CryptoNews of the Week
- Some experts believe that the chances of Ethereum to rise to $400 by the end of the year have increased to 1: 3. The impetus for an increase in the price tag could be the higher activity of traders on the Deribit and OKEx platforms, where the total daily trading volume for ETH exceeded $ 50 million. This cryptocurrency has become in demand in the options market. However, despite a lot of positive aspects, the growth of commissions for transactions in the ethereum network caused worries even for its creator Vitalik Buterin.
According to Santiment experts, the value of ethereum may rise against the background of intensified trading, but if bitcoin continues to grow, traders and investors are highly likely to switch to it.
- One of the veterans of the bitcoin industry, the Abra platform has added the feature to earn on deposits in cryptocurrency and stablecoins. According to the company's website, TrueUSD (TUSD), Tether (USDT) and USD Coin (USDC) are the most profitable - 9% per annum. The annual return of deposits in bitcoin and ethereum is 4.1% and 4.0% respectively. Speaking with The Block, Abra representatives stressed that the rates will be reviewed weekly. The decisions about their changes will depend on the demand from the institutional clients of the platform. The company also noted that the rates offered by them are “significantly better” than in the traditional market.
- The number of bitcoins associated with illegal activity has exceeded 890,000 (about $9.5 billion at the exchange rate at the time of writing). This is evidenced by data from Chainalysis Market Intel. The origin of these funds is as follows: 65% are darknet markets, 23% are stolen coins, 11% are scam project wallets and 1% are other illegal activities.
- The bitcoin rate passed the $11,000 mark for the first time since August 2019 on July 28. And this is just the beginning of an upward movement, said the founder of Heisenberg Capital and billionaire Max Kaiser on his Twitter account. In his opinion, the cryptocurrency will break the previous record value of $ 20,000 and then rise to $28,000. If this forecast comes true, the growth of the BTC price from the current values will be more than 150%. But such a scenario is unlikely, says Sergey Troshin, CEO of the Six-Nines data centre. “Bitcoin is attractive for investment. Yet updating the Kaiser highs around $28,000 is unlikely. As usual, the first hype turns out to be the most powerful, other hypes are already lower. Perhaps when bitcoin reaches the $17,000-$18,000 mark, many will start fixing profits, waiting for a correction,” Troshin suggested. And he added that bitcoin could show stable growth in the next year or two with possible small falls due to negative news. Fundamentally, the cryptocurrency market infrastructure is developing, it is gradually recognized as an asset class in the conservative financial environment. The number of cryptocurrency users also doubles every year, which has a positive impact on the price. But it is important to bear in mind that there is a high level of uncertainty in the markets now, and unforeseen circumstances may arise that affect investor behaviour.
- According to Glassnode specialists, miners began to hold on to most of the extracted bitcoins after after the price had overcome the psychological barrier of $10,000. The GNI index, which reflects the overall health of the bitcoin blockchain, rose to 70 points. This metric includes three components: investor sentiment, network health, and liquidity. The greatest contribution to the growth of the index was made by the improvement of the sentiment sub-index by 34 points due to the increase in BTC purchases.
- The digital market has been fighting for a system of cashless payments with support for cryptocurrencies for a long time. BLINC's new interbank settlement system supports cryptocurrency transactions and smart contracts. This analogue of SWIFT is significantly ahead of the existing settlement system both in terms of efficiency and cost of services, according to the BCB Group. In addition to cryptocurrencies, BLINC supports 24/7 cashless payments and instantly processes domestic and international transactions in fiat currencies - euros, British pounds and Swiss francs.
- A semi-annual report from Bloomberg predicts that the price of bitcoin could rise above $12,000 soon. The document notes that BTC on chain and off chain indicators, including the number of active addresses, indicate an increase in the value of the asset. "The maximum level of bitcoin in 2019 was $12,734. If the number of addresses does not change dramatically, it will strive for this level." Bloomberg believes that the continued growth of Bitcoin Trust from Grayscale and the reduced premiums compared to the bitcoin spot market should also be interpreted as a bullish signal for the market.
- Capriole's digital assets manager Charles Edwards said institutional interest in bitcoin is obvious as the U.S. regulators “have given it the green light” this week. And "if U.S. banks invest only 1% of their assets in bitcoin as an investment, hedge or insurance... its price will more than double, rising above $20,000," Edwards tweeted, adding: "Only 1 member of the Nasdaq (Grayscale) already owns 2% of the total bitcoin revolving offer today. It is not hard to figure out where things are going."
- A Federal Court in the United States has recognized bitcoin as money. This was stated by Beryl Howell, the Chief Judge of the United States District Court for the District of Columbia. She noted that the concept of money “usually means a means of circulation, a method of payment or a means of saving. And bitcoin is those things.” The ruling allowed the court not to drop the charges against Coin Ninja CEO Larry Dean Harmon arrested in February, who is accused of laundering about $311 million through his Helix coin mixing service.
- Nigel Green, CEO and founder of financial advisory firm deVere Group, believes that bitcoin's bullish activity shows it can replace proven safe-haven assets like gold. “Bitcoin, which combines key characteristics for preserving value and maintaining scarcity, could knock gold out of its long-standing position. In the end, the world is becoming more technological,” said Green. In his opinion, the growing political tensions between the US and China is one of the reasons why investors can choose "decentralized, non-sovereign, secure digital currencies" as a defence against turbulence in traditional markets.