Category: Bitcoin

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Bitcoin Crypto News Market Analysis The Crypto Den Trading

TradeRoom: Our Weekly Crypto Trades & Analysis – Nov 1st, 2021

Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.

In this article:

  1. Crypto Market Outlook
  2. Last Week’s Performance
  3. This Week’s Trades

Crypto Market Outlook

Despite BTC dropping 14% from its new all time high (ATH) last week the entire Crypto Market Cap (TOTAL) still looks very healthy sitting at US$2.64 Trillion area. Which is only a 4% drop since the new ATH of the market cap.

Total Crypto Market Cap

What we find really encouraging is the current position of the ALT coin market (TOTAL2) which has a total value of US$1.47 Trillion. Reaching new highs yet again this is extremely bullish, not just for ALTS, but show for BTC as well as its showing strong confidence in the overall market. Bitcoin Dominance (BTC.D) dropped with BTC recently and ALTS only seen rather minor reactions to this drop.

Total Crypto Market Cap EXCLUDING BTC

Even the total crypto cap excluding both BTC and ETH (TOTAL3) has reached new highs this week topping out at US$963 Billion. Which tells us that a lot of capital is confidently flowing into ALTS across the board and not just to the Crypto #2 Ethereum.

Now lets take a good look at Bitcoin.

BTC pulled back to find daily support at US$57,500 after reaching a new ATH at US$67,000. We thought we would see a much stronger initial push high from BTC after achieving a new high however a pullback like this is NOT unhealthy. In fact quite the opposite.

Possible bullflag for BTC

BTC could simply be painting a daily bullflag! This is a bullish trend continuation pattern which shows a price projection (length of the flag pole) lining up perfectly to a future 618 Fibonacci level. We teach you all about chart patterns and Fibonacci in our Trading Course if you’d like to learn more on this!

If we take a look at BTC on a monthly chart you’ll see its just had its highest monthly close ever! Another very bullish sign.

BTC highest ever monthly close

So what are we looking for in the TradeRoom next? Based on a 4 hour chart it shows BTC breaking out of the bull flag and retesting a level of both horizontal support and the local down trend. This restest forms a higher low (HL) which leads some pattern traders to see an inverse head and shoulders pattern (iH&S) which is a common reversal pattern preceding a recent trend down. The “head” also reached the common Fib retrace level of 61.8%. We are waiting to see a confirmation of this by breaking above US$62,605 (green line/circles). Once this is confirmed I see BTC approaching the new ATH with bullish strength behind it!

Overall market sentiment is high. The general consensus is that we will see the entire market make another move up. Be sure to mitigate any risk by ensuring stop losses are in place!

BTC breaking out and retesting bullflag

Last Week’s Performance

SOL/USDT

In my last article I touched on SOL being one of the key coins to watch. Even with BTC dropping that 14% I’m so impressed with how well SOL has held its own. Making a higher high (HH) on daily chart we still expect to see SOL reach new highs at around US$250

SOL/USDT

ETH/USD

We also looked at ETH for a long position. As you can see in the chart below this trade was ALMOST stopped out when BTC pulled back however it wasn’t hit and we are still in the trade. Again, I’m expecting to see ETH hit close to US$5,000 soon!

ETH/USD

MANA/USDT

This trade was by one our our TradeRoom members and former students! Using Fibonacci as a project tool this trade played out better than expected!

MANA/USDT
MANA/USDT

‘Dazzling’ as he’s known in the TradeRoom spotted this ascending triangle pattern (another bullish continuation pattern). After entering MANA did a massive 240% move. Daz entered into a leveraged trade yielding him over 1000% which is amazing! I’m sure everyone reading this from the TradeRoom can agree Daz is a TCD legend and always extremely helpful and supportive within the community! Nice work Daz!

NOTE: Daz has been trained to trade with leverage. Leverage trading should NOT be done by beginners. If you’d like to learn our Trading Fundamentals LIVE course starts in 2 weeks!

This Week’s Trades

BTC/USD

Lets look at BTC first. Can it follow the potential path addressed above and breaks the ATH at US$67,000 we will likely see US$75,000 – US$78,000 as a first target.

BTC/USD

ALGO/USDT

An ALT showing some signs of strength amid the BTC pullback and one of the fan favourites in TradeRoom is ALGO.
Showing some daily Higher Lows (HL) with equal highs ALGO is one to watch this next week or so.

ALGO/USDT

AXS/USDT

AXS is one we touched on in our market scan last Thursday as its be painting a daily symmetrical triangle. Again this shows good strength against BTC. AXS has since broken out and already achieved a 34% increase. Currently pulling back to test support and could present opportunity for a new entry.

Thursday TradeRoom Market scan
ALGO/USDT breaking out and retesting

Its important to remember that when trading ALT coins, their price action is heavily dependent on BTC. If BTC takes a bullish path ALTS will likely follow. If BTC turns bearish then ALTS will likely dump in price even harder!

If you would like to become a better trader, you are invited to join our TradeRoom where we share daily charts and market analysis. In our community we strongly encourage and teach correct risk management strategies to keep our members safe in this new volatile crypto market.

>> Take our Free Beginners’ Trading Course

>> Join our Trading Community for your 7 day free trial

The Crypto Den was created in 2017 to help the rapidly growing crypto community learn and understand the fundamentals of digital currencies and how to trade them. 

Since then we have taught thousands of members the basics of technical analysis and trading strategies to further progress and perfect their trading abilities.

In the TradeRoom you will be included in a supportive environment which encourages personal growth, education and community support.

It’s a place to share your trading ideas and follow other experienced traders’ feeds to help keep your finger on the pulse of such a volatile market!

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Bitcoin Crypto News History

Happy Birthday Bitcoin: 13 Years Ago, Satoshi Nakamoto Released Bitcoin’s Whitepaper

The Bitcoin whitepaper was first published on October 31, 2008 by its pseudonymous creator, Satoshi Nakamoto. Since Bitcoin’s immaculate conception, even its creator would have difficulty imagining a world some 13 years later where his creation would become adopted as legal tender in a country.

Original email circulating Bitcoin whitepaper. Source: Satoshi Nakamoto Institute

Bitcoin’s Origins

Shortly after publication, a copy of the whitepaper was distributed to a cryptography mailing list where Satoshi outlined how Bitcoin solved the problem of decentralised parties being able to arrive at consensus without relying on a trusted central party, otherwise known as the “Byzantine General’s Problem“. Satoshi’s lack of trust in centralised institutions was clearly articulated in the whitepaper.

The root problem with conventional currency is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.

Satoshi Nakamoto, Bitcoin whitepaper

Satoshi noted that the other key problem addressed by Bitcoin was that it solved the “double-spend problem”, an issue that plagued all prior attempts at creating digital cash.

Double-spending is prevented with a peer-to-peer network. No mint or other trusted parties. Participants can be anonymous. New coins are made from Hashcash style proof-of-work. The proof-of-work for new coin generation also powers the network to prevent double-spending.

Satoshi Nakamoto, Bitcoin whitepaper

Bitcoin was later officially launched on January 3, 2009, the date on which the first block of transactions, known as the genesis block, was mined.

Bitcoin 13 Years Later

Close to 13 years after the creation of the genesis block, Bitcoin has become the most valuable and fastest-growing decentralised network on Earth, valued at approximately US$1.2 trillion.

Every day, like clockwork, approximately 900 newly minted bitcoins are created. To date, just under 90 percent of the 21 million hard cap supply has already been mined. Bitcoin’s supply curve is fixed, so the only area for investors left to speculate is its demand.

Bitcoin supply curve. Source: Buybitcoinworldwide

Bitcoin has already won the “store of value” narrative within the crypto sector and, to an extent, even in traditional finance where some argue that it is eating gold’s market share. Bitcoin prioritised decentralisation and security over speed. At the base layer, it is therefore slow and costly when it comes to transmitting value.

Bitcoin proponents, however, are quick to highlight the parabolic growth in Bitcoin’s layer two solution, the Lightning Network, which enables instantaneous global transfers for fractions of a penny. This is already working in El Salvador, where estimates suggest that this technology could cost Western Union US$400 million in remittance fees.

Even for those who aren’t technically minded, Bitcoin’s number-go-up (NGU) technology, coupled with its efforts to separate the state and money, has led to growing adoption worldwide, which naturally reflects in price growth over time.

Bitcoiners who have been in it for the long haul have witnessed innumerable existential challenges and threats over the years. Fortunately, Bitcoin has proven to be remarkably antifragile, and at present appears to be better placed than ever to capture an even larger share of the estimated US$420 trillion of global wealth.

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Bitcoin Crypto Exchange Crypto News Investing Market Analysis Markets

Bitcoin Slips to $58,000 Amid $1 Billion Liquidity Flush

After hitting new all-time highs, a sharp market correction and a US$930 million “liquidity flush” has knocked bitcoin back to US$58,000, according to data from analytics firm Bybt.

Due to a price drop in “digital gold” and the overall crypto market in the past 24 hours, a series of liquidations was triggered across exchanges as traders were unable to meet margin requirements in their leveraged positions.

The total value of liquidations reached more than US$930 million, with 87,135 traders liquidated. The largest single liquidation order happened on Bitmex-ADA, with a value of US$3.85 million.

Total liquidations observed. Source: Bybt

Recent History Repeats

Crypto analyst and investor Justin Bennett took to Twitter to explain to his followers that despite the dip, bitcoin seems to be primed to follow the same pattern as it did in September:

Bennett went on to say that he believes the worst is probably over for the altcoin market, and even if bitcoin sees further price drops, altcoins will likely not be greatly affected. At the time of writing, the price of bitcoin was sitting at US$61,165 according to data from CoinGecko.

Bitcoin Dump or Short-Term Flushout?

Although bitcoin’s price is trending down amid signs of excess leverage and greed in the market, many are wondering whether this is it, or is it just the beginning of a more extensive correction needed to liquidate the high leverage recently exercised by retail investors?

All signs seem to point to the correction being short-lived, with bitcoin having stabilised. If all goes well, we should see a recovery take place, but only once leveraged investors have been flushed out.

William Clemente, lead insights analyst at Blockware Solutions, took to Twitter to share his view:

Just Buy the Dip!

The first US-based Bitcoin exchange-traded fund (ETF) has been greeted with mixed emotions. All things aside, this is certainly a massive move in the right direction for Bitcoin and crypto adoption.

Overall, the picture for the bitcoin price is bullish. Over the past five months, about 70 percent of the total supply of bitcoin has not moved, indicating that the majority is held by long-term holders or HODLers.

The market has also seen traces of whales, with Bitcoin addresses with 100 to 1,000 BTC accumulating over 85,700 BTC in a two-week period. Along with an increased demand for bitcoin, a supply squeeze is being created that looks bullish in the long term.

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Bitcoin Crypto News Scams United Kingdom

Police Seize 48 BTC from 16-Year-Old Kid Who Ran Copycat Website of ‘Love2Shop’

Police in the Midlands county of Lincolnshire in the UK have seized US$2.9 million in bitcoin from a 16-year-old boy who scammed thousands of victims after extracting their personal details via a copycat website.

Just as Covid lockdown restrictions were imposed in Britain last year, the teenager launched a fraudulent copy of Love2Shop, a gift voucher platform. He then used Google Advertising to heighten the website’s profile, prompting unsuspecting consumers to visit his page instead.

Victims Numbered At Least 12,000

From here, many victims unwittingly entered their email addresses and passwords, enabling thefts to take place. A police investigation uncovered more than 12,000 credit card numbers on the teenager’s computer, as well as 197 PayPal accounts.

In the meantime, his fake vouchers had spread far and wide, as police issued warnings to retailers to be on the lookout for them:

The court was told the teenager took the site down after a week, just as Love2Shop began investigating following a complaint from a customer.

Ill-Gotten Gains Sunk into 48 Bitcoin

The scammer, who cannot be named due to his legal status as a minor, had invested much of his ill-gotten gains into cryptocurrency, and detectives were stunned to discover he had a balance of 48 bitcoin, worth almost US$3 million at the time of writing.

The teenager, currently studying for his final school exams, admitted to charges of money laundering and fraud committed in April 2020. He was sentenced to 150 hours of community service with no conviction recorded, and a confiscation order was imposed on his crypto.

In a masterful example of stating the glaringly obvious, Judge Catarina Sjolin Knight told the defendant: “You have a long-standing interest in computers. Unfortunately, you used your skills to commit a sophisticated fraud.”

Later, she said: “If he was an adult he would be going inside.”

In August, Crypto News Australia reported on how fake crypto trading websites were proliferating in Australia.

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Bitcoin Crypto News

$1.5 Billion Enters the Crypto Market Since Approval of BTC Futures ETFs

Recent data from CoinShares shows weekly inflows to digital asset investment products have spiked to a record high of approximately US$1.5 billion following the inception of the two Bitcoin futures exchange-traded funds (ETF) in the US.

Bitcoin ETFs Brought in $1.24 Billion

Last week, the US Securities and Exchange Commission (SEC) allowed the launch of the first-ever Bitcoin-related ETF product by ProShares, which gained about US$1 billion in volume on the first day of trading. Valkyrie launched the second Bitcoin ETF soon after, adding to the euphoria and inflows to the Bitcoin market.

Per CoinShares, these Bitcoin ETFs accounted for the majority of inflows in the digital asset fund market last week – about US$1.24 billion. For the record, this represents a 93.75 percent increase from the previous weekly inflow high of US$640 million in February.

Notionally, this proves that crypto experts are on the money with their speculations that a Bitcoin ETF in the US would unleash more capital into the market.

Total Crypto AUM Spike to $79.2 Billion

So far in 2021, the total inflows in the digital assets fund market have risen to US$8 billion, about US$1.3 billion higher than the record level last year. CoinShares also noted that total assets under management (AUM) rose to US$79.2 billion following increases in underlying crypto assets, especially bitcoin.

About 99 percent of all the inflows last week were generated by Bitcoin amid the ETFs, whereas the all-time high in price further raised its dominance in the market.

Solana saw the largest inflow of US$8.1 million in the altcoin category, followed by Cardano (US$5.3 million) and Binance Coin (US$1.8 million). There were also more outflows in Ether (ETH) last week.

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Bitcoin Market Analysis Solana The Crypto Den Trading

TradeRoom: Our Weekly Crypto Trades & Analysis – Oct 25, 2021

Welcome to this weekly series from the TradeRoom. My name is Dave and I’m the founder of The Crypto Den, an Australian-based crypto trading and education community aiming to give you the knowledge to take your trading game to the next level.

In this article:

  1. Crypto Market Outlook
  2. Last Week’s Performance
  3. This Week’s Trades

Crypto Market Outlook

The entire crypto market cap peaked to a new all-time high (ATH) at US$2.7 trillion last week, showing strong confidence in the market. Prices are taken from Binance exchange.

Total crypto marketcap reaching US$2.7 trillion

Bitcoin itself reached a new ATH of US$67,000 after clearing the previous high of US$64,900. Despite having a daily candle close above the previous ATH, bitcoin has pulled back below for the past four days, finding support at US$59,500, which has previously proved to be a key level of support/resistance.

BTC currently sitting on daily support level

If this key level of BTC support holds, we are expecting to see some more bullish action with an initial target of US$78,000. I have outlined the reasons I believe this to be a good target in a separate blog post. If this price level were to break below and close, we could see a decent pullback to the US$53,000 zone, which will likely bring ALTS with it.

Why have we picked US$53k as a bearish target for BTC? You’ll see in the image below we have a confluence of strong daily support: with the 50EMA and 50% Fibonacci level in bull runs, a 50% retrace can be typical. For beginners to technical chart analysis, we’ve got your back and can teach how to use these tools to plot your own trades in our Trading Fundamentals Course available on The Crypto Den website.

Possible bearish price target

Ultimately in our TradeRoom, the general consensus is that we still hold a bullish bias with BTC. However, as traders we must adapt and move with the market, and have a trade plan for both scenarios of an up and down market.

In our courses and live lessons, we teach people to use the correct risk management strategies to have a plan in place no matter the direction the market takes.

Last Week’s Performance

Last week in TradeRoom there were three trades we entered for Ethereum (ETH), as it tested its previous ATH showing some bullish signals in the charts. Some of the trades we made were successful and saw profit up to 500%, using staggering buy positions.

We discussed in our community that taking profits and also leaving some capital to ride through was the best strategy for this one; our members have used this strategy before with great success.

See our entries and exits below:

Trade #1: ETH/USDT

ETH/USDT: Initial entry at support level US$3,349
ETH/USDT: Next entry at new support of US$3,446
ETH/USDT: Some profit taken at resistance of US$3,641 and some at US$3,958
ETH/USDT: New entry at support of US$3,641 with profit taken at US$4,370

Trade #2: SOL/USDT

The next trade was one of our community favourites, Solana (SOL). In our TradeRoom live market scan on October 14, I drew a chart live with our members showing my plan for entering a new SOL trade. A week later, luckily, this trade went to plan and saw a profit up to 700%!

I love these live market scans as we can discuss the trades as a group and learn together. We are stronger together!

SOL/USDT: Live market scan entry shared at US$151
SOL/USDT: Profit taken at US$212

This Week’s Trades

As with most weeks, our market outlook ultimately depends on how BTC opens after the weekend. As mentioned previously, we are currently sitting on a solid level of support, however if BTC breaks below this level, we’ll be either catching a retest for a counter-trend short or waiting for US$59k to hit to enter a long position.

BTC/USDT

BTC/USDT: Bearish scenario

What we’re looking for at the current price level is solid candlestick analysis. We want to see a bullish engulfing candle causing a breakout of the local downtrend BTC has been in for the past four days and retest the 50EMA as support for an entry.

BTC/USDT : Bullish scenario

ETH/USDT

One of the biggest movers this week could definitely be ETH as the charts suggest. As outlined above in last week’s trades, ETH has performed extremely well lately and we see no reason for that momentum to slow just yet.

In the TradeRoom we are currently watching this symmetrical Triangle, having tested the Fib golden pocket (a key retrace level of 61.8% – 65%). A breakout to the upside here could very well see ETH on the path to a new ATH of US$5,000! Tune in next week to see if it happens!

ETH/USDT: Testing local uptrend line

SOL/USDT

It’s hard not to be watching the frontrunners from last week’s success and, like ETH, we agree SOL is still looking very bullish. Market structure is up even after BTC had a little pullback. SOL has tested that 50% Fibonacci level again with a price projection of US$252 in price discovery. If this plays out to plan, the key entry on 50% fib has been missed, however SOL certainly has room to move here! Definitely one to keep a close eye on.

One thing we’ve learnt about trading altcoins is that they are absolutely subject to what BTC is doing. If BTC takes a bullish path we may see the altcoins follow it up, whereas if BTC takes a bearish path we may likely see them follow it down.

If you would like to become a better trader, you are invited to join our TradeRoom where we share daily charts and market analysis. In our community we strongly encourage and teach correct risk management strategies to keep our members safe in this new volatile crypto market.

>> Take our Free Beginners’ Trading Course

>> Join our Trading Community

The Crypto Den was created in 2017 to help the rapidly growing crypto community learn and understand the fundamentals of digital currencies and how to trade them. 

Since then we have taught thousands of members the basics of technical analysis and trading strategies to further progress and perfect their trading abilities.

In the TradeRoom you will be included in a supportive environment which encourages personal growth, education and community support.

It’s a place to share your trading ideas and follow other experienced traders’ feeds to help keep your finger on the pulse of such a volatile market!

Categories
Bitcoin Crypto News Investing

Tech Billionaire Deeply Regrets Not Buying More Bitcoin

Historical increases in the price of the leading cryptocurrency, bitcoin (BTC), had caused many investors and traders to regret not getting in earlier. However, billionaire PayPal co-founder Peter Thiel says he’s dissatisfied with his current holding and wishes he had invested more in the US$1.2 trillion crypto asset.

‘I Underinvested’, Admits Rueful PayPal Co-Founder

Speaking at a conference hosted by policy think tank Lincoln Network in Miami, US, Thiel admitted that he felt like he’d underinvested in BTC, regretting his reluctance to invest in “the secret that was already known by everybody”. 

On Twitter, ShapeShift founder Erik Voorhees recalled his early unheeded attempts to get Thiel invested in bitcoin when its price was US$300 in 2015. 

Thiel is not alone in this. In June, Marc Lasry, a popular US hedge fund manager and co-owner of the NBA’s Milwaukee Bucks basketball team, also regretted not holding more bitcoin in his portfolio. 

Bitcoin is Hope

With bitcoin hitting a new all-time high, Thiel still recommends going long on the asset as the price can possibly go higher. “I think the answers are still to go long. Maybe it still is enough of a secret.” 

On October 21, bitcoin reached an ATH of US$67,000, raising 100 percent of all the addresses in the state of profit. Thiel opined that increases in BTC’s market value would be a concern for many central banks. It “surely tells us that we are at a complete bankruptcy moment for the central banks”, he said.

At a separate event, an October 18 conference hosted by the Stanford Law School chapter of the Federalist Society, Thiel argued that bitcoin reaching US$60,000 “is an extremely hopeful sign” and flagged a fundamental weakness in the US political system. 

[Bitcoin is] the canary in the coal mine. It’s the most honest market we have in the country, and it’s telling us that this decrepit … regime is just about to blow up.

Peter Thiel, co-founder, PayPal
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Bitcoin Crypto News Ethereum Investing Regulation

US Firefighter Fund Invests $25 Million in Crypto, Sparking a New Trend?

An American firefighters’ pension fund has invested US$25 million in bitcoin and ether, marking the first time a US public pension plan has invested in digital currencies, according to an October 21 announcement. This bold move is leading many to reconsider their stance on cryptos.

Houston Firefighters’ Relief and Retirement Fund (HFRRF) announced its crypto purchase through NYDIG, a digital assets manager and subsidiary of Stone Ridge Assets Management. The investment was made through a customised private fund that will be managed by NYDIG.

Taking the First Step into the World of Cryptos

In the context of the announcement, HFRRF’s chief investment officer Ajit Singh spoke of the importance of investing in cryptos:

This investment expresses our belief in the disruptive potential of distributed ledger technology for the development and democratisation of value accumulation through disintermediation.

Ajit Singh, CIO, HFRRF

Singh went on to say:

We have been studying digital assets’ transformative potential for some time, and we are pleased to have a partner of NYDIG’s calibre to ensure secure, robust and efficient execution, and enhanced compliance, as we enter this new market.

Ajit Singh, CIO, HFRRF

HFRRF’s benefactors include more than 6,600 active and retired firefighters and survivors of firefighters, and the fund holds over US$4 billion in total assets. Since 2004, HFRRF members have been contributing 9 percent of their salaries to the fund.

This purchase marks an important milestone for cryptos and their potential role in public pensions and superannuation funds. Nate Conrad, NYDIG’s global head of asset management, said the investment represented a watershed moment for bitcoin.

Entrepreneur and crypto investor Anthony Pompliano took to Twitter to share his opinion and make a bold prediction:

As crypto adoption becomes more widespread, many institutional investors are realising the importance of crypto exposure. Specifically, Australian superannuation funds are being urged to rethink their stance on cryptos or risk falling behind.

Accessing cryptos remains one of the biggest obstacles. To this end, Vault International Bitcoin Fund has established the first bitcoin-only fund in New Zealand. One of the main reasons for launching the fund is to remove the hassle and risk of direct crypto ownership.

Categories
Bitcoin Blockchain Crypto News Cryptocurrencies Ethereum Gold Institutions

$2.2 Trillion Bond Giant Embraces Crypto as ‘Inflation Hedge and Store of Value’

Pimco, a US$2.2 trillion global fixed-income giant, will continue to explore crypto assets that have the “potential to disrupt the financial industry”, according to a report from CNBC.

Exploring Cryptocurrencies as an Inflation Hedge

During an interview with CNBC, chief investment officer Daniel Ivascyn revealed that Pimco had already invested in “crypto-linked securities” through several hedge fund portfolios, and plans to increment crypto assets exposure in the near future.

The move was announced on October 20 after Bitcoin and other high-market cap cryptocurrencies such as Ethereum surpassed record price levels, with BTC breaking above US$67,000 and ETH reclaiming the $4,000 mark, falling just short of its May ATH of $4,300.

Most cryptocurrencies saw a boost in price after the first Bitcoin futures-linked ETF, which saw a massive trading volume on its first days of approximately US$1 billion.

According to Ivascyn:

Now we’re looking at potentially trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the fundamental side. This will be a gradual process where we spend a lot of time on the internal diligence side speaking to investors. And we’ll take baby steps in an area that’s rapidly growing.

Daniel Ivascyn, CIO, Pimco

Ivascyn went on to say that cryptocurrencies like bitcoin offer an inflation hedge and a store of value against fiat hyperinflation and declining purchasing power. His comments resemble those of JPMorgan, whereby analysts at the investment bank revealed earlier this month that investors were replacing gold with bitcoin as a better inflation hedge.

Competitive Environment Keeps Pace with Innovation

Cryptocurrencies and the DeFi sector have become highly valuable financial instruments not only for crypto enthusiasts but for artists, content creators, institutional investors and more.

As crypto and blockchain technology advances continue to accelerate, traditional institutions are keener than ever to explore a space that’s innovating at such a pace. To that matter, Ivascyn said:

Pimco is thinking about scenarios where this could take us to ensure we are competitively prepared to deal with what’s a rapidly changing environment that offers a pretty significant value proposition.

Daniel Ivascyn, CIO, Pimco
Categories
Bitcoin Crypto Exchange Crypto News Hackers

Infamous Mt Gox Hack Draws to a Close, Creditors Expect 150,000 in BTC Within a Month

The end may well be in sight for creditors of the now-defunct Mt Gox, which between 2011 and 2013 was hacked to the tune of an estimated 600,000 bitcoin or approximately US$53 billion based on today’s values.

In a statement issued this week, 99 percent of creditors voted in favour of a resolution distributing bitcoins in custody back to the creditors.

Creditors wait outside Mt Gox offices. Source: The Verge

The Notorious Mt Gox Heist

At one stage, Japanese exchange Mt Gox handled over 70 percent of all bitcoin transactions worldwide. The industry was in its infancy and, soon enough, the exchange’s security was quickly exposed as being woefully inadequate. Through a combination of ignorance, naivety and mismanagement, around 850,000 BTC were stolen between 2011 and 2013, the vast majority belonging to its customers.

Today, we have a plethora of user-friendly applications that make it incredibly easy for non-technical users to take control of their keys. This naturally reduces the financial harm experienced by users when exchanges are hacked, as was the case in Hong Kong earlier this year. Unfortunately for Mt Gox customers, at the time there simply wasn’t a convenient and uncomplicated way for non-technical users to take custody of their bitcoin.

After a series of hacks and growing negative press, Mt Gox ultimately filed for bankruptcy in 2014. Since then, creditors have been embroiled in various court cases in an attempt to recover their funds.

The End May Be in Sight for Creditors

According to the statement released, the Mt Gox trustee indicated that around 99 percent of the 24,000 creditors impacted by the exchange’s collapse approved the draft rehabilitation plan originally filed in the Tokyo District Court in February. Furthermore, claimants representing roughly 83 percent of total voting rights voted in favour of the plan.

The trustee indicated that he expected the distribution of assets to commence within a month or so, once the rehabilitation plan became “final and binding”.

Unfortunately for the creditors, although unconfirmed, the trustee is said to only have 150,000 BTC to repay the affected users. While some are undoubtedly going to feel aggrieved, for some it may well have been a blessing in disguise in the sense that they are likely to have sold a long time ago.