After a slew of news related to renewed crackdowns from China triggered a Bitcoin selloff, chartists and analysts are turning to a sinister-sounding technical signal. The original cryptocurrency has formed a death cross, meaning its average price over the last 50 days fell below that of its 200-day moving average. The indicator is typically seen as a closely-watched technical measure that could offer a hint at more pain to come. Many analysts had anticipated the coin, amid a recent downturn that’s seen it lose 40% over the past two months, would form the grim-sounding pattern. But there’s reason to believe the formation this time around might not be as bearish of a signal given that the 200-day moving average is still rising, according to Matt Maley, chief market strategist for Miller Tabak + Co. “When it starts declining, that will be more compelling,” he said. Indeed, Bitcoin’s marking of a death cross in March 2020 proved no impediment to gains as it turned higher and formed a golden cross (when the pattern is reversed) two months later. But a death cross in November 2019 saw the coin trading lower one month later. Bitcoin fell Monday to a two-week low, dropping as much as 11.4% at one point to $31,735, after China announced that it summoned officials from its biggest banks to a meeting to reiterate a ban on providing cryptocurrency services. It’s the latest sign that China plan to do whatever it takes to close any loopholes left in crypto […]
Bitcoin fell to a two-week low amid an intensifying cryptocurrency crackdown in China. The largest virtual currency fell 10% to $32,350 as of 8:50 a.m. in New York. Ether declined 13% to $1,950. China announced on Monday that it summoned officials from its biggest banks to a meeting to reiterate a ban on providing cryptocurrency services. It’s the latest sign that China plan to do whatever it takes to close any loopholes left in crypto trading. Representatives from Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd. and payment service provider Alipay were reminded of rules that prohibit Chinese banks from engaging in crypto-related transactions, according to a statement from the central bank on Monday. “The PBOC crackdown is going further than initially expected,” said Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX. “Mining was phase one and speculation is phase two.” Separately, a Chinese city with abundant hydropower has stepped up action to rein in mining. A Ya’an government official told at least one Bitcoin miner that the city has promised to root out all Bitcoin and Ether mining operations with a year, said a person with knowledge of the situation. In the backdrop, the appetite for risk assets has diminished after last week’s hawkish policy pivot by the Federal Reserve. Even though equity markets tipped into the green on Monday, analysts pointed to lingering jitters about frothy corners of the market. “If, as I expect, the global buy-everything unwind continues […]
El Salvador will not replace the United States dollar with Bitcoin as the legal tender, Finance Minister Alejandro Zelaya said on Wednesday, as the Central American nation sought technical assistance from the World Bank to implement Bitcoin regulation. This month, El Salvador became the first country to adopt Bitcoin as legal tender, with President Nayib Bukele touting the cryptocurrency’s potential as a remittance currency for Salvadorans overseas. El Salvador has been using the US dollar as legal tender for the past two decades after abandoning its own currency. Finance Minister Zelaya said he clarified to the International Monetary Fund (IMF) last week that El Salvador would not abandon the US dollar and replace it with the cryptocurrency. “We gave our official position to the IMF. We have been emphatic, we are not replacing the US dollar as legal tender in El Salvador,” Zelaya told a news conference. El Salvador is in the middle of loan negotiations with the IMF for a $1bn programme to patch budget gaps through 2023. Zelaya said El Salvador continues to negotiate with the IMF, and called the talks successful. El Salvador has also sought technical assistance from the World Bank on rules and implementation of Bitcoin, Zelaya said.
After a volatile weekend, Bitcoin has once again surpassed $40,000, reaching its highest level in more than two weeks. The world’s largest crypto gained as much as 4.5% Monday to $41,020, extending its rally to a second day. The coin has rallied roughly 9% since Friday. The wider Bloomberg Galaxy Crypto Index, which tracks some of the major cryptocurrencies, also advanced, adding as much as 7.7% at one point. With Bitcoin crossing the $40,000 threshold, many chartists are looking at $42,500 as its next important level to breach. That number roughly represents its 200-day moving average and topping it could mean the coin rallies toward $50,000. “Bitcoin is always going to be volatile and the manic run-up we had was never sustainable. The question is where do we settle? What is the new floor in Bitcoin?,” said Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter. “In order for Bitcoin to resume that rally, I think you’re going to need to see more widespread legitimate adoption.” Cryptocurrencies have been under pressure in recent weeks, with Bitcoin losing about 30% since mid-April, when it hit a record of almost $65,000. The recent selloff has been exacerbated by a public rebuke from Tesla Inc.’s Elon Musk, who criticized the amount of energy used by the servers underpinning the token and reneged a previous offer to allow customers to buy his cars using the cryptocurrency. Increased Chinese regulatory oversight has also soured the mood. But prices got a boost […]
Tesla Inc Chief Executive Officer Elon Musk has tweeted that the electric carmaker will resume allowing Bitcoin transactions when miners who verify transactions use more renewable energy. “When there’s confirmation of reasonable (~50 percent) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions,” he said in a tweet on Sunday. Bitcoin surged 9.8 percent to $39,035.47 on Sunday, adding $3,492.71 to its previous close. Musk’s post was in reply to a report in Cointelegraph, which cited Magda Wierzycka, executive chair of South African asset manager Sygnia, as saying Musk’s recent tweets on Bitcoin should have prompted an investigation by the US Securities and Exchange Commission. Bitcoin, the world’s biggest and best-known cryptocurrency, is up 40.7 percent from the year’s low of $27,734 on January 4. It was down about 1 percent to $38,881 as of 7am in Hong Kong on Monday (23:00 GMT on Sunday). Ether, the coin linked to the ethereum blockchain network, surged 7 percent to $2,532.77 on Sunday, adding $165.77 to its previous close. Musk also said that Tesla sold about 10 percent of holdings to confirm Bitcoin could be liquidated easily without moving the market. ‘Positive momentum’ “The tweet added to positive momentum as Elon’s stance seems to be moderating and providing a target that’s not far away,” said Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX. “The rally was already under way as the market speculates about an imminent purchase from MicroStrategy and the […]
This week El Salvador became the first country in the world to make Bitcoin legal tender, prompting a flurry of speculation about how the smallest Central American nation, which ranks among the region’s poorest, will fare using the volatile cryptocurrency. Yet for one small Salvadoran beach town, crypto is already part of daily life. Businesses in El Zonte have been using it since 2019 after the launch of “Bitcoin Beach”, a programme whose mission is to build a “sustainable Bitcoin economic ecosystem on the coast of El Salvador”. “There are more than 50 establishments — from mobile-phone-minute stands to vegetable and fruit vendors, shops, hardware stores, restaurants and hotels — that use Bitcoin for daily transactions,” said Carlos Enrique Ortiz Novoa, who started accepting Bitcoin at Olas Permanentes, his hotel, restaurant and surf camp, in March 2020. Now, the rest of the country is getting in on El Zonte’s Bitcoin experiment after the country’s legislative assembly passed a law spurred by 39-year-old Salvadoran President Nayib Bukele requiring businesses to accept it as payment for goods and services alongside the United States dollar, which has been the country’s official currency since 2001. Bukele, who was elected in 2019 from the centre-right Grand Alliance for National Unity party, has since festooned his Twitter account in crypto branding. His Twitter profile now features a photo of him with Bitcoin “laser eyes” and an ongoing thread about a project to mine Bitcoin using energy from one of El Salvador’s volcanos. I’ve just instructed the […]