Bitcoin has let go of its hold above USD 8,000 just moments ago in late afternoon Central European trading, when registering a daily and weekly low of USD 7,940 at around 2:00 pm London time (CoinDesk).
This move completes a 3.66% drop in daily value from yesterday, rounding off and confirming the bearish bias that had been showing on charts for weeks now, as Bitcoin looks unable to rally in October. Altcoins have taken the news badly, Ethereum throwing off 5% of its value overnight, with EOS, NEO and TRX being the bigger losers at around 6% to 8% drops in US dollar valuation.
The mid-week bear, on the bright side, is just as toothless as the bulls in terms of trading volume, so it could be that bulls in North America later will drag price back up above the key support zone. However, there is little motivation to do that, given that the last surge to happen was promptly followed minutes later by an even deeper crash.
In the face of poor performance from Bitcoin derivatives like Bakkt’s Bitcoin futures, one global exchange appears to have shown the way to success. CoinTelegraph reports that Binance is the only winner in a week of losers, with its futures platform showing unabated demand for Bitcoin futures, while trading volumes are hitting lows elswhere.
Apparently, it has now set a USD 700 million trading volume record on its BTC/USD futures product, behing only Huobi and BitMEX’s offerings in the same class. Lest we forget, Bakkt futures had only managed a measly 10 BTC at one point, just about USD 80,000 worth.
Bitcoin trading volume has hit worrying lows, according to senior market strategist at eToro, Mati Greenspan. His research shows that only less than USD 200 million worth of Bitcoin had been traded, ased on Messari analytics, compared to a daily volume high of USD 4 billion just months ago. The same pattern was observed over most other platforms where data was available, including on P2P platform Localbitcoins.
Just to show you the sour state of the crypto markets at the moment. Across all crypto venues, volumes are dismal…
— Mati Greenspan (@MatiGreenspan) October 15, 2019
Not all is doom and gloom, of course, and there are bound to be periods of low activity for some. Research from Skew Markets shows Binance futures bucking the trend, and surely, other markets may be benefiting from the lull in normal trading markets.
Binance just had a record volume day for its newly launched BTCUSDT futures product : $700mln+ traded on the 15th pic.twitter.com/w0MX0csBEt
— skew (@skew_markets) October 16, 2019
Perma Bitcoin bull Mike Novogratz is one unfazed by the latest data. On a CNN “First Move” segment with Julia Chatterley, Novogratz remained confident that Bitcoin would return to its all-time high of USD 20,000 in only 18 months, that is, early 2021.
Ex Point72 fund manager Travis Kling is one of many others who joins his view, with his own prediction for Yahoo Finance saying that Bitcoin bulls are not very far away at all from a new all-time high that would come as early as the end of 2020.
The only flaw so far in Novogratz theory is that institutional investments would rise with more instruments and solutions such as Bakkt. Bakkt has failed quite spectacularly in the short term, and other derivatives are not getting approved by the US SEC any time soon.
But his view on macro trends in the global economy may yet play out, as quantitative easings all over the world with central bankers lowering interest rates, compounded by escalations in trade tensions and geopolitics, and a deepening public distrust in centralized systems.
As we said before, however, how far the average consumer would go to depart from fiat and enter Bitcoin during an economic crisis, is really all theory at this moment.
Meanwhile, blockchain analytics firm CipherTrace has announced that it will now add support for over 700 digital assets and cryptocurrencies. While some altcoins like Ether and Litecoin are familiar names, it will even add stablecoins like USDT to its platform. The move should be welcomed as good news for financial institutions wishing to remain compliant with anti money laundering laws, since blockchain analytics can help clarify some of the obfuscations that can happen with blockchain-based digital assets.
CipherTrace head of financial investigations Pamela Clegg declared:
“Bitcoin takes center stage in financial crime investigations[…] Still, billions of dollars move through alt-coins daily. To close cryptocurrency money laundering gaps, we must expose more of the true number of illicit transactions that occur across the entire ecosystem. This platform expansion does just that by providing regulators, exchanges, and investors visibility into more than 87 percent of the virtual asset market trading volume.”
Bad news getting worse for bad guys using crypto.
Image Courtesy: Pixabay