Posted 3 years ago | by Ben Armstrong
Bitmex CEO Gone
Bitmex CEO Arthur Hayes has seemingly disappeared. Well, that may be wording it a little too strongly. He has been missing in action from his Twitter account for over two weeks now in the midst of a CFTC probe into Bitmex. People are starting to wonder if he is keeping a low profile intentionally due to the investigation.
Hayes recently got involved in a debate with notorious crypto hater Nouriel Roubini in which both men hurled insults at one another. Roubini has accused Hayes of trying to hide the footage because he was beaten in the debate. Either way, that is the last high profile appearance by Hayes.
The CFTC Probe has caused a lot of problems for Americans looking to leverage trade. Bitmex must prove to CFTC investigators that it did everything in its power to keep Americans from registering on the site and trading. While Bitmex seemingly has given into the demands of the CFTC, a competitor has greatly benefited. ByBit is a margin trading platform that has seen an influx of users from Bitmex. ByBit is a great platform worth checking out. You can get $60 in BTC & ETH free by clicking HERE.
$55k Bitcoin Incoming
CNBC's Joe Kernen made a bold prediction that Bitcoin will reach upwards of $55k due to the Bitcoin halving in 2020. The halving (or I like to say halvening because it sounds better) is when the mining rewards for Bitcoin will be cut in half and this occurs every 4 years. The 2020 halving will cut the rewards to 12.5 BTC per block down from the current 25 BTC per block. Kernen compared this to oil prices. When oil production is decreased then the price usually increases.
The $55k prediction isn't so outlandish and may actually be conservative. Some other big names have called for even higher prices. Bobby Lee, Bitcoin analyst and brother of Litecoin creator Charlie Lee, believes the price will climb to $333k per Bitcoin in the year 2021. Let's remember that Charlie Lee sold the top of Litecoin and basically called the bottom of Litecoin the same day. One has to wonder if they are sharing information and if that gives credibility to the $333k prediction. I know most of us are pulling for that to be correct.
Bitcoin Up Today, But Why Was it Falling?
As of this writing, the Bitcoin price is up about .5% at $9,562.43. This is a welcome surprise as many people have been calling for a sub $9k BTC. Others have been saying as low as $8.3k. While many people want a lower priced Bitcoin, many others are ready to see the breakout to push back toward $13k. The chartists seemed to have been baffled over the last couple of weeks as we have entered a large period of sideways action after much volatility for several months.
So why has Bitcoin been falling or stuck in sideways action for several weeks. There could be two fundamental analysis reasons for this.
The first reason is that thousands of Bitcoin investors were recently sent letters from the IRS regarding their holdings. Fines of up to $250k have been threatened by the IRS to those who received the letters. There is a strong possibility that many of those people have cashed out some of their crypto holdings in order to try to comply with the IRS requests (or maybe to get ready for a fine). If you are having trouble trying to figure out your crypto taxes, you can give CryptoTrader.tax a try. Trying to figure it all out on your own can be a huge headache.
The second reason could be due to the floundering of Facebook's Libra. Libra is scheduled to launch in the first half of 2020, but investors got a rude awakening from Facebook this week. The told investors that they may not be able to keep the time schedule they have provided due to the uncertainty in this new technology. There is even a chance they say, that Libra may never launch due to the over regulation of the U.S. government. It has not been met kindly by politicians and regulators alike.
Crypto News Round-Up
- After a massive hack, Capital One has apologized to both U.S. & Canadian customers. Up to 106 million customers were affected. However, only 140,000 social security numbers & 80,000 bank accounts were jeopardized. Which is good for the other 105.8 million customers, but stings for those 220,000 individuals. When will people stop trusting banks with their money?
- In a series of multiple transactions, whales moved an incredible $3B worth of Bitcoin. In total, over 318k Bitcoins were moved. It would have cost over $1M to move this money through traditional banking methods. The main question is what are these whales preparing for?
- Today Ethereum celebrated its 4th birthday. Which makes it almost as old as its creator Vitalik Buterin [insert drum rimshot]. But seriously, happy birthday to this digital code that doesn't even realize it has a birthday.
- In a surprising move, crypto project Ark has been chosen to power the nOS virtual operating system. This is surprising because nOS was initially issued as a NEO NEP-5 smart contract. One has to wonder what is going on with NEO these days?
- IOST will be highlighting new nodes going forward. The IOST ecosystem has been quite impressive from the start, but the numbers are growing significantly. There are currently 145 elected nodes out of 357 total nodes and 29% of IOST is currently staked. Hard for any project to beat that at the moment. That's decentralization at its finest. Don't forget to vote for the BitBoy Crypto IOST node! Currently giving 36% annualized returns.