The cryptocurrency market reined in its excitement today, with a noticeable correction from yesterday’s market-wide rally. Bitcoin lost 200 points but is continuing to maintain its strong market dominance at 70.50%.
Altcoins are suffering, with notable losers including BNB(-4%), LINK(-4.84%) and ATOM(-6.66%), while the rest of the top-50 show losses between one and three percent.
Cryptocurrency market dynamics since September 3. Source: Coin360
A price correction was to be expected, as the initial excitement from the VanEck “ETF” waned. As reported yesterday by Crypto Briefing, the news had been offered in exceedingly flattering terms. The product in question is far from a true ETF, much less a game-changer.
The Bitcoin vs gold debate has also continued, with Peter Schiff vehemently defending the metal as the true safe-haven against Anthony Pompliano.
Gold and silver lost nothing. Governments conned the public into using paper instead of gold. But central banks continued to hold it as a reserve, and individuals continued to use it as a store of value. But gold has the ability to function as money today. Bitcoin does not.
— Peter Schiff (@PeterSchiff) September 4, 2019
While Twitter banter is unlikely to shift prices, it’s interesting to note that Bitcoin has a lower correlation with the stock market than gold does, according to data from Coinmetrics.io.
Gold, BTC and S&P 500 30-day correlation. Source: Coinmetrics.io
As seen from the graph, the correlation between Bitcoin and the S&P500 (bottom gray line) is actually negative, while gold (pink line) tends to follow the stock market slightly. These values are too close to zero to end the debate, but nevertheless provide useful ammunition for the Bitcoin as a safe-haven argument. In fact, the negative correlation has become significantly stronger over the last few months.
Gold, BTC and S&P 500 correlation in 2019. Source: Coinmetrics.io
Zooming out, the trend is easy to spot – but the changes involved are still considerably low.
Binance Pulls A TRON, ATOM dumps on software release
Binance has made significant moves in the crypto derivatives space. Two days ago it announced the simultaneous acquisition of the JEX derivatives platform and the launch of the Binance Futures testnets.
Seeking to compete with the likes of BitMEX and Digitex, it appears that the exchange platform took some ‘inspiration’ from its rivals as well – to the point that some of the Binance Futures documentation is identical to that of BitMEX.
Congrats on the Testnet Futures launches @binance. Glad to see you enjoyed reading our documentation as much as we enjoyed writing it! pic.twitter.com/lLzcLcX6t4
— BitMEX (@BitMEXdotcom) September 4, 2019
Changpeng Zhao immediately replied to apologize, blaming the mishap on the recently acquired company. While he handled the situation as gracefully as he could, BNB registered a sharper drop than the market average.
One of BNB’s skydiving partners is Cosmos and its ATOM token. Cosmos has recently released beta support for Non Fungible Tokens on its SDK. This is the first major development update since July, adding a fairly significant feature that is perfect for blockchain gaming and other tokenization projects.
However, the market seems unimpressed. Having already fallen by more than 50% in the last few months, the blockchain interoperability project is not yet enticing buyers.
Finally, LINK has reversed its gains from the last couple of days. It could be the first hint at a recovery – or a classic bull trap.
LINK / USD H4 Chart by TradingView
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