Welcome to the daily crypto news :
The Mechanics of Market Manipulation;
Bitcoin Price Retests $7.3K as Analyst Eyes New Bullish Futures ‘Gap’;
IBM Patents Blockchain to Stop Drones From Stealing Packages;
Trump Isn’t Sold on Bakkt CEO Kelly Loeffler Becoming US Senator;
US Lawmakers Want to Brand Libra a Security, Association Disagrees;
The Mechanics of Market Manipulation
Galen Moore is Senior Research Analyst at CoinDesk. The following article originally appeared in Institutional Crypto by CoinDesk, a weekly newsletter focused on institutional investment in crypto assets.
The levers are there to move hundreds of millions in crypto markets, and they're clearly labeled
On May 17 of this year, bitcoin's price dropped suddenly. The action started on a single exchange: Bitstamp, domiciled in Luxembourg, where the dollar price of bitcoin suddenly dropped more than 18 percent in a matter of minutes. The CoinDesk Bitcoin Price Index, a composite of several market feeds, recorded a 6 percent drop as a result.
Bitstamp was, at the time, one of three spot markets used as equal components in the bitcoin price index for BitMEX, a crypto derivatives exchange domiciled in the Seychelles that operates one of the most liquid bitcoin derivatives markets, the XBT/USD perpetual swap. BitMEX's other two bitcoin index components are Coinbase Pro and Kraken. Of the three, BitStamp's reported volumes are lowest.
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Bitcoin Price Retests $7.3K as Analyst Eyes New Bullish Futures ‘Gap’
Bitcoin (BTC) fell back towards support at the $7,250-$7,300 level on Dec. 1 after its latest sudden uptick began to fizzle overnight.
Futures gap incoming if lower levels stay
Data from Coin360 showed the largest cryptocurrency shedding almost 30% of its gains from earlier in the week, dropping from local highs of $7,790 to around $7,300 at press time.
The downside equated to 24-hour losses of 6% for Bitcoin, which began showing signs it would test support strength at $7,000.
Previously, BTC/USD hit multi-month lows of $6,500 before rebounding almost $1,300 within a matter of days.
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IBM Patents Blockchain to Stop Drones From Stealing Packages
Amazon, DHL and FedEx are building drones that deliver packages to your door. IBM, however, envisions a future where drones steal them instead.
The computing giant won a patent on Nov. 12 for “Preventing anonymous theft by drones” with an Internet of Things (IoT) altimeter that triggers upon liftoff, tracking the package’s altitude and uploading the data to a blockchain platform.
The patent seeks to get ahead of two modern realities: people buy goods online, and people fly their own personal drones. That could be a problem, it says, if the trends combine to devious ends.
“The confluence of the increase in drone use and the increase in online shopping provides a situation in which a drone may be used with nefarious intent to anonymously take a package that is left on a doorstep after delivery,” the patent description reads.
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Trump Isn’t Sold on Bakkt CEO Kelly Loeffler Becoming US Senator
Georgia Governor Brian Kemp is expected to appoint Kelly Loeffler, CEO of institutional Bitcoin (BTC) futures platform Bakkt, for a United States Senate seat next week.
Atlanta’s local news outlet AJC reported on Nov. 29 that Kemp plans to choose Loeffler in a bid to expand the appeal of the Republican party to women. If nominated, Bakkt’s CEO will become just the second woman to serve in the United States Senate from Georgia.
Furthermore, Loeffler could also finance GOP activities with her personal fortune, which the outlet suggests could break fundraising records.
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US Lawmakers Want to Brand Libra a Security, Association Disagrees
A couple of United States lawmakers are looking to classify stablecoins as securities. With Libra considering adopting fiat-pegged stablecoins rather than a single token supported by a basket of national currencies, the proposed crypto project might be facing yet another regulatory hurdle.
Meanwhile, lawmakers sponsoring the bill say stablecoins should be classified as securities to protect U.S. consumers. If passed, stablecoin projects like Libra will potentially fall under the purview of stringent U.S. securities regulations.
Critics of the move remark that such measures only serve to further dampen the country’s position in the emerging digital landscape. Some commentators have long accused regulators of chilling innovation in the U.S. crypto and blockchain space.
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