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Once Breakout Is Confirmed, Bitcoin (BTC) Could Rally To $5,500

Bitcoin Could Surge By 35%

Hopium has seemingly started to return to the crypto market en-masse. Sure, Bitcoin (BTC) and other digital assets are trading sideways, but the sentiiment displayed by cryptocurrency investors is buoyant.

GalaxyBTC, a leading analyst and self-proclaimed “accumulation machine,” recently revealed why there’s a likelihood that BTC could easily break to $5,500 in the near future.

He drew attention to a study from Thomas Bulkowski, a leading stock market trader. Galaxy states that more than 60% of ascending triangle patterns that are experiencing declining volume break upward. Each of these breakouts yield an average rally of 35%.

As Bitcoin is currently undergoing this pattern to a tee, with there being a series of lower lows, a number of bearish tests, and slightly declining volumes, Galaxy explained that BTC could hit $5,500 from here.

In response to Galaxy’s simple analysis, commenters expressed optimism. Anton Pagi wrote that it looks as though Bitcoin has entered an “A&E bottom with a handle” pattern, setting a strong precedent that a long-term floor may be in.

It is important to point out, however, that the average pullback if an asset fails to break convincingly above an ascending triangle is 19%, meaning that $3,300 would be the low-end target.

$5,000 May Very Well Be On The Table

Galaxy isn’t the first to have looked to $5,000 for BTC to breach in its next bullish breakout. In a number of recent tweets, pseudonymous British analyst Filb Filb has drawn attention to the aforementioned price point, citing a number of indicators that could push the cryptocurrency to that auspicious level.

As reported by Ethereum World News previously, the ratio between long and short positions on Bitfinex’s BTC market could be signalling an impending surge. Filb explained that when Bitfinex’s BTC long-short (L/S) ratio rose above 1.5, returned to one or below, and then moved back above 1.25 over the past year, the asset moved by higher by approximately 25% to 50%. On the other hand, when the L/S ratio failed to break 1.25 after a move under one, BTC entered “very bearish territory,” resulting in fresh lows for crypto.

Currently, the L/S ratio recently surpassed 1.5, collapsed to one, and could potentially rebound to or well past 1.25. And with that, the trader remarked that Bitcoin is “likely to break higher based on this metric alone,” drawing a hypothetical 25% rally, which would bring BTC up to $5,000, and potentially into a longer-term run.

In another bit of analysis, Filb touched on the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero and the Chaikin Money Flow (CMF), which is marking growing levels of buy-side volume. He noted that this could help propel BTC higher in the coming months.

 Photo by Dmitry Moraine on Unsplash

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Bitcoin Stays Over $4,000 as Top Cryptos See Slight Losses

Most of the top 20 cryptocurrencies are reporting slight losses as Bitcoin stays over $4,000.

Saturday, March 23 — most of the top 20 cryptocurrencies are reporting slight losses on the day by press time.

Bitcoin is down just under half a percent on the day, trading at around $4,022, according to CoinMarketCap. Looking at its weekly chart, the current price is over a quarter of a percent higher than $4,037, the price at which Bitcoin started the week.

Bitcoin 7-day price chart

Bitcoin 7-day price chart. Source: CoinMarketCap

Arthur Hayes, co-founder and CEO of cryptocurrency trading platform BitMEX, has recently predicted that Bitcoin will get back to the $10,000 price point this year.

Ethereum (ETH) is holding onto its position as the largest altcoin by market cap, which is at about $14.5 billion. The second-largest altcoin, Ripple (XRP), has a market cap of about $13 billion by press time.

ETH is down by 0.31 percent over the last 24 hours. At press time, ETH is trading around $138, after having started the day at roughly the same price. On its weekly chart, Ethereum has seen its value decrease by over two percent.

Ethereum 7-day price chart

Ethereum 7-day price chart. Source: CoinMarketCap

Cointelegraph reported that North Korean political dissident group Cheollima Civil Defense will start selling Ethereum-based visas for entering the country once it is supposedly liberated, with the issuance beginning tomorrow.

Second-largest altcoin Ripple has gained over half a percent in the 24 hours to press time, and is currently trading at around $0.311. Looking at the coin’s weekly chart, its current price is over two and a half percent higher than $0.319, the price at which it started the week.

Ripple 7-day price chart

Ripple 7-day price chart. Source: CoinMarketCap

Among the top 20 cryptocurrencies, the ones reporting the most notable price action are Tron (TRX), up by nearly five percent, and Cardano (ADA), which is also up by nearly five percent.

The total market cap of all cryptocurrencies is currently equivalent to $140.2 billion, which is nearly identical to its value one week ago.

As Cointelegraph reported earlier today, China has released its latest government-sponsored rankings of major cryptocurrencies on March 22, placing Bitcoin in 15th, while EOS keeps the top spot. Tron came in second in the rankings, after overtaking Ethereum in February when it was added to the list.

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Crypto Bulls On Alert As Bitcoin (BTC) Flip-Flops Around $4,000

Bitcoin Could Turn Bearish Under $3,900

Ever since Bitcoin (BTC) breached $4,000 a few days back, the market has entered a lull. Cryptocurrencies have held within a tight range, failing to show signs of either a bullish breakout of bearish reversal. Yet, some analysts are starting to fear a short-term collapse, as BTC flip-flops around $4,000 with indecision, a sign to some that a sell-off is in the works.

Luke Martin, better known as Venture Coinist, remarked that if Bitcoin heads higher in medium-term time frames, like the four-hour or one-day, but closes below $3,930, he would start being “bearish short-term.”

Another popular trader going by the moniker “DonAlt” expressed a similar sentiment. He explained that $3,900 is an essential level to watch from his point of view, adding that if it falls under this support, he would expect “$3,500 or even lower.”

Indeed, from a technical point of view, the aforementioned price point seems to have some semblance of importance. Prior to Bitcoin’s most recent move above $4,000, BTC was having trouble breaking past $3,900, holding in that region for nearly around 12 hours. And in a recent rapid sell-off, $3,900 became the level to watch, as the leading cryptocurrency was seemingly on the verge of (yet another) collapse.

Technical indicators around this level have seemingly some level of importance too. CryptoChartsJoe recently stated on Twitter that $3,900 is where the 50 six-hour moving average and uptrend line is currently situated.

While bulls seem to have the upper hand as it stands, some are fearful that BTC breaking under $3,900 is on the horizon, as bulls fail to show signs that $4,400, let alone $4,200 is on the table.

Bullish Outlook On Crypto

Then again, some have kept their heads up high.

Satoshi Flipper, a well-known industry commentator, remarked that over the past few months, BTC has touched a single resistance line ($4,050) six times. Each time it has done this though, it receded quickly, falling by a number of percentage points to return to a mean. But with the cryptocurrency currently slated to be on track for a seventh touch, Satoshi hinted that there’s a chance it could break through, pushing Bitcoin into a rally.

Sentiment-wise, crypto’s prospects are looking bright too. Ryan Selkis, the chief executive of cryptocurrency analytics provider Messari, remarked that he would be “extremely surprised” if Bitcoin hasn’t found a floor in this bear market. Selkis, a hard-line believer that BTC is best used as a digital store of value, explains that for long-term bulls, waiting to catch the final capitulation event is nonsensical, as the five-year expected value of crypto assets is “25 to 50 times” current prices.

And last but not least, fundamentals. Arguably, fundamentals, or industry developments rather, is the best tailwinds that cryptocurrencies have at the moment. Over recent weeks, Samsung, Facebook, Kakao, among countless other institutions have announced forays into this ecosystem. These moves could spark global adoption, subsequently bolstering the value of BTC through simple network effects.

Title Image Courtesy of Andre Francois Mckenzie Via Unsplash

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Report: Bitmain to Launch 200,000 Crypto Mining Rigs in China

Bitmain Bitcoin Mining China 2019

According to a report published by CoinDesk on Mazar. 21, cryptocurrency mining conglomerate Bitmain is looking to launch up to 200,000 new mining rigs in China, at a conservatively estimated cost of $80 million.

The move will allow Bitmain to take advantage of the relatively cheap hydroelectric power in China during the summer of 2019, with CoinDesk also reporting that the expensive deployment of equipment may end up being more cost-effective for the company than outright selling their inventory. CoinDesk also reports that the decision by CoinDesk is positive for the industry and miners, sending a signal of a “broader shift in the market, with miners preparing to invest again following last year’s contraction in capacity.”

Bitmain, which holds the distinction of being the largest manufacturer of cryptocurrency mining equipment by market share, can take advantage of the excess hydropower in China’s southwestern province for cheap mining costs relative to the broader market. According to sources in the region familiar with the situation, Bitmain has “already started discussions and making deals with farms to host its equipment so that it can be fully prepared.”

The report also includes information that Bitmain will be primarily deploying its newer model mining rigs, the AntMiner S11 and S15, which retail for around $500 and $1000, respectively, per unit. It is also unclear according to the sources which proof-of-work cryptocurrency Bitmain will be targeting to mine for. As CoinDesk points out, even at $80 million in projected costs to deploy the equipment in the new region, the move represents a “non-negotiable opportunity cost” considering Bitmain’s primary revenue source is from mining equipment sales as opposed to actual mining.

However, the company is caught in a difficult position due to the ongoing bear market that has extended into the beginning of 2019. While the company could attempt to selloff the bulk of their 200,000 intended units for deployment, the marginal profits that could be made from mining in the presence of cheaper electricity may provide the better sunk cost. CoinDesk calculates that, using conservative estimates, Bitmain may be able to secure a monthly profit of $7.7 million.

CoinDesk also reports that Bitmain’s scaling up in mining operations could send a strong signal to the broader market, particularly as cryptocurrency mining and coins prices continue to linger at relative lows. Estimated reports found that over 600,000 Bitcoin miners shut down operation in 2018 due to the falling con prices no longer proving profitable relative to mining costs, leading to the market being flooded with second-hand rigs being sold at a discount.

Despite the decline, Bitmain and other miners deploying to China in the upcoming wet season to take advantage of excess hydroelectric power could bring about a sharp increase in Bitcoin’s hash rate, with some estimates putting it at 70 quintillion hashes per second (EH/s), well above the all time network high of 60 EH/s.

Renewed mining interest in conjunction with building crypto adoption that has already started in 2019 could lead to a reversal in both coin prices and increased competition to capitalize on the market while prices are still depressed. With increased mining competition for Bitcoin, the selling price for newly minted coins should also rise, which could have a broader effect on BTC pricing.

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Bitcoin At $400,000 Isn’t A “Fool’s Paradise,” Claims Crypto Analyst

Analyst Calls For Bitcoin To Breach $100,000 Or Even $400,000 In Next Rally

It’s been over 15 months since Bitcoin breached $20,000. And since then, mainstream media, cynics, and representatives of traditional institutions have done their utmost to put down cryptocurrencies.But, industry commentators have kept their heads high, as they await BTC’s next move higher.

Naeem Aslam, a crypto-friendly analyst at Think Markets, recently divulged his thoughts on the current state of the digital asset market. Unsurprisingly, he was rather bullish.

In a March 19th blog post on Think Markets’ website, Aslam noted that while the tussle for BTC holding above $4,000 has often been won by bears, “long-term investors” shouldn’t “worry about these short-term levels.” Echoing comments from Alec Ziupsnys, he explained that “catching the extreme low (bottom)” is “extremely arduous,” Aslam goes on to explain that more likely than not, the so-called “crypto winter” is coming to an end.

He writes that the next bull rally in the cryptocurrency asset class will likely push BTC a minimum of five times higher than its previous all-time high, meaning his low-end target is $100,000. His high-end target, on the other hand, is $400,000, as Aslam explains that this would mean history would have repeated itself (2017’s Bitcoin run was from $1,000 to $20,000 — a 20x return). It was elaborated:

This number is not a fool’s paradise. $400,000 is a simple math calculation: approximate percentage projection of the price which we experienced during the last bull run.

Not The Only Optimist

While BTC breaching $400,000 is likely hard to imagine for most traders, many analysts expect the cryptocurrency market to embark on another parabolic rally… eventually. In a comment issued last July, The Crypto Dog, a “STEM Ph.D. drop-out” turned crypto trader, explained that Bitcoin still holds the “same economic properties” that allowed it to go to the moon at least four times now.

Thus, he determined, who’s to say that a rally to “astronomical levels” won’t happen again? In a later tweet, he remarked that greed is a “huge potential factor” that could be behind future bull markets, adding that there’s “more than one path to hyperbitcoinization.”
Hyperbitcoinization, for those who missed the memo, is a term often used by Bitcoin crusaders to describe BTC consuming fiat currencies.

Crypto Dog is far from the first to have touted this theory. Crypto personality $carface recently noted that it would be unfair to claim that there’s a high likelihood that Bitcoin cannot undergo a “boom and bust” cycle again. Backing his prediction, he cites a quote from Sir John Templeton, in which the economist said that the four most dangerous words in investing are “this time it’s different.” This reference is, of course, rebutting cynics’ claim that Bitcoin won’t rally to new all-time highs… eventually.

$carface writes that investors should “roll the dice” and buy Bitcoin, as BTC could appreciate to $102,000 to $336,000 if it follows historical trends of rallying 5.1 to 16.89 times higher than its previous peak.

Title Image Courtesy of Tim Mossholder 

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Bitfinex’s Bitcoin Markets Could Be Signalling a BTC Rally To $5,000

Bitcoin “Likely” To Break Higher

Over recent weeks, the cryptocurrency market has seemingly began to embark on a slow and steady recovery. While the asset class took a slight tumble on Thursday, with Bitcoin (BTC) falling by 1.33%, cryptocurrencies are still nearing their year-to-date highs. The simple fact has led some crypto analysts to begin touting bullish sentiment, as the technical and fundamentals tides have seemingly begun to turn in BTC’s favor.

Prominent trader Filb Filb joined in with his own optimism recently, issuing a number of charts accentuating his/her belief that digital assets, especially Bitcoin, are poised for a rally.

Filb explained that from a 12-month perspective, when Bitfinex’s BTC long-short (L/S) ratio rose above 1.5, returned to one or below, and then moved back above 1.25, Bitcoin moved by higher by approximately 25% to 50%. On the other hand, when the L/S ratio failed to break 1.25 after a move under one, BTC entered “very bearish territory,” resulting in fresh lows for crypto.

Currently, however, the L/S ratio has reached 1.5, fallen to one, and could potentially rebound to or past 1.25. And with that, Filb remarked that Bitcoin is “likely to break higher based on this metric alone,” drawing a hypothetical trading range of a 25% rally, which would bring BTC up to $5,000 for the first time in mid-November.

$5,000 BTC?

This isn’t the analyst’s first time mentioning $5,000, believe it or not. As reported by Ethereum World News previously, Filb remarked that a number of technical measures have started to turn in Bitcoin’s favor. Filb specifically drew attention to the 12-hour Moving Average Convergence Divergence, which has begun to trend positive above zero. The analyst also touched on Chaikin Money Flow (CMF), which measures buying and selling pressure, which has begun to signal that there is underlying buying pressure in BTC markets.

He adds that over recent days, Bitcoin has begun to test a “macro 14-month resistance” downtrend, and could break into higher lows if it surpasses that level, which would then turn into support. A move above this level, which would push BTC into a “huge void” of volume, meaning that rallies and drawdowns could be accentuated with little-to-zero volume, could indicate that Bitcoin could hit $5,000 by May.

In a recent interview with BlockTV, Filb also expressed hope in regards to the crypto market’s short-term prospects. He explained that why he expects for BTC to “certainly rally” in the near future is due to the Bitcoin block reward reduction, adding that the emission reduction will make miners less incentivized to sell, therefore granting this market with a reason to move higher.

Moreover, he drew attention to the Lightning Network, especially in regards to the recent exposure that Jack Dorsey has given the scaling solution. Filb notes that this is a strong fundamental factor that could push Bitcoin higher.

Title Image Courtesy of Icons8 Team Via Unsplash

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Crypto Markets Descend While Tech Stocks Surge

Cryptocurrency markets have seen a decline on the day, with most top coins hovering in the red and Bitcoin trading around $4,000.

Thursday, March 21 — Most of the top 20 coins by market capitalization are in the red, showing slight losses on the day, down from one to four percent.

Market visualization from Coin360

The leading cryptocurrency Bitcoin (BTC) is trading at $4,027 at press time, down about one percent over the 24-hour period. BTC has been trading sideways as of early trading hours, following a drop to as low as $4,007 in the middle of the day.

Bitcoin 24-hour chart. Source: CoinMarketCap

The top altcoin Ethereum (ETH) has seen a 1.87 percent downturn on the day and is trading at $137.21 at press time.

As reported earlier today, Vitalik Buterin said that high ether prices are important both for network security and the wider ecosystem’s development. In response to the question as to whether protocol designers and project leaders should be focusing on the question of a cryptocurrency’s price, Buterin referred to the “earlier rhetoric” of the Ethereum project, which had explicitly downplayed the importance of the asset’s value.

Ethereum 7-day chart. Source: CoinMarketCap

Ripple (XRP) has also lost about two percent over the past day and is trading at $0.312 at press time. The coin started the day at $0.318, dropping as low as $0.309 in the middle of the day.

Ripple 7-day chart. Source: CoinMarketCap

On CoinMarketCap’s listings, Tezos (XTZ) is the biggest gainer, up by 25.77 percent on the day and trading at $0.771 to press time.

Total market capitalization of all cryptocurrencies is around $139 billion at press time, down from its intra-day high of about $141.9 billion.

Total market capitalization 7-day chart. Source: CoinMarketCap

Earlier today, Cointelegraph reported that price correlations among major cryptocurrencies increased against the U.S. dollar (USD) but fell in BTC terms, according to a new report from crypto exchange Binance. The exchange found that behavior among assets is diverging depending on whether returns are denominated in USD or BTC.

Today, MarketWatch reported that U.S. stocks ended higher following a surge in tech shares that helped to lift key equity benchmarks. The S&P 500 has gained 1.09 percent to trade at around 2,854, while the Dow Jones Industrial Average has increased by 0.84 percent and is trading at around 25,962 at press time.

On the Asian market, mainland Chinese shares climbed on the day, as the Shanghai composite gained 0.35 percent and the Shenzhen component added 0.706 percent, according to CNBC. Shares of tech giant Samsung Electronics and chipmaker SK Hynix saw their stocks surge 4.09 percent and 7.66 percent, respectively.

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Major Coins See Mixed Signals, Gold Reacts Positively to US Federal Reserve Decision

Cryptocurrency markets ares seeing mixed signals, with U.S. crude reaching $60 for the first time in around four months.

Wednesday, March 20 — cryptocurrency markets are seeing mixed signals today after moderate growth yesterday. Most top coins are slightly down, with Bitcoin (BTC) trading at around $4,060 at press time.

Market visualization from Coin360

Market visualization from Coin360

BTC is down around 0.13 percent over the last 24 hours, and is trading at around $4,063 at press time. The leading digital currency has seen low volatility during the day, having dropped to as low as $3,993, while the intraday high reached $4,079.

As reported earlier today, multiple respondents have filed comments with the United States Securities and Exchange Commission on the latest proposed rule change for the VanEck/SolidX Bitcoin exchange-traded fund (ETF). Among the seven comments filed thus far, six strongly urge the regulator not to approve the VanEck/SolidX proposal.

Bitcoin 24-hour price chart. Source: CoinMarketCap

Bitcoin 24-hour price chart. Source: CoinMarketCap ​​​​​​​

Ethereum (ETH) is down by 0.83 percent on the day, trading at $139.11 at press time. Today, the second largest coin saw $136.85 as its lowest price point, with a high of $140.02.

Ethereum 7-day price chart. Source: CoinMarketCap

Ethereum 7-day price chart. Source: CoinMarketCap

Ripple (XRP) is also down a slight 0.23 percent, trading at $0.318 at press time. The altcoin’s weekly chart is showing its price increasing by 1.05 percent.

Ripple 24-hour price chart. Source: CoinMarketCap

Ripple 24-hour price chart. Source: CoinMarketCap

Of the top 20 cryptocurrencies, Ontology (ONT) is the biggest winner on the day, up by almost 15.32 percent and trading at $1.29 at press time. Monero (XMR) is up by 1.83 percent over the day and is currently trading at $55.94.

Total market capitalization of all 2,115 coins on CoinMarketCap is around $140.9 billion at press time, dipping as low as $139.4 during the day. The daily trading volume of all cryptocurrencies is around $32.8 billion.

Total market capitalization 7-day chart. Source: CoinMarketCap

Total market capitalization 7-day chart. Source: CoinMarketCap

Oil prices have seen a surge today, with U.S. crude reaching $60 for the first time in around four months, according to CNBC. West Texas Intermediate (WTI) is up over 1 percent on the day, trading at around $60.12 to press time, while Brent has gained around 1.15 percent and is trading at $68.39 at press time.

Gold price reportedly increased by 0.64 percent today to $1314.9 per ounce after the United States Federal Reserve decided not to raise interest rates. At press time, gold is up by 1.85 percent and is trading at around $60.12.

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Crypto Analyst: As Bitcoin Staring Down A Barrel, BTC Needs To Break $4,200

Bitcoin Facing Downtrend, Watch $4,200

Per prominent analyst Crypto Rand, Bitcoin (BTC) is entering “do or die” time. In a recent post, Rand drew attention to a “yearly downtrend channel resistance,” which began in April 2018, and has depressed BTC each time it has tried to foray higher.

In July of last year, BTC tried its hand at moving past $8,000 but failed, as the asset encountered this multi-month resistance level. In November, the cryptocurrency plummeted under $6,000, failing to maintain a medium-term, mildly-sloped uptrend and break the downtrend simultaneously. This move, as you likely know, brought BTC to $3,150 and the aggregate value of cryptocurrencies eerily close to $100 billion.

But since that move, things have arguably been on the up and up, as BTC has slowly trended higher to reach $4,000. Although many are calling for a rally to the moon, with analysts expecting for Bitcoin to see a pre-halving run, Rand says that BTC has one final boss to face.

This boss, if you haven’t guessed it already, is the aforementioned channel resistance, which sits at $4,200. Considering historical precedent, if BTC doesn’t break the level this time, the asset could be in for lower lows, potentially falling under $3,000 in a dramatic sell-off.

Rand isn’t the first to have remarked that the coming days and weeks will be of utmost importance for Bitcoin’s ongoing move higher. Trader Crypto Birb posted a chart (seen below) highlighting what he calls a “market decision point,” which will either perpetuate BTC’s rally or send it into a long-term consolidation trend between $1,360 and $3,000.

Analysts Hopeful

While it’s entirely possible for BTC to falter from here, failing to break out of the descending channel downtrend that has plagued this market for months on end, many argue that upside is in crypto’s cards.

In a series of research notes, tweets, and mainstream media appearances, Tom Lee, the co-founder of New York-based advisory outfit Fundstrat, explained that the 200-week moving average could be signalling a Bitcoin breakout in the short-term. Citing other catalysts that could boost this market, the cryptocurrency analyst drew attention to macro trends, like the weakening performance of the U.S. dollar and the expectation that emerging markets will outperform, as a way to give credence to the theory that cryptocurrencies are preparing for liftoff.

Fundamentally, this space’s prospects have seemingly begun to turn positive. Each and every day, news comes out regarding institutional involvement. Case in point, Fidelity Investments just recently launched its Bitcoin-centric custodian, amid a newfound push for institutions to divert funds into this budding space. Rumor has it that a multitude of global banks have begun to harness IBM’s WorldWire blockchain program to offer stablecoins, which only cements the theme that Wall Street is keeping a close eye on this technology.

Adoption has also been hot. Samsung, another South Korean technology giant, was recently revealed to have integrated a product called “Blockchain Keystore” into its Samsung S10 lineup, which launched last month to widespread hype. While a debate rages on about the specifics of the offering, with some claiming that it stores Bitcoin and others noting that it works much like an Ethereum-centric DApp browser, the impact that Keystore will have on adoption has been gauged as monumental.

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Former CFTC Chair Calls For More Cryptocurrency Regulations

CFTC Cryptocurrency Regulation 2019

A report published by the Brookings Institution and authored by Harvard University fellow Timothy Massad calls for improved regulation of cryptocurrency.

Massad, who served as chairman of the United States Commodity Futures Trading Commission (CFTC) during President Barack Obama’s administration, outlined the need for regulations on digital currencies, including their use in illicit activity, as well as providing a way to reduce the risk of cyber attacks.

In the report, Massad explains that the current landscape of cryptocurrency leaves the market open for fraud due to the absence of traditional market standards imposed on securities and derivatives, a feature which only serves to hurt investors via the lack of protection. Massad also targeted cryptocurrency exchanges and their lack of oversight, which has led to repeated instances of fraud, market manipulation and conflicts in interest. He then stressed the need for regulations imposed on exchanges in order minimize operational risk while putting into place measures to safeguard investors.

“Crypto exchanges are not required to have systems to prevent fraud and manipulation, nor are there rules to prevent or minimize conflicts of interest. Crypto exchanges can engage in proprietary trading against their customers, something the New York Stock Exchange cannot do. Regulations to minimize operational risk and ensure system safeguards are needed, just as with securities and derivatives intermediaries.”

The 60 page report also took a shot at the shortcomings of Bitcoin, namely the failure of cryptocurrency to fulfill its original intention. Instead of providing trust, Massad wrote that Bitcoin and other cryptocurrencies have created “regulatory distraction” which has contributed to an even greater problem in lack of accountability,

The hype surrounding Bitcoin and other crypto-assets has contributed to regulatory distraction. Bitcoin’s creators promised it would solve the “trust problem” and reduce our reliance on centralized financial intermediaries. However, it has not reduced our reliance on financial intermediaries or eroded the power of our largest institutions. Indeed, crypto-assets have created new financial intermediaries that are less accountable than the big banks.

The former CFTC Chairman called upon the powers of the U.S. Congress to address the issues related to crypto market fraud and the looming problem cybersecurity and potential illicit use through digital assets. As for handling the lack of regulation in cryptocurrency exchanges, Massad is not alone in advocating for reform.

The Winklevoss Twins, who recently made headlines for their comments about Facebook’s stablecoin, have been a driving force for cryptocurrency regulation through their crypto exchange Gemini. While the twins have previously been denied in their attempt to create the first U.S. Securities & Exchange Commission approved Bitcoin ETF, they believe self-policed and self-generated regulation to be the surest path to enticing institutional investment.

However, some community members have continued to embrace the lack of regulation for the cryptocurrency industry. While diminished oversight does allow for manipulation and fraud, it also prevents coin projects from making concessions in their decentralization, thereby fulfilling the original promise of crypto as an alternative to government-run fiat. In addition, the fear is that greater regulation will make the industry no different than that of the traditional financial markets, including the uneven influence imposed by established banking players.

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