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It has been a profitable week, largely because I caught the big Bitcoin (BTC) move up from the local bottom. I closed a majority of my altcoin trades, some on tight stops and others at a decent profit. Overall, I’m very happy with the results, although as I mentioned last week, I failed to take profit on certain alt trades when I had the chance and ended up with smaller gains or exiting near even. I have recently opened new positions again in FunFair (FUN) and EtherParty (FUEL) while closing the majority of my IOST (IOST) position for a 12% gain.
As always, let’s start with the daily chart to see how the general situation is for Bitcoin (BTC).
From a simple perspective, we can recognize the fact that BTC’s price has been holding below the 30-day moving average, or in layman’s terms, the average monthly price. This means that the bears are maintaining control, for now.
Bitcoin’s massive upwards momentum that was first incurred when BTC bounced from its recently established lows of $6,400 has begun showing signs of faltering, as buyers have been unable to maintain the momentum as bears ramp up the selling pressure.
It is important to note that one technical indicator is flashing a sign that BTC may climb as high as $8,400 in the near-term, but analysts still remain skeptical that the ongoing downtrend is anywhere close to ending.
CNBC is analyzing recent bullish claims on the price of Bitcoin from billionaire venture capitalist Tim Draper. Draper recently said Bitcoin will likely hit a quarter million dollars per BTC as early as next year and as late as 2023.
According to CNBC trader and analyst Brian Kelly, Bitcoin’s trendline since 2013 shows the leading cryptocurrency is on a long-term track toward Draper’s big number.
There is uncertainty around the next move of Bitcoin [BTC]. The futures volume reached a high on 18th December as Bitcoin bounced from $6500. Nevertheless, the bear or the bull action as disappeared ever since. The volume has been dropping from the past couple of days.
After several days of traversing the $6,000 range, it appears the currency is walking a path of recovery, having jumped to as high as $7,400 on Wednesday, December 18. At the time of writing, it seems bitcoin isn’t quite where it needs to be strength-wise and is still experiencing a few trips and falls here and there, for on the following day, the currency dropped by nearly $300 to hit the low $7,100 range again. This is basically where it was hanging prior to its slip into $6,000 territory.
Bitcoin futures have a fairly maligned reputation within the cryptocurrency industry. These divisive instruments have been held liable for bringing equal measures of ruin and legitimacy to the ecosystem. While some remain opposed due to the haphazard way in which these derivatives came onto the scene, crypto futures may prove beneficial for the crypto space; in fact, they might actually be a better trading instrument than BTC itself.
Kristin Smith, Executive Director of the Blockchain Association, spoke about whether or not there was progress with the Token Taxonomy Act, during an interview with The Scoop.
“We haven’t had as much time to focus on that with all that’s going on with Libra. But prior to the Libra announcement […], There have been a few more co-sponsors that have been added to the bill, but we haven’t been able to devote the time it takes to get a bunch more on board.”
Changpeng pointed out that there are lots of comments on Twitter under the post about a frozen payment. It shows that people still do not understand how the exchange regulation works, while its a broad topic. In terms of AML procedures, the exchange is obliged to monitor the user’s transactions. But the exchange is not doing it by itself. There are plenty of services gathering information from open blockchains like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, etc.
In a Medium post, CoinPoint set out 10 projections for the year to come, starting with the rise of central bank digital currencies. There’s a consensus around the world among central bank governors and governments at large that they want to have control of money and money supply. [The need for control] is probably more unique to China than anything else.
New BTC mining operations will come up across the world in different geographies such as Russia, Canada, and the US, which may reduce China‘s monopoly and truly decentralize the bitcoin mining ecosystem. Financial products such as hash rate futures will help bitcoin miners hedge themselves against the fluctuating BTC hash rate, as was reported by Reuters, a few days back. This might lead to an overall strengthening of confidence in bitcoin mining and the attraction of participants in droves to contribute their available power.
But eth is where it is, and the question is: can it survive without a monetary policy? The answer is no, you’d think, but it does have a monetary policy of sorts as shown above.
Eth’s monetary policy so far has been to follow bitcoin’s protocol policy, but a year or two after bitcoin in a lagging manner.
That does raise the question of ‘then why not bitcoin’ from an investment perspective, and the ratio has so far given a very clear answer.
Eth does however have its own value proposition in more easily programmable digital money, but arguably there hasn’t been a more squandered opportunity in the crypto space.
One of the most popular cryptocurrency exchanges, Poloniex, made an official announcement that they are introducing no KYC account registration.
Per the document, this is something that a lot of the people using the exchange have requested. Users are already able to take advantage of the new feature. They can start trading using only an email address and a password.
Bitcoin dominance. The rise of DeFi. Libra. QuadrigaCX. Crypto always has its fair share of news and drama, and 2019 was certainly no exception. But underneath the surface, many teams are heads down building open financial products that the world needs.
As a fund, 1confirmation has been focused on backing teams bringing useful products to market this year – and a number of those products are starting to see real usage beyond pure price speculation.
Product usage is ultimately what’s going to push the industry forward in the long-run and I spend a lot of time thinking about what will get product-market fit. Here are three under-the-radar product trends that I believe will break out meaningfully in 2020.