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Breaking news in Crypto: Bitcoin and Altcoins.

Breaking news in Crypto: Bitcoin and Altcoins. WikiBit 2021-07-05 12:09

Expect Bitcoin greatest volatility this month of July ahead of Grayscale unlocking of stock shares worth 41852.26 BTC. Bitcoin Must Hold above the Support at 29k this month of July or we see a crash to $19,500. Thailand SEC files a Criminal case against Binance - the world leading Crypto exchange Market; as 'an Unregistered' operator amidst it's recent ban in UK, Japan, Germany and Ontario. SEC's commissioner - Hester Peirce accuses SEC of showing double standards towards approving the Bitcoin ETF proposals, says it ought to have been a reality.

Breaking news in Crypto: Bitcoin and Altcoins.

By: Damian Okonkwo

ABSTRACT:

Expect Bitcoin greatest volatility this month of July ahead of Grayscale unlocking of stock shares worth 41852.26 BTC.

Bitcoin Must Hold above the Support at 29k this month of July or we see a crash to $19,500.

Thailand SEC files a Criminal case against Binance - the world leading Crypto exchange Market; as 'an Unregistered' operator amidst it's recent ban in UK, Japan, Germany and Ontario.

SEC's commissioner - Hester Peirce accuses SEC of showing double standards towards approving the Bitcoin ETF proposals, says it ought to have been a reality.

1.0 Expect Bitcoin and Altcoins greatest volatility this month of July ahead of Grayscale unlocking of stock shares worth 41852.26 BTC.

This month of July will definitely experience the greatest volatility in the Crypto market especially Bitcoin as Grayscale investment sets to unlock stocks worth 41852.26 BTC. This will mark the largest single-day unlocking of the GBTC shares so far in its history with 16,000 Bitcoin to be released. Following the data on Bybit, “On July 18, GBTC stocks worth 41852.26 BTC shall be unlocked. This will be the largest single-day unlocking of the GBTC shares so far in history.”

Investors look forth with keen interest on the unlocking of the January Grayscale Bitcoin Fund (GBTC), scheduled ahead this month on July 18 and the impact this no doubt will exert on the market. Thus, we are more likely to experience the greatest liquidation in the market this month with the current volatility to pounce. This underscores the need for all traders to apply caution in their trading as to remain on the winning side of the market.

Market Analysis and Forecast based on this event:

Generally, all market analysts seem agreed that this unlocking will lead to a higher volatility in Bitcoin and Altcoins price this month. However, analysts are divided over the direction at which this will affect the market. This is to say that we have currently, mixed views about it. As it could fly so high or descend to the abyss.

Noteworthy, JP Morgan strategists remarked last month that the unlocking of GBTC shares can put further downward pressure on the price of Bitcoin (BTC). To this end, JP Morgan analysts have been overall bearish on the future price movement of BTC and expect its price to drop as low as $25,000 along with long-term accumulations kick-starting immediately at this point.

On the other hand, other crypto analysts have a counter view to this. These analysts believe that with this unlocking, investors won‘t be selling their shares at a discounted rate. This will help to narrow down the gap with the GBTC discount. And hence push up the price of Bitcoin to a new ATH. Remarkably, Cathie Wood’s ARK Investment purchased over 1 million additional GBTC shares last month. The firm now holds over 8 million GBTC shares in total. As of Friday, July 2 closing, the GBTC shares were trading at a price of $28.58 per share.

From a different perspective, investors definitely might choose to sell-off their Bitcoin investment holdings and push the money into other areas of investment. This will definitely exert the greatest selling pressure on Bitcoin and push it down towards 19,500 which is the nearest support aside 28900 which has held recently.Thus, with Covid-19 cases on the decline across the globe and vaccination rates in the U.S. rising, the economic outlook is improving. Bond yields are also trending higher, with the yield on the 10-year Treasury note rising from around 1% earlier this year to close to 1.70% currently. Considering this, investors are moving funds back to real-economy sectors, and its likely that non-productive assets such as Bitcoin will eventually be impacted.

2.0 Bitcoin Must Hold the Support at 29k this month of July or we see a crash to $19,500

Bitcoin prices have crashed from levels of around $64,000 in mid-April to just about $33,900 as of this new month of July. The crypto bear market that set in amidst the Bull-run this year when most traders least expected it, appears to be driven by a host of factors, including China‘s crackdown on Bitcoin trading and mining and Tesla’s unexpected reversal of its decision on accepting the digital currency as payment for its cars. More so, the U.S. Federal Reserve has turned increasingly harsh towards Bitcoin fueled by the desire to ensconce dollar supremacy above Crypto as resolved in its mid-June meeting which clearly pointed towards a determination to commence hiking interest rates from 2023, rather than 2024. This no doubt have been putting pressures on non-productive assets such as Crypto Currency. Ignited by these factors, investors seemingly have lost interest in Bitcoin and other Crypto currencies and tried to explore alternative sources of income and wealth preservation. The foregoing backdrops have sustained the bear market more than one could expect in the Bullish season. The Bulls have tried consistently to regain control but the market obviously lacked buying Volume as the buyers have lacked convictions to do so again. Just last month, Bitcoin retested again a new ATL at 28,900 after the first touch of 30k in May. This is a clear indication that the Lower low is now preferable to the Higher position which is evident by the inability of Bitcoin to break 42K since the first touch of the lower low at 30k.

Obviously, this month, a great volatility is set to come into the market with Grayscale set to unlock stocks worth 41852.26 Bitcoin and other forces coming into the market. This will definitely push the market according to the prevalent sentiments. As long as Bitcoin remains above the dominant support at 35K then the sentiment remains Bullish but any break below 30k will definitely wipe out the remaining confidence among Buyers as this would be the third time it will be testing that region. The remaining Buyers no doubt will exit at that point and we can see Bitcoin return to dust with the only possible support being 19,500. However, we remain optimistic that the 35K would hold, only as much as we see more positive news of Bitcoin adoption and acceptance both by Countries and big institutions. Otherwise the inevitable would set in soon.

3.0 Thailand SEC files a Criminal case against Binance - the world leading Crypto exchange Market; as 'an Unregistered' operator amidst it's recent ban in UK, Japan and Ontario.

Thailand's Security and Economic Commission (SEC) has on Friday, July 2, 2021; announced that it has filed a criminal complaint against Binance renowned to be the world leading Crypto exchange Market; for illegally running its digital assets exchange business in the country without an official registration and approval from the body.

According to the official release from the SEC following their investigation; it was found that Binance has over the years being providing crypto trading services “by matching orders or arranging for the counterparties or providing the system or facilitating entry into an agreement or match the order for persons who wish to trade or exchange digital assets”.

Thus, by this act the Thai SEC believed the crypto exchanges had invited the Thai public and investors to consistently use its services. The financial regulator revealed that it had issued a warning letter to Binance on 5th April 2021, but the exchange has failed to submit the response in the acceptable duration. As published via the press, the Thai SEC remarked that:

“The aforementioned activities of Binance is liable to operating digital asset business in the category of digital asset exchange without license, which is a violation of, or failure to comply with, Section 26 and is liable to criminal sanction under Section 66 of the Digital Asset Businesses Emergency Decree.”

In this case, the SEC noted that this can lead to imprisonment for two to five years along with a fine amount of 200,000 to 500,000 baht. Further, the financial regulator said that this criminal complaint will immediately initiate criminal proceedings and trials against Binance.

Nonetheless, the decision and power to adjudicate lies with the court. As the body must obtain a valid court order as to declare the activities of Binance within the country as a Criminal one.

Other Problems For Binance including Ban in UK, Japan, Germany and Ontario.

However, this criminal complaint against Binance is coming at a point when Binance is facing a seemingly global sanctions and bans. Just last week, the U.K Financial Conduct Authority (FCA) had issued a ban on Binance from conducting its operations within the country. Following this, several payment networks and banking companies operating in the U.K. limited the fund flow to the Binance exchange.

More so, last month, Country's Financial regulators from Japan, Ontario and Germany have all warned Binance on conducting its operations within the country without observing the due protocol of registering with the instituted financial regulators.

Equally, Singapore Financial regulator – Monetary Authority of Singapore (MAS) – noted that it will soon start the regulatory review for Binance as it faces major charges worldwide. At the same time, Cayman Island authorities also initiated an investigation into the crypto exchange.

Outstanding response from Binance to these charges.

However, Binance has been resilient in answering to these challenges. Following the ban in UK, Binance immediately proceeded to launch a new Binance.Uk registered under the FCA.

According to Binance official release, “We are excited to share the upcoming launch of Binance.UK, a new digital and crypto asset marketplace for buying and trading cryptocurrencies with British Pounds (GBP) and Euros (EUR), coming this summer. Designed for U.K. retail and institutional investors alike, including crypto novices.”

Further they explained that this Binance.UK will also serve European customers and will be operated by Binance Markets Limited.

This marketplace they explained will provide access to fast and easy deposits and withdrawals for the buying and selling of digital currencies through direct bank transfers via the UK Faster Payments Service (FPS) and Single Euro Payments Area (SEPA) network.

Equally they revealed that additional features will include fiat-to-cryptocurrency on-ramps via debit cards and options for customers to open their own virtual bank accounts, each with dedicated sort codes & account numbers, combined with some of the lowest fees in the market. “Verified users will be able to trade spot pairs with deep liquidity while leveraging Binance.coms advanced trading platform. Up to 65 digital assets are being considered to be available at launch.”

“The U.K. is a significant financial epicenter with London being the second-largest financial center in the world and the leading market for foreign exchange,” said Binance CEO Changpeng Zhao (CZ). “As part of our local market growth efforts around the world to bring more tangible financial access through the power of digital assets and its technology, the U.K. is at the forefront of spurring larger interest in the region and throughout Europe. We hope Binance.UK will serve as a stepping stone for the next generation of finance.”

Remarkably, this Binance.UK connects to the broader ecosystem of Binance while catering to the U.K. and European markets. Its localized approach and service also include active participation and engagement with local communities and governments to ensure a high industry standard and user-first model.

The Binance U.K. Director, Teana Baker-Taylor observed that the U.K.‘s pivotal role as a global fintech innovation leader has paved the way for disruptive technology to challenge traditional financial services. “We’re excited to become part of this vibrant ecosystem, aligned to our Binance mission of increasing the freedom of money globally, Binance.UK will enable U.K. and European customers to participate in the ever-growing crypto and digital assets market with greater confidence by accessing a crypto marketplace which is overseen by a regulated firm, with access to secure and convenient payment rails at a competitive price.”

Above all, this Binance.UK marketplace will feature both a ‘Basic’ trading interface, with simple buy, sell, and convert functionalities, and an ‘Advanced’ market view on the Binance.com order book with its complete trading tools and capabilities. Initially launching for desktop/web, Binance.UK will provide a mobile version later this year.

Interestingly they explained that Binance.UK will in turn contribute to Binances expanding efforts to increase convenience and access to users looking to buy and trade cryptocurrencies around the world.

The response from Binance has not been restricted to UK alone as Binance revealed that it has just “established joint ventures with leading global partners to create fiat-to-cryptocurrency trading platforms in Singapore, Korea, Uganda, Jersey, and the United States, with more platforms to follow across the globe. These trading platforms allow users to easily and securely buy and sell cryptocurrencies with select local currencies.” This shows that Binance management is fully set to take its digital assets services to the next level across the globe.

4.0 SEC's commissioner - Hester Peirce accuses SEC of showing double standards towards approving the Bitcoin ETF proposals, says it ought to have been a reality.

The Republican SEC commissioner Hester Peirce has clamped hard on the Security and Exchange Commission‘s (SEC) past decisions of denying an approval for Bitcoin ETF. According to Pierce, Bitcoin exchange has been a constantly and rapidly growing market that the SEC has underestimated for years without any good reason for doing so. Thus, with the rising and raging demand for Bitcoin ETF, it is very clear that SEC’s past explanations for the rejection of Bitcoin ETFs were mere excuses and insensitivity to the demand of the global digital assets market.

The SEC commissioner proceeded to accuse the body of 'Double standards'. She so much questioned this SECs double standards referring to the lengthy, strict, and complex approval process of ETFs for digital assets, compared to minimal filtering of conventional bond or commodity ETFs.

However, not long after Pierce's harsh submissions regarding the delays in the approval of Bitcoin ETF, SEC's officials went public with statements showing a re-initiation of a thorough inspection of the market to make the needful changes and possibly approve the long awaited Bitcoin Exchange Trading Fund (ETF). This no doubt, will be a positive drive for Bitcoin as more investors can easily come into the market without their identity being revealed and with an increased security for their funds.

Over the years SEC have always backed their rejection of Bitcoin ETF with the argument that the market was too remote to function with an ETF and that a market as small as Bitcoin, stands the chance of being manipulated. This has so much discouraged investors and led some to shift into private sectors such as Grayscale to trade Bitcoin. On the contrary, with Bitcoin achieving a trillion-dollar market capital at the peak of the bull-run this year and coupled with the continuous large scale and institutional adoptions, it is evident that this global exchange Market for Bitcoin, can no longer be neglected nor considered a child's play as traders and investors really mean business here and considers Bitcoin to be a reliable asset for store of values despite its volatility.

We are at present very optimistic that with the global outcry on SEC to do the needful especially with the acceptance of Bitcoin as a legal tender in EL-SALVADOR and other countries pledging to follow suit, SEC will soon be handicapped to approve the necessary Bitcoin ETF before the year runs out.

Disclaimer:

The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.

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