Bitcoin stands still. The news of the week
Today is the time to talk about stabilizing the bitcoin rate. Let’s note how this is possible given the negative news from China. The positive aspects of strengthening crypto in the legal field of regulators as a separate topic for attention.
At first, it fell, but then it rose firmly to its feet
In June, Bitcoin sank below $ 30,000 for the first time in six months. Further, the price went up amid uncertainties with trade and mining in China. The negative from this most important market resulted in a new fall. Now it was lower to 31.5 thousand dollars, but then bitcoin easily rose in a few hours to 32.3 thousand dollars.
This shows the strength of Bitcoin given the negative pressures. The fall of BTC below the support level is still being postponed and there are no prospects to change anything.
As it became known, now 9 out of 10 mining companies in China have stopped. This means that the new wave of negativity from this country has nowhere to come from. New falls aren’t expected shortly due to this direction. Among the positive, we are pleased with the new 5-year contract between the Standard Power mining infrastructure provider with Energy Harbor. Such a large agreement will provide the Ohio data center with carbon-free electricity from a nuclear power plant. Other mining companies look all over the world. Someone, after leaving, also plans to move to the United States; some other significant market players are planning to enter Kazakhstan and Iceland. The list is not limited to these countries.
Interestingly, crowds of investors are talking about the fall of Bitcoin to $ 10,000. For example, they talk about it in Guggenheim. Perhaps we are talking about investors who failed to buy bitcoin profitably some time ago. Assumptions aside, a powerful fact comes to the fore. Exchange accounts have record volumes of stablecoins. Any positive news could trigger the market above previous highs.
The legal status of cryptocurrencies is strengthening among regulators
The cryptocurrency market has come of age and got a well-deserved interest from institutional investors. More and more regulators in various countries are looking for ways to implement cryptocurrency and blockchain technologies.
Good news came from Brazil. The Brazilian Comissão de Valores Mobiliários (CVM), the securities regulator, has approved the Ether ETF. The fund, which is traded under the ticker symbol QETH11, will trade on the Brazilian stock exchange B3. It is a well-established regional exchange with clients all over the world.
QETH11 will receive the same Ether index as CME Group. He will use institutional custody services from Gemini, an American company run by the Winklevoss twins.
“Brazilian regulators recognize the growth of the cryptocurrency market. They understand the importance to offer regulated products to investors who are looking forward to exploring these new asset classes. We hope that the signals from Brazil will prompt the SEC to approve the first crypto ETF in the US,” said Fernando Carvalho, CEO of QR Capital.
Also, in early 2021, the Ontario Canadian Securities Commission authorized the world’s first physically hosted bitcoin ETF. The US and many other countries didn’t approve crypto ETFs, despite the constant demand for this type of fund.
The largest bank in Thailand is ready to work with DeFi. The oldest and largest bank in Thailand, Siam Commercial Bank, believes DeFi is equal to traditional finance. In addition, such services in current banking will lead to shorter transaction times, lower costs, and increased transparency.
“Traditional financials like us must actively research, invest, and implement DeFi. DeFi companies need to work with traditional finance companies to leverage their strengths,” said Mukaya Tai Panich, director of venture capital and investment at SCB.
And in February 2021, the venture department of this bank created a $ 50 million fund. The money is reserved for investments in DeFi startups. The heads of the bank believe they will help shape the next generation of financial services.
Conclusion
A week ago, we talked about the growing interest of Asian countries in crypto and possible positive effects on the exchange rate. Today, two major events confirm this: whales are returning to the market, and Bitcoin is holding its course in front of negative Chinese news. It is possible that investing in cryptocurrencies is worth looking at as a cryptocurrency with a long-term growth perspective.
