Where to, Bitcoin? Price Sees $1,000 Spread As ‘2x’ Averted
It turns out it wasn’t your average “sell the news” event.
While bitcoin set a new all-time high of $7,879 in the aftermath of affirmation a controversial software proposal had been scrapped, its price fell just as quickly, erasing gains to hit a low of $7,070. But for analysts, the $1,000 range was a case of bitcoin’s traders pricing in complex news: a group of miners and businesses would no longer seek to update bitcoin’s software or otherwise form their own cryptocurrency.
In this way, market observers admitted the charts showcased something that hasn’t been seen since September when China moved to ban ICOs and shutter its crypto exchanges – an unexpected shock.
As profiled by CoinDesk, the software proposal called Segwit2x, had been expected to be introduced to the network in mid-November, and many new buyers were said to have been allocating capital into bitcoin in anticipation of a split, thinking new coins would be created.
Yet, with the prospect of a quick dividend off the table, a look at cryptocurrency pricing service CoinMarketCap reveals a sea of assets in the green, as traders moved elsewhere in the market.
“Everyone was selling alts [alternative cryptocurrencies] and buying BTC. Now we are unwinding that,” said BTC VIX, the organizer of bitcoin trading group Whale Club.
Others, like Nejc Kodric, CEO of cryptocurrency exchange Bitstamp, noted it appears the news resulted in dissatisfaction for those thinking they could win big with a quick purchase before a split.
Kodric told CoinDesk:
“I think 2x was a big cloud of uncertainty which now went away … some like it, some were just in it for the airdrop.”
Others suggest it simply could have been the case that any development in the market was enough to spook new buyers.
Driven to bitcoin by its now nearly 700 percent gains on the year (or the news that major derivatives companies are looking to the market to launch new products), they simply may have lacked the ability to make a strong determination of how they felt about the event.
Such a view was put forward by Tim Enneking, managing director of the hedge fund Crypto Asset Management.
“I don’t think most people understood enough about the fork to understand the implications,” he said.
Still, with the market rally cooled, there were also attempts to determine how the news could reshape the relationships between available blockchains with publicly traded tokens.
Amos Meiri, CEO of Colu, a startup seeking to encourage the business adoption of local cryptocurrencies, noted the decision is likely to push startups that were inclined toward the Segwit2x proposal, to other options.
Still, even while he was against the measure, Meiri acknowledged that, for many of his bitcoin business peers, the scrapping of further Segwit2x scaling is cause for concern for which those businesses could actively seek other solutions.
For instance, on Twitter, there was talk about what the move could mean for litecoin and bitcoin cash, both blockchain communities that appear to define their protocol as a vehicle for peer-to-peer payments, though neither rose very much on the day. Bitcoin cash, created after an August fork of the bitcoin blockchain was down roughly 5 percent, while litecoin, which launched in 2012 to offer merchants faster payments, was up just 0.21 percent.
However, there are those who believe these cryptocurrencies may soon become more valuable to a new group of users disenfranchised with the state of bitcoin.
Jake Smith, manager of Bitcoin.com, an interactive web portal for cryptocurrency, called today’s events “great news for bitcoin cash.”
“Businesses will start flipping. High fees hurting a lot of businesses,” he continued.
As such, the statements set up for what could be further price discovery in the market ahead.
Image via Shutterstock.
Written by CoinDesk
Exchange operators believe in cryptocurrencies: CBOE
- “Over time, we do envision (our bitcoin) ETF coming to market once the regulated futures market is built and … we’re encouraged by everyone’s focus on this space,” Cboe’s Chief Operating Officer and President Chris Concannon said
- Cboe recently signed a deal with cryptocurrency exchange Gemini for bitcoin data that will support the Chicago bourse’s plans to list bitcoin derivatives
The major futures exchanges believe in the development of cryptocurrency trading and will push on with launching exchange traded funds that allow investors to trade in them, chief operating officer and president of Cboe Global Markets said on Tuesday.
Speaking on a conference call after the company’s third quarter results, Chris Concannon and other executives declined to say when they expected regulatory approval for a bitcoin exchange traded fund they announced earlier this year.
But his tone contrasted with the dismissal of bitcoin as a major financial market by some senior bankers.
“Over time, we do envision (our bitcoin) ETF coming to market once the regulated futures market is built and … we’re encouraged by everyone’s focus on this space,” Concannon said.
“Overall, the crypto currency space is the space that I think we believe in and certainly our competitor across town believes in as well and I’m just encouraged by that validation.”
Cboe recently signed a deal with cryptocurrency exchange Gemini for bitcoin data that will support the Chicago bourse’s plans to list bitcoin derivatives.
Rival CME Group Inc, the world’s largest derivatives exchange operator, said last month it will launch a futures contract for bitcoin later this year, marking a major step in the digital currency’s path toward legitimacy.
Image via Shutterstock
Written by CNBC
Chicago Options Exchange Getting the Bitcoin Bug: “We Believe” says President
In a conference call updating investors and media on its third quarter (Q3) earnings, Cboe Global Markets, which owns the Chicago Board Options Exchange (CBOE) and BATS Global Markets, said it’s bullish on cryptocurrencies. It said other exchanges, such as its “competitor across town,” are also believers in cryptos.
Legacy Exchanges Get New Religion, Cryptocurrencies
A 7000 USD price point will change many minds, so will a 120 billion USD market capitalization. Cryptocurrencies, lead by bitcoin, are officially all the rage in investment circles.
In truth, Cboe Global has been more out front than most legacy outfits of its class. It recently inked a deal with Gemini Trust Company, LLC., in hopes of listing bitcoin derivatives, for example.
Continuing their pack-leading, Chris Concannon, Cboe Global’s President and COO, struck a very optimistic tonetoward cryptocurrencies’ eventual place on legacy exchanges. In a Q3 conference call he explained, “Over time, we do envision (our bitcoin) ETF coming to market,” he said, “once the regulated futures market is built … we‘re encouraged by everyone‘s focus on this space.”
Bullish on Bitcoin + Former SEC Attorney = Mainstreaming on the Way
By “everyone’s focus” he could be referring to CME’s announcement. CME, the world’s largest derivatives exchange, shook the financial sector by saying it was moving forward with a bitcoin futures contract. Such a market was splashed all over media headlines, prompting another run-up in price (at least temporarily). It is widely acknowledged to be the beginning of mainstream legitimacy and acceptance of cryptocurrencies.
Mr. Concannon “is responsible for Cboe’s trading businesses – U.S. and European Equities, U.S. Options, Global Foreign Exchange and Futures – as well as Technology/Operations, Risk and Marketing,” his Cboe bio reads.
“Concannon has more than 20 years of experience as an exchange executive, trading participant and regulator,” including a stint as “a staff attorney at the Securities and Exchange Commission in the Division of Market Regulation from 1994 to 1997.”
This bodes well for Cboe’s long-term crypto mainstreaming ambitions.
“Overall, the cryptocurrency space is the space that I think we believe in and certainly our competitor across town believes in as well and I‘m just encouraged by that validation.”
Image courtsey of: Pixabay, Cboe Global
Written by Bitcoin.com
Fiat Currency Will be Laughable in Five Years Says Billionaire Tim Draper
Tim Draper has every reason to be bullish on Bitcoin as he has seen his $20 mln investment in the digital currency grow by over 1,000 percent in just three years. Draper is now predicting that in five years fiat will be so obsolete, it will be laughable.
The tech investor has made a fortune backing companies like Skype, Tesla and Twitter. He first got involved in Bitcoin after he bought 30,000 of them in 2014 in a government auction of assets seized from Silk Road.
Don’t be a laughing stock
While Draper may be on the defensive after his ICO baby Tezos became embroiled in scandal, leading to a class action lawsuit, he is still highly bullish about the future of the grand-daddy of digital currencies. Draper told Forbes:
“In five years, if you try to use fiat currency, they will laugh at you. Bitcoin and other cryptocurrencies will be so relevant … there will be no reason to have the fiat currencies.”
Bitcoin, and the rest of the cryptocurrency market, recently made it over $200 bln in a rally that saw Wall Street again add fuel to the fire by announcing trading in Bitcoin futures. This pales in comparison to the trillions of dollars in global fiat currency supply. Nonetheless, the fact that Bitcoin has appreciated over 600 percent this year is reason enough to believe it is on a rocketing trajectory, aiming at the fiat market.
Draper goes on to explain how fiat has its limitations, the same limitations that are really starting to bug a progressive and forward thinking global population.
Crossing the border for any currency is never a pleasing or easy exercise. The Nigerian Naira drops 30% when you cross the border. Outside Argentina, the country’s peso is currency nearly worthless, and there are other countries where this is true as well.
In Zimbabwe and Venezuela, their currencies have either disappeared totally, or are on the brink of total collapse, and already Bitcoin is doing its bit to pick up the pieces.
Seeing a future for ICOs
Draper may have been stung by Tezos, however, he still sees a future for altcoins and ICOs. The billionaire sees a future with hundreds, if not thousands, of different digital coins. Draper added:
“They’re all going to interrelate … and there will be exchange rates for all of them. My guess is that it will centralize around a wallet that you have, and when you pay for that Starbucks, your wallet will optimize to whichever currency has most value.”
Written by CoinTelegraph