Category Archives: Bitcoin

Bitcoin (BTC) price briefly broke above $9,000 as bulls appear to be in the process of trying to quietly move the price above the resistance level.

Since Friday trading volume for the top-ranked cryptocurrency on CoinMarketCap had been virtually non-existent as the price traded sideways between $8,750-$8,850 for the majority of the day but the weekend is bound to bring about a stronger directional move.

Crypto market daily price chart. Source: Coin360

As reported by Cointelegraph, the presence of a TD9 on the daily time frame, overbought technical indicators, and decreasing trading volume suggested that Bitcoin price had become overextended and traders believed that the loss of momentum would culminate as a retest of underlying support levels.

Although the TD Sequential has proven to be a fairly reliable indicator of trend changes in Bitcoin price action, the digital asset is known for its tendency to push higher even when indicators like the Stoch RSI and MACD are strongly overbought.

Given that the halving is a mere 9 days away, excited investors could simply be overlooking any bearish signals with the belief that the price will continue higher into the halving.

The move to $9,000 occurred on gradually increasing purchasing volume and a bull cross on the moving average convergence divergence. The MACD histogram has flipped positive as momentum continues above the 0 line but the relative strength index has dropped below 50 on the 1-hour timeframe.

BTC USDT 1-hour chart. Source: TradingView

While the move above $9K is encouraging, it lacks strength and the Chaikin Money Flow oscillator remains below 0, and even though there is an hourly pattern of higher lows the tight candlesticks slightly longer upper shadows show momentum and volume remain weak compared to the rally which occurred earlier this week.

As shown by the volume profile visible range indicator on the 1-hr and 4-hr time frame, Bitcoin price needs to hold above $8,950 as this resistance here has prevented the asset from moving higher for the past 2 days.

BTC USDT weekly chart. Source: TradingView

According to Cointelegraph contributor, Micheal van de Poppe, this weeks 35%+ rally ended right at a key resistance block located at $9,200-$9,500. Van de Poppe explained that:

This whole resistance zone provided support throughout the summer of 2019.

For the short term, traders should keep a close eye on hourly volume and whether or not the price can hold above $8,800. If $8,800 is lost, traders will look for the price to retest recent lows at $8,400 and $7,800.

Continued here:
Bitcoin Rally Above $9K Stalls as Sellers Push BTC Back to Key Support - Cointelegraph

Could China take over the Bitcoin (BTC) ecosystem? Its a very real possibility, and it could happen very quickly because China controls more than half of the worlds Bitcoin mining operations upward of 65% of the computing power to mine Bitcoin. No other country is anywhere near that number. Additionally, according to Genesis Minings recent The State of Crypto Mining 2020 report, 60% of Bitcoin owners have a real concern about that Chinese majority and what it could mean for the stabilization of the cryptocurrency.

And they should be worried. China owning more than half of mining operations could result in a disruption to the system, instability to the Bitcoin blockchain or even a takeover of the entire system. Bitcoin was not built to be a controlled currency.

So, why is Chinas vast mining network a concern? In order to understand the potential threat in Chinas majority control, we need to look at a fundamental attribute of how the Bitcoin ecosystem works: decentralization.

The founder of Bitcoin, Satoshi Nakamoto, had a vision for a currency that wouldnt be subject to a third party such as a bank, but that could be democratically exchanged from individual to individual. The Bitcoin ecosystem works because of the community behind it: the miners who add blocks to the chain and the nodes that scan transactions to make sure they adhere to the Bitcoin protocol. Theres no one entity that governs Bitcoin and thats the point.

Even though Bitcoin has a strongly decentralized network, it could still be threatened. If someone were to control over 50% of the power used in mining operations, they could possibly disrupt the entire system through whats called a 51% attack, or majority attack. A majority control would allow the attacker to alter transactions, double spend Bitcoin for their own gain or even block other miners from mining.

Which is why its concerning that Chinese mines are running 65% of the global hashing power used to mine Bitcoin. Its certainly more than 51%.

It takes a lot of energy to mine Bitcoin, so it would make sense that miners would set up their rigs in places where energy and labor costs are cheap. Because China is a center of international trade, lead times and production costs for almost all goods are lower than in other countries, and this also holds true for mining farms and miners. But while a number of mining farms do run on sustainable resources such as hydroelectric power, many rely on coal to fuel their mining. While coal may be cheaper than other fuels such as gas and oil, its still more expensive than alternative options such as hydroelectric and wind power, and its unsustainable and detrimental to the environment.

Having 65% of the worlds mining located in China is a concern. Even though Chinese mines work independently, the majority of the power is now located in one country. And the fact that the Chinese government has control over all of its industries is also a concern. If the government decides that it wants to take over the Bitcoin ecosystem, it could leverage its power over the countrys mining companies and simply take over a majority of the computing power, executing a 51% attack. Suddenly, the decentralized system would be centralized under one country.

While this could be a very real scenario if all the right pieces fell into place, its probably a long shot. New players in the mining market are increasingly setting up shop in the European Nordic states, Canada and the United States. The running costs there, which include cheaper energy options such as hydroelectric and wind power, along with a lack of government oversight that would let companies plan their strategies freely make those locations attractive for investors looking for a more sustainable opportunity.

Additionally, its unclear what Chinas future will be with Bitcoin. It, along with all cryptocurrency, has been banned in the country for years. Though mining had been allowed to continue, the industry as a whole was on the chopping block last year. Even though the Chinese government suddenly announced at the end of 2019 a commitment to developing blockchain technology and allowed mines to continue to operate, the government still hasnt reversed its ban on cryptocurrency. Even though China could take over Bitcoin, it just might not want to.

Still, Chinas overwhelming number of miners, mining pools and companies is something the Bitcoin community needs to be aware of. At the same time, the community can ensure that decentralization continues within the ecosystem by making sure its keeping its own mining operations diversified. As I mentioned above, were seeing new mining farms cropping up in new geographies, which will continue to distribute resources and mining power across the globe.

Its yet to be seen what the future of Chinese mining will be. But the Bitcoin community, which values transparency and democracy, will work to ensure that it remains open and available to all.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Philip Salter is the head of mining operations at Genesis Mining, the worlds largest cloud crypto mining operation, where he leads the software development, data engineering and research teams. Salter started his career as a software developer for BSI Business Systems Integration AG. Salter is an avid miner and crypto enthusiast based in Germany.

Continued here:
US Bitcoin Holders Worry About Chinese Control of the Mining Network - Cointelegraph

Bitcoin was up over 20% year to date Thursday morning.

Data suggests that the recent price rise is being driven by U.S. investors buying bitcoin on spot and derivatives exchanges. Meanwhile, there are now more "whales" swimming in this global sea than since mid-2019. And bitcoin custodial startups are reporting an uptick in users.

You're readingBlockchain Bites, the daily roundup of the most pivotal stories in blockchain and crypto news, and why they're significant. You can subscribe to this and all of CoinDesk'snewsletters here.

It's suspected much of this activity is driven by the impending halving event, which for some sober minds, is nothing more than an act of arithmetic. Here's the story:

Top Shelf

American BuyersData indicatesAmerican buyers are fueling bitcoins rally.On U.S. exchanges, spot premiums are showing stronger buy-side pressure relative to other markets. Further, exchanges licensed to offer bitcoin futures to American investors are rallying while their unlicensed competitors are not. Su Zhu, CEO of Three Arrows Capital, said American investors should give us a strong base given that U.S. tax policy means nobody sells spot for small profits.

Call Me Ishmael, Is That A Whale?The number of Bitcoin addresses holding more than 10,000 coins rose tothe highest level since mid-2019.These 111 so-called whales contribute to the bullish narrative surrounding the top crypto by marketcap. Some of these addresses may belong to high-net-worth individuals or groups, who are diversifying into bitcoin amid the ongoing coronavirus pandemic and ahead of the mining reward halving, said Wayne Chen, CEO of Interlapse Technologies.

Custody During COVIDBitcoin wallet startups are reporting anuptick in users and profitsamid the market disruption caused by COVID-19. An event like that [pandemic] makes people think about how they are storing their bitcoin,"Will Cole, Unchaineds chief product officer, said.

Parental HelpIntercontinental Exchange, theparent company to Bakkt, spent close to $300 millionhelping the bitcoin warehouse acquire loyalty rewards provider Bridge2 Solutions. Bakkt announced it would acquire Bridge2 in February, while simultaneously raising a $300 million Series B funding round with participation from Microsoft's M12, PayU, Boston Consulting Group, Goldfinch Partners, CMT Digital and Pantera Capital.

Mining MoneyArgo Blockchain, a bitcoin mining firm listed on the London Stock Exchange, reported an11-fold increase in revenuesfrom the year before. The company attributed its success to cutting off its consumer-facing arm and focusing on mining some 1,330 bitcoin last year.

Validating TopazTop-five mining pool OKEx Pool will trial Ethereum 2.0s new testnet. Collaborating with Prysmatic Labs, the mining pool dedicated to proof-of-work consensus models will become a validator for the experimental proof-of-stake Topaz testnet. (Decrypt)

Static EtherEthereans are hodling. Data firm Glassnodes has found more than 77% the outstanding ETH supply has not moved in six months. (The Block)

Open to OperateSan Francisco-based cryptocurrency exchangeOKCoin is now cleared to operate in Japan,a nation known for its tight licensing requirements. The exchange began the arduous process of applying for regulatory approval in 2017. CoinDesk's Nathan DiCamillo breaks down why they went through the ringer.

Blockchain for UBIA Zurich-based startup has built a proof-of-personhood protocol to disseminate universal basic income (UBI) to the unbanked. Encointer, backed by the Web3 Foundation, plans to distribute a cryptocurrency for use within a designated locality among willing participants. (Decrypt)

Is Bitcoin Boring?Despite the enthusiasm leading into Bitcoins third halving event, expected in less than two weeks, on a technical level nothing really changes. The BlocksMike Orcuttdigs into the cultural significance of this mundane happening, when Bitcoins code automatically splits its mining subsidy.

Class ActionA district court judge has granted preliminary approval to a$25 class-action claimmade against Tezos. Litigants are suing Tezos alleging its initial coin offering violated U.S. securities laws. (Paywalled)

On FireBlockchain startup Fireblocks reported $30 billion in digital asset transfers using its services. Launched less than a year ago, the company will also open new offices in Singapore and Hong Kong. (Forbes)

CoinDesk Live: Lockdown Edition

CoinDesk Live: Lockdown Editioncontinues its popular twice-weekly virtual chats via Zoom and Twitter, giving you a preview of whats to come atConsensus: Distributed,our first fully virtualand fully freebig-tent conference May 11-15.

Register to joinour sixth session Tuesday, May 5, with speakerAmy Davine Kim from the Chamber of Digital Commerceto discuss upcoming guidelines from the Financial Action Task Force, most notably the Travel Rule, hosted by Consensus organizer Aaron Stanley. Zoom participants can ask questions directly to our guests.

Market Intel

CoinDesk Podcasts

Two of CoinDesks most popular series, NLWs The Breakdown podcast and the Money Reimagined newsletter by Chief Content Officer Michael Casey, come together for a special podcast microseries in the run up to Consensus: Distributed,our first virtual big-tent event May 11-15.

The Breakdown: Money Reimaginedbuilds on themes Casey explores in his newsletter to tell the story of key arenas in the battle for the future of money from the incumbent dollar to China's aspirational DCEP to the insurgent bitcoin in the context of a post-COVID-19 world.

The four-part podcast features over a dozen voices including Consensus: Distributed speakers Caitlin Long, Matthew Graham and Kevin Kelly. New episodes air Fridays starting May 1 on theCoinDesk Podcast Network.Subscribe here.

Danielle Dimartino Booth's Inside PerspectiveAn adviser to the U.S. Federal Reserve through the Great Financial Crisis to 2015 examinesthe largest monetary policy experiment in human historyon the latest episode of The Breakdown.

Who Won #CryptoTwitter?

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read more from the original source:
Whales and American Buyers Drive Bitcoin Rally - CoinDesk

Bitcoin and cryptocurrency investors are gearing up for the long-awaited bitcoin halving this monthwhich will see the number of new bitcoin entering the market cut by half.

The bitcoin price has soared this week and is now a strong contender for 2020's best performing asset, climbing to over $9,000 per bitcoin for the first time since late February.

However, while many traders are betting the bitcoin price will climb as a result of this month's cut to supply, the latest bitcoin bounce may have happened for entirely different reasons.

The bitcoin price has rallied hard since its massive sell-off in March, with many bitcoin investors ... [+] confident the price will continue to rise until a scheduled supple squeeze in May.

Shortly before bitcoin's 20% rally this week, a large transfer of the stablecoin tether was made to bitcoin and cryptocurrency exchange Binance.

Tether is a stablecoin pegged to the U.S. dollar on a one-to-one basis with its creators claiming they keep one U.S. dollar in reserve for every tether token issued.

Tether tokens worth a little over $50 million were transferred to Malta-based Binance early on Wednesday, just hours before bitcoin began its $30 billion pump.

A Twitter bot that records major bitcoin and cryptocurrency trades, called Whale Alert, picked up the transaction.

Over the past month Tether Ltd, which controls the stablecoin tether and shares owners and senior staff with the British Virgin Islands-based bitcoin and cryptocurrency exchange Bitfinex, has ramped up its the number of tether it's creatingminting over $1 billion worth of the stablecoin.

"[On Wednesday we] witnessed extensive buying activity and the high level of scalability and liquidity evident on our platform made us able to seamlessly service all these requests," boasted Bitfinex chief technology officer, Paolo Ardoinowho also serves as the chief technology officer of Tetherin a statement that pointed to major U.S. bitcoin and cryptocurrency exchange Coinbase's unfortunate outage during the sudden bitcoin rally.

The bitcoin suddenly shot higher earlier this week--catching many traders and investors off-guard ... [+] and causing a surge of demand that knocked major U.S. bitcoin and crypto exchange Coinbase offline.

There is currently some 6.3 billion tether tokens in circulation, compared to just 18 million bitcoin.

Last year, it was suggested around half of bitcoin's value between March 2017 and March 2018 was created by trades between bitcoin and tethercasting doubt over whether bitcoin's epic 2017 bull run happened organically.

Many have called for Tether's dollar reserves to be externally audited amid claims tether's dollar peg is "no longer credible.

Read the original post:
Forget The HalvingIs This The Real Reason Bitcoin Suddenly Soared Toward $10,000? - Forbes

Bitcoin and cryptocurrencies have long struggled to find their place on some of the world's biggest technology platforms.

Twitter, whose chief executive Jack Dorsey has emerged as one of Silicon Valley's biggest bitcoin proponents, is plagued by crypto scamsdespite the likes of Tesla boss Elon Musk raising concerns.

Now, some influential members of the bitcoin and crypto community have complained Twitter has "shadow-banned" them, limiting their reach and impressions.

Twitter chief executive Jack Dorsey has praised bitcoin and cryptocurrencies but has previously ... [+] admitted Twitter needs to improve its algorithm.

"Theyre doing it, people," tech investor and founder of bitcoin and cryptocurrency news and analysis website The Block, Mike Dudas, said. "Crypto Twitter has been shadow-banned. Ive noticed this on my account this week."

Dudas was commenting on a complaint made by crypto developer Anthony Sassano who said: "Any tweets that I post get way less impressions than normal."

"I think [Twitter] limited tweet reach [and] impressions," said Neeraj Agrawal of Washington D.C.-based cryptocurrency policy think tank Coin Center.

"I started using LinkedIn again out of desperation," added partner at blockchain-focused venture capital fund, Castle Island Ventures, Nic Carter.

Twitter has yet to respond to a request for comment.

Twitter, just like most big technology platforms, regularly tinkers with its algorithm and it's possible that in an attempt to crack down on bitcoin and crypto scams, authentic accounts have been targeted.

The reports of shadow-banning come as the bitcoin community gears up to one of the biggest events in its 10-year history.

On May 12, the number of bitcoin rewarded to those that maintain the bitcoin network, known as miners, will be halved for the third time, dropping from 12.5 bitcoin per block to 6.25.

It's unclear how the looming supply squeeze will impact the price of bitcoin, however, many expect bitcoin and crypto trading volume to spike in the run up to May 12with a surge of media attention potentially pushing up the bitcoin price.

This week, the bitcoin price has soared almost 20%, making it one of the best performing assets so far this year.

Meanwhile, Twitter is embroiled in an internal battle that could see it drastically change how it deals with some of its most influential users, including U.S. president Donald Trump.

Earlier this year, Twitter was rocked by news the powerful Wall Street activist investor Elliott Management has bought $1 billion worth of Twitter stock and is working to oust co-founder Jack Dorsey from the company he helped build.

Dorsey, one of the tech world's biggest bitcoin cheerleaders, has spoken highly of bitcoin, crypto and blockchain technologygoing so far as to create a crypto division of his payments company Square to work on bitcoin development full-time.

Dorsey's Twitter bio currently reads, simply: #bitcoin

The bitcoin price has soared this year, boosted by excitement around the looming halving event and ... [+] global efforts to shore up the economy ravaged by coronavirus lockdowns.

Dorsey'sgrowing interest in bitcoin and cryptocurrencies has, however, caused him problems.

Dorsey attracted criticism from Twitter and Square investors last year whenhe promised to spend from three to six months in Africa to explore cryptocurrency opportunities in 2020. He has since cancelled the trip due to the coronavirus pandemic.

Silicon Valley's fraught relationship with bitcoin and cryptocurrencies has deteriorated in recent years as some of the world's biggest technology companies increasingly look toward financial services to bolster advertising revenue.

Toward the end of last year, Google sparked an ongoing war with the bitcoin and cryptocurrency community by removing many bitcoin and cryptocurrency videos from its video-sharing site YouTube in what was branded a "crypto-purge."

YouTube was quick to reverse most of the video removals, claiming they were made in error, however, crypto content has reportedly been targeted by attempts to limit the spread of false information amid the coronavirus pandemic.

See the original post:
Twitter Accused Of Shadow-Banning Bitcoin And Crypto Accounts - Forbes

Bitcoin? Ether? Ripple? Meh. During a month where cryptocurrencies zoomed, the lesser-known Tezos beat them all.

Tezos (XTZ), one of the largest and most prominent among a fast-growing roster of digital coins known as staking tokens, jumped 83% in April, the most among cryptocurrencies with a market value of at least $1 billion, based on data fromMessari.

You're readingFirst Mover, CoinDesk's daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You cansubscribe here.

Thats more than double the 37% gain for bitcoin (BTC), the largest cryptocurrency by market value, which benefited from speculation that aninflation hedge will come in handyas the Federal Reserve and other central banks inject trillions of dollars of emergency liquidity into the global financial system.

Ether (ETH) rose 62% alongside a surge in growth for U.S. dollar-linked stablecoins built atop the Ethereum blockchain, and as investor interest grew in the white-hot arena of decentralized finance. Ripple'sXRP, a payments token, rose 30%.

Staking tokens give holders the right to weigh in on a blockchains governance similar to the way shareholders vote for a companys board of directors while also giving them the ability to earn a share of newly minted tokens, in the manner of a dividend or bond coupon.

The strong performance of Tezos is likely in part due to increased investor interest in staking-based returns, said Joseph Todaro, managing partner atBlocktown Capital, an investment firm specializing in digital currencies.

Some cryptocurrency exchanges offer staking as a service to make it easier for investors to participate, and Tezos has benefited recently from new listings on the exchanges Bitfinex and Binance. Its been on Coinbase, another exchange, since last year.

Ethereum, whose native token ether is the second-biggest cryptocurrency after bitcoin, plans to upgrade to a staking model in July. Some analysts say ether has generated additional enthusiasm among speculators due to the transition to staking.

Tezos has doubled on a year-to-date basis, despitea bout of volatility along with bitcoin, ether and other tokens earlier this year.

One caveat for traders is that Tezos has a market value of just $2.1 billion, less than 1/70th of bitcoin. So Tezos has the potential for big losses alongside any fast gains, even when compared with the notoriously volatile bitcoin; in March, Tezos tumbled 41% as bitcoin slid 24%.

The price movement of any given crypto asset is partially dependent on current investing narratives, said Todaro.

Tweet of the day

Bitcoin watch

BTC: Price: $8,995 (BPI) | 24-Hr High: $8,9958 | 24-Hr Low: $8,415

Trend: Bitcoin is on the rise, having bounced up from its key average support early Friday.

The original cryptocurrency is trading near $8,995 at press time (updated), representing over 4% gains. Prices defended an ascending 50-hour average support during Asian trading hours.

The average has consistently restricted downside and reversed pullbacks in the recent rally that pushed bitcoin from $6,800 to $9,400. As a result, the immediate bias will remain bullish as long as prices are tradingabove the 50-hour average, which is currently at $8,751.

If the latest bounce from the average support ends up clearing the immediate resistance at $8,913, bitcoin will likely revisit $9,200.

While the hourly chart is reporting bullish conditions, the daily chart studies also show buyer exhaustion. It's possible there could be a break below the 50-hour average support, which would take bitcoin down to $8,500.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read the original here:
First Mover: Tezos Led Crypto Market With Twice Bitcoin's Gains in April - CoinDesk

Another week, another round ofCrypto Tidbits. Bitcoin has been one of the best-performing assets in financial markets over the past week, managing to rally as high as $9,500 over 25% higher where it started this week. Altcoins, interestingly, have underperformed the market leader, with Ethereum and XRP both gaining around 10% over the past seven days.

Cryptos strength this week comes as the stock market hasstarted to stagnate in the 2,800-2,900 point range, seemingly playing with the idea of a reversal as the economic outlook remains dismal, with a total of 30 million Americans filing for unemployment over the past month.

Jerome Powell, Chairman of the Federal Reserve, went as far as to say that the U.S. economy is currently in its worst rut in history due to the outbreak of COVID-19. The recovery will not be V-shaped, Powell added, asserting that it may take a while for life to return to pre-virus levels due to the long-lasting effects of the shutdown of the worlds biggest economic powerhouse.

Whatever the case, analysts are still bullish on Bitcoin.

Roch Rosenblum, the co-head of trading at GSR, remarked to Bloomberg that the ongoing BTC rally is predicated on the macroeconomic environment:

This latest run past$8,000is as much about positive macro sentiment as it is about the upcoming halving. Were starting to have a lot more certainty, as more countries begin to share their plans to reopen the economy in May.

Chart from Coin360.io

This optimism was echoed by Zac Prince, a co-founder of crypto startup BlockFi, who said that the current market dynamics are driving a bolstered interest [for] digital currency. These dynamics he was referencing was the Federal Reserves commitment to money printing and the growth in stablecoins.

Read more:
Crypto Tidbits: Bitcoin Hits $9ks, a16z Raises $500M Crypto Fund, Ethereum 2.0 Nears - newsBTC

Thanks in part to the uncertainty of the coronavirus crisis and rising bitcoin prices, bitcoin wallet startups have seen a sudden uptick in activity.

For example, over the past two months the Austin, Texas-based bitcoin startup Unchained Capital, with over $50 million in assets under management and $150 million worth of bitcoin transactions processed, garnered several dozen new institutional clients, representing hundreds of individuals. Will Cole, Unchaineds chief product officer, said the custody product Vault saw 340% growth in Q1 2020 as compared to the previous quarter.

Weve seen a big uptick in the creation of Vaults, Cole said. An event like that [pandemic] makes people think about how they are storing their bitcoin.

Unchained is working on a wallet update with new privacy features. It allows users to sort UTXO (unspent transaction output) information, which makes it possible to reveal less information about oneself to an external recipient, even while using a public blockchain.

Unchained adviser Christopher Allen, founder of the not-for-profit benefit corporation Blockchain Commons, said the industry still doesnt have clear terminology that distinguishes the Vault custody solution, where both Unchained and the client have keys to a multisig wallet versus wallets where only the user holds keys. Regardless, there appears to be increased interest in wallets where users hold keys, in some form.

Custody requires keys that are under your control or under collaborative custody with others. But it isn't self-sovereign if they can unilaterally block your recovery, Allen said. There are many other companies and teams involved who all desire to make multisig easier, more standard, and allow you to choose different approaches or implementations knowing that you are not locked into a single solution.

Such setups, like Vaults, make sense for companies and families that want to manage significant funds without a single person being in control of the wallet.

Not alone

These days many of the industrys large wallet businesses appear to be growing, in terms of both profits and users.

For more private options geared toward individual users, ShapeShift CEO Erik Voorhees said there are far more people using his software wallet solution this year. As such ShapeShift, acquired the Israeli wallet startup Portis for an undisclosed amount in April. This decreased the companys compliance risks and solidified its position in the industry's self-custody sector, slightly less lucrative than custodial crypto exchanges yet growing at a comparable rate.

This is the first recession the world has seen since cryptocurrency existed, Voorhees said. We want people to think of ShapeShift as the self-custody interface for all the various crypto services out there.

Like ShapeShift, Ledger CEO Pascal Gauthier, whose startup is scaling up to meet increased demand for hardware wallets, said his wallet will also allow users to do all the complex things you can do with a coin directly through the Ledger Live app.

We do see an increase in downloads of Ledger Live, our hardware wallet companion app, as we are adding more coins, Gauthier said. Nowadays, our main revenue comes from the hardware wallet business. Our revenue model will evolve to one-off revenues, transactional and recurring revenues thanks to additional services.

Revenue models

After several years of operation, many incumbent crypto companies now feel pressure to deliver returns for investors. Its unclear which business models will best suit the crypto economy.

Every day I think about acquisitions for a minute, then decide against it, Gauthier said. Ledger has enough money in the bank, a good business. Theres a question about where this industry is going and what does that mean for the future.

Unchained Capital earns revenue from clients who pay for the multisig Vaults or loan services associated with its open source wallets. The startup relies on subscriptions from a small number of wealthy clients for profits, even if it also serves less-lucrative retail users. On the other hand, ShapeShift profits from in-app referrals to exchanges and other services.

Voorhees said he acquired Portis because the startups tech allows for a familiar login, akin to Facebook Login, but where users need to actually remember their passwords.

Stepping back, Portis was founded in 2018 and attracted the attention of legendary Israeli tech investor Eddy Shalev. The Block reported Portis nearly shut down in Q1 2020, since co-founder Itay Radotzki quit in January and eight employees were subsequently laid off. Portis co-founder Tom Teman said the venture capital climate changed dramatically in 2020, a sentiment echoed by veterans across the industry, that investors are increasingly demanding revenue from the start.

(After publication of this article, Teman told CoinDesk that The Block had it wrong: only four staffers, including Radotzki, were let go, he said.)

Yet, a former Portis competitor, Fortmatic CEO Sean Li, said his user-friendly login startup isnt taking ShapeShifts approach because he doesnt think any business should see themselves as a portal that owns everything in it. As such his revenue model is business-to-business, rather than monetizing user activity. Li estimated nearly 5,000 developers now use Fortmatic for gateways to their various projects, so his early-stage startup is still on track to make more than $500,000 in revenue this year.

This prevents the next Facebook or Google situation where one account is associated with a lot of different applications, compromising user security and privacy, Li said.

On the other hand, Casa CEO Nick Neuman said his subscription-based startup saw an influx of new clients since the beginning of March, with a 50% increase in total bitcoin usage. Like Unchained Capital and other subscription startups above, Casa is primarily focused on bitcoin.

Were definitely seeing increased demand for self-custody since the coronavirus crisis began, Neuman said.

And where there is demand, there is opportunity.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Read more from the original source:
The 'Great Lockdown' Is Boosting Demand for Bitcoin Custody Solutions - CoinDesk

Bitcoin rallied to $9,500 before starting a downside correction against the US Dollar. BTC price might dip towards the $8,200 support zone before a fresh increase.

Yesterday, we saw a strong pre-halving rally in bitcoin above the $8,000 and $8,500 resistance levels against the US Dollar. BTC price gained more than 20% and it even tested the main target of $9,500 (as discussed yesterdays analysis using the daily chart).

A new monthly high is formed near $9,498 and the price recently started a substantial downside correction. There was a break below the $9,200 and $9,000 support levels.

Bitcoin even dived below the $8,800 level and tested the $8,400 support area. A low is formed near $8,405 and the price is currently trading above the 23.6% Fib retracement level of the recent decline from the $9,498 high to $8,405 low.

On the upside, an initial resistance is near the $8,800 level. There is also a short term declining channel forming with resistance near $8,800 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Above the channel resistance, the next resistance is near the $8,950. It is close to the 50% Fib retracement level of the recent decline from the $9,498 high to $8,405 low.

To start a fresh increase, the bulls need to push the price above the channel resistance and then clear the $8,950 resistance. A successful follow through above the $9,000 level could pump the price towards the $9,200 and $9,500 levels in the near term.

On the downside, the first major support for bitcoin buyers is near the $8,400 level. The next major support is near the $8,200 level or the 100 hourly simple moving average.

It seems like the price might dive towards the $8,400 support or the 100 hourly SMA to complete the current wave. Later, it is likely to start a fresh increase above $9,000 unless there is a close below $8,200.

Technical indicators:

Hourly MACD The MACD is about to move into the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently rising and it is near the 50 level.

Major Support Levels $8,400 followed by $8,200.

Major Resistance Levels $8,800, $8,950 and $9,000.

Go here to read the rest:
Bitcoin Could Correct Further To 100 SMA at $8,200 Before Fresh Increase - newsBTC

Stoners and gamers have turned to Bitcoin during the coronavirus lockdown, as web-based sales of both essentials increased during the pandemic.

Revenue for video game and cannabis sales using bitcoin saw a 50% increase among the 100 e-commerce merchants surveyed by Blockonomics. The research states:

Cannabis orders are up: people are buying more weed than ever, with revenue up over 50%. I mean, what else are you going to do at home?

Likewise, the lockdown has also turned people towards video games as a means of distraction. The data do not specify whether the people buying cannabis were the same people buying video gamesbut experience suggests there might be a slight overlap.

Two other business sectors also saw an increase in bitcoin-based sales web-hosting, and nutritional supplements. The Blockonomics article states:

Nutritional supplements also saw an increase of revenue of up to 50%, as people continue to look for alternative ways to stay healthy (possibly in response to empty food shelves at the grocery store).

While web-hosting services saw a marked increase in revenue, the same cannot be said for all digital products. In fact, 75% of respondents said they witnessed a decrease in bitcoin-based revenue during the lockdown.

No website that offered digital products saw an increase in revenue, 25% of respondents reported no change in revenue, while the remaining 75% saw decreases.

So even though everyone is staying home, that has not manifested in a transparent boost to typical digital products. As the article speculates, this can likely be explained by people putting a greater focus on buying essential physical goods, which are at threat of being lost in a potential supply-chain slowdown.

Almost half of the store owners surveyed revealed they were holding on to any bitcoin they received, while over 10% said they were continuing to buy even more. The article states:

Our e-commerce store owners continue to be major believers of Bitcoin: 44.9% of the respondents have decided to hold on to 100% of their Bitcoin during this time, with 10.2% additionally buying Bitcoin.

So, as gamers and cannabis users continue to part with their BTC, store owners are only too happy to hold on to it. That might have something to do with bitcoins 102% increase in value over the past month and a half.

This article was edited by Sam Bourgi.

See the rest here:
Covid and Chill? Bitcoin Used to Buy Weed & Video Games Amid Lockdown - CCN.com