Industry sees crypto bottom as Bitcoin nears $4,100 and tokens gain 20%

Bitcoin, bitcoin price
Bitcoin price remains trading above $4,000 and could be looking at a new normal. above the milestone.| Source: Shutterstock

The valuation of the crypto market rose by $1.5 billion overnight as the bitcoin price closed on $4,100 and a handful of tokens recorded gains in the range of 10 percent to 25 percent.

Based on the global average price of bitcoin as shown on Coinmarketcap.com, the bitcoin price has remained above the $4,000 resistance level for more than seven days.

7-Day Bitcoin Price Chart (Source: Coinmarketcap.com)

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Throughout the past several months, many traders expressed their concerns over the inability of bitcoin to break out of crucial resistance levels and if the dominant cryptocurrency can continue to move past $4,000, the sentiment around the market is expected to improve.

Is the Bitcoin Bottom In? Too Early to Tell But Industry Execs Believe So

Earlier this week, reports suggested that some analysts still foresee the bitcoin price testing its previous low in the $3,122 to $3,500 range before initiating a proper accumulation phase in the upcoming months.

The cautious optimism towards the price trend of bitcoin comes from its performance since September 2018. Since mid last year, bitcoin has shown a pattern of experiencing several months of stability and becoming vulnerable to a large drop thereafter.

Bitcoin could avoid a large retrace to the $3,500 region if it can continue to climb up in the $4,000 and $5,000 range and a growing number of traders have begun to forecast a gradual climb to key resistance levels.

— C3P0 [Wookiemood] (@__BTC3P0__) March 20, 2019

Anthony Pompliano, the co-founder and general partner...


Research: 75% of Bitcoin Exchanges Report ‘Suspicious’ Digital Currency Trading Volumes

bitcoin exchange volumes
New research adds even more evidence that Bitcoin exchanges are faking volumes on a massive scale. | Source: Shutterstock

A site called TheTie released a report today that estimates over 86% of all reported Bitcoin exchange volume is suspicious, while 75% of exchanges report extremely dubious volumes. The research uses a different formula than other reports have: it values each website’s visitors and compares that value to the reported figures.

Potential Fake Crypto Volumes High Across The Board

crypto exchange fake volume
Many Bitcoin exchanges – most notably Bithumb – report volumes well in excess of what should be expected given their web traffic. | Source: TheTie

For example, Bithumb, which has been the subject of previous investigations, was expected to have a monthly volume of roughly $1.2 billion based on an average visit value of $13,418. Instead, Bithumb reports over $28 billion. This means their reported volume is nearly 2,000% higher than what would be expected.

TheTie introduces the data saying:

“The weighted average trading volume per web visit for Binance, Coinbase Pro, Gemini, Poloniex, and Kraken was selected as a baseline volume per user to calculate expected volume. This amounted to $591 per web visit. BitMEX was not included because it is a futures exchange. This does not account for mobile app or API usage to trade – web traffic is an assumption for simplicity. Relative outlier detection is quite notable, so the outright number isn’t the main objective.”

TheTie hedges its statements by saying these are “potential” indications of fake volume.

Altcoin Exchange Bittrex Among the Most Reliable Reporters

bittrex
Bittrex resists the urge to inflate its crypto trading volumes to attract more customers....

Ethereum Governance is Currently Underrated says Vitalik Buterin

When it comes to funding development of Ethereum, Buterin stands behind his push to allow wallet developers to charge a 1 gwei fee per transaction made through their software.

In the most recent episode of Into the Ether, Vitalik Buterin appears to discuss all things Ethereum. One of the subjects that came up was the Ethereum governance model. Eric Conner asked Buterin about on-chain governance models, and his thoughts on how Ethereum’s governance stacks up against them.

Current Governance Model Underrated: Vitalik Buterin

Buterin says that the current Ethereum governance model works pretty well, considering the problems it has guided the protocol through.

I actually think that Ethereum governance is under-rated at this point. Because it’s not something that we can attach a cool name to and advertise. And honestly, moderation is a less exciting pitch for people than either on-chain votes, maximum coin holder engagement, or on the other hand immutability. We as a community have never tended to go for extremes. But in reality, on the one hand people complain about governance as a process. But on the other hand, in terms of concrete outcomes that Ethereum governance has achieved, it’s done really well.

It’s implemented the issuance reductions. The issuance reductions seem to be something that most people tend to agree with. […] When there was a crisis back in the year 2016 DOS attacks, it managed to implement, roll, stack out, test and roll out a hard fork all within a time span of 6 days. That’s not something we want to repeat but it’s clearly something we can do if we really wanted to.

When there was a Constantinople bug, it managed to delay the fork within a few hours. It is achieving the things that you might reasonably want a governance of a protocol to achieve, which is to make changes people want and not make changes people want. The one thing that it’s not achieving is dispute resolution or...


Mt. Gox’s Mark Karpeles Found Guilty, Given 2.6-Year Suspended Sentence

Mark Karpeles, former CEO of the long-defunct bitcoin exchange Mt. Gox, has been found guilty and given a suspended sentence of two years and six months.

According to a report from The Wall Street Journal on Friday, the Tokyo District Court found Karpeles guilty of wrongfully making electronic records connecting to Mt. Gox’s books, but innocent on charges of embezzlement and breach of trust.

However, Karpeles will be suspended for four years, meaning he won’t do time in jail if staying on good records in the next four years.

The court’s verdict comes almost five years after Mt. Gox filed for liquidation in April 2014 after claiming to have been hacked for 850,000 bitcoin, some of which was later found.

According to the WSJ report, Karpeles’ lawyers wrote in their final...


MIT Bitcoin Expo: Legislators Discuss Regulation, Potential of Blockchain Technology

Hyperbitcoinization enthusiast and writer

 MIT Bitcoin: Legislators Discuss Regulation, Potential of Blockchain Tech
MIT Bitcoin: Legislators Discuss Regulation, Potential of Blockchain Tech

On March 9–10, 2019, the Massachusetts Institute of Technology hosted a two-day event, the MIT Bitcoin Expo 2019. Put together by the student-organized MIT Bitcoin Club, the conference welcomed more than just Bitcoin voices from every corner of the industry. One of those voices was that of U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce.

Peirce sat down with Gary Gensler, ex-chairman of the Commodity Futures Trading Commission, senior lecturer at the MIT Sloan School of Management and senior advisor to the director of the MIT Media Lab, to discuss the progress of the SEC’s efforts to regulate the cryptocurrency industry. Notably, Gensler and Peirce launched into a discussion on what regulators can do better to protect investors from fraud and malicious actors.

Before the debate began, both Gensler and Peirce expressed their appreciation for the emerging technology. “It’s a new way to have tamper resistant data amongst the consensus of multiple parties,” Gensler said. “My research is mostly around the business of blockchain technology and … trying to find where are the real use cases where traditional data structures don’t work as well.”

Peirce expressed her own support for the space in relation to the SEC’s ongoing efforts to properly regulate it. “We have rules on the books that we have to enforce, but on the other hand, we don’t want to stop people from doing things that are going to make society a better place to live, that are going to make people’s lives easier, and enable people to interact in ways that they have not been able to in the past.”

Later in the presentation, the two veteran regulators went on to discuss what the government can do to protect investors by possibly regulatinged cryptocurrency exchanges.

Gensler believes that “exchanges are the gateway to get good public policy, particularly around AML laws, but also around investor protection.” He continued, “In essence, that there’s not a manipulated market with frontrunning and manipulation with the order books and the like.”

The discourse was...


Bitcoin Price Trapped in Key Make-or-Break Trading Range

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  • Bitcoin is trapped in a trading range defined by the 200-week simple moving average and the 200- week exponential moving average, currently at $3,404 and $4,106, respectively. Therefore, the outlook as per the weekly chart is neutral.
  • A weekly close (Sunday, UTC) above $4,106 would confirm a longer-term bearish-to-bullish trend change and could fuel a rally toward $5,000.
  • A weekly close (Sunday, UTC) below $3,404 could revive the sell-off from November highs above $6,500 and allow a drop to levels below $3,000.
  • The odds of a drop to the lower edge of the trading range would improve if BTC invalidates a bullish candlestick pattern created on Feb. 27 with a move below $3,658.

Bitcoin is trapped in a key trading range defined by the 200-week simple moving average and the 200- week exponential moving average, currently at $3,404 and $4,106, respectively

The cryptocurrency needs a break above the upper edge needed to confirm a longer-term bull reversal. Conversely, a move below the lower bound of the range could revive the bear market.

Prices fell below the 200-week EMA in the third week of November, bolstering the bearish view put forward by the high-volume breach of the crucial support at $6,000 on Nov. 14.

The ensuing sell-off, however, ran out of...


Overstock’s Blockchain Subsidiary Acquires Stake in Blockchain Banking Platform

Overstock’s Blockchain Subsidiary Acquires Stake in Blockchain Banking Platform

Retail giant Overstock.com, Inc.’s blockchain subsidiary, Medici Ventures, has acquired a stake in blockchain banking platform Bankorus, according to a press release published on March 11.

Medici Ventures has purchased a 5.1 percent stake in Bankorus, a blockchain banking platform that enables both individuals and institutions to buy, sell, lend and store digital assets. Jonathan Johnson, president of Medici Ventures, said that “the addition of Bankorus to Medici Ventures’ portfolio of companies will further our work in building the foundation of a blockchain-based technology stack for society.” The financial details of the acquisition were not forthcoming.

Medici Ventures has been largely investing in blockchain projects. Last December, the firm


IBM Digital Currency Chief Says They Are Leading in Blockchain Technology

IBM, Lund
IBM blockchain chief Jesse Lund claimed IBM Is the "leader" in blockchain technology. | Source: Shutterstock

IBM’s Jesse Lund, who heads the blockchain division, claims IBM is the leader in blockchain technology.

In a recent interview, Lund stated:

What IBM’s been doing as the leader in blockchain technology for the last three years is adding security and confidence to the system.

IBM And Stellar Partnership Challenge xRapid

Lund talks about IBM’s cross-border payments solution, which in part uses Stellar Lumens for settlement, and how one of the oldest technology companies in the world plans to revolutionize the remittance market. The solutions developed are challenging Ripple’s xRapid product for adoption, but all the products will have to work together to create a global and harmonious system.

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He explains:

We’re building on a new idea, which is to be able to store monetary value electronically and be able to move that value around the world in real time… I think the problem with cross-border payments today, the inefficiencies are based on the fact that the way that banks communicate, the network that banks communicate on is separate from the network or the rails that money actually...


The Apple-Goldman Sachs Credit Card is a Poor Substitute for a Secure Bitcoin Wallet

apple credit card iphone goldman sachs bitcoin
The security design of bitcoin transactions already made the new Goldman Sachs and Apple credit card obsolete before it even came out. | Source: AP Photo / Andy Wong

The security design of bitcoin transactions already made the new Goldman Sachs and Apple credit card obsolete before it even came out.

Tripp Mickle, Liz Hoffman, and Peter Rudegeair reported for the Wall Street Journal Thursday:

“Apple Inc. and Goldman Sachs Group Inc. plan to start issuing this spring a joint credit card paired with new iPhone features that will help users manage their money.

“The card will be rolled out to employees for testing in the next few weeks and officially launch later this year, according to people familiar with the matter.”

The Verge’s Jon Porter writes:

“The main selling point of the card is expected to be deeper integration with the Apple Wallet app, which will allow users to manage balances and set spending goals.”

Someone Tell Apple: Credit Cards Are Very Stupid

bitcoin credit card
Credit cards are dumb. | Source: Shutterstock

Credit cards are stupid.

I’ve always marveled that we hand our credit card or debit card to teenagers at restaurants to disappear with for a few minutes, with all the information on it to spend your money.

We tell total strangers over the phone our name, credit card number, its expiration date, and the super special three number security code on the back to have a pizza delivered.

This is insane.

It does show how trustworthy the people in our society generally are that a financial payment system whose security design is so broken hangs together as well as it does.

But this is a big planet, and there are a lot of people. Not all of them are honorable or trustworthy. Companies...


Virginia Police Department Pension Fund is Betting on Bitcoin

fairfax virginia police pension bitcoin crypto
Virginia's Fairfax County Police Department invested part of its pension fund in the Bitcoin and cryptocurrency industry. Now, they're explaining why. | Source: Fairfax County Police/Facebook

Fairfax County, Virginia has targeted part of its pension fund toward investments in the Bitcoin and cryptocurrency industry, as well as blockchain technology in general. Now, they’re explaining why.

Fairfax County Retirement Systems Director Jeff Weiler published a post in response to CCN and other media’s reporting on the county’s decision to invest in Morgan Creek’s latest offering, the Blockchain Opportunities Fund. Oversubscribed from its intended $25 million, the fund invests in blockchain companies. It captured $40 million from two Fairfax County pension plans and other institutions.

Less Than 1% Of Two Retirement Funds Allocated to Crypto Ventures

fairfax virginia police pension crypto bitcoin
Source: Fairfax County Police/Facebook

First things first, the post gives specifics about the amounts invested. In total, the Virginia retirement system dumped $21 million into the fund. $10 million is from the county employee’s retirement fund while $11 million is from the police officer’s fund. They represent 0.3% and 0.8% of the funds’ total assets, respectively.

The post’s intention is to assuage any concerns that might have arisen in the minds of retirees. As CCN clearly stated, the play was not strictly a Bitcoin buy. Instead, Morgan Creek will use the fund to invest in blockchain companies like Coinbase and Bakkt,...