Bitcoin’s Technicals Show Signs of a Bottom, Possible Short Term Rally: Analysts

Bitcoin’s Technicals Show Signs of a Bottom, Possible Short Term Rally: Analysts

Key technical parameters signal that top cryptocurrency Bitcoin (BTC) may be finding a bottom, and could even be headed for a short term price hike, according to analysts at Bloomberg Jan. 22. Bitcoin’s GTI Global Strength Technical Indicator is now at 35.6, which Bloomberg notes is “nearing oversold levels,” and the lowest level since December. The parameter indicates the coin has robust support at $3,000-$3,100, and is stabilizing around the $3,500 mark. Bloomberg gages the likelihood of a short term rally based on the GRI VERA Trend Signals indicator — VERA, which stands for Volatility Explosion Relatively Adjusted theory, is used to identify trends over multiple time spans. Having reportedly breached its lower VERA band limit yesterday, Bitcoin quickly rebounded to trade just above it — a behavior that Bloomberg suggests could signal a short term price surge. To press time, Bitcoin is trading around $3,600 — up 1.1 percent on the day, and down by around the same — 1.7 percent — on the week. The asset remains at over 80 percent down from its peak value in December 2017, when the coin hit over $20,000. In remarks earlier this week, United Kingdom-based investor and entrepreneur Alistair Milne predicted that Bitcoin is likely to repeat — and even exceed — its record-breaking price leap: “The probability that Bitcoin matches its ATH [all-time high] price again and doesn’t then continue past it seems very low. Each wave of adoption is an order of magnitude bigger than the last.” Yesterday, Adena Friedman, president and CEO of Nasdaq Inc., argued that for Bitcoin and other cryptocurrencies to evolve into a practical, useable invention with stable value, better “governance and regulatory clarity” for the sector is required.

Seed CX Launches Spot Bitcoin Trading in Bid for Big-Money Investors

Seed CX Launches Spot Bitcoin Trading in Bid for Big-Money Investors

Seed CX has taken its first big step to bring institutional investors to the crypto space. The Chicago-based exchange startup announced Wednesday that it had launched a bitcoin spot trading market for its major clients, offering a regulated platform with “a deep book of liquidity.” Interested clients can access the market through a web API, a graphical user interface or the financial information exchange (FIX) protocol, according to a press release. Seed CX, which has raised $25 million since its inception in 2015, is now offering a licensed exchange for institutional trading and settlement. At some point in the near future, it will begin offering a market for crypto derivatives regulated by the U.S. Commodity Futures Trading Commission (CFTC). “We’re offering truly institutional level support. We are live,” said Seed CX co-founder and CEO Edward Woodford. He told CoinDesk that at launch, the exchange will offer a bitcoin/U.S. dollar trading pair, with plans to add dollar pairs for ether, litecoin and bitcoin cash by the end of the month. “In February we’re going to be offering more trading pairs, so we’re going to be offering up euros and Japanese yen,” he added. Woodford explained that Seed CX’s offering targets institutions looking at the market after months of price declines, adding: “The narrative right now is ‘low prices, low prices, low prices,’ and the question is how do we respond to this. In a sense, we’ve launched months ago [by on-boarding early clients], but now we’re getting a whole bunch of clients looking to decrease their operational risk.” Managing risk As part of these efforts to decrease risk, the exchange plans to help investors with margin trading, use larger tick (minimum price movement) and contract sizes than retail trading platforms and employ tighter quote requirements for its clients. Clients can also post non-traditional assets (including digital assets) as collateral. All U.S. dollar deposits to the exchange will be stored in regulated banks and insured through the Federal Deposit Insurance Corporation (FDIC), while digital assets will be stored via Seed CX’s wallet infrastructure. Rather than storing all its clients’ crypto in one big pot, as many crypto exchanges do, Seed CX maintains segregated wallets for each client. As part of its pitch to potential clients, the exchange also noted that…

Gold Price May Offer Clues About Next Big Bitcoin Move

Gold Price May Offer Clues About Next Big Bitcoin Move

Bitcoin (BTC) traders could get cues from an apparent negative correlation that has developed between bitcoin and gold prices. Gold picked up a strong bid at $1,196 on Nov. 13 and jumped to $1,300 on Jan. 4, possibly due to a sell-off in the weakening U.S. dollar. The greenback was down against most currencies in last two months of 2018 on growing speculation that the Federal Reserve (Fed) could decrease or pause interest rate hikes in 2019. Bitcoin, however, did not benefit from that broad-based sell-off in the dollar. The cryptocurrency instead saw a revived bear market with a convincing move below $6,000 on Nov. 14 – a day after gold found takers around $1,200 per ounce. That price action indicates that the two assets are inversely correlated. Validating that argument is the 90-day correlation coefficient of -0.593. The statistical measure ranges from -1 to 1, with a negative number representing the inverse relationship between the two variables, while a positive number implies direct correlation. As a result, the leading cryptocurrency by market value could be influenced by the next move in gold prices. Currently, the safe haven metal is trading at $1,285, having hit a three-week low of $1,276 earlier this week. Meanwhile, BTC is trading in a narrow range above $3,500 for the 13th straight day. The prolonged period of consolidation could end with a strong bullish move if the corrective pullback in gold worsens. It is worth noting that correlation is not causation and only describes the relative change in one variable when there is a change in another. Bitcoin and gold chart As seen above, bitcoin and gold have moved in opposite directions since late November. Gold rallied 8.33 percent in seven weeks leading up to Jan. 4. During the same time, BTC depreciated by 50 percent. Further, gold’s repeated failure at $1,300 has established that psychological level as a stiff near-term resistance. Meanwhile, BTC has defended $3,500 since Jan. 11. The cryptocurrency could see a strong bullish move if the pullback in the yellow metal gathers steam. Bitcoin daily chart On the daily chart, BTC created a “long-tailed” candle at the crucial support of $3,500, signaling bearish exhaustion. A positive follow-through – that is, a convincing move above $3,615 (Tuesday’s…

PR: Bitcoin.com Partners With Anarchapulco

PR: Bitcoin.com Partners With Anarchapulco

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. Acapulco, Mexico – Anarchapulco is excited to announce that Bitcoin.com will be the title sponsor for Anarchapulco 2019, the world’s premiere Liberty event for voluntaryist thinkers and activists held annually in Acapulco, Mexico February 14-17, 2019. The principle tenant of Anarchapulco is everyone is responsible for themselves and that every relationship is based on voluntary participation rather than through forced servitude or coercion. Anarchapulco 2019 will feature over 150 speakers with keynotes from Dr. Ron Paul, Judge Andrew Napolitano, Doug Casey, David Icke and Cynthia McKinney on topics from financial freedom to physical freedom. Bitcoin.com is the premier source for everything Bitcoin related; from your personalized wallet to purchasing and selling bitcoin and bitcoin cash to the latest news in the crypto world. Bitcoin.com was started in 2015 by visionary entrepreneur Roger Ver, a fervent believer in the use of decentralized technology (blockchain) to create market-based centralization solutions for a more free world. Ver has said “For the first time in human history, anyone can send or receive any amount of money with anyone else, anywhere on the planet, conveniently and without restriction. Bitcoin Cash and digital currencies are the best tools the world has ever seen to accomplish a better, more free world. Anarchapulco is where you can experience that free world today.” For a full list of speakers and activities as well as tickets go to www.Anarchapulco.com Join the conversation FB/TW/IG/YT @Anarchapulco #Anarchapulco2019 @Bitcoin ABOUT BITCOIN.COMBitcoin.com is your premier source for everything Bitcoin related. We can help you buy bitcoin, choose a bitcoin wallet. You can also read the latest news, or engage with the community on our Bitcoin Forum. Please keep in mind that this is a commercial website that lists wallets, exchanges and other bitcoin related companies. ABOUT ANARCHAPULCO ANARCHAPULCO is the world’s premiere Liberty event for Voluntaryist thinkers and activists held annually in Acapulco, Mexico. Started by Jeff Berwick – Activist, and Host & Producer of The Dollar Vigilante and Anarchast, in 2015, the event has grown exponentially to the point where in…

Tidbits: Peter Todd on Passphrase Memorization, Antonopoulos Explains Transaction Fees

Tidbits: Peter Todd on Passphrase Memorization, Antonopoulos Explains Transaction Fees

News Tidbits is a roundup of talking points from across the cryptosphere. In this edition, Peter Todd suggests memorizing randomly generated passphrases to secure recovery keys. Amaury Séchet explains how the BCH community faces an uphill battle with adoption, and Andreas Antonopoulos explains why transaction fees don’t show up as a transaction output in the block explorer.  Also read: Hollywood Actor Kevin Connolly Directs New Television Pilot ‘Cryptos’  Peter Todd Recommends Memorizing Randomly Generated Passphrases Cryptographer Christopher Allen recently asked his followers if they keep redundant copies of their own recovery keys. One commentator responded to the thread, arguing that it was safe to keep multiple copies of recovery keys as long as they are properly protected by a good passphrase. Adding to that train of thought, Bitcoin pundit Peter Todd explained that it was important to use and memorize randomly generated passphrases to protect recovery keys. Todd also practices this himself, because unauthorized access of recovery keys is riskier than losing access to them. Personally, I *do* rely 100% on memorizing randomly generated passphrases for quite a lot of stuff, because I considered unauthorized access more of a risk than losing access. But I also have unencrypted backups of other things. Case by case decisions. — Peter Todd (@peterktodd) January 22, 2019 Amaury Séchet on BCH’s Uphill Battle With Adoption Bitcoin ABC lead developer Amaury Séchet has explained how he has been warning the crypto community about negative merchant adoption since 2017. In the past, BTC users were able to purchase Dell computers, Steam games and goods from numerous merchants with BTC. People who joined the cryptocurrency space over the last 2 years or so (probably the majority by now) may not realize this, but you used to be able to purchase @Dell computer, games on @steam_games and numerous shops. 1/2 https://t.co/W7kTla58VF — Deadal Nix (@deadalnix) January 22, 2019 Séchet went on to explain that BCH has fixed the issues that caused merchants to stop accepting BTC as a means of payment, but the BCH community is now facing an uphill battle to reboot merchant adoption. He finished the thread on a hopeful note, explaining that increased merchant adoption could help hasten the return of a crypto bull market. Andreas Antonopoulos Explains Transaction Fees Mastering Bitcoin author…

Pennsylvania Clarifies That Crypto Exchanges Are Not Money Transmitters

Pennsylvania Clarifies That Crypto Exchanges Are Not Money Transmitters

Pennsylvania’s Department of Banking and Securities (DoBS) has clarified that crypto exchanges and service providers do not require a money transmission license to operate in the state. The DoBS published the new guidance for the local crypto industry on Wednesday, following a number of enquiries from businesses, it said. The department explained that as bitcoin and other cryptocurrencies are not “money,” the Money Transmission Business Licensing Law or the Money Transmitter Act of Pennsylvania does not apply to crypto trading platforms. According to the act, only fiat currency or the U.S. government-issued currency is considered money. “To date, no jurisdiction in the United States has designated virtual currency as legal tender,” the department said. The act states that parties conducting the business of transmitting money need to be licensed if they transfer fiat currency and must charge a fee for the transfer. However, as crypto exchanges “never directly handle” fiat currency and the transactions are conducted through a bank account, these “are not money transmitters” that require the license, according to the guidance. Other businesses in the sector, such as cryptocurrency kiosk, ATM and vending machine providers are also not money transmitters. The DoBS said: “In both the one-way and two-way Kiosk systems, there is no transfer of money to any third party. The user of the Kiosk merely exchanges fiat currency for virtual currency and vice versa, and there is no money transmission.” Pennsylvania’s clarification on the license arrives after a three-year delay. Back in January 2016, the government was seeking to update the state’s definition of money to cover cryptocurrency businesses, but the initiative stalled at the time due to a budget impasse. The scenario may be different for firms dealing with initial coin offering (ICO) tokens at the federal level, however. In March 2018, the Financial Crimes Enforcement Network (FinCEN) said: “An exchange that sells ICO coins or tokens, or exchanges them for other virtual currency, fiat currency, or other value that substitutes for currency, would typically also be a money transmitter.” Pennsylvania State Capitol image via Shutterstock 

Bitfury Releases Merchant, Developer Tools for Bitcoin’s Lighting Network

Bitfury Releases Merchant, Developer Tools for Bitcoin’s Lighting Network

Blockchain technology firm Bitfury has released a suite tools aimed to drive adoption of bitcoin’s lightning network. Although the network is still under development, Bitfury announced a comprehensive product list to support the tech on Wednesday, including an open-source lightning wallet and hardware and software tools for merchants and payment processors to accept payments. It also released developer tools and a public lightning network node called “The Peach” to let bitcoin users open or create payment channels. The product bundle is designed to make using the lightning network “easier for vendors and consumers to use,” Bitfury said. A layer-2 payments technology that debuted on bitcoin early last year, lightning enables transactions with near-instantaneous confirmation speeds without having to store information directly on the blockchain. The new tools were built by Bitfury’s Lightning Peach team – the internal group focused on lightning development. “By providing these products to the market, Bitfury is encouraging worldwide adoption of this technology and providing unparalleled support to consumers and merchants,” said Valery Vavilov, CEO of Bitfury. The company announced last Tuesday that it had integrated lightning technology for use on cryptocurrency exchange BTCBIT. Saying that users of the exchange could now “benefit from faster, lower-cost payments,” a Medium article also specified that the integration would “help more people use bitcoin in their everyday lives in a faster and more convenient way.” Marketed as a “full-service blockchain technology company” on its official website, Bitfury closed an $80 million funding round led by venture capital firm Korelya Capital last November. While the company is best known for manufacturing specialized cryptocurrency mining hardware, such as the “Clarke” ASIC chip, Bitfury is now looking to spur global adoption of blockchain technology as part of its corporate agenda. Bitfury Group previously announced a partnership with blockchain-based payment processing system Paytomat last year, linking Paytomat’s digital wallet and merchant app to the lightning network. Earlier that same year, the company launched a blockchain toolkit dubbed Crystal for users to identify and investigate criminal activity on the bitcoin blockchain. Yesterday, it also announced two new executive-level hires from Element Capital Group and enterprise software vendor Panaya to boost this division. Toolkit image via Shutterstock

McAfee to Lead 2020 Presidential Campaign ‘in Exile’ After Alleged IRS Indictment

McAfee to Lead 2020 Presidential Campaign ‘in Exile’ After Alleged IRS Indictment

United States entrepreneur and serial cryptocurrency advocate John McAfee has fled the country to conduct his 2020 presidential campaign, he said in a video statement Jan. 22.  McAfee claims he has been indicted by U.S. tax authorities and plans to run his campaign from a boat in international waters. The controversial crypto community figure, who plans to run for president of the U.S. next year, said he had learned that a grand jury had been convened against him by the Internal Revenue Service (IRS). While he said he did not know the exact nature of the allegations against him, McAfee added he had not paid taxes for the past eight years. “I’ve made no secret of it; I’ve not filed returns,” he said in the first of several video blogs uploaded to Twitter on Tuesday, adding: “The IRS has convened a grand jury in the state of Tennessee to charge myself, my wife […] and four of my campaign workers with unspecified IRS crimes of a felonious nature.” McAfee was speaking from a boat in an unknown location, reportedly in international waters, from where he said he would conduct the presidential campaign through the use of proxies on U.S. territory. The tech mogul has made a name for himself as an outspoken advocate of cryptocurrency in recent years. Perhaps most infamously, he publicly wagered “I will eat my d**k on national television” if the price of Bitcoin (BTC) did not hit $1 million by 2020. That particular bet has extended beyond social media, with even a dedicated tracking website appearing to keep audiences aware of how likely it is McAfee would need to follow through on his word. Other activities have been less successful. Last year, McAfee endorsed reportedly “unhackable” Bitcoin wallet Bitfi, similarly betting the online community no one could compromise it. When someone evidently did, a social media battle ensued before Bitfi ultimately withdrew its security claims.

Crypto Exchange Bithumb Seeks US Listing via Reverse IPO

Crypto Exchange Bithumb Seeks US Listing via Reverse IPO

Bithumb, one of the largest cryptocurrency exchanges by trading volume, is looking to go public in the U.S. through a reverse merger. Blockchain Industries, an investment firm focusing on the crypto and blockchain industry and traded on the U.S over-the-counter markets, announced Tuesday that it had signed a binding letter of intent agreement with Singapore-based BTHMB Holdings, the holding company of Bithumb, for the reverse merger deal. A reverse merger is also known as a reverse initial public offering (IPO), wherein a private company acquires a publicly listed company to bypass the lengthy and complex process of a conventional IPO. Once the deal goes through, the combined entity would be known as Blockchain Exchange Alliance (BXA), potentially becoming the first U.S.-listed crypto exchange. Both parties aim to complete the deal by March 1, according to the announcement. BTHMB Holdings has already agreed to put $1 million into an escrow account as a consideration for the deal, which is still subject to due diligence review by the parties involved, as well as a final agreement on terms and valuation. Patrick Moynihan, CEO of Blockchain Industries, said that the deal is expected to bring “liquidity, accessibility and expansion” to the blockchain sector, adding: “By merging with BTHMB/BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus.” Through the deal, BTHMB Holdings plans to expand its business operations in North America, the statement states. The news comes months after Bithumb sold over 38 percent of its ownership to a consortium based in Singapore, owned by plastic surgeon Byung Gun Kim, for about $350 million. Kim, in Tuesday’s statement, said: “By unifying our businesses, we benefit from the focused expertise of Blockchain Industries. As a result, … we expect quality results from this merger.” In June 2018, Bithumb was hacked for nearly $31 million in cryptocurrency. Later the same month, the exchange claimed that it had reduced the losses to $17 million after retrieving some of the funds. In a similar move last year, billionaire investor Michael Novogratz chose the reverse takeover route and merged his crypto merchant bank, Galaxy Digital, with Toronto-listed shell company Bradmer Pharmaceuticals in order to get listed in Canada. Bithumb image via Shutterstock

$16 Million Now Believed to Have Been Stolen in ‘Weird’ Cryptopia Hack

$16 Million Now Believed to Have Been Stolen in ‘Weird’ Cryptopia Hack

News Details have so far been murky regarding millions of dollars worth of tokens stolen from New Zealand-based cryptocurrency exchange Cryptopia on Jan. 14. But data company Elementus has been investigating and now says the hack was different from previous attacks of this nature – and the amount stolen is much higher than originally thought.  Also read: Swedish Trader Expects to Pay 300% of Crypto Profits to Tax Agency Details Becoming Clearer in ‘Weird’ Hack Last week Cryptopia became the latest exchange to be hit by an attack. The Christchurch-based platform had initially announced that it had taken down its services for “unscheduled maintenance” before revealing it had “suffered a security breach which resulted in significant losses.” Since then, details have been unclear and the amount lost has not been made public. Police in New Zealand announced that they were working with the exchange to figure out precisely what happened. But data firm Elementus has since started to provide information, including figures revealing how much was taken, which it claims to be around $16 million in ethereum (ETH) an ERC20 tokens. The company told news.Bitcoin.com that this hack was particularly unusual as the theft was conducted in a number of small operations using a number of wallets. “Many different wallets were involved, which is weird. With other hacks we have seen in the past, they just took the money and tried to launder it in one shot. But this guy has been very careful and has done many transfers in small amounts,” Nuria Gutierrez, the co-founder of Elementus said. “I guess it’s smart – and cheap.” Gutierrez added that stealing tokens in small amounts and with many wallets it a better way to avoid detection and being traced. Elementus revealed data showing that of the of the $16m that was stolen, the vast majority remains in two wallets controlled by the thieves. The hackers have been shuffling the funds around in small pieces and gradually moving them into exchanges to cash out. Over 76,000 different wallets, none of which were smart contract-based, were used, meaning the thieves must have gained access to not one private key, but thousands of them, according to Elementus. And instead of withdrawing the funds as fast as possible, they took their time extracting…