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Crypto Weekly - Oct. 5


Cryptocurrencies started this week with losses, primarily due to the lack of any major positive news. On the other hand a slew of negative talk, especially on the price of Bitcoin, led the market lower by Wednesday.

Bitcoin and its peers rebounded Thursday as some positive news of more institutional investment and mainstream adoption boosted sentiment. Friday, the market was mixed due to the lack of either positive or negative news.

Overall cryptocurrency market capitalization was $218.87 billion and the Bitcoin dominance rate was 52.1 percent as of 10.42 am ET on CoinMarketCap.

In news, the cryptocurrency bull and former hedge fund manager Mike Novogratz again corrected his Bitcoin price forecast, saying the top crypto will not top $9,000 by the end of this year.

Elsewhere, China's Bitcoin whale Li Xiaolai is reportedly planning an end to investing in future blockchain projects, citing dissatisfaction with fraudulent players.

And, shares of the only Bitcoin investment trust in the U.S., Graysacle Bitcoin Investment Trust, has fallen nearly 80 percent since Bitcoin hit a record $20,000 in December 2017, the Bloomberg reported. High fund fees and the sharply downward trend in Bitcoin were among the reasons to be blamed.

Here is a collection of the main news from the cryptocurrency and blockchain space this week.

Federal Court Rules CFTC Can Prosecute Cryptocurrency-related Fraud

A federal judge upheld the Commodity Futures Trading Commission's view that cryptocurrencies are commodities and ruled that the regulator can prosecute fraud involving virtual currencies. The U.S. District Court for the District of Massachusetts Senior Judge Rya W. Zobel held that the CFTC had sufficiently alleged that the particular virtual currency at issue, My Big Coin, was a commodity under the Commodity Exchange Act because the CFTC alleged that MBC "is a virtual currency and it is undisputed that there is futures trading in virtual currencies (specifically involving Bitcoin)." CFTC Chair Chris Giancarlo said in an interview to CNBC earlier this week that  cryptocurrencies are here to stay and that there is a future for them. However, the top regulator doubted if they will ever rival the dollar or other fiat currencies.

SEC Sets New Date For Bitcoin ETF Review Due To Multiple Proposal Amendments

The US securities market regulator set October 26 as the new deadline for its decision for approving a Bitcoin exchange-traded fund. The Securities and Exchange Commission decided to set a new deadline because some amendments were proposed by the Cboe to list GraniteShares Bitcoin ETF. Now, the regulator is seeking comments in support or in opposition to the proposed amendments.

Bitcoin's Lightning Network Applied On Coca-cola Vending Machine

Bitcoin's Lightning Network was used to purchase Coca-cola from an experimental vending machine that accepts Bitcoin payments, as per a video released by Spain's hardware hacker Ricardo Reis. The 42-second video, which is titled "Coke vending machine that accepts Bitcoin payments through Lightning Network," Reis demonstrates the procedure with a modified Coca-Cola vending machine. Elsewhere, French Bitcoin technology company ACINQ raised $1.7 million to fund the accelerated global adoption of the Bitcoin Lightning Network. The latest funding brought in a total funding of $2 million to date for the project.

Bithumb To Launch Decentralized Exchange; Binance Invests In TravelByBit

South Korean cryptocurrency exchange Bithumb teamed up with ONEROOT, a blockchain project, to build distributed decentralized exchange. Under ONEROOT's "Rocket Plan", which was launched in early September, both companies formally signed a cooperation agreement for Bithumb to access the R1 protocol, developed by ONEROOT. Cryptocurrency exchange Binance made a $2.5 million or A$3.48 million investment in TravelbyBit, an Australian cryptocurrency startup in the travel industry, for the expansion of its network of cryptocurrency payment terminals around the world. The companies plan a point-of-sale or POS payment system based on blockchain technology for major airports.

TD Ameritrade Invests In ErisX; Gemini Secures Insurance Coverage For Crypto Assets

US brokerage TD Ameritrade made a strategic investment in a regulated derivatives exchange and clearing organization ErisX in a bid to provide its retail clients access to trading in digital currency products. The firm was also one of the first brokerages last year to offer access to Bitcoin futures contracts for approved clients. Gemini, a cryptocurrency exchange and custodian owned by internet entrepreneur twins Cameron and Tyler Winklevoss, has secured insurance coverage for digital assets held on behalf of clients in their online hot wallet. The insurance coverage is provided by a global consortium of industry-leading insurers and arranged by professional services firm Aon, which provides risk, retirement and health solutions.

WSJ: Cryptocurrency Trading Bots Manipulate Bitcoin Price

Automated trading programs, or bots, that manipulate cryptocurrency prices are rampant across the market, the Wall Street Journal reported. These bots allow traders to set the entry level and exit level for trade, following which it will place orders at an exchange and execute them at great speed. Such tools are not in the interest for the cryptocurrency market as these can be exploited to artificially create a spike in the cryptocurrency prices or deflate them. Regulators are also closely watching the market to identify such automated trading.

SBI Ripple Asia Launches Blockchain Money Transfer App 'Money Tap'

Japan's SBI Holdings unit SBI Ripple Asia launched a blockchain money transfer application on smartphone, called 'Money Tap'. SBI Ripple Asia was granted permission to launch the app after it completed registration with Japan's Ministry of Finance as a licensed agent for handling electronic payments.

Air France-KLM Teams With Winding Tree For Blockchain-based Travel Solutions

European airline Air France-KLM announced its partnership with Winding Tree, a blockchain-based open-source travel platform, to develop Blockchain technology in the travel industry, aiming to help flyers and suppliers. Through blockchain, a transparent, secure information storage and transmission technology, Air France-KLM expects to provide a more advantageous travel offer for customers which is more profitable for suppliers, mainly by reducing the number of intermediaries.

US Legislators' Bill To Establish Common Definition Of Blockchain

U.S. Representatives Doris Matsui and Brett Guthrie have introduced a bill aiming to establish a common definition of blockchain technology. According to an announcement on Matsui's website, the bill titled "Blockchain Promotion Act of 2018" has been proposed for the establishment of a working group of stakeholders across the federal government and private industry to find the digital technology's definition.

Current Prices

As of 10.43 am ET on Friday, Bitcoin was down 1.02 percent for the week at $6,544.29 and Ethereum was lower by 0.45 percent at $222.58 on Coinbase.

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