Coinbase Fails to Top CryptoCompare’s Exchange Rankings due to 2019 Flash Crash

Coinbase, one of the most popular platforms in the United States, missed out on the number one spot in a ranking of crypto exchanges due to a 2019 Bitcoin (BTC) price glitch.

The major U.S. crypto exchange and wallet service did not get to the top of the latest CryptoCompare’s crypto Exchange Benchmark rankings because its institutional trading arm Coinbase Pro experienced a major Bitcoin price flash crash in October 2019.

CryptoCompare confirmed to Cointelegraph that the glitch was the primary reason behind the five-point drop for Coinbase in the “Negative Reports” section of rankings. “Coinbase would be top without this event, and in fact topped our rankings last year in June, before this event,” the firm noted.

As reported, Coinbase Pro experienced a system glitch that caused the deletion of some stop-loss orders before Bitcoin’s sharp drop from $9,260 to $9,055 on Oct. 31. That wasn’t the first time when Coinbase experienced a flash crash though. Back in 2017, the Commodity Futures Trading Commission was investigating Coinbase over an Ether (ETH) flash crash that occurred on its GDAX exchange. The GDAX glitch caused Ether to drop to just 10 cents from $317 in milliseconds before quickly recovering.

Another U.S.-based exchange ItBit gets the top rank

On Feb. 12, British crypto analytics firm CryptoCompare updated its crypto exchange rankings, releasing an accompanying report covering Q4 2019. The number of analyzed crypto exchanges on the online ranking amounts to 159 platforms at press time.

As previously reported, CryptoCompare’s rankings do not rely on aggregate volume data of exchanges but rather represents the firm’s proprietary risk-based method of ranking.

As such, New York-based ItBit, currently the 20th-largest crypto exchange by 24-hour volume, is now the top platform of the new Exchange Benchmark, while Winklevoss’ Gemini exchange slipped to second place since the previous ranking release.

In order, the top 10 crypto exchanges in CryptoCompare’s third Exchange Benchmark are: ItBit, Gemini, Coinbase, Kraken, Bitstamp, Liquid, Bitfinex, OKEx, bitFlyer and OKCoin.

The new top 10 list included only one newcomer, OKCoin, which was allegedly caused by Poloniex’s departure from the U.S. market in October 2019. Poloniex also saw a decline in their market quality score, CryptoCompare said in an email to Cointelegraph.

Top 10 crypto exchanges in CryptoCompare Exchange Benchmark Q4 2019

Top 10 crypto exchanges in CryptoCompare Exchange Benchmark Q4 2019. Source: CryptoCompare

Only 16% of crypto exchanges hold the majority of funds on cold storage

CryptoCompare launched its Exchange Benchmark in June 2019 in response to a study that claimed that 95% of volume on unregulated exchanges is fake. The analysis also aimed to warn crypto users about the level of risk across the industry, providing an overview of crypto exchanges based on eight major ranking components including regulation, security and market quality.

According to the latest Exchange Benchmark report, only 16% of analyzed crypto exchanges hold more than 95% of their crypto funds on cold storage, while just 4% of exchanges formally offer some form of crypto insurance. Additionally, crypto exchanges that are located in the U.S., Luxembourg, Japan and South Korea are among those associated with the lowest level of risk, according to CryptoCompare.

Source Cointelegraph

Bitcoin Price Will Crash Below $1k in 2020, ZenGo CEO ‘Jokingly’ Predicts

As the crypto community enters 2020, the CEO of the ZenGo wallet Ouriel Ohayon tweeted his new year predictions, one of which was that the price of Bitcoin will crash below $1,000.

Ohayon tweeted 9 hours ago to press, “Bitcoin will crash to sub-1000 USD.”

Along with his Bitcoin price prediction, Ohayon shared:

“All hardware wallets will be hacked; Tron/XRP will become the most important cryptocurrency; Satoshi identity will be revealed and will be disappointing; Trump will stack sats on twitter; Lightning will have glorious adoption.”

Source Twitter

Was Ohayon being serious?

While it may have initially seemed like Ohayon’s tweet was filled with sarcasm, he clarified his sentiments with another tweet shortly afterwards, saying “joke mode off.”

When asked if he truly believed if these predictions would come true this year, Ohayon told Cointelegraph in another tweet, “I am a disaster at making predictions. Did you notice the thread?”

A few minutes later, Ohayon admitted that his predictions were not serious, but that he was happy to get them out.

Source Twitter

A hint of truth in every joke

While Ohayon’s predictions were more or less a joke, they might bear some real-world weight.

For instance, Australian entrepreneur Craig Wright made the claim in 2019 that he is Satoshi Nakomoto, sparking instant controversy in the crypto space. Ironically, Wright also informed court officials that he could not finance a 500,000 BTC settlement in the case that the Kleiman estate initiated against him in November. Dave Kleiman was a cyber-security expert, whom many believe to have been one of the first developers behind Bitcoin and blockchain technology.

While it may be extreme to predict that every hardware wallet will be hacked this year, a number of vulnerabilities in hardware wallets have recently come to the surface. A Kraken Security Labs’ blog published on Dec. 10 details a “voltage glitching” attack that extracts the encrypted seed used to access cryptocurrency stored on a KeepKey hardware wallet. An attacker can then brute-force attack the encrypted seed, as it is only protected by a 1-9 digit PIN, which Kraken described as “trivial.”

Although it does seem likely that 2020 will be met with more Satoshi Nakomoto identity claims and wallet hacks, one of Ohayon’s predictions does seem a bit farfetched. While it would be a major win for the crypto community to have President Trump tweet about buying Bitcoin, it seems highly unlikely this will happen anytime soon based on a tweet the president sent out on July 11:

Cointelegraph News

‘OK Doomer’ — Peter Schiff Is Convinced Bitcoin Will Now Crash to $1K

Bitcoin (BTC) proponents have ridiculed one of the cryptocurrency’s most infamous critics after he delivered a highly bearish price prediction.

In a Twitter debate on Nov. 21, commentators joined forces against Peter Schiff, who claimed BTC/USD was set for a dive as low as $1,000. 

Schiff: $1,000 would “complete the pattern” for BTC

Arguing current price action correlated to a “head and shoulders” formation, the gold bug forecast a dramatic downturn would characterize markets in the future. 

He summarized:

“#Bitcoin is nearing the neckline of the head-and-shoulders top I pointed out before the Oct 25th 40% pump. The right shoulder is now shrugged and the neckline slanted and parallel to the shoulders. If it breaks the price objective for the dump is $1,000 to complete the pattern.”

In a further post, he doubled down on his position. “The picture really doesn’t look any better if your long Bitcoin!” he wrote.

Another attempt saw Schiff take a photograph of a Bitcoin price chart on his computer screen, which led to ridicule.

A history of failed price predictions

Schiff is well known for his dubious Bitcoin price commentaries. Despite appearing convinced Bitcoin is doomed to fail, previous insights have proven false, something which was not lost on its supporters.

Responding to the latest tweet, the trader known as CryptoBull produced a BTC/USD chart which combined price movements with Schiff’s predictions. Schiff has yet to guess the market trajectory correctly.

Other, longer-term warnings from Schiff include Bitcoin never reaching $50,000, while gold should top $5,000. In late October, during the upward price move he referenced in Friday’s tweet, Schiff accused investors of manipulation as BTC gained 30% over gold.

Cointelegraph News

Markets Crash After Reports That Binance’s Shanghai Office Closed in Crypto Crackdown

Chinese authorities have reportedly raided and shut down the Shanghai offices of leading cryptocurrency exchange Binance. 

Citing unnamed local sources, The Block says that local police have shut down Binance’s offices after raiding the premises. Between 50–100 of the exchange’s employees reportedly worked out of the Shanghai location.

Binance has not responded to Cointelegraph’s requests for comment as of press time. 

Closure follows crackdown 

The purported raid follows a crackdown on cryptocurrency-related businesses and activities in the country. 

Recently, financial authorities in China issued a notice to the public, directing individuals to report businesses engaged in virtual asset trading to the Shanghai headquarters of the People’s Bank of China — the country’s central bank. Activities that must be reported include:

“Virtual currency transactions in the territory; the other is to issue ‘xx coins’ and ‘xx’ in the form of ‘blockchain application scenarios.’  Currency, fundraising or bitcoin, virtual currency such as Ethereum; third, providing services such as publicity, diversion, agency trading, etc. for registered ICO projects, virtual currency trading platforms, etc.” 

Notice from authorities on cryptocurrency-related activities. Source: Chain News

However, Binance told Cointelegraph that the company had not received this notice. Similarly, Beijing-founded Huobi told Cointelegraph that the company was familiar with the notice, but had not received it.

Offices are an outdated concept?

In a move of regulatory arbitrage, Binance opened offices in Malta in 2018 as the island nation ramped up its cryptocurrency-friendly regulatory projects.

Last month, rumors abounded that the exchange was opening offices in the Chinese capital of Beijing, despite the country’s decidedly anti-cryptocurrency stance. 

However, according to the firm’s CEO Changpeng Zhao, offices themselves are an antiquated concept. In a tweet on Nov. 19, Zhao said, “Office and HQ are old concepts like SMS and MMS. Time is moving on…” 

Markets react with major coins seeing red

Cryptocurrency markets have reacted to the news, with most major coins seeing significant losses on the day.

Cryptocurrency market visualization. Source: Coin360

Bitcoin (BTC) is seeing losses over 6% while leading altcoin Ether (ETH) has lost over 8% in the last 24 hours. Altcoins like Litecoin (LTC) and EOS are taking a beating with over 9% losses, while Binance’s own coin, Binance Coin (BNB), is down 10% at press time to trade at $16.58.

Source Cointelegraph

BlockShow Asia, Bitcoin Crash Warning, India Delays Crypto Ban: Hodler’s Digest, Nov. 11–17

Coming every Sunday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.

Top Stories This Week

BlockShow Asia 2019: Binance’s CZ speaks publicly about China’s digital currency

BlockShow Asia 2019 was held in Singapore this week, leaving us with plenty of stories to chew over. Binance’s Changpeng Zhao was among the speakers, and he predicted that the central bank digital currency being developed by China will be based on blockchain. Explaining his reasoning, Zhao explained how Beijing wants to push the influence of the renminbi globally in order to make it competitive with the U.S. dollar. He welcomed competition in the crypto world, saying: “Having is better than not having. Having stablecoins is better than not having them. Having Libra is better than not having it.” Zhao’s appearance followed President Xi Jinping’s calls for China to accelerate its adoption of blockchain — and the exchange boss said those who were laughing at blockchain aren’t laughing now.

BlockShow Asia 2019: Calls for clarity and caution on crypto regulation

Crypto regulation was another hot button during the two-day event powered by Cointelegraph. Some, such as Proof of Capital’s managing partner Edith Yeung, publicly criticized American regulators for leaving blockchain-based ventures in the dark — with some exchanges leaving the U.S. altogether because of uncertainty surrounding their status. Others, such as Quoine co-founder Mike Kayamori, were far more cautious. He said regulation was something that needs to be done carefully given how the industry is constantly evolving, and he warned: “The government can’t try to regulate things it still doesn’t understand.”

BlockShow Asia 2019: 99% of token price is pure speculation, says VeChain founder

Another interesting panel at BlockShow focused on creating token value — and asked whether monetary gains are hindering blockchain innovation. VeChain founder Sunny Lu claimed 99% of a token’s value is normally linked to speculation, rather than the value that a solution can bring to society. He added: “This causes many startups to waste a lot of time producing and ‘selling’ the token, failing to develop solutions for where they were initially focused.” Fellow speakers acknowledged that it can be difficult to determine the value of blockchain projects, given how the blockchain industry is still very young, but they expressed confidence that it will get easier as the market continues to develop.

Changpeng Zhao, Binance CEO

Indian parliament will not consider total crypto ban in winter season

A quick look at some of this week’s other headlines now. India’s proposed, controversial ban on cryptocurrency is being delayed. The draft bill was expected to be introduced in parliament in the winter session that takes place between Nov. 18 and Dec. 13, but it has not been included in the agenda. Crypto businesses and consumers in the country have expressed concern because the law proposes jail terms of up to 10 years for those found dealing in digital currencies. Indian exchanges have welcomed the delay — urging campaigners to forget competition and ego, and to present their case to regulators in a united fashion. Others have said the delay proves that the government is listening and potentially reevaluating its position.

OneCoin co-founder pleads guilty, faces up to 90 years in jail

Konstantin Ignatov, the co-founder of the crypto scam OneCoin, has pleaded guilty to participating in the multibillion-dollar fraud. As part of a plea deal, he admitted a multitude of charges, including money laundering and fraud. He is facing up to 90 years in prison and has yet to be sentenced, but will reportedly face no further criminal charges for his role in OneCoin, except potential tax violations. OneCoin is known as a major crypto exit scam, and the Bulgarian-based firm remains fully operational despite allegations it raised $4.4 billion in a Ponzi scheme.

Winners and Losers

At the end of the week, Bitcoin is at $8,602.00, Ether at $185.44, and XRP at $0.27. The total market cap is at $235,793,356,657.

The top three altcoin gainers of the week are MMOCoin, eosBLACK and Sparkster. The top three altcoin losers of the week are Monoeci, USDX and Bitcoin God.

Winners and Losers

For more info on crypto prices, make sure to read Cointelegraph’s market analysis. 

Most Memorable Quotations

“Economics and ethics can go together thanks to decentralization.” 

Ben Goertzel, SingularityNET CEO

“In the future, I believe today’s applications will become legacy applications. New blockchain applications will go from marginal, to alternative, and eventually to mainstream.”

Da Hongfei, NEO founder

“We did some research, heard some discussions and conversations and one comment was it’s still complicated to 99% of the population. Until it’s more widely accepted, it’s a cottage industry or a neat way to pay.”

David Herr, Dallas Mavericks chief technical officer

“99% of a [token’s value] is linked to speculation, and not to the value that solution can bring to society. This causes many startups to waste a lot of time producing and ‘selling’ the token, failing to develop solutions for where they were initially focused.”

Sunny Lu, VeChain founder

“Bitcoin is censorship resistant money, the first in the world. I don’t believe in institutional adoption. If this happens, Bitcoin will become not censorship-resistant. Then it won’t have this feature anymore and will crash to zero.”

Pavel Kravchenko, Distributed Lab CEO

Pavel Kravchenko, Distributed Lab CEO

“Crypto is evolving, and the government can’t try to regulate things it still doesn’t understand. […] I am still in favor of crypto regulation, but [it] needs to be done very carefully.”

Mike Kayamori, QUOINE co-founder

“Custody, liquidity, and regulations are the top three petitions from institutional investors jumping into crypto.”

Justin Chow, Cumberland head of business development in Asia

“Don’t leave your assets on exchanges. Don’t be lazy. I’ve been into it and learned a good lesson.”

Clement Ip, Genesis Block HK co-founder

“The Chinese government wants to push RMB’s influence globally. They want RMB to be competitive with the US dollar. In order to do that they really need to push this currency to have more freedom.”

Changpeng Zhao, Binance CEO

“We are not seeking full control of the information of the general public.”

Mu Changchun, People’s Bank of China senior official

“I am strongly against Bitcoin, and I think we are a little complacent. […] The currency itself is not real, with the characteristics that a currency must have.”

Jean-Claude Trichet, former European Central Bank president

Prediction of the Week

Expert: Bitcoin may “crash to zero” because of institutional adoption

The CEO and co-founder at Distributed Lab, Pavel Kravchenko, has warned that increasing institutional interest in crypto could see Bitcoin’s value crash to zero. Speaking at BlockShow Asia 2019, the industry expert said BTC’s position as censorship-resistant money would be undermined if major players begin to embrace it more fully — undermining its value. During his appearance, Kravchenko also said Bitcoin’s price will rise if governments around the world attempt to ban Bitcoin altogether, and that the cryptocurrency must attempt to become more private and introduce anonymizing features if it is going to remain resistant to censorship.

Clement Ip, Genesis Block HK co-founder

FUD of the Week

Dutch court orders Facebook to remove fake Bitcoin ads

A Dutch court has ruled that Facebook must remove BTC-related fraudulent investment ads following a lawsuit by local billionaire John de Mol. The TV executive had launched legal proceedings against the social network earlier this year, alleging that the company had failed to respond to multiple requests to remove ads that used his image without consent. De Mol claimed that vulnerable victims had lost $1.8 million as a result of the campaign. The court rejected Facebook’s assertion that it is “a neutral funnel for information” — and as well as removing any incriminating ads, the company has been told it must provide all available information about the people behind them. For its part, the tech giant insists it has already taken down the ads in question, and it is considering “all legal options including an appeal.”

IRS criminal investigators looking into Bitcoin ATMs and kiosks

The U.S. Internal Revenue Service is looking into potential tax issues arising from Bitcoin ATMs and kiosks. John Fort, the regulator’s criminal investigation chief, said the IRS is collaborating with law enforcement to look into the illicit use of such machines. He said: “If you can walk in, put cash in and get Bitcoin out, obviously we’re interested potentially in the person using the kiosk and what the source of the funds is, but also in the operators of the kiosks.” This came as the number of BTC ATMs hit a new milestone worldwide, with more than 6,000 now in operation. More than 65% are based in the United States.

Dallas Mavericks CTO: Crypto payment option still “a cottage industry”

David Herr, the chief technical officer of the Dallas Mavericks professional basketball team, has said that only a small number of fans are using crypto to purchase things such as merchandise and tickets. Herr said Bitcoin was “still complicated to 99% of the population” — and he compared the crypto world to a cottage industry. The Mavericks became the second NBA team to accept BTC back in the middle of August.

Best Cointelegraph Features

Bitcoin revolution means Protestant Reformation, crypto drives change?

A new white paper is packed with bold predictions about what the future holds for crypto and blockchain — and claims there could even be parallels with the Protestant Reformation that shook Europe in the 16th and 17th centuries. Cointelegraph’s Andrew Singer has more.

China walks back hardline media rhetoric toward crypto and blockchain

China’s state-run media recently turned heads by featuring pro-Bitcoin comments, with the flagship digital currency being referred to as the world’s “first successful application of blockchain technology.” Cointelegraph’s Shiraz Jagati explores whether Beijing is attempting to row back its hostility toward crypto and blockchain.

Turkey’s unexpected rise to the top of global crypto adopters

Turkey may not be the first country that springs to mind when it comes to above-average crypto adoption, but new research suggests 1 in 5 residents are familiar with it. As the country gears up to finalize testing of the digital lira in 2020, Cointelegraph’s Sritanshu Sinha explores the rapid rise of crypto and blockchain in Turkey.

Source Cointelegraph

Bitcoin May ‘Crash to Zero’ Because of Institutional Adoption

Bitcoin (BTC) price could “crash to zero” in the event of mass adoption by institutions, an industry expert has warned.

Speaking at Cointelegraph’s ongoing BlockShow conference on Nov. 14, Dr. Pavel Kravchenko, CEO and co-founder at Distributed Lab and author of “Blockchain and Decentralized Systems,” revealed a rare bearish stance on the increasing institutional interest in Bitcoin. 

Kravchenko: BTC will go to zero with censorship

Kravchenko was sitting on a panel focusing on blockchain projects and their associated cryptocurrency tokens: “Creating token value — are monetary gains hindering blockchain innovation?” He summarized:

“Bitcoin is censorship resistant money, the first in the world. I don’t believe in institutional adoption. If this happens, Bitcoin will become not censorship-resistant. Then it won’t have this feature anymore and will crash to zero.” 

Institutions’ role in Bitcoin trading and investing continues to form a point of debate among market participants and experts. This year, new offerings have surfaced, with Bitcoin futures and custody solutions attempting to woo major players.

Some have warned about the detrimental impact of institutional involvement, while others are bullish about the future. 

As Cointelegraph reported, venture capitalist Mike Novogratz highlighted trading platform Bakkt in particular as having the potential to boost, not crash, the Bitcoin price. 

On the BlockShow panel, Matthew Rosak, CEO of enterprise blockchain startup Bloq, added that store-of-value use case for Bitcoin was furthering the appeal of the industry as a whole.

“Bitcoin as a store-of-value continues to be a freight train of momentum,” he said.

Conversely, Kravchenko argued governments trying to ban Bitcoin altogether would help the price more than institutional acceptance. As a currency, Bitcoin must attempt to become more private — and introduce anonymizing features such as those in Zcash or Monero — or it will lose its censorship resistance feature, he added.

Cointelegraph News

Manipulation? CME Bitcoin Futures Flash Crash to Fill $8.5K ‘Gap’

Bitcoin (BTC) trading is coming under the spotlight this week after another flash crash sparked concerns that traders are manipulating markets.

As various social media users noted, including statistician Willy Woo on Nov. 5, unusual occurrences on exchanges give reason to be critical of Bitcoin price movements. 

Woo: I’m “highly suspicious” of BTC/USD

As Cointelegraph reported, last week saw sudden erratic behavior at two exchanges — Deribit and Coinbase Pro — which appeared to influence BTC/USD.

On Tuesday, it was CME Group’s Bitcoin futures which continued the trend. In early trading, BTC/USD futures suddenly tanked to below $8,500 before rebounding to $9,300.

CME Bitcoin futures daily chart

CME Bitcoin futures daily chart. Source: TradingView

That lower level previously formed a gap in futures trading — when one session begins higher than where the last ended. Analysts note that Bitcoin often seeks to “fill” those gaps, but in this case, it did so with minimal resources.

“I cannot believe how crazy trading BTCUSD on the short term is right now. The gap on the CME has filled already. It’s thinly traded yes. But man, I’m highly suspicious of the price action across all the exchanges of late, more so than usual,” Woo summarized.

Cointelegraph contributor filbfilb reacted similarly, noting the unusual nature of the price filling at CME.

“Don’t know what happened there!” he told subscribers of his dedicated Telegram trading channel on Tuesday.

For Twitter analyst lowstrife meanwhile, the behavior was a “good example” of market manipulation.

“If you look at my original tweet, all the volume printed before the actual dump. But on the 1 minute chart it looks like it was part of the entire move. This is called painting the tape,” the account wrote.

BTC price red herring?

Bitcoin has seen two major run-ups in recent weeks, defying the previous sentiment that markets would remain lower in the months before the May 2020 block reward halving event. 

The moves seemed to take analysts by surprise, with BTC/USD recording its second-largest daily gains in history late last month. 

Longer-term, 2019 has been characterized by periods of price stability punctuated by sudden upward and downward movements occurring in a matter of minutes or hours.

Cointelegraph News

Deribit to Pay Users $1.3M After Bitcoin Price ‘Flash Crash’ to $7.7K

Cryptocurrency futures and options exchange Deribit says it will use its own money to refund users affected by an exchange rate miscalculation.

In a tweet on Nov. 1, Deribit recognized its role in the error, which occurred on Thursday and resulted in Bitcoin (BTC) trading at around $7,700.

Deribit: crash caused by “outlier” value

This, in turn, caused traders to be paid a lower price for BTC/USD sells, with Deribit calculating the losses at $1.3 million. 

Deribit Bitcoin futures chart

Deribit Bitcoin futures chart. Source: TradingView, Twitter

“Deribit will reimburse over $1.3 million in losses from the BTC index calculation data issue around 21:00:00 UTC on October 31, 2019,” it confirmed.

The exchange added: 

“The Deribit Insurance fund will not be used to cover these losses, but compensation will be covered by Deribit.”

In a further message, staff explained that issue came from an erroneous value which should not have been used in calculating the BTC/USD rate.

“An outlier should have been excluded from the index, therefore it’s refunded by the firm,” it reads.

Coinbase Pro quiet on order cancellations

At the same time as Deribit, Coinbase Pro, the high-volume trading arm of United States exchange Coinbase, also appeared to encounter problems. 

According to various accounts including by well-known trader Jacob Canfield, the exchange began automatically cancelling swathes of orders on Thursday. 

Canfield described Coinbase Pro’s order book as having “glitched out,” with an official response still to surface. 

Bitcoin saw periods of volatility on Thursday, reaching a high of $9,365 before reversing and abruptly dropping by around 2.5% as the exchange issues hit markets.

Cointelegraph News

Crypto Winter Is Here? Bitcoin Treads Trading Range Bottom After Crash

Bitcoin price (BTC) hovered near widely-predicted support levels on Oct. 24 after a day of carnage sent markets tumbling to five-month lows.

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Bitcoin battles fresh Congressional criticism

Data from Coin360 showed Bitcoin stabilizing on Thursday following its sudden downturn a day previously, during which BTC/USD lost $500 in just five minutes.

Bitcoin seven-day price chart

Bitcoin seven-day price chart. Source: Coin360

As Cointelegraph reported, the losses had long been anticipated, with analysts almost exactly predicting the floor lying at Bitcoin’s 200-day moving average — approximately $7,400.

The bottom in fact came at $7,360, while attention now focuses on Bitcoin’s next move. A major factor potentially exerting pressure on price is governmental scrutiny of Libra, Facebook’s proposed digital currency. 

This week, the United States Congress again grilled CEO Mark Zuckerberg in a public hearing, during which Bitcoin also came in for criticism. 

Beyond external factors, meanwhile, price decreases could test a technical theory focusing on Bitcoin miners. According to some calculations, current miner profitability demands a Bitcoin price of at least $6,500. 

Participation could drop — though likely temporarily due to the self-adjusting difficulty algorithm — if BTC/USD falls lower, as it did during the pit of the bear market in December 2018. Nevertheless, investment in mining infrastructure suggests that regardless of price performance, miners are bullish about the future.

Altcoin markets enter an uneasy pause

Altcoins meanwhile continued to see red as Bitcoin showed little sign of recovery. Having fallen around 8% during the dip, the top ten cryptocurrencies then lingered at lower levels.

Ether (ETH), the largest altcoin by market cap, nonetheless staved off heavier losses, dropping 3.5% to trade at $161 on Thursday.

Ether seven-day price chart

Ether seven-day price chart. Source: Coin360

Others fared worse, notably Binance Coin (BNB), which shed 8% to land at $16.50. 

The overall cryptocurrency market cap was $204 billion at press time, with Bitcoin improving its share marginally to 66%.

Keep track of top crypto markets in real time here

Cointelegraph News

Bitcoin Price Hits $8.8K Only to Crash in a ‘Logistical Move’ — Trader

Bitcoin price (BTC) traded broadly lower on Oct. 11 after sudden volatility broke a sideways trend in place since earlier in the week. 

Cryptocurrency market daily overview

Cryptocurrency market daily overview. Source: Coin360

Bitcoin analyst prepares for range-bound trading

Data from Coin360 showed BTC/USD circling $8,350 on Friday, having jumped to a local high of above $8,770 earlier. 

The enthusiasm was short-lived, with the following crash taking the pair below its previous levels. Daily losses for Bitcoin totaled 2.3% at press time, while the largest cryptocurrency remained up 2.6% versus the same point last week. 

Bitcoin seven-day price chart

Bitcoin seven-day price chart. Source: Coin360

Markets broadly shook off events which commentators assumed would impact them.  Specifically, the decision by U.S. regulator the Securities and Exchange Commission to reject the latest Bitcoin exchange-traded fund (ETF) failed to dent sentiment.

Previous ETF denials had piled downward pressure on Bitcoin, suggesting markets this time had already price in a negative decision. Another major ETF offering was withdrawn by its sponsors in September, hinting at a lack of confidence in the instrument winning approval. 

For the short-term future, however, analysts assumed it would be business as usual for Bitcoin. Regulator Cointelegraph contributor and market analyst Michaël van de Poppe eyed a narrower trading corridor centered on $8,300.

“Continue the ranging for now,” he summarized in a fresh update on Friday morning. 

Van de Poppe said that $8,300, as the monthly opening price, would form support, while resistance closer to $8,500 remained “significant.”

For fellow contributor crypto trader Scott Melker, the recent activity was calculated by large bagholders. He told Cointelegraph:

“I don’t think whales stopped hunting. I just think they started hunting for liquidity to sell and short, and the $8800 area was a predictable area to do so. Pushing price up to engineer liquidity was a logistical move.” 

Altcoins shed 3% amid mixed sentiment

For altcoins, a day of underwhelming returns for Bitcoin translated into similarly lackluster performance. Trending in line with BTC, the major of the top twenty cryptocurrencies posted daily losses of 2-3%.

Ether (ETH), the largest altcoin by market cap, fell 1.7% to $186, better than most, while Binance Coin (BNB) and Bitcoin Cash (BCH) lost closer to 3%. XRP also bucked the trend, staying stable at 0.7% lower.

Ether seven-day price chart

Ether seven-day price chart. Source: Coin360

The overall cryptocurrency market cap was $226 billion at press time, with Bitcoin’s share slightly down at 66.8%.

Keep track of top crypto markets in real time here

Source Cointelegraph