Market report

BITCOIN UP, ALTS DOWN — KIND OF

London Block Exchange

27th February 2017

It might not seem like it, but we are still consolidating

BITCOIN UP, ALTS DOWN — KIND OF

It might not seem like it, but we are still consolidating

Yesterday at 12:50 GMT, bitcoin jumped more than 5% to £7.3k ($10.3k) in just 20 minutes and everyone went wild. The first reports attributed the rise to technical traders playing the break out of a falling wedge — a classic bullish pattern.

It has since been sitting within a 1.5% range of that level, allowing bulls to be confident in the rise. The day traders were likely helped with the confirmation of a long circulating rumour that we’ll cover below!

Meanwhile, in the game of cryptos, the top 100 projects lost 3% on average against bitcoin.Due to bitcoin’s rise, however, these cryptoassets managed to appreciate 4% in dollar terms — showing how difficult it is to balance the conflicting goals of accumulating fiat or crypto!

Traders are now looking at the key level of £7.95k ($11.1k) to determine bitcoin’s next direction shift and its influence on alts’ prices. Especially considering that some projects, such as NEO and GAS — its utility token — seem to have escaped BTC’s gravitational pull, rising 20% due to the ONT airdrop.

DID GOLDMAN SACHS BUY POLONIEX?

No — but it’s still an important deal that deserves everyone’s attention

The aforementioned rumour was confirmed by Forbes shortly after bitcoin’s pump. The acquisition of Poloniex — the 14th largest cryptoassets exchange by 24h volume and once an ‘altcoins paradise’ — by Circle, a mobile payments and cryptocurrency startup.

Backed by Goldman Sachs — which owns around 30% of the company — Circle operates one of the largest ‘over the counter’ trading desks for cryptoassets, with deals ranging between £180k to £140 million. Circle is also backed by Baidu — the ‘Chinese Google’.

While it’s interesting that both Wall Street and China are showing increased interest in the space, it doesn’t necessarily mean they are directly investing in crypto. The deal — which was valued at £285 million — is already attracting a lot of criticism.

Circle aims at becoming the US’ first regulated crypto exchange, but its apparent focus on security tokens means that it will have to comply with strict SEC regulations — which scares some consumers. Furthermore, wasn’t Bitcoin created to fight Wall Street?

WHAT TO LOOK OUT FOR

Filter the noise and stay ahead of the pack

Blockstack Berlin — a one-day conference focused on decentralized applications organized by the homonym company — is this Friday. Nick Szabo (potentially Satoshi?), Chris Burniske, David Ari Paul, Edward Snowden and Elizabeth Stark are all speaking! Tickets are selling out quickly and registration closes at 22:00 GMT.

Bitcoin Private’s hard fork takes place tomorrow, as soon as the first ZCL and BTC blocks are established after 17:00 GMT. Here’s a good summary of the ‘spork’!

Steve Wozniak, Apple’s co-founder, says he was scammed out of 7 bitcoin due to a simple credit card fraud scheme. Learn about it here so you can avoid the dupe.

WHAT TO READ TODAY

An insight a day could give you more profits to play

Economists are finally having a go at analysing cryptoassets. Following this weekend’s debate on the proper use of the Quantity Theory of Money for valuing token economies, a former Senior Research Officer at the Minneapolis Fed gave his take on the issue.

Bankers are finally having a go at ICOs, by starting to devise Security Token Offerings. Here’s your introductory guide to the tokenization of traditional assets.

Satoshi Nakamoto’s identity geeks are finally having a go at Craig Wright, once thought to be the mysterious creator of Bitcoin — a theory that is now widely discredited. A £7 billion lawsuit might force Craig to prove his previous claims to fame were false.

  • bitcoin
  • consolidation
  • NEO
  • GAS
  • poloniex
  • goldman sachs
  • satoshi