Sebastian Sinclair


Mexican billionaire Ricardo Salinas Pliego just declared 10% of his portfolio is now tied up in bitcoin.

Announced in a tweet on Wednesday, the founder of Grupo Salinas, responded to questions that “many people” ask him about bitcoin (BTC, -1.05%), saying: “YES. I have 10% of my liquid portfolio invested.”

“Bitcoin protects the citizen from government expropriation,” Salinas Pliego added as he recommended “El Patron Bitcoin” – a book that is “the best and most important to understand #Bitcoin.”

The other 90% of his investments are tied up “in precious metals miners,” the billionaire explained in a reply to Dan Held, the Kraken crypto exchange’s growth lead.

Latin American countries, namely Venezuela, have been plagued by hyperinflation in recent years, leading to a situation reminiscent of Germany’s 1920’s hyperinflation in the Weimar Republic.

Investors looking to protect themselves from “government expropriation” and inflation have historically turned to alternative assets like gold to hedge against fiat currency devaluation. Now bitcoin looks to be increasingly finding a place as a digital alternative.

Hours before posting his bitcoin tweet, the Mexican billionaire had posted another tweet decrying government-issued fiat as being “worth nothing” and noting that it is always “good to diversify” ones investments.

Salinas Pliego is the founder and chairman of Grupo Salinas, a collection of companies with stakes in telecommunications, media, financial services, and retail stores, per Wikipedia.

Author: Sebastian Sinclair

Source: Coin Desk: Mexican Billionaire Reveals 10% of His Liquid Assets Are in Bitcoin

A senior analyst at U.S.-based financial giant Citibank has penned a report drawing on similarities between the 1970s gold market and bitcoin.

The whole of bitcoin’s existence has been characterized by major price swings, “exactly the kind of thing that sustains a long-term trend,” said Thomas Fitzpatrick, global head of the company’s CitiFXTechnicals market insight product, in his report solely intended for the bank’s institutional clients.

The report was first leaked to the cryptocurrency community by Twitter user “ClassicMacro” in a tweet on Saturday, noting Fitzpatrick is “a big fan of moon targets.”

Fitzpatrick pointed to bitcoin’s weekly chart and used technical analysis (TA) of prior highs and lows to determine a target of $318,000 by December 2021.

“This kind of technical analysis is of little value,” ClassicMacro commented in his tweet. “There is no edge in guessing targets so far in time with TA. All we know is that price is likely to continue going up.”

The Citibank executive drew on bitcoin’s 2010-2011 “exponential move” as being “very reminiscent” of the 1970 gold market. Gold had experienced 50 years of a constricted $20–$35 price range before a breakout occurred after a change in fiscal policy by the Nixon administration in 1971.

A decoupling of gold from fiat currencies, the COVID-19 pandemic and the desire for central banks to pursue aggressive quantitative easing policies could lead to future explosive price growth in bitcoin, according to Fitzpatrick.

“Readers loves this,” commented ClassicMacro. “What matters here is Citi’s clients being exposed to the bitcoin moon.”

Author: Sebastian Sinclair

Source: Coin Desk: Citibank Analyst Says Bitcoin Could Pass $300K by December 2021

China Construction Bank (CCB) has tapped Labuan-based digital asset exchange Fusang for the issuance of $3 billion worth of debt securities over a blockchain.

According to a Wednesday report by the South China Morning Post, tokenized bond certificates will be issued through the state-owned bank’s Labuan, Malaysia, branch over a period of three months.

Notably, the digital securities will be exchangeable for bitcoin (BTC, +2.87%) on the Fusang exchange, as well as U.S. dollars. Trading is slated to commence this Friday.

If successful, Fusang intends to work with the “Big Four” Chinese bank on the issuance of certificates in other currencies, including the yuan, said Fusang CEO Henry Chong in the report.

See also: Beijing Municipal Government Conference Notes Plans to Pilot CBDC in China’s Capital

With the blockchain issuance, CCB – the second-largest bank globally by market capitalization – aims to reduce the costs traditionally associated with financial intermediaries. It will also offer the debt instruments at lower amounts to make them accessible to retail investors.

Bonds are tradable debt securities issued by a government or company to support spending obligations. Chinese bonds usually trade for tens of thousands of yuan (over $4,000) meaning they are mainly accessible to institutional and professional investors.

The bank aims to reduce that barrier to entry by making certificates available for a minimum of $100. They will offer around a 0.75% yield at maturity, higher than the average 0.25% interest achieved per annum at other banks, the report indicated.

Author: Sebastian Sinclair

Source: Coin Desk: World’s Second-Biggest Bank to Issue $3B in Bonds Tradable for Bitcoin

A research paper from the University of South Australia suggests blockchain technology needs to be refined so it can better protect privacy.

  • Described in a university blog post on Thursday, the research findings show the very features that make blockchain secure are also problematic for personal privacy, particularly under European standards.
  • The work was conducted by emerging technologies doctoral researcher Kirsten Wahlstrom in collaboration with Anwaar Ulhaq and Oliver Burmeister of Charles Sturt University, also in Australia.
  • The team found emerging technologies such as blockchain and the internet of things possess the potential to compromise people’s privacy in the way they immutably store data.
  • That’s because blockchains use details of previous transactions, including data that can be used to identify participants, to verify future transactions.
  • “Once someone’s details are embedded in a blockchain, the system never forgets,” Wahlstrom said. “Yes, those details might be encrypted, but they are also part of an irreversible ledger, and one that’s on the cloud.”
  • The paper references recent legal developments in the European Union meaning citizens possess the “right to be forgotten” in relation to their internet-hosted data.
  • So, as long as a blockchain exists it conflicts with the European ruling that people have the right to retract their data, Wahlstrom said.
  • In August, digital rights group the Electronic Frontier Foundation raised similar concerns over a proposed California law allowing medical records to be stored on a blockchain.
  • Standards need to be cemented now in order develop a clear distinction on what privacy is, as well as what governments and organizations are trying to protect and why, Wahlstrom noted.
  • “The main problem is, we’re still struggling to understand what ‘privacy’ actually means in an online world,” she added.
  • The research cited Holochain as an example of technology that might address the privacy issue.
    The project uses distributed hash tables, a form of a distributed database that can record data associated with a key on a network of peer nodes, and avoids the all-encompassing “ledger” of a blockchain.
  • “This allows individuals to verify data without disclosing all its details or permanently storing it in the cloud,” Wahlstrom said, “but there are also still a lot of questions to answer about how this affects the long-term viability of the chain and how it obtains verifications.”

Author: Sebastian Sinclair

Source: Coin Desk: Australian University Finds Privacy Issues With Blockchain Technology

Exchange giant Binance has acquired crypto wallet app that allows users to purchase items via a Visa debit card.

  • Swipe users can purchase cryptocurrencies from within the app and the debit cards automatically convert stored cryptocurrency into fiat currency, using the Visa payment network.
  • Swipe is already available in 31 countries, mostly in the European Union, and currently supports transactions in major fiat currencies, including the U.S. dollar, euros and pound sterling.
  • Binance, which has been adding fiat gateways for users all around the world, said Tuesday the acquisition could help boost crypto adoption.
  • Swipe has now listed Binance’s BNB token on its platform.
  • The value of the deal was not disclosed.
  • Binance announced in April it was beta launching a debit card; it’s unclear if this has been provided through Swipe. CoinDesk has approached the exchange for comment.

Author: Sebastian Sinclair

Source: Coindesk: Binance Acquires Crypto Debit Card Provider Swipe for Undisclosed Sum

Some analysts argue the nascent market has a long way to go before reaching maturity, as seen in traditional markets, where smoothed volatility and liquidity are important factors. While others imply scarcity inherent in its algorithm is the main factor for bitcoin’s perceived value, now and in the future.

A poll conducted by Alex Kruger, a macro cryptocurrency analyst, shows the majority of Crypto Twitter participants think bitcoin (BTC) will ‘eventually’ mature and settle into a wide price range, resembling the traditional commodities markets in real-terms.

To drive home what he meant, Kruger said “something that settles into a range in real terms still trends in nominal terms due to inflation, as most commodities do.”

But timing is always the question and BTC could be faraway from that level of maturity, where it ‘settles’ into a defined range as the budding market of cryptocurrency moves into its 10th year.

Willy Woo, a crypto on-chain analyst and trader, said the price of BTC still had some ways to go in discovering a price ceiling.

“Anything between a [market capitalization] of $10 trillion to $100 trillion is fair game,” Woo said.

BTC’s market capitalization, a measurement of total coins in circulation multiplied by its spot price, stands at $204.4 billion, down from its yearly peak of $233 billion witnessed June 27, according to information provided by Messari, a cryptocurrency data provider.

Kruger said volatility is likely due to the lack of total capital in the space right now. As the market cap increases, the impact to BTC by large market participants, aptly named “whales”, is likely to be less impactful in shifting price.

That is a sobering fact for retail investors as volatility tends to be the most attractive aspect to cryptocurrency trading.

For institutional investors, it would be a welcome change.

Nic Carter, Partner at Castle Island Ventures, a venture capital firm focused on public blockchains, said BTC resembles a commodity more than any other asset class, but also said that volatility isn’t going anywhere anytime soon.

“The lack of a supply response to a demand shock all but ensures it is likely to remain volatile for the foreseeable future,” Cater said.

BTC’s halving, an event where the reward for mining new blocks is halved, meaning miners receive 50 percent fewer BTC for verifying transactions, is set to trigger on May 14, 2020.

In macroeconomics, scarcity tends to be a fundamental driving force that increases the value of an asset, much the same way that diamonds, oil and gold functions based on the supply and demand from speculative investors.

Oliver von Landsberg-Sadie, CEO of BCB Group, a regulated financial services enterprise for digital assets, said Kruger’s second scenario, in which scarcity continues to drive prices higher is likely to remain a constant forever. He also said global cryptocurrency adoption was a long way from mainstream adoption but said the markets continue to march on, regardless of price.

“I can tell you with great confidence that global adoption at established brands is growing steadily and purposefully,” Landsberg-Sadie said.

How far along BTC’s market cycle is, is yet to be determined, but if traditional economics prove true, BTC could be highly valued in the very near future.

Author: Sebastian Sinclair

Source: Coindesk: Bitcoin has been sliding amid a lack of capital inflows, raising questions about the future for bitcoin in the long-term.


  • Bitcoin’s bearish daily candle close (UTC) on October 16 has increased the likelihood of further price drops.
  • The monthly chart has similarities to that of November 2018 when volumes favored a bullish outlook, before dropping to new yearly lows.
  • The bulls need to drive prices back above $8,300 quickly or risk conceding full market control to the bears in the short term.
  • Bitcoin is looking increasingly weak, having dropped nearly 2 percent on rising trading volumes Wednesday.

The top cryptocurrency by market value fell from $8,150 to $7,912 in the early U.S. trading hours on Wednesday before printing a UTC close at $7,996.

The price slide strengthened the case for a retest of recent lows near $7,750 put forward by Tuesday’s bearish “outside bar” candle.

Moreover, as reported, selling pressure has been building in recent days following bitcoin’s failure at the 200-day moving average hurdle on Oct. 11. The key MA is widely considered a barometer of the long-term trend.

At press time, BTC is changing hands at $8,100 on Bitstamp, representing a marginal loss on the day.

Prices have recovered more than 2 percent from Wednesday’s low near $7,920, but remain well below the 200-day MA, currently at $8,778. Therefore, the path of least resistance remains to the downside.

Daily chart

Wednesday’s drop was backed by higher than average levels of bearish (red candle) volume and bolstered the already bearish technical setup represented by Tuesday’s bearish outside bar candle.

The daily relative strength index (RSI), an indicator that provides a reading of overbought and oversold conditions on a particular asset over a particular time frame, has been suppressed beneath the neutral 50 line ever since losing altitude on Sept. 5. It’s struggled to gain a bullish foothold ever since.

BTC, therefore, looks set to retest support levels located near $7,750. A violation there could prove costly, opening the doors for a deeper drop toward $7,200, as predicted by a few observers.

The onus is now heavily on buyers to drive prices back above $8,300 quickly or risk conceding full control to the bears in the immediate short-term.

Monthly chart

As the month of October matures, another key volume metric stands out on the larger time frames.

Bearish volume has been decreasing in parallel with price drops, which typically suggests stability for buyers as the markets look to equalize on seller exhaustion.

However, it is not uncommon in crypto for prices to ignore generally accepted theory, as seen in November of last year when prices broke to the downside from a bearish descending triangle pattern and had similar volume patterns as seen currently.

This only acts to strengthen the bearish bias when viewed from larger time frames, with the monthly RSI also on a downward move toward the aforementioned neutral 50 line, hinting at a continuation of the prevailing southward trend.

Macro pressures

Concerns of a global recession are mounting amid the U.S.-China trade war and levels of corporate debt are increasing, as noted by the International Monetary Fund (IMF) on Wednesday.

Many analysts consider bitcoin a safe haven asset, yet the evidence for the claim is not conclusive and the cryptocurrency has been no stranger to the pressure felt across the broader global markets.

Risk sentiment will likely remain weak, possibly keeping BTC under pressure until a clearer agreement is sketched out between the world’s two largest economies

Author: Sebastian Sinclair

Source: Coindesk: Bitcoin Price May Test $7,750 as Selling Pressure Grows

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