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Jan 8 17 3:33 AM
zerohedge.com / by Tyler Durden / Jan 7, 2017 10:45 AM
Having long been advocates of Bitcoin (ever since Sept. 2015 when it traded at $230)
for the simple reason that we were confident the digital currency would
eventually become China’s favorite means of circumventing capital
controls – precisely as has transpired – two months ago we warned
that the unprecedented surge which made bitcoin the best performing
asset in the past year with a 5x return, may be ending as “China Prepares To Impose Curbs, “Capital Controls” On Bitcoin.”
Since then, and especially over the past week, China has launched a
series of incremental steps designed to do just that, which culminated
on Friday when China’s central bank issued a statement calling the changes in the virtual currency “abnormal”, and said authorities have required the trading platform to operate in compliance. They urged the platform to “probe investors’ behavior and to “rectify misbehavior.”
Furthermore, according to China Daily,
China’s financial services authorities required major executives of the
Shanghai-based bitcoin trading platform BTCC on Friday to “rectify misbehavior in the trading of the virtual currency”, without clarifying precisely what this means, and to raise awareness of risks as the value of bitcoins experienced wild fluctuations.
Jan 8 17 12:59 PM
peakprosperity.com / by Charles Hugh Smith / Friday, January 6, 2017
I have covered the many reasons why the U.S. dollar (USD) has strengthened in dozens of posts over the past 5 years, (Could the U.S. Dollar Rise 50%?, January 12, 2011), and I described the positive dynamics of bitcoin last summer in An Everyman’s Guide to Understanding Cryptocurrencies (June 13, 2016), back when bitcoin was under $600.
The USD (as measured by the US Dollar Index) has gained almost 40%
from 73 in 2011 to 102 recently, and bitcoin recently topped $1,000
(trading at $921 as this article goes to print).
These gains aren’t trivial, nor are they magic. They are the result
of basic economic forces: supply and demand, utility, liquidity, capital
flows and risk management.
Capital migrates to where it flows with the least resistance, i.e. to
forms of capital that are liquid and offer low transaction costs—what I
call ease of flow. Capital also migrates to relatively safe
havens that are liquid and offer low transaction/holding costs, and to
forms of capital with global utility.
Jan 9 17 11:16 AM
news.goldseek.com / By: CAPTAINHOOK / Monday, 9 January 2017
Why is Bitcoin going through the roof? Some would have you believe
it’s solely because of Yuan depreciation risk, with most of the buying
coming out of China. This is certainly a factor, and likely chief
trigger of the present melt-up, however this is not the entire reason.
Others would be quick to add it’s the scarcity factor (only 21 million
units in circulation) and the ‘check’ blockchain technology
provides. And again, these are factors as well. But there’s another
reason. Of all the alternative currency markets, with precious metals
the king daddy, Bitcoin is not a controlled market or political target
run by Western control mechanisms – centered on futures markets.
Bitcoin has no ‘credible’ futures market or stock
exchange derivative alternatives. Therefore, unlike precious metals,
speculators who wish to participate in Bitcoin must actually buy
Bitcoin, not a derivative used to splinter the market and redirect
demand into falsities used to manage prices. This of course illuminates
the idiocy of COMEX and its hedge fund / banker players with respect to
So how high can Bitcoin go?
It’s a bubble now,
and positively correlated with the nexus of fiat based bubbles (stock,
debt, etc.) that are sure to pop at some point, so although it can go
much higher (for the wrong reasons), it should be pointed out once the
Chinese buying dries up, considerable volatility should arrive. What’s
more, besides the fact(s) it’s supply is both controlled and monitored,
it’s backed by nothing, which in fact makes it a fiat animal as well
(because supply constraints can be changed), given it’s much better
behaved than sovereign alternatives (don’t tell the public). So, it’s
risky – make no mistake. Scarcity, in and of itself, is not sufficient
reason to act irrationally in the full measure of time.
Jan 11 17 12:09 PM
Jan 11 17 12:10 PM
charleshughsmith.blogspot.com / CHARLES HUGH SMITH / TUESDAY, JANUARY 10, 2017
So let’s imagine a scenario in which tens of trillions of at-risk
wealth suddenly seek an alternative–any alternative to staying in an
asset class that’s circling the drain.
Jan 12 17 12:43 PM
wolfstreet.com / by Wolf Richter / Jan 12, 2017
The People’s Bank of China announced on Wednesday that it is probing
the major bitcoin exchanges in Beijing and Shanghai – BTCC, Huobi, and
OKCoin – for a list of violations, including market manipulation, money
laundering, and unauthorized financing.
This is part of the PBOC’s efforts to crack down on capital flight, a
major escalation from last week, when Chinese officials warned
investors – if you can call them “investors” – to be careful with
bitcoin. That warning came at the peak of the spike and tipped the whole
Ironically, China’s many other crackdowns on capital flight have
pushed the hapless Chinese, who want their capital to flee, into
bitcoin. It was seen as a way of converting their yuan into something
other than yuan, which they fear will depreciate relentlessly.
Jan 13 17 12:28 PM
armstrongeconomics.com / by Martin Armstrong / Jan 13, 2017
The Chinese government has been strengthening requirements for
citizens by converting their yuan. With Trump coming into office, China
fears that lower values for the yuan will become a trade war even if the
government is not actively trying to depreciate the yuan for trade.
Conversions of yuan are already subject to a quota or currency controls
in an effort to curb capital outflows.
Bitcoin has been the escape method for capital fleeing China. China’s
major bitcoin exchanges halted or otherwise updated their bitcoin
trading services. The changes to Bitcoin are being made in response to
interactions with the People’s Bank of China. The People’s Bank of China
delivered an “informal guidance” that is beginning to take notice of
the capital flight through Bitcoin exchanges. The central bank called in
the big exchanges for a discussion.
Jan 15 17 3:41 AM
zerohedge.com / by Tyler Durden / Jan 14, 2017 10:16 AM
China’s bitcoin traders who use the most popular bitcoin exchange not
only in China, but also the entire world, BTCChina, were met with an unexpected warning on Friday:
Starting from January 12th, 2017, BTCChina has
suspended margin loan service. If you have any questions, please
contact Customer Service: [email protected].
BTCChina, which commands over 37% of global bitcoin trading…
Following last week’s central bank crackdown on bitcoin, China’s
major bitcoin exchanges have all halted, or otherwise updated, their
lending-based bitcoin trading services, according to CoinDesk.
First reported by China-based bitcoin traders and market observers,
BTCC, Huobi and OKCoin appear to have quietly adjusted their terms. Just
around the time of the BTCChina notice, Huobi issued a similar
announcement on its WeChat page, advising clients that “in order to
maintain market stability, we may pause the new leverage services at any
time according to market fluctuations and our risk control systems.”
Jan 25 17 12:37 PM
zerohedge.com / by Tyler Durden / Jan 24, 2017
As we reported yesterday, there was one reason why bitcoin quickly became the darling of HFT and various high speed algo traders operating out of China – which is home to about 10 significant bitcoin venues, with a majority of trades executed on the top three, and which recently accounted for as much as 98% of global bitcoin
trading: domestic transactions were “frictionless”, as there were no
fees on buys or sells. However, that changed on Sunday night because as China‘s three largest bitcoin
exchanges, BTCC, Huobi and OkCoin, all said in separate statements on
their websites, starting Tuesday they will charge traders a flat fee of
0.2% per transaction. The move was meant to “further curb market manipulation and extreme volatility.”
As expected, the impact was immediate and on the day the new fees
went into effect, trading volumes crashed by roughly 90% across most
According to Bloomberg, the same high-speed traders who had dominated bitcoin trading in China for the past year, are pulling out of China’s bitcoin
market after the three biggest venues started charging transaction fees
on Tuesday. One-hour volume at OkCoin fell 89% to 1,026 bitcoins at 1 p.m. local time, from 10,062 during the same period on Monday, according to the venue’s website. Huobi and BTC China saw declines of 92% and 82% respectively.
According to data from Bitcoinity there
were roughly 4,800 trades on OKCoin between the hours of 11pm and
midnight EST. In the following hour, the exchange registered just over
1,000 trades, denominated in CNY: a comparable fall of more than 80%.
Jan 29 17 8:53 PM
sunshineprofits.com / MIKE MCARA / JANUARY 27, 2017
Bitcoin Trading Alert originally sent to subscribers on January 26, 2017, 09:58 AM.
In short: no speculative positions.
The recent drop in Bitcoin volatility is widely attributed to developments in China. On Bloomberg, we read:
Bitcoin’s volatility has plunged since China banned leveraged trading and forced exchanges to charge fees.
Perhaps more meaningfully, trading volume has plunged 98 percent
compared with the first days of 2017, according to data from
bitcoinity.org. On Jan. 1, when bitcoin traded at $1,012.3, 4.8 million
coins exchanged hands. On Wednesday, only 80,092 did. Sure, many Chinese
investors, who still represent the lion’s share of trading, are away
from their desks because of the Lunar New Year. Still, the speed and
pattern of the decline make it hard not to draw a line to the regulatory
A conspicuous change in the yuan’s share of trading tells the story.
On average, 97 percent of all bitcoin transactions between the end of
July and Dec. 31 were performed in the Chinese currency. This week, that
number dropped to 63 percent; Wednesday’s 33 percent was the lowest
since December 2013.
We generally don’t see as strong a relationship between the recent
actions of the Chinese regulator and the price level. Sure, the ban on
leverage and the prospect of fees have probably been detrimental to the
number of investors or traders actively selling and buying bitcoins
through Bitcoin exchanges. On the other hand, Bitcoin had already seen
the sharpest rise in months and the highest levels since 2013. This was
precisely the environment where declines could occur. So, while the new
regulations hit the volume, the move in price needn’t have been driven
by them. In reality, the decline was most likely a combination of both
market exhaustion and new trading restrictions.
Jan 29 17 9:53 PM
The idea of the survivalist, the
lone pessimist preparing for what he sees as an inevitable end to the
world as it currently exists by stocking up on basic commodities
or building a protected bunker, has not faded entirely from the realm
of possibility in today's world. One of the major differences with
today's survivalists as compared with the historic perception of the
individual doomsday worrier has to do with the means of those
individuals, according to an article in the New Yorker. And one thing that the wealthy survivalists of today are preparing with is digital currency, including Bitcoin.
Feb 1 17 8:07 PM
financialsense.com / FS STAFF / 02/01/2017
India’s recent move toward a cashless society, it’s becoming
increasingly clear that a worldwide effort is underway to move away from
physical currency, according to Norbert Haering, Ph.D., writer for Germany’s leading business newspaper, Handelsblatt, and author of The Abolition of Cash and the Consequences.
This time on FS Insider, we spoke with Haering to get his take on
India’s transition, and those who would like to see cash completely
eliminated to be replaced by digitized payments.
Who’s Behind the Move in India?
Indian Prime Minister Narendra Modi’s move to abolish around 80
percent of Rupee bank notes last year stirred a lot of controversy and
was a major surprise to the Indian public and others.
That being said, “it didn’t come out of the blue like it did for the
Indian people,” nor was it simply an idea that was generated by Modi or
the Indian government, Haering stated. “It was prepared with foreign
help.” Here’s a clip:
Feb 3 17 3:31 AM
zerohedge.com / by Tyler Durden / Feb 2, 2017 11:36 AM
As the dollar continues to tumble (and amid China’s
quite period during Golden Week), Bitcoin has gently begun to shake off
China ‘probe’ weakness and extend its gains once again. For the first time since January 5th, Bitcoin is trading above $1000…
Feb 8 17 12:31 PM
zerohedge.com / by Tyler Durden / Feb 8, 2017 8:20 AM
Chinese were bust over the Golden Week holiday… buying Bitcoin (up from
6350 to 7550 in Yuan). But now that the vacation is over, China’s
central bank is back to its crackdown and following reports of “closed-door” meetings with various Bitcoin exchanges, the virtual currency was sent tumbling this morning.
As Bloomberg reports, officials
from the People’s Bank of China are meeting Wednesday afternoon with
representatives from a number of the nation’s trading venues, the
people said, asking not to be named because the meeting is private.
Money laundering is among the topics on the agenda, said one person
Feb 9 17 7:25 AM
kingworldnews.com / February 08, 2017
With the price of gold surging above $1,240 level, the top
trends forecaster in the world, Gerald Celente, discussed a world on the
edge of chaos as gold, China, France, Bitcoin and the Middle East may
be set to erupt.
Watch Gold, China, France, Bitcoin & The Middle East In 2017
(King World News) Gerald Celente — Yesterday,
Bitcoin spiked more than 2 percent, hitting its highest price
since January 4. Today, gold hit a three-month peak, pushing prices up 7
percent this year.
And although equity markets continue to trade near all-time
highs in the US, bitcoin and gold prices also have moved higher. Are
bitcoin and gold’s steady rise signaling the onset of the market storm?
Or is a greater trend taking shape?…
Feb 9 17 10:49 AM
zerohedge.com / by Tyler Durden / Feb 9, 2017 8:53 AM
Yesterday’s ominous closed-door meetings between the PBOC and bitcoin exchanges, appears to have had a dramatic effect, and as at least two Chinese bitcoin exchanges, Huobi and OKCoin, reported moments ago, all bitcoin withdrawals are now effectively suspended.
The result on bitcoin price was immediate and dramatic with bitcoin traded in China tumbling 7%.
This is the third major plunge driven by PBOC words (or deeds) pushing the dollar price of Bitcoin back below $1000
Feb 9 17 10:59 AM
news.goldseek.com / By JS Kim / 9 February 2017
the years, I’ve written a number of articles regarding why I prefer
physical gold and physical silver over bitcoin (BTC). I believe in
monetary competition, however, and believe that different forms of money
should be allowed to compete, because the best form will eventually and
quite rapidly always rise to the top. However, we are far from such an
environment, as government/banking cartels have banned the use of gold
and silver as systemically-wide accepted forms of money worldwide while
ensuring that their rapidly devaluing fiat currencies remain the norm.
So where does BTC fit into this picture? Again, I think that BTC has its
place in the economy, especially since transaction fees using BTC are
well below the highway-robbery rates of global banking institutions.
However, BTC has yet to prove itself in preserving purchasing power over
decades of time as has gold and silver, nor does it meet all 9
qualities that I deem necessary for sound money.
any event, as some of you may well know, BTC has exhibited massive
volatility in 2017, far beyond even the sometimes volatile price
fluctuations in spot gold and spot silver prices. BTC started out this
year reaching an interim high of $1,129.87 per BTC, then plunged a
maddening 31% in just 5 trading days to $775 after the Chinese
government placed more restrictions on BTC trading, but since then, has
nicely recovered 24% of that plunge and has risen back to $1,052.54 per
BTC. At the time, BTC rose to $1,129, many posed the question of whether
BTC was better than gold, which in my opinion, it will never be due to
its digital nature. Some ask why would Chinese regulations cause BTC to
plunge 31% in five trading days, and the answer is simple. Chinese
speculators were almost entirely responsible for the rise of BTC from
$800 to $1,129 at the end of 2016 into the start of 2017. As the Chinese
government took more measures to clamp down on black money leaving
China, wealthy Chinese turned increasingly towards BTC as their
preferred mechanism to move black money out of China, thus fueling a
speculative, unsustainable rise in BTC price. Furthermore, Chinese
traders not even using BTC to move black money out of the country
piggybacked off of this rising, easy trade because most Chinese BTC
exchanges charged no fees on either end of the buy and sell transactions
for BTC. However, when regulators changed these rules and implemented a
0.2% transaction fee on both ends of the trade, the easy speculative
profits disappeared, and in response, BTC volumes collapsed 90% almost
overnight on every Chinese BTC exchange.
the easy profits of HFT bankers trading the Chinese BTC exchanges
disappeared, this was a constructive development for the BTC market,
because though HFT traders always claim that they benefit markets by
providing “liquidity”, such claims are rubbish, and most HFT traders
destroy markets by destroying real price discovery. Thus, the less HFT
traders that exist in any market, the less volatility in prices there
should be. However, since Chinese traders alone fueled the vast majority
of the rise in BTC price at the end of 2016 into the start of 2017, it
is always critical to track what is happening to the Chinese BTC market
to understand what may happen to BTC prices in the future. As an
analogous example, ask yourself what would happen to a company’s
revenues if the company received 90% of its revenues from one customer
and that customer decided not to renew its contract with that company?
For now, this is how much influence the Chinese can have over short-term
Feb 12 17 3:29 AM
armstrongeconomics.com / by Martin Armstrong / Feb 10, 2017
China has called all Bitcoin exchanges
to a closed door meeting looking to shut down the flight of capital
from China. China is looking to deal with the expected trade
confrontation with Trump and looking to shut down the flow of capital
that has been putting a downward pressure on their currency. We can see
that the US dollar has risen for 35 months and this will be seen as a
currency war by Trump for his advisers from Goldman Sachs are clueless
assuming markets can simply be bullied or manipulated with power.
Feb 14 17 6:47 PM
sunshineprofits.com / MIKE MCARA / FEBRUARY 14, 2017
Bitcoin Trading Alert originally sent to subscribers on February 13, 2017, 01:23 PM.
Needham & Co., an investment firm, has issued a new report on the
potential success of three prospective Bitcoin ETF. In the report, we read:
Given elevated interest in the bitcoin ETFs that are going through
the regulatory approval process we’re revisting the subject with a
deeper dive to take a look at the factors that may affect approval,
differences between the three filings, market indicators of approval
odds, and the effect of approval/disapproval on price. Overall, we
maintain our estimates that the likelihood of approval is less than 25%
but that, if it were approved, such an ETF would be extremely
successful. That said, there are some market indicators that seem to
suggest higher odds than our own estimates. Ultimately, while we don’t
see any specific reason to disapprove the Winklevoss Bitcoin ETF, we
think the SEC is likely to disapprove out of an abundance of caution
around bitcoin itself (as opposed to something specific to the filing).
The general idea here is that there is nothing wrong, technically,
with the Winklevoss filing but rather the SEC is not familiar with
Bitcoin itself and may be disinclined to give a go-ahead. If this
assessment is correct, this might mean that we would have to wait a lot
longer for a Bitcoin ETF.
While we agree with the opinion that a Bitcoin ETF would be largely
successful as it would address the demand from Bitcoin investors.
Currently, it is relatively hard to trade Bitcoin if one is not
comfortable with the notion of a Bitcoin exchange. A Bitcoin ETF would
potentially change that and it is our view that a lot of investors
currently willing to participate in the market but not able to do so
would enter and possibly give Bitcoin a boost.
Feb 17 17 1:46 PM
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