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Bank of Japan’s Governor Calls Bitcoin “Speculative”

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  • Bank of Japan’s Governor Haruhiko Kuroda questioned Bitcoin’s usefulness.
  • As per the governor, Bitcoin is barely used as a means of payment but data says not.
  • Governor voiced his support for stablecoins.

In a recent interview with Bloomberg, Bank of Japan’s Governor Haruhiko Kuroda questioned Bitcoin’s usefulness as a medium of exchange. Furthermore, Kuroda is also doubtful whether Bitcoin a good investment option.

Kuroda explained,

“Most of the trading is speculative and volatility is extraordinarily high”

Moreover, as per the governor, Bitcoin is barely used as a means of payment. However, the on-chain data from YCharts speaks otherwise. YCharts revealed that Bitcoin had over 218,000 individual transactions on Friday, which is half of its peak in January 2021.

On another note, these numbers are far from Ethereum which is the world’s most-used blockchain. Of note, the Ethereum network has 1.3 million on-chain transactions on May 28.

Meanwhile, Kuroda is not the only bank official who disapproves of Bitcoin. It can be recalled, Federal Reserve Chair Jerome Powell said that digital assets were simply vehicles for speculation. In February, Bank of Korea’s Governor Lee Ju-Yeol stated that cryptocurrencies had no intrinsic value.

In relation to Bitcoin’s volatility, the price of the digital asset has been on a roller-coaster lately. Bitcoin managed to reclaim $40,000 on May 24 but has now fallen back to the $36,000 range as of writing. Bitcoin can be recalled to had a dip when China’s highest Financial Committee crackdown BTC mining and trading activities.

Bank of Japan’s Governor

Lastly, the Governor voiced his support for stablecoins, cryptocurrencies that have assets backing their value. Kuroda was quick to add that these assets comply with legal standards. Japan has maintained a favorable stance toward the public usage of crypto and relevant businesses like wallets and exchange services. Consequently, reports suggest that the country is already testing its digital yen in a sandbox environment.

Source: https://coinquora.com/bank-of-japans-governor-calls-bitcoin-speculative/

Blockchain

Ethereum, Solana, VeChain Price Analysis: 22 September

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The entire cryptocurrency market has been facing severe bearishness over the past few weeks. The king of altcoins, Ethereum broke down below crucial support levels and would incur selling pressures from all around. That effect would automatically trickle down to the other smaller altcoins in the market like VeChain.

However, thanks to its recent rally, Solana seemed to be in a relatively better place to continue its upward trajectory if market sentiments improve.

Ethereum (ETH)

ETH/USD | Source: TradingView

Ever since the correction that happened on El Salvador’s Bitcoin Day ETH/USD has been trading in a very narrow range between $3100 to $3500. It had briefly broken out of the range, only to fall back down into it, before correcting even more.

This was a worrisome signal since it broke down (white arrow) below the descending triangle pattern on the chart as depicted by the pink lines. Ethereum prices also broke below the next support level of $2990 as depicted by the yellow trend line. So unless the prices are able to rally back from current levels to the range of $4000-$4400, the short term future for this counter remained bleak.

The Relative Strength Index dropped below 40 mark which would add to the selling pressure in this currency pair. The MACD, which suffered a bearish crossover a few weeks back entered the negative territory too. The prices have also moved significantly below the 20-day Moving Average line (marked in green) to further add to the bearishness.

Solana (SOL)

SOL/USD | Source: TradingView

Solana has been one of the best performing coins in the past month and a half and its rally propelled it to the seventh biggest coin by market capitalization. Since mid-August, 2021 it rallied nearly five times in price (blue channel), before correcting sharply a month later in line with the entire market and that correction turned into a bearish trend ever since.

Due to the nature of the recent rally, the only logical level of support for the prices would come near $20. However, if Solana prices are able to breakout of the white channel from current levels to above $160, the earlier rally may resume.

Despite the major correction over the past few days from $200 to current prices, indicators had turned extremely bearish yet. The Relative Strength Index remained near the 50 mark so there was still some bullishness.

The MACD which suffered a bearish crossover still remained well within the positive region as well. The prices however, broke down below the 20-day Moving Average (green) but again, it isn’t too far away to retest those levels. So overall, bullish sentiment in this particular coin still persisted.

VeChain (VET)

VET/USD | Source: TradingView

The VET/USD currency pair was extremely volatile and fell significantly from its all time highs. Since then it was trading within a very wide range however, a promising chart pattern was beginning to emerge for this particular coin.

A bullish cup and handle pattern was seen (white lines) and a breakout over $0.12-$0.16 can result in a major rally. The level of support for VeChain was around $0.06 and that should hold fine based on historical data.

Although, the indicators did not show as much enthusiasm on the bullish side. The Relative Strength Index touched 30 levels and currently was around 37 which was very weak. The MACD too breached the zero line and crossed over into the negative territory.

The prices also dropped below the 20-day Moving Average (green) over two weeks ago and were not able to break out of it ever since. So overall, this coin, much like many others in the market, faced the heat of extreme bearishness in the market and would require a convincing breakout over $0.16 to be bullish again.

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Source: https://ambcrypto.com/ethereum-solana-vechain-price-analysis-22-september

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Mike Novogratz Reveals Key Bitcoin and Ether Price Levels For Crypto Market To Remain In ‘Good Shape’

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Two Key Reasons Why Bitcoin Will Skyrocket In Q1 2020

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Even as the cryptocurrency market continues to face a major moment of truth this week, Mike Novogratz is highlighting the $40,000 and $2,800 prices for Bitcoin and Ethereum respectively as key levels for bulls.

Speaking to CNBC on Tuesday, the Galaxy Digital C.E.O stated that the bearish move did not come as a surprise to him as it was only a standard behavior of the market washing shorter-term risk out.

BTCUSD Chart By TradingView
BTCUSD Chart By TradingView

“We held $40,000 overnight in Bitcoin and $2,800 in Ethereum. I think those are very important levels for people to watch. As long as those hold, I think the market’s in good shape” 

Markets got a little too long

He noted that for a moment, investors had almost missed the Web 3 flight by focussing more on the major layer 1 networks getting the markets “a little too long”.

A drastic turnaround of investors putting their money in other assets could have caused an equilibrium shift leading to the drop. He also noted that the intensified Evergrande Crisis in China could also have largely contributed to the drop, particularly pointing at the stable coin FUD.

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“People have got this idea that tether’s got their stable coins backed by Chinese commercial paper and if that was the case and Evergrande blows up, you got to think that Chinese course of paper is worthless and so, some of this was a reaction to say, oh my goodness if tether goes that would be really a bad thing!”

Regulatory Uncertainty

Escalating turf wars between the SEC and the cryptocurrency industry is also a major catalyst to this week’s sell-off. Novogratz pointed out that there was a general feeling of nervousness by investors on the FED coming after stable coins amid SEC’s recent wars with Crypto exchanges.

During a presentation with the United States Senate Committee on Banking, Housing, and Urban Affairs on Tuesday last week, SEC’s Chair Gary Gensler’s reference to crypto industry as the “Wild West” or the old world of “buyer beware” asserting that the crypto industry lacked enough investor protection only seemed to escalate tension in the already stressed market.

This week, Coinbase shelved its plans to launch a 4% interest-yielding Lending product following a warning to institute legal proceedings from the SEC. This move is widely seen as reflecting in this week’s market movements with Grayscale Investments’ CEO Michael Sonnenshein on Tuesday calling for legal clarity from regulators.

“Where we are today there needs to be some more guidance from the SEC and we really have to move to a place of actual regulation beyond just enforcement actions which we continue to see,” he told CNBC.

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Source: https://zycrypto.com/mike-novogratz-reveals-key-bitcoin-and-ether-price-levels-for-crypto-market-to-remain-in-good-shape/

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Bitcoin’s current market is missing this ‘secret ingredient’ from 2017

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September has been a rollercoaster ride for the crypto-market. Especially for the king coin after it saw a multi-month price high of $52k recently before falling below $40k soon after. Even though this halving cycle started pretty well for Bitcoin, with BTC outperforming the growth trajectory of the previous cycle, now the trajectory seems to be lagging. 

So, what’s the ingredient that fueled Bitcoin’s parabolic rise, and what is missing this time around? 

The missing ingredient 

While many in the market look at BTC as a global reserve asset, Bitcoin has a market capitalization of only about $900 billion – Too low for a global reserve asset. Apple’s market cap is worth 2.5 times, while Gold, the historical store of value asset, is worth 10 times that. 

While Bitcoin is up by almost 5.5x over the last 1.5 years, the market is still unsatisfied, probably anticipating a 10x hike for BTC. There are speculations that the aforementioned will happen in this cycle but for now, the missing retail FOMO seems to be playing spoilsport. 

The chart attached herein highlights the evolution of Bitcoin’s price for the 2nd and 3rd halving cycles, while different colors underline the change in coins held by retail addresses.

Green is neutral, blue is down, and red means holders have been buying. As can be observed from the chart by Ecoinometrics, during the big parabolic move four years ago, the retail crowd was in high FOMO mode for a year and a half until the top.

On the contrary, this cycle has been much quieter on the retail side. 

Source: Ecoinometrics

Looking at the 30-days change in BTC held by addresses with less than 10 Bitcoin, it is notable that retail holders who were aggressively buying during the 2017 cycle are missing from action this time.

The FOMO phase of 2017 pumped BTC by 20x the following year. The return of retail FOMO could result in a price pump this year too. But, what could be the reason for this absence of retail FOMO?

Are risk and volatility driving retail away?

As there is heightened anticipation around the retail crowd’s entry after the introduction of Bitcoin ETFs in the U.S, many believe that the SEC’s decision could break the psychological barrier and get more of this crowd in.

However, the same wasn’t evident at the time of writing. 

Recently, Charles Edwards, Founder of Capriole Investments, noted that the world still sees “Bitcoin as a risk-on asset.” What’s more, almost every Bitcoin correction in 2021 has correlated with an S&P 500 correction of -2% or more.

This also suggests that the high risk associated with the asset has been driving the retail crowd and new entrants away. Now, this wasn’t true in the short term as an increase in new addresses during the recent recovery was notable on the BTC network. However, the long-term trend suggests that the growth in new addresses for Bitcoin is still lower than the levels seen in May 2020- May 2021.

However, was Bitcoin in fact influenced by these metrics, or was there a bigger force at play? Well, BTC’s price has been sensitive to external factors like FUDs. For instance, at the time of writing, the broader market pessimism fueled by reports of a debt crisis at China’s Evergrande Group may have lead to the missing retail FOMO. 

Either way seems like Bitcoin needs a strong push from the retail side.

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Source: https://ambcrypto.com/bitcoins-current-market-is-missing-this-secret-ingredient-from-2017

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