Cryptocurrency latest news today 16th May 2019 - COIN360
DAILY
May 16  |  2 min read

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BeQuant Analytics, a daily cryptocurrency market analysis contributor

As pointed out yesterday, Ethereum underperformed significantly vs BTC in the recent run-up, so much so that Y/Y basis Bitcoin is nearly flat, while Ethereum was down around 60% in the same metric. As such, there was some leeway for relative value plays to re-enter the market and close the gap, even if only partially. The above materialized in dramatic fashion, as Bitcoin remained relatively stable around the $8k mark, while Ethereum rallied from $218 area well into $270 region.

The move was driven by yet another aggressive use of the CDP and MakerDAO ecosystem. Specifically, the amount of so-called “draw” on May 15th, a feature that allows people to take loans in Dai from your CDP, has topped the amount that was observed in early April when the rally began. At the same time, the “wipe” function which allows users to pay down their loans has risen to a 3-month high. As a result, the total amount of ETH locked in the credit ecosystem has fallen to 1.7540% vs 2.11% at its highs. In view of this, it looks like the market is primed for a sharp correction.

In other news, as pointed out by Cointelegraph, in the course of a planned hard fork update, the Bitcoin Cash (BCH) network experienced difficulties processing transactions. Following the expected fork at block 582,680, the network purportedly began to experience issues with transactions, the number of transactions per block was low — 0 in the last 9 blocks starting at block 582,687. Following comments from the community regarding empty blocks, developers appear to have released a patch to fix the bug.

Elsewhere, as per a Bloomberg report, Indexica, an alternative data provider, built a custom index based on the natural language processing of thousands of textual documents to try and explain Bitcoin’s 28% rise throughout the month of April. Their findings showed three main drivers: a more complex conversation surrounding Bitcoin, fewer concerns about fraud and a shift in the tense of how Bitcoin is talked about from the past to the future. The higher quality discourse suggests that more academics and financial professionals are discussing the cryptocurrency and that institutions may be taking it more seriously as an asset class.

Finally, the host of Keiser Report and Bitcoin bull Max Keiser has again expressed optimism that Bitcoin will reach his predicted $100,000 price. Keiser said several factors such as major institutions like TD Ameritrade, eToro and others getting into Bitcoin will eventually take the price to his price target of $100,000 per coin.

Thank you for reading,
The BeQuant’s Analytics team