The BTC exchange rate rose to 30,704 USD on Monday, with the flagship cryptocurrency gaining 1.4% during the week. Overall, last week was a relatively calm one for BTC.
From a fundamental perspective, the crypto sector has strong support from large funds. Previously, news emerged that Fidelity had filed another application with the SEC to create a spot fund ETF. The SEC has already received similar applications from BlackRock and others. However, later, the SEC announced that all these applications needed to be adjusted as they were not clear enough. The companies quickly responded by withdrawing their applications for modification. These things happen, there is nothing critical about them. It is positive that the SEC is actively engaging with businesses and is maintaining a dialogue at least at this level.
In addition, there is news about the launch of new ETHBTC futures by the CME platform.
The technical outlook remains favourable for a rise towards the 33,000 USD target.
The total capitalisation of the cryptocurrency market increased to 1.210 trillion USD. The share of BTC decreased to 49.4%, while the share of ETH rose to 19.4%.
Binance looks towards the UAE
Cryptocurrency exchange Binance is considering the UAE as the primary destination for the development of the digital asset industry. The country could become a key hub for the company’s core business in the future. Previously, Binance decided against listing anonymous tokens in several European countries.
MicroStrategy buys BTC
MicroStrategy, a provider of analytical software equipment, bought an additional 12,333 BTC between 29 April and 27 June. The transactions amounted to 347 million USD, meaning the average BTC price was 28,136 USD.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
BTC reached 30,710 USD on Friday, marking a weekly growth of 2.35%.
Improvement in the domestic news landscape and the reestablished correlation with the US stock market are working in favour of the flagship cryptocurrency. At the same time, it should be noted that the rally is not formed yet because buyers remain cautious. For the BTC exchange rate to confidently move upwards, the cryptocurrency needs to secure above 31,150 USD. Once this is achieved, the next target for growth would be 33,000 USD.
The capitalisation of the cryptocurrency market is gradually increasing and currently stands at 1.190 trillion USD. The share of BTC remains at 50.2%, while the share of ETH has decreased to 18.9%.
BTC mining has become less complicated
According to a recent calculation, the complexity of mining the leading cryptocurrency has decreased by 3.26%. For May, the cumulative revenue of miners amounted to 916 million USD, which shows consistent growth since November last year.
The King of the UK ratifies cryptocurrency legislation
The King of the UK has ratified a draft bill allowing regulators to oversee digital assets and stablecoins. This is a formal measure, as the legislation was previously agreed upon at the House of Lords.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
Bitcoin boosters like to claim Bitcoin, and other cryptocurrencies, are becoming mainstream. There’s a good reason to want people to believe this.
The only way the average punter will profit from crypto is to sell it for more than they bought it. So it’s important to talk up the prospects to build a “fear of missing out”.
But the hard data on Bitcoin use shows it is rarely bought for the purpose it ostensibly exists: to buy things.
Little use for payments
The whole point of Bitcoin, as its creator “Satoshi Nakamoto” stated in the opening sentence of the 2008 white paper outlining the concept, was that:
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.
The latest data demolishing this idea comes from Australia’s central bank.
Every three years the Reserve Bank of Australia surveys a representative sample of 1,000 adults about how they pay for things. As the following graph shows, cryptocurrency is making almost no impression as a payments instrument, being used by no more than 2% of adults.
Payment methods being used by Australians
Reserve Bank calculations of Australians’ awareness vs use of different payment methods, based on Ipsos data.
By contrast more recent innovations, such as “buy now, pay later” services and PayID, are being used by around a third of consumers.
These findings confirm 2022 data from the US Federal Reserve, showing just 2% of the adult US population made a payment using a cryptocurrrency, and Sweden’s Riksbank, showing less than 1% of Swedes made payments using crypto.
The problem of price volatility
One reason for this, and why prices for goods and services are virtually never expressed in crypto, is that most fluctuate wildly in value. A shop or cafe with price labels or a blackboard list of their prices set in Bitcoin could be having to change them every hour.
The following graph from the Bank of International Settlements shows changes in the exchange rate of ten major cryptocurrencies against the US dollar, compared with the Euro and Japan’s Yen, over the past five years. Such volatility negates cryptocurrency’s value as a currency.
There have been attempts to solve this problem with so-called “stablecoins”. These promise to maintain steady value (usually against the US dollar).
But the spectacular collapse of one of these ventures, Terra, once one of the largest cryptocurrencies, showed the vulnerability of their mechanisms. Even a company with the enormous resources of Facebook owner Meta has given up on its stablecoin venture, Libra/Diem.
This helps explain the failed experiments with making Bitcoin legal tender in the two countries that have tried it: El Salvador and the Central African Republic. The Central African Republic has already revoked Bitcoin’s status. In El Salvador only a fifth of firms accept Bitcoin, despite the law saying they must, and only 5% of sales are paid in it.
Storing value, hedging against inflation
If Bitcoin’s isn’t used for payments, what use does it have?
The major attraction – one endorsed by mainstream financial publications – is as a store of value, particularly in times of inflation, because Bitcoin has a hard cap on the number of coins that will ever be “mined”.
In terms of quantity, there are only 21 million Bitcoins released as specified by the ASCII computer file. Therefore, because of an increase in demand, the value will rise which might keep up with the market and prevent inflation in the long run.
The only problem with this argument is recent history. Over the course of 2022 the purchasing power of major currencies (US, the euro and the pound) dropped by about 7-10%. The purchasing power of a Bitcoin dropped by about 65%.
Speculation or gambling?
Bitcoin’s price has always been volatile, and always will be. If its price were to stabilise somehow, those holding it as a speculative punt would soon sell it, which would drive down the price.
But most people buying Bitcoin essentially as a speculative token, hoping its price will go up, are likely to be disappointed. A BIS study has found the majority of Bitcoin buyers globally between August 2015 and December 2022 have made losses.
The “market value” of all cryptocurrencies peaked at US$3 trillion in November 2021. It is now about US$1 trillion.
Bitcoins’s highest price in 2021 was about US$60,000; in 2022 US$40,000 and so far in 2023 only US$30,000. Google searches show that public interest in Bitcoin also peaked in 2021. In the US, the proportion of adults with internet access holding cryptocurrencies fell from 11% in 2021 to 8% in 2022.
UK government research published in 2022 found that 52% of British crypto holders owned it as a “fun investment”, which sounds like a euphemism for gambling. Another 8% explicitly said it was for gambling.
The UK parliament’s Treasury Committee, a group of MPs who examine economics and financial issues, has strongly recommended regulating cryptocurrency as form of gambling rather than as a financial product. They argue that continuing to treat “unbacked crypto assets as a financial service will create a ‘halo’ effect that leads consumers to believe that this activity is safer than it is, or protected when it is not”.
Whatever the merits of this proposal, the UK committtee’s underlying point is solid. Buying crypto does have more in common with gambling than investing. Proceed at your own risk, and and don’t “invest” what you can’t afford to lose.
The BTC exchange rate is about 30,250 USD on Monday. Over the past 24 hours, the flagship cryptocurrency has been moderately declining. However, it has gained about 14.5% within a week.
The last week was victorious for BTC as the leading cryptocurrency saw the most significant weekly result since March of this year. The weekly high was recorded at the level of 31,431 USD.
Several factors have worked in favour of buyers. First of all, this is the launch of EDX Market platform supported by The Charles Schwab and Fidelity. In addition, the giant BlackRock is getting ready to launch a cryptocurrency spot ETF. Following the investment fund, others, including Fidelity and Wisdom Tree, want to do the same. This is a good and promising signal: if the whales consider funds potentially profitable, it means they see conditions for an increase in prices.
BTC has broken the 31,000 USD level upwards. This opens the way for the buyers to 33,000-34,000 USD. A significant support level is at the 29,650 USD level, and the one below it is at the 29,200 USD level.
The capitalisation of the cryptocurrency market reached 1.176 trillion USD. BTC’s share has risen to 49.9%, while the share of ETH decreased to 19.2%.
Japan eases taxes for cryptocurrency companies
The Tax Agency of Japan intends to ease taxation for cryptocurrency companies. In particular, such companies could be exempt from paying tax on unrealised gains. This should facilitate running an industry-specific business in Japan.
Robinhood clients invest in Dogecoin
Robinhood clients invested about 1 billion USD in the DOGE token over the past month. According to publicly available data, Robinhood clients currently hold about 27.4% of the market supply of meme coins.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The correlation between the BTC and the Nasdaq and S&P 500 indices remains disrupted. This is due to a significant influx of internal news within the cryptocurrency sector.
An important resistance level of 28,300 USD was broken overnight, which is a positive signal. The market reacted positively to the launch of the new cryptocurrency exchange EDX Market, and the news about Deutsche Bank’s application for a license with the German finance regulator.
Furthermore, earlier news about Binance.US reaching an agreement with the SEC also enhances local optimism.
The capitalisation of the cryptocurrency market increased to 1.135 trillion USD. BTC’s share has risen to 49.4%, while the share of ETH has dropped to 19.2%.
Cryptocurrency exchanges saw a surge in market activity
Following the collapse of the FTX exchange in November last year, some cryptocurrency exchanges saw a decline in user interest. Kraken and Bybit are currently seeing a resurgence in trader activity. On average, trading volume on the exchanges is up 5% over the past six months.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The BTC returned to 25,476 USD on Friday. Yesterday the flagship cryptocurrency experienced new stress with the price drop. Weekly losses are 3.9%.
The market is very thin and nervous. It has been this way since the beginning of the week, and there are no grounds for improvements. Sellers have gone less active, while buyer activity is still absent. In such circumstances, chances are that the BTC will drop to the trendline at 24,500 USD, from where chaotic sales towards 21,000 USD might start.
Recall that the cryptocurrency sector was plagued by fear due to multiple claims from the US Securities and Exchange Commission to the Binance exchange and its management. There has been talk of the possibility of freezing the exchange’s assets in the US, which carries the highest risks of complications for the business.
The capitalisation of the cryptocurrency market is estimated at 1.036 trillion USD. BTC’s share has increased to 47.8%, while the share of ETH has dropped to 19.3%.
Tether raises concerns about CoinDesk
Tether believes that the news website CoinDesk has obtained confidential client information via a hacker attack. This is about possible access to reserve reporting documents that Tether provided to the New York Attorney General’s office to reach a settlement in their legal dispute.
CoinEx ceases operations in the State of New York
Hong Kong exchange CoinEx is banned from operating in New York following a ruling by the New York Attorney General. The problem emerged from the inability to register the business there as a broker or dealer, as well as providing false information. At the same time, assets worth 1.7 million USD were seized from the exchange.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The flagship cryptocurrency remains as volatile as before. The weekly decline is estimated at 3.6%. A significant support level is at the 25,400 USD level. Below it, there is new support at 24,480 USD.
BTC is being bought during the fall, but not very effectively. Seasonal patterns still favour steady growth, but the market is facing negative news. So far, there is no reason to ignore it. The rhetoric of the US Securities and Exchange Commission (SEC) is too aggressive. No one knows how the SEC will behave next and what actions it will take. In such conditions, investors prefer to wait with buying actively.
The capitalisation of the cryptocurrency market amounts to 1.058 trillion USD. BTC’s share has risen to 47.6%, while the share of ETH has consolidated at 19.8%.
US Treasury to make digital dollar anonymous
The US Department of the Treasury is looking at ways to keep the use of digital dollars confidential. The goal is to make retail CBDC transactions as confidential as possible. However, it is still not clear whether the digital dollar will launch at all and whether it is worth proceeding with its development.
Tourists in China can exchange currency for e-CNY
China is making new attempts to attract tourists to Hainan Island. Travellers are now offered the option to buy cryptocurrency. Thus, tourists can exchange 20 different currencies for digital yuan through vending machines. The device accepts dollars, euros, and other currencies, issuing a physical card with digital funds in return. It can be used for purchases from specific sellers.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The BTC is consolidating near 26,455 USD on Friday. The flagship cryptocurrency lost 2.3% over the week.
There are numerous internal triggers that are alarming investors and hindering the market from buying. For example, market players continue to be concerned about the multiple and rather aggressive claims by the US Securities and Exchange Commission (SEC) against Binance and its management. It’s no secret that the SEC is seeking to put pressure on the cryptocurrency sector and complicate its operations to the extent that it would not be feasible to operate. The Commission now appears to have reached for really effective levers.
The fall in the BNB rate has also signalled a sell-off for digital assets.
Support for BTC remains at 26,000 USD, and next at 25,500 USD.
The capitalisation of the cryptocurrency market declined to 1.1 trillion USD. BTC’s share rose to 46.7%, while the share of ETH remains at 20.1%.
FTX keeps its list of major clients secret
Even after the collapse of the company, the bankrupt exchange FTX continues to keep its major clients secret. Multiple media publications argue that such a list should be made public. However, Perella Weinberg Partners, the company that is investigating the capital of FTX and the possibility of restructuring the exchange, believes it should remain undisclosed. Publishing the list could hinder the launch of FTX 2.0.
Ripple sponsors the battle against climate change
Ripple is investing 100 million USD in the fight against climate change. This amount of funding could help accelerate the modernisation of the carbon credit market. Ripple also intends to invest in new models that will enable the tokenization of carbon credits.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
The BTC restored to 26,836 USD on Wednesday after a major decline the day before. Since yesterday, the leading crypto has been showing the consequences of a rebound.
However, the market did not renew the new support at 25,500 USF though in the afternoon it seemed possible. The decline was provoked by the news about the interaction between the US Securities and Exchange Commission (SEC) and Binance. The commission accused of misconduct the company itself and its owner. The SEC had long been trying to get its hands on the massive crypto business and seems to have found a leverage this time.
The SEC might make it more difficult for crypto companies to work in the US. It might make regulations tougher. The commission is likely to do anything to decrease liquidity in digital assets markets, making their work complicated and expensive. This may not happen at once but looks rather probable, and investors can see this probability.
In the nearest future, the BTC will try to rise above 27,300 USD. We will see what happens next.
The capitalisation of the crypto market has dropped to 1.123 trillion USD. The BTC has returned to 46.4%, and the ETH has risen to 20.1%.
Gresham thinks crypto business must leave the US
Gresham lawyers think that the US are creating unfavourable legal conditions for the crypto business, which might make companies leave. The law firm suggests that crypto companies should consider bringing their businesses out of the US jurisdiction.
Crypto insurance started working in Bermuda
Insurance Bitcoin has organised two rounds of financing, raising 19 million USD total. The company is getting ready to be licensed by the Monetary Authority of Bermuda. The first objective will become full life insurance nominated in the BTC.
Attention! Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.
People hear a lot about blockchain technology in relation to cryptocurrencies like bitcoin, which rely on blockchain systems to keep records of financial transactions between people and businesses. But a crash in public trust in cryptocurrencies like TerraUSD – and therefore a massive drop in their market value – doesn’t mean their underlying technology is also worthless.
In fact, there are plenty of other uses for this type of system, which does not rely on centralized storage and where many people can participate securely, even if they don’t all know each other.
As a computer scientist exploring new technologies for future smart communication network technologies, I, along with many engineers and developers, have shown that blockchain technology is a promising solution to many challenging problems in trust and security of next-generation network-based applications. I see several ways blockchains are proving themselves useful that aren’t tied to cryptocurrency.
Supply chains
Modern global supply chains require a huge amount of information for the massive number of products being shipped around the world. They suffer from limits on data storage capacity, inefficient paper processes, disjointed data systems and incompatible data formats. These traditional centralized data storage methods cannot efficiently trace the origin of problems, like where a poor-quality product came from.
Storing information on a blockchain improves integrity, accountability and traceability. For example, IBM’s Food Trust uses a blockchain system to track food items from the field to retailers. The participants in the food supply chain record transactions in the shared blockchain, which simplifies keeping track.
Health care
Data ownership and privacy are top concerns in the health care industry. Current centralized systems cannot meet all the diverse needs of patients, health service providers, insurance companies and governmental agencies. Blockchain technology enables a decentralized system for access control of medical records where all stakeholders’ interests are protected.
Blockchain systems not only allow health care service providers to securely share patients’ medical records but also enable patients to track who has accessed their records and determine who is authorized to do so.
Banking and finance
Banking and finance benefit from integrating blockchain networks into their business operations. Instead of trying to develop cryptocurrencies with new or different capabilities, the financial sector has recognized that blockchain systems are a reliable way to store information about traditional currencies like the dollar, euro and yen, as well as financial products.
Blockchains provide consumers with the convenience of being able to monitor their transactions as they are processed, almost in real time from anywhere. Banks also benefit from blockchains, with the opportunity to conduct business between institutions more efficiently and securely.
Property records
Today’s manual process of recording property rights is burdensome and inefficient. Traditional paper documentation is time-consuming, labor intensive, not transparent and vulnerable to loss. Blockchain technology eliminates inconvenience, inefficiency and errors, and reduces the cost by migrating the entire process into a digital form.
Blockchain systems allow owners to trust that their deed is accurate and permanently recorded. Remote access is particularly meaningful to people living in areas without sufficient governmental or financial infrastructure.
Voting
Validating votes and maintaining voter privacy seem like conflicting requirements. Blockchain systems hold promise as a means to facilitate a fair and transparent modern voting system. Because it’s almost impossible to tamper with a blockchain-enabled voting system, it can maintain a transparent electoral process.
In the November 2018 midterm elections in West Virginia, a blockchain-based voting system was used and found to be secure and reliable.
Smart cities
A smart city embeds information and communication technologies into its facilities, infrastructure and services to provide its residents a convenient, intelligent and comfortable living space. A smart city is essentially a network of many devices that can communicate with each other to share data. Connected devices can include people’s smartphones, vehicles, electrical meters, public safety monitoring systems and even homes.
These systems have performance, security and privacy requirements that centralized information systems cannot handle. Blockchain is a key networking technology for building smart cities because it’s able to optimize operations, enhance security guarantees and increase mutual trust among participants.
The future of information technology is all about decentralization. Today’s centralized architecture fails to meet the increasingly diverse needs of people who want freedom to personalize their own services, control their digital assets and more easily participate in democratic processes. Blockchain is a key enabling technology for building any secure and durable decentralized information system.
