In the latest Bitcoin news, we are all monitoring the price movement of the leading cryptocurrency out there and its fresh yearly low which was touched last morning, leaving traders and investors uncertain about whether Bitcoin will finally hit a bottom.
According to research from CryptoCompare, however, the South Korean cryptocurrency exchange Bithumb supposedly took advantage of this drop and contributed to the recent sell-off – at least in an indirect way.
As Bithumb’s CCCACG (CryptoCompare’s Aggregate Pricing Index) shows, the exchange led all crypto exchanges in daily volume from October to November and averaged about $1.24 billion in daily turnover. This represented a month-over-month increase of 284% even while Binance which is the leader in exchanges endured a 34% decline in volume this month.
Unsurprisingly, the volumes of Bithumb were not organic which is why many crypto aggregators still list Binance as the world’s highest volume cryptocurrency exchange. Rather, the increased volume for Bithumb may correlate with several trading promotions which appear to have enabled the exchange to ramp up its daily volume, even as the number of active traders decreased.
As the report notes:
“Bithumb saw a 284% increase in volumes from the previous average of 323 million USD for the Sept/Oct period. This increase in volumes follows after Singapore-based BK Global Consortium bought a controlling share in the exchange in recent months, and later implemented a series of airdrop competitions, raffles, rebates, and other programs designed to incentivize non-Korean users to sign up to the exchange and trade in exchange for rewards. They have also implemented a potential form of trans-fee mining for certain users, where trading beyond a specific volume is rewarded in the form of “Bithumb Cash” at a later date.”
Mati Greenspan, who is a senior market analyst at eToro, commented on the report stating that Bithumb should not probably blamed for the recent Bitcoin price crackdown – but its trading promotion may have helped the market remain stable for longer than it would otherwise.
“If these findings are indeed accurate, I would say that blaming South Korea for the drop wouldn’t exactly be correct,” Greenspan wrote in daily market commentary shared with CCN. “More likely, it appears that the volume promotion by Bithumb caused several months of stabilization in prices, to begin with,” Greenspan noted.
Analysts Confirm: The Bomb Threats Aren’t The Reason For The BTC Price Drop
“Please be advised – there is an email being circulated containing a bomb threat asking for bitcoin payment. While this email has been sent to numerous locations, searches have been conducted and NO DEVICES have been found.”Also, it is highly unlikely that the bomb threats cause the price to decline because the closing of the investigation would lead for the value of BTC to rise since there were no devices discovered that were connected to the bomb threats.
Coinbase Adds PayPal Withdrawals To Its Platform (For U.S. Citizens)
“There is new technical work to make this possible, and that was done in conjunction with PayPal.”However, this Friday Osgood wrote that the partnership provides Coinbase customers an alternative to the traditional federal wire or automated clearing house (ACH) network that they were required to use. As he said:
“These traditional finance networks can add up to two business days to a withdrawal. We’re always looking for ways to not only meet the bar set by traditional finance, but raise it. That’s why we rebuilt our integration to ensure that the speed and reliability of PayPal withdrawals does just that.”The service is for now only available to customers in the United States, but could continue to be added to other nations across 2019, as Osgood wrote.
Bitcoin Plunges To A Yearly Low, Market Is ‘Prepared’ To Go Below $100 Billion
“As BTC is approaching the target of the 2014 fractal the targets of most people change from 3k to 1k and even lower. I still think $2,700 is an excellent place to buy if we should go there. ‘History doesn’t repeat itself but it often rhymes.’”Currently, there is a big risk in shorting and longing Bitcoin and other major cryptocurrencies in the market, which is why investors are observing the short-term trend of the crypto market by holding out on their trading activity.
Circle CEO: ‘’Bitcoin Will Be Worth A Great Deal More Than Today’’
“I don’t make significant price predictions. But it’s certainly going to be worth a great deal more than it’s worth today. I am long in the market.”Allaire says that the people who lost a ton of money in the bear market will only get back into the game because of the fundamentals of cryptocurrencies and that they won’t change despite the downturn in prices. He also believes that bitcoin plays a huge role as a non-sovereign store of value. Allaire continued to explain:
“The key thing with bitcoin is that it is unique in its security and its scale. As an idea that we need a scarce, non-sovereign store of value that individuals can hold in a protected fashion — that’s attractive all around the world.”However, he thinks that some of the digital currencies will eventually die off due to overcrowding of the market but this doesn’t mean that if one digital currency succeeds that the rest will cease to exist. When asked about the burning question of regulation, he says that the United States has one of the most transparent regulation since most of the digital currency and banking systems have already been regulated, many of which this year only. Circle is already regulated under the Bank Secrecy Act and money transmission laws and this is a very important element for all the customers and users.
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