BitPinas Crypto News Roundup (May 6, 2020)
We are 5 days and 22 hours before the Bitcoin Halving. Read a roundup of cryptocurrency news today, May 5, 2020.
As of May 6, 2020, 8:43 pm (PH Time):
- Bitcoin is $9,293.05 (+4.77%)
- Ethereum is $209.15 (+2.77%)
- XRP is $0.22 (+2.60%)
We are 5 days and 22 hours before the Bitcoin Halving. Read a roundup of cryptocurrency news today, May 5, 2020.
As Bitcoin Surges Past $9.2K, CME Futures Hit 10-Month High
Bitcoin is on a steady price surge today as it climbs back to $9.2k at the time this article is written. At the same time, the number of futures contracts outstanding on the Chicago Mercantile Exchange (CME) is now at $351 million. This is the highest level since July 10, 2019 and quite far from the $107 record it had on March 12 during the Bitcoin March 2020 flash crash (which coincided with a global market crash on that date).
Why is this relevant?
What’s happening at CME is often considered a proxy to institutional activity (meaning institutional investors as opposed to retail traders). The surge in open interest could be an indication that professional traders are returning to the Bitcoin market.
Is BitMEX the Reason why the Bitcoin Network is More Expensive?
A study found out that every day, around 9:08 am ET (9:08 pm Manila Time), crypto exchange BitMEX broadcasts thousands of transactions all at once, most of which user withdrawals. The effect is an immediate spike in the fee rates that users will pay.
According to the pseudonymous bitcoin engineer 0xb10c, this daily broadcast from BitMEX is putting pressure on the Bitcoin network and increasing user fees. (Remember that a fee is paid in every Bitcoin transaction). The engineer noted that if BitMEX used more efficient technologies when broadcasting transactions, users can collectively save as much as around 1.7 bitcoin in fees every day.
Pantera Capital CEO Expects Bitcoin to Shine Amid Global Bear Market
Pantera Capital CEO Dan Morehead sent a letter to investors saying he does not expect a V-shaped economic recovery in the US. However, he argues that this current market environment could be good for Bitcoin as investors seek new opportunities.
A V-Shaped Economic Recovery is one shape a recession could end with in terms of how economic charts are formed. In a V-Shaped recession, the economy suffers tremendously (a sharp decline) but will quickly and strongly recovers, characterized by a shift in economic activity to sustain it.
Morehead also thinks the bitcoin halving will be a bullish catalyst, stating that based on historical data, a post-halving rally may occur.
Ukraine Considers Nuclear Plants for Crypto Mining
There is currently an excess in energy output in Ukraine and excess energy is considered a liability. Now, its Ministry of Energy said they can take advantage of this by using this excess energy for crypto mining on nuclear plants.
In a Facebook post, the ministry even said that this can be a way to ensure extra funds, allowing for a “new economy”. The backdrop for this is the Ukraine government’s push for digitalization.
Philippines SEC Advisory on Numerous Cryptocurrency Scams
The Philippines Securities and Exchange Commission has been flagging crypto scams at a record spree. This week they flag two projects – “Crypto Invest With Us (CIWU)” and Woncoin Project.
Remember that in the Philippines, one has to get a license from the Bangko Sentral ng Pilipinas to become a “Virtual Currency Exchange”. Additionally, the SEC will have to check whether your cryptocurrency is a security or not and irrespective if they are crypto or not, as long as they think what you are offering are “securities”, you have to obtain a license from them
