Bitcoin’s Price Loses USD 8,000 Level as Bulls Surrender

Willmen Blanco
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Bitcoin’s Price Loses USD 8,000 Level as Bulls Surrender

The cryptocurrency par excellence seems to have bowed to the bearish pressure developed since June. The bulls can consider Bitcoin’s experience regarding great rallies and the corrections that finally led to double its prices.

The price of Bitcoin had been relatively stable for several weeks at the level of USD 8,000, and even a few days ago it tested its luck with an attack at USD 8,500. However, the most popular digital currency of the world seems to have bowed to the bearish pressure, which closed at USD 7,890 on the morning of October 18th.

The level that was being lost that morning is a strong support for Bitcoin, so if it fails to recover in the European session, falls could accelerate. Under these conditions, the most immediate support must be placed around 7,840 dollars, the lower limit of the Bollinger Bands, and a little lower, at 7,780 dollars, where it exceeds the moving average of the last 100 sessions, which already stopped some bearish attempts in the month of September.

Below, there is relevant support at USD 7,500, according to Spanish analyst Javier Molina. According to him, losing the USD 7,800 level would lead to the USD 7,500 level. The situation is complicated as the price action has been developed in a bearish channel since the month of June, with a series of dangerous decreasing highs that do not augur well, unless prices are aimed at breaking the USD 10,200 level.

The bad news is that the bearish trend is still intact and the investment sentiment does nothing but deteriorate. From the highs at USD 12,733 at the end of June, Bitcoin’s fall now exceeds 38%. However, during the year it has had a rise of 110%. The last bastion on which the bulls place their hopes is at USD 7,400. As a consolation, the bulls can consider something that has already occurred several times before, which is that when Bitcoin has experienced a great rally and then corrected 40%, it has finally doubled its prices. As a consequence, the ground of the current fall might be very close.

From a fundamental point of view, the flow of news that has reached the market during the last sessions has not been very positive either. The most negative are the problems undergone by Libra, the digital currency promoted by Facebook, after the project was abandoned by some very relevant companies such as MasterCard, Visa, eBay and PayPal.

In addition, a few days ago it was reported that the regulator of US markets, the Securities and Exchange Commission (SEC), rejected the approval of the exchange-traded fund (ETF) (ETF) promoted by Bitwise Asset Management and managed by NYSE Arca. However, this rejection has just been suspended and the decision will be reviewed. According to the SEC, the promoters have not been able to demonstrate that “fraudulent and manipulative acts and practices” in the Bitcoin market could be avoided, in a disapproval order issued last week. Currently, it is still not clear how long it will take the SEC commissioners to conduct the review.

By Willmen Blanco

Bitcoin Will Be Able to Change Humanity, according to Stafford Masie

Willmen Blanco
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Bitcoin Will Be Able to Change Humanity, according to Stafford Masie

The former CEO of Google Africa said in a recent conference that Bitcoin is the key change the future of the humankind. He believes that the cryptocurrency will help those without access to electronic forms of distribution of value or cash.

Stafford Masie, a computer scientist and general manager of WeWork South Africa, said that Bitcoin (BTC) will change the future of humanity.

The former CEO of Google Africa explained that the cryptocurrency will be able to help humanity more than any other innovation. In a conference, he said that an exchange of value without intermediaries is the greatest gift that humanity has received technologically.

He also claimed that crypto wallets are misunderstood and misused. In addition, he assured that their use is being distorted so as to make them look complicated.

Although Masie believes that BTC will be able revolutionize world trade, he thinks that its main potential is not for developed economies. On the contrary, he considers that the cryptocurrency will be of help for “third economies.”

He said that a third economy is an economic model in which people do not have access to electronic forms of distribution of value or cash. For example, the people who live two hours outside of Shanghai City, the central coast of China, will use Bitcoin to trade and unlock international transactions outside existing frameworks in a way that cannot even be imagined.

In addition to this, Stafford Masie addressed the issue of fundamental misconceptions that people have about Bitcoin, one of which is its alleged piracy. He emphasized that exchange houses are the ones that can be hacked rather than Bitcoin.

Innovation and WeWork Problems

Stafford Masie also mentioned the fact that technology corporations can be considered to be a milestone for global markets.

When combined, the value of the net assets of Apple, Amazon, Alphabet, Facebook and Microsoft represents the same value as the combined S&P 500 companies. This is something extraordinary, since a concentration of wealth like this has never been seen in history before. Together, these companies have a value that is equivalent to the gross domestic product rates of some countries.

On the other hand, he also explained some of the problems faced by the company that he leads. WeWork, which experienced a dramatic growth, withdrew its initial planned public offering of USD 47 billion. The company did this at the beginning of this year amid a series of controversies about its business and government models.

At the beginning of this week, it was reported that Masie’s company was ready to fire 2,000 of its employees imminently, a figure that represents around 13% of its workforce.

This can lead many to doubt about how reliable Masie’s words really are, considering the existing controversy over the company that he manages.

The main cryptocurrency of the world allows exchanging value without third parties, which makes it the greatest technological gift. It will particularly help those people who do not have access to electronic forms of distribution of value or cash. Finally, its levels of security are higher than those of exchange houses.

By Willmen Blanco

German Finance Minister Considers that Libra Should Be Prevented

Maria Rodríguez
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German Finance Minister Considers that Libra Should Be Prevented

The project has been objecting of controversy during the year. The recent exit of five important partners has generated distrust towards the initiative.

Facebook’s new crypto-project, Libra, has faced some problems from governments around the world against this idea; this is because they consider Libra a risk since the company has a lot of personal information about its users. Additionally, the exit of five of the most important partners: MasterCard, eBay, Stripe, and Visa is worthy to pay attention to.

The initiative of the social media giant generated immediate political opposition in Europe. For instance, French Finance Minister Bruno Le Maire recently said the digital currency should not be seen as a replacement for traditional currencies. Now, German Finance Minister comments that the asset should be prevented.

Olaf Scholz, the German official, criticized Facebook’s project. This way, he reaffirmed his previous statements about that topic. He claimed that the creation of a new global and digital currency should be prevented.

“We will carefully monitor the situation with all the means at our disposal. I am not in favor of the successful creation of such a world currency because that is the responsibility of democratic states”, he said.

The German civil servant spoke with journalists during some meetings at the International Monetary Fund (IMF) and World Bank, in Washington. He assured he is “worried” about the situation and the potential international risks of launching a global digital currency as Libra, which would be launched in 2020 if there are no more problems.

Other Negative Opinions

Recently, Le Maire called on the Group of Seven (G7) central bank governors, guardians of the monetary system, and other representatives to work in a report on Facebook’s project. His concerns, according to what he said, is privacy, money laundering and terrorism finance.

“This money will allow this company (Facebook) to assemble even more data, which only increases our determination to regulate the Internet giants”, Le Maire said in Parliament.

“It is out of question” that Libra “become a sovereign currency (…) It can’t and it must not happen”, he affirmed during a radial interview.

Similarly, Markus Ferber, a German member of the European Parliament, said Facebook could become a “shadow bank” and that regulators should be on high alert. This consideration is due to the social network has more than two billion users and its digital coin, Libra, could replace some traditional banks.

Also, The Group of Seven released a report where it argues that a digital asset like Libra should not be allowed to launch until the international risks they represent are addressed properly.

But Bitcoin is the most popular –and also the first- cryptocurrency which has 10 years of history. Nevertheless, it is not accepted for governments of countries like Iran so the way for Libra could be even worse.

Scholz said that the financial sector requires certain changes, but the autonomy of States should be respected. He added that stablecoins –which are anchored to fiat currencies or other assets- could represent a risk.

“There is a need for reform, nothing that cross-border payments in particular should become faster and cheaper, but without jeopardizing the autonomy of States”.

Currently, some crypto-users doubt whether Facebook’s project will really be launched after so many obstacles. The community wait for the outcome of the controversial history of Libra.

By María Rodríguez

Increase in Crypto Whale Bitcoin Movements in Recent Days

Willmen Blanco
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Increase in Crypto Whale Bitcoin Movements in Recent Days

The cryptocurrency storm still has not cleared completely and crypto whales have continued moving their BTC.

The storm in the cryptocurrency market has variations, and that is why crypto whales have continued moving their assets, especially in Bitcoin, in recent days. In order to know what to expect from this situation, it is advisable to read the following information.

Crypto Whales Resume Bitcoin Movements

Although the market has had recovery peaks, it is currently below USD 8,000 and crypto whales have thus been making movements around 10,000 BTC. They are also moving them to exchange platforms, such as a movement of 1000 BTC on Thursday, October 17th, from an unknown wallet to OKEx.

Other movements that are also noted are those movements of more than 600 BTC to be changed in Binance; however, movements of 10,000 BTC are still impressive. In this case, the money that was moved earlier on Thursday went to Binance a few hours later.

Then, divided but equally large movements were observed on the platform. This could indicate that whales are generating a strategy in which they place on the market the coins that they had been preserving during the time of general cryptocurrency price drop, especially that of Bitcoin.

These movements were divided into figures of about 2500 BTC in order to try not to disrupt the market.

Other cryptocurrencies

The same as with BTC, XRP movements are also observed on other platforms such as Liquid. However, the amount of movements is smaller than before, since Bitcoin has recovered considerably. All the movements exceed 30,000,000 XRP.

Likewise, USDT remains one of the preferred cryptocurrencies among crypto whales. However, it is obvious that if it is compared with previous reports, not so many movements are simultaneously observed any longer. The only and most prominent within a period of 24 hours was generated for an amount of USD 20,000,000.

Other movements of Ether were observed but in smaller quantities and figures. It is obvious that Bitcoin is moved again, at a time when whales are basically exchanging Bitcoin. Curiously, it is divided into smaller movements along various platforms and hours.

Besides, the hours at which these movements are made are particularly at night. At the moment, the injection of cryptocurrencies into the market can stimulate purchase and sale transactions, which had been slowed down a few weeks ago due to the feeling of panic about market prices. Consequently, there are those who are buying Bitcoin due to its repeated drops and anticipating complete recovery in the medium term.

Those who are interested in acquiring Bitcoin should take advantage of daily prices, since the trend is not yet defined. At the moment, a drop like that of previous weeks is not expected, and the price of the cryptocurrency today will continue to be lower than in the following weeks.

Those who have the cryptocurrencies that they acquired during this drop are moving them so that they can obtain profits. For that reason, it is expected that high amounts of Bitcoin will continue to be transferred in the days to come.

By Willmen Blanco

Binance at 125x leverage for Bitcoin-Tether Futures

Willmen Blanco
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Binance at 125x leverage for Bitcoin-Tether Futures

Here is being presented the new leverage that Binance is launching for its Bitcoin-Tether Futures, increasing to 125% of the original value.

As it has been observed in recent months, particularly in the month of October, the subject of Bitcoin Futures has been controversial, with accusations that hit the entire market or praises for being a financial innovation. It has been highlighted that the main representative of the subject was Bakkt, until the appearance of Binance as a competitor. Today’s news is that Binance has recently announced a new leverage for Bitcoin-Tether Futures.

News

As of last Friday, October 18th, futures traders on their platform have been able to choose leveraged positions between 1x and 125x. It should be noted that before this change, it could only be done up to 20x. Therefore, Binance’s leverage has increased to 625% of what it was before.

It has been seen that there is an increase in institutional participation in the trade of Bitcoin-Tether futures. The CEO of Binance Changpeng “CZ” Zhao said that institutions are flocking to Binance futures. The firm is providing a product with superior stability and performance, since the market has been demanding one.

Impact

Leading economist and cryptographic skeptic Nouriel Roubini has previously argued that, by providing such high leverage, platforms expose traders to too high a risk.

Considering that, the greater the leverage, when a fall occurs, this loss is equivalent to the leverage. What Roubini raises is that this 125x affects both possible gains and losses.

When it was the right time, Binance responded that its Bitcoin Futures contract provides a built-in hedging tool to help operators manage that risk. In addition, the exchange said that it is providing an “insurance fund.” According to them, this helps limit the possibilities of automatic deleveraging.

This announcement comes in the midst of tighter competition in the Bitcoin Futures space. The Intercontinental Exchange Bakkt Futures market had its launch in September. Although the initial volume of the exchange disappointed critics, the exchange has already made its first block exchange for two institutional investors.

Expectations

As stated in the previous paragraph and at the beginning of the article, the Bitcoin Futures market is currently in a state of uncertainty. According to Nouriel Roubini himself, it is normal that in new financial markets people begin to seek to understand it.

However, he highlights that it is advisable to learn from past mistakes, highlighting again the issue of risk with high leverage such as that of Binance.

To summarize

Binance’s leverage increase since October 18th has led many institutions to massively enter into the trade of Binance futures. There is now a product with much better stability and performance, which is aimed at meeting the demands of the market.

Although traders are at risk with the high leverage, Bitcoin Futures contract provides a tool for managing that situation. Besides, Binance has made a block exchange for two institutional investors, which adds to the reasons for investors to trust the exchange platform.

Despite the uncertainty in the Bitcoin Futures market, investors are advised to understand that that kind of issues normally occur.

By Willmen Blanco

Cryptocurrency to Be Launched by Bank of Canada

Willmen Blanco
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0
Cryptocurrency to Be Launched by Bank of Canada

The Bank of Canada has begun to experiment with blockchain in order to create its own cryptocurrency. This new digital asset might be of great help to police and prosecutorial bodies.

Many institutions, companies and organizations claim that cryptocurrencies may be a threat, and thus they should be treated with caution. The Bank of Canada knows it, which has led it to consider creating its own cryptocurrency. This new digital asset offers the same advantages that can be found in all others, but providing greater security.

Reasons for Creating the Cryptocurrency

On Wednesday, October 16th, it was reported that the Canadian central bank is experimenting with blockchain technology with the objective of lunching its own cryptocurrency. Supposedly, the reason for this is the institution’s belief that creating a public cryptocurrency can be an excellent way to combat the danger posed by existing cryptocurrencies.

This was stated in a document entitled Central Bank Money: The Next Generation, which was addressed to Stephen Poloz, Governor of the Bank of Canada. It should be mentioned that the document expressed the bank’s need to innovate in order to stay in the game. This new CBDC (central bank digital currency) would be supported by the central bank and have the convenience and security that electronic payments deserve.

What the Cryptocurrency Will Offer

Like any other cryptocurrency, it will offer the possibility of making long-distance payments efficiently and securely. However, it will also provide greater security, since it is a token that will be supported by a recognized financial institution.

The document also stated that transactions conducted with this cryptocurrency might be monitored by security authorities. In this way, the risk posed by cryptocurrency operations will be combated, since the information on the transactions would be supported and shared with police and tax entities.

Investing in the New Cryptocurrency

Although it is not exactly a cryptocurrency, since it is a CBDC, it might become a good means of investment.

It is worth mentioning that, it will very probably be designed as a stablecoin so that it will maintain a stable price. Therefore, it would not present as much volatility as common cryptocurrencies. However, it is important to clarify that they are assumptions, since the institution has not provided official statements in this regard.

Effects on the Crypto World

These statements represent a positive impact for the crypto world as, with the creation of new cryptocurrencies with other qualities, their concept will evolve. However, this is not the first or only proposal of a CBDC, since the Bank of China had already announced that it would experiment with blockchain and launch its own cryptocurrency.

Therefore, other countries will very probably start experimenting with similar projects. This situation would increase investment options, as well as improve payment systems using blockchain.

Probability that Cryptocurrencies Are Threatened

Although the new CBDC of the Bank of Canada is used by many people, both through the payment system and to invest, this proposal will not pose a threat to either Bitcoin or the other existing cryptocurrencies. The reason for this is that Bitcoin, Ethereum, Ripple and the other cryptocurrencies have already proven to be reliable. Additionally, their payment platforms are already extremely efficient.

Therefore, the only thing that will change in the paradigm is that there will be new options to be taken when needed, which is certainly favorable. However, it was mentioned that the cryptocurrencies that are already on the market will not be affected in any way.

By Willmen Blanco

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