Tuesday, July 27, 2021

    Latest Posts

    Bitcoin continues to fall and approaches a risky floor

    Yesterday the crypto world took a hit after Binance it lost authorization to carry out activities in Italy, joining the series of global regulatory movements.

    Binance Group companies are not authorized to provide investment services and activities in Italy, even though sections of their website offer information in Italian, Consob said in a statement.

    “Savers are invited to use their utmost diligence to make their investment decisions in full awareness, verifying in advance that the websites through which they make the investment can be attributed to authorized subjects,” he said.

    Binance’s spokesman said its website does not operate outside of Italy and that Consob’s notice had no direct impact on its services.

    “We have a collaborative approach when working with regulators and we take our compliance obligations very seriously,” he added.

    Scrutiny of the cryptocurrency sector is growing around the world, and regulators are concerned about consumer protection and the use of digital currencies for money laundering and other criminal activities.

    Last month, Britain’s financial watch body banned Binance, one of the world’s largest platforms, from carrying out regulated activities in the UK.

    Regulators in Thailand, Japan, Germany and the United States have also taken action with the platform.

    On the other hand, bitcoin’s trading volume plummeted in recent weeks and unlike others, there are analysts who argue that this marks that the only way “is upwards”.

    For analyst Nunyaz Bizniz, there are a number of technical factors that converge to support the $30,000 as the central level. Its psychological importance is compounded by being a round number, and as others have pointed out, it fits into a longer-term trend line that places $64,500 as a kind of mini race to an impressive top.

    The importance of the price of Bitcoin not falling below $30,000 and not regaining the level compounds the anxiety about a further fall in the price of BTC.

    Amid the unease, some voices warn that what is at stake is the desire to interpret events to drive one’s narrative, upside or bearish.

    Bitcoin itself, on the other hand, is not as weak as the price suggests, as confirmed by the fundamentals.

    “Regardless of your risk appetite, strategy is now key, so as not to miss the next wave in this current Bitcoin supercycle,” Stack Funds concluded in its latest report released Thursday.

    According to a projection by Ecoinometrics, published by Cointelegraph, Bitcoin holders are accumulating a large amount of assets, which anticipates a sharp rise.

    “Apparently, $30,000 is a key level that stopped the trend of coin accumulation by whales.”, ecoinmetrics commented.

    The reason why the selling pressure was finally imposed could lie in the whales’ feeling that Bitcoin was gaining “too much, too soon” and that, therefore, the market was considered unsustainable.

    Now that the $30,000 level is back, cold feet are nowhere to be found: investors, both large and small, are buying back.

    “Whales and small fish have started to accumulate again, while other categories have become neutral”, the conclusions continue.

    Transactions on Coinbase, Kraken, Binance and Bitstamp, fell more than 40% in June, according to data from cryptocurrency market data provider CryptoCompare, which cites lower prices and lower volatility as the reasons for the drop.

    Glassnode’s July 12 Week On-Chain report notes that Bitcoin reserves on centralized exchanges fell to levels not seen since April, when Satoshi Nakamoto’s creation reached an all-time high of approximately $65,000.

    The researchers point out that during the uptrem that led to this peak, the relentless depletion of coin reserves in the ‘cryptobolsas’ was a key issue. Glassnode concludes that much of these assets went to the Grayscale Trust or were accumulated by institutions, driving “a persistent net outflow from trade”.

    However, when Bitcoin prices plummeted in May, this trend was reversed when the coins were sent to exchanges for settlement. Now, the net volume of transfers has returned to negative territory as outflows increase.

    The market now expects the liquidation of grayscale fund shares as one of the events that may move the market, in the coming days 40,000 bitcoins will be put into circulation.

    This week, Bitcoin had dodged china’s blow following a new operation against cryptocurrencies. But then he couldn’t with the FED and the dollar.

    Galaxy Digital billionaire investor and CEO Mike Novogratz noted that China’s war against Bitcoin and major cryptocurrencies could have positive effects on the ecosystem, especially within the US where the local community would be taking advantage of market fluctuations.

    Likewise, it considers that the crypto world is today also the scene of the trade war between China and the US. “What we’re seeing is That Asia sells it and then the United States buys it back. China has declared war on cryptocurrencies as part of this broader cold war that we’re getting into, so I think we’re still assimilating it,” he opined.


    The People’s Bank of China (PBOC) announced that it had called for the closure of a company that was “suspected of providing software services for virtual currency transactions” and reiterated its anti-cryptographic stance, warning institutions against providing services to companies related to the cryptocurrencies.

    Bitcoin and the remnants of cryptocurrencies had been indifferent. However, after the publication of the minutes of the US Federal Reserve and the strengthening of the dollar in the world, the quotes took a turn.

    The document confirmed the reducing your asset purchases and economists polled by Reuters expect the Fed to announce a tapering strategy in August or September.

    Now the market is starting to look more closely at other cryptocurrencies, especially the Ethereum. In fact, a goldman sachs report predicts that it could outperform Bitcoin.

    “Ether currently seems to be the cryptocurrency with the greatest potential for real use since Ethereum, the platform from which the digital currency is native, is the most popular development platform for smart contract applications“, says the report.

    Latest Posts

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.