There was a steady decline in bitcoin below the $8,500 support against the US Dollar.The price is following a bearish path and it is facing many hurdles near $8,200 and $8,500.There is a key declining channel forming with resistance near $8,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).The price could extend its decline towards the $7,850 support area before it could start a recovery.Bitcoin price is declining and is trading in a bearish zone below $8,500 against the US Dollar. BTC is likely to decline further to $7,850 or $7,500 before a decent upward move.Bitcoin Price Weekly Analysis (BTC)This past week, BTC started a short term recovery from the $7,659 low against the US Dollar. The BTC/USD pair traded above the $7,800 and $8,000 resistance levels. Moreover, there was a break above the $8,200 resistance area. Finally, the price tested the $8,500 resistance area and topped near the $8,539 level. Recently, it started a fresh decline and traded below the $8,400 level.The price is now following a bearish path below the $8,200 level and is trading well below the 100 simple moving average (4-hours). There was a break below the 50% Fib retracement level of the upward move from the $7,659 low to $8,539 high. At the moment, the price is holding the $8,000 support level, with a bearish angle. An immediate support is near $8,000. It coincides with the 61.8% Fib retracement level of the upward move from the $7,659 low to $8,539 high.More importantly, there is a key declining channel forming with resistance near $8,200 on the 4-hours chart of the BTC/USD pair. Bitcoin remains at a risk of more downsides below the $8,000 support area. If it breaks $8,000, it could decline towards the $7,850 support area. Any further downsides might trigger a move towards the $7,500 support area in the near term.On the upside, there are many hurdles near the $8,200 and $8,300 levels. The first major resistance is near the $8,500 level. However, the main resistance is near the $8,600 level and the 100 simple moving average (4-hours). There is also a connecting bearish trend line forming with resistance near $8,600 on the same chart.Looking at the chart, bitcoin price is clearly following a bearish path below $8,500. As long as there is no close above $8,500 and $8,600, there is a risk of a sharp decline towards $7,500.Technical indicators4 hours MACD – The MACD for BTC/USD is slowly moving into the bearish zone.4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.Major Support Level – $7,850Major Resistance Level – $8,500
Archives for October 5, 2019
Bitcoin’s weakness over the past couple of weeks has resulted in a failure to bounce back as it clings to support at $8k. The drop had largely been expected and many analysts are of the opinion that further declines could be on the cards. The BTC dominance chart is also showing telltale signs that could be beneficial for altcoins.Bitcoin Dominance Drops Below 70%BTC has slowly weakened over the weekend with a fall back to just above $8k following a couple of brief touches of $8,200. This resistance level is proving too difficult to overcome which means the path of least resistance is to the downside. At the time of writing a break below $8k is looking imminent.As analyst Josh Rager pointed out yesterday, Bitcoin appears to be primed for a drop to $7,600. BTC has been relatively flat all week so a breakout is building and the bulls appear to have disappeared leaving only bears lurking.The market share chart for Bitcoin is also showing clear signs that it is about to turn south. According to Tradingview.com BTC dominance has dropped below 70% and the pattern of decline looks pretty clear.BTC dominance YTD – Tradingview.comTraders are starting to lean towards a rise in altcoins as BTC cools off.“Bitcoin dominance is currently at 70%, but I’m predicting it will decline significantly as alts gain a lot of dominance over the next year. Many alts including $XRP and $ETH look very bullish in their BTC pairings!”Bitcoin dominance is currently at 70%, but I’m predicting it will decline significantly as alts gain a lot of dominance over the next year.Many alts including $XRP and $ETH look very bullish in their BTC pairings!What do you think, will alts gain dominance in the market?— Crypto Welson 📊 (@CryptoWelson) October 5, 2019This sentiment was echoed by ‘Crypto Bitlord’ who tweeted.“Even a noob can see it breaking down. What that means, simply, is altcoins are about to pump.”The dominance chart is currently showing a support level at 66 percent and below that 63 percent. The 50 day moving average has reached its crest and is starting to turn down which is also a sign of trend reversal as BTC appears to be running out of steam.When Altseason?Altcoins have been on the floor for most of this year. There was a little spurt for the higher cap ones in June as they followed Bitcoin to its 2019 high but they have all dumped back to early 2019 levels since then. Market caps have been hit so hard that Tether is currently the fourth largest crypto asset in the world at the moment.Ethereum is currently trading at $175 which is down 50 percent since this year’s peak and 87 percent since its all-time high. It has one of the greatest growth potentials of all the altcoins at the moment due to a raft of major network upgrades with Istanbul and Serenity set to roll out over the next six months or so.So far this year, ETH has failed to decouple from its big brother but a drop in dominance could be the start of bigger things for Ethereum which is likely to lead the other altcoins into a long awaited rally.Image from Shutterstock
Since plunging all the way to $7,700 last week, Bitcoin has found itself in a lull. The price of the crypto asset, as seen below, has been extremely mild over the past few days.The one-day Bitcoin volatility index on BitMEX, in fact, is starting to “get closer to [the move which precedes] big candle BTC moves,” analyst Chonis observed recently.$BTC – (volatility index) getting closer to big candle #bitcoin moves zone…maybe it will front run the norm? pic.twitter.com/YY7ZyjMzol— Big Chonis⚔️Flux Trading Group🚀 (@BigChonis) October 5, 2019With this latest bout of consolidation, many have been asking in which direction the cryptocurrency market will head next.According to some, the case for a bounce to the upside is growing. And it might not just be Bitcoin that will bounce.Case for Crypto Price Bounce BuildingIf you have perused Crypto Twitter at all over the past few days, you probably have noticed the incessant stream of bearish tweets being published. This writer, personally, has seen at least a half-dozen tweets suggesting that some expect for Bitcoin to enter yet another bear market.Related Reading: More Downside in Bitcoin Before Conservative Buying Opportunity, Say AnalystsBut, a key technical signal is suggesting some impending market strength. Analyst CryptoThies recently drew attention to this signal: a bullish divergence on the crypto market capitalization’s three-day chart.As he depicted in the tweet that can be seen below, the three-day Stochastic has started to trend higher, seeing higher lows, as the market cap has entered a brief downtrend, seeing lower lows — a bullish divergence that demonstrates that bears are losing control to bulls. Bullish divergences can often mark the end of a downtrend.$TOTAL clearing things up for me.NVM on all the bearish posts – we’re good team.Just be patient 🙂 pic.twitter.com/iYP6hjbBht— CryptoThies (@KingThies) October 5, 2019Not All Sunshine and RainbowsAlthough there is a fair amount of evidence to suggest that a bounce in the cryptocurrency markets will take place, there is one indicator seemingly poised to print a bearish signal: crossovers in the 50-day and 200-day moving averages.Per previous reports from NewsBTC, Brave New Coin’s Josh Olszewicz recently observed that the two moving averages, which can be interpreted in tandem to discover macro market trends, are converging since Bitcoin’s upward momentum stopped earlier this year. If the 50-day moving average crosses below the 200-day, the crypto market’s total capitalization will print what is known as a “death cross”, a sign that last was seen in April of 2018 — just shy of the market’s top in the last cryptocurrency cycle.Related Reading: Crypto Tidbits: SEC Declares Bitcoin a Non-Security, Ethereum DeFi Gains Traction, PayPal Leaves LibraWhat the moving averages are saying is that if a strong bounce is not observed soon, the crypto market may be subject to another few months, maybe even a year or more, of decisively bearish price action.Featured Image from Shutterstock
Bitcoin has had a rocky past few weeks and months as BTC failed to maintain its foothold within the five-figure price region and has continued to face heightened selling pressure over the past several days and weeks.This bearish price action has significantly hampered the overall sentiment surrounding Bitcoin and the aggregated crypto markets, but one key technical indicator is now noting that the crypto could end the year on a high note.Bitcoin Struggles to Garner Buying Pressure as Sentiment DivesAt the time of writing, Bitcoin is trading down nearly 2% at its current price of $8,050, which marks a notable retrace from its recent highs of over $8,500 that were set earlier this week.It is important to note that Bitcoin’s lackluster price action that has occurred over the past several days and weeks has been the result of its violent break below $10,000 that came about in September after the crypto broke below the apex of the bearish descending triangle that it had been caught in for the summer months.BTC’s bearish price action as of late has significantly hampered the excitement that the markets had incurred throughout BTC’s parabolic rise in the first half of 2019.This becomes abundantly clear while looking towards Twitter activity surrounding the Bitcoin keyword, which has dived as of late.“#Bitcoin Twitter mentions hit all-time-low,” Unfolded, a market insights group, explained in a recent tweet.#Bitcoin Twitter mentions hit all-time-low pic.twitter.com/WW7wH3eksm— Unfolded (@cryptounfolded) October 4, 2019Technical Indicator Signals That End-Of-Year Will Be Positive Time for BTC Despite the dwindling sentiment surrounding the aggregated crypto markets, it is important to note that the next few months may prove to be very positive for Bitcoin.While speaking to Bloomberg, analyst Mike McGlone explained that BTC still remains in a positive position despite is recent price action and extended period of consolidation.“The Bitcoin maturation process will accelerate into the year-end as volatility declines in a more subdued price-appreciation process… The initial euphoric transition to a bull from a bear market is over, which should lead to an extended consolidation period, but with positive bias for similar reasons as gold,” McGlone said.Furthermore, the GTI Global Strength Indicator also granted Bitcoin its first buy signal since last December, which likely means that the coming few months may actually prove to be very positive for BTC and the aggregated crypto markets.The coming few weeks may elucidate whether or not this buy signal is actually emblematic of underlying bullishness, as the crypto is currently facing a significant amount of selling pressure.Featured image from Shutterstock.
Over the past few days, Bitcoin (BTC) has finally started to settle in a fixed price range, finding itself trading in the low-$8,000s. For now, the cryptocurrency seems directionless, stuck between resistances and supports above and below.However, it is important to note that Bitcoin is edging very near to a key historical level, one that may reveal if BTC is in a macro bull or bear trend.Related Reading: Crypto Tidbits: SEC Declares Bitcoin a Non-Security, Ethereum DeFi Gains Traction, PayPal Leaves LibraBitcoin At Key Price LevelA Twitter user going by “Spookey Dyme” recently drew attention to a key trend: throughout Bitcoin’s last bull market, it consistently closed above the one-week SuperTrend indicator’s baseline without fail.What’s worrying is that after last week’s drop, Bitcoin has begun to near the indicator, which is currently at approximately $7,800. A weekly close under this level, according to historical precedence, could mark an end to the bull market.Traditionally in a bull market Bitcoin weekly stays above ATR. pic.twitter.com/LspRofngHe— 👻Sp00key Dyme👻 (@CryptoParadyme) October 4, 2019The SuperTrend isn’t the only sign giving credence to the theory that the high-$7,000s will be of utmost importance for Bitcoin to remain above.Around $7,700 sits a confluence of integral technical support levels. These include but aren’t limited to the 200-day moving average; the 365-day exponential moving average, a level that Bitcoin bounced straight off of during mid-2017; the 50-week exponential moving average, among other levels that many say are indicative of Bitcoin’s medium-term trends.$BTC Update– Strong weekly support at 50EMA and 100MA
– Closing below 7.7K, can cause a nasty dump to around 6.5K
– As long as I see a good reaction at the current support channel, I am positive we are going up from here pic.twitter.com/LJqycVtE18— CryptoBuzz👨💻🧘♂️👨💻 (@Crypto_Buzz_247) September 26, 2019Analyst Crypto Buzz has stated that a loss of this level is likely to cause “nasty dump to around $6,500”, a level which many believe will act as the bottom of this bull market consolidation. $6,500 is, of course, where BTC famously traded around for months on end during the middle of 2018.Related Reading: More Downside in Bitcoin Before Conservative Buying Opportunity, Say AnalystsTrader Crypto Hamster has even gone as far as to say that a loss of $7,700 without a strong recovery may be a clear sign that the “bull market is over”.Bull Case GrowsAlthough investors are mostly divided over where Bitcoin will head next, the bull case recently gained some steam.Published on Friday, Bloomberg reported that the GTI Global Strength Indicator, “a measure of upward and downward movements of successive closing prices,” recently printed a buy for the first time since the cryptocurrency bottomed at $3,150 in the middle of December. It was added that Bitcoin’s ability to consolidate at $8,000 is also a sign that BTC’s price has been building upward momentum.Related Reading: Crypto Market Death Cross Inches Closer, Will The Bear Market Return?Featured Image from Shutterstock
Bitcoin’s bulls have lost their strength and allowed bears to push the cryptocurrency under its previous key support level at $8,200, which may signal that significantly further losses are imminent in the near-future as BTC slowly creeps back towards its recently established range lows at $7,800.Analysts are noting that Bitcoin is likely to continue falling until it reaches $7,600 in the near-term, which could mean that significantly further losses are imminent.Bitcoin Plummets Towards $8,000 as Bulls Lose StrengthAt the time of writing, Bitcoin is trading down roughly 1.5% at its current price of $8,050, which marks a noteworthy drop from $8,200 – the price at which the crypto had previously found a significant amount of support.In the near-term, it is likely that $8,000 will be a level of support for the cryptocurrency, but it is important to note that analysts are explaining that it is possible that Bitcoin plummets below its recent lows of $7,800 and drops towards its near-term region of support at $7,600.Big Chonis, a popular crypto analyst on Twitter, noted in a recent tweet that he expects BTC to continue dropping in the near-term until it reaches roughly $7,600.“$BTC – where u going #bitcoin,” he said in a recent tweet while pointing to the below chart.$BTC – where u going #bitcoin … pic.twitter.com/K1AjqCacR7— Big Chonis⚔️Flux Trading Group🚀 (@BigChonis) October 5, 2019A failure to post a strong bounce at its recent lows of $7,800 could spell trouble for the cryptocurrency’s near-term price action, but there is a possibility that another visit to this level will spark the next uptrend.BTC Buyer Volume Decreases, Opening the Gates for Significantly Further LossesJosh Rager, another popular cryptocurrency analyst on Twitter, explained in a tweet that buyer volume has been decreasing significantly as of late, which could be opening the gates for a movement towards the mid-$7,000 region.“$BTC Daily Chart doesn’t look pretty. Bitcoin could be making it’s way down to $7600’s support with breakdown from here. Currently at support, eventually buyers can run out at this level. Buyer volume continues to decrease,” Rager noted.$BTC Daily Chart doesn’t look prettyBitcoin could be making it’s way down to $7600’s support with breakdown from hereCurrently at support, eventually buyers can run out at this levelBuyer volume continues to decrease pic.twitter.com/E3n9cpY8Ha— Josh Rager 📈 (@Josh_Rager) October 5, 2019How Bitcoin reacts to its near-term support level at $8,000 and subsequently reacts to its recently established range lows at $7,800 will likely set the tone for how the crypto will trend for the rest of 2019.Featured image from Shutterstock.
Algo Capital, an investment firm focused on the Algorand blockchain, lost a few million dollars in USDT and ALGO tokens after its chief technology officer’s phone was breached, CoinDesk has learned.
According to a source familiar with the matter, Algo Capital reported to its limited partners Friday that Pablo Yabo, its CTO, had his mobile compromised which allowed attackers to seize control of an Algo hot wallet administered by Yabo. As a result of the breach, roughly $1 million to $2 million in the cryptocurrencies were taken, according to an email from CEO David Garcia seen by CoinDesk.
“Yes, there was a security breach,” CEO David Garcia told CoinDesk in an email. “We communicated to all the Algo Capital VC Fund Limited Partner’s and updated them about the incident.”
The network itself remains unscathed. The Algorand team is aware of the breach suffered by the investment firm, the source said.
Algo Capital has raised $200 million for its Algo VC Fund, with the cash intended to support projects in the Algorand economy. Algo Capital founder and managing partner Arul Murugan said in an August 2019 statement that:
“Our investment approach specifically targets companies that are creating the next great blockchain applications and infrastructure solutions, and as a result, helping to speed blockchain adoption and bring millions of new users into the Algorand network.”
The investment firm is a separate entity from the Algorand Foundation and Algorand LLC, which oversee the blockchain’s actual development. Pablo Yabo has resigned his position, according to the email sent to partners. Further security measures have been taken by the firm. The majority of the firm’s funds were held in cold wallets that were not compromised.
The firm is taking full responsibility for the loss and committed to reimburse the full amount within 20 months. “We are engaging with certain key organizations and security services to collaborate and address this issue which has become a common industry problem,” Garcia wrote.
The Algorand blockchain itself was first envisioned by MIT professor Silvio Micali in 2017 as a possible solution to the scaling issues other blockchains face. Under its consensus mechanism, the network randomly selects the machines which add the next blocks to the blockchain, as a variant of the proof-of-stake mechanism.
Yabo did not immediately return a request for comment.
Broken fence image via Shutterstock
Another week, another of Crypto Tidbits. After last week’s collapse, Bitcoin (BTC) took some time to settle, finding itself trading in the low-$8,000s for an extended period of time. Analysts are currently divided over what this consolidation means for the cryptocurrency market’s short-term future, with some even arguing that this is a precursor to another bear market — Crypto Winter 2: Electric Boogaloo, so to speak.Regardless, the underlying industry still saw a number of positive developments over the past seven days. They include the U.S. Securities and Exchange Commission (SEC) declaring Bitcoin a non-security, growth in the ecosystem of altcoins, and Bakkt’s completion of a physically-settled block trade.Related Reading: Crypto Tidbits: Venezuela Owns Bitcoin, SoFi Adds Cryptocurrency Trading, Libra Launch UnclearBitcoin & Crypto TidbitsCrypto Crisis: PayPal Leaves Libra Association: Libra, the crypto project founded by Facebook, has just suffered a heavy blow according to a number of sources. Speaking to the Wall Street Journal on Friday afternoon, a spokesperson for the fintech giant, PayPal, said that the company has decided to “forgo further participation” in the project. Despite this, they added that PayPal continues to support Libra’s mission to democratize finance, and will thus keep its options open with Facebook in the future. This announcement comes shortly after sources to the Financial Times said that PayPal representatives did not make an appearance at a Libra-focused event in Washington.Mastercard, Visa, Stripe Also Skeptical of Libra: In similar news, sources told Bloomberg that Visa, Mastercard, and Stripe are currently hesitant to sign the Libra Association’s inaugural charter in fear of angering regulators, most of which have expressed heavy reservations about crypto, the people said. Bloomberg’s sources added that the four payment giants’ executives believe that Facebook “oversold the extent to which regulators were comfortable with the project” and are fearful about the social media giant’s historical handling of data privacy.SEC Staff Claim Bitcoin Isn’t a Security: According to a letter published on September 1st, some of the SEC’s staff revealed that they don’t believe that Bitcoin is a security. “Among other things, we do not believe that current purchasers of bitcoin are relying on the essential managerial and entrepreneurial efforts of others to produce a profit,” the staff wrote in response to a cryptocurrency firm’s assertion that Bitcoin is a security in their eyes.Bakkt Completes Bitcoin Block Trade: Revealed in a press release published late this week, Bakkt, the Intercontinental Exchange-backed company, has just completed the first physically-settled block trade of its Bitcoin contract. The transaction’s size was not revealed, but the trade was claimed to have been issued between OTC desk XBTO and Mike Novogratz’s Bitcoin merchant bank, Galaxy Digital.Apple CEO Not Excited About Crypto Trend: In an interview with French publication Les Echos, Apple’s chief executive, Tim Cook, quipped that cryptocurrencies are not something that Apple is pursuing at the moment. Cook argued that currency is something that should “stay in the hands of states.” The technology executive went on to say that he isn’t comfortable with “the idea of a private group setting up a competing currency”, seemingly referencing Facebook’s Libra. Cook’s assertion that Apple will not have its own crypto asset comes after an Apple executive told CNN earlier this year that the technology behemoth is “watching cryptocurrency”, as they believe it has “interesting long-term potential”.Ohio Treasury Shuts Down Businesses’ Ability to Pay Taxes in BTC: The new Ohio Treasurer Robert Sprague has announced that his state’s decision to accept business taxes paid in Bitcoin will be reversed. Sprague explained in an official statement that this decision has much to do with how Ohio’s cryptocurrency payment processor, BitPay, is defined by state laws. While many saw this as a blow to Bitcoin’s viability, fewer than 10 companies actively used the cryptocurrency payment option.BitPay to Add XRP Support: Announced in a press release published on Wednesday morning, Atlanta-based crypto payments giant BitPay has partnered with Ripple’s developer initiative, Xpring, to enable XRP payments through “BitPay’s merchant processing and cross-border payments platform safely, securely, and compliantly.” This payment method will be activated by the end of the year. Speaking on the matter of the recent move, BitPay’s Sean Rolland remarked that XRP payments are important as they are “fast, cost-effective and scalable”. Ethan Beard, the Senior Vice President of Xpring, also expressed his excitement, quipping that this partnership with XRP will be “key in advancing the proliferation and adoption of XRP as a medium of exchange to help solve real-world problems.”Ethereum “DeFi” DApp Completes Seed Round: Announced in a blog published at the turn of the month, InstaDApp, an Ethereum DeFi portal that aggregates major protocols “using a smart wallet layer and bridge contracts”, has bagged some $2.4 million in funding from investors like Coinbase Ventures, Pantera Capital, Robot Ventures, and IDEO Colab, prominent Silicon Valley investor Naval Ravikant, former Coinbase executive Balaji Srinivasan, “amongst many others”. Coupled with the funding, InstaDApp brings on Edward Moncada, CEO of Blockfolio and “Ming Ng, who collaborates closely with prominent projects including Handshake, Kyber, and Blockfolio,” to its advisory board.
Most cryptocurrencies other than bitcoin have been languishing in crypto winter for over two years. This is particularly true for alternative coins, or altcoins, in their bitcoin (BTC) pairs. Most have lost over 90 percent of their value from their peak.
However, the winds appear to be changing. Many altcoins have lost so much value that they look ready to start a new market cycle. This prompted a handful of reputable traders on Crypto Twitter (CT) to start feeling bullish about the prospects of these coins. They believe that an altcoin season, or altseason, is on the horizon.
Bitcoin Dominance Rapidly Falling
One way experienced crypto traders predict the possibility of an altcoin season is by looking at the Bitcoin Dominance Index. This index measures the market cap of bitcoin against the overall market cap of all cryptocurrencies.
A slumping bitcoin dominance index strongly suggests an incoming altseason. This tells us that altcoins are rising in value against bitcoin.
Crypto enthusiast Paddy Stash has been keeping a close eye on the index. The analyst sees the index breaking down in the next few days.
Tapping a support area multiple times often leads to a breakdown | Source: Twitter
In addition, a pseudonymous trader that goes by the name of Crypto White Walker sees an altcoin insurrection. He also predicts that the index will drop all the way down to 65 percent.
Crypto White Walker expecting altcoins to soar | Source: Twitter
On the other hand, trader Rampage is expecting a bigger index drop to 59 percent. That’s an 8 percent plunge from current levels. This should give altcoins a big window to pump.
Rampage expecting the BTC Dominance Index to nosedive | Source: Twitter
Top Altcoins Looking Good Against Bitcoin
With Bitcoin Dominance shrinking, the majors appear to be making their move. Leading the pack is Ethereum, which is up by over 33 percent against bitcoin from the local bottom. Trader Pierre was one of the first to notice the bullishness of the pair.
Ethereum looking good against bitcoin | Source: Twitter
Litecoin is also advancing against bitcoin. Trader X0 spotted a convincing breakout.
Litecoin taking out a key resistance level | Source: Twitter
Even the most-followed trader on Twitter, Peter Brandt, chimed in. In a tweet, he wrote that Ripple might be carving a bottom against bitcoin.
Brandt sees a Ripple bottom at current levels| Source: Twitter
Big Traders Preparing for Altcoin Pump
With these developments, widely followed traders on CT are forecasting an altcoin renaissance. For instance, Cobie-Wan Kenobi, “the founder of Crypto Twitter” as it says on his profile, hinted at the possibility of an altseason.
Cobie-Wan Kenobi tweeting about altseason | Source: Twitter
Also, the CryptoBull, who has amassed over 140,000 followers, believes that an altseason is coming.
The CryptoBull not being subtle about the prospects of an altcoin pump | Source: Twitter
We asked other crypto traders if they think we will have an altseason before the end of the year. Beastlorion said,
Yes, [I am] watching November.
The trader added,
Basically, because of this.
Beastlorion projecting a massive drop in bitcoin dominance | Source: Beastlorion
Trader Max also responded to our query. The trader replied,
One word: yes.
The Wolf Of All Streets, when asked whether he thinks altcoins will fly before year-end, replied,
Relative to their bottom, I think many have been flying already for a month.
It’s been a while since a bunch of reputable CT traders called for an altseason in crypto. It may be possible that we’ll actually get one before this year ends.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Last modified (UTC): October 5, 2019 4:18 PM
Dash, one of the top-20 cryptos by market cap, has picked up momentum over the past month with five new exchange listings.
Coinbase, Coinbase Pro, and local exchanges in Mexico, Brazil and Switzerland have bucked the trend against delisting so-called privacy coins and added Dash to their listings.
Dash Core Group CEO Ryan Taylor recently sat down with CoinDesk to discuss the recent spate of announcements and take the temperature of Dash’s decentralized network.
“There’s kind of a natural equilibrium that occurs over time and we’re kind of there right now,” Taylor said, referring to the network of masternodes that provide a second layer of security.
This stability comes in the face of growing adoption both at the consumer and exchange level. As more exchanges list Dash, the potential avenues for trading widen. Taylor said Dash’s instantaneous transaction validation opens up the possibility of arbitrage, or taking advantage of price differences, between exchanges. And that’s a good thing for everyone, in his view.
“Arbitrage helps with price stabilization not just for Dash but for any pairing,” Taylor said. “That’s obviously economically valuable for exchanges.”
Dash’s technical features that allow high-speed trading also make it a convenient coin at the consumer level, Taylor said:
“We’ve really addressed a lot of the new user experience issues, and made it much more fluid experience for paying, especially at the point of sale where time really matters.”
Concluding the discussion on the recently announced Crypto Rating Council, Taylor said the initiative put forward by Coinbase addresses a lack of guidance at the regulatory level.
“I applaud the effort. I think that it helps to bring some level of clarity to the market and at least makes out a position that people could begin to debate and challenge,” Taylor said. “But I think that there’s only so much the exchanges can do. There is also a potential for perceived or real conflicts of interest.”
Dash Core Group CEO Ryan Taylor Screenshot via YouTube