The CEO and co-founder of neobank Canza Finance claims that utilizing Baki for foreign exchange trades in Africa creates a hub for African businesses to participate in intra-African and FX trades at a reduced cost.
Forex vs. cryptocurrency trading, explained
Forex trading involves the exchange of traditional fiat currencies, while cryptocurrency trading involves the buying and selling of cryptocurrencies.
Here’s what Nigeria’s naira float means for its crypto market
The move reduces the likelihood of artificial price differences between the naira and cryptocurrencies in different markets.
T. Rowe Price, WisdomTree join Avalanche subnet for forex testing
If initial tests are successful, the firms will expand their activities into tokenized credit issuance and equities.
French regulator AMF blacklists only two crypto websites in the whole year
The AMF and ACPR have blacklisted only two crypto-related websites amid the bear market of 2022 versus 24 such websites last year.
DeFi protocol raises $10M from Bitfinex, Ava Labs despite turbulent market
The prolonged market volatility has not stopped investors from backing a new protocol that merges DeFi and the foreign exchange market.
Singapore bank DBS uses DeFi to trade FX and state securities
Major Asian financial institution DBS Bank has applied DeFi technology for a project backed by the Monetary Authority of Singapore.
New York-based forex broker Oanda launches crypto trading services in US
The broker’s partnership with Paxos will enable U.S.-based investors to spot-trade cryptocurrencies on Paxos’ itBit exchange through Oanda’s mobile platform.
CFTC labels 34 crypto and forex firms as unregistered foreign entities
“Customers engaged in transactions with these entities may not receive the benefit of the customer protections, safeguards, and guardrails,” said CFTC commissioner Kristin Johnson.
Ukraine bans Bitcoin purchases with local currency amid martial law
Ukrainians are now allowed to buy Bitcoin only with foreign currency with a monthly cap of $3,300.
Turkish Lira Vs BTC: What’s Behind The Bitcoin Chart You Can’t Miss
Bitcoin price quoted in United States dollars has been suffering from a sharp and sudden downtrend after setting a new all-time high in November. But when quoted in Turkish lira, the top cryptocurrency kept on climbing in November and has never looked back.
The result? A shocking cryptocurrency price chart you simply have to see to believe. We’ll also explain the background behind the devastating downtrend in TRYUSD.
BTCTRY: Bitcoin Makes A Bullish Bet Against Struggling Currencies
All throughout the history of Bitcoin price action, after setting a higher high, the notoriously volatile cryptocurrency would blast off to a cycle climax. But the recent macro concerns around the Federal Reserve’s plans to raise rates put any bullish momentum on pause.
Related Reading | This Bitcoin Morning Star Could Brighten The Bullish Narrative In A Flash
Instead of new highs in BTCUSD, the top crypto asset by market cap has fallen by 38% or around $20,000 per coin. However, crypto assets don’t only trade against the dollar, much like BTC can trade against altcoins like ETH.
Bitcoin trading against the lira looks a lot different than the dollar | Source: BTCTRY on TradingView.com
Bitcoin can be quoted in the euro, yen, or in the case of the chart above, the Turkish lira. On the BTCTRY trading pair, after the all-time high was breached in early November, the bullish trend has yet to take a breather – let alone the steep correction seen in USD terms.
Behind The Turkish Lira Plunge, An Omen For The Dollar?
The flight to the dollar caused by the mere mention of rate hikes has decimated assets. In Turkey, the opposite is happening. Under president Recep Tayyip Erdoğan, Turkey’s central bank has cut interest rates by a full percentage point five times since September, sending the nation’s currency into a free fall.
Related Reading | Bitcoin Falls Flat: Examining A Rare Bull Market Corrective Pattern
During this time frame, the lira has fallen 50% against the dollar. Inflation in the country has also increased by 21%. Central banks in Turkey have attempted to intervene several times without success, selling off the country’s reserve of USD.
The lira has been in free fall against USD | Source: TRYUSD on TradingView.com
In response to inflation concerns, Erdoğan has raised the minimum wage by 50%, which Marek Drimal at Société Générale claims “will fuel inflation pressures further, together with the cumulative impact of the lira’s weakness”.
Additional, unspecified measures are also promised. But will they work? The lira is an example of what happens when there are no more levers left to pull. The United States Federal Reserve has a lot more shock and awe left in its war chest, but even it is struggling to balance markets, inflation, and a currency meltdown.
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
Survey finds 77% of Russian investors prefer Bitcoin to gold and forex
Russian investors now look at digital financial assets as an investment tool rather than just a “hype product,” AFD head Evgeny Masharov said.
Why The Return Of The Kimchi Premium Doesn’t Bode Well For Bitcoin
Bitcoin price is currently trading at a substantial premium on South Korean crypto exchanges – more than $6,000 per coin in USD equivalent. However, in the past this so-called “Kimchi Premium” has signaled the end of the bull trend.
Is this a sign that things across the crypto market could soon turn bearish? Or is there something else afoot going on with the US dollar and the South Korean won that is causing the discrepancy?
Bitcoin FOMO Comes To A Boiling Point In South Korea, According To Price Premium
Bitcoin is an asset unlike anything else in the world before it. There’s no company involved like stocks; no country like fiat currencies; nor does it have a physical form like a commodity.
Because the decentralized cryptocurrency technology is controlled by no state actor, the underlying asset could some day become the first non-sovereign global reserve currency.
Related Reading | Mathematical Mystery: Why Did The Bitcoin Rally Stop At The Golden Ratio?
The crypto market like these other assets, however, also trades globally, and is subject to deviations in price data depending on how aggressive one region’s currency is being exchange to buy up BTC.
Once again, crypto FOMO has taken hold in the country of South Korea, resulting in the return of something called the “Kimchi Premium.”
The Kimchi Premium has Bitcoin priced nearly $6,000 higher in South Korea | Source: BTCUSD on TradingView.com
The Return Of The Kimchi Premium Could Spell Danger For The Ongoing Crypto Bull Run
The chart above demonstrates the sizable deviation between BTCUSD and BTCKRW. The discrepancy is roughly $6,000 USD currency and climbing. The crypto community has dubbed this unusual phenomenon the “Kimchi Premium.”
Related Reading | Heads Up: Bearish Bitcoin Technical Pattern Shouldn’t Be Shrugged Off
It isn’t clear what’s causing such FOMO amongst South Korean investors, but the so-called premium hasn’t been around since the last week of 2017.
The last time the Kimchi Premium was so prominent, it was the peak of the last bull market. | Source: BTCUSD on TradingView.com
Zooming out, the last time the Kimchi Premium moved away from the standard BTCUSD ticker priced in dollars, that was the grand finale for the previous bull market.
While the USD trading pair made lower highs, the KRW trading pair made another higher high before together falling into the 2018 bear market. Thus far, the premium has never been used as a signal to take action, as historically, it hasn’t appeared often enough to take action on.
But its existence is undeniable, nor what came after the two country’s Bitcoin price tickers separated by this much in the past. Whatever the case may be, the Kimchi Premium should be something to pay close attention to for the near future.
Featured image from Deposit Photos, Charts from TradingView.com
Mirror Trading Clients Should Take Their Money and Run, South Africa’s Financial Regulator Advises
Texas regulators ordered MTI to cease and desist in July, alleging it was a crypto fraud.
Texas Securities Regulator Accuses South African Trading Pool of Crypto Fraud
Texas’ securities watchdog ordered Mirror Trading International to cease operations, alleging the South African bitcoin and forex “investor club” is a multilevel marketing scam.
Forget Bitcoin’s Volatility, BoA Says Unstable UK Pound Like an Emerging Market Currency
Bitcoin is often criticized for its volatility – now analysts are saying that, and more, about the pound sterling.
Foreign Exchange Giant CLS Admits: No, We Don’t Need a Blockchain for That
Forex giant CLS is now using a blockchain to handle certain currency trades, but the technology is “not essential” for the task, an executive admits.
China’s Foreign Exchange Regulator Piloting Blockchain in Trade Finance
The agency that regulates and manages China’s foreign exchange reserves will trial a blockchain system addressing inefficiencies in cross-border trade.
Citi Scraps Its Plan for a JPM Coin-Like Bank-Backed Cryptocurrency
Several years back Citi tested a bank-backed cryptocurrency similar to JPMCoin. The lesson it learned? It’s easier to rely on SWIFT.
HSBC Exec Says Using Blockchain Slashed Forex Trading Costs by 25%
An HSBC executive has told Reuters that using blockchain slashed the costs of settling foreign exchange trades.
