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Bitcoin is At Mercy of S&P 500, as “Fragile” Stock Market is at Risk




  • Bitcoin faces a critical second half of the year as its correlation with the S&P 500 index nears 43 percent.
  • While both markets have rallied impressively from their March 2020 lows, they are far from confirming a  V-shaped recovery due to resurgence in the COVID cases.
  • Meanwhile, the Federal Reserve’s fiscal support measures are ending in July, further raising the possibilities of a downside correction in the S&P 500 and Bitcoin.

A bearish stock market now appears bad for Bitcoin.

The analogy pops after the S&P 500’s growing proximity with the top cryptocurrency since March 2020. Data on Skew shows that the realized one-month correlation between the two markets has grown to 43.1 percent, its highest in more than a year.

bitcoin, s&p 500, btcusdt, btcusd,. xbtusd. xbtusdt, cryptocurrency, crypto

Chart showing Bitcoin-S&P 500 Realized Volatility. Source: Skew

The moves in Bitcoin and the S&P 500 were almost identical this week. Ronnie Moas, the founder of cryptocurrency-focused market analysis firm Standpoint Research, called it a near 1:1 correlation, adding that the fractal brought Bitcoin “at the mercy of S&P 500.”

“During the last 18 days, both are down 10 percent,” he tweeted on Saturday.

The S&P 500 closed the week at a 2.86 percent loss as daily COVID infections increased rapidly in some U.S. states, fanning fears over about a slowdown in the economic recovery. Meanwhile, Bitcoin still has two more days to finish the week but had fallen by 1.25 percent already as of the press time.

Worries Ahead

Clearly, the enhanced presence of the Federal Reserve helped the stock market – as well as Bitcoin – recover from it March 23 low.

Nevertheless, the extravagant amounts of cash liquidity masked the underlying challenge that faces the U.S. economy. The markets are reopening but amid fears of a resurgence in the COVID cases. Meanwhile, elevated unemployment, weaker corporate earnings, and consumers’ increasing saving sentiment could limit the recovery prospects.

spx, s&p 500, us index, coronavirus, covid19

SPX chart showing its weekly correction move amid rising virus cases. Source:

Didier Saint Georges, the managing director at Carmignac, told FT that investors lack visibility which may prompt them to stick with stocks with higher growth potential, such as technology and healthcare. That entails a rosy picture for Wall Street in the second half of 2020.

But for Liz Ann Sonders, chief investment strategist at Charles Schwab, the recovery will not be smooth as it looks. That is particularly because of the rising number of COVID cases in the U.S. and across the globe.

“Now as I watch what’s happening I think it’s more likely to be rolling Ws,” rather than a V, she told CNBC. “It’s not just predicated on a second wave. I’m not sure we ever exited the first wave.”

What It Means for Bitcoin

The short-term fundamentals point to an extended correction in the S&P 500. It partly due to the Federal Reserve’s expansionary monetary policy ending in July 2020. Many believe that the central bank would resume its quantitative easing by August but the uncertainty about it alone could push the stock market down.

That means investors could sell their profitable holdings to raise cash to prepare themselves for the so-called rough times. It could leave Bitcoin in a similar downside move, now that it sits atop more than 30 percent YTD gains.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency

Meanwhile, if the S&P bounces back, then it will help Bitcoin sustain its bullish bias.

Veteran macro investor Dan Tapeiro last week indicated that the cryptocurrency would benefit if institutional investors start dumping their cash positions to seek better yields in risker markets.

“Dash to cash [is] most surprising because it all yields near [zero],” he said. “Huge opportunity cost vs equity, gold, and bitcoin.”

Messari data also showed that Bitcoin could hit $50,000 in the coming session if institutional investors allocate even 1 percent of their portfolios to the cryptocurrency. PlanB, the creator of the popular stock-to-flow model, meanwhile, predicted Bitcoin to hit $18,000 if it maintains its correlation with the S&P 500.



Can DeFi Survive Without CeFi? Bitrue’s Hybrid Solution Might Be The Middleground




Decentralized finance has been crypto’s defining motif this year, thanks in no small part to the ascendance of token mining solutions popularly known as yield farming. However, despite billions of dollars of crypto assets being locked into DeFi protocols, it has still to be determined whether decentralized finance can realize the lofty goals that inspired its creation, like banking the unbanked and providing greater financial inclusion.

What’s beyond dispute is that the legacy financial system crippled by excessive regulations and distorted by extremely loose central banks’ monetary policies is badly in need of disruption. And this is where hybrid solutions that leverage the best aspects of the centralized and decentralized worlds can play an important role. One such provider that straddles both domains, CeFi and DeFi, is Bitrue.

Enter Bitrue

Bitrue is a reputable financial management platform with a solid user base in Europe and Southeast Asia. Founded in 2018 by a group of crypto enthusiasts led by current CEO Curis Wang, Bitrue started out as a cryptocurrency trading platform initially focused on Ripple’s XRP as one of their base currencies, and the platform still plays a prominent role in the XRP ecosystem. At the moment, it processes the second-highest volume of trades in XRP, more than 15%, and supports a wide range of XRP-denominated trading pairs.

Curis Wang, Bitrue’s CEO believes that Bitrue’s hybrid solution can create a balanced DeFi/CeFi paradigm

Bitrue’s exchange also features a range of other trading pairs in carefully selected assets with a total daily trading volume of around $300 million. The Bitrue platform has 543,000 active traders and 1.62 million registered users. In year-to-year terms, Bitrue’s community has grown by 330% and its daily trading volume by 620%.

Importantly, while trading remains a core functionality of the platform, it has been rapidly expanding to the world of crypto finance. In particular, Bitrue has for some time allowed users to take collateralized crypto loans and earn interest on their crypto via the pioneering PowerPiggy program. The latter currently supports 26 different coins and loans can currently be taken in USDT, BTC, XRP, or ETH.

Bitrue Makes Its DeFi Play

Recently, Bitrue has revealed that the platform will switch from a purely centralized (CeFi) model of crypto lending and investment to a hybrid model containing both centralized and decentralized components. The first DeFi component that is planned for rollout in Q1 2021 is a peer-to-peer matching engine for borrowers and lenders. Bitrue’s DeFi ecosystem will be powered by the recently created Bitrue Finance (BFT) token. The first round of the token distribution has already taken place via a pre-sale and public sale and the token is now trading on Bitrue. The platform’s original native token (BTR) will continue to be used for its current purposes, such as allowing traders to pay less in exchange fees and receive higher interest rates in PowerPiggy, etc. 

Bitrue is also planning to launch its liquidity mining program by the end of October. It will make it possible for users to earn rewards in BFT and other tokens for providing liquidity to the relevant liquidity pools. In contrast to pure DeFi yield farming, Bitrue Liquidity Mining will be much easier to use and accessible even to newcomers to crypto finance. Users will be able to just deposit their coins for a certain period and receive rewards without the need to interact with several different protocols themselves.

Whether you are interested in highly secure and easy-to-use crypto trading and financial services, or a battle-hardened yield farmer, you will find options to explore within the Bitrue ecosystem. The platform is proof that DeFi’s growth doesn’t have to come at the expense of CeFi and vice-versa: the two can co-exist via hybrid solutions that combine the best of both worlds.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.



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Not Ethereum, Polkastarter, the DEX Protocol Will Launch on Polkadot




Since gaining prominence in recent times, Decentralized Finance (DeFi) has been marauded with some sort of technical problem especially as it utilizes Ethereum blockchain that only does about 25-40 transactions per second. Most, if not all current DeFi aggregators and DEX platforms are built atop the Ethereum blockchain, it’s easier to deploy contracts on the Ethereum blockchain than in any known blockchain and it’s quite cheap to do too. 

However this comes with a cost, the cost is in the amount of gas fee spent just by interacting with this platform, a cost too much to bear by most traders who cite that the cost of the gas Fee itself is more than their targeted profit amount after checks. Not everyone has a $20 gas fee to pay for a $10 transaction, it’s absolutely ridiculous and makes little sense. Lower gas fees would delay your transactions stretching into days or weeks for successful completion, a frustrating loop suffered by DEX traders. 

By eliminating the time spent for a successful transaction on the blockchain, reduced gas Fee to very significant low levels, allowing interoperability of different blockchain protocols, Polkastarter solves a lingering problem which has been associated with Ethereum blockchain right from the days of crypto kitties, crypto punks, blockchain gaming platforms that started the gas war of 2018 which shot up gas fees to a record high of nearly $50.

Recently gas hikes have been prevailing in the Ethereum blockchain yet again, it has proved to be unworkable, and doesn’t encourage low-income earners, guys at the bottom end of the spectrum to participate in DEX activities. New users who want to test the waters with low amounts aren’t encouraged by the high fee. So far there haven’t been working solutions that deal with this problem for DEX users. 

Polkastarter will be the first of many improved Dex protocols, built on Polkadot, using the sharding technology to ramp up transactions occurring within the network. The significance of this improvement will affect the average DEX users in the following ways:

Cheap fees: Polkastarter protocol will enable cheap transaction fees, the processing speed in Polkadot blockchain is around 160,000 TPS, with this speed of transaction, costs will be greatly minimized, the high cost in Ethereum blockchain is because of the slow TPS which Miners take advantage of from time to time. Miners within the Ethereum network, in the times where the network is experiencing clog, will only pick and execute transactions with high fees allowing transactions with low fees to hang on for a long duration of time. This is big business for Miners and they get to decide how fast or slow each transaction would execute. 

The problem of hiked fees is already at the top priority for Polkastarter regardless of the number of users available on the network per time. 

Speed: No one has the whole day for a transaction no matter how important the needs are. In fact, a high confirmation speed of transaction is very sacrosanct for traders, little difference in time matters, with a short space of times, in minutes or seconds, the price can either rise or fall sharply. A protocol that delays payment because of low gas fees is very much frowned at to give way for a faster one. Processing 160,000 transactions per second is very much significant for traders, everyone loves speed. 

Sharded network: Swift and cheap blockchain transactions are made possible by the sharded network of the Polkadot protocol on which Polkastarter built its DEX. Shard translates to a more scalable network, as more and more networks join the database, they will come to rely on each other while maintaining the privacy and security features that make blockchain technology so hot. Polkastarter will be one of many protocols built on the Polkadot network but for decentralized exchange purposes. 

Sharding helps spread out the computational and storage workload across a peer to peer network so that each participating node isn’t responsible for processing the entire network transactional load but are evenly distributed throughout the ledger. 

Interoperability: Sharding abilities will allow networks to inter-operate with each other so that data and file transfer happens smoothly across blockchains without hiccups. Projects listed in the Polkastarter DEX aggregator will be able to communicate with each other regardless of the blockchain type, taking off the limitation faced by legacy blockchains, where only tokens with the same blockchain type can interact. 

Polkastarter protocol would change the game for decentralized exchange aggregators for good, ushering that much-needed ease for doing business within DEX.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.


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Ripple Aims To Expand Its Financial Institutions Network




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Ripple, a huge crypto exchange, is now aiming to expand its Financial Institutions network by adding them as partners and customers. The firm is currently seeking to integrate two engineers as it has vacancy for them. One vacancy is for a Senior Integration Engineer in Dubai and another one is for Staff Integration Engineer in London. 

It is revealed that with the appointment of these two engineers, the financial institutions network of the company will be enlarged. Along with this, the partners of the firm will be having access to RippleNet using their own payment system. 

Ripple Staff Integration Engineer Will Create New Integration Solutions

According to the announcement, the Staff Integration Engineer of Ripple will be creating and trailing the new integration solutions. Not only this, he will also have to take part in troubleshooting sessions with companies across the world. 

Both the new recruitments will be working to design, build, test and deploy the integration solutions for the firm. They will also have to solve the challenges that clients and partners of Ripple might be facing while integration and deployment process. Both of the integration engineers will have to provide the training to the new customers of the firm.

XRP Might Grow Into a Better Payment Solution

Marcus Treacher, the senior Vice President of Customer Success at Ripple, has said that at the present moment, the transnational payments market is not working really well. He further mentioned that the way RippleNet has been working, it will be transforming the industry. According to him, XRP is having a huge potential to grow into a better payment solution than any other out there. The firm is regularly working to expand and better its services across the world by trying out different measures. This appointment of two engineers is going to play a major role in the development.

READ  Coinsilium Launches Global Blockchain Hackathon Initiative With Indorse

#Better Payment Solution #Create New Integration Solutions #Financial Institutions Network #ripple #ripplenet #Senior Integration Engineer #Staff Integration Engineer


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