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Bitcoin’s Recovery Engine Loses Steam on Japanese Regulatory Unrest

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Bitcoin prices tumbled on Thursday after Japan’s financial watchdog said it plans to issue a warning against Binance for operating in the country without government approval. Binance’s CEO quickly fired back at the reports, claiming that his exchange was in “constructive dialogues” with the Japanese government.

BTC/USD Price Levels

After making headway for most of the week, bitcoin fell on Thursday to a low of $8,482. At the time of writing, BTC/USD was down more than 3% at $8,598. The slide pulled bitcoin’s market cap down to $147.5 billion, according to CoinMarketCap. The digital asset’s total value hit a high of $155.3 billion on Wednesday.

Eve with the decline, bitcoin is net positive for the week and controls 44% of the total cryptocurrency market. The so-called bitcoin dominance index is up around 12 percentage points from the record low seen in January.

Other crypto assets followed bitcoin lower on Thursday. The total market capitalization for all cryptocurrencies was off by about $5 billion compared with 24 hours ago.

Bitcoin’s 24-hour trade volumes fell to $5.6 billion, or roughly one-third of the total market turnover. Bitfinex and Binance were the busiest exchanges for BTC-related trades.

FSA Raises Red Flag Over Binance

Reuters and Nikkei reported Thursday that Japan’s Financial Services Authority (FSA) will issue a formal warning against Binance for setting up shop in the country without registration. According to the original Nikkei report, the FSA will work will pursue criminal charges against Binance if it fails to halt its domestic operators. Sixteen crypto exchange operators are currently registered with the FSA.

The report wasn’t taken lightly by Binance’s chief executive Changpeng Zhao, who criticized Nikkei for “irresponsible journalism” in a Thursday morning tweet.

“Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while we have an active dialog going on with them,” he said. At the time of writing, the tweet had more than 2,600 responses and over 4,700 likes.

Japan moved swiftly last year to recognize bitcoin and other digital currencies as legal tender, but regulators in the country have had to re-think their approach following multiple cyberattacks. Back in January, hackers made out with more than $500 million worth of NEM tokens in a large-scale attack on Coincheck, one of Tokyo’s largest exchanges. The attack prompted regulators to carry out inspections of 15 unlicensed exchanges. The investigation resulted in punitive measures for seven exchanges over insufficient risk controls.

In the wake of the attacks, Japan’s regulated exchanges announced plans to form a self-regulating body to “bolster trust” within the community.


Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 647 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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  1. jhmblvd

    March 23, 2018 at 6:44 am

    I find it hard to believe this market is moved by a notice to Binance from FSA in Japan. I am doing nothing until things mature because this up one day and down the next based on headlines or rumors is much more frightening than determining if a coin has fundamental value.

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Bitcoin

Bitcoin Price Resumes Slide as Volumes Dip, China Tariffs Weigh on Bitmain

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Bitcoin’s price declined on Friday, as tepid trade volumes kept the bulls in check following a stalled recovery attempt earlier in the week. On the news front, President Trump’s massive import duties on Chinese goods is beginning to take its toll on Bitmain, the nation’s largest mining harder manufacturer.

BTC/USD Update

After holding above $6,500 for most of the week, bitcoin’s price fell 1.3% on Friday to $6,452. Over the last 24 hours, BTC fluctuated between $6,549 and $6,450, according to CoinMarketCap.

The bitcoin price was still trading at a hefty premium on Bitfinex following an early-week implosion of Tether, a controversial stablecoin that lost its peg to the U.S. dollar. On Bitfinex, BTC/USD is trading around $6,578.

Bitcoin’s trade volume has declined sharply throughout the week. Over the last 24 hours, BTC turnover on virtual currency exchanges amounted to $3.8 billion. BitMEX, a popular derivatives platform, continues to be the largest market for BTC trades.

Even with the slump, bitcoin’s share of the overall cryptocurrency market capitalization remained close to 54%. Bitcoin’s dominance rate has increased in recent weeks as altcoins and tokens failed to make traction. At current prices, bitcoin has an overall capitalization of $111.9 billion. At the time of writing, the combined market cap of all digital assets was $207.5 billion. More than $11 billion in daily volumes were recorded for all assets combined.

Tariff War Takes Its Toll

The Trump administration’s imposed tariff war on Chinese producers is beginning to affect the nation’s bitcoin mining manufacturers. As the South China Morning Post recently reported, Bitmain has been dealing with new tariffs since Aug. 23. Two months prior, the company’s Antminer S9 product was reclassified by the U.S. Trade Representative as “electrical machinery apparatus,” which makes it subject to new taxes.

The import duties will exacerbate an already harsher outlook for the blockchain conglomerate. Bitmain has seen a sharp drop in mining rig demand caused by the yearlong slump in cryptocurrency prices. As a result, analysts foresee sizable losses in the company’s second-quarter earnings report.

Bitmain isn’t the only China-based blockchain company feeling the pinch of a new tariff war. Canaan and Ebang – China’s other major bitcoin mining manufacturers – could see a decline in shipments and profitability in the coming months. All three companies have announced plans to issue an initial public offering (IPO) in the not-too-distant future.

President Trump has imposed tariffs on more than $250 billion of Chinese goods. While Beijing has responded with countermeasures of its own, it will not be able to match the U.S. dollar-for-dollar given its large surplus with the country.

On Friday, the Chinese government reported annual GDP growth of 6.5% in the third quarter, the slowest since 2009.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 647 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Crypto Update: Coins Extend Losses as Bulls Fail to Show Up

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While the major cryptocurrencies haven’t been able to gain ground following Monday’s Tether-induced turmoil, the market has been stable in the past few days, and the top coins managed to hold up above their short-term support levels.

After yesterday’s slightly bearish session, overnight, Bitcoin, Ethereum, and Ripple all drifted the narrow ranges that developed during the week, and most of the smaller coins also turned lower, even as volatility remains relatively low.

The total value of the market dropped to $207 billion, but it’s still well above the bear market low, and the segment avoided a major technical breakdown that was looming after last week’s selloff. That said, the long-term picture is still bearish in the case of most of the majors, and our trend model is also on sell signals across the board from a short-term perspective.

On another negative note, Ripple and Stellar also joined the decline yesterday after showing strength this week, and the segment is still missing a bullish leadership.


BTC/USD, 4-Hour Chart Analysis

While Bitcoin dropped below the very narrow post-spike trading range, it continues to trade above the primary support level near $6275, and well above the lows from last week. We maintain our short-term sell signal on the coin, as it failed to recapture the $6500 level, and although the long-term signal is still neutral for BTC traders still shouldn’t enter positions here.

Further resistance levels are ahead near $6750 and $7000, while above the key long-term support zone near $5850, a weaker level is also found near $6000 and the next major zone is between $5000 and $5100.

Ethereum Dips Below $200 as Ripple Tests Long-Term Zone Again

XRP/USD, 4-Hour Chart Analysis

As Ripple’s relative strength faded, the third largest coin quickly gave back most of Monday’s gains, and now it trades right at the key long-term support/resistance zone between $0.42 and $0.46 zone. The lack of bullish follow-through is a negative sign for the whole segment and it gave another confirmation of the still apparent selling pressure on the majors.

With that in mind, traders still shouldn’t enter positions here, even as XRP remains above the recent triangle consolidation pattern, with strong resistance ahead at $0.51, $0.54, $0.57, and with further resistance zones found near $0.375 and $0.35.

 

ETH/USD, 4-Hour Chart Analysis

Ethereum showed no sign of relative strength this week, and the coin is back below the $200, although the decline also lacked momentum so far. The second largest digital currency is clearly above the next strong support level at $180, with further levels just below that near $170 and $160.

ETH remains on sell signals on both time-frames given the dominant broader declining trend and the short-term weakness, and odds still favor the test of the bear market low in the coming weeks, with strong resistance levels still ahead at $235 and $260.

IOTA/USD, 4-Hour Chart Analysis

Most of the smaller altcoins are also under clear selling pressure, with the likes of Monero, IOTA, EOS, and NEO all drifting lower in the past couple of days. Litecoin also followed the broader market lower so far today, and the coin is already testing the key $51 level, as we expected after showing weakness earlier on this week. A move below primary support would warn of a test of the bear market low near $47 with the next major zone found at $44.

LTC/USD, 4-Hour Chart Analysis

With that in mind, traders and investors should stay away from the coin until at least s short-term trend change, with strong resistance levels ahead near $56, $59, and $64.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 380 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Bitcoin

Bitcoin Price Resumes Holding Pattern as Futures Trading Soars

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The bitcoin price remained locked in a sideways pattern on Thursday, as virtual exchange volumes continued to retreat following a sharp early-week spike. However, a new report from the Chicago Mercantile Exchange (CME) confirmed a sharp increase in trading in bitcoin futures contracts, a sign that institutional investors were flocking to the asset.

BTC/USD Update

Bitcoin’s price is currently averaging $6,543 on major exchanges, according to CoinMarketCap. The leading digital currency continues to trade at a premium on Bitfinex, where prices hover around $6,720. In both cases, BTC is virtually unchanged compared with 24 hours ago.

The digital currency market has experienced very little change over the past three days as trade volumes continued to dry up following an unexpected upsurge on Monday. Bitcoin’s trade volumes are back down below $4 billion,

BTC is up nearly 4% this week, having adding more than $4 billion to its market cap. The digital currency is currently valued at $113.4 billion for a 53.7% share of the overall market.

The crypto market cap was valued at $211.1 billion on Thursday. Trading volumes across all major assets averaged $11.6 billion compared with 24 hours ago.

Bitcoin Futures Volumes on the Rise

Institutional interest in bitcoin appears to be on the rise, according to the latest trading data published by CME Group. Trading in CME bitcoin futures contracts jumped 41% in the third quarter, with the total number of open contracts increasing 19%.

Bitcoin futures contracts have recorded an average daily trade volume of 2,582 this year, with open interest reaching 2,696 contracts. Volumes appear to have spiked throughout the month of September, reaching a high of 5,881 contracts on Sept. 21.

The following chart, courtesy of CME, provides an overview of bitcoin futures volume based on notional value traded and open interest.

Bitcoin futures appear to have had a stabilizing effect on the market, a contrary view to the one proposed by the San Francisco Federal Reserve, which argued that securitization induced more volatility. Volatility in bitcoin’s spot price has been declining all year long, having recently touched new 17-month lows.

Over the past 30 days, bitcoin’s price volatility has averaged less than 2%, according to bitvol.info. The website’s volatility tracker reads 2.91% over the last 120 days and 3.82% over a 252-day window.

The CME futures contract expires at the end of the month. The contract offered by CBOE closes toward the middle of the month.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 647 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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