Bitcoin Off-Chain Metrics To Improve Your Trading

They say it’s not what you know but who you know. Of course, when trading Bitcoin, what you know is kinda important too.


Following on from our rundown of on-chain metrics, here are a bunch of useful off-chain indicators that no trader should be without. And possibly a few more on-chain metrics too.

Again, these are compiled from a guide by crypto-analyst, Adam Taché.

Mayer Multiple

The ‘Mayer Multiple’ is one of the most popular metrics and derives from the current price divided by the 200-day moving average (200-MA). The average value is 1.39, and historically, when it becomes equal to or greater than 2.4 it will retrace to under 1.5.

Spent Output Profit Ratio

The ‘Spent Output Profit Ratio’ (SOPR) tracks profits or losses made on a spent output and can be used as a marker for local tops and bottoms.

Put simply, SOPR is the selling price divided by the price paid and oscillates around a value of one. In a bear market, values above 1 are rejected, as holders desperately try to sell for a profit, causing the supply to ramp up and a price drop. Conversely, in a bull market, values below 1 are rejected, because people are reluctant to sell at a loss, constricting supply.

Market Value Derived Metrics

‘MVRV Ratio’ is a measure of Market Cap/Value divided by Realised Cap/Value. Historically, an MVRV of less than 1 indicates capitulation, and a value of greater than 3.7 signals an over-valuation.

‘MVRV z-score’ is the number of Standard Deviations between the Market Value and Realised Value. Or how strongly detached from Realised Value the Market Value is. It is calculated by subtracting the RV from the MV and dividing by the Standard Deviation and tends to go parabolic just before a prolonged downturn.

‘MVDV Ratio’ is the Market Value divided by the Delta Cap/Value. Bearish divergences between MVDV and price at local tops have indicated global tops, and value of below one has signaled global bottoms.

HODL Waves

A ‘HODL Wave’ occurs due to new investors buying into Bitcoin during a rally, then holding through the downturn into the next market cycle. They measure the age distribution of Bitcoin’s UTXO set and can be used to detect HODLer accumulation and capitulation. Though not particularly useful for predicting future moves, they do make for a nice colorful chart.

Dormancy Derived Metrics

There are a number of market-health indicators based on dormancy.

The ‘Average Dormancy’ is defined as the ratio between CoinDays Destroyed (CDD) and Volume (per day). While measuring the time UTXOs remain dormant, it signals accumulation and distribution and tracks spending behavior.

‘Supply-Adjusted Dormancy’ is Average Dormancy divided by Supply, accounting for a larger potential CDD, the longer that Bitcoin exists.

‘DUA Ratio’ brings UTXO age into the equation using HODL Waves, whilst ‘Dormancy Flow’ compares price to spending behavior on an annualized basis. Dormancy Flow is the Market Cap divided by the 365-day MA of Dormancy multiplied by Price.

Median Spent Output Lifespan

‘Median Spent Output Lifespan’ (MSOL) measures the median lifespan in days for each spent output. It can signal long-term holders decreasing positions and be used to determine the supply of circulating coins recently for sale.

Network Momentum

‘Network Momentum’ is a measure of daily transaction value in BTC, thus eliminating noise from price. It has been used as a leading indicator for market price and cycle.

Puell Multiple

Finally, the ‘Puell Multiple’ is the ratio of the Daily Coin Issuance (in USD) divided by the 365-day Moving Average of this value. However, after next year’s halving, fees will make up a greater proportion of the miner’s reward. At this point, it may be better to use Mining Revenue (in USD), rather than Coin Issuance.

The Puell Multiple provides a health-indicator for network security and can gauge the market from a mining profitability/compulsory sellers perspective.

 

Of course, no list of Bitcoin metrics can ever be complete, as analysts devise new indicators all the time. But including some (or all) of these into research prior to trading could improve results dramatically.

Think you are ready to beat the Bitcoin market with these tools? Let us know your thoughts in the comments below. 


Images courtesy of Shutterstock, Unchained Capital

 

Top 3 Ways to Keep Your Bitcoin Safe in 2019

Bitcoin Crypto Bitcoin

Top 3 Ways to Keep Your Bitcoin Safe in 2019


With the price of Bitcoin on a tearing run right now, it’s more important than ever to think about the long-term security of your funds – if you haven’t done so already. Here’s a list of the best ways to keep your crypto safe.


Enough with entrusting your private keys to a cryptocurrency exchange or an insecure hot wallet. If you own any amount of Bitcoin, it’s gaining in value. That will make naturally make it a bigger target for the hackers. 

With more than $1.2 billion being stolen from crypto exchange hacks and fraud in the first quarter of 2019 alone, it’s time to wake up and smell the coffee before it’s too late. Check out these top three ways to store your Bitcoin safely.

1. Use a Hardware Wallet

Stop relying on the convenience of exchanges to transact. Hardware crypto wallets have come a long way since the start. Versions like the Ledger Nano X, for example, sync with your smartphone and mean you can transact on the go without the need for a computer.

store bitcoin with ledger nano x

It doesn’t compromise your security since your private keys and seed never leave your device. Bluetooth only transports public data. 

Trezor doesn’t have that function but its touch screen provides a simpler user experience. If you want a wallet fit for a rockstar, check out the chunky GRAY Trezor Corazon to make you feel like a million bucks–while making sure your fortune is safe from opportune hackers.

Store your Bitcoin with the Gray Trezor Corazon

2. Go Completely Mobile

Another alternative if you don’t like the idea of investing in a hardware wallet is to go completely mobile. Try downloading a Bitcoin wallet like Mycelium, which is available for both iOS and Android.

Mycelium

The UX on this wallet isn’t great. But still less of a headache than using a Ledger or Trezor and worth it for the additional security over an exchange.

Note, Mycelium isn’t a cold wallet. However, it is known for its security, and you get to keep your Bitcoin in your pocket at all times.

3. Try Timelocking Your Bitcoin

Not for the beginner, there is a series of steps that you have to take if you want to timelock your Bitcoin. There are also some major advantages (and disadvantages) of doing this.

Think of a timelock as one of those savings accounts or trust funds that you can’t touch until a certain date. You basically set up a smart contract that prevents you from spending your Bitcoin.

The advantages of this are that your Bitcoin is safely locked into a smart contract which no one can access without the private keys.

It also stops you from selling your Bitcoin when the market rallies, as Lucas Nuzzi mentioned below: 

Obviously, though, this could also be a disadvantage if you seriously need to access your BTC and want to cash out.

Take the Time to Store Your Bitcoin Safely

Yes, it’s easier to keep your BTC on an exchange if you’re not a computer person and find the whole wallet experience nauseating. But you’ll get a far sicker feeling if a hacker seizes your funds or the exchange goes belly up.

There are other solutions that let you earn interest rather than just HODLing your BTC. But be sure to check them out thoroughly and be prepared to store your Bitcoin with a third party.

What do you make of this list? Let us know your thoughts in the comment section below!


Images courtesy of Shutterstock.

Bitcoin Likely to be Overbought by July 13, Says Analyst

Bitcoin Bitcoin

Bitcoin Likely to be Overbought by July 13, Says Analyst


Analyst and Economist, Alex Krüger, has predicted that Bitcoin could become overbought within the next 18 days, according to the Keltner channel chart indicator.


Keltner Channel Shows Bitcoin in Overbought Position

Analyst Alex Krüger tweeted on Monday (June 24, 2019) that bitcoin could be overbought over the next 18 days, based on an analysis of the Keltner Channel indicator – which provides information of price/trend breakouts and if an asset is overbought or oversold.

Is overbought? Since 2014, has traded fully outside the Keltner Channel (2.5/20) with RSI >90 on NINE occasions. ▷ 6/9 times retraced to the open of preceding day in under 20 days (avg 10d). ▷ 1/9 times it took 79 days. ▷ 2/9 times it never retraced (May 2017).

According to Krüger, bitcoin began trading fully outside the Keltner Channel on Sunday (June 23), making it the 10th time in BTC’s history since 2014. On seven out of the nine previous occasions, BTC experienced a price retrace.

The market analyst also revealed that over the 20 days following the time when BTC enters this overbought position, bitcoin prices declined by an average of 12.5%. Going by this trend, we could expect to see BTC fall just under $10k by July 13.

A decline in mid-July to August would be in keeping with historical trends that show the latter part of Summer as having the least annualized monthly returns for bitcoin.

Third Attempt at $11,500

Bitcoin is currently having its third upward trend towards the mid-$11k region and beyond. The top-ranked cryptocurrency has faced resistance at this level on the two previous occasions and this third run presents a temporary moment of truth.

Breaking above $11,500 could pave the way for an unimpeded run towards the $13,000 mark. However, failing to cross this resistant point will most likely trigger a “mini dump” back to the previous support level somewhere in the $10,200 to $10,300 price levels.

If Keltner Channel indicator is indeed accurate and BTC is currently overbought, then the bullish advanced might be a little fatigued at the current price. There also the matter of a second CME gap which if closed might cause a price drop back to the same $10k price mark.

All of these possible price retrace scenarios only constitute a temporary blip in short-term performance. The overarching bullish narrative is still in effect for bitcoin.

Google Trends for BTC

Data from Google Trends shows that search interest for bitcoin is at a similar level to the start of the FOMO-driven hype market of September and October 2017. This could mean a rekindling of retail interest in the top-ranked crypto given the 205% increase since the start of 2019.

Do you think bitcoin will break the mid-$11k resistance at the third time of asking? Let us know in the comments below.


Images via Twitter @krugermacro and Google Trends.

Bitcoin Bull Market Leaves Cannabis Traders Green With Envy

Bitcoin Cannabis News

Bitcoin Bull Market Leaves Cannabis Traders Green With Envy


Bitcoin’s latest moonshot to a new 15-month high has not just left the gold market in its dust, but also the nascent cannabis market. 

Bitcoin Vs. Cannabis: The Grass Is Always Greener

Data comparing Bitcoin price 00 with the global cannabis market, confirms a trend which will likely bring enthusiasts back down to Earth. The emerging cannabis market, which Bloomberg described as ‘the next big thing‘ earlier this year, has started wilting over the last quarter while the price of BTC keeps getting higher.

This week, the trend came to the attention of Todd Harrison, the CIO and founding partner of CB1 Capital. CB1 Capital is an investment advisory company which focuses exclusively on cannabinoid-based solutions.

Despite being an obvious bull for medical cannabis and the associated relaxation of regulations surrounding the industry, even Harrison appeared keen to highlight Bitcoin’s attractive performance compared to the BIGLCBCP index. 

As of June 25, the latter was trailing at $177, having reached $230 in March. At the same time, BTC/USD continues to expand, as Bitcoinist reported, reaching 15-month highs over $11,350 Monday. 

“May was a sloppy month for the cannabis complex, as evidenced by the 15% decline in the BI Global Cannabis Competitive Peers Index,” Harrison wrote about the current cannabis price in a blog post published June 18. 

“We have been told that there was forced selling, or liquidation, in the cannabis space during the month, which squares with the price action.”

Not everyone agrees. In February, as Bitcoin still languished around $4000, consultancy CEO Carol Pepper told CNBC that cannabis was the “next huge growth area” and that this growth would not mirror the boom-and-bust cycle of Bitcoin markets.

“If you want to be in something that’s very growthy, and actually legitimate as it is legalized and controlled properly, I think this is the place to go,” she said.

That prophecy had in fact already come true half a year previously.

Opportunities Sprouting

Against a background of increasing regulatory tolerance of cannabis, it should be recalled that the industry has traditionally had a close relationship with cryptocurrency. 

That setup is continuing this year, Bitcoinist noting in May that a Hong Kong investment firm had pivoted to the cannabis market as a way of diversifying its crypto-focused portfolio.

“Both blockchain and industrial cannabis are the future, and both are embraced by the younger generation,” co-chairman Yao Yongjie commented to the press at the time. 

As Harrison meanwhile noted, the plant-based market remains in its very infancy, even compared with the ten-year-old Bitcoin. There may thus well be room for the kind of exponential growth long-time HODLers have witnessed since 2009; as Bitcoinist pointed out, since the first prices went live, BTC/USD has delivered returns in excess of 700,000,000%.


What do you think about Bitcoin against cannabis markets? Let us know in the comments below!


Images via Twitter @todd_harrison, Shutterstock

Bitcoin On-Chain Metrics That Every Trader Should Know

Bitcoin Bitcoin

Bitcoin On-Chain Metrics That Every Trader Should Know


Making money with Bitcoin is easy, right? Just HODL for long enough and reap the rewards.. But what if you want to do more?


Trading requires a greater understanding of the market and its various metrics, but sometimes analysts just seem to be speaking an alien language.

So how are you supposed to know your CV-DD from your NVT Cap? Thankfully, crypto-analyst Adam Taché compiled some handy guides, which we’ll go through in this, and its companion off-chain metrics article.

Realised Cap/Price

The ‘Realised Cap’ metric addresses deficiencies in using pure market cap when dealing with Bitcoin and cryptocurrencies. Market cap, formed as the product of current price * current supply, does not take into account lost, unclaimed, or unspendable coins.

Instead, Realised Cap sums the value of each coin the last time it moved. Therefore, lost coins and those which have been out of circulation for some time are not valued at current prices. Of course, one issue is that this cannot differentiate between truly lost coins and those in deep cold storage. Although we can consider these long-term hodl’ed coins as equivalent to lost until they move (are found).

The ‘Realised Price’ is a volume-weighted average price (VWAP), which approximates the average price paid for circulating BTC.

Balanced Price and Bitcoin Days Destroyed

To understand ‘Balanced Price’ (and the following Cumulative Value-Days Destroyed), we need to understand the concept of ‘CoinDays Destroyed‘.

CoinDays Destroyed (CDD) is a volume metric which gives more weight to coins based on how long they have been held. A CoinDay is created when 1 bitcoin is not moved for one day. If that 1 BTC is finally moved after 100 days, then it has built up 100 CoinDays and the transaction will result in 100 CDD. If it is then immediately moved again, that will cause zero additional CoinDays Destroyed,

Using this we can calculate Transferred Price, which uses supply to bring CDD into the Bitcoin price domain and can be considered as a moving average of price spent. It takes the summation of all CDD multiplied by price (at time of destruction), and divides this by the market age (in days) multiplied by current supply.

The Balanced Price is the Realised Price (avg. paid) minus the Transferred Price (avg. spent), and aims to be a ‘fair’ valuation measure. During bear markets, when bitcoin price falls to this level, it is a good indication that full-detox has been achieved. i.e. the market is about to turn.

Cumulative Value-Days Destroyed

‘Cumulative Value-days Destroyed’ (CVDD) is another approach to bring CDD into the price domain. It is calculated in exactly the same way as Transferred Price, but with one slight difference. Instead of using supply (which increases over time) as a divisor, it uses the constant value of 6,000,000. This is an arbitrary figure used to calibrate the chart, and would be different if the market age (time since genesis block) was measured in hours or blocks rather than days.

With this calibration, CVDD hits historical price bottoms in 2011, 2015, and 2018, with incredible accuracy.

Both CVDD and Balanced Price are explained in more detail here.

Delta Cap

‘Delta Cap’ is another Bitcoin metric devised to catch market bottoms and predict new bull runs. It is calculated as the Realised Cap minus the Average Cap (simple moving average to date).

Top Cap

‘Top Cap’ metric is a simple metric comprising the Average Cap multiplied by 35. It has been very efficient at hitting global market ‘tops’ to date, and when used in conjunction with CVDD provides upper and lower bands for price action.

Thermo Cap

‘Thermo Cap’ is used as a proxy to measure inflow of capital into Bitcoin. It is the sum of coinbase tx rewards at the price that they were mined, and represents the cumulative security spend by the network.

NVT Ratio

Finally, the ‘Network Value to Transactions (NVT) Ratio’ is a measure of Bitcoin’s monetary velocity. It is determined as the market cap (network value) divided by the daily USD value transmitted through the blockchain.

As Bitcoin is a store of value network, volume represents investor flows. As such NVT Ratio is roughly analogous to the Price to Earnings (P/E) Ratio used in equity markets. It can give a good indication of whether Bitcoin is under or over-valued.

Charting Metrics

Many of these metrics are experimental, and although they seem to accurately chart past performance, cannot be relied on for future predictions. However, they are certainly a useful tool for analysing the market and its cycles.

All of these metrics can be charted and studied on the Woobull Charts website from Woonomics.

The next article in this series will look at some of the off-chain indicators used by analysts, which are largely derived from these on-chain valuation models.

Feel smarter already? Let us know what you think about these metrics in the comment section below!


Images courtesy of Twitter @Adam_Tache, Shutterstock

Grayscale Bitcoin Trust (GBTC) Trading at 40 Percent Premium; ‘Big Money Coming In’

Bitcoin bull gains News

Grayscale Bitcoin Trust (GBTC) Trading at 40 Percent Premium; ‘Big Money Coming In’


The Grayscale Bitcoin Trust (GBTC) is trading at a premium, which works out to a Bitcoin price of almost $15,000 – indicating that further gains are imminent. 


‘Big Money Coming In’ Via GBTC

Data from Grayscale’s recent performance placed it trading at $14.64 as of June 24. At these levels, investors are working with a Bitcoin price of $14,640. 

The premium, which amounts to around 30 percent, is not new but has increased significantly as Bitcoin cements its position in the latest three-month-long bull run. 

At one point, GBTC traded above $15 at a 40 percent premium, leading to suggestions that substantial upward market moves were still on the horizon.

“Big money coming in!” one popular online trader summarized on Monday linking to the data.

Proof of FOMO?

As Bitcoinist reported, GBTC has become a yardstick for institutional investor appetite as Bitcoin gains. 

Its premium has buoyed analysts looking for the cryptocurrency’s definitive return to form after the 2018 bear market, correlating to a popular theory that institutions will ultimately ‘FOMO’ into Bitcoin. 

This ‘fear of missing out’ should have begun as BTC/USD hit $10,000 last week, according to sources including Fundstrat Global Advisors’ Tom Lee. 

In the event, Bitcoin retook the $11,000 support just 24 hours afterward, something it has since broadly retained as the price hit a 15-month high above $11,350 on Tuesday.

Silbert Proclaims Crypto Spring

While the talk is now turning to concerns that, Bitcoin could be overbought under current conditions, Barry Silbert, founder of Grayscale, remains upbeat about the near-term options. 

“($20,000) is a magnet,” he summarized about Bitcoin’s price potential on social media before the weekend. 

Nevertheless, he agreed with Lee’s recent analysis suggesting BTC/USD could be making its most decisive move for a while. 

“This week’s strong move on (cryptocurrency) and especially (Bitcoin) is a reminder $BTC historically generates its annual performance in 10 days. Miss those 10 days and average return is -25%,” he wrote. 

In an interview with Bloomberg meanwhile, Silbert remained decisively bullish. 

“We’ve been through quite a rollercoaster; the price has gone down 80 percent four times, but in the past four times, the price has hit record highs afterwards,” he told the network June 12.

“If you look at the price chart for Bitcoin, it looks like perhaps we’re coming out of the crypto winter, and that we’ve entered the crypto spring.”


What do you think about GBTC’s price? Let us know in the comments below!


Images courtesy of Shutterstock,  @crypto_goat_

Predictable Bitcoin Bubble Rants Begin Again as BTC Booms

Bitcoin bubble Bitcoin

Predictable Bitcoin Bubble Rants Begin Again as BTC Booms


Nothing grabs the attention more than an epic price pump of any asset. Bitcoin is no different; however the groups of those against it, probably because they don’t comprehend it, are starting to emerge from their caves hollering about bubbles once again.


Bitcoin Is A Bubble … Again

We heard it all before in 2017; ‘Bitcoin is a bubble that will burst’. Granted, BTC did fall over 80% the following year but has since recovered back to just 45% in the past few months. Since its bottom of $3,200 in mid-December, bitcoin has made over 250% to current levels and does not look like stopping there.

Naturally, its energetic performance over the past few months has riled the rafts of those that still hold the opinion that BTC is a speculative bubble. American libertarian, stockbroker, financial commentator, and radio personality, Peter Schiff, is one of that ilk. Schiff is bullish on gold but frequently bashes its digital equivalent, Bitcoin.

In a recent tweet, Schiff once again said that Bitcoin was a bubble and that this is a ‘sucker’s rally’.

“I’ve witnessed several asset bubbles over the years and those trapped inside also say foolish things to rationalize the price rise. But none more foolish than what’s being said to rationalize the Bitcoin bubble.  The bigger the bubble, the more foolish one must be not to see it!”

The outspoken chairman of commodity investment firm, SchiffGold, echoes the sentiments of many aging American traditionalists that only believe in their own investments. If Bitcoin is a bubble then gold must be considered one also since it is still down around 25% from its peak in 2011.

The crypto community did not take this lying down and the responses came thick and fast. One commented “My dude, you have been saying this since BTC was $16. Not $1,600 or $16,000, but literally $16.” Another chimed in with “I’m sure you remember the gold bubble back in 2011 right? That one still hasn’t recovered 8 years later.”

The most pertinent, however, was an infographic depicting the ‘bubble’ in action, time and time again plotted on a logarithmic chart.

bitcoin

Another renowned Bitcoin basher and perma-bear, Nouriel Roubini, has also been uncharacteristically quiet regarding BTC recently as it surged back above five figures. There are many that simply do not understand Bitcoin and they tend to be in the latter years of their lives and bought up on traditional investment vehicles such as stock markets, real estate or commodities.

It can be said that BTC is pretty speculative at the moment as it has yet to be fully embraced as a global currency. Considering that is a spec compared to the multi-trillion dollar gold or stock markets, and is even smaller than some US tech companies in terms of market cap, Bitcoin still has a long way to go.

Is Bitcoin in a bubble due to its latest rally? Let us know in the comments below.


Images courtesy of Shutterstock, @PeterSchiff, @ChartsBtc

Bitcoin Price Surge Dampens Altcoin Rally Hopes

There has been no Monday correction for Bitcoin this week as the top cryptocurrency has held on to its weekend gains. With market dominance, a touch under 60% many traders and crypto aficionados are beginning to wonder if the altcoins will ever recover.


Bitcoin Price Holding Steady Above $11000

Bitcoin is back at its 2019 high of just over $11,200 at the moment. It has spent most of the past day consolidating around $10,800 but started heading north again during the morning’s Asian trading session. Since the same time, last week BTC has made a solid 20% and has shown no signs of slowing down.

crypto

Bitcoin price 1 hour candles – Tradingview.com

There is a lot of resistance in the $11,700 region but that has not thwarted Bitcoin previously. A correction right now would be healthy though as parabolic charts are not. That thirty percent plus chart move that many have speculated about would drop BTC from its current high back to around $7,800. At this level or lower, there is likely to be a lot more accumulation before the next leg up.

Remember 2017? When Altseason?

Many traders on Crypto Twitter are starting to express concern about the performance, or lack of, for most of the altcoins. While some such as Litecoin have done extremely well the majority still appear to be frozen over from crypto winter. An earlier tweet by blockchain entrepreneur ‘The Crypto King’ served as a reminder from 2017.

“All the focus is on BTC… did everyone forget 2017?
BTC pumps. BTC Stagnates.
Alts go absolutely bananas.
Altseason 2.0 Tik Tok.”

This sentiment has been echoed by crypto trader ‘Moon Overlord’ who has also looked back at patterns in late 2017 when altseason took off.

“The altcoin sentiment feels eerily similar to mid to late 2017. Bitcoin just went up and up and $ALTS got smoked. Then all of the sudden WHAM, a few alts lead the way and they started going 50, 100X out of nowhere. I suspect this time will be no different, you won’t get a warning,”

It is true that many of the top performing altcoins from 2017 have done very little in 2019. Big pump coins such as Cardano and Stellar have now been dumped out of the top ten and are still down from ATH by 91% and 85% respectively. Other previously high performing altcoins such as IOTA, NEO, OmiseGO, ICON, Qtum, Lisk, VeChain and 0x are still battered and bruised showing very little sign of recovery.

Many have speculated that a lot of 2017’s tokens will fade away and be usurped by new offerings this year but at the moment Bitcoin is still dominating markets and an altcoin season has yet to begin.

Will Bitcoin give altcoins a chance to move higher? Let us know what you think in the comments below. 


 

‘Craig Wright is F***ed’ Says NY Lawyer

Craig Wright News

‘Craig Wright is F***ed’ Says NY Lawyer


According to a lawyer holding licenses in New York, Hong Kong, and Taiwan, the self-proclaimed Satoshi Nakamoto, Craig Wright, is in serious legal trouble in his case against Ira Kleiman. 


The Craig Wright Lawsuit 

Back in February 2018, the brother of the now deceased David Kleiman filed a lawsuit against the self-proclaimed Satoshi Nakamoto and Bitcoin SV proponent, Craig Wright.

Ira Kleiman alleges that Wright stole a sum of bitcoins that the latter mined with his brother during the earliest years of Bitcoin.

Commenting on the matter is Daniel Kelman, a lawyer licensed in New York, a foreign-registered lawyer in Taiwan, and a solicitor licensed in Hong Kong, who claims to have been in private practice focused on Bitcoin and cryptocurrency-related matters since 2013.

Apparently, in the above lawsuit, the court had ordered Craig Wright to produce a list of the bitcoin addresses where David Kleiman and himself held the cryptocurrency. Wright argued that this is impossible as those bitcoins were placed into a “blind trust” back in 2011 and that he doesn’t have access to it. That’s because the trust requires him to contact a number of different trustees who are unreachable for various reasons.

Not So Fast

The court, however, has issued an order on June 14th which indicates that it believes that Craig Wright does, indeed, have the power to contact these trustees and, hence, access the trust. It had ordered a hearing scheduled for June 28th as to whether or not Wright should be held in contempt of court for actually failing to produce the addresses in question.

Needless to say, contempt of court is a very powerful remedy which allows judges to ensure that litigants comply with the court’s rules.

The lawyer argues that it’s Kleiman’s strategy to expose that Wright is not trustworthy, which is also something that puts his claims of being Satoshi Nakamoto to the test.

However, Kelman also says that the real strategy that is pursued by Kleiman is to seek a confidential settlement from Wright for an amount less than that sought in court, leveraging their ability to expose him as a fraud.

In essence, pay me or get exposed. – Says the lawyer.

Would It Help Peter McCormack?

Naturally, the outcome of the case between Kleiman and Wright could impact a more recent trial between Bitcoin SV’s proponent and popular cryptocurrency Youtuber Peter McCormack.

The latter was recently served with a GBP100,000 libel claim from Craig Wright. McCormack has since decided to pursue the matter in court and going all the way against CSW.

However, both cases are held under different jurisdictions as Wright vs McCormack is in the UK, while the other case is in the US.

Regardless, if Kleiman fails to reach a settlement (or if that’s not his strategy) and goes on to expose Wright’s trustworthiness, this could probably have serious consequences on his further trials where he claims that he’s the real Satoshi Nakamoto.

What do you think of CSW’s claims that he’s Satoshi Nakamoto? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock, CryptoNewz.com

Want To Make It Big in the Next Bitcoin Rally? Use These 3 Tools

automated bitcoin trading Trading

Want To Make It Big in the Next Bitcoin Rally? Use These 3 Tools


Bitcoin currently dominates the cryptocurrency market. Its price movements often determine the price direction of altcoins. A rally in Bitcoin’s price often tends to lift prices of many altcoins, while a BTC price drop usually causes the altcoin market to bleed. Occasionally, you might see some coins move contrary to the direction of Bitcoin, but they are often the exception and not the rule.


Bitcoin entered 2019 at a depressing $3740 price point as weakness from the 2018 crypto winter continued to linger. However, the top cryptocurrency has managed to deliver an incredible 174% price gain to a high of $11,127 last week. More so, the market capitalization of the entire cryptocurrency market has climbed 161% from $125 billion to $327 billion YTD.

The last few weeks have been significant, especially w.r.t to Bitcoin’s YTD performance. BTC was trading in the $7700 to $8300 range for majority of June’s first two weeks. However, from June 12 Bitcoin began rallying massively. It registered an outstanding 43% gain and broke out above the $10,000 psychological resistance until it hit a 15-month high of $11,246.

The recent bullish trend in Bitcoin has been attributed to a number of factors:

The role of technical analysis in cryptocurrency trading

While BTC scored 174% YTD gains, the chart below says a few things. It says that the number of Bitcoin transactions per day only increased by 46% year-to-date while the number of on-chain transactions appreciated by only 52% in the same period. Two possible explanations for this discrepancy are:

  • No new money is entering the cryptocurrency market,
  • Bitcoin whales are the biggest decision makers in the market

Disparity in the number of Bitcoin transactions during the rally from last few days and the sporadic flash crashes suggests that institutional traders and whales rule the market. Unfortunately, simple tools such as stop-losses and limit orders are becoming increasingly ineffective against large-scale market manipulations.

The cryptocurrency market has only been around for about 10 years, and technical analysis has consistently proven to be a better way to participate in the market than fundamental analysis.

For retail traders who want to compete effectively against whales, AI-powered automated trading strategies are becoming increasingly important to increase the odds of success in the cryptocurrency market. 

Below are three startups which are currently at the forefront of automated trading in the cryptocurrency market. 

Alphanu

Alphanu is a marketplace for subscribing to powerful trading algorithms created by professional traders, fund managers, and developers. Algo trading is becoming popular all over the world. More than 85% of trades in the U.S. are computerized and the Asian market is rapidly catching up too.

Alphanu is created to serve as a platform for traders to access trading algorithms (designed by professionals), without having to incur the huge costs which previously restricted algo trading access for institutional players.

Through Alphanu, retail traders and investors will be able to access an ecosystem of the best traders, investors, data scientists, and developers. This access will reduce the unfair advantage enjoyed by institutional investors and democratize the odds of success in the financial markets. Interestingly, the Asian market is in dire need of democratized access to tools for algo trading.

In the words of Paul Hsu, Co-founder, CEO at Alphanu “It is the most opportune moment to capture the niche market – governments in the Asian markets are currently on the fence with regards to how they want to regulate automated trading. It is difficult for them to decide as the automation of trading is inevitable, but openly allowing it at this point will create a harmful gold rush where the winners will be big corporations (over the interests of the overall public).”

The platform will also hasten growth of the crypto market by encouraging participation of retail investors who are sceptical about adding cryptocurrencies to their portfolios. The fledgling startup believes that it can destigmatize the speculative perception about cryptocurrency trading through algorithms that take care of the technical analysis aspect required for successful cryptocurrency trading.

Hsu goes on to observe that “blockchains due to their nature as a public ledger create the necessary trust factor for a marketplace to step in and democratize algorithmic trading without becoming a “middleman” just like the hedge funds. Tokens offer a great solution to the problem of how to price limited resources on a marketplace, such as buyer attention.”

Mudrex

Mudrex is a marketplace to find, build, and use algorithms in trading strategies, for traders without prior knowledge of data science or coding. Through a simple layout, Mundex provides traders with an opportunity to choose trading strategies using different factors such as type of cryptocurrencies, past performance, duration of use, and volume of previous trades.

Mundex also allows traders to build their own trading strategies as a mashup of other strategies through a drag and drop feature. Traders can then backtest the efficacy of their strategies against historical data to provide them with valuable insight for optimizing the strategies for the best results. 

A differentiating factor between Alphanu and Mudrex is that Alphanu seems to only list trading strategies from professional developers whereas any user can submit their trading strategy for listing on Mudrex. On one hand, Mudrex could have large number of listed strategies and on the other, potential users might be concerned about the quality of the listed strategies.

Capitalise

Capitalise is a tool for automating trades across different financial markets using natural human language and syntax without any prior knowledge of coding or data science. Trades on Capitalise uses everyday words to turn ideas into fully automated trades using ‘If This, Then That’ protocols. 

A typical trade could be written as “Buy 2.1 BTC if price breaks above last day high and 24 hours volume is above the daily average volume by 50%. Close position if the profit is at 25% or if the RSI is below the 5 days MA

Capitalise is designed to be integrated with trading accounts on different third-party exchanges, brokers and trading platforms so that traders can manage all their trades in one place and take control over their trading. Capitalise also allows trading strategies to run in a loop, which in turn serves as a long strategy for automating entries and exits. 

Amir Shiovich, CTO and cofounder of Capitalise observes that “the future of trading will see the consolidation of crypto and traditional markets . . . By bringing traditional trading and crypto trading onto a single, all-in-one platform, Capitalise allows users to automate their strategies based on data from both the crypto and traditional markets, then execute those strategies.”


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