Altseason is Separating Good Ones From Shitcoins: Expert Opinion

The following article is the rework of the thoughts put forward by Mati Greenspan, Senior Market Analyst at eToro.
Key Highlights:

Shitcoins and garbage ICOs of 2017 are losing their value
Volumes of crypto to crypto exchanges rose by 20% confirming Altseason
Cardano, Ethereum Classic, and IOTA spike

Over the past couple of weeks, there has been some significant movement in the altcoins which is put a question to many, whether are we actually in an AltSeason. There have some peculiar characteristics noticed, where The top cryptos have mostly been stable over the last week but there has been rapid fluctuation among many of the lower cap coins. there have been dozens of altcoins with massive gains and massive losses. Some of the top gainers have seen more than 200% returns and some of the losers are down more than 90%. Most of these coins have never been heard about before. Clearly, the shitcoins are getting separated from the good ones.
While there have been movements among altcoins, CryptoCompare new report gave out another signal that showed we are in an Altseason – the trading volume on crypto-to-crypto exchanges increased in February, outpacing December results, while the trading volume on fiat-to-crypto exchanges remained flat.
Source: Cryptocompare report
The data showed that fiat-to-crypto trading dropped from USD 73 billion in December 2018 to USD 63 billion in both January and February of this year. Meanwhile, crypto-to-crypto trading seemed to be thriving in the last month: having dropped from USD 142 billion in December to USD 131 billion in January, it more than made up for this drop by climbing to USD 157 billion in the shortest month.
While it confirmed the Altseason is currently going on, after some correction yesterday Three coins: Cardano, Ethereum Classic, and IOTA have already managed to shake off that move and are up today.
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Source: CoinGape

eToro Survey Shows US Millennials Growing Faith In Cryptos, 71% Would Invest if Offered by Institutions

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights

eToro Survey says US millennials have trust in crypto assets
43% of Millennial online traders say they have less faith in the stock market than crypto assets
Bitcoin recedes back after claiming the USD 4000 mark

eToro survey shows US millennials growing interested in cryptos
Well, another survey and that has gone in favor of the cryptos again. eToro conducted a survey among Millennial online traders who chose cryptos asset investment almost at par with the traditional investing options. According to the results, Almost half of Millennial online traders have shown more trust and faith in crypto exchanges than the U.S. stock market, The nationwide survey which had 1,000 online traders found that

43 percent of Millennial online traders trust crypto exchanges more than the U.S. stock exchanges.
71% of Millennials would invest in crypto if it was offered by traditional financial institutions
Half of the online investors expressed interest in a crypto allocation in their 401k plans

The result among investors and crypto traders classes also yielded the same story as Among investors across all age groups that don’t trade crypto, 59 percent of respondents said they would invest more money in crypto if it were offered by a traditional financial institution. Meanwhile, current crypto traders would be more at ease investing in the asset class if it were offered by a traditional financial institution —  92 percent would invest more money if a conventional financial institution provided this investing option.
Bitcoin reclaims USD 4000 mark only to slip down back
The rally in cryptos over the last few days has been amazing. However, even within this longest crypto bear market of all time, there have been rallies before that ended up fizzling out. So, even though it’s possible these markets go to the moon from here, it certainly pays to be cautious. However, there is some interesting news flow that is put forward by the mainstream media that has helped the Bitcoin to rally. According to a recent report by The Independent, rumor mills are running high with the news that Samsung Galaxy S 10 will soon be integrating crypto wallets in them, while Bloomberg continued the to believe JPM Coin news has taken the Bitcoin price to USD 4000.
Forbes, on the other hand, feels its altcoins rallies in XRP and EOS that are driving the Bitcoin up. Whatever the reason be posted by media, but the major trigger to this rally has been due to a shortage in Ethereum creation. This supply shortage while demand remained consistent caused Ethereum’s price to rise dramatically and the rest of the cryptos followed. By today, it’s going on sheer momentum. After months of depressed prices, it’s about time there will be a real rally in this market.
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Source: CoinGape

Bitcoin Develops A Complete Different Use Case As Crypto Market Stays Strong: Expert Opinion

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights

New Projects clinging to Bitcoin’s blockchain drive transaction rates
Indonesian P2P volumes continue to rise
Crypto market continues its strong rise

Bitcoin develops a completely new use case as dangers of network spamming rise
A recent article has resurfaced which said that the new Veriblock project is driving substantial BTC traffic. While there have been a lot of projects that take advantage of Bitcoin’s network stability, this news is slowly raising alarm as the transaction rate of bitcoin is inching towards an all-time high. So, it seems that many of these transactions are coming from an entirely new bitcoin use case, other than just for sending money. Without going into too much technical detail, what’s happening here is that some new projects are making use of Bitcoin’s stability as a network to maintain the stability of other crypto projects.
It also seems that this is rapidly becoming the focus of hot debate among crypto spheres. While this is good in a way, it has raised a debate regarding network congestion. The use of crypto’s main Blockchain in this way has some upset that it could be “spamming the network” and by raising the amount of data stored it could increase the fees. Proponents of the concept, on the other hand, feel that this is actually just another real use case of bitcoin and the ability to store data in this way is built into the code for a reason. No matter what side one is one, at this point, one can take comfort in the fact that transaction fees in bitcoin are at a two year low at the moment, despite the added traffic.
Crypto markets continue to gain strength
Continuing its run from last week on the back of the news that crypto assets have just been legally recognized as a trading commodity in Indonesia, the large spike in seen in Indonesian volumes on P2P site Localbitcoins. With the size of the Indonesian remittance market topping $2.7 billion in Q3-2018, this is quickly becoming a crypto market to watch. While that’s from Indonesia, a lot of cryptomarkets have risen nicely over the weekend. move that has largely been led by Ethereum. In this graph below, one can see ETH (white line) against a basket of other crypto assets. Notice the sudden spike yesterday morning, which was followed by a full retracement. After which, Ethereum continued to rise throughout the afternoon and by the evening turned into a market-wide rally.

Another strong figure that shows market gaining strength is that the global volumes that had bottomed out around $14 billion on February 8th have now come up as high as $27 billion today. Movements that happen on strong volume tend to be more meaningful in the market as it shows the flows have power behind them.
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Source: CoinGape

Bitcoin Trading Volumes Across Crypto Exchanges See a Spike: Expert Opinion

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights

Under pressure from SEC, Reality Shares withdraws its Bitcoin ETF
Technical and Fundamental Analysis stay disconnected in the crypto markets
Trading volumes across crypto exchanges see a spike

Crypto Trading Volumes spike across major exchanges
Well, the news of Reality Shares pulling out its ETF application got a mixed reaction on the street as many believed that more products built on bitcoin without backing are actually bad for the industry and they much prefer services like Bakkt or the proposed VanECK ETF that are actually backed up one for one with real bitcoin.
Even though the news of the pullout was sentimentally negative it did not impact the price much. This is how the price of the Bitcoin prices is behaving for quite a while as the fundamental analysis and technical analysis of Bitcoin stay disconnected. Fundamentally the crypto world is getting some great news about the growth but yet the patterns that are forming on the charts are decidedly bearish.
While the divergence continues, the trading volumes across crypto exchanges have recently seen a strong spike. The volumes during December 2018 was close to USD 10 billion per day, which was way below the current volume. Over last  24-hours, volumes across exchanges have reached $36 billion this morning, on a day with very little price movement. While this is a rare phenomenon one has to remember, this is an entirely new market that has only surpassed the $1 billion mark for the very first time in March 2017. This industry has basically grown from nothing into a global market place in just a few short years.
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Source: CoinGape

Crypto Provides Attractive Asymmetric Risk: Expert Opinion

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights

Two Large pension funds invest USD 40 million in cryptos
While the amount is in actual terms looks good, it’s just 0.7% of the fund
With this minimal investment, the risk to the upside far outweighs the downside risk.

Cryptos has Asymmetric Risk
As the news of the two Fairfax funds investing $40 million into cryptos hit the street, it bought a definite joy to every crypto investor. But for the fund, this investment was opportunistic and lucrative created a position where cryptos provided an attractive asymmetric return profile.
To explain, the two Fairfax funds involved in this investment have a combined $5.7 billion under management. So the $40 million they’ve put into crypto is only 0.7% of that. This is good money management at play.
Should the crypto market see another year like 2018 with an 80% drawdown, the fund will only lose 0.56% of its total portfolio. As long as the rest of the portfolio performs properly, nobody will even notice the hit. But, If crypto has a fantastic year as it did in 2017 and rises by 1000%, their overall portfolio will rise by 7%. This is what we call asymmetric risk, where the risk to the upside far outweighs the downside risk.
Traders and investors are always looking for an advantageous risk/reward ratio and now that we’ve already seen a large retracement in the crypto market, the ratio is becoming very attractive. Now that Fairfax County has opened the door, it will be interesting to see if other traditional fund managers join in.
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Source: CoinGape

Bitcoin ETF Could Be Approved Anytime – Expert Opinion

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights:

Bitcoin ETF could happen any day as VanEck renews his proposal
3 out of 4 SEC commissioners seems to be crypto friendly
Crypto prices bounce back over the weekend

Bitcoin ETF approval may just happen any day
With the withdrawal and renewal of VanECK’s proposal, it seems that some of the key players are now far more optimistic that a bitcoin ETF could be approved sometime soon. The decision to approve or disapprove falls on the SEC, so let’s take a look at who is making the decisions…

Hester Peirce is by far the biggest bitcoin advocate on the panel. Many prefer to call her by the nickname Crypto Mom. The newest member, Elad Roisman, is also a known crypto advocate.
Last week Robert Jackson also made headlines speaking in favor of cryptos. So the toughest walnut to crack remains Chairman Jay Clayton, who continues to engage with the crypto community, but so far remains steadfast in his view that the market isn’t ready for it just yet. VanECK remains optimistic though.
Digital Assets Director Gabor Gurbacs recently told CNBC’s Ran Neuner that the application process may take up to 240 days but that it could be done in a single day should the SEC decide to approve it.
It would be even more interesting to wait until SEC’s final decision and Stay tuned with Coingape to get updates on Bitcoin ETF and SEC’s final decision.
 
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Source: CoinGape

Bitcoin Fundamentals Getting Stronger, Demystifying Bitcoin Mining Environmental Myths: Expert Opinion

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights

Bitcoin Fundamentals getting stronger
The Hashrate of Bitcoin network reaches a new equilibrium
Robert Sharratt article on Bitcoin Mining has some flaws

Bitcoin mining’s environmental impact- Demystifying the Myths
Well, everyone is aware that the fundamentals of the Bitcoin blockchain are getting strong day by day, there a few new parameters that have surfaced which reiterate the same. The number of transactions being processed in bitcoin has been growing increasingly during the bear market and is now reaching levels that have previously been seen only during the 2017 bull run.
To add to this fact, the hashrate (total computing power of miners) of the Bitcoin network reaching a new equilibrium and evening out over the last few weeks. Another piece of fact that is working in favor of bitcoin comes from the Canaccord Genuity Group states that Bitcoin is becoming more decentralized as it gets older.
While the fundamentals continue to grow, a recent blog by Robert Sharratt has been the point of discussion for many. The blog titled “The report of bitcoin environmental damage is garbage” has put forward plenty of counterarguments against the whole question of bitcoin’s environmental impact. To provide a brief, the article states the following

The author Robert Sharratt is probably one of the most qualified people on the planet to write on this subject as is confirmed by his LinkedIn page.
Most bitcoin mining is done in Sichuan province where they have an overabundance of clean energy that would otherwise go to waste.
If popular claims made against bitcoin are correct, the network will consume the entire global energy output (all electricity on earth) by Q2 2023.

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Source: CoinGape

Expert Opinion: Jack Dorsey’s Loyalty to Bitcoin While BTC Continues To Grow Stronger Fundamentally

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights:

Jack Dorsey holds only Bitcoin
The number of Transactions for Bitcoin are Increasing
P2P Bitcoin Trading Volumes on the rise in emerging markets

Jack Dorsey and His Love for Bitcoin
While playing a new bitcoin game called “pass the torch,” the torch was passed on to Jack Dorsey and his love and loyalty for the Top coin again came into limelight. Everyone who has looked at cryptos is well aware that Jack is a bitcoin advocate and over the weekend in an interview with Joe Rogan, Jack again stated that bitcoin will probably become the native currency of the Internet.
Engaging the community on Twitter yesterday he stated several times that the only coin he holds is bitcoin. He also said that he views it as a currency rather than an investment and that he wouldn’t consider holding any other coins, not even Ether. Its one of the reasons that The Square Cash App has recently become a major on-ramp for people buying bitcoin. When asked yesterday whether Square would add other cryptos to the Cash App, Jack replied with a simple “Nah”
Bitcoin is getting stronger Fundamentally
Unlike the stock markets which tend to adjust for underlying metrics rather quickly. The price of bitcoin remains characteristically detached from its own fundamentals, instead of remaining subservient to technical analysis. While everyone who looks at charts is aware that Bitcoin once again was coming to the point of a giant descending triangle. The nature of this particular pattern is that the flatline (psychological level) is usually the one that breaks first, as it has done six times over the last year. This could be why we’re seeing some losses this morning.

However, if one looks at the fundamentals of the Bitcoin blockchain, it’s actually quite strong!!  the number of transactions being processed in bitcoin has been growing increasingly during the bear market and is now reaching levels that have previously been seen only during the 2017 bull run.

Also, A quick look at the volumes from the peer to peer bitcoin trading site local bitcoins, which is now back online, shows that usage is rising steadily in emerging market countries such as India, Kenya, Nigeria, and across Latin America. Of course, these metrics are difficult to evaluate over time due to the extreme volatility in bitcoin’s price. As one can see in the global graph often times more BTC will be traded when the cost per coin is lower. However, for those citing reduced volumes across crypto exchanges lately, it looks as if they are missing the big picture.

 
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Source: CoinGape

Facebook Fastracks Blockchain Development With An Acquisition While Investors Bottom Fish Crypto Industry: Expert Opinion

Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights

Facebook acquires Chainspace – an expert in smart contracts platform scalability
Facebook has roughly 40 employees led by top FB exec David Marcus in its blockchain team
Investors make key investments at reasonable valuations in bear markets

Facebook and its blockchain dream
Well, the street is excited with a piece of news that Facebook has progressed ahead with its blockchain dream. According to the recent news flow coming in from the social media giant’s headquarters is that Facebook has acquired Chainspace – a specialized company that excels in smart contract platform scalability. While the tech giant is still to make an official announcement according to sources close to this development say, that the acquisition of Chainspace’s team, a move is known in Silicon Valley as an acqui-hire, is the clearest sign yet of Facebook’s ambition to be a big player in the nascent blockchain industry.
As of now, Facebook has roughly 40 employees led by top FB exec David Marcus in their new blockchain team. What they’re working on or how it will be rolled out is still very much a mystery as the behemoth company is holding their cards very close to their chests. What might not be obvious is the unbelievable deal they’re getting due to the bear market. The company was trying to raise less than $4 million when Zuck’s offer came along. No doubt that during the bull market of 2017 valuation could have been ten times higher as we’ll explore below.
Bottom fishing in cryptoshpere – where investors acquire stake at a reasonable valuation
As most of the world’s greatest investors will tell that the best time to make a great investment is when prices are low, Facebook has just proved it right with the acquisition of Chainspace at dirt-cheap valuations. And it’s not just Facebook, Kraken too acquired Crypto Facilities which despite being a nine-figure deal, is perceived to be a discounted buy. Another perfect example of discounted prices is Circle. The crypto startup has raised millions with the help of Goldman Sachs and others…
Usually, the bear market is a time when smaller businesses get tested but it’s also a time for consolidation for the larger players. Over the past couple of months, several projects have closed and downsize already with the latest among them being Canadian exchange Coinsquare. While everyone has their view about the bottom, it’s just a sign of the times. In any traditional market, this is the sort of place where value investors step in. Certainly, this emerging technology is risky. However, for larger players looking to make long term investments in this space at advantageous valuations, now could be an excellent time.
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Source: CoinGape

Bitcoin [BTC] Enters The Longest Bear Market With A Hope of Revival: Expert Opinion

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights:

Bitcoin enters the longest bear market
From December 2017 the market has slipped nearly 82%
The current bear market has lasted for 413 days without indication of a turnaround

Bitcoin enters Chinese New Year expecting a turnaround
While Bitcoin languishes around USD 3500 trying to keep up the hopes of investors, the overall bear market in cryptos has now officially logged its longest bear market in the asset’s relatively short history.  From December 2017 until today bitcoin has dropped a total of 82% from peak to trough, making a total stretch of 413 days without any indication of a turnaround.
One needs to note that even though this is the longest stretch, it’s not the deepest. The five-month bear of 2011 saw a drawdown of 93% and the crypto winter from the end of 2013 to the beginning of 2015 saw a total drawdown of 86%.
Chart Source: etoro
While that’s in numbers, technically, his past year and a half one can notice a very specific formation that has repeated itself incessantly… the descending triangle. With $5,500 (blue line in the chart below) as the base, the market has seen six different wedges, four of which have broken to the downside. Now that the blue line is broken, the market has moved the support level to $3,000 and one can see that coming to the seventh wedge. While the indications on a chart are pessimistic, some analysts have indicated that the markets may have further downside while others are pointing out that there may have entered the apathy phase for bitcoin trading, an annoying yet necessary stage in the investment cycle.
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Source: CoinGape

Expert Opinion: Bitcoin ETF Clock Resets Itself as VanECK resubmits Application to SEC

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights:

VanECK resubmits bitcoin ETF application
With this resubmission VanECK buys time
The decision’s new date stands somewhere in August and September

VanECK resets the countdown for Bitcoin ETF approval via a proven masterstroke
Well, the much-anticipated Bitcoin ETF, whose application was pulled out by VanECK last week, has been resubmitted bringing in fresh due dates for the application. The master move from VanECK is clearly a great way buy time and make things work in one’s favor. The first application had a hard deadline for the SEC to approve or reject it by February 27th. By starting the application process over, they’re basically buying themselves a lot more time.
If the previous process was any indication, the world could be looking at a final answer from the SEC by August or September. In the meantime, that should give plenty of time for the market to mature in the way that the SEC is looking for. By then we will likely have a running service by Bakkt, bitcoin futures on the Nasdaq, and a trading and storage platform from Fidelity.
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Source: CoinGape

JP Morgan, Fidelity Keep Their Crypto Interest Active While The World Needs to Understand Crypto Nascency Roadblocks – Expert Opinion

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights

JP Morgan attempts to value Bitcoin Mining Cost in its latest report
Fidelity plans a March Launch of Crypto Custody services
Understanding Crypto Nascency Roadblocks

Wall Street Institutions continue their interests in crypto
Well with Bitcoin ETF now out of the way for a while, direct investment plans of traditional financial institutions may also have gone cold. But the interest in cryptos continues to fuel the fire. JP Morgan recently released the report titled “Blockchain and Cryptocurrencies: Adoption, Performance and Challenges” which speaks about roadblocks to adoption, the recent bear market, scalability issues, and other standard stuff. But the report takes an interesting twist when it tries to calculating bitcoin’s mining costs.
According to JPM’s assessment, it broke down miners into categories and claimed that it is the low-cost miners who set the price floor. Even though there were critics of this method, the JPM assessment looked fine to an extent.

What happens is, mining costs are notoriously difficult to estimate but assuming for argument’s sake these numbers are correct, bitcoin is now below the average mining cost ($4,060). And what the report does indicate is that if the high-cost miners choose to exit, then the low-cost miners will then be competing against each other, which could drive the prices down as far as $1,260. Again, an accurate statement.
The only thing here that JP Morgan fails to take into account is a simple matter of behavioral economics. By their own admission, and included in the graph above, a large number of miners have been operating at a loss for a while now, and hash rates continue to increase even in countries where electricity is more expensive.  Therefore, there isn’t much reason to assume that if someone in the Czech Republic, for example, has been mining bitcoin for $8,000 until now, he’ll suddenly abandon his rig if the price drops another $1,000 or $2,000. Certainly, some will be forced out as nobody can operate at a loss indefinitely, but whoever can afford to will likely hang on for as long as they can.
Fidelity moves ahead with its crypto plans
While JP Morgan continues its homework on bitcoin, Fidelity Investments is targeting a March launch date for its Bitcoin custody service, according to three people with knowledge of the matter, as the mutual-fund giant moves forward with a plan that could help ease fears of trading cryptocurrencies.  The company, in October 2018, had announced that it would offer a range of crypto products designed for large investors like hedge funds.
Understanding crypto roadblocks
If one goes through the JP Morgan report, crypto still has a lot of roadblocks to achieve widespread adoption. One cannot fail to agree with their assessment that world is very much in the early days of the blockchain revolution and it could certainly take time before the full benefits are realized.
However, as investors, one still needs to take into account that all crypto assets are risky. The simple fact is that we’re dealing with very experimental technology and so things can certainly go wrong along the way. This is why it always pays to diversify your investment portfolio and trade in other assets as well.
One example of the way the tech could go wrong was experienced yesterday in the NEO network when NEO’s network got unintentionally forked. Now, without getting too technical it seems that some people running the NEO blockchain weren’t updating properly, possibly due to poor connections, and the entire network was out of sync. In any case, it seems that everything has been resolved by now and the impact on the price was minimal.
While NEO was one example of Nascenscy, Ethereum might run into a bit of difficulty due to the delay of the Constantinople upgrade. It seems that the “difficulty bomb” that the upgrade was supposed to offset has now kicked in and the block reward has dropped by 25%. On the one hand, less supply coming online could increase the price of Ethereum but it seems the hash rate is dropping at the moment. Not to worry though, Vitalik is currently sitting with some of the top devs at Stanford University campus working on the issue. Session recordings are here.

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Source: CoinGape

Expert Opinion: Tether [USDT] becomes 4th largest cryptocurrency by Marketcap As Traders Take Foot Off The Gas

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights:

USDT moves to the fourth position in the market cap ranking
The rise of USDT suggests the traders are fearful
Short positions on Bitcoin fall drastically

Tether makes a surprise jump
While the crypto markets remained dull and bearish, the traders in crypto space were shocked to see the stablecoin Tether (USDT) take 4th place in the market cap rankings. While it has been reiterated that the market cap metric is not a great way to measure the value of crypto assets but seeing USDT rising up the ranks so quickly can be a very telling sign of investor sentiment. Generally speaking, if traders are fearful of volatility in the crypto market and want to reduce exposure, the default option at many exchanges is to hold the money in USDT.

 
Short positions on Bitcoin fall drastically
While this may sound bearish. To be clear, this is neither a bullish nor a bearish signal, it just means that traders are taking their foot off the gas for a bit. In the graph, below that comes from tradingview.com, one can see that short positions on bitcoin (blue line) have come down pretty drastically over the last two months whereas long positions (red line) haven’t increased by much. Indeed, Tether’s market cap has grown during this time frame but if we zoom out even just a little bit we can see that USDT market cap has been higher than it is now. A neutral position could very well be a sign of good things to come as it might just signal that the bears are finally letting up.

 

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Source: CoinGape

VanECK Withdraws Bitcoin ETF While Bitcoin TPS Still Sees A Rise – Expert Opinion

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights

VanECK withdraws the Bitcoin ETF application
Bitcoin TPS still growing
Crypto Adoption rising in Iran

VanECK Bitcoin ETF becomes the latest casualty of US Government Shutdown
 We’ll all the excitement around Bitcoin ETF may have ended now as the most hoped ETF application of VanECK seems to have fallen calamity of the US Government Shutdown. The deadline for a decision was February 27th but seems VanECK has now withdrawn its application. While it’s disappointing, but it’s not something that was not anticipated. As it has been noted several times, this proposal had a very slim chance of success. SEC Chairman Jay Clayton had already stressed that the Bitcoin market is not yet mature enough for an ETF. It’s not just the news or Clayton, even the recent price action seems to confirm this, as there have a number of price spikes due to the low liquidity lately.
The government shutdown seems to have put further strain on this process. If there was a hope of convincing the SEC before the deadline, it has now disappeared. So, rather than letting the application be rejected, VanECK has simply withdrawn it – thus denying the SEC any opportunity to deny it. Clearly a power move by VanECK.
The price of Bitcoin did decline slightly at the time of the news but is still holding well at the $3,500 support level. The markets relaxed response to this news is a clear sign that investors are starting to understand. The crypto market is not dependent on any government or financial institution and no single product or service has the power to make or break bitcoin.
BTC fundamentals going strong
It’s been past few months that Bitcoin fundamentals are getting strong. Yet again, The transaction rate on the bitcoin blockchain is now at its highest level in a year, which is kind of cool. This is a good indicator that shows usage of bitcoin is growing despite the bear market.
While the TPS shows a global picture, specifically crypto adoption is seen rising in Iran as the Government is mismanaging the economy. Unfortunately, however, there isn’t any real way to confirm this, other than the testimonials available in some press. Some more coverage in a day or two should give the audience more clarity.
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Source: CoinGape

Expert Opinion: Community Debates Whether Crypto Price Manipulation Is Real?

“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
Key Highlights

Does crypto price manipulation exist in reality?
New Research Paper from BIS explores the economics of intervention into Bitcoin’s Blockchain
Author of the paper also discusses how a 51% attack might play out

Does price manipulation actually exist in cryptos?
A recently conducted poll on Twitter, which was done in a rather unscientific manner, showed that nearly half of the 41-comment received believed that it was price manipulation that bought a recent steep decline in the market.

Settle this for us Twitter. Sunday's sudden drop of 5.85% in an hour was due to…
— Mati Greenspan (@MatiGreenspan) January 21, 2019

While the poll was being conducted, the markets dipped again and there was an opportunity to analyze the conditions at play as bitcoin experienced a 3% flash crash that lasted about 15 minutes from drop to full recovery.

What’s interesting about this graph is the role of the key level of $3,500. As there has been a discussion on the sentiment, Bitcoin has been trading in a tight range between $3,500 and about $4,100.
So, when the downside broke, it very likely took out a lot of stop losses, causing a chain reaction of stops and liquidations. What’s exciting about yesterday’s move is that the direction was quickly reversed and, in the aftermath, there was even a mini-rally noticed. This is a very positive sign and could very well indicate that we’re at or nearing bitcoin’s price floor.
In short, the word “manipulation” implies intention and there has been no evidence of that. What we see here are the clear effects of a low liquid market. The same conditions that have caused bouts of extreme volatility throughout bitcoin’s short history. So, sorry to disappoint the crowd but my summation remains that this is just normal bitcoin volatility.
BIS research discusses the economics of Intervention in Bitcoins Blockchain
The action of intervention is often having negative connotations, but sometimes intervention can save lives, as any surgeon will probably tell you. The Bank of International Settlements (BIS) has put out a new research paper that explores the economics of intervention into bitcoin’s blockchain. To be clear, the BIS is the bank of central banks and is the world’s oldest global financial institution, so it is in effect the exact middle-man that bitcoin was designed to disrupt. It currently stands to be the biggest loser should cryptocurrencies gain mass adoption. Or, the biggest beneficiary, should they decide to embrace the new technology. So it’s good to see they’re taking this seriously.
The author, Raphael Auer, has previously advocated the healthy regulation of the crypto assets space and is extremely knowledgeable about blockchain. In fact, the new paper describes quite perfectly how a 51% attack might play out and even gives a meticulous formula detailing in the attacker’s incentives.

However, the paper makes no attempt to discern the actual numbers to be plugged into their formula. So, even though the BIS seems to be indicating that bitcoin is susceptible to such an attack, current estimates of the costs would be around $7.25 billion for the hardware and another $5 million for the electricity.
Auer’s analysis also concludes that the economics of bitcoin will be very different once bitcoin reaches its maximum supply of 21 million coins, which is expected to happen in the year 2140 and that if there are no significant changes until then the network will be unsustainable.
Though my assumption is that the network certainly has the capacity to make the necessary adjustments over the next 120 years until that happens.
At first glance, it might seem as if the BIS is taking a critical stance against Bitcoin by pointing out its vulnerabilities. However, in my view, such research only serves to strengthen the network. Only by fully exploring bitcoin’s weaknesses can we act to strengthen them.
 
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Source: CoinGape