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Bitcoin News

New Study Shows: No Correlation Between Bitcoin’s Price And Tether

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A new study published by the University of Queensland reached today’s bitcoin news where the writer Wang Chun Wei explains that USDT grants do not have a significant effect on bitcoin’s price fluctuations.

In the study, however, you can see that there is a positive relationship between USDT issuance and the increased trading in cryptocurrencies right after. Wei claims there’s no evidence of USDT manipulating BTC’s price. The key proclamation in the study is that ‘’it’s unlikely that tether manipulation caused the 2017 bitcoin rally.

However, Wei argues that USDT grants propose a light relationship with some price swings between Tether issuance and the trading volume and that Tether trading even increased the periods of negative Bitcoin returns. He also notes that he found Tether grants were timed to follow Bitcoin’s slumps confirming another study by Griffin and Shams where they say that purchases with Tether are timed to follow Bitcoin dips so Tether can be used to support Bitcoin prices.

Many other analysts will happily disagree with Wei. Some believe that even though there are many factors that impact Bitcoin’s price movements, bitcoin rallies are correlated with a new issuance of USDT, which is the dollar-pegged “stablecoin” token. The fact that Tether is issuing new tokens is a sign that new capital is coming in the crypto markets. The tokens are created when individuals or organizations deposit physical dollars into Tether’s reserve bank accounts. Also, there are analysts who claim that Tether is increasingly impacting the prices of smaller altcoins such as EOS and NEO instead of the large-cap altcoins.

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Altcoin News

Crypto Analysts: 2019 May Be A Year Of Bitcoin Accumulation

Over the past day, the crypto market recovered from its previous position and reached $123 billion as Bitcoin also managed to avoid another drop below the $3,600 mark. In the latest crypto news, we take a look at some analysis from multiple crypto technical analysts. Some analysts think that because of the high sell-off intensity in the previous period, there is a strong chance for the price of BTC and other altcoins to drop even further below their support levels in the short-term. Also, they believe that Bitcoin will even decline as low as $3,100 by the end of the bear market before recovering by the end of 2019. Crypto technical analyst Eric Thies said that Bitcoin might start a strong movement upwards by the end of 2019:
 “Similar to 2015, 2019 may be the year of accumulation.’’
Another crypto researcher Willy Woo said that while a crash of bitcoin to $3,122 could lead to an increase in volume, it won’t show signs of starting of the accumulation period. He pointed out:
‘’Despite the technical setup that suggests bullishness is possible, there’s not a lot on-chain volume to fuel a prolonged up move. What we saw in the last 7 weeks was a spike of on-chain volume driven by volatility, coins moving to exchanges to trade. The initial volume spike false signalled a faster detox and an earlier end to the bear market, but in fact it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.’’
Until evidence for the accumulation of crypto assets shows up, there are still expectations of high volatility levels.
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Altcoin News

Scott Galloway Of UCLA Believes Crypto Will Get Worse In 2019

A professor from the University of California, Los Angeles (UCLA), Scott Galloway, believes that crypto will be even worse this year and in our bitcoin news today we find out more about his opinions. Galloway thinks that crypto will struggle even further in the following 12 months because most of the emerging technologies and markets tend to move by cycles. This is why the crypto market seems to be unaffected by the developments in the industry and this is why the value of digital assets moves mostly because of sentiment than by short-term events. Last year, many of the emerging markets such as crypto and virtual reality, had really poor progress and market growth. It is extremely hard for new technologies to go with massive changes since the investors become impatient really easy. However, prior to 2018, all of these technologies had great years which led to their value increases. The professor pointed out:
‘’VR and crypto go from bad to worse. AI fails to live up to the hype. 3D printing rises from the ashes. Smart cameras become a hot category.’’
His assessment seems to be accurate but can the crypto market prove to be the odd one out? This can be so since many industries are really committed to the crypto sector. Companies such as Fidelity, ICE, and Nasdaq have funded at least five projects in the crypto space over the past year. Venture capitalist Jim Breyer even said:
 “So many of the very best computer scientists and deep learning Ph.D. students and postdocs are working on blockchain because they have so much fundamental interest in what blockchain can mean. You don’t want to bet against the best and brightest in the world.’’
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Bitcoin News

Pantera Capital CIO: “Bitcoin Will Not Succeed As Money”

The CIO of Pantera Capital, Joey Krug, is in the latest cryptocurrency news for his recently written thesis in which he states that Bitcoin won't succeed as money. As Krug believes, cash payments are not the primary areas where blockchain technology catalyzes a paradigm shift. According to Krug, Bitcoin may become digital gold - but never succeed as money - mostly because of its volatility and the lack of a dynamic monetary policy for the most dominant cryptocurrency. Krug also stated that the Beam Network has a good chance of tackling the issue of money. The organization is in fact led by him as well as the founder of Bolt, Ryan Breslow, among others. It aims to pursue the original vision of crypto payments.
"Bitcoin created the ability to send money around the globe cheaply and easily without having to trust a third party," Krug was confident.
He also went on to discuss several revolutions in the past, from the information revolution triggered by printing press up to the telegram, telephone, radio, television and finally, the Internet. When asked about finance, Krug believes that the industry has made leaps of progress such as increases in execution speeds, online user interfaces, brokers etc. However, he stated that a financial revolution powered by the blockchain could advance us into a next era where money, value and finance will all be coordinated thanks to crypto.
"This infrastructure will be borderless, cheap, quick, and, most importantly, will let people trade on things they’ve never been able to exchange before, and if markets for those don’t exist yet, it’ll let them create it," Krug concluded.
 
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Bitcoin News

Scottish Man Sentenced To Prison For Buying Firearms On The Dark Web With BTC

A Scottish man named David Mitchell, a 48-year-old from Edinburgh is in our crypto news today after using bitcoin to buy a 9mm handgun with 150 rounds worth of ammunition on the dark web. He spent almost $3,000 worth of bitcoin on the dark web hoping to ship it from the United States into Scotland. His package was intercepted by the Organized Crime Partnership and was replaced with another fake package sent to Mitchell’s address where officers had set up surveillance. The police officers acquired a search warrant and stormed his house and found the fake package after which he was arrested and charged with illegal possession of firearms. He pleaded guilty and was sentenced to 5 years in prison. The defense lawyer QC John Scott said in court that Mitchell has a history of depression and didn’t really have plans to use the firearm. He only did it because he wanted to know if it was possible. Mitchell has no previous convictions and was described as a reliable asset to the company that he works in according to his employer. The Judge Lord Pentland said:
‘’You claim that you had no intention of causing harm to anyone but the fact remains that you went to considerable lengths to get hold of a potentially lethal weapon and ammunition. You must have appreciated that this was unlawful. For this conduct you must be punished.’’
This case is only a number in the series of similar cases where bitcoin is used to carry out illegal activities on the dark web.
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