Day: September 8, 2018

The world’s second largest exchange Hong Kong-based OKEx, went into emergency mode in late July when a trader took up a 4.16 million Bitcoin futures position listed on the exchange.

The position, worth $416 million, triggered the exchange’s failsafe risk management system forcing futures traders to give up about 18 percent of their profits.

OKEx’s “socialized clawback mechanism,” was called on, which takes a percentage of profit from other short position traders to cover any financial shortfall. This procedure happens when an exchange’s insurance fund is not enough to cover margin call losses.

The client refused to liquidate part of his long position order when approached by the exchange forcing OKEx to freeze his account to prevent further problems.

This incident was seen by the industry as an example of how further regulation is still needed in order to offer a heightened level of protection to exchanges; such as in conventional stock exchanges where brokerages act as a buffer for ensuring clients have sufficient margin deposits and risk management in place on margin calls. Normally exchanges allow their clients to leverage their positions by as much as 20 times.

Soon after the incident, the subsequent drop in the Bitcoin price forced the exchange to liquidate the clients’ account as the required maintenance margin ratio wasn’t sufficient. The shortfall was 1,200 Bitcoin then valued at $9 million, forcing OKEx to add 2,500 of exchange funds into the insurance fund to limit the clawback.

OKEx released a statement explaining that a very large trade occurred which couldn’t be supported:

“An enormous long position in BTC0928 futures contract was force-liquidated at 20:17:14 July 31, 2018 (Hong Kong Time, UTC+8). Due to the sheer size of the order, our risk management system may be triggered to activate the societal loss risk management mechanism.”

Questions have been asked as to how the company’s risk management system allowed such a large trade in the first place, only triggering the system after the trade had been made.

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The main Australian financial regulator has just published its 2018 to 2022 corporate plan. In the document, the Australian Securities and Investments Commission (ASIC) states that it will keep a watchful eye on cryptocurrency and will regulate it to minimise harm whilst preserving the innovative potential of the space.

ASIC’s Focus on Harm Reduction Consistent with Previous Stance on Crypto

The Australian Securities and Investments Commission, which confusingly (at least for us crypto folks) goes by the acronym ASIC, published its 2018 to 2022 corporate plan yesterday. During the report, the financial regulator once again addresses the cryptocurrency and initial coin offering (ICO) industry.

ASIC states that it will be carefully observing the cryptocurrency space with particular attention to ICOs and token offerings.

Consistent with their earlier statements on the industry, the focus will remain on harm reduction as opposed to a widespread crackdown. Part of this will involve ensuring that Australian-based ICOs and those offerings targeting the Australian public are all conducted in accordance with existing legislation.

The document states:

“We will continue to focus on monitoring threats of harm from emerging products (e.g. ICOs and crypto currencies), cyber resilience, the adequate management of technological solutions by firms and markets, and misconduct that is facilitated by or through digital and/or cyber-based mechanisms.”

The corporate plan goes on to state that there will be efforts made at bringing digital asset exchange platforms more in line with other financial services in terms of regulations. It states that the regulator will be “developing [its] approach for applying the principles for regulating market infrastructure providers to crypto exchanges.”

Finally with regards to the crypto and blockchain space, the document published today states that ASIC will be looking closer into the regulatory technology sector. This will involve a close monitoring of the impact that a blockchain-based replacement of the previous CHESS system on regulation.

The reaffirmation of a nurturing yet protectionist policy towards the digital currency space puts Australia alongside the likes of Switzerland in their approach to the financial innovation.

The approach of these more progressive nations provides stark contrast to the draconian legislation coming out of China. Somewhat unsurprisingly, nation states allowing the most freedom to use and invest in cryptocurrency mirrors are generally the same that offer the most individual liberty to their citizens, and vice versa.

Featured image from Shutterstock.

The post Australia’s ASIC Reaffirms Crypto Protection Stance Without Stifling Innovation appeared first on NewsBTC.

The Ethereum bearish market hasn’t come to an end yet.

The month of September has been particularly hard on the cryptocurrency as it quickly lost the $300 handle earlier this month, and is already threatening to consistently dive below the $200 area.

Mike McGlone, a commodity strategist at Bloomberg Intelligence, said Ether may fall further to a support target of $155.

Ethereum Crisis Driven by Increased Competition, Lack of Mainstream Adoption and FUD

The open-source, public, blockchain-based distributed computing platform and operating system was once an innovative product to help developers create functional blockchain applications. This was without a middleman or counterparty risk.

However, as the cryptocurrency market grows, currently with 1,926 different cryptocurrencies available for trading on 13,731 exchanges worldwide, more blockchain networks are disputing what once was the Ethereum territory.

A number of promising distributed ledger technology networks have come to challenge Ethereum’s throne. This includee EOS (which was officially launched in June 2018), NEO (which targets large scale enterprises), Cardano, Aeterenity, ICON, Lisk, Stratis, and Waves.

In addition to the overwhelming competition in 2018, Ethereum has faced sell-offs as blockchain start-ups paid in ETH during their initial coin offerings (ICOs) cashed out to cover expenses.

The negative narrative, however, may be a creation of its competitors, according to Angel Versetti, CEO and co-founder of blockchain-powered network Ambrosus. She told CNBC that Ethereum has been proven to work well compared with other, newer blockchains.

“There are more stakeholders with concentrated power (or large stake of holdings of coins) among other altcoins, who are promoting a narrative that Ethereum’s competitors are better and stronger. It’s important to bear in mind, however, that these predictions are not based on fact, and are merely speculative in nature.”

Bloomberg Intelligence commodity strategist Mike McGlone expects Ether to fall further to a support target of $155 “as it faces increasing competition, market volatility, and a maturing industry.”

Kyle Samani, managing partner at crypto hedge fund Multicoin Capital, said: “People started building apps and software, but the market got ahead of itself — they are realizing you have to be in it for the long haul, and some investors don’t have the patience.”

Matthew Newton, market analyst at eToro, said that flaws in Ethereum have been found but “there is also a lot of FUD being spread around about the death of ether, which may be contributing to an emotional sell-off.”

Lack of dApp mainstream adoption may also be hurting ER20 token prices as Ethereum faces a massive crisis in investor confidence.

Featured image from Shutterstock.

The post Ethereum Down to $200 As Investor Confidence Crisis Looms appeared first on NewsBTC.

Things are not looking too hot in the world of cryptocurrencies right now. The Bitcoin price is taking another dump out of nowhere. At this rate, its value will start trending toward the $6,000 level fairly soon. Some traders remain hopeful things will turn around this year, albeit it seems less and less likely.

Bitcoin Goes off the Rails Again

Having a short-term memory in the cryptocurrency is often asking for trouble. The current Bitcoin price, while not all that impressive by any means, is still vastly higher compared to values noted throughout most of 2017. It took Bitcoin eight and a half years to get to this level. Despite the bull run late last year and in early 2018, unnatural growth cannot be sustained.

It is not the first time the Bitcoin price goes through such a steep rollercoaster ride. Not every year has been successful for the world’s leading cryptocurrency. It appears 2018 will be the second such period in nearly ten years with a lot of bearish pressure. Even so, closing this year above $5,000 would be monumental in its own way.

Speaking of a Bitcoin price of $5,000, some traders have been suggesting this value would be reached at some point in 2018. As more time progresses, it appears they may turn out to be right after all. Such a steep correction is not a bad thing, even though it will make a lot of traders nervous. Omar Bham is not among those people who see this trend as a bad omen.

I'm stoked. Crypto price markets have been repeating fractal patterns, and the beginning of 2015 is when I seriously began buying Bitcoin to hodl. Well, it seems like we're again back at that point- the point when prices hit their lowest, and began trending upwards.
.
.#bitcoin pic.twitter.com/IF1nu85qux

— Omar Bham (Crypt0) (@crypt0snews) September 8, 2018

In fact, this trend can breathe some new life in the Bitcoin market as a whole. A lot of pieces of the puzzle are finally coming together for all cryptocurrencies. Positive regulatory changes, numerous ETF applications – although they get rejected -and more exposure to institutional investors are just some key takeaways. There’s also the scaling issue being solved and more educational efforts pertaining to Bitcoin than ever before.

Before the Bitcoin price can get to $ 5,0000, however, it will need to break some key support levels. First up appears to be $6091, according to Ntfri. If that fails, there should be enough buy pressure near $5,871 to keep things going. If that bastion also falls, the floodgates will undoubtedly open and a multi-hundred dollar drop is not out of the question.

More pain in $BTC $BTCUSD #Bitcoin #cryptocurrency .Down more than 3%.
Support Level 6091.14 5871.28 pic.twitter.com/lkKDNQMp5R

— ntfri (@ntfri) September 8, 2018

The remainder of 2018 will be crucial for all cryptocurrencies. India’s Supreme Court will determine the fate of Bitcoin trading early next week. Multiple countries are in the process of drafting regulatory guidelines. Japan still remains a keen player in the industry, and South Korea is reclaiming some of its lost glory. Everything is shaping up nicely for an interesting 2019, by the look of things.

The post Bitcoin Price: Expected Decline to $5,000 Becomes a More Likely Scenario appeared first on NullTX.

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[email protected]

This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of NullTX. This is not investment, trading, or gambling advice. Always conduct your own independent research.

The post ChangeNOW Partners with Exodus Wallet appeared first on NullTX.

While 160 crypto exchanges wait to enter the Japanese market, elsewhere, the market is turning more buoyant, as Hong Kong, Korea, and Indonesia are poised to become home to new exchanges. Bitone Trade HK, Huobi – Indonesia, and South Korean Probit have all announced that they are opening exchanges.

Hong Kong is particularly buoyant in the blockchain industry at the moment and is feeling the pinch in the sector with a lack of qualified professionals to fill positions. A “talent list” has been issued by The Government of the Hong Kong Special Administrative Region in which it states that it needs “quality people from around the world in a more effective and focused manner to support Hong Kong’s development as a high value-added and diversified economy”. Among the 11 professions on the new list are those with DLT skills.

The latest exchange, Bitone Trade HK will support 30 cryptocurrencies with plans to eventually list more than 100 coins. The company commented:

“Our platform is launched in Hong Kong which is Asia’s international financial center and we provide customers with stable and secure services. Mainly for the Asian market, our goal is to achieve a monthly transaction volume of US$5 billion”

Indonesia may not be one of the markets that spring to mind when the word cryptocurrency drops into a conversation, but the industry is beginning to express itself in South East Asia and forging its own way. The world’s fourth most populous nation has just launched its first formal blockchain association — Asosiasi Blockchain Indonesia (ABI), boosting hopes that the Southeast Asian country may yet embrace blockchain technology.

Huobi Indonesia built on the Huobi Cloud platform will list 123 coins on its new exchange. Currently, the platform lists three base cryptocurrencies: USDT, BTC, and ETH.

South Korea and Japan are considered the crypto powerhouses in the region and never run out of crypto news. Its latest exchange, soon to be launched Probit will list 157 currencies and plans to support eight languages on the platform. The bonus for users is the platform’s heightened levels of security, ensuring that more than 95% of digital assets are stored in a cold wallet supported by hardware keys and software double authentication. The company assures its clients that their “goal is to provide a virtual currency trading platform with the highest level of security.”

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An official from South Korea’s financial regulator has expressed the need for international cooperation on cryptocurrency and ICO regulation

According to a notable technical analyst, the recent Bitcoin price drop significantly deteriorated the case for a pending market reversal, signaling that bulls must do a significantly greater amount of work in order to reverse the persisting bear market.

Rob Sluymer of Fundstrat Global Advisors first claimed that Bitcoin bulls must defend $6,800 and $6,600 a day before the major price drop, where Bitcoin fell from nearly $7,400 to its current levels of $6,400. Sluymer theorized that a drop below the “crucial” $6,600 level would likely lead to a retest of Bitcoin’s year-to-date lows around the $6,000 level.

While speaking to MarketWatch following the massive price drop, Sluymer said that the price drop was “a very damaging drop,” adding that there is little evidence of a strong setup for Bitcoin from a technical analysis standpoint.

“There is no strong technical setup for bitcoin, we remain with lower lows and lower highs. If you do [day trade], you have to have a tight stop,” Sluymer added.

Events That Will Likely Affect Bitcoin’s Near-Term Pricing

As Bitcoin’s volatility begins to tighten, it is setting lower highs on each temporary rally, but this will only last so long and it is very likely that it will soon break this tightening range depending on upcoming news events.

Many news outlets, including Bloomberg, attributed the recent Bitcoin price drop to news that banking giant Goldman Sachs was ending plans to open a Bitcoin trading desk, but this news turned out to be entirely false, with Goldman Sachs’ CFO, Marty Chavez, calling the claim “fake news.”

“I think one of the wonderful things about us is that we get written about a lot. I never thought I would hear myself use this term, but I really have to describe that news as fake news,” Chavez said while responding to the reports.

Although it is unclear if investors actually care about Goldman’s Bitcoin ventures, a trading desk is a natural first step into the crypto markets for a financial institution, and the potential closing of these desks would signal a lack of institutional interest in the markets.

Regardless, the most pressing news that is likely to impact the markets is regarding the upcoming U.S Securities and Exchange Commission (SEC) ruling on the CBOE VanEck/SolidX Bitcoin ETF, which could send the market into a rally or a tailspin depending on the decision.

Recently, the SEC denied multiple Bitcoin ETF applications, and the market didn’t flinch, showing that it has developed realistic expectations and a numbness to negative news. However, no investors and/or analysts expected those ETF applications to be approved, whereas crypto investors almost universally believe that the CBOE VanEck/SolidX ETF is the most likely application to be approved.

Many industry experts believe that the most likely outcome for the CBOE application will be that the SEC postpones it until later this year, mainly due to their lack of understanding of cryptocurrencies and the lack of regulatory clarity.

Abra’s CEO, Bill Barhydt, is betting that the approval comes sometime within the next year, saying that “it’s going to happen in the next year, I would actually make a bet on it. There is too much demand for it.”

Cryptocurrency investors should be expecting a large move in the markets, for better or for worse, in the coming months as global regulatory measures unfold, and as the likelihood of institutional funds entering the markets through retail products (like an ETF) becomes clearer.

Featured image from Shutterstock.

The post Fundstrat Tech Guru: Bitcoin Bulls Lose Upper Hand After Very Damaging Drop appeared first on NewsBTC.

Determining the future price of any cryptocurrency is nearly impossible. Technical analysis will often paint an interesting picture in this regard. Three rather surprising TRON price predictions have come to market in this regard. Although it remains to be seen if any come true, major TRON price momentum can be expected soon.

#3 the J-Curve

By far one of the most unrealistic outcomes for TRON is this J-Curve pattern. It displays how the TRX price has evolved to date. Based on these predictions, massive gains will become apparent by early 2019. Although the J-curve pattern makes a bit of sense, its long-term impact seems rather overstated. This pattern would push TRON back to its all-time high before this year is over.

Furthermore, trader CryptoManiac101 claims the TRON price will hit $0.45 soon. Although that is not impossible, it remains rather unlikely. Right now, TRON price sits at just over 2 cents. A twenty-five fold increase in value will require major developments and improving market conditions. Even so, there may be some merit to a prolonged accumulation period for TRX at this stage.

#2 The Ascending Wedge Problem

All altcoins heavily hinge on Bitcoin’s price momentum. For currencies such as TRON, that is anything but good news. Once Bitcoin price starts to dip again, it seems to be a matter of time until TRX follows suit. Trader CryptoUntied is convinced the TRON price is subject to an ascending wedge pattern. He even advises investors to effectively short TRX whenever possible.

Charts like these influence traders more than initially anticipated. A lot of people simply look for buying and selling signals. This chart seemingly indicates the TRON price will continue to correct further. Shorting to secure more profits appears to be their course of advice, for now. It is expected TRX will dip a slow as 270 Satoshi, which seems rather bearish given the current circumstances.

#1 The TRON Bull Run

Perhaps the most realistic outcome of them all is the small TRON Bull run chart. Submitted by Alanmasters, the chart indicates positive momentum is coming for TRX. Alan expects TRON to see a similar run to earlier this year. Whether or not the target of 635 Satoshi can be reached, is a different matter altogether. It would require a major increase in value over the next few weeks.

It is important to note the timeline associated with this particular TRON price prediction. Alanmasters expects his vision to come true in the next one to three months. That indicates the second half of 2018 will turn out rather bullish for this particular altcoin. Reaching a value of 1,793 Satoshi by mid-December 2018 still seems a stretch too far. Even so, weirder things have happened in the cryptocurrency industry.

The post Top 3 Interesting TRON Price Predictions for Late 2018 appeared first on NullTX.

Crypto markets stand their ground with three out of 20 top cryptocurrencies by market cap in green, Bitcoin hovering around $6,400 support