1. Crypto Long & Short: When China Spoke, Bitcoin Reacted. America? Not So Much
It could just be that the U.S. is not the center of the crypto universe.
Governments can’t stop cryptocurrencies, but they can make it much harder to access them. So it would make sense that unfriendly government policies in the world’s largest economies would play a role in driving down the price of bitcoin (BTC, +1.48%).
As a case in point, in the few days after China reiterated its crypto crackdown in May, bitcoin at one point plunged by as much as 30%. The drop was another reminder that when China speaks, the market listens.
The U.S., it seems, not so much.
This month, a highly controversial crypto tax provision in the $1 trillion infrastructure bill passed through the Senate, despite ardent attempts to amend it. Crypto advocates claimed that the provision would make it impossible for miners, software developers and other crypto-related actors to comply with U.S. tax regulations, thus threatening to drive much of the industry overseas. This would seem to be a pretty bearish sign.
But it wasn’t, at least over the short term.
In the few days that followed the advancement of the bill, bitcoin shot up by as much as nearly 7%. In fact, shortly following the drama in Washington the entire crypto market reached a market cap of $2 trillion, a height not seen since May.
This week, the provision will move to the House, where the language may or may not change. It remains to be seen whether the market responds to what happens in Washington.
Why did bitcoin seem to react so differently to the U.S. compared with China? As with anything bitcoin price-related, it’s impossible to say for sure, and there are many other factors that affect prices. But here are some of the more plausible theories.
2. PayPal Brings Crypto Service to UK Customers
Rollout of PayPal’s first expansion of its crypto offering outside the U.S. will begin this week.
PayPal is extending its crypto service to the U.K., allowing customers to buy, sell and hold four different cryptocurrencies on its platform.
Users will be able transact in bitcoin (BTC, +1.55%), ether (ETH, +0.55%), litecoin (LTC, +2.38%) and bitcoin cash (BCH, -0.48%) for as little as £1 ($1.40), PayPal said.
The rollout is the first expansion of PayPal’s crypto offering outside the U.S.
The process will begin this week and should be available to all eligible customers within the next few weeks.
Customers must have verified their identity in order to be eligible. PayPal business accounts will not be supported.
PayPal introduced crypto buying, selling and holding to U.S. customers last October, a move closely followed by bitcoin attaining new highs for 2020 and one of the sparks that ignited the subsequent crypto bull market.
The company has not yet allowed users to move crypto holdings off-platform, though this stance may change. Jose Fernandez da Ponte, vice president of blockchain, crypto and digital currencies, said at Consensus 2021 in May that a withdrawal function is in the works.
3. Taiwan’s XREX Blockchain Firm Raises $17M in Funding Round Led by CDIB Capital
Funding will go toward expanding the firm’s fiat currency portfolio, acquiring additional licenses, and furthering partnerships.
XREX Inc., a Taiwanese blockchain TradeTech firm, has closed a $17 million funding round led by investment firm CDIB Capital Group (CCG) and several big-name investors.
The pre-Series A round was oversubscribed by 200%, according to a press release shared with us on Monday. Asked why XREX decided to run its round via a pre-series A, Wayne Huang, co-founder and CEO of XREX, told us on Sunday they felt they hadn’t raised enough revenue.
“Originally we were targeting only $5 million to $8 million, which would give us enough of a buffer to cushion any covid-caused uncertainty and to have enough revenue to do a Series A,” said Huang. “But traction continued to grow, and investors were very supportive, so we became oversubscribed and decided to increase the round size.”
4. Top 5 cryptocurrencies to watch this week: BTC, ADA, AVAX, CAKE, ATOM
Bitcoin price continues to encounter resistance at the $50,000 level, but the rounding bottom pattern seen in most altcoins is a signal that traders intend to push prices higher.
Bitcoin (BTC) is knocking at the doors of the key $50,000 level and most traders are still optimistic even after the digital asset rallied 70% from the July 20 low at $29,278 to an intraday high at $49,757.04 on Aug. 21.
Monitoring resource Material Indicators pointed to a lot of puts at the $50,000 strike price and the “positive funding almost across the board (overheated),” which suggests a rejection at the current levels and a “pullback going into September.”
Nikita Ovchinnik, chief business development officer of 1inch Network said that several new institutional investors had taken exposure to crypto in the past year, and that “they didn’t come for short-term gains.”
Another positive sign for the crypto sector is the ever-growing list of unicorns. Analysts expect more companies to join the list as the adoption of crypto and blockchain increases.
Bitcoin’s hesitation near the $50,000 mark may shift focus to altcoins? Let’s study the charts of the top-5 cryptocurrencies that are likely to attract traders’ attention in the short term.
5. Bitcoin prepares for $50K showdown as futures traders turn ‘modestly bearish’ on BTC
The market is clear for an attack on $50,000 resistance but not everyone is betting on further upside, data shows.
Bitcoin (BTC) edged closer to $50,000 on Aug. 22 as concerns over a bearish downturn made a timely reappearance.
“Modestly bearish” signs accompany $50,000 run-up
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting a high of $49,830 on Bitstamp Sunday — itself a three-month record.
The weekend had proven the staying power of higher levels, with even lower volumes failing to spark a comedown.
“So far, so good for BTC,” trader and analyst Rekt Capital summarized.
Nonetheless, as $50,000 loomed, concerns began to mount about the overall strength of the market.
As noted by monitoring resource Material Indicators, trader habits were hinting at belief in lower levels returning. One futures setup involved $32,000 and $34,000 for the August and September end-of-month settlements respectively.
This, the account argued, was “modestly bearish.”
“In addition, we still have a lot of 50k puts, suggesting we get rejected here,” it added, also highlighting the “overhepositive funding rates across trading platforms.
Such a perspective naturally grates with the overall consensus among analysts, notably with the stock-to-flow models and their creator’s “worst case scenario” for minimum prices each month.
For August, this stands at $47,000, while September’s $43,000 expectation is only lower for technical reasons, PlanB explained this week.
ZBG.com has quickly become one of the top 10 exchanges in the world with its innovative, efficient and global operations, and is known as a “New First-Tier” exchange.
Currently, ZBG supports 11 languages, with an average daily activity of more than 160,000, providing over 3 million users around the world with trustworthy cryptocurrency trading, contract trading and other crypto asset investment services.
In the future, ZBG will continue to expand its global market and provide stable, safe and fast blockchain project listing, diversified crypto assets and blockchain derivatives investment services to more blockchain enthusiasts around the world.
ZBG, World’s top 10 crypto currency exchange.
Link to future value!
August 23, 2021