Tag Archives: bitcoin

Bitcoin’s Bull Run May Now Immediately Follow Halving, Jihan Wu Says

Bitcoin's Bull Run May Now Immediately Follow Halving, Jihan Wu Says

Bitmain co-founder Jihan Wu expects the bull run on bitcoin prices to be delayed following May's Halving.Wu is bullish on bitcoin's outlook, in light of government economic bailouts in response to the Coronavirus pandemic. 

Bitmain co-founder Jihan Wu says the bull run for bitcoin prices may not come immediately after the halving event in May.

Wu, who co-founded and served as CEO of mining rig manufacturing giant Bitmain before stepping down last year, told 8BTC the price run for bitcoin will likely be delayed following the halving. Wu said he was positive about the future of bitcoin, and explained that recent economic policies such as government “quantitative easing” packages could lead to crypto-assets becoming more valuable. Despite the potential, Wu cautioned that bitcoin has a price top like any other asset and would undergo periods of fluctuating growth. 

He said, 

As bitcoin’s market cap grows, its volatility decreases and becomes more stable. That means we may not see abrupt spikes in its price. No matter how high bitcoin goes, one day it will reach a top. Before that, it will see prices [with] flatline growth with some twists in the next few years.

He continued, 

I think the bull this time around may not come immediately after the halving. There likely will be a delay in time.

Wu also disputed the notion that bitcoin serves as a “safe haven” asset against traditional market volatility. Instead, he argued that bitcoin has become intertwined with the broader financial market and responds to similar impacts on global economic stability.

Article Produced By
Michael LaVere

Mike is a financial and cryptocurrency journalist for CryptoGlobe covering the industry since 2017. Mike is an alumnus of the University of North Carolina Chapel Hill.

https://www.cryptoglobe.com/latest/2020/03/jihan-wu-bull-run-may-not-come-immediately-after-bitcoin-halving/

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Biggest Bubble in the Economy Isn’t Bitcoin (BTC) – It’s the Bond Market: Max Keiser

Biggest Bubble in the Economy Isn’t Bitcoin (BTC) – It’s the Bond Market: Max Keiser

TP

Bitcoin Stalls in the Mid-$6,000s as Stock Market Rally Continues

For over 48 hours, Bitcoin has flatlined — establishing a tight, less-than-10% range in the mid-$6,000s.

This comes after BTC embarked on a 25% rally from the $5,000s to a price as high as $7,100 that transpired this weekend and early this week, which coincided with a smaller but equally-as-notable increase in the value of gold. Bitcoin’s lack of direction comes as the stock market has rebounded hard. Really hard. Since the bottom near 18,000 points, the Dow Jones Index has rallied to 21,780 as of the time of writing this, marking a jaw-dropping recovery of 20%. Global indices have reflected this move, rallying almost as hard as the Dow.

This surge comes despite record-level unemployment claims around the world; in fact, numbers released Thursday morning revealed that 3.3 million Americans have filed for unemployment over the past week, which is four times higher than any previous record of this metric, and seemingly a sign that Great Depression-level unemployment is a possibility. So, it seems that Bitcoin seems to be mostly nonreactive to news regarding traditional markets or traditional markets themselves, leaving many wondering what’s next for the cryptocurrency.

Bearish Below $8,000

Despite the rally, most seem to be convinced that this is but a deviation from the $5,000s, where a majority of analysts expect Bitcoin to accumulate around prior to a bull market breakout. Indeed, in a recent analysis published to TradingView,  cryptocurrency analyst Filb Filb explained that as long as Bitcoin remains below $7,000 and $8,000, it is leaning bearish. He cited the fact that there exists likely the “worst cluster of resistance seen since the bear market of 2018” at $8,000:

  • The 200-day moving average.
  • The 100-day moving average.
  • The 50-day moving average.
  • The 20-month moving average.
  • Bitcoin’s 61.8% Fibonacci Retracement of the February high to the $3,800 bottom.
  • And the yearly pivot level.

Furthermore, Nunya Bizniz on March 26th noted that Bitcoin’s weekly candle is currently below the bottom band of the non-linear regression curve that has acted as support for Bitcoin for over eight years of price action, suggesting that the BTC’s secular growth trend may be coming to an end, at least for the time being.

Long-Term Outlook is Anything But Bearish

Some have ignored the short-term directionality entirely, arguing that whether it be $4,000 or $7,000, Bitcoin’s fundamental strength is only growing. Per previous reports from Blockonomi, Galaxy Digital founder Mike Novogratz told CNBC on Monday that he has been buying the dips in both gold and Bitcoin for one key reason: central banks have started to “run amok” with their policies amid these times of economic distress.

He explained further:

If there was ever a time — debasement of fiat currencies, monetization of trillions of dollars of debt, this is the time for Bitcoin.

This was echoed by Placeholder Capital’s Chris Burniske, the analyst who coined the term “crypto-assets.” He wrote on Twitter that this crisis “will pass, and crypto’s fundamentals will have strengthened through it.” Burniske highlighted how “new technologies rise as old systems break, and often it takes a crisis to reveal the flaws of the old system in full,” presumably referencing the issues fiat money and financial markets have seen as they’ve come under the record-level economic stress posed by the coronavirus outbreak.

Article Produced By
Nick Chong

Since 2013, Nick has shown interest in Bitcoin and cryptocurrencies. He has since become involved in the industry as a full-time content creator, working for NewsBTC, Bitcoinist, LongHash, among other outlets. Aside from covering the news, Nick is a Creative at Taiwanese technology company HTC.

https://blockonomi.com/bitcoin-stalls-in-the-mid-6000s/

 

TP

Coronavirus, the Halving and a Price Drop: Bitcoin Mining Marches On

Coronavirus, the Halving and a Price Drop: Bitcoin Mining Marches On

mining and coronavirus

CoinShares, a Jersey-based asset management firm with offices in London and New York

that provides advice and other services for investors, released a statement on the state of Bitcoin mining during the global uncertainty caused by the coronavirus, ahead of a planned, more thorough June 2020 mining report. In it, CoinShares’ research director Christopher Bendiksen wrote that the current talk of a possible mining “death spiral” due to coronavirus-based lockdowns makes for dramatic reading, but is not at all based in reality.

“‘Mining death spirals’ do not actually happen in real life,” Bendiksen wrote in the statement. “They are highly theoretical edge cases without any historical real-world precedent … Mining is here to stay.” Confidence in the mining space and in bitcoin generally, despite economic uncertainty around the world, is high at the firm. “Bitcoin is arguably the only financial asset that can operate remotely — nobody needs to go to work to make bitcoin work,” Danny Masters, executive chairman of CoinShares, wrote in a supplementary statement sent to Bitcoin Magazine. “Nobody needs to fill an ATM machine. While things look bleak for everything, I can’t think of a better asset to buy than bitcoin.”

Difficulty, Block Frequency and Hashrate

The cost of Bitcoin mining is largely a function of the difficulty — a dynamic metric determined by the protocol itself that can adjust both up and down to keep block times at 10 minutes on average. The difficulty has reset downwards many times — sometimes dramatically as the result of a pullback in price, as in November and December of 2018 — but the network has never ground to a complete halt or even come anywhere close to doing so. “There is no price level that could cause Bitcoin’s emission rate to increase,” reads Benedickson’s statement. “When the dust settles on the current financial crisis, the Bitcoin monetary system will have created exactly as many bitcoins as originally intended.” In essence, the Bitcoin mining difficulty adjustment keeps Bitcoin block frequency steady, no matter the amount of total network hashrate.

What About the Halving?

“If prices do not recover, the hashrate will fall — and when the halving hits, it will fall again,” wrote Bendiksen. “This is not a problem for Bitcoin, nor is it unprecedented.”  And it’s not always the biggest bitcoin mining groups that will survive a major bitcoin price recession, contrary to what you may be hearing. It will be the groups that have the cheapest energy costs and the newest, most efficient hardware. “The halving is still a couple months away and many miners are already closing up shop,” Bendiksen said in a follow-up interview with Bitcoin Magazine. “So, at the time of the halving, we will likely be in a completely different difficulty environment than now. Recent estimates show that as much as 25 percent of the peak-level hashrate may already have been turned off.”

While CoinShares suggests that post-halving mining will be different than the current and near-future mining environment, Bendiksen does believe today’s status offers an insightful window. “For all of those who are worried about the halving, this is a perfect prelude because the end effect on miners is the exact same,” he wrote in his statement. “Hence, the hashrate dynamics we’re likely to see in the upcoming weeks will be an excellent parallel to those we might also see after the halving in May.” Bendiksen acknowledged that some of the higher-cost miners may drop out after the halving, but he also sees mining companies stabilizing and building for the foreseeable future.

Building the Mining Infrastructure of the Future

Meanwhile, Blockstream Mining is quietly building its mining business with facilities in Quebec, Canada and Georgia, USA, with over 300 MW of energy and a thriving colocation service offering equipment, space, bandwidth and power rental for miners who can benefit from inexpensive energy without needing to negotiate separately with local authorities. According to Blockstream CSO Samson Mow, the company has taken steps to be ready for the halving, come what may. Despite the current turmoil, it is focused on the long term. “For Blockstream’s mining operations, our electricity and operational costs are low enough that we can outlast most miners and be the last ones standing,” Mow told Bitcoin Magazine in an interview. “Also, we’ve mined bitcoins for quite some time and we HODL for the medium term, so a price drop during the halving would actually have no impact for us.” Mow noted that, while it’s hard to predict the price, he believes some inefficient miners may need to shut off, while most miners will be fine through the halving.

“I think the bitcoin price will recover to a point where, post-halving, it will still be profitable to mine BTC,” Mow said. “Even if that doesn’t happen, it’s not likely we will see a massive drop in hashrate. Many miners are already on the latest generation of equipment and have already recouped those costs, so they only have to deal with opex [operational expenditures].” CoinShares, a Jersey-based asset management firm with offices in London and New York that provides advice and other services for investors, released a statement on the state of Bitcoin mining during the global uncertainty caused by the coronavirus, ahead of a planned, more thorough June 2020 mining report. In it, CoinShares’ research director Christopher Bendiksen wrote that the current talk of a possible mining “death spiral” due to coronavirus-based lockdowns makes for dramatic reading, but is not at all based in reality.

“‘Mining death spirals’ do not actually happen in real life,” Bendiksen wrote in the statement. “They are highly theoretical edge cases without any historical real-world precedent … Mining is here to stay.” Confidence in the mining space and in bitcoin generally, despite economic uncertainty around the world, is high at the firm. “Bitcoin is arguably the only financial asset that can operate remotely — nobody needs to go to work to make bitcoin work,” Danny Masters, executive chairman of CoinShares, wrote in a supplementary statement sent to Bitcoin Magazine. “Nobody needs to fill an ATM machine. While things look bleak for everything, I can’t think of a better asset to buy than bitcoin.”

Difficulty, Block Frequency and Hashrate

The cost of Bitcoin mining is largely a function of the difficulty — a dynamic metric determined by the protocol itself that can adjust both up and down to keep block times at 10 minutes on average. The difficulty has reset downwards many times — sometimes dramatically as the result of a pullback in price, as in November and December of 2018 — but the network has never ground to a complete halt or even come anywhere close to doing so. “There is no price level that could cause Bitcoin’s emission rate to increase,” reads Benedickson’s statement. “When the dust settles on the current financial crisis, the Bitcoin monetary system will have created exactly as many bitcoins as originally intended.” In essence, the Bitcoin mining difficulty adjustment keeps Bitcoin block frequency steady, no matter the amount of total network hashrate.

What About the Halving?

“If prices do not recover, the hashrate will fall — and when the halving hits, it will fall again,” wrote Bendiksen. “This is not a problem for Bitcoin, nor is it unprecedented.” And it’s not always the biggest bitcoin mining groups that will survive a major bitcoin price recession, contrary to what you may be hearing. It will be the groups that have the cheapest energy costs and the newest, most efficient hardware. “The halving is still a couple months away and many miners are already closing up shop,” Bendiksen said in a follow-up interview with Bitcoin Magazine. “So, at the time of the halving, we will likely be in a completely different difficulty environment than now. Recent estimates show that as much as 25 percent of the peak-level hashrate may already have been turned off.”

While CoinShares suggests that post-halving mining will be different than the current and near-future mining environment, Bendiksen does believe today’s status offers an insightful window. “For all of those who are worried about the halving, this is a perfect prelude because the end effect on miners is the exact same,” he wrote in his statement. “Hence, the hashrate dynamics we’re likely to see in the upcoming weeks will be an excellent parallel to those we might also see after the halving in May.” Bendiksen acknowledged that some of the higher-cost miners may drop out after the halving, but he also sees mining companies stabilizing and building for the foreseeable future.

Building the Mining Infrastructure of the Future

Meanwhile, Blockstream Mining is quietly building its mining business with facilities in Quebec, Canada and Georgia, USA, with over 300 MW of energy and a thriving colocation service offering equipment, space, bandwidth and power rental for miners who can benefit from inexpensive energy without needing to negotiate separately with local authorities. According to Blockstream CSO Samson Mow, the company has taken steps to be ready for the halving, come what may. Despite the current turmoil, it is focused on the long term.

“For Blockstream’s mining operations, our electricity and operational costs are low enough that we can outlast most miners and be the last ones standing,” Mow told Bitcoin Magazine in an interview. “Also, we’ve mined bitcoins for quite some time and we HODL for the medium term, so a price drop during the halving would actually have no impact for us.” Mow noted that, while it’s hard to predict the price, he believes some inefficient miners may need to shut off, while most miners will be fine through the halving. “I think the bitcoin price will recover to a point where, post-halving, it will still be profitable to mine BTC,” Mow said. “Even if that doesn’t happen, it’s not likely we will see a massive drop in hashrate. Many miners are already on the latest generation of equipment and have already recouped those costs, so they only have to deal with opex [operational expenditures].” 

Investors Are More Cautious But Still Interested in Bitcoin Mining

Ryan Porter, head of business development for mining-focused financial services and brokerage firm BitOoda, was busy fielding inquiries about new North American mining opportunities in December 2019. Now, he said, he’s still getting inquiries but potential mining companies are more cautious and want to lock in competitive energy pricing. “Overall, what we’re seeing is the miners that were well positioned to be profitable after the halving are still well positioned now, where the miners that would have needed to shutter operations have had to fast track those plans,” Porter told Bitcoin Magazine in a phone interview. “We’ve seen hashrate fall precipitously as now unprofitable mining rigs are being taken offline, and conservative operators who were thoughtful about managing their bitcoin price risk are now looking to purchase hardware at distressed prices.”

Porter is confident that the best-managed mining operations that have inexpensive power sources and efficient computers will survive the halving. What he’s seeing is the next stage in the evolution and maturation of the mining industry. “Where we are starting to see a change in planning for miners is how they’re approaching risk management,” he added. “We had previously engaged with miners on implementing BTC price-hedging programs, and we’ve had quite a few of those firms reach out to us over the past week to start a meaningful risk management engagement.”

The CoinShares team is confident that bitcoin and its critical mining industry will ride out the coronavirus storm. In his interview with Bitcoin Magazine, Bendiksen noted that, unlike the fiat monetary system, the bitcoin system is “run coldly and unemotionally by a network of computers according to pre-set rules.” “These computers never need to work from home, never get sick, scared or panicked and can not be influenced to print money by charismatic or powerful politicians, even in the most challenging times,” he said. “They simply execute their code as prescribed, no matter what is happening in the world.”

Article Produced By
Jessie Willms

Jessie Willms is a planet earth based former government and political researcher and communications officer helping to document the FinTech revolution and its impact on traditional institutions and governments.

https://bitcoinmagazine.com/articles/coronavirus-the-halving-and-a-price-drop-bitcoin-mining-marches-on

TP

COVID-19 Causes Bitcoin Value Drop to $4000 Starting a Zig-zag Action Could Set a Three Month Lateral Market

COVID-19 Causes Bitcoin Value Drop to $4000 Starting a Zig-zag Action Could Set a Three Month Lateral Market

COVID-19 is making its way around the globe, so markets have been shedding value at a fast pace.

Bitcoin value is not immune to this as it has disrupted people’s normal activities which can include trading online. Bitcoin shines in that unlike cash and many fiat transactions everything can be done without handing over cards or exchanging paper/plastic money covered in germs. Contactless payment, send and receive without ever having to be face to face. Much fiat is also digital but still relies on cards, checks, and cash for the final exchange in many cases.

All markets are going to be volatile as the world goes towards finding out just how COVID-19 will affect people. This uncertainty along with people not being able to go to work in many cases will keep this trend going. It will continue until there is more information on the long-term effects on humanity.

Long-term Analysis

Trends dropped the price to the $4000 support level, as the distribution area settled above $7000 consolidating in the sell-off the range. After quotes and technical indicators synchronized, volatility should arise in a zig-zag pattern. Following Elliott Wave Theory, the action should bring values back up to $6500. As international trade gears back to normal business, external factors and news will bring a natural integration of Bitcoin into global portfolios as an accepted asset. On the other hand, when the bullish sentiment gets back, values would go lateral between $4500 and $6500. Continuing until halving happens in May.

Mid-term Analysis

After dropping to $4000 support levels, prices could balance as offer plus demand forces start a new side-ways movement. The movement could run between $4500 and $6500. According to Gann Angles Theory, the first movement took quotes to $5500. Some corrective movement would be expected. If this forecasting is confirmed, a new lateral market would balance the trend for about three months. Preparing a bullish breakaway signal for April after the halving, when prices should try to overcome the mentioned resistance. If backed by good News and possibly some new global trade scenario, which could include Bitcoin as part of institutional financial tools to be in consideration.

Short-term Analysis

The Japanese Candlestick fairy Analysis confirmed that the crows got stronger than ever, kicking the demand soldiers out from the last fairy battlefield. This battlefield is defined between $8000 and $10000, going directly to $4000, to end the 5th Elliott´s bearish wave. Following the same theory and backed on Fibonacci retracement numbers, the next stage could be a zig-zag ABC pattern to the upside.

It should have prices heading near $6500. An intermediate sustaining area arises as plenty of volatility is starting, to wait on halving before Soldiers reorder themselves to clash against the crows. Doing this they might have a chance to prevail. The technical indicators finally synchronized with prices. Even with those grounds, they are only available to defend $4000 levels as support. Forcing crows to enter a new battlefield for 3 months, between $4500 and $6500. Please keep safe while COVID-19 sweeps the world. The markets will be volatile and keep being that way for the next few months. The bitcoin miner reward halving is also going to have an impact in the near future. When the emission rate of new coins is halved it should have a positive effect on bitcoin value. Yet keep in mind it’s effects may be muted for months until the world finds it’s new normal in living with this new virus.

Article Produced By
Ramiro Burgos

Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications.

https://bitsonline.com/covid-19-causes-bitcoin-value-drop-to-4000-starting-a-zig-zag-action-could-set-a-three-month-lateral-market/

TP

Bitcoin Prices Losing Strength as COVID-19 Slows World Economies

Bitcoin Prices Losing Strength as COVID-19 Slows World Economies

Bitcoin prices are losing strength as news turns neutral and international trade slows due to external factors.

This drop could be fallout from the financial market slump due to COVID-19 virus stalling world economies.

Long Term Analysis

The trend could head to $8000 support, during current zig-zagging distribution action. Volatility should be much less while international trade slows down. Present sell-off professional anticipation explained last week, would speed values to lower levels if we add to the analysis of some external factors. These factors may confuse venture decisions in favor of traditional financial refuges like gold or commodity. At the same time, the current COVID-19 crisis introduces crypto to consideration at every decision table, officially sowing the topic with Institutional Investors mid and long terms. External factors like news, personal opinions from YouTubers and several financial reports, suddenly stopped stimulating the general sentiment by announcing bullish forecasting. A consensus has declined to leave the quotes floating like ducks at a shooting gallery. To sustain the bullish mood, values would step back to $8000 or below, synchronizing prices with all development theories.

Mid Term Analysis

The trend started stepping back below the current level, due to every technical indicator that had arrived already to their bottom limits. The bottom limits leaving prices alone and drifting at a distribution area. The good news is gradually disappearing among global trending. Values could drop below $8000. Thus delaying the wishful thinking of a chance to bounce back and go up across the distribution area to overcome $10000 shortly. Several development theories consider a bearish correction is in process. If the trend confirms, it will coincide with halving´s now available offer and should delay any rise chance to next quarter.

Short Term Analysis

While several development theories driving down the trend, the Japanese Candlestick offer´s crows got stronger boosted by Fibonacci retracement numbers. They kicked demand´ soldiers out from the fairy battlefield defined between $8000 and $10000 while following Elliott´s 2nd Wave. When the soldiers arrive at $8000, they could try to re-organize to strike back from support and re-enter the action. Yet victory does not seem to be in sight even there.

With the logistical advantage of the technical indicators on their side to support a dignified defense of that level. A lateral market would emerge and it hardly should stay near $7500 waiting while halving´s renewed offer strengthens the crows to send the action possibly below $7000. The lateral move is reinstalling the former battlefield we have seen during December 2019. On the other hand, bad global news and political factors like a breaking war and the COVID-19 virus could reinforce the demand soldiers from $7500 to intermediate levels and drive prices to higher levels.

Article Produced By
Ramiro Burgos

Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications.

https://bitsonline.com/bitcoin-prices-losing-strength-as-covid-19-slows-world-economies/

TP

Top Bitcoin OTC Brokers: Trade Large Volumes

Top Bitcoin OTC Brokers: Trade Large Volumes

 
  • Do you want to buy a large volume of Bitcoin?

  • Do you want to sell a lot of Bitcoin?

Read on.. as this is going to be interesting. As we all know, there are more ways than one to buy Bitcoins and other cryptocurrencies. Popular options are buying the cryptocurrencies using cryptocurrency exchanges like Binance, CEX etc. But there is one more way, not as popular and feasible though. Wondering why so? Well, we’ll get to it later, but this new way is called Over-The-Counter (OTC) trade of Bitcoin.

What Is Bitcoin OTC?

For those of you who aren’t familiar with the term OTC, here is a simple Wikipedia description of the same: Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with crypto exchange trading, which occurs via exchanges. A crypto exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price. In an OTC trade, the price is not necessarily published for the public. OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivatives of such products. 

In the realm of cryptocurrencies too, Bitcoin and other popular cryptocurrencies are traded over the counter where only two parties are involved. But this option isn’t for everyone. By everyone I mean the small retail investors. To use the OTC trade for Bitcoin, one needs to be a High Net Worth Individual (HNI) or an institution which is willing to buy/sell BTC in huge volumes (at least $100,000 or more). There are special purpose OTC exchanges or brokers from where one can execute an OTC trade for cryptocurrencies.

Why Crypto OTC? What are the benefits?

OTC trades, in general, are carried out so that one can buy/sell a stock, commodity or crypto asset quickly without moving the market much. Let us say you want to buy 500 BTC ($3,173,810) on Binance and you placed an order. But it has the liquidity of only 250 BTC. What happens then? Any guesses? (Assumption: there are 250BTC available in your buy price range) Well, your order will be filled partially, plus your order will decrease the supply of BTC on the Binance market and therefore the price will naturally move high. Also, your order is not filled in your price range and the price has increased which is counter-intuitive to you.

The same scenario can happen when you try to sell 500 BTC incurring significant losses if the market price goes way beyond what you quoted for. In that case, you would need to HODL or just sell it for a lower price range because your huge order has moved the market. And when stocks market, a very huge market with liquidity follows OTC trades for HNIs and Institutions then why not for the crypto market which is so small in comparison to other markets Crypto market is very minuscule as compared to the world’s financial markets. To put into perspective look at this chart to understand where the crypto market stands: So it is much likely that this kind of market will be moved with a million or two dollars that’s why OTCs are must have here.

Best Bitcoin OTC brokers: Buy large quantities of Bitcoin Through OTC

As I shared with you previously, Bitcoin OTC is not for everyone and honestly, it is not a child’s play. Not only you need to be HNI or Institution which is willing to deal in OTC but one needs to be highly experienced to execute such a trade. If you are not, the brokers or OTC platform that you use will outplay you to make higher profits. After all, trading is a zero-sum game. You win some, you lose some. That’s why there is a lot of skill that goes in while executing OTC trades. We will discuss those later but for now here are some of the services/brokers that HNIs and Institutions can use right now for executing BTC OTC trades:

1. Kraken OTC exchange:

Kraken is one highly reputed OTC broker that facilitates OTC trading.  You need a verified account on Kraken to use the OTC feature. As of 2020, here is the outline of the Kraken OTC trading feature:

Requirements:
1. Possess Pro (formerly Tier 4) verified Kraken Account.
2. We always second settle.
3. Bank wires must always match the Kraken Account name.
4. USD 100k minimum trades.


Process:
- We set up chat on Whatsapp (preferred for security reasons but can accommodate Skype or Telegram) with all the traders.
- There you may ask for live quotes.
- If you agree with price, you say "done" and we confirm with "done". If you disagree, "pass" to decline and ask for refresh when ready.
- If done, we will send an email confirmation. You reply all with "done" along with your crypto address or bank wire information.
- Once replied we submit to back office to initiate settlement. Completion of settlement may take 2-24 hours depending on the time of day trade is executed.


Pricing:
- There are no discounts, we will always bid below and offer above market. However, the quotes will generally be inside the spread of the order book.
- There are no fees, prices quoted are all-in.
- We are able to trade pairs listed on the exchange.
- Small ticket fees of 1.5% and 1% apply to trades between USD 10-50k and 51-99k respectively.

Funding:
- We are able to send and receive USD wires globally but EUR funding goes through the Kraken exchange interface as usual.
- Initially your trades must be pre-funded. I.e. they must be in your Kraken account or you must have sent them to the OTC account. Once we have trades under our belts and have built a relationship, we can
discuss daily settlement.
  1. Huobi: Available pairs BTC, ETH, USDT, EOS, HT
  2. OTCBTC: Available pairs BTC, ETH, LTC, EOS, BCH, NEO, QTUM, ZEC, USDT and more
  3. HiveEX: Available pairs BTC, ETH, XRP ($200,000 to $10 Million)
  4. itBit: Available pairs BTC, ETH, LTC, BCH, XLM Minimum order size of $100K (or equivalent)

Since 2019, more players have emerged in this space as cryptocurrencies have really taken off in the last year and a half. But just knowing these services isn’t enough as you need to go through a thorough KYC check to be considered seriously.

Some more important points to remember if you trade Bitcoin on OTC…

  • When you want to do an OTC trade do not do window shopping from brokers 1-2 days before the actual date of the trade. Instead, start before a week or so, so that the information that you gave to them isn’t much worthwhile to impact the market on the day of your actual trade.
  • Always ask for both buy/sell prices when indulging in an OTC trade so that it is harder for the broker to front run you.
  • Don’t let your broker take advantage of your behavioral patterns and don’t inquire about crypto at fixed date and time. Instead, be unpredictable and random.
  • Do OTC trading in a slow market instead of a volatile market.
  • Do not buy/sell the whole target amount of BTC you want to trade.

Conclusion: Over The Counter Crypto Trading

Over the counter, trading isn’t transparent as much as trading on centralized exchanges. That’s why I have listed some of the DOs and DONT’s in the above section. But if you are someone who is planning to buy crypto worth of $100,000 from crypto exchanges then this can be detrimental for you, if not done properly. So instead, you take the pains of learning the basics of OTC trades and then try to make a trade with the DOs and DONT’s we have shared with you.

What about money laundering and criminal activity with OTC trading?

This is a legit risk, and the only way to counter this issue is by working with only those crypto OTC brokers who do proper KYC, and due diligence from both buyer and seller.

Will OTC brokers accept cash?

In many jurisdictions, OTC broker does accept cash. However, you may be asked to produce proof of funds.

Is Bitcoin OTC in China & Hong Kong legal?

As Chinese government has banned cryptocurrency exchanges, OTC brokers have been the driving force of crypto buying/selling in China.

Article Produced By
Editorial Staff

A team of Blockchain and Cryptocurrency experts lead by Harsh Agrawal. Trusted by over 1.1 million readers worldwide.

https://coinsutra.com/bitcoin-otc-brokers/

TP

How To Sell Bitcoin Hassle free (5 Easy Steps for 2020)

How To Sell Bitcoin Hassle free (5 Easy Steps for 2020)

 
  • Wondering how do you sell your Bitcoin?

  • Want to cash out your Bitcoin for fiat currency like USD, Euro, Dinar, SGD or any other?

And, should you sell all of your Bitcoin or just a part of it? In this guide, I will help you find answers to all the above questions and other which are related to selling Bitcoin. There are many ways for selling Bitcoin, and you should pick a method based on factors such as:

  • How many Bitcoin you want to sell
  • How soon you need your money
  • Which country you are from
  • Do you want to money in cash or in bank account.
  • Do you want to use something like PayPal to receive funds?

And a few other factors decide which route should you take. I have shared different ways by which you can sell Bitcoin, along with a list of websites that could pick based on your country. At the end of this guide, you will find many questions, and answers related to selling Bitcoin. A lot of our users have found this section highly useful, as it helps in answering unanswered questions.

First thing first…

5 Simple Steps to Sell Bitcoin:

Step 1: Find a Website:

There are a lot of Bitcoin selling websites available on the internet, and a few of them provide high liquidity, the best price, and enough trust. And, this is why the first step for you is to find reliable Bitcoin exchanges.

There are a few important things to know:

  • The Bitcoin selling website should support your country bank account
  • The website should have enough trust, else it put you into counterparty risk.
  • It should have a pair for your country currency and Bitcoin. Ex: BTC/USD, BTC/AUD, BTC/SGD, BTC/INR
  • The volume should be good enough to ensure you get the best-selling price
  • The fees should be low.

Here are the list of authentic websites that sells Bitcoin for various countries. If you don’t see your country in the list, let me know and I will add it into the list. Pick the one that is nearest to your country.

Country Trusted Websites
Global CEX
Localbitcoins
Coinbase
USA ???????? CEX (Preferred, easy to use)
Binance.us
Coinbase (High fees, trustable)
Australia ???????? Binance
CoinSpot
India ???????? WazirX
Singapore ???????? CEX
Binance.SG
Malaysia ???????? Localbitcoins
United Kingdom ???????? CEX
Dubai Bitcoin Selling Website ???????? Localbitcoins
Ghana ???????? Localbitcoins
Nigeria Binance
Turkey ???????? Binance

A lot of above websites, let you receive money via bank transfer, PayPal, Payoneer, and other methods. In the further section of this guide, I have discussed different ways by which you or anyone cal start selling their Bitcoin portfolio. For now, lets learn all the steps, which should take care of needs of majority of our readers.

Moving on…

Step 2: Create your account

Once you have found the website (above) that supports your country, setup an account. This process could take anywhere between 5 minute to 2 days. It all depends on your country or residence, and website that you are dealing with.

For example, lets pick CEX.io for this example ( Read CEX.io review here).

Here is what you need to do:

  • Create an account CEX
  • Complete the verification process

If you want to sell a small amount of Bitcoin, you should be able to sell Instantly. However, for large volume, you may need to get upper tier verification, that could take 1-2 days. (More on this, in the next step). A lot of them would ask you to setup 2 factor authentication. This process is useful to secure your account, as you would be adding Bitcoin to their wallet.

Learn:

  • What is 2-factor authentication (Opens in a new tab)
  • How to set up 2-factor authentication using Google authenticator (Opens in a new tab)

Step 3: Transfer Bitcoin to the website wallet

Now, under the wallet section of the website, you will find your unique Bitcoin deposit address. You can transfer your Bitcoin to the wallet, and usually this could take 5-50 minutes for the transfer to be done.A word of caution: If you are doing something like this for the first time, you should transfer just a fraction of Bitcoin. Ex: 0.01 BTC. 

Step 4: Put a sell order

Once you received the Bitcoin in the wallet, simply place a sell order. You could sell the Bitcoin at the current price. Most of these websites have an easy to use screen for you to place sell order.

Step 5: Cash out funds

Once you are done selling Bitcoin, you will have the fiat currency in your wallet. Now, you can withdraw the funds directly to your bank account, or other accounts such as PayPal, and others. This process could be done immediately or could take 1-2 days, depending upon your country, and website policy. Over all, selling Bitcoin constitute of only these 5 steps. These steps will be more or less similar across, and medium that you use. Now, let’s look at some of the popular ways by which you could sell your Bitcoin.

How to sell Bitcoin offline:

You could sell it offline in your network or via P2P method. You can check the current Bitcoin price in your country, and sell at the same price to interested buyer. You can also use platforms like Localbitcoins or Paxful to sell your Bitcoin offline. These are P2P platform, which connects Bitcoin sellers with buyers. However, when dealing with cash and selling it offline, comes with its own risk. So, you need to be careful.

  • Meet the buyer at a public place in broad daylight.
  • Do not exchange unrequired personal details when you meet with the seller.
  • Wait for the transaction to confirm at least twice. I usually wait for 3-4 confirmations. Sometimes it takes about 5-15 minutes for the transaction to confirm multiple times.

How to sell large volume of Bitcoin:

If you are not in hurry, and looking to cash out a huge amount of Bitcoin, you should use a Bitcoin OTC broker. These is a service offered by exchanges for whales like you to sell large amount of Bitcoin without impacting the market, and help you get the best possible price. You can read my earlier guide on “Bitcoin OTC brokers” to learn more about this.

How to Sell Bitcoin on CoinBase:

CoinBase is a popular website used by millions to sell Bitcoin. You could sell Bitcoin for money, and withdraw funds using ACH or Wire transfer.Here is how to you could cash out Bitcoin on CoinBase:

  • Head over to Coinbase.com
  • Create an account
  • Deposit your Bitcoin

Click on trade, and select BTC and USD pair to trade your Bitcoin for USD. Usually, this will take 2-3 minutes, and the funds will be in your Coinbase account. From here, you could withdraw the funds to your bank account using Coinbase. Here are a few more hand-picked ways that you should check out:

  • How to sell Bitcoin for PayPal
  • Best Ways to convert Bitcoin into Cash

Now, lets look at some of the questions which are asked by CoinSutra community members via email. Chances are your unresolved queries related to selling Bitcoin should be resolved via below Q&A. In case if it is not, feel free to ask it via comment section below.

Can you sell Bitcoin immediately?

Yes, you can sell Bitcoin within seconds, and some listed websites let you receive the money in a few seconds. When using P2P method like Localbitcoins, Paxful, you could receive money instantly.

Is it Illegal to Sell Bitcoins for Cash?

No! It’s not illegal to sell Bitcoin for cash. You could definitely sell Bitcoins for cash, however, if you are doing large volume of selling for cash, you need to check with your country law. Certain countries does not allow huge cash transactions.

How many bitcoin can you sell at once

There is no upper or lower limit when it comes to selling Bitcoin. You could sell Bitcoin as low as worth $10 or as high as worth $10 million or more.

How much does it cost to sell bitcoin?

The only cost associated with selling Bitcoin is the exchange fees or the broker fees. For example, Binance charges only 0.1% for transactions, and there are zero charges on withdrawals.

Is it hard to sell Bitcoin?

These days, it is apparently very easy to sell Bitcoin. Unlike old days, now you could also sell Bitcoin instantly and securely. Also, a lot of countries has put the proper law and legislation for selling Bitcoin. The only time when it is hard to sell Bitcoin is when you are in a country where Bitcoin is banned. In such cases, you could use a P2P exchange like Localbitcoins or Paxful.

When should someone sell his Bitcoin?

Treat your Bitcoin as money, and sell it when you need fiat money. However, the price of Bitcoin is volatile, and when the price is super low, you could wait for it to get better to sell. If you need money urgently, you can use your Bitcoin as collateral on websites like Block-fi, Nexo to take a loan.

How to sell bitcoin in Australia

You could use Binance or CoinSpot to sell Bitcoin in Australia.

How to sell bitcoin in Nigeria

Binance is the most popular way to sell BTC in Nigeria.

Article Produced By
Harsh Agrawal

An award-winning blogger with a track record of 10+ years. An international speaker and author who loves blockchain and crypto world. After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.

https://coinsutra.com/sell-bitcoin/

TP

Bitcoin Traders Can Now Stack Sats By Shorting Gold Price

Bitcoin Traders Can Now Stack Sats By Shorting Gold Price

Phemex, a cryptocurrency derivatives exchange, has added a gold/USD trading pair.

This move opens the door for Bitcoin traders to take advantage of declining gold prices. It is also a further step in the maturation of the crypto market.

BITCOIN TRADERS WANT A GOLD OPTION

Josh Rager, co-founder of Blockroots, made the announcement on Twitter: Now you can short Gold on the same platform you trade Bitcoin Perp swaps for GOLD/USD have been added to https://t.co/G53YTHoQMV Take your gains from shorting gold and cash them out in BTC And don’t forget to tell Peter Schiff about how much Bitcoin you stacked shorting Gold pic.twitter.com/S1rffSjElB

It is not known whether or not Phemex made this addition as a result of the sudden drop in gold. Nevertheless, the move is popular with a notable degree of liquidity emerging. Although the exchange does not offer a direct BTC/gold pair, traders can easily swap between gold, Dollars, and Bitcoin.
As with all commodities, trading gold carries risk. Investors should always do their research and exercise caution. The current global turmoil has translated into extreme volatility for all precious metals. Gold has fallen for several days as work stoppages have increased the need for quick cash. However, today it has spiked on fears of inflation and an incoming loose money policy from the U.S. Federal Reserve.

Crypto traders have been eager to take advantage of this volatility. Given the demand it is safe to assume that many more exchanges will soon add gold to their offerings. Many opportunities exist to purchase Bitcoin with gold, and vice-versa, yet Phemex is the first to allow daily trading and derivatives. With gold as a traditional safe haven during times of economic stress, the ability to transfer its value into the crypto space is intriguing. Long term investors may now become more willing to explore Bitcoin as a potential safe haven as well. 

CRYPTO MARKETS ENTERING MAINSTREAM

Bitcoin and other blockchain assets have long been outliers in global finance, yet their presence has become too significant to ignore. Increasingly they are proving their legitimacy, notably as a result of adoption across a wide array of industries. Moves to integrate various legacy commodities into the crypto space are only growing. Likewise, traditional brokers of all types are eager to begin working with blockchain assets.

Such steps are certain to invite greater interest from regulators and governments as well as funnel vast amounts of fiat into cryptocurrencies. 
Bringing Bitcoin into mainstream global finance remains controversial among crypto advocates, as many purists believe that the blockchain economy should remain independent. Nevertheless, as the value of Bitcoin and altcoins grows, it is inevitable that all markets will interact. In fact, mass crypto adoption depends on it. Will you be shorting gold to make more Bitcoin? Add your thoughts below!

Article Produced By
Bitcoin News

https://thebitcoinnews.com/bitcoin-traders-can-now-stack-sats-by-shorting-gold-price/

TP

French court officially recognizes Bitcoin as money

French court officially recognizes Bitcoin as money

Bitcoin France

Bitcoin France

The Nanterre commercial court in France has ruled that Bitcoin (BTC) is recognized as a currency

– a development that could have a significant impact on the cryptocurrency market in France. Recently, financial regulators in Germany have classified cryptos as financial instruments, which further promotes the increasing legalization of digital currencies. The judge stated that Bitcoin is an “interchangeable, intangible good”. Therefore, the cryptocurrency would be similar to other currencies like the euro. According to lawyer Hubert de Vauplane from Kramer & Levin, this decision means that Bitcoin is legalized as money. In his view, the number of Bitcoin transactions from France could now increase significantly. In addition, Bitcoin can be linked to investment and savings products. For example, loans could be provided with Bitcoin as security.

Litigation between crypto exchange and British investors. The judgment came about due to a legal dispute between the French crypto exchange Paymium and the British investor BitSpread. In 2014 Paymium BitSpread borrowed a certain amount in Bitcoin. According to the hard fork of Bitcoin, which created the cryptocurrency Bitcoin Cash, every Bitcoin owner received Bitcoin Cash in a ratio of 1: 1. The question then arose whether BitSpread would have to repay the free BCH (for the loan) to Paymium. It ultimately decided that Bitcoin Cash belonged to BitSpread, just like dividends paid to a shareholder.

Article Produced By
Breaking Bitcoin News

https://thebitcoinnews.com/french-court-officially-recognizes-bitcoin-as-money/

 

TP

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