- Nexo partners with Marstercard and DiPocket to create a crypto-backed credit card.
- Bitcoin jumps 3% in the wake of the news, climbing back above $40,000.
- The digital asset risked a correction based on a bearish Death Cross.
YEREVAN (CoinChapter.com) – As announced on Apr. 13, crypto lender Nexo partnered with global payments giant Mastercard, digital wallet DiPocket, and launched the “first-ever” crypto-backed credit card in Europe. The collaboration signaled the growing adoption of crypto assets by the mainstream economy.
Nexo + Mastercard = crypto adoption
The announcement further specified that the Nexo card would allow users to spend their funds without selling digital assets. Hence “no taxable event will occur.” Instead, the crypto tokens will be used as collateral to back the credit granted.
In detail, Nexo linked the card to a crypto-backed credit line. The cardholders can use it with “over 92 million merchants worldwide,” where Mastercard is accepted. Additionally, the company asserted that users could spend up to 90% of their crypto assets’ fiat value and earn rewards.
Since the Nexo Card is a part of our loyalty program, the more NEXO Tokens you have in your accounts, the more you will receive in crypto rewards when you use your card. Each Loyalty tier has its own crypto rewards rate.said Nexo.
Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships, also commented on the collaboration, saying, “Mastercard recognizes that digital assets are revolutionizing the financial landscape.”
Notably, the crypto-adoption “milestone” triggered a recovery attempt from Bitcoin. As a result, BTC jumped 3% in the previous 24 hours and traded at just above $41,000 in Thursday’s Asian-Pacific session.
Bitcoin (BTC) – what to expect?
The digital asset broke above the support/resistance line at $40,000. Arcane Research commented on the importance of the said level in its latest report, calling it “essential.”
The $40k level has previously acted as essential support for bitcoin and is also a critical psychological level. It’s therefore crucial for bitcoin to stay above this level.
If bitcoin cannot stay above $40k, $37k has also served as strong support in 2022. Towards the upside, if the strong $47-48k resistance level is broken, $50,000 is the next key resistance level.reported Arcane Research.
However, unless Bitcoin bulls pump up the trading volumes, BTC could face a Death Cross between its 20-day and 50-day exponential moving averages (EMA 20 and 50; waves red and orange) and drop back to $40,000 or below. In short, the formation occurs when a short-term MA crosses below a long-term MA.
Thus, the Death Cross appears to result from the price action and cannot cause the graph to skew in any direction. However, the setup could further hinder BTC’s upside attempts by serving as resistance. Therefore, the Death Cross’ bearish claim remains relevant as long as the EMA-50 dominates over the EMA-20.