China's share of bitcoin mining slumped even before Beijing crackdown, research shows

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Reuters 15 July, 2021 - 02:17am 35 views

Is Crypto in a bear market?

Cryptocurrencies are likely in a bear market, but it may be a short one. According to Coindesk's latest (June) quarterly review, we are more than 76 days into a bear market (defined as a drop of at least 20%, followed by at least 90 days in which the price does not return to its previous high or low). Moneyweb.co.zaBitcoin's bear market could be a short one

By Will Feuer

July 14, 2021 | 1:54pm | Updated July 14, 2021 | 2:25pm

Bitcoin, which was once touted by crypto enthusiasts and wealth managers alike as a hedge against inflation, has continued to fall in recent weeks even as new data has shown costs are soaring.

On Tuesday, the Labor Department announced that its Consumer Price Index, which measures a basket of goods and services as well as energy and food costs, jumped 5.4 percent in June from a year earlier, the fastest pace in 13 years.

US stocks tumbled at the open while bitcoin remained flat and tumbled steadily throughout the morning and afternoon.

Even on Wednesday, after several major players on Wall Street voiced concern that inflation won’t be a temporary blip, but rather that elevated prices are here to stay, bitcoin remained at almost the same level as before the CPI announcement, trading at around $32,800 per coin.

The recent wave of hot inflation data goes back to March, when the CPI clocked in at 2.6 percent from a year earlier. In April, that figure rose to 4.2 percent, then 5.0 percent and 5.4 percent in May and June.

Briefly in March, bitcoin appeared to be rising along with the CPI numbers, strengthening the argument that it protects holders from a weakening US dollar. The crypto peaked in mid-April at more than $62,000 per coin.

But then, as inflation concerns continued to get worse throughout the spring, bitcoin reversed course, cutting its price in half just as Americans’ purchasing power was declining rapidly, which is when many predicted bitcoin would prove to be most valuable.

“Bitcoin isn’t behaving like an inflation hedge anymore and will continue to remain heavy over expectations over higher yields,” Ed Moya, senior equity analyst at foreign exchange firm Oanda, said Tuesday in a note to clients.

To be sure, some have said that bitcoin needs more time for its price to reflect rising inflation. David Morris, a columnist at CoinDesk, argued that now could be a great time to buy bitcoin if inflation continues to rise.

“If you’re losing faith in the Fed (or didn’t have much to begin with), there’s increasingly strong empirical evidence that bitcoin should be on your shopping list,” he wrote.

Read full article at Reuters

Bitcoin trades lower as a digital Euro is considered

Fox Business 15 July, 2021 - 06:04am

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Chamber of Digital Commerce President Perianne Boring says the sale shows 'the ideal use of cryptocurrencies and its underlying technology of blockchains for payments,' noting it's more efficient and secure. 

A digital version of the Euro could get the green light as soon as Wednesday.

It is part of a multi-year project, according to Reuters.

The digital euro will likely be a digital wallet that citizens of the euro zone can keep at the ECB and would be the electronic equivalent of banknotes and coins.

Its another step by central banks to meet growing demand for electronic means of payment and join the ranks of digital currencies such as Bitcoin or Facebook's proposed Diem.

One difference is the ECB cannot run out of euros, making its digital currency safer than any private sector counterpart.

In other cryptocurrency news, Paraguay has proposed a bitcoin law includes crypto registration, according to Coindesk.

The bill reportedly would include regulation of ownership and registration of crypto as well as crypto mining operations.

A new bitcoin law expected to be introduced, will require cryptos to be registered with the country’s Undersecretariat of State Taxation, Decrypt reported.

The bill would also regulate crypto mining as well as trading through exchanges and peer-to-peer marketplaces where participants will be required to register.

It would be different than El Salvador's plan, which last month approved its own version of a Bitcoin Law that would make the crypto legal tender alongside the U.S. dollar.

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Bitcoin, Ethereum, Dogecoin Find Stability As These Altcoins Continue Their Run - Benzinga

Benzinga 15 July, 2021 - 06:04am

Major cryptocurrencies traded in the green on Wednesday night with the global cryptocurrency market cap up 1.46% at $1.35 trillion.

What Happened: Bitcoin (CRYPTO: BTC) traded 1.41% higher at $32,959.42 over 24 hours at press time. The apex cryptocurrency was down 1.08% for the week.

Over 24 hours, Ethereum (CRYPTO: ETH) was up 4.36% at $1,993.74, marginally below the $2,000 psychologically important level. For the week, ETH traded 12.59% lower at press time.

Dogecoin (CRYPTO: DOGE) traded 2.09% higher at $0.20 at press time over 24 hours. The cryptocurrency traded 8.28% lower over a seven-day trailing basis.

DOGE gained 0.18% against BTC over 24 hours and fell 2.48% against ETH in the same time frame.

Axie Infinity’s (CRYPTO: AXS) rise continued unabated; the cryptocurrency of the gaming and non-fungible token project shot up 19.09% over 24 hours to $24.36 to emerge as the top gainer on Wednesday. For the week, AXS has soared 78.44%. 

See Also: How To Buy Axie Infinity (AXS)

AXS traded 18.10% and 14.97% higher against BTC and ETH, respectively. 

Other notable gainers of Wednesday were Enjin Coin (CRYPTO: ENJ), Decentraland (CRYPTO: MANA), and Solana (CRYPTO: SOL).

On a 24-hour basis, ENJ rose 12.63% to $1.33, MANA was up 12.54% to $0.724 and SOL traded 9.6% higher at $31.35. 

Why It Matters: Jerome Powell, the chair of the Federal Reserve, said on Wednesday that the U.S. central bank was unlikely to taper down monetary stimulus in the short term as he does not see “substantial further progress” on economic recovery.

Powell’s comments buttressed Bitcoin trading on Wednesday along with giving a boost to more traditional assets like mega-cap stocks, with S&P 500 closing marginally in the green.

“What helped cryptocurrencies turn positive was the broad-based rally on Wall Street,” said Oanda’s senior market strategist Edward Moya, reported CoinDesk.

See Also: Is Bitcoin On Track To Dip Below $30,000?

Analysts are exploring metrics like the spent output profit ratio or SOPR, which is derived by calculating the average price at which bitcoin was sold by the average purchase price. A value of 1 indicates owners of the asset are in profit and below 1 implies sellers sold at a loss.

“In a bull market, as we expect we are in today, a SOPR below 1 can indicate a local bottom as sellers are reluctant to sell at a loss,” said David Grider, head of digital assets at FundStrat, as per a CoinDesk report.

Additionally, Powell touched on stablecoins, a digital dollar, and central bank digital currencies at his half-yearly testimony before the House Financial Services Committee.

“Stablecoins certainly have some advantages in terms of faster payment systems and have some attributes of CBDCs, but there are some risks with stablecoins right now," the Fed chair said.

Read Next: NFT Growth Remains Strong As Shown By Axie Infinity, OpenSea, CryptoPunks, Says Analyst

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