Day: April 16, 2021

Citibank Demystifies MakerDAO and DeFi for Fund Managers

by Btcmanager

In the latest issue of Citibank’s Global Perspective and Solutions (Citi GPS) entitled Future of Money: Crypto, CBDCs and 21st Century Cash, the bank points its searchlight on MakerDAO (MKR) and the importance of decentralized finance (DeFi). Citibank is selling off its retail banking service in 12 countries and it appears the bank is looking to venture into the world of digital assets management.

Citibank Enlightens Fund Managers on DeFi

Citibank, the consumer division of financial services multinational Citigroup, announced on April 16, 2021, that it is selling off its retail banking business in India and 12 other nations, in a bid to focus more on its wealth management business.

If the latest tweet by Twitter user @asiahodl is anything to go by, it appears the 209-year-old lender is looking to start playing an active role in the rapidly evolving cryptocurrency ecosystem which is now a hot cake for forward-thinking institutional investors.


As seen in @asiahodl’s Twitter screenshot of Citibank’s Global Perspective and Solutions (Citi GPS) report entitled “Future of Money: Crypto, CBDCs and 21st Century Cash,” the financial institution explains the workings of MakerDAO and the benefits of decentralized finance (DeFi). 

“Maker can be thought of as a digital pawnshop, where users post something that is already valuable in exchange for a cash loan. If they repay that loan with the required interest, they get their asset back. If they default, or if the collateral value falls below a predefined threshold, the collateral is automatically liquidated,” Citibank explained.

Decentralized Finance to Upend Traditional Systems 

That’s not all, Citibank also pointed its searchlight on the importance of decentralized finance over traditional financial systems, stating categorically that DeFi’s openness allows for “greater innovation and competition,” while fostering interoperability by making it possible for “any user to move capital seamlessly between Maker, Compound, Uniswap and UMA in minutes,” in a cost-efficient way.

The bank also highlighted other key benefits of DeFi, including the elimination of third parties, transparency, and programmability, amongst others.

At a time when heavyweight lenders such as HSBC have entirely shut their doors and mind against anything related to bitcoin and other cryptocurrencies, Citibank’s report shows the bank fully understands the importance of cryptocurrencies and maybe a hint that the latter is looking to latch onto the crypto bandwagon in one way or the other.

In a separate report, Citibank also predicts a future where privately-issued stablecoins will disrupt the stability of commercial banking and the process of credit creation.

“The commercial banking system and fintech could be caught in the crossfire of a battle between CBDCs and privately issued stablecoins for monetary supremacy. This competition for deposits and payment services from two entirely new fronts could seriously impact the financial stability of the banking system and the process of credit creation,” it declared.

Indeed, bitcoin,blockchain-based stablecoins and some altcoins have come to stay! And forward-thinking lenders like Citibank, Goldman Sachs and a few others are already preparing themselves for the future. 

At press time, the DeFi industry is worth $58.05 billion in terms of total value locked, while the combined market cap of the cryptocurrency market sits at $2.18 trillion.

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Bitcoin Mining Firm Blockcap Moves Headquarters To Texas As State Embraces Bitcoin

by Bitcoin Magazine

Bitcoin mining firm Blockap has moved its headquarters from Las Vegas to Austin, Texas, an emerging hub for nascent technologies.

Per an announcement on Blockcap’s website, the firm chose Austin as its new headquarters for its workforce, favorable regulations, “as well as pronouncements by Governor Abbott and his team regarding protecting blockchain technology,” founder and executive chairman Darin Feinstein said.

Abbott shared the announcement via Twitter, tagging the @Bitcoin Twitter handle. He has recently been embracing innovation in digital asset technology for the Lone Star State. At the end of March, for instance, he signaled his support for new cryptocurrency laws.

“[Cryptocurrency] is increasingly being used for transactions and is beginning to go mainstream as an investment. (Fidelity, etc. trying to get Bitcoin ETF),” he tweeted. “Texas should lead on this like we did with a gold depository.”

Also, the former governor of Texas, Rick Perry, cited Blockcap’s presence as a major accelerant for job creation and sustainable economic growth in the state.

“The State of Texas welcomes Blockcap and its decision to establish its headquarters in our capital, which is yet more evidence that we have become the premier location for forward-looking industries like blockchain,” Perry said in a release.

Blockcap recently announced it has raised $38 million, a move lifting the firm’s total funding to $75 million since its founding last year. The company has recently acquired over 40,000 ASIC miners from Bitmain and Canaan and it plans to bring another 18,000 online by the end of the year.

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Two Patterns, One Coin: Is Bitcoin Currently Bearish Or Bullish?

by NEWSBTC

Bitcoin price is down from fresh all-time highs set this week ahead of the Coinbase Global Nasdaq public rollout, but there are still no signs of the bull run ending.

A powerfully bullish pattern, however, has began to shapeshift and is in the midst of transforming into a bearish pattern instead. The fight between bears and bulls clearly isn’t finished; here’s a closer look at the two patterns that could make or break the uptrend depending on which one confirms.

Bitcoin Price Breaks Down From Coinbase Listing Highs

The cryptocurrency market is a non-stop speculative venue where Bitcoin investors try to rely on a combination of sentiment, fundamental, and technical analysis to predict future outcomes of price action.

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Users can be quick to write off such predictions claiming its little more than witchcraft or nonsense. There are several trading legends that have made a career out of it, but naysayers will always remain.

Related Reading | Coinbase COIN Debuts To A Bloody Bitcoin, But Bullish Structure Remains

The reason for such skepticism, is the fact that these predictions only work to increase probabilities, and the practice never a perfect process. It is also an ongoing study that requires regular review of market conditions and the latest usable data.

The data comes in the form of Japanese candlestick highs, lows, opens, and closes. It comes via moving averages, overlays, and oscillators. And it also comes from chart patterns that can change shape even when Bitcoin is at first behaving as expected.

bitcoin bullish triangle versus bearish wedge

bitcoin bullish triangle versus bearish wedge


On the left, we have a bullish triangle and on the right, a bearish wedge | Source: BTCUSD on TradingView.com

Bearish or Bullish: Which Crypto Chart Pattern Will Confirm?

Even on Coinbase listing day itself, Bitcoin ended the day bloodier than it started. The leading cryptocurrency by market cap fell by a max of 5% for the day.

Any movement higher that might have been rejected, ultimately sent the crypto asset back down to retest the resistance level of a powerfully bullish chart pattern: the ascending triangle.

The problem is, is that the pattern has since morphed into a now bearish pattern and is looking worse as time passes by. Further exacerbating the danger, are literally dozens of bearish signals that have been lingering on the quarterly timeframe.

Technical Analysis Education | Everything You Need To Know About Triangles

Along with the bearish wedge shape, the MACD on weekly timeframes has crossed bearish, and a rare cycle top calling indicator has said its lights out for bulls soon enough.

Although the signal has appeared, Bitcoin is now much higher than when it first reared its ugly head. Bears were able to swat it back down, and what comes next will decide the fate of crypto for the next few months.

Will price action confirm resistance as support, and with it the ascending triangle before moving much higher? Or will the bearish wedge take shape further and cause an unexpected breakdown?

Featured image from Deposit Photos, Charts from TradingView.com

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What the forks? Bitcoin Cash and Ethereum Classic see triple-digit rallies

by Cointelegraph

It’s undeniable that Bitcoin (BTC) and Ethereum (ETH) are currently the two most dominant cryptocurrencies and as a result they receive the most of the attention from the mainstream media, institutional investors, and retail investors, but this doesn’t mean that the sector leaders are not occasionally challenged by competitor networks.

Two forked projects that once sought to challenge Bitcoin and Ethereum for their seats at the top are Bitcoin Cash (BCH) and Ethereum Classic (ETC). In the past week, both tokens have demonstrated that they are still capable of generating excitement and producing big gains.

BCH/USDT vs. ETC/USDT 4-hour chart. Source: TradingView

Data from Cointelegraph Markets and TradingView shows that the price of BCH has climbed 125% over the past two weeks as it rose from a low of $523 on April 4 to a high of $1,175 on April 16. During the same time period, ETC staged a 250% rally from $13.30 to a new all-time high at $46.53 on April 16.

BCH/USDT

Bitcoin Cash arose out of contention in the Bitcoin community centering around the scalability of the Bitcoin blockchain and the desire to increase the block size.

As a result of the disagreement, part of the community split off and “forked” Bitcoin to create BCH in order to implement the desired code updates.

The protocol now aims to be a peer-to-peer electronic cash system capable of being used to conduct fast payments around the world with low fees, user privacy and a high transaction capacity.

Momentum for Bitcoin Cash began pickup up at the beginning of April as the cryptocurrency market as a whole received increased attention from the mainstream media and financial markets. One theory suggests that new investors look for older coins with lower valuations as a starting point instead of chasing after Ether and Bitcoin which may appear expensive to new crypto traders.

BCH/USDT 4-hour chart. Source: TradingView

With Bitcoin now back above $61,000 and its hashrate hitting a record high of 200 EH/s, the top cryptocurrency is out of reach for many smaller investors and miners who may be turning to BCH as a more feasible option.

ETC/USDT

Ethererum Classic emerged in 2016 as the result of a hard fork within the Ethereum community following the hack of a popular platform called The DAO. Initially, the DAO was an early decentralized autonomous organization intended to act as an investor-directed venture capital firm.

ETC is actually the original legacy chain of the Etherum network that didn’t take corrective measures to recover funds lost in the hack as a way of maintaining the ethos of finality.

ETC/USDT 4-hour chart. Source: TradingView

While Ether has gone on to become the widely adopted version of the network, ETC has continued on its own path and is once again gaining attention from the crypto community as high transaction costs and the transition to a proof-of-stake consensus for Ethereum has lifted ETC to new highs as users looking for compatible options.

The hashrate of the Ethereum Classic network has steadily been climbing over the past 6 months alongside the rising price, helping to make the network more attractive to interested miners and increasing the overall security.

As more participants enter the crypto market in search of good deals on established projects, legacy coins like BCH and ETC could possibly see further price growth. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.