Bitcoin and the aggregated crypto markets incurred a significant influx of buying pressure earlier this morning that ultimately resulted in yet another swift rejection that sent the markets reeling lower.This rejection and the subsequent drop have weakened the bullish scenario that many analysts believed BTC was facing, and some analysts are now noting that a much larger drop could occur if Bitcoin closes the day below its resistance levels.Bitcoin Plummets Towards $11,600 as Bears Roar At the time of writing, Bitcoin is trading down nearly 1% at its current price of $11,670, which is down significantly from its daily highs of nearly $12,100 that were set earlier this morning.Bitcoin has been incurring significant buying pressure over the past couple of days that has allowed it to put a significant amount of distance between its recent lows of $9,100 and its current price.Despite this, BTC’s bulls may not be as strong as some had expected them to be, as the cryptocurrency has now been rejected in the $12,000 region on multiple occasions.These rejections may signal that bears still have the upper hand over bulls, which may also point to the possibility that the cryptocurrency’s recently incurred gains may be in grave jeopardy.“Oh $BTC #Bitcoin, you nasty,” Big Cheds, a popular cryptocurrency analyst on Twitter, concisely noted in a recent tweet, pointing to the rejection at $12,000.Oh $BTC #Bitcoin , you nasty pic.twitter.com/ps28PGum0F— Big Cheds (@BigCheds) August 7, 2019Analyst: BTC Could Plummet Further if Resistance HoldsFurthermore, analysts are also noting that Bitcoin’s recent volatility and rejections in the $12,000 region may signal that further losses are imminent, assuming it is unable to incur any massive buying pressure before the end of the day.The Cryptomist, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, saying:“People who claim ‘manipulation’ are just lazy. Data shows we previously put in two volatile upper wicks within these daily resistances before dump. We’ve just put in two volatile upper wicks, I am expecting dump to commence if we close below resistance today. Happy to be wrong!”People who claim “manipulation” are just lazyData shows we previously put in two volatile upper wicks within these daily resistances before dumpWe’ve just put in two volatile upper wicks, I am expecting dump to commence if we close below resistance todayHappy to be wrong! pic.twitter.com/cy0cEy6Oc2— The Cryptomist (@TheCryptomist) August 7, 2019Although Bitcoin remains in limbo between another bull run and another deep pullback, it is clear that further volatility is imminent in the near-future.Featured image from Shutterstock.
Archives for August 7, 2019
On-chain metrics analyst Willy Woo believes we may never see another $6,000 Bitcoin again. The trader bases his theory on his latest technical indicator, the Bitcoin Difficulty Ribbon.Woo argues that a miner capitulation he expects to see in 2020, along with the halving of Bitcoin supply next May, will “add more fuel to the bull market.”Woo: Reducing Numbers of Bitcoin Hitting Market Will Fuel Current Bull SeasonAppearing on former Wall Street trader Tone Vays’s Trading Bitcoin YouTube show earlier today, on-chain metrics analyst Willy Woo delved deeper into his recently-detailed Bitcoin Difficulty Ribbon indicator.He commented on how the Bitcoin Difficulty Ribbon inverted at around the December 2018 $3,200 Bitcoin low, saying that this is a clear signal to him that the bottom has been reached:“To me, this is extra confirmation that we are in a bull season… It’s less now but some people still think we’re in a mid-bear season rally, and it’s a B-wave, and we’re going to come back down.”Woo continued, stating that for him, the indication that the miners have recently capitulated, along with a further capitulation he is expecting in summer 2020 and the halving of the Bitcoin supply, will make it unlikely that the Bitcoin price will drop in any serious way from its current level:“It’s very, very unlikely that price is ever going to come back down below accumulation bottom. Very unlikely. Even to $6k given this particular setup. I’m just speaking for the long-term macro picture.”Woo went on to comment that following his recent publishing of the Bitcoin Difficulty Ribbon indicator on his personal website, a number of traders had hinted that they had already been using the activities of miners as an indicator for their trade and that now their secret was out.Elsewhere in the show, Woo admitted that his Bitcoin NVT indicator, a measure of total network value divided by daily transaction value, detailed many times by the trader, is now a little “sloppy” because of the changing market.For Woo, the fact that increasing numbers of people are holding Bitcoin on exchanges reduces the efficacy of the NVT indicator. Woo actually estimates that more than 6 percent of all Bitcoin mined to this point is sitting on exchanges. Although these funds are frequently involved in activity which impact the Bitcoin NVT, the trades are not registered as economic activity on the blockchain since coins are kept in cold storage and account balances are simply updated to reflect trade outcomes. This increases the NVT artificially:“We’re definitely in a bull season right now and you would expect NVT to drop… but it’s not… So much has gone off chain now that it’s hard to get that trading signal.”The trader went on to state that although he rarely used the NVT indicator to influence buying or selling decisions, he did find the macro picture detailed above most illuminating. Related Reading: New Bitcoin Indicator Based on Mining Activity Emerges, Where is BTC Heading?Featured Image from Shutterstock.
USDT adoption on Tron has been slow-going, it seems, with just over $100 million of the roughly $2 billion stablecoin’s units circulating on it. | Source: REUTERS / Stringer
Remember that time that Justin Sun promised a loyal Tron fan a Tesla Model 3 but wound up awarding it to someone else? It’s not fair to mention that without mentioning that Sun later did give the lucky winner his automobile but only after community pressure led him to cave in.
The Sun & Tron Effect Darkens Hope
Now the Tron-USDT partnership is live and well. Basically, the whole Tron network was expecting a little bit of stablecoin in their wallet.
Tweets from the period tell the story.
Today #USDT is launched on TRON’s blockchain. $USDT is issued by @Tether_to on the #TRON network based on #TRC20 protocol. There will also be a total reward of 20 million $USDT for 100 days. $USDT will be fast, free and smart! #TRX #BTT https://t.co/LteQU04fWN
— Justin Sun (@justinsuntron) April 17, 2019
This isn’t unreasonable. Sun originally promised $20 million, but as usual with anything great, the devil is in the details. Nope, no one will be receiving $20 straight cash from this deal.
First of all, you’re not getting any USDT unless you already have some.
USDT adoption on Tron has been slow-going, it seems, with just over $100 million of the roughly $2 billion stablecoin’s units circulating on it.
In the 23 days since it started running the program, the Tron Foundation has issued less than $1 million in an “annualized bonuses.” As they report in their own blog:
“As of August 6, the total amount of TRC20-based USDT rewarded in 23 days was 712,478.662307 USDT and a total of 37175 accounts received the reward. According to the USDT price on Bitfinex, the total value of the reward in 23 days was equivalent to $715,027.02537.”
Given the recent scandals surrounding Tether, it seems easy to explain why less than $1 million of the available funds have been distributed so far, according to a report.
Tether is currently available on Bitcoin via Omni layer, Ethereum as an ERC-20 token, and Tron as a TRC-20 token.
Reduced Tether Demand or Reduced Enthusiasm?
Tether Limited’s reserves have been called into question by authorities in New York, which spawned a sequence of events leading to an admission that they may only be around 74% backed by the U.S. dollar.
Ongoing scandals have yet to be resolved surrounding the massive pile of cash invested into Tether by crypto investors since its inception in 2014.
Justin Sun tweeted early Wednesday morning on the subject, using exact figures:
The total amount of #TRC20-based #USDT rewarded was 7,694.054244 and a total of 1738 accounts received the reward. According to the #USDT price on Bitfinex on August 6(PDT), the total value of the reward was equivalent to $7,670.433497. #TRON #TRXhttps://t.co/flTo3CTg1r
— Justin Sun (@justinsuntron) August 7, 2019
Sun recently praised Chinese socialism and dispelled rumors that he was on the run from Chinese authorities.
He also apologized for being irreverent toward a scientific journal in China which lodged the accusations.
Sun claimed that his low-profile and subsequent cancellation of his hard-won event with Warren Buffett was due to kidney stones, a story widely doubted.
New Jersey’s Bureau of Securities has announced enforcement action against two state-based initial coin offerings.
Today, Canadian and American regulators coordinated under the North American Securities Administrators Association (NASAA) and executed by New Jersey officials have issued emergency orders against Zoptax and UNOcall, two NJ-based ICOs.
Part of “Operation Cryptosweep,” the Bureau of Securities alleges both ICOs were offering fraudulent securities offerings. Zoptax was seeking between $500,000 and $3.4 million for its Zoptax Coins while UNOcall was issuing tokens and investments in its staking protocol which offered daily interest returns between 0.18% – 0.88%.
New Jersey’s Attorney General’s Office says the nature of issuance, the purpose of the investments, and misleading consumer information was behind the decision. A full stop on issuance was ordered.
In a statement, New Jersey Attorney General Gurbir S. Grewal said that market rules apply to all businesses, regardless of the medium they exist on:
“[The] Bureau of Securities stands ready to enforce our investor protection laws in cases involving initial coin offerings and cryptocurrency-related investment schemes. As innovation in the online cryptocurrency-related investment market continues, market players need to understand that the rules still apply to them.”
Since January 2019, Operation Cryptosweep has 85 pending or completed cases, 330 inquiries or investigations, and eight enforcement actions, including Zoptax and UNOcall.
Initial coin offerings have come into increased scrutiny following a 2017 breakout and subsequent 2018 collapse. Larger regulatory bodies like the CFTC and SEC have recently gone after ICOs as well. Earlier this week, ICO Kik released a 130-page summary rebuttal against the SEC’s recent enforcement action against it.
Image via Shutterstock.
Bitcoin price throughout 2018 was locked in a bear market and downtrend that ultimately took the price of the first-ever crypto asset to its bottom at $3,200. But during the almost 8 months of 2019, Bitcoin has been in an uptrend and is preparing to enter a bull market.
Join us for the next two hours on CoinDesk LIVE at 2:45pm Eastern with an interview with Ted Livingston, CEO of Kin as well as a number of major players in the token landscape as they comment on Kik’s Kin token. The schedule will run until 4pm Eastern.
2:15 – Ted Livingston, CEO of Kik
3:30 – Joshua Ashley Klayman, founder and CEO, Klayman LLC and Inflection Point Blockchain Advisors
3:30 – Rebecca Rettig, partner in FisherBroyles’ Litigation Department
4:00 – Nelson Rosario, Smolinski Rosario Law
Coinbase must face a negligence lawsuit from customers who bought bitcoin cash (BCH) following its allegedly botched listing on the exchange during the 2017 bull market, a judge has ruled.
U.S. District Judge Vince Chhabaria of the Northern District of California dismissed the plaintiffs’ fraud and unfair competition claims against Coinbase, and the negligence claims brought by the ones who sold BCH. But he denied Coinbase’s motions to move the case to arbitration and to dismiss the buyers’ negligence claims, saying it is “plausible” that the company “breached its duty to maintain a functional market.”
“For starters, the fact that Coinbase halted trading within three minutes of the launch is indicative of dysfunction,” Chhabria wrote in the ruling Tuesday.
The case was brought last year by Jeffrey Berk, a former Coinbase user, who accused the exchange of allowing insider trading on its GDAX trading platform from Dec. 19–21, 2017, because BCH prices spiked right before Coinbase announced trading options on Dec. 20. Berk, an Arizona resident, brought the case on behalf of other traders. Two earlier versions of his complaint were dismissed.
In dismissing the insider trading theory, Chhabria cited a lack of “causation” proved by the plaintiff’s price volatility arguments. (Last year, the exchange hired two law firms to investigate insider trading allegations; they reportedly found no wrongdoing.)
Standard of care
Nevertheless, Coinbase will need to prove it applied a standard of reasonable care to prevent foreseeable harm to users.
Coinbase contested that it had a “duty” to strategize against market swings, citing a lack of responsibility to prevent the economic loss of others. The judge’s order replied, “the interpretation that the California Supreme Court would be most likely to adopt – is that Coinbase indeed had a duty to maintain a functional marketplace.”
Namely, because Coinbase “encouraged traders to enter the market,” by promoting the BCH launch, and held a “position of trust” when processing users’ transactions.
Because the sellers’ motion was dismissed with prejudice, it cannot be amended. However, the discovery process will continue, and Chhabria left a door open for the sellers to re-file should new evidence to support their position turn up.
Coinbase CEO Brian Armstrong image via CoinDesk archives.
A tax bill aimed at refining the Internal Revenue Service’s treatment of cryptocurrencies has moved to the U.S. House of Representatives Ways & Means Committee.
The Virtual Value Tax Fix Act, first legislators first proposed last Congressional session, has been reintroduced by North Carolina’s Rep. Ted Budd (R) on July 25. In what Budd calls a national security issue, the bill would effectively end the double taxation on cryptocurrency transactions by amending 1986’s Internal Revenue Code.
Under the 1986 Code, gains and losses in transactions of real property of like-kind remain unrecognized. As Rep. Budd stated before an introduction of the bill in June, the code places a 40 percent tax rate on transactions. Budd says tax concerns and transaction record-keeping act as a deterrent to adoption.
“The use of digital assets is already treated as a sale of the asset, even though the economic reality of the transaction is a purchase of a simple consumer good,” Budd said.
If passed, the act would free cryptocurrency transactions from double taxation and record-keeping immediately.
Budd’s newest bill adds to other cryptocurrency legislation before Congress. In early July, Rep. Tom Emmer (MN-R) reintroduced the “Safe Harbor for Tax Payers with Forked Assets Act of 2019.” Emmer says the bill will bring clarity on taxable events following cryptocurrency forks and airdrops.
Rep. Budd’s legislation joins fellow North Carolina Representative Patrick Henry’s enthusiasm for cryptocurrency, particularly bitcoin. “I think there’s no capacity to kill Bitcoin,” Henry said speaking in preparation for Facebook’s Libra hearings prior to the U.S. House and Senate Committees,
“My point is: you can’t kill Bitcoin,” he said.
Image via budd.house.gov
The bitcoin price careened below $11,500 on Wednesday as a Simpsons-inspired technical formation reared its ugly head. | Source: Shutterstock (i), Fox via AP (ii). Image Edited by CCN.
The bitcoin price careened below $11,500 on Wednesday afternoon as a Simpsons-inspired technical formation reared its ugly head – and sapped the momentum out of the crypto market’s rally.
Bitcoin Price Slides Below $11,500 in Rapid Pullback
The dominant cryptocurrency had surged past $12,000 shortly after 9:00 am ET, only to relinquish those gains in a vicious sell-off just hours later. Bitcoin took further losses from there, and after rising as high as $12,145 on Bitstamp, BTC slid as far as $11,438 heading into the early afternoon.
The bitcoin price formed a never-welcome “Bart Simpson” formation that wiped around $700 off the asset’s morning rally. | Source: TradingView
BTC has since recovered to $11,685.
The crypto market’s morning bounce accompanied a severe stock market sell-off, as well as newly-published research suggesting that bitcoin and other large cryptocurrencies have formed an inverse correlation with the S&P 500.
However, stock and crypto markets are both in the red right now, with bitcoin down about 0.55%, the Dow Jones Industrial Average losing 0.53%, and the S&P 500 sliding 0.31% for the day.
Bart Simpson Pattern Wreaks Havoc on Crypto Bulls
Bitcoin’s $700 intraday sell-off was accompanied by the return of the always-unwelcome “Bart Simpson” technical pattern, which occurs when a cryptocurrency’s price spikes, trades sideways with a series of higher lows, and then suddenly collapses back toward its original level.
Armchair traders refer to it as a “Bart” formation since the finished product bears an uncanny resemblance to Bart Simpson’s head.
— CRYPTOTIPSFR (@cryptotipsfr) August 7, 2019
Though not always the case, “Bart” formations sometimes indicate whales manipulating the market at the expense of retail traders.
Insidious new Bitcoin ransomware called “GermanWiper” won’t return your data – even after you pay. That’s because it destroys your files. | Source: Shutterstock
An insidious new strain of Bitcoin ransomware adds insult to injury for its unfortunate victims, as it refuses to restore access to your data – even after you fork over the ransom payment.
The malware, GermanWiper, tells victims it has encrypted their data, when in reality it has erased it completely. It then demands 0.15038835 BTC (approximately $1,750) under the pretext of offering victims a chance to get their data back.
The operating strategy of the GermanWiper Bitcoin ransomware
Bleeping Computer reports that GermanWiper has, to date, primarily affected Microsoft Windows users in Germany.
GermanWiper uses a devious phishing campaign to target and infect business computers. The hackers package the malware in emails that appear to be from job applicants.
On the Bleeping Computer forums, some of those who have encountered the Bitcoin ransomware indicated that the phishing emails look like serious and highly professional job applications – complete with perfect grammar and spelling:
“My ‘customer’ was expecting job applications, as they had an advert posted with the ‘Bundesagentur für Arbeit’ (aka Jobcenter) and from what I have gathered from the Internet other victims also had jobs to offer. Pictures and other info was stolen from Xing it would seem. The grammar and spelling was good, and everything seemed in order. So no chance for the regular user to avoid this trap.”
The devil is in the zipped folder
One particular case involves a job applicant named Lena Kretschmer who is sending emails bearing subject: “Ihr Stellenangebot – Bewerbung [Your job offer – Application] – Lena Kretschmer.”
The email also contains an attachment with the .zip extension. Upon extracting the zipped file, two files bearing resembling PDF documents appear. However, these are not PDF files but rather shortcuts which launch a series of events that download and install the malware.
But unlike most ransomware, which encrypts victim data until they pay a specified amount of Bitcoin into a hacker-controlled address, GermanWiper erases the data completely by overwriting the content with zeroes and ones.
GermanWiper overwrites data, making recovery impossible | Source: BleepingComputer.com
Bitcoin ransomware spares critical functions
GermanWiper is not deleting all user data, though, and some files and folders are spared – especially those that are necessary for the proper booting of Windows OS and the browsing of the internet.
Since there is no chance of recovering the destroyed data, GermanWiper victims shouldn’t even think about sending any Bitcoin to the hackers.