Crypto Guides, Knowledge & Insights

JP Morgan Sees El Salvador Bitcoin Experiment As Problematic

Analysts at JP Morgan say that the recent Bitcoin crash wasnt because of El Salvador making Bitcoin legal tender in the country. In their view, it was more about too much froth in the market. They also said that Bitcoin is unlikely to upstage the dollar.　　An article published by Business Insider today looked at the El Salvador launching of Bitcoin, as a duel national currency alongside the US dollar. According to the article, the roll-out was greeted with “protests”, and “technological difficulties”.　　The JP Morgan analysts called the roll-out a “rushed mandate”, no doubt referring to President Bukeles eagerness for his country to adopt the number one cryptocurrency. The analysts said:　　“El Salvadors ill-conceived experiment should not be critical for the future of bitcoin or cryptocurrencies. Crypto markets suffered from El Salvadors glitches this week, but that was from a frothy backdrop,”　　This kind of statement is par for the course for any traditional banking entity and the biggest bank in the US is certainly no exception.　　The analysts then went on to explain how Bitcoin had absolutely no chance when put up against the dollar, as always referring to Bitcoins high volatility as a reason for its unsuitability.　　“Few goods or services are priced

2021-09-10Deep Dive

Mastercard Acquires CipherTrace, Moves To Integrate Digital Asset Analytics

CipherTrace, a crypto analytics and intelligence firm, has been acquired by Mastercard, a digital payments technology firm. The acquisition aims at bolstering transparency and support for the global crypto ecosystem, as well the emergence of a new digital economy.　　CipherTrace‘s blockchain analytics and intelligence services provide a link between virtual currencies such as crypto assets to traditional financial services. The platform resolves difficulties in the space by providing fraud protection, anti-money laundering and financial investigation solutions. CipherTrace’s blockchain threat intelligence solutions would allow firms like Mastercard to conduct tracking and deanonymization of transactions recorded on blockchains.　　“We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe. Our two companies share this vision to provide security and trust throughout the ecosystem. We are thrilled to join the Mastercard family to scale CipherTraces reach across the globe.” shared CipherTrace CEO Dave Jevans.　　The acquisition by Mastercard would see the two firms launching an “integrated offering” for enterprise clientele that seeks to leverage their expertise and provide insight into risks and compliance frameworks for digital assets.　　“Digital assets have the potential to reimagine commerce, from everyday acts like paying and getting paid to transforming economies,

2021-09-10Deep Dive

Another buy chance or end of bull market?

What happened to Bitcoin？　　Bitcoin became an official currency in Salvador. The Bitcoin Law (Spanish: Ley Bitcoin) was passed by the Legislative Assembly of El Salvador on June 8, 2021, giving the cryptocurrency bitcoin the status of legal tender within El Salvador after September 7, 2021.　　El Salvador bought its first 400 bitcoins on Monday, which was equal to $20 million. President Nayib Bukele pledged to buy “a lot more” ahead of adopting the cryptocurrency as legal tender.　　Members of the highly famous Reddit forum called for a $30 worth of Bitcoin purchase to support Salvadors presidents decision.　　But as the famous proverb says: “buy the rumors, sell the news”. Bitcoin dropped from $52 000 to $43 000 in three hours and many positions got liquidated.Technical analysis for BTC　　In this article we will look at the Bitcoin logarithmic and Bitcoin domination charts, discuss the Bitcoin rainbow theory and look at the usual chart to predict an upcoming price movement.　　The first thing you need to do to become a successful trader is to defy the market trend. Lets start with it!Bitcoin logarithmic monthly chart　　Bitcoin logarithmic chart is used by crypto traders to define a potential trade reversal. As you can see, the RSI oscillator didnt

2021-09-09Deep Dive

Bitcoin Prices Just Got A Beating, But A Crypto Insider Predicts It Will Hit $160,000

Celsius Network Chief Executive Officer Alex Mashinsky, considered a veteran crypto industry insider, remains optimistic about bitcoin prices despite the massive correction the cryptocurrency has had to deal with for the past days.　　Almost a week ago, bitcoin climbed all the way to the $51,000 mark. But since then, it has been on a downtrend, even losing 10% of its value on Wednesday.　　According to tracking from CoinGecko on Thursday, the crypto is now changing hands at $46,362, gradually trimming its losses for the past week which now stands at 5.1%.　　Despite all of these, Mashinsky remains optimistic about the future of bitcoin.　　Speaking on Yahoo Finance Live, the Celsius Network CEO said that if there is enough volume from new buyers, it will be possible to retest the $53K to $55K levels.　　Not only that, he also said that he is still holding on to his projection that the asset will hit the $140K to $160K price range although it might happen by the first quarter of next year because of sudden flash crashes as well as clean-up with the Chinese miners.　　The steep fall of bitcoin prices on Wednesday was seen as a side effect of the botched rollout of the asset as legal

2021-09-09Deep Dive

What Happens Now That Tesla Won’t Accept Bitcoin Payments Anymore?

Earlier this month, Tesla shocked the crypto world when it announced that it would pause on accepting Bitcoin. In a tweet shared by CEO ElonMusk, the company explained that it had made the decision in wake over Bitcoins energy implications.　　Tesla had begun accepting Bitcoin payments back in February. When the company made its formal announcement, it claimed that it had invested $1.5 billion in Bitcoin as a speculative investment as it hoped to diversify its portfolio and maximize its returns. At the same time, Bitcoin-owning customers would be able to use the asset to make payments.　　Now, Tesla is singing a different tune. While the company confirmed that its Bitcoin investment remains, it just won‘t be accepting payments in the asset anymore. Bitcoin mining and transaction processing are notorious for being energy-dependent, and while Tesla believes that the asset has a bright future, it claims that this shouldn’t necessarily come at the expense of the environment.　　Tesla Sends Bitcoin Crashing 　　Whether wittingly or not, Tesla‘s tweet began a wave of market dumps that has left the crypto market in tatters. There was a massive selloff that came following the company’s tweet, with many seeing it as a sign that Tesla had closed

2021-09-09Deep Dive

Crypto Mentioned by European Watchdogs Amidst Top Risks: Report Released

The most influential European financial watchdogs—European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA)—stated that the risks of crypto market volatility are similar to those of the Gamestop and Archegos dramas.　　Rising prices, rising volumes, rising risks　　Sept. 8, 2021, a new report was released by European Supervisory Authorities. In a document dubbed “Joint Committee Report on Risks and Vulnerabilities in the EU Financial System,” the most dangerous threats to financial stability have been clarified.　　The regulators stressed that banking institutions should be prepared for the increasing volatility of all markets, possible deterioration of asset quality and the growing risk of credit losses.　　Also, in terms of the retail investing segment, rising valuations for new asset types, massive price swings in crypto assets and event-driven risks (like the Gamestop mania) pose huge threats to the financial system.　　As covered by U.Today previously, in January 2021, traders from Reddit pumped a number of penny stocks, including Gamestop (GME) and AMC Entertainment Holdings (AMC). Many high-profile asset management funds saw their positions liquidated.　　Manias should be monitored closely: Regulator　　Authorities should closely monitor the processes of “yield increases” in terms of their impact on both financial institutions and retail investors.　　Also,

2021-09-09Deep Dive

QCP Capital Says ‘Regulatory Catalysts’ in US are Driving Crypto Volatility

Dark regulatory clouds hanging over the US in the form of the SEC‘s delays in approving a bitcoin ETF, and their harsh words for the concept itself, as well as threats to sue Coinbase should it launch its lending suite have “taken the steam out of the ’frenzied crypto rally” according to a Wednesday note published by QCP Capital.　　The Singapore-based crypto fund called the recent rally, which brought the price of bitcoin past the psychological $50,000 mark, “frenzied” because “retail was going leveraged all-in on the alts, pushing some of the major alts perp funding levels through the roof.” QCP also said that there was a sense that this rally was too big to fail “evidenced by the pushback that we received on our short call views from last week.”　　Despite numerous successful bitcoin ETFs in Ontario, the SEC continues to push back against approving a US-based bitcoin ETF. The most recent comments from SEC chair Gary Gensler have pointed toward the commission preferring a futures-based bitcoin ETF over a spot ETF.　　All this, according to QCP Capital, shows how much the market had been pricing in an approval with some believing that it would be approved in October.　　“Going forward it is

2021-09-09Deep Dive

Why Bitcoin Price At Risk of A Fresh Drop To $42K

Bitcoin price corrected gains and moved above $45,000 against the US Dollar. BTC is now struggling to surpass $47,000 and it could start another decline.　　Bitcoin is facing a major resistance near $47,500 and $48,000 levels.　　The price is now trading well below $48,000 and the 100 hourly simple moving average.　　There is a key bearish trend line forming with resistance near $47,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).　　The pair could start a fresh decline as long as it is trading below the $48,000 pivot level.Bitcoin Price Faces Hurdles　　Bitcoin price declined heavily towards $42,000 before it started a recovery. BTC was able to recover above the $43,500 and $45,000 resistance levels.　　The price even climbed above the 23.6% Fib retracement level of the main decline from the $52,800 swing high to $42,000 swing low. The bulls even pushed the price above the $46,000 level. However, they faced sellers near the $47,450 level.　　It seems like the 50% Fib retracement level of the main decline from the $52,800 swing high to $42,000 swing low acted as a resistance. There is also a key bearish trend line forming with resistance near $47,000 on the hourly chart of the BTC/USD pair.　　The pair

2021-09-09Deep Dive

Jejak Langkah El-Salvador Bakal Jadi Ikutan?

Secara umumnya beliau berpendapat bahawa El-Salvador telah mengambil langkah yang berani dan memecahkan tradisi. Hal ini dijangka akan mendorong lebih banyak negara untuk mengikuti jejak langkah ini.　　Dalam video beliau baru-baru ini, Charles Hoskinson, pengasas Cardano, mengucapkan tahniah kepada seluruh rakyat El-Savador atas penerimaan Bitcoin sebagai tender sah di El Salvador. Beliau mengatakan bahawa pada awalnya komuniti kripto hanyalah satu komuniti kecil dan tidak banyak pihak memandang serius potensi kripto. Waktu demi waktu, lebih ramai yang mula cakna dan mengakui potensi blockchain.　　Justeru apa yang dilakukan El-Salvador adalah satu pencapaian yang luar biasa dan ini hanyalah permulaan. Lanjut beliau, komuniti kripto akan melihat lebih banyak pencapaian baru akan terhasil pada masa akan dtang.　　Pada tahun-tahun mendatang, lebih banyak negara-negara akan memasukkan kripto sebahagian daripada mekanisme dasar monetari iaitu dengan bank pusat mula mengaplikasnya dalam ekonomi atau mengikut jejak langkah El-Salvador.

2021-09-09Deep Dive

OpenSea’s Transaction Volumes on Sharp Decline, Is NFT Popularity on A Decline?

OpenSea, the Ethereum-based largest NFT marketplace is seeing a sharp decline in the daily transaction volumes on the platform. On Wednesday, September 8, the daily transaction volume on OpenSea was less than $100 million for the first time since August 21.　　Also, comparing it to the peak of August 29, the daily transaction volumes have dropped by a staggering 75% in just 10 days.　　Courtesy: OpenSea　　 Is the NFT Popularity on A Decline？　　The last month of august was phenomenal for the overall NFT market. the monthly trading volumes on OpenSea shot up to a staggering $3 billion. Furthermore, crypto-journalist Colin Wu reports that some of the top trading NFTs like Loot, CryptoPunks, and Bored Ape have dropped by nearly 100% in the last 24 hours suggesting strong declining trends. Wu reports:　　“NFT popularity is decreasing. OpenSea shows that in the past 24h, Loot transaction volume -45.69%, CryptoPunks -90.81%, Bored Ape -14.58%. The floor price of CryptoPunks has fallen to 86.5 ETH, which was higher than 140 ETH before”.　　These are still the early trends and we have yet to see how the market moves going ahead.　　OpenSea Bugs Destroys NFTs Worth $100K　　A recent bug encountered on OpenSea has accidentally destroyed approximately 42 NFT worth $100,000.

2021-09-09Deep Dive

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