Is Another Short-Squeeze in Bitcoin Looming?

Following the strong run-up in bitcoin prices yesterday, traders may now be eyeing another opportunity for further growth as the short trade is getting unusually crowded for the number one cryptocurrency.

In what appears to be short-term traders positioning themselves for a further sell-off in bitcoin on the Bitfinex exchange, the ratio of short-to-long orders on the exchange reached 1.54 during the Asian trading session Tuesday morning, a level not seen since November last year.

Short-selling essentially involves speculating on lower prices in a market by borrowing an asset that a trader doesn’t currently own in order to sell it in the market. The asset can then be bought back at a lower price later, allowing the short-seller to profit from the difference between the selling price and the buying price.

While a high number of sellers in a market is generally considered a bad sign, it also opens up opportunities when it reaches extreme levels. This is what is known as a short-squeeze, and it is something we have seen repeatedly this year as the short-to-long ratio has hit the high levels we are at now.

If the market starts to move upwards in the near future, many of the short-sellers will exit their short positions by buying back bitcoins in the open market. As the price moves further up, even more short-sellers will get margin calls or hit their pre-set stop-loss levels, forcing them to cover their shorts, and creating a self-reinforcing mechanism that can cause sharp price increases. Whether this will happen again this time, however, still remains unclear.

Another possible explanation is that there is a significant amount of arbitrage going on right now centered on the Bitfinex exchange, following the surge in the bitcoin price yesterday that brought the price on Bitfinex to nearly USD 7,800 at its peak. That was close to USD 1,000 higher than on other exchanges like Coinbase, where bitcoin reached a high of about USD 6,800 yesterday.

An obvious way for traders to take advantage of a situation like that is to short-sell bitcoin on Bitfinex, while buying bitcoin on Coinbase or another exchange. That way, a trader would be profiting as the price gap between the exchanges closes.
The bitcoin price was nearly unchanged across exchanges on Tuesday morning, and still remains significantly higher on Bitfinex than on other exchanges, which many in the community attributes to speculation and fear about the status of the popular stablecoin Tether.


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Author: Fredrik Vold
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Over 23 Million People will be able to Buy Bitcoin in 2019 via Crypto-friendly Overstock Website

Overstock, the first major retailer to accept Bitcoin will be selling the leading cryptocurrency through its website to its millions of customers via Bitsy in 2019. CEO Patrick Byrne is not at all concerned about the market situation as he plans to bring crypto to its retail customer base.

Overstock will now sell Bitcoin on its website via Bitsy

Looks like everyone is going Bitcoin lately. From giants like Citi, Morgan Stanley, Goldman Sachs to Northern Trust and many more have made the plans to go the Bitcoin route. Overstock is not new to the crypto world as it has been the first major retail company to accept Bitcoin via Coinbase. After Yahoo Finance that is now allowing its US customers to buy and sell cryptos, Overstock has jumped onto the same train.

Utah, US-based Overstock.com is an internet retailer company which is in existence since 1997 has been revealed to formally begin selling Bitcoin through its website in the first half of 2019 according to its founder and CEO Patrick Byrne.

“We will be offering this through Overstock. Expect us to be offering bitcoin by Q1 or Q2 of next year.”

In an interview with Forbes, Byrne revealed that this feature will be offered through Bitsy. Bitsy is a crypto wallet and portfolio company of Medici Ventures, a blockchain-focused subsidiary of Overstock. Reportedly, the beta of Bitsy has been launched and the further plan is to fully integrate the wallet into the Overstock website by next year.

According to Similar Web, the company has over 23 million visitors. As the company provides its services all over the globe, it is yet to be revealed by the company if all of its global customers will be able to avail this service or only selected countries will be allowed.

Current market situation is of no concern

Right now the crypto market might not look like the perfect opportunity to launch the product but Byre is not at all concerned as he shares:

“When you had all these dot-com companies crashing, it wasn’t because something was wrong with the internet technology. Coins are going to come and go, but we’re long-term long on blockchain technology. There’s a parallel universe emerging with crypto, and I see Overstock as the wormhole between the two universes. You’re going to be seeing us bring this to our retail consumer base.”

As for the Bitsy wallet, it will serve as the user-friendly bridge between fiat and crypto space. This wallet apparently will cater to the not so tech savvy as explained by Medici COO Steve Hopkins,

“We’ve spent a lot of time really understanding how people who don’t have a computer science background interact with payment applications.”

The crypto purists are also included as it’s not working to be some sort of custodian as commented by Byrne:

“The whole point of crypto is to have a form of money that no authority could control. This is crypto as crypto is meant to be.”

Recently, Patrick Byrne was in the news for selling in total about $20.7 million worth of his shares that led them to fall 12%. But, he assured his investors with,

“Within a matter of days, I will reinvest most of this money into two co-investments with Overstock and Medici Ventures (thus I am eating a double dose of my own cooking, as months ago I promised you I would).”

With the way big names from the mainstream industries indulging into Bitcoin, the crypto market will soon see a huge surge in terms of adoption that might even extend to its price as well.

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Author: Sagar Saxena
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Novogratz Calls Another Bottom

Michael Novogratz, a former hedge-fund manager who is heavily invested in digital currencies, called a bottom on cryptocurrencies in a tweet, however, the community does not completely agree – but does hope that the bottom is here.

The BGCI chart that Novogratz references is the Bloomberg Galaxy Crypto index, which measures the performance of the largest digital currencies traded in dollars. Although it is still too early to say whether his prediction is right or not, the market did rise within the past 24 hours: Bitcoin is up around 2% as of the time of writing, Ethereum jumped more than 10%, while the vast majority of other top 50 coins by market capitalization are also in green.

Novogratz’s opinion on the current state of the market is not too widely shared, although this could be because the community seems to be losing their naive optimism.

“I think he doesn’t know any more than you do. But I like,” said Reddit user u/Bayminer. “Maybe. Maybe not,” concludes u/DelfinGuy. Even the replies to Novogratz’s original tweet include pessimism: “History doesn’t always repeat itself,” says @fathead___.


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Author: Sead Fadilpašić
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US Congressmen Start to Disclose Their Crypto Ownership

Bob Goodlatte, Republican congressman from Virginia and chairman of the House Judiciary Committee in the US, holds as much as USD 80,000 in cryptocurrency, according to a Sludge report on Monday, citing the congressman’s annual financial disclosure.

LIONBIT

Following new rules passed in June this year, members of the House of Representatives are now required to disclose any holdings of cryptocurrency along with other financial assets on an annual basis. According to the disclosure, at the time Goodlatte owned up to USD 50,000 in Bitcoin, and up to USD 15,000 each in Bitcoin Cash and Ethereum.

While the disclosure from Goodlatte was filed before the new rules about disclosure of cryptocurrency holdings went into effect, it is expected that several other members of Congress will report holdings of cryptocurrencies before next year’s deadline.

TIP

In addition, Sludge reports that Goodlatte’s son, Bobby Goodlatte Jr., is an investor in the popular US-based fiat-to-crypto exchange Coinbase. Goodlatte Jr. has been an outspoken bitcoin bull, tweeting in May about his investment case for Bitcoin and why it is a better investment than any startup.

Sludge further points out that one of the richest members of Congress, Democrat Jared Polis of Colorado was a co-founder of the Congressional Blockchain Caucus, which, among other things, have introduced legislation to facilitate the adoption of blockchain technology in the government.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Fredrik Vold
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Starbucks is Promoting Cryptocurrency!

Bitcoin (BTC)–Friday brought about a rather momentous announcement for the adoption of Bitcoin and cryptocurrency, when news broke that Starbucks is working on a collaboration to begin accepting crypto through a fiat intermediary.

LIONBIT

Called Bakkt, a global platform and ecosystem for digital assets, the exchange will allow for customers to trade crypto for fiat and participate in the purchase of items at Starbucks. While the company has since clarified that they will not be accepting Bitcoin directly, it does provide some level of validation for the industry in addition to giving the currency some much needed adoption-related exposure.

Bakkt Backed by Starbucks, Microsoft and More

Bakkt, the proposed exchange for simplifying the swap of BTC and fiat for market purposes, represents a collaboration between Starbucks, Microsoft and Intercontinental Exchange. Original articles ran with some misleading headlines that gave the appearance Starbucks was planning to outright accept Bitcoin for coffee. Instead, the company has made its intention clear that it wants to operate with cryptocurrency–albeit through the presence of a third party intermediary.

The news comes as a somewhat lackluster advancement for most diehard cryptocurrency fans. Investors and members of the community have had numerous opportunities to work with payment platforms, BitPay being one of the more popular, which convert BTC to fiat for purchases. However, the intermediary step neglects one of the primary functions of crypto: that it can work fine as a secure, digital payment in its present form without the need of exchanging to government currencies.

TIP

Nonetheless, interest from Starbucks and Microsoft is positive news for advancing Bitcoin’s brand and growing greater merchant-based adoption. Brian Kelly, a regular contributor to CNBC’s crypto shows, found the move to be overwhelmingly positive,

“It’s very big news for bitcoin because people say, ‘Where can you spend it?’ Now at every single Starbucks. Starbucks is seeing some kind of demand for acceptance of crypto and bitcoin, and to tie up with a huge regulated institution like the ICE is really positive for the space.”

Starbucks also held to its position as an innovator, viewing cryptocurrencies and digital assets as a possible extension for the company to stay at the forefront of societal shifts. Maria Smith, vice president of partnerships and payments for Starbucks, said in the statement confirming Bakkt that,
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks. As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”

While expectations were tempered via the follow-up announcement by Starbucks, clarifying that the company had no intention to deal directly with cryptocurrency, it does provide an avenue for greater exposure that could lead to direct BTC payments. At the very least, it helps fill the primary argument against cryptocurrency: that despite being defined as digital money, Bitcoin and other currencies have failed in giving users adequate outlets for spending.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Michael Lavere
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Here’s Why Bitcoin Will Grow SUBSTANTIALLY Into 2019

It seems like the string of bad news surrounding Bitcoin and other cryptocurrencies is slowly coming to and end revealing a light at the end of the tunnel for the market.



Over the past week, Bitcoin and other cryptocurrencies prices have been up relatively high, especially when you compare them to other recent prices.

Despite the obvious boom for the market last December and then a substantial fall as we entered the new year which continued into February.

Some analysts looking at the current boom in the market believe that there are a few reasons for this.

Alternate cryptocurrencies are achieving more independence from Bitcoin and its fluctuations in price.

Recently, we’ve seen many other cryptocurrencies slightly deviate from what Bitcoin dictates in the market. When we see Bitcoin jump in the market, we usually see Ripple and few other figureheads jump a similar amount at the same time. This has made the cryptocurrencies somewhat aligned.

Analysts also believe that, considering everything that has happened in the past week, the market could be well on its way for a bull run within the next few weeks. If you do intend to invest, some experts have recommended that you invest over time instead of investing in bulk all at once.

Michael Collins, founder and CEO of GN Compass says that after a four-month bear market, there are strong signs that we are heading towards a bull. He continues to say that:

“Bitcoin dropping to about 6600 on the 5th of this month [July] was probably the bottom for the year, it’s price will continue to climb and probably hit a peak of around 15,000 this year… Cardano is the most impressive so far.”

Collins’ outlook on the market is very optimistic and if anything, bullish.

Other experts say that investors are limited on time to get on the ‘cyrptocurrency train’. This is something investors will have to decide soon otherwise they might be to late. After hitting the $8500 level, we could see Bitcoin soon after, surging up to $10,000.

After having a tough past month, the last couple of weeks, have seen Ethereum recover nicely. After ETH jumped the $500 dollar hurdle there could be a bright future for the digital currency.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Robert Johnson 
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