Winklevoss Twin: Next Bitcoin Bull Run Will Be ‘Dramatically Different’

Cameron Winklevoss, the billionaire founder of cryptocurrency exchange … investment vehicles by institutions to gain exposure to cryptocurrencies.

Cameron Winklevoss, the billionaire founder of cryptocurrency exchange Gemini, believes the next Bitcoin (BTC) bull run will be much different. When compared to previous bull markets, Winklevoss noted that there is substantially more capital, infrastructure, and better projects.

Winklevoss said:

“The next Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!”

Various data points hint at a significant increase in the amount of capital held by investors in the cryptocurrency market. Major cryptocurrency exchanges have also received more regulatory clarity, improving the infrastructure of the market.

Capital flows into the Bitcoin market

Two metrics primarily show that more money could be involved in the latest Bitcoin rally. First, the market capitalization of Tether (USDT) has surpassed $10 billion. Second, the assets under management (AUM) by Grayscale Investments recently achieved a new high.

Tether (USDT) market capitalization hits $10 billion

Tether (USDT) market capitalization hits $10 billion. Source: CoinMarketCap

To date, Tether is the biggest stablecoin in the cryptocurrency market. Investors, especially in countries with regulatory uncertainty, rely on the stablecoin to trade crypto assets. A rapid rise in the market cap of Tether could indicate more money is waiting to deploy on crypto exchanges.

Grayscale’s crypto-asset trusts are arguably the most widely-utilized investment vehicles by institutions to gain exposure to cryptocurrencies. Within the last quarter, the assets under management in Grayscale’s suite of products hit an all-time high at $5.1 billion.

Grayscale AUM reached $5.1 billion

Grayscale AUM reached $5.1 billion. Source: Grayscale

Grayscale CEO Barry Silbert said:

“In 2013, everybody thought we were crazy for launching a Bitcoin investment fund. Well, look at us now…”

The confluence of Tether’s market cap and Grayscale’s ballooning assets under management shows that capital held by institutions and retail traders continues to increase substantially.

Crypto market infrastructure is improving

In 2020, exchanges and banks in the U.S. primarily saw regulatory clarity regarding cryptocurrencies.

The Office of the Comptroller of the Currency of the U.S. (OCC) allows banks to provide and operate crypto custodial solutions. It is essentially a green light for financial institutions in the U.S. to get involved in the cryptocurrency market.

JPMorgan is also reported to have accepted Gemini and Coinbase, two of the largest spot exchanges in the U.S., as clients. Through this, the fear of strained banking relationships affecting exchanges and users has subsided.

Clarity around cryptocurrencies by major U.S. regulators and banks could improve the perception of the asset class by the mainstream. This means if Bitcoin approaches a new bull market, the improved sentiment around the entire industry could benefit BTC adoption and its value.

Crypto startups are finding relevant use cases

Overall, projects and companies in both the Bitcoin and crypto markets are seemingly increasing in quality. This is partially due to increased regulatory clarity and the fact that more traditional firms are willing to collaborate with crypto firms.

As an example, Bitcoin Lightning startup Zap is working with Visa and has participated in its Fintech Fast Track Program. This allows Zap to launch Visa cards as a part of the partnership.

Zap CEO Jack Mallers said:

“We’re contractually obligated to launch one in the next 12 months and we plan on launching one in the next few months.”

Better projects, increased capital, and improving infrastructure are resulting in boosted confidence levels among Bitcoin investors and this is raising sentiment across the entire sector. In the medium-term, high-profile investors are hopeful BTC would reflect these factors.

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Coinbase Launches Kyber Rewards, But a Long Wait is More Likely

US crypto exchange giant Coinbase is going deeper down the DeFi rabbit hole by listing more tokens and offering rewards through its Learn platform.

Yesterday, Coinbase announced that it was expanding its Learn platform with the addition of Kyber Network tokens. The incentive allows exchange customers to watch videos in exchange for a small handful of the KNC tokens worth a couple of dollars.

Starting today, Coinbase customers can start earning Kyber (KNC) by watching lessons and completing quizzes about the Kyber Network, a protocol that aims to make swapping digital assets and cryptocurrencies simple and efficient. https://t.co/2JQm5kDn3W

— Coinbase (@coinbase) July 28, 2020

The Kyber Network has shot to DeFi fame recently following the launch of its long-awaited Katalyst protocol upgrade on July 7. The platform joined the liquidity farming race with a governance upgrade that yielded staking opportunities on the new KyberDAO for KNC holders. Earlier this month, KNC skyrocketed to a two year high of around $2. Not wanting to miss out on commissions or potential future staking fees, Coinbase listed KNC earlier this year.

Coinbase has also listed Compound Finance’s COMP token, admitting that it has a large stake in the DeFi platform. Learn opportunities are also available for COMP, but waiting lists appear to be a bigger issue than eligibility for many of the exchange’s customers.

Still Waiting …

The move was met with a lot of complaints however, as just a few hours after it was announced, many Coinbase customers had logged in to found that they were on a waiting list. Either the incentive is that popular that thousands had signed up to learn about KNC within a couple of hours, or Coinbase was playing tricks again to boost its user base.

photo_2020-07-28_10-00-13-minphoto_2020-07-28_10-00-13-min

These ‘waitlists’ are often just another way of saying ‘we’ve run out of free tokens to hand out’. Some users were still waiting for XLM earn opportunities, 16 months after they were announced on the exchange. One disgruntled customer posted:

“I’ve been on “WAITLIST” for your coins for >6 months. I’ve have emailed you guys multiple times, with no reply, no help, no acknowledgement.”

Another added:

“You guys just made us join wait list……… but that wait never ends ….. very bad experience with coinbase for giveaways,”

Eligibility is also an issue as Coinbase prevents some geographical regions from taking part though being in one of its favored locations is still no guarantee of acceptance.

“Customers in all other supported countries may indicate their interest and join the waitlist. Due to popular demand in those markets, please note it may take some time to be able to start earning — even if you are an eligible customer.”

The incentive appears to be a good one, but judging by the responses, Coinbase doesn’t really want to give much away at all.

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About The Author

Martin J. Young View more posts by this author

Martin has been writing on cybersecurity and infotech for over two decades. He has previous trading experience and has been covering developments in the blockchain and cryptocurrency industry since 2017. Contact Martin: LinkedIn

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13 Exchanges Pass the New ‘Trusted’ Spot Volume Tests

Meanwhile, based on the Exchange Benchmark by crypto market data provider CryptoCompare (assigning grades between AA and E), only Gemini …
13 Exchanges Pass the New 'Trusted' Spot Volume Tests 101
Source: Adobe/Open Studio

Just above half of the examined crypto exchanges passed the tests for ‘trusted’ spot volume, according to crypto market analysis firm Coin Metrics‘s latest metric. One failed all of them.

Coin Metrics has introduced a “trusted volume” metric, in an effort to help differentiate between legitimate and fake trading volumes. Each exchange is tested in three categories – volume correlation, web traffic analytics, and qualitative features – and they must pass all three to be included in the trusted volume set of metrics, wrote the firm.

According to the July 28 report, as of June 2020, the passing exchanges for ‘trusted’ spot volume include these fourteen platforms: Binance, Binance US, Bitbank, Bitfinex, bitFlyer, Bitstamp, Bittrex, CEX.IO, Coinbase, Gate.io, Gemini, itBit, Kraken, and Poloniex.

However, major exchange OKEx is the only one among the 26 tested platforms that failed all three tests performed. It got 76% in volume correlation (cutoff is 80%); it got 50 in qualitative features (cutoff is 50); and it’s outside the threshold set in the traffic analytics category.

BitBuy

Four exchanges passed only one test, these being: Bibox (volume correlation), HitBTC (qualitative features), LBank (qualitative features), and ZB.COM (web traffic analytics).

The remaining seven exchanges on the list passed two tests each, as seen on the table.

13 Exchanges Pass the New 'Trusted' Spot Volume Tests 102
Source: Coin Metrics

The report said that the list will remain under periodical revision, while certain exchanges, such as derivatives platform FTX (which had failed the volume correlation test) have already “added a broader listing of spot assets since the end of June and subsequently improved performance on the volume correlation test.”

Meanwhile, based on the Exchange Benchmark by crypto market data provider CryptoCompare (assigning grades between AA and E), only Gemini and Coinbase got an AA grade, while nine others got an A grade.

Looking at the exchanges on Coin Metrics’ ‘winner’ list, the majority are graded AA or A by CryptoCompare. Meanwhile, Binance US and Gate.io are graded B, while Bitbank, Bittrex, and Poloniex got a BB each.

The failed OKEx has gotten a BB from CryptoCompare.

Per their July report, in June, volume from many of the largest Top Tier exchanges decreased 35% on average compared to May.

“Binance and OKEx remained the top players in terms of volume in June relative to other Top Tier exchanges,” said the report, while “among the top 15 Top Tier exchanges, they currently represent approximately three quarters of the volume.”

Furthermore, both Top Tier volumes and Lower Tier volumes decreased “drastically”: -36% to USD 177bn and -53% to USD 466bn, respectively.

Binance was the largest Top Tier exchange by volume in June, the report said, trading USD 41.8bn, followed by OKEx’s USD 40.6bn, and Coinbase’s USD 6.86bn.

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Only 13 crypto exchanges provide ‘trusted’ trading volume: report

IO, Coinbase, Gate.io, Gemini, itBit, Kraken, and Poloniex. All of these exchanges, sans CEX.IO and Gate,io, Bitbank, were also included in Messari’s …

The team at crypto analytics firm Coin Metrics has architected a new framework for evaluating how reliable exchange volume data really is. And based on the firm’s methodology, real crypto trading volumes are close to one tenth of those reported by most exchanges.

The Coin Metrics Trusted Volume Framework is a new way to more accurately measure trading volumes across crypto markets. Many exchanges, particularly those which list illiquid altcoins, have a reputation of falsifying volumes in a bid to attract traders.

Exchanges are especially notorious for boosting volume numbers in order to game ranking sites or other nefarious reasons,” Jon Geenty, a data scientist at Coin Metrics, told Decrypt.

“The industry is full of technical information that can be difficult to understand and at times, misleading. We are working to create a more transparent environment for those within it and a safer, more trustworthy source for those hoping to learn more.”

Instead of aggregating volumes from the most popular exchanges in the industry, Coin Metric’s new framework funnels data from 13 trusted spot exchanges: Binance/Binance US, Bitbank, Bitfinex, bitFlyer, Bitstamp, Bittrex, CEX.IO, Coinbase, Gate.io, Gemini, itBit, Kraken, and Poloniex. All of these exchanges, sans CEX.IO and Gate,io, Bitbank, were also included in Messari’s “Real 10” exchange index that it unveiled in March 2019.

For its own framework, Coin Metrics subjected popular crypto exchanges to a three-pronged litmus test for volume correlation, web traffic analytics and qualitative features.

The first metric measures whether or not an exchange’s price feeds are closely correlated with the price feeds from well established, well-regulated exchanges, namely Bitstamp, Bittrex, Coinbase, Gemini, itBit and Kraken. Any exchange which had a correlation of 80% or higher passed this test.

Crypto exchange scores on the Trusted Volume Framework. Source: Coin Metrics

The second test involves cross referencing an exchange’s reported volume with its daily web traffic. The rationale here is that “[a]n exchange inflating volume numbers should tend to have a higher ratio of volume to traders relative to the other exchanges,” according to Coin Metrics.

For the final test, Coin Metrics gauged a number of qualitative measures regarding an exchange’s features, including historical data availability, regulation status, KYC requirements, and fiat deposits enabled. Any exchange which did not score at least a 50 out of 89 for this test failed it.

So which exchanges are the least trustworthy? Only one, the Malta-based OKEx, failed all three categories, while BiBox, ZB.com, LBank and HitBTC failed two. The full list is current as of July 1, but Coin Metrics will update it periodically if needed.

Based on this framework, the real 24-hour volume of the crypto market is roughly $13.25 billion, as opposed to the nearly $113 billion in volume reported by exchanges.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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Your guide to trading Bitcoin Cash (BCH)

Trade Bitcoin Cash and other major cryptocurrencies, indices, forex, shares and commodities through CFDs with Capital.com’s award-winning …

Why is Bitcoin Cash important to traders?

Launched in 2017, Bitcoin Cash (BCH) has already established itself as a rather prominent player in the crypto market. Also known as Bcash within its community, it was quickly adopted by investors, and by the end of the first day of its existence, BCH became the third cryptocurrency behind BTC and ETH in terms of market capitalisation. Today, it keeps its strong position in the top five list.

Bitcoin Cash is arguably Bitcoin’s most successful offshoot, differing from the other versions of that time by enabling the increase of the block size from one MB to 32 MB. This feature was developed to make the technology more scalable, allowing to process more transactions per second and helping to support the use of the cryptocurrency not only as a store of value but also as a means of payment. Besides, Bitcoin Cash offers cheaper transfer fees per transaction than Bitcoin, which makes it more attractive to active investors and traders who transact crypto more often.

The project’s ambition is to make Bitcoin Cash a valid competitor of the industry’s behemoths such as Visa (V) and PayPal (PYPL) in terms of the volume of transactions processed.

Bitcoin Cash trading

Since its inception, the Bitcoin Cash network’s protocol and third-party infrastructure have grown rapidly, with many exciting projects and applications being built on and around the BCH chain.

Bitcoin Cash trading hours

You can trade Bitcoin Cash (BCH) CFDs on Capital.com 24/7.

How to trade Bitcoin Cash (BCH) CFDs

Wondering how to invest in Bitcoin Cash? Typically, an individual has two options when trading in the crypto market. Firstly, they can buy actual cryptocurrencies, such as purchasing Bitcoin Cash on an exchange such as Binance, Bitstamp, BitMax, Kraken, Gemini, or Coinbase, so they own the BCH themselves. This is considered a long-term investment, as the individual is waiting for the price to rise significantly, so they can later sell their BCH coins on an exchange for a profit.

Alternatively, they can trade a contract for difference (CFD) on a particular cryptocurrency and speculate on the price difference. A CFD is a type of contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade. This is considered a short-term investment as CFDs are used within shorter time frames.

Investing in Bitcoin Cash CFDs gives you the opportunity to trade BCH in both directions. You can either hold a long position, speculating that the BCH price will rise, or a short position, speculating that the price will fall. Therefore, regardless of having a positive or negative view of the future of the Bitcoin Cash price, you can try to profit from both upward and downward fluctuations.

For instance, to participate in the BCH trade through CFDs, you can speculate on the BCH/USD pairing.

Trade Bitcoin Cash to US Dollar – BCH/USD CFD

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There are pivotal differences between buying a cryptocurrency and trading a CFD in the crypto market. When buying a cryptocurrency, it is stored in a wallet. On the other hand, when trading CFDs, the product is stored in your account, which is regulated by a financial authority. You are more liquid when you purchase CFDs as you are not tied to the asset: you have merely purchased the underlying contract.

Looking for a reliable CFD trading provider to invest in Bitcoin Cash? If so, just spend three minutes of your time to sign up and start your journey of BCH trading with Capital.com. Try our award-winning trading platform or download our mobile app, which will become your smart CFD trading assistant.

What is Bitcoin Cash? What is cryptocurrency?

A cryptocurrency is a digital asset conceived for use as a medium of exchange, which uses cryptography to secure transactions, control the supply of additional units and corroborate transfers. In short, cryptocurrency is a decentralised electronic currency.

Bitcoin Cash cryptocurrency was launched in August 2017 as a result of a hard fork of the Bitcoin blockchain. It was created by a group within the Bitcoin community looking to re-establish Bitcoin’s initial promise of peer-to-peer electronic cash.

Bitcoin Cash underwent another fork in November 2018, splitting into Bitcoin SV (BSV) and Bitcoin Cash ABС, which is the Bitcoin Cash (BCH) that we know today.

Trade Bitcoin Cash

Technically, Bitcoin Cash is quite similar to Bitcoin in many ways. They both employ Proof of Work (PoW) as a consensus mechanism with a focus on the SHA256 algorithm. Moreover, they both feature reward halving at predetermined times and have a total maximum supply of 21m coins.

However, unlike Bitcoin, Bitcoin Cash has a much bigger capacity of blocks, allowing more transactions to be carried on its blockchain. This difference makes them un-interchangeable and, therefore, discrete and independent cryptocurrencies.

Why trade Bitcoin Cash CFDs with Capital.com?

Advanced AI technology at its core: a Facebook-like News Feed provides users with personalised and unique content depending on their preferences. If a trader makes decisions based on biases, the innovative News Feed offers a range of materials to put them back on the right track. The neural network analyses in-app behaviour and recommends videos, articles and news to help polish your investment strategy. This will help you to refine your approach when trading Bitcoin Cash.

Trading on margin: providing trading on margin (up to 1:2 for cryptocurrencies) with the help of CFDs, Capital.com gives you access to the cryptocurrency market even with a limited amount of funds in your account.

Trading the difference: when trading BCH CFDs, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Bitcoin Cash price. CFD trading is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop and limit losses and apply trading scenarios that align with their objectives.

All-round trading analysis: the browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android.

Focus on safety: Captal.com puts a special emphasis on safety. Licensed by the FCA and CySEC, it complies with all regulations and ensures that its clients’ data security comes first. The company allows you to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts.

Bitcoin Cash price history

Bitcoin Cash performance

Bitcoin Cash started trading on August 1, 2017, with the opening value of about $290 per coin. The new cryptocurrency immediately hit the top of the ratings in terms of market capitalisation, with its price more than doubling the next day to reach a $756.93 mark. The coin ended its second day of trading at $452.66, boasting of a market cap of 7,460,771,889. By August 19, its value soared to $1,091.97.

After peaking at this price, BCH started to depreciate gradually. By the middle of October 2017, it fell below the $315 mark as many people who had originally held BTC started to sell BCH coins they received at the hard fork.

Then, the great reversal of the entire crypto market happened. Bitcoin Cash was at its highest level at the end of 2017. On December 20, it skyrocketed to an intraday high of $4,355.62 and ended the day at $3,923.07. However, the upside momentum was short lived and, in less than a month, the BCH price fell to trade below $2,000.

After rising from $621 in April 2018 to $1,838 in May 2018, the coin started to drop in value yet again, eventually plunging 88 per cent to trade around the $540 level in August 2018.

The same year, on November 15, a hard fork chain split of Bitcoin Cash happened. On this day, BCH traded at about $430 and Bitcoin SV – at $96.50. Amid the ongoing crypto market sell-off, the BCH price fell below $80 per coin on December 15, 2018.

As the market started to recover slowly, Bitcoin Cash appreciated to $522.09 by the end of June 2019. However, another price decline was not long in coming, with BCH plummeting to $210 by the end of the year.

The market experienced a boost at the beginning of 2020, seeing Bitcoin Cash trade in the upward trajectory. On February 14, BCH was worth $493.03. However, once the Covid-19 pandemic hit the world, all the financial markets tumbled amid the increased economic uncertainty. Cryptocurrencies were not an exception. On March 13, the Bitcoin Cash price plunged to $139.22 per coin. In the following days, the cryptocurrency escalated to end the month at $220.

On April 8, the cryptocurrency underwent its first block reward halving, with its value seeing modest gains and closing the day at $266.24.

Always stay on top of the latest BCH price developments with Capital.com to spot the best trading opportunities.

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