving a bitcoin ETF.” Specifically, the SEC chair “wants to see better market surveillance and custody for cryptocurrencies before being ‘comfortable’ with a bitcoin ETF,” the news outlet added.
Better Market Surveillance
The first issue Clayton noted was the lack of market surveillance at crypto exchanges. Market surveillance involves the use of systems that “monitor, prevent and investigate abusive and manipulative activity on the exchanges,” the publication described.
The chairman explained that stock exchanges such as the New York Stock Exchange and the Nasdaq already have these monitoring tools in place. However, “Those kinds of safeguards do not exist currently in all of the exchange venues where digital currencies trade,” he affirmed, asserting: