Is The Recent Regulatory Crackdown Bad For Crypto? UBS Thinks So

Traditional banks have warned cryptocurrency investors for years regarding the risks involved in crypto trading and investment. This time around, Swiss banking giant UBS believes that the recent regulatory crackdown could lead to the crypto bubble bursting.

Regulatory Crackdown Could Cause Crypto Bubble To Pop

Swiss banking giant UBS has warned its clients that the recent regulatory crackdown in the cryptocurrency market could pop bubble-like markets. Hence, advising its clients that Bitcoin is not suitable as a professional investment vehicle at the moment.

The bank made its thoughts known in a letter sent to its clients, pointing out that China’s latest crackdown has massively affected the prices of the cryptocurrencies. In recent weeks, the Chinese government has cracked down on crypto-related activities.

The Sichuan government became the latest province in China to ban cryptocurrency mining activities. The government cut off the power supply for 26 cryptocurrency mining farms and other smaller crypto miners. This led to a massive decline in Bitcoin’s hashrate over the past few weeks.

The move was followed by the People’s Bank of China directing banks and payment companies in the country to stop processing cryptocurrency payments. The move makes it almost impossible for Chinese traders to access cryptocurrencies easily.

In its note, UBS wrote, “Regulators have demonstrated they can and will crack down on crypto. So we suggest investors stay clear and build their portfolio around less risky assets.” The bank said it has warning investors regarding the regulatory crackdown and its pending effect on the cryptocurrency market.

UBS further cited the recent regulatory crackdowns in the UK and the US. In the UK, the FCA has toughened its stance on cryptocurrency exchanges, with Binance coming under fire and struggling to provide services to traders in the region.

Bitcoin’s Price Remains Below $35k

Bitcoin’s price remains in a bearish condition, down by nearly 50% from its all-time high. The leading cryptocurrency has been struggling in recent weeks and still remains below $40k.

BTC/USD chart. Source: FXEMPIRE

UBS said it doesn’t rule out the possibility of Bitcoin’s price rising again soon. However, it deems the investment as speculative and doesn’t advise professional investors to invest in Bitcoin. The recent regulatory crackdown could be needed to make the cryptocurrency market more professional and get rid of the bad elements in the space.

EtherLite Price Soars Following Trading Debut

The price of EtherLite has soared massively over the past few days. The rally came after the cryptocurrency started trading on cryptocurrency exchanges.

Ethereum Hardfork Ethereum Begins Trading

EtherLite started trading on cryptocurrency exchanges earlier this month. The cryptocurrency is a hardfork of Ethereum, the world’s second-largest crypto by market cap. The Ethereum hardfork token uses the proof-of-stake (PoS) consensus model, ensuring that it uses less energy than the proof-of-work protocols and provides investment opportunities for stakeholders.

EtherLite was created following a major hardfork on the Ethereum blockchain in May. Since its debut, the developers have been going through the various events on the roadmap. The cryptocurrency finally began trading on trading platforms earlier this month after an airdrop and an initial exchange offering.

EtherLite token (ETL) began trading at $0.2495 per coin. However, its price has since surged, rising by over 300% within the space of a few hours. The coin dipped for a brief period during the weekend. However, it regained its momentum and is now trading close to the $0.9 mark.

ETL/USD chart. Source: FXEMPIRE

The rally by ETL over the past few days means that the cryptocurrency has given investors over 300% return on investment within five days.

EtherLite Is Compatible With The Ethereum Virtual Machine (EVM)

The Ethereum blockchain is transitioning from a proof-of-work (PoW) to a PoS consensus model. However, EtherLite is already using the PoS protocol. Despite that, a key feature of the EtherLite is that it is compatible with the EVM.

The compatibility implies that developers can use the decentralized applications (dApps) and smart contracts hosted on the Ethereum blockchain on EtherLite. This feature is crucial to the ecosystem due to Ethereum’s position as the number one trading platform for dApps and smart contracts in the world.

The EtherLite blockchain seeks to be an improvement to Ethereum by offering low transaction and gas fees, staking features, and faster transaction speed. ETL holders can use the tokens for several activities, such as network governance.

REvil Strikes Again. Bitcoin And The Ransomware Problem

Ransomware hacking group REvil attacked some US companies over the weekend, demanding to be paid in Bitcoin. The leading cryptocurrency is increasingly used in Ransomware attacks, and this is causing problems for the authorities.

REvil Demands $70 Million In Bitcoin

Russian-based ransomware group brought down the networks of at least 200 United States companies over the weekend. The hacking group is now demanding $70 million in ransom and wants it to be paid in Bitcoin.

According to ABC News, the hacking group targeted software supplier Kaseya and proceeded to use its network-managed package to spread ransomware through its cloud. This resulted in over a million machines getting infected by the ransomware.

Following the attack, the Russian-based group is now demanding to be paid in Bitcoin in exchange for a decrypter for the infected machines. The group wrote, “On Friday, we launched an attack on [managed service providers]. More than a million systems were infected.”

United States President Joe Biden has already ordered investigations into the incidence. In a Reuters report, Biden said they were not certain of the origins of the hack. “The initial thinking was it was not the Russian government, but we’re not sure yet,” the president said.

Bitcoin’s Usage In Ransomware Is Increasing

The worrying aspect is the increasing use of Bitcoin in ransomware attacks. In May, the group attacked Colonial Pipeline, with the company faced to pay $5 million ransom after REvil restricted its functionality and services. The attack led to a gas crisis in the United States. Furthermore, JBS Holdings, the world’s largest meat company by sales, had to pay $11 million in ransom in May following an attack by REvil.

The use of Bitcoin (BTC) and other cryptocurrencies in ransomware attacks is one of the major reasons some authorities still shun the market. Despite that, the cryptocurrency market is evolving, and there is continuous research on how to abduct criminals that use cryptos to launder or steal funds.

BTC/USD chart. Source: FXEMPIRE

Bitcoin’s price is still trading below $35k, down by nearly 50% from its all-time high.

The Crypto Daily – Movers and Shakers – July 5th, 2021

Bitcoin, BTC to USD, rose by 1.69% on Sunday. Following a 2.55% gain on Saturday, Bitcoin ended the week up by 1.53% to $35,276.0.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $34,376.0 before making a move.

Steering clear of the first major support level at $33,705, Bitcoin rallied to a late intraday high $35,950.0.

Bitcoin broke through the first major resistance level at $35,303 and the second major resistance level at $35,925.

A bearish end to the day, however, saw Bitcoin fall back through the second major resistance level to end the day at sub-$35,300 levels.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bullish end to the week.

Crypto.com Coin and Ethereum rose by 4.49% and by 4.30% to lead the way.

Binance Coin (+3.15%), Cardano’s ADA (+3.99%), Chainlink (+3.92%), Litecoin (+3.37%), and Ripple’s XRP (+3.58%) also found strong support.

Bitcoin Cash SV (+2.06%) and Polkadot (+1.18%) trailed the front runners, however.

It was a bullish week for the majors in the week ending 4th July.

Bitcoin Cash SV (+15.66%), Crypto.com Coin (+20.53%) and Ethereum (+17.05%) led the way.

Binance Coin (+5.78%), Cardano’s ADA (+9.26%), Chainlink (+4.71%), Litecoin (+9.25%), Polkadot (+4.69%), and Ripple’s XRP (+7.40%) trailed the front runners, however.

In the week, the crypto total market rose to a Tuesday high $1,485bn before falling to a Friday low $1,319bn. At the time of writing, the total market cap stood at $1,441bn.

Bitcoin’s dominance rose to a Monday high 47.67% before falling to a Sunday low 45.42%. At the time of writing, Bitcoin’s dominance stood at 45.53%.

This Morning

At the time of writing, Bitcoin was down by 0.83% to $34,983.0. A bearish start to the day saw Bitcoin fall from an early morning high $35,280.0 to a low $34,851.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Polkadot bucked the trend early on, rising by 0.38%.

It’s been a bearish morning for the rest of the majors, however.

At the time of writing, Crypto.com Coin was down by 1.78% to lead the way down.

BTCUSD 050721 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move back through the $35,201 pivot to bring the first major resistance level at $36,025 into play.

Support from the broader market would be needed for Bitcoin to break out from Sunday’s high $35,950.0.

Barring a broad-based crypto rebound, the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $37,000 levels before any pullback. The second major resistance level sits at $36,775.

Failure to move back through the $35,201 pivot would bring the first major support level at $34,451 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$34,000 levels. The second major support level sits at $33,627.

The Crypto Daily – Movers and Shakers – July 4th, 2021

Bitcoin, BTC to USD, rose by 2.55% on Saturday. Following a 0.88% gain on Friday, Bitcoin ended the day at $34,682.0.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $33,350.0 before making a move.

Steering clear of the first major support level at $33,016, Bitcoin rallied to a late afternoon intraday high $34,948.0.

Bitcoin broke through the first major resistance level at $34,299 and the second major resistance level at $34,783.

Coming up against resistance at $35,000, however, Bitcoin fell back through the second major resistance level to sub-$34,500 levels before steadying.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Polkadot fell by 1.02% to buck the trend on the day.

It was a bullish day for the rest of the majors, however.

Crypto.com Coin rallied by 6.21% to lead the way, with Binance Coin (+3.82%) and Ethereum (+3.29%) finding strong support.

Bitcoin Cash SV (+2.00%), Litecoin (+2.40%), and Ripple’s XRP (+2.53%) also made solid gains.

Cardano’s ADA (+0.70%) and Chainlink (+1.42%) trailed the front runners, however.

In the current week, the crypto total market rose to a Tuesday high $1,485bn before falling to a Friday low $1,319bn. At the time of writing, the total market cap stood at $1,412bn.

Bitcoin’s dominance rose to a Monday high 47.67% before falling to a Thursday low 45.54%. At the time of writing, Bitcoin’s dominance stood at 45.90%.

This Morning

At the time of writing, Bitcoin was down by 0.28% to $34,585.3. A mixed start to the day saw Bitcoin rise to an early morning high $34,714.6 before falling to a low $34,555.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin and Polkadot found early support, rising by 0.17% and by 0.01% respectively.

It was a bearish start for the rest of the majors, however.

At the time of writing, Litecoin was down by 0.31% to lead the way down.

BTCUSD 040721 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $34,327 pivot to bring the first major resistance level at $35,303 into play.

Support from the broader market would be needed for Bitcoin to break back through to $35,000 levels.

Barring a broad-based crypto rebound, the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $37,000 levels before any pullback. The second major resistance level sits at $35,925.

A fall through the $34,327 pivot would bring the first major support level at $33,705 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$32,000 levels. The second major support level at $32,729 should limit the downside.

The Crypto Daily – Movers and Shakers – July 3rd, 2021

Bitcoin, BTC to USD, rose by 0.88% on Friday. Partially reversing a 4.30% slide from Thursday, Bitcoin ended the day at $33,816.0.

A bullish start to the day saw Bitcoin rise to an early morning intraday high $33,983.0 before hitting reverse.

Falling short of the first major resistance level at $34,842, Bitcoin fell to a mid-morning intraday low $32,700.0.

Steering clear of the first major support level at $32,493, however, Bitcoin revisited $33,900 levels before easing back.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Friday.

Cardano’s ADA rallied by 4.75% to lead the way, with Chainlink (+0.17%) and Ethereum (+2.29%) also joining Bitcoin in the green.

It was a bearish day for the rest of the majors, however.

Bitcoin Cash SV (-1.43%) and Crypto.com Coin (-1.24%) led the way down.

Binance Coin (-0.12%), Litecoin (-0.09%), Polkadot (-0.13%), and Ripple’s XRP (-0.34%) saw relatively modest losses, however.

In the current week, the crypto total market rose to a Tuesday high $1,485bn before falling to a Friday low $1,319bn. At the time of writing, the total market cap stood at $1,376bn.

Bitcoin’s dominance rose to a Monday high 47.67% before falling to a Thursday low 45.54%. At the time of writing, Bitcoin’s dominance stood at 45.94%.

This Morning

At the time of writing, Bitcoin was down by 0.26% to 33,727.0. A mixed start to the day saw Bitcoin rise to an early morning high $33,942.0 before falling to a low $33,716.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin bucked the trend early on, rising by 1.89%.

It was a bearish start for the rest of the majors, however.

At the time of writing, Cardano’s ADA was down by 0.65% to lead the way down.

BTCUSD 030721 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $33,500 pivot to bring the first major resistance level at $34,299 into play.

Support from the broader market would be needed for Bitcoin to break back through to $34,000 levels.

Barring a broad-based crypto rebound, the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $35,000 levels before any pullback. The second major resistance level sits at $34,783.

A fall through the $33,500 pivot would bring the first major support level at $33,016 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$32,000 levels. The second major support level at $32,217 should limit the downside.

Robinhood Holds $11.6 Billion In Crypto Ahead Of IPO. But Most Of It Is In Dogecoin

Robinhood is preparing to go public, and it has revealed the contents of its platform. The trading platform holds over $11 billion in cryptocurrencies. However, it said most of its cryptocurrency business is n reliant on Dogecoin.

Robinhood Reveals Crypto Holdings

Robinhood, one of the leading trading platforms in the world, is preparing to go public via an initial public offering (IPO). The company filed the S-1 form with the United States Securities and Exchange Commission (SEC) earlier this week.

According to the S-1 filing, Robinhood said its cryptocurrency business had experienced massive growth over the past year. At the moment, Robinhood holds $11.6 billion in cryptocurrencies, compared to the $480 million it held a year before.

The trading platform added that in Q1 2021, 17% of its overall revenue came from crypto trading. The company seeks to raise $100 million as part of its IPO process. Robinhood will list its shares on the NASDAQ stock exchange under the ticker symbol HOOD. Overall, Robinhood generated $959 million in revenue in 2020, with $7.5 million as profits. The rise in meme stocks and cryptocurrencies helped the company to record massive figures in revenue and profits last year.

Dogecoin Makes Up Most Of Robinhood’s Crypto Trading Volume

Despite holding over $11 billion in cryptocurrencies, Robinhood warned that most of it are in Dogecoin. Dogecoin is the leading meme coin, and its price has proven to be highly volatile. It surged by over 6,000% earlier this year, reaching an all-time high around $0.70 before declining to currently trade at $0.24 per coin.

DOGE/USD chart. Source: FXEMPIRE

The company said there are risks associated with trading its risk since it holds a substantial amount of its crypto in Dogecoin. Dogecoin accounted for 6% of Robinhood’s overall revenue last year.

Robinhood wrote, “If demand for transactions in Dogecoin declines and is not replaced by new demand for other cryptocurrencies available for trading on our platform, our business, financial condition and results of operations could be adversely affected.”

At the time of this report, DOGE is down by 3% over the past 24 hours and is trading above $0.2. This is despite Elon Musk tweeting about the cryptocurrency earlier this week.

The Crypto Daily – Movers and Shakers – July 2nd, 2021

Bitcoin, BTC to USD, fell by 4.30% on Thursday. Following a 2.38% decline on Wednesday, Bitcoin ended the day at $33,554.4.

Bearish from the start to the day, Bitcoin fell from an early morning intraday high $35,069.0 to a late intraday low $32,720.0.

Bitcoin fell through the first major support level at $34,294 and the second major support level at $33,526.

Steering clear of sub-$32,000 support levels, however, Bitcoin broke back through the second major support level to end the day at $33,550 levels.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Crypto.com Coin rose by 2.37% to buck the trend on the day.

It was a bearish day for the rest of the majors, however.

Ethereum led the way down, sliding by 7.45%.

Binance Coin (-5.25%), Chainlink (-6.44%), Litecoin (-5.03%), and Ripple’s XRP (-6.24%) also struggled.

Bitcoin Cash SV (-0.98%), Cardano’s ADA (-3.82%), and Polkadot (-3.30%) saw relatively modest losses, however.

In the current week, the crypto total market rose to a Tuesday high $1,485bn before falling to a Thursday low $1,327bn. At the time of writing, the total market cap stood at $1,373bn.

Bitcoin’s dominance rose to a Monday high 47.67% before falling to a Thursday low 45.54%. At the time of writing, Bitcoin’s dominance stood at 46.03%.

This Morning

At the time of writing, Bitcoin was up by 0.48% to $33,715.4. A mixed start to the day saw Bitcoin fall to an early morning low $33,428.0 before rising to a high $33,983.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bullish start to the day.

At the time of writing, Ethereum was up by 1.01% to lead the way.

BTCUSD 020721 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move back through the $33,781 pivot to bring the first major resistance level at $34,842 into play.

Support from the broader market would be needed for Bitcoin to break out from $34,500 levels.

Barring a broad-based crypto rebound, the first major resistance level and Thursday’s high $35,069 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test the second major resistance level at $36,130.

Failure to move back through the $33,781 pivot would bring the first major support level at $32,493 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$30,000 levels. The second major support level at $31,432 should limit the downside.

The Regulatory Uncertainty In India Is Affecting Cryptocurrency Exchanges

Cryptocurrency exchanges in India are finding it hard to conduct their businesses after some banks cut ties with them following the RBI’s directive. This latest development makes it tough for the exchanges to offer Rupee deposit and withdrawal services.

Indian Exchanges Are Struggling To Deal With Banks

Indian cryptocurrency exchanges are struggling to find viable, permanent payment solutions as banks in the country cut off ties with them. In a Reuters report earlier today, exchanges in the country are said to be struggling to provide payment solutions to their clients.

Industry sources told Reuters that the exchanges are seeking permanent solutions to this problem after banks and payment gateways started halting business activities with them. The struggle is a result of the central bank, the Reserve Bank of India (RBI), which had asked the banks and financial institutions to desist from supporting crypto transactions.

The move is controversial because cryptocurrencies are not banned in India. However, the RBI has always maintained that it doesn’t support cryptocurrencies because of their impact on financial stability. Hence, the reason why it had asked the banks to stay away from cryptocurrency exchanges.

Indian exchanges are seeking alternatives

Avinash Shekhar, a co-chief executive of ZebPay, one of India’s oldest crypto exchanges, said, “Banks are reluctant to do business. We have been talking to several payment partners, but the progress has been slow.”

Shekhar said the exchanges are already considering various options, including using smaller payment gateways, developing their own payment processors, delaying immediate settlements or offering only peer-to-peer transactions.

Despite the RBI’s directives, cryptocurrency investment and trading have grown tremendously in India over the past year. Recent reports revealed that Indian invested $40 billion in cryptocurrencies last year, up from $200 million in the previous year.

BTC/USD chart. Source: FXEMPIRE

The investments come despite Bitcoin’s price still in bearish momentum. Bitcoin is trading below $34,000, down by over 40% from its all-time price above $64,000.

Top U.S. Diplomat Hopes El Salvador, Imf Will Settle Bitcoin Row

El Salvador’s Congress has already approved President Nayib Bukele’s proposal to embrace the cryptocurrency, making the country the first in the world to adopt bitcoin as legal tender on Sept. 7.

The IMF said last week that discussions between its staff and El Salvador were ongoing, reiterating that it remained concerned over the decision.

Victoria Nuland, U.S. undersecretary for political affairs, had met on Wednesday with Bukele as part of her tour to the region.

El Salvador’s law means that bitcoin will be on an equal footing with the dollar, which became its official currency 20 years ago.

The Central American country is in talks with the IMF for a nearly $1 billion financing agreement.

(Reporting by Nelson Renteria in San Salvador; Writing by Stefanie Eschenbacher; Editing by Kim Coghill)

Graphic: Boom, Bust and Bewildered – Bitcoin’s Year So Far

By Tom Wilson

The cryptocurrency’s journey towards the investment and commercial mainstream has gathered pace, with major financial firms and companies embracing the emerging asset.

Such interest helped push it to a record high just shy of $65,000 in April. Yet in typically capricious fashion, it has since slumped by almost half.

At the halfway point of the year, the original and biggest cryptocurrency is up around 20% year-to-date. Here are some charts that tell the story of bitcoin’s year so far.

1/STILL VOLATILE

Wild price swings have been a defining feature of bitcoin throughout its near 13-year life. The first half of 2021 has been no different, despite hopes that greater liquidity in markets and stronger infrastructure would dampen swings.

Bitcoin more than doubled from the start of the year to its all-time high of $64,895 hit in mid-April, before slumping by over half in just five weeks as regulators across the world – especially China – cracked down on cryptocurrencies.

In May alone bitcoin lost 35%, in its worst month since 2018. Last week it fell under $30,000 for the first time since January, briefly wiping out its year-to-date gains.

Many larger investors also left the bitcoin market after prices spiked in the first quarter, with some shifting to gold, according to JP Morgan analyst Nikolaos Panigirtzoglou.

“What we found out in the second quarter was that actually demand for bitcoin is price sensitive,” he said. “Some institutional investors started getting out of bitcoin in April … they thought bitcoin prices were too high relative to gold.”

 

Bitcoin outpaced by meme stocks https://fingfx.thomsonreuters.com/gfx/mkt/xegvbzajxvq/Pasted%20image%201625044892455.png

 

2/BITCOINS OR ALTCOINS?

Bitcoin has attracted the lion’s share of the headlines so far this year. Yet many of its smaller digital currency rivals – known as the altcoins – have posted bigger gains.

Ether, the second-largest cryptocurrency, has nearly trebled so far this year, bolstered by a surge in the so-called decentralised finance sector. “DeFi” often uses its underlying blockchain technology to offer financial services without traditional middlemen such as banks.

Signs that the ethereum blockchain is gaining traction with mainstream financial firms has also fuelled gains.

XRP, the seventh-largest coin, has gained a similar amount. Other once-obscure coins such as dogecoin, started in 2013 as a joke, have also far outpaced bitcoin, with investors drawn to the prospect of quick gains. Dogecoin is up over 5,000% so far this year.

 

Bitcoins or altcoins? https://fingfx.thomsonreuters.com/gfx/mkt/xklvyxdqwpg/Pasted%20image%201625045597120.png

 

3/OUTPACED BY MEME STOCKS

Retail investors have embraced bitcoin this year, attracted by narratives that it can act as a hedge against inflation and as a future payment method.

Also driving gains has been a perception that it is a vehicle for quick gains – a perceived quality shared by another 2021 financial market phenomenon: “meme” stocks, whose value is propelled by social-media buzz.

GameStop Corp and AMC Entertainment Holdings, two of the leading meme stocks, soared in the first quarter along with bitcoin, fuelled by retail investors with spare cash and free time because of coronavirus stimulus lockdowns.

Yet the assets have since decoupled, with bitcoin’s gains for the year so far outpaced by GameStop – up more than 1,000% – and AMC Entertainment, which has surged over 2,500%.

“It’s just an extension of free money just going crazy and so I think that has somewhat you can see that rippling over into cryptocurrencies,” said Joel Kruger, a strategist at crypto exchange LMAX Digital.

 

Another wild ride: Bitcoin’s year so far https://fingfx.thomsonreuters.com/gfx/mkt/qzjvqxwnxpx/Pasted%20image%201625045877544.png

(Reporting by Tom Wilson; Editing by Pravin Char)

FCA Is Tightening Cryptocurrency Regulation In The U.K.

The Financial Conduct Authority is implementing tight regulations in the cryptocurrency space and cracking down on some crypto platforms. The tight regulations have seen more crypto firms withdraw their applications from the regulator.

FCA is Keeping an Eye on the Crypto Market

UK’s Financial Conduct Authority is keeping an eye on the cryptocurrency market after it was appointed anti-money laundering and counter-terrorist financing regulator of crypto-asset firms earlier this year.

Since it was appointed the major regulator of the cryptocurrency market in the U.K., the FCA has asked crypto firms to register with it before they can operate in the region. In the past six months, the British regulator has only registered six firms, and it is assessing dozens more.

Crypto platforms that registered with the regulator in December are eligible to receive the Temporary Registrations Regimes (TRR). With the TRR, they can continue offering their services while the FCA assesses their registration.

Crypto Companies are Feeling the Heat

The tight regulation in the U.K. is causing several companies discomfort in the United Kingdom. An FCA spokesperson has revealed that 64 applications have been withdrawn in less than a month. This was up from 51 that was recorded earlier this month.

According to the FCA, several businesses are withdrawing their applications because they don’t meet the required anti-money laundering standards. The cryptocurrency companies have to update their mode of operations to comply with the AML standards before they can reapply with the regulator.

Last weekend, the FCA warned Binance that it doesn’t have the authority to conduct regulated activities in the U.K. The regulator banned the exchange from conducting any regulated activity in Britain.

The ban on Binance led another crypto exchange Huobi to suspend its U.K. customers from accessing derivative services on its platforms. Overall, the FCA said it is working with other major regulators, notably in the U.S. and Asia, to ensure that crypto exchanges operate under the rules of law.

The cryptocurrency market could experience massive regulations in the coming months. The Bank of France governor recently urged the EU to quickly regulate the crypto market. Failure to do so could affect the EU’s monetary sovereignty. The regulators in various parts of the world believe it is important to regulate the crypto market as it continues to grow both in size and adoption.

BTC/USD chart. Source: FXEMPIRE

The crypto market is on a positive trend for the third consecutive day. Bitcoin’s price is up by less than 1% over the past 24 hours and is currently trading above $35k. The total cryptocurrency market cap has also gone up, from roughly $1.1 trillion last week to $1.4 trillion at the time of this report.

The Crypto Daily – Movers and Shakers – June 30th, 2021

Bitcoin, BTC to USD, rose by 4.14% on Tuesday. Reversing a 0.72% loss from Monday, Bitcoin ended the day at $35,922.4.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $34,226.8 before making a move.

Steering clear of the first major support level at $33,821, Bitcoin rallied to a late afternoon intraday high $36,600.0.

Bitcoin broke through the first major resistance level at $35,243 and the second major resistance level at $35,992.

A bearish end to the day, however, saw Bitcoin fall back through the second major resistance level to end the day at $35,920 levels.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Tuesday.

Bitcoin Cash SV slid by 8.94%, with Polkadot (-0.85%) also seeing red.

It was a bullish day for the rest of the majors, however.

Crypto.com Coin and Ripple’s XRP rallied by 8.66% and by 9.64% to lead the way.

Binance Coin (+3.74%), Cardano’s ADA (+3.57%), Chainlink (+3.77%), Ethereum (+3.95), and Litecoin (+4.71%) also found solid support.

Early in the week, the crypto total market fell to a Monday low $1,342bn before rising to a Tuesday high $1,485bn. At the time of writing, the total market cap stood at $1,432bn.

Bitcoin’s dominance rose to a Monday high 47.67% before falling to a Tuesday low 46.26%. At the time of writing, Bitcoin’s dominance stood at 46.90%.

This Morning

At the time of writing, Bitcoin was down by 0.34% to $35,802.0. A mixed start to the day saw Bitcoin rise to an early morning high $35,968.0 before falling to a low $35,802.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bearish start to the day.

At the time of writing, Crypto.com Coin was down by 2.12% to lead the way down.

BTCUSD 300621 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $35,583 pivot to bring the first major resistance level at $36,939 into play.

Support from the broader market would be needed for Bitcoin to break out from Tuesday’s high $36,600.0.

Barring a broad-based crypto rebound, the first major resistance level and resistance at $37,000 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $40,000. The second major resistance level sits at $37,956.

A fall through the $35,583 pivot would bring the first major support level at $34,566 into play.

Barring an extended sell-off on the day, Bitcoin should steer clear of sub-$34,000 levels. The second major support level sits at $33,210.

Exclusive-ICAP to Launch Crypto Trading Platform with Fidelity, Standard Chartered

By Saikat Chatterjee and Tom Wilson

Institutional investors have warmed to the crypto sector this year and the platform, which is due to launch in the second half of the year, will initially allow them to trade bitcoin, with second-largest token ether to be added later.

TP ICAP, along with Fidelity Digital Assets and Zodia Custody, launched by the venture capital arm of Standard Chartered and Northern Trust in December, is seeking to make crypto trading akin to that of traditional assets like stocks, bonds and foreign exchange.

The platform will offer post-trade infrastructure with a network of digital asset custodians, the consortium said in a statement, and separate execution and settlement, something widely seen as key to greater involvement of larger risk-averse investors in the emerging crypto market.

At present, crypto execution and custody services are usually rolled up in one venue, increasing credit risks. Amsterdam-based Flow Traders will provide liquidity to the platform.

TP ICAP has broadened its footprint in global capital markets by offering new data and analytics services and rolling out new products.

Dedicated crypto funds have seen record flows this year but major banks offering access must balance growing interest with the compliance headaches long associated with the cryptocurrency sector and increasing scrutiny by regulators.

Still, the move is the latest endorsement of the sector by Standard Chartered, whose venture capital unit said earlier this month it will set up a separate crypto brokerage and exchange platform in Britain and Europe, with Hong Kong’s BC Technology Group.

“Investor interest in this new asset class has exploded dramatically in the last six to eight months,” Duncan Trenholme, co-head of digital assets at ICAP, told Reuters. “In most of our conversations with clients, they want a separation of custodial roles from execution capabilities which is opposite to the models that exist currently.”

TP ICAP launched bitcoin futures and options on CME in 2019 and now plans to launch other derivative products including total return swaps and non-deliverable forwards.

The platform is awaiting approval by Britain’s financial regulator. Neither Standard Chartered nor Fidelity Investments have invested in the platform, ICAP said.

(Reporting by Saikat Chatterjee and Tom Wilson; Editing by Rachel Armstrong and Kirsten Donovan)

Cathie Wood’s Ark Invest Joins The US Bitcoin ETF Race

The number of companies seeking to launch the first Bitcoin exchange-traded fund in the United States has increased after Cathie Wood’s Ark Invest filed with the Securities and Exchange Commission (SEC) yesterday.

Ark Invest Wants To Launch a Bitcoin ETF

Ark Invest, the investment firm run by longtime Bitcoin bull Cathie Wood has officially filed with the US SEC to launch a Bitcoin ETF. The investment firm filing with the SEC brings the total number of entities seeking to launch a Bitcoin ETF to nine.

According to the SEC filing published yesterday, Ark Invest is working with 21Shares to launch the Bitcoin ETF. The Bitcoin fund would trade under the ticker symbol “ARKB” if the US regulator approves it. The fund is seeking to track the performance of the leading cryptocurrency and allow institutional investors to gain access to Bitcoin.

In the filing, Ark Invest acknowledged the risk factor associated with Bitcoin and its volatile price. The filing said Bitcoin’s market value is not tied to any specific asset, government or company. Its valuation is based on the future expectations for the value of the Bitcoin network, the number of transactions, and the cryptocurrency’s overall use as an asset. Thanks to these features, Ark Invest recognizes that there is huge volatility in Bitcoin’s price. As such, it warned investors that they could experience significant profits or losses. They could also experience volatility in the Trust’s holdings, depending on the valuation of bitcoin.

US SEC Still Delaying Bitcoin ETF Decisions

The US SEC has postponed four Bitcoin ETF decisions so far this year. The regulator has delayed its decision on the VanEck Bitcoin ETF application twice this year while it has done the same for the Valkyrie and the WisdomTree proposals.

Despite that, the US regulator now has to review, approve or reject nine Bitcoin ETF proposals. VanEck and WisdomTree have also filed Ether ETF proposals. The Ether ETFs would allow institutions to gain access to the second-largest cryptocurrency by market cap.

BTC/USD chart. Source: FXEMPIRE

At the time of this post, Bitcoin (BTC) has surpassed the $35 resistance point for the first time in days. The leading cryptocurrency has been performing well since the start of the year, and it is now up by nearly 8% over the past seven days.

Bitcoin Shrugs Off UK Crackdown on Major Crypto Exchange Binance

By Tom Wilson

In a notice dated Friday, the Financial Conduct Authority (FCA) said Binance could not conduct any regulated activity in Britain and warned consumers about the platform, which is coming under growing scrutiny globally.

Bitcoin fell 1.8% to $34,085. It has fallen about 18% in the last 13 days, its losses sparked by China tightening curbs on the cryptocurrency sector.

The FCA’s move came as regulators across the world bolster oversight of the crypto sector. Their concerns include its potential for use in money laundering and other illegal activities, as well as risks to consumers.

Binance, one of the world’s biggest crypto exchanges, last month withdrew an application to register with the FCA, which oversees anti-money laundering rules, a spokesperson at the watchdog said. He declined to say why.

A Binance spokesperson declined to comment on its interactions with the FCA. He said Binance works closely with regulators and law enforcement “to further the security and sustainability in the industry while providing the best services and protection to our users”.

Binance has been targeted by regulators across the world in recent months.

“The FCA is aligning with other major regulators, notably in the U.S. and Asia,” said Alpay Soytürk, compliance head at Spectrum Markets, a securitised derivatives trading venue.

(Reporting by Tom Wilson; Editing by Chizu Nomiyama)

The Elon and Jack Show. The Crypto Space Is Anticipating This Discussion

Twitter CEO Jack Dorsey and Tesla boss Elon Musk will have a discussion on Bitcoin next month. The event has gained attention in the cryptocurrency space as crypto enthusiasts look forward to the discussion.

Musk Jack Dorsey To Talk About Bitcoin

The CEO of Tesla, Elon Musk, and Twitter boss Jack Dorsey have confirmed that they would discuss Bitcoin in an event in July. Dorsey initiated the idea, stating that he would love to sit and discuss Bitcoin’s issues with Elon Musk. The Tesla boss responded that he would attend the event and talk to Dorsey about the leading cryptocurrency.

A spokesperson for the Bitcoin event has now confirmed that the event will indeed take place. Musk responded to Dorsey’s tweet supporting the event, suggesting that the event name might stand for “bicurious.” The Twitter boss then suggested that the two should have a conversation at the event, dubbing it “THE talk.”

Musk agreed to this by saying, “For the Bitcurious? Very well then, let’s do it.” The event will see Dorsey talk about Bitcoin with Musk. Dorsey has always maintained strong support of the leading cryptocurrency and is an advocate of the Lightning Network, a solution designed to make the Bitcoin network faster.

Musk and Dorsey Have Different Relationship With Bitcoin

Musk, on the other hand, has a complicated relationship with the leading cryptocurrency. Tesla has suspended its acceptance of Bitcoin as a payment option for its electric vehicles, citing Bitcoin’s massive nonrenewable energy usage and its effect on the environment. However, the company still holds roughly $2 billion in Bitcoin, and Musk has pointed out that they don’t plan to sell anytime soon.

Jack Dorsey has focused solely on Bitcoin and has ignored other cryptocurrencies. Elon Musk, on the other hand, has advocated for other cryptocurrencies such as Dogecoin, a memecoin based on the Shiba Inu breed of dog.

BTC.USD chart. Source: FXEMPIRE

The event could play a factor in Bitcoin’s price prediction over the coming weeks. Bitcoin’s price is up by 4.5% over the past 24 hours, and it is trading above $34k at the time of this report.

The Crypto Daily – Movers and Shakers – June 28th, 2021

Bitcoin, BTC to USD, rallied by 7.41% on Sunday. Following a 2.44% gain on Saturday, Bitcoin ended the week down by 2.49% to $34,744.0.

A mixed start to the day saw Bitcoin fall to an early morning intraday low $32,066.0 before making a move.

Steering clear of the first major support level at $30,821, Bitcoin rose to a final hour intraday high $34,794.0.

Bitcoin broke through the first major resistance level at $33,276 and the second major resistance level at $34,196 to end the day at $34,700 levels.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Sunday.

Polkadot bucked the trend on the day, falling by 3.74%,

It was a bullish day for the rest of the majors, however.

Chainlink (+8.53%), Crypto.com Coin (+8.60%), and Ethereum (+8.51%) led the way.

Bitcoin Cash SV (+5.52%), Cardano’s ADA (+6.81%), Litecoin (+4.66%), and Ripple’s XRP (+5.04%) also found strong support.

Binance Coin rose by a more modest 3.99%, however.

It was also a bearish week for the crypto markets.

Polkadot tumbled by 25.34% to lead the way down, with Ripple’s XRP sliding by 16.30%.

Binance Coin (-14.19%), Bitcoin Cash SV (-14.94%), Chainlink (-15.03%), Ethereum (-11.51%), and Litecoin (-14.33%) also saw heavy losses.

Cardano’s ADA (-6.18%) and Crypto.com Coin (-1.92%) saw relatively modest losses in the week, however.

In the week, the crypto total market rose to a Monday high $1,488bn before falling to a Tuesday low $1,127bn. At the time of writing, the total market cap stood at $1,367bn.

Bitcoin’s dominance fell to a Monday low 45.03% before rising to a Wednesday high 48.26%. At the time of writing, Bitcoin’s dominance stood at 47.76%.

This Morning

At the time of writing, Bitcoin was up by 0.17% to $34,804.0. A mixed start to the day saw Bitcoin rise to an early morning high $34,881.0 before falling to a low $34,479.4.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Cardano’s ADA (-0.04%), Chainlink (-0.33%), and Litecoin (-0.55%) saw modest losses early on.

It was a bullish start for the rest of the majors, however.

At the time of writing, Crypto.com Coin was up by 3.03% to lead the way.

BTCUSD 280621 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $33,868 pivot to bring the first major resistance level at $35,670 into play.

Support from the broader market would be needed for Bitcoin to break back through to $35,000 levels.

Barring a broad-based crypto rebound, the first major resistance level would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $38,000. The second major resistance level sits at $36,596.

A fall through the $33,868 pivot would bring the first major support level at $32,942 into play.

Barring an extended sell-off on the day, Bitcoin should steer clear of the second major support level at $31,140.

Financial Watchdog Orders Crypto Exchange Binance to Stop Regulated Activities in UK

The exchange would not be allowed to undertake any regulated activities without the prior written consent of the FCA, the watchdog said in a statement https://www.fca.org.uk/news/news-stories/consumer-warning-binance-markets-limited-and-binance-group dated Saturday.

“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK,” the FCA statement said.

Britain’s move comes at a time when Binance, one of the world’s largest cryptocurrency exchanges, is under scrutiny by regulators in other countries, including the United States and Germany.

Officials from the U.S. Justice Department and Internal Revenue Service who probe money laundering and tax offenses have sought information from individuals with insight into the company’s business, Bloomberg reported last month.

In April, Germany’s financial regulator BaFin warned the exchange risked being fined for offering digital tokens without an investor prospectus.

(Reporting by Derek Francis in Bengaluru; Editing by Toby Chopra)

The Crypto Daily – Movers and Shakers – June 27th, 2021

Bitcoin, BTC to USD, rose by 2.44% on Saturday. Partially reversing an 8.86% slide from Friday, Bitcoin ended the day at $32,355.7.

A mixed start to the day saw Bitcoin rise to a mid-morning intraday high $32,661.0 before hitting reverse.

Falling short of the first major resistance level at $34,299, Bitcoin slid to a late morning intraday low $30,206.0.

Steering clear of the first major support level at $30,068, Bitcoin move back through to $32,300 levels and into the green.

A final hour rally delivered most of the upside on the day.

The near-term bullish trend remained intact in spite of the latest slide back to sub-$30,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day for the majors on Saturday.

Chainlink (+0.21%), Ethereum (+1.11%), Litecoin (+1.47%), and Ripple’s XRP (+0.81%) saw relatively modest gains on the day, supported by a final hour recovery.

It was a bearish day for the rest of the majors, however.

Bitcoin Cash SV and Crypto.com Coin fell by 4.91% and by 4.37% to lead the way down.

Binance Coin (-0.42%), Cardano’s ADA (-0.05%), and Polkadot (-1.56%) also saw red.

In the current week, the crypto total market rose to a Monday high $1,488bn before falling to a Tuesday low $1,127bn. At the time of writing, the total market cap stood at $1,284bn.

Bitcoin’s dominance fell to a Monday low 45.03% before rising to a Wednesday high 48.26%. At the time of writing, Bitcoin’s dominance stood at 47.21%.

This Morning

At the time of writing, Bitcoin was up by 0.33% to $32,462.2. A mixed start to the day saw Bitcoin fall to an early morning low $32,066.0 before rising to a high $32,485.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bullish start to the day.

At the time of writing, Bitcoin Cash SV was up by 5.01% to lead the way.

BTCUSD 270621 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $31,741 pivot to bring the first major resistance level at $33,276 into play.

Support from the broader market would be needed for Bitcoin to break out from Saturday’s high $32,661.0.

Barring a broad-based crypto rebound, the first major resistance level and resistance at $33,500 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $35,000. The second major resistance level sits at $34,196.

A fall through the $31,741 pivot would bring the first major support level at $30,821 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of the second major support level at $29,286.