Daily Trending News and Market Sentiment: CME Flash Crash, Digital Lira

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Bitcoin bulls will take today’s performance as further evidence that Bitcoin has just passed a major bottom and is now building momentum for a sustained push above and beyond USD 10,000, the key psychological barrier that quickly repelled the surprise bull run of a week and a half ago.

After a rather tepid day of trading on Monday, price suddenly shot up amid thickening volumes, ensuring Bitcoin recorded a higher low and a higher high today, at USD 9,173 and USD 9,526 respectively (CoinDesk). While it seemed to be Asian traders that took profit, causing price to slip for a few hours, Europe trading and now North American trading seem intent on taking price back up, perhaps towards USD 10,000 in a few hours?

Altcoins are smiling even wider, it seems, with Ethereum finally breaching USD 190 right now, amid strong gains for Litecoin (2.55%), EOS (4.47%) and Stellar (17.19%).

Looking at daily timeframes, we see strong signals also from relative strength index (RSI) and moving average convergence divergence (MACD). However, the better news is that if we move timeframes outward to weekly and monthly, they are even stronger, suggesting steady price movements just below USD 12,000.

There hasn’t been much in the news to suggest that sentiment is behind this, although we are now seeing reports that certain trading activity patterns on CME Group’s Bitcoin futures indicated that a flash crash was happening.

Some crypto skeptics will say that this is just further proof that exchanges and traders manipulate prices of Bitcoin. Statistician Willy Woo today said that CME’s flash crash was only the latest incident that harmed Bitcoin’s reputation as a decentralized market.

According to available chart data, prices crashed by over USD 1,000 from USD 9,400 momentarily, before recovering to USD 9,300. It was noted that there was a futures trading gap at that level before, and analysts say that when price tries to fill those gaps at minimum resources, these flash crashes occur.

Woo summed up how unbelievable Bitcoin markets can be:

“I cannot believe how crazy trading BTCUSD on the short term is right now. The gap on the CME has filled already. It’s thinly traded yes. But man, I’m highly suspicious of the price action across all the exchanges of late, more so than usual”.

Another analyst, lowstrife, agreed that this was more proof that manipulators are alive and well on the Bitcoin market. He said: “If you look at my original tweet, all the volume printed before the actual dump. But on the 1 minute chart it looks like it was part of the entire move. This is called painting the tape.”

Meanwhile, the push for blockchain adoption via the route of central bank digital currencies (CBDCs) seems to be gaining strength, this time in the old meeting point of East and West.

Turkish president Recep Tayyip Erdogan apparently dropped a news item saying that the Turkish state was about to complete trials for its own CBDC next year. This new digital lira would be based on blockchain, and issued by the Turkish Central Bank in line with the 2020 Annual Presidential Program.

National publication Resmi Gazete published a document outlining how Turkey would see its Presidential Program seeing out the closing stages of the digital lira testing in 2020. It is part of a bid to strengthen the national economy, beginning with finance:

“The main objective is to establish a financial sector with a strong institutional structure that can respond to the financing needs of the real sector at a low cost, offer different financial instruments to a wide investor base through reliable institutions and support Istanbul’s goal of becoming an attractive global financial center.”

This digital lira is not exactly a shock, since it was already included in previous plans under the country’s  2019-2023 economic roadmap, introduced just three months ago. Alongside a CBDC, blockchain technology is also planned for use in transport, customs, and other public services as well as administration.

Just last month, plans for a Turkish blockchain infrastructure to deplot DLT tech in public administration was announced. Next week, the Turkish Capital Markets Summit 2019 in Istanbul will welcome Binance CEO Changpeng Zhao, as Turkey bids to establish itself in the modern finance sector.

Blockchain straight ahead.

 

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