Crypto Market Stabilizes as Tether Recovers, Real Bitcoin Price at $6,450

The crypto market has stabilized after a wild 24-hour period triggered by the sudden increase in the price of Bitcoin. On cryptocurrency-only and Tether-integrated exchanges like OKEx, Huobi, and Bitfinex, the price of Bitcoin exceeded $7,700, as the value of Tether (USDT), which is supposed to be pegged to that of the US dollar on a 1:1 ratio, fell substantially by more than 7 percent. The 7 percent drop in the price of USDT from $1 to $0.93 led Bitcoin premium on cryptocurrency-only exchanges to rise by an identical margin,…

China Threatens Overseas Tax Havens, Will Investors Flock to Crypto

Since early 2018, the government of China has tightened policies targeting millionaire investors in the country holding their wealth overseas to avoid large taxes, and it may lead local investors to alternative assets like crypto. Chinese investors rely on the Swiss offshore banking industry, Hong Kong real estate market, and foreign stock markets to hoard millions of dollars worth of properties, assets, and cash outside of mainland China. But, local financial authorities have started to crackdown on investors that amass significant wealth in overseas markets. Will Investors Move to Crypto?…

What’s Causing 2% Bitcoin Premium on Bitfinex? Possibility of Arbitrage

On Bitfinex, a leading cryptocurrency exchange, Bitcoin is being traded with a 2 percent premium based on the current price of $6,285. As BitMEX Research revealed, the premium of Bitcoin on Bitfinex continued to increase throughout the past week, during a period in which Tether (USDT) started to demonstrate a decline in price. Currently, on Bitfinex, all traders are requested to purchase or sell major cryptocurrencies like Bitcoin and Ethereum with USDT, due to the suspension of deposits into the exchange’s HSBC banking account. As the price of USDT fell…

Cryptocurrency Market Sentiment is Looking up: Huobi Research

Bitcoin’s recent sell-off notwithstanding, cryptocurrency investors are beginning to grow more optimistic about the market’s short-term direction. That’s according to the latest Market Sentiment Index Report from Huobi Research, which identified a slight uptick in investor optimism over the previous month. Released on Friday, the September report is based on from survey data compiled from Sept. 25 to Sept. 30 from 552 retail and institutional investors in 23 countries. Overall market sentiment clocked in at 71.1 points out of a maximum of 100, representing a 2.17 percent increase over August.…

Bitcoin Needs Blessing From SEC to Rally, Market Desperate

Naeem Aslam, chief market analyst at Think Markets UK, has stated that Bitcoin needs a blessing from the US Securities and Exchange Commission (SEC) to revitalize and experience a recovery in price. According to Aslam, the approval of the first Bitcoin exchange-traded fund (ETF), which would allow accredited investors and individual traders in US markets to invest in cryptocurrencies, could be a major factor to revitalize the cryptocurrency market. “Bitcoin needs some sort of a blessing and only that can revitalize the rally for the currency. I think that the…

Wait for Clear Bull Trend before Buying More Cryptocurrency

Wall Street strategy firm Fundstrat Global Advisors is among the mainstream financial industry’s biggest long-term cryptocurrency bulls. However, the firm is advising clients to hold off on buying more bitcoin — at least for right now. Writing in a recent note to clients, Fundstrat technical strategist Robert Sluymer said that investors seeking to increase their bitcoin holdings should wait for the market to make a clear trend reversal. “Investors should remain patient and wait for evidence of an improvement in ‘trend’ before increasing exposure,” wrote Sluymer in an excerpt of…

Bitcoin Price Intraday Analysis: BTC/USD Confirms Bull Trap

The Bitcoin-to-dollar exchange rate on Tuesday dropped 1.69 percent from 6734-fiat to 6620-fiat after confirming a bull trap. The current market volume is lower than expected to excite a steady upside – even downside. In our previous analysis, we had stated that a breakout would be confirmed once we climb over September 5 high. BTC/USD managed to test the level in yesterday’s upside action but didn’t see as many open long positions as closed ones. That said, 6734-fiat is already a level to watch out for to confirm a short-term break…

BTC/USD between Breakout and Bull Trap

The Bitcoin-to-Dollar exchange rate on Monday surged 2 percent against the US Dollar from 6590-fiat to 6729-fiat on bottom formation sentiment and increased institutional investments. The Bitcoin had a steady week, rising and dropping within a specific range with its trend facing upward. Many believe the digital currency has found its bottom and a massive investment from David Swensen, a prominent investor, made recently into two crypto funds have authenticated the speculation. It could be a reason Bitcoin is rejecting bears. The price yesterday almost formed a Doji on its…

Inside the Wall Street Tool that Could Ruin Bitcoin [Pt. 2]

Note: This is part 4 in a multi-part article series exploring rehypothecation and commingling in bitcoin and other cryptocurrency markets. Part 1 and part 2 are interviews with Caitlin Long and parts 3 and 4 ask the question, “How did we get to a place that where laws look like this?” The Problem with Clearing Beyond costs to the issuers themselves, this system has resulted in a huge rise in brokerage costs with over $100 billion in post-trade servicing fees every tear. Finally, there’s the issue of ownership, something that…

Inside the Wall Street Practice that Could Ruin Bitcoin

Note: This is part 3 in a multi-part article series exploring rehypothecation and commingling in bitcoin and other cryptocurrency markets. Part 1 and part 2 are interviews with Caitlin Long and parts 3 and 4 ask the question, “How did we get to a place that where laws look like this?” In order to understand why Wall Street veteran and cryptocurrency advocate Caitlin Long thinks that “rehypothecation” and “commingling” are going to be much-discussed topics in the cryptocurrency industry, we must understand Long’s background. The best way to do this…