(the following is not investment advice or recommendations to buy or sell securities, commodities, or investments of any kind. It is meant to be instructive on market microstructure only) The recent price behavior of BitCoin vs US Dollars is quite instructive on the importance of understanding market micro-structure. Over the past week, as it … Continue reading BitCoin “Distribution” Phase?
This morning, we were treated to an unprecedented event in the history of market regulation: a joint OpEd written by the heads of the two most powerful market regulators in the U.S. The reason for this piece is clear, in their opinion the practices of the crypto community during the current crypto boom have gone … Continue reading The Regulators Up their Crypto Game
This morning in the gym, I noticed the first of (likely) many “warnings” on CNBC about Crypto-assets emanating from Davos. This should surprise no one, as that confab, which includes the most powerful financiers in the world, is primarily about consolidating and maintaining the power they hold as modern-day aristocrats. While I am not a … Continue reading Warnings from Davos on the “Risks” of Crypto are right on schedule…
What is the price of BitCoin? If you watch CNBC, you might think that Coinbase is an official source. If, however, you are looking at the CME BitCoin futures website, you might believe that their arbitrary “index” using a weighting schema of 4 exchanges is THE price. On the other hand, if you look at … Continue reading Will the REAL price of BitCoin please stand up?
It seems like every day we hear more from the SEC about the perils of Crypto-investing, and yet get more proof of how futile some of their efforts will be. Yesterday, we learned about the launch of KodakCoin, which promptly sent the stock of Kodak up 44% and it continued to go higher. The … Continue reading ICO Regulation? Sure, but please avoid using outdated rules
So, you want to get RICH? Go ahead and BUY, BUY, BUY into the next hot ICO or crypto asset!!! Ok, maybe not, but what should you do? Well, how about, for a start, learn about what you might be investing in. Is it a company with growth prospects, a commodity that everyone is going … Continue reading ICOs: Scams or Something New? (What is a Network Token?)
As I write this post, I wonder if the fact that both the spread between Cboe and CME futures to the price of "spot" Bitcoin and the spread between the CBB being higher than the CBO for BitCoin has narrowed is due to a holiday hangover or represents normalcy. Privately, I suspect the former, but … Continue reading Is BitCoin trading approaching “normal” or is it a post holiday hangover?
Everything “crypto” is red hot these days, with news stories on bitcoin volatility and the broader world of cryptocurrency trading every day. It seems like everyone has an opinion on the future direction of these assets, whether they understand them or not. The past couple of days, in particular, saw a surge in these stories, … Continue reading Will the Regulators Treat Crypto like Equities? Let’s hope not…
BitCoin’s meteoric price rise has captured the imagination of the financial and mainstream media with its rally to touch 19,000 over the past couple of days. What has been covered a bit less is the breathtaking amount of inefficiency that has been shown in the market. As shown in the following chart of the CoinRoutes … Continue reading Breathtaking Inefficiency in Bitcoin Markets will make the Futures Markets Interesting
Sigh... My guess that the short term run in BitCoin was over in yesterday's blog doesn't look so good today. For a few hours, as shown in the Consolidated Best Bid and Offer graph above, the enormous gap where the best offer was below the best bid narrowed. This did not last, as, once again, … Continue reading BitCoin — Battle Between GDAX and KRAKEN as it Nears 10,000