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What Part Did BitMex Play In The Ethereum Crash?

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Ethereum crash
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A month ago, traders were confident that the value of ETH would not fall below $300. But the recent fake news that Goldman Sachs was dropping plans for a Bitcoin and Crypto desk, proved to be the catalyst the digital asset needed to fall even further to current levels of $192 at the moment of writing this. All year long, analysts had predicted that ETH would plummet in the markets due to congestion issues on its network. This led to many investors shorting the digital asset through BitMEX. But many did not expect the fall to be overnight as experienced in the last week.

BitMEX Accused of Manipulating Ethereum’s Price

Information around the crypto trader community indicates that the crypto exchange of BitMEX might have had a hand in the Ethereum crash. This was after a conversation on the exchange surfaced of a BitMEX official account (supposedly of Arthur Hayes) advising traders to keep shorting ETH. A screenshot of the conversation has been provided below:

BitMEX CEO’s conversation with users. Source, trustnodes.com

The word ‘punt’ used in the conversation above, is used in informal terms to hint at attempts to make fast profits from an investment regardless of its underlying fundamentals. This means the trader carries a high risk in the trade by speculating instant high returns. In the case of ETH, the decline was inevitable, but the shorts on BitMEX might have contributed to the digital asset falling further.

With respect to BitMEX being accused of manipulating the value of ETH, the platform has barred trading for residents of the U.S, Québec (Canada), Cuba, just to name a few. This then can be interpreted as the exchange evading the corresponding regulatory authorities such as the American SEC. This theory further pushes suspicions that their back-end operations are not as they seem. There could be more to this than meets the eye with BitMEX. Here is the chart of Ethereum ever since it was added to BitMex on August 2nd at around $400.

Chart courtesy of tradingview.com

The Decline of ETH Might Not Be Over

Many crypto analysts believe that the cryptocurrency bear market will not be over till late October this year. Other’s have postulated that we have a long 6 to 12 months of either a bear market or pure sideways movement. Both schools of thought agree that in the short term, Ethereum’s price in the market might drop as low as $155. This is without factoring in any other FUD or fake news in the crypto space.

When we add the prospects of bad news from the SEC postponing or rejecting the CBOE sponsored Bitcoin ETF, we can clearly see that ETH could be headed to a double-digit value very soon. The last time Ethereum was valued at under $100 was back in May 2017 when many of us had not even got into the crypto trading space. All we knew was that there was this new revolutionary technology called blockchain and its biggest advocate was Bitcoin.

In conclusion, the cryptocurrency exchange of BitMEX could have had a hand in further pushing the value of ETH lower than was expected. This is due to the various investment instruments on the platform that allows traders to bet against their favorite digital asset. Further looking at the situation from the point of view of the exchange’s CEO, Arthur Hayes, ETH was ripe for the picking as the preferred coin to short in the markets. With the market still a bit shaky, ETH might decline a bit further.

Check out the new Global Coin Report YouTube channel as we address all the highlights in crypto and the financial markets. With guests from all over the cryptosphere bringing you news, editorial, and of course, money making opportunities.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Blockchain-Focused ETF Arrives on London Stock Exchange

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The crypto community is still waiting for the US SEC to approve Bitcoin ETFs, with speculation which application might get approval being one of the hottest topics in 2018. However, come 2019, the US government shutdown dragged on, and the Bitcoin ETF request which had the most potential to see a grant got withdrawn by the very companies that submitted the application.

While the question of BTC ETF remains hanging in the air, blockchain-focused ETFs seem to be a different matter entirely. In a recent announcement by an independent investment managed firm called Invesco, the company has stated that it was about to launch the largest blockchain-focused ETF in the world. They managed to go through with this plan, and the ETFs have reached the London Stock Exchange today, March 11th.

The exchange-traded fund includes a portfolio containing as many as 48 different firms which are bringing exposure to the emerging technology. Among them, there is Taiwan Semiconductor Manufacturing, which is a well-known creator of chips used for crypto mining, as well as the CME Group, which is the first regulated exchange in the US which launched Bitcoin futures. There are many other well-known companies as well, such as Intel, Microsoft, and others.

Chris Mellor, the Invesco’s head of ETF equity product management in Europe, said that blockchain has a huge potential to increase earnings, even though…

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Could Jeff Bezos Turn to Bitcoin to Hide Fortune from Wife?

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Amazon’s Jeff Bezos has made numerous headlines recently due to his overly-publicized divorce, which shows all signs of being one of the most expensive ones — if not THE most expensive one — in modern history. According to estimates, it might cost him as much as $70 billion, which will make his soon-to-be-ex-wife the richest woman in human history.

However, as the process continues to unfold, many have started wondering if things may have ended up differently for Bezos if he turned to Bitcoin for help.

Bitcoin as a divorce tool?

In the last several years — since Bitcoin and other cryptos hit fame — many have started turning to BTC during their divorce proceedings. In fact, it can even be said that using the largest cryptocurrency in this way has become a new trend. The trend has been gaining so much strength that numerous law companies started including advice on what to do in regards to Bitcoin as part of their websites.

However, while the trend has been picking up in recent years, it is nowhere near as easy as it might seem. For example, if there is even a suspicion of a spouse having undisclosed holdings appears during the divorce process, it might be enough to impact the final decision of the judge. In other words, even if there is a complete lack of evidence, but…

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Three Biggest Things To Know Come Cryptocurrency Tax Season

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In recent years, digital cash systems known as cryptocurrencies such as Bitcoin and Litecoin have exploded into the public eye. A blend of cash and stocks, their use and value has grown exponentially. In 2017, the IRS decided to focus great effort on taxing them. In theory, this should be as simple as calculating taxes on any other type of property, bond, or other assets. Cryptocurrency, however, presents a unique challenge. The full extent of one person’s crypto activity can stretch across dozens of platforms and take a variety of different forms. This makes it difficult to gather all of this information cohesively, much less begin the seemingly- complicated process of reporting it.

These three tips should help anyone looking to legally report their crypto activity to figure out where to start.

Documentation is key!

There are dozens of different “exchanges” individuals can use to change their cash into crypto. When the flat currency is changed into cryptocurrency at the exchange, you establish your cost basis. This makes this data crucial when you begin the process of reporting.  Those who have used a variety of different exchanges should keep detailed records of everywhere that they made trades. Once tax season arrives, most exchanges will allow users to view their entire trading history with that exchange. This information will be necessary later to complete taxes.

Calculate your total gains

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