Indian Government to Draft Cryptocurrency Regulation Next Month

The Indian government is reportedly getting ready with draft regulations on cryptocurrencies next month.
The finance ministry set up a panel in November 2017 for the purpose of preparing a regulatory framework on the issue, but the central bank has created a hostile environment for digital currency trading platforms in 2018.
After a multitude of petitions filed by operators against the Reserve Bank of India’s (RBI’s) anti-crypto circular, the Supreme Court of India has ordered Narendra Modi’s government to clarify its policy in November.
India to Clarify Policy on Cryptocurrency Trading in December
A counter-affidavit produced by the Indian government and filed in the supreme court on November 19 says the finance ministry is about to draft cryptocurrency regulations next month, according to news website Quartz.
“…currently, serious efforts are going on for preparation of the draft report and the draft bill on virtual currencies, use of distributed ledger technology in (the) financial system and framework for digital currency in India. The draft report and bill will be circulated to members of IMC (inter-ministerial committee). Thereafter the next meeting of IMC will be held so that discussion can take place on the draft report and bill. It is expected that the draft report will be placed before the IMC by next month.”
The finance ministry panel is headed by Subhash Chandra Garg, a secretary in the department of economic affairs, and includes RBI deputy governor BP Kanungo and the chairman of India’s market regulator Ajay Tyagi.
The latter has said that virtual currency so far has not posed any systemic risk and is adept of distributed ledger technology. Kanungo, on the other hand, is a leading figure in the fight against cryptocurrency exchanges and is responsible for pushing many of them towards crypto-friendly countries such as Singapore.
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs [virtual currencies.] Regulated entities which already provide such services shall exit the relationship within a specified time,” Kanungo said in July.
Subhash Chandra Garg, the head of the panel, took to Twitter in December 2017 to issue a statement with a somewhat unfriendly tone towards the cryptocurrency space as he likened trading in digital currencies to classical Ponzi schemes.
“Cryptocurrencies like Bitcoins are neither currency nor coin. Not legal tender in India at all. Trade in these currencies has assumed character of classical Ponzi schemes. Limited supply and uninformed demand makes every new investor assume higher risk. No underlying real value.”
A previous task force, which was set up in March 2017, recommended that consumers should stop trading cryptocurrencies and operators should be choked instead of banned. The document was attached to the government’s counter-affidavit submitted to court, but in a sealed envelope, according to Quartz, which indicates the intention of making its content unknown to the public.
Related Reading: Major Indian Crypto Exchange CEO Openly Asks Gov’t to Regulate Crypto
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Israeli Startup Launches Crypto Funds Amid Institutional Push

Since the value of Bitcoin began to recede in early-2018, investors from across the globe have sought to find a silver lining to latch onto.
However, with initial coin offerings (ICOs) seeing less than adequate amounts of interest, security tokens failing to pick up steam, and corporations remaining hesitant to adopt blockchain-based technologies, investors have only found hope in institutional involvement.
And, with a number of developments and cries for the arrival of the “institutional herd,” it has become apparent that finally, after a multi-month downtrend, crypto investors can find some much-needed solace.
Silver Castle Launches Two Crypto Funds, Looks to Institutional Investors
According to a report from Bloomberg, Silver Castle, a Tel Aviv, Israel-based digital asset investment house, has recently launched two cryptocurrency-centric funds.
Silver Castle’s first fund trades on the back of an undisclosed group of algorithms, which reportedly analyze the momentum of the five most capitalized cryptocurrencies, before opening short or long positions as it sees fit. Eli Mizroch, CEO of Silver Castle, explained that these algorithms have been used in-house for over a year, with results being in the “high double-digits,” presumably in terms of percentile.
The second fund, which also makes use of algorithms, offers investors a collection of this market’s top 10 cryptocurrencies. The latter fund is likely aimed at the long-term crypto investor, while short to medium-term investors would have a penchant for the former.
By year’s end, Silver Castle, Israel’s first institutional-focused cryptocurrency investment corporation, hopes to have $50 million in investor capital under its belt via the two aforementioned funds. Speaking on his firm’s appeal to institutional grade investors, Mizroch stated:
“We spent close to a year building robust infrastructure for managing other people’s money at the level of institutional grade with very, very high security.”
If the two aforementioned funds garner adequate support, Mizroch hinted at his startup’s plans to offer a third fund, which would be focused on investing capital in ICOs and tokens.
Silver Castle evidently wants to maintain its hegemony over the Israeli crypto ecosystem, as a multitude of startups and organizations in the region continue to eye blockchain technologies and cryptocurrencies. Israel-based eToro, for one, recently doubled-down on its crypto-related offerings, launching a cryptocurrency wallet after first offering Bitcoin (BTC) speculative trading in 2014.
Binance CEO: Institutional Involvement Is “Very Net Positive”
Interestingly, Silver Castle’s foray into professionally managed crypto funds comes amid a newfound drive to obtain the business of institutional players in this market. Speaking with The Street’s Jordan French, Changpeng “CZ” Zhao, CEO of Binance, explained that “increased institutional participation is a very good thing.”
Bringing up Boston-based Fidelity Investment’s recent foray into the crypto market, dubbed an “all-in play” by optimists, CZ noted that the establishment of Fidelity Digital Asset Services (FDAS) “suggests the crypto market cap will grow a lot more.”
Essentially using the age-old concept of the “snowball effect” to describe this market’s potential growth cycle, Zhao then explained that as this market swells, so will adoption, subsequently bolstering prices.
The Binance executive then discussed volatility in this market, verifying the popular theory that institutional involvement calms emerging markets, like Bitcoin, while also enticing more players in.
Taking this all into account, in short, as put by Zhao:
“All of this I think is very positive. It’s just a matter of time [that institutions will arrive en-masse]. I don’t know how quickly it will happen, but it will happen.”
Zhao’s aforementioned comments echo a tweet he made in late-October, in which he noted that “sooner or later,” funds from the pockets of institutions will make a perceptible appearance in cryptocurrency markets for the first time ever.
Interestingly, Zhao isn’t the only industry savant to be making such claims, far from it in fact. Mike Novogratz, a former institutional banker-turned-cryptocurrency investment deity, recently lauded FDAS’ proposed custody solution, before subsequently aiming his firm’s scopes at institutional clients.
Related Reading: Why Are Novogratz, Fidelity, and Bakkt Banking on Institutional Crypto Investors?
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DoJ Bitcoin Manipulation Probe Homes in on Tether and Bitfinex

Tether Burns Half a Billion USDT Coins in an Act of RedemptionAn ongoing criminal probe into potential Bitcoin price manipulation conducted by the U.S. Department of Justice has begun to take a closer look at how Tether and crypto exchange Bitfinex may have played a role in Bitcoin’s parabolic rise in late December.
Bitcoin Manipulation Probe Sets Sights on Tether, Bitfinex
Back in May of this year, the United States Justice Department (DoJ) in collaboration with the Commodity Futures Trading Commission (CFTC) launched a criminal probe into whether or not crypto traders were manipulating the price of Bitcoin.
They were trying to determine where they were using tactics such as wash-trading and spoofing – a practice in which large orders are placed in an attempt to influence the direction of price movement, only to have the order “wall” pulled once its orders begin closing into it.
According to a new report from Bloomberg, investigators have homed in on the leading stablecoin by market share, Tether, and the popular margin-trading crypto exchange Bitfinex that it is closely tied to.
As many as three different sources “familiar with the matter” suggest that the probe evidence potentially points toward Tether and Bitfinex being used to illegally boost prices. Both Tether and Bitfinex share the same management team, which appears to be at the center of the investigation.
Research Suggests Tether Used as FOMO Fuel, Tether and Bitfinex Deny
Shortly after the DoJ launched its probe, academic researchers from the University of Texas released a scathing 66-page report claiming they had discovered data that suggested Tether was printed and used following “market downturns,” which resulted in “sizable increases in Bitcoin prices.”

“Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies,” the paper surmised.

Despite repeated questioning into the integrity of the businesses he oversees, Jean-Louis van der Velde, CEO of Tether Ltd., refutes all claims and asserts his business is legitimate.
Related Reading: Tether Burns Half a Billion USDT Coins in an Act of Redemption
Continued Controversy Surrounding Tether and Bitfinex
Controversy seems to follow Tether around at every turn. The company has long been under scrutiny that the stablecoin cryptocurrency isn’t tied 1-to-1 to a corresponding U.S. dollar as the company claims. Tether has released reports from third-party auditors confirming the Tethers supply is appropriately backed, but the cryptocurrency community remains skeptical.
Uncertainty surrounding Tether recently led to the price of Bitcoin becoming out of sync across cryptocurrency exchanges, depending on if the exchange offered a trading pair against BTC tied to Tether, or tied to USD. Exchanges that offered Tether saw Bitcoin prices trade at as much as a $1,000 premium at once point, as capital flowed out of Tether and into cryptocurrencies like Bitcoin on the exchanges that offered the controversial stablecoin.
In the past year, Bitcoin has risen from around $6,000 to $20,000, only to this week break below $5,000 to a one-year low of $4,250. Tether is said to have been used to pump Bitcoin’s price, creating a parabolic rise and subsequent market crash.
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Bitcoin [BTC/USD] Technical Analysis: Cryptocurrency cries for help as bear continues to destroy price supports

The bear has not been kind to the cryptocurrency market with almost all the coins bleeding red. Bitcoin [BTC], which was speculated to hit highs of $25,000, has gone ahead and fallen below the $5,000 mark, a crash that has sent the entire cryptoverse into a frenzy.
1-hour

The one-hour chart for Bitcoin [BTC] shows a drastic price drop. The support breaks have been quite rapid, with multiple supports breaking one after the other. The new support, at the moment, is at $4499.8 while the immediate resistance is holding at $6,474.6. The downtrends on the chart have been quite visible, with the cryptocurrency falling from $6,474 to $5,673.1, and then falling to $4,615.4.
The Chaikin Money Flow [CMF] indicator has crashed into the bear realm, which indicates that the money flowing out of the market is greater than the inflow.
The Relative Strength Index [RSI] has just begun its trip into the RSI zone after breaking the oversold barrier. This shows that the selling pressure is more than the buying pressure.
1-day

The one-day Bitcoin graph paints a bearish picture all throughout. The indicators too have taken the side of the bear. The current one-day support is at $4,616.8 with the downtrend bringing the price down in two phases: $8,193-$6,493.4 and $6,493.43 -$4,621.
The Bollinger bands indicate the start of a massive price outbreak tending towards the bear zone. The upper band and the lower band have both taken sharp turns in the opposite directions, signifying the price drop to continue for more time.
The MACD indicator shows the signal line and the MACD line falling in tandem after a bearish crossover. The MACD histogram has been flat for a long time with the bearish graph taking over.
Conclusion
Bitcoin’s misery looks to continue for a longer period of time with the prices free-falling beyond expectations. The indicators show that a trend change does not seem to be around the corner,  with the bear currently speeding in the driver’s seat.
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Source: AMB Crypto

Bitcoin Sets Yearly Low Below $4,400, Recovers Slightly as Altcoins Continue to Drop

After yesterday’s widespread market carnage, Bitcoin has continued to drop and is showing little sign of a pending recovery. Bitcoin’s latest drop to fresh 2018 lows has dragged altcoins even further down, and market sentiment is sitting at a yearly low as investors lose hope.
At the time of writing, Bitcoin (BTC) is trading down 7% at its current price of $4,780, but has recovered slightly from its intraday lows of under $4,400. Bitcoin has been falling ever since it failed to decisively breach the $6,500 level earlier this month, and today’s slight bounce was the first major one Bitcoin has seen since it started its decline.
BTC’s latest leg down, which first began yesterday when it fell below $5,000 and continued well into today, has been perpetuated by increased trading volume, which has surmounted to nearly $9 billion on the aggregated markets. This is up significantly from its volume levels earlier this week while BTC was trading in the mid-$5,000 region, where its 24-hour trading volume was just over $4 billion.
The overall cryptocurrency market cap is currently sitting at approximately $155 billion, down from its November highs of $220 billion.
Related Reading: Analyst: Too Early to Write off Bitcoin, SEC Had Negligible Effect on Crypto Markets
Altcoins Sink to New 2018 Lows as Bitcoin Plunges
Bitcoin’s price drop over the past few days has led the markets, with most altcoins trading down significantly over the past week.
The market drop has been led by Ethereum (ETH) and Bitcoin Cash (BCH), which have seen massive drops of 35% and 60% respectively from their November highs.
Ethereum, which dropped from monthly highs of $220 to its current price of $143, may be seeing the result of ICO projects selling off their remaining ETH holdings in an effort to protect their funds, although this claim, which has been echoed by several pundits and analysts, is purely speculative and there is little data to support it.
Bitcoin Cash has been spiraling downwards ever since its hard fork event occurred, which initially seemed like a good thing for BCH’s price.
In late-October and early-November, BCH’s price climbed from under $420 to highs of over $630 due to the imminent hard fork event, but around this price enthusiasm died off and traders began taking profits, which pushed its price down.
Following the hard fork event, BCH continued to spiral downwards, which was perpetuated by Bitcoin’s crash, leading its price near its all-time-lows of $208.
XRP has been a market outlier over the past few days and has been relatively stable during these turbulent market conditions.
At the time of writing, XRP is trading down 8% at its current price of $0.452. Although its price has fallen slightly today, it has held up significantly well over the past few days and is only trading down 16% from its monthly highs of $0.54. Although this seems like a large drop, it has been one of the best performing altcoins in the market.
Over the coming days and weeks, the market’s price movements will give investors increased clarity as to whether or not this is simply capitulation or a sign of what is to come in 2019.
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Bitcoin [BTC] rigging: Department of Justice initiates probe into alleged price manipulation by Bitfinex and Tether during 2017 rally

Tether and Bitfinex have been under US Securities and Exchange Commission [SEC] and Commodity Futures Trading Commission [CFTC]’s radar for a very long time in relation to Initial Coin Offering [ICO] scams and market manipulation, but nothing concrete was ever established against them. As new findings come to light, according to a report by Bloomberg News, three people familiar with the source claim that CFTC and federal prosecutors are looking into price manipulation of Bitcoin, which is interconnected with Bitfinex and Tether – a popular stablecoin.
It is well-known that Bitfinex and Tether work together as they share the same management team and they have been steeped in rumors surrounding Tether and whether it is actually pegged by the USD in a 1:1 ratio.
The Justice Department’s probe is focused on the exponential rise of Bitcoin’s price last year and if it was purely based on public and investor demands. The sources close to the matter also said that the Justice Department was looking into how Tether creates new coins which enter into the cryptocurrency market and mostly through Bitfinex.
According to Bloomberg, the probe by the Justice Department takes a closer look into the allegations made in a paper authored by John Griffin and Amin Shams.
The paper, ‘Is Bitcoin Really Un-Tethered?’, claims:
“Purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices. Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies.”
The research, a 66-page long analysis, further added that USDT was used buy BTC at important market positions [when it nosedived], helping it “stabilize and manipulate” the token’s price.
John Griffin, a finance professor from the University of Texas, who has a 10-year track record of spotting financial fraud, declined to comment on the matter when asked whether he was questioned by the government officials, Bitfinex’s CEO J L van der Velde disregarded the findings of the paper.
Tether has tried several times in the past year to clear the air regarding its peg to the USD. Tether recently confirmed that it had established a banking relationship with a bank based in the Bahamas and the latter issued a letter confirming the portfolio value of Tether at $1.8 billion.
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Huobi Plays Party Line in China, Creates Communist Committee

What do Bitcoin and communism have in common? Huobi.
The world’s third largest digital assets exchange has set up a Communist Party committee via its $2.9 million-subsidiary, Beijing Lianhuo Information Service, reported the South China Morning Post.
The decision comes under the garb of a political charter given by the Chinese Communist Party to local enterprises. According to it, any company having at least three party members as employees will establish a particular branch to promote the party’s agenda.
The protocol – so far – has seen participation from state-backed enterprises. Only recently, private companies have begun to take an interest in it while eyeing government support. They include gaming titan Tencent Holdings, search engine Baidu, smartphone manufacturer Xiaomi, e-commerce company Alibaba Group Holding, owner of the South China Morning Post. Latest tech start-up like Douyu, a live video streaming platform, is also the newest to join the communist party wing.
Huobi has reportedly become the first blockchain enterprise to have established itself in China’s political space. The company now expects to expand its venture capital and research & development operations inside the mainland.
Related Reading: Huobi, Kraken Assign BCH ‘Throne’ to ABC, Yet Bitcoin Cash Hashwar Continues
Political Mileage
Huobi founder and chief executive Li Lin, who holds a 99 percent stake in Beijing Lianhuo, termed its launch as a “milestone” for the blockchain industry. Lin attended the Beijing Lianhao’s opening ceremony with 50 other party members, according to Huobi’s official press release.
Cao Zhou, one of the party members who attended the ceremony, particularly stressed the importance of government and private enterprises joining hands to promote the industrial and tech space in China.
“We must enhance the party’s political leadership, and carry out the party’s principles and policies in private enterprises,” he added.
Lin, in comments given for the company’s press release, also projected Huobi as a perfect match for China’s policies on the blockchain, believing the company will be more successful than ever with the government support.
What Does It Mean for Bitcoin?
As Huobi gains a foothold in the Chinese blockchain space, the company will continue to keep its digital currency exchange away from the mainland.
Now operating from Singapore, the Huobi digital asset exchange garners a daily trading volume of US$560 million, according to data available at CoinMarketCap. But due to China’s strict stance on retail trading of digital assets like Bitcoin, Huobi now keeps only its non-exchange business inside China, which includes operations related to venture funding and blockchain consultation.
It is clear that Huobi’s expansion into China will not be impacting its relationship with an exchange that the Chinese government considers “banned.” Nevertheless, the company’s closeness with the party officials could gain it rights to lobby the digital currency regulation, now that reports are indicating that the use of Bitcoin is not entirely illegal in China.
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Bitcoin Shopping May be Closer than We Think

CoinSpeaker

Bitcoin Shopping May be Closer than We Think

Baran Giresunluoglu, professional investor and stock trader, shares his clues to Bitcoin shopping, which he thinks could be even closer than we think.

Bitcoin Shopping May be Closer than We Think

Continue reading at Coinspeaker
Source: CoinSpeaker

Nobody Panic! Bitcoin Plummet Prompts Reassurance from Crypto Pundits

Bitcoin has dropped close to 30% in November and is hinting more losses. But many prominent crypto figures believe the digital currency will recover one way or another.
CNBC Crypto Trader Ran Neu-Ner said that the crypto market is at most bearish not in a full-fledged panic mode. He predicted that bottom was near which could allow people to reestablish their long positions in Bitcoin and other top crypto-assets.

Up until now even though we have been in a bear market we haven’t seen panic or capitulation. In the last few days panic is clearly upon us. It’s a great signal that the bottom is near…
— Ran NeuNer (@cryptomanran) November 20, 2018

Keep Calm and HODL
Analysts from all across the crypto-sphere had previously highlighted $6,000 as their potential bitcoin bottom. Bears broke the said level on Thursday last week, which ultimately shifted many preconceived notions about Bitcoin supports. Some predicted it will crash to as low as $4,500 before it corrects higher. While a widely reported analysis by Bloomberg called $1,500 an achievable bottom for Bitcoin.
The crypto market, which mainly consists of retail investors prone to emotional trading, tends to react to these predictions. A dump orchestrated by bear whales can easily send jitters across the whole community, leading them to sell shortsightedly fearing additional losses.
Changpeng Zhao (CZ), the founder and CEO of Binance, the world’s leading digital assets exchange, highlighted this problem and requested the community to avoid reacting to Bitcoin bears. He reminded how bitcoin since inception has gone through similar wild swings only to reemerge as a winner.

been through this many times already. Secret of success? Keep your head down and build.
— CZ Binance (@cz_binance) November 19, 2018

Earlier this month, CZ had predicted a bull run in the Bitcoin market albeit without mentioning the catalysts that would drive it.
Glorious Spring Ahead
John McAfee echoed his pro-crypto view albeit with a dramatic touch to it. Comparing the current bearish bias with a harsh winter, the antivirus pioneer predicted a spring – a strong upside correction based on the historical price action of Bitcoin.

People have panicked. But there's no fucking need. We're in a bear market. They suck, yes, and not like a hooker with no teeth. But I'm 73 and have seen this dozens of times in many markets. Bear markets are like Winter. It's always followed by a glorious Spring. Fucking relax.
— John McAfee (@officialmcafee) November 20, 2018

While Bitcoin bulls attempt to re-inject confidence in the market, Bitcoin is already undergoing a free-fall. On Bitfinex, the BTC/USD rate briefly breached the $4,500-support area and established lower lows towards $4,400. A minor correction appeared later and took value back above the so-called bottom.
Nevertheless, on Coinbase, the BTC/USD is now trading at $4,403 at the time of this writing, with its daily low already established at $4,218.
All eyes are now fixed on the launch of the ICE-backed Bakkt trading platform in December. If it does prove bullish, then the SEC’s decision on Bitcoin ETF remains the only interim catalyst that could drive the Bitcoin higher – as the crypto celebs mentioned above predict.
 
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Bitcoin Price Analysis: BTC/USD’s 2018 Decline Is Far From Over

Bitcoin price extended declines and traded to new lows below $4,550 against the US Dollar. BTC/USD is currently under pressure below $5,000 and the decrease in Bitcoin Hash Rate could ignite more losses.
Important Points:

Bitcoin price tumbled below the $5,060 and $4,860 support levels.
BTC/USD is currently following a major bearish trend line with resistance at $4,700 on the 2-hours chart.
Bitcoin’s Hash Rate dropped more than 12% recently, adding fuel to the fire.

Bitcoin Price Analysis
After a drop below the $5,060 support, bitcoin price found a decent buying interest near the $4,860 level against the US Dollar. BTC/USD corrected a few points, but it failed to hold gains and declined below the key $4,860 support.
The 2-hour chart indicates that the price dropped heavily below the $5,060 and $4,860 support levels. It even declined below the $4,550 support and traded to a new multi-month low around the $4,400 level.
Chart Source by TradingView
The RSI on the 2-hour chart has reached the 10 level, suggesting that the price is facing a solid selling interest below $4,860. However, there are chances of a short-term bounce from the recent low of $4,407.
An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $5,751 high to $4,407 low. Moreover, there is a major bearish trend line in place with resistance at $4,700 on the same chart to act as a barrier for buyers.
If there is a break above the trend line and $4,700, the price could test the previous support at $4,860, which is likely to act as a crucial resistance. Above $4,860, the main resistance is near $5,060 and the 50% Fib retracement level of the recent decline from the $5,751 high to $4,407 low.
Therefore, if there is an upside recovery, the price could face a lot of hurdles near $4,700, $4,860 and $5,060. On the downside, the recent low at $4,407 is a short-term support. If there is a break below $4,400, then bitcoin price will most likely nosedive towards the $4,000 handle in the near term.
Adding fuel to the fire, if Hash Rate continues to plunge, it could increase bearish pressure on bitcoin considering miners might be forced to turn off rigs or switch to a different network to avoid losses.
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Source: CoinGape

Ron Paul Poll: 50% in Favor of Bitcoin as Long-Term Investment

Former U.S. House Representative Ron Paul recently polled his Twitter followers on which long-term investment vehicle they’d prefer if given a $10,000 gift and the choice of what to invest in. The overwhelming majority selected Bitcoin as their choice for a 10-year hold.
Ron Paul Twitter Poll Shows Preference for Bitcoin
Ex-Texas Congressmen and thrice-failed Presidential candidate Ron Paul took to his Twitter soapbox this week.
He was seeking an answer to what his followers would choose if given a gift of $10,000 and the option of which investment instrument to put the cash into for the long-term. The only catch was the investment of choice needed to be held for 10 years.
The poll offered up the choice between Federal Reserve notes, United States 10-Year Treasury Bonds, gold, and digital gold: Bitcoin – which has recently reached new one-year lows after 11-months of an ongoing bear market.
Bitcoin received the highest number of votes at 50% of all respondents. Federal Reserve Notes, 10-year Treasury Bonds, and gold all received 2, 11, and 37 percent of the vote, respectively.
Considering the return alone of each asset type over the last decade, it shouldn’t come as a surprise that Bitcoin received the overwhelming majority of votes, even despite it being a relatively new, often misunderstood, and even demonized asset for its use in criminal activities, conspiracy around price manipulation, contributions to energy consumption, unrivaled price volatility, and more.
Related Reading: Survey: 72% of Institutional Investors Believe Crypto Prices Would Rise in a Recession
10-Year Investments: A Comparison Against Bitcoin
Federal Reserve Notes is just another term for USD paper currency, meaning the $10,000 would be held directly in cash for 10 years. Given the fact cash isn’t technically an investment vehicle and can actually lose value over the course of 10 years due to inflation, it’s not shocking to see this option receive the least amount of the votes.
U.S. 10-year Treasury Bonds have offered investors return rates that have fluctuated between 2-3% over the last 10 years. Treasury Bonds are considered among the safest investment types as there is virtually no default risk, given the fact the government can just print more money to pay off its debts.
Over the last 10 years, gold has provided investors with a 65.7% return, all while providing peace of mind. Gold is often considered a safe-haven asset during times of uncertainty. And with many financial and economic analysts predicting a global market crash and subsequent recession on the horizon, gold is a sound 10-year investment.
Bitcoin however, over the 10 years since inception has gone from being virtually worthless, to being worth $20,000. Even at Bitcoin’s currently traded price of around $5,000 – the digital gold equivalent, as its pegged – has brought investors over 166 million percent gains over the last 10 years.
There’s a saying in cryptocurrency investing suggesting to “never invest more than you can afford to lose” that does put Bitcoin in a category by itself in terms of risk, but since the $10,000 was a gift in the first place investors are even more willing to put their investment at risk for a chance of substantial wealth.
Considering the exponential gain outlined above stacked against extremely moderate returns by comparison, it’s almost more surprising that Bitcoin didn’t receive an even larger number of the votes.
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Cryptocurrencies Plummet, Bitcoin Likely to Fall Further Says Analyst

After a week of poor performance, Bitcoin has continued its descent, and has now crashed below its previous 2018 lows of $5,500, setting fresh lows at $5,100. Bitcoin’s unprecedented drop has led many major altcoins to fall 10% or more, and according to one analyst, more blood is likely to come in the near future.
At the time of writing, Bitcoin (BTC) is trading down 9% at its current price of $5,100, setting a new year-to-date low. BTC’s latest drop comes less than one week after it fell from the $6,300 region, where it had relative stability, down to lows of $5,400.
The latest market carnage has led the overall cryptocurrency market cap to fall to just over $167 billion, a level that hasn’t been seen since October of 2016.
While speaking to MarketWatch, Stephen Innes, the head of Asia Pacific trading at Oanda, said that the regulatory hurdles that Bitcoin will face in the coming months will likely push its price below $5,000, opening the gates for even greater losses.
“The digital token fell as much as 6.3% to $5,202, having plunged through a critical resistance level Wednesday after a period of relative tranquility. I remain incredibly bearish on BTC with the $1,000 level looking as likely as $10,000. But this is from a longstanding and unwavering view that regulators and the banking system will continue to push back against the rise of virtual markets, and will undoubtedly burst crypto’s balloon as the $5,000 cliff edge is approaching fast.”
It remains unclear as to whether or not Bitcoin’s bulls will be able to defend $5,000, which appears to be a critical psychological level.
Related Reading: Tokens Plummet 15-20% Following SEC’s Crackdown on ICOs, Dark Days Ahead
Altcoins Plunge, XRP Holds Steady
As usual, BTC’s price led the general markets, causing many altcoins to drop 10% or more over the past 24-hour trading period. The plunge has, so far, been led by Ethereum (ETH), Litecoin (LTC), and Monero (XMR), which are trading down 11.6%, 10.4%, 12%, and 15% respectively.
XRP, however, has been able to avoid much of the carnage so far, and is currently trading down 3% at its current price of just under $0.50. Coinciding with Bitcoin’s drop last night, XRP fell to lows of $0.47, but quickly recovered to highs of over $0.50 before settling at its current price.
In addition to avoiding today’s widespread losses, XRP has also recovered much of the value it lost from last week’s market drop, when it fell from approximately $0.52 to lows of $0.42, before climbing back towards its current levels.
Because of XRP’s stellar performance over the past week, it has solidified its position as the number two cryptocurrency by market capitalization, which is currently sitting $4 billion higher than that of ETH’s.
The next few days will prove to be critical for bulls who are looking to regain market dominance by pushing Bitcoin’s price back up, as if it breaks below $5,000 there will likely be significantly larger drops to come.
Featured image from Shutterstock.
The post Cryptocurrencies Plummet, Bitcoin Likely to Fall Further Says Analyst appeared first on NewsBTC.
Source: New feedNewsBTC.com

Bitcoin Falls Below $5,000 for the First Time in 2018 on Coinbase

The price of Bitcoin fell below $5,000 on Coinbase for the first time in 2018 as the bear market continues to drag prices down across the board.
Market Cap Drops to Below $87 Billion
For the first time since October 2017, Bitcoin dropped lower than $5,000, at $4,996 on San Francisco-based crypto exchange Coinbase. As a result, its market cap was pushed down below $87 billion.

#Bitcoin is officially under $5k on Coinbase… pic.twitter.com/MyT75TEWlL
— Nye The Crypto Guy (@CryptoShillNye) November 19, 2018

Over the past seven days, Bitcoin’s value has declined by over 21 per cent, according to CoinMarketCap. The drop in value comes after months of stability with the crypto asset trading within the $6,200 and $6,800 range. However, last week market prices across the board started dropping between 10 and 20 per cent.
At the time of publishing, Bitcoin’s value has risen slightly back above the $5,000 level, at $5,101. Yet, according to one analyst Bitcoin is likely to fall back under $5,000 as it faces regulatory hurdles in the next few months. Stephen Innes, the head of Asia Pacific trading at Oanda, said to MarketWatch:
“I remain incredibly bearish on BTC with the $1,000 level looking as likely as $10,000. But this is from a longstanding and unwavering view that regulators and the banking system will continue to push back against the rise of virtual markets…”
According to Mati Greenspan, an eToro analyst, if the support level of $5,000 doesn’t hold, the next logical won’t be until $3,500. In a report from CNBC, he stated: “With all the falling prices lately, this definitely fits the definition of a buyers market.”
Others, however, have pointed to the recent Bitcoin Cash hard fork as the reason for declining prices. Brian Kelly, founder and CEO of cryptocurrency investment firm BKCM, said last week that the market is experiencing a “crypto civil war.” Referring to the split with the altcoin, Kelly said:
“When you do a software upgrade, everybody usually agrees. But in this particular case, everybody is not agreeing. So, we’ve got ourselves a ‘crypto civil war’ […] People started selling. That triggered stops. Everybody got concerned. And that’s what happened today — the entire market sell-down.”
Related Reading: Bitcoin Cash War Begins: Hash Power of BCH Increasing Rapidly
It remains to be seen whether or not the market will improve in the short-term. As for Tom Lee, co-founder of Fundstrat Global Advisors, he’s reportedly revised his end of year prediction for Bitcoin. Over the weekend, it was noted that he had changed it from $25,000 to $15,000.
Given the way the market’s currently heading that seems incredibly optimistic.
Featured image from Shutterstock.
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EOS, Tron [TRX] cumulatively contribute 82% of all cryptocurrency transactions

Despite a bearish and sideways market, cryptocurrency transactions seem to be on the verge of reaching the previous all-time high. As per the data obtained from Blockchain center, the total on-chain transactions for all cryptocurrencies exceeded 522.119 million and the total number of active users for these transactions add up to 1.357 million.
Source: Blockchain Center
EOS has the most number of transactions as compared to any other cryptocurrencies, even exceeding that of Ethereum [ETH] and Tron [TRX]. The total transactions of EOS as of today is approximately 350.30 million. These transactions are coming from a total of 41,457 active addresses.
The transactions on EOS network peaked at 468.08 million in the second week of August 2018 and has since declined to 350 million. When compared to the big picture, EOS’ transactions are coming from a mere ~3% of the total active users.
Source: Blockchain Center
Tron follows EOS and has ~78.543 million transactions, which is the highest number of on-chain transactions that Tron blockchain has ever witnessed. As compared to EOS, the total number of active addresses for Tron are almost halved, i.e, 21,211.
Source: Blockchain Center
 
Bitcoin’s total transactions in the year 2018 peaked at 24.25 million in the second week of January 2018 and are currently hovering at 17.08 million, but Bitcoin’s total active addresses far exceed that of EOS’ or Tron’s, coming up to 681,779.
Source: Blockchain Center
Ethereum has a total of 33.27 million transactions as of November 11, which is contributed by a total of 247,671 active addresses. Ethereum’s on-chain transactions peaked at 71.48 million in the second week of January 2018 and have since declined.
Source: Blockchain Center
XRP’s transactions have come down to 17.99 million transactions, which are one-quarter of XRP’s peak number of transactions i.e., 72.05 million. The total active addresses as of today add up to 6,924.
Source: Blockchain Center
In conclusion, Tron and EOS together have about 4.5% of the total number of active addresses, while still contributing 82% of all the cryptocurrency transactions.
Bitcoin and Ethereum together contribute a mere ~9.5% of the total transactions but have a cumulative active address contribution of ~68%. EOS contributes up to 67% of the total number of transactions on the blockchain while Tron contributes to 15% of the total transactions. To sum it all up, EOS and TRX control 82% of all the transactions which come from only 4.5% active addresses.
A Reddit user tsMQ commented:
“If only 3% of active addresses is making that many transactions imagine when we hit 10% maybe 15% we will be blowing them out of the water for transactions per 24 hours and usage per user which is what we want, users using their coins/resources not just bag holding and watching the price drop.”
The post EOS, Tron [TRX] cumulatively contribute 82% of all cryptocurrency transactions appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin [BTC] breaches below $5000 mark: Winter is here!

Bitcoin [BTC], the very first cryptocurrency and currently the biggest one by market cap has breached below the $5000 mark, crushing the investors. This is one of the lowest points the cryptocurrency has hit ever since its all-time high.
Unlike the market’s expectations, the currency has decided to take the opposite path than the one it took last year. The coin fell below $5000 on exchanges platforms that have not paired the cryptocurrency with Tether [USDT] such as Coinbase, the biggest cryptocurrency exchange platform in the US, and BitMEX, one of the biggest cryptocurrency exchanges in the market. Bitcoin reached almost $4950 before bouncing back on top to trade just above the $5000 mark.
Bitcoin price chart | Source: Trading View
On exchanges such as Binance and Bitfinex, wherein all the cryptocurrencies are paired along with Tether [USDT], Bitcoin is trading at a premium price of hovering around $5100.
Bitcoin price on Binance | Source: Trading View
According to CoinMarketCap, at press time, the cryptocurrency has a market cap of 88 billion. Additionally, it has a trading volume of more than $5 billion and has plunged in the market by 9% in the past 24 hours.
Along with Bitcoin, all the other cryptocurrencies are also bleeding in the market. Moreover, they have also touched their all-time low. This includes Ethereum, the third-biggest cryptocurrency by market cap, losing over 12.52% of its value. Litecoin, the seventh-biggest cryptocurrency in the market, losing over 12.68% of its value and Monero which has plunged by 15.04% in the market.
Peterepeat69, a Redditor said:
“It’s a serious dump for quite some time with a dead cats bounce this dump will be different to every other we have seen and continue south.. if you want to have some kind of Xmas put your money in your bank, it’s safer there.”
Smallbluetext, another Redditor said:
“Capitulation. Gonna be a slow trend down before it slowly turns around again. It’s been almost a year of this downward trend guys wake up. The next bull run is not as soon as you’d like but with patience you’ll get there.”
Mike, a Twitterati said:
“Funny how people think this is a buying opportunity and then 3 months later lose all their money”
The post Bitcoin [BTC] breaches below $5000 mark: Winter is here! appeared first on AMBCrypto.
Source: AMB Crypto