Extreme Fear Seized the Sentiment of Bitcoin

Willmen Blanco
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Extreme Fear Seized the Sentiment of Bitcoin

Fear gripped the cryptocurrency market after Thursday’s red day. This is confirmed by the Bitcoin sentiment index.

Financial markets are strongly influenced by the expectations of investors, and that of cryptocurrencies is no exception.

To stay on top of the feeling of Bitcoin, Alternative.me has created a simple index that tracks the mood of investors. Thursday, October 24th, was a red day for the cryptocurrency market. According to this index, extreme fear took hold of the market expectation for BTC.

What Made Extreme Fear Seize the Sentiment of Bitcoin

At approximately 12:45 p.m. (GMT time), the Bitcoin price lost almost USD 500 in less than 15 minutes. After the volatile bearish movement, it reached a low of USD 7,293.55 during the day on Thursday, according to Bitstamp.

This fall also caused the breakdown of a strong support located at USD 7,750 that kept a small positive expectation among investors alive.

Just before the strong bearish momentum, BTC was making a slight recovery that led it to touch the psychological level of USD 8,000, and even exceed it a little bit.

The bearish movement came to reduce the price of Bitcoin by more than 8%. At the same time, fear and uncertainty took hold of retail investors.

During Thursday, the Fear and Greed index showed a sentiment of fear marked with the number 33. On Friday, October 25th, the index went on to show the number 20, which falls into the range of extreme fear.

The Fear and Greed index is designed with a simple meter that ranges from 0 to 100, where 0 means extreme fear while 100 means extreme greed.

Meanwhile, Bitcoin managed to receive resting support that kept it consolidating all day on Friday.

Using Information Provided by Fear and Greed Index

It can be seen that the price of different assets is strongly influenced by emotions.

Greed takes hold of investors when the market is bullish, which is indicated with green numbers. On the contrary, fear reigns when the red numbers are seen.

This index is of great help to get a general idea of ​​the sentiment of Bitcoin at a specific time.

When greed arises, markets tend to correct themselves, since the price has probably been inflated by unscrupulous investors. When this occurs, the best thing is to remain aloof from it.

Although it may be found hard to believe, when fear is the one that takes hold of the feeling of Bitcoin, a good choice is to buy. This occurs because people tend to sell irrationally on a red day, and thus good prices emerge.

In fact, this should not be taken as the perfect indicator for an effective investment method. On the contrary, this is just a small indicator that may support a more complete strategy.

It is advised that people learn more about this interesting and useful index, which can help make better investing decisions. As stated above, the sentiment of Bitcoin exerts a great influence on the level of investment in the cryptocurrency market.

By Willmen Blanco

Layer1 Will Seek to Allow Bitcoin Mining Using Wind Energy

Maria Rodríguez
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Layer1 Will Seek to Allow Bitcoin Mining Using Wind Energy

Bitcoin mining can be conducted using wind power, according to the Layer1 project.

Due to the computer complexity and computational force that is required for mining cryptocurrencies such as Bitcoin, crypto-miners use specialized machines that help processing these digital assets. This process requires large amounts of energy, as well as managing operations and executing transactions with these assets requires energy too.

It is for this reason that companies like Layer1 are in the task of developing solutions to the big problems that Bitcoin mining could imply, developing tools that allow the use of renewable energies, taking wind energy as the central point.

It was known that the company already has the goal set to put into operation a system that allows the function of Bitcoin mining, using energy from this renewable source by mid-2020.

The installation of this system will take place in West Texas, in the United States, where the company managed to raise the money they would use for the assembly and development of the project. It was known that approximately 20 million dollars were needed to create the solution.

The company explained, through some reports, that using this energy for mining does not mean that it will only be used for this purpose. That is, the intention will not be to divert all the energy produced by the wind fields for the BTC mining. Layer1 commented that there are more important uses for that renewable energy.

“Renewable energies remain fundamentally under-utilized. Hence, they are not really a zero-sum game”, said spokesmen for Layer1.

This means that the use of this energy source for BTC mining will not be diverted from its actual uses. Thanks to the tool that Layer1 has developed, energy generation levels can be maximized by increasing its capacity and enhancing the crypto business.

Bitcoin mining requires large amounts of energy, it is for this reason that initiatives such as Layer1 will boost the sector and also allow the use of sustainable energy, supporting the preservation of the environment and helping to develop new alternatives for power generation, and using new forms of technology.

The Expensive Centralization of Bitcoin

Among the crypto world there is the common practice of asset mining. In the case of Bitcoin, it is one of the digital currencies with the highest mining volume in the whole world. And although this implies a growth in the crypto-market, the use of large mining machines for this process translates into huge amounts of energy.

Bitcoin requires large amounts of energy due to the complexity of its programming. It is for this reason that other mining systems with other cryptocurrencies have emerged. But, however, they have not had the same success and weight in the community as BTC mining.

Now, some companies are trying different alternatives to generate electricity with the aim to mine more cryptocurrencies without affecting other fields that require renewable energies. The idea is to potentiate and increase the adoption of cryptocurrencies.

By María Rodríguez

Xi Jinping, China’s President, Promotes the Adoption of Blockchain Technology

Andres Chavez
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Xi Jinping, China’s President, Promotes the Adoption of Blockchain Technology

It is common in the blockchain and cryptocurrency community that a piece of prominent news directly affects the price of the world’s most influential digital assets, such as Bitcoin, either positively or negatively depending on the development. It could be as simple as a high-profile figure talking up the industry, and that would be enough to drive up the price in most cases.

That appears to be the case this time around, as the President of the People’s Republic of China Xi Jinping, who is also the General Secretary of the Communist Party in the Asian country, stated that the nation needs to “seize the opportunity” that the blockchain technology is currently presenting.

The Blockchain Has Several Applications in China

Xi’s words came in the middle of the 18th collective study of the Political Bureau of the Central Committee on Thursday in Beijing. He also emphasized how the blockchain technology has several applications in his nation, covering things like business financing to public transportation and solutions in the fight against poverty.

In his intervention in the meeting, Xi observed that “we must take the blockchain as an important breakthrough for independent innovation of core technologies” to the present committee members.

He also stressed that “we must clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation,” which is music to the community’s ears. In fact, since the Chinese authority’s words, Bitcoin, which had been dormant and struggling to gain traction for weeks, showed a revival.

A Marked Surge

At the moment of writing this piece, Bitcoin was exchanging hands at $9,660.36, which was a $518.78 increment (the equivalent of 5.67%) over the last 24 hours. Not so long ago, it was hovering between $7,000 and $8,000.

The impact of Xi’s remarks has been evident, as there are no records or registers of him talking up the blockchain technology (which powers cryptocurrencies) ever before. These are believed to be his first in-depth words about the world-changing tech.

In the same theme, the President also stated that it would be “necessary to implement the rule of law network” in the already existing blockchain networks and systems, as well as in future ones. He said that a top-down approach is required, one that includes implementation, guidance, and regulation.

Increasing the Reach of Blockchain Testing

The influential authority observed that the testing of the blockchain technology should be widely available and widespread, and that there needs to be sizable investments in training platforms and “innovation teams” before thinking about implementing it.

Jinping also talked about creating the “Blockchain+” initiative, which would be an ecosystem alluding to personal development, including basic things like employment, food, education, and safety.

The president’s remarks are news worthy because the People’s Republic of China bans cryptocurrency use since 2017, thanks to a decision from the national bank. However, there seems to be recent advances on that front given that digital renminbis are being developed by the institution.

By Andres Chavez

After Restrictions of SEC, Telegram Tries to Negotiate and Avoid Losing Its Crypto-Project

Maria Rodríguez
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After Restrictions of SEC, Telegram Tries to Negotiate and Avoid Losing Its Crypto-Project

Telegram asks its investors to postpone the launch of TON and the launch of its cryptocurrency Gram by April 30th, 2020.

One of the most used instant messaging services in the world, Telegram, has announced its investors that, due to restrictions imposed by the United States Securities and Exchange Commission (SEC), it must delay the launch of its TON platform, whose official launch was scheduled for October 31st of the current year. However, due to the legal issues the company faces, the launch of TON has been postponed for April 30th, 2020.

Through an email sent by the company to its investors, Telegram announced them all about this situation. Now, Telegram expects its investors to approve a postponement of TON’s launch. The launch of its cryptocurrency project should be postponed too.

Specifically, the company detailed to its investors the situation they face with the SEC’s restrictions. Telegram explained them, in this way, the measure that prohibits the launch of the TON platform, as well as the prohibition of the token that would accompany this system, Gram.

According to the data offered by the mail sent to Telegram’s investors, the SEC does not consider Gram as a value duly registered.

The notification email was sent to investors who had joined the second round of fundraising Telegram made for the project. There are the details of the SEC’s restrictions.

“We have intended to launch the TON network in late October. However, the recent the SEC lawsuit has made that timing unachievable. We disagree with the SEC’s legal position and we intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other government authorities in advance of the launch of the TON network”, the document explained.

According to the contract between Telegram and its investors, a clause specifies that the launch time can be extended as long as the investors approve that postponement. But there are two groups of investors who are involved in the project. The first group made the acquisition of the tokens last February 2018, and the second one last March 2018. Although both groups have a certain amount of Gram purchased, one of them could agree to postpone the launch and the other one not.

With respect to the second group of investors, it is known that they have dated October 23rd to sign the postponement document. If it turns out that most investors decide not to sign the document, 77 % of the money invested will be reimbursed and a relationship with the purchase of these assets would end. Until now, there are not more details about the email that was sent to the first group of investors.

This delay may cause Telegram an additional disbursement of about $ 80 million. But the company will lose more money if most investors decide not to sign the postponement document.

Last October 11th, the SEC obtained a restriction measure against the launch of TON and the Gram cryptocurrency, which was scheduled to be launched by Telegram next October 30th or 31st. Now, it is expected that Telegram proceed legally to resolve the case. A hearing about this lawsuit will be held on October 24th in New York, the United States of America.

By María Rodríguez

Bakkt, the BTC futures, and Digital Assets Platform, Announces First Regulated Options Contract for Bitcoin

Andres Chavez
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Bakkt, the BTC futures, and Digital Assets Platform, Announces First Regulated Options Contract for Bitcoin

Bakkt, the Bitcoin futures exchange and digital assets platform founded in 2018 by the Intercontinental Exchange (ICE,) let the world know in the last few hours that it will launch the initial regulated options contract for BTC futures next month, most precisely, on December 9th.

The BTC futures exchange stated that the most crucial offerings of the Bakkt Bitcoin Options contract are options analytics, the opportunity to send and receive instant messages, block trades, conveniently low fees, capital efficiency, cash or physical settlement, and European style options, among others.

Features and Offerings

The last feature consists of an option contract that will limit the opportunity for early execution and will also reduce operational loads, according to information provided by the company.

The regulated options contract for BTC futures is, according to an explanation provided by the CEO Kelly Loeffler, based on clients’ feedack. The primary intentions are to hedge and obtain enhanced BTC exposure.

Bakkt said that “ICE Futures U.S. has self-certified the contract with the CFTC and we’re excited to leverage the benchmark futures prices and institutional-grade custody to meet the needs for a regulated options contract.”

Based on the Bakkt Monthly Bitcoin Futures Contract

Loeffler explained that the Bakkt Bitcoin Options contract will be modeled after the Bakkt Monthly Bitcoin Futures contract, a prominent type of Bitcoin futures contract launched with the Bakkt Daily Bitcoin Futures in September.

To be more specific, the firm will charge $1.25 per options contract from January 2020 on, after launching the initiative without a fee in December, per Loeffler.

“We’re committed to bringing trust and utility to digital assets and the options contract is an example of the many products we’re developing for regulated markets. The Bakkt Bitcoin Options contract will be based on the benchmark Bakkt Monthly Bitcoin Futures contract and represents another important step in developing this asset class for institutional investors, their customers and investors,” Bakkt said.

The announcement came just a few hours after BTC futures volumes on the platform achieved a new historic high when it comes to BTC futures contracts. The price of the world’s premier cryptocurrency kept falling in recent days, as it dropped approximately $500 on October 23rd, below the $8,000 mark.

Building Liquidity

“Since launching the Bakkt Bitcoin Futures just one month ago, we’ve been working closely with market participants to build liquidity, create market transparency and build open interest. Notably, we saw a record 590 contracts of Bakkt Bitcoin Monthly Futures change hands yesterday, October 23. We also completed a milestone with seamless physical deliveries in both our daily and monthly bitcoin futures contracts,” the firm announced.

At the dawn of the month, the Intercontinental Exchange (ICE,) which is the body behind the New York Stock Exchange and Bakkt itself, performed the first block trade of Bakkt BTC futures contract.

“Bakkt Bitcoin Futures have tight bid-ask spreads throughout U.S., European and Asian trading hours, and we continue to onboard new institutional and retail customers,” the announcement read.

By Andres Chavez

New Blockchain ​​Phone Admits a Complete Node of Bitcoin

Maria Rodríguez
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New Blockchain ​​Phone Admits a Complete Node of Bitcoin

In the crypto-world, there are devices to process nodes of Bitcoin, in addition to protecting vital information for blockchain users.

Recently, the phone manufacturer HTC launched a new mobile phone with the ability to process up to a full bitcoin node (BTC). Previously, the manufacturer would have launched phones which were classified as “blockchain mobiles”, but these devices would not have had the ability to support a full bitcoin node.

The news was known when the renowned manufacturer of Taiwanese origin participated in a meeting about Lightning held in Berlin. Recently, the company said its new device would have enough power to run a bitcoin node. In this way, the smartphone could allow the user to execute crypto-transactions and blockchain operations from anywhere in the world.

Referring to this main feature, the Director of the decentralized office of HTC, Phil Chen, commented that performing this operation is the most important thing a blockchain device can do, and that with this blockchain platform, anyone would have access to this technology.

“Full nodes are the most important ingredient in the bitcoin network’s resistance and we have reduced the entry barrier so that anyone can run a node”, Chen said.

The new Exodus 1s device results to be one of the most attractive on the market for crypto technology lovers. According to reports of different local media, the cost of the smartphone is around US $ 244.

With respect to the memory capacity necessary for the device to operate with the bitcoin ledger, the capacity of the phone can be expanded to 400 Gb, which would help support the BTC backup. It is known that currently the capacity needed to contain the BTC ledger is close to 250 GB of memory.

During the presentation of the mobile phone, the company recommended using WiFi network for bitcoin node processing. Among the main features of the new Exodus 1s device is that it could help cryptocurrency enthusiasts to process a hardware wallet so that users can store, manage and transfer the digital currencies. This way, the user can transfer the assets he is acquiring safely and from anywhere.

In addition, Chen specified that the default processing capacity of the phone will be 4 Gb RAM, and with an Android Oreo 8.1 operating system. He also said that they are currently developing tools that will be useful for financial processing. These tools will be done in the future with the device. Phil Chen also compared the phone with a financial institution.

“We are providing the tools to access universal basic finance; the tools to have a metaphorical Swiss bank in your pocket”, the director of the decentralized office of HTC concluded.

Finally, it was known that the HTC phone will be available in more than 27 countries, including countries in Europe and part of the Middle East. The device is not the first one in a series of blockchain mobiles, but it turns out to be the one with more capacity to handle the information of the users who make negotiations with cryptocurrencies and blockchain managements.

By María Rodríguez

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