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CoinMarketCap Launches Crypto Indices on Nasdaq, Bloomberg, Others

CoinMarketCap announced that it will launch two cryptocurrency benchmark indices on multiple major finance platforms.

CoinMarketCap announced that it will launch two cryptocurrency benchmark indices on Nasdaq Global Index Data Service, Bloomberg Terminal, Thomson Reuters Eikon and Börse Stuttgart. The news was revealed in a post on the crypto data firm’s blog, published on March 20.

The two indices are calculated and administered by German index provider Solactive, the post notes.

Per the announcement, the indices will cover the top 200 cryptocurrencies by market capitalization, one including Bitcoin (BTC) and one without it. The latter benchmark will be called CMC Crypto 200 ex BTC Index (CMC200EX), while the one including Bitcoin is called CMC Crypto 200 Index (CMC200). Both the indexes will be rebalanced on the last day of each calendar quarter, the firm reports.

CMC200EX has been reportedly created “to track the performance of the market without the influence of Bitcoin,” since the leading coin is responsible for about half of the total market cap of all cryptocurrencies.

According to the post, Solactive is also the company behind the CBOE Bitcoin Futures index, which was launched in December 2017, and administers over three thousand custom indices.

Solactive’s head of sales, Fabian Colin, is quoted in the announcement as stating that access to CoinMarketCap’s data grants them the ability to develop custom indices for customers. He also notes that “conversations have already started” in that regard.

As Cointelegraph reported in mid-February, Nasdaq launched two new indices tracking the “spot or reference rate for the price” of Bitcoin and Ethereum (ETH). The indices were created by crypto asset market data company Brave New Coin.

Previously, in November last year, investment management firm VanEck’s subsidiary MV Index Solutions launched its own Bitcoin index based on three major over-the-counter (OTC) desks.

As reported this week, CBOE announced that it will not add a new Bitcoin futures contract in March, stating that it “is assessing its approach with respect to how it plans to continue to offer digital asset derivatives for trading.”

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Bloomberg: Key Indicators Show Bitcoin Price Could be Losing Steam

A recent report from Bloomberg analysts states that Bitcoin could be nearing another significant sell-off.

Key price movement indicators show that Bitcoin (BTC) could be heading for another move downward, according to a recent report from Bloomberg on March 12.

The report states, “Technical gauges signaling long-term buying demand for Bitcoin are deteriorating” and as such, buying pressure could increase. Bloomberg notes that the seminal crypto’s Moving Average Convergence Divergence (MACD) indicator has been moving downward since mid-February.

The MACD is a trend-following indicator of momentum that shows the relationship between two moving averages of the price of a security.

Bitcoin has tested the $4,000 mark several times in previous weeks, but has as of yet been unable to break above it for a meaningful period of time. Bloomberg states that, until Bitcoin can break through that level, it is likely to face selling pressure. Bloomberg analyst Mike McGlone said:

“The entire industry is ripe to resume a path to lower prices. Conditions are akin to November [2018], just prior to the collapse. Prices are consolidating within narrowing ranges, with a few sharp bear-market rallies that appear fleeting.”

Other industry experts have suggested that investors are forgoing Bitcoin to move their money into altcoins. EToro senior market analyst Mati Greenspan said:

“It’s just that investors are seeing more potential in some of the smaller tokens at the moment. As we approach the culmination of the crypto winter, we’re actually seeing some of the altcoins delivering spectacular gains in the last few weeks. We are now in what industry insiders like to call alt-season.”

At press time, data from TradingView shows that the Bitcoin MACD is at 44.3, pointing to a “sell” recommendation. The coin is currently trading at $3,910.57, up a modest 0.48 percent on the day according to CoinMarketCap.

Bitcoin 3-month price chart. Source: CoinMarketCap

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Bitcoin (BTC) Closing February Green Might ‘Not Mean Much’: Bloomberg

Bitcoin Closed Green… Finally

What a horrid 2018 the digital asset market had. Although there were some silver linings in the crypto cloud, yesteryear was arguably rife with suffering and pain for investors at large. In fact, as per Dow Jones Market Data, which dates back to July 2010, Bitcoin (BTC) posted month-over-month red candles for half a year, the asset’s longest losing streak in its history.

But, as February has come to a head, the streak of lower lows has finally ended. In the past 28 days, the flagship cryptocurrency has proved its potency, opening the month at $3,500 and closing at $3,900 apiece.

Trader SalsaTekila drew attention to the “bullish engulfing” candle, explaining that where Bitcoin closed on February 28th will act as a short to a medium-term level of support. This quip elicited a number of positive responses from a handful of his optimistic followers.

In an email obtained by Bloomberg, Mati Greenspan, a senior analyst at the crypto-friendly, Tel Aviv-based eToro, explained how this nascent market is faring. With the recent close in mind, coupled with fundamentals, Greenspan was quite bullish. He explained that “it’s great” to see BTC close green for the first time in months, and is just as great to see transaction count, transactional throughput (nominal $ value), and crypto exchange volumes remain at “their highest levels in more than a year.”

Long story short, Greenspan is leaning bullish on Bitcoin at the moment.

Optimism Unwarranted?

Although many crypto natives were evidently enthused by the recent price action (or lack thereof), Bloomberg went on to write that per technical measures, there isn’t much going for Bitcoin at current.

The outlet’s Reade Pickert argues that the outlook for the flagship cryptocurrency “remains cloudy,” as he went on to cite the GTI Global Strength Indicator, a measure used to gauge price action. Pickert notes that the indicator is currently leaning overbought, meaning that a short-trend downtrend could be forming. In fact, he writes that if the slight downtrend in Global Strength continues, BTC could establish “new lows,” as it failed to stay above the ever-important $4,000 price point for a significant amount of time.

Crypto-Native Analysts Keep Their Heads High

Regardless, analysts centered around the cryptocurrency have kept their heads high. Magic Poop Cannon, a self-proclaimed “master of the charts,” noted that he remains rather bullish, as the 50-day exponential moving average (EMA) continues to hold, indicating that BTC isn’t in an overly bearish state. In a TradingView post, Magic argues that he’s more bullish than weeks ago, adding that the fact that BTC is holding its support could set precedent for a rally to “somewhere in the low to mid 4000s.” He adds that a medium-term triangle also held, further giving credence to the theory that the cryptocurrency is still in bulls’ home stadium.

Per previous reports from Ethereum World News, the Tom Lee-endorsed analyst recently called a bottom. Magic wrote that as per the MACD indicator, a bottom could very well be in.

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Bloomberg Editor Critical Of Bitcoin (BTC) — Wants Blockchain, Not Crypto

Bloomberg Former Editor-In-Chief Bashes Bitcoin (BTC)

Amid 2018’s tumult and market downturn, Matt Winkler, the former editor-in-chief at Bloomberg News, recently cut out some time to speak with the outlet’s Emily Chang to discuss cryptocurrencies and Bitcoin (BTC).

Speaking with the outlet’s anchor in a short interview, Winkler, a world-renowned reporter in the business realm, first explained that Dotcom startups were valued by their cash earnings, a questionable indicator in the eyes of fundamentalists. With the essential second coming of the Dotcom Bubble in Bitcoin, the Bloomberg reporter explained that it’s hard to value cryptocurrencies by their “intrinsic worth,” adding that commentators do “mental gymnastics” to come up with target prices for this nascent asset class.

Winkler added that “even Warren Buffet” has lambasted cryptos, like Bitcoin, as assets that do not have actual value — failing to recognize that many believe that cryptocurrencies and related technologies have untapped potential and upside.

When asked about if BTC could see a recovery, Winkler responded with caution, stating:

I’m not clairvoyant and I think that this answer is way above my pay-grade. What I can do as an observer, newsman is to look at this and say what justifies its valuation which we see in the marketplace. And when it’s difficult to find the answers, you ought to be pretty cautious.

In closing, responding how countless centralists have in recent days, the member of Bloomberg top brass noted that while he’s cynical of cryptocurrencies, he sees value and innovation with decentralized ledger technologies.

Bloomberg Bashed As Crypto “FUDders”

And interestingly, Winkler isn’t the only Bloomberg-affiliated journalist or reporter that has been lambasted by crypto’s community. In recent days, there has been an uprising (of sorts) on Crypto Twitter, whereas this nascent industry’s leading participants, including Mike Dudas, pseudonymous analyst “I Am Nomad,” and Armin Van Bitcoin, have bashed the prominent outlet’s coverage of Bitcoin and related technologies.

Notable fintech entrepreneur Mike Dudas, who currently acts as the founder and CEO of The Block, drew attention to Bloomberg’s most recent piece on Bitcoin being a bubble, one of the first in a line of many.

I Am Nomad, known for both his industry skepticism and optimism, exclaimed that the New York-headquartered outlet has been “rifling” out the crypto “op-ed FUD,” questioning if the propagation of such negative press could be done “on purpose.”

Armin Van Bitcoin, a prominent advocate of his nickname-sake from Canada, quipped that Bloomberg journalists essentially believe that global debt isn’t a concern, centralized parties should control monetary supply, “Ethereum is the next Bitcoin,” and we don’t need the flagship crypto asset, as it’s purportedly dead.

The Crypto Fam, who also claimed that the site’s coverage of Bitcoin has been shoddy, noted that employees are paid to “‘move markets’, a practice that lends itself to sensationalism and hyperbole.” The account, which represents a community of crypto enthusiasts, cited a Business Insider expose on Bloomberg’s potentially questionable and immoral practices to back their claim.

Others recently bashed Bloomberg’s anti-crypto ATM piece, with trader “Needacoin” and journalist Joseph Young both noting that automated tellers that “dispense” BTC are far from mediums of money laundering, as there are measures in place (transaction limits, CCTV, etc.) that prevent such heinous acts.

No matter the form that the criticism took, it is becoming apparent that crypto’s most prominent participants have taken issue with Bloomberg, as some fear that the organization is in bed with centralized financial institutions — who would stop at nothing to see Bitcoin fade to dust.

Still, @crypto, as Bloomberg News’ crypto branch goes on Twitter, has seemed hell-bent on pushing on content pertaining to this decade-old asset class. And seeing the influence that media has over society today, some wouldn’t be surprised if criticism continues to fly crypto’s way.

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Winklevoss Twins Unfazed Amid Crypto Winter, Launches Gemini Mobile

Gemini Goes Mobile, Launches Crypto App  

On Tuesday morning, amid a continued imbroglio in crypto markets, New York-headquartered Gemini unexpectedly conveyed a surprising announcement to its following and clients. In a blog post, co-founder and CEO Tyler Winklevoss explained that his upstart would be introducing an in-house mobile platform tied to its flagship product — the world-renowned Gemini Exchange.

Starting today, users of the platform, often lauded as one of Coinbase’s foremost competitors, will be able to download the so-called “Gemini Mobile App” on iOS and Google Play. The application, which joins similar initiatives from Binance, Coinbase, and Poloniex, will purportedly act as an ecosystem to purchase and sell cryptocurrency, a portfolio tracker, price alert provider, and as a pseudo-wallet.

Gemini’s newest program will also facilitate a feature dubbed “Buy The Cryptoverse,” which like Coinbase Bundle and similar vehicles, allows traders to issue basket buy/sell orders for all cryptocurrencies listed on Gemini, weighed by relative market capitalization.

According to Google Play, since the application was released approximately seven hours ago (at the time of writing), it has been downloaded “500+” times. It remains to be seen whether the upstart’s foray into the mobile realm will garner traction from Bitcoin enthusiasts.

Regardless, this endeavor comes down to Gemini’s, and in turn, the Winklevoss Twins’ unrelenting drive for innovation in the cryptosphere, as they see this nascent asset class as the “future of money.” Harvard graduate Tyler Winklevoss, known for his involvement in the controversial Mark Zuckerberg/Facebook case, wrote:

We began our mission to buildthe future of money by creating a licensed cryptocurrency exchange and custodian that allows our customers to buy, sell, and store cryptocurrency in a safe, secure, and compliant manner. A trusted and regulated platform, however, is just the beginning. The future of money is both digital and mobile, and now Gemini is too with the launch of the Gemini Mobile App!

The industry insider closed off the product’s inaugural announcement by claiming that Gemini, which self-describes itself as “the world’s most trusted cryptocurrency platform,” will now be available “into your hands” at a consumer’s beck and call.

The news of this mobile application comes just days after the U.S.-centric platform launched support for Bitcoin Cash (BCH), following its contentious hard fork in mid-November, as reported by Ethereum World News previously.

Winklevoss Twins: “We’re Totally At Home In [Crypto] Winter”

As news broke regarding the product’s launch, Bloomberg released a piece outlining an interview it had with the prominent twins, who reportedly bought up 1% of all Bitcoin (BTC) in circulation following their multi-million dollar settlement with Mark Zuckerberg. Tyler claimed that “we’re totally home in winter,” highlighting the growing sentiment that crypto and blockchain technologies are in the midst of a multi-month lull, as made evident by BTC’s dismal performance.

Yet, like venture capital legend Tim Breyer, the twins seemed calm, adding that 2018’s market tumult has allowed Gemini to “build internally, and refine and kind of catch out breath.” The two went on elaborate on their plans for 2019, claiming that enticing users onto its mobile application will be a priority. The Winklevoss duo added that “a lot of their decisions” have been retail-based, contrary to the sentiment that Gemini is a platform slated for institutional players. As such, the Gemini heads then noted that they intend to make a foray into the Asian Bitcoin market in 2019, hopefully gaining on its crypto competitors in Bitfinex, Digifinex, and Huobi.

In short, Tyler, speaking on behalf of his brother and himself, told Bloomberg:

We’re in this for the long haul… We think it’s a space that’s here to stay

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Bitcoin Price Prediction Gone Wrong: $1M Options Call To Be Purged

$50,000 Per Bitcoin (BTC) Forecast Goes Wrong Amid Bear Market

One year ago, amid the peak of 2017’s monumental cryptocurrency bubble, in which everyone and their dog were incessantly discussing Bitcoin, BlockTower Capital, a juggernaut in the crypto investment realm, made a ludicrous bet on the future value of BTC.

This, for those who aren’t in the loop, was the decision to create a $1 million options contract on LedgerX, a CFTC-regulated cryptocurrency platform, that would reportedly fork out $29 million to BlockTower if BTC hit $50,000 by 2018’s end. In other words, if BTC somehow manages to hold above $50,000 on December 28th, BlockTower will see a thirty-fold profit fly its way.

However, according to a recent report from Bloomberg, and as made clear by crypto’s tumult, BlockTower’s ante might not end well, especially as the vehicle’s expiry date rapidly approaches. In fact, for the $1 million options call to be saved from impending doom, BTC will need to rally by upwards of 1,400% in just three weeks, a near-impossibility for any asset, even in an industry as nascent, yet promising as cryptocurrencies and blockchain technologies.

Still, Ari Paul, a managing partner at the America-based BlockTower, told CNBC in December 2017, just days after the creation of the bet, that he purchased the contract while liquidating his firm’s BTC stash. The former University of Chicago endowment manager then explained that the surprising call allowed BlockTower to secure profits, mitigate risk in a market drawdown, and have a potential to score big if BTC surpasses 50k, clearly accentuating the fact that if the options didn’t strike, he wouldn’t be (financially nor emotionally) devastated.

He echoed this sentiment in a tweetstorm made in late-September, in which he stated that “there’s no shame in losing trades,” before accentuating that risk management was a key factor in the creation of the $50,000/BTC by EOY 2018 options call.

BlockTower Still Bullish On Crypto

Although BlockTower’s ambitious wager on the short-term fluctuation of Bitcoin’s value is likely to go awry in a few week’s time, the firm, or at least some of its representatives, are still undoubtedly bullish on crypto.

Speaking with CNBC’s Fast Money segment, Michael Bucella, a partner at the crypto-focused investment firm, did his best to break down the current state of the Bitcoin market, and what’s in its short to mid-term scopes.

Noting that crypto’s bear cycle isn’t as perilous as it seems, Bucella, a former executive at Goldman Sachs‘ Canada branch, drew attention to his theory regarding the interplay between “strong hands” and “weak hands,” the two overarching types of cryptocurrency investors. The BlockTower partner noted that while it would be accurate to assume that weak hands, also known as speculators, are liquidating their holdings to diehards (strong hands), the latter group isn’t rushing to on-ramp free capital.

He explained that crypto’s recent liquidity dry spell, along with market volatility, can be chalked up to the hesitance from strong hands to bulk-buy Bitcoin. Although this statement may seem bearish in and of itself, Bucella added that crypto’s near-year-long “distress cycle” is presumably coming to its culmination, echoing analysts’ cries that the bottom is almost in.

Bucella, while reluctant to forecast where the looming Bitcoin bottom will hit, added that when BTC finds a floor, whether it be at $2,000, $3,000 or otherwise, opportunities to scoop up the asset at low prices will be rather scant.

And in the end, the BlockTower partner explained that the “smartest money” continues to foray into this industry, whether it be the endowments of MIT, Harvard, Stanford, or the countless institutional players that have overtly expressed interest into purchasing cryptocurrencies. Keeping this thought process in mind, Bucella noted that even purchasing BTC at current prices could be a bargain bin deal, especially from a multi-year perspective.

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Crypto, Bitcoin (BTC) Crash Just A “Bump In The Road”

Diehards: Bitcoin (BTC), Crypto Slump Is Just A Bump

Since Bitcoin (BTC)’s first day on the block, if you will, there have been a number of diehard decentralists that have seen immense value in the world’s first blockchain network. And while much has changed since the launch of the project, originally headed by pseudonymous coder Satoshi Nakamoto, with the crypto industry seeing sweeping market cycles, zealous believers in this decade-old innovation haven’t faltered in their belief.

In a testament to this undying belief, at the Bloomberg Crypto Summit on Friday, a number of crypto-centric panelists and presenters doubled-down on their affection towards cryptocurrencies and related technologies.  Speaking on-stage, James Bevan, chief investment officer at CCLA Investment Management, a long-term return-focused consortium, touched on crypto’s recent collapse, which skeptics say is a precursor to a Bitcoin “death spiral.”

Bevan, who once lauded Bitcoin (BTC) as pertinent in the future of global transactions, said the following:

“I don’t regard this as an existential crisis, I just regard it as a bump in the road and institutional investors have had plenty of bumps in the road in conventional currencies and transaction systems.”

Speaking with the Independent U.K., Angel Versetti, CEO of Ambrosus, echoed this sentiment that this is far from the end for cryptocurrencies. In an interview, the blockchain startup chief claimed that while many lambast cryptocurrencies for being in a Dotcom-esque bubble, this is far from the case. In fact, Versetti noted that he “doesn’t believe [that] we are, or were, anywhere close to a bubble with cryptocurrency.” The CEO of the blockchain upstart then added that the arrival of hotshot institutional players, who he dubbed “bankers” and “financiers,” indicates that the industry’s first bonafide bubble is still on the horizon, rather than in the present.

Attributing a figure to his call for an eventual bubble, the Ambrosus chief exclaimed that an eventual $15 to $20 trillion U.S. dollar market capitalization for all crypto assets is within the realm of possibility.

“I Can See A Huge [Stablecoin] Expansion”

After Bevan made his comments, other industry insiders also discussed stablecoins, a growing subset of cryptocurrencies that are aimed at more conservative investors — namely, institutions.

In recent months, a number of stablecoins have hit the market, with even Coinbase and Circle joining the fray. Keeping in mind that these new cryptocurrencies often are lauded as better than Tether (USDT), coupled with the recent downturn in Bitcoin, stablecoins recently saw an influx of buying pressure, as traders sought solace.

As noted by CoinDesk’s market analysis team, three USDT competitors, TrueUSD, USD Coin, and the Paxos Standard, recently entered the crypto Top 30, finding themselves around a ~$190 million market capitalization.

And interestingly, Lewis Fellas, the chief investment officer a British crypto fund Bletchley Park, believes that this growing stablecoin dominance is only slated to continue moving forward, despite the fears regarding Tether and Bitfinex. Fellas explained that there are purportedly 120 stablecoin-centric projects, but this subindustry is still in the “early innings of the proliferation.” The CIO added that he sees “huge expansion” potential, presumably referencing the institutional penchant for this form of cryptocurrency, which is just like a digitized dollar with blockchain values.

The conference attendees also touched on regulation in Bitcoin markets, claiming that it will become a growing facet of this industry henceforth. Although some lauded regulation as a good thing for crypto entrepreneurs, Ryan Radloff, CEO at CoinShares, exclaimed that government intervention could pose challenges, especially if there are discrepancies between crypto-friendly nations, many of which are economically small, and Western powerhouses.

Yet, Marieke Flament, the global chief of marketing at Boston-based Circle, claimed that it is necessary for larger countries to lay a path for cryptocurrency regulation, instead of leaving nations to play a never-ending waiting game.

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Roger Ver Unfazed By Bitcoin Crash, Maintains Crypto Has Value

Roger Ver, CEO of and the de-facto face of the Bitcoin Cash (ABC) project, recently met with Bloomberg in an exclusive video. Ver, known for his hate for centralized entities, and radical libertarian thought process, and penchant for the Austrian brand of economics, maintained that cryptocurrencies still have value, even in spite of 2018’s dismal market trend.

Crypto Champion Roger Ver Still Undoubtedly Bullish

Roger Ver, one of the crypto industry’s earliest proponents, has long been a leading champion of this innovation. While he may have strayed to the ‘dark side’ (in the eyes of some) since August 1st, 2017’s infamous Bitcoin hard fork, he continues to laud cryptocurrencies for their groundbreaking potential and ability to disrupt centralized players.

He recently took this passion to the streets of Tokyo, Japan, where he was met by Bloomberg to conduct an interview regarding crypto’s most recent happenings.

The Bloomberg host, evidently referencing reports that November 2018 has been Bitcoin’s worst month in years (some say seven), noted that markets have been “chilly,” before asking Ver if a “floor has been reached.” The ardent CEO, quick to the draw, exclaimed that “nobody knows.” Ver then joked that this unpredictability regarding “up, down, or sideways” movements are just a part of cryptocurrencies’ inherent “fun.”

Doing his best to egg his interviewee on, the host went on to ask Ver about his “gut feeling.” The Bitcoin Cash proponent, who lauds BCH as the true digital cash, doing his best to specify a prediction, responded by stating:

I’m a fundamentals investor, so I’m investing [due to] fundamental [factors]. [In the] long-term, the future is brighter than ever [for cryptocurrencies]. There’s more awareness, there’s more adoption, and there’s more stuff happening all over the world. So, of course, I’m incredibly bullish on the entire crypto-coin ecosystem.

In spite of Ver’s positive comments on the cryptosphere, the host, who didn’t seem all too sold on crypto, asked Ver if the $530 million hack of CoinCheck and/or a notable Japanese Bitcoin Ponzi scheme have undermined this innovation’s viability or credibility. Interestingly, Ver turned the question right on its head, noting:

If anything, I think its brought additional awareness to the ecosystem. The fact that such big players (institutions) are involved, and hackers are trying to hack it, means that cryptocurrencies are worth something. if it wasn’t worth anything, or if it wasn’t useful, hackers wouldn’t waste their time… So, if anything, it’s just a bullish signal that cryptocurrencies are here to stay for the long-term.

Ver: Self-Regulation Makes Sense

The host went on to touch on the Japanese Financial Services Agency (FSA), the nation’s equivalent of the SEC, and the approval it gave to Japan Virtual Currency Exchange Association (JVCEA) to self-regulate local crypto exchanges. Ver was asked if such a move is logical, and unsurprisingly, the anti-government commentator said that self-regulation makes sense.

The chief explained that the industry knows itself best, making self-regulation presumably better for all parties. He added that in the end, the JVCEA will be incentivized to establish proper guidelines, as the firms in the consortium have a vested interest in the continued success of cryptocurrencies. More specifically, presumably drawing hints from the countless Japanese exchange hacks, Ver added that “not letting bad things happen to their users” is evidently a good choice.

Speaking out against regulatory measures imposed by bureaucrats, Ver noted:

To think that a politician in some government office somewhere knows more about how cryptocurrencies work and how to keep them safe from hackers, I think is just naive. So of course its the industry participants, that know the most and have the most skin in the game.

Concluding his comments, touching on what could send cryptocurrencies assets higher over the long haul, noted:

I think we need to build the tools to make it easier to use cryptocurrencies, as money, to buy and sell things, and to pay their bills, and pay their rent, and even pay their taxes.

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Bloomberg: More Than $500 Mln Tether Issued in August Is Not Impacting Crypto Markets

New issuances of stablecoin Tether (USDT) are not currently affecting the prices of either major cryptocurrencies or smaller altcoins, Bloomberg reports August 24.

In the article, Bloomberg noted that the allegations that Tether has been used to manipulate or stabilize the price of Bitcoin (BTC) — previously put forward in a paper from the University of Texas — are not holding true for the crypto markets this August.

The paper, published in mid-June, had claimed that Bitcoin reached its all-time high of $20,000 due to price manipulation involving both Tether and sixth largest crypto exchange Bitfinex, which is reportedly “the only direct client” of Tether.

In a June article, Bloomberg had noted that the research paper used 87 examples of the largest purchases of Tether with BTC from March 2017 to March 2018, finding that although they accounted for “less than 1 percent of the time period examined, they amounted to about 50 percent of Bitcoin’s compounded return over that year.”

In this week’s article, Bloomberg noted that the findings made in a recent research paper by blockchain research firm Chainalysis claiming that Tether has been increasingly impacting the prices of smaller cryptocurrencies, such as EOS and NEO, instead of major cryptos such as Bitcoin, Ethereum (ETH), and Litecoin (LTC), are not true for August.


Chainalysis Tether Price Correlation With Crypto Markets Chart. Source: Bloomberg

Bloomberg writes that Tether has issued over $500 million worth in new tokens in August, according to Omniexplorer data. However, “not even more than half a billion” in new USDT has been able to make any impact on the price of EOS and NEO this month, Bloomberg stated, citing that the altcoins have dropped 37 and 44 percent this month respectively.

Bitcoin has also seen a drop of around 19 percent on the month, with Bloomberg noting that August’s Tether issuance is a “move that in the past would have often coincided with a rally in Bitcoin.”

In July 2018, Bloomberg had posted another article on Tether’s price manipulation, focusing on the Kraken crypto exchange and implying that daily tradings amounts on Kraken should be influencing the price of USDT. Instead, as author pointed out, the cryptocurrency remained relatively stable, which was considered by “experts on market manipulation” as a “red flag.”

Kraken refuted Bloomberg’s claims shortly after, stating that Bloomberg’s writers “fail to comprehend basic market concepts such as arbitrage, order books and currency pegs.”