Crypto News – 05 April – Ripple CTO comments on Stellar-IBM partnership, Binance to launch new exchange, and more
— AMBCrypto (@CryptoAmb) 5 April 2019
Crypto News – 05 April
Ikigai Asset Management founder on the entry of institutional investors into crypto: Travis Kling stated that as of now, Bitcoin was still the most compelling long position and that users shouldn’t’ go running around ‘dumpster diving’ in tiny cryptocurrencies.
Read more on https://bit.ly/2IeF0TR
Charlie Lee responds to Michael Novogratz’s comments: Lee refuted Novogratz’s statements, claiming that he couldn’t “be more wrong”. Lee also ridiculed the former hedge fund manager’s statement about Litecoin and Bitcoin’s Lightning Network.
Read more on https://bit.ly/2ONZvYM
Riccardo Spagni on whether Monero and Bitcoin: FluffyPony stated that Bitcoin miners were spread out around the world, adding that mining was previously dominated by Chinese miners.
Read more on https://bit.ly/2TYmcKI
Belgian regulator flags potentially fraudulent crypto-trading platforms: One hundred twenty websites, including many new ones, were deemed as malicious entities in an official statement released by the FSMA.
Read more on https://bit.ly/2UxZm0W
Chief Legal Officer of Blockchain on SEC’s framework: Santori stated that the commission filled in some gaps and reconfirmed some of their “thinking that [they’ve] heard in the past”.
Read more on https://bit.ly/2K8K5zR
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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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