BitMex En Route to Launching a Mobile App to Trade Crypto Futures

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BitMex En Route to Launching a Mobile App to Trade Crypto Futures

Popular derivatives platform of BitMex has indirectly announced it will be launching a Mobile app.

John P. Njui   •   BITCOIN (BTC) NEWS – CRYPTOCURRENCY   •   June 4, 2020  

Quick take:

  • BitMex has indirectly announced that it has been working on a mobile version of its trading platform.
  • The revelation came in the form of a poll on the popular messaging platform of Telegram.
  • This comes after competitors such as Binance and Deribit, slowly but slowly gaining momentum as the choice platform for futures and options trading.

Crypto trading has continued to evolve with exchanges providing extra value-added services such as mobile applications, OTC portals, futures and options trading, peer to peer trading, and more. When it comes to the trading of Bitcoin (BTC) and Ethereum (ETH) contracts, BitMex was the favorite of many traders for the last few years.

However, its dominance has been chipped off by exchanges that have slowly but surely launched their own derivatives products. They include the popular crypto exchanges of Binance, BitMex, Poloniex, KuCoin, OKEx, Huobi, Bitfinex and Deribit.

BitMex Indirectly Announces it Has Been Working on a Mobile Application

The aforementioned competing crypto exchanges have one thing in common in that they have a mobile version of their trading platform available for their users to trade on the go. On the other hand, trading on BitMex has solely been a web browser affair until now.

Earlier today, and on the BitMex announcement channel on Telegram, the team at the exchange indirectly announced that they have been working on a mobile application. The team did so via the following poll requesting followers of the channel to vote on the next feature they would want to see on the exchange.

As can be seen via the screenshot, traders are enthusiastic about the possibility of a BitMex mobile application to trade crypto futures contracts.

BitMex’s Diminishing Dominance in the Trading of Crypto Futures Contracts

As earlier mentioned and over the past few months, BitMex has slowly lost the top spot in terms of the highest trade volume of Bitcoin futures contracts. Other exchanges such as OKEx, Huobi and Binance have slowly chipped away at BitMex’s dominance as can be seen in the Bitcoin volume and Open interest charts below courtesy of the team at Skew.com.


(Click on image for larger view)

Via the charts, we see that BitMex is ranked third in terms of 24-hour Bitcoin futures trade volume. Additionally, BitMex’s open interest comes second to OKEx. Perhaps with the launch of the BitMex mobile app, the derivatives exchange can regain its dominance in the crypto-verse.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Facebook Renames Calibra Cryptocurrency Wallet As Novi

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Facebook Renames Calibra Cryptocurrency Wallet As Novi

By RTTNews Staff Writer | Published: 6/3/2020 11:00 AM ET

Social media giant Facebook has renamed its Calibra cryptocurrency wallet as Novi cryptocurrency wallet in a bid to avoid confusion with the yet to be released Libra cryptocurrency. Novi is a new digital wallet for Facebook's Libra payment network.

The digital wallet will help people send, receive and hold Libra digital currencies. Facebook said, "While we've changed our name from Calibra, we haven't changed our long-term commitment to helping people around the world access affordable financial services."

The company said Novi was inspired by the Latin words "novus" for "new" and "via" for "way." It's a new way to send money, and Novi's new visual identity and design represent the fluid movement of digital currencies.

The company noted it has also included a fluid movement design of the Libra network to the Novi brand logo to underscore its commitment to the Libra network.

Novi can be used as a stand-alone app, as well as in Messenger and WhatsApp. There will be no hidden charges to add, send, receive, or withdraw money and transfers will arrive instantly. All Novi customers will be verified using government-issued ID, and fraud protections will be built in throughout the app.

The company hopes to introduce an early version of Novi when the Libra network is available. It will be rolled out in an initial set of countries, with features that will make cross-border money transfers instant, secure, and with no hidden fees.

The user can add money to the wallet and it will be converted into a Libra digital currency that can be sent to friends and family around the world. It can also be tracked at every step. The user can also choose to keep a balance in the wallet and use it to pay for everyday transactions or withdraw in the local currency.

The Libra payment network will be governed by the Libra Association, a consortium of major financial partners of Facebook's Libra cryptocurrency project. Novi Financial, a Facebook subsidiary, is one Member of the Libra Association.

The Association is currently working to create the blockchain-based Libra payment system supporting financial inclusion and responsible financial services innovation.

Geneva, Switzerland-based Libra Association was formed as an independent not-for-profit organization by the initial 28 financial backers of the Libra cryptocurrency project in June 2019. They were to invest around $10 million each in the project.

However, nearly 10 of the 28 initial members, including most of the payment firms, backtracked as they did not want to be publicly seen to be backing the project, fearing regulatory scrutiny. Some member added on later.

Faceboook has already launched the Libra stablecoin and payments network, along with its corresponding Calibra wallet last year.

For comments and feedback contact: editorial@rttnews.com

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Arthur Hayes: Bitcoin’s BTC Rally Aint Real Until We Take Out 15k

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Arthur Hayes: Bitcoin’s (BTC) Rally Aint Real Until We Take Out $15k

Bitcoin's rise above $10K was short lived as a dump forced it back to around $9,300.

John P. Njui   •   BITCOIN (BTC) NEWS   •   JUNE 2, 2020  

In brief:

  • Bitcoin broke the $10,000 psychological price barrier and briefly traded at $10,383.
  • Less than 24 hours later, BTC fell hard to $9,266 in what appears to be a classic Bart Simpson pattern.
  • Bitmex’s Co-Founder and CEO, Arthur Hayes, believes Bitcoin’s rally is not real until $15,000 is broken.

At around the time the daily candle closed yesterday, Bitcoin experienced a magnificent push from around $9,700 to $10,383 (Binance rate) in a matter of minutes. The King of Crypto then proceeded to cool down to levels around $10,100 where it traded sideways before dumping hard to $9,266 less than 24 hours after the rally above $10,000 begun. This move of up-sideways-down is often referred to as the Bart Simpson pattern as can be seen in the rough sketch below.


(Click on image for larger view)

Arthur Hayes: Bitcoin’s (BTC) Rally Aint Real Until We Take out $15k

Before Bitcoin took its massive fall to $9,266, the Co-Founder and CEO of Bitmex, Arthur Hayes, had tweeted that he does not feel like the rally above $10,000 was a real rally. According to Mr. Hayes, Bitcoin needed to break $15,000 for it to be a true Bull season. His tweet can be found below.

$130 Million in BitMex Liquidations on the Journey to $10,000

Further doing a brief analysis of losses in terms of liquidations, when Bitcoin pumped hard above $10K to $10,383, there was a total of $131 Million in liquidations. This is according to the @BitmexSniper bot on Telegram messenger. A screenshot of the breakdown of losses from the bot earlier today can be found below.

$96 Million in Liquidations on BTC’s Crash

During the sudden dip down to $9,300 levels, a total of $96 million in futures contracts were liquidated on the Bitmex exchange.

Binance Hit Hard By Bitcoin’s Flash Crash

Additionally, the Founder and CEO of Binance, Changpeng Zhao, notified the crypto community that the drop down to $9,350 on the BTC futures contracts made a big dent on the exchange’s Insurance Fund. He also explained that there were no Auto-Deleverage Liquidations this time round and that the exchange had improved on the speed of the API used by the futures platform. CZ’s tweet explaining the event at the exchange can be found below.

What Next For Bitcoin?

With the psychological price of $10,000 captured then lost in a span of fewer than 24 hours, the bullishness that was previously in the crypto community might have temporarily faded due to the quickness of the crash that followed. Therefore, observing Bitcoin for another 12 – 48 hours might be advisable for the cautious trader of BTC and other cryptocurrencies. At the time of writing this, Bitcoin has recovered mildly from the drip and is trading at $9,472 – Binance rate.

(Feature image courtesy of Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Bitcoin amp Crypto’s Dr Doom Had Warned About Riots back in March

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Bitcoin & Crypto’s Dr. Doom Had Warned About Riots back in March

Professor Nouriel Roubini had foreseen the possibility of riots as a result of the economic downturn due to COVID19.

John P. Njui   •   BITCOIN (BTC) NEWS – CRYPTOCURRENCY   •   JUNE 1, 2020  

In brief:

  • In early March, Professor Nouriel Roubini had warned of the looming US and Global economic crisis due to the spread of the Coronavirus.
  • He had predicted that there would be a ripple effect of unemployment and a disruption in the global food supply chain that would lead to riots.
  • The unfortunate death of George Floyd and the resulting protests were further amplified by the anger brought about by lockdowns and unemployment.

On May 25th 2020, George Floyd passed away in Powderhorn, Minneapolis. His death was as a result of a police officer (and three more) kneeling on his neck and body as he lay face down and handcuffed on the street. Mr. Floyd’s arrest and subsequent death, has angered many across the United States and the World as it further demonstrates the underlying issues in America with respect to racism and injustices that continue to haunt the Western nation since its independence from Britain in 1776.

Bitcoin & Crypto’s Dr. Doom Had Warned About Riots in Early March

As several American cities continue to experience social unrest, Professor Nouriel Roubini, also known as Bitcoin’s Dr. Doom, had warned about riots from as far back as early March. His warnings had stemmed from his observation and analysis of the global economic impact brought about by the Coronavirus.

One of his tweets from March 28th in which he warns about pending riots can be found below.

The next wave of the negative supply shock: disruption in US and global food supply chains and risks of food riots. The Arab Spring started with food riots. "A food crisis looms as coronavirus forces farms to stay idle and countries hoard supplies"

Professor Roubini’s Analysis of the Current Riots Rocking the United States

Furthermore, and in the following two tweets, Professor Roubini has explained that the riots go beyond the anger brought about by the unnecessary death of George Floyd. According to him, the unemployment of over 40 million Americans and their simmering anger is another reason why America is burning.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

The Creator of Bollinger Bands Hints at Bitcoin BTC Breaking 10K

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The Creator of Bollinger Bands Hints at Bitcoin (BTC) Breaking $10K

In a recent tweet, John Bollinger has hinted that Bitcoin can break the psychological price of $10,000.

John P. Njui   •   BITCOIN (BTC) NEWS – CRYPTOCURRENCY   •   May 29, 2020  

In brief:

  • The creator of Bolling Bands has postulated a scenario where Bitcoin rallies and breaks $10,000.
  • CME Bitcoin futures expired earlier today.
  • Bitcoin is holding steady above the $9,400 and $9,300 support levels.

The creator of the industry-tested charting tool of Bollinger Bands, John Bollinger, has hinted at the possibility of Bitcoin experiencing a nice rally that could see BTC push hard above the psychological price of $10,000. Mr. Bollinger expressed his trading idea via the following Tweet.

May’s CME Bitcoin Futures Have Expired

Also to note, is that the CME Bitcoin futures for the month of May expired a few hours ago. According to the CME Group website, the derivatives expire on the last Friday of every month at 4 pm London time.

Trading terminates at 4:00 p.m. London time on the last Friday of the contract month. If this is not both a London and U.S. business day, trading terminates on the prior London and the U.S. business day.

What Next for Bitcoin in the Crypto Markets?


1-Day BTC/USDT chart (Click on image for larger view)

Further taking a look at the daily BTC/USDT chart courtesy of Tradingview.com, we observe the following.

  • The Golden Cross on the daily chart is very much valid and could lead to BTC testing $10,000 once again.
  • The current price of Bitcoin at $9,400 is above the 50-day, 100-day, and 200-day moving averages further pleading the case of a bullish scenario in the following days.
  • The short term support zones for Bitcoin are $9,300, $9,200, $9,050, $8,800 and $8,600.
  • Conversely, the short term resistance zones for Bitcoin are around $9,500, $9,600, $9,680, $9,773, $9,879, $9,940 and $10,000.

Possible Retracement for Bitcoin Before a Push-Up

However, there is the possibility of a retracement for Bitcoin as seen through the following chart on the 6-hour timeframe.


6-Hour BTC/USDT Chart (Click on image for larger view)

From this chart, we observe that the bullish momentum of Bitcoin in recent days might be followed by a retracement. The trade volume is seen to be reducing with the MACD moving averages further indicating a move down into the weekend. Additionally, the MFI is high at 75 further pointing to a scenario where Bitcoin will undergo a cool down before the move Mr. Bollinger has suggested, plays out.

As with all technical analyses of Bitcoin, traders and investors are advised to practice risk management as well as use stop losses to protect trading capital.

(Feature image courtesy of Unsplash.com)

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Ethereum’s Vitalik: We Need an Alternative to Centralized Social Media

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Ethereum’s Vitalik: We Need an Alternative to Centralized Social Media

Vitalik Buterin believes we need alternative social media platforms following Twitter's move to label President Trump's tweets.

John P. Njui   •   ETHEREUM (ETH) NEWS – BLOCKCHAIN NEWS   •   May 27, 2020

In brief:

  • Ethereum’s Co-Founder, Vitalik Buterin, believes it is time for alternatives to centralized social media.
  • His remarks were in response to the recent decision by Twitter to flag some of President Trump’s tweets as ‘misleading’.

Censorship on social media is on the rise. More so since it was determined that such platforms can be used by all the wrong people to promote hate, terrorism, and fake news by bend the truth in a bid to aid their political campaigns. Therefore, it was of no surprise when Twitter decided to flag President Trump’s tweets for containing misleading information.

Vitalik Buterin: It is Time for Alternatives to Centralized Social Media

President Trump responded to the flagging of his Tweets by declaring such a move was infringing on his Free Speech. He further added that as President, he would not allow such ‘censorship’ to continue. It is with this background that Vitalik Buterin expressed his opinion that there needs to be an alternative to centralized social media. A screenshot of Mr. Buterin’s statement can be found below.


Screenshot courtesy of Twitter.com

President Trump Promises Stiff Action Towards Twitter

Additionally, in subsequent tweets, President Trump has threatened to act on the infringement of his free speech on Twitter. The following two tweets by President Trump further elaborate on the situation.

Reasoning Behind Twitter’s Move

In a May 11th update, the team at Twitter announced that they will be introducing new labels and warning messages on Tweets that contain disputed or misleading information. Initially, the new policy was meant to apply to COVID19 misinformation. However, the platform has since seen it fit to use the new labels on political comments, including those of President Trump.

Accompanying the May 11th update was the following statement regarding the new labels.

During active conversations about disputed issues, it can be helpful to see additional context from trusted sources. Earlier this year, we introduced a new label for Tweets containing synthetic and manipulated media. Similar labels will now appear on Tweets containing potentially harmful, misleading information…

(Feature image courtesy of Pixabay.)

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Wall Street Is Buying Vast Amounts Of Bitcoin Despite Goldman Sachs’ Anti-Crypto Attitude

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Wall Street Is Buying Vast Amounts Of Bitcoin Despite Goldman Sachs’ Anti-Crypto Attitude

By Brenda Ngari – May 28, 2020

Wall Street is accumulating bitcoin (BTC) at a rapid clip, disregarding what skeptics like Goldman Sachs have to say.

A new report has revealed that institutional investors have bought a lot of BTC since its halving on May 11. Approximately 12,337 BTC has been minted since the halving, but over the same timeframe, Grayscale Investments has purchased close to 19,000 bitcoins on behalf of its institutional clients.

Smart Money Doesn’t Care What Goldman Sachs Says: Analyst

Institutional investors are gravitating more towards bitcoin as a potential hedge against inflation and the overall dark cloud of economic uncertainty brought about by the coronavirus pandemic.

Grayscale Investments, one of the world’s largest crypto fund managers, is enjoying the increased institutional interest in digital assets. Data provided by Kevin Rooke, an independent cryptocurrency researcher, shows that 18,910 BTC has gone to Grayscale’s Bitcoin Trust since the halving. Yet, only 12,337 BTC has been produced since May 11. This implies that Grayscale Investments has bought over 150% of all the BTC mined since the halving.

Commenting on this appalling information, Rooke stated that Wall Street is buying bitcoin without paying any attention to Goldman Sachs’ advice regarding bitcoin.

It is, therefore, safe to say that bitcoin miners are not producing enough BTC to fulfill the needs of institutional investors who rely on Grayscale Investments. This is insanely bullish, especially considering that BTC recently underwent halving where the asset’s new supply was cut in half.

Some proponents suggest that the block reward halving would be a tacit boost for the BTC price in the long-term. They believe that as the BTC supply shrinks while the demand remains the same, the price of bitcoin should go up. 

Now, there is a clear demand for bitcoin, even from institutional investors. It should be noted that these investors have not been stocking up on BTC this month alone. Another report a couple of days ago showed that Grayscale bought around 34% of all the BTC minted in the 100 days prior to the halving. For perspective, the fund bought a staggering 60,762 BTC during that period which is a notable increase from last year.

Is Bitcoin Going Mainstream?

In a packet of leaked slides from an investor call on Wednesday, Goldman Sachs completely dismissed bitcoin as a viable investment. Why? The reasons given include bitcoin’s inability to generate cash flow, it does not hedge against inflation, and it also doesn’t “provide consistent diversification benefits”. 

While some may take Goldman’s comments as bearish, a few crypto observers think it is actually a good sign. Analyst Dave the Wave, for instance, asserted that the fact that the stalwart investment bank included bitcoin in their call means they are closely watching it.

“My take –  any publicity is good publicity. BTC is on their radar, and they’ve had to respond. The content of the response is secondary.”

The ongoing liquidity injections by central banks in the wake of COVID-19 have been criticized by financial experts who believe they will do more harm than good in the long-term. Such Wall Street critics like Paul Tudor Jones have purchased bitcoin with the belief that it is a great hedge against the great monetary inflation.

Although there remain naysayers like Goldman Sachs, bitcoin is certainly attracting a great deal of mainstream attention. Years ago, no one could have imagined that the pioneer cryptocurrency would attract such a high level of institutional interest. Whether this momentum continues for the rest of the year remains to be seen.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Coinbase To Acquire Institutional Crypto Brokerage Tagomi

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Coinbase To Acquire Institutional Crypto Brokerage Tagomi

By RTTNews Staff Writer | Published: 5/27/2020 11:37 AM ET

US-based cryptocurrency exchange Coinbase agreed to acquire New York-based institutional-grade crypto prime brokerage Tagomi as part of its strong institutional focus to cater to the ever increasing number of institutional investors venturing into cryptocurrencies such as Bitcoin.

The proposed acquisition comes at a time when the world’s most recognized hedge fund and macro investors are entering the crypto space and searching for the right infrastructure. This has driven tremendous growth in Coinbase Custody offering and increased volumes on Coinbase trading platforms.

The acquisition will bolster Coinbase’s offerings for advanced traders and the most sophisticated crypto investors.

Coinbase has already been rolling out offerings for these institutional clients, with the addition of advanced features such as margin trading for institutional investors and new tools to help investors segregate their trading strategies.

The crypto exchange said it has also recently expanded Coverage for larger clients by adding Brett Tejpaul as Head of Institutional Coverage to its leadership team.

According to Coinbase, the addition of Tagomi will round out its product suite for the fast-growing institutional trading market. It will enable integrated offerings such as custody, professional trading features, and prime brokerage services on one platform.

This will give the sophisticated institutional investors a seamless, powerful trading experience they have come to expect in equities and FX markets.

Since its launch in late 2018, Peter Thiel-backed Tagomi has become the platform of choice for many advanced traders, hedge funds, and family offices, including well-known names such as Paradigm, Pantera, Bitwise, Multicoin, and many more.

The company has also built out an executive team with a rare blend of traditional financial services and crypto experience, with the team bringing in experience from leading firms such as Goldman Sachs, Citadel, KCG, Tower Research, and USV.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year.

For comments and feedback contact: editorial@rttnews.com

Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Blockchain Healthcare Startup SolveCare Launches Global Telehealth Exchange

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Blockchain Healthcare Startup Solve.Care Launches Global Telehealth Exchange

By RTTNews Staff Writer | Published: 5/26/2020 11:07 AM ET

Blockchain healthcare startup Solve.Care has rolled out a bockchain-powered platform that will redefine the current healthcare system amid the COVID-19 outbreak whereby patients are reluctant to visit their doctors due to the pandemic.

Solve.Care's Global Telehealth Exchange (GTHE) will provide a solution with the world's first Global Health Exchange built on Blockchain. It will help connect every doctor to any patient, who can find, verify, book and see the doctor of their choice online.

GTHE will provide physicians who wish to practice telemedicine the opportunity to be listed on the global blockchain registry. Once listed, they can publish their profiles, rates, availability and readily accept appointments.

Upon patients' consent, doctors can immediately review their medical records, eliminating the time-wasted conducting repeat assessments and unnecessary medical tests. Users of GTHE can rest assured that their records are secure and tamper-proof as all records and transactions are stored on blockchain.

GTHE can be accessed through the Care.Wallet, Solve.Care's personalized healthcare management system, and will be commercially available for users in select markets in the second half of the year. All transactions on GTHE will use SOLVE, the company's native digital token, making foreign currency exchange rates and bank commissions redundant.

The GTHE care network breaks down the physical or geographical barriers between doctors and patients. Users will be able to consult medical practitioners anywhere in the world through their computers or personal devices.

According to the National Center for Health Statistics, 883.7 million patients visited a doctor in one year in the U.S. Millions of doctors worldwide need a new way to connect with patients as COVID-19 has reportedly cut patient-doctor visits by about 70 percent.

The move towards a decentralized healthcare system has accelerated dramatically due to the Covid-19 outbreak. Access to quality healthcare should not be restricted by barriers such as geography, systemic inefficiencies and administrative bureaucracy.

The deployment of blockchain and digital currency addresses many of the challenges that the global healthcare system is facing today. Medical practitioners who are not primarily involved in treating Covid-19 cases have experienced a significant drop in patient appointments.

The Solve.Care platform uses blockchain technology as the underlying distributed ledger for coordinating care, benefits and payments between patient, doctor, pharmacy, laboratory, employer, insurer, and all other parties.

Employers can use the platform to administer benefits, reduce costs, and reward their employees. Physicians and hospitals can issue prescriptions, manage appointments, and coordinate with a specialist.

The Solve.Care's platform is already adopted by commercial insurance companies, accountable care organizations, and the US federal government agencies, through HMS.

Last year, Solve.Care also partnered with ride-hailing company's Lyft and Uber to transform medical transportation by improving access to medical care. It will provide reliable, accessible and affordable rides to patients and caregivers.

For comments and feedback contact: editorial@rttnews.com

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Why The Post-Halving Miner Capitulation That’s Underway May Ignite A Meteoric Bitcoin Rally

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Why The Post-Halving Miner Capitulation That’s Underway May Ignite A Meteoric Bitcoin Rally

By Brenda Ngari – May 26, 2020

Bitcoin miners have been on a wild roller-coaster ride in the past few weeks. After the halving on May 11, the rewards they receive were slashed by half from 12.5 BTC per block to 6.25 BTC. As a result, most of the miners using older model mining machines were forced to shut them down as they were registering meager profits. This resulted in a substantial drop in the hashrate.

With bitcoin recently slipping below crucial $9,000 level, fears of a further dive have been renewed. A possible sell-off might discourage new investors from entering the bitcoin market. However, Charles Edwards, a digital asset manager at Capriole, sees the miner capitulation as an opportune time to buy bitcoin at low prices before the next bull market. 

An ‘Almost Vertical’ Rally Could Spring From Ongoing Miner Capitulation 

According to an indicator known as hash ribbons, miner capitulation has started. As miners capitulate, they sell their bitcoin holdings to cover their expenses and cut their losses. This process adds significant pressure to the bitcoin market.

In a tweet on May 25, Charles Edwards pointed out that the second round of miner capitulation in 2020 is currently underway, indicating that BTC could continue slumping in the near-term.

Edwards had noted earlier that BTC’s third halving that just concluded would be a brutal event for miners. Less than two weeks since the event, bitcoin’s weekly hashrate has dropped by 26%. Notably, a similar pattern was witnessed after the two previous halvings in 2012 and 2016 as miner capitulation began within 21 days of the halving.

The silver lining of the current picture is that miner capitulation is often a “massive bull flag” – a continuation pattern of a bullish trend. In fact, Edwards cites that the rallies that ensued after miner capitulation were “almost vertical”.

Edwards did not explain how high bitcoin could go after a miner capitulation. He had, however, stated in late December last year that bitcoin historically saw an average gain-to-cycle-peak of over 5000%.

Strong Fundamentals Boost Bitcoin’s Bullish Outlook

Charles Edwards further noted that bitcoin’s bullish case is bolstered by the strong fundamentals.

He gave three factors to back his assertion: massive increases in Tether (USDT), funds are hungry for bitcoin as they buy all the newly-minted BTC in 2020, and the overall macro picture against a backdrop of BTC’s halved inflation rate. The latter, in particular, is presumably in regard to the expansive monetary measures undertaken by central banks across the globe as a result of the COVID-19 pandemic.

Edwards observed that the hash ribbon buy signal could be confirmed in less than three weeks. This could very well be the last chance to accumulate BTC before the asset starts soaring into the stratosphere.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe