Bitcoin’s Volatility Signals Pressure on Bulls, is $5,000 a Possibility?

Bitcoin’s (BTC) volatility has been at a low through 2019 as the coin recorded the most consecutive days changing 5% or less on December 13, 2019.
Bitcoin’s volatility has been its undoing as the rise and fall in value of the pioneer cryptotoken has seen users set the coin aside, at least as a currency. Billionaire and NBA’s Dallas Mavericks owner, Mark Cuban, is the latest BTC critic to question BTC’s use as a global currency, stating the issue with volatility.
BTC’s volatility squeeze signals major move in price
The unending questions and skepticism regarding BTC’s volatility however seem to be far-fetched as data from Skew Markets shows. Bitcoin is entering a low volatility regime for the first time since 2018 as the coin recorded 131 consecutive days trading within a 5% range.

Bitcoin has entered a low volatility regime since mid 2018
— skew (@skewdotcom) December 13, 2019

Low volatility regimes signal a major move in either side in the coming days as Bitcoin bulls and bears ready their accounts. `The directional bias looks set to end with volatility dropping to multi-week lows and the charts signaling a move higher in the coming days. The long timeframe charts however spell doom for BTC, some analysts call $5,000 USD price range months before the halving.
BTCUSD on the edge as $5,000 reckons
A rectangular pattern is forming on the daily candle charts signaling an upcoming bullish momentum. The price has traded sideways in the past few days with both bears and bulls exhausted, amplified by the dropping trading volumes since late 2018. Following the undecided nature and volatility dropping to levels last seen in October, a day before the infamous Xi bull run, the market prospects look fairer to bulls.
Source: TradingView
BTC/USD bounced off the resistance level at $7,149 USD, trading over $100 USD higher to $7,261 USD as at time of writing. The short soar in price should be a catalyst for bulls to take over the market. A run that could see the price test the $7,900 USD region before a drop towards the lower resistance on the weekly bearish channel.
Source: TradingView
Looking at the weekly charts, the price of BTC/USD signals a drop towards the $5,000 region as chart indicators signal an upcoming bear market. The dropping volumes in a wedge pattern further show low interest in bulls taking over the market.

I think it will pause and bounce at a few different levels before continuing downward, possibly under $5000, before the market turns bullish again. But with BTC, predictions only count until the next big news event changes the rules of the game.
— Polar Nerd (@Polar_Nerd) December 13, 2019

Can bulls prevent the price drip to $5,000 USD?
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Source: CoinGape

Extreme Fear Engulfs the Bitcoin Market, but is a BTC revival on the Cards?

The Fear & Greed Index for Bitcoin shows that traders are keeping their cards close to the chest, worried that the price may sink at the tail end of 2019. The market is dull and inactive and traders are apprehensive, not willing to commit.
Below $9,000 Bitcoin is Bearish: Analyst
Bitcoin Crypto Fear Greed Index
With this level of fragility, a crypto personality and an influential trader, opines that the Bitcoin market is ripe for a short-term price reversal that may lift Bitcoin to $9,000.
“If we see a rally, understand that BTC remains in a BEAR MARKET DOWNTREND. Bear markets have rallies too, and BTC is in a technical bear market right now. Until we see some higher highs and higher lows, the trend is bearish and down, even if we see a rally to 9000.”
Despite the flood of optimism that may accompany the spring back, he is sounding a warning that it would need a lot of effort for Bitcoin bulls to reverse from spot rate and snap back to trend just five months before a market defining trend.
Bitcoin Futures Available at a Premium
The latest analysis of the Bitcoin Futures at BitMEX reveals that traders were buying contracts set for expiry at December and March 2020 respectively at a premium.
This means that, despite the prevailing market sentiment, traders are hopeful of better prices through to Q1 2020.
It must be noted that around this time last year, Bitcoin recovered and more than doubled after an energy-sapping crypto winter that saw many projects fold for lack of funds.
Reading from the Fear & Greed Index
Bitcoin Crypto Fear Greed Index
From the index, evidence shows that traders are gripped by fear. But the situation was far worse on Aug 22, 2019. Then the index’s reading plunged to 5, pointing to extreme fear.
A few days later, BTC prices rallied, soaring to $10,900 before dropping in consequent months to spot levels.
On the flip side, at the height of the H1 2019 super rally, the market was excited and in a FOMO moment, the index’s reading reached 95. At that overextended level, BTC was overpriced and traders greedy for more. A few days later, prices dropped, popping the mini-bubble.
Bull Trigger at $7,800 Resistance zone
Bitcoin BTC Daily Chart for Dec 13
If conclusions are drawn out, Bitcoin prices may find support at spot levels. A rebound above $7,000 mark could spur further participation and lift prices to $7,900 as bulls reverse steep losses of late November 2019. In that likelihood, BTC may soar to Oct 2019 highs of $9,500.
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Source: CoinGape

Buy Gold atop Bitcoin [BTC]: Leading Crypto and Precious Metals Firm Launches DGLD, a leading crypto wallet, analysis firm and parent company of Blockchain Pit exchange, announces the launch of $DGLD. The digital representation of real gold will leverage its security from the Bitcoin [BTC] blockchain.
The new digital asset has been launched in partnership with Coinshares, chief digital assets manager in the UK and MKS (Switzerland) SA, a trader of precious metals. The Swiss-based firm provides financial services including vaults based security for various precious metals.
The new financial asset, DGLD will allocate an equal amount of gold in MKS’s vault. The data for the digital asset will be stored on a blockchain itself. It is using Bitcoin’s protocol as a security layer for verifying the ‘proof of ownership’ for its sidechain.
Recently, Microsoft also developed a digital identity solution using the same feature.
Charles Mcgarraugh, the head of Marketing for, formally with Goldman Sachs, tweeted,
Nice example of the “self-sovereign, safe, attestation utility for everybody” use case for Bitcoin.
Moreover, on the economics of investment in gold, Mcgarraugh cites the importance of hard money in the economy. He notes that gold a ‘0%-real yield perpetuity’ bond that protects investors from inflation and economic distress. He added,
In other words, #gold is the real-world long term capital storage asset. Pricing on #gold, therefore, should be a function of the opportunity cost of holding your capital in storage rather than deploying it in the economy.
Even Gabor Gurbacs, the CEO of VanEck had noted earlier that Bitcoin and Gold need not be rivals. Moreover, since both their prices rise based on similar market conditions, one should be appreciating the other.
It is aimed at cutting off friction and increasing the feasibility of gold as a medium of exchange. DGLD has resumed trading on the exchange BlockhainPIT.
The new asset type will increase the fractional use cases of gold for an exchange due to easy transmission. Bitcoin’s decentralized public blockchain will verify the proof of ownership like similar to how it verifies the Bitcoin addresses of sender and receivers of BTC. Mcgarraugh notes,
All powered by, yup, #BITCOIN! #BTC #GOLD
Which one will you prefer: DGLD or BTC? Please share your views with us. 
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Source: CoinGape

2020 Predictions: Bitcoin (BTC) will Soar to $27,000, Tezos and ETC to the Top 10, Craig Wright to end up in Jail

Su Zhu, the CEO of Three Arrows Capital, the Singapore-based fund manager that focuses on superior risk-adjusted returns, may be one of the few last standing Bitcoin bulls. At a time when the market is gripped by fear and uncertainty, Zhu is optimistic that Bitcoin will drop to lows of $6,500 in 2020 before snapping back to $27,000, blasting past 2017 highs of $20,000.
Bitcoin will recover in 2020
An encouraging assessment, Zhu was responding to a survey conducted by a Twitter user, Whale Panda.

BTC low: 6.5kBTC high: 27.7kTop10: BTC ETH XRP DOT XTZ LTC BCH ATOM EOS ETCBiggest surprise: BTC 1m implied volatility reaches 200 at some pt in the year
— Su Zhu (@zhusu) December 12, 2019

Whale Panda is also expectant and in his analysis, not only expects Bitcoin to print lows of $7,600 but the coin will snap back from the current drab performance and soar to $21,000. A conservative mark since most leading analysts and influencers like Tom Lee and John McAfee expect BTC trade around the $250,000 and even $1 million mark by 2021.
At the same time, Whale Panda predicts that Tezos will blow past Bitcoin Cash and flip XRP to third most valuable coin by market cap.

BTC Low: $7600BTC High: $21000Top 5 by marketcap EOY 2020: BTC, ETH, Tezos, XRP, LTCBiggest winner: BTC (marketcap) Tezos (%-wise)Biggest loser: BCH (halving gonna hurt it even more)Biggest surprise: CSW ends up in jail.
— WhalePanda (@WhalePanda) December 12, 2019

In his assessment, LTC will be more valuable than Bitcoin Cash, Binance Coin (BNB) and Cardano. Controversially, he also says Craig Wright, nChain’s Chief Scientist and the chief proponent of Bitcoin SV, will end up in jail in 2020.
Tezos and ETC to the Top 10
There seems to be a consensus that Tezos will be a coin to watch out going forward. The coin, XTZ, is a top performer in the top 20, adding an impressive 316% year-to-date. Trading at $1.70, XTZ has a market cap of $1.1 billion from a circulating supply of 660 million XTZ.
Tezos XTZ Market Performance
Zhu’s view is that while XTZ impressive performance will spill over to 2020, the coin will not make a cut into the top 5. Instead, like ETC which is currently planning for Agharta, a hard fork that further improves it interoperability with Ethereum, will have a slot in the top 10. Currently, ETC is changing hands at $3.82 and perched on 23rd.
Ethereum Classic ETC Market Performance
BTC HODLers will be punished
Nonetheless, Zhu’s projection contradicts that of a leading crypto analyst. According to Magic’s analysis, BTC bears are firm and in control. HODLers, he adds, will be punished for their blind faith going forward. Ranting, he said:
“HODLers are constantly spewing delusional reasoning and blatant objection to reality, just because they’re emotionally and ideologically invested. Blind faith is like a virus that has brainwashed the entire crypto community, and it will be punished until that blind faith is gone.”
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Source: CoinGape

This Popular Hardware Wallet Can Be Breached Physically in 15 Minutes – Kraken

Hardware wallets have a reputation of being one of the safest wallets for storing cryptocurrency. Though they are more expensive option, many cryptocurrency investors prefer them over soft wallets and paper wallets. However, Kraken Security Labs has found a serious flaw with Keepkey Hardware wallets, which makes them susceptible to getting breached easily. 
This Glitching Device Can Help Break Into Keepkey
Per a blog published by Kraken Security Labs, there is a way by which seeds can be extracted from a Keepkey hardware wallet. It only takes a hacker about 15 minutes with the wallet to extract the seeds.
Source: Kraken Blog
The breach takes place with a voltage glitching device, which, according to Kraken Security Labs, can be developed for $75. Though the encrypted seeds in the wallet are protected by a 1-9 digit pin, they are not immune to brute force, and using the voltage glitching device, they can be accessed easily. According to the blog, the microcontroller has inherent flaws which the attack exploits, and there is no other way to fix it except for a hardware redesign.
The blog recommends that the users should not allow physical access to the wallet, and warns that if users lose their Keepkey then their cryptocurrency is at a risk of being stolen with this attack. It also recommends users to enable their BIP39 Passphrase with the KeepKey Client.
Keepkey’s Response to the Findings
Keepkey has responded to the Kraken blog, saying that they are already aware of the issue, and at the time the issue had been identified, they had advised their users to use the BIP39 passphrase. In the blog, they also stated that the claim that the wallet can be hacked in 15 minutes is misleading –
“It’s misleading to claim the device can be hacked in 15 minutes. Executing this attack requires significant preparation and expertise as well as specialized equipment, and assumes physical possession of the device.”
Nevertheless, they have emphasised on securing cryptocurrency against attacks using BIP39 passphrase, and not allowing others physical access to the Keepkey hardware wallet.
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Source: CoinGape

Bitcoin [BTC] Price Pattern Projects a Bullish Reversal after Fall below $7000

Bitcoin [BTC] bulls seem to have failed again at a break-out. The price continues to range between $7580 and $7160.
The price of Bitcoin [BTC] at 3: 45 hours UTC on 11th December 2019 is $7200. It is trading 2.55% lower on a daily scale.

Bitcoin Widget by Coinlib

On a daily scale, the falling wedge pattern is shaping to guide the traders. The immediate support from the wedge is around $6200-$6500.
BTC/USD 1-Day chart on Bitstamp (TradingView)
Bitcoin derivatives traders, CryptoFib tweeted,
Not much to report here other than we are still in a long term falling wedge and currently holding the 61.8 Fib. Squeeze indicator is looking eerily familiar to mid Oct. So, that would mean a lower low coming followed by quick reversal.
Moreover, the falling wedge is also a bullish pattern. While a break-out attempt has been avoided, for now, bulls might still look for another chance.
Another expert trader, Zoran Kole, is, however, expecting the buyers to step in.
Invalidation is likely below the HL. Would like to see buyers stepping in today; otherwise will look to TP and flip short. Ideally in the 73xx-74xx area. #crypto
BTC/USD Price Analysis (Source: TradingView)
Nevertheless, his overall view was bearish after the target around $7400 with targets at $6900. Moreover, a break below the falling wedge could be detrimental to the price.
Futures Market 24-hour Update
Skew reported a 14.5% drop in futures and perpetual swaps trading volume yesterday compared to the previous day. As the price dipped, the
While the traders are apprehensive of a drop, the long interest in Bitcoin is still intact. The funding rate on BitMEX has been primarily positive. Although, the premium rate is negative.
Bitcoin [BTC] Hourly Funding and Premium Rate on BitMEX (TradingView)On Okex, as well, the traders are looking for a bounce above the range support at $7150. The total long/short ratio flipped towards the bulls as the price dips to $7200. The top 100 traders on Okex were long also primarily long in the last few trading sessions.
Which support level do you think is most likely to hold – $7k or $$6-6.5? Please share your views with us. 
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Source: CoinGape

Bitcoin [BTC] Derivatives based on Hashrate and Difficulty creates a Buzz in Mining Space

A financial protection instrument is buzzing around the Bitcoin mining sphere – Financial Service firms are offering derivates based on Bitcoin’s total mining hash rates and difficulty.
Hedging one’s loss by buying mining derivatives would reduce the risk in the business as the industry looks for future growth. Hence, attracting more institutional players and investors to it.
Reportedly, seven large scale cryptocurrency miners have told the media that they are planning to or already engaging with hedge funds in trading these derivatives.
According to the report, a couple of crypto hedge funds are already offering or in the process of offering such derivatives; London-based DAG Global, BitOoda and crypto trader GSR to name a few.
Robert Andersen, who leads DAG’s digital asset sales told the media,
“As the hashrate changes, you can go from being profitable to losing money very quickly. The contract insures you against that. It’s like insurance, and for that you pay a premium.”
Bitcoin Mining Hash-rate Weekly Average (Source)
“We’re building products around hash rate and difficulty,” said co-founder GSR’s Richard Rosenblum.
The total hash rate and difficulty are metrics that evolve from the network strength and Bitcoin’s design. The protocol is designed in such a manner that as the hash rate increases/decreases, the network automatically resets its difficulty levels to slow/increase production.
The hash rate and difficulty have been on an upward trajectory this year with the increase in price, and the introduction of new-age miners. These miners are significantly cost-efficient and powerful compared to their successors.
Bitcoin Mining Total Difficulty (Source)
Nevertheless, things can change post halving when the rewards for mining will be reduced by half. It is likely the difficulty rate might increase a lot making it difficult to make a profit. In such an environment, the derivatives will hedge against the loss of the decrease in production. The miners will accordingly buy/sell futures and options according to their capital project and budget.
Sam Doctor, the company’s chief strategist at BitOoda said,
“There are more players on the sidelines watching how these trades perform before they take the step of trading themselves.”
Do you think that these derivates would reduce or increase the risk for Bitcoin investors? Please share your views with us. 
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Source: CoinGape

Bitcoin (BTC) Price Bound by a Symmetrical Triangle, Breakout Can be in any Direction: Analyst

Bitcoin (BTC) prices are consolidating inside a symmetrical triangle. With uncertainty, a popular cryptocurrency trader and analyst is calling for caution and patience. Based purely on technical candlestick arrangement and patterns, the analyst asserts that depending on the breakout, accompanying trade volumes would determine the velocity and confidence of the newly defined trend direction.
A Recovering Bitcoin Could Jolt Altcoins Higher

BTC is in a symmetrical triangle right now, so traders should watch the direction of the breakout, and look for high volume for added confidence on that breakout direction.
— MAGIC (@MagicPoopCannon) December 9, 2019

After peaking in late June 2019, Bitcoin has been stuck in a firm down trend. This is despite positive developments around adoption levels, increased depth, and approval of several complex derivative products.
Bitcoin is the most liquid and widely traded digital asset. Its tone often determines the direction of the altcoin market since the two are directly correlated, acting as a base for altcoins as shown by coin pairings on different cryptocurrency exchanges.
Traders are confident of a revival. The optimism stems mostly from past candlestick arrangement around this decisive month. In two consecutive years, BTC prices have not only recovered-like at the depth of last year’s crypto winter, or recorded an all-time high like in 2017 when prices soared to $20,000 before falling after the CFTC together with the SEC reportedly popped the crypto bubble by approving two Bitcoin Futures products.
Bitcoin (BTC) Price Action Generate Mixed Signals
From price action, Bitcoin looks likely to move higher. If BTC bulls have the upper hand and close above the minor resistance line, strongly closing above Nov 29 highs of $7,900, prices could rally to $8,000 and later $8,500 depending on the underlying demand and participation levels.
Bitcoin (BTC) Price Chart
On the flip side, any steep drawn down below $7,000 or Dec 5 lows could see a significant break below the minor support line towards $6,500, further spelling fear to an already fragile market. For now, confidence stems from the close above the 20-day MA, a feat, as it is happening for the first time after a month of strong bear pressure.
However, this optimism could be misplaced because bulls are yet to reverse losses of the high-volume long upper wicked candlestick of Dec 5. From an effort versus effort point of view, sellers have an advantage. It is for this reason that bulls must accumulate and break above $7,900 for an uptrend to be clearly defined, quashing determined sellers.
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Source: CoinGape

Bitcoin [BTC] and XRP Account for 85% of Exchange Holdings in Japan: Report

Nic Carter, a Partner Castle Island Ventures and co-founder of, brought into light a report of cryptocurrency holdings of Japanese Exchanges.
The report presents the monthly holdings data on Japanese crypto exchanges since December 2018. The number of reported users vs. active users has a discrepancy of about 1.1 million. He tweeted,
update: apparently theres 3.1m accounts but only 1.96m of them are ‘active accounts’ = i.e. active in the last 30d or have a balance
Hence, one can estimate from the survey that there are roughly about 2 million Japanese users on crypto exchanges (only about 1.5% of the total population).
It includes only six cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, and Mona.
Nic Carter’s Assessment of SRO Report on Japanese Exchanges (Source: Twitter)
The Japanese Exchanges hold around $1.2 billion worth assets in Bitcoin [BTC]. BTC accounts for about 55% of the entire holdings.
About one more billion dollars are held in altcoins. XRP lead the investment with about 68% dominance among altcoins and 30% in total. Nic Carter, tweets,
“Japanese traders love them some XRP” But he also added, “Finna (gonna) learn Japanese so I can dunk on the Japanese XRP army”
Cryptocurrency Exchange Holdings Monthly Report (Source)
The monthly data of cryptocurrencies also reveal that the Japanese traders were sellers until July from the beginning of the year. The amount of Bitcoin and BCH holdings decreased during Q1 and Q2. Nevertheless, it picked up its pace in July.
A considerable increase in Litecoin trading is witnessed during the Litecoin halving. Moreover, Ethereum, XRP, and Mona have been a continuous rise.
The preliminary report suggests and there is a long way to go for Japan until mass crypto adoption.
However, interestingly enough the defamed Japanese Exchange Mt. Gox lost about 650,000, from 850,000 Bitcoins after it’s hack in 2014. It was the largest crypto exchange of the time. It was a huge wake-up call for adopting personal custody in the country and elsewhere. The OTC (Over-the-Counter) market data is not included in the report as well. Hence, the actual number of users might be greater than the 1.5% of the population estimated on the cryptocurrency exchanges.
Nevertheless, it still considerably low for mass adoption.
Do you think that this will eliminate the Japanese rhetoric of mass cryptocurrency adoption? Please share your views with us. 
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Source: CoinGape

Bitcoin (BTC) Prices are Cyclic, Traders Missing out on Millions

Bitcoin could be the most valuable coin, it is also synonymous with price volatility and unparalleled levels of unpredictability. However, it is emerging that Bitcoin is, after all, a cyclic asset, just like any other tradable instrument and its price movements can be predicted using ordinary tools like Moving Averages and Fibonacci retracement technical indicators.
Bitcoin Prices are Cyclic
According to a crypto analyst and Bitcoin trader, a lot of traders could be missing millions as a cost of basing their trading decisions on noise. In his assessment, traders are missing out on patterns that Bitcoin has been printing in the last four years.
Taking to Twitter, the defiantly confident trader said:
“The precision of Bitcoin is a beautiful thing. Do people really still think this is risky? BTC does the same exact thing every 4 year cycle while everyone misses millions because they listen to fake noise. Only the strong & smart survive here.”
But traders are not be blamed. Within the BTC trading cycles, it is not rare for prices to rally one minute and then tank the next, wiping gains and even edging lower much to the disappointment of traders. A case of fake breakout and bull traps are reasons one too many for traders for all calibers to play their cards close to their chest.
Traders are Cautious
Such a case was observed recently. Within minutes, Bitcoin prices rallied, adding $500 within an hour, only for prices to tumble in subsequent hours, trapping optimists and traders who were angling for a killing following a convincing technical pattern marked by a surge in trading volumes and a bullish candlestick with minimum to no resistance to the upsides as observed in lower time frames.
Bitcoin has been on a firm down trend in recent weeks. Following steep losses recorded in late November, when prices slumped and retested a 6-month low, it is only natural for traders and investors to be cautious. Tone Vays, in a recent podcast, discussed the likelihood of Bitcoin prices sliding below 2018 lows to $2,800.
While he could be right, fundamental factors seem to support Bitcoin in the short-to-medium term. Other traders are also optimistic, expecting a rebound in coming weeks.

I find it hilarious that all these “top” Bitcoin twitter people have capitulated & turned bearish at what is now one of the top 3 greatest buying opportunities in investment history. Their little signal blinks quick & they just throw in the towel? All noise.
What a time. $BTC
— Riggs (@RiggsBTC) December 2, 2019

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Source: CoinGape

Recent Data About Bitcoin Activity Spells Worrisome Signs For Bitcoin

As per a feature by LongHash, Bitcoin’s daily active addresses growth has slowed down drastically, implying that less number of Bitcoin users are now engaging in Bitcoin transactions.
Overall Trend Upwards But Slow Growth
In the data shared by LongHash, it is visible that the growth of Bitcoin’s daily active addresses has been positive overall from 2012 to 2018 as the trendline slopes upwards continuously.
Source: Longhash
However, a closer look at the data after 2018 reveals that the growth in Bitcoin’s daily active addresses has been much lesser. In fact, the slope has hardly moved upwards since the number of active addresses have remained almost the same.
Source: Longhash
The article posits that the decline in the growth of active addresses may be due to the decline in Bitcoin price. Bitcoin price plunged sharply in 2018 following when the ICO bubble burst at the beginning of 2018. There is a strong Pearson correlation correlation of 0.76 between Bitcoin price movement and active addresses count. The reason for the same could be attributed to the shift in users’ behaviour when the price us changing. When the price is suppressed, people might be simply HODLing their coins in the anticipation of an increase in price. This correlation suggests that the number of active addresses increases when Bitcoin price is rising.
No of Confirmed Transactions Has Also Declined
The number of confirmed Bitcoin transactions, which had hit an all-time of nearly 500K on 14th December 2017, has also declined since the ICO boom of 2017. The number of confirmed daily transactions saw a sharp plunge in 2018, but they began rising after the first quarter of 2018. After reaching the year-to-date high of 450K+ daily transactions on 2nd May 2019, the count of transactions started to fall again.
This is another indicator of the fact that activity on the Bitcoin network has declined. In fact, the slopes of Bitcoin daily addresses tracker and estimated transaction value tracker from the last two years look quite similar.
What Does This Mean?
The LongHash article suggest’s that this decline in Bitcoin’s active addresses could mean two different things depending on how you perceive Bitcoin. If Bitcoin is looked at as a form of payment, then the decline is worrisome as it means that people are not using it for payments.
However, if Bitcoin is considered a store of value, then the fall in activity on the Bitcoin network is as worrisome as it could simply mean that people are HODLing the coin and waiting for its value to go up.
The post Recent Data About Bitcoin Activity Spells Worrisome Signs For Bitcoin appeared first on Coingape.
Source: CoinGape

Mysterious Bitcoin Transactions Worth Billions Linked to Bittrex Address Uncovered

For the past 48 hours, rather suspicious activity has been happening on an address associated with Bittrex exchange’s main cold wallet storage whereby a range of large Bitcoin (BTC) transactions have been conducted in what analyst and The Block writer, Larry Cermak, termed as peeling.
“The Art of Peeling”
Peeling is a tactic in the Bitcoin field whereby by large holders of the cryptocurrency sends out a small transaction to one address and follows up with a large transaction to another account. The process is then repeated consecutively for about 100 times in order to mask the transactions from the large output account.

Everyone is freaking out that billions of dollars in BTC is being moved but in reality, it's the same address constantly moving the same stash. The 55,337 BTC (~$410.6M) is now parked in this address:
— Larry Cermak (@lawmaster) December 6, 2019

Peeling was, still is, a common tactic that allows (mostly bad) agents of BTC to mask transactions in order to increase privacy and security of the funds. To completely obscure BTC transactions, these agents use a mixer, which mixes the BTC together with other BTC tokens before releasing the coins.

It's a technique that's used to obscure BTC and therefore increase privacy. It's often used for money laundering. The peeled outputs are then mixed (CoinJoin for example) with 'clean' outputs, consolidated and the whole process is repeated.
— Larry Cermak (@lawmaster) December 6, 2019

This is what has been happening to the one address allegedly belonging to Bittrex exchange. Around 15 BTC ($111,000 USD) was first sent out before huge transactions of over 55,000 BTC ($410 million USD) followed through raising questions in the community. If the wallet belongs to Bittrex, why should the exchange be carrying out peeling and mixing on users funds?
Or is this yet another on-chain volume metrics manipulation by one of the largest exchanges?
All Eyes on Bittrex
An address registered as the cold wallet storage for Bittrex exchange users has seen a record of outflows since reaching a 120k peak (approximately $1.6 billion) in June this year. Since the peak, the account sent out over 5K BTC through to the end of October, to stand at 115.8 K BTC as of October 28.

Since closing out October, the account has sent out 49,180 BTC, with only about 66,000 BTC currently in the wallet as per Bitcoin info charts. The massive outflow in BTC is a normal occurrence across exchanges as they shuffle their wallets regularly, but with the latest transactions peeled and mixed, questions are raised as to why Bittrex would do this given the BTC they hold is supposedly clean.
Is This Occurrence a Normal One?
Despite the fuss, Udi Werthimer, a cryptocurrency analyst says the current occurrence on Bittrex is a normal one given exchanges do mix their coins. He said,
“Could be any number of reasons really, we’re trying to arbitrarily attach meaning to something that might be entirely meaningless. This ordeal of people getting excited when seeing coins move is going to change within a couple of years or so, just need to bankrupt the plebs first.”
Despite a number of exchanges using similar methods, the amounts attributed to the Bittrex account are huge and it may be a market manipulation tactic. Bittrex is yet to respond to the issue.
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Source: CoinGape

Millennials Prefer Grayscale (GBTC) Shares to Alibaba, Netflix and Microsoft

Grayscale Bitcoin Trust (GBTC) ranks fourth highest in percentage of assets stored in equities across the millennial generation according to a research by Charles Schwab. This surpasses traditional heavyweights in the stock world including Disney, Berkshire Hathaway, Alibaba and Netflix and Microsoft across the generation.
GBTC ranks in the top 10 stocks held by millennials
According to a report by Charles Schwab, a bank and stock brokerage firm, Grayscale Bitcoin Trust (GBTC) ranked amongst the top ten equity holdings as a percentage of assets held in equities across the millennial generation. Holding out 1.83% of the total assets in equities, GBTC ranked higher than traditional well-performing stocks such as Berkshire Hathaway (1.73%), Walt Disney Co. (1.68%), Netflix (1.58%), Microsoft Corp. (1.53%) and Alibaba Group Holdings (1.39%).
Grayscale’s campaign to onboard new customers using their stock that tracks Bitcoin price (but “with less fees and expenses”) has been mainly targeted at the younger generation. The “Drop Gold” campaign for digital gold has been a key advertisement for Grayscale in their rise to the top.
Grayscale Bitcoin Trust on the Rise Despite 60% Drop in BTC
GBTC beating the top stocks on Wall Street is by no means a small feat, more so given that the price of BTC has fallen over 60% since hitting all-time highs in 2017.

That's what makes it all the more fascinating.
— Wall St. Dropout (@WallSt_Dropout) December 5, 2019

Notwithstanding, GBTC holdings have steadily grown through 2019, currently standing at $1.5 billion, signaling an increase in demand for the pioneer cryptocurrency. The total cryptocurrency holdings stand at $2.2 billion according to the Q3 report released in October.
The surging interest in GBTC shares during a bearish run in BTC/USD price signals a bullish stance for cryptocurrencies and BTC, which trades at $7,434 USD, as at time of writing.
Cryptocurrencies, a Darling Asset to Millennials
In September, Coingape reported on the increasing number of millennials taking up cryptocurrency as an investment option. A research by U.K based firm, Michelmores, revealed over 20% of U.K millennials own a small amount of cryptocurrency as an investment asset. Furthermore, in a survey of 500 wealthy millennials, over 43% owned over £25,000 in crypto.
In November, an American study made a similar case in BTC’s popularity across millennials as 43% of the generation aged 22 years to 37 years trust in cryptocurrency exchanges. The boost in millennial participation signals a possible boom in investment in the crypto industry in the near future if the interest from millennials increases.
The post Millennials Prefer Grayscale (GBTC) Shares to Alibaba, Netflix and Microsoft appeared first on Coingape.
Source: CoinGape

Bitcoin Futures: Binance and BitMEX Volume Doubles in Last 24 hrs

Binance Futures USD daily traded volumes spiked to over $2.1 billion USD.
OKEx leads the field with over $4 billion USD, Binance holds 18% dominance.
What caused the spike in Bitcoin Futures volume? Bullish signs on Bitcoin?

According to data on Coingecko, Binance Futures witnessed an obscure surge in the daily traded volumes, growing by 125% in the past 24 hours. Investors flocked on Bitcoin futures over the past day following the wide price difference in intraday highs at $7,800 USD and lows of $7,000 USD.
Binance registered over $2.1 billion USD worth of Bitcoin futures as at December 05 10.30 UTC, representing explosive growth in the past 24 hours from $931 million worth of Bitcoin futures traded. Binance trades on Bitcoin futures peaked at 6.00 UTC Dec 5 reaching $2.17 billion USD and have since slightly dropped to $2.163 billion USD.
Source: CoinGecko
In the same period, the price of BTC has seen a dramatic rise to $7,800 as the market experienced one of the strongest short squeezes in Bitcoin’s recent past, before crashing back towards the $7,400 USD.
A growing market on Bitcoin futures, bullish signs?
The spike in Binance futures was not unique to Binance alone as BitMEX also experienced a sharp soar in traded volumes of its XBT contracts. Starting the day off at $1.7 billion USD worth of XBT contracts traded, volumes soared to over $3.5 billion, representing a 105% spike in the past 24 hours. The volumes on BitMEX XBT futures remained relatively the same in the past week, experiencing a slight $0.1 billion USD increase.
OKEx, the China-based crypto exchange, experienced a similar surge in Bitcoin futures traded the last 24 hours, witnessing a rise to $4.3 billion USD from $2.4 billion, 24 hours prior.
What caused the spike in Bitcoin Futures volume?
One event that seems to have spiked investors’ interest in Bitcoin Futures across the industry is the wild price movement on Dec. 3. The spike to $7,800 USD, a $500 increase in less than 10 minutes, saw over $60 million XBT shorts liquidated on BitMEX. In the successive four hours, a reversal towards the $7,300 USD region played out taking out long investors.
BTC investors bumped their contracts over the next 24 hours as bulls broke the sideways movement in price on Tuesday. The surge in Bitcoin futures traded signals a possible bullish situation for the BTC/USD pair as investor interest grows.
The post Bitcoin Futures: Binance and BitMEX Volume Doubles in Last 24 hrs appeared first on Coingape.
Source: CoinGape

What Pumped Bitcoin (BTC)? Prices up $500 in 1 hour

From price action, Bitcoin traders couldn’t wish for better. After two weeks of suffering and “pain,” the last hour’s welcomed blissful upswing may well be the beginning of the new rally through to Q1 and 2 2020. BTC prices are bottoming up much to the excitement of traders and HODLers, adding $500 in one short hour.
Bitcoin Supportive Fundamentals
Bitcoin BTC Price Chart Courtesy of TradingView
That BTC prices were suppressed is an understatement. A single glance at price action over the last couple of months indicates that sellers had a tight grip, leading prices and consequently destroying portfolios as the market bled.
For perspective, BTC price, before today’s unexpected push, was down by double digits and retesting a 6-months low, as previously reported by CoinGape. The downtrend persisted despite an array of fundamental and technical activities, chief amongst them being the upcoming halving scheduled for early May 2020 that is not only expected to cause a supply shock but its scarcity lead to a higher re-pricing.
This was further supplemented by reports that Bitcoin Futures traders were expecting prices to recover as relayed by high premiums of two of BitMEX’s popular derivative products. It was further revealed that premiums Bitcoin Futures product with expiry at December 2019 and March 2020 were up by approximately 30%, hinting of investor confidence amid a suppressed market.
If this–like Litecoin’s pre-halving price action gives insight, odds are BTC will likely edge higher ahead of an eventful Q2 2020. That’s not forgetting political events and risk-averseness expected ahead of the hotly contested US election of November 2020.
December Marks Climactic Price Action-2018 and 2019?
Given, today could mark yet another milestone, highlighting the importance of December. Around this time in late 2018, prices began consolidating before erupting, ending the crypto winter.
The crypto winter literally froze projects and as prices fell to new levels, reversing the stellar gains made in late 2017 and early 2018, BTC steadied in December, setting the foundation for recovery through to Q2 2019. Within that span, BTC prices rose from lows of $3,200, peaking at $13,800 in late June 2019.
Today’s bullish candlestick, given the significance of the $7,000 mark and most importantly the reversal of Nov 22-23 losses, could trigger bulls with the bar acting as an anchor from where prices would lift off towards $13,800 sparking participation and renewing demand going forward.
At this pace, it appears that Bitcoin will quickly snap back to June 2019 bull trend to the relieve of traders and HODLers.
The post What Pumped Bitcoin (BTC)? Prices up $500 in 1 hour appeared first on Coingape.
Source: CoinGape