Cryptocurrency exchange Coinbase says bitcoin dips are likely to be “more aggressively bought compared to previous cycles, even as volatility persists during price discovery.” The crypto firm noted that the impact of U.S. spot bitcoin exchange-traded funds (ETFs) and the larger inflow of institutional demand can be seen in the open interest of bitcoin futures. […]
Bitcoin News
Binance & Deribit Traders Aggressively Short Bitcoin, Squeeze Incoming?
Data shows Bitcoin shorts have been piling up on cryptocurrency exchanges Binance and Deribit during the past few days.
Bitcoin Funding Rates On Binance & Deribit Are Deep Red Right Now
According to data from the analytics firm Santiment, traders on the derivative market have continued to bet against the cryptocurrency recently. The relevant indicator here is the “funding rate,” which keeps track of the periodic fee that derivative contract holders on an exchange are paying each other right now.
When this metric has a positive value, it means that the long traders are paying a premium to the short traders in order to hold onto their positions. Such a trend suggests that the majority sentiment on the given exchange is bullish currently.
On the other hand, the metric being under the zero mark implies the traders on the platform hold a bearish mentality at the moment, as the shorts are the dominant force.
Now, here is a chart that shows the trend in the Bitcoin funding rates for Binance and Deribit over the past month:
As displayed in the above graph, the Bitcoin funding rate for both of these exchanges had been mostly positive during the last third of August and the starting third of this month, implying that the majority of the traders had been longs.
The bets of these holders had failed, however, as the price had seen an overall downtrend in this period. Since the rebound earlier this month, though, the sentiment has flipped in the market as shorts have piled up on both of these platforms.
These short traders haven’t been successful so far, either, as the value of the cryptocurrency has seen net growth since they have appeared. Historically, the market has actually been more likely to go against the expectation of the majority, so this pattern may be in line with that.
The reason why the asset would move against the bets of these contract holders is that mass liquidation events, called squeezes, become more likely to happen the more lopsided the sector is.
A large amount of long liquidations can amplify crashes, while short liquidations can provide the fuel for upward surges. Since Bitcoin is still seeing aggressive shorting, it may be a positive sign for the cryptocurrency’s current price rise, as a potential short squeeze could help it extend further.
Interestingly, while Bitcoin is being bet against right now, Ethereum’s funding rates are positive, as pointed out by analyst James V. Straten in a post on X.
From the graph, it’s visible that the funding rates of the top two assets in the sector have gone opposite ways recently. This means that while BTC may be able to build an uptrend off the shorts, ETH could face the opposite effect if the longs end up being liquidated.
BTC Price
Bitcoin has seen a drawdown of about 1.5% today as the asset’s price has now dropped towards the ,700 level.
Committee Advises SEC to ‘Aggressively Assert Authority’ Over Crypto — Says Virtually All Crypto Tokens Are Securities
The U.S. Securities and Exchange Commission’s Investor Advisory Committee has advised the SEC to “aggressively” assert authority over crypto assets that are securities. The advisory committee believes that “virtually all, if not all, crypto tokens are securities,” urging the regulator to “make crypto asset-related enforcement a top priority.”
SEC Urged to ‘Aggressively’ Assert Authority Over Crypto Securities
The U.S. Securities and Exchange Commission (SEC) Investor Advisory Committee (IAC) submitted its view on the regulation of crypto assets to the SEC on Thursday. The committee was established under Section 911 of the Dodd-Frank Act to advise the securities watchdog on regulatory priorities.
In their letter to SEC Chairman Gary Gensler, IAC Chair Christopher Mirabile and Vice Chair Leslie Van Buskirk explained that they are submitting the view articulated “as a consensus of the IAC members.” They wrote:
We believe that virtually all, if not all, crypto tokens are securities and that they, as well as the platforms and custodians dealing with them, are subject to regulation under the federal securities laws to protect investors.
Gensler also believes that all crypto tokens, other than bitcoin, are securities. He has repeatedly urged crypto trading and lending platforms to come in and register with the SEC.
“Many investors recently have suffered significant losses as a result of their investments in crypto assets. It is estimated that these losses have been more than trillion,” the IAC letter details.
The committee further pointed out that numerous well-known cryptocurrency companies have either filed for bankruptcy or are on the verge of doing so, while others have faced both civil and criminal charges. The letter adds that crypto assets “have also been subject to notable levels of fraud and abuse” and “the semi-anonymous and borderless nature of crypto transactions make them well-suited for various illegal activities such as money laundering and tax evasion.”
Calling on the SEC to “Aggressively continue to assert authority over crypto assets that are securities” and “make crypto asset-related enforcement a top priority,” the IAC wrote:
The SEC should continue to be aggressive in bringing enforcement actions against companies that are violating the federal securities laws in the crypto space, including, issuers, custodians and those acting as unregistered platforms that offer trading in crypto asset investments.
In addition, the IAC advised the SEC to “Seek appropriate additional appropriations from Congress where needed to adequately oversee the crypto securities industry.”
Lastly, the advisory committee urged the SEC to continue to provide guidance on crypto assets, noting that the regulator should educate investors on crypto risks and conduct examinations of broker-dealers and investment advisors to ensure proper standards of care.
What do you think about the SEC Investor Advisory Committee urging the securities regulator to “aggressively” assert authority over “virtually all” crypto tokens? Let us know in the comments section below.
Bitcoin Futures Funding Gets “Aggressively Bearish” as Traders Expect a Retrace
Bitcoin has been caught in the throes of an immense bullish trend throughout the past several days, with buyers in full control of its price action as the cryptocurrency puts some serious distance between its recent lows.
It is important to note that the recent rejection at ,700 proved to be quite significant for the cryptocurrency, as its price has been sliding lower ever since.
One trader is now noting that where it trends in the mid-term should depend largely, if not entirely, on whether or not bulls can maintain their momentum and build strong support throughout the lower-,000 region.
Any sustained dip below ,000 would be dire for the crypto and potentially cause it to see strong mid-term downside.
One trader is now noting that Bitcoin is beginning to flash some signs of weakness on its chart, however, he notes that its macro strength and recent break above its all-time highs may give room for it to see further upside.
He also notes that futures funding has been growing “aggressively bearish-biased” over the past several hours, which could be a grim sign.
Bitcoin Struggles to Extend Momentum as Consolidation Begins
At the time of writing, Bitcoin is trading down just under 1% at its current price of ,670. This is around the price at which it has been trading throughout the past few days.
Yesterday the crypto rallied as high as ,700 before it lost its momentum and slid lower. The selling pressure at this price region was significant, signaling that its rally was over-heated.
Today’s price action has mainly consisted of consolidation, and it does seem to be poised to break back above ,000 in the near-term.
BTC Futures Funding is Bear-Biased as Chart Shows Signs of Weakness
One trader stated in a recent tweet that Bitcoin’s chart is flashing some signs of bearishness, although he believes that its macro strength will be enough to negate this and lead it higher.
He also notes that BTC futures funding, across the board, is beginning to show signs of being heavily bear-biased.
“Normally I’d say this looks bearish, but given all the circumstances surrounding BTC right now, I almost think it’s more likely this breaks up than down. Either way, it’s consolidation, and consolidation leads to larger moves… With that said, futures funding across the board is getting aggressively bearish-biased right now.”
Image Courtesy of Jonny Moe. Source: BTCUSD on TradingView.
Bitcoin’s upcoming weekly candle close should shed some light on the sustainability of this latest leg higher.
Featured image from Unsplash. Charts from TradingView.
Coinbase Aggressively Expanding, High Hopes For Crypto in 2019
Crypto exchanges do not get much bigger than Coinbase which has grown at a phenomenal rate over the past couple of years. The firm has not been deterred one bit by this year’s crypto rout and continues to aggressively expand into new markets and with new products.
No Slowing Down into 2019
On Thursday the company said it had expanded into several new countries according to CNBC. Many of them are in Europe and recent new markets for the crypto firm include Iceland, Lithuania, Andorra, Gibraltar, Guernsey and the Isle of Man. Coinbase recently opened an office in Dublin amid fears of a negative outcome from Brexit negotiations.
A number of these new destinations are pitching themselves as blockchain and crypto friendly for new startups to launch their products. Malta and Switzerland are already at the top of the crypto tree and Gibraltar is aiming to catch up with its domestic licensing process for blockchain technology firms. UK CEO of Coinbase, Zeeshan Feroz, said;
“I think you can expect a more aggressive approach to us adding more countries in the coming months. Much of what we’re doing here is driven by customer needs and what we’re seeing in the market,” before adding “I think if you look at last year, a lot of the focus was on people who bought crypto from an investment point of view and a lot of projects raised a ludicrous amount of money as a result of that,”
The expansion plans come right in the middle of a yearlong crypto rout which has seen markets tumble by over 80%, so Coinbase at least is clearly not worried.
New Products and Incentives
In addition to seeking new crypto friendly locations, Coinbase has also expanded its product line. The most recent offering has been a long awaited crypto-to-crypto trading option that most other exchanges already employ. Coinbase has been known for having some of the highest fees in the industry and these are amplified by inflated foreign exchange rates when dealing with fiat currencies. Direct crypto trading will not incur those fees, but there will be a spread between the two assets.
In another initiative to get more people into crypto, Coinbase has offered to pay them to watch videos and take quizzes according to Fortune. This particular offering will be using the recently added ZRX token as the project had set aside 1.6 million of them to give away to Coinbase users.
It is clear that there is no slowing down for the big exchanges. Coinbase is not alone with its expansion ambitions as Binance, Huobi and OKEx have also branched out into new markets and with new products. Big things are anticipated in 2019 for cryptocurrencies and the big boys are gearing up for it.
Image from Shutterstock
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Despite Market Slump, Major US Crypto Exchange Bittrex Aggressively Expands Globally
Even in this most recent market rut, Bittrex, a well-established Seattle-based cryptocurrency exchange, is dead set on bolstering its sphere of influence over the cryptocurrency and blockchain industries.
Bittrex Eyes Expansion With Affiliate Company
On Monday morning, Bittrex unexpectedly took to Twitter to announce that it had launched Bittrex International, an affiliate firm that will be responsible for managing a “global collection of innovative blockchain technology-focused businesses operating outside of the United States.”
Bittrex is powering the blockchain revolution in the U.S. and around the world. Today, we’re announcing Bittrex International, an affiliate of Bittrex, which will own & manage Bittrex’s international businesses. Details: https://t.co/JwJkD7gbVz pic.twitter.com/KPvQYa2UBD
— Bittrex (@BittrexExchange) September 10, 2018
In an official statement, the exchange outlined its aspirations for this new firm, revealing that the multinational startup’s mission is to become a “driving force in the blockchain revolution,” by increasing the adoption rates and development of this technology and its applications. Bittrex International intends to accomplish this by providing oversight, advice, and management for technology-focused businesses under the firm’s control.
Despite its infancy, the newly-established Bittrex International will also be responsible for founding a subsidiary based in crypto-friendly Malta. Seemingly taking advantage of the European island nation’s lax regulatory climate, this subsidiary will be creating a “secure, reliable, and advanced digital asset platform operating in Malta and built on Bittrex’s cutting-edge trading technology.”
More specifically, Bittrex Malta aims to allow projects to not only see their in-house crypto assets listed on a platform but to see their brainchildren flourish via the establishment of higher levels of consumer trust and a “larger global footprint.”
The company intends to create this global footprint through partnerships with an international collection of exchanges, which will reportedly see the assets listed on Bittrex’s Malta platform reach a worldwide audience via the aforementioned partners. As Malta has openly endorsed crypto assets and welcomed cryptocurrency firms, this new platform has been designed with Maltese and European rules and regulations in mind. CEO Bill Shihara expressed his excitement for this global expansion, noting:
“At Bittrex, we’re using our secure, reliable and innovative platform technology to power the blockchain revolution. Through our U.S-based trading platform, and our growing network of partner exchanges around the world, Bittrex is making blockchain technology and digital asset trading more accessible to the global community. Bittrex International and its subsidiaries will further advance our work to increase adoption of this revolutionary technology by streamlining the process of identifying and listing some of the world’s most innovative blockchain projects.”
Partnerships & USD Trading Pairs
As reported by NewsBTC, the exchange has recently enlisted a series of measures to rope itself back in the public limelight, with the creation of Bittrex’s international and Maltese subsidiaries being no exception.
Bittrex recently joined hands with Rialto, an alternative trading system, to make a foray into the crypto asset securities subindustry. According to a press release that pertains to the matter, the two firms are in talks with regulators to hopefully gain approval. If successfully, the partnership will reportedly parent a next-generation platform that will allow investors to purchase digital assets that are deemed securities by the U.S. Securities and Exchange Commision.
Pending regulatory approval, the prospective security token exchange, which remains unnamed at this time, will only facilitate institutional investors, legacy firms, U.S. registered broker-dealers and accredited investors due to restrictions.
It is unclear if the aforementioned moves will garner high levels of support from the get-go, but it has become apparent that Bittrex is trying to propel itself to new heights amid a market
Featured Image From Shutterstock
The post Despite Market Slump, Major US Crypto Exchange Bittrex Aggressively Expands Globally appeared first on NewsBTC.