Hi everyone! The day started with news about the falling exchange rate – in just two hours, it has dipped below the $8000 mark. With an 8.17% reduction, Bitcoin hardly managed to stay below the psychological level of $8000. Cryptocurrencies with large capitalization (ETH, BCH, LTC and BNB) have fallen by 5 to 12%.
Let’s take a look at the news. The sharp decline of Bitcoin, the launch of marginal trading on exchanges and ‘Bitcoin-like token’ USC, shifts in Russian crypto policy – this is what we will remember about the last week of spring 2019.
In May, Bitcoin volatility reached record levels. While it remained at a modest 1.1% in March, it had already reached 3.5% in April, followed by a record 4.6% in May, renewing the maximum set in December 2018.
On May 30, the first cryptocurrency broke through the $9000 price level. However, this was soon followed by an extreme correction. This might have happened due to the launch of marginal trading on Binance. The exchange did not make any official statements about this fact, however it was noticed by users.
Bitcoin SV, a competitor of Bitcoin Cash, has seen significant growth. Its price increased by 100% in just a few days.
The growth was probably caused by fake news from China about an Australian transferring 50 000 pounds from the wallet owned by Satoshi Nakamoto, thus supposedly proving his identity as the creator.
Seems someone did it purposely just around the same time BSV pumped just an hour ago.
Completely fake news but “real enough” to trick many Chinese retails pic.twitter.com/qiWtW6Z8bC
— Dovey Wan 🗝 🦖 (@DoveyWan) 29 мая 2019 г.
Bitcoin named most profitable investment since the start of 2019
Charlie Bilello, an analyst from the New York company Pension Partners, has calculated the profitability of Bitcoin investments to be 134% from the start of 2019.
Bitcoin $BTC: +51%
Volatility $VXX: +19%
Long Bonds $TLT: +7%
Bonds $AGG: +2%
Gold $GLD: +2%
REITs $VNQ: +0.2%
Junk Bonds $HYG: -2%
MSCI EAFE $EFA: -5%
S&P 500 $SPY: -6%
MSCI EM $EEM: -7%
Russell 2k $IWM: -8%
Nasdaq 100 $QQQ: -8%
Oil $USO: -17%
— Charlie Bilello (@charliebilello) 31 мая 2019 г.
The rate of return on Bitcoin turned out to be much higher than traditional market instruments: 27% for oil; 16% for the high tech Nasdaq index; 14% for S&P 500; only 0.04% for gold. However, Bitcoin is not a leader on the cryptocurrency market – since the beginning of the year, the Binance exchange token has increased by 475%, with 255% growth ofTezos and 254% of Litecoin.
2019 Crypto Returns…
Binance Coin: +475%
Bitcoin Cash: +166%
Eth Classic: +46%
— Charlie Bilello (@charliebilello) 27 мая 2019 г.
A new era of mining?
According to analytics portal blockchain.com, the profitability of Bitcoin mining has reached July 2018 levels, or $20.5 million per day.
The mining complexity indicator is at approximately the same level as it was in September 2018.
At the same time, average commission on transactions is growing, exceeding $4 in mid-May. What’s more, average daily transaction volume is also growing – it is currently the same as it was in early January 2018, when crypto market capitalization was at a historical high and the price of the main cryptocurrency was at $10 000.
Updated version of Binance exchange is 90% ready
The launch date of the updated Binance platform is rapidly approaching – this was announced by platform CEO Justin Sun on Twitter.
…loading [■■■■■■■■■□] 90% pic.twitter.com/JvrcwjCFbt
— Binance (@binance) 29 мая 2019 г.
In the attached post, you can take a look at the future interface of the platform. The screenshot features a tab titled ‘Margin’, indicating that the future platform will offer marginal trading.
These news had a positive impact on the Binance token: its price recently set a new historical maximum, exceeding the $30 mark. Capitalization has also set a new record, beating the historical maximum at $4.2 billion.
Russia and crypto legislation: Rostec intercepts initiative from Sberbank
Sberbank stepped back from plans to work with cryptocurrencies due to a missing legal framework. Later, the president of Russia held a meeting dedicated to the development of AI technology. Questions regarding the development of blockchain were also raised during the meeting. Rostec is set to become a leader in development of blockchain solutions, quantum sensors and Internet of Things. Several weeks ago, Rostec presented a roadmap for blockchain development in Russia within the Digital Economy program.
14 major companies to launch own ‘Bitcoin-like token’ USC
Development of this token has been in the works for several years. Its launch is a major initiative in the blokchain sector. 14 major companies are participating in this project, including financial conglomerate Barclays, American stock exchange Nasdaq, Swiss bank Credit Suisse, American holding company BNY Mellon and German banking conglomerate Commerzbank. The project is led by UBS, a major Swiss financial holding company. Participants have already invested £50 million into development of the token.
The goal for USC is to create a payment mechanism and tool for sharing information on deals, while also reducing the time and cost of conducting cross-border transactions. Fnality International has already begun negotiations with regulators in different countries. The plan is to start using the token by the end of 2019.