Cryptocurrencies and their value have increased globally since 2008

Cryptocurrencies and their value can be determined from the fact that they, unlike the first monetary assets, weren’t created out of need but ended up …

Cryptocurrencies and their value can be determined from the fact that they, unlike the first monetary assets, weren’t created out of need but ended up being one.

The past five weeks have been rough for all the cryptocurrencies and the following report shows the instability of these currencies, the change in their value along with causes and progress if any during that period.

The Standpoint of the current crypto market

The SFOX Multi-Factor Market Index from August 5th, 2019 to September 9th, 2019 has made the climb towards the right side of the meter and is now mildly bullish.

The mater factors that are responsible for the determination of this index’s monthly worth are:

  1. Rate of change on price
  2. Market’s emotional standing
  3. A sector’s constant development

The range of this index is from highly bearish to highly bullish. The formula used for its calculation is proprietary and uses a combination of ciphered data related to cryptocurrency’s online traffic. This “Mildly bullish” rating means that there has been a uniform growth in all the cryptocurrencies.

Cryptocurrencies and their value shouldn’t be undermined

As of Aug 5th– Aug 10thBitcoin movement has been increased due to trade concerns between the U.S. and China. But will Bitcoin be able to withstand the decline in its value when there is a continued debate globally that shows deep concern over that fact the BTC’s value dropped by 4% on the 15th of August?

Investors remain unsure of how they should work with BTC because of its unpredictable behavior. But some of them still took the chance to invest in crypto and blockchain solutions as of Aug 5th to Sep 11th.

For example:

  1. Job listings were posted by Mastercard for payment solutions based on blockchain. A technology that they developed with R3 on Aug 5th.
  2. A payment method developed by Allianz Insurance based on blockchain- Aug 8th.

This kind of news is what’s driving this industry, but no one is sure for how long. The only crypto-asset with an increased monthly value was Ethereum Classic reported on Sep 9.

Everything seems to be pointing towards the instability of this market. A decrease in sentiment “Extreme Fear” was reported in spite of 0.61% BTC returns the same day. Even after the positive comments made by the founder of Ethereum, it’s value still declined by 9%.

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SFOX moves crypto market index from ‘neutral’ to ‘mildly bullish’

They then analysed the performance of six of the leading crypto-assets – Bitcoin, Ether, Bitcoin Cash, Litecoin, Bitcoin SV, and Ethereum Classic.

It almost feels as if the crypto markets are taking a break. Despite geopolitical pressures that tend to impact Bitcoin’s price such as the US-China trade war and industry news like Bakkt’s Bitcoin futures green light, the world’s largest digital asset has hovered around $10,000 for a while now.

Yet, lack of drastic price movements aside, SFOX – a crypto-assets dealer for institutional traders and investors – has moved its market index from ‘neutral’ to ‘mildly bullish’ for September. But why?

The SFOX volatility report for August

In the SFOX crypto volatility report for August, its research team gathered data on price, volatility, and volume from eight leading liquidity providers and exchanges. They then analysed the performance of six of the leading crypto-assets – Bitcoin, Ether, Bitcoin Cash, Litecoin, Bitcoin SV, and Ethereum Classic.

Based on its findings, SFOX nudged its needle over to slightly bullish for the rest of the month ahead. Before you get too excited though, the crypto-assets dealer clarifies: “It’s worth emphasising that this month’s index reading only slightly favours mildly bullish over neutral.”

So what factors are causing the upswing in the market outlook?

The report focuses on three key areas – market sentiment, price momentum, and the continued advancement of the sector.

SFOX notes that over the last five weeks, the sector has seen continued innovation and interest in Bitcoin from institutional investors.

However, that has also been accompanied by “renewed uncertainty about exactly how cryptocurrencies and other blockchain technology will play into global financial markets”.

A global hedge or a speculative asset?

For example, there’s still a strong and potentially valid argument that Bitcoin provides a hedge against global markets when the outlook is uncertain, and that Chinese investors flock to Bitcoin as a safe-haven asset when concerns over the US-China trade war heighten.

To some extent, this argument was supported on August 5 when the yuan fell to its lowest level against the dollar in 11 years and BTC price spiked by 7% from $10,851 to $11,651. However, the price of gold also increased by 1% during that same period.

In stark contrast, however, when the US Treasury market saw an inverted yield curve, gold price raised again slightly as expected by 0.38% while BTC price fell by 4%.

These price movements, based on the argument that Bitcoin is “digital gold”, led SFOX to conclude that “investors are simply unsure how much of a safe haven BTC is”.

Furthermore, David Martin of Blockforce Capital told Bloomberg that it’s just as easy to make an argument for the fact that Bitcoin is a global hedge as it is a speculative asset.

Major companies investing in the space

While global investors continue to debate over Bitcoin’s role in global markets, major companies are investing in blockchain technology and crypto in general. On August 5, Mastercard posted job positions for a blockchain-based solution the company is developing with R3.

On August 8, Allianz Insurance announced that it is developing a blockchain-based payment system, and on August 26, Telegram finally opened up its testnet for Button Wallet.

All these events appeared to have corresponded with slight price increases. However, it’s unclear “how much news of continued development is really driving the market, especially when these offerings are still in developmental stages”.

Market sentiment appears to be uncertain

From the report’s findings, market sentiment reflects a level of uncertainty for the outcome of crypto. Despite BTC price making returns of 0.61% on August 17, alternative.me’s Crypto Greed and Fear Index plunged to a 244-day low of “extreme fear”.

Hot on the heels of that, Ethereum founder Vitalik Buterin caused a flutter by announcing that the “Ethereum blockchain is almost full” and that’s driving up transaction fees.

Ethereum is “almost full”: The digital ledger behind the supposed better version of Bitcoin is running out of capacity https://t.co/enX8QFkb08

— Bloomberg (@business) August 26, 2019

While ETH devs continue to work night and day on Ethereum 2.0, ETH price has gradually declined since that comment and is currently down some 9% since August 19. Finally, the gargantuan movement of $1 billion worth of BTC from one wallet to another on September 5 is still being theorised over.

🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 94,504 #BTC (1,018,147,922 USD) transferred from unknown wallet to unknown wallet

Tx: https://t.co/VWb8slswa8

— Whale Alert (@whale_alert) September 6, 2019

Despite the continued maturity of the sector, these occurrences still fuel uncertainty about its future.

There is plenty of positive sentiment and investment as well, however. Bakkt began taking deposits in advance of its launch, and the CME is reportedly preparing to launch BTC options trading.

SFOX believes that “this marks the latest step in the continued development of more sophisticated, institution-grade trading instruments in the crypto market”.

What factors to watch out for during the rest of September

As far as the markets go and the factors that could influence crypto volatility, SFOX states various key occurrences to keep an eye on for the rest of the month ahead.

These unsurprisingly include the launch of Bakkt on September 23 and the last-trade date for both CME BTC futures and BitMEX futures on September 27, as crypto volatility tends to move around the time of futures expirations.

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Defining The Crypto Movement

A good example is the Matic network, a base protocol and India’s second layer solution for Ethereum. While Ethereum is struggling beyond 15 …

A comprehensive report by the New York Times in 2018 detailed the flourishing crypto movement and the opulent lifestyle of the crypto rich. The reporting by the New York Times exposes the stereotypical manner in which crypto enthusiasts are ignorantly perceived.

When ripple surged a record 1240% in a month, guess what was rocking the headlines? Company CEO Chris Larsen. It’s a common storyline for news feeds to state that only a few people benefit. Cryptocurrencies are not about becoming fabulously wealthy as you are made to believe. It is a limited narrative that pedals skepticism on the transformative potential of cryptocurrencies.

Crypto Skeptics

Traditional financial institutions may be happy to benefit from bitcoin derivative contracts that are bought and sold via their institutions. They are however continually dismissive of the cryptocurrency movement.

JP Morgan Chase CEO Jamie Dimon once referred to cryptocurrencies as a fraud and a good option for drug dealers and murderers. Meanwhile, former PayPal CEO described bitcoin a colossal pump and dump scheme suited for criminal activity only. Likewise, Charles Munger did not hide his detest on the crypto movement. They have a good reason to be mad.

Their invention of cryptocurrencies defiles the comfort zones these institutions have. Cryptocurrencies are a threat to centralized monetary systems. So they won’t just let them have it without a fight.

Financial Inclusion

To some people, cryptocurrencies are just a way of becoming wealthy while for others, it is a threat to their business models. But many are who see them for what they are- a savior in turbulent and unstable situations. The unbanked have seen the benefits crypto is making in their lives. And this includes those in developing countries and those impacted by geopolitical turmoil.

Although Facebook’s new digital currency is yet unproven, it’s right on the mark. It targets the 1.7 billion adults with no access to financial systems. In the US alone, a quarter of the population are unbanked and are seeking a better option. Facebook Libra could fill this gap.

Crypto’s emergence transforms the way people relate to banks and how they extract value. The transformation is already taking center stage in countries like Venezuela where the inflation is 1.7 million percent. Crypto is allowing people to buy milk, food, and housing. Borderless money is making a difference in a collapsing economy.

People won’t depend on financial elites and established organizations anymore for relief. They can now do it themselves.

matic

New Opportunities for Entrepreneurs

Besides use case in crypto, blockchain has also fostered a startup culture that is buzzing with innovation. A good example is the Matic network, a base protocol and India’s second layer solution for Ethereum. While Ethereum is struggling beyond 15 transactions a second, Matic uses a side chain scale to 65000 transactions a second.

Matic Network is establishing partnerships and is helping kick start India’s blockchain startup scene. This encourages other entrepreneurs to join the bandwagon.

Defining The Crypto Movement was last modified: September 14th, 2019 by Daniel Shaw

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KuCoin Celebrates 2nd Anniversary With 90% Discount Sale For BTC

SINGAPORE, Sept. 14, 2019 /PRNewswire-PRWeb/ — Cryptocurrency exchange KuCoin has announced that it will be running a series of promotions …

SINGAPORE, Sept. 14, 2019 /PRNewswire-PRWeb/ — Cryptocurrency exchange KuCoin has announced that it will be running a series of promotions to celebrate its second year of operation. The first such promotion KuCoin is offering is a discount on purchases of BTC on the exchange. Eligible users will be able to buy BTC at 90% off the market price during the promotion period.

From its launch in September 2017, KuCoin has grown to become a key player in the cryptocurrency market, taking on the title of “the People’s Exchange” by the community. KuCoin plans to build on this reputation by holding several promotions for its users to mark its two year anniversary. In order to participate in the sale, users must hold 50 KCS, KuCoin’s native token, in their trading account and ensure that their account is KYC-verified.

Speaking of the promotion, Michael Gan, CEO of KuCoin, has said “As part of the celebrations marking our 2nd anniversary, we wanted to give back to our community who has continued to support and use our exchange over the past two years, even during the crypto winter. To kick things off, we chose to run a steep discount on Bitcoin which remains the most popular cryptocurrency in the market. Users should expect more interesting promotions to come in the next few days, so please keep an eye out for the announcements.”

The celebrations come at a time of growth for KuCoin. The exchange has recently launched new global communities for Indonesian, Arabic and Korean users with plans for more in the future. KuCoin has also launched live trading on its derivatives trading platform KuMEX following a period of simulated trading. Pool-X, a POS Mining Pool incubated by KuCoin, was also recently announced with plans to go live this October.

Having partnered with several projects, including TRON, Tokoin, Terra, Amino, and V Systems as well as KuMEX and Pool-X to launch this series of promotional campaigns, KuCoin looks to bring great value its users. Going forward, the exchange will continue to follow its role as “the People’s Exchange” and further build its reputation in the growing cryptocurrency market.

About KuCoin – The People’s Exchange

The KuCoin Exchange opened for cryptocurrency trading in September 2017 and has enjoyed steady growth into 2019. The KuCoin Exchange puts a high priority on the quality of the projects listed based on a well-trained research department that scours the blockchain industry for the highest quality projects. KuCoin provides an exchange service for users to conduct digital asset transactions securely and efficiently. Over time, KuCoin aims to provide long-lasting, increased value to its more than five million registered users, in over 100 countries. In November 2018, ‘The People’s Exchange’ officially partnered with IDG Capital and Matrix Partners.

https://www.kucoin.com/

SOURCE KuCoin

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Big Banks Won’t Touch Crypto Clients – But These Smaller Banks Will

If you are looking to safely and securely enter the crypto space, you can do so by purchasing bitcoin cash (BCH) and other major coins with a credit …
Big Banks Won't Touch Crypto Clients – But These Smaller Banks Will

Cryptocurrencies undoubtedly bring new business opportunities. The expanding industry around digital assets and its customers need more and more services that traditional sectors can provide. Banking is often a bottleneck in the crypto space as most traditional institutions are still reluctant to get their feet wet. Smaller banks, however, are more willing to occupy this niche and reap the rewards.

Also read: Crypto Banking Expands With Positive Interest Rates and New Services

Aiming for a Reward That Justifies the Effort

Navigating the regulatory maze, in the midst of which most crypto companies operate these days, is not easy. Organizations from other industries which work with crypto firms have to deal with the same obstacles. It’s often hard to do business and make a profit. But the current situation also creates opportunities, for there’s a margin to be made in this kind of environment. And it’s usually the small, young and hungry businesses that accept the challenge, hoping that the reward will justify the risks and efforts.

Most big banks have been shying away from the cryptosphere, be it because of the regulatory uncertainty, the volatile nature of the market, or maybe they just see a threat to their good old ways of banking. But small-size financial institutions and representatives of the nascent fintech industry cannot afford to be so shy. In the fast-moving cryptoconomy, every opportunity the growing sector offers is worth exploring and exploiting.

Big Banks Won't Touch Crypto Clients – But These Smaller Banks Will

The case of the German WEG Bank illustrates this very well and shows that banks and crypto companies can cooperate in a mutually beneficial way. In the summer of 2018, as part of a partnership deal, the crypto payment provider Tokenpay Swiss AG acquired a 9.9% stake in the bank with plans to increase its share in the future. And this spring, Nimiq, a provider of browser-based payment solutions, also bought 9.9% in WEG Bank. The two now work on a crypto-fiat product called Nimiq Oasis.

A Bridge Between Two Financial Worlds

WEG Bank is now promoting itself as an institution that bridges the gap between traditional banking and digital currencies. According to an announcement posted on Twitter, it has recently secured “full access to a crypto trading and custody license in Estonia.” The bank noted that it’s also applying for a securities trading and custody license in Germany. The licensed Estonian vehicle, WEG Bank later clarified, is WEG Blocklink OÜ, which is its sister company that will act as a servicer to WEG Bank AG.

Estonia has been a leading force in Europe when it comes to creating a favorable business climate for crypto companies. However, it’s been reported that authorities in Tallinn have started tightening some of the rules applicable to the sector. The new regulations oblige locally registered entities to keep their headquarters in the jurisdiction, while foreign companies are required to maintain an office in the Baltic country.

Fiat Products Backed With Crypto Assets

Having crypto companies among stakeholders is not a mandatory prerequisite to being a crypto-friendly financial institution. Since the launch of its crypto business six years ago, San Diego-headquartered Silvergate Bank has established itself as one of the few banks in the United States that is readily providing services to the digital asset industry. It serves more than 500 entities dealing with cryptocurrencies.

Silvergate has announced its intentions to offer loans collateralized with cryptocurrency. In a filing with the U.S. Securities and Exchange Commission, the lender describes its Silvergate Exchange Network (SEN) and explains that “an exchange client could hold the digital currency collateral, we could use the SEN to initially fund the loan from our balance sheet, and in the event of a collateral deficiency, we could immediately sell the digital currency collateral through our exchange client and use the SEN to bring the resulting funds back to our balance sheet.” Further elaborating, the bank points out:

We believe there may be attractive opportunities to provide digital currency borrowing facilities to deepen our high quality customer relationships and further enhance our interest income.

Other crypto-friendly banks operating in the United States include New York-based Quontic, which is now providing services to crypto companies in its strictly regulated jurisdiction. Elsewhere in the U.S., businesses from the industry can manage their finances with the help of institutions like Simple Bank and Ally Bank. In Europe, corporate and private clients can rely on the banking services provided by a new generation of online and mobile banks such as Revolut, Wirex, Bankera, and Bitwala.

Fintech startups have immensely helped the expansion of crypto banking. Their platforms turn your smartphone into a bank office or a crypto exchange, challenging the traditional understanding of what banks should look like. They are willing to experiment and cater to the needs of crypto businesses and users. In the face of this competition, large financial institutions have yet to integrate digital assets into their business models and strategies.

Big Banks Won't Touch Crypto Clients – But These Smaller Banks Will

Banks working with cryptocurrencies and companies specializing in crypto-related banking are likely to see more regulatory clarity in the future with the adoption of comprehensive national legal frameworks. Along with Estonia, Malta, Gibraltar, and Switzerland form a group of nations where crypto businesses can operate in a friendly regulatory environment. For example, financial authorities in Switzerland recently licensed two companies, SEBA Crypto AG and Sygnum AG, to serve as banking institutions for the country’s growing crypto industry.

And under increasing pressure, old Swiss banks like Zurich-based Maerki Baumann are turning towards the crypto market. “We suddenly had 400 people wanting to talk with us. And they were exactly the kind of people we had been struggling to access for 10 years with traditional private banking offerings,” CEO Stephan Zwahlen told Swissinfo last month. “We found that they were typically between 30 to 40 years old, very well educated and with an entrepreneurial mindset,” he added, speaking about how his bank found an alternative revenue source in the Swiss crypto sector.

Expanding banking services are sure to attract more investors and users. If you are looking to safely and securely enter the crypto space, you can do so by purchasing bitcoin cash (BCH) and other major coins with a credit card at buy.Bitcoin.com. You can also freely trade your cryptocurrencies on our noncustodial, peer-to-peer marketplace local.Bitcoin.com, which already has thousands of users around the world. Also, check out our newly launched premier trading platform exchange.Bitcoin.com. Registered users can access it right now.

Do you expect to see large banks offering services to clients dealing with cryptocurrency in the future? Tell us in the comments section below.


Images courtesy of Shutterstock.


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