(*_ The crisis surrounding China’s second largest property developer, Evergrande Group, triggered a sell-off in the cryptocurrency markets at the start of the week. Below is a summary:
Dubai World Trade Centre Authority will add support for cryptocurrency trading
On Wednesday, the UAE’s Dubai World Trade Centre Authority and the Securities and Commodities Authority reached an agreement that allows the listing, regulation, and trading crypto-assets within the country.
Helal Al Marri, Director-General at the DWTCA, explained that due to the rapid growth of the industry, it was necessary for the DWTCA to provide support for crypto products like NFTs. These products are expected to play a significant role in the future financial world. It is also expected that the SCA would provide regulatory guidance to assist in the adoption (issuing, and listing) these assets by all entities who wish to operate crypto assets within the DWTCA’s scope.
The FCA would have to supervise, inspect and investigate entities operating within the zone. In July 2021), the UAE stated that it would launch its CBDC by 2023..
Suex is sanctioned for illegal operations
The US Treasury Department made a unique move on Tuesday by securing Suex’s crypto exchange. It was concerned about Suex’s connection to ransomware offenders and money laundering. Because the exchange had processed ransom payments for at least eight ransomware variations, it was sanctioned.
The sanctions against the Czech-based crypto exchange come at a time President Biden’s government is struggling to get a grip on crypto and the laws surrounding it. Although ransomware attacks have historically been linked to extremist groups, some cases may involve nation-states. The Treasury Department discovered earlier this year that Evil Corp, a Russian intelligence agency, had connections to Evil Corp, a ransomware organization. This group was responsible for the ransom attack against Colonial Pipeline.
Further, the Treasury Department stated that although cryptocurrencies are legal, the technology used to facilitate payments in these currencies can be easily exploited by rogue actors to make large sums of money. Ransomware attacks have affected several institutions in the US in recent months. These ransomware attacks have caused losses of $400 millions in 2020, and more than 300% growth from 2019..
FTX expands its presence to Gibraltar
The crypto exchange FTX had a good week. On Monday, the exchange announced that it has been granted the legal go-ahead by the Bahamas to operate through its subsidiary. This was in addition to last week’s announcement about a similar arrangement with Gibraltar.
FTX was granted a license by the Gibraltar Financial Services Commission to operate as a provider of DLT services through its Zubr Exchange subsidiary. The approval was conditional on the resolution of issues raised by the regulatory feedback. Sam Bankman-Fried, CEO of FTX, had praised the move at the time as one that would push FTX toward compliance and trust for all its users worldwide.
In Bahamas, FTX’s affiliate, FTX digital markets, was registered with the securities commission as a digital asset company. Ryan Salame, the chief of FTX Digital markets, was announced. The company’s headquarters are in Nassau, Bahamas.
CEO bankman-fried has taken a positive approach to regulatory requirements. In recent days, he has been more pro-regulation. He argued that the absence of regulations would lead to illegal activity (scams), which would make it harder for regulators to crack down further on the industry.
Coinbase calls it quits on Lend program plans
Crypto exchange Coinbase had planned the scheduled release of a new Lend feature for months now, but the SEC intervention may have well led the Lend product to its demise. Coinbase announced that it will stop the launch of the Lend feature. It is currently trying to understand the regulatory obstacles. According to Coinbase, the exchange stated that hundreds of thousands of customers had signed up for the program even before launch.
The exchange assured its customers that they would continue to find innovative, trusted products and programs for them. The Coinbase decision came as Gary Gensler, the SEC chair, takes a more firm approach to crypto.
Gensler stated to the US Senate Banking Committee, that the crypto setup needed to speak to regulators. Gensler also pointed out that there was a high likelihood that some tokens could be securities due to the variety of these platforms. These securities must be registered under the law. The SEC was in agreement that Lend by Coinbase was a security feature, but Coinbase disagreed.
Turkish President declares war against crypto
Bloomberg reported that Recep Tayyip Erdan, the Turkish President, stated that Turkey was at war over cryptocurrencies. He also announced that Turkey had taken several measures to simplify their use, even though the country is preparing to launch its digital Lira. While the Turkish president spoke to students in 81, he said that he has no issues with the widespread use of digital assets. However, he stressed that the Turkish Lira’s sovereignty would need to be maintained.
Erdogan said that the country’s currency was a part of its national identity. Turkey is hostile to crypto. The Turkish central bank had banned crypto payments in April.
The main reasons for the ban were market volatility, regulatory uncertainty, and criminal activity associated with crypto. One month later, the Turkish government placed all cryptocurrency asset providers under existing anti money laundering and terrorist financing regulations. This was as per a Presidential Decree.
Crypto Market Turning Point –
Roughly six months ago, bitcoin and a number of digital assets reached all-time highs and the crypto economy crested above $3 trillion in value. Today is a different story as a great majority of cryptocurrencies are down between 57% to over 80% against the U.S. dollar.
While Cryptos Are Down From the ATHs, 2020 Holders Are Still in the Green
On November 9, 2021, or 196 days ago, the crypto economy was valued at over $3 trillion, and today it’s worth roughly 56% less at $1. 31 trillion. Six months ago, bitcoin (BTC) touched an all-time high (ATH) at $69K per unit and today, it’s down more than 57% in USD value.
The second leading asset, ethereum (ETH), has lost 59. 85% after reaching $4,847. 57 per ether six months ago. The fourth-largest crypto asset BNB is down 52. 65% after tapping $689 per unit. XRP is not even close to its January 07, 2018 ATH the digital asset tapped four years ago when it reached $3. 40 per coin. XRP today is down more than 87% against the U.S. dollar from that point in time.
The tenth-largest crypto asset today, dogecoin (DOGE) is down 88.8% from the meme coin’s ATH a year ago. While prices are down since 2021’s high, crypto investors that purchased digital assets in 2020 have seen it their cryptocurrencies rise. For instance, the price of bitcoin (BTC) since 2020 is up 303. 28% and ethereum (ETH) is up 465.70%.
The same is true for many of today’s top coins. Binance’s BNB token has jumped 173. 53% in two years and cardano (ADA) is up 443.83%. Gains are even bigger for those who purchased crypto assets in 2017 as bitcoin (BTC) is up 1,294. 85% since that year. The second leading crypto asset ethereum (ETH) is up 8,985. 15% since 2017 against the U.S. dollar.
XRP holders have seen the most gains since 2017 as XRP has skyrocketed in value by 31,346. 47% during the last four years. 2017 was a bullish time for crypto investors as BTC hit an all-time price high that year at $20K per unit and 2021 was similar in terms of bullish price values.
Crypto’s Strong Correlation With Stocks, 289-Day Bear Runs, and Further Capitulation
Market strategists believe that most bear markets last less than 9.5 months. Moreover, in recent times cryptocurrencies have been correlated with equities markets and more specifically stock indexes like Nasdaq 100 and the S&P 500. This could indicate that the crypto bear market will continue until the stock market bear runs are over.
Bank of America strategists recently detailed that the S&P 500 has recorded a total of 19 bear market cycles. The average duration for each cycle was roughly 289 days and the S&P 500’s average bottom was 37.3% lower than the ATH.
If cryptocurrencies follow the same pattern, it could mean that bearish sentiment could continue for three more months. This is assuming history repeats itself and digital assets follow the current correlation to equities. Unfortunately for crypto investors, S&P 500’s average drop of 37.3% is nothing like the lows the crypto economy has seen during extreme capitulation. Three bitcoin (BTC) bottoms have been more than 80% lower than the ATHs recorded during the bull cycle.
While the top ten crypto assets are down 57% to over 80% already, prices could go much lower. An 80% drawdown from BTC‘s $69K high would be $13,800 per unit and an 80% cut in ether’s ATH value would result in a price of $970.
Currently, crypto assets like BTC and ETH are seemingly at a turning point that will take the value one of three ways. The price of bitcoin could stabilize in this area for quite some time. However, it could rise back into a bullish scenario or drop even further, resulting in more capitulation.
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What do you think about crypto assets being down 57% to over 80% lower than their price highs? Please comment below to let us know your thoughts on this topic.
Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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Bitcoin, Technical Analysis: Crypto Bears Hold BTC Below $30,000
Bitcoin was lower for a second consecutive session, as bears maintained recent pressure on crypto markets. This pressure also saw ETH move lower, as it continued to trade under $2,000 during hump-day.
The world’s largest cryptocurrency once again traded below $30,000, as bears continue to maintain a chokehold on prices.
As of writing, BTC/USD is trading at $29,502. 71, which is roughly 1% higher than yesterday’s low of $28,786.59.
Wednesday’s movement in bitcoin is ultimately a continuation of yesterday’s move, with prices now consolidating at its current range.
This range sees prices hovering at a floor of $28,800, with a resistance level of $30,500, which has not been truly broken since early May.
In addition to the price ceiling, relative strength is also tracking at a resistance point of its own, which is under 40.
Until we see a move past this point, then we will likely see a continuation of current price consolidation.
ETH moved to a lower low during today’s session, as its own price continues to trade under a key point of $2,000.
The world’s second largest cryptocurrency dropped below its support level on Tuesday, hitting an intraday low of $1,920. 69 in the process.
This saw ETH/USD about $30 below its support level at $1,950, which has mostly held firm during this latest round of bearish activity.
Overall, ethereum is now in its second week trading at its current floor. After the massive declines experienced in April and May, consolidation was to expect.
Looking at the chart, you can see that the 10-day moving average in red is moving sideways, which is a strong indication of a future change in momentum.
Traders will now wait to see if bulls will use this signal as an indicator, prior to re-entering the market.
Will ETH‘s $1,950 support level be broken this week? Please leave your comments below.
Eliman has a unique perspective on market analysis, having been a broker director, retail trading educator, and market commentator for Crypto, Stocks, and FX.
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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage caused by or alleged to have been caused by the use or reliance of any content, goods, or services mentioned here.
Will Terra recover? Expert analysis, price prediction and where to purchase Terra
The price of Terra’s token LUNA was as $100 per 1 LUNA in April, but it crashed to near zero last week. TerraUSD (UST), Terra’s algorithmic stablecoin lost its peg against the US dollar. This occurred against the backdrop of a significant crypto market decline, which sent Bitcoin’s price down by over 20%. Now that…
The price of Terra’s token LUNA was as $100 per 1 LUNA in April, but it crashed to near zero last week. TerraUSD (UST), Terra’s algorithmic stablecoin lost its peg against the US dollar.
This occurred against the backdrop of a significant crypto market decline, which sent Bitcoin’s price down by over 20%.
Now that Terra has lost 99% of its value, is there any hope for recovery? You’ll find out more about the efforts of its founders to get it running again.
If you’re attracted by unique features and want information on where and how to purchase Terra, this guide will help you.
Top Places to Buy Terra Now
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Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Terra Luna was a crypto project that Terraform Labs, an in-house tech company, created. Its goal was to promote crypto adoption by creating a set decentralized stablecoins that can be used to perform DeFi transactions.
Terra reanimation action plan
Do Kwon, the founder of
Terra has a plan for reviving the coin. To bring TerraUSD back to $1, the first part of the plan includes a massive burn of TerraUSD (USTUSD).
They plan to burn more than 371 million UST on the Ethereum Mainnet and any UST left in the Terra community pool.
The second part is to stake 240 million LUNA tokens to stop whales from seizing control and to stabilize network governance.
Developers also stopped Terra’s blockchain and stopped all pending transactions. This was done to prevent people buying LUNA at an extremely low price.
Should Terra be bought today?
Given the difficulty of predicting cryptocurrency prices accurately, it’s important to conduct a thorough market analysis before making any financial decisions. Do not invest more than what you can afford to lose.
Terra price prediction
Many investors are pessimistic about Terra’s prospects. The Motley Fool says it is best to avoid the project, despite its low price.
Digital coin price and forecast see little hope for LUNA. They predict an end-of year price of less than 1 cent bzw. 0. 6 cents.
However, experts disagree. Investing Cube believes that LUNA can recover. LUNA will gain if the stablecoin is revalued to $1.
Wallet Investor did not adjust its bullish prediction of LUNA before the crash. They predict 1 LUNA will trade for $151 in May 2023. Finally, Gov Capital anticipates LUNA to be worth $108 a year from now.
Terra on social media
— Watcher.Guru (@WatcherGuru) May 15, 2022
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