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Editor's Note: Right now, something unusual is taking place in the crypto market. Our colleague Teeka Tiwari believes it’ll mint millionaires in 2020. Whether he’s right or not, one thing is guaranteed: What’s happening in crypto won’t happen again until 2024. Click here to learn more during tonight's event.

 MUST READS 

First, Some Postive Crypto News...


If you want to take your mind off the market turmoil and focus on somewhat positive Bitcoin-related content, look no further...
  • Coinbase started offering the long-awaited “Bitcoin transaction batching”
    The company said the feature will lower network fees for users and free up space on the Bitcoin blockchain. “This enables the network to increase transaction throughput, and helps to increase scalability,” the company said in a blog.
     
  • Bakkt announces another massive funding round
    The Series B funding round from a group of high profile investors and venture capital firms amounted to a cool $300 million. Their next big project is a crypto consumer mobile app and they plan on launching it this summer.
     
  • Coinbase Card Users Can Now Make Crypto-Backed Payments With Google Pay
    The exchange announced yesterday that Coinbase Cards can now be added to users' Google Pay wallets, enabling crypto-backed payments from Google Pay-enabled devices, such as phones or smartwatches for the first time.
     

Derivatives Market Liquidations Boosts BitMEX, Hurts Deribit


Crypto derivatives markets have seen significant liquidations this week - pushing BitMEX’s insurance fund to all-time high, and cutting Deribit’s by almost half.

Here's how it works:

The two crypto derivatives exchanges both have insurance funds to pay out the winning party of a trade when its gains cannot be fully covered by the liquidated side.

While Deribit grows its insurance fund by charging fees on executing liquidation orders, BitMEX's fund increases when liquidations are "executed at a price better than the bankruptcy price." This means that when traders are liquidated before hitting the theoretical maximum of their positions, the fund pockets the difference between the two positions.

As a result, BitMEX's insurance fund balance has surged. Deribit, on the other hand, had to support the insurance fund by injecting 500 BTC of company funds in order to prevent socialized losses.

While these exchanges both have solid plans in place to ensure liquidity... it's a good time to remind everyone here that if it's not your keys, it's not your Bitcoin. In times of high volatility storing your Bitcoin with custodians becomes more risky than usual. Learn how to safely self custody your wealth.
 

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 DEEP DIVE 

Bitcoin Waits in the Brush


Stocks, oil, and (paper claims on) gold are dumping across the board. Even after the circuit breakers were triggered. Even Bitcoin has been swept up in the storm as people panic run to the sidelines for cash and as volatility takes over the markets causing a cascade of margin calls for short-term traders who were overextended.

But regardless, Bitcoin continues to consistently produce blocks and enable peer-to-peer transfers for those who have access to the software. The Perfect Storm is upon us. This is the type of environment in which Bitcoin was birthed. This is why Bitcoin exists.
 

Data Shows Cryptoasset Sell-off Was Driven by Short-Term Holders


Many crypto analysts predicted that the recent BTC selloff was mainly driven by new market participants and institutions fleeing to cash...

Well, the latest CoinMetrics letter digs into data with evidence that this is in fact the case.

Long story short: During the recent sell-off, it wasn't old coins being sold.

Other interesting snippets from the report:
  • The correlation between BTC and the S&P 500 soared to a new all-time high of 0.52. The previous all-time high was 0.32. This suggests cryptoasset markets are becoming more intertwined with existing markets.
     
  • BTC prices have been super reactive to key events such as President Trump’s announcement of a 30-day travel ban, as well as the FEDs announcement that interest rates would be cut. See chart here.
     
  • Long term holders appear unfazed in spite of the severe market downturn.
     
  • For only the 4th time in history, BTC market value to realized value (MVRV) dropped below 1.0. An MVRV below 1.0 can signal that holders have (or had) a higher market valuation than current speculators.
     
  • In hindsight, the past periods where MVRV dropped below 1.0 have been the best times to accumulate BTC at a relatively discounted price. 🚀 🚀
     

Bitcoin – An Institutional Crypto Review


Writing for Capitalist Exploits, Jon de Wet of ZeroCap, delivered a monster report earlier this week breaking down his latest TA (technical-analysis), why he's very bullish on the USD & Bitcoin, futures arbitrage and more.

In short: There's a lot of uncertainty, but with this comes great opportunity.
 

We May See Unemployment Numbers That Match The Great Depression By The End of 2020


This is a deep dive into the data that suggests many investors are drastically underestimating the gravity of the financial crisis we are entering.
 

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This plan has been around for over 50 years and right now, anyone can position themselves to start taking advantage of massive returns by as early as March 19th.

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 REGULATORY FRONT 

Rhode Island Bets On Blockchain Growth To Drive Economic Policy


Two representatives of Rhode Island’s General Assembly introduced a bill last week called the Rhode Island Economic Growth Blockchain Act.

The legislation calls for the importance of developing Rhode Island’s economy, ensuring its regulations are friendly to blockchain innovators, and a comprehensive regulatory technology sandbox.

 

The Case for Bitcoin Privacy and Fungibility


On February 13, 2020, Larry Harmon, of Akron, Ohio, was charged with three counts:
  1. conspiracy to commit money laundering
  2. operating an unlicensed money transmitting business
  3. and conducting money transmission without a DC license
According to the DOJ, Harmon operated “Helix,” which was also known as a “tumbler” or “mixer,” without registering as a money services business or money transmitter. These technologies allow a user to obfuscate the origin of their Bitcoin.

After breaking down the charges against Larry Harmon, legal experts Sasha Hodder and Rafael Yakobi examine the case for Bitcoin privacy and fungibility.

 

 TWEET OF THE WEEK 

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