Showing posts with label all-time-high. Show all posts
Showing posts with label all-time-high. Show all posts

December 22, 2017

The Moment of Truth for Bitcoin and the Cryptocurrency Market

December 22, 2017 (seekingalpha.com)

Summary
  • The chorus of voices labeling Bitcoin a huge speculative bubble is growing louder.

  • 2017 was a pivotal year for the future of cryptocurrencies, but 2018 is likely to be more insightful regarding their ultimate fate.

  • Bitcoin's meteoric rise has ushered in a new era and represents the birth of a new asset class. How digital currencies mature remains an open question.

One of the most notable developments in financial markets during 2017 was the phenomenal rally in cryptocurrencies and their ascent into a new, unique asset class. Throughout the year the mainstream view remained dismissive regarding the prospects of Bitcoin and its crypto-rivals. Yet, it is becoming increasingly clear that this phenomenon has deeper roots and, notwithstanding the vertiginous volatility, it is unlikely to fade away.


Very few could have foreseen the almost surreal pace of appreciation that took place in the past twelve months. In fact, the surging momentum of the Bitcoin rally was unlike anything we have seen in the past. This lack of historical precedent makes it exceptionally interesting, as well as challenging to investigate what triggered this phenomenon and which drivers continue to fuel it.

Admittedly, the substantial correction we saw the past week in cryptocurrency price movements renewed an element of uncertainty about the longer-term direction and, essentially, the fate of Bitcoin.


As a result, the chorus of voices predicting an imminent collapse in the crypto-market grew louder, to some extent silencing the optimists who expect further acceleration amid this meteoric rally. In light of the unprecedented nature of this phenomenon, widely divergent views about what lies ahead are to be expected. Nonetheless, the view that the digital currencies’ massive surge this year is nothing but a huge speculative price bubble, while logical, is inherently flawed.

A more sober examination of what we are actually witnessing is the volatile phase that typically precedes broader acceptance of a newly introduced asset class. If indeed Bitcoin becomes broadly accepted as an alternative global currency, its market capitalization is bound to grow further over the longer term. Until then and until the coexisting -- at the time of this writing -- irrational exuberance and the fatalistic predictions of Bitcoin’s premature demise subside, extraordinary volatility spikes will dominate price action in the cryptocurrency market.

Let us not forget the key developments that transpired in 2017, such as the introduction of Bitcoin futures by CME Group and Cboe Global Markets, which point to a wider recognition of the role that cryptocurrencies have the potential to play in financial markets. Meanwhile, emerging economies as well as a host of technologically advanced countries, including Japan and South Korea, are increasingly adopting a more open stance with regard to Bitcoin transactions. This is, in large part, why 2017 will go down in history as a pivotal year for digital currencies. At the same time, blockchain technology continues to evolve, and it is reasonable to expect that future iterations will address existing security vulnerabilities and facilitate a swifter adoption process, providing a more complete, credible and accessible alternative payment method.

The relentless rise of Bitcoin has also been underpinned by the high degree of difficulty that funds faced in shorting the digital currency. This is gradually changing with the inception of Bitcoin futures, but up until recently it served as a deterrent for speculators to aggressively initiate short positions. It is also especially challenging to identify reliable hedges with sufficient correlation to Bitcoin price movements. As a result, the cryptocurrency market has been relatively sheltered from external forces that tend to cause ripple effects in financial markets. This fostered conditions favorable for “long-only” speculative strategies, which, combined with the current low-volatility environment that encourages increased leverage and momentum trading, served as an excellent propellant for Bitcoin to skyrocket the way it did. In the short term, this tailwind is about to gradually run its course, and that will likely translate into a trend reversal, potentially quite sharp.

The moment of truth for Bitcoin and the cryptocurrency market will arrive after the critical correction that will inevitably ensue. At that point, it will be easier to assess whether digital currencies possess the necessary resilience to survive a concerted onslaught of external market pressures. The reaction of short-term momentum traders -- who ostensibly dominate the digital currency market-- in the face of a technical reversal remains a crucial unknown factor.

It is important not to lose sight of the fact that cryptocurrencies are built on a technological foundation that grants them a unique and lasting advantage over traditional currencies. This is why the probability of an eventual widespread cryptocurrency adoption as an integral part of the financial system is significantly higher than currently anticipated. It is, however, far too early to predict which cryptocurrencies will actually survive the ongoing tectonic shifts that are likely to redefine the future monetary landscape. In that regard, 2018 will be quite interesting, eventful and, hopefully, insightful.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

December 14, 2017

What is Ripple and why is it beating both Bitcoin and Litecoin?

By Chris Morris - December 14, 2017 (www.bitcointalkradio.com)


Forget Bitcoin. So long Litecoin. There’s a new cryptocurrency on the rise.

Ripple, which was designed for banks and global money transfers, has seen the value of its XRP digital currency skyrocket in the past three days. On Dec. 10, the company had a market capitalization of just over $9 billion. As of Wednesday morning, that market cap had more than doubled to $18.1 billion.

Prices for an individual Ripple XRP are considerably more affordable than its alternatives, making it even more attractive to cryptocurrency speculators. As of late Wednesday morning, a single XRP cost just 47 cents, a 66% jump from yesterday’s close, according to CoinMarketCap.

This surge has pushed Litecoin down to the fifth most valuable cryptocurrency. Both Ripple and Litecoin are still far below Bitcoin and Ethereum, however.

What is Ripple?


While it wasn’t released until 2012, Ripple is actually older than Bitcoin. The original version of the company was created in 2004, according to Bitcoin Magazine. It never really went anywhere, though, until it put a professional management team in place, which included E-Loan co-founder Chris Larsen and Jed McCaleb, founder of MtGox.

Ripple’s cryptocurrency has been adopted by banks and other financial institutions. Those companies believe Ripple’s system offers both better prices and is more secure than other digital currencies, including Bitcoin. It allows users to send, receive, and hold any currency in a decentralized way via the Ripple network. The company is cash-flow positive and holds a vast store of XRP, which it periodically releases into the market.

But the real appeal of Ripple’s XRP for banks is its liquidity.

“The liquidity needs of banks today is managed with literally ten trillion of float that sits in these nostro and vostro accounts. We believe very strong this is an inefficient model. You can use digital assets to fund liquidity, and Ripple is uniquely positioned to capitalize on that. Bitcoin takes four hours to settle a transaction. XRP takes 3.6 seconds,” Ripple CEO Brad Garlinghouse told Fortune earlier this year.

Why is Ripple surging?


Ripple’s rise seems to be a (pardon the pun) ripple effect from the surge of interest in Bitcoin. Investors who believe cryptocurrency may be reaching a peak are looking for others that could provide a greater return in the long term. The company has hit some notable milestones in recent months, though.

As of October, Ripple had licensed its blockchain technology to over 100 banks. Last month, American Express came on board. And Michael Arrington’s $100 million cryptocurrency hedge fund will be valued in Ripple’s XRP.

How much has Ripple grown in 2017?


Year to date, Ripple’s XRP has seen its value jump more than 7,000% and its market cap increase by nearly 7,700%.

December 09, 2017

Want to Short Bitcoin? The time to take action is now

By Kinsey Grant - December 07, 2017 (www.thestreet.com)

If you're not buying into the bitcoin hype, now could be the time to go short, as fees related to placing a short bet on the cryptocurrency could more than double
when bitcoin futures go live next week.


Bitcoin is going wild Thursday, Dec. 7. But if you're not buying the rally, now could be the time to place your short bets.

The digital currency has surpassed five major threshold prices in the past two days. After trading above $16,100 midday Thursday, bitcoin pared gains slightly, still higher 16.18% for the day to $15,971.05 Thursday afternoon.

The surge in price comes ahead of the Sunday, Dec. 10, start date for bitcoin futures on Cboe. A week later, on Dec. 17, bitcoin futures will become available on CME. Investors looking to short bitcoin need to take action before futures start trading, according to S3 Analytics.

Shorts on Grayscale Investment's Bitcoin Investment Trust (GBTC) , which is the only ETF whose performance is directly tethered to bitcoin's market price, has averaged $21 million for the year. Short interest hit a high of $71 million on Tuesday, Dec. 5.

Shorts are down $45.9 million in year-to-date mark-to-market loss, S3 wrote, or down 217%. About $39 million of that loss has been registered since October, when the bitcoin rally amped up considerably.

But the cost to short bitcoin hasn't been cheap, S3 found. Stock borrow costs have averaged a 10.2% fee for the year, and "borrow rates are getting more expensive as borrow supply diminishes," S3 said. Since GBTC is more of a retail-owned stock than an institutionally owned stock, new shorts are being charged an 18.5% fee.

"If short interest continues to climb, we should see new borrow rates hit the 50% fee level quickly," S3 said.

The cost to short the GBTC fund could rise higher than 50% and possibly near 100% by the time the first futures contract trades, S3 noted. Many analysts have asserted bitcoin is headed for a pullback when futures open for trading.

"While the futures contract will allow easier and safer bitcoin short selling, it will also allow for easier and safer bitcoin long buying," S3 said. "Long GBTC holders may feel the pain of its 53% asset premium shrinking, while short-sellers will probably be incurring a 50%+ stock borrow fee -- both sides will be paying a premium in order to ride the bitcoin roller coaster once the Cboe futures start trading."

December 02, 2017

Meme Chart Mania - Is this the tip of the iceberg or have we already hit peak Bitcoin?

By Kai Sedgwick - December 02, 2017 (news.bitcoin.com)


The White House discussing bitcoin. The Big Bang Theory discussing bitcoin. Katy Perry and Warren Buffet discussing bitcoin. Bitcoin web searches exceeding those for Donald Trump. There’s no such thing as a quiet week in bitcoin, but even by its usual agitated standards, this one’s been noisy. Celebrity hangers-on come and go and generic sitcoms move on, but bitcoin refuses to let up. By all reckoning, this is just the tip of the iceberg. But what if we’re all wrong? What if it turns out that this is as good as it gets?

Just the Tip


Everyone’s got a favorite bitcoin chart. It doesn’t matter what data it displays – trading volume; dollar price; transactions; wallet addresses – because the key takeaway is always the same: this is only the beginning. This is just a fraction of the growth we’ll see once the normies pile in. This is just the tip. Just hold, we’re told, and by this time next year we’ll be sitting pretty. Five years from now and we’ll all be driving whichever meme car happens to be de rigueur among crypto’s nouveau rich.

Bitcoin is just beginning.
In the interests of playing devil’s advocate, however, let’s consider the alternative. There’s a case for saying that 2017 will go down as the year we hit Peak Bitcoin, followed by a gradual decline as the world lost interest, the proles returning to their mind-numbing TV shows, the White House focusing on its latest bête noire and investors fixating on the latest asset class to promise sick profits. We’ll inspect that side of the coin in a moment, but first, let’s hear the case for bitcoin.

The Age of Bitcoin is Just Beginning


Since everyone’s got a favorite chart, let’s scrutinize a selection that shows bitcoin’s incredible growth and huge potential. Highly respected crypto assets author Chris Burniske produced the following chart which suggests we’re at the frenzy phase of cryptocurrency. If you thought the last few weeks were wild, you ain’t seen nothing.


Then there’s the following effort from Blockchair which shows the number of bitcoin addresses that are loaded with satoshis. Like most bitcoin-related charts from 2017, this one is exponential.


If the last couple of graphs weren’t exponential enough for you, try this one for size. The Wall Street Journal compared bitcoin’s stellar ascent to every other modern asset class and came up wanting. Nothing like this has ever been seen before, and may never be seen again in our lifetime. Bitcoin in 2017 is so steep it’s almost vertical.


Bitcoin is literally off the charts. This raw data is bolstered by the quotes of investors, analysts, and experts who all see bitcoin going parabolic. “Over the next 10 years the cryptocurrency market will explode… I actually believe that nations will begin issuing digital currencies,” said Chris Concannon on Wednesday.

Between January and November, trading volume at Bitstamp increased by 1,384%. Everyone and their grandmother is now buying bitcoin according to the WSJ.

The Counter-Argument: Peak Bitcoin is Already Here


Two rich white people discussing 
cryptocurrency.
But enough of the bitcoin back-slapping – it’s time to play devil’s advocate. Imagine, for a moment, that 2018 were to unfold as follows:

January: Futures trading rolls out, but proving the maxim “buy on the rumor, sell on the news”, an overbought bitcoin market slumps to $8,000 and a bear phase sets in.

February: Following months of speculation over its balance sheet, Bitfinex/Tether collapses, taking over a billion dollars in customer funds with it.

March: A successful terror attack on American soil, funded from the Middle East using bitcoin, prompts President Trump to issue a crackdown on cryptocurrencies.

There’s more, but you get the gist. Okay, so even the most bullish of bitcoiners isn’t pretending there won’t be obstacles in the road or temporary setbacks. But here’s the thing: none of those nightmarish scenarios could play out and bitcoin could still slump. The wall-to-wall media coverage can’t last forever. The exponential growth can’t last forever. And the sitcom appearances and celebrity endorsements certainly can’t last forever. What happens when the hype fades and the circus packs up and leaves town?

There’s just one chart that needs produced to argue the bear case for bitcoin:


Yep, it’s that one again. What if, rather than the “media attention” phase, we’re actually at the “new paradigm” stage? If so, 2018 promises to be no less enthralling, even if it’s for all the wrong reasons.

Focusing on the price of bitcoin, while headline-grabbing, misses the bigger picture. To the virtual currency’s true believers, it doesn’t matter whether bitcoin goes up, down, or sideways next year. What matters is that the cat is out of the bag.

Cryptocurrency, as a store of value, a means of purchase, a form of remittance, and anything else one may care to use it for, has been normalized. Whether we’re driving Lambos or Ladas 12 months from now doesn’t matter. The days of government-issued fiat currency – or “snail paper” as Erik Vorhees recently called it – are numbered. Bear or bull, bottom or top of the curve, bitcoin is here to stay.

Images courtesy of Shutterstock, Wall Street Journal, Blockchair, and Chris Burnsiske.


Kai Sedgwick

Kai's been assembling words for a living since 2009 and bought his first bitcoin at $19. It's long gone. He's previously written white papers for blockchain startups and is especially interested in P2P exchanges and DNMs.

November 29, 2017

Billionaire Bull Novogratz - Bitcoin will be the ‘Biggest Bubble of Our Lifetimes’, And that’s okay

By Rebecca Campbell - November 29, 2017 (www.cryptocoinsnews.com)


Billionaire investor and hedge fund manager Mike Novogratz has made the claim that ‘bitcoin will be the biggest bubble of our lifetimes.’

Speaking at a conference in New York on Tuesday, Novogratz explained that there is a lot of fraud in something that’s ‘exciting’ as the crypto market, reports CNBC, adding:

"I think this [crypto] is going to be the biggest bubble of our lifetimes by a long shot. To be fair, this is a bubble and there’s a lot of fraud mixed in. We look at tons of projects. And some get funded, and they literally look like Ponzi’s".

However, unlike critics who have said dismissed the digital currency as a speculative bubble, the former Fortress manager wasn’t using his bubble comment as a negative connotation. In October, during an interview, Novogratz was asked whether bitcoin’s gains constituted a bubble. Even though he replied in the affirmative, he added that this wasn’t necessarily a bad thing, adding:

"Historically, manias or bubbles happen around things that fundamentally change the way we live. If it’s the railroad bubble or the Internet bubble, it really changed the way we live".


He added that in 10 to 15 years the blockchain and decentralised systems would be in use everywhere, claiming that this bubble is ‘going to be the great manias of all time.’

Since October, bitcoin has not only scaled the $10,000 milestone, but it’s continuing upward trajectory has pushed it up to its current value of $11,147, according to CoinMarketCap, pushing its market total to $185.7 billion for the first time.

The comments from Novogratz, who has compared to bitcoin to digital gold, come at a time when he recently stated that bitcoin could ‘easily‘ reach $40,000 by the end of 2018. Furthermore, he was reported yesterday as saying that the digital currency market cap will reach $2 trillion at the end of next year. At present, it’s worth an impressive $339.1 billion, making it more valuable than Visa and the Bank of America. Slowly, but surely, it’s steadily gaining on the market cap of JPMorgan Chase, at $343 billion, who’s CEO called bitcoin ‘a fraud‘ in September.

However, while Novogratz believes that the cryptocurrency will reach $40,000 by the end of 2018. he doesn’t think that the journey will be smooth sailing.

He added:

"There will be wild crashes in it because you’re going to get to levels so far ahead of where the technology’s at. It makes investing really, really exciting, but difficult".

Since the beginning of the year, bitcoin’s value has, so far, increased by more than 1,000 percent.

Featured image from Flickr/Acumen.

1 Million Yen, 100 Million INR – Bitcoin sets new price milestones on International Markets

By Samuel Haig - November 28, 2017 (news.bitcoin.com)


With all eyes on bitcoin’s meteoric break of $10,000, less attention has been paid to the price milestones recently established on leading international markets. In recent weeks, the CAD, AUD, NZD, and SGD pairings also surpassed $10,000, whilst a single bitcoin exceeds 500,000 RUB in Russia, 1 million JPY in Japan, 10 million KRW in South Korea, and 100 million IDR in Indonesia.

The Price of Bitcoin Exceeds 1 Million Yen in Japan


As Japan is currently host to more than 60% of global trading volume, reaching the seven-figure milestone on the JPY markets is a big deal for bitcoin. According to cryptocompare, bitcoin broke above one million JPY at approximately 7 pm on the 25th of November EDT. The current JPY/BTC price as of this writing approximately (1:30 am November 29th EDT) is roughly ¥1,300,000

Seven hours after bitcoin broke above one million JPY, the South Korean bitcoin markets reached 10,000,000 KRW for the first time ever. Currently, the Korean markets account for 10% of 24-hour trading volume, comprising the third-largest bitcoin market behind the United States. The current KRW/BTC price is approximately ₩12,600,000.

Bitcoin Tests $15,000 in Australian, Canadian, and Singaporean National Markets


With the exception of an anomalous spike in the AUD/BTC price at the end of October, cryptocompare’s price index indicates that AUD trade convincingly exceeded $10,000 for the first time on November 16th at 4 pm EDT. AUD trade comprises the fifth largest national market with roughly 0.45% of 24-hour bitcoin trade. The current AUD/BTC price is approximately $14,400.

Singapore hosts the seventh largest national bitcoin market equating for roughly 0.34% of total trade. The SGD/BTC price broke above $10,000 for the first time at 11 pm on November 15th EDT and is now currently trading for $14,300 approximately.

Canadian trade presently accounts for 0.2% of 24-hour trading volume, comprising the ninth largest national market. The CAD price of bitcoin broke above $10,000 for the first time at 2 am on November 17 EDT, with CAD/BTC currently trading for $13,300.

Other Major Price Milestones on International Markets


At approximately 11 pm on the 25th of November EDT, the price of bitcoin exceeding 150,000 ZAR in South Africa for the first time. ZAR trade comprises the eighth largest national bitcoin market – comprising 0.25% of 24-hour trade.The current ZAR/BTC price is approximately ZAR167,000.

Indonesia’s bitcoin markets comprise approximately 0.1% of 24-hour trading volume, currently making such the fourteenth largest national market. The IDR/BTC price broke above 100,000,000 rupees at 9 am on November 1st EST, and at approximately midnight on November 29th EDT established a new milestone of over 150,000,000 rupees.

Russian bitcoin prices broke above RUB 500,000 for the first time at 11 pm on November 25 EDT. RUB/BTC trading presently comprises the fifteenth largest national market, representing approximately 0.1% of 24-hour trading volume. Bitcoin is currently trading for approximately RUB 600,000 in Russia.

Images courtesy of Shutterstock



Samuel Haig

Samuel Haig is a cryptocurrency and economics journalist who has been passionately involved in the bitcoin space since 2012. Samuel has written about the disruptive potential of cryptocurrency with regards to the dialectical relations within contemporary neoliberal capitalism.

November 26, 2017

Bitcoin adds $1,000 to its value in two days; Sets record above $9,000

By Tedra DeSue - November 26, 2017 (cryptovest.com)


Bitcoin eye spied $9,000 throughout the day on Saturday, and then smoothly sailed over the milestone and hit a new record high like a breeze Sunday.

To put the move in perspective, consider this. 

On Friday, Bitcoin’s low for the day was about $7,958. On Saturday, it began its rebound from $8,227 and never looked back, passing $9,000 at 06:40 UTC today. 

Let’s review some of the chatter out there as Bitcoin keeps soaring higher. 

Predictions coming true?


Just yesterday we reminded you about one industry player in particular who has long premised that Bitcoin would hit $10,000. He’s billionaire hedge fund manager Mike Novogratz.

Clearly, he’s not alone in his optimism, but naysayers had dismissed him and others for their lofty predictions, as they were too distrusting of the long-term theories about the viability of the crypto. 

While Novogratz had earlier this year said the milestone would be achieved some time in 2018, he recently adjusted that target for the end of this year. 

Then there was Fundstrat’s Tom Lee who switched gears, going from bear to bull on Bitcoin this month. He now sees Bitcoin trading at $11,500 by the middle of next year.

What traders saying


Will these predictors who are trying to nail Bitcoin’s price movements go back to the drawing board soon, considering the crypto’s moved $1,000 in two days? 

While it’s always interesting to hear what the money managers and analysts have to say, we took a look at what every day traders are saying.

From Reddit, we found some comments that were noteworthy. 

JustARedditRetard said:

“The biggest percentage change on the weekly this year / run, was 43% back in July. Last week we had a 36% as we ripped fast from the low at 5555. (I'm looking at stamp)

This is still a far cry from the consistent 50%+ weeks that the market witnessed in 2013.

However, the market is bigger, it's slower, it's growing. More participants mean less volatility. This might well be the rate for this run. Next big bull run (Who knows when. We haven't finished this one yet), may average out at 15-20% gains with a couple of weeks at 30%. It's hard to say when a lot of the market dynamics have changed.”

rain-is-wet said:

”I've battled many a Tulip Troll over the years in news comments. Explaining why Crypto has real value and the market reflects that. But how does one defend BTG having $5.6 Billion market cap overnight? I'm sorry but this IS crypto tulip mania. They can't all be this valuable. This can't end well. (Though I think BTC will be OK.)"

November 24, 2017

Bitcoin price holds above $8,250 despite Ethereum, Bitcoin Cash surges

By Josiah Wilmoth - November 24, 2017 (www.cryptocoinsnews.com)


The Thanksgiving leftovers have been neatly packaged and stored away in refrigerators across the U.S., but investors will not be receiving any Black Friday discounts in the cryptocurrency markets this year. The three largest cryptocurrencies advanced in unison today, with the bitcoin price holding above $8,250 even as ethereum and bitcoin cash raced past significant milestones.

Source: CoinMarketCap

Against this backdrop, the total cryptocurrency market cap extended its record-setting streak. Having surged past $250 billion for the first time the previous day, the crypto market cap added more than $5 billion on Friday, bringing its new total to a present value of $258.7 billion.

Source: CoinMarketCap

Bitcoin Price Weathers the Storm


Ever since the post-SegWit2x cancellation bitcoin cash pump, there have been rumors that BCH advocates would mount another rally — perhaps on November 23, when U.S. investors and traders would be less active in the markets due to the Thanksgiving holiday. That theory was proved correct, though not to the degree that many expected.

The bitcoin cash price climbed nearly $600 — from $1,200 on Wednesday to $1,800 on Thursday — before pulling back to a present value of $1,658. This nevertheless represents an eight percent day-over-day increase and brings the BCH market cap to $27.9 billion.

Bitcoin Cash Price Chart | Source: CoinMarketCap

However, contrary to the last bitcoin cash pump, this one did not come at the expense of bitcoin. The bitcoin price did give investors a brief scare by temporarily falling below the $8,000 mark, but it quickly recovered and actually tested its all-time high on several exchanges.

Bitcoin Price Chart | Source: CoinMarketCap

At present, the bitcoin price is trading at a global average of $8,260, which translates into a $137.9 billion market cap.

Ethereum Price Reaches Record $420


Bitcoin’s resilience is even more impressive given that bitcoin cash was not the only top-tier cryptocurrency that threatened to funnel capital away from bitcoin to fuel its own surge. The ethereum price mounted a rally of its own, punching through the $400 level for the first time since June. The ethereum price ultimately rose as high as $425 — a new all-time high — and is currently trading just below that level, at $420.

Ethereum Price Chart | Source: CoinMarketCap

Ethereum now has a market cap of $40.3 billion, giving it a $12.4 billion edge on bitcoin cash.

Other Markets Take a Holiday


The remainder of the top 10 was surprisingly quiet on Friday, with four cryptocurrencies moving less than one percent and just one venturing past the two percent marker.

Source: CoinMarketCap

That asset was IOTA, whose price plummeted by 18 percent following an extended — if uneven — rally. The IOTA price is now $0.734, which translates into a market cap just above $2 billion and drops IOTA to ninth in the market cap rankings.

Posted by Josiah Wilmoth
Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth(at)cryptocoinsnews.com.

JP Morgan is getting into Bitcoin Futures trading, Despite Jamie Dimon’s statement about Bitcoin’s fraud

BY Eugenia Kovaliova - November 22, 2017 (www.coinspeaker.com) 


JP Morgan, one of the largest banking institutions in the United States, is looking at allowing its clients to trade bitcoin futures, while its Chief Executive James Dimon stays negative to Bitcoin believing it’s a fraud.

According to the latest Wall Street Journal report, JP Morgan Chase & Co., a leading global financial services firm operating worldwide and the US largest banking institution, is considering whether to provide its clients access to CME’s new bitcoin product through its futures-brokerage unit. The final decision depends on JPMorgan’s customers’ demand.

The news can seem a bit contradictory if we remember JP Morgan’s Chief Executive James Dimon, stating that Bitcoin is a fraud, which became the most outspoken critic of Bitcoin on Wall Street. Moreover, on multiple occasions Dimon hinted that he believes digital currency is a bubble that will crash. On a conference last month he said: “If you’re stupid enough to buy it, you’ll pay the price for it one day.

Dimon also said he would fire anyone caught investing in Bitcoin and seemed to be ready to fulfill the promise. His finance chief, Marianne Lake, has struck a more measured tone. Last month she said that the firm was open minded to the potential uses for digital currencies so long as they are properly regulated.

Surprisingly, that despite Dimon’s negative attitude to cryptocurrency, JPMorgan would be moving forward with plans to allow clients to trade in it through the bank.

The introduction of Bitcoin Futures Contract by the CME group, which is planned to be launched by the end of the year, was followed by Bitcoin’s new all-time high of $8336. The upswing was recorded on Monday, November 20. And the rate doesn’t seem to stop rising. According to the predictions of legendary hedge fund manager and a billionaire trader Michael Novogratz, Bitcoin can touch $10,000 by the end of this year.

Apart from CME Group, a few more Wall Street financial institutions have turned optimistic about Bitcoin’s future. One of such examples is LedgerX, a federally regulated exchange and clearinghouse, which has initiated the first-ever long-term Bitcoin futures ‘option’ pegged at a price of $10,000.

Bank of America Merrill Lynch has recently stated that bitcoin futures could help dampen the coin’s volatility:

“We would not overstate this, as a material reduction in volatility would require there to be a large community of speculators prepared to provide liquidity to the natural owners of the various coins, but given the volatility of the coin markets, maybe there already exists a cadre of participants who would look to short coins on strong days and vice versa, which could overall reduce volatility.”

Still, some experts continue to doubt that bitcoin futures would be positive for the markets, holding on to the point that such a product could ultimately destabilize the real economy.

November 23, 2017

Max Keiser - Bitcoin to reach $100,000, Calls Bitcoin Cash a fraud

By Rebecca Campbell - November 23, 2017 (www.cryptocoinsnews.com)


Max Keiser has said that bitcoin will increase to $100,000 from its current $8,000 value and believes that bitcoin cash is plagiarising it.

Host of Russia Today’s ‘Keiser Report,’ Keiser recently spoke to RT with the advice of sticking with the cryptocurrency as it will continue to dominate the market, pushing it forward.

He said:

"Hundreds of obituaries have been written about bitcoin and none of them have come true and none will. Fact is, bitcoin is a gift from God to help humanity sort out the mess it has made with its money".

The number one cryptocurrency has risen in recent months spurred on by the announcement that the CME Group are planning to launch a bitcoin futures contracts in mid-December, pending regulatory approval. Just yesterday, it was reported that bitcoin had risen to a new all-time high of $8,380, after recovering from the post-Tether hack market volatility.

Remaining confident as to where the digital currency is heading, Keiser believes that it will hit $100,000. However, even though the combined market value is increasing he believes most of the trading will remain within the top 20 alt-coins.

He added:

"Ninety percent of trading is in the top 20 coins, and that will continue. Coins will come and go. The composition of the top 20 will change less frequently".

While he states that trading within the top 20 coins is unlikely to change much in the future, he doesn’t have good things to say about bitcoin cash, the third ranked cryptocurrency. According to Keiser, the alt-coin is simply copying bitcoin, stating that:

"Bitcoin cash is an alt-coin that has its fans just like many alt-coins. I don’t think anyone who uses bitcoin’s name and applies it to an alt-coin like bitcoin cash does is adhering to acceptable business practices. In other words, bitcoin’s brand is being stolen by a competitor that calls itself bitcoin cash and this is outright fraud in my opinion, just like it’s fraudulent to use Coca-Cola and Nike’s name to sell soft drinks or shoes".

Created at the beginning of August, bitcoin cash has been marketed as the digital currency alternative to bitcoin and the answer to bitcoin’s current scaling issues. Despite a lack of support during its early days, with its price remaining below that of $1,000, recent weeks has seen it reach new all-time highs. Since last week, bitcoin cash has risen from $800 to $2,900 and is currently trading at $1,491, according to CoinMarketCap.

Yet, despite its fluctuating price, bitcoin cash proponents Roger Ver and Calvin Ayre have proclaimed that ‘bitcoin cash is bitcoin.’

Featured image from Shutterstock.

November 17, 2017

Bitcoin adds $41 billion to market cap in 6 days as it hits all-time high of $7,998

By Arjun Kharpal - November 17, 2017 (www.cnbc.com)








  • Bitcoin hit a new record high Friday and was within touching distance of the $8,000 handle
  • Coinbase said that there was still a possibility of a planned Segwit2x upgrade happening that would cause bitcoin to split and create a new cryptocurrency
  • The possibility of the Segwit2x upgrade appeared to be the catalyst for the rally

Bitcoin hit a new record high Friday, coming within touching distance of the $8,000 handle.

The cryptocurrency was trading at $7,998.40 in the early hours, U.K. time, according to industry website CoinDesk. Bitcoin did pare some of those gains, however, falling as low as $7,535.85; it was trading around $7,750 by mid-morning.

It's been a wild week for bitcoin, which sold off heavily last weekend, falling to around $5,500. Since Sunday, the cryptocurrency has risen from that low to Friday's high, marking a 45 percent increase.

In that time, bitcoin's market capitalization, or the total value of the digital coins in circulation, has risen from $92 billion to $133.5 billion, according to Coinmarketcap.com.

The price dip last weekend came after an upgrade to the bitcoin network, SegWit2x, which was planned for November 16, was called off. The aim was to increase the transaction speeds of SegWit2x, which has increasingly slowed down over the years. If the upgrade took place, it would have caused what is known as a "hard fork," causing a new bitcoin spin-off to be formed.

Two previous forks have already happened earlier this year, leading to the creation of bitcoin cash and bitcoin gold.

But support for the Segwit2x upgrade waned, causing developers to call off its planned implementation.

This appeared to be the initial catalyst for the sell-off.


But on Friday, Coinbase, one of the world's largest cryptocurrency exchanges, said there is still a possibility of a fork.

David Farmer, director of communications at Coinbase, said on a blog post that a "small number of miners may attempt to go forward with a fork."

A miner is a key part of the bitcoin network. It is a person who runs a "node", or a high-powered computer that is able to solve the complex mathematical equitation required to verify bitcoin transactions.

If a large number of miners upgrade the software on their nodes, it could cause a fork. Farmer warned that this small number of miners still supporting the Segwit2x proposal could cause a fork.

If a fork happens, holders of bitcoin will receive the newly-created cryptocurrency called "bitcoin2x" for free, essentially giving them free money. That is why bitcoin rallied Friday.

Coinbase said that it will disable the function of sending and receiving bitcoin at 2 a.m. PT on Friday on its platform, and halt buying and selling an hour before the fork, which is forecast between 6 a.m. and 8 a.m. PT.

All functionality will be re-enabled shortly after, Farmer said.

The Coinbase communications executive said that there are two scenarios that could occur. The first is that the new bitcoin2x network is unusable because there is not enough support, in which case Coinbase will not facilitate trading or withdrawals because "it will not be possible to move these assets." Farmer said that this is the most likely outcome.

The second scenario is that the bitcoin2x network is usable because miner support is strong.

Bitcoin has had a rocky year but the price has continued to rise and is up around 700 percent. But many critics have thrown cold water on the rise of the cryptocurrency, with JPMorgan Chase CEO Jamie Dimon calling it a "fraud". Regulators in some countries have also cracked down on bitcoin trading, with China banning bitcoin exchanges.

November 16, 2017

Bitcoin is back flying on a upward trajectory above $7800

BY Bhushan Akolkar - November 16, 2017 (www.coinspeaker.com)


After almost a week of consolidation, Bitcoin prices are back on the upward trajectory trading now above $7800.

After nearly a week’s and more of consolidation, Bitcoin is finally back on its upward trajectory and has successfully crossed the $7800 mark and is currently trading at $7750-$7800 as per coinmarketcap.com. Now, Bitcoin just needs another 7% trigger from here to cross its all-time-high and be on the path of inching closer to the $10000 as predicted by several analysts.

After enjoying a tremendous bullish run in the first week on November, Bitcoin prices corrected heavily hitting a new bottom of $5450.50 and then consolidating back for almost a week above $6000. One of the major reasons attributed in the fall of the Bitcoin prices is that miners had shifted their attention to the Bitcoin Cash as mining seemed more lucrative and rewarding on the Bitcoin Cash blockchain for that time.

Miners usually prefer to shift between Bitcoin and Bitcoin Cash blockchains due to the highly volatile and changing difficulty levels and the one that is more rewarding at that time will get more attention from miners. However, such shifts won’t be observed quite frequently henceforth, reason being, Bitcoin Cash has recently been hard forked and has shifted to a new software protocol which aims to upgrade the network’s Difficulty Adjustment Algorithm (DAA). The new protocol aims to reduce the volatility in difficulty levels and bring more stability to the BCH platform.

As a result, miners, who were getting more advantage on the Bitcoin Cash platform by exploiting the volatility in difficulty levels can no more do so after the new software upgrade and thus they seem to have shifted their attention back to the BTC platform.

Now, a new optimism has swept in the market pertaining to Bitcoins and newly published investor survey by LendEDU shows that Bitcoin prices could reach a figure as high as $196,165. Yes, this is nearly 30 times from the existing value and the first read this might really sound to be insane! However, research analyst with LendEDU, Michael Brown says “Believe it or not, that number and statement is true according to our polling data.” In order to reach to this odd figure, a poll was conducted across a very small sample size of 564 Americans based on which this figure was concluded.

Note that it is certainly not going to be a cakewalk for Bitcoin to reach such a large value. But such a thing can only happen if Bitcoin turns out to be “people’s currency” with more number of young investors supporting the Bitcoin revolution and using Bitcoins as a go-through currency for everyday transactions. Brown says that “These investors could envision Bitcoin reaching that price with the help of time and younger consumers developing more of an affinity with virtual currencies, specifically Bitcoin.”

A complete transformation into the digital world of cryptocurrency means making the older generation believe and trust in this new concept virtual digital currencies which would take place over a generation to come. Brown said “As it stands today, the price of cryptocurrencies is rising rapidly yet many of the most influential, older investors are still not sold on Bitcoin and believe it will collapse. Just imagine when younger Americans develop more spending power and attempt to bring Bitcoin into the forefront of the U.S. economy? At that point, the price of Bitcoin will skyrocket.”

Note that this is just a result of analysis done over a small poll conducted. We request you to take this with a pinch of salt and rather enjoy the existing bull run in Bitcoins as nothing can be said with certainty about such far away future. For now, the momentum back in the Bitcoin prices seems to be a quite convincing and we hope it to achieve new highs before the year-end.

November 01, 2017

$6,619: Bitcoin price makes a colossal leap to new all-time high

By Josiah Wilmoth - November 01, 2017 (www.cryptocoinsnews.com)


The bitcoin price achieved record highs for the third consecutive day, surpassing the $6,600 mark for the first time following CME Group’s announcement that it would list bitcoin futures on its derivatives exchange.

As CCN reported, CME Group — the world’s largest regulated derivatives exchange — announced on Tuesday that it plans to become the first licensed U.S. trading platform to launch bitcoin futures contracts. This news caught many people off guard because CME Group had stated as recently as last month that it did not plan to list bitcoin futures within the near future. Nevertheless, the exchange operator reversed that stance, citing high demand for institutional and commercial financial products that provide investors with exposure to bitcoin.

The bitcoin price had already achieved a new high-water mark on Sunday, crossing the $6,300 threshold, and the CME Group announcement provided bitcoin with the fuel it needed to continue to scale the charts. Shortly after the announcement, the bitcoin price spiked above $6,400, and it sustained that advance throughout the remainder of the day.

Bitcoin Price Chart | Source: BitcoinWisdom

Despite this rapid advance, the bitcoin price climbed even further on Tuesday, punching through $6,600 on U.S. bitcoin exchange Coinbase to reach a new all-time high of $6,619. This translates into a market cap of more than $110 billion, raising bitcoin’s dominant share of the total cryptocurrency market cap to just under 60%.

The official listing of CME Group’s bitcoin futures — slated to happen before the end of the year — will likely trigger another price rise, as well as a significant infusion of capital from Wall Street firms. Additionally, the existence of bitcoin futures contracts should enable the Securities and Exchange Commission (SEC) to begin reviewing applications for Bitcoin ETFs, exchange-traded funds that trade in bitcoin futures contracts. These Bitcoin ETFs will be available to retail investors, will introduce further liquidity to the ecosystem and many analysts expect that their launch will cause the bitcoin price to ratchet up even further, perhaps as high as $7,500 or $10,000 within the near future.

Of course, the bitcoin price’s rapid advance in response to the announcement indicates that, to some extent, these anticipated developments have already been priced in. Consequently, the bitcoin price could see a moderate correction if regulators take a hostile stance on either the futures contracts or ETFs that trade those contracts. However, Terry Duffy, chairman and chief executive officer of CME Group, stated that the exchange operator is working closely with regulators to bring these financial products to market, and he does not expect that regulations will inhibit the exchange from launching bitcoin futures.

Featured image from Shutterstock.

Posted by Josiah Wilmoth

Josiah is a former ancient and medieval literature teacher. He has been writing about cryptocurrency since 2014, and his work has been cited in Business Insider, NPR, and Yahoo! Finance. He lives in rural North Carolina with his wife and son. Email him directly at josiah.wilmoth@cryptocoinsnews.com.