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Report: Binance To Offer Margin Crypto Trading, Despite Regulation

Binance To Offer Crypto Trading On Margin

When the now-popular crypto exchange Binance unveiled its whitepaper in 2017, it promised its angel investors a stellar platform that would support much under the Bitcoin sun. Although the startup has delivered on much of its original promises, Binance’s whitepaper mentioned “margin trading” as a part of its “feature rollout.” But, as you know, leverage is unavailable. Moreover, the firm has kept its mouth mostly shut on the matter.

Yet, a recent exclusive from The Block claims that the renowned trading platform is on the verge of giving its millions of users access to margin. The outlet claims that such an offering, purportedly in the works, will require users to stake BNB.

Code found by a pseudonymous programmer would confirm the rumors that the Malta-registered exchange is looking into margin trading.

The user, going by the moniker “enriquejr99,” noted that Binance has “silently included” two booleans that are as follows: isSpotTradingAllowed and isMarginTradingAllowed. These two lines of code were first spotted in Binance’s Ethereum-Bitcoin pair.

Enrique added that upon further analysis of Binance’s 482 crypto trading pairs, he discovered that margin was mentioned, but is currently disabled.

It isn’t clear when the booleans were added, but the exchange’s recent multi-hour downtime could be when Binance’s developers quietly added that in, as the company could very well be readying up to give its millions of users access to leverage. The details of this purported project are, of course, scant. But initial margin support for popular crypto assets, such as Bitcoin and Ethereum, would make sense.

Not So Fast?

Although the evidence seems undeniable, Changpeng “CZ” Zhao, the chief executive of Binance, has questioned the hearsay. In an interview with CryptoSlate’s Joseph Young, Zhao explained that the code seen above is part of his company’s attempts to “future proof” their “API framework as part of our system upgrades.” This would confirm the sentiment that the booleans were added during the exchange’s recent down time, but Zhao added that he can give “no dates” on the release of margin.

Even if CZ is prepping for the launch of this feature, The Block’s sources are wary that this could spell regulatory trouble for the exchange, which has already been booted from Japan and Hong Kong.

Sources explained that margin with cryptocurrencies specifically could be an issue with governmental entities, as Bitcoin’s inherently unregulated nature allows for price manipulation not only on the blockchain layer but with exchanges too. One explained:

“Any trading activity that is confusing, insufficiently explained or hyper-predatory is bound to leave unhappy customers, who may complain to regulators.”

This all implies that it may be in Binance’s favor to deter the launch of margin, rather than to delve into such a subsector without weighing the risks.

Photo by Mark Finn on Unsplash

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Vitalik Buterin Sees Ethereum (ETH) Dominance Fading… And He’s Not The Only One

Vitalik Claims Ethereum Is Losing Its Lead “To Some Extent”

Earlier this week, the one and only Vitalik Buterin sat down with prominent crypto journalist Laura Shin to talk all things Ethereum. In the interview, this being the first live episode of “Unchained,” Buterin was surprisingly candid, letting a few things slip out of his lips that may have caught some on the back foot.

According to BreakerMag, Shin started it out with a toughie: “is Ethereum losing its lead?”

Surprisingly, Buterin conceded, remarking that yes, Ethereum is losing its command over the smart contract blockchain ecosystem “to some extent.” The Russian-Canadian coder chalks this up to his brainchild’s nascency, explaining that as the industry swells, there will naturally be competitors that rear their heads. He adds that time gives projects time to build off their predecessors.

The 26-year-old programming wiz goes on to touch on potential competitors. Polkadot, a yet-to-launch crypto project that raised a purported $100 million+. Buterin explains that he doesn’t see the blockchain replacing his own. Yet, he explains that he wouldn’t be entirely disheartened if the privacy-centric ZCash or even Ethereum Classic were to usurp his project’s own hegemony.

On the other hand, he poked fun at Tron, explaining that if the Justin Sun-run venture manages to take over Ethereum, he ”
will have lost a certain amount of hope for humanity.”

Losing Steam

Buterin isn’t the first to have brought up issues with the narrative that Ethereum will always be the go-to platform for decentralized applications.

Kyle Samani, the co-founder and managing partner of Multicoin Capital, noted that well-funded, high-potential blockchains could eventually pose a threat to Ethereum’s multi-year supremacy. The Multicoin executive noted that Cosmos and the a16z-backed Dfinity, two projects that found their roots in 2017, could take a large piece of the smart contract development and deployment pie.

World-renowned venture capitalist Fred Wilson echoed this thesis. In a blog post, Wilson, the co-founder of Union Square, remarked that “‘next-gen’ smart contract platforms” will begin to ship and challenge the long-standing leader in 2019, especially in terms of its leadership in this “super important area in the crypto sector.”

In a recent Forbes interview, Alex Sunnarborg, a Tetras Capital representative, noted that recent layoffs at Consensus Systems, better known as ConsenSys, should have a negative effect on the broader Ethereum ecosystem.

He added that the fact ConsenSys is an integral part of this subsector and underwent purportedly drastic staff cuts should have some worried. Generalizing DApps and products on the platform, Sunnarborg explained that many promising offerings have yet to launch, and the ones that have are “pretty difficult to use” and have little-to-zero active users.

Case in point, the Tetras capital founding partner drew attention to the mere $40,000 currently staked on Augur, a multi-million dollar ICO. Thus, he claimed:

“There’s this massive disconnect between how much money is still tied up in these projects and how much people actually use them.”

Sunnarborg added that Ethereum may also become pressured by competition blockchains, like Dfinity or Polkadot, along with the fact that the chain’s development is losing momentum and steam.

Photo by James Pond on Unsplash

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Key Bitcoin (BTC) Investors Join Hands: Morgan Creek Funds Ikigai

Pomp and Kling Team Up, Look To Bolster Crypto

By and large, 2018 hasn’t been kind to crypto startups. Smaller, little-known exchanges have shuttered operations entirely, while some recognizable names in this budding industry have laid off dozens, if not hundreds of their talents. As reported by Ethereum World News, Bithumb recently joined the list of mainstay industry stakeholders to have laid off employees (50% — 160), citing waning Bitcoin trading activity.

But, two names in this space have excelled over the past 12 months, carving out what scant space there is for themselves in interesting, yet effective ways. These companies are known as Morgan Creek Digital (MCD) and Ikigai Asset Management, and they’re two U.S.-based cryptocurrency-centric funds focused on bolstering adoption and viable applications.

Funnily enough, the MCD and Ikigai decided to join hands on Wednesday, issuing a press release to reveal that they had formally joined hands.

Morgan Creek’s digital asset branch, headed by partners Mark Yusko, Anthony “Pomp” Pompliano, and Jason A Williams, will be anchoring Ikigai’s cryptocurrency hedge fund, which will enlist long-short equity strategies and venture stakes in promising firms. The nominal value of this sum was not divulged.

In a comment, industry commentator Pomp, who has amassed a following of nearly two hundred thousand on Twitter primarily through his catchphrase, “Long Bitcoin, short the bankers,” lauded Ikigai. He expressed his love to the Los Angeles-based firm by stating:

Ikigai has built an impressive platform for understanding the evolution of, and investing in, crypto assets. 

Former Facebook staffer Pompliano then referenced his thought process that cryptocurrencies will be the best-performing, asymmetric asset class in the next decade, adding that Ikigai should be able to “well-positioned to capture” that upside potential.

Morgan Creek’s decision to invest in an industry partner comes after the former secured a $40 million bursary from two Virginian pension funds, an endowment, and other institutions to invest in companies like the yet-to-launch Bakkt, Coinbase, and Harbor.

Bitcoin To Oust Fiat?

So why are MCD and Ikigai joining hands? Well, the simple answer is that the two firms’ founders and leaders are advocates of the theory that BTC and other cryptocurrencies are a viable alternative to fiat, which they deem as antiquated and potentially Ponzi-esque.

In a recent tweet, Kling remarked that when the “books are written about crypto” in the future, when Bitcoin is valued at trillions, the dovish nature of the Federal Reserve will be a “big part of the story.”

The anti-establishment figure is touching on his long-standing thought process that Quantitative Easing — the “most ambitious monetary experiment ever” — will be what kills the macroeconomy.

In an independent newsletter iteration, published on Off The Chain, Pompliano echoed this thought process that government-issued money isn’t sustainable. He cites a tweet from the European Central Bank (ECB), in which one of the entity’s basement overtly states that his overseers have the ability to print money. While Pomp acknowledges that this is common knowledge, he explained the EU fiscal authority’s propensity to make that fact publicly-known draws the ECB’s intentions into question.

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6 Banks Partner with IBM to Use Stellar Technology and XLM as “Bridge Currency”

Stellar, the blockchain that intends to become a decentralized alternative for interconnecting banks and institutions, has had an outstanding performance during the last few weeks, not only from technical indicators but also at the level of adoption and development of its technology.

On Monday, March 18, IBM announced that six international banks signed letters of intent to adopt IBM World Wire technology on their respective infrastructures.

Stellar Lumens (XLM) New Logo

IBM World-Wire is a payment network developed by IBM based on the Stellar public blockchain that allows these banks to mobilize funds almost instantly and explore other financial services such as the creation of their own networks and even issuing native stablecoins.

However, one of the news that provoked more emotion in the community is the fact that besides the benefits mentioned above, the use of Stellar’s blockchain would allow banks to handle Stellar Lumens (XLM) as a bridge cryptocurrency to facilitate the exchange of tokens.

Of the six banks, three have been identified by the CoinDesk team: RCBC from the Philippines, Banco Bradesco from Brazil, and Bank Busan of South Korea. The remaining ones have not yet publicly disclosed their involvement.

Jesse Lund, IBM’s head of blockchain for financial services was quite enthusiastic about IBM’s projection in this market. He said he hopes IBM will have the ability to offer its services to U.S. banks very soon. Basically, the main obstacle is imposed by regulatory bodies.

“So we are starting with markets that are outside of the U.S., but it won’t be long before we add U.S. as an operating endpoint. It will be sometime this year; we will get to it, third quarter, fourth quarter something like that,”

Lund explains that they feel optimistic since they received “a favorable verbal response” (so it is possible to expect a formal response in a short time) from regulatory bodies.

Stellar XLM + IBM = Good News for the Ecosystem

The partnership between Stellar and IBM has been quite fruitful for both parties. IBM now has a solid technology and a strong enough reputation for being an important competitor in an emerging market virtually dominated by Ripple.

Similarly, Stellar has gained a high level of credibility, and its token has shown a bullish behavior after the news of the partnership with IBM and its recent listing in Coinbase Pro.

Stellar Lumens (XLM) has been on a bullish trend during the last month. According to data provided by Coinpricewatch, the token broke the resistance set at 0.085 USD to reach a price close to the 0.11 USD

courtesy: Coinpricewatch

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Switzerland’s Biggest Online Retailer Starts Accepting Payments in Bitcoin (BTC) and Altcoins

Digitec Galaxus AG, the biggest online retailer in Switzerland, has decided to enter the crypto space and has done so through the main door.

In an official press release published on its website a few hours ago, the e-commerce giant announced that as of today, customers will be able to pay for their purchases with Bitcoin (BTC) and a significant number of altcoins:

“As one of the first online shops in Switzerland, Digitec Galaxus now accepts cryptocurrencies: customers of the two online shops digitec and Galaxus can now use Bitcoin, Bitcoin Cash ABC, Bitcoin Cash SV, Ethereum, Ripple (XRP), Binance Coin, Litecoin, TRON, NEO or OmiseGO to pay for all purchases with a total of over CHF 200.- or more”.

The firm was able to implement this new payment method thanks to a strategic alliance with the Swiss e-payments company Datatrans AG. This fintech, for its part, works together with Coinify (a crypto payment provider) to guarantee the instant conversion of crypto into traditional fiat currency.

Crypto Payments: Innovation is Always Good For Business

Despite not being wholly convinced of the advantages of blockchain technologies, Oliver Herren, Chief Innovation Officer at Digitec said that the company was willing to take that step a long time ago, but had to wait for the ecosystem to develop a bit to ensure a safe and innovative implementation:

“We’ve been wanting to do this for ages, but the effort it would have required has just always been too big. Now we’ve found a simple solution with Datatrans and Coinify. Thanks to our very own engineering team Spectre, the implementation has been a relatively effortless and straightforward matter”.

However, Claudio Schaad, leader of Team Spectre showed greater enthusiasm, explaining that the development team was really optimistic about the use of cryptocurrencies to expand their services:

The question of the hour was: what was the coolest, most impactful project they could come up with? They found their answer in a half-attempted but finally abandoned agile initiative: cryptocurrencies. The mystery-mongers at Spectre laughed and said: this fits us like a glove”

Mr. Herren explains that Digitec Galaxus AG would not be directly involved in the handling of cryptocurrencies. At the time of payment, customers send tokens that are immediately exchanged by Coinify into fiat, which is immediately transferred to the retailer. The process has a 15-minute payment window to minimize the risk associated with the volatility of the cryptocurrencies.

The payment option is enabled for all the 2.7 million products available for purchase on both Digitec’s website – geared towards consumer electronics – and Galaxus – an online warehouse for the general public.

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Crypto Winter Strikes Again, Leaves Gaping Hole In Bithumb’s Side

Crypto Startup Bithumb Slammed

Since getting hacked in the middle of 2018, Bithumb, South Korea’s largest crypto asset exchange, has been struggling. The so-called crypto winter, which started to bare its fangs late last year, has only exacerbated the startup’s qualms.

Bithumb’s situation purportedly came to a head just recently, with CoinDesk reporting that the company has unveiled plans to cut upwards of half of its staffers. Citing an unnamed executive from the company, which has plans to go live on the New York Stock Exchange through a reverse merger, the 300-man headcount will be cut to 150. It was explained that as the platform’s trading volume has decreased, Bithumb is enlisted “internal measures” to mitigate further economic damage.

A startup representative made it clear that the 160 purged from their roles won’t be left out to dry, however. He/she remarked that Bithumb’s former employees will have access to “assistance and training for job placement,” but wasn’t clear on what the details of said program would entail. It was added that Bithumb will continue to hire staffers for “various new businesses.”

While the South Korean firm has been suffering, the local crypto economy could soon see a revival on a monumental scale. Kakao, a leading social media giant in the region (44 million users in a nation of 51.5 million), is rumored to have plans to unveil a native cryptocurrency wallet for its Talk application, a popular instant messaging platform. This offering, which is purported to come alongside a blockchain platform named “Klaytn,” could spark a second wave of cryptocurrency adoption in the Asian nation, which has embraced blockchain with open arms.

Layoff After Layoff

Even if Bithumb is able to get back on its feet through an uptick in local adoption, it’s been mostly doom and gloom for many global startups.

Mere weeks ago, First Digital Assets Group (FDA), a blockchain application group based in Tel Aviv, was revealed to be dropping most employees from its payroll. As a part of this refresh, FDA will purportedly be totally purging its industry research division, One Alpha. The Israeli upstart will also be putting its K1, Stamina, Titan, and Knox ventures on the backburner, merging a majority of these subsidiaries’ facets with the parent group.

This is just the tip of the layoff iceberg though. ShapeShift laid off 37 staffers, with CEO Erik Voorhees explaining that his firm expanding into alternative opportunities, like KeepKey and CoinCap, too quick. Bitmain was rumored to have cut over 1,000 employees, cutting of a number of its facets and even Jihan Wu to stay afloat. And the NEM Foundation, the organization that heads development of the XEM digital asset, cut 60% of its monthly burn rate, presumably cutting a few dozen of its 150-strong employee base.

Funnily enough, some see these layoffs as mandatory. Travis Kling, the CIO of Ikigai, explained that prior to Bitcoin rallying again, the industry needs more layoffs, exchange collapses, stringent regulation, and cries that “crypto is dead.”

Photo by Mike Kotsch on Unsplash

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VanEck’s Bitcoin (BTC) ETF Receives Scathing Comments, What’s The Deal?

Bitcoin Has No “Intrinsic Value”: American Investors Weigh In

Since a Bitcoin exchange-traded fund (ETF) was proposed in the U.S. markets, pundits have lauded it as the single thing that could bring the cryptocurrency market from “immature” to “mature.” Others have also touted such a vehicle as the rocketship that would bring BTC to the moon, so to speak.

Yet, members of the non-crypto public aren’t too sold on the entire idea. Per a list of comments posted on the U.S. Securities and Exchange Commission’s (SEC) webpage, specifically in regards to VanEck, SolidX, and the CBOE’s rule change, most are skeptical of what value cryptocurrency provides.

Sam Ahn of Hana Trading released a six-page, nine-point tear down of Bitcoin and the proposed ETF product, which would open the floodgates to BTC. While Ahn’s points were drawn-out, a clear theme of anti-mining, Satoshi Nakamoto cynicism, and “BTC doesn’t have intrinsic value” was apparent. The investor remarked that not only is Satoshi’s magnum opus hard for him to process, but that the cryptocurrency isn’t like gold as in “a string of 64-digits, with about 17 leading zeroes” (hash) cannot be likened to a physical item used in electronics, jewelry, and as a value store.

While many cryptocurrency diehards would deem Ahn’s comments moot, this was just the tip of the iceberg. Another respondent, Dina Pinto, remarked that she believes that BTC doesn’t deserve a “serious product,” as she sees the nascent market surrounding the digital asset as “volatile and manipulated by the very few [that use it].” Pinto adds that the leading crypto has “no real use case.”

Another commenter, one Sarah Malone of unknown affiliation, echoed the aforementioned comments to a tee, explaining that there is no value in BTC becoming a tradable financial product, let alone a medium of exchange.

Finally, one other played the “blockchain not Bitcoin” card, remarking that cryptocurrencies lack viability in many’s day-to-day, while ledgers hold immense value.

What all the aforementioned critics seem to be forgetting is Bitcoin’s value proposition in nations stricken with capital controls, hyperinflation, authoritarianism, among other societal shortcomings. This, of course, is because they are viewing BTC from the lens of an American citizen, many of which aren’t (currently) subject to irresponsible government and fiscal planners.

But in the end, the opinions of U.S. citizens is what is important in this case, as the product will be accessible to some of those stakeholders .

The Silver Lining

Yet, there was a silver lining. One user, going by Sami Santos, published an eight-point comment on March 12th that outlined the merits of Bitcoin, and why it needs a fund tracking it. Santos stuck to the normal Bitcoin advocate script, explaining that it is fast, cost-effective, unconfiscatable, and private (not exactly, but it’s pseudonymous).

The investor went on to explain that blockchain can mitigate corruption and money laundering, Bitcoin can be a “weapon” against financial inequity and inflation, and as a medium to bolster innovation of technologies.

In this case, Santos was Bitcoin’s sole knight in the crusade for an ETF product, which would entirely legitimize this asset. But will the SEC listen to him, or those who were a tad sardonic?

Photo by Anna Popović on Unsplash

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Citi Once Had Plans To Launch A (Centralized) Crypto Asset, But Failed To Execute

Wall Street Mainstay Pulls Out Of Crypto Plan

In an exclusive report from CoinDesk, it was revealed that Citigroup, one of the world’s largest financial institutions, was revealed to have once pulled out of a plan to launch its own crypto asset. The thing is though, such a venture purportedly started in 2015.

Gulru Atak, one of Citi’s global heads of innovation, told the outlet that Citi’s research and development team, who have centered their efforts around “making meaningful improvements in the existing rails,” once established a project called “Citicoin.” The digital asset, which was nothing more than a proof of concept created by Citi’s Dublin innovators, was once internally touted as a way to bolster global, digital-based payments.

But, after weighing the costs of the prototype, Citi pulled the rug out from under the project, as it determined that there were better ways to “improve the existing [payment] rails.”

Instead of offering its own cryptocurrency, which would likely be centralized beyond compare, the New York-headquartered firm is looking into integrate blockchain into legacy systems, removing the need for a coin that may just complicate things. Atak remarked in closing:

“[CitiConnect’s goal] was purely to integrate into a blockchain-enabled system on our client’s end and make it connect to our legacy payment processes real-time… “

Details of Citicoin are hard to come across. But, many have drawn lines between the experiment and newfangled product from JP Morgan.

JP Morgan Only Doubles Down

Down the street from Citi, the financial pillar has begun a pilot for what is best known as JPM Coin, a U.S. dollar-backed stablecoin based on a private version of the Ethereum blockchain. As reported by Ethereum World News when the news broke, the ledger-based token will first be used for a
“tiny fraction” of the institution’s $6 trillion in daily corporate transactions. The bank’s fintech team hopes that this venture will reduce costs.

Eventually, overt Bitcoin critic Jamie Dimon wishes for JPM Coin to be harnessed in the day-to-day, telling investors that it could one day be an asset heavily utilized by the consumer audience. In other words, Dimon and his cronies intend to see JPM Coin used in everything from buying a coffee to international billion-dollar payments.

So if Citi dropped Citicoin, why is JP Morgan going ahead with JPM Coin?

Well, the answer to this isn’t all too clear, but there has been speculation about this subject matter. What many have drawn attention to is the fact that since 2015, blockchain technologies have advanced monumentally, making centralized cryptocurrencies all the more valuable.

Anyhow, all this only underscores the level of institutional interest in this embryonic innovation. But will it be centralized and decentralized cryptocurrencies that garner adoption in the end? For now, no one is all too sure.

Photo by Anthony Ginsbrook on Unsplash

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Bitcoin (BTC) Advocate Mike Novogratz Still High on Hopium, And That’s Ok

Galaxy Digital’s Novo Still Hyped For Bitcoin Rally

Since making a full-on foray into this space in 2016-2017, Mike Novogratz has quickly become a leading voice in this space. And while the bear market has deterred many investors, Novogratz, a Goldman Sachs partner turned founder of crypto-centric Galaxy Digital, has kept his head rather high. Case in point, as Bitcoin (BTC) fell each and every month, his comments have remained optimistic.

While he has received some flak for his seeming permabullishness, the investor only doubled-down on his buoyant sentiment in a recent tweet.

In response to a “bull” or “bear” Twitter poll from none other than Changpeng Zhao of Binance, Novogratz, who once claimed that upwards of 20% of his net worth was in Ethereum and Bitcoin, responded with neither. The cryptocurrency insider remarked that from his point of view, the market looks “pretty sideways,” but is finding a base for sure.

And with that, he added that more likely than not, BTC’s next move will be one to the upside, rather than a harrowing drop to lower lows as some cynics suggest.

Zhao responded with “good info,” presumably agreeing with the theory that Bitcoin is leaning bullish at current.

Why Some Are (Rightfully) Bullish On BTC

So why is Novo bullish? And more importantly, is his optimism warranted?

Well, as reported by Ethereum World News on previous dates, the Galaxy Digital head’s sentiment has much to do with instituional involvement in this budding space.

In another one of his crypto-related tweets, which are somewhat scant in current conditions, the former Wall Street hotshot explained that there’s tons of institutional “activity under the hood,” adding that investors should “stay the course.” While Novogratz seems to be implying that lots of underlying developments aren’t public knowledge, there is a handful of recent news pieces that show that institutional players are here.

Just last week, Fidelity Investments, a Boston-based, renowned financial services provider, revealed that it had soft-launched its Digital Asset Services division, which is currently offering Bitcoin custody and trade execution for a select list of clients. In an interview with The Block, Tom Jessop, the head of Digital Asset Services, claimed that 20% of 450 institutions it interviewed were interested in cryptocurrencies, like Bitcoin.

The fact that university endowments, like Michigan’s $12 billion fund, and pension plans, like two in Virginia State, U.S., have begun to delve into diverting funds into this market only accentuates that institutions see potential in this asset class.

While this doesn’t mean that cryptocurrencies must move higher, the fact that such heavyweights in the investment realm are throwing some money here should be a promising sign. And it seems like that is exactly what Novogratz is touching on.

Photo by Austin Chan on Unsplash

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Could Bitcoin (BTC) Follow Gold’s Long-Term Chart?

Bitcoin Could Very Well Have Bottomed

A Twitter user going by “CabSav” recently drew attention to something he noticed in regards to gold’s long-term chart and Bitcoin (BTC)’s ongoing market cycle. In the chart seen below, which compares the two commodities over the aforementioned time frames, it becomes immediately apparent that they look somewhat similar.

In gold’s case, it spiked in the late 1970s, amid global turmoil and President Nixon’s decision to pull the U.S. dollar from the Gold Standard, reaching a peak during that time, before falling for years until the 1990s. In the case of Bitcoin, BTC peaked (as you know) at $20,000 in late-2017, falling to $4,000 where it sits just fifteen months later.

While these two cycles may seem nothing alike, both of them contained a similar lull, where the assets’ prices stabilized prior to one final drawdown. Following the last bout of capitulation, gold began to rally, reaching new all-time highs heading into 2008’s Great Recession.

So, if Bitcoin, known to many as digital gold, follows the historical trend established by its tangible counterpart, BTC could begin to rally, well, just about now.

There are some caveats to this analysis though. First off, the scaling of this is different from chart-to-chart. Gold fell from a ~$800 peak to $250, while BTC fell from $20,000 to $3,150. More importantly, is the multiple time frames that the chartist harnessed. Gold’s cycle was over multiple decades, while Bitcoin’s was not much more than a year.

As some have deemed this analysis moot due to the nuances aforementioned, here’s a similar bit done in the same vein.

Will History Rhyme? BTC Could Hit $20,000 By Early-2021

Under the Rhythm Trader handle, prominent trader Alec Ziupsnys and his team recently drew attention to the eerie lines that can be drawn between 2014 to 2016’s market cycle and the one seen today.

Ziupsnys, who has risen to prominence for incessantly touting the merits of Bitcoin over centralized financial institutions, noted that if BTC truly follows a multi-year cycle of boom and busts, there’s a likelihood that the cryptocurrency has already bottomed.

By the same token, Rhythm Trader explains that if a long-term floor has been established and market cycles are followed to a tee, BTC could begin to slowly but consistently move higher, eventually establishing in a new all-time high in early-2021. This would line up with analysis from Cane Island Crypto, per previous reports from Ethereum World News.

Cane Island Crypto, the creator of Network Value to Transactions (NVT), a popular fundamental measure used for cryptocurrency valuation models, recently took to Twitter to explain that when BTC isn’t “manipulated by jack leg exchanges,” it remains in a perfect parabolic trend. Giving his point further credence, he posted a chart, which showed that since BTC started trading at sub-$1, it has held a consistent uptrend, save for a few nuances here and there that came after a significant drawdown.

Extending the trend, the Texas-based analyst determined that if Bitcoin’s implied price for 2019’s end will be $7,800, 2020’s end will be $15,426, and so on and so forth. The Cane Island investment manager noted that if Bitcoin continues to hold this line, by the end of 2022, BTC will be valued at $52,321 and just under double that just 12 months later.

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