Welcome to the weekend folks! Grab a coffee and let’s recap the biggest news stories of the week in cryptocurrency and blockchain.
It’s been a rough week for bitcoin which plummeted 13% on Wednesday and never really recovered. Ethereum collapsed to its lowest level in over a year and some alt coins racked up 20% losses.
What Caused the Selloff?
Some pointed the finger at Goldman Sachs for reportedly shelving its plans for a crypto trading desk.
Others linked the selloff to an old crypto wallet connected to the infamous Silk Road – a dark net platform for selling drugs. A reported 111,000 BTC was moved from the wallet to various exchanges, prompting a huge downturn in price.
Another controversial theory is epic market manipulation. As CCN points out, there was a flurry of bitcoin market activity and trading volume in the moments before the Goldman Sachs announcement. It suggests that insider trading might be at play here.
Thanks to the introduction of futures contracts, a small group of wealthy traders are able to move the markets with relative ease. Because the arena is still relatively unregulated, they can do so without consequence too.
Is that what happened on Wednesday? Perhaps. No matter what the cause, it proves that the crypto market is still heavily influenced by just a handful of whales.
Ethereum Futures Are Coming
Speaking of bitcoin futures and volatility, we may soon have ethereum futures to add to the storm.
An ethereum futures contract would allow investors to bet on the future price of ether without having to buy the cryptocurrency itself. Theoretically, we should see institutional investors pouring money into the market (much like when bitcoin futures launched).
However, it could also have the opposite effect as ethereum futures contracts would allow traders to bet against the cryptocurrency. Read more here.
Could Blockchain Save Twitter From Scammers?
Congress grilled Twitter and Facebook executives this week over social media’s role in election interference and privacy invasion. One representative from California asked about the potential of blockchain in countering scams. (Something Block Explorer looked into in July).
Twitter’s CEO Jack Dorsey was optimistic about the technology:
“We haven’t gone as deep as we’d like just yet in understanding how we might apply this technology to the problems we’re facing at Twitter, but we do have people within the company thinking about it today.”
Dorsey is already evangelical about bitcoin. He previously said the internet “will have a native currency,” and that he “hopes” it will be bitcoin.
Coinbase is Working on an ETF
Who isn’t working on a bitcoin exchange-traded fund (ETF) these days? Despite nine sharp rejections from the Securities and Exchange Commission (SEC) last month, everyone is still scrambling to be the first bitcoin ETF provider.
Coinbase is the latest to join the race. The largest crypto exchange in the US is reportedly in talks with Blackrock to make it happen.
There was more ETF news this week as the SEC appointed a new commissioner, Elad Roisman. Roisman is pro-crypto, leading many to think he may swing the decision in favor of approving the next ETF proposal.
Half of Young Americans Want to Use Crypto
A recent survey revealed that 48% of US millennials are interested in using cryptocurrency as a primary method of payment.
The study also showed that 79% of Americans have heard of bitcoin or some form of cryptocurrency (where have the other 21% been??)
That’s all for this week’s roundup. Enjoy the rest of your weekend, and we’ll see you back here on Monday.