Thomas Peterffy on CME Futures: “A Catastrophe in the Cryptocurrency Market… will destabilize the real economy.”

Chairman of Interactive Brokers, Thomas Peterffy, has voiced concerns about the plan to launch a Bitcoin Futures contract. According to their CEO, Terry Duffy, the CME Group intends to offer the listing as early as the second week in December. However, Peterffy is worried about the implications of a crypto-based Futures market. For him, the violent swings associated with digital currencies and assets could spell disaster for investors, as well as the economy as a whole.

Interactive Brokers are themselves a CME clearing member and through an open letter dated November 14, 2017, they requested that “the Commission require that any clearing organisation that wishes to clear any cryptocurrency or derivative of a cryptocurrency do so in a separate clearing system isolated from other products.”

For Peterffy, there is “no fundamental basis for valuation” of cryptocurrencies and the volatility common within markets is cause for concern. He highlighted the lack of a “mature, regulated and tested underlying market” and declared that determining the amount of funds necessary to margin such a product is “impossible”. For him, drastic movements in price could affect many more than just a few unlucky traders:

… a catastrophe in the cryptocurrency market that destabilizes a clearing organization will destabilize the real economy.

He continued:

“If the Chicago Mercantile Exchange or any other clearing organization clears a cryptocurrency together with other products, then a large cryptocurrency price move that destabilizes members that clear cryptocurrencies will destabilize the clearing organization itself and its ability to satisfy its fundamental obligation to pay the winners and collect from the losers on the other products in the same clearing pool.”

However, Peterffy and Interactive Brokers did suggest a way to mitigate the risk. They advocate keeping cryptocurrency derivatives entirely separate from other financial products. To protect the members of clearing organisations from the “unique risks in clearing cryptocurrencies” they should remain “isolated”.

Before signing off, Peterffy offered his and his company’s support to help CME investigate and safeguard against such supposed dangers:

We would be happy to discuss this with you or to provide any further information at your convenience.

 

Image: ShutterStock

 

 

 


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Cryptocurrency seems to thrive in times of instability. That’s certainly the case right now in Zimbabwe. The price of a single Bitcoin surged to an unprecedented $13,500 on the country’s only crypto exchange, Golix, following news that troops from the Zimbabwe Defence Forces seized power in what is beginning to look like a coup. On the state broadcasting service, military leaders claimed that they had placed President Mugabe under house arrest.

Following Wednesday’s developments, queues began to form outside banks in the capital city of Harare. The Independent report that some even slept in the streets to ensure first access to funds at the start of business. The rush on the banks coincided with greater demand for cryptocurrency, as is evidenced by today’s BTC price on the Golix exchange. Quartz documented a large spread between bid and asks along with the huge premium on the cost of one Bitcoin compared with other major exchanges. Golix’s trade coordinator, Yeukai Kusangaya offered an opinion into the recent spike in interest:

Interest in bitcoin has peaked as people cannot send money outside or pay for international transactions using formal banks. People have had to look for alternatives and bitcoin has been a useful solution which can be used to purchase goods on Amazon or to pay for vehicles from international suppliers and traders.

Thanks to the dire economic situation in Zimbabwe, it’s estimated that some 95% of the workforce is now jobless. In the vacuum left behind after the national currency was abandoned in 2009, most major currencies are accepted with dollars being preferred. This seems to be providing the ideal conditions for the adoption of Bitcoin.

However, the Golix exchange isn’t the full picture. Since the Zimbabwean economy has been plagued by instability for the entire life of Bitcoin meaning banks are distrusted in the country, peer-to-peer trading seems to be favoured.

Interestingly, as Golix were trading at around $13,000/BTC, sellers on popular peer-to-peer trading website LocalBitcoins were offering a single Bitcoin for around $7,000 – close to the current accepted price globally.

The most likely cause for the discrepancy between the two platforms’ prices is, according to Quartz, low liquidity. The publication report that Golix traded just 147 coins in the last 30 days. Of course, compared with other exchanges around this world, this is minuscule.

 

 

Some users of the Square Cash app were surprised this morning to discover that they could now buy and sell Bitcoin using the platform. For those unfamiliar with it, the app can be used to send payments between friends and family. They offer free, instant transactions in dollars, and now, the ability to buy and sell Bitcoin too.

Interestingly for a company who specialise in sending and receiving payments, there’s no function to pay someone using Bitcoin yet. However, Tech Crunch report that there is an option to generate an address to receive payment. However, without an option to send a transaction in cryptocurrency, it’s redundant, for now at least.

Last year, Square Cash became the most downloaded financial application on both Android and Apple marketplaces. They overtook competitor Venmo and are likely to continue to outperform their rival thanks to their innovative crypto adoption.

A statement from Square themselves read:

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”

In a recent interview with The Verge, the CEO of Square, Jack Dorsey, mentioned he’d been asked multiple times about buying Bitcoin and was amazed by “how mainstream the brand is”. He went on to suggest that the younger generation are increasingly seeing Bitcoin as a preferable store of value to gold. Amusingly, he recalled hearing someone say, “gold is a stupid rock”.

For now, the Bitcoin buying and selling functions are only available to some Square Cash app users. Tech Crunch also note a few problems with the service that will likely be ironed out before a full launch of the additional features. Another issue is that users don’t hold their own private keys. Instead, a Coinbase-like system of pooled wallets is supposedly being used. This may change in the future.

Despite it’s limited release and few teething issues, users of the platform seemed happy about the news. Several Tweeted their joy at the revelation earlier today. One stated:

“since when can you buy bitcoin through @SquareCash?!”

Another was equally thrilled:

OMG! Just noticed I can now invest in Bitcoin using my Cash app! I seriously think this is my most useful app….ever.

Image: TechFaster

So that’s another day done for our bitcoin price trading efforts and – yet again – we’ve seen an incredible amount of volatility hit the charts as price has matured towards the daily close. We’re seeing an awful lot of this sort of action of late – breakout, run, consolidation type stuff – and this has made for some pretty great trading conditions so far this week. We’re now heading into the close of the European session and we’ve got the US late afternoon (as well as the Europe-US crossover) right ahead of us. What we would love to see is some more of the sort of action outlined above.

This will allow us to enter the latter half of the week in a real strong position and should make closing out the week for a net gain relatively simple.

So, with this in mind, let’s get some levels outlined that we can use to take advantage of price action id we see the type of movement we are looking for. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we are looking to jump in and out of the markets if and when things move.

The chart is a one-minute candlestick chart and it’s got our range overlaid in green.

As the chart shows, the range we are looking at for the session this evening comes in as defined by support to the downside at 7150 and resistance to the upside at 7217. We are going to look at jumping in long on a close above resistance, with an initial upside take profit target placed at 7265. Conversely, if we get a close below support, we’ll jump in short towards a downside target of 7080.

Let’s see what happens.

Charts courtesy of Trading View

More competition in the world of cryptocurrency debit cards is never a bad thing. Although there are a dozen of different cards already, London Block Exchange claims they offer something unique. The Visa card is mainly designed for Bitcoin users, although other virtual currencies are supported as well. The goal is to launch this card within a few weeks from now. A pretty ambitious goal for a company virtually no one has heard of until now.

London Block Exchange is a UK-based company. The website was only launched a few days ago as well. It is rather interesting to see then offer a cryptocurrency debit card already. Very few people even knew this company existed, let alone they have a Visa partnership. More specifically, the company will let users convert to Bitcoin and altcoin holdings to pounds as a way to spend money. This business model is not unique to this company, mind you, as several others have tried and tested it already. There is always room for more competition in this industry, though.

Yet Another Cryptocurrency Debit Card Provider

The card is known as the Dragoncard. It is merely designed to counter some consumer criticisms of Bitcoin. Unlike what most people think, BTC is a currency and not just a commodity. Using a debit card is a backward way to spend Bitcoin, though. Until more merchants accept BC, there is very little that can be done. There will be a 0.5$ fee for using the Dragoncard, though. This is on par with most other companies active in the cryptocurrency debit card scene right now.

For the time being, it remains unclear if the card has any other costs. Most companies charge a fee for issuing the card in physical form. London Block Exchange is not just focusing their attention on a debit card, though. Instead, they also have a digital wallet app and a cryptocurrency exchange. All of these features have yet to be unveiled to the public, though. For now, the launch is scheduled for December 2017, although things may still change. Issuing such a card is not as easy as it sounds.

Given how new this company is and its lack of reputation, it remains to be seen if this offer is genuine. There are a lot of members of the team, although a website itself doesn’t mean anything these days.  Always be wary when new ventures like this come along. Especially if they involve relatively unknown companies which have everything to prove at this point. We welcome new competitors in this market, though, but there have been numerous scams to make people wary as well.

Header image courtesy of Shutterstock

Cryptocurrency exchanges are a vital part of the ecosystem. Even though they are also a weak point, it is a necessary evil for the time being. Over in Argentina, cryptocurrency has quickly become a lot more popular for obvious reasons.  More specifically, the liquidity these exchanges provide is of great value to customers. SurBTC is one of the biggest exchanges in Latin America right now. They recently added Bitcoin Cash support, which is a rather surprising decision.  

Many cryptocurrency exchanges support BCH these days. There is enough liquidity to sustain the whole world. However, not every exchange can be used by people all over the world either. In most cases, the demand for a local exchange platform is rather large. With native currency support, a lot of users will show an interesting in these projects. SurBTC has successfully made a name for itself in this regard. Even though most Latin American currencies aren’t worth much, they can still be exchanged for Bitcoin. Or Bitcoin Cash, by the look of things.

Bitcoin Cash Comes to SurBTC

This latter addition comes at a very interesting time. We have seen the price of Bitcoin Cash surge to new heights last week. It is only normal demand for this altcoin is on the rise as well. This is especially true in Argentina right now, where financial hardship is the new norm. Consumers need access to more money and cryptocurrency provides them with exactly that. That is, assuming they can gain access to proper cryptocurrencies which can be traded for profit on a regular basis. Right now, Bitcoin Cash seems to fit this bill quite nicely.

While this addition is significant, SurBTC is not the most liquid exchange. They support Bitcoin and Ethereum as of right now, with Bitcoin Cash added, but not visible on Coinmarketcap yet. Even the Bitcoin trading markets generate under $250,000 each these days. Surprisingly, they value Bitcoin at $7,310.86 in one fiat market. It will be interesting to see how they value Bitcoin Cash in its current state. It is good to see more liquidity for this altcoin in general, though.

One thing that is unclear is why the decision was made. It is possible customers demand this altcoin. At the same time, the company may have decided to add it themselves. Either way, the Bitcoin Cash community will be quite pleased with this change. It is evident people want access to popular cryptocurrencies. Right now, BCH is the popular coin people want to buy and sell. It may be something else entirely next week, for all we know. An interesting situation, that much is certain.

We are heading into the middle of the week and it is time to take the first of our twice-daily looks at the bitcoin price in an attempt to cobble together a strategy that we can use to try and draw a profit from the market if and when we see any volatility going forward.

Normally, we take a look at what happened overnight so as to garner a bit of insight into how price brought us to where things stand. Right now, however, things are moving pretty fast, so we aren’t going to waste any time going over previous action. Instead, because we don’t want to miss a trade, we are going to jump right into our analysis and get some key levels in place straight away.

So, with this noted, let’s kick things off for the session today. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand. It is a one-minute candlestick chart and it has our range overlaid in green.

As the chart shows, the range we are looking at for the session today comes in as defined by support to the downside at 6886 and resistance to the upside at 6950.

We are going to stick with our breakout strategy, so we will put our intrarange approach on the back burner for the time being.

Looking to the upside and to our first potential entry, we will jump in long towards an immediate upside target of 7000 flat if we see a break above resistance. A stop loss on the trade at 6935 looks good from a risk management perspective.

Looking south, if we get a close below support, we will jump in short towards a downside target of 6830. Again we need a stop loss on this one and somewhere in the region of 6900 looks like it should do the job.

Let’s see how things play out.

Charts courtesy of Trading View

An interesting shift from Bitcoin to Bitcoin Cash is taking place as we speak. In Oslo, one of the Meetup groups is ditching Bitcoin altogether. The name has even been rebranded to Oslo Bitcoin Cash Meetup starting a few days ago. This is a rather interesting development, although we will see more of these in the future. The battle lines between BTC and BCH are becoming more clear than ever before. How all of this will play out in the long run, remains a mystery.

It is not uncommon for Meetup groups to change their name. In this particular case, dropping the Bitcoin name is pretty interesting. Although this name was used for three years, the time has come to change things up a bit. The owner of this group is a clear Bitcoin Cash supporter. In his opinion, it may even become the new Bitcoin in the long run. It promises fast, cheap, and reliable transactions.

Oslo Bitcoin Cash Meetup is now a Thing

Bitcoin itself is struggling in all three departments as we speak. It isn’t all that fast, the fees are too high, and reliability can be an issue. It remains to be seen if BCH will fare better in this regard, though. So far, the network has not been without flaws and hiccups either. Competition can be a good thing to create a better and stronger Bitcoin in the end, though. This particular group of people will follow the Bitcoin Cash path and not look back on Bitcoin itself.

It is important to note the Oslo Bitcoin Cash Meetup will still use the same model. It is open to anyone, there will be regular events, and freedom of speech is the top priority. A new fundraiser has been launched focusing on BCH solely for free beer. Anyone who donates 0.1 BCH or more can get a “shout out” from the organizers as well. It is an interesting time for a change, but the decision can easily be justified.

The bigger question is how users will respond to this change. The Oslo Bitcoin Cash Meetup group has quite a few members. So far, only one negative response has been recorded, which is to be expected. Whether or not all 681 members will appreciate this new direction, remains to be determined. It is good to see some of these changes come to the surface, though. Bitcoin isn’t a perfect cryptocurrency and the opinions are very divided. Meetup groups are the perfect solution to exchange ideas and try something new.

Key Highlights

  • Ethereum classic price started an upside move from the $14.50 swing low against the US Dollar.
  • There is a major contracting triangle pattern forming with resistance at $18.00 on the hourly chart of the ETC/USD pair (Data feed via Kraken).
  • The pair might break the $18.00 resistance and attempt further gains in the near term.

Ethereum classic price is slowly gaining pace against the US Dollar and Bitcoin. ETC/USD needs to break $18.00 to initiate a new leg higher.

Ethereum Classic Price Resistance

After a major decline towards $14.50, ETC price found support against the US Dollar. The price started an upside move and was able to move above the $16.00 resistance and the 100 hourly simple moving average. It traded close to the $20.00 handle and formed a high at 19.25. It is currently correcting lower and moved below the 23.6% Fib retracement level of the last wave from the $14.50 low to $19.25 high.

However, the downside move was protected by the $16.50 support and the 100 hourly SMA. Moreover, the 61.8% Fib retracement level of the last wave from the $14.50 low to $19.25 high also prevented declines. It seems like the price is consolidating above $16.00 and the 100 hourly SMA. There is a major contracting triangle pattern forming with resistance at $18.00 on the hourly chart of the ETC/USD pair. The pair needs to settle above the $18.00 resistance to gain further momentum in the near term.

Ethereum Classic Price Technical Analysis ETC USD

On the upside, the next resistance could be near $19.50-20.00. On the downside, an initial support is at $17.00. However, the most important support is near $16.00 and the 100 hourly SMA. The pair has to remain above $16.00 if it has to move above $18.00.

Hourly MACD – The MACD for ETC/USD is almost flat in the bullish zone.

Hourly RSI – The RSI for ETC/USD is currently well above the 50 level.

Major Support Level – $16.00

Major Resistance Level – $18.00

 

Charts courtesy – Trading View, Kraken

Hello and welcome to News BTC’s Market Outlook November.

ETH/USD

Ethereum continues to chop around in a slow upward grind against the US dollar, as we have found the $330 level to cause a bit of trouble. However, I think we will continue to see buyers underneath so it’s likely that the market continues to rally from here, perhaps offering an opportunity to get involved to the upside as we continue to reach towards the $350 level above.

ETH/BTC

Ethereum also has been rallying against Bitcoin, and looks likely to continue to do so, at least until we reach towards the 0.055 level. Pullbacks of this point should be supported at the 0.046 level, but if we break down below there, we should resume the longer-term downtrend. At best, this is a short-term buying opportunity.

Thanks for watching, I’ll be back tomorrow.