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The CEO of the much-hyped Bitcoin futures platform Bakkt has been appointed to serve in the US Senate. Loeffler will replace Georgia Senator Johnny Isakson, who is due to retire at the end of this month.

At first glance, Kelly Loeffler’s appointment, like the launch of Bakkt itself, looks like an unmitigated success for the crypto industry. However, not everyone is so convinced that Bakkt and Loeffler have the best intentions for Bitcoin.

Bakkt CEO to Replace Georgia Senator, Will Bitcoin Benefit?

As widely reported this afternoon, Georgia State Governor Brian Kemp announced Kelly Loeffler as the outgoing Senator Johnny Isakson’s replacement. Loeffler is expected to take office on the first day of the new year, the day following Isakson’s retirement.

According to a report in NationalPublicRadio, many people had expected Loeffler to take Isakson’s place in the Senate, despite being a political newcomer herself. However, the Bakkt CEO is still a controversial choice. President Trump’s closest allies in the Republican Party had reportedly wanted Kemp to decide in favour of Rep. Doug Collins, an ardent supporter of US head of state.

At first glance, the appointment of a US senator so clearly identified with Bitcoin seems wildly bullish for the industry’s future. Loeffler has written optimistically about digital currency in many Medium posts previously. Meanwhile Bakkt itself purports to be an effort to bring regulation to Bitcoin market and to offer institutional investors a way to take exposure to take receipt of physical Bitcoin in a way more familiar to them.

Increasing trading volumes since Bakkt’s September launch have excited the crypto asset industry. However, as NewsBTC reported last week, this volume has been almost exclusively comprised of Bakkt’s monthly, cash-settled Bitcoin futures, rather than its daily physically-settled contracts that had so many people believing a wave of institutional investors would suddenly use the new platform to buy Bitcoin.

By never requiring traders to take receipt of actual Bitcoin, many analysts argue that futures contracts can be used to exert downwards pressure on the price of an asset. In fact, the CME Group’s Leo Melamed told Reuters at the December 2018 launch of his own trading venue’s Bitcoin futures contracts that the then new product was an effort to “tame” Bitcoin.

Other commentators on the industry have even gone so far as to say that Bakkt, like the CME Group’s futures contracts, represents an attack on Bitcoin. In the video below, YouTuber Chico Crypto (@ChicoCrypto) argues that since there is scant information about withdrawing from the Bakkt Warehouse custody solution, it’s unclear if traders could ever even take receipt of the actual Bitcoin themselves. The YouTuber contends that the lack of clear information about receiving the asset traded makes Bakkt’s futures different from any they’ve ever encountered before since such information is usually publicly available. For them Bakkt represents:

“… just another product to attack [Bitcoin’s] growth and keep the dollar dominant.”

In closing, Chico Crypto also raises a point about Loeffler’s own prior dealings with the US government. The YouTuber points out that the Bakkt CEO attended the final match of the FIFA Women’s World Cup as part of Trump’s Presidential Delegation. Such a selection seems curious given that Trump tweeted his strong disapproval of all things crypto the very same month he announced the names of those that would be accompanying him to the match.

 

Related Reading: Bakkt Bitcoin Futures Reach Record High as BTC Options Launch Nears

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Rick D. , 2019-12-05 00:00:41

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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