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Christie’s to sell its first non-fungible-token as part of epic Bitcoin artwork

Christie’s is set to sell its first nonfungible token in an upcoming auction of what has been characterized as “the largest artwork” in the history of Bitcoin (BTC).

Art historian turned blockchain artist Robert Alice has created “Portrait of a Mind” — a monumental series of 40 paintings stretching over 50 meters in length. 

Drawing on the history of 20th century conceptualism as well as the founding myth of Bitcoin’s creation, “Portrait of a Mind” is a complete hand-painted transcription of the 12.3 million digits of the code that launched the cryptocurrency.

By scattering the codebase into 40 globally distributed fragments, the project will “draw up a global network of 40 collectors where no one individual will hold all the code,” Alice said. He explained:

“In each work, an algorithm has found a set of hex digits that together are highlighted in gold. These read a set of coordinates that are unique to each painting. 40 locations across 40 paintings – each location is of particular significance to the history of Bitcoin.”

Speaking to Cointelegraph, Alice said he remains curious as to why much of the commemoration of Bitcoin emphasizes the publication of the whitepaper over and above the codebase itself, which, for him, is “the real historical document.” 

Christie’s will sell one painting from the series, “Block 21 (42.36433° N, -71.26189° E),” as part of its “Post-War and Contemporary Day Auction” on Oct. 7, at the end of a week-long exhibition of auctioned works in New York. 

The piece includes a unique fungible token as an integral part of the work and will be offered at an estimated price of $12–18,000.

Early collectors of paintings from “Portrait of a Mind” include Binance founder Changpeng Zhao and Bloq chairman Matthew Rozsak. Alice has said that by showcasing and selling an NFT at Christie’s, he hoped to spur other contemporary artists to take a look at the NFT space. 

Aside from the creative inspiration artists can draw from cryptocurrencies’ complex cultural, technical and politically dynamic history, NFTs can also give artists “more control and a better stake in their practice over the long term,” he said.

Just last week, Cointelegraph reported on the auction of a digital art piece based upon Bitcoin’s fluctuating price action, which sold for over $100,000. Like “Portrait of a Mind,” the artwork integrated an NFT to vest its collector with tokenized ownership rights.

Bitcoin options still bullish despite this week’s $900 BTC price drop

The $900 Bitcoin (BTC) price drop over the past two days might have been scary for novice traders, but those trading futures and options don’t seem bothered. 

Cryptocurrency daily market performance snapshot

Cryptocurrency daily market performance snapshot. Source: Coin360

As Bitcoin price rallied to $11,000 on Sept. 19, investors may have become overly excited as the price briefly broke an important resistance level. 

The steady rally lasted ten days and saw Bitcoin’s dominance rate rebound for a 15-month low and this had some traders calling for a return to the $12,000 level.

This sentiment began to shift once it was clear BTC would not be able to hold the $11K mark and the correction to $10,300 had some analysts calling for a sub-$10K CME gap fill

While retail investors may have been spooked by the slight correction, professional investors gauge market conditions and sentiment by using different tools than those used by day traders and the retail crowd. 

Indicators such as basis, options skew, and futures open interest price provide real-time data on how professional traders adapted after the drop to $10,300, along with BTC’s brief rebound to $10,500.

Contracts and liquidations provide insight

The first step pro traders use is to look at futures open interest data to measure the total value of active contracts. Whenever traders have their positions liquidated due to insufficient margin, the exchange automatically closes their positions.

As shown below, BTC total futures open interest dropped less than 5%, remaining at a healthy $4 billion level. The current figure is stable compared to a week ago, and indicates that liquidations due to insufficient margin were not that significant.

Total BTC futures open interest

Total BTC futures open interest. Source: Bybt.com

The underwater leveraged longs could undoubtedly have added more funding to prevent their positions from being forcefully closed. To assess whether this is the case preventing yesterday’s sharp price drop from impacting liquidations, we need to analyze future contracts basis.

Is there contango or backwardation? 

Basis is also frequently referred to as the futures premium, and it measures the premium of longer-term futures contracts to the current spot (regular markets) levels. Professional traders tend to be more active than retail on such instruments due to the hassle of handling expiry dates. 

These fixed-month contracts usually trade at a slight premium, indicating that sellers request more money to withhold settlement longer. On healthy markets, futures should trade at a 5% or more annualized premium, otherwise known as contango.

BTC 3-month futures annualized basis

BTC 3-month futures annualized basis. Source: Skew.com

The above chart clearly states that the futures premium (basis) did not abandon its bullish stance, holding a near 6% annualized level. Apart from a brief moment on September 3, when Bitcoin faced a $2,000 drop over two days, the basis indicator has held above 5%.

Nevertheless, this premium could have been caused by factors not directly related to traders’ bullishness. If competing products in decentralized finance (DeFi) pay high incentives for cryptocurrencies deposits, sellers will demand a higher premium on future contracts.

To clarify such uncertainty, one should turn to Bitcoin options markets. Call options allow the buyer to acquire BTC at a fixed price on contract expiry. On the other hand, put options provide insurance for buyers and protect against BTC price drops. For this privilege, the buyer pays an upfront premium to the contract seller.

Whenever market makers and professional traders are tending bullish, they will demand a higher premium on call (buy) options. This trend will cause a negative 25% delta skew indicator.

The opposite will hold true whenever large investors are worried about a short-to-medium term price correction. The put (sell) options that protect from downside should trade at a larger premium than call (buy) options during bearish markets. This situation will result in a positive 25% delta skew indicator.

BTC 3-month options 25% delta skew

BTC 3-month options 25% delta skew. Source: Skew.com

Although there is no set rule, a 25% delta skew indicator ranging from 10% negative to a positive 10% level could be deemed neutral. Numbers below that range are almost certainly an indicator of bullishness, and that is currently the case.

Currently, there is no indication of desperation, bearishness, or unusual activity regarding BTC futures and options markets. Instead, the primary metrics show resilience and a slight bullish stance, a scenario which is opposed to what one might expect after the price failed to break through the $11K resistance.

Traditional markets continue to impact Bitcoin price

Yesterday’s move happened in tandem with a 7.5% increase in the S&P 500’s volatility (VIX) indicator. 

The VIX has long been considered the traditional markets primary fear indicator. This movement can partially explain why derivatives traders were not particularly bothered by yesterday’s negative price swing.

BTC (blue) versus S&P 500 VIX (red)

BTC (blue) versus S&P 500 VIX (red). Source: TradingView

The above chart shows the inverse correlation between the S&P 500 VIX index and Bitcoin price. Throughout 2020 most periods of uncertainty in traditional stock markets have reflected negatively on Bitcoin’s performance.

As a word of caution, there’s no guarantee that this correlation will continue for the remainder of the year. Therefore, one shouldn’t alter their BTC positions exclusively based on the moves mentioned in this article. 

However, professional traders will continue to keep a close eye on the VIX indicator in order to decide whether a BTC drop seems strictly stock-market related.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Binance.US CEO calls companies not integrating crypto ‘ignorant’

Catherine Coley, the CEO of crypto exchange Binance’s United States branch, says adopting crypto may be one of the only ways for businesses to be “pandemic resilient” going forward.

In a Sept. 21 interview with Joe Weisenthal and Tracy Alloway on Bloomberg’s Odd Lots podcast, Coley said crypto had the ability to offer “uses beyond speculation” wherein investors could engage in e-commerce transactions, drive new businesses, and other real-world applications like mortgages:

“If you’re building a company in the next five years and you do not consider digital assets as a component, you’re going into this in an ignorant way. It’s an adoption case that is pandemic resilient.”

The CEO said going forward, companies should take their cues from cryptocurrency, which has made conversations about money more digestible for the average person but also more accessible to professionals in traditional finance.

“This is an industry that is reaching a significantly different audience than finance,” said Coley. “I’ve been able to stay off the streets because of crypto and there is so much benefit in that, that people underestimate.”

Coley has served as the CEO of Binance.US since 2019. In the last month, the exchange announced it had cleared regulatory hurdles to expand its operations to Florida, Alabama, and Georgia. New legislation may make it possible for the exchange to open its doors to all traders in the U.S. by 2021.

US banking regulator authorizes federal banks to hold reserves for stablecoins

Per an interpretive letter from the U.S. Office of the Comptroller of the Currency released on Monday, national banks will be free to hold reserve currencies for stablecoins.

The new guidance reads, “We conclude that a national bank may hold such stablecoin ‘reserves’ as a service to bank customers.”

Alongside the announcement, Acting Comptroller of the Currency Brian Brooks noted that stablecoin services are already a part of many banks’ activities: “National banks and federal savings associations currently engage in stablecoin related activities involving billions of dollars each day.”

The letter does, however, specify that for now, this will only apply to stablecoins backed 1:1 with another currency, meaning that tokens dependent on “baskets” of currencies like Saga or some versions of Libra are excluded. 

Tether (USDT) is a famous example of a stablecoin pegged to the U.S. dollar, using reserves held in New York. However, there has been lingering controversy over Tether allegedly using those reserves to cover losses at sister exchange Bitfinex.

Since Brian Brooks, the former head of Coinbase’s legal department, took over as acting head of the OCC in March, the office has been extremely active in expanding the role that crypto can play in U.S. banks. In July, the OCC sent out a similar decision confirming that federal banks can custody crypto assets.

Wisconsin Assembly candidate is accepting Bitcoin donations again

A candidate for Wisconsin State Assembly is challenging a state regulator by accepting donations in cryptocurrencies like Bitcoin (BTC).

Phil Anderson, a real estate broker and entrepreneur, now accepts cryptocurrency donations for his Assembly campaign. According to an official statement by Anderson, crypto donations are available via major cryptocurrency payment service provider BitPay.

Anderson said that his campaign is accepting crypto donations despite regulatory uncertainty from the Wisconsin Ethics Commission.

Back in 2018, Anderson accepted Bitcoin donations in his campaign for Governor of Wisconsin despite the WEC finding them a “serious challenge” to compliance with state law. According to the candidate, the WEC failed to arrive at a decision regarding the legal status of crypto donations in the state in 2018.

As such, the Wisconsin Assembly candidate is challenging the regulator again, arguing that the WEC “declined to interpret its own rules competently.” Anderson believes that crypto is a legitimate way to make campaign donations because “cryptocurrency is money.” The candidate promises to “push for the laws to be friendly toward cryptocurrency in Wisconsin.”

“I refuse to give in to ignorance and bureaucratic incompetence […] People have the choice as to how they contribute, and it’s my intention to honor those choices. If my opponent or the Ethics Commission are interested in challenging me, I’m ready for a fight,” he said.

A number of political candidates for various offices in the United States have been accepting crypto as donations for their campaigns. Andrew Yang, a former presidential candidate, was accepting Bitcoin donations for his political action committee in 2019. In August 2020, Representative Tom Emmer (R-MN) also started accepting campaign donations in crypto via BitPay.

Top 5 cryptocurrencies to watch this week: BTC, NEO, XMR, ADA, LINK

The total crypto market capitalization has recovered from the Sep. 6 lows near $314 billion but it is struggling to sustain above the $350 billion mark, which shows that higher levels continue to attract sellers.

Bitcoin’s (BTC) dominance fell from above 68% in mid-May to about 56% in the first half of this month as DeFi tokens embarked on a strong bull run. 

However, in the past few days, the DeFi assets have witnessed sharp corrections and their volatility has increased. This could possibly shift traders’ attention back to Bitcoin. It’s also possible that Bitcoin’s inability to hold above the $11,000 level could also be negatively weighing on the confidence of altcoin and DeFi-token traders.

Crypto market data daily view

Crypto market data daily view. Source: Coin360

Although Bitcoin has been struggling to find momentum, a positive is that the volume of Bitcoin futures trading on Bakkt has been increasing and the exchange whale ratio is near yearly lows. This suggests accumulation by the whales and institutional traders.

Currently, most major cryptocurrencies are not following a general trend as the price action has been mostly coin specific. This has opened up opportunities both on the short side and the long side. Hence, in today’s list, two short ideas have been discussed for the traders who are bearish on the crypto markets.

BTC/USD

The relief rally in Bitcoin is facing stiff resistance near the 50% Fibonacci retracement level of $11,147.60. This shows that the bears have used the current relief rally to initiate short positions.

BTC/USD daily chart

BTC/USD daily chart. Source: TradingView

If the bears can sink the price below the uptrend line and the $10,625 support, it will signal weakness. If the BTC/USD pair sustains below $10,625, it will increase the possibility of a retest of $9,835.

However, if the pair rebounds off the $10,625 support sharply, this will be the first sign that the correction might be over. Trading momentum is likely to pick up after the rally breaks above the downtrend line.

If the price closes (UTC time) above the downtrend line, the possibility of a rally to $12,460 increases. Even though there is resistance at $12,000 it seems likely that it will be crossed.

BTC/USD 4-hour chart

BTC/USD 4-hour chart. Source: TradingView

The pair is currently attempting to rebound off the uptrend line, which suggests that the bulls purchased the dip to this support. The buyers will now make one more attempt to push the price above the $11,147.60 resistance.

If the bounce fizzles out and the bears sink the pair below the uptrend line, a drop to $10,625 could occur. This is an important support for the bulls because selling is likely to intensify if this level breaks down.

If the pair rebounds off $10,625, a few days of range-bound action is possible. The flattening moving average on the 4-hour chart suggests a balance between supply and demand. 

NEO/USD

NEO is currently facing stiff resistance at $25.23, which shows that the bears are aggressively defending this resistance. However, as it is in an uptrend, traders are likely to view the dips as a buying opportunity. 

NEO/USD daily chart

NEO/USD daily chart. Source: TradingView

The immediate support on the downside is at $23 and below that at the 10-day simple moving average ($22.26). If the NEO/USD pair rebounds off either support, it will indicate that the bulls are not waiting for a deeper fall to buy which is a positive sign.

If the bulls can push the price above the $25.23–$25.78923 resistance zone, the uptrend is likely to resume. The next target on the upside is $29.

A break below the 10-day SMA will be the first sign that the momentum is weakening and a drop below $20.9633 will signal a possible change in trend.

NEO/USD 4-hour chart

NEO/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls pushed the price above the $25.23 resistance twice but they could not sustain the higher levels. This shows that the bears are attempting to stall the rally at this resistance. 

However, on the downside, the bulls have not allowed the price to sustain below $23, which shows that the buyers are accumulating on every minor dip. 

This could keep the pair stuck between $23 and $25.50 for a few more days. The moving averages have flattened out, which suggests a balance between supply and demand. 

XMR/USD

The recovery in Monero (XMR) from the Sep. 5 low of $74.1012 has been strong and the bulls have pushed the price back above the moving averages, which increases the possibility that the correction might be over. 

XMR/USD daily chart

XMR/USD daily chart. Source: TradingView

However, the bears are unlikely to give up without a stiff fight at the $97.4615 resistance. If the XMR/USD pair turns down sharply from the current levels and breaks below $84, a drop to $74.1012 is possible.

Conversely, if the bulls can arrest the next dip at the 20-day exponential moving average ($89), it will increase the possibility of a breakout of $97.4615. Above this resistance, a move to $105.9131–$107.3742 is possible. A break above $107.3742 can result in a rally to $120.  

XMR/USD 4-hour chart

XMR/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the recovery from $74.1012 has been gradual. Although the bears broke the pair below the 30-EMA on several occasions, they could not capitalize on it and intensify the selling. 

This shows that the bulls are accumulating on dips. Currently, the price has again dipped back below the 30-EMA. If the pair rebounds off the current levels, the bulls will try and drive the price above the overhead resistance at $97.4615.

The short-term momentum is likely to weaken if the bears can break and sustain the price below the immediate support at $87.5629. 

ADA/USD

The relief rally in Cardano (ADA) from the lows of $0.0855982 on Sep. 6 hit a stiff resistance at $0.0997444 on Sep. 13. The moving averages are sloping down, which suggests that the bears are in command.

ADA/USD daily chart

ADA/USD daily chart. Source: TradingView

In a downtrend, the bears short on pullbacks to resistance levels as that improves the risk to reward ratio of the trade. Currently, if the bears can sink the ADA/USD pair below the $0.0855982 support, the decline might resume.

Traders can consider taking positions on the short side with an appropriate stop-loss to benefit from the likely down move. The next support on the downside is at $0.074 but if this support fails to hold, the drop can extend to $0.05. 

This bearish view will be invalidated if the pair rebounds off $0.0855982 and the bulls drive the price above $0.10. Such a move will suggest that the downtrend might be over. 

However, it is not necessary that a new uptrend starts as soon as a downtrend ends because many times, the price remains range-bound as it tries to form a bottom. 

Therefore, traders can step aside and wait for a new bullish setup to form if the price breaks above $0.10.

ADA/USD 4-hour chart

ADA/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has been gradually declining towards the critical support at $0.0855982 and a close (UTC time) below this level is likely to start the next leg of the down move.

However, if the pair rebounds off $0.0855982, the bulls will make one more attempt to propel the price above $0.10. If they succeed, a quick relief rally is possible.

Conversely, if the price again turns down from $0.10, the pair might remain range-bound for a few days.

LINK/USD

Chainlink (LINK) is in a downtrend and it has been making a lower high and a lower low pattern for the past few days, which shows that the bears are using the relief rallies to sell. 

LINK/USD daily chart

LINK/USD daily chart. Source: TradingView

The down sloping moving averages suggest that the trend favors the bears. If they can sink the LINK/USD pair below $9.65, a drop to $9 is likely. This is an important support to watch out for because a break below this level is likely to resume the downtrend.

The next support on the downside is $7. Therefore, traders can consider benefiting from the possible down-move.

This bearish view will be invalidated if the pair turns up from the current levels or rebounds off sharply from the $9 levels and breaks above the downtrend line. 

LINK/USD 4-hour chart

LINK/USD 4-hour chart. Source: TradingView

On Sep. 5 and 6, the bears were unable to sustain the price below $10.50, which shows that the bulls were attempting to defend this level. 

However, during the current fall, the price has been sustaining below $10.50 for the past two days, which suggests that the buying has dried up.

The moving averages are sloping down gradually and the price is below the averages, which suggests that the advantage is with the bears.

A break above the 30-EMA will be the first sign that the bears are losing their grip. Until then, the path of least resistance is to the downside. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Yearn Finance founder nominates self as Uniswap delegate

Yearn Finance founder Andre Cronje puts himself up as a delegate for Uniswap hoping to influence the governance of the protocol.

In a tweet, Cronje said he “will build tooling to facilitate delegation, off-chain voting, and on-chain enforcement” if made a delegate. He added:

“At this point, I do not think it should be a rush to incentivize liquidity pools (this can be abused). I believe we have an opportunity to re-evaluate the tokenomics and distribution. We can help DAI or sUSD reach peg. We can provide support for further development.”

Uniswap announced it wants to bring in a “diverse and high-quality set of protocol delegates” who will discuss governance issues over the protocol and its token UNI. According to the network, this governance structure allows UNI holders to be responsible for ensuring the protocol meets compliance standards. Uniswap leadership already promised that they would not participate in the protocol’s governance.

As soon as Cronje announced his intention to be a Uniswap delegate, followers asked if it as his intention for the YFI-ETH pool to be included in the UNI liquidity pool. He said:

“At this time, no, it would attract YFI holders to provide liquidity instead of using it for its intended purpose (such as governance). I believe there is better value add that can be done for the overall ecosystem by utilizing UNI incentives in other proposals. To add onto this, there are also other market incentives that can help the overall ecosystem better. A DAI:sUSD pool for example can help both DAI and sUSD pegs. Simply incentivizing liquidity is not a positive sum, this can also be easily abused as “exit” liquidity.”

Cronje previously showed some disdain over the state of the decentralized finance, or DeFi, sector as Yearn shunned releasing a governance token for its decentralized lending platform.

Within three hours of Uniswap releasing UNI, 13,000 Uniswap users immediately claimed their free 400 UNI. Binance and OKEx both listed UNI and the token has emerged as one of the top 20 DeFi tokens.

Financial literacy will make the digital asset industry sustainable for the future

The cryptocurrency market is still in its infancy, and the overpowering sense of possibility is strong. The range of attitudes toward crypto is generally broad, but recent surveys shed light on certain inclinations one way or another. On one hand, we see beginners who venture into projects they fail to fully grasp, and on the other, we see aspirants to crypto investing who question their capability of getting involved.

At one end of the spectrum are the crypto dilettantes, where interestingly, understanding and confidence tend to be inversely correlated. Last year, Dutch bank ING interviewed around 10,500 people in Europe about cryptocurrencies. Of the 13% with the lowest crypto knowledge, 80% demonstrated high or medium confidence in its future. The cognitive bias these findings suggest makes for an uncomfortable journey toward crypto mass adoption. Still, I believe that interest, whether matched by sound understanding or not, is a step in the right direction.

An earlier survey that polled 1,000 online investors reveals that 44% of respondents were not trading crypto because they felt they lacked the proper education. More than half of the women surveyed, in particular, admitted that a shortfall in knowledge was the biggest barrier to entry into crypto investing, even though their interest in doing so matched that of the men. A separate poll conducted by Grayscale last year finds that U.S. investors would be more likely to invest in Bitcoin (BTC) if they were more knowledgeable about the asset, relative to stocks and bonds.

This limitation no longer goes unnoticed in the space. CoinMarketCap’s interim CEO, Carylyne Chan — who recently resigned — shared she was leaving the cryptocurrency data website with the hope that it will play a more prominent role in cryptocurrency education.

A lack of financial education

Falling into the FOMO or being frozen by the FUD is simply questioning your own judgment. Would either of these externally imposed calls to action or inaction ever go as viral if people were simply better informed?

The blame is not entirely on the individual, however. With reputable publications circulating articles on how you are the only one not striking it rich on BTC, there’s no wonder people are rushing to create a wallet. Yet the only acronym you should swear by is DYOR before you “dip your own resources” into “the next Bitcoin.” This whole narrative leads to ill-considered investments and propels the search for a quick crypto buck.

As a result of the low barriers to entry, inexperienced investors without a financial background venture into the crypto space in expectation of instant returns. It is a legit strategy to reap profits off of day trading, but it is unfair and short-sighted to make the entire industry about that. How do we expect traditional financiers and those coveted “billionaire’s approach” proponents to take digital assets seriously, given that for most crypto investors, long term is a week?

The perceived dichotomy between digital and traditional finance can be debunked by showing potential investors that basic financial principles are a stepping stone for successful crypto involvement and that a misunderstanding about an ordinary process in corporate finance can put all players involved at a loss.

One feature that occurs in both types of finance is dividends payments. This year, many companies globally tried to distribute dividends against a backdrop of bankruptcy filings and record unemployment in the markets. Those with a solid financial understanding would be aware that while the control over dividends policies falls entirely under the company distributing them, the share/token price is entirely market-driven, and crypto markets are notoriously more volatile. Dividend payments impact price: Typically, a rise is expected on the announcement date and a decline by a similar amount on the ex-dividend date.

Understanding these principles when expecting dividends from crypto companies means users will be more aware of their movements during these times, whether they’re rushing to buy more tokens, which can inadvertently cause the price to spike, or selling their tokens once the dividend amount is revealed.

Mainstream companies face the same trials as crypto companies in this regard. According to a report by Janus Henderson, a fund manager that tracks dividends globally, there have been cuts in dividends payouts in every region except North America. Mainstream financial companies failed to meet shareholders’ expectations, and the worry is that by the time these companies can afford to pay dividends — in, say, 2021 — they will have already lost the trust of their investors.

For blockchain companies with sustainable business models, the disconnect with finance concepts that do-it-yourself investors from the still-niche crypto community seem to display is discouraging to see. Being the sovereign of your assets comes with a set of responsibilities, and we are all learning together how to overcome the challenging parts of this industry for a stronger future.

Do digital assets make traditional finance nervous?

Apparently not when it comes to U.S. and European institutional investors. New research from Fidelity Digital Assets shows that 36% of the nearly 800 institutional investors polled are already invested in digital assets. A whopping near 80% of them find something appealing about the asset class, be it the innovative technology or the high potential upside. The legitimacy of crypto in traditional financial markets will be much easier to achieve if we see more and more examples of backers that are in it for the long run.

As well as seeing examples, believing in the future of a new technology does not always have to be met by a resounding yes or no. That’s precisely why you need education — to see the nuance, critically. The economic crisis stemming from the COVID-19 pandemic made everyone look to places other than just central-bank-regulated currencies, and a modern gold rush ensued, followed by very volatile months for Bitcoin.

Most traditional investors are already backing BTC and altcoins, but no one dumps all their billions of dollars into a single asset class. Michael Novogratz, veteran hedge fund manager turned crypto crusader, put it quite wisely for those of us who were confused:

“My sense is that Bitcoin way outperforms gold, but I would tell people to have a lot less Bitcoin than they have gold, just because of the volatility.”

Novogratz is advising digital asset novices to put no more than 2% of their funds into BTC, saying that holdings beyond that threshold should be reserved for professionals.

Other firms such as Fidelity have shown the seriousness with which they are taking Bitcoin as an investable asset, as well. Fidelity recently filed paperwork with the U.S. Securities and Exchange Commission informing the regulator of a new fund dedicated to Bitcoin, and it has been an example of a traditional fund that sees the potential of digital asset investment in the long run.

In the end, despite these limitations, it is up to the whole community — businesses and individual investors alike, but also regulators and legislators — to make sure we know enough to invest well and to invest safely.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Antoni Trenchev is the co-founder and managing partner of Nexo, a provider of instant crypto credit lines. He studied finance law at King’s College London and Humboldt University of Berlin. As a member of Bulgaria’s parliament, Trehchev advocated for progressive legislation to enable blockchain solutions for a variety of e-government services, most notably e-voting and the storage of databases in a distributed ledger.

Will the CME Bitcoin futures gap buyers at $9,600 be left in tears?

The recent week has been relatively dull on the price movements of Bitcoin (BTC), as a slow upward trend was established after Bitcoin’s price found a footing at above $10,000. This rally then continued toward $11,000 on Sep. 18 but was pushed back by some short-term resistance levels. 

The previous week has been focused solely around Uniswap (UNI) and the airdrop of its token, combined with several listings on high-end exchanges. At the same time, let’s take a look at the price of Bitcoin and its charts to gauge where the cryptocurrency market may be headed in the upcoming week. 

Bitcoin is facing a crucial resistance between $11,200-11,400 

BTC/USD 1-day chart

BTC/USD 1-day chart. Source: TradingView

The daily chart of Bitcoin shows the slow upwards grind, which is currently facing a crucial resistance

The $11,200-11,400 area has been acting as support for a substantial period before the big crash to $10,000 occurred. If this area between $11,200-11,400 can be broken, a retest of higher levels is back on the table. 

However, as the chart also shows, the level to test around $9,600 (which is also the CME gap) wasn’t fully filled. The level got front-run by traders, and the price of Bitcoin bounced back above the $10,000 level. 

A range can now be constructed with these two regions. On the downside, the $10,000 area is a significant support zone with the potential of $9,600 being hit. On the upside, the $11,200-11,400 area is a crucial resistance area to break. 

Can the weekend see the $11,200 test?

BTC/USDT 2-hour chart

BTC/USDT 2-hour chart. Source: TradingView

The 2-hour chart shows a clear picture of the current uptrend. Every previous resistance level flips for support to continue this climb higher.

The crucial hurdle to take is shown in the big red box is found between $11,200-11,400. If that resistance level breaks through, retests of $12,000 are back in play. 

However, if the price of Bitcoin loses the $10,750 area, further downside becomes increasingly likely with the range lows around $10,000 as potential support levels.

The total market cap of crypto is in another accumulation range 

Total market capitalization crypto 1-week chart

Total market capitalization crypto 1-week chart. Source: TradingView

If you want to start analyzing charts, the higher timeframe ones are the best ones to start with. In this case, the total market capitalization of crypto presents some clear levels to watch.

As long as the market sustains above $250-255 billion, the market can be considered to be in a general uptrend. A fresh new higher high was printed and the market is currently seeking a new higher low.

Breaking through $400 billion may ignite some fireworks and push the value up to $500 and possibly $700 billion. 

The possible scenario for BTC/USD 

BTC/USDT 2-hour chart

BTC/USDT 2-hour chart. Source: TradingView

It’s unlikely to expect a clear breakout of the $11,200-11,400 resistance area in one-go. I’m assuming we’ll see further range-bound movements after a rejection at the $11,200 area. 

Key levels to watch include sustaining support at $10,750 and to resume the rally toward the resistance zone where a rejection will be the first thing to watch. 

If a rejection occurs, a bearish retest and confirmation of resistance of $11,000 will warrant further downward momentum, as the chart shows.

BTC/USD 2-hour chart

BTC/USD 2-hour chart. Source: TradingView

In other words, a bearish retest of the $11,000 level will likely tile momentum to the downside and increase the retest of $10,600 and $10,200.

For the bulls, establishing new yearly price highs highly dependent on breaking the multi-year resistance level at $12K to continue the general uptrend for the rest of the year. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

EU to see comprehensive crypto regulation by 2024

The European Union, or EU, plans to incorporate crypto and blockchain technology into its main processes by 2024. 

Over the next four years, the economic union aims to firm up fresh regulations that will promote blockchain and digital asset usage for international money transfers, according to internal documents that Reuters reported on Friday. 

The documents detailed:

“By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector […] It should also address the risks associated with these technologies.”

Finding that almost 80% of its population transacts in paper money, the European Commission, the union’s governing entity, wants to see digital payments become more common, while aiming for immediate transaction times, Reuters explained.

The commission’s reported aims include a desire for increased data access, financial activities availability — all while aiming for increased efficiency. “By 2024, the principle of passporting and a one-stop shop licensing should apply in all areas which hold strong potential for digital finance,” the documents noted. Over the next year, fast transaction avenues will likely take over, Reuters added. 

Although the COVID-19 pandemic may have expedited the desire for digital payments across the globe, blockchain and crypto assets have been the talk of the regulatory town, with many countries looking toward central bank digital currencies to streamline their payments infrastructures. 

UPDATE Sept. 18, 21:00 UTC: This article has been updated. 

Police summon Bithumb chairman for questioning over alleged fraud

The drama over alleged fraud involving Bithumb’s senior executives continues as the company’s chairman has reportedly been summoned for interrogation.

The Seoul Metropolitan Police Agency is purportedly seeking to question Lee Jung-hoon, chairman of board at Bithumb Korea and Bithumb Holdings, according to a Sept. 18 report by South Korea’s state-run news agency Yonhap.

As reported, Lee is allegedly accused of multiple fraud and embezzlement offenses regarding the failed listing of the BXA token. The purported fraud caused investor damages of up to 30 billion won ($25 million), the report notes. The police are also reportedly looking to question Lee over alleged embezzlement of investors’ funds in overseas property purchases or offshore investments.

According to Yonhap, Kim Byung-gun, another chairman at Bithumb, is accused of being involved in the BXA fraud alongside Lee. However, the police have not yet initiated an investigation against Kim.

The latest news comes shortly after Seoul police reportedly seized a number of shares in Bithumb Holdings belonging to Lee. The exec reportedly failed to acquire Bithumb, and has been sued in the process.

As reported by Cointelegraph, local police conducted two raids on Bithumb’s offices in connection to the alleged fraud in September.

Bithumb has not responded to any of Cointelegraph’s requests for comment. 

The Uniswap effect is leading to 208% gains on average for certain tokens

A report from crypto data provider, Cross Angle, claims that tokens which first gain traction on Uniswap have consistently provided 208% returns on average once listed by major centralized exchanges.

In the past, much had been said about the “Coinbase effect” and “Binance effect”, in which a token’s price allegedly experiences fast appreciation once listed by either of the former exchanges. However, this time, it is purportedly a combination of listings that yields results. The report’s authors examined a number of tokens that landed on a major centralized exchange after having already been listed by the Uniswap decentralized exchange. They concluded:

“The average return for top Uniswap-listed projects that successfully land on CEXs is a staggering +208% (YFI, YFII, REN, RSR, ZAP, AMPL, OM, BAL, SNX, UMA). Their token price, volume, wallet count, and active wallet count all saw dramatic increases.”

According to Cross Angle, the biggest winner is a decentralized stablecoin called “Reserved Rights”, which gained over 700%. As the authors do not fully disclose their methodology within the report, it is unclear whether these returns are annualized, or otherwise determined.

Earlier today, Uniswap released its governance token, with thousands of users immediately signing up to claim their free UNIs.