DrawBridge Lending Offer Bitcoin SV Non-recourse Loans with No Margin Calls 5099

Bitcoin SV

In another cryptocurrency first, you can now secure loans against your BSV. Chicago-based DrawBridge Lending now offers BSV non-recourse loans with no margin calls. Not in the future but today, as DrawBridge CEO Jason Urban explains: “Recently, we loaned an entity a seven-figure sum secured by BSV and BTC posted with a third party regulated custodian. The interest rate on this transaction was 3%, well below standard market rates. We are able to lend the money at this rate by putting the collateral to work with the use of standard derivative option strategies.”

The main benefit of DrawBridge’s loan product is that the borrower can keep their BSV coin but generate sufficient returns to pay down the cost of funds. The borrower is free to deploy the cash proceeds for its own needs while retaining ownership, and potential price upside, of their coin. In this particular case, BSV price rallied 150% after the loan and the client retained the price appreciation which they would not have been able to do if they had simply liquidated the coin.

This is a noteworthy milestone for the BSV ecosystem for a couple of reasons. Firstly, it demonstrates that trade desks are willing to engage in options trades with BSV coins. This speaks volumes of how BSV is perceived by the professional trading community. Secondly, as the trading of derivatives on the coin becomes more widespread in the BSV ecosystem, finance professionals will create more useful products to deploy and unleash the full potential of the asset.

Calvin Ayre, owner and founder of the Ayre Group and CoinGeek, and supporter of BSV added: “When I first heard about how DrawBridge Lending were expanding into BSV, I was blown away by how obvious the business model was and, obviously, delighted to see further real-life business utility for the only coin that does it all.”

NB: The options are traded on the basis of a standard legal agreement called ISDA Master Agreements. These are common in the traditional financial world but are in the early stages of adoption in the digital world.

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Bitcoin Association’s Bitcoin SV Hackathon Finalists Announced in Lead Up to CoinGeek Toronto Conference 8506

Bitcoin SV

Bitcoin Association, the leading global organization for Bitcoin business, has held the first ever Bitcoin SV (BSV) Hackathon. The first phase of competition was a virtual hackathon that took place globally over the weekend of May 4-5 with 122 individual competitors, plus another 94 joining together to form 42 teams. Their challenge was to develop a solution for BSV on-boarding issues, extending beyond on-boarding new users to the challenge of also on-boarding new developers to BSV.

The quality of entries was so high that the judges named 14, rather than the originally expected 10, semi-finalists. Now the entries have been narrowed to three top finalists. A representative of each finalist team will be flown to Toronto for the ultimate judging and awarding of 400 BSV coins (currently valued over $27,000) at the CoinGeek Toronto conference on May 30. All finalists will also have the opportunity to be considered for investment by CoinGeek founder Calvin Ayre, the technology entrepreneur. The finalists will be judged by four expert judges plus a vote by the entire conference audience, expected to be more than 250 global cryptocurrency elites. The winner will be announced at the conference’s end with 1st place winning 250 BSV, 2nd place 100 BSV, and 3rd place 50 BSV.

No, Bitcoin Didn’t Surge Because of a Stupid April Fool’s Joke 4188

The 23 percent rally that sent the bitcoin price to its four-month high did not start with an April Fools’ Day joke.

It is wise for analysts and financial professionals to look for clues behind any unnatural price action. It took bitcoin only one hour to break a plethora of strong resistance levels and claim $5,023 as its session high. Many analysts on Twitter showed their lack of awareness about the price movement. Some looked for answers in technical patterns, while others merely refuted bitcoin’s upside move as April Fools’ rally. Have a look:

Bloomberg cited an article published on April 1 that joked about the Securities and Exchange Commission’s (SEC) approval of two bitcoin exchange-traded funds (ETF). Had such a piece of news been real, it would have resulted in a surge similar to what the bitcoin market is experiencing today. But the bitcoin price exploded one day after the fake coverage made to the wire. It was easier for Bloomberg to connect the visible dots. Their title read: “April Fools: Traders Chase Another Unexplainable Bitcoin Rally.”

But It Wasn’t an April Fools’ Rally

Can a joke influence a widely distributed spot market to pump its underlying asset by $12 billion? In a movie, perhaps.

Bitcoin’s So-Called April Fools’ Rally | Source: CMC

Alex Krüger was quick to point out the reason behind the bitcoin rally. The cryptocurrency economist shared one of his earlier tweets to explain what could be powering the ongoing upside action.

In his Feb 20 tweet, Krüger had shared three successive stages following which bitcoin could reverse from its most extended bearish bias. The first stage was capitulation, in which investors surrender before a bearish asset and leaves the market on a loss. The second stage involved a strong reversal trend. And the third stage indicates a slow buildup towards the upside. In those tweets, Krüger had also mentioned a scenario in which bitcoin could explode to the north without any concrete explanations.

“A strong move up to fill in the gap above is a matter of when not if. Such move up can happen entirely on technicals i.e. it does not need a fundamentals catalyst nor a change in market structure.”

Source: Alex Krüger

No One Pumped Bitcoin

Krüger’s tweet didn’t exactly explain the bitcoin rally, but it certainly envisioned a scenario that is taking place right now. The question what prompted the sudden bitcoin rally has no answer, in reality. The cryptocurrency’s market is full of instances in which it rose as much as $1,400 in a day. And those pumps did not happen on or after an April Fools’ Day.

Today’s bitcoin price action could very well be a part of an already-happening recovery. Since mid-December, bitcoin appears to have established a support area above $3,120. There is plenty of strong fundamental developments taking place this year inside the crypto markets, as covered by NewsBTC here. Bitcoin’s surge was inevitable. Let’s admit that it happened and watch the price move in either direction.

Crypto Community Speculates On What Triggered Massive Bitcoin Price Rally 4097

The majority of 2019 has been a nail biter for crypto market participants, as investors, traders, and analysts alike watched and waited for signs the elusive Bitcoin price bottom may be in. Overnight last night, a massive rally occurred, taking the price of Bitcoin through strong resistance at $4,200 to roughly $4,800. Following the move, the entire crypto community is speculating on what caused the enormous price spike and if the rally signals the end of the bear market.

Crypto Community Conflicted Over What Sparked Bitcoin Price Rally

Bitcoin is the king of all speculative assets, and those that trade or invest in the cryptocurrency often speculate over the smallest details. When such a large movement occurs on Bitcoin charts, everyone starts talking and speculating on what the reasons were behind a rally.

With such a large rally following over a year of downtrend, the crypto community is buzzing more than usual, trying to figure out what was the fuel behind the powerful upward movement.

A Bitcoin April Fools Joke Gone Right?

Major media powerhouse Bloomberg believes that the rally may have been triggered by an April fools day joke suggesting that a Bitcoin ETF had been approved by the Securities and Exchange Commission.

The idea is that CPU-based algorithmic trading bots picked up on the news, and started buying the asset en masse near important resistance levels, breaking it and triggering a cascade of stop losses.

Altcoin Trading Pairs Get Short Squeezed

Another theory, is that following the apparent “alt season” that has graced the crypto market with substantial gains over the last few months, highly leveraged altcoins paired with Bitcoin on exchanges may have resulted in a short squeeze.

With so many traders in the green on altcoin trades, profits would quickly be taken at the first sign of altcoin pair ratios falling. And with a move as powerful as what was witnessed with Bitcoin, many altcoin trading pairs saw their ratios plummet as much as 10%. As the ratio drops in favor of Bitcoin, stop losses are triggered and traders begin to secure altcoin profit into BTC, which further drives up the price of Bitcoin.

The truth behind the rally is likely a combination of all these potential reasons, with each claim offering some validity. Altcoins have indeed been on a profit-generating kick, and Bitcoin’s supply has been gobbled up by smart money accumulating at what in hindsight may be the crypto bear market bottom.

Why Today’s Bitcoin Rally Does Not Mean The End of The Bear Market 3865

Following over a year of falling prices and market cap, Bitcoin has finally broken resistance to lead a crypto rally. All but four coins in the top 100 are in the green, with many gaining double-digits. So far, Coinbases’s BTC/USD 1 hour chart shows a sustained upward trend, but given the unpredictability of crypto markets, investors would be prudent to think the bear market is still here.

Is This The Start of A Bull Market?

To say the last 460 odd days have been grueling would be an understatement. But Bitcoin’s demolition of the $4,200 resistance level sent waves of optimism across the entire crypto industry. Many are calling this the end of the bear market, and a return to the good times.

Following Bitcoin’s $19,000 peak mid-December 2017, the market has fallen significantly. During this time, many crypto-skeptics took delight in cries of “I told you so,” while continually pushing the narrative of cryptocurrencies being a scam. For example, in an interview with CNBC, economist, Nouriel Roubini said:

“Now that the crypto bloodbath is in full view the new refuge of the crypto scoundrels is ‘blockchain’, the technology underlying crypto that is now alleged to be the cure of all global problems, including poverty, famines and even diseases. But as discussed in detail below blockchain is the most over-hyped — and least useful — technology in human history.”

But for those who held their nerve, this day signifies a small sense of restitution for continuing to believe. Nevertheless, that’s not to say the bear market has ended, nor is it any consolation for the casualties that have fallen along the way.

Bull Market

While today’s price rally is a welcome development, investors should remain mindful that the bull market is not here yet. The definition of a bull market is somewhat indistinct, making it difficult to quantify in absolute terms. But according to Investopedia:

“There is no specific and universal metric used to identify a bull market. Nonetheless, perhaps the most common definition of a bull market is a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline.”

And while the general market sentiment is characterized by optimism, investor confidence and expectations of a sustained upward trend, we are at the head of a rise and require more data and time before officially calling an end to the bear market.

Expecting The Unexpected

Joe DiPasquale, CEO of BitBull Capital, agrees that we are still in a bear market. Speaking to Forbes, he shared his opinion of the current situation by saying:

“While we are very optimistic about the long-term prospects of Bitcoin and the crypto market, we agree that the bear market is not quite over yet.”

He expanded on this by saying:

“We believe there will be a steady rise of Bitcoin through the year, passing $5K by the end of the year. Once Bitcoin establishes a stable price level above $4,500 and possibly crosses $5,000, we can begin to believe that the bears have had enough.”

Also, amongst the sea of positive tweets are some who express caution over a pullback. With that in mind, while today’s rally is cause for celebration, it always pays to maintain a sense of diligence.

Bitcoin Buy Volume Reaches Record High on Binance, Intense Demand 3792

The Bitcoin trading volume on Binance established a historic high as the asset price jumped more than 15-percent within an hour.

The global cryptocurrency exchange posted its best four-hour timeframe volume statistics this Tuesday, reporting as high as 49,103 buy orders alongside 5,655 sell orders. The latest upside wave broke the record of the October 15 trading session, in which the buy volume had touched 40,315 and sell order was mere 5,331.

The situation was similar in the case of Etherum. The second-largest cryptocurrency by market capitalization dropped 6.74 percent against the bitcoin on Tuesday. Meanwhile, the ETH/BTC volume noted a record volume jump on a four-candle timeframe – however, more to the selling side. Binance noted 250,222 buy orders and 39,670 sell orders between 00:00 UTC and 04:00 UTC.

Ethereum Sell Volume Surged to Its All-Time High against Bitcoin | Source: Binance

Bitcoin on a whole established a fresh four-month high towards $4842.42. Meanwhile, Ethereum formed lower lows towards 30,599 satoshis.

Interim Sentiment Indicator

The increasing buying orders on Binance, which is the world’s largest cryptocurrency exchange by volume, serves as a yardstick for bitcoin’s bullish bias in near-term. Traders are inclined to join strong upside movements and their interest in taking parts in selling movements is less. If a price rise comes with a rise in volume, then it is a strong bullish indicator. However, if the bitcoin price maintains its gains and volume starts declining, then it could be a warning of a potential reversal.

The best metric to test the current bitcoin bias is a daily chart. Let’s have a look:

Bitcoin Volume on Daily Chart | Source: Binance

We drew a trendline adjoining the apex of recent high daily volumes with a bias towards bulls. Each of the candle mentioned in the chart above noted a daily surge up to $1,400, coupled with an increase in volume. One can notice that Binance didn’t exactly establish a record trading activity during the ongoing bitcoin rally on daily charts. One can also notice that bitcoin price had impressive daily sessions despite remaining in an overextended bearish bias.

For instance, Candle 1 and Candle 2 noted almost the same daily volume as experienced by current candle formation. The bitcoin price rose up to establish higher lows but later rebounded. Candle 3, which saw the bitcoin price jumping from $6,295 to $7,700 in a day, didn’t maintain the bullish momentum at all. The price went sideways and eventually crashed towards $3,100-$3,200 range.

Bitcoin Breakout

Bitcoin Price Descending Trendline | Source: Binance

The only justification that the ongoing rally could end up ballooning more is the breakout. Bitcoin was unable to break through a medium-sized descending trending for a very long time. The market noted failed attempts, followed by complete trend reversals. But this time, bitcoin has invalidated the trendline in the last daily sessions. Couple that with an increase in volume and we have a strong medium-term bullish sentiment.

Bitcoin Briefly Over $5,000: Where Do Experts See it Going in Near-Term? 3435

When Moon? That’s the question that crypto investors have been speculating about since the devastating, heavily-publicized Bitcoin (BTC) crash was ingrained in the minds of consumers the world over. As this inquiry has effectively been unanswered, some have begun to doubt that the moon even exists, as they look jealously at the Lamborghinis that speculators obtained in 2017’s bull rally.

Two prominent industry commentators, however, recently weighed in on the subject matter, giving investors a fleeting look at where Bitcoin and other cryptocurrencies could end up in the future. And funnily enough, the future is brighter than some may think, but it may not be exactly what people expect.

Short-Term Bearish, Long-Term Bullish On Bitcoin

At Token2049, Murad Mahmudov and Arjun Balaji took to the stage to give their thoughts on the cryptocurrency market. The crowd wasn’t initially pleased with what they had to say.

Short-term, Mahmudov, the chief investment officer of recently-launched cryptocurrency fund Adaptive Capital, is sure that Bitcoin hasn’t bottomed yet. Doubling-down on a number of calls he has made on Twitter over recent weeks, the trader explained that he fully expects for BTC to “dip into the high $2,000s” or even lower (not under $2,000 though) before an eventual rally higher.

Balaji, the managing partner at Shomei Capital and a frequent contributor at The Block, echoed his fellow speaker’s thoughts to a tee. He quipped that the bottom is far from in, explaining that a move to the low-$2,000s likely isn’t out of the realm of possibility.

Interestingly, however, BTC embarked on a monumental rally on Tuesday morning, quashing bearish sentiment across the board. With this move, which brought the cryptocurrency briefly above $5,000, BTC surpassed its 200-day moving average, which analysts have seen as a key resistance to watch for nearly one year. If Bitcoin holds and builds support above its 200-day moving average, currently situated at $4,600, some are sure that the chance for lower lows drops dramatically.

But that’s where the Token2049 presenters’ tones shifted from short-term bearish to long-term bullish. Mahmudov, who has quickly risen to legendary status in the industry, noted that while BTC is in its early stages, Bitcoin as superior money will begin to make a move on fiat and gold, especially as the Lindy Effect gives the cryptocurrency more credibility with the processing of blocks over time. The investor even airs out the possibility that BTC won’t become the number one store of value, explaining that regardless, the asset will be trading at an order of magnitude higher than it is now. As Mahmudov added, “Bitcoin is here to stay — $60 billion is just the beginning.”

In their final comments on Bitcoin, the investors opined that the moon — defined as them as $100,000 per BTC — will likely come to fruition by 2022 or 2023. But as they hinted at earlier, the road to six figures may not exactly be clear-cut, as there remain a number of uncertainties in this market.

Skeptical Of Ethereum

While Balaji and Mahmudov see bright futures ahead of Bitcoin, their presentation made it clear that they don’t feel the same hope towards Ethereum, a smart contracting platform whose dominance has slowly waned.

The Adaptive Capital partner flat-out explains that from his point of view, Ether is overpriced, citing his skepticism that decentralized applications — if the blockchain can solve its scalability concerns — hold a purpose. Moreover, he explains that the only reason that the cryptocurrency rallied as it did was solely due to the token sale boom, which Ethereum was the primary component of, as both a platform for token issuance and a way to purchase tokens.

Balaji shared this line of thought. The Block contributor postures that Ethereum is in the midst of an existential crisis, as the project’s core developers scrap ideas for a “multi-year transition” to an unproven consensus mechanism. Although this technically-intensive move could result in a newfound innovation cycle, creating actually viable decentralized applications that can garner a mainstream audience, Balaji notes that until the ICO narrative is quashed, he would be skeptical of the project.

Interestingly, however, there has been a large amount of growth in the decentralized finance facet of Ethereum recently, giving investors hope that there is more than just gambling smart contracts, token sales, and decentralized pyramid schemes on the platform. This slipped under the radar of the Token2049 presenters, however. But that seems to be how the cookie crumbles as of late, as the bearish market has made many stakeholders return to their Bitcoin-focused roots.