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Heavy unwind continues across cryptocurrencies

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Cryptocurrency markets dived following the South Korean currency exchange hack, which has revived concerns on security. BTC/USDT dived below 6500 and the MACD turned negative indicating that the downside move could gain further momentum. Key mid-term support is eyed at 6000, if broken should increase the bears’ appetite for a further decline toward 5000. Resistance is eyed at 7375/7450 area, including the 38.2% retracement on May – June decline, the 200-dma and last week’s resistance.

ETH/USDT slipped below the 500-support on the back of the broad-based sell-off in cryptocurrency markets. Decent sell orders are sitting at 500, adding an additional downside pressure to the market. Recovery attempts remain weak; buyers are no where to be found below 550 (weekly pivot).

Despite poor sentiment, Ether is doing well from a fundamental point of view. Ether’s market volume is expanding steadily. Lately, the number of Ethers in circulation surpassed 100 million coins.

Bitcoin Cash has also been hit by a wave of sell-off, after the S. Korean crypto-exchange hack weigh on the sector-appetite. BCH/USDT slipped below the 1000 level. The fading positive momentum hints at a building case for a further decline toward the 800 level. The key resistance to the actual bearish trend stands at 1190 , the 38.2% retracement on May – June decline and the 50-dma. Intermediate resistance is eyed at 1005, weekly pivot.

Fundamentally, Bitcoin Cash’s larger capacity crunch is expected to bring the network close to Visa and MasterCard scale, according to developer Amaury Séchet. Bitcoin Cash holds ground near the 200-dma against Bitcoin.

LTC/USDT trades with limited enthusiasm, with 100-support out of the way following the broad-based sell-off across the crypto-markets. The weekly pivot has retreated from 113 to 110. Relatively low volatility has prevented Litecoin from breaking important technical levels over the weekend, but the breach of the 100-support could increase the volatility in the coming days.

Does Swiss Sovereign Money initiative weigh on the sentiment?

The Swiss initiative to give the Swiss National Bank (SNB) the authority to be the sole money creator has been rejected with 75% on Sunday.

Although the Swiss vote did not target the cryptocurrencies, there are speculations that the sharp rejection of the Sovereign Money initiative may have explained a part of the debasement across the cryptomarkets during the weekend, as there is one important parallel between the sovereign money initiative and the creation of central bank cryptocurrencies: the reserve ratio.

In fact, the early examination of the possibility for using the blockchain technology for national cryptocurrencies showed that the latter would probably lead to a 100% reserve system, where every unit of cryptocurrency would be backed by the central bank reserves.

The rationale behind the 100% reserve requirement is that, assuming that the cryptocurrency holdings are remunerated with the same rate than the central bank reserves, users would be tempted to hold risk-free, interest-rate-bearing central bank coins instead of deposits with the commercial banks.

Consequently, in a monetary system including a national cryptocurrency, the central bank reserves would represent the entire monetary volume available in the market. This would make the central bank the sole creator of sovereign money, as opposition to the actual system where commercial banks create money by lending most of the available volume to other institutions and users, while keeping only the minimum reserve ratio on their balance sheets.

So, the fact that Switzerland, which has a long banking history and has been home to many innovations in cryptocurrencies, is not ready to change its monetary system in favour of a configuration that could eventually be compatible with the use of official cryptocurrencies, may have deteriorated the sentiment across the market.

Bitcoin traded below 6800 versus the US dollar, while Ethereum tested the $500-support.

Dont be confused: Switzerland hasn’t voted against cryptocurrencies

Although the markets settled parallels between the Swiss initiative and the cryptocurrencies, Swiss citizens have not rejected the idea of using cryptocurrencies. They rejected the idea of a system, where 100% of the monetary volume would be backed by the central bank reserves, because it would have put too much pressure on the central bank, compromise the independency between the monetary and fiscal policies and lead the country to a period of economic uncertainty by adopting a model which is not in line with the rest of the world.

We also remind that there are important differences in terms of functionalities between hypothetical national cryptocurrencies and the existing cryptocurrencies.

It is important to highlight that trading of non-sovereign cryptocurrencies do not interfere with the monetary policy mechanism. At least, not more than the traditional asset classes. In this sense, the cryptocurrencies should be considered as traditional financial instruments such as stocks, and not be confounded with the sovereign money.

Hence, the result of the Swiss vote should not be perceived as a direct negative reaction to the use of cryptocurrencies.

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Crypto Arbitrage Today: XLM, LTC, Dash, TRX, EOS, XMR

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As the overall cryptocurrency bear market continues to rage on in full effect, the moneymaking opportunities involving Bitcoin and altcoins are slowly drying up. There is still money to be made by playing the spreads, but arbitrage opportunities may slowly become a better option at this rate. The following six options are worth keeping in mind throughout today.

Dash (Bittrex / Kraken / HitBTC)

Another day of price gaps between exchanges and another day selling altcoins on HitBTC will yield the best results. In the case of Dash, there are options to buy the altcoin cheap on either Bittrex or Kraken and selling it on HitBTC for profits of 1% up to 2.39%.  These gaps are more than respectable under the current circumstances, especially because all markets are hemorrhaging value right now. That also means the price differences between trading platforms will grow larger over time.

Stellar Lumens (KuCoin / Binance / Sistemkoin)

A fair few different price gaps have opened up where XLM is concerned. Buying on Kraken or Binance and selling on HitBTC can yield a profit of 1.5%. Buying on KuCoin, Kraken, or Binance and selling on Bitexen will yield profits of up to 2%. Buying on Binance and selling on Sistemkoin offers gains of up to 0.9%. All options are well worth looking into for those who want to score some small profits during this next leg of bearish pressure.

Monero (Bittrex / Kraken / HitBTC)

As has been the case more often than not, arbitrage opportunities for both Monero and Dash – and often ZCash – are all identical. They revolve around buying on the same exchanges, selling on the same trading platform, and yielding nearly identical profits. Flipping XMR between Bittrex / Kraken and HitBTC can yield a 2.5% profit when timed correctly. A more than respectable option, given the current circumstances.

Tron (Binance / KuCoin / HitBTC)

Buying any currency that is listed on HitBTC from any platform that isn’t HitBTC will often yield some profits these days, it seems. In the case of Tron, buying TRX rather cheap on either Binance or KuCoin and selling it on HitBTC will yield profits of roughly 1.3%. It is a somewhat small spread first and foremost, but these small profits can all add up to pretty decent gains throughout the day.

EOS (Binance / KuCoin / HitBTC)

It shouldn’t come as much of a surprise to learn the arbitrage opportunity involving EOS is identical to Tron’s. These two coins often follow very similar patterns when it comes to exploiting price gaps, for some unknown reason. In today’s edition, the EOS price on Binance and KuCoin is 1.7% lower compared to HitBTC, which makes for a very easy and straightforward direct arbitrage opportunity.

Litecoin (Bitstamp / Binance / HitBTC)

For those who want to sell Litecoin on HitBTC for a profit, buying on Bitstamp, Binance, Kraken, or KuCoin are all viable options to score profits ranging from 1.2% to 2.5%. When buying on Bitstamp, there is also an option to sell on Cex, Bitfinex, or VeBitcoin for a gain of 1.8% on average. All of these options are rather profitable, although it may take some organizing to explore the best options at any given time.

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Crypto Price Watch: Waves (WAVES) and Maker (MKR) Continue to Showcase Strong Market Support

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At press time, around 85% of the world’s top-30 altcoins lay in the red zone, with premier assets such as Bitcoin Cash (BCH), Stellar (XLM), Bitcoin SV showcasing losses of around 10%, 5% and 6% respectively (over the course of the past 24 hours). However, in the midst of all this chaos, crypto coins such as Maker (MKR), Waves and Ethereum Classic (ETC) have continued to rally strong, with the aforementioned currencies gaining 10%, 3%, and 1.5% respectively.

What’s Causing MKR to Surge?

One of the primary factors that could be behind Maker’s amazing run is the fact that investment fund ‘a16z crypto’ recently bought a whopping 6% of the total MKR token supply for a sum of USD $15 million. As a result of this deal, a16z crypto now owns a tangible stake in the functional decentralized stablecoin (which bytheway makes use of formally verified smart contracts).

At this point, it is also worth mentioning that ‘a16z crypto’ is owned and operated by VC firm ‘Andreessen Horowitz’. The aforementioned deal was facilitated by former federal prosecutor Katie Haun (who is now a partner at a16z).

Additionally, over the course of the past few weeks, there have been other developments that too have spurred the overall adoption of MKR all across the globe. For starters, the dev team at Opera (the web browsing application) announced yesterday that they had created an all-new lightweight crypto wallet solution that allows users to ‘store and transact’ altcoins such as Dai and MKR using a pre-built extension module on the browser

Lastly, MKR is also now live on the Wanchain main net. In regards to the matter, the Maker team released the following tweet:

“The Dai token will utilize Wanchain’s cross-chain functionality allowing for Bitcoin to be exchanged for Dai in a fully decentralized manner”

Can Waves Sustain its Amazing Run?

As many of our readers may already know, over the course of the past month or so, the price of Waves has increased quite significantly (with the currency even breaking into the top-30 a couple of weeks back). However, such pump and dumps are quite ordinary within this volatile market and thus it remains to be seen if Waves can continue its amazing performance in the coming few days and weeks.

One of the most intriguing aspects of the Waves project is the that by next year, the dev team wants to deploy ‘atomic swaps’ into their native operational module. As a result of using this technology, the Waves ecosystem will not only be able to make asset trading much more streamlined but also make digital altcoin transfers cheaper and more secure.

Some of the other key developments in relation to Waves that are worth noting include:

  • Decentralized 2-FA: Once implemented, this technology will help usher in a new era of decentralized security since it allows for the creation of a new layer of internet privacy.
  • Smart assets: In regards to this technology, the Waves team claims that once this feature is live in its final iteration, it will allow devs to create complex smart assets on the Waves blockchain (thus allowing traders to indulge in even more unique financial exchanges).

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Bitcoin Cash Price Heads South of $90 Once Again

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Nothing ever comes easy in the world of cryptocurrency and digital assets. As all markets remain subdued for yet another day, it seems there will not be any real improvements moving forward. For Bitcoin Cash, things have looked bleak all year, and the pressure hasn’t relented just yet. In fact, the value now sits below $90 again following another big loss over the past 24 hours.

Bitcoin Cash Price Dip Is not Over

No one will be really surprised to learn there is yet another deficit for the Bitcoin Cash price as of right now. Not just because all other markets are down as well, but primarily because the recent network protocol upgrade has left a mark on this fork of Bitcoin. As such, there are a lot of investors and speculators who are bailing on anything that isn’t Bitcoin. That is only to be expected, especially when the market remains uber-bearish.

Over the past 24 hours, there has been another near 10% drop for Bitcoin Cash in USD value. Additionally, there is a 7.2% decline in Bitcoin value. It has been a while since BCH dipped below the 0.025 BTC mark, yet it seems that may happen pretty soon at this rate. For now, there is no indication the current market sentiment will turn around, neither for BCH nor any other asset or currency on the market.

The positive news is how there will be yet another Bitcoin Cash Meetup in Pasadena this weekend. Events like these usually help to spread the word about specific projects, as well as get existing investors a bit more excited about what the future may hold. This Meetup will apparently discuss the “exciting roadmap for BCH’. An interesting aspect, as BCH needs a plan for the future.

On the other side of Twitter, there are those who are still pretty annoyed with the Bitcoin Cash “split” that happened about a month ago. Ever since this happened, the value of all cryptocurrencies has decreased significantly. One has to wonder if the Bitcoin SV creation is the only reason for this bear trend, which was in effect well ahead of this network upgrade.

A similar sentiment is echoed by Adhik Joshi, who isn’t too amused by all of these coins deriving value just because they have “Bitcoin” in their name. As such, he dislikes both Bitcoin Cash and Bitcoin SV, a sentiment that has been rather apparent for quite some time now. It will be interesting to see how things play out for all Bitcoin-named currencies over the coming weeks.

Based on the current market conditions, it would appear there is no genuine improvement in sight whatsoever. All markets continue to struggle, despite some positive momentum on the hourly charts. Those gains are incredibly difficult to turn into a sustainable trend these days, which only adds more fuel to the proverbial fire. For now, a Bitcoin Cash price dip to $85 or potentially even lower is not out of the question.

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