G7 Confirms Libra Like Cryptocurrency Needs a Legal Basis

Social media giant Facebook has certainly rattled the regulatory feathers of global regulators with its grand plans for cryptocurrency world domination. Politicians and citizens alike are right to question Libra and those that will be pulling the strings behind it. The G7 group of economic powerhouses agrees that such stablecoins should not be allowed to launch until the profound international risks they pose are addressed.
Legal Basis For Stable Cryptocurrency
Earlier this week the G7, which comprises the US, UK, Canada, Germany, Japan, France and Italy, released a preliminary report addressing a long list of concerns it has with stablecoins like Libra.
The report concluded that Facebook could not provide evidence that it satisfied a long list of concerns including consumer and investor protection, data privacy and protection, financial integrity including AML/KYC compliance, fair competition and anti-trust, tax evasion, and cyber security.
The crypto task force, chaired by European Central Bank board member Benoit Coeure, stated;
“The G7 believes that no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks”
Today, Reuters reported that the G7 has confirmed its stance on stablecoins, specifically Libra, adding that;
“Private sector entities that design stablecoin arrangements are expected to address a wide array of legal, regulatory and oversight challenges and risks,”
Libra Association Responds
In a response the consortium, which now numbers 21 members after a week of high profile defections, responded with their commitments.
“The Libra Association is committed to building a system that replicates or exceeds current standards for consumer protection, financial stability, and global cooperation to prevent money laundering and illicit finance while preserving national sovereignty over monetary policy,”
This has been the expected response and the Association has yet to prove any of this which is why the cryptocurrency launch date is likely to be extended several times.
Facebook may tout a system that ‘improves access and lowers the costs of financial services for billions of people’ but it already profits from their personal data, so the concerns over financial disruptions are valid.
The Libra response basically took each of the G7’s challenges and said ‘yes, we will comply’ without showing a shred of evidence as to how that will be achieved. It added;
“Libra, unlike some payment networks, will operate with transparency and in partnership with regulators.”
But the bottom line is that Facebook simply cannot be trusted with finances on a global scale. The list of scandals involving the social media monopoly lengthens every month and most involve privacy violations, data and security breaches, information manipulation, and even election meddling.
Just the week US congressman Warren Davidson hinted at the ‘shitcoin’ like qualities of Libra suggesting it uses a decentralized and truly transparent solution such as Bitcoin instead.
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Bitcoin Store Of Value Sentiment Stronger Than Ever as Economic Collapse Looms

The state of the world economy just over a decade ago was not a pretty picture. A solution was needed and one was offered in the form of a decentralized peer-to-peer digital monetary system. Bitcoin was born and a decade on it appears to be déjà vu for the global economy.
This Crash Worse Than 2008
The previous economic crisis was caused largely by banks engaging in hedge fund trading with derivatives then demanding more mortgages to support the profitable sale of these derivatives. Essentially the bankers brought down the economies of the world and everyone suffered.
Banks have proved that they cannot be trusted and Bitcoin was created out of that notion. As Nakamoto himself wrote;
“The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”
US debt has escalating to unprecedented levels and all signs are pointing to another imminent economic collapse. With a national debt approaching $23 trillion, the situation has clearly spiraled out of control and America, being one of the world’s largest economies, will drag the rest of the planet into the financial quagmire again.
Goldbug Peter Schiff has predicted this collapse time and time again and asserts that it will be far worse than the last.
“The economic collapse that is going to follow the bursting of this bubble is going to be far more dramatic than ’08.”
Naturally Schiff wants to plug his gold funds which do provide a relatively stable store of wealth in times of economic despair. Gold prices rose sharply from 2009 to 2011 as the world picked up the pieces from the last crisis and they are likely to do so again.
Bitcoin is Digital Gold
Bitcoin, which has often been referred to as ‘digital gold’ is also seen as a store of value and that narrative is now stronger than ever. The majority of millennials will remember the last crash and will be wary of banks and their meddling. Bitcoin is likely to be the choice for them above gold simply because they have been raised with technology and the internet, unlike the generations before them.
The sentiment has been echoed by Weiss Ratings in a recent tweet which sums up the current situation.
“Bitcoin was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $BTC is evolving into a store of value like gold.”

#Bitcoin was an overreaction to the financial crisis and the monetary system that allowed it to occur. Today, instead of functioning as an efficient peer-to-peer system for transferring cash, $BTC is evolving into a store of value like gold.#BTC #crypto #cryptocurrency
— Weiss Crypto Ratings (@WeissCrypto) October 17, 2019

The clock is ticking and with the US, and now China, starting to inject cash back into their financial systems in order to keep them afloat, the writing may already be on the wall for the economies of the world.
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US Treasury Secretary on Libra Exodus: Crypto Partners Not Up To Par

The golfing analogy was not lost as Facebook gets buried deeper in the digital rough while its crypto project partners run for the hills. In an interview with CNBC yesterday, US treasury secretary Steven Mnuchin said they may have feared heavy regulatory pressure.
Threats For Crypto Consortium
Speaking on CNBC’s ‘Squawk Box’, Mnuchin stated that he had met with Libra representatives and partners on multiple occasions. He stated in no uncertain terms that if those associated with the Facebook crypto project do not meet the government’s stringent anti-money laundering standards they would be subject to enforcement action, adding;
“And I think they realized that they’re not ready, they’re not up to par. And I assume some of the partners got concerned and dropped out until they meet those standards.”
At the weekend the G7 group released a report outlining the inherent dangers in allowing such a project to go ahead.
The exodus accelerated after US senators sent veiled threats in a letter to CEOs of companies that are members of the Libra Association. One such letter shared online was addressed to Stripe CEO Patrick Collison, originating from senators Brian Schatz and Sherrod Brown. It stated that Facebook is trying to act as a financial authority without regulated status, adding;
“Facebook is attempting to accomplish that objective by shifting the risks and the need to design new compliance regimes onto regulated members of the Libra Association like your companies.”
With the Treasury Secretary backing up these threats, the likelihood of Zuckerberg and Marcus having any partners left at the end of the year is slim at best.
To date PayPal, Visa, Mastercard, Stripe, eBay, Kayak owner Booking Holdings, and Mercado Pago have announced their departure from the project. Five of those seven are global payments companies which serves a huge blow to Libra. Only one payment processor remains involved with the association, a Dutch firm focused on mobile and web payments in the European market called PayU.
Geneva Meeting
Yesterday the Libra Association, or what remains of it, held its first official board meeting in Geneva, Switzerland. The social media giant officially moved forward with its crypto plans despite intense criticism from US regulators and politicians and the recent exodus.
According to reports, most of the meeting was involved in establishing the basic governance of the new association which is now seven members lighter. Five board members were named including Xapo CEO Wences Casares, Andreessen Horowitz’s blockchain lead Katie Haun, Libra head David Marcus, Kiva Microfunds’ Matthew Davie and PayU’s Patrick Ellis.
Unperturbed, the consortium also announced that 1,500 organizations have expressed interest in joining the crypto project and 180 of them meet eligibility requirements to become members. The goal is to achieve 100 members before the 2020 launch date, which is now likely to be set back due regulatory issues.
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Altcoins Energized as XRP, XLM and ZRX Leave Bitcoin Behind

Another day of inactivity and consolidation for Bitcoin has kept the king of crypto just above support. Its lethargy has resulted in another dip in market share as a few of the altcoins start to make bigger moves. Ripple’s XRP, Stellar Lumens and 0x are among them.
Bitcoin Dominance Dip Good For XRP
A couple of very brief touches of $8,400 was all that BTC could muster over the past 24 hours. Clearly there are too many bears lurking here and resistance is proving too strong for another day. On the low side Bitcoin dropped to $8,240 but recovered back to site smack in the middle of its ranging channel at just over $8,300 again.
The continued tedium on BTC markets has been music to the ears of altcoin traders, especially those into XRP. The Ripple token has made over 11% since the weekend, adding half of that today as it approaches strong resistance.
According to Tradingview.com XRP is one of the day’s top performing digital assets as it hit $0.298 a couple of hours ago. The move has invigorated the ‘XRP Army’ on CT who has turned bullish on their baby which has posted a 20% gain in October.
XRP price October 2019 – Tradingview.com
What should be noted however is that even after this increase, the Ripple token is still down 15% since the beginning of the year so has a long way to go.
The upcoming Ripple Swell event in Singapore early this month appears to be driving momentum as it has done in previous years. The gathering of Ripple executives and XRP advocates is the most bullish event of the year for the company and its token deserves some long awaited love.
There is a massive wall of resistance at $0.30 which is currently being tested, but a break of this could see a bigger pump for XRP.
Stellar, 0x Lifting Off
As usual when XRP moves, its little sister follows. XLM has made 8% over the past 24 hours as it climbs to $0.065, however it too is way down from previous highs and has a long way to go. Stellar momentum is likely to mimic Ripple’s as the two tokens often move in tandem.
There is little fundamentally driving XLM at the moment so the Swell event could be beneficial to it too. Stellar is currently ranked tenth in terms of market cap which has reached $1.3 billion today.
Today’s other big mover is ZRX which has made a larger 10% jump to reach $0.337. Daily volume for the DEX protocol token has doubled to $64 million as it creeps back up the market cap charts outperforming those around it. Plenty of updates were announced at Devcon 5 as development on the protocol continues.
Bitcoin’s slowdown is finally starting to benefit some of the altcoins with XRP, XLM and ZRX leading the way today.
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G7: Crypto Stablecoins Like Libra Threaten Financial Stability, But Not Bitcoin

It comes as no surprise that Facebook is still on the receiving end of regulatory pressure from global economies. The social media giant has done the crypto industry few favors as all eyes are now on stablecoins and the outlook for them is predictably pessimistic. Bitcoin, however, has not been deemed a threat just yet.
Big List Of Crypto Concerns
The G7 group taskforce that issued the draft report yesterday includes senior officials from central banks, the International Monetary Fund (IMF) and the Financial Stability Board (FSB), which coordinates rules for the G20 countries.
It focuses on Libra as the big bad wolf and outlines major threats that it considers applicable to all stablecoins. In a section titled ‘ensuring resilience in the face of new risks’, the report also acknowledged that the global economy is facing uncertainty with declining interest rates, escalating public debt, and weakening financial markets.
To address these ‘new risks’ it added that the FSB is developing a new surveillance framework, to be put in place by next year. The number of challenges it considered a threat to financial stability included consumer and investor protection, data privacy and protection, financial integrity including AML/KYC compliance, and fair competition and anti-trust policies.
Basically, all of the things that Facebook cannot provide.
The list went on citing mitigation of tax evasion, market integrity, sound and efficient governance, cyber security and operational risks, and an appropriate legal basis as issues with Libra-like crypto stablecoins.
The regulatory body will submit an official issues note on global stablecoins to this week’s G20 Finance Ministers and Central Bank Governors meeting.
No Threat From Bitcoin
Notably, the report went on to add that it did not consider crypto assets such as Bitcoin a threat.
“G20 leaders noted that crypto-assets do not pose a threat to global financial stability at this point, but that they remain vigilant to existing and emerging risks.”
Before adding ‘global stablecoins’ could pose a host of challenges to the regulatory community, clearly referring to Libra.
It acknowledged the benefits of stablecoins for cross border transactions but the likelihood is that most central banks will want to use, control, and profit from their own one and not something dreamt up by a social media monopoly.
According to the BBC, a separate report suggests that Libra may not get regulatory approval even if it can address their long list of concerns.
“Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement,”
As Libra Association members jump ship in droves, Facebook’s grand aspirations of global financial domination appear to be going up in smoke. The consortium will hold its first board meeting in Geneva today, but many of the seats around that table will be empty.
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Bitcoin Readies For Next Big Move After Slow Weekend

The weekend has been largely lethargic for Bitcoin and crypto markets with little movement out of their trading ranges. A couple of tests of resistance occurred but BTC was beaten back by the bears and quickly retreated to its support level. A breakout will come soon and traders are eyeing entry and exit zones.
Bitcoin Fails to Break Resistance
Since its very brief pump to $8,700 on Friday, BTC fell back to support at just above $8,300 and remained there for the duration of the weekend. Very little has happened to prices until late Sunday trading in the US session when they were pushed above $8,400 for a couple of hours.
This too did not last with Bitcoin returning sharply to support again signaling a lack of buyers to take the asset higher. At the time of writing, Bitcoin had fallen below weekend support levels and was trading at around $8,280, just below its weekend support zone according to Tradingview.com.
BTC price 1 hour chart – Tradingview.com
A death cross appears inbound on the daily chart and this could be as soon as next weekend if the consolidation continues. The last time the 50 day moving average dropped below the 200 day MA was in March 2018 and a year-long bear market followed.
Long term trader and analyst Nick Cote has eyed what he described as an ‘easy setup’ forming for Bitcoin.
“Upside= $9,000 – $9,300 (Throwback level)
Downside= $7,450 – $7,700 (Weekly support block)
A good 9% move on each side of the break.”

Easy set up forming on #bitcoin
Daily inside bar pattern.
Upside= $9,000 – $9,300 (Throwback level)Downside= $7,450 – $7,700 (Weekly support block)
A good 9% move on each side of the break.
The previous two inside bar setups I shared yielded 25% and 5% spot price movements. pic.twitter.com/mcGrCfAVEA
— Nick Cote (@mBTCPizpie) October 14, 2019

Analysts were in two minds over the weekend as to BTC’s next move which it has yet to make by Monday morning. Traders appear to be waiting for confirmation before entering or exiting their positions. A break of support is likely to lead to another plunge to the high $7,000s and a break of that could get very messy very quickly.
What About The Altcoins
The picture is largely green as we start a new week in crypto land though gains are skinny for most altcoins.
Ethereum has been weakening over the past couple of days following its big move to $195 on Friday. Until it can break the psychological $200 barrier independently of its big brother ETH will remain bearish. At the time of writing it was trading flat on the day at just above $180.
Ripple’s XRP has made more progress today adding a further 4% to reach $0.285. However, it too is bearish at anything below its psychological $0.30 barrier.
Other altcoins getting a marginal lift this Monday morning are Binance Coin topping $18 with 3.5%, and Stellar adding 2.5%. Tron has made 5% in a rare climb and Cardano is 3% higher today and the 0x protocol is one of the day’s top gainers adding 10%.
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Bitcoin Poised For Another Breakout as It Clings to Support, Which Way Next?

Bitcoin has spent the past two weeks consolidating just below the 200 day moving average. So far it has managed to cling to support above $8,000 but a big move could be coming soon so which way will it go next?
Bitcoin Trading Range Tightens
Another day has seen Bitcoin bounce between $8,300 and $8,400 as the range bound channel begins to tighten up. According to Tradingview.com BTC is currently within this range at $8,340 since the big dump on Friday.
BTC price 1 hour chart – Tradingview.com
RSI is right on 50 on the four hour chart but below it on the daily. That death cross of the 50 day MA and 200 day MA is looming ever closer and could occur in about a week, especially if the breakout is to the low side.
Trader ‘CryptoHamster’ has observed the sideways channel on the 50% Fibonacci retracement level which is also a signal of a bigger move approaching.
“$BTC will either go above the previous trading zone and 23.6% Fibo, where a lot of shorts stops are concentrated, or BTC will go below the previous trading zone and 61.8% Fibo, where a lot of the longs stops are concentrated.”

Simple:$BTC will either go above the previous trading zone and 23.6% Fibo, where a lot of shorts stops are concentrated, or BTC will go below the previous trading zone and 61.8% Fibo, where a lot of the longs stops are concentrated.Let's follow the trend.$BTCUSD #bitcoin pic.twitter.com/GB7f9kxHPv
— CryptoHamster (@CryptoHamsterIO) October 13, 2019

Stating that Bitcoin will ‘either go up or down’ is pretty obvious but where will it stop is more interesting. On the high side the 23.6% Fibo shows resistance at just below $8,600 while a drop lower to the 61.8% line takes it back to $8,200.
Below that is further support at $8k then $7.8k. At the moment BTC has corrected 40 percent from the 2019 high and is holding ground. Market dominance has failed to regain 70 percent and is currently just below it according to Tradingview.com.
Elsewhere on Crypto Markets
The majority of the altcoins are showing red this Sunday though losses are minor as they also follow big brother’s consolidation. Ethereum has weakened again in a fall back towards $180. ETH is unlikely to decouple from BTC until major network upgrades in Istanbul and early Serenity phases are rolled out in a few months’ time.
Ripple’s XRP has remained flat for the past few days but it has managed to hold on to previous gains keeping the token around $0.275. Bitcoin Cash has weakened again allowing Tether to retake fourth spot with a larger market cap and Litecoin has shown very little movement from its $55 price level.
Today’s top movers on altcoin markets are Binance Coin adding 4 percent to close in on $18, and BSV getting a 3.5 percent lift as it approaches $90. There are no coins in the top one hundred gaining double digits as Sunday trading remains lethargic.
Total crypto market capitalization hasn’t moved much this weekend and remains around $225 billion. Daily volume, according to coinmarketcap.com, has declined below $50 billion but markets are marginally higher than this time last weekend.
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With Only 12,000 Bitcoin Millionaires, What is The Potential to Be One?

Bitcoin is many things to many different people. For some it is a store of wealth, for others it is a hedge against local economic oppression, but for many it is a vehicle to make money. With only 12,000 Bitcoin millionaires in the world it still shows great potential and opportunities to join that elite crowd are still abound.
Early Days For Bitcoin
Considering that BTC is only ten years old it has come a long way. Outperforming pretty much every other traditional asset class by a significant margin, Bitcoin has the potential to become a global currency.
At the moment regulatory pressure, extreme volatility, and lack of adoption is holding it back but over time these factors are likely to stabilize as the world accepts this new technology. Analyst Willy Woo has been looking at the charts again and found one of Bitcoin millionaires over time. He posed the scenario of that number vastly increasing should BTC become the new currency.
“Here’s the chart for the number of Bitcoin Millionaires over time, around 12,000 right now. There’s 36m Millionaires on this planet, it’s still early days if you believe BTC will be the new currency.”

Here's the chart for the number of Bitcoin Millionaires over time*, around 12,000 right now.
There's 36m Millionaires on this planet, it's still early days if you believe BTC will be the new currency.
*gross approximation, uses balance in unique addresses
Data by @coinmetrics pic.twitter.com/MMD3J4BETE
— Willy Woo (@woonomic) October 11, 2019

The chart closely correlates to BTC price over the years which could be a sign that more people are holding the asset now. Recent market chop however indicates that it is the same money entering and leaving the space with no new fiat influx just yet.
This is likely to all change when the next major bull run starts and FOMO kicks in again.
Short Term Price: BTC Holding Support
According to Tradingview.com BTC has held on to support for another day. A fall to the 200 hour moving average dropped price to just over $8,200 a few hours ago but Bitcoin has managed to recover slightly to reclaim $8,350 at the time of writing.
As noted by trader and analyst ‘Crypto Fibonacci’ the Bollinger bands are tightening up again which could lead to another breakout.

$BTC Daily Chart.
Bollinger bands doing their thing and getting tighter by the day.#BTC #bitcoin pic.twitter.com/HRIdGcaw2o
— CryptoFibonacci (@CryptoFib) October 12, 2019

Josh Rager pointed out that higher lows were starting to creep in also which may lead to an upside breakout.

BTC Hopium
Technically, we're seeing higher-lows here…
But this area certainly has to hold – if not, well… alt-season on hold pic.twitter.com/fAcxdwYWE2
— Josh Rager (@Josh_Rager) October 11, 2019

Bitcoin dominance is still below 70 percent but it has not dropped lower just yet as the consolidation continues.
At the moment you’ll need 120 BTC to be a millionaire so prices will have to move a lot higher before this number decreases and the number of BTC millionaires increases, however the potential is there. When supply and scarcity are also added to the equation the long term outlook for Bitcoin is very bullish, especially as the world appears to be heading for another recession.
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Binance CEO Confirms Chinese Crypto-Fiat On-ramps

Despite a crypto ban in China, citizens are still hungry for digital assets and companies around the world are seeking ways to facilitate trading for the burgeoning population. One of the world’s largest exchanges has just confirmed new fiat on-ramps for two of China’s largest ecommerce and social media payments platforms.
Buy Crypto With WeChat Pay and Alipay on Binance
For the past two years buying Bitcoin in China has been a tricky business. With the Beijing blockade, traders have resorted to OTC platforms and peer to peer trading using chat groups. The regime even went to the extreme of trying to ban these, but that has not quashed the hunger for crypto in China.
The world’s top exchange just confirmed that is now accepting fiat with Alipay and WeChat Pay, two of China’s largest online payments platforms.
“Is #Binance now accepting fiat on-ramp with #Alipay and #Wechat pay? Exciting news… would love for someone to confirm. @cz_binance”

YES https://t.co/dnHKQSLvS4
— CZ Binance (@cz_binance) October 9, 2019

the AliPay and WeChat Pay integration could have a bigger effect on the cryptocurrency sector than Bakkt which had no real impact on crypto markets.
Alipay has a billion users worldwide according to the official international website. It needs little more than that to reiterate how big this could be. WeChat Pay is not far behind with an estimated 900 million users so Binance has just provided a fiat on-ramp for almost a third of the planet.
Since most people in China use at least one of these platforms they will all have full access to cryptocurrencies now. No longer will crypto need to be traded behind clandestine curtains though there has yet to be an official reaction from the government.
Crypto Market Reaction
Today has seen further gains for most altcoins while Bitcoin again has stalled at resistance. A third day of green coated crypto markets is good news for most however BTC dominance has dropped another percentage point.
Yet again, resistance has proved to be too strong for BTC. According to Tradingview.com Bitcoin has been oscillating between $8,100 and $8,200 for the past 24 hours. It is currently at the top of that range but has not been able to push higher.
The death cross on the daily chart is still on target to form if the current down trend cannot be reversed. Crypto twitter appears to be split pretty evenly as both bulls and bears respond to Josh Rager’s little survey. At the time of writing 53 percent of the over 1,500 respondents were bearish.
Bitcoin dominance has dropped back to 68.5 percent according to Tradingview.com.
Altcoins are having another positive day with Ethereum holding above $180 while XRP pushes towards $0.28. Binance Coin spiked 8% on the news and has reached $17.50 at the time of writing. Total crypto market capitalization has added a further $3 billion but today is likely to be a strong one for Binance.
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Altcoins Rally as Bitcoin Dominance Drops Lower, Has Altseason Begun?

In a rare scene today all of the altcoins are in the green and many are outperforming Bitcoin as dominance drops lower. The market share chart for the king of crypto has been showing signs of a pullback which of course is good news for the altcoins.
Bitcoin Reclaims $8k But Dominance Below 69%
Following a Monday dip into the high $7,000 level BTC bounced back yesterday to reclaim $8k and top out just over $8,300. Yet again resistance has proved to be too strong here and Bitcoin fell back below $8,200 where it currently trades within its two week range bound channel.
According to Tradingview.com BTC dominance has now dropped below 69% to a two month low.  It is clear from the following chart that a pullback period has begun and Bitcoin’s market share is likely to shrink further. The next support level in terms of dominance is 66%.
BTC dominance – tradingview.com
The failure of BTC bulls to break resistance has been good news for the altcoins, many of which are rallying well during Asian trading today.
Ethereum is currently out-performing its big brother with a 4% pump over the past 24 hours to top $180. ETH is still pretty weak in the grand scheme of things but recovery has to start somewhere and its market capitalization is almost back to $20 billion.
Chart guru Peter Brandt observed the ETH/BTC pair and how it is about to break out for Ethereum.

Bottoming construction in $ETHBTC $ETH pic.twitter.com/zbi0slEQzR
— Peter Brandt (@PeterLBrandt) October 7, 2019

Ethereum is unlikely to truly rally until it can retake the psychological $200 level without being dragged up by its big brother. The last time Bitcoin had dropped to $8k, in August 2018, ETH was priced at $400 so it still has a long way to go.
Ripple’s XRP has had a second strong day adding a further 3% to reach $0.275 but it too is way down from last year’s prices and has been one of the worst performing altcoins this year.
Bitcoin Cash has retaken fourth spot from Tether with a 3% move to reach $230 again but like those above it, BCH is still pretty weak still.
A 4% move for Litecoin wasn’t enough for it to retake $60 and it has been very lackluster since the halving two months ago which halved its price in addition to the perceived supply.
EOS is the top ten’s top performer with 5% on the day to reach $3.20 but it is still down over 60% from its 2019 high. Binance Coin made a similar 4% move to get to $16 but the exchange based token is also down 60% from this year’s peak.
Total market cap has increased by $8 billion since the weekend and it has been largely due to altcoins having a good start to the week. It could be the beginning of something bigger or just another minor blip in the ebb and flow of crypto markets.
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Bitcoin Solves This: Hong Kong ATMs Out Of Cash And Panic Over Indian Banks

Escalating political tensions in Hong Kong and a potential economic and banking crisis in India has highlighted how fragile cash savings can be. Naturally Bitcoin would be the answer if adoption was greater and volatility was lower but the pluses for decentralized money are growing.
Hong Kong ATMs Empty
As violence continues to grip the island state it is the innocent that usually suffer first. Videos leaked over social media recently show intensifying attacks from both sides as the situation spirals out of control.
Over the weekend it was also widely reported that ATMs across the Hong Kong were running short of cash. Citizens have started to panic and queues at empty ATMs were starting to form. The updates were also posted on local social media channels.

Run on banks: ATMs out of money across Hong Kong. Many queuing up to withdraw. Many have run out of cash. #HongKongProtests #AntiELAB #FreeHongKong
Should we all line up at ATMs as an act of civil disobedience?
Source- LIHKG pic.twitter.com/DtC9c0toUi
— Hong Kong World City (@HKWORLDCITY) October 5, 2019

The fear from many is that the government will freeze their assets as it bows to Beijing. There is also concern over devaluation of the currency as Hong Kong descends into anarchy. Chief Investment Officer Hayman Capital Management, Kyle Bass, added that account seizures could become a reality as the HK legal system crumbles.

Bank runs all over Hong Kong now. ATM machines running out of cash but there is something more important…failed leader carrie lam(b) can now officially confiscate bank accounts and assets without recourse. The HK legal system is essentially gone. #Bankruns #HKexit https://t.co/jz9sPrA30U
— Kyle Bass (@Jkylebass) October 5, 2019

As alternative forms of currency, such as Bitcoin, become popular Hong Kong’s Securities and Futures Commission has accelerated its crypto asset regulation agenda in a recently published document. The report provided detailed guidance to fund managers on all aspects of handling crypto assets in addition to a framework for dealing with ICOs.
As the crisis deepens more people could turn to Bitcoin as cash becomes a scarce commodity and fears of asset seizures escalate.
Indian Banking Crisis
India is also suffering but its woes are primarily economical. According to reports the Reserve Bank of India slashed its year growth forecast by nearly a full percentage point on Friday. Rate cuts have also occurred as the economy slows and concern grows among its billion plus population.
Rumors have been swirling about the general health of the Indian banking sector and the RBI had to turn to social media in an attempt to reassure customers.

There are rumours in some locations about certain banks including cooperative banks, resulting in anxiety among the depositors. RBI would like to assure the general public that Indian banking system is safe and stable and there is no need to panic on the basis of such rumours.
— ReserveBankOfIndia (@RBI) October 1, 2019

It is not a good sign that the central bank needs to reassure depositors that their funds are safe.
The developments were not lost on Morgan Creek Digital co-founder and partner Anthony Pompliano. He has previously extolled the virtues of Bitcoin as a safeguard against such actions and reiterated that stance recently.
“When you’re worried about your assets being seized or becoming inaccessible to you, Bitcoin’s non-seizability becomes very attractive. This aspect of Bitcoin just became important for 1+ billion people in India & Hong Kong.”
Bitcoin’s volatility is clearly off-putting for many, but the notion that a bank can collapse or a regime can seize funds should be equally as frightening to those that trust them with everything they own.
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Bear Market Indicators Returning as Bitcoin Dumps Below $7,800

The weekend brought a little hopium as Bitcoin prices topped $8,200 briefly, however the doom and gloom has returned on Monday morning as BTC has dumped back into the $7k region again. The longer term chart indicators are mounting up and they are all screaming bear market.
Bitcoin Slides Below $7,800
Following a weekend of relative stability above $8k BTC has started to slide again as we start another week in crypto land. According to Tradingview.com the decline to $7,760 a few hours ago marks a 5 percent loss over the past 24 hours.
BTC prices one hour chart – Tradingview.com
Bitcoin has now retouched its five month low and the technical indicators are looking ominous. The weekly candle closed on a red doji as pointed out by Josh Rager, however the indecisive formation is likely to be overruled by the bears this week.

$BTC – That weekly doji candle pic.twitter.com/8GSFtckyei
— Josh Rager (@Josh_Rager) October 6, 2019

The fourth red weekly candle in a row has not happened for two years as volumes continue to decline. Additionally, BTC is now firmly below the 200 day moving average and this does not look good for the immediate future.
Trader ‘Cryptonaire’ pointed out that this is usually a sign of prolonged consolidation or further declines.
“NEVER has $Btc gone above or below the 200 MA and had an immediate pullback. There’s a 20% minimum move before going in opposite direction even if it’s just a wick,”
Fellow trader and analyst ‘Crypto Hamster’ made some similarities between the 2018 final dump into crypto winter.
“It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now,”

It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now (the scale is different, of course).$BCT $BTCUSD #bitcoin pic.twitter.com/HFt0DfydlD
— CryptoHamster (@CryptoHamsterIO) October 6, 2019

While a dump to $3k is still a long way off, $6k is looking closer every day as the bears gather strength. The negative sentiment for Bitcoin has been reflected in its market dominance which has fallen back below 70 percent. As reported by NewsBTC yesterday, this could be good news for the altcoins but at the moment they too are falling back on red Monday.
Altcoins Also in Pain
Ethereum has dumped back below $170 as it blindly follows the declines of its big brother. The ETH and BTC charts have been virtually identical over the past week or so as the world’s decentralized computer fails to decouple from its leader.
Ripple’s XRP is holding above $0.25 but it has shown nothing significantly bullish for most of this year and will take a monumental announcement or altcoin wide recovery to move higher.
Tether has topped BCH to take fourth place in terms of market cap as it trades at a slight premium while altcoins are dumped. At the time of writing only Chainlink is in the green and altseason is still a long way away.
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Coinbase CEO: US Should Reconsider Ridiculous Stance on Libra as Project Partners Jump Ship

Facebook’s ambitious crypto project Libra is running out of steam as it gets hounded by regulators and governments around the world. The social media giant was dealt another blow yesterday when major project partner PayPal announced that it was jumping ship, but the Coinbase boss thinks the US should reconsider its negative stance.
Rats Desert Sinking Crypto Ship
One of Calibra’s founding partners has become the first company to officially quit Facebook’s crypto project. The online payments giant announced yesterday that it would ‘forgo further participation’ in the Libra Association, the 28 member consortium that will control the digital currency.
Facebook sought to form the conglomerate to diffuse accusations that it would grow too powerful if it alone controlled the Libra currency. Following weeks of regulatory pressure, consortium members have been reluctant to further endorse the project according to reports.
PayPal’s departure could be the catalyst for others to follow leaving Zuckerberg to bail out the flailing digital ship on his own. The move is particularly painful due to the ties between the two companies. Libra head David Marcus once managed PayPal so the sting will be harsher. A company spokesperson said;
“PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratise access to financial services for underserved populations,”
Libra is facing protest from Europe as well as the US. As reported by NewsBTC, EU based NGOs have launched a petition against the project over fears of the rising dominance of US tech giants.
Coinbase Boss: Time For The US to Reverse Stance
Coinbase CEO, Brian Armstrong, is of the opinion that the US needs to reverse its harsh stance on crypto to avoid being left behind. He specifically made reference to China’s plans to launch a crypto yuan and said that Libra was just one of many digital currencies.
“Now that China is looking into creating a stablecoin, I wonder if the U.S. will reconsider it’s ridiculous response to Libra.”

Now that China is looking into creating a stablecoin, I wonder if the U.S. will reconsider it's ridiculous response to Libra.
There are many cryptocurrencies, and Libra is just one of them. But the way the U.S. government reacted it's like they almost want to be left behind.
— Brian Armstrong (@brian_armstrong) October 4, 2019

The reaction from US regulators may have been justified when Facebook is concerned, but it appears to have the same abhorrence for any digital asset that is not owned by the central bank.
Armstrong is afraid that the government is prohibiting innovation and putting its own interests first.
“Innovation often looks counter-intuitive and disruptive. Government is prone to being co-opted by special interests/incumbents that will play on fears and try to block innovation here.”
China meanwhile is doing both, fostering the innovation and putting its own interests first by issuing a central bank controlled cryptocurrency.
Facebook only has its own interests (profits) in mind, as does PayPal, so both of those should be heavily regulated. However, the US could prevent itself falling into the digital dark ages by becoming more open to the crypto industry in general.
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Bitcoin Pullback Nothing to Worry About, Bull Market Will Follow

Every time Bitcoin dumps a double digit percentage panic floods the crypto community and the doom merchants start rejoicing. This has happened so many times before and every dump has eventually turned into a sustained rally. Nothing is new this time as previous corrections have shown.
Bitcoin Market in 2013 Compared to Now
Observing previous market movements may help us predict the current one. Naturally things are very different in 2019 than they were in 2013 but the chart patterns show similarities. Back then Bitcoin was largely a plaything for geeks with mining rigs made out of gaming PCs in their garages. Today it supports a multi-billion dollar industry but the volatility remains.
One thing that is guaranteed with Bitcoin is price corrections. When it surges things happen fast but when it corrects the price drops even quicker. At the moment BTC has corrected 42 percent from its high this year. A correction of this magnitude had been predicted by many a couple of months ago and it was largely expected by analysts that prices would drop to $8k.
Trader and analyst Josh Rager has been looking at previous corrections and noted that this one is relatively minor in comparison.
“2013: Bitcoin bull market pulled back 75% over 89 days before a 1600% run-up to new highs later in the year.
2019: Bitcoin has currently retraced 42% over 91 days,”

Bitcoin 2013 market compared to 2019
2013: Bitcoin bull market pulled back 75% over 89 days before a 1600% run-up to new highs later in the year
2019: Bitcoin has currently retraced 42% over 91 days
Price can continue down but expect the bull trend to continue after pullback pic.twitter.com/gCrC65OJ9N
— Josh Rager (@Josh_Rager) September 28, 2019

Compared to a pullback of 75% this current correction is ‘no big deal’ he added. Rager also expects price to fall further and eyed the mid-$6,000 region in a more recent tweet.
“IMO, the lowest $BTC will hit: between $6300 to $6600 where there is major interest. Price currently bounced off monthly support & if this area breaks could head to $6600 – based on higher time frames,”
A drop to $6,500 will mean a correction of around 53 percent which is still less than that of 2013. In 2018 BTC corrected a whopping 84 percent from its all-time high to the low just below $3,200 in December.
So far this year Bitcoin is still up 110 percent and the predicted plunge deeper will still keep it 70 percent higher than January’s prices. Corrections provide buying opportunities and traders and investors around the world know this.
It is very difficult to catch the bottoms to buy and the tops to sell so getting somewhere close should be good enough. It seems that traders are aware of this and are holding off buying in at $8k where many expected as further losses now seem very likely.
Those looking at the big picture would have simply been accumulating this year and will continue to do so during this correction. Granted, there has been the biggest weekly dump since early 2018 and many have gone into manic mode – the fear and greed index is a good indicator of this – but this has all happened before, and will all happen again.
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No US China Trade Deal Says Morgan Creek CEO, Better Buy Bitcoin

With trade talks between the US and China resuming next month all eyes are on the prospect of some kind of a deal. Not all are confident however and one industry executive still favors Bitcoin over any kind of economic recovery based on bilateral cooperation between the two powerhouses.
China Won’t Back Down
Founder and CEO of Morgan Creek Capital Management, Mark Yusko, joined the panel on CNBC’s Fast Money to discuss the likelihood of a trade deal emerging from the upcoming talks in Washington DC next month.

Don't hold your breath in hopes of a trade deal, says Morgan Creek Capital Management's @MarkYusko. More on the risks he's seeing – and why he'd be buying bitcoin – below. pic.twitter.com/XcAeRKs5rB
— CNBC's Fast Money (@CNBCFastMoney) September 26, 2019

He stated that it was highly unlikely that China would back down and that tariffs are essentially a tax on poor people so they too have failed and should never have happened in the first place. He added that the ‘fight’ has now changed from outsourcing to China and ‘made in China’ to ‘made for China’ as it will be the largest consumer market in history.
According to Yusko China is no longer worried about exports, it is all about importing now to satisfy the growing material appetite of its burgeoning middle classes. China is focused on doing deals to grow consumers domestically.
When asked by the anchor about a trigger, Yusko replied that the market is still overvalued and things will get far worse in 2020 when the debt bubble pops. A recession is likely to trigger this as there is no longer the growth that flourished in previous years.
What About Bitcoin
The interesting comments came next when the chief executive was asked about Bitcoin. Naturally the first comment made by the anchor was its price, having dropped below $8,000 during intraday trading.
“Buy it. The daily price of Bitcoin doesn’t matter, its been alive for ten years. In ever year other than 2015 it has made a higher low and market cap has grown every single year.”
He added that every fundamental indicator for Bitcoin including usage, transactions, wallets, hash rate etc. is making new highs. All the indicators of the network and its value are rising but the price of any asset fluctuates.
He went on to compare this with Amazon which has been a public company for twenty years. The average peak to trough on the stock has been -31% and he concluded that only Jeff and his parents have owned it since the IPO.
Even in 2019 and even with a 42 percent correction from its high this year, Bitcoin is still in good shape. Since the beginning of the year when it was priced in the late $3,000 range BTC has made over 100 percent gains.
The naysayers and doom merchants will continue to bash it regardless so Yusko’s reasoned commentary provides a solid counter balance to their FUD.
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