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Bitcoin ETF: Van Eck BTC ETF withdrawn

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CBOE has withdrawn its application to list to Van Eck SolidX Bitcoin ETF on its exchange. According to a document published by the SEC yesterday.

CBOE has withdrawn its application to list to Van Eck SolidX Bitcoin ETF on its exchange. According to a document that was published by the Securities and Exchange Commission yesterday that they have indeed withdrawn their application to list physically backed bitcoin ETF.

CBOE is one of the homes of bitcoin futures contracts. CBOE chief came out and said that he sees the lack of traditional market-tracking index and futures contracts that most Wall Street investors use to hedge their bets as a limiting factor in the crypto market. Regulation is demanded by many companies and players before getting into crypto. He goes on to say that they have two regulators that are not taking calls right now, it doesn’t mean there is nothing they are interested in, it means that nothing is going to happen in this government shutdown.

 

Bitcoin Futures

Bitcoin futures contracts are not supremely popular actually. The CBOE only has 3475 contracts in open interest compared to 5038 back in January 2018. When we look at these versus the figures of CBOE’s volatility index of 370,000 contracts and bitcoin equals only 1% of the total trading activity compared to CBOE’s most traded product. This is something to keep in mind when we talk about futures contracts and how they are moving the markets back and forth.

Back late last year, we saw 9 different Bitcoin ETF being declined by the SEC including very high offerings from Gemini and SolidX. Regulators came out and said that there is a lack of control over the crypto markets and this has been the primary concern of the authorities in basically letting any of these applications go through but they are still trying. Even though the CBOE has removed their application to list a certain Bitcoin ETF, that is not the end of things by any means.

The Winklevoss twins from Gemini are still trying. Recently they said that they are committed as ever to making a Bitcoin ETF a reality. They said that bitcoin is a better asset than gold. They said that bitcoin is being better at being gold than gold and if they are right then over time the market cap of bitcoin will surpass the 7 trillion market cap of gold. The Winklevoss twins have been big believers in bitcoin for a long time.

 

Bitwise Bitcoin ETF:

Bitwise has submitted another Bitcoin ETF filing to the United States SEC. This is probably a terrible time to put the submission in as it could sit on the desk somewhere for months due to the government shutdown. Bitwise’s previous Bitcoin ETF filing was among those that were rejected by the SEC back in 2018.

The Global Research Cheif of Bitwise has said that the SEC has asked thoughtful and relevant questions of the quality of the crypto trading ecosystem, the liability of crypto pricing, the strength of the arbitrary function in crypto and the robustness of crypto custody. According to him, they have spent the past year researching these questions and look forward to discussing those findings with the SEC staff in connection with the filing and listing application. A key difference with their new filing versus their previous filing is that it uses a third party custody service. He also that while there can be no assurance that the 19B4 application will be granted or the SEC will ultimately accelerate the registration statement, they are optimistic that 2019 should be the year that a Bitcoin ETF launches.

 

Bakkt Exchange:

Bakkt is still not giving up on their bitcoin dreams by any means. They are going to be launching a cryptocurrency exchange, a payment processor and their futures contracts which may be approved by the CFTC which are just one small element. If Bakkt launches a Bitcoin ETF it may be approved by the SEC. A lot of what Bakkt wants to do needs approval and its really unfortunate that we are seeing this government shut down happening and it means that the approval is not forthcoming.

 

While all of this dysfunction continues, its actually a very great time to buy bitcoin at cheap prices because if tomorrow a Bitcoin ETF is approved that is going to affect the price of bitcoin to a great extent.

#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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