Banking giant HSBC echoes global stablecoin concerns, calling for regulation to be equivalent to its adoption level.
Banking giant HSBC echoes global stablecoin concerns, calling for regulation to be equivalent to its adoption level.
Blockchain-based startups continue to account for a significant proportion of newly established business entities across the globe.
NFTs (Non-Fungible Tokens) are brought to the world by the blockchain. They are similar to cryptocurrencies, but NFTs are different. Unlike cryptocurrencies, NFTs are unique tokens. They display ownership, source and history on a permanent, transparent, decentralized, secure and open-source database.
NFTs are disrupting or on the verge of disrupting numerous fields. To name but a few:
Of all these fields, without a double leading the innovation in this space from the beginning are artists themselves. Many of these have had life-changing stories.
There is Trevor Jones, the Canadian painter living in Scotland who went from working four jobs to support his art career to selling his Bitcoin Angel for $3.2 million in February, which was at the time a record for the “most expensive open-edition NFT artwork”.
There is Ben Mauro, the artist who went from struggling to make ends meet to becoming a millionaire.
Another star example is that of Blake Jamieson. He’s a 36-year-old Brooklyn artist whose career exploded when he made over $46,000 in NFTs sales in just over six weeks. He placed his artwork on platforms like SuperRare and OpenSea. He has since partnered with current and former NFL superstars Dez Bryant and Terrell Owens on NFT projects and is continuing to grow his brand.
NFTs make this possible because of the decentralized nature of the blockchain. The legacy art industry would require hiring an agent and working to get approval to be displayed in an art gallery. The artist is dependent to a large extent on others to bring their works to the market. In the case of NFTs, any artist can mint their own NFTs and bring them to market. And with the internet, social media and the increasing popularity of NFTs, collectors around the world can connect with the artists they want to collect. From a markets standpoint, art is being connected to a liquid market that it has never seen before. In just the last month alone, on just one exchange, OpenSea, there has been over $4 billion in NFT sales, which is more than the worldwide NFT market size in the first half of 2021.
What will the future hold for the red hot NFT space? While no one has a crystal ball, it is clear that there is a robust community of collectors, traders and investors that have brought a very liquid market into play. There will be bull markets and bear markets, but it’s clear that NFTs are here to stay.
Bullseum is an art project in which 5,000 NFT collectibles were created. This is not a generative project, but instead, each was hand-drawn by a human artist. These collectible bull NFTs are part of a fantasy ecosystem with an ambitious roadmap that will continue to grow and increase in features.
Some of what this will include:
One of the most attractive uses of blockchain is creating a fair decentralized economy where creators can be rewarded for their creations, instead of being dominated by central institutions, gatekeepers, and middlemen. Bullseum stays true to this by creating an ecosystem that incentivizes artists, investors and traders to participate in it.
For investors, the project has an attractive aspect due to the fact that it is still very early. Those who want to participate in the ecosystem now can still get in at a floor price of 0.1 ETH. As part of the project’s roadmap as featured on their website, there will be a series of NFT airdrops that will give holders a chance to win more NFT collectibles. Holders also will be given an opportunity to vote in a series of community votes to help guide the direction of the project.
As of this writing, the community is actively growing, with about 10,000 members on the Discord chat.
The Chairman of the Securities Exchange Commission, Gary Gensler, showed his cards. He spoke with legacy-media-operation The Washington Post and host David Ignatius for their series “The Path Forward” and spilled the beans. We at NewsBTC saw the whole interview so you don’t have to. We selected the most crucial quotes, and present them in all their splendor for you all to read them and reach your own conclusions.
Of course, we’re going to offer our two cents. We’re not made of steel. In general, though, you’ll get Gary Gensler’s unadulterated words. They’re shocking enough as it is.
Gary Gensler Is Looking Directly At Stablecoins
Even though host David Ignatius had no questions about stablecoins, the topic was on Gensler’s mind. The SEC’s Chair brought it up a couple of times. First, he said:
“On something called stablecoins, and how the banking agencies–and we, too, market agencies–coordinate because these stablecoins may have attributes of investment contracts, have some attributes like banking products, but the banking authorities right now don’t have the full gamut of what they need.”
But his organization is not only thinking about stablecoins and trying to define them and isolate their attributes. They’re preparing a formal document:
“We’re working right now under the guidance of Secretary Yellen and working on a report around stablecoins, and in the world of stablecoins, I do think that there would be some help from Congress.”
This doesn’t seem that bad. Their report could conclude that stablecoins are a useful innovation and tool that the whole financial system can benefit from, right? Wrong. This is what Gensler and the SEC think about stablecoins, and pay attention to the language:
“These stablecoins are acting almost like poker chips at the casino right now; so, add to the Wild West analogy. I mean, we’ve got a lot of casinos here in the Wild West and the poker chip is these stablecoins, you know, at the casino gaming tables.”
Things are about to get interesting for stablecoins, it seems.
USDT Market Cap by Cryptocap | Source: USDT on TradingView.com
Does The SEC Want Crypto Exchanges To Register?
Look, there are no two ways about this. Gary Gensler wants all exchanges, including decentralized ones, to register with the Securities Exchange Commission. To convince them, he asks for the exchanges to come to him:
“I think it would be better–the platforms that are trading securities, the platforms that have lending products, who have what’s called “staking products,” and I’m glad to describe that for your listeners, but where you actually put a coin at the platform and you earn a return–that they come in and we sort through, figure out how best to get them within the perimeter.”
And, you might ask, what perimeter is that? Well, this quote makes it very clear:
“I think at $2 trillion, 5- or 6,000 projects, that it would be better to be inside investor-consumer protection, inside the tax compliance and anti-money laundering and financial stability.”
This goes in line with recent declarations from Gensler about the need for crypto regulation:
“Gensler believes that if the market is to grow, then it needs to embrace regulation. The SEC chairman explained that regulation would provide trust in the market, which is important if the market does not want to become irrelevant over time. “Finance is about trust, ultimately,” Gensler said. Gensler’s focus is mostly on trading platforms, given that this is where the majority (~95%) of activities in the crypto market are carried out.”
Is Gary Gensler Even a Cryptocurrency Enthusiast?
Since the new Head of the SEC once taught a class on Cryptocurrencies at MIT, people assumed he would be a pro-crypto legislator. Is he, though? Let’s read what he said about the subject specifically:
“I do think this new technology is a very interesting–and whomever she was, Satoshi Nakamoto, it’s led to change. It’s pushing at the side of central banks around the globe to reconsider how to provide payment systems. It’s pushing on the side as a catalyst for change in finance, so-called “fintech,” the intersection of new technologies and finance.”
So, a non-comital opinion. However, Gensler feels strongly about bringing cryptocurrencies into a public policy framework. So strongly, that he said, “I don’t think technologies long last outside of a social and public policy framework.” And then, “I think it’s better to bring it inside the public policy framework and ensure that we address these important public policy goals.” And later on one more time, “So, new technology is generally a good thing; it challenges the establishment. But I don’t think that new technologies really long exist outside of public policy frameworks.”
Does Any Of This Have To Do With Evergrande?
Days after our report about the situation, Evergrande became one of the biggest stories of the year. We explained that the company reportedly owes $300B, and the most likely cause for all that:
“Apparently, China Evergrande was caught in a loop. The company was pre-selling apartments and using that money to fund other projects, in which they also pre-sold the apartments and the cycle started again. Evergrande bonds are suspended, and there’s a chance they won’t be active ever again. They might be worthless. The stock is near its all-time low, it has lost nearly 80% of its value this year.”
Of course, The Washington Post’s Mr. Ignatius had to bring the subject up. He said that analysts are worried that there could be “contagion in financial markets, like what we remember from 2008 and the failure of Lehman Brothers.” Then, he asked: “Are you confident that our financial markets today are protected in the event that there was such a failure, not necessarily over this company but any large company with that level of debt?”
Gensler refused to comment on a Chinese company, that’s out of his jurisdiction. To the question, he answered:
“I do think the reforms after the 2008 crisis stood up a much stronger U.S. financial system. It doesn’t mean that there aren’t issues that we look at, at the SEC and other important regulators like the Federal Reserve and the bank regulators and CFTC, that I once was honored to chair. But I do think that we’re in better position in 2021 to absorb some of those shocks than we were prior to the ’08 crisis, but it doesn’t mean we’re isolated. Our economies are connected around the globe.”
Featured Image: Screenshoot from the interview | Charts by TradingView
Waggle Network, a cross-chain protocol that unlocks liquidity for post-IDO tokens, has announced a $3 million seed raise by leading investors including (but not limited to) GBV, SVC, Genesis Block Capital, Basics Capital, Bixin Ventures, NGC, AU21, Gate.io labs, MEXC, HG Ventures and Spark Digital.
Waggle has also announced the addition of strategic partners such as Solanium, Occam, and Poolz.finance to help foster the company’s multichain approach, as well as media partners Minted Labs, ODaily, CrryptoTimes, Bitcoin Addict, and Bigcoin Vietnam. With each investor and partner, Waggle unlocks the potential to tap into thousands of portfolio projects and deep industry expertise from top Web3 investors and builders.
Waggle’s founding team brings heavy experience in DeFi along with the first-hand experience with some of the major pain points that inspired Waggle’s creation. Conventionally, projects have limited alternatives to raise funds after their IDO. Most projects will raise funds via OTC deals with institutional partners, which sometimes present them with less-than-favorable sales terms due to the illiquidity of such deals.
Waggle saw these pain points and noticed the fervor of the communities of these projects. Waggle was therefore born to bridge this market inefficiency and facilitate fundraising through the project’s very own community. Not only is Waggle unlocking liquidity for projects to further their innovation, but the company will also bring deals, previously exclusive to institutional investors, to the community.
A representative at VC fund AU21 says, “As the crypto market booms, and technological innovation within the sector reaches new heights, we feel that it is patently important for locked and restricted tokens to be valued in public markets. The Waggle Network introduces much-needed liquidity to assets held by project teams while keeping a close eye on project quality for prospective investors.”
A representative at Genblock Capital adds, “The inability to unlock value from vested tokens is a challenge shared by many project founders and early supporters. Genblock is excited to be supporting the team at Waggle, who are building the protocols and tools that will enable project founders to access capital from their illiquid vested tokens. This will provide a new source of funding for early-stage projects, as well as widen access to exclusive private sales for the retail community.”
Waggle will be announcing more details soon around upcoming challenges, airdrops, IDOs, and liquidity mining programs designed to provide a strong go-to-market launch for the company.
Nasdaq listed engineering company ZK International (ZKIN) is proud to announce a partnership between xSigma collectibles–their blockchain-based subsidiary– and ACES, a top American baseball agency, to launch NFTs on behalf of their Athletes using MaximNFT. Formed in partnership between xSigma and Maxim magazine, MaximNFT is a marketplace for buying, selling, and creating new Non-Fungible Tokens (NFTs). Users can find the platform’s website at maximnft.com
MaximNFT’s most recent deal will have ACES’s athletes represented on their platform through the power of NFTs. ACES is a Brooklyn-based agency representing some of baseball’s top talent. Forbes ranks them as one of the three most powerful in the sport while listing its co-owners Sam and Seth Levinson as some of the ten most powerful agents. ACES has spent over 30 years representing baseball professionals at varying points in their careers and has negotiated for over $4 billion in deals.
ACES will work closely with the xSigma team– owners and operators of the MaximNFT platform– in the development and launch of these NFTs. xSigma is a blockchain R&D lab that includes former developers of top companies such as Google and Amazon. They will provide the creative and technical support of their veteran engineering team to help the agency navigate the novel and ever-changing NFT space.
“This is a serious step and a great partnership for MaximNFT,” says Jon Orlando, CEO of MaximNFT. “ACES is one of the most powerful baseball agencies and we look forward to revolutionizing the industry of sports collectibles together.”
Peter Pedalino, a principal at ACES, feels equally as excited for the opportunity NFTs can present to his agency.
“The NFT Industry is clearly going to be a major component in the future of the Sports Collectible Space. We want to lead in this evolution, and we are happy to have support from the MaximNFT’s team on this path.”
MaximNFT will go live with an exclusive NFT suite featuring top celebrities, brands, and athletes later this Fall. The collection will form a fitting thematic combination with the brand and promoter of the platform, Maxim Magazine. Maxim is a globally leading men’s lifestyle magazine of 25 years, covering the latest in cars, travel, wine, fashion, entertainment, and beautiful women. The publication will utilize its millions of readers in 75 countries to promote MaximNFT.com and its unique digital collection.
MaximNFT is an innovative new NFT marketplace for buying, selling and creating NFTs. It offers unique digital collectibles of high-profile brands and figures and is supported by never-before-seen NFT trading features. One of these features is known as “NFT tokenization” which lets users break down an otherwise unique digital collectible into fractional parts, and share it among the NFT community.
NFTs bought and sold with MaximNFT can be exchanged on multiple top blockchains, including (but not limited to) Polkadot, Ethereum, and Binance Smart Chain. By combining xSigma’s masterful engineering with Maxim Magazine’s promotional power, MaximNFT is poised to make an important name for itself in the growing NFT markets, which have amassed billions of dollars in transaction volume in 2021.
The marketplace will feature a special focus on celebrity, sports, and gaming-themed digital collectibles. Predicting a rise of NFT adoption within the gaming industry, xSigma already plans on developing AR and VR compatible NFTs.
xSigma was established as ZK International (Nasdaq: ZKIN)’s blockchain research and development arm in 2018, finding solutions to real-world infrastructure issues and assisting with supply-chain management. Today, however, xSigma has shifted towards independent DeFi, stablecoin, NFT, and DEX product developments. With an elite development team featuring former members of Google, Facebook, and RippleLabs, their goal today is to create financial tools that help the DeFi industry flourish.
Maxim is a world-renowned men’s lifestyle magazine of 25 years. They provide content covering cars, travel, and women, and their covers of featured A-list female celebrities including Megan Fox, Angelina Jolie, Shakira, Beyonce, and many more. The magazine is read by over 10 million men across 75 countries every month across Maxim’s print, social, and digital media outlets.
Genesis Digital previously raised $125 million in an equity funding round led by Kingsway Capital in July 2021.
The Chinese property developer will soon be a “non-event,” one analyst says, with markets already shrugging off the story.
NFT collector revealed to be Snoop Dogg, hybrid NFTs are coming, and an investor lost $300,000 in tokens to hackers.
A Bitcoin ETF could be approved by U.S. regulators by October. according to Bloomberg Intelligence Commodity Strategist Mike McGlone.
Ethereum settled below the $3,000 support zone against the US Dollar. ETH price could resume its decline unless there is a clear break above the $3,000 resistance zone.
Ethereum Price Remains At Risk
Ethereum started another decline from the $3,100 resistance zone. ETH traded below many important support zones near $3,000 and the 100 hourly simple moving average, similar to bitcoin.
The price even broke the $2,800 support level to move further into a bearish zone. A low is formed near $2,651 and the price is now correcting losses. There was a break above the $2,800 and $2,850 resistance levels.
The price recovered above the 23.6% Fib retracement level of the recent drop from the $3,105 swing high to $2,651 low. An immediate resistance on the upside is near the $2,880 level. There is also a major bearish trend line forming with resistance near $3,000 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The trend line is close to the 50% Fib retracement level of the recent drop from the $3,105 swing high to $2,651 low. A close above the $3,000 resistance could start a decent recovery. The next major resistance might be near the $3,105 level. A clear break and close above the $3,105 level could start a steady increase. The next major resistance sits near $3,135 and the 100 hourly SMA.
More Losses in ETH?
If ethereum fails to correct higher above the $2,880 and $3,000 resistance levels, it could start another decline. An initial support on the downside is near the $2,800 level.
The next major support seems to be forming near the $2,650 level. A downside break below the $2,650 support zone could lead the price towards the $2,550 zone. The next major support is near the $2,500 level, below which ether price might decline towards the $2,420 support zone.
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still below the 50 level.
Major Support Level – $2,650
Major Resistance Level – $3,000
Marty Bent, the co-founder of Bitcoin mining firm Great American Mining, is glad to be hodling Bitcoin as uncertainty hangs over the legacy financial system
New York Digital Investment Group estimates that Bitcoin mining will not represent more than 0.4% of global carbon emissions over the next decade.
Bitcoin price extended its decline below the $40,000 level against the US Dollar. BTC is now recovering and it could climb higher if it clears the $42,500 resistance.
Bitcoin Price Attempts Fresh Recovery
Bitcoin price failed to recover above the $43,500 and $43,650 resistance levels. As a result, there was a fresh decline in BTC below the $42,000 support zone.
The price extended its decline below the $40,200 and $40,000 support levels. A was formed near $39,579 before the price started an upside correction. It is back above the $40,000 and $41,000 levels. However, the price is still trading below $43,000 and the 100 hourly simple moving average.
Bitcoin surpassed the 50% Fib retracement level of the recent decline from the $43,624 swing high to $39,579 low. It is now consolidating below the $42,500 resistance.
There is also a key bearish trend line forming with resistance near $42,500 on the hourly chart of the BTC/USD pair. The trend line is close to the 76.4% Fib retracement level of the recent decline from the $43,624 swing high to $39,579 low.
Source: BTCUSD on TradingView.com
To start a strong recovery, the price must clear the $42,500 resistance. The next major resistance is near the $43,000 zone, above which the price could rise towards the $45,000 resistance.
More Losses In BTC?
If bitcoin fails to clear the $43,000 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $41,600 level.
The next major support is near the $41,000 zone. A downside break below the $41,000 zone could trigger a fresh decline towards the $40,000 level or even $39,500. Any more losses may possibly lead the price towards the $38,500 level in the near term.
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is just below the 50 level.
Major Support Levels – $41,000, followed by $40,000.
Major Resistance Levels – $42,500, $43,000 and $45,000.
While many analysts believe Bitcoin is destined for six-figures if support at $40,000 can hold up, others are predicting an imminent bear cycle.
On Tuesday, SEC Chair Gary Gensler re-confirmed his plan to crack down on cryptocurrencies, and traders’ regulatory concerns are confirmed by this key Bitcoin futures and options indicator.
It was just a couple weeks ago that Coinbase posted a blog post, paired with a hefty Twitter thread from CEO Brian Armstrong highlighting recent challenges with the SEC.
Armstrong described the agency’s behavior as “sketchy” after the SEC seemingly threatened the exchange that a lawsuit would be impending should Coinbase launch their expected interest-yielding product, Lend. If Armstrong’s tweet thread didn’t give it away, the company’s blog post, spearheaded by Chief Legal Officer Paul Grewal, was undoubtedly lined with some of the firm’s frustrations.
Now, less than a month later, reports have emerged that Coinbase has elected to halt it’s plans to launch Coinbase Lend.
A Threat To DeFi?
The news comes less than a week after SEC Chairman Gary Gensler told CNBC that his commission is under-staffed. Gensler echoed those sentiments in a Senate testimony last week, stating that the SEC “needs a lot more people.” He added in the testimony that he believed previous judiciary decisions established that many cryptocurrency tokens “do come under the securities law.” Gensler took the role with the SEC earlier this year, and came in with high expectations from retail investors.
Elsewhere in the market, some state regulators seem to be working to try to fill the SEC’s role with interest-yielding products already on the market. A handful of state regulators in recent months started legal action against BlockFi for it’s lending products. In the past week, some state regulators have shifted focus to pursue action against Celsius as well. New Jersey, Texas and Alabama are three states that are pursuing both BlockFi and Celsius with claims that the firms are offering residents unregistered securities.
Regardless of the eventual outcome, the growing popularity of yield-generating tokens and stablecoins are becoming of increased importance to regulators, and are likely bound to be responsible for federal oversight at a higher level than currently seen. The timetable and degree of oversight remains to be seen.
Coinbase is the first crypto exchange to be publicly traded on a major U.S. stock exchange, but has posted modest results in it’s short time on the market. | Source: COIN – NASDAQ on TradingView.com
Related Reading | Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And Ethereum
Elsewhere In The Coinbase Rumblings
The powerhouse exchange continues to build on their flagship products to deliver business growth. Last week, the exchange issued a high-demand junk bond with orders amounting to $7B. In recent months, the company announced it’s intent to launch a “crypto app store” and added payment support for Apple Pay.
Safe to say it’s been a busy quarter for the bustling exchange. However, it remains to be seen what the end result is for competitors like BlockFi and Celsius. In the meantime, it seems that Coinbase may be working to try to propose regulatory framework that can help the SEC and other regulatory figures embrace the market without overstepping boundaries for crypto consumers.
Related Reading | Despite Dips, Bitcoin Exchange Reserves Reach Lowest Values Since 2018
Featured image from Pexels, Charts from TradingView.com
Smart contracts have been in the crypto space for quite a while now, most recently debuting on Cardano. With the rise of decentralized finance (DeFi), smart contracts have become even more important to the entire industry. This is because they are required to build the protocols on which these decentralized applications (DApps) run on. As they have grown in popularity, smart contracts platforms like Ethereum and Solana have recorded great success with them.
Cardano has been working on bringing smart contracts to its network for a while and on September 12th, that dream became a reality with the final launch of the Alonzo Hard Fork Combinator (HFC). The arrival of smart contracts capability on the network was widely celebrated in the industry. But now, Founder Charles Hoskinson does not believe the term does justice to what Cardano actually does.
Related Reading | Why The Hydra Layer 2 Solution Is Important To The Cardano Network
The disagreement with the term smart contracts comes after a user pointed out that what Cardano does is actually very different from smart contracts. The user, @_KtorZ_, pointed out that the network deviates from what established smart contracts platforms do, referring to the network as “atypical.”
Compared to most existing smart-contract platforms, Cardano takes a much different road. Recently, we've seen a lot of discussions going on about "concurrency issues" and "EUTXO vs accounts". While equally expressive, Cardano programmability is different and atypical.
— KtorZ (@_KtorZ_) September 18, 2021
Cardano Does Not Have Smart Contracts
Hoskinson posted a tweet wherein he agreed with the user pointing out that the term smart contracts do not do justice to what the platform does. Instead agreeing that a new term is needed instead of smart contracts to describe the network’s capabilities. This new term which the founder had agreed with is programmable validators. Agreeing with the user who pointed it out, this term better describes Cardano’s programmability.
Related Reading | Cardano Founder Charles Hoskinson Says He Wants To Eliminate The Need For CEOs And Presidents
Matthias gets it absolutely right. Programmable validators instead of smart contracts https://t.co/8VVESJ8MYU
— Charles Hoskinson (@IOHK_Charles) September 19, 2021
ADA price falls to $2.1 range | Source: ADUSD on TradingView.com
Explaining further, the user pointed out that unlike existing platforms like Ethereum and Solana, one could not just deploy a smart contract on Cardano. “Instead, validators are implicitly referred to by hashes prior to their use, and they are disclosed upon activation,” the user said. Meaning that the validators do not produce anything on the network. All they actually do is “just validate.”
In closing, KtorZ explained that the term “smart contracts” felt like an imprecise term. “I’d prefer more specific terms such as ‘on-chain validators’ and ‘off-chain code.’ If anything, ‘smart-validators’ sounds already much better to me,” they added.
Featured image from Coingape, chart from TradingView.com
Bitcoin kicked off this week on the red, and the rest of the crypto market followed. In the top 10 cryptocurrencies by market cap, BTC and Ethereum are amongst the most resilient for the weekly chart.
In that time, the market has been hit by a succession of “buy the rumor, sell the news” events, and one major macro factor with the potential default of Chinese real state giant, Evergrande. Thus, the levels of uncertainty have been on the rise.
Related Reading | Did Bitcoin Really Experience A Flash Crash Down To $5,400?
In the middle of this storm impacting Bitcoin and other major cryptocurrencies, there is a select group that has managed to stay in the green. According to a recent report by Arcane Research, the assets that comprised their middle-cap altcoins index recorded some profits as the bearish trend unfolded.
For the 30 days chart, the Mid Cap Index comprised of cryptocurrencies such as Tezos, Algorand, and Avalanche showed small profits. These tokens have seen a massive rally during Q3, 2021, and were amongst the biggest losers during this week’s bearish trend, but they are still up 5% in the monthly chart, as seen below.
Source: Arcane Research
In opposition, Bitcoin records a 9% loss in the 30-day chart with similar losses for Ethereum, Cardano, Solana, Binance Coin, and other major cryptocurrencies. Smaller assets experienced the highest losses for this period with a 14% loss by September 21. Arcane Research noted:
As often happens during market turmoil, the Bitcoin dominance increases, as altcoins often act as high beta play on the crypto sector. The last week, bitcoin’s market share increased by 1.14% grabbing market share from the other big coins like ETH, ADA, and SOL.
Bitcoin Reacts To Macro Factors, What’s Next?
In a separate report, investment firm QCP Capital analyzed the bigger picture for Bitcoin and the crypto market. Although mid-caps preserved part of their gains in higher timeframes, they will most likely follow BTC’s price trajectory in the short term despite their fundamentals.
Related Reading | Bitcoin Holders Take Profits As Price Falls, Indicators Remain Bullish?
The first cryptocurrency by market cap faces September, a month that has historically been bearish for the asset, and potential complications from regulators in the U.S. and the performance on the Asia markets due to Evergrande.
As QCP Capital noted, tomorrow September 22, will be crucial to determine the trend in the short term. Bitcoin must hold the $40,200 support in case of more downside pressure when the market re-open after a long weekend.
Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course
The firm expect some government intervention to rescue the real estate company. This could result in the best-case scenario for Bitcoin and the crypto market, but there is a lot of fear and uncertainty about China’s approach. QCP Capital said:
(…) the lack of guidance so far from Chinese regulators is scaring the market. The fear here is that President Xi could allow. Evergrande to fail as an example to the other real estate players ahead of the 100th anniversary of Chinese Communist Party (CCP) in 2022. He has already taken draconian steps with Big Tech and Education. At this point, the market has already priced in Evergrande’s equity as worthless (…).
At the time of writing, Bitcoin trades at $42,814 with a 2.6% loss in the daily chart.
BTC with small losses in the daily chart. Source: BTCUSD Tradingview
“We’re not necessarily looking for more authority without more resources,” said Dan Berkovitz in regards to crypto markets.