Bitcoin finally gave up its week’s resistance against sellers when it fell off the USD 9,000 cliff and has remained below it until today, destroying last week’s hope that Bitcoin was going into consolidation mode.
The good news is that the dip could have been much worse. After hitting a daily low of USD 8,666, price has recovered somewhat to current levels around USD 8,850 at 10:00 am UTC (CoinDesk). Rather strangely, Ethereum and Litecoin, two of the altcoins with the most trading volume, have both appreciated in price during this dip, respectively going up 0.71% to USD 185.37 and 1.43% to USD 61.39.
Nevertheless, most other alts are following the Bitcoin tide out to sea for now, and we will have to see if the weekend bulls will do something to arrest this slide.
There seems to be little to explain the sudden drop, but technical analysts believe that the pinch between the 100-day moving average has been a key resistance point, with 200-day MA acting as support, has led to a failure of breakout. The lack of volume area where price also doesn’t have much history leads to the gap of the fall.
After yesterday’s Tether reports, the big news to come out just before the weekend has been from good old Bakkt, the Bitcoin futures platform settled in physical Bitcoin. The official account happily Tweeted on Friday that the platform had recorded a new daily high of 1,756 Bakkt Bitcoin futures contracts. This means that bitcoin contracts worth around USD 15.5 million changed hands in just a single day. Still a far cry from the mammoth volumes witnessed at big derivatives and exchanges like BitMEX, but still a big improvement from the measly 5-digit USD values traded on its initial launch day.
Today we set a new daily record of 1,756 Bakkt Bitcoin Futures contracts traded
— Bakkt (@Bakkt) November 8, 2019
Seemingly triggered by the dip in Bitcoin price, the daily volume was more than a two-fold increase over the 834 contracts changing hands on Thursday. The last time a major price move happened, which was on 26 October when Bitcoin burst away to over USD 10,000 from low USD 7,000s, Bakkt recorded an incredible 250% increase in volume in just 24 hours. This suggests that sudden dips and spikes in price are going to be good news for Bakkt.
And better still for Bakkt, this is in line with a steadily rising trend of settlement monthly figures, with October’s all-time high being only 452. Recently, the regulated platform also said that they would soon be launching the first regulated Bitcoin options contract next month.
Good news for those waiting for institutional money to come pouring into Bitcoin markets? Certainly seems like it.
Meanwhile, altcoin holders might be holding their breath as it emerged that Ripple CEO Brad Garlinghouse has sounded the death knell for over 99% of crypto.
Speaking to Bloomberg this week, Garlinghouse told them about his plans for Ripple in 2020, while also saying that only less than 1% of today’s crypto would survive because there were simply too many of them today.
According to the Ripple boss, it was pure hype that was leading to a rising number of cryptocurrencies, with more than 3,000 tokens now trading every day. Few of these would be able to meet customer needs, however, and most would likely be valued at zero. He said:
“Anytime there is a new market, there are a lot of people that run into that market and try to show that they can solve a problem, they can deliver a customer need…”
He also took the opportunity to take a swipe at the Society for Worldwide Interbank Financial Telecommunications’ (SWIFT), for what he calls “transaction volatility”, saying that for that to happen, one needs “calculation of time and volatility”.
He then urged people to make their own calculations, arguing that his XRP token only contains “1/10th the volatility exposure of a typical fiat SWIFT payment”, despite SWIFT announcing in July that it had completed a successful instant cross-border transfer test in Asia, completing the fastest payment in only 13 seconds.
This week, MoneyGram boss Alex Holmes admitted that 10% of his company’s remittance business between the US and Mexico had been made possible with Ripple’s On-Demand Liquidity. Apparently, MoneyGram has only been operating this since August, so that market share seems like success is on the cards. Although vague on the size of the 10%, Holmes said:
“The 10% relates to the ODL (On Demand Liquidity) platform and represents the percent of our Mexican peso volume that we trade. We take USD and buy Mexican pesos. We continue to work with Ripple to build liquidity. We now have four new corridors we are starting, including the Philippine peso and Australian dollar. True success will be determined by others joining the platform, so it’s early days.”
An earlier estimate by the World Bank gave a number to 2016’s global remittance market at USD 573 billion.
Image Courtesy: Pixabay
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