Category Archives: Cryptocurrency
Recent research shows that Ether (ETH) was the cryptocurrency most correlated to the rest of the crypto market in 2019.
In a report published on Jan. 22, the research arm of major cryptocurrency exchange Binance suggests that throughout 2019, ETH had an average correlation coefficient of 0.69. The paper, which compared correlation data of 20 top cryptocurrencies, reads:
Ether (ETH) is the highest correlated asset. With an average correlation coefficient of 0.69 throughout 2019, it is consistently among the most correlated assets. The coefficient started at 0.69 in Q1 and rose to 0.72 in Q4 (Q2: 0.65; Q3: 0.74).
Per the report, Ether was much less correlated in the first half of 2019 and became the most correlated in the second half. Interestingly, the paper points out that programmable blockchains such as Ethereum, NEO and EOS often showed higher correlations with each other than with non-programmable assets.
Other crypto assets that have shown a high correlation with the rest of the market include Cardano (ADA), EOS, Litecoin (LTC), XRP and Binance Coin (BNB). Furthermore, the researchers observed that correlation is typically higher among cryptocurrencies with the highest market caps.
Comparison of quarterly average correlation coefficients for the five most correlated assets. Source: Binance
The assets with the lowest correlation to the rest of the market, on the other hand, are Cosmos (ATOM), with a correlation of 0.31, followed by Chainlink (LINK) and Tezos (XTZ) with respective coefficients of 0.32, 0.4. Overall, the median correlation between large cryptocurrencies slightly decreased over the last quarter of 2019
Another interesting phenomenon pointed out by the researchers is the Binance Effect, which refers to the fact that cryptos listed on Binance displayed higher correlations than with the assets not present on the exchange. The firms research also claims that, among the top ten cryptocurrencies by market cap, its own crypto asset Binance Coin is the one that has seen the highest returns.
Comparison of quarterly price changes for the ten largest assets by market cap. Source: Binance
While the correlation between crypto assets has been widely observed, the correlation between Bitcoin (BTC) and traditional assets especially gold is still subject to debate. Nonetheless, new data suggests that BTC is less correlated to gold than many believe it to be.
In the past, some also observed that Bitcoin had an inverse correlation to the stock market. As Cointelegraph explained in a market analysis piece at the end of October 2019, at the time this trend broke.
Originally posted here:
Research: Ether Was the Cryptocurrency Most Correlated to Other Coins in 2019 - Cointelegraph
Regulating Bitcoin: WEF2020 Announced A Global Consortium For Cryptocurrency Governance – CryptoPotato
The World Economic Forum (WEF) in Davos, Switzerland, ended yesterday with a significant mark on the cryptocurrency market. On the last day, WEF announced the first global consortium focused on designing a framework for the governance of digital currencies, including stablecoins.
The World Economic Forum for 2020 took place at Davos the past week, and cryptocurrencies received a lot of attention.Yesterday, during its last day, the Forum announced the creation of the first Global Consortium for Digital Currency Governance. It will consist of financial institutions, government representatives, academics, international organizations, leading companies, technical experts, NGOs, and members of the Forums communities on a global level.
The report indicates that if digital currencies are to receive proper financial inclusion, they need to be paired with good governance. Therefore, the Consortiums purpose will be to establish a framework of regulations by implementing innovative approaches. To achieve their goal, the participants will use efficiency, speed, inter-operability, inclusivity, and transparency.
The Consortium will work with both the public and the private sectors to explore the presented opportunities.
According to Klaus Schwab, Founder and Executive Chairman of the WEF, digital currency, a cross-cutting topic that requires input across sectors, functions, and geographies, is a key area of interest for the Forum.
Mark Carney, Governor of the Bank of England, also spoke on the matter:
Governance is the core pillar of any form of digital currency. It is critical that any framework on digital currencies ensures security, efficiency, and legitimacy of payments while ensuring fair and open competition. We welcome the WEFs platform to help develop a robust governance framework for inclusion through digital currencies.
As CryptoPotato recently reported, the efforts of establishing regulations on the cryptocurrency market are getting more and more serious. As of January 10th, the European Union introduced an updated version of its 5th Anti-Money Laundering Directive (5AMLD) with increased regulatory focus.
All cryptocurrency-related businesses operating from Europe have to follow the rules. They include a more in-depth Know-Your-Customer process, transaction monitoring, and filing suspicious activity reports (SARs) with law enforcement.
One of the aftermaths came shortly, as the popular exchange Deribit announced its upcoming relocation from the Netherlands to Panama.
With the creation of the Global Consortium, world watchdogs will try to establish a framework of regulations on cryptocurrencies. Its particularly interesting to see whether this will be beneficial for the space as a lot of the market participants remain unregulated.
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A researcher at the MIT Digital Currency Initiative discovered that Bitcoin Gold was 51 percent attacked on January 23. Yet, in the last 24 hours, the cryptocurrency has increased by 19 percent in price.
In a report published on code repository GitHub, MIT DCI research assistant James Lovejoy said two seperate attacks were carried out on Bitcoin Gold blocks within a span two days.
A 51 percent attack is quite possibly the most serious form of attack against a cryptocurrency.
When carried out successfully, it allows attackers to re-organize blocks and change data within a blockchain.
Since the main characteristic of a public blockchain network that makes it better than centralized alternatives is immutability, a 51 percent attack can cause dire consequences for a cryptocurrency.
It is not cheap or easy to carry out a 51 percent attack, however. The attack itself requires majority control over a blockchain networks hashpower.
For a major cryptocurrency like bitcoin, Ethereum, and others, its practically impossible to carry out a 51 percent attack. One could possibly carry out an attack, but there would not be any incentive to do so and the attacker would end up losing money.
In the case of Bitcoin Gold, Lovejoy said that the orders of tens of blocks on the cryptocurrency are not enough to eliminate the incentive of launching a 51 percent attack against it.
The report read:
Based on Nicehash market price data for Zhash we estimate the cost of generating each reorg at around 0.2 BTC (~$1,700) and the attacker would have recouped around the same value in block rewards. Therefore, it is possible that the attacks were profitable if the double-spends succeeded at defrauding the attackers counterparty, or break-even if the double-spends were unsuccessful. This suggests that a confirmation requirement on the order of tens of blocks for BTG is still far too few to make the budget constraint to launch an attack significant.
As emphasized by Lovejoy, this is not the first time Bitcoin Gold fell victim to a 51 percent attack. In May 2018, it experienced a similar attack and reports indicated about $18 million were affected.
Despite the serious attack on the cryptocurrency, the price of Bitcoin Gold is up 19 percent on the day.
Bitcoin Gold cryptocurrency is up 19 percent on the day (source: TradingView)
Throughout the past two weeks, the cryptocurrency market have seen bitcoin offshoots like Bitcoin Gold, Bitcoin SV, and Bitcoin Cash surge in tandem.
The abrupt upsurge of Bitcoin Gold following such a high profile attack against the underlying public blockchain network raises the question on the fundamentals of the cryptocurrency exchange market.
It is often difficult to assess or evaluate the structure of the cryptocurrency exchange market because of the abundance of fake or inflated volumes across many top exchanges.
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This Top Cryptocurrency Got 51% Attacked. Yet, Its Up 19% And Its a Problem - newsBTC
If you were hoping to keep your bitcoin stash under wraps from the IRS, think again.
As the 2019 tax season kicks off on Jan. 27, the taxman is expecting you to disclose whether you had any cryptocurrency transactions last year.
The IRS asks the following question on the first page of Schedule 1 of the individual income tax return: "At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?"
"If the answer is yes, then say yes," said April Walker, CPA and lead manager for tax practice and ethics at the American Institute of CPAs.
"But from a documentation standpoint, there are many different ways that you can interact with cryptocurrency," she said.
"The overarching idea is, however you transact with it, you'll need to track your transactions," said Walker.
This new question is only the latest salvo from the IRS, signaling the taxman's heightened interest in virtual currency.
Last summer, the agency sent letters to more than 10,000 taxpayers with cryptocurrency transactions who may have failed to report income and pay taxes owed.
Here's what you should be aware of when reporting your virtual currency to the IRS.
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Generally, the IRS treats virtual currency as property, much the same way they would regard stocks or other investments.
That means that if you bought your Ethereum and then sold it or if you exchange it for something else, you're logging either a capital gain or a loss. You'd be responsible for taxes related to the gain.
While cryptocurrency exchanges like Coinbase may provide you with a Form 1099-K detailing these transactions, there's no guarantee you'll get one.
"The taxpayer has to have at least $20,000 in gross sales for the year and a minimum of 200 transactions to get a 1099-K," said Andy Phillips, director for The Tax Institute at H&R Block.
Say you paid $10 for virtual currency, but then bought coffee for $8. You have a $2 loss you need to report.
lead manager for tax practice and ethics at the American Institute of CPAs
On the other hand, virtual currency that you get from an employer is treated like wages: You must have federal income taxes withheld from the payment, as well as FICA tax and unemployment taxes.
All of this must be reported on your Form W-2, which you should receive from your employer by the end of January.
Finally, cryptocurrency that you mine must be included in your taxable income. That is, you're including the fair market value of your bitcoin as of the date of receipt.
Don't try hiding your stash from the taxman.
You're running the risk of an audit, as well as paying penalties and interest on the income you failed to report. In the most extreme cases, you could face prison time and a fine of up to $250,000.
A visual representation of the cryptocurrency Bitcoin on November 20, 2018 in London, England.
Jordan Mansfield | Getty Images News | Getty Images
Even the smallest transactions with virtual currency warrant reporting.
"Say you paid $10 for virtual currency, but then bought coffee for $8," said Walker. "You have a $2 loss you need to report."
This capital loss would have to be reported on Form 8949 for sales and disposition of capital assets when you file your taxes, she said.
As you gather data to back up your cryptocurrency activities, keep a close eye on the original value of the asset.
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This is known as your cost basis, and it's how you determine the taxes you pay on your crypto.
While your trading platform should have the details of your transaction history, gathering that data is even more complex for individuals who participate on multiple exchanges, said Phillips.
Different platforms may have variations in price depending on the exchange, so the responsibility falls to the taxpayer to follow the cost basis.
"A lot of professional preparers are using software to assist high-volume crypto traders and ensure they get their basis right," said Phillips.
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It's tax season and the IRS wants to know about your crypto. How to prepare - CNBC
The bull rally that has been praised immensely this January appears have died and passed on the mantle to the bears who want nothing but to wreak havoc in the cryptocurrency market. The market generally painted and interestingly, the biggest gainers last week are recording the biggest losses of the day. For instance, Bitcoin Gold is correcting lower 4.85%, Dash is down 4.18% and Ethereum Classic is teetering 3.58% lower on the day.
Read more:Ethereum Classic Price Analysis: ETH/USD bears flip the bulls, target shifts to $5
Bitcoin is undergoing a pullback from the recent $9,200 high. The reversal is taking place after an incredible performance since the beginning of January. Bitcoin extended the gains from last Decembers recovery from $6,500. The bulls nurtured the gains above several resistance zones including $7,700, $8,000, $8,400, $8,800 and $9,000.
However, it is apparent that a reversal mission is underway and Bitcoin could soon touch $8,000 if the support at $8,300 fails to hold. The largest cryptocurrency has a market value of $8,300, although an intraday high of $8,399 has been traded on Friday.
Looking at the hourly chart, Bitcoin price is holding onto thelower trend line of a falling wedge pattern. If the shallow recovery above the trendline continues, a breakout seems imminent above the patterns resistance. For now, $8,400 is the stubborn zone ahead of the resistances at $8,500, $8,800 and $9,200.
Ethereum has finally forced its way through the support at $160. The failed attempt to break above $165 yesterday, paved the way for a bearish action that is becoming too strong to stop. At the time of writing, ETH is trading at $158, which is 2.30% lower compared to the opening value of $162.50. Thehigh volatility and increasing growing bearish trend signal that a dive to $150 is possible in the near term.
Also read:Ethereum Price Analysis: ETH/USD balances at the edge of the $160 cliff
The third-largest cryptocurrency on the market has not escaped the bearish wave. Its price is dancing at $0.2216 after shedding 1.6% of the tokens value on the day. On the brighter side, the bulls managed to retake the support at $0.2200 after dropping to an intraday low of $0.2174. To avert possible declines to $0.20, XRP must scale the levels above $0.23 and focus on the resistance at $0.24.
Also read:Ripple Price Analysis: XRP/USD struggles to save triangle support at its peak
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Cryptocurrency Market Update: Bitcoin, Ripple and Ethereum dive into the rabbit holes - FXStreet
Cryptocurrency mining in Iran has been a controversial topic since the beginning. In the latest move, Iran has issued cryptocurrency mining licenses for over 1,000 cryptocurrencies. Iran turned to cryptocurrency mining once again amidst tension with the United States.
After the death of one of the leading Iranian military commanders General Qassem Suleimani, Iran came to a head to head conflict with the United States recently, while global leaders intervened for peace process in the region.
Iran commenced regulating cryptocurrency mining operations on the governmental level in 2019. A central bank digital currency had also been under deliberation at the same time. At the time, owing to the electricity theft and abuse of the system, the Iranian government went hard on Bitcoin operations.
Overtime cryptocurrency enthusiasts have been reported to ignore the cryptocurrency regulation in order to increase the
Iranian information and communication technology (ICT) official from IranianICT Guild (IIG) Amir Hosseini expressed in a recent interview that the country is turning to the cryptocurrency mining industry eyeing an over eight and a half billion United States dollars worth of revenue generation to the countrys economy.
Hosseini further revealed that the cryptocurrency mining industry despite strict regulation against electric theft and cost issues has the capability to boost Iranian economic conditions.
Although hefty electricity costs are keeping small scale investors away from cryptocurrency mining in Iran. While Hosseini believes that the industry must be given a breather. At the time of writing, Iranian regulations demand that the households and nonprofit spaces must not be using non-commercial electricity for commercial mining operations.
Hosseini feels that an overall decrease in the electricity cost and mining infrastructure setup can improve the mining industry operations by many folds.
Featured Image by KDM
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Cryptocurrency mining in Iran to boost economic conditions - Cryptopolitan
Indian PM, Narendra Modi, has awarded an entrepreneur prize for a crypto price tracking application.
18-year-old Kumari Harshita Arora was the recipient of the award. She designed an app called Crypto Price Tracker, a portfolio management and price tracking equipment for cryptocurrencies.
Modi, via his tweet, expressed his excitement that the talented Harshita Arora has been conferred the Bal Shakti Puraskar 2020.
While chatting with the winners, Modi said hes happy to witness their diligence towards the society and the nation.
He also said how surprised he was while meeting them. This is because, according to him, despite their young ages, they have all done incredibly well in diverse fields.
He added that learning about their works from all of them gives him energy and inspiration.
Notably, the Indian government is currently deliberating on whether to regulate or ban cryptocurrencies in the country. Prime Minister Narendra Modis award to Arora shows the state might enact policies that would favor crypto.
Most recently, the Supreme Court of India listened to further hearings in the suit against the Reserve Bank of Indias ban on banks dealings with crypto-related businesses.
The case is before the highest court in the country brought by the Internet and Mobile Association of India. After public and industry-led petitions against the RBIs imposition of a blanket ban on banks services to crypto businesses. They came into effect in July of that year.
Furthermore, some lawmakers in the Indian parliament have drafted a bill that would ban cryptocurrencies in the country outright.
The bill aims to ban any non-government digital assets and defines such assets. As any information, code, number, or token not being part of any official digital currency, generated through cryptographic means or otherwise, providing a digital representation of value.
Born on October 2, 2001, Arora created an app to safeguard investors from scammers. She has also worked on a Food AI application that identifies food in pictures. And CellCount, another app that helps biologists count cells in microscope images.
Arora explained how the portfolio management got a lot of great responses from the crypto community and also got thousands of paid downloads in the first 24 hours of its launch.
This made it rise to the #2 app in the Finance category of the App Store.
The Crypto Price Tracker app has price tracking and customizable alert features.
Asides tracking, costs of more than a thousand cryptocurrency from more than 18 exchanges in 32 fiat currencies. The app also gives price charts for all monitored cryptocurrencies for a particular period, such as the last one day, one week, one month, three months, and even a year.
Users can also initiate time-based alerts to get prices of a coin as a push notification regularly or at particular times.
The app is obtainable on the Apple app store (but not in the United States.)
The man thought to be behind notorious cryptocurrency exchange BTC-e, which is involved in a multi-billion Bitcoin BTC fraud case, will be extradited to France.
According to a Greek news report, Alexander Vinnik is facing allegations of laundering at least $4 billion through the cryptocurrency exchange.
[Read:Alleged Russian boss of Bitcoin money-laundering scheme wants to go home]
The extradition comes after a Greek court reportedly gave the go-ahead.
Vinniks lawyer Zoi Konstandopoulou said he had been flown to France just hours the court ruling. The lawyer said he had been taken to hospital as he was on the 35th day of a hunger strike in protest of his prospective extradition to the European country, The New York Times (NYT) reports.
However, NYT notes that Greek authorities were unable to confirm on Thursday whether Vinnik had already left Greece.
France reportedly wants to trial Vinnik for alleged cybercrime, money laundering, belonging to a criminal organization, and extortion.
As previously reported by Hard Fork, Vinnik was arrested by Greek authorities in July 2017 while he was holidaying in the country with his family.
The arrest came after Russia, France, and the US all issued international warrants for his arrest.
Vinnik has maintained his innocence throughout saying: I do not consider myself guilty  The fact that I worked for BTC-e and did my job, and its not justifiable to accuse me of it. I found out about the charge about a month after I was taken into custody. This was told to me by my Russian lawyer.
Founded in 2011, BTC-e is reported to have handled almost 5 percent of Bitcoins trading volume at one point. However, subsequent research showed that as much 95 percent of ransomware-related cashouts took place through its platform.
An attempt to shut down the exchange was made by the US Justice Department after they charged Vinnik (and BTC-e) with allegedly running an international money laundering operation featuring stolen funds from Mt. Gox.
Published January 24, 2020 11:19 UTC
Price Analysis: Discovering the Top Cryptocurrency Market Performers This Week – The Cryptocurrency Analytics
Over the past week, Bitcoin (BTC) had seen with a tight trading range, especially when the crypto-asset oscillated between $8,200 low and $8,800 high.
Some analysts have noted that the BTCs bullish market structure can be vulnerable to invalidation in the near future due to a lack of decisive momentum. However, the recent incurred momentum seems to be enough in relieving those issues.
Meanwhile, the coronavirus outbreak happening in China caused a lot of investors to panic as market pressure continues to rise. So, its no surprise why the crude, along with the global equity markets, fell in the past seven days.
The crypto space has not an exemption in the coronavirus outbreak; they have also given up a few grounds. However, these assets are set to create a relief rally while the major cryptos are currently trading in the green.
Despite the unexpected geopolitical events that happened last week, which impacted the price movement of the cryptos, BTC remained the leading crypto-asset in terms of market cap coupled with daily trading volume. But it does not necessarily mean that the crypto asset was the top performer for this week.
HEDG Rise by 13%
Hedge Trade (HEDG) successfully reached a 13% rise, which placed the crypto at the number one spot for this weeks top performers. Despite being new in the crypto space, it is now attempting to be part of the top 20 cryptos by market capitalization by market cap list.
On January 24th, the HEDG/USD pair rallied to $2.67010910, which is about $2888.91 rise from the $0.68654876 intraday low on December 5. In the case that the bulls scale above the $2.67010910 level, the crypto could rally to $3 level.
DASH 10% Gain
For the third time around, DASH became part of the weekly top performers in the crypto market. Thats due to its 10% gain in the previous seven days.
The DASH/USD pairs pullback from their recent $142.3419 highs is considered to be shallow because the pulls were on dip buying near $90.2989. This suggests that buyers are willing to accumulate at lower levels. In bulls could hit above $142.3419, then a rally to $180 is possible.
BSVs Volatile Price Action
The fifth week of BSV in the list favors the bulls. In the past seven days, the cryptos price action remained volatile. That said, volatility resulted from answered questions that surround the Craig Wright vs. Dave Kleiman court case.
The BVS/USD pair is expected to have a range-bound movement between $337.80 and $237 in the next days. In the case that the bulls successfully break above the $337.80 level, BSV will rally towards $400.
ETCs 4% Rough Rally
In the past seven days, ETC has seen with a rough rally to 4%. The pullback of ETH from its $12.040 recent highs resulted to a support level near $8. This suggests that the buyers are now willing to risk at lower levels.
Many folks are expecting that the ETC/USD pair could consolidate close to the $10 and $3.40 level. If the pair successfully remained in the $8 and $10 levels, then it will call for an upward breakout.
Cryptocurrency Hackers Were More Active in 2019, but Were Less Successful
The total amount of cryptocurrency stolen by hackers decreased in 2019 despite overall malicious activity increasing and attacks being more widespread.
According to the most recent Crypto Crime Report by blockchain analysis company Chainalysis, more cryptocurrency hacks occurred in 2019 than any other year so far. However, the cumulative amount of money stolen during crypto hacks was down compared to previous years.
Of the eleven major hacks that took place in 2019, none matched the scale of previous thefts such as 2018s $534 million hack of Coincheck or the $195 million from BitGrail. Total crypto theft from hacks declined from $875.5 million in 2018 to $282.6 million in 2019.
Chainalsysiss methodology was limited to hacks involving access to exchange funds and did not include exit scams or thefts of payment processors.
According to the report,
With no hacks taking in more than the $105 million stolen from Coinbene, both the average and median amount stolen per hack fell substantially in 2019, after having risen each of the three preceding years.
The report continues, adding that only 54$ of the hackers seen in 2019 took over $10 million from their victims, compared with all of the hacks observed in 2018.
Chainalysis attributes the decline to exchanges, as thesehavegotten better at limiting the damage any one hacker can do.
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