All trading instruments have their personalities - volatility/range and speed in which they traverse it - price action. Once you figure them out you can test if your preferred method of trading has some statistical edge or brings random results - guessing. Yes, CoinBase itself has high fees but Coinbase Pro's fees are inline with the rest of the exchanges and are negligible, unless you are attempting to play market maker.
[There are also over 1.5 Million bitcoins in circulation now than 2 years ago and as a percentage is much higher when calculated taking into consideration all of the lost bitcoin private keys] Bitcoin Is At An All-Time High* Anthony Pompliano Sep 28 4 This context is really important because it shows that the end of 2017, and into the beginning of 2018, was a classic blow-off top in a market that had reached an unsustainable level of frothiness. Any sophisticated investor would heavily discount this data when looking at historical price analysis, because it doesn’t serve as a good representation of where Bitcoin was being priced. Here are two other data points to evaluate that I believe will serve as better indicators of Bitcoin’s price over the long-run: Bitcoin’s 200-week moving average Bitcoin’s number of consecutive days over $10,000 Let’s look at the 200-week moving average first. As you can see in this visual representation, Bitcoin’s price has never fallen below the 200-week moving average. It rises significantly above the average in the bull markets and has historically bounced off the 200-week moving average in bear markets. Additionally, according to the 200-week moving average of Bitcoin, the asset is currently sitting at an all-time high in price. Next, let’s look at the number of consecutive days that Bitcoin’s price is above $10,000. The previous all-time high was 62 consecutive days back in 2017-2018, but as of last night, Bitcoin has established a new all-time high in consecutive days above $10,000. Shout out to Zack Voell of Coindesk for pointing this out. So wait a minute? The 200-week moving average and the consecutive days above $10,000 are both at all-time highs, but the talking heads are still screaming about $20,000? Their argument makes for great headlines. It doesn’t tell the full story though. The spot price is worth being aware of, but the 200-week moving average and consecutive days above $10,000 are much better metrics to watch in my opinion. They give you an idea of how strong the Bitcoin price is over a period of time. It helps to smooth over the outlier data and show the general and relative trend in price. Remember, look at that 200-week moving average. It continues to go up-and-to-the-right in a fairly compelling manner. This is exactly what long-term holders (and investors) want to see. I don’t care about the short-term price movements. I care A LOT about the long-term price movements. And so far, so good. As I continue to talk about, there is an incredible amount of misinformation being thrown around in the Bitcoin world. The narratives that get laid out can be quite misleading. Stay focused on long-term trends and keep a low time preference. This advantage of having a long time horizon will ensure that you can benefit from one of the greatest wealth transfers in human history. Have a great start to your week and don’t forget, Bitcoin is sitting at an all-time high in the metrics that actually matter -Pomp
Question for u guys: will the US Govt pass rules banning US citizens/residents from buying bitcoin or exchanging crypto to USD to preserve the $. With the indictment of BitMEX seems anything is possible
BitMEX is a futures exchange that does not require its users to meet the USA's KYC/AML requirements, that is why the CFTC is going after it. If the USA cannot hack Monero they will ban it. https://cointelegraph.com/news/chai...n-million-dollar-irs-contract-to-crack-monero
does BitMEX need CFTC blessing to trade non-CFTC regulated regions. eg if Portugal has a couple citizens trading through BitMEX, what would CFTC have to do with it?
The CFTC would not have anything to do with a couple of BITMEX's Portuguese clients. Unfortunately for BitMEX's owners it's not just the CFTC, it's also the DOJ. The CFTC and the DOJ know BitMEX has US customers and that's why they are going after them. Supposedly 50% of the Crypto volume is from the US. I guess I am a simpleton but it seems all the exchanges should just demand that all US customers provide the same info that a Stock or Futures broker demands for the KYC/AML and issue everyone a 1099 at the end of the year.
Good Question Cryptocurrency traders look to be unwinding long positions in bitcoin perpetual futures listed on crypto derivatives exchange BitMEX, which has been charged by regulators with facilitating illegal transactions in the U.S. On Thursday, the U.S. Commodity Futures Trading Commission (CFTC) filed civil charges against the exchange while the Department of Justice (DOJ) filed criminal charges accusing four founders and executives of BitMEX of evading rules designed to stop money laundering. Since the announcements, BitMEX has witnessed an outflow of more than 40,000 bitcoins, currently worth more than $422 million, according to data provided by the blockchain intelligence firm Chainalysis. Open positions in BitMEX futures have declined by more than 22% from $592 million to $460 million since the CFTC and DOJ announcements and are down more than 50% from the high of $1 billion seen on Sept. 1. https://www.coindesk.com/bulls-exit-bitmex-bitcoin-futures-market
Square buys $50 million in bitcoin, says cryptocurrency ‘aligns with company’s purpose’ https://www.cnbc.com/2020/10/08/squ...ptocurrency-aligns-with-companys-purpose.html Square said Thursday it bought 4,709 bitcoins, worth approximately $50 million. This represents about 1% of Square’s total assets as of the end of the second quarter of 2020. “Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose,” the company said in a release. Omar Marques | LightRocket | Getty Images Payment company Square is buying a large block of bitcoin, an unusual use of corporate cash. Square said Thursday it bought 4,709 bitcoins, worth approximately $50 million. This represents about 1% of Square’s total assets as of the end of the second quarter of 2020. “Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose,” the company said in a release. The price of the digital currency has risen to around $10,724 from $7,100 in January, according to industry site CoinDesk, in a year roiled with the coronavirus pandemic. The digital currency did drop below $5,000 during the recession in March. “We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja, in a release. “As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.” Square founder and CEO, Jack Dorsey, is a advocate of the digital currency, saying in 2018 the cryptocurrency will eventually become the world’s “single currency.” However the founder of Twitter said it could take a long as a decade. Using it or another cryptocurrency as a global currency would lower the barrier for Dorsey’s payments company to enter new markets, he said in 2018. Bitcoin has been marked by volatility in its 11-year existence. That and its high transaction costs have largely kept it from being used as an everyday payment method. Instead, it’s seen by some backers as a store of value, or “digital gold.” That global hedge use-case seemed unlikely in 2018 after it ended the year down more than 73%; however, some attribute its uptick in 2019 and 2020 to a hedge against the then U.S. China trade war and now coronavirus pandemic. Square has enabled it clients to buy bitcoin on its Cash App since 2018. Outspoken technology investor Chamath Palihapitiya told CNBC on Tuesday that Social Capital uses bitcoin as a 1% hedge in its portfolio. “This is an instrument we use as a hedge,” Palihapitiya said. “I don’t think this is something that you trade and the more people obsess and focus, in my opinion at least, on what the price action is, the more that it will confound you, the more it will frustrate you. You buy it, you hold it, you put it away and you hope that you never need it,” he added.
Couple months old but it might be one of the reasons Square has made this purchase... https://cointelegraph.com/news/bitcoin-trading-generated-875m-in-quarterly-revenue-for-square