All posts by Ethan William

Hedge Fund Managers Pounce on Bitcoin Volatility

Sophisticated hedge fund traders are drawn to speculation, as evidenced by a more than a twofold increase in the number of crypto-driven hedge funds in recent months. Fintech analysis firm Autonomous NEXT told CCN hedge funds are currently overseeing between $3.5 billion and $5 billion in assets under management (AUM) across 226 crypto funds, in the four-month period leading up to today. Indeed, while much of institutional capital remains sidelined from the cryptocurrency market, the tide is beginning to shift. For instance, the most recent Autonomous data compares to 110 crypto hedge funds as of Oct. 18 and about three dozen at the start of 2017. Meanwhile, crypto funds have risen alongside the BTC price over the same period, over which time the bitcoin price advanced 70%. But there have been peaks and valleys, including 2017’s record 1,300% run, December’s near $20,000 high and a rocky January in which the BTC price shed about 30%. Hedge fund strategies thrive on this type of activity as they aren’t limited only to betting on the rise in the BTC price.

Reference: https://www.ccn.com/hedge-fund-managers-pounce-on-bitcoin-volatility/

Japan’s Cryptocurrency Industry is Launching a Self-Regulatory Body

Japan’s two primary cryptocurrency industry groups are merging to form a new self-regulatory entity following the recent $530 million hack of Tokyo-based exchange Coincheck. The unnamed new entity is set to launch April 1, the Nikkei reports, a year to the day after Japan’s revised Payment Services Act – which recognizes bitcoin as a legal method of payment – kicked in. The self-regulatory body will see the unification of the Japan Blockchain Association and the Japan Cryptocurrency Business Association. The former is notably founded around bitFlyer, Japan’s largest cryptocurrency exchange. The new entity aims to quickly enforce self-imposed rules surrounding the protection of exchange users’ assets, system downtimes, insider trading and even advertising. Additionally, penalties for breaches will also be considered. All of which sums up to a transparent foray to foster confidence from the public and the conventional financial industry in the cryptocurrency space, particularly in the aftermath of a major hack.

Reference: https://www.ccn.com/japans-cryptocurrency-industry-is-launching-a-self-regulatory-body/

Spain’s Government Prepares to Lure Blockchain Firms, ICO Issuers

The Spanish government is reportedly preparing legislation that includes possible tax incentives to lure blockchain companies into the country. The People’s Party (PP) of Spain, the country’s ruling party, is weighing up legislation to specifically attract blockchain firms due to the technology’s potential in a number of industries including finance, education, and health, according to lawmaker Teodoro Garcia Egae. Speaking to Bloomberg, the lawmaker also pointed to ‘specific regulations’ that would make Spain a destination for entrepreneurs and firms to carry out initial coin offerings (ICOs) using blockchain(s).

Reference: https://www.ccn.com/spains-government-prepares-lure-blockchain-firms-ico-issuers/

Hackers Injected Cryptocurrency Mining Malware

Earlier this week, hackers infiltrated Browsealoud, a free text-to-translation tool, and injected the Coinhive cryptocurrency mining malware script into the tool’s JavaScript codebase. Consequently, the estimated 4,275 websites using Browsealoud — including some operated by government agencies in the US and UK — became unwitting pawns in a cryptocurrency mining malware gambit, believed to be the largest-scale attack of its kind. When users visited the website, the Coinhive mining script automatically began harnessing the visitor’s computer processing power to mine anonymity-centric cryptocurrency Monero. However, perhaps due to the massive scale of the breach — and the fact that it targeted prominent government websites — the exploit was quickly discovered, and by the end of the day, Browsealoud creator Texthelp had suspended the service.

Reference: https://www.ccn.com/hackers-injected-cryptocurrency-mining-malware-into-4275-government-websites-they-only-made-24/

Bitcoin Cash Price Leads the Market

The Bitcoin price rode a bullish wave this week, rising as high as $10,300 after trading below $8,000 as recently as Feb. 11. On Friday, though, the Bitcoin price dipped back below $10,000. As of the time of writing, Bitcoin was valued at $9,793 on Bitfinex, which translates into a $166.9 billion market cap and represents a slight increase over its previous-day level.
The decline correlated with the start of Chinese New Year but it is unclear to what extent the events are linked, given that Bitcoin surged in advance of the holiday. Conventional wisdom, though, suggests that the holiday could lead to some downward pressure on the markets, as regional investors exchange their cryptoasset holdings for fiat to finance their holiday spending.

Reference: https://www.ccn.com/bitcoin-cash-price-leads-market-btc-retreats-10000/