Now that Bitcoin has begun to cool off from its bullish rally from yearly bear market lows, as the price of the leading cryptocurrency stabilizes and consolidates, the pause presents an opportunity for altcoins such as Ethereum and Ripple, to recover ground lost to Bitcoin on each trading pair’s ratio.
As most altcoins have reached a historic average drawdown, and all signs are pointing to an altcoin season on the horizon as profit from Bitcoin is taken and invested into other cryptocurrencies for additional returns. Those who lived through past altcoin and Bitcoin bear cycles are sharing their past learnings with the crypto community, offering up tips on how to maximize profits during the next alt season.
Bitcoin Analyst: How to Spot an Alt-Season Before it Begins
Following Bitcoin’s highly-publicized, media-fueled frenzy at the tail end of the 2017 crypto market bull run, the entire crypto market and all of its individual cryptocurrencies feel in value, ranging from 85% to 99.9% in losses.
Related Reading | Altcoin Trader: Alt Bitcoin Bear Cycle Almost Over, 600% Gains During Bull Cycle Expected
As these cryptocurrencies have found their bottom in terms of USD, a short-lived alt season had materialized in early 2019 that saw many altcoins doubling in USD value. Most altcoins had outperformed Bitcoin, especially Litecoin which appeared to lead the crypto rally ahead of its halving. The tightly correlated relationship between altcoins and Bitcoin helped carry Bitcoin out of the depths of the bear market to the current highs.
However, following Bitcoin breaking above $4,200, altcoins began an inverse correlation with Bitcoin, instead falling in value relative to BTC while Bitcoin soared, only further growing Bitcoin dominance.
A break in Bitcoin dominance is the 4th signal in one cryptocurrency analyst’s checklist for the conditions to create an alt season. This step happens after Bitcoin rallies, and money begins to flow into large cap altcoins like Ethereum and Ripple – the number two and three cryptos respectively.
After Ethereum breaks above the 200 EMA, which happened in recent days, that fall in Bitcoin dominance should begin. That’s when money will begin to flow from large caps to mid- and low-cap altcoins.
Knowing this order of events and flow of capital from Bitcoin into large caps, then into mid- and low-caps can be added to any trading strategy to maximize profits.
Remember to Realize Profits on Crypto Gains During Bull Runs
Should crypto traders find themselves in the midst of a full blown alt season, crypto analyst Panama Crypto suggests taking profits on the way up, while also leaving a “moon bag” reserved for the off chance one crypto significantly takes off.
The best advice the trader gives, is a reminder that if a “life-changing amount of profit” is ever gained, to realize profits and “run.”
Related Reading | Crypto Analysts Call For the Death of Altcoins, But It Could Be a Lucrative Buy Signal
Many cryptocurrency investors at the height of the last bull run saw their portfolios reach values they never dreamed of, but greed and fear of missing out caused many to miss their opportunity to realize profits, and were forced to hold through the longest bear market on record. It’s worth noting that profits are never actually profits until realized, and the crypto is cashed out into a fiat currency.
JP Morgan bank recently announced the upcoming release of a digital coin for faster transactions between customers, thus raising fears of XRP fans
JP Morgan to foray into digital assets
JPM Coin is crypto – Forget about it
At the end of last week, U.Today reported that the JP Morgan banking behemoth announced the upcoming beta launch of its own digital coin dubbed simply and originally JPM Coin.
Numerous news outlets rushed to assume that this is ‘the empire striking back’ at the rebellious XRP, which dreams of leaving traditional bank transfers way behind.
Now Forbes dismisses these panic-smelling assumptions, saying that the newly-made JPM Coin is no crypto at all in the narrow sense of the word.
JP Morgan to foray into digital assets
Jamie Dimon from JP Morgan has been a long-time critic of Bitcoin and the whole crypto industry, calling it a bubble. Still, the bank has decided to take advantage of the technology that promises to transfer payments with the speed of light. Nevertheless, the author of the Forbes article insists that the digital token that JP Morgan plans to test in the short term is anything but cryptocurrency.
The original material published by CNBC says that the JPM Coin intends to be used for quick payments – the speed will be comparable to those provided by smart contracts, leaving behind the conventional wire payments, which in the era of blockchain looks as old as the hills. JPM Coin will also be backed by US dollars, making the asset more stable compared to regular crypto – the principle of stablecoins.
JPM Coin is crypto – Forget about it
However, reminds the Forbes writer, the bank plans to use the coin for internal transfers only – for its corporate clients, large corporations, transacting securities, etc. Another option is that JPM Coin will replace the USD that the bank’s subsidiaries store in their vaults.
However, it will not be used on any public networks, unlike BTC, ETH or the aforementioned XRP, for instance.
Besides, JPM Coin will be operating on the Quorum blockchain, created by the bank, which means that any entity using the newly-created token will have to be approved by JP Morgan. This is also very much different from the way ‘regular’ crypto coins work.
Thus, some experts believe the JPM Coin, which seems to have already become a little controversial in the crypto world, will be just another digital coin, not crypto.
As an example, the head of the Coin Center research platform said that the difference will be the same as between the Internet, free and open to any participant, and AOL, a closed permissioned network. It seems like the currently hyped coin of JP Morgan will be just another electronic payment system.
Analysts at JP Morgan have predicted that Bitcoin (BTC) could fall below $1,260, while banks will not benefit from blockchain for at least three to five years, Reuters reported on Jan. 24.
According to Reuters, analysts from the major global investment bank think that the true value of cryptos is still unproven, and that they only make sense in a hypothetical “dystopian” event, wherein investors have lost faith in major traditional assets like gold and the U.S. dollar. The analysts stated in a report:
“Even in extreme scenarios such as a recession or financial crises, there are more liquid and less-complicated instruments for transacting, investing and hedging [than cryptocurrencies].”
JP Morgan also said that institutional involvement in the crypto market has slumped over the past six months, with individual traders making up the majority of the market. In its crypto report, the company claimed that using crypto for payments will remain “challenged,” adding that the firm was unable to find any major retailers that accepted crypto in 2018.
JP Morgan’s analysts have further suggested that Bitcoin is likely to drop to around $2,400, and could even fall below $1,260 if the current bear market persists. At press time, the biggest cryptocurrency is trading at $3,595, down around 1.7 over the past week, according to data from CoinMarketCap.
While JP Morgan forecasted that “widely-hyped” blockchain technology will not make any real difference for banks at least three to five years, the investment bank still concluded that distributed ledger technology (DLT) has potential to cut costs for global banks and digitize various complex processes.
JPMorgan CEO Jamie Dimon is vocally critical of cryptocurrencies, including Bitcoin, which he called a “fraud” in September 2017. While previously stating that he does not “really give a sh*t” about Bitcoin, he admits blockchain’s potential, saying, “Blockchain is real, it’s technology, but Bitcoin is not the same as a fiat currency.”
Just hours ago, the Tron (TRX) Foundation took to twitter to let the crypto community know that the NiTRON Summit will begin in less than 13 hours. The event is scheduled to begin today, the 17th of January, and end tomorrow the 18th. The full tweet by the Tron Foundation can be found below.
The event will be at the Yerba Buena Center for the Arts at 700 Howard Street, San Francisco. The event plans to bring together diverse guest speakers, blockchain developers, crypto enthusiasts and more. The summit will provide an opportunity for them to share ideas and better understand the blockchain industry. NiTRON is also meant to create new opportunities for entrepreneurs and investors who will be attending the event.
Kobe Bryant as a Special Guest at NiTRON
Legendary basketball player, Kobe Bryant, will be a special guest speaker at NiTRON. Mr. Bryant will share his life experiences, insights and vision on entrepreneurship at the summit. He hopes to inspire young leaders and entrepreneurs. He shared the following words about this vision in a 2016 interview with CNBC.
Playing basketball, the focus is always on winning. Winning championships, winning championships, winning championships. Now, championships come and go. There’s going to be another team that wins another championship, another player that wins another MVP award.
But if you really want to create something that last generations, you have to help inspire the next generation, and they create something great, and then that generation will inspire the one behind them, right? And that’s when you create something forever. And that’s what’s most beautiful.
Other Special Guests
Kobe Bryant will be joined by a list of several influential individuals as can be seen in the incomplete list of speakers below:
Justin Sun – CEO Tron and BitTorrent
Ella Zhang – Head of Binance Labs
Tim Byun – CE), OKCoin USA
Samuel Harrison – Managing Partner, Blockchain.com
Viktor Radchenko – Founder, Trust Wallet
David Lahbart – Former SEC Officer
Robin O’Connell – CEO, Uphold Inc.
Justin Knoll – Project Lead, Project Atlas (Tron)
Paul Veradittakit, Partner, Pantera Capital
and more influential individuals in the blockchain industry
Speculation of a BitTorrent (BTT) Airdrop Announcement at NiTRON
With the budding list of guest speakers and the general excitement around the event, lots of Tron announcement are expected at NiTRON. Of particular important to the Tron community is how the BitTorrent (BTT) token will be successfully integrated onto the Tron platform. Most Tron investors are also aware of the BTT airdrop for all holders of TRX. Therefore, many crypto enthusiasts believe the NiTRON summit is the event where all this information will be made public.
What are your thoughts on Tron’s Nitron event in San Francisco that starts today? What announcements do you expect to be made by Justin Sun and the Tron Foundation? Please let us know in the comment section below.
Attackers have stolen almost $500,000 worth of the Ethereum Classic digital currency by carrying out a compute-intensive hack that rewrote its blockchain, officials with Coinbase, one of the leading crypto currency exchanges, said on Monday.
The heist was the result of carrying out what's known as a rollback attack, which allowed the attackers to reorganize the Ethereum blockchain, Coinbase security engineer Mark Nesbitt said in a blog post. From there, the attackers were able to "double spend" about 88,500 ETC, meaning they were able to recover previously spent coins and transfer them to a new entity. As a result, the coins were effectively transferred from the rightful recipients to new entities chosen by the attackers.
"We observed repeated deep reorganizations of the Ethereum Classic blockchain, most of which contained double spends," Nesbitt wrote. "The total value of the double spends that we have observed thus far is 88,500 ETC (~$460,000)."
Rollback attacks are often referred to as 51-percent attacks, because, in theory, they require an attacker to control a majority of the CPU power generating a blockchain. Such an arrangement violates a core requirement of any blockchain-based currency: it allows a single entity to write the contents of its universal shared transaction history.
The function of mining is to add transactions to the universal, shared transaction history, known as the blockchain. This is done by producing blocks, which are bundles of transactions, and defining the canonical history of transactions as the longest chain of blocks. If a single miner has more resources than the entirety of the rest of the network, this miner could pick an arbitrary previous block from which to extend an alternative block history, eventually outpacing the block history produced by the rest of the network and defining a new canonical transaction history.
This is called a "chain reorganization," or "reorg" for short. All reorgs have a "depth," which is the number of blocks that were replaced, and a "length," which is the number of new blocks that did the replacing.
Stated a different way, a rollback attack generates a new fork of the blockchain. This causes nodes to replace the original blockchain with the new one and makes it possible for attackers to reverse previously made transactions. Rollback attacks require control of a substantial fraction of the total hashpower devoted to generating the coin's blockchain for a period long enough to pull off the attack. Bitcoin creator Satoshi Nakamoto warned of the key limitation in his white paper introducing the digital coin.
Coinbase paused movements of affected ETC funds to prevent any double spends from hitting its users. Meanwhile, the Kraken Exchange temporarily halted ETC deposits and withdrawals and plans to bring ETC funding back online once exchange officials believe it is safe to do so. ETC officials, for their part, have confirmed that double spends are affecting the currency, but they have yet to say more.
The CEO at one of the largest cryptocurrency exchanges in the world, Changpeng Zhao of Binance has recently made a note on Twitter regarding the volatility of the market moving in the right direction.
In the tweet to his somewhat 267k followers, he said:
Finally, wish came true, volatility in the right direction.
— CZ Binance (@cz_binance) January 7, 2019
The comments from CZ come in response to the Bitcoin price going up by about five percent which pushed it over the $4,000 mark over the past 24 hours. On top of the significant increase in the price of Bitcoin, there were some other big digital currencies which went up along with it.
As reported by Crypto Insider, the CEO welcomed the volatility for the price with open arms whilst also responding to user concerns in regards to Bitfinex’s scheduled maintenance-related downtime. CZ seems to feel responsible for reassuring Bitfinex customers, despite having his own exchange to maintain in the meantime. On the Bifinex official Twitter account, they announced that the trading platform would be going offline on 7th January for up to seven hours.
The management team at Bitfinex’s stated that the exchange is currently going under the completion of “the final stage of [its] data migration to dedicated bare-metal servers, in a move designed to significantly enhance platform speed, security and performance.” It’s worth mentioning that the last time Bitfinex went offline for maintenance reasons, there was some massive volatility in the crypto prices.
During an interview on 19th December 2018, CZ sat down with Bloomberg TV and said, "2018 has been a tough year in terms of the pricing for cryptocurrency, and I think we see a lot of projects not making it this year. So, it's a correction year. But the technology was there, and we want to kick off 2019 with a bang.”
In order to bring in a more mainstream appeal for blockchain technology and crypto, CZ said that the Malta-based exchange would be hosting the Binance Blockchain Week. This is an event which will occur from January 19th-22nd in Singapore. CZ was also asked about how willing he would be to expand Binance during the bear market to which Zhao said:
“Our strategy has not changed [because of the bear market]. We've launched one fiat exchange [in 2018] ... we still want to build 10 more fiat exchanges, and we are also launching our decentralized exchange, which is a very core blockchain technology based exchange. That will also allow much more freedom. None of our plans have changed. We're still pushing forward very aggressively.”
Five more cryptocurrency exchanges have joined the Japan Virtual Currency Exchange Association (JVCEA), according to an official announcement on Jan. 4 from the JVCEA.
The JVCEA is a self-regulatory body formed in April by 16 registered crypto exchanges that aims to create industry-wide investor safety standards. In October, Japan’s financial regulator formally granted self-regulatory status to the JVCEA to oversee the crypto sector.
The body, made in part as a response to the January 2018 $534 million hack of crypto exchange Coincheck, had released a set of regulatory guidelines in June, including a ban on insider trading and prohibition against the trading of privacy-oriented coins.
The five new Type II members of JVCEA are Coincheck, Everyone’s Bitcoin, Lastroots Inc., LVC Corporation and Coinage Corporation. The Type II classification means that the business is in the process of applying for virtual currency trader registration, Cointelegraph Japan notes.
LVC is a sister outfit of LINE, whose own native crypto exchange BITBOX launched its LINK token in mid-October.
Cointelegraph Japan reports that the JVCEA is currently only recruiting Type II members, but it will soon add a Type II classification for companies that handle virtual currency-related services like wallet dealers.
Over the summer, the exchange announced that it was considering both a margin trading limit and maximum restrictions for exchanges to place on some of their clients’ trading.
In mid-December 2018, local media reported the Coincheck had been approved for a crypto exchange operating license by the country’s financial regulator, but Coincheck’s new operator Monex did not confirm the announcement.
The premier US-based blockchain platform, Bittrex announces the launch of US dollar(USD) market for Bitcoin SV(BSV) on december 27. This platform announces that all the eligible Bittrex accounts will be auto enabled for US dollar trading. Also elaborates that the ineligible accounts can also enable US dollar trading. They can do so by submitting a request. Those who wish to withdraw/deposit US dollars through wire need to submit an application. The users operating outside US or in any of the US states/territories are eligible to participate.
View image on Twitter
View image on Twitter
On December 27 we’re launching a US dollar (USD) market for Bitcoin SV (BSV). Eligible Bittrex accounts are auto enabled for USD trading. Those wanting to deposit/withdraw US Dollars via wire should submit an application here: https://support.bittrex.com/hc/en-us/requests/new?ticket_form_id=360000047992 …
10:00 PM - Dec 21, 2018
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In case of requesting to add bittrex accounts to USD markets the user needs to submit application. This application requires some of the basic information about the user. Bittrex accounts allows two account types: Fiat (USD) Trading Only and USD Trading, USD deposits, USD Withdrawals.
In case of Fiat trading only, the user cannot enable USD withdrawals or deposits. The user can trade the USD markets, but if the user wants to withdraw accumulated USD then he needs to first sell to one of the supported USD cryptocurrencies and withdraw as any other cryptocurrencies are withdrawn.
In case of Fiat Trading, USD deposits, USD Withdrawals, no initial deposits are necessary. The user can deposit USD from and withdraw to their own approved bank account. Users can have multiple accounts as well.
Bittrex is planning to explore new, innovative blockchain projects and market opportunities like fiat. This announcement is just the beginning of the upcoming opportunities. The upcoming year awaits for Bittrex business expansion as it aims to provide new and exciting opportunities for its users.
Canada’s largest digital currency exchange QuadrigaCX is blaming legal action from a major bank for delays when customers cash out funds, the Globe and Mail reported Oct. 8.
Vancouver-based crypto exchange QuadrigaCX was launched in 2013 and is known as the first exchange in Canada to be licensed by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). At press time, Quadriga’s daily trading volume is around $600,000 per CoinMarketCap.
Quadriga reportedly states that it has been experiencing difficulties accessing $21.6 million of its funds since January when the Canadian Imperial Bank of Commerce (CIBC) froze five accounts belonging to the exchange’s payment processor, Costodian Inc., and its owner, Jose Reyes. The bank purportedly froze the accounts due to an inability to identify the funds’ owners.
From Dec. 4, 2017, to Feb. 20, 2018, 388 users reportedly deposited a total of $51.8 million into the accounts, according to CIBC. Later, some of these funds were withdrawn, leaving about $21.6 million in the accounts.
According to the Globe and Mail, CIBC requested the court to withhold the disputed funds and decide whether they belong to QuadrigaCX, Costodian, or the 388 users who had deposited the funds. Quadriga subsequently told the court that the bank froze the funds mistakenly, and claims to be the undisputed owner of the greater part of the funds as there is “no evidence” of competing claims. Quadriga said:
“This court should not succumb to the bank’s unsubstantiated and highly offensive speculation that there must be shady dealings afoot because Quadriga’s business is a trading platform for individuals trading in cryptocurrencies.”
Gerald Cotten, CEO at Quadriga, said that the legal matter has resulted in delays for a “small fraction” of the exchange’s 350,000 users. None of the allegations has been proven in court, per the Globe and Mail. Cotten said:
“There are currently delays for some specific withdrawal options, particularly due to the fact that CIBC is withholding tens of millions of dollars that belong to us that were in an account of one of our payment processors.”
The number of participants in the crypto space who have been shut out by banks is “staggering” according to Cotten. According to the Globe and Mail, Quadriga has told the clients that banks in the Canada are “conspiring” against crypto businesses.