Category Archives: Cryptocurrency
Cryptocurrency Market Update: Bitcoin Cash rallies ahead of halving, Bitcoin stable above $7,200, ETH and XRP in the green – FXStreet
The cryptocurrency market is being treated to a couple of halving events this week. Bitcoin Cash and its rival sibling Bitcoin SV will both undergo a mining reward halving. Halving is an event that reduces the reward miners get per block of coins mined. Bitcoin Cash halving is its first since it hard forked from Bitcoin in 2017. It is scheduled to take place on Wednesday and will have mining rewards slashed in half from 12.5 BCH to 6.25 BCH. On the other hand, Bitcoin SV halving will take place a proximately a day after that of BCH.
BCH/USD has surged 8% on the day as investors take their positions ahead of the mining. It is exchanging hands at $274 after advancing from $252 (opening value). An intraday high has been reached at $280. However, buyers eye $300 while riding on the speculation surrounding the halving event.
Bitcoin price has made a considerable movement above $7,000 this week. The price stepped above $7,400 on Tuesday but lost steam short of $7,500. At the time of writing, BTC is trading at $7,330 following an intraday growth of 1.77%. Immediate support has been established above $7,200, further cementing the buyers position on the market as they look forward to testing the level at $8,000.
Ethereum has also been in a bullish phase this week. The price action took a positive turn on breaking above $140. The rally above $160 9 (former resistance) allowed the improved sentiments towards Ether to improve. This catapulted Ethereum to test $180 resistance. For now, the price trading at $171 after adding 3.91% to its value on the day.
Ripple price is trading 3.77% higher on the day. The price movement has been bullish from the opening value at $0.1928 to $0.2001 (market value). The step above $0.20 is key to the next rally eyeing $0.30. Therefore, it is essential that bulls find support above this level and shift their focus to $0.30.
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Cryptocurrency Market Update: Bitcoin Cash rallies ahead of halving, Bitcoin stable above $7,200, ETH and XRP in the green - FXStreet
Cryptocurrency is a Curse on the Indian Reserve Bank – Programming Insider
Introduction
India is known as a country that embraces all the new technologies and for the first time, India failed to embrace the new technology of bitcoins. Specially bitcoins are very helpful when you think to trade online from anywhere on earth. As the other best parts like easily transferable and could be sent anywhere on earth, this coin is extra money for you.Internet Users are Increasing
A large number of people are gradually moving into the digital world or the world of the internet very quickly. As of now, it can be said that there are about 480 million internet users in India which are growing rapidly and soon it is expected to rise as high as 660 million internet users. This number of users have been given to be increasing by 2023, magically dragging more people to the digital world. This is really good news for bitcoin trading applications because the greater number of people will use the internet will be able to use bitcoins for a better purpose. As per experts and the bitcoiners, India is a much stronger fertile ground for the use of bitcoins.
Digital Population for the Younger Generation
A concept-driven technology is a cryptocurrency or a bitcoin concept. This concept of cryptocurrencies is most appealing to the young population of India. India has the largest number of people below 35 years of age which covers like 65% of the people while 55% of the citizens are below 25 years. The average age of an Indian is somewhat around 29-30. On average, if we calculate more than 870 million it below 30 years old. It makes one thing clear that most of the Indians should use crypto to have some great time earning money.
The IT Sector is Enough
India has the required intellect to grow the best base for an intellectual industry strongly on the earth. Luckily India has an abundance of access to the crypto concept, but it is a different story that they do not want to use it. India has the miserably high number of Computer Engineers and plenty of people who are fresh graduates they join the software industry PR the IT sectors every year. Not only that the graduates are interested, in fact, but some of the best and well-known companies are also in India such as Wipro, TCS, and HCL, Infosys, etc. Some of the Indian cities like Pune, Hyderabad, and Bangalore are house to the best IT sectors and Software shades in India which are known globally. This also proves that the crypto world can work in India very easily without brining much difficulty on the way to deal with it.
India always had and still has everything that is required to have a great crypto trade in the market but somehow, it has failed to accept the concept gladly and it still considers it to be a crime. There are many reasons that have led to the ban on usage of the cryptocurrency but the major setback has been brought by the RBI.
RBI is a Curse on Cryptocurrencies in India
The finance regulatory body of India is the RBI who is solely responsible for the banning of the use of cryptocurrency in India. As soon as the RBI banned cryptocurrency in India, the roots of Cryptocurrency began to freeze brick by brick in India.
Conclusion
The Coronavirus that affected the entire world has also added some disappointment for the ones who deal with cryptocurrencies. The crypto-community is India has been left open mouth for the kind of a disappointment that they are facing from the government as well as the pandemic.
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Cryptocurrency is a Curse on the Indian Reserve Bank - Programming Insider
SC Verdict On Lifting Cryptocurrency Ban In India May Be Misinterpreted, And We May See The Ban Reinstated – Analytics India Magazine
According to experts, the Supreme Courts recent verdict on setting aside RBIs circular on banking ban should not be interpreted as the legalisation of cryptocurrency trade in India.
On April 5, 2018, Reserve Bank of India had issued a few advisory guidelines concerning cryptocurrency activities in India under a circular titled Statement on Developmental and Regulatory Policies.
Paragraph 13 of the circular asked entities governed by RBI not to deal with or give services to any person or business organizations dealing with or transacting in virtual currencies. Additionally, it also asked these entities to end such ties if any. As per RBI, the circular was issued in the public interest.
This circular was challenged by the chief petitioner Internet And Mobile Association Of India in the court of law. On March 4, 2020, the Supreme Court of India delivered a historical judgment.
As per popular interpretation of the verdict, it signalled the legitimacy of virtual currencies in India; that is, the Supreme court had lifted the ban on virtual currencies, and thus, trading in virtual currencies was now legal. The petitioners had been entitled to supersede, and the challenged circular issued on April 6, 2018, was subject to be taken down, as per the Supreme Court.
Though the Supreme Court of India upheld the plea for striking down the applicability of the circular, the order pronounced by the bench consisting of Justice Rohinton Fali Nariman, Aniruddha Bose and V. Ramasubramanian, may need careful evaluation for better understanding of the judgement.
The arguments in support of petitioners were on Article 19(1) (g). The denial of banking access to a profession not prohibited under the Indian law was deemed a violation of Article 19(1) (g) of the Constitution of India (which provides the right to practice any legal profession).
The petitioners also argued that the power contained in the circular lied outside the powers of the RBI, but the Apex Court negated that argument. The Supreme Court held that anything that may act a threat to or have an impact on the financial system of India should be regulated or prohibited by RBI, despite the said activity not constituting part of the credit system or payment system of the country.
In its judgement, the court observed, It is no doubt true that the Reserve Bank Of India has pervasive powers not only in view of the statutory design but also in view of the special status and role that it possesses in the economy of India. These powers can be applied both in the form of preventive as well as curative measures.
The court was convinced about wide powers of RBI and issuance of the circulars as preventive measures for the betterment of Indian financial scenario, but as the circular could not pass the test of proportionality, the circulars were smacked down. So, it should not be seen as the Supreme Court has lifted the ban on cryptocurrency in India, or that cryptocurrency trading is official in India as many of us are construing this decision, said Advocate Dr Mahendra Limaye, who heads cyber law firm- Mahendra Limaye Associates.
The Supreme court stated RBI did not show any empirical data highlighting the damage caused by cryptocurrency exchanges on the entities regulated by RBI, which is a significant reason that petitioners were able to win. Given that official ban on cryptocurrency still not exist India, RBIs ban on banking support for crypto firms remained unjustified on the grounds of proportionality.
The availability of power is distinct from the manner and extent to which it can be exercised by RBI. To test the proportionality of banking ban, it required RBI to present at least some semblance of any damage endured by its regulated entities. But there is none, the Supreme Court stated.
So, the overturn of the circular does not mean cryptocurrencies are legal in India or that crypto exchanges will be permanently allowed to function, according to experts.
Given RBI will further challenge the verdict to prove the alleged risk that cryptocurrencies pose to the banking system, the banking ban could be reinstated later. Plus, we know that an Inter-Ministerial Committee proposed in February 2019 a blanket ban on cryptocurrencies.
Known asBanning of Cryptocurrency and Regulation of Official Digital Currency Act,the draft bill is yet to be presented in front of the legislature. If passed, it could make buying, selling, mining, and even holding of cryptocurrency a punishable offence. So, have we interpreted the recent verdict by the Supreme Court wrongly?
Dr Limaye says, In my views, the mainstream interpretation of the verdict is wrong. The petitioners received the benefit of doubt and lassitude from governments part also played an imperative role in tiling the balance in favour of petitioners. The Apex Court has accepted the powers of RBI to issue circulars in Public Interest. There was no blanket order banning Virtual Currency and diametrically opposite views by the Central government regarding virtual currencies, and it let down the populous move of RBI banning VC exchanges from banking exposures.
What is essential to note, is that all petitions are filed against the Reserve Bank Of India, and not the Finance Ministry draft ban bill. The verdict remains only short-term relief as the verdict against the RBI does not impact activities on the policy level, also wrote Tanvi Ratna, a technology consultant and CEO of Policy 4.0 in herblog.
The verdict had been welcomed and celebrated by professionals in the crypto industrymultiple exchanges like Unocoin, Wazirx and CoinDCX started INR deposit services soon after.
The announcement also was followed by multiple investment announcements in cryptocurrency-related startups. This included Binance, Aeternity and HashCash investing in the countrys blockchain and cryptocurrency economy in 2020.
The cryptocurrency ecosystem in India saw a revival of fiat liquidity and resurgence of fiat-based trading at exchanges and as well as investments in startups. But, is this festive mood going to be a short-lived affair if Banning of Cryptocurrency and Regulation of Official Digital Currency Act is passed?
The verdict of the Supreme Court solely addresses the Reserve Bank of India circular. The Supreme Court is very unlikely to issue any action against the Finance Ministry, and impact their view on the subject, according to Tanvi Ratna.
Experts believe the Supreme Court seemingly gave a verdict in favour of the cryptocurrency industry as there is no such law yet in India which bans cutting banking support for exchanges. This means the judgment would not hold once there is such anti-crypto regulation is in place.
In the entire judgement, the Supreme Court never uttered a single word about legitimacy or genuineness of virtual currencies or about exchanges trading such virtual currencies. But SC only decided that the activities of petitioner exchanges, trading in virtual currency were not declared unlawful. Hence, their bank accounts could not be debit frozen by the banks citing the challenged RBI Circular, said Dr Mahendra Limaye.
Also Read: How Lifting Crypto Ban In India Will Accelerate Jobs And Blockchain Startups
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XRP Performed the Worst among Altcoins in 2020 – Crypto Briefing
Despite Ripples best efforts to speed the adoption of XRP, the number three altcoin is stuck in a downtrend that may see it reach new lower lows.
In a recent report, Messari affirmed that XRP was one of the worst-performing cryptocurrencies during the first quarter of 2020.
Although Ripple recently committed to acting as disciplined, responsible stakeholders, the $1.2 billion worth of XRP sold since 2016 appears to have jeopardized the tokens upside potential.
The cross-border remittances token opened the year at roughly $0.19 surging to a high of $0.35 in mid-February.
However, its price got slashed by 70% during Black Thursday, reaching levels not seen since May 2017. Following the crash, XRP was able to rebound and end Q1 with a negative return of 10%.
Despite the important partnerships that Ripple attracted to expand the adoption of its on-demand liquidity solution, the altcoin still performed poorly.
As interest in XRP seems to be declining, many investors are wondering whether Q2 will see its price continue to hit lower lows.
From a long-term perspective, XRP is trading downwards since reaching an all-time high of $3.5 in January 2018. Since then, it has been making a series of lower lows and lower highs.
A bullish impulse that allows the cross-border remittances token to close above the Feb. 15 high of $0.35 could be considered as the beginning of a new uptrend. Until that happens, the downtrend would likely continue.
XRP could drop to the next level of support that sits around $0.062.
In the meantime, XRP appears to be breaking out of a rising wedge pattern.
This technical formation developed as a direct consequence of the price action seen over the last few weeks. One trend line connects the respective highs while another one joins the lows.
Now that this altcoin has broken below the lower trendline, it could drop another 24% to reach a target of $0.15.
This target is determined by measuring the height of the wedge at its thickest point and adding that distance to the breakout point.
After flooding the market with tokens, Ripple significantly reduced the amount of XRP sold quarter-to-quarter.
The company sold $13 million in XRP during Q4 2019. This sum represented an 80 percent reduction from the previous quarter when it sold $66 million.
It appears these efforts have been in vain since Ripple have not been able to change the course of this cryptocurrency. XRP continues to make a series of lower lows without breaking out of the downtrend that began at the beginning of 2018.
With an on-going lawsuit over whether XRP is a security and Brad Garlinghouse, Ripples CEO, stating that the firm would not be profitable or cash flow positive without selling this token, investors must be aware of the downside potential for this token.
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XRP Performed the Worst among Altcoins in 2020 - Crypto Briefing
Nexo Facilitating Cryptocurrency Turnover with Tax Friendly Credit Lines – The Cryptocurrency Analytics
Nexo early this month expressed how happy they are to see that the ZeroFees initiative, which they pioneered in the last year considering the financial well-being of their clients in mind, is bringing improved value than ever in the current moment. Nexo further stated that it adds to the finest user experience without any withdrawal, transaction or hidden fees.
Nexo Tweeted: We asked, you answered! Despite the recent price drop, 53% of you believe that #BTC will see $11k 6 monthsfrom now proofthat the #crypto community will come out of the temporary setback stronger. #HODL your precious assets with Nexos Instant Crypto Credit Lines!
Nexo state that they are here to provide a lending hand for the miners as the mining business is recovering from the market turmoil. Of the initial ideals of Nexo, the chief of them was to provide miners with the cash required to run operations and therefore miners will not have to sell their crypto.
Sydney Ifergan, the crypto expert tweeted: Nexo is good at helping unlock the full value of BTC without having to sell it. A feedback on the tax efficiency of the Nexo Credit Lines is something that real time users should vouch for.
The miners and their response rate after the Forth Coming Bitcoin halving will provide for real time testimonials and market efficiencies. With real time testimonials and when miners say that the Nexo Finance Works for them, the cryptocurrency space is going to line up for Nexo Credit Lines. Proving sustainability!
There are an increasing numbers of investors who are willing to hold NEXO for a longer period of time. They are willing to benefit from the price rise. So, when it comes to facilitating as a power player in cryptocurrency Nexo is the King. Those who are willing to hold can continue to hold their Bitcoin and they can borrow against it. Thus, they will not lose out on the benefits accumulating by going long on their crypto.
Crypto investors love the credit lines as they are timely and tax efficient. The 5.9% APR does not have a player at par in the blockchain industry in finance.
Investors know that it is exponentially beneficial to hold Bitcoin. The value of the Bitcoin increases with each halving. And with the Nexo Credit Lines investors are able to benefit by holding their crypto for long at the same time get some needed liquidity out of it.
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Nexo Facilitating Cryptocurrency Turnover with Tax Friendly Credit Lines - The Cryptocurrency Analytics
Peak Fear Crypto Market Shows Big Bitcoin Recovery is Imminent: Analyst – newsBTC
The crypto market is on fire this week, with Bitcoin price exploding well above $7,000 and the rest of the market outperforming the leading crypto by market cap.
However, even though prices are taking off across the market, according to the Fear and Greed Index, the market is still in extreme fear. One crypto analyst says that prices rallying while investors are fearful is suggests the market is in a classic disbelief phase and following should be the first signs of hope of a sustainable long-term recovery in the digital asset class.
Crypto analysts have long argued over what stage of a classic market cycle the market is in. All markets are cyclical in nature, and the crypto market is no different.
Financial markets and even crypto assets go through regular, alternating periods of uptrend and growth, followed by downtrend and decline.
Related Reading | Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful
During these cycles, investors experience specific sets of emotions depending on where they are in each cycle. For example, when a top is near, and a cycle is about to peak, investors tend to be irrationally exuberant in their expectations for continued growth.
At that stage, investors often think theyre somehow a genius, and are about to strike it rich. They are blinded by their portfolio numbers increasing by the day and dont see the collapse coming right in front of them.
The inverse is true at the bottom.
Crypto investors have been mentally conditioned to expect more downside, have become fed up with the asset, and have lost hope for a recovery. This is called the disbelief stage and sneaks up on unsuspecting investors who have often have just been shaken out during a downtrend.
Crypto sentiment at peak fear
As the asset begins to pick up positive momentum once again, investors ignore the signals that an uptrend is starting.
They simply dont believe the recovery is real or will have legs, and dont take a position. Sooner than later, the asset has taken off on a powerful rally, and investors must FOMO-buy back into the asset at a higher price than they would have liked to, because they ignored the early signs that a recovery was taking place.
Related Reading | Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency?
Bitcoin and the rest of the crypto market has nearly doubled since the extreme low set back in mid-March, meanwhile, the crypto market Fear and Greed Index remains in a state of extreme fear, showing that this very well could be the disbelief rally that leaves burned and beaten investors in its dust, as the asset class takes off to new highs.
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Peak Fear Crypto Market Shows Big Bitcoin Recovery is Imminent: Analyst - newsBTC
Cryptocurrency market update: Major cryptos trade in tight ranges on Saturday – FXStreet
Major cryptocurrencies are staying relatively quiet on Saturday and struggle to break out of their daily trading ranges amid a lack of significant catalysts.
Bitcoin (BTC/USD) climbed to its highest level since March 13th at $7,250 on Thursday but lost its momentum as the Fibonacci 61.8% retracement of the mid-March fall formed a stiff resistance at that level. After closing the day little changed on Friday, the pair continues to move sideways below $7,000 on Saturday. On the downside,$6,600 (Fibonacci 50% retracement) aligns as the initial support ahead of $6,250 (20-day SMA) and $6,000 (Fibonacci 38.2% retracement/psychological level). Resistances, on the other hand, could be seen at$7,250, 7,650 (50-day SMA) and $8,170 (100-day SMA/200-day SMA).
Ethereum (ETH/USD) advanced to a fresh two-week high of $150.70 on Thursday and had gone into a consolidation phase. As of writing, the pair was up 1.3% on a daily basis at $143. With a weekly close above $150 (Fibonacci 38.2% retracement of mid-March drop), the pair could target $153.50 (Mar. 20 high). The 200-day SMA at $173 is the key resistance for the pair in the near-term. Supports are located at $137 (Apr. 3 low) and $126.50 (Fibonacci 23.6% retracement).
After finding support near $0.16 at the start of the week,Ripple(XRP/USD)gained traction and closed the last five days in the positive territory and gained more than 10% during the period. However, the pair seems to be having a difficult time preserving its bullish momentum as it trades in a tight range above the $0.18 mark. On the upside, the initial hurdle aligns at $0.1875 (Mar. 27 high/Apr. 2high) ahead of $0.2000 (psychological level). Near-term supports for the pair could be seen at $0.1620 (Fibonacci 38.2% retracement of mid-March drop) and $0.1420 (Fibonacci 23.6% retracement of mid-March drop).
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Cryptocurrency market update: Major cryptos trade in tight ranges on Saturday - FXStreet
These are the main factors to consider before investing in the cryptocurrency market – CryptoSlate
Investing has never been easier now that on-chain metrics enable market participants to determine who is on the other side of the trade. While this is only possible in the cryptocurrency market, IntoTheBlock maintains that this data can empower investors worldwide.
Contrary to popular belief, one of the biggest advantages of the cryptocurrency market is transparency. Through on-chain analytics anyone can determine how many investors are in a given asset, when they bought, and what their cost basis is. These key datasets are essential to determine which digital asset to invest in.
IntoTheBlock uses machine learning and statistical modeling to provide a view of a crypto assets profitability and capital stack. Bitcoin, for instance, is a great example of decentralization, which makes it ideal to consider as an investment vehicle, according to the firm.
The flagship cryptocurrency only has one whale that holds 1.4 percent of its circulating supply. This address has approximately 255,100 BTC and belongs to Singapore-based cryptocurrency exchange Huobi. The other 98.6 percent of the total Bitcoin in circulation is distributed among investors and retail investors. The former holds 10.1 percent while the latter keeps 88.5 percent.
Not only Bitcoin is decentralized, but the amount of holders in the network is at all-time highs, according to IntoTheBlock.
The Ownership by Time Held model estimates that nearly 30 millon addresses have a balance in Bitcoin. Currently, almost 63 percent of those addresses are holding 10.8 million BTC for more than a year. This represents a 23.7 percent growth since last year.
IntoTheBlock added:
To give you more accurate information about this we can see that the number of Bitcoins that hasnt been moved in over 5 years is up from 3.6m BTC on April of 2019 to 3.95m BTC on April of this year.
Other assets such as Maker do not provide the same levels of decentralization as Bitcoin and most of its investors will be in the red if they were to sell their tokens today.
In fact, IntoTheBlocks Global In/Out of the Money model shows that 89 percent of the addresses holding MKR are losing money while only 3 percent of addresses are in the money.
On-chain metrics also reveal that of the 57,520 addresses holding Maker, just 13 of them control almost 65 percent of the circulating supply. And, there is one address that holds nearly 25 percent of the circulating supply.
IntoTheBlock maintains that this could suggest that if anyone were to buy MKR, there is one major address would probably be the one dumping their tokens at a profit.
The ability to determine how centralized an asset is, how large holders can manipulate its price, or how confident investors are is only possible with this new asset class. Although this is not enough data to consider whether or not a given cryptocurrency provides a good investment opportunity, counter-party analysis makes this decision easier.
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These are the main factors to consider before investing in the cryptocurrency market - CryptoSlate
Brian Armstrong: Cryptocurrency Boom Will Spawn Millions of Tokens – The Daily Hodl
Coinbase CEO Brian Armstrong says hes taking a Google or Amazon approach to distinguish solid projects and tokens from those with low value that could tarnish the entire industry.
In an ask-me-anything session for Coinbase Pro on YouTube, Armstrong responds to a question about why he decided to open up the leading US cryptocurrency exchange to more than just Bitcoin, and how he intends to spot low-quality coins and keep them out of the mix. Armstrong, who first explored Bitcoin in December of 2010 when he read the white paper, founded Coinbase in June of 2012.
Coinbase started and we were just Bitcoin, and there was really part of me that was hoping from a simplicity of the product point of view I was like, I really just hope everything is going to be Bitcoin, because then we dont have to give people this idea of choosing different ones or switching between them.
But after input from customers, the Bitcoin-only model changed.
Wed always go talk to our customers, and we see what they want. And it became clear at a certain point that more and more of them wanted to use Ethereum.
We kind of resisted for a while, but then we were like, alright, lets put the second one in there. And then there was a third, then there was a fourth. And now its getting into this place where I dont know how many if we fast forward five years, Im not sure how many protocols there are going to be globally used. That might end up being like fiat currencies, where there are five or six majors and a whole bunch of minor ones. But I do think there will be millions of tokens.
There could be a token for every company or side project or GitHub repo or nonprofit. So I think that ship has sailed at this point. Were going to be in a world with many, many tokens
How do we add the ones that dont tarnish the brand or the whole industry? Because there are a lot of projects out there that are just probably outright scams. Thats not good for anybody. So heres the way I think about this now. I think about it a lot like Google or Amazon.
Armstrong says the general idea is to list everything thats not a scam or harmful to people, while also giving traders and investors the tools to evaluate different tokens and coins.
A good example is Amazon. There might be a product on there that has two out of five stars, and you can choose whether or not to buy it. But if its not like a fraudulent product or something, theyre not actually going to remove it, right?
Similarly, Google theyre going to index the whole web. If they didnt index the whole web and show results for the whole web, it would be an incomplete search engine. But if there is some site that has malware or the HTTPS certificate has expired or whatever, they might show you a warning, and theyre not going to let you do something that actually hurts you.
But theyre not going to try to tell you what you should or should not look at or use on the internet, unless they think its really dangerous. They just think its low-quality. They might rank it lower or give it a lower rating. So thats, I think, the world were moving to with Coinbase, and hopefully that is the best of both worlds.
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Featured Image: Shutterstock/Yevhen Vitte
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Brian Armstrong: Cryptocurrency Boom Will Spawn Millions of Tokens - The Daily Hodl
Global demand for cryptocurrencies escalating rapidly: What is the reason for this? – Cryptopolitan
The global demand for cryptocurrencies is escalating rapidly. Back in March, the price of Bitcoins fell by nearly 50% in a single day. This might translate into a low interest in cryptocurrencies to some individuals.
Indeed, this still makes sense, when multiple billion-dollar assets lose almost 50 percent of its worth within 24 hours, it sends chills through the nerves. Nevertheless, data indicate that the global demand for cryptocurrencies such as bitcoin and other altcoins is escalating
According to data shared by Yassine Elmandjra, a cryptocurrency analyst at ARK Invest, a tech investment and research firm, search engine interest in the word Bitcoin is nearing its all-time high; in several developing nations in South America and Africa.
Interestingly, the massive interest in the worlds most popular cryptocurrency has come to pass over the past 14 days. According to the graphical chart shared by Elmandjra, the huge plunge back in March did not deter investors.
Moreover, it appears as if the escalating demand in BTC is translating to the whole world. As per a recent report, Qiao Wang ascertained that Coinbase pro has six times more buy orders books compared to the sell order books. Additionally, stablecoin firms have been creating hundreds of millions of dollars in digital currencies in the past few weeks.
It is unfortunate that nobody has a definite response at the moment. However, there have been several inclinations that are somewhat making the radical instance of a rise in global demand for cryptocurrencies.
First of all, central banks globally are printing more money like never before. In order to curb the societal unrest and an economic recession brought about by the outspread of coronavirus, governments and central banks have started enacting emergency measures. These include gifting free cash to the users, slashing interest rates to hike expenditure, feeding billions of dollars in liquidity into the bonds market to keep the economy afloat.
On the other hand, bitcoin halving is fast closing in. In just a little over a month, the amount of bitcoin mined daily will be halved. Due to the event, the digital currency market will be in short supply than gold and fiat.
Morgan Creek Digital co-founder, Anthony Pompliano termed these two aspects as the rocket fuel for BTC. He said that these two aspects will combine in conjunction to escalate the market demand of BTC at a time when its scarcity rises, forming a supply-demand curve that massively favors value growth.
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Global demand for cryptocurrencies escalating rapidly: What is the reason for this? - Cryptopolitan