Bitcoin’s price has been stagnant as of late, but the same can’t be said about the stock market.
The futures of the S&P 500, Dow Jones and other American indices continue to trend up, and so too has the stock market in Asia.
Crypto finance company Amber Group believes the recent highs — especially those in China — could have a positive effect on Bitcoin and the industry as a whole.
The FTSE’s China A50 index surged over 6% during Monday’s trading session, reaching an all-time high in the process.
Analysts attribute this rally to easing monetary policy by the People’s Bank of China, the country’s central bank.
Amber Group explained that the FTSE China A50 index hitting new highs shows that Chinese investors are risk-on, potentially boosting Bitcoin.
The logic here is that if stocks are rallying higher, investors have more capital and will be more inclined to buy cryptocurrency.
There isn’t much data to support a correlation between Bitcoin and Chinese stocks, but the two similar thrived together in 2016.
However, not everyone is convinced the rally in the stock market will last forever. Mad Money’s Jim Cramer and global CIO of Guggenheim Investments Scott Minerd believe stocks could fall this month due to being overpriced and the S&P 500 being trapped below resistance levels.
A slowdown in the U.S. stock market could also result with a slowdown in China — and vice-versa.
Matthew Graham, a veteran investment banker in China and the CEO of Beijing-based Sino Global Capital, believes the country’s upcoming digital yuan is more likely to challenge the U.S. dollar instead of Bitcoin.
He argued that the Chinese government sees new technologies as a “leapfrog opportunity” to chip away at the dollar’s hegemony.
The digital yuan reportedly will be issued by the People’s Bank of China and remain under the central bank’s full control and authority — a far cry from public blockchains such as Bitcoin.
Moreover, the new technologies integrated into the digital yuan, including those aspects learned from blockchain, are being used to a different end.
Graham argued that for monetary policy, China’s digital yuan “could be very useful for implementing negative interest rates.”
This is in contrast to older systems such as Fedwire, CHIPS and SWIFT, which Graham believes are becoming outdated.
Ethereum broke the key uptrend support level near $228 and the 100 hourly simple moving average.
However, the bulls couldn’t maintain that level, resulting in a decline from the $233 swing high.
The bulls also failed to protect this week’s ascending channel with support near $228. The pair traded as low as $223 and it is currently correcting higher.
On the flip side, the previous support near the $228 level and the 100 hourly SMA is acting as strong resistance. It is close to the 50% Fib retracement level of the recent decline from the $233 high to $223 low.
There is a crucial resistance forming near $228, $230, and a new connecting bearish trend line on the same chart. The Ethereum price must break these three hurdles to begin a fresh increase towards $232 and $235.
Ethereum could resume its decline if it fails to clear the $228 resistance and the 100 hourly SMA. An initial support is near the $225 level, below which the bears are likely to take control.
The main support is now near the $222 level. A successful break and close below the $222 support could spark another decline towards the $205 support.
St. Petersburg’s Petrogradsky District Court has dismissed Bitcoin as a crime since cryptocurrency is not regulated in Russia.
The ruling had a major effect on the verdict of a theft case involving Bitcoin filed in December 2019.
The two accused, Peter Piron and Yevgeny Prigozhin, disguised themselves as officers of the Federal Security Service of the Russian Federation (FSB) in 2018, and forced the plaintiff to transfer cash and cryptocurrencies to them.
Under the threat of torture, the cryptocurrency owner transferred five million rubles and cryptocurrencies, including 99.7035 BTC.
Piron and Prigozhin were found guilty, sentenced to prison and ordered to return the fiat money stolen — but not cryptocurrencies.
Prigozhin and Prion will serve eight and 10 years, respectively, in a maximum-security prison.
Although cryptocurrency isn’t regulated in Russia, a bill was recently proposed to outlaw cryptocurrencies with a jail term. However, several ministries do not support the bill.
Some predictions expect the digital economy to comprise 24.3% of the world’s GDP by 2025 which would be a total valuation of $23 trillion. Arguably the main innovative technology leading this push is blockchain.
Though it is known as the core technology for Bitcoin, blockchain is independent and is already impacting several industries including gaming companies, industries, and manufacturing.
Blockchain allows the energy sector to monitor its transactions, verify the origin of certificates, digitalize registries and control output. In the long run blockchain could help reduce operating costs, increase the reliability of its operations, and accelerate efficiency in domestic trading operations.
Blockchain makes it possible for companies to track their manufactured goods throughout their lives, from shipping facilities to consumers in stores, and as blockchain allows businesses to maintain a transparent flow of data, it allows coordinating details between all involved parties in the production and consumption chain.
Blockchain technology within the automotive industry represents a powerful tool for data storage and transmission by smart cars. It can collectively store data about specific vehicles from various registries and help prevent falsification of data.
On June 29 Tether announced a $300 million USDT from the Tron blockchain to the Ethereum protocol. Tether explained that the amount of USDT will be the same meaning that some USDT will be burned and the same number of tokens will be issued on Ethereum.
Tether makes use of several blockchains to host the circulating supply of USDT, which allows users to bypass congestion in a certain chain if the need arises and also makes USDT use easier for users invested in a certain platform to continue transacting in USDT.
The swap was conducted by or through Binance that sent USDT to Bitfinex in exchange for the same amount of USDT tokens.
Some analysts believe that one possible reason for the swap is that Tron was paying a premium to keep Binance’s USDT on its blockchain and this deal may have now come to an end.
Others suggest that that Binance, or one of its customers, wants to participate in yield farming using ERC-20 tokens as DeFi has recently become the center of attention in crypto as the possibilities for generating passive income are very lucrative.
Director of the National Institute of Allergy and Infectious Diseases, Dr. Anthony Fauci predicts that the number of daily coronavirus infections could reach 100,000 if immediate precautions aren’t taken.
As Dr. Fauci gave this warning, stocks reacted with caution and investors are anticipating that a downturn in equities market could lead to a Bitcoin price correction.
The price of Bitcoin has mirrored that of U.S. equities in recent months and if prolonged restrictive measures trigger another sell-off of risk-on assets, Bitcoin could be vulnerable to another major pullback.
The unpredictability of the pandemic has forced high-net-worth investors to remain skeptical towards equities and if newly emerging data about the virus continues to worsen, investors may search for shelter in risk-off assets.
Despite the growing amount of cash in the financial market and in crypto, both Bitcoin and stocks have consolidated in recent months. Almost immediately after the balance sheet of the Federal Reserve contracted, stocks and crypto assets fell simultaneously.
Multi-platform blockchain explorer Blockchair has added a “privacy-o-meter” for every Bitcoin transaction that identifies which part is the change.
The main goal of Blockchair is ultimately to educate users on how to send Bitcoin without exposing themselves too easily.
Though the Bitcoin blockchain is technically transparent, it can be hard to identify the true flow of funds. Unless the wallet is completely drained each transaction includes at least two unspent transaction outputs where one is returned to the sender as change.
The system analyzes technical clues like the type of the multi-sig that was used, the differences in script between inputs and outputs, as well as their ordering.
The CoinJoin protocol has steadily grown over the past year, but while it can improve privacy, using it incorrectly can leave clues for researchers to deanonymize transactions.
The Bank of Lithuania will launch a pre-sale of its Central Bank Digital Currency (CBDC), known as LBCOIN on July 9, with the coin itself being issued and sold on July 23.
LBCOIN is a CBDC based on the NEM blockchain and issued by the central bank of Lithuania, but the financial institution prefers to call it “the world’s first blockchain-based digital collector coin.”
LBCOINs will be issued for collectible purposes as part of the country’s larger research on blockchain and its capabilities.
Pavel Lipnevic, project manager for LBCOIN says that the coin will help to “gain practical hands-on experience in issuing a retail Central Bank Digital Currency in a real environment”
The Bank of Lithuania plans to sell 24,000 LBCOINs which will come in packs of six and cost 99 euros. Each token will feature a portrait of one of 20 historic Lithuanian historical figures who signed the country’s declaration of independence in 1918.
After his YouTube channel was shut down for “fomenting violence and hatred,” alt-right activist Stefan Molyneux has received over $100,000 in crypto donations from his online supporters.
As of Wednesday morning, Molyneux’s supporters have sent 433 BCH, dozens small Bitcoin transactions of mostly 0.001 BTC or less, three small ETH donations totaling roughly $10, 0.3 DASH, no Skycoin, and no DOGE.
Molyneux previously reached out to his social media followers for donations in January after YouTube revoked his channel’s YouTube Partner Program, preventing him from earning money on the platform.
While Molyneux’s Facebook and Instagram profiles remain intact, PayPal joined YouTube in cutting ties with the alt-right figure.
The SPLC opined that hate group leaders typically prefer crypto donations because “no company and no government” can intervene to stop the transaction.
Nonetheless, the SPLC has attempted to track identified Bitcoin wallets that provide donations to influential extremists such as Molyneux.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.