In the past week and a half, the crypto markets have shown a bearish trend, suggesting that the summer slowdown is underway. Many anticipate that bitcoin and the broader crypto economy might face a few uneventful weeks ahead. Onchain analyst Willy Woo believes there could be another one to four weeks of cooling down “before […]
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Japanese Gaming Giant Sega to Pull Support From ‘Boring’ Blockchain Games
Sega, one of the biggest game developers in Japan, has recently announced changes regarding its blockchain and Web3 gaming policy. The company announced it would not involve its largest franchises in blockchain initiatives, avoiding a possible devaluation of its intellectual properties (IPs), shelving in-house developed games and developments from third parties.
Sega Changes Its Blockchain Gaming Strategy
Sega, the Japanese game development and publishing company, once a supporter of blockchain games, is now withdrawing its support for initiatives of this kind. In a recent interview with Bloomberg, co-Chief Operating Officer Shuji Utsumi stated that the company was pulling the plug on games using this technology.
Furthermore, Utsumi also declared that Sega would not license its most prominent intellectual properties (IPs) to third parties involved in these kinds of games to avoid “devaluing” its content. However, Utsumi acknowledged that lesser franchises like Three Kingdoms and Virtua Fighter could be lent to be used in non-fungible token (NFT) projects.
Utsumi’s statements are a departure from the former stance that the company had on blockchain games, being involved in several projects as a developer and licensing its IPs to third parties. On April 2022, Sega hinted at including NFT and blockchain elements as part of its “super game” concept, contemplating investing more than 0 million in this initiative.
Also, in October, Sega announced the launch of its first licensed blockchain game, using its Sangokushi Taisen franchise and being built using Oasys technology, a gaming-oriented blockchain project.
Blockchain Games Are ‘Boring’
Utsumi explained his position on blockchain games and the reasons behind the company’s change of heart. He stated:
The action in play-to-earn games is boring. What’s the point if games are no fun? We’re looking into whether this technology is really going to take off in this industry, after all.
However, Utsumi stated Sega has not closed the door on including blockchain elements in its games when the technology matures. He declared that the company “should not ever underestimate” blockchain advocates and their proposals for the gaming space, even if they “sound a bit extreme.”
In contrast, Square Enix, another Japanese gaming company known for supporting the inclusion of blockchain and NTF elements in AAA games, announced in January that it would deepen its blockchain push, revealing it had multiple blockchain games based on original IPs under development.
What do you think about Sega’s new blockchain game policy? Tell us in the comments section below.
Dogecoin Adds $1 Billion To Its Market Cap Folllowing Elon Musk’s ‘Boring Company’ Announcement
Following Elon Musk’s Boring Company’s announcement, it now allows consumers to pay using Dogecoin. As a result, DOGE has increased by 5% during the past day. But after that, it decreased by over 2%. However, it had a market value increase of almost billion during the past 24 hours.
With a market cap of .484 billion, DOGE overtook Polkadot and other currencies to rank as the tenth-largest cryptocurrency. According to CoinGecko statistics, DOGE increased by around 13% during the course of the past seven days. The price is .07034 at the moment.
Related Reading | Sandbox (SAND) Having A Blast With 12% Spike In 24 Hours
The flood of negative crypto news was more minor today compared to most days over the previous six weeks. The crypto sector is still plagued by uncertainty and anxiety, though.
Data from CoinMarketCap indicate that with a rise of about 2% over the last 24 hours, the global cryptocurrency market capitalization was trading higher at 0.89 billion. However, the overall volume of the cryptocurrency trade fell by approximately 18% to .35 billion.
Dogecoin is currently trading at .0706 on the daily chart | Source: DOGE/USDT chart from Tradingview.com
Pay With Dogecoin For A Ride: Elon Musk’s Boring Company Announcement
According to CNN on Wednesday, the Boring Company has made it possible for users to use DOGE to pay for rides in its recently launched Vegas Loop.
The Loop is a transportation system where Tesla car drivers ferry people through a tunnel beneath Las Vegas. The first Loop station, which debuted last Friday, is located outside the Las Vegas Convention Center, but the business intends to build a 29-mile network of tunnels under the city with 50 stations in all.
Although the corporation has not provided a precise date, rides on Loop are presently free. However, charges are ultimately planned. The Vegas Loop’s website states that single rides will cost .50, and day passes will cost .50.
The choice to offer DOGE as a payment option was made simultaneously as the Boring Company decided to construct a Loop station at the Las Vegas Convention Center.
Related Reading | Bitcoin Will Rebound In 2nd Half Of 2022, Says Bloomberg Analyst
Even though a 8 billion lawsuit has been filed against Elon Musk and two of his companies, Tesla and SpaceX, he still chose DOGE. The billionaire was sued by a citizen of the United States for allegedly promoting Dogecoin. According to the lawsuit, Musk is accused of participating in a racketeering plot to support cryptocurrencies.
To his more than 100 million followers, he has already shared a number of Dogecoin memes. The adoption of DOGE as a payment method for rides by The Boring Company is one of several antics. Musk earlier said that he is unconcerned by the current market circumstances and would keep building up his Dogecoin holdings.
Featured image from Flickr, chart from Tradingview.com
Why A “Boring” Bitcoin Could Be A Good Thing
The current bitcoin trend can be described as “boring” by a lot of folks in the market. However, it is good to look at what this would mean in a space like the crypto industry that is used to fast-moving prices and quick-changing momentum. While the word “boring” may sound bad to investors who are used to these characteristics, Director of Global Macro at Fidelity, Jurrien Timmer, explains why this could inherently be a good thing for the digital asset.
Draw In Institutional Investors
The need for institutional investors in bitcoin cannot be overstated. For the digital asset to get to some of the forecasted values, institutional investors moving into the market has become a necessity. But will these institutional investors want to move into a highly unpredictable asset such as bitcoin?
Related Reading | Halfway To The Halving: What This Means For Bitcoin
In his recent Twitter thread, Timmer explained that a “boring” bitcoin is important if institutional adoption is to be expected. Pointing to the S2F model created by the infamous Plan B, he explains that bitcoin has closely followed this model. However, there is a deviation that is starting to take place.
The Director explained that instead of continuing to track the S2F model, BTC had instead started to follow the pink line which marked demand in the chart shared. This meant that as effective as Plan B’s model has been in the past, it seems bitcoin is cutting out a new trend for itself and that is now entirely driven by the demand.
“So, in a more efficient two-way market, Bitcoin should deviate around that pink line, up and to the right,” Timmer explained.
BTC sticking close to pink demand line | Source: Twitter
Bitcoin Behaving Like A Traditional Asset
Now, one of the great gospels of bitcoin is how different the digital asset is from traditional risk assets. Nevertheless, as more time has passed and adoption is growing, it is beginning to behave more like a traditional risk asset. As more understanding comes, the investors who are purchasing the asset move from simply a price standpoint and move towards more efficient accumulation.
Timmer notes in his Twitter thread that institutional investors have likely come up with their own models which will help them know when a good time to buy bitcoin is. This could help them map out if they can get a 1.5x or 3x return from buying at a particular price.
BTC trading in the mid-,000s | Source: BTCUSD on TradingView.com
“For instance, If the demand model says that Bitcoin’s intrinsic value is k today and 0k two years from now (my thesis), then at k Bitcoin is going to look a lot better than at k,” he noted. Adding that “Price is what you pay but value is what you get.”
Related Reading | How Bitcoin Futures Premiums Exhibit Signs Of Market Exhaustion
Timmer closes out his thread explaining that getting the demand curve right would be very important “If indeed price starts to move more closely around an upwardly sloping demand curve.”
Featured image from MarketWatch, chart from TradingView.com
NewsBTC
Boring Bitcoin Sends Tron’s TRX Up By 17% in Three Days; What’s Next
Tron’s native token TRX was among the top gainers on Tuesday as its price jumped by up to 11.38 percent.
The TRX/BTC exchange rate settled an intraday high at 345 sats before correcting lower ahead of the New York trading session. The move downhill appeared in contrast with Bitcoin’s slow and sideways action above ,000. So it appears, traders decided to move into alternative assets after finding no intraday opportunities in the Bitcoin market.
Tron (TRX) surges the third day in a row. Source: TradingView.com
DeFi Aid
Tron looked appealing for its short-term fundamentals. The token joined the ongoing decentralized finance craze after its CEO Justin Sun locked 6.7 billion TRX units inside the SUN genesis mining pool. That effectively removed a large portion of the TRX available supply from the market.
There are possibilities of demand outstripping supply as Tron tokens went out of circulation. It may also be possible that traders considered the brewing TRX-DeFi relation as their cue to hedge into TRX markets, especially as Bitcoin fell by almost 20 percent from its year-to-date high near ,500.
OKCoin called the TRX rally “structured,” noting that Tron developers smartly created the demand for their native tokens by harnessing the growth of the yield farming boom. Excerpts from their comments:
“The yield farming protocols require users to deposit TRX and other Tron-based cryptocurrencies to generate a new coin. This means that those that want that coin but do not own TRX or other Tron-based cryptocurrencies are incentivized to go out on the market, buy those coins, then stake them for a profit.”
The Tron token surged by more than 17 percent in three days of trading. Each of its downside attempts ended up in a large wick, a technical which represents traders buying an asset as soon as its price fell.
Morra: Tron Could Hit 450 Sats
Edward Morra, a crypto market analyst, revealed his Tron positions to indicate where its token may be heading next. The daytrader confirmed that he bought TRX when it was trading for 295-315 sats. He further stated that he is looking to lock his profits when the price reaches above 450 sats.
TRX/BTC trading strategy by Edward Morra. Source: TradingView.com
“My rebuys in 295-315 range are positive,” said Mr. Morra. “Now, the reaction in the 385-400 resistance zone will be telling. I’m going to assume that the top is in already at 465 sats so treating this current movement as a correction but will decide if I close this long completely or let it ride more.”
TRX/BTC was trading at 330 sats at the time of this writing.
These 4 Facts Show How Boring Bitcoin Is Crushing the Stock Market
n BTC is still outpacing traditional market gains despite bearish bias and a drop from the 2019 high of nearly ,000n
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Was Boring Bakkt Launch Institutional Investors Waiting To Buy the Dip in Bitcoin?
After a long wait and endless hype, the Bakkt Bitcoin trading platform went live on September 23, 2019.
However, it launched to much disappointment and abysmal trading activity. But yesterday’s massive drop in Bitcoin price, appears to have sparked a surge of trading volume on the budding platform, suggesting that institutional investors were simply waiting to buy the dip.
Smart Money Was Waiting to Buy Bitcoin At Lower Prices, Trading Volume Reflects
Bakkt is a Bitcoin futures trading platform which offers physically-settled Bitcoin contracts to institutional investors, created by the parent company of the New York Stock Exchange, ICE.
From the day the platform was first announced, the crypto community saw it as the first opportunity for institutional investors to gain exposure directly to actual Bitcoin on a trusted platform, which could have a dramatic effect on the supply and demand of the already scarce crypto asset.
Related Reading | Bakkt First Week Volume Comparable to 4 Minutes Of Bitcoin Trading On Other Exchanges
Some went as far as suggesting that Bakkt would be the catalyst to spark a new bull market. But when the launch arrived, trading volumes were practically non-existent compared to current crypto platforms and exchanges, and the bullish sentiment surrounding the launch quickly turned bearish.
The very next day, Bitcoin dropped ,000 over 48 hours, to under ,000. Bitcoin traded in that range for an entire month, and just yesterday broke down to ,400 where the crypto asset is currently trying to find support.
Bakkt #Bitcoin volume increasing x5 during Yesterday's drop
pic.twitter.com/gpXlMwWmDW
— Crypto Rand (@crypto_rand) October 24, 2019
With yesterday’s drop, Bakkt trading volume surged to the highest one-day total since the platform’s inception. Before the drop, the platform averaged under million in trading volume per day, with a peak of just over million in a single day. Yesterday’s volume, reached nearly million in Bitcoin traded, 5 times the regular trading volume on the budding platform for institutional investors.
The surge in interest suggests that institutional investors may have an interest in Bitcoin after all, but only at prices lower than what the asset was trading at during launch. Institutional investors are often dubbed “smart money,” and for good reason. These high-wealth investors use a variety of strategies, trading indicators and more – the best the world has to offer – and it would be highly unlikely that this subset of investors would simply start buying up Bitcoin without any sort of plan, just because the platform went live.
Related Reading | Bitcoin Crashes to ,400 as Crypto Markets Falter
With Bitcoin now falling, prices are becoming increasingly attractive to investors of all types, and it is already being reflected with an uptick in Bakkt’s trading volume. Elsewhere in the market, trading volume has reached yearly lows, suggesting that there’s a distinct lack of interest in the asset class. However, the further Bitcoin drops, investors won’t be able to resist buying cheap Bitcoin, before the halving occurs and the asset reaches the astronomical prices of 0,000 or higher that most prediction models are targeting.
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Bitcoin Price Turns Boring Again as Traders Consider Chances of $8.5K
n Bitcoin price rangebound as .5K resistance proves toughn
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Analyst: Bitcoin Trading Has “Almost Become Boring”
Following the cryptocurrency market fever of late 2017, volatility in Bitcoin has dropped to a point that it has almost become boring, according to Element Digital Asset Management, a firm that delivers advisory, trading, treasury, technology, and asset management services for the digital asset capital market.
Element Analysts Say Bucket Shops, Potential SEC Approval of Bitcoin ETF Are Driving Bitcoin Market
Bitcoin is priced just above ,500 as the market trades inside the ,200-,200 range since early September. Ever since the most dominant cryptocurrency in the world lost the ,000 handle and more than ,000 in value in less than two months, the Bitcoin market saw decreasing volatility and trading volumes over time.
Buy Bitcoin Worldwide indicates that the 30-day volatility index for Bitcoin is at a 12-week low, 2.55%, which is more than 500 basis points lower from early January 2018, where it marked 8.02%. Thejas Nalval and Kevin Lu, portfolio director and director of quantitative research at Element Digital Asset Management respectively, wrote a report on Bitcoin’s volatility patterns.
“One can argue that the depressed volatility patterns we’re seeing with bitcoin is the market slowly adopting bitcoin as a SoV. That’s a fun theory but premature. One can also argue that bitcoin price discovery is becoming more efficient due to more natural demand and natural supply. Also possible.”
But as the digital currency trades range bound within a 10% band over the past few weeks, which is more typical of a small or mid-cap stock instead of an asset that previously exhibited annual volatility levels closer to 100%, the research team is “a bit more skeptical”.
“We think the market has quite simply just run out of juice for now. It’s almost become boring. Seems like everyone is waiting on the sidelines for someone else to make the first move in what could be an extremely long game of chicken.”
The team, however, believes that there is something else going on behind the scenes. Modern day bucket shops are currently driving prices, but “hopefully the derivative market evolves into something a bit more mature in the years ahead”.
In addition, the market is still reacting to the likelihood of a bitcoin ETF approval by the SEC, but Nalval and Lu recommend market participants not to expect a bitcoin ETF in the next one or two years.
“To the extent that some possibility of approval is priced in, the market could experience material weakness if a disapproval order is issued.”
The volatility time series chart shows that, historically, Bitcoin had a standard deviation of daily returns mostly between 5% and 15% before 2012. Except for two spikes in 2013, volatility was mostly kept subdued below the 5% line until the recent cryptocurrency fever.
Image from Shutterstock
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Making Boring Sexy: NSD Sees Booming Interest for Blockchain Bonds
Russia’s National Security Depository is seeing an unexpected benefit of blockchain that could turn into a new source of revenue: publicity.
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