In brief
- Crypto markets upbeat as Bitcoin continues its strong performance.
- Investors in Filecoin watch on as the network is rocked by reports of revolt.
- Stock markets went through a big sell off as confidence over a stimulus package remains low.
It was a particularly good day across the crypto markets. Total market cap is up a healthy 2.3% taking it over $372 billion. Bitcoin lead the charge with a 3.4% gain, with Monero following with 3.4% rises, Stellar’s continued bull run saw it rise 5.3% in the last day and XRP is also up 3.17%.
What’s got HODLers in such a good mood? It’s difficult to tell, but one theory has to do with Bitcoin’s performance as an asset that doesn’t behave in the same way stocks and or gold does.

Bitcoin Price Heads Toward $12,000 as Stocks Drop
Bitcoin is often regarded, whether deserved or not, as a “safe haven asset”—a hedge against economic uncertainty. That narrative is being put to the test now as the world faces an unprecedented financial crisis as a result of the coronavirus pandemic. At the moment, proponents of this narrative are being bolstered: the price of Bitcoin is on the rise, heading toward $12,000 for the first time in two months, just as stocks are plummeting following statements of concern from the International Mone...
While the likes of the S&P and the Dow Jones finished yesterday in the red, as did gold, Bitcoin is trending the other way. “This signals to investors that there is an asset that seems to be more resilient to geopolitical fluctuations like Brexit and the US General Election. It's made it an attractive proposition,” says a spokesperson from AAX, the world’s first digital asset exchange powered by the London Stock Exchange.
When paired with Bitcoin’s declining volatility, it could be the reason why Bitcoin is having such a good month. Analysts appear to agree.

Bitcoin Has Spent Only Three Months Above Its Current Price
Bitcoin’s (BTC) price is at more than $11,500 and rising—a good day for the bellwether cryptocurrency. In fact, today is one of just 93 such days in the coin’s entire history, according to crypto analytics firm Skew. #bitcoin has only spent 93 days, three months, since start above current price of $11.5k pic.twitter.com/RY09gJYzEl — skew (@skewdotcom) October 19, 2020 “Bitcoin has only spent 93 days, three months, since start above current price of $11.5k,” the researchers noted today. This me...
According to Skew data, Bitcoin has only spent 93 days above $11,500 in its entire history. When Bitcoin has been above this point volatility has been high, but with volatility hovering around 1.5%, this is a strong signal that the currency has found a home above $10,000 and is likely to stay there, says the firm. We’ll wait and see.
While HODLers have been rejoicing, Larry Dean Harmon is repenting. Harmon, the creator of Helix and Coin Ninja, two Bitcoin mixing services has been fined $60 million by the Financial Crimes Enforcement Network (FinCEN).

FinCEN Fines Bitcoin Mixer Operator $60 Million
The Financial Crimes Enforcement Network (FinCEN) has levied its first-ever financial penalty against a Bitcoin mixer. FinCEN, the US Treasury Department's bureau focused on money laundering and national security, slapped Larry Dean Harmon, the creator and operator of Helix and Coin Ninja, with a $60 million civil money penalty. Harmon is already facing criminal money laundering charges by allegedly helping obscure the source of over $300 million in Bitcoin for AlphaBay darknet patrons from 2014...
While the US Department of Justice has been suggesting mixers are illegal-as they create a way of concealing illegal activity-FinCEN says mixers are fine as long as they’re registered with the regulatory body. Harmon allegedly didn’t do that.
Harmon is already facing criminal money laundering charges for allegedly helping obscure the source of over $300 million in Bitcoin for AlphaBay darknet patrons from 2014 to 2017.
Filecoin has also had a tough time of late. While the network launched to much fanfare last week, this week allegations of a miners’ revolt have lead to a 25% loss of value of the network’s token.

Filecoin Categorically Denies Any 'Mining Crisis'
Decentralized storage network Filecoin launched last week, amid much excitement. But less than 24 hours later, reports surfaced of miner unrest, and Filecoin’s token, FIL, has since plummeted 25%. The much-anticipated project presents an alternative to centralized storage providers such as AWS. But Chinese crypto site 8btc has claimed that five of the largest mining pools have thrown in the towel since Filecoin launched on Thursday, and there’s talk of them potentially forking the network. Crit...
Filecoin issued a rebuttal yesterday, walking through each allegation in turn, especially the rumour miners have been quitting in droves. Whatever side of the fence you’re on, we’ll keep you covered for this one.
Stocks feeling the FUD
Stock markets have had a similarly mixed start to the week. A big sell-off on US markets took place on Monday as negotiations around America’s long-awaited stimulus bill failed to make progress.
While Nancy Pelosi has set a Tuesday deadline for talks to make headway, confidence is low. Short sellers have been adding to the FUD as earnings season continues to disappoint investors.
IBM was the latest company to post lacklustre earnings, with Procter & Gamble, Lockheed Martin, Netflix and Snap all due to report today.
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