 John Bigatton, the only representative for BitConnect Australia, has had his assets frozen by the Australian Securities and Investments Commission (ASIC), functions very similarly to the Securities and Exchange Commission in the United States. Bigatton can’t travel, as part of the ongoing investigation. From Financial Advisor to Alleged Crypto ScammerBigatton is also a director and shareholder in BitConnect International. BitConnect as a whole is under investigation by several international bodies, including the FBI in the US. People like Trevon James, a notorious Bitconnect pumper who remains active on social media promoting and discussing cryptocurrencies, are the target of investigations in the US. Bigatton must divulge all of his assets to Australian federal authorities. This includes his cryptocurrencies and any exchange accounts. As the Sydney Morning Herald wrote: ASIC launched action to freeze Mr Bigatton’s assets in December. On ASIC’s request, Federal Court justice Michael Gleeson issued orders for Mr Bigatton to disclose all bank accounts, “a list of the locations of all cryptocurrencies” held by him and any escrow accounts holding any crytocurrencies. Bigatton has been a registered financial advisor and had multiple affiliations within that industry. The disgrace of the BitConnect collapse puts a damper on his career. According to a class action lawsuit filed in Florida, BitConnect promoters promised investors up to 40% returns. Bigatton is still listed on the “About Us” page of a company called Wealth Synergy. Bigatton’s Wife Still MissingA company called “JB’s Investment Management” is also part of the ASIC movement. Clearly, the JB stands for “John Bigatton.” However, this company has one shareholder and director – Bigatton’s wife, Madeline. As part of their actions against him, ASIC also froze all assets related to JBIM. This is where the story gets interesting. Last March, Madeline Bigatton went missing. Police are currently treating it as a missing person and potential homicide case. Details may emerge in the future which tell a different tale. Possibilities include her potentially absconding with cash assets and installing herself abroad as part of a strategy. Either way, she’s essentially a ghost as far as authorities are concerned. John Bigatton’s not a current suspect in the case. Before her disappearance, Madeline Bigatton went on record as defending her husband. She said: It really cuts me up as John doesn’t have a single bad bone in his body and would only be involved in something if he truly believed it would be a positive impact on people’s lives. In the days after her disappearance, John Bigatton did not seem disturbed. He posted this family selfie on Facebook: Investigations and lawsuits surrounding BitConnect continue. Such things take years, not months. The best outcome would be that Mrs. Bigatton is found alive and well, BitConnect investors are re-compensated, and those who require justice receive it. Reference: https://www.ccn.com/australia-regulators-freezes-assets-of-bitconnect-promoter-john-bigatton/ |
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On January 8, 2009, Satoshi Nakamoto wrote to the Metzdowd cryptography mailing list about the initial release of Bitcoin. It was not his first e-mail on the subject. However, it was the first when he had a working product to show for his idea. With no salutations, the e-mail starts out: Announcing the first release of Bitcoin, a new electronic cash system that uses a peer-to-peer network to prevent double-spending. These features are important to cryptographers, particularly the double-spend problem. Cryptographers still work on the problem today, with Satoshi’s Bitcoin as a key studying point. Satoshi’s solution involves decentralization and consensus rules. Reference: https://www.ccn.com/bitcoin-10-years-ago-satoshi-nakamoto-announced-first-version/ |
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Big Bankers Say Cryptocurrencies Do Not Pose a Threat to Global Financial StabilityThe Financial Stability Board, a global inter-governmental body with over 20 member countries, has ruled that virtual currencies are not a threat to the world economy. The assessment could have an impact on India, whose central bank is part of the board. FSB Says Cryptocurrencies Won’t Affect Global Financial StabilityWhile the crypto winter shows signs of dissipating, 2019 may bring good news for the cryptocurrency ecosystem in India. Highly unfavorable regulations imposed by the Reserve Bank of India, the country’s central bank, have forced many companies in the industry to leave or close down. However, last week’s report from RBI gives new hope to the country’s crypto space, as all signs point to easing its stance on digital assets. According to Quartz, the Financial Stability Board (FSB) has said that virtual currencies are not a threat to the world economy. The board, established in 2009 in the aftermath of the 2008 global financial crisis, includes finance ministers and central bankers from all of the G20 nations. The board’s assessment came to light after RBI quoted the agency in a report released last week, Quartz reported. The FSB’s initial assessment indicated that crypto-assets currently do not pose a risk to global financial stability. India’s Central Bank Could Be Easing Its Stance on CryptocurrenciesEven though these assessments are not legally binding for any of the FSB’s member countries, they are usually adhered to in order to maintain global standards, said Quartz. With that in mind, the report was well received by the crypto community in India, who see it as a ray of hope for the following year. India’s central bank has effectively banned cryptocurrencies, forbidding all banks operating in the country from providing services with companies in the industry. Businesses and traders have been vocal about the need for more regulation in the industry, saying that the lack of transparency when it comes to the legality of the assets opens doors for government abuse. On December 28, 2018, Pon Radhakrishnan, the minister of state for finance, told the lower house of the parliament that the country still hadn’t set a deadline for any norms regarding the industry. However, Nischal Shetty, CEO of WazirX, an Indian cryptocurrency exchange, told Quartz that a lack of regulation isn’t always bad news. “It probably means that the government of India does not see cryptocurrencies as a matter of immediate concern, or something that needs to be regulated right away. This at least means that fears of a ban are not imminent,” he explained. Cryptocurrency enthusiasts may want digital currencies to one day replace fiat. Yet, it seems that the G20 is not too concerned. Perhaps this will give crypto more time to flourish under the existing economic framework. Reference: https://cryptoslate.com/big-bankers-cryptocurrency-not-threat-global-financial-stability/
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 In the past 24 hours, the crypto market added $3 billion to its valuation as Bitcoin (BTC) and Ethereum (ETH) performed relatively well against the U.S. dollar. Several crypto assets in the likes of Litecoin, TRON, and Cardano recorded the largest gains on the day in the range of 6 to 12 percent. Bitcoin Has Needs to Break Above $4,500As the cryptocurrency market avoided a further drop below the $130 billion mark, Bitcoin defended the $3,800 level and stabilized at around $3,850.  According to a technical analyst with an online alias “DonAlt,” for the Bitcoin price to establish a foundation for a strong short-term rally, it will have to break out of major resistance levels above $4,500. The analyst said: Monthly: Still bearish, needs to break above $4,500 to even attempt a bullish recovery. Weekly: Rejected by weekly resistance but finally showing some bull momentum. I’d like to see us start closing above $4,300 before turning bullish. Currently, despite the relatively stable past few weeks demonstrated by the majority of crypto assets, the market still remains down by around 43 percent from November levels. To initiate a strong short-term rally, the cryptocurrency market would have to add more than $80 billion to its valuation, which is certainly possible if the Bitcoin price is able to sustain its momentum throughout the first two quarters of 2019. Analysts generally expect cryptocurrencies to undergo the final phase of the year-long bear market prior to the end of the first quarter of this year as the asset class eyes a gradual recovery in the second quarter. Crypto Still in Early PhaseChris Burniske, a partner at Placeholder VC, said that the cryptocurrency sector is in the installation phase wherein builders are dominating the asset class and the mainstream is not heavily involved. Until the asset class becomes more resilient and robust, it will continue to see a high level of volatility and wild price cycles. He said: But the mainstream? For most, crypto is still not relevant to their life. If they didn’t invest in 2017, they’ve forgotten. If they did, chances are they have a bad taste in their mouth and want to forget. I don’t say this to dishearten us. Quite the opposite. We remain in the installation phase of crypto where the primary users are developers & investors. There is so much left to build and promise to be realized, which is massively exciting. With the emergence of custodial solutions and strictly regulated liquidity providers, the cryptocurrency market may see an inflow of institutional and high profile investors in 2019. However, given the historical tendency of the asset class to initiate rallies based on cycles, some analysts expect cryptocurrencies to undergo a long-lasting consolidation period and demonstrate a high level of stability throughout 2019, as the bear market comes to an end. Reference: https://www.ccn.com/crypto-market-records-decent-gains-but-bitcoin-has-to-rise-above-4500/ |
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 The Bitcoin price dropped almost 80% over the year, dragging the crypto market with it. Short-term bulls believe the market could be ripe for a bullish run. They cite the steady increase in Bitcoin’s trade volumes and transaction rate. Researcher and cryptocurrency analyst Willy Woo believes this might not be the case. In a set of tweets, Woo argues that the on-chain volumes are just too little for a sustained run. He cites volatility as a reason for the increased on-chain volume seen in recent weeks. “The initial volume spike false signaled a faster detox and an earlier end to the bear market, but in fact, it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.” The initial volume spike false signaled a faster detox and an earlier end to the bear market, but in fact, it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun. — Willy Woo (@woonomic) January 5, 2019 Network Value to Transactions Ratio Volumes have reduced to normal amounts. The Network Value to Transactions (NVT) chart being on the high side means the value being transmitted on the network is lower than the valuation of the network. The NVT ratio is an insightful metric created by Woo. It estimates the intrinsic values of digital assets, allowing investors to know when the Bitcoin price is too high or too low. That volume has since subsided. Leaving the NVT chart on the high side of its oscillation around the main move downwards. The key thing here, in my interpretation, is it's on the high side of its band, so I think an up move is limited, bears will win the longer term trade. pic.twitter.com/j5ZYZVJFU8 — Willy Woo (@woonomic) January 5, 2019 Woo had predicted a bearish outlook for bitcoin in November 2018. He argued that the downward pressure on the world’s most popular cryptocurrency could persist till the second half of 2019. He cited data from NVTS, which he said had broken below its support levels. Woo concluded it was unlikely for Bitcoin to break above its 200-Day Moving Average (DMA). At the time, he had said: If price (in the short term) bounces upwards here, which is certainly possible, I think the 200 day moving average is the upper band of the move. This is ~$7k right now. Remember if the price goes above the 200 DMA, in the history of BTCUSD’s 8-year trade history, it’s been a reliable indicator of a bear to bull transitions. It’s too early to transition out of the bear. At press time, Bitcoin trades at $3,845 on Coinbase, up from an intraday high of $3,972. The overall market capitalization stands at $132 billion. It has a lot of support around these levels. As Joseph Young recently wrote: Currently, despite the relatively stable past few weeks demonstrated by the majority of crypto assets, the market still remains down by around 43 percent from November levels. The extreme volatility in the Bitcoin price is both what attracts and repels investors. Willy Woo is often right. However, the market has a way of surprising people. Meanwhile, Chinese analysts predict an extended bear market into 2019. Reference: https://www.ccn.com/bitcoin-price-analyst-willy-woo-says-bears-still-have-the-upper-hand/ |
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 Even the most ardent crypto evangelist must admit that bitcoin appears to have been the worst investment of 2018, at least in pure dollar terms. The cryptocurrency has lost almost 80 percent of its market capitalization since it established an all-time high at around $327.15 billion. The adoption rate and volume have dropped likewise. Organizations that were planning to launch their bitcoin-based services have delayed their projects or scrapped them entirely. As any seasoned trader would say, the bitcoin bubble is bursting — or has burst already. The Anatomy of a Bitcoin Bubble In pure dollar terms, the bitcoin price is on the downside of its largest-ever price bubble. The surprising upturns and downturns of a financial market can confuse onlookers. It eventually is a game of passing sentiments – from one investor to another. If one sells, other buys. But in the event of a crash, when one sells, nobody wants to buy. It starts with a few investors dumping assets at high, then spirals outward. Other investors flock the selling action purely because of panic and price starts plummeting faster. It attracts more selling pressure, leading to fission. What 2018 brought to the bitcoin market was a lot or sellers against limited buyers. In 2017, it was the opposite – more buyers against fewer sellers. The diverse performance of both the financial years, in successive order, shows that investors were purchasing bitcoin on either the speculation of a bull run or to acquire other digital assets that also promised higher returns in less time. ICOs, as they are called, were a phenomenon back in 2017. Ethereum-enabled blockchain projects, claiming to be the next Apple or Microsoft, raised funds after selling their unregistered, unregulated digital assets for top cryptocurrencies like bitcoin. The buy orders, therefore, started piling up, leading the bitcoin’s value to its all-time high at $20,000. The year 2018 was the time of delivery, but no ICO turned up for the show. According to a research paper published by the Carroll School of Management at Boston College, almost half of the blockchain projects were found to be failing within four months of their introduction. “What we find is that once you go beyond three months, at most six months, they don’t outperform other cryptocurrencies,” researcher Leonard Kostovetsky had told Bloomberg. “The strongest return is actually in the first month.” The biggest takeaway is that that these blockchain projects had an ample amount of bitcoin tokens with them. So, they could have likely dumped their bitcoin reserves for fiat to either run away or to pay for their operational costs. Hence, the bubble burst. Digital Currency Group founder Barry Silbert supported the theory during an interview to CNBC. Galaxy Digital Holdings’ chief Mike Novogratz also told Bloomberg that ICO market is pretty much dead after “a lot of hype,” and that bitcoin will emerge out of its depression down the road. Bitcoin: the Long Road to Recovery On the logarithmic charts, bitcoin’s decline looks less concerning. The bursting of a bubble does not necessarily mean the death of the underlying asset. The financial industry is full of such examples where traditional metrics defined the overvaluation of markets followed by a long-term bearish correction. The dot-com bubble, for instance, comes close to resembling the crypto bubble. In the late 1990s, the introduction of the internet prompted a massive wave of speculation in dot-com companies. The Nasdaq Composite Index, which listed most of these tech startups, jumped from under 500 at the beginning of the 90s to establish highs over 5,000 in March 2000. The index plunged by 80 percent after that but recovered back by 2015 to set new highs. The crypto market has crashed similarly after most of its startups failed after raising millions of dollars in over-hyped investments. Bitcoin, as many believe, is the survivor of a market-wide wipe off. Lou Kerner, a crypto venture capitalist, called bitcoin the Amazon of crypto, stating that the digital currency would survive the crypto bubble burst similarly to how Amazon did after the dot-com crash. “If you go back to the internet bubble, which is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years,” he told CNBC in November. Crypto has been so weak because most of it there’s no underlying value outside of confidence. [But] bitcoin, itself, we think is going to replace gold eventually. Gold is an $8 trillion thing. The market is already preparing a welcome for bitcoin as it transits from retail to more serious institutions in 2019. Bakkt, a bitcoin futures platform backed by Intercontinental Exchange, will be launched at the end of January. The US Securities and Exchange Commission (SEC) would also provide its final take on the VanEck’s bitcoin ETF which, if approved, could open the gates of multi-billion dollars worth of investments into the bitcoin space. Bitcoin Dominance Rising Bitcoin’s market share climbed, even as its price declined. Bitcoin dominance refers to the market share of bitcoin against the rest of the crypto market. Ever since the crash started taking place, investors constantly flocked back towards bitcoin. Since November, bitcoin has been occupying around 50 percent of the entire crypto market, reflecting investors’ improved sentiment. Cypherpunk Jameson Lopp, in his latest report, also found that Bitcoin is growing on almost the metrics other than economics. In 2018, the crypto market led by the digital currency raised $3.12 billion in investment, four times more than in 2017; the academic and user interest in it grew twofold; the coin’s development repository saw more commits than any other crypto project; and its Lightning Network solution gained momentum all across the community. “Yes, bitcoin fared poorly [concerning the] exchange rate in 2018,” said Lopp. “But by almost any other metric the system is improving and growing. Those of us who are dedicated to this system shall continue to BUILD and add value; we have no control over the market, but I expect that it will catch up to us sooner or later.” With strong fundamentals behind it, bitcoin would most likely correct, but it would be more mature than the earlier corrections. Rich investors, who are already hit by a US stock market crash, would be more inclined to move their value towards safe havens like the dollar, the yen, and gold. Bitcoin, being a relatively new phenomenon, could catch their eyes once its infrastructure will be ready to handle more volume and liquidity. Reference: https://www.ccn.com/op-ed-why-the-bitcoin-bubble-burst-is-good-for-crypto/ |
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The US & China Trade War is Nothing, Worry About Business and Bank Failures in 2019 An economics professor at Long Island University has warned that the greatest headwinds the global economy will face in 2019 will be massive business failures and not the US-China trade war. According to Panos Mourdoukoutas, Professor at the Department of Economics chair at Long Island University’s LIU Post campus, the trade war between China and the United States was a major issue in 2018 due to the fact that it raised fears of heightened nationalism and protectionist policies across the globe. However, this will change in 2019 with global corporations and financial markets expected to pressurize the two countries into inking a deal. ‘Big Progress being made’ – Donald Trump on the US-China Trade WarAs earlier reported by CCN, a trade agreement is expected by March 1, 2019. After holding a telephone conversation with his Chinese counterpart, US President Donald Trump signaled over the weekend that there is a reason to be hopeful for a deal to be reached. Just had a long and very good call with President Xi of China. Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made! — Donald J. Trump (@realDonaldTrump) December 29, 2018 In Mourdoukoutas’ view, the massive business failures in 2019 will be a result of easy money drying up following the increase of interest rates by central banks worldwide. The explanation is simple and straightforward. Easy money acted as a tsunami, lifting up both the demand and the supply side of the global economy to higher levels. On the demand side, it encouraged consumers to resume taking on more debt… On the supply side, it encouraged corporations and entrepreneurs to pursue low-profit businesses opportunities. Noting that bank failures are likely to be experienced in emerging markets, Mourdoukoutas pointed out that the household debt to GDP ratio of China rose from 18% ten years ago to over 50% at present time (China’s corporate debt is largely unknown but may be a bigger problem than the household debt).  China’s Household Debt to GDP Ration (Courtesy of KOYFIN) Less Debt, Less ConsumptionWith the raising of interest rates by central banks and the FED, consumers are expected to reduce their uptake of debt. This will result in less spending. Reduced spending by consumers will see low-profit businesses shutting down and the era of a slower growth in the world economy will arrive. Mourdoukoutas wrote that this will be like 2008/2009 all over again when the same scenario played out in the United States: That’s what happened in 2008-9, shortly after the Federal Reserve raise interest rates and the US economy slid into a recession. US Business failures soared to 6,000 per quarter, while bank failures reached 157. Other factors that are likely to weigh in on global economic prospects include slower growth in China and Japan, the world’s second and third biggest economies respectively. The pessimism occasioned by the ‘rise of anti-globalization ideologies’ all over the world, will be another concern. Reference: https://www.ccn.com/the-us-china-trade-war-is-nothing-worry-about-business-and-bank-failures-in-2019/
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Thanks Satoshi Nakamoto! BitMEX Advertises on Front Page of The Times 10 Years Later
 BitMEX has taken an advertisement out on the front page of January 3rd, 2019 edition of The Times thanking Satoshi Nakamoto for Bitcoin, ten years to the day after Satoshi Nakamoto quoted the front page of the same publication in Bitcoin’s first block (#0). Tweeting from their BitMEX Research account, they said: Happy 10th Birthday Bitcoin! pic.twitter.com/DpOPjojsOd — BitMEX Research (@BitMEXResearch) January 2, 2019 The Bitcoin Genesis BlockThe global financial crisis of the early 21st century is famously a key motivating factor in the development of Bitcoin by Satoshi Nakamoto. Famously, when the Bitcoin genesis block was mined on January 3rd 2009, a bit of text was embedded into its coinbase: The Times 03/Jan/2009 Chancellor on brink of second bailout for bank Today at 18:15 UTC time or 1:15PM EST will mark the exact 10th birthday of the Bitcoin blockchain. The address which received the first mining reward, and therefore the first 50 bitcoins, has received an additional 16+ BTC over time. In Bitcoin and most Satoshi-codebase cryptocurrencies, the recipient or founder cannot spend the first mining reward due to the way the code was originally written. Thus even if Satoshi were to emerge and want to spend these coins, he would not be able to do so. At time of writing, it had received a microtransaction with “1HappyTenthBirthdayBitcoinxvYeM9e” as a change address. The actual sender is probably the owner of 3H7itJUKrZ4bMagoArQRgWVjKGRdCqz6hp, which received the majority of the change outputs from the transaction (around $400 at time of writing).  “In this sense, it’s more typical of a precious metal. Instead of the supply changing to keep the value the same, the supply is predetermined and the value changes.” –Satoshi Nakamoto Satoshi Nakamoto’s Deflationary Bitcoin As An Answer to Fiat Money“It’s very attractive to the libertarian viewpoint if we can explain it properly. I’m better with code than with words though,” Satoshi Nakamoto said on November 13th, 2008, discussing his Bitcoin whitepaper. In a later e-mail, after the blockchain was up and running, Satoshi explained: You could say coins are issued by the majority. They are issued in a limited, predetermined amount. […] Indeed there is nobody to act as central bank or federal reserve to adjust the money supply as the population of users grows. That would have required a trusted party to determine the value, because I don’t know a way for software to know the real world value of things. If there was some clever way, or if we wanted to trust someone to actively manage the money supply to peg it to something, the rules could have been programmed for that. In this sense, it’s more typical of a precious metal. Instead of the supply changing to keep the value the same, the supply is predetermined and the value changes. As the number of users grows, the value per coin increases. It has the potential for a positive feedback loop; as users increase, the value goes up, which could attract more users to take advantage of the increasing value. Bitcoin has been both embraced and rejected by Austrian economists of various stripes, for varying reasons. Either way, it certainly fits the model of a deflationary currency and solves several of the problems of central banks and fiat currencies. However, there is some legitimate argument that perhaps Satoshi was only using a means to prove the date the blockchain was actually founded. There is some degree of speculation on all this. Indeed, block #1 was not mined until six days later, leading many to believe that the first block was saved from a test-run of sorts. Anyway you look at it, no one could have predicted that the Bitcoin experiment would have transformed into a $50 billion market force in 10 short years. Reference: https://www.ccn.com/bitmex-thanks-satoshi-nakamoto-front-page-times-10-years-after-bitcoin-genesis-block/
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 TheDarkOverlord, the hacking group that got popular for releasing episodes of the hit TV series Orange is the New Black, has surfaced again, this time they claim to have stolen information related to the 9/11 attack on the World Trade Center back in 2001, per reports on Motherboard. According to an update posted on Twitter on New Year’s Eve, the group claims to have stolen thousands of documents from insurance firms such as Lloyds of London, Silverstein Properties, and Hiscox Syndicates. They are now threatening to publish the contents of the files which it claims would “provide answers” to some of the conspiracy theories concerning the attack if their ransom demands aren’t met. We'll be providing many answers about 9.11 conspiracies through our 18.000 secret documents leak from @HiscoxComms and others #thedarkoverlord #911hacked #hacking #leak #cybercrime — thedarkoverlord (@tdo_h4ck3rs) December 31, 2018 A spokesperson for the Hiscox Group gave confirmation of the hack, stating that the hackers had been able to gain access to the confidential files of a law firm that advised the company and had most likely gotten litigation files that were related to the terrorist attack. Speaking with Motherboard, the spokesperson said: The law firm’s systems are not connected to Hiscox’s IT infrastructure and Hiscox’s own systems were unaffected by this incident. One of the cases the law firm handled for Hiscox and other insurers related to litigation arising from the events of 9/11, and we believe that information relating to this was stolen during that breach. According to the report, the group had posted letters and email correspondence online, mentioning various law firms, the Federal Aviation Administration and the Transport Security Administration. They released a link to an archived file containing the documents they reportedly stole. Although it’s still encrypted, they have given notice of their intention to release the appropriate decryption keys unless ransom payment is made in Bitcoin. TheDarkOverlord is also blackmailing individuals and companies whose details are included in the documents, demanding that they make the required payments if they would like to exclude their names from the documents. The Motherboard article quoted a demand letter sent by the hackers, where they threatened to bring down multiple companies. If you continue to fail us, we’ll escalate these releases by releasing the keys, each time a Layer is opened, a new wave of liability will fall upon you. Hiscox has however noted that publishing insurance-related information isn’t going to yield much Reference: https://www.ccn.com/hacker-group-pay-bitcoin-ransom-or-well-release-9-11-papers/ |
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Bitcoin Bull Mike Novogratz Boosts Stake in Galaxy Digital to 79%, Causing Stock to Soar
 Bitcoin bull Mike Novogratz increased his stake in Galaxy Digital Holdings — the crypto merchant bank he founded — to 79.3%, after acquiring an additional 2.7% of its outstanding shares. Novogratz previously held a 76.6% ownership stake. The former hedge fund manager acquired 7,500,768 ordinary shares for C$7.4 million (or US$5.4 million), according to a January 2 statement. The Goldman Sachs alum now holds 221 million shares of Galaxy Digital, making him the New York bank’s single-largest shareholder. The news caused a massive intra-day spike in Galaxy Digital’s stock price.  Galaxy Digital stock price Galaxy Digital Holdings is not listed on a US stock exchange because an initial public offering would require at least two years of audited financial statements. However, the firm has been trading on Canada’s TSX Venture Exchange since August 2018. The Toronto-based TSX-V lists companies that are too small to be traded on the main Toronto Stock Exchange. Galaxy Is Losing an Average of $15 Million a DayAs CCN reported, Galaxy Digital had a catastrophic 2018. The crypto bank lost $136 million during the first nine months of 2018 due to losing positions in ether, XRP, and bitcoin during a protracted bear market. Despite the relentless Crypto Winter, Novogratz predicts that bitcoin prices will soar to record highs in 2019 fueled by a spike in institutional investments. In response to skeptics who are gleefully cheering the market slump, Novogratz underscored that early setbacks are to be expected before a new technology achieves mainstream acceptance. “Revolutions don’t happen overnight,” he quipped. ‘Revolutions Don’t Happen Overnight’: Why Mike Novogratz isn’t Giving up on Bitcoin https://t.co/mouYzxgN3V — CCN.com (@CryptoCoinsNews) December 11, 2018 To prove that he’s putting his money where his mouth is, Novogratz has expanded his shop, even as crypto prices tumbled. In November 2018, Novogratz hired another Goldman Sachs banker to oversee Galaxy’s advisory-services arm. Novogratz, a former hedge fund manager, was himself once a partner at Goldman Sachs. Since raising $250 million in February 2018 to finance Galaxy Digital, Novogratz has wooed a number of top Goldman Sachs executives away from the prestigious investment bank.
Bitcoin Can Replace Gold as Store of Value: VCMike Novogratz isn’t the only market heavyweight who’s betting big on crypto. As CCN reported, venture capitalist Lou Kerner says bitcoin is on track to replace gold as the dominant store of value. Lerner claims that naysayers who have lost faith in the market because of its current downturn are missing the forest for the trees. Bitcoin on Track to Replace Gold as Dominant Store of Value: Crypto VC https://t.co/z1a8opYY44 — CCN.com (@CryptoCoinsNews) December 31, 2018 Kerner, the founding partner of New York-based CryptoOracle, says the truly disruptive impact of bitcoin won’t be fully realized until years from now. “We really believe that in 20 years, bitcoin will have created trillions of dollars in value similar to how the Internet has,” Kerner said. “We’re at the very beginning.”
Expert: Crypto is Where Internet Was In 1992Lou Kerner echoed the sentiments of Argentine tech entrepreneur Wences Casares, the founder of bitcoin wallet Xapo. Casares, a serial entrepreneur who’s on the board of PayPal, says cryptocurrencies today are where the Internet was in 1992 — at its beginning stages. Casares says it could take 7 to 20 years to realize the full impact that crypto will have to transform the world, as CCN reported. Casares was dubbed bitcoin’s “Patient Zero” for his role in boosting crypto’s profile in Silicon Valley, where Xapo is based. In recent years, Casares has persuaded his fellow Silicon Valley millionaires and billionaires to buy bitcoin by convincing them that crypto is the currency of the future. This is a sentiment echoed by Twitter billionaire Jack Dorsey, the CEO of Square. Reference: https://www.ccn.com/bitcoin-bull-mike-novogratz-boosts-stake-in-galaxy-digital-to-79-causing-stock-to-soar/
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 Years of over-engineering and ethical decay has made Bitcoin a garbage network, says a Fortune 500 software developer. Bryce Weiner, known for being part of controversial altcoin projects and their subsequent failures, took a potshot at the world’s leading digital currency protocol without elaborating on it. He later admitted that he was acting humorous while responding to a personal remark made on him earlier. Saying then that Bitcoin is indeed not a garbage network, but it still has a lot of other issues. “It has neither earned nor deserves the right to be a global reserve currency,” Weiner claimed. “The only thing democratic about Bitcoin is that we can fork the source code and do it over again.” The comments rattled many pro-Bitcoiners with some of them stating that Weiner was merely acting like an internet troll who shows no substantial evidence or reasoning behind his claims. A response went ahead and called Wiener a crypto-scammer whose opinion did not mean anything. You are literally one of the top 5 scammers in crypto. Your opinion means literally nothing to anyone in this space. All who listen to you deserve what's coming to them. — Vortex (@theonevortex) December 30, 2018 Weiner responded by sourcing contents from mainstream media, particularly the one explaining how Wall Street was shelving its plans to introduce bitcoin products. It was though not in line with Weiner’s accusations that were more focused on Bitcoin’s potential as an alternative global reserve. Checkmate. https://t.co/yHZVx9ZwOw — Bryce Weiner (@BryceWeiner) December 30, 2018 Trolling?Weiner, who currently serves as a software architecture to Tao, a blockchain-based solution for the music industry, has been part of a total of six altcoin projects that are now defunct. His last project, dubbed as GamerHolicCoin, drew hostile reactions from the BitcoinCoinTalk community, especially after the project’s central node stopped accepting connections, causing the coin to fork into 5-6 different versions. In a controversial decision, the GameHolicCoin team switched from the main chain to the new chain with the most extended block output. Before that, Weiner was an integral part of Razorcoin, Dirac, NautilusCoin, PetroDollar, and Amcoin. All of these projects failed to build a survivable product and died. That, however, didn’t deter the entrepreneur from offering his expertise in the developments of other projects. He continues to be an avid Twitterati and Redditor. He has 68 software repositories to his Github page with over 328 contributions. Meanwhile, he keeps publishing his anti-Bitcoin opinions every once a while. In one of his more detailed criticism at Reddit, Weiner recommended an Ethereum-style hard fork for Bitcoin while saying that the Core team lacked a concrete voting mechanism.  Source: Reddit Bitcoin is trading at $3,791, down 2.39% at press time on a 24-hour-adjusted timeframe. Reference: https://www.ccn.com/bitcoin-is-a-garbage-network-fortune-500-software-developer/ |
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The bitcoin price on Wednesday showed minor upside movements as it maintained the gains made during yesterday’s session. Bitcoin Price Technical AnalysisThe BTC/USD exchange rate posted as much as 1.5 percent in gains during the first half of the trading session. The pair notably eyed a rally towards $4,000 but corrected ahead of establishing the said upside target, eventually falling to $3,843, its value at the time of writing.  BITCOIN 1D CHART | SOURCE: COINBASE, TRADINGVIEW.COM The price action also confirmed a firm price action similar to what market had encountered during the November 24-December 3 trading session. The higher low of November 27 at $3,567 is now serving as support to the interim consolidation range, while $4,000 continues to be a psychological resistance. There are notably enough opportunities for day traders provide by a decent gap between the two parameters. However, in the long-term, the bitcoin market is still inside a giant descending channel, now nearing the channel line for a potential breakdown/pullback scenario. The bitcoin price is also noticing a strong resistance sentiment near its 50-period moving average depicted in sky blue. During the consolidation period above $6,000, the same moving average had capped every upside attempt. As of now, the market has seen the 50-period rejecting one rally attempt, and bitcoin is again closing in towards it to pursue a potential interim breakout action towards the main trendline above. The RSI on daily charts continues to face resistance inside 55-58 area, indicating the presence of strong bearish sentiment near these levels. The momentum indicator hasn’t entered its overbought zone since July 24, 2018. The early US session reports are indicating a stronger dollar for the rest of the day on weak Chinese manufacturing data. The greenback is posing itself as a safe haven, and a high yield would likely boost its demand in the market. Bitcoin has a little opportunity in the macroeconomic circle as long as fiats like the dollar and yen are fulfilling the demand. Intraday Targets BITCOIN 1H CHART | SOURCE: COINBASE, TRADINGVIEW.COM For the rest of the US trading session, we are hoping that bitcoin will continue to consolidate between the trading range defined by $3,885 as resistance and $3,567 as support. The decent gap between the said parameters initially allows us to apply our intrarange strategy, i.e., entering a long towards resistance on a bounce from support and a short towards support on a pullback from resistance. A risk management strategy, meanwhile, should have us maintain a stop loss order just 1-pip in the opposite direction of our order. In case the bitcoin price breaks the resistance level, we will switch to our breakout strategy and enter a long position towards $4,000. A stop loss order maintained just 1-pip below the entry point will minimize our losses should the upside bias get rejected once again. Similarly, a break below support would have us open a short position towards $3,437, our downside target, while maintaining a stop loss order just 1-pip above the entry point. Reference: https://www.ccn.com/bitcoin-price-closing-in-on-resistance-at-4000-will-the-rally-hold/ |
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 After ten years in existence, Bitcoin has officially made the radar of multi-millionaire motivational speaker Tony Robbins. “Team Tony,” presumably employees of Robbins, recently posted an article entitled “What You Need to Know About Bitcoin” on TonyRobbins.com which Robbins promptly tweeted about: What the heck is bitcoin, and how does it work? Find out here. https://t.co/KkenntACZd — Tony Robbins (@TonyRobbins) December 30, 2018 Robbins, most famous for firewalking during his motivational speaking engagements and selling his “Personal Power” self-help series to professionals looking to maximize their potential, has in later years taken to giving advice about finances and wealth management. The article reads, in part: Bitcoin is decentralized. No single bank, government, company or individual owns the network or has control over it. This means that your accounts can never be frozen, a government cannot devalue the currency, it can be used in every country, and, more ominously, because of the anonymous nature of bitcoin, the technically savvy can avoid taxation and use bitcoin as payment for any kind of illegal good or service. While this is the first article to appear on Robbins’ website about Bitcoin, last year he described it as a gamble. He told CNBC: I think [bitcoin] is very iffy. I don’t have a clue. I look at that as it’s like going to Vegas. He went on to say that “it’s just for fun” and he knows he “could lose.” He prefers index funds for investments, at least as of that time. Tony Robbins shares the mindset you need to invest in bitcoin from CNBC.Tony Robbins: The Next Bitcoin Jesus?We can speculate that the posting of an article on his website regarding Bitcoin is likely dipping his toes in the water. If the article garners a lot of attention and it seems like something his client base would be interested in, it might not be long before Robbins is the next Bitcoin evangelist, educating the masses and teaching people how not to get rekt. Of course, Bitcoin already has its share of evangelists and professional speakers. Andreas Antonopoulos primarily travels the world addressing audiences on the nature and importance of Bitcoin, and his book Mastering Bitcoin is considered one of the most important books on the subject. Before joining the Big Block crusade and fomenting a fork of the Bitcoin network into Bitcoin Cash, Roger Ver’s evangelism was so fervent and frequent that he was dubbed “Bitcoin Jesus” within and without the community. One thing is for certain: Robbins has a wide reach. If he were suddenly to become a Bitcoin proponent during the next bull run, it could feasibly take him from millionaire to billionaire, regardless of how his own crypto portfolio worked out. Reference: https://www.ccn.com/tony-robbins-is-now-a-bitcoin-expert/ |
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Stock markets worldwide, including Dow Jones, Nasdaq and the S&P 500, have posted disappointing yearly returns, with many indexes being compared to their performance during the financial crisis. The S&P 500 is down 6.2% for 2018, while the DOW Jones Industrial Average is down 5.6% for 2018. These numbers, compared to the financial crisis, where the indexes posted yearly losses of 38.5% and 33.8% are a new low given the general bull sentiment surrounding markets going into 2018. While the S&P 500 was up 9% during the first three quarters of 2018, it has marked a new milestone of ending the year in the negative digits at -6.2%. This is the first time the S&P closed negative digits on the yearly after rising for the first three quarters. Similarly, the NASDAQ composite fell 3.9% for 2018. The main catalyst for this drop is said to be the sell-off that began in October. There have been widespread concerns of an economic slowdown, along with fears that the Fed is making incorrect decisions with respect to monetary policy. S&P 500 Down Year Over YearThe S&P 500 was on a great run throughout 2017, opening at around 2240 points and ending the year at 2674 points.  S&P 500 2017 performance However, 2018 brought with it a lot of volatility, sharp trend reversals along with increased political tensions. The trade war between US and China has resulted in fluctuating stock markets throughout 2018. However, recent developments indicate that the disputes might soon be resolved, as early as March 2019. This might be a good fundamental catalyst for markets worldwide. A trade agreement being chalked out might come into effect in March 2019.  S&P 500 2018 Performance Markets in London experienced a similar downturn, with the FTSE 100 index posting a yearly drawdown of 12%. This contrast to the record high of 7859 points that the Index posted earlier this May. There are several reasons the FTSE dropped severely during 2019. To begin with, trade tensions between US and China have affected stock markets globally. Secondly, the uncertainty surrounding Brexit and concerns regarding US interest rates provoked a selloff within markets in UK. AsiaChinese stock markets took the worst hit, with the CSI 300 benchmark dropping nearly 27% at market close on December 27th. The primary cause for this drop is said to be the ongoing trade dispute with the Unites States. Hong Kong’s HSI Index lost 13.6% this year, its worst since 2011 when it lost 19.97% Similarly, Japan’s Nikkei 225 Index lost 12.1% during 2018, its worst since the financial crisis. Reference: https://www.ccn.com/sp-500-and-stock-markets-worldwide-close-out-worst-year-since-2008/ |
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 The stock market crash in 2018 shredded billions off the wealthiest Americans. A staggering $76 billion were wiped off their balance sheets. Still, new billionaires were added to the infamous Forbes list, while some industry investors saw their fortune increase and decrease, at the same time, per a Bloomberg report. Fifteen individuals were added to the Forbes 400 list of wealthiest Americans this year. Twelve of those were self-made entrepreneurs, who have built their fortunes in areas such as e-commerce, transportation, and digital currencies (first time). At the same time, the Bloomberg Billionaire Index saw 31 additions in total, even though $500 billion in wealth was wiped out due to global trade tensions and an unpredictable President, Donald Trump. So who won big and who saw the worst losses in 2018? Clear Winner of 2018: Jeff BezosJeff Bezos, CEO of Amazon Inc. and the wealthiest individual on the planet, tops the list of winners of 2018.  Bezos solidified his place at the top this year, with an increase of $24 billion to his wealth. Jeff Bezos claimed the Iron Throne as the wealthiest man in the world. While he seemed to be engaged in a wrestle for the title with Microsoft owner Bill Gates in 2017, Bezos solidified his place at the top this year. His fortune increased with $26 billion in 2018. The 2018 Amazon rally gave him a net worth of $125 billion and made Bezos the biggest gainer for the second consecutive year.  Jeff Bezos gained the most wealth in 2018. Tim Sweeney, the Creator of FortniteFortnite is developed by Epic Games which is a privately held company where Tencent Holdings Limited owns 40%.  Tim Sweeney, Wikimedia Tim Sweeney, the founder of Epic Games that has made Fortnite, was another big winner of 2018. The video game became an instant phenomenon in 2018 breaking multiple records. The popularity of the video game increased Tim Sweeney’s wealth with $3.6 billion in 2018. The game might have gotten its fair share of criticism, but for Tim Sweeney 2018 has been an incredible booster. Sweeney’s company, the privately held Epic Games, was effectively taken over by Tencent in 2012 for $330 million. Tencent Holdings Limited now owns 40% of the company. 2018 Biggest Loser: Mark Zuckerberg and Facebook Inc.The last 12 months have been disastrous for Facebook Inc. and Mark Zuckerberg. The public became aware of multiple data breaches, and the Facebook share price has plummeted.  Zuckerberg saw his net worth drop by $20 billion. From the Cambridge Analytica privacy scandal to the departure of WhatsApp founder Jan Koum and its disappointing second-quarter earnings. The 34-year-old Zuckerberg saw his net worth drop by $20.7 billion, leaving him with a net worth of $52 billion. Another Tech Loser: Evan Spiegel and Snapchat (Snap Inc.)Evan Spiegel, CEO of Snap Inc., has experienced the worst year since Snapchat became a public company trading under Snap Inc.  By the time of publishing, Snap had recovered to about $5.50. Snapchat’s losses for 2018 were affected by the earnings of Snap Inc. with the company’s stock selling for an all-time low of $4.99 on Friday. Fear of Snapchat’s ability to compete with platforms like Facebook, Twitter, and Instagram has created uncertainty for the technology company. Celebrities and users have heavily criticized Snapchat over issues such as its redesign and selection of ads. Reference: https://www.ccn.com/2018-stock-market-crash-shreds-76-billion-off-americas-wealthiest/ |
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Breaking: Bakkt Raises $182 Million, What it Means for the State of Bitcoin Industry Bakkt, a cryptocurrency exchange and liquidity provider created by the New York Stock Exchange’s parent company ICE has raised $182.5 million from a group of high profile investors and venture capital firms. On December 31, on New Year’s Eve, Bakkt CEO Kelly Loeffler announced that Boston Consulting Group, CMT Digital, Eagle Seven, Galaxy Digital, Goldfinch Partners, Alan Howard, Horizons Ventures, Intercontinental Exchange, Microsoft’s venture capital arm, M12, Pantera Capital, PayU, the fintech arm of Naspers, and Protocol Ventures invested in the company, sharing the firm’s vision of driving institutional access for digital assets and providing support for merchants. Loeffler said: Our work today is centered on driving institutional access for digital assets, along with merchant and consumer uses, and we’re already expanding on this vision, collaborating with great companies like Starbucks in these efforts. Not All About the Bitcoin PriceAs of December 31, the Bitcoin price remains down 80 percent from its all-time high at $19,500 and is en route to ending the year in the midst of a steep sell-off and a deep bear market. But, according to Bakkt CEO Kelly Loeffler, 2018 has been the most active year for the Bitcoin and cryptocurrency industry, as it saw significant progress in strengthening the infrastructure supporting the asset class. In December alone, Bakkt secured a $182 million investment from major venture capital and technology conglomerates, and ErisX, another U.S.-based cryptocurrency futures market, received $27.5 million from Nasdaq and Fidelity.  Bakkt is a portfolio company of Intercontinental Exchange (ICE), which also owns the New York Stock Exchange While the value of crypto assets have dropped substantially since early 2018, Loffler emphasized that the price does not reflect the accomplishments of companies within the cryptocurrency ecosystem and the milestones the industry has achieved throughout the past 12 months. She noted: Notably, 2018 was the most active year for crypto in its brief ten-year history. This was evidenced by rising investment in distributed ledger technology and digital assets, as well as by blockchain network metrics such as daily bitcoin transaction value and active addresses. Yet, these milestones tend to be overshadowed by the more narrow focus on bitcoin’s price, which has been seen by some, as a proxy for the potential of the technology. As the institutional infrastructure for Bitcoin improves and the overall liquidity of crypto assets increases, the sector may see the inflow of more capital from institutional investors and high profile funds in the long run. Several companies including Bakkt are actively working on various solutions to address the lack of merchant adoption of digital assets with partners in the likes of Starbucks and Microsoft. Expect a Bakkt DelaySome reports have suggested that the partial shutdown of the U.S. government could result in the delay of the Bakkt Bitcoin futures market launch on January 24. In an official statement, Bakkt stated that the firm would provide an update in early 2019 on the intricacies of the firm’s plans in launching its Bitcoin futures market. “Following consultation with the Commodity Futures Trading Commission, ICE Futures U.S., Inc. expects to provide an updated launch timeline in early 2019, for the trading, clearing and warehousing of the Bakkt Bitcoin (USD) Daily Futures Contract,” the firm said. Reference: https://www.ccn.com/breaking-bakkt-raises-182-million-what-it-means-for-the-state-of-bitcoin-industry/
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Bitcoin on Track to Replace Gold as Dominant Store of Value: Crypto VC
 Venture capitalist Lou Kerner says bitcoin is well on its way to replacing gold as the dominant store of value, noting that its market cap has already surpassed that of silver. “What [bitcoin] has evolved into is a store of value,” Kerner told Bloomberg. “Today, the main store of value is gold. It’s an $8 trillion [market]. Bitcoin today is around $60 billion, so it has an opportunity to actually replace gold as the dominant store of value.” Kerner doubled-down on his remarks from August 2018, when he predicted that BTC would supplant gold as the most trusted store of value. Crypto Will be ‘Bigger Than the Internet’Kerner, the founding partner of New York-based CryptoOracle, said despite the current bear market, crypto would be a far more disruptive technology than the Internet. “The disruption from that is gonna be bigger than the disruption that we saw from the Internet,” Kerner predicted. “Bitcoin is kind of the early leader, like the Yahoo of its day. And while it’s a massive thing, it’s not the thing [right now].” But in 20 years, BTC and crypto will be off-the-charts, Kerner claimed. “We really believe that in 20 years, bitcoin will have created trillions of dollars in value similar to how the Internet has,” he said. “We’re at the very beginning today.” When asked why the bitcoin price has plunged from its record high of $19,500 last December, Kerner said it’s because the market got ahead of itself due to unchecked capitalism. Kerner said virtual currencies and blockchain would eventually prove that they are far more revolutionary than first imagined. “There’s something called Amara’s Law, which is that the impact of all great technological changes is overestimated in the short run, but underestimated in the long run,” he said. Basically, Kerner is saying that the true impact of crypto and blockchain won’t be known until 20 years into the future. Reference: https://www.ccn.com/bitcoin-on-track-to-replace-gold-as-dominant-store-of-value-crypto-vc/
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Bitcoin to End 2018 With 80% Drop, What Investors Should Expect in 2019Following one of its biggest bull rallies in history to $19,500, Bitcoin (BTC) is set to end 2018 with an 80 percent drop from its all-time high. As Bitcoin enters 2019 with a bear market status having suffered a steep sell-off in December, what can investors expect in the first two quarters of 2019? Several Catalysts on the Horizon For BitcoinIn the first quarter of next year, Bakkt, a cryptocurrency liquidity provider and exchange operated by the New York Stock Exchange’s parent company ICE, is set to launch a Bitcoin futures market. In late 2017, CBOE and CME, two major futures market operators in the U.S., launched strictly regulated Bitcoin futures markets. But, they both are cash-settled markets that have minimal impact on the short-term price trend of digital assets.  BTC/USD | 2018 Performance According to Jake Chervinsky, a government enforcement defense and securities litigation attorney at Kobre & Kim, Bakkt is a physically settled Bitcoin market that guarantees the delivery of BTC to its investors. The Bitcoin-settled market of Bakkt could have a significant impact on the price of the dominant cryptocurrency as it will have an effect on the circulating supply of BTC. He explained: Also noteworthy is the fact that Bakkt will custody and deliver real bitcoin. That means institutional inflows would reduce supply and thus (maybe) increase price too. This is different from other regulated futures markets like CME and CBOE, which only deal in cash-settled futures. The potential effect on the Bitcoin price by Bakkt wholly depends on the demand from U.S. customers the company sees in the first several months of 2019. Although Bakkt has already become a major catalyst for the recovery of BTC in the minds of many investors, the demand for Bakkt still remains uncertain, and it is possible that due to the recent sell-off, the market does not see a level of interest it initially expected. It is still too early to determine whether Bakkt could contribute to a meaningful increase in the price of BTC in the mid-term. But, the launch of the first physically-settled Bitcoin futures market in the U.S. is positive for the sector and for the institutionalization of crypto assets as an asset class. Nasdaq is also set to launch a Bitcoin futures market following the launch of Bakkt, around the time the U.S. Securities and Exchange Commission (SEC) will announce its decision on the VanEck-SolidX Bitcoin exchange-traded fund (ETF) filing. Will an ETF Happen?As pro-crypto SEC Commissioner Hester Peirce said, the approval of a Bitcoin ETF could take days or years, and investors should not wait on it. “Don’t hold your breath. I do caution people to not live or die on when a crypto or bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto]. I am not as charming as some other people,” she said. Regardless of the ETF, the price of BTC will continue to move based on a cycle. In 2018, the industry has seen some of the most positive developments in recent years, yet it had minimal impact on the price of the asset. Historically, the asset has taken about 62 weeks on average to recover from a major correction. Analysts generally expect Bitcoin to undergo a gradual recovery by the end of the second quarter of 2019. Reference: https://www.ccn.com/bitcoin-to-end-2018-with-80-drop-what-investors-should-expect-in-2019/
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BlockTower Capital, a hedge fund which manages more than $130 million in client assets, made a $1 million bet last year that Bitcoin’s price would go above $50,000 by the end of 2018. The Hedge Fund is expected to lose over $1 million in options by the end of the week. A Bitcoin Bet Gone WrongOne of the largest crypto hedge funds in the world, which manages hundreds of millions of dollars in client assets, has made a shocking bet that it’s bound to lose by the end of the year. BlockTower Capital’s co-founder and current chief information officer, Ari Paul, made a bet on behalf of the company on December 20, 2017, specifying that Bitcoin would be worth more than $50,000 by the end of 2018. According to Business Insider, the bet would have enabled Paul, who spent just under $1 million on call options, to buy 275 bitcoins at $50,000 apiece any time before December 28, 2018. In total, if the options were exercised BlockTower could have spent up to $13.8 million. However, with Bitcoin currently trading at around $3,800, it’s safe to say that BlockTower Capital won’t exercise those options. At the time, the company stood by their decision saying it was a way to “risk a little to win a lot.” During an interview with CNBC on December 26, 2017, Paul said that “it was not a bet that something will happen, but a bet that something could happen,” and that he liked the odds and payout of the move. Fast forward to December 2018, Paul told Business Insider that they “were not betting on or expecting” a Bitcoin rally. He claimed that the options were a way for the fund to maintain exposure to an extreme rally while reducing overall crypto exposure. Perhaps Paul’s bet falls into the list of other lackluster 2018 predictions. Reference: https://cryptoslate.com/blocktower-capital-lose-1-million-betting-bitcoin-would-hit-50000/ |
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 Art Cashin, managing director of trading floor operations for investment firm UBS Financial Services, has firmly blamed United States President Donald Trump for the stock market volatility that caused the recent Dow Jones Industrial Average sell-off. Veteran stock market trader Cashin blamed the latest government shutdown and Trump’s attacks on the Federal Reserve for the Dow Jones sell-off, telling CNBC: I think we lost maybe a couple of thousand points that we didn’t need to because of the disruptions that we saw. Cashin told CNBC that “more quiet” from Washington could have allowed stock trading averages to recover, as expected end-of-year selling came to an end. The Federal Reserve is Normalizing Rates Dow Jones Industrial Average | Source: TradingView The Federal Reserve is bearing the brunt of Trump‘s critiques over economic threats as it continues to raise interest rates to more normal levels. Lower interest rates enjoyed by the US and around the globe over the last decade were a direct response to the threat of major economic depression in the aftermath of the banking crisis. They formed part of a strategy of quantitative easing (QE) which is now morphing into “normalization” as central banks cease boosting economies to let them operate under their own natural mechanisms. Higher interest rates combined with trade woes and stock market fluctuations are fueling recession fears. More hikes from the Federal Reserve may cut into Trump’s high hopes for the US economy. Trump believes the Federal Reserve is raising interest rates too quickly. Cashin said: The president doesn’t seem to realize that the more he talks about what the Fed should do, the more that inhibits the Fed from doing it because they don’t want to look subservient to what’s going on. So that’s a bit of a problem. Trading expert Jack Bouroudjian, chief economist and co-founder of the Universal Compute Exchange, agreed with Cashin, predicting the stock market could form a V-shaped bottom — meaning that stocks are mispriced at the top of selling. Bouroudjian said: Taking a little froth out of the market…is probably the best and healthiest thing we could possibly ask for. The Dow ended Friday trading 0.33% down and up slightly across the entire trading week despite massive mid-week plunges which followed impressive, albeit uneven, rallies. Reference: https://www.ccn.com/ubs-director-blames-trump-white-house-for-dow-jones-sell-off/ |
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