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Bullish Bitcoin Altcoin Carnage Continues, Analyst Says Capitulation Just Beginning

Bitcoin’s early April 2019 rally through resistance at $4,200 halted the ongoing altcoin season in its tracks, and following the latest upward move in Bitcoin price charts the value of altcoins both relative to BTC and USD have began to plummet – with some setting new bear market lows.

In the aftermath of yesterday’s further Bitcoin rally to $5,650, BTC dominance broke out of resistance, causing additional bleeding in the altcoin market. As the decline continues, a leading altcoin analyst believes that capitulation in altcoins has only just begun, while another analyst predicts just how far BTC dominance will rise during the altcoin reckoning.

Altcoin Market a Sea of Red Following Further Upward Bitcoin Movement

The overall altcoin market has taken a massive hit in the last 24 hours, with most of the top ten experiencing 8% or more losses on the day.

EOS was the worst performer of the crypto top ten, dumping as much as 9.65% of its USD value, while Ripple, which has performed very poorly during the short-lived alt season, dropped another 7.5% to 30 cents per XRP.

Related Reading | Altcoin Trader: Alt Market Cap Shows Longest Accumulation Phase Yet 

Litecoin, which helped lead the initial altcoin rally and sparked what many were calling an alt season, has fallen 7.88% to $72.32 and is down over $20 from its local high of $94.

Even Binance Coin that’s shown resilience in the face of most bearish selloffs since the bottom was in back in December, took a significant hit.

Bitcoin Pumping While Altcoins Dump Inverse Relationship Began At Break of $4,200

Crypto analyst Luke Martin has shared a chart that visualizes when the inverse correlation between BTC and alts began. As demonstrated in the chart, altcoins had been closely following Bitcoin alongside it for each peak and trough, up until the Bitcoin’s break of $4,200.

At that time, Bitcoin dominance broke up, potentially suggesting that the Bitcoin rally was fueled by alt season profit taking. Another analyst, who goes by the name BenjaminBlunts claims that BTC dominance breaking up “does not bode well for alts,” which has already been shown clearly in the recent bearish price action in the altcoin space.

The trader also shared a chart that calls for a BTC dominance target of 64%, up 10% from yesterday’s 54% dominance. What’s not clear, though, is if dominance will rise due to altcoins bleeding further, or due to Bitcoin further rallying.

Another analyst, DonAlt, however, thinks it’s the former, and warns that “capitulation” may just be beginning. He called the messages he received from his followers asking if they should liquidate their altcoin holdings “heartbreaking.”

For those that bought during the peak of the bull run back in December 2017, seeing the first glimpse of altcoin bags showing signs of life once again, only to see them fall to new lows, is nothing short of heartbreaking for crypto investors.

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New Poll Reveals Italy As The Most Bullish European Country For Bitcoin

A new bitFlyer poll that sampled the opinions of 10,000 respondents across ten countries in Europe revealed a high percentage of Europeans, particularly in Italy and Norway, who say cryptocurrencies aren’t a fad.


Europeans Are Bullish On Cryptocurrencies

According to the details of the Google Survey carried out by bitFlyer, 63 percent (more than two-thirds) of Europeans believe cryptocurrencies will still exist by 2029.

Of the ten countries covered in the poll, participants from Norway showed the highest level of confidence in cryptocurrencies as 73 percent believe virtual currencies will still be around in ten years’ time.

French responders had the least confidence of the lot with only 55 percent expressing the belief that cryptos will last the next decade.

But Many Don’t Think Bitcoin Will Last

While the survey suggests Europeans are generally bullish on cryptocurrency as a whole, that enthusiasm didn’t extend towards Bitcoin. According to bitFlyer, the survey involved seven possible responses to the question “do you think Bitcoin will still exist in 10 years’ time.”

Only 49 percent of participants said that believed Bitcoin would last the decade. Italy had the highest percentage of Bitcoin believers with 55 percent while France once again occupied the rear with 40 percent.

Furthermore, only seven percent of the participants said Bitcoin will exist as a security or investment tool. Commenting on the patterns observed in the result, Andy Bryant, the COO of bitFlyer said:

The fact that Bitcoin is not generating as much support as other cryptocurrencies is in part a symptom of the market’s volatility but is also a direct impact of the constant media attention that is associated to its volatility.

Poll results aside, Bitcoin continues to outperform the rest of the cryptocurrency market combined. Recent upward gains in April have dampened most of the ground accumulated by altcoins during so-called ‘altseason.’

On the technical side, Bitcoin continues to process greater value transactions that all altcoins combined and even those with lower transaction fees. Security and network effect reign supreme.

From Hype to Legitimate Asset Class

On the whole, the results of bitFlyer’s Euro Poll are in line with the emerging sentiment of cryptocurrencies moving from hype to legitimate asset class. Earlier in April, an IMF Twitter poll showed more than half of responders saying that cryptos will become mainstream within the next five years.

Since 2018, there has been a considerable uptick in institutional involvement in the cryptocurrency market. From endowment funds taking investment positions to multinational conglomerates looking to establish vital crypto-based services.

The growing consensus among analysts is that the next crypto bull run will emerge on the back of a strengthened asset class as against the hype-driven speculative play that characterized the 2017 bull market.

These analysts point to the emergence of a robust Bitcoin market and technical fundamentals, as well as the decline of the ICO market.

Do you think Bitcoin will continue to be king of crypto? Let us know your thoughts in the comments below.


Images via bitFlyer, Shutterstock

The Rundown

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Binance CFO Talks About His ‘Exciting’ Journey in Exclusive Interview

It was the last hour of the final day at Paris Blockchain Week Summit. The charismatic Binance CFO Wei Zhao had been speaking back to back. Yet, despite the time and the fact that he must have repeated himself over and over for two solid days, he seemed undeterred. Wearing jeans and a Binance hoodie, he bounded up to meet me, vigorously shaking my hand, clearly enjoying being the man of the moment.


If this were a celebrity party, Binance would be the VIP guest. Changpeng Zhao (CZ)’s creation seems unstoppable. Every project wants to be on Binance, from regular token listings to holding IEOs on the Binance LaunchPad. The Binance Chain has just launched, its native BNB token is climbing in price, and the company has the power to influence the entire community and delist tokens at will.

Binance Won’t Be Leaving Malta Any Time Soon

Minister for Digital Affairs Cedric O later said in a press conference that one of their goals was attracting Binance to France. Yet Zhao confessed to me that he had no idea the French had pushed forward new regulation until now.

With a rather high taxation rate for crypto companies at 30 percent, regulations around ICOs (that no one’s doing anymore) and a lot less flexibility than Malta, it looks unlikely that Binance will move to France anytime soon. Although I wasn’t privy to any backroom chats.

binance cfo wei zhao

My interview was with Wei Zhao, the man partially responsible for Binance’s epic growth. “I help companies to scale and to grow,” he tells me. Binance now has over 400 people in 30 countries. That’s “a decent sized organization.”

One thing that I have helped to launch is our fiat to crypto offering. In January, we launched our fiat to crypto, pound to BTC. We’re also doing Singapore. Last year, we launched in Uganda… My approach has been basically to build up our presence in the regulated world and build up more fiat.

Bridging the Traditional Financial World with Crypto

With a background of working in traditional finance, and grooming companies to go public, it’s unsurprising that another major focus of Zhao is institutional investors.

“I worked in Hong Kong, so I’ve been CFO for about four different companies, two of which went public. So, I am quite adept in dealing with bankers, and working with bankers, I am a banker myself. I helped to launch our OTC trading services, Binance off-exchange services. I help bring people from traditional bond traders and that type of trader to cryptocurrency.”

Indeed, the surge in Binance’s OTC trading drove the company’s near $80 million first-quarter profits.

What It’s Like Working at Binance

I ask why he made the leap from traditional finance to crypto. He says he would not have done it for any other company than Binance.

I think we are really different from other companies. Most are just exchanges, but we really fiercely want to make an impact in the world… The journey has been awesome so far and I’m in it for the long haul.

One of the best things about his job? Traveling to different places. “I flew around the world four or five times already,” he laughs.

It does speak to the borderless nature of cryptocurrencies. Yes, it’s a digital business but at the end of the day, it’s still a human business, it’s a very human business. The reason this industry is growing so much is that people in this industry travel so much. Like 10 times more than in any other industry.

There’s nothing like human interaction, face to face human talking about things, that’s how you can really impact change.

Does the Recent Leap in Bitcoin Mean the Bear Market Is Over?

It’s not a decisive “yes” when I ask if the bear market is over. Zhao pauses and leans back in his chair. There’s a short silence before he forms his answer, leading me to believe the opposite may be true. But with the most profitable exchange in crypto, bear market or no, nothing’s stopping Binance. He says:

I think there’s generally a lot more interest across the board despite adverse regulation and other adversities. You see general interest in bitcoin from traditional industries, and the rest of the world is showing interest in projects and I think all of it will contribute to the continued growth of the market. The fact that people are thinking “how is this going to impact my business?” Facebook JPMorgan… it lends credibility to the space.

I ask if companies like JPMorgan and Facebook lending “credibility” is rather ironic, considering how Bitcoin was born. He replies:

You need a push which is driven by guys like Facebook and JPMorgan, that gets people thinking about how that’s going to impact institutions and the market. It lends credibility, mindshare, and shows that our actions are getting noticed, that’s what it takes.

What It’s Like Working with CZ

So, what’s it like working with one of crypto’s biggest personalities? “Awesome, it really is awesome!” he enthuses, “he’s extremely transparent, diligent and extremely honest, he’s also extremely intelligent, and very patient.”

changpeng zhao cz binance

I ask if he was in complete agreement about the recent delisting of Bitcoin SV, to which he nods his head. Presumably, he’s been fielding questions on the subject all day long and his answer is extremely diplomatic.

“We have a very rigorous delisting process, and we also have a regular quarterly review. This quarter a lot of the comments we’ve written out our rationality… I don’t have any other comments on that.”

Finally then, who does Zhao believe that Satoshi Nakamoto is? Clearly, not Craig Wright.

“I think its a community,” he replies. “It’s like ‘I am Bitcoin’, you know that movie? ‘I am bah, blah blah’? It’s like that with Bitcoin. It’s a community. And we’re surviving… I believe that every day that you survive extends your survival… There is a reason why he or she wants to remain anonymous, because it’s not important, it’s a community.”

What do you think of Zhao’s comments? Let us know your thoughts below!


Images via Shutterstock

The Rundown

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Altcoin Trader: Alt Market Cap Shows Longest Accumulation Phase Yet

Over the last few months, crypto traders and analysts have been ranting and raving about an apparent alt season, that saw the price of many altcoins double in value. It wasn’t until Bitcoin’s recent rally that the alt season was stopped in its tracked.

However, according to one experienced altcoin trader and author, altcoins are still in an accumulation phase – the longest accumulation phase yet for altcoins – which suggests a markup phase may be around the corner.

Altcoin Market Accumulation Phase Continues, Longest on Record

Since the start of 2019, various altcoins, front run by a Litecoin rally, have painted double digit gains. Many have gone on to outright double in value in just a few short weeks after breaking out of downtrend resistance.

The surge in pricing across low-,mid-, and high-cap altcoins has caused many to claim that an alt season was in full effect. Even Google Trends data showed a surge in interest in Bitcoin’s brethren.

Related Reading | 2019 Crypto Alt Season Kicks Off With Over 20 Altcoins Doubling in Value 

However, a new chart shared by experienced altcoin trader and author of the Altcoin Trader’s Handbook, Nik Patel, suggests that the altcoin market cap is still entrenched in an accumulation phase. The current accumulation phase, according to the chart, which covers off on the last five years of total altcoin valuations by market cap, is the longest on record lasting 260 days.

Prior to the current accumulation cycle, the previous one occurred in late 2016 and early 2017, lasting for 108 days. The surge helped create the crypto hype bubble that popped in late 2017, and created a deep correction that turned into the longest bear market in history.

Alt Season Hasn’t Started Yet, Mark Up Comes After Accumulation

If the altcoin market truly is in the accumulation phase still, despite many skyrocketing in value, what comes next might stun the world in terms of profit-generating growth.

Accumulation phases often occur when “smart money” – as it’s called – begins investing in an asset during the peaks of selloffs, or when “blood is in the streets,” as the late Baron Rothschild would say.

Following most accumulation phases, comes a mark up phase, where the value of the asset increases significantly. Once the price of the asset has grown enough, a phase of distribution, or selling of the asset, will take place.

Related Reading | Altcoin Season Is Here, But What’s That Mean for Bitcoin (BTC) Dominance?

Should the mark up phase not even have happened yet, the glimmer of an alt season we’ve witnessed thus far will be little more than a flash in the pan in comparison. But it all hinges on what Bitcoin decides to do, as the altcoin market cap appears to be held back by Bitcoin dominance. Bitcoin dominance was close to falling below 50% for the first time in 2019, however, the recent Bitcoin rally caused dominance to surge, and altcoins to fall.

Featured image from Shutterstock

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It’s ‘Irresponsible’ For Investors Not To Have Any Bitcoin Exposure – Says Xapo CEO

Xapo CEO, Wences Casares, believes that it would be “irresponsible” for any investor not to have at least a one percent position in bitcoin as it could have a bigger impact on the world than the internet. 


Minimal Bitcoin Exposure, Maximum Gains

In an essay published by Kana and Katana back in March 2019, the Xapo chief laid down an argument for Bitcoin to take up one percent of every investment portfolio. According to Casares, a $10 million with a one percent allocation to BTC could yield close to $25 million within seven to ten years.

Casares based his analysis on his forecast that BTC could top $1 million within the stated timeframe. Conversely, if Bitcoin fails, the portfolio would only have lost the original one percent – $100,000.

Wences Casares

According to Casares:

Bitcoin offers a unique opportunity for a non-material exposure to produce a material outcome. It would be irresponsible to have an exposure to Bitcoin that one cannot afford to lose because the risk of losing the principal is very real. But it would be almost as irresponsible to not have any exposure at all.

Investment legend, Biller Miller is a popular example of Casares’ logic. In July 2017, Miller took up a one percent position on BTC. By mid-December 2017, BTC accounted for 50 percent of Miller’s total asset under management, simply because BTC/USD gained almost 700 percent in value during that period.

The 2018 bear market probably, reduced Bitcoin’s proportion with respect to the rest of Miller’s portfolio. However, with BTC price still double what it was in July 2017, Miller’s bitcoin bag is still in the green.

Bitcoin Resembles the Early Internet

For Casares, whose company stores over $10 billion in BTC for clients in Swiss ‘bunkers,’ the signs pointing towards Bitcoin’s long-term success continue to become evident as time passes. For one, the Xapo chief says Bitcoin resembles the early internet in many ways.

Casares highlighted how since the establishment of the Internet, the world has seen little of protocol developments and with more emphasis on creating companies. Bitcoin, according to the Xapo CEO represents a new paradigm-altering protocol that could have even greater ramifications than the Internet.

Coming from a purely technical standpoint, Casares does agree that there exists the possibility that Bitcoin might not necessarily fail, but become obsolete. He says companies could create solutions on a protocol level that appeal more to users than Bitcoin’s current state.

Casares has previously made expressed similar sentiments, describing Bitcoin as an intellectual experiment that could still fail.

However, Bitcoin’s leaderless open-source and borderless approach to both its tech and economics are diminishing this possibility alongside its ever-growing network effect and first-mover advantage.

Meanwhile, there is a growing unease with the policies of governments and central banks that are making BTC become an even more attractive proposition to investors as a hedge.

Forget Altcoins, BTC is the Real Deal

Casares also adds that the other over 2,000 altcoins don’t stand a chance. The Xapo CEO says Bitcoin as a protocol is already on its way to succeeding in ways altcoins can’t.

5 Altcoins with Major Events the week of April 1, 2018 (Gains Likely to Beat BTC Returns!)

Elaborating on the gulf in utility and adoption, Casares noted:

Over 60 million people own Bitcoin and over 1 million people become new owners every month. The other 1,000 cryptocurrencies [that process at least one transaction per day] have less than 5 million owners combined, so Bitcoin will add more users in the next 5 months than those 1,000 cryptocurrencies added in their combined history.

Back in August 2018, Casares declared that altcoins will eventually face a “mass extinction event.” Commentators like Matt Hougan of Bitwise and Barry Silbert of Digital Currency group also believe that most altcoins will not survive the crypto version of the dot-com bubble bursting. After which, most altcoins will go to zero.

Bitcoin’s superiority becomes even more apparent given that its value transfer dwarfs all cryptocurrencies despite having fewer BTC transactions per day than some altcoins.

Should investment portfolios consider taking up a one percent position on Bitcoin? Share your thoughts with us in the comments below.


Image via Twitter (@wences), realidadeconomica.com.ar

The Rundown