$100 Million Wiped From BitMEX as Bitcoin Dives $1,500 in Three Minutes

Ursprünglich erschienen auf: https://thebitcoinnews.com/100-million-wiped-from-bitmex-as-bitcoin-dives-1500-in-three-minutes/

Just over 12 hours after Bitcoin crossed $10,000 for the first time in weeks, the cryptocurrency dove off a proverbial cliff.
Approximately twenty minutes ago, the crypto was hit with a barrage of sell orders that took the asset as low as $8,600 on BitMEX (seen below). On spot exchanges and some other derivatives exchanges, the cryptocurrency held the low-$9,000s.
BitMEX’s Bitcoin price chart from TradingView.com.
On BitMEX, the asset dove more than $1,500 in three minutes in a massive move that liquidated many market participants.
Data from crypto derivatives platform Skew.com shows that approximately $96 million worth of long positions were wiped with this move lower. This is notably less than the ~$125 million liquidation event that took place when BTC took out $10,000 yesterday, suggesting the market was leaning long prior to the move.
Image from Skew.com showing the value of BitMEX liquidations over the past few days.
That Was a Bitcoin Long Squeeze
While Bitcoin crashed on both derivatives and spot exchanges alike, this was a clear long squeeze. That’s to say, there were sellers that wanted to push the price of BTC down by causing a wave of long holders to close their orders one after each other.
This is evidenced by the basis — the difference between the price of a Bitcoin contract on BitMEX and a BTC coin on Coinbase.
During the crash, the basis hit -6%, showing that there was sell pressure on BitMEX that didn’t exist on Coinbase and other spot exchanges.
The move also resulted in BitMEX’s open interest metric, which tracks the cumulative value of capital in its futures market, dropping from 70,000 BTC to 57,000 BTC. This further suggests the drop to $8,600 was a futures-driven move.
What Comes Next?
Analysts have yet to react to what comes next, but the leading cryptocurrency notably remains below the crucial support of $10,500.
$10,500 is the level at which Bitcoin was rejected at two crucial times over the past 12 months: once during the “Xi Pump” and another time during February’s rally to $10,500.
The fact that the cryptocurrency has made successive takes at the level without breaking past it suggests Bitcoin remains in a downtrend.
Robert Sluymer of Fundstrat Global Advisors, for instance, recently made the following comment on the importance of the level:

“Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week sma) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-dma.”

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Top Analyst Expects Ethereum to Soon Plunge Against Bitcoin: Here’s Why

Ursprünglich erschienen auf: https://thebitcoinnews.com/top-analyst-expects-ethereum-to-soon-plunge-against-bitcoin-heres-why/

Bitcoin’s performance over the past three days has been impressive, but even more so is Ethereum’s rally. Coin360.com data shows that the second-largest cryptocurrency is up 23% in the past seven days, while BTC is up 14% in that same time frame.
Investors in ETH believe that this trend will continue, citing the asset’s booming fundamentals. Yet a prominent analyst is calling for Ethereum to retrace against Bitcoin.
The analyst in question is one that predicted in the middle of 2018 that BTC would bottom at $3,200. This was an accurate prediction, with the leading digital asset putting in a macro low at $3,150 just six months after the forecast.
Ethereum Could Crash Against Bitcoin?
The analyst recently opined Ethereum still remains trapped in a potentially corrective pattern against Bitcoin. Due to the technical resistances overhead, the asset will soon top out and then fall towards macro lows, he implied in the chart seen below.

This comes shortly after the same analyst shared a bearish medium-term outlook on the charts of EOS, XRP, Bitcoin Cash, and Litecoin. Per previous reports from Bitcoinist, he said the following on those assets:
“I am very weary on alts here. Very ugly daily candles forming on a lot of the majors. EOS, XRP, BCH, and LTC all look like trash and likely going to have deeper C waves and head lower highs start forming here.”
There are fundamental reasons to be bearish on altcoins, not just Ethereum.
The co-host of the “Keiser Report” and one of Bitcoin’s earliest public advocates, Max Keiser, said in an interview that there is “no coin out there that can do something that Bitcoin doesn’t do already or will be able to do shortly.” 
A Top Macro Analyst Begs to Differ
Despite the growing bearish sentiment about altcoins as a whole, a prominent macro analyst thinks Ethereum can outpace Bitcoin.
Raoul Pal, the chief executive of Real Vision and former head of Goldman Sachs’ hedge fund sales division, shared the chart below after Monday’s rally. The chart shows ETH breaking out past a key resistance level against Bitcoin.

“It even looks like Ether will outperform Bitcoin at some point (no position yet). Please remember: No tribal attacks about bitcoin vs ethereum. They are two different things and two different ecosystems,” he said in reference to the chart below. The breaking of the donwtrend convinced Pal of the bull case. 

ETH/BTC chart from prominent Wall Street investor and analyst Raoul Pal (@RaoulGMI on Twitter).
Pal’s optimism has been echoed by a few other market participants.
Partner at crypto fund Bitazu Capital, Mohit Sorout, noted in late April that it is “quite possible that ETH has printed a major cycle low [against Bitcoin].” As to why he thinks this is the case, the investor pointed to two favors on ETH/BTC’s chart:

ETH/BTC has begun to print consecutive higher lows and higher highs, indicative of a reversal.
And the directional movement index (DMI) indicator has recently crossed bullish.

Quite possible that $ETH/ $BTC has printed a major cycle low.
Weekly market structure is bullish👀 pic.twitter.com/0lYYK1V7zP
— Mohit Sorout 📈 (@singhsoro) April 25, 2020

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Tags: ethusd, ethbtc, btcusd

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2 Swiss Banks Launch Cryptocurrency Trading and Custody After Gaining Regulatory Approval

Ursprünglich erschienen auf: https://thebitcoinnews.com/2-swiss-banks-launch-cryptocurrency-trading-and-custody-after-gaining-regulatory-approval/

Switzerland’s financial regulator, FINMA, has approved two Zurich-based banks to offer a range of cryptocurrency services, including trading and custody. Maerki Baumann Bank subsequently announced the launch of its trading platform for major cryptocurrencies while Incore Bank is offering a range of crypto services.

Maerki Baumann Launches Cryptocurrency Trading Desk and Custody Service

The Swiss Financial Market Supervisory Authority (FINMA) recently approved two banks — Maerki Baumann and Incore Bank — to offer a number of cryptocurrency services, the two financial institutions independently announced Friday.

Maerki Baumann, a Zurich-based private bank with a dedicated crypto desk, stated Friday that it has obtained a license from FINMA “to offer the trading and custody of cryptocurrencies as well as other digital assets (tokens).” With this new license, the bank will offer its clients the trading and custody of cryptocurrencies starting this month. Noting that its trading platform will also support ERC20 tokens, the bank explained:

Maerki Baumann will initially offer trading in the principal cryptocurrencies, namely bitcoin (BTC), bitcoin cash (BCH), ethereum (ETH), litecoin (LTC) and ripple (XRP).

Swiss Authority 2 Banks to Offer Cryptocurrency Trading and Custody Services
Zurich-based private bank Maerki Baumann has been opening business accounts for crypto companies since April 2019 and is now expanding its crypto services to include trading and custody.

Besides providing business bank accounts for crypto and blockchain companies, the bank has also been supervising initial coin offerings (ICOs) and security token offerings (STOs) for its clients. As of Dec. 31, 2019, the bank had approximately 8.5 billion Swiss francs ($8.84 billion) in assets under management, 80% of which originated in Switzerland and 10% in Germany.

Its Friday announcement outlines the bank’s near-term plans to further expand its universe of tradable cryptocurrencies and crypto investment services in the second half of the year. The bank detailed:

Maerki Baumann is in no doubt that digital assets will be a fixed element of a professional investment advisory and asset management service in the future.

Incore Bank Launches Several Crypto Services

The second bank recently authorized by FINMA to offer crypto services is Zurich-headquartered Incore Bank, a transaction bank that provides outsourcing services for financial institutions, such as settlement, custody, payments, accounting, compliance, and tax support. Its clients include Maerki Baumann. Incore announced Friday that the Swiss financial regulator has approved it to “trade, hold, transfer and generate (tokenize) digital assets,” elaborating:

This makes Incore Bank the first Swiss business-to-business bank to offer financial service providers and institutions worldwide easy and secure access to a new and forward-looking asset class.

Incore Bank recently created a Digital Services division to offer a “full range of services from issuance, distribution, brokerage and storage,” its announcement details. “We guarantee a full segregation of crypto client assets on individual wallets, whereby no additional capital requirement of the client bank is required,” said Daniel Blatter, Incore’s Head of Digital Services.

Swiss Authority 2 Banks to Offer Cryptocurrency Trading and Custody Services
Swiss financial regulator, FINMA, has recently approved two Zurich-based banks to offer cryptocurrency services. Maerki Baumann is launching a trading platform supporting major cryptocurrencies while Incore Bank is launching a range of crypto services.

The bank has also partnered with several companies in the crypto sector, such as the Swiss company Crypto Finance AG. Jan Brzezek, the CEO of Crypto Finance, commented:

We are convinced it is only a matter of time before bitcoin is part of a bank’s standard product portfolio. Incore Bank took an early and consistent approach to this topic, and we were immediately able to implement our brokerage and custody infrastructure.

The bank additionally revealed that it also plans to “expand the brokerage, custody and transfer services to security tokens,” noting that it has partnered with Inacta AG, an independent Swiss IT crypto consulting firm, to develop additional services in the area of the tokenization of assets.

Maerki Baumann is Incore’s first client for crypto services, having been a long-standing client of Incore and its parent company holds a stake in the transaction bank. “The trading orders placed with Maerki Baumann will be transferred via established partner companies, most notably the transaction bank Incore Bank AG, to professional crypto brokers and to the world’s leading and most liquid crypto exchanges,” the private bank clarified. “This will ensure that transactions can be rapidly executed and with a narrow trading spread.”

What do you think about Swiss banks offering cryptocurrency services? Let us know in the comments section below.

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