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Coincheck has announced that it will reimburse the accounts of the 260,000 customers who lost XEM tokens in a recent hack at a rate of roughly 81 U.S. cents per unit. As of this writing, XEM is trading for approximately 89 U.S. cents, having recovered slightly from its dip in the wake of the hack.
The announcement comes amid concerns expressed by Japan’s Financial Services Agency (FSA) that it is uncertain as to whether Coincheck possesses sufficient funds in order to conduct the reimbursement.
91-for-1 stock split Bitcoin Investment Trust Announces Stock Split
Thursday 01/11/2018 05:22 PM ET - PR Newswire via Dow Jones News
NEW YORK, Jan. 11, 2018 /PRNewswire/ -- Grayscale Investments, LLC, the sponsor (the "Sponsor") of the Bitcoin Investment Trust (OTCQX: GBTC) (the "Trust"), announced that it has today declared a 91-for-1 stock split of the Trust's issued and outstanding shares. With the split, shareholders of record on January 22, 2018 will receive 90 additional shares of the Trust for each share held.
closed $1,650 one week ago Friday -- hard to justify a buy in here, over the weekend
higher prices on less than the daily 10 day average
Williams Percent Range or Williams %R is another technical indicator worth taking a look at. Bitcoin Invt TR (GBTC) currently has a 14 day Williams %R of 0.00.
The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold.
Chart analysts may also use the indicator to project possible price reversals and to define trends.
technical indicators are showing overbought & too high
RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100.
Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.
The 14-day RSI is presently standing at 75.74, the 7-day is 76.76, and the 3-day is resting at 82.64.
GBTC currently has a 50-day moving average of 1061.56, the 200-day is at 563.41, and the 7-day is 1919.23. In the investing realm, using the moving average for technical equity analysis is still very popular among traders and investors.
The moving average can be used as a reference point to help discover buying and selling opportunities. Using a longer term moving average such as the 200-day may help block out the noise and chaos that is sometimes created by daily price fluctuations. In some cases, MA’s may be used as strong reference points for finding support and resistance levels.
Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies.
Presently, the 14-day ADX for Bitcoin Invt TR (GBTC) is 40.11. In general, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.
source: luxoraleader
Bitcoin Invt TR (GBTC) presently has a 14-day Commodity Channel Index (CCI) of 141.74. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.
The Williams Percent Range or Williams %R is another technical indicator worth taking a look at. Bitcoin Invt TR (GBTC) currently has a 14 day Williams %R of 0.00. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.
source: Luxoraleader
On Monday, Jay Clayton, the chairman of the SEC dropped the hammer on Initial Coin Offerings (ICO's) with the release of its Statement on Cryptocurrencies and Initial coin Offerings.
Let's just start by pointing out that there is nothing cute or ambiguous about anything in this document, and there's no clever legal argument that's going to make this go away. Mr. Clayton's message here is all too clear.
"By and large, the structures of initial coin offerings that I have seen promoted involve the offer and sale of securities and directly implicate the securities registration requirements and other investor protection provisions of our federal securities laws. Generally speaking, these laws provide that investors deserve to know what they are investing in and the relevant risks involved.
I have asked the SEC’s Division of Enforcement to continue to police this area vigorously and recommend enforcement actions against those that conduct initial coin offerings in violation of the federal securities laws."
--- Kyle Spencer
Long/short equity, special situations, contrarian, research analyst
"It’s obvious we’re at a crossroads. We can mobilize, self-regulate, and align around some common sense disclosures and token sale best practices, or we can get the shit kicked out of us, and watch (much more repressive) regulation come from on high."
- Ryan Selkis, early Bitcoin adopter and Venture Capitalist
“I have yet to see an ICO that doesn’t have a sufficient number of hallmarks of a security.” - SEC Chairman Jay Clayton
run a 10 Day / 15 minute chart with volume
add: MACD -- Fast Stochastics --- RSI
candle sticks with color help
not seeing sufficient volume so far
volume was showing large spikes past two days near the start
today is lower volume
Bitcoin does not pay out profits (like shares) or rent (like property) and is not attached a national economy (like fiat currencies). This is part of the reason why it is hard to tell what the underlying value of Bitcoin is or should be.
In the search for fundamentals some have suggested we should look at the supply of Bitcoins in the market (which is regulated by the technology itself), the number of Bitcoin transactions through the market, or even the energy consumed by Bitcoin miners (the computers that validate transactions and are rewarded with Bitcoins).
Diverging from fundamentals:
If we take a close look, we can see how the price of Bitcoin may be diverging from these fundamentals. For instance, it is becoming less profitable to be a miner, especially as the energy required increases. At some stage the cost may exceed the price of Bitcoin, making the network less worthwhile to both mine and invest.
Bitcoin may be the best known cryptocurrency but it is also losing marketshare to other cryptocurrencies, such as Ethereum and Litecoin. Bitcoin currently accounts for 59.4% of the total global cryptocurrency market but at the beginning of 2016 it was 91.3%. Many of these other cryptocurrencies have more functionality than Bitcoin (such as Ethereum’s ability to execute smart contracts), or are more efficient and use less energy (such as Litecoin).
Government policy, such as taxation or the establishment of national digital currencies, may also make it riskier or less worthwhile to mine, transact or hold the cryptocurrency. China’s ban on initial coin offerings earlier this year reduced the value of Bitcoin by 20% in 24 hours.
©2017 Guardian News and Media Limited
Crypto Company (OTC:CRCW), one of the first publicly traded companies in the digital currencies and blockchain sector, today announced plans to execute a 10-for-1 stock split. The company’s shares, currently trading on Over-The-Counter (OTC) markets under the CRCW ticker, experienced a recent surge in value and demand, in correlation with the Q4 rise of the entire digital currency market. The Crypto Company, which went public via reverse merger in June 2017, provides investors a diversified exposure to the emerging asset class of cryptocurrencies and blockchain technologies through proprietary software, trading technology, auditing services and consulting services. The 10-for-1 stock split will automatically convert each current share of The Crypto Company’s stock into ten new shares.
CEO of The Crypto Company Mike Poutre said, “We are aware of the recent fluctuation in our stock, and want to see orderly market activity surrounding the trading of our stock. Splitting the stock will increase our float of free trading shares and is the responsible thing to do.”
Many publicly traded companies have opted to implement a stock split when share price rises sharply or when public interest reaches market peak. In 2013, MasterCard completed a 10-for-1 stock split, and Apple has implemented multiple stock splits, its most recent in 2014.
The Crypto Company’s stock split will occur in accordance with SEC rules and timeframes.
“We hope that an increased float will contribute to a more orderly and safer market for our stock and corresponding investors. All investors should be cautious when they see volatile markets such as this. We encourage everyone to be cautious and judicious when considering the purchase of our stock. There are a lot of companies taking advantage of the euphoria associated with this space, and we do not want be associated with them. We want people to pay attention to the business we are building, not the hype of a stock or the cryptocurrency world. Our hope is to show that we are responsible corporate citizens and that everything we do is in the spirit of the law and protects investors,” Poutre said.
The Crypto Company offers a portfolio of digital assets, technologies, and consulting services to the blockchain and cryptocurrency markets. The Crypto Company recently announced the impending rollout of a full scale, high frequency cryptocurrency trading floor in its California headquarters.
Shareholders will receive their nine additional shares subject to and following the requisite regulatory approvals and waiting period. The exact date will be publicly released ahead of time.
CEO of The Crypto Company Mike Poutre is available for interview
About The Crypto Company:
The Crypto Company is one of the first publicly traded technology companies in the digital currencies and blockchain sector. The Crypto Company offers a portfolio of digital assets, technologies, and consulting services to the blockchain and cryptocurrency markets. Shareholders in The Crypto Company gain diversified exposure to the exponentially growing asset class. Currently, The Crypto Company is developing proprietary technology, including trading management and auditing software, tools, and processes, to assist both traditional companies -- from start-up businesses to well-established companies -- to operate with and/or trade in cryptocurrencies.
Bitcoin ETF In 6 Months?
“Nobody really knows, but if I had to guess, I’d say we’ll have a bitcoin ETF by next summer,” said Eric Balchunas, senior ETF analyst at Bloomberg. “The SEC has been talking to issuers about this for four years, so they’re slowly going to break down.”
Balchunas pointed to the hundreds of millions of dollars worth of trading that takes place in the over-the-counter Bitcoin Investment Trust (GBTC) and the Sweden-listed Bitcoin Tracker One ETN as evidence that the bitcoin futures market will soon see significant interest.
“If you can get those kinds of numbers in these far-out pockets of the market, you can imagine how liquid the futures in the U.S. will be in no time.” That will push the SEC to approve a bitcoin ETF, he says.
GBTC isn't keeping short sellers at bay. Data suggest bearish traders are comfortable betting on downside for the bitcoin trust.
“Since the start of October short demand has increased over 60 compared, compared with GBTC price increasing over 150 percent,” said Markit. “Pressing against the trend has caused the value of the short position to increase to over $110 million. Aside from the bet against BTC price the shares of the trust were also trading at a premium to asset value, which has been pointed out as part of the motivation for shorting the vehicle.”
Funds that trade at premiums to net asset value (NAV) are often favorite targets of short sellers that bet the premium won't persist for extended periods and that the fund will eventually retreat to levels more inline with its NAV.
“The increase in bitcoin price has been met with skepticism by short sellers, who have recently increased bets against Bitcoin Investment Trust,” said Markit. “Short interest is also rising in firms which have enjoyed a halo effect based on their involvement in the cryptocurrency or their use blockchain.”
source : benzinga
the price action struggled at $1,800, we were concerned it would fail at this level
glad to be out & in US dollars
buy the shares back with a $1,500 or $1,600 handle later this week
sold at $1,804
hope to buy the shares lower later
Jon Najarian was in Europe last week attending cryptocurrency meetings
listen to him on CNBC today, on Fast Money at 5 pm (Eastern) discussing commercial uses of BTC overseas
he is the son of a well-known transplant surgeon in Minnesota
price action looks strong -- we bought at the Friday close at $1,650
probably sell in here with a $1,800 handle
=> buy the shares back lower
GBTC is illiquid -- that is why it moves for "no reason"
200,000 shares daily average is tiny
One fact that I think is remarkable is that GBTC - the Bitcoin Investment Trust closed on Friday December 1 at a 79% premium to its Net Asset Value and it closed Friday December 8 at only a 13% premium. I think this is another indication that the price of Bitcoin rose ahead of the futures launch in expectation of new demand and that new demand might not be there (this is the lowest premium over NAV for GBTC since June 1, 2017).
by Peter Tchir -- 20 years of experience as a trader, structurer, and strategist in markets ranging from Treasuries and High Yield bond trading, to CLO’s, to CDS indices
uncertainty over the CME, CBOE & Nasdaq participation in Bitcoin makes me nervous
the impact of the new market makers will be felt over a few weeks, as things get ramped-up
I believe in the Bitcoin story (have owned GBTC in & out) but won't chase the price -- when it gets around $1,450 I will start buying
GBTC is highly illiquid -- trades barely 200,000 shares each day, on the ten daily average
Illiquid Investment devices trade erratically -- that's why people cannot explain the move three days ago, on Tuesday, when the GBTC shares hit $1,350
if GBTC moves 20% interlay, roughly one day each week? => put in a limit buy at a deep 20% low, you might get filled
looking to buy sub $1,550
on Tuesday when the GBTC sold off significantly during the middle of the day from levels near $1850 to $1350, a nearly $500 intraday swing that at one point took more than 30% off of the price of the trust in less than 2 hours.
Sentiment during the day, as the trust fell in price, was one of capitulation that eventually turned into confusion. As the GBTC started to fall, social media lit up with commentary AT PLACES LIKE STOCKTWITS where investors were surprised to see such a drastic fall. This initial confusion eventually turned to a little bit of capitulation as it sounded like and looked as though there was some panic selling that was taking place towards the end of the sell off.
Let’s quickly run through what some of our theories are regarding the sell off.
The GBTC is Illiquid
First, the security is generally very illiquid. At a trading price that is in the thousands of dollars, the GBTC trades on average just 80,000 shares per day. This means that there isn’t a ton of liquidity out there and that moves in either direction are probably going to be exacerbated and more volatile than usual due to the lack of liquidity to balance things out. We addressed this lack of liquidity for Bitcoin and its associated securities in an article that we published just days ago talking about two catalysts for Bitcoin going forward. When considering moves in GBTC, investors must always remember that this is the only real public market security pure play on Bitcoin for the time being and it is because of that, it will have a tendency to whipsaw in one direction or the other.
What we saw yesterday was an exacerbation of this illiquidity. The more illiquid a stock is, the more unbalanced the trading is going to be. When the seller first started yesterday, daytraders and technical traders may have noticed that there was an overwhelming number of offers with very few bids coming in. To say that this was the first time GBTC has moved like this would be inaccurate. This security has a history of large swings both to the upside and the downside and it has a history of making larger than normal bounces after it makes its move. Seasoned investors and those who have been watching GBTC closely would have more than likely understood that yesterday‘s move was simply an anomaly and not a reason for real panic, especially given the fact that during the course of the sell off, Bitcoin itself wasn’t actually moving.
source: seeking alpha website on 7 December 2017
Disclosure: I am/we are long GBTC.
by Orange Peel Investments => wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
CME said this morning that their futures products will carry a roughly a 35% margin, or premium, to guard against imbalances -- meaning, the CME financial vehicles will not be efficient relative to the actual Bitcoin value
Apparently, the CME will cary a 35% margin - premium - over Bitcoin's market value on their futures product offering -- stated on CNBC this morning