Crypto News – 17 May – David Schwartz on Stellar’s downtime, Brian Armstrong on institutional investors and more
— AMBCrypto (@CryptoAmb) 17 May 2019
Daily Crypto News- May 17, 2019
1) European Central Bank on crypto: European Central Bank, the central bank for euro and the entity that administers the monetary policy of the European countries, released an occasional paper titled ‘Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructure’.
Read more at https://bit.ly/2w4PfTv
2) Poloniex delists nine crypto-assets: In yet another blow to the crypto-world, regulatory uncertainty in the US market has led to the delisting of nine cryptocurrencies from the leading exchange, Poloniex.
Read more at https://bit.ly/2VreF88
3) Amazon files crypto-based Proof-of-Work patent: After Jaguar, Microsoft, and Nike, a new cryptography-focused patent has surfaced on the web, one attributed to Amazon. While the patent, “Generation of Merkle Trees as Proof-of-Work,” was filed by Amazon on December 23, 2016, it was made public recently after Morgan Creek’s Anthony Pompliano broke the news.
Read more at https://bit.ly/2EgFk1T
4) Bosch to use Ethereum blockchain: Bosch, the multi-national engineering giant, joined hands with Ethereum to deploy blockchain technology and smart contracts at car-charging stations. Although still in its testing phase, Bosch is partnering with the Germany-based electric utility company EnBW to test out a prototype of blockchain-based car charging stations.
Read more at https://bit.ly/2JOilP5
5) Cryptopia answers users’ queries: Cryptopia released a new statement pertaining to its liquidation where the firm answered all the questions asked by the customers. Notably, the exchange had made it explicitly clear that they will not allow customers to withdraw their funds until the investigation is completed, emphasizing that it could take months for this process.
Read more at https://bit.ly/2JK9X3a
6) University professor to launch cryptocurrency: In a new development which could open a new era in the history of the cryptoverse, Emin Gun Sirer, a professor at Cornell University, is looking at launching his own cryptocurrency and network. He will be receiving funding from several big VCs in the field.
Read more at https://bit.ly/2wdAsGp
7) Binance hack: Scam alert; Even though the funds have not been recovered yet, another scam seems to be brewing in the shadow of these funds. A Reddit user suggested on the r/Cryptocurrency subreddit that the ‘team’ that hacked Binance was selling the stolen 7,000 BTCs, with a 70% discount.
Read more at https://bit.ly/2Ec1fqM
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Bitcoin’s on-chain/off-chain valuation indicators the key point of focus as coin heads to $13,000
With the rise in Bitcoin’s price, the rest of the cryptocurrency market has followed suit by displaying a green trend across the board. In a recent series of tweets by popular cryptocurrency analyst Adam Tache, users were informed about the top Bitcoin on-chain and off-chain valuation indicators, derived from on-chain valuation models.
The analysis touched on the Mayer Multiple created by dividing the price by the all-important – 200 day moving average. The current average Mayer Multiple stands at a figure of 1.39, which may climb higher. Looking at previous figures, the normal Mayer Multiple figures stated that if the value shoots up to 2.4, then Bitcoin eventually retraces back to a comfortable 1.5. The Mayer Multiple is usually considered as the original indicator used to clock the valuation of Bitcoin.
Another major indicator discussed in the thread was the NVT Ratio invented by Willy Woo, Partner at Adaptive Fund. The indicator is used to calculate Bitcoin’s prominence or value in the cryptocurrency space by evaluating the amount transacted on the blockchain as a “proxy for investment flow and bear and bull market cycles.”
At the moment, the NVT ratio for Bitcoin is in an abnormal region compared to the start of previous bullish patterns. The NVT ratio was above the “bear market” separator, which meant that the cryptocurrency was overbought. When Bitcoin is overbought, it usually means that the buying pressure is much higher than the selling pressure. Adam Tache opined,
“NVT signaling overbought is likely due to a number of factors — namely the proliferation of exchange-based, purely off-chain txs driving short-term price action.”
The analysis also pointed out the liveliness of the Bitcoin indicator created by Tamas Blummer. The indicator showed the inverse count of lost or ‘HODLed’ Bitcoin, while stating that when the ratio increases, long-terms holders of the cryptocurrency decrease their positions. The indicator conveyed accumulation of Bitcoin when the ratio decreased.
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