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Bank of France is Closely Watching Stablecoin Developments, Says Governor

The Bank of France’s governor Francois Villeroy de Galhau says they are monitoring stablecoins “with great interest.”

The Bank of France has taken an interest in stablecoins, as indicated by the bank’s governor Francois Villeroy de Galhau in a Bloomberg report on May 14 .

Villeroy has said that the bank is “observing with great interest” growing networks that allow members to exchange stablecoins for tokenized securities, goods, and services. He makes a point to distinguish stablecoins from cryptocurrency tokens at large, however, saying that stablecoins “are quite different from speculative assets like bitcoins, and more promising.”

Villeroy has been an outspoken critic of bitcoin in particular, notably making the following statement at a 2017 conference in Beijing, China:

“We need to be clear: Bitcoin is in no way a currency or even a cryptocurrency. It is a speculative asset. Its value and extreme volatility have no economic basis, and they are nobody’s responsibility. The Bank of France reminds those investing in bitcoin that they do so entirely at their own risk.”

Mario Draghi, the President of the European Central Bank (ECB) — of which Villeroy is a governing council member — has recently echoed these sentiments, saying that cryptocurrency is not a currency, but rather a risky asset. Draghi points to the lack of backing for tokens such as bitcoin, rhetorically asking, “Who is behind the cryptocurrencies?”

Unlike bitcoin, stablecoins are designed such that their value is always tied directly to some asset, such as gold, or are stabilized by an algorithm. A number of stablecoins have their value pegged to fiat currencies, such as TrustTokens’ line of fiat-backed coins, which include TrueUSD (U.S. dollars), TrueGBP (British pounds), TrueAUD (Australian dollars) and TrueCAD (Canadian dollars).

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South Korean Internet Giant Kakao’s Blockchain Platform to Launch in June

South Korean internet giant Kako has announced the release date of its blockchain platform.

Ground X, the blockchain arm of South Korean internet giant Kakao Corp, has announced the launch date of its own blockchain platform, a Cointelegraph correspondent learned at Consensus 2019 on May 13.

Per the announcement, the Klaytn mainnet will launch on June 27, 2019, and will purportedly be a major driver of blockchain adoption in the country. Kakao has a 96% market share in South Korea, with a presence in messaging, gaming, content services, financial services and mobility services.

Kakao announced its intention of launching a blockchain platform last March, and released a testnet version of Klaytn in October. The platform focuses on decentralized apps (DApps). As of October last year, developers were working with around ten domestic and international partners to test the new ecosystem.

More recently, Kakao has repeated its initial coin offering (ICO) to raise an additional $90 million for Klaytn. In December, the firm announced plans to raise a total of $300 million through Ground X to develop a native token.

Kakao also purportedly has plans to release an integrated crypto wallet in its messaging app, KakaoTalk, following the release of the Klaytn mainnet, according to South Korean outlet Fnnews.

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It’s Time To Buy Bitcoin (BTC), Ongoing Recovery Looks Bullish: Fundstrat Analyst

bitcoin crypto btc bull

Fundstrat Awaits Rally Past $6,000

Over the past 48 hours, Bitcoin (BTC) bulls have begun to return en-masse. As of the time of writing this, BTC is trading at $5,675, finding itself up by around 5% in the past 24 hours. Crypto assets as a whole have yet to post similar gains, leading some to postulate that Bitcoin’s recent rally has much to do with the Tether and Bitfinex news, but some are sure that the asset’s chart remains bullish.

In a recent research note obtained by Bloomberg, Robert Sluymer, Fundstrat Global Advisor’s technical strategist and in-house chartist, explained that BTC is currently in the midst of a longer-term recovery. He explains that it would be wise for investors to “use pending pullbacks,” which may soon arrive as a result of Bitcoin being overbought per some indicators, to “accumulate BTC in the second quarter.” Sluymer adds that there may be a “second-half rally” through the $6,000 resistance level, especially considering the rebound off its 200-week moving average and breakout from its early-2019 trading range.

This purportedly comes after Sluymer was bearish on cryptocurrencies in late-2018, citing November’s move as a catalyst for the creation of “significant technical damage.”

Not The Only Bull

Sluymer isn’t the only analyst currently bullish on Bitcoin and the digital asset market at large. Murad Mahmudov, Adaptive Capital’s chief investment officer that is 75% sure the bottom is in, noted in a recent chart that the liquidity gap between $5,600 and $6,400 could attract BTC rapidly towards that level. He points out that a similar occurrence came to life when BTC rallied past $5,000 on April 2nd, as a lack of liquidity (meaning little short-term resistance) in the mid-$4,000s aided bulls greatly.

For this to move to come to fruition, however, Bitcoin will need to break past the $5,600 resistance and set up shop above that key local level.

Bitcoin Fundamentals Look Strong Too

Even if technical readings don’t prove to be bullish, fundamentals are surely leaning in Bitcoin’s favor. As Tom Lee of Fundstrat recently remarked on a CNBC “Fast Money” segment, the transactional value of on-chain BTC transfers has turned positive on a year-over-year basis, while the average daily transactions processed have almost reached all-time highs. What’s more, big names, both in terms of institutions and corporations, continue to siphon time, capital, and talent into this space without much of a concern. He adds:

We surveyed OTC brokers, who are really important in facilitating institutional investors, and they’ve all talked about a 60% to 70% increase in activity/number of clients and trading volume per client. Fundamentals are improving; technicals are improving, and activity by HODLers too.

And with that, Lee concluded that BTC could start to enter a state of “spring” after a brutal winter, adding that the asset is “likely” to see new all-time highs at last in 2020.

Photo by Noah Silliman on Unsplash

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Brexit and April Fool’s Joke Possible Catalysts for Crypto Rally, Crypto Reporter Says

Hong Kong-based crypto reporter Eric Lam cites Brexit and a Bitcoin ETF joke as possible catalysts for the recent rally in crypto markets.

Hong Kong-based crypto reporter Eric Lam believes nobody in the crypto industry has a good theory to explain the recent recovery of crypto markets. Lam shared his stance with Bloomberg on April 3.

On Tuesday, April 2, shortly after the Asian markets opened, the price Bitcoin (BTC) unexpectedly rallied by 20 percent. Today the world’s top currency hit $5,000 for the first time since November 2018, while major altcoins have seen double-digit gains.

Lam has ironically linked the uprising to a crypto-related April Fool’s Day story, which claimed that the U.S. Securities and Exchange Commission (SEC) finally approved a Bitcoin exchange-traded fund (ETF). CNBC also mentioned this joke as a possible catalyst behind BTC rally.

The reporter also suggested that crypto investors might start buying coins as the market started showing signs of recovery, forcing the prices to grow further.

Moreover, Lam agrees with an earlier theory which claimed that some investors are changing pounds to Bitcoin ahead of Brexit, which is scheduled to happen in mid-April.

Lam also thinks that the surge can be related to algorithmic trading. As Bloomberg explained in another article dedicated to the so-called crypto Renaissance, the computer mechanisms were allegedly triggered by a mysterious 20,000 BTC order (around $100 million at the press time) that was spread around U.S.-based crypto exchanges Coinbase and Kraken and Luxembourg’s Bitstamp.

As of press time, Bitcoin is still making gains, trading at $5,238 according to CoinMarketCap.

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Bloomberg, CNBC Both Snuff Bitcoin (BTC) After 20% Spike

Mainstream Media FUDs Bitcoin

Bitcoin (BTC) spiked by 20% over the past 72 hours, pushing the cryptocurrency above $5,000, and mainstream media seems to be back with pushing FUD.

In a recent comment given to CNBC Make It, Peter Mallouk, the president of Creative Planning, a wealth management firm, overtly lambasted BTC. He explained that the market is “most likely” to see “cryptocurrencies collapse,” from coins like BTC and Litecoin to Ethereum and Ripple’s XRP. Mallouk adds that he sees no logical way that “even a fraction of them” somehow pull through.

The wealth advisor remarks that while it is possible that a digital asset could garner traction in the future, right now, Bitcoin and similar assets aren’t a real investment, as they provide no income and are only based off speculation. (Of course, he disregards Bitcoin’s value proposition as a digital store of value.) Mallouk goes on to remark that proper alternatives to cryptocurrencies would be real estate, stock, and bonds, as they provide rent, dividends, and yield respectively. In other words, “Again, You don’t want to own something that’s not going to pay you.” (Again, this shows his relative lack of knowledge of cryptocurrencies, as there exists Proof of Stake in some capacity.)

Mere hours prior to the CNBC report, Bloomberg Opinion came out with its own BTC-bashing piece. The author explains that “there’s no good reason to turn bullish on crypto,” quipping that the fact that macroeconomic factors that Tom Lee and Brendan Bernstein have brought up are invalid, a lack of mainstream adoption, and continual bad news about hacks, fake volume, and the like should have investors worried rather than enthused. Many on Twitter overtly lambasted the article, claiming that there is no logical reason to “ignore” BTC, a monetary revolution. (At least Bloomberg linked one of Ethereum World News’ pieces though)

They’re Getting Crypto Wrong

While the above concerns are somewhat valid, as Bitcoin is a newfangled, often hard-to-comprehend paradigm in society, mainstream media outlets have been historically hilariously wrong on cryptocurrency. In fact, 99Bitcoins predict that BTC has been proclaimed dead by respected publishing houses over 300 times, with a lot of these reports coming prior to 2017’s jaw-dropping rally. They missed the surge, that’s for sure.

Following Tuesday morning’s surge, which pushed BTC past key resistance levels and pushed a bullish narrative, journalists tried to postulate what caused the run, as they looked to capture viewership with any method they could drum up.

CNBC’s “Squawk Box” drew attention to an April Fools’ Day joke from a fellow trade publication as a catalyst. This, of course, wasn’t the case at all, as the article in question was released 18 hours prior to the price surge. By the same token, Gizmodo explained following the price bump that Bitcoin wasn’t sustainable, bringing up the whole debate of a monetary asset that uses electricity isn’t viable.

Photo by AbsolutVision on Unsplash

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Bitcoin Posts Six Weeks Of Gains, Bloomberg Claims BTC Rally Could Continue

Weeks And Weeks Of Crypto Gains

For the first time in a blue moon, cryptocurrencies have posted consistent gains for the better part of two months. Rhythm Trader, a leading industry analyst that is also known as Alec Ziupsnys, recently pointed out that for the first time since Bitcoin breached $20,000, BTC has posted six weeks of consecutive gains.

In mid-February, BTC rallied by 2.9%, then 1.58%, 2.86%, 1.73%, a mere 0.11%, and then, most notably, 3.18% over the last week. For those not wanting to deal with a handful of numbers, this represents a ~13% rally ($3,600 to $4,160) that began around February 17th, when this nascent market suddenly a monumental uptick in volume, seemingly resulting in what has been called altseason (relatively stable Bitcoin price action as cryptocurrencies, like Cardano, Binance Coin, amongst others, have surged).

Such consistent gains on extremely low volatility have historically presented a bullish case for this market, as explained by Murad Mahmudov. And a recent report from Bloomberg would that BTC’s bulls might not be ready to rest just yet.

Bitcoin Could Have Further To Run

According to Bloomberg’s Todd White, the GTI VERA Convergence Divergence Indicator, a signal that allows traders to gauge the potential of future rallies and pullbacks, is currently leaning bullish. This is purportedly the first time that this indicator has registered such a measure in months. As the outlet explains, the last time the GTI VERA issued a “buy,” Bitcoin rallied by 17% within a two month time frame, a move that would line up with BTC’s recent movements if repeated.

This comes after Crypto Thies’ proprietary “Market God” indicator issued an auspicious buy signal. As reported by this outlet previously, the indicator recently issued a “buy” for the first time since mid-2015, which follows the issuance of a “sell” near the peak of 2017-2018’s cryptocurrency rally. While the indicator’s inner workings aren’t exactly clear to Thies’ audience, it has proven to be an accurate trend forecast tool, as it managed to somehow predict short to long-term moves.

In a recent CoinTelegraph signal, Mati Greenspan, a senior markets analyst at eToro, continued the onslaught of bullish sentiment. Greenspan, a prominent voice in this industry, explained that BTC recently broke a key downsloping trend line that has managed to stop rallies dead in their tracks at levels like $8,500 and $6,500. The analyst calls this move “quite significant,” as it does signify that the cryptocurrency market is somewhat out of hot water, albeit not entirely.

However, it is important to note that BTC isn’t in the clear yet, nor are altcoins. As reported by Ethereum World News, BTC remains under its 200-day moving average, which has been a pseudo-overarching resistance for BTC throughout much of 2018’s “crypto winter.” Greenspan looks to this too, explaining that even if Bitcoin manages to surmount the key resistance at $4,200, it will have another $400 before it encounters that moving average, which will likely come alongside a mass of sell orders.

As of the time of updating this, Bitcoin has pumped, and has passed $4,200. But some analysts are wary that the cryptocurrency could pullback strong if there isn’t sufficient buying pressure.

Photo by Daniel Páscoa on Unsplash

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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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