Bitcoin Price Manipulation by Whales – Fact or Fiction?

17. Januar 2021

The Bitcoin paradox is something of a dilemma. On the one hand, Bitcoin sells itself as a financial equalizer. But at the same time it is one of the most unevenly distributed assets in the world.

Kitco News’s David Lin raised the issue in a discussion with GraniteShares’s director of research, Ryan Giannotto.

Giannotto agreed with Lin, calling it one of the fundamental ironies of Bitcoin. Giannotto:

“It is intended to be a financially democratizing force and yet it is so profoundly unevenly distributed. It’s a seriously cornered asset class where only about one-500th percent of Crypto Trader investors control over 40% of Bitcoins. And that’s a serious, serious problem. “

In general, a bitcoin whale is defined as a unit that holds more than 1,000 BTC. Some expand this definition to include addresses with 100 or more BTC as well.

Data from supports Giannotto’s analysis of the situation. They show that 2,419 addresses hold 1,000 or more BTC.

Although these addresses only make up 0.01% of all addresses, they control 43% of the Bitcoin supply (to buy Bitcoins with Sofortüberweisung instructions ).

If the analysis is expanded to include addresses with BTC> 100, an even greater unequal distribution becomes apparent: 0.05% of the addresses hold 62% of the Bitcoin. Overall, more and more Bitcoin is being bought.

Market manipulation

However, unequal distribution is a problem that affects all asset classes. Lin cites the example of Elon Musk’s 20% stake in Tesla stock and asks how this is different.

Giannotto believes that the degree of unequal distribution of BTC is very extreme. To illustrate his point, he cited the example of the Hunt brothers, who held an estimated one-third of the world’s private silver supply.

Between 1979 and 1980, the Hunt brothers were able to push the price of silver from $ 6 to $ 40. Giannotto:

„Even the Hunt brothers couldn’t dream in their wildest fantasies about how cornered Bitcoin is.“

With such tight control of BTC supply exercised by so few, the Bitcoin market is at the mercy of the whales.

Bitcoin whales suffer from „bad reputation“

Undoubtedly, Bitcoin whales play an important role in the BTC economy.

They can choose to withdraw liquidity by not engaging in market activity. Likewise, the oversized effects of moving large amounts of BTC in a relatively illiquid market add to the volatility.

That said , Eric Stone, head of data science at Flipside, believes that whales in general have a self-interest in protecting their horde. As such, they tend to act in ways that favor long-term growth.

„They will cautiously liquidate relatively small amounts of BTC over time rather than risking a supply shock by liquidating larger chunks at once.“

Yet despite Stone’s assessment, the psychology of greed and power suggests that enough is never enough.

Den amerikanske regulatoren OCC sier bankene kan holde krypto

14. Januar 2021

Fjoråret vil bli husket av en rekke årsaker, inkludert å være året da DeFi eksploderte, året da BTC slo 2017-rekorden, men også et år da nasjonale banker rundt om i verden ble seriøse om CBDC. Rushen for å lansere nasjonale stallmynt ser ikke ut til å avta i 2021, og det var derfor Treasury’s Office of the Comptroller of the Currency (OCC) tillot nasjonale banker å drive sine egne noder for DLT.

OCC tillater banker å kjøre noder og bruke DLT

I følge den nye kunngjøringen fra det amerikanske OCC står nasjonale banker fritt til å kjøre uavhengige noder for distribuerte reservertnettverk. I hovedsak uttalte OCC at bankene har lov til å bruke ny teknologi, som inkluderer INVNs, stablecoins, og til og med utfører betalinger og andre funksjoner som de har rett til, som banker.

Kunngjøringen kommer som et stort grep, spesielt nå, da fremtiden for stallmynt er ganske usikker. Selvfølgelig anbefaler OCC fortsatt ekstrem forsiktighet, siden cyberrisiko er kjent for å følge den nye teknologien.

Valutabehandler siterte noen av de tilhørende risikoene, inkludert overholdelsesrisiko, operasjonell risiko og spesielt svindel. Å bruke disse nye teknologiene krever tilstrekkelig teknologisk kompetanse for å sikre at bankene forblir trygge.

OCC fortsetter å oppmuntre bankene til å gå krypto

Den aktive valutakontrolløren, Brian Brooks, er godt kjent med krypto. Tross alt ledet han Coinbases eget juridiske team før han tiltrådte sin nye stilling i mai 2020.

Siden den gang har han vært fokusert på å produsere veiledning for å navigere i kryptoindustrien og oppmuntre og autorisere banker til å bli mer involvert i digitale mynter.

Samtidig forhindret han bankene i å avbryte tjenester til kryptosektoren.

Når det gjelder hans nyeste kunngjøringer, bemerket lobbyistgruppen kjent som Blockchain Association at OCCs brev indikerer at blockchain har samme status som andre økonomiske nettverk, som FedWire, ACH og til og med SWIFT.

Las opciones de Bitcoin de estilo europeo ahora están disponibles en Binance

1. Januar 2021

Binance, el principal exchange de criptomonedas, acaba de lanzar Vanilla Bitcoin Options al estilo europeo.

El intercambio ya realizó pruebas después de recopilar ideas y pensamientos del público.

Los contratos se liquidarán en USDT, y como son de estilo europeo, esto solo puede suceder en una fecha predeterminada.

El precio de Bitcoin ha alcanzado recientemente un nuevo ATH a $ 28,288, lo que hace que Bitcoin sea el más grande y popular que nunca. El principal intercambio de cifrado, Binance , reaccionó con un movimiento que atraerá aún más interés al comercio de Bitcoin al lanzar Vanilla Bitcoin Options al estilo europeo, anunciando que deben liquidarse el día en que expiren los contratos.

Binance ya realizó pruebas

Los nuevos contratos de Binance se valoran y liquidan en la moneda estable líder, Tether (USDT). Con estos contratos, el intercambio tiene como objetivo atraer inversores institucionales que pueden no estar dispuestos a poseer Bitcoin, pero ciertamente pueden beneficiarse del reciente repunte de precios de la moneda.

Binance ya realizó una prueba de red de prueba del nuevo producto durante noviembre de este año. Antes de eso, el intercambio dedicó un tiempo a recopilar las opiniones del público sobre el nuevo producto, con respecto a cosas como el comercio de márgenes y el control de riesgos.

El director ejecutivo de la bolsa, Changpeng Zhao, habló sobre el lanzamiento del nuevo producto y señaló que existe una gran necesidad de productos tan innovadores en la actualidad. El precio de Bitcoin se ha triplicado desde octubre de este año, y hay un gran potencial para que mucha gente use esto en su beneficio y gane. Desafortunadamente, muchas de esas personas e instituciones no están interesadas en tener monedas. Con las opciones de Bitcoin disponibles, no tendrán que hacerlo.

¿Cuáles son las opciones de Bitcoin al estilo europeo?

Las opciones en sí mismas son contratos de derivados, que generalmente se utilizan en las finanzas tradicionales. Permiten a los comerciantes protegerse contra las principales fluctuaciones de precios y ganar dinero incluso si los precios están cayendo.

Esto es perfecto para el campo de las criptomonedas, donde los precios tienden a subir y bajar con bastante fuerza debido a la gran volatilidad. Los comerciantes pueden optar por opciones de compra si desean comprar el activo subyacente (en este caso, Bitcoin) o opciones de venta si desean tener derecho a vender. Las opciones les dan el derecho, pero no la obligación, de hacer cualquiera de las dos cosas, según el tipo de contrato.

Ahora, las opciones de estilo europeo se pueden ejecutar en la fecha predeterminada. Mientras tanto, “Vanilla” significa que los contratos son muy básicos y simples. Las opciones de estilo europeo difieren de las opciones de estilo americano debido al hecho de que las opciones americanas también pueden ejecutarse antes de la fecha predeterminada. Binance ya ofrece estas opciones, y ahora también agregó el otro tipo.

Bitcoin (BTC) Update: Push the price to $30,000 by FOMO?

The Bitcoin (BTC) rate is currently hovering around $27,500 and even tapped a new all time high at $27,750. We look at the charts and discuss the possible scenarios, read the update here!

Bitcoin Update

It is again the time of year when regular stock markets close. And little volume prevails. A quiet time with little movement. None of that is true on the Bitcoin market. Where markets close during the holidays, Bitcoin’s price makes a big breakthrough.

Over the past week, we’ve seen a price around $24,000 that has met with considerable resistance. Seemingly a new temporary summit for Bitcoin. With the prospect of a somewhat longer consolidation than we’ve seen in recent weeks.

The fact that we saw an outbreak towards $27,750 over Christmas was on the one hand unexpected, but on the other hand not a crazy picture. An image we see more often on the cryptocurrency markets. That they don’t care much about legacy markets. Which makes us think at the moment. Are we going to see the $30,000 this year?

Bitcoin 4-hour chart

Looking at the 4-hour chart of Bitcoin’s course, we can see that it had been consolidating for quite a week. And had found quite a bit of resistance around $24,000.

But $22,500 didn’t give up and showed the bottom end of the consolidation range. A rather tight range, but with decreasing volume a place where the price could have hung around longer.

Testing $25,000 resulted in a fall to the bottom of the range towards $22,500 but soon showed recovery up. The second attempt resulted in a movement towards $27,750. A new all time high of the Bitcoin price.

We see that the price there is currently testing a slight resistance. Which could result in another move up towards $30,000.

Where we will most likely see the next big resistance. How the price reacts to this is hard to say. But a short pullback is not unlikely.

Should the price drop a bit, the price around $24.500 will be a first stronger support. Partly due to the longer consolidation around that level.

This has created a more stable safety net. If this safety net breaks, there will still be a lot of support up to $22.500.

Bitcoin hour chart

If we take Bitcoin’s hourly graph, we see that the course is also moving well above the uptrend on lower timeframes. Testing the uptrend has ensured that the course has risen significantly.

Trying to break through $24,500 resulted in a short correction with a very nice break retest. The price then rose sharply to $3,000.

That would have been a very nice entry for a long position (blue bar). Where we would have closed it at the current resistance around $27,750.

Where we will be going with the price in the coming hours and days is very hard to say. We are on high and low timeframes in an uptrend and have not seen a real correction yet.

At the current rate of increase we are likely to see the $30,000 in the short term. With a correction as a result. Even if it can only be that way. That Bitcoin’s price is going to be in this uptrend much longer.