Prime Cryptocurrency Costs At present: Ethereum, Dogecoin, Uniswap Tank Up To six% – Financial Instances
Major cryptocurrencies traded lower on Friday after international banking regulators decided to rank Bitcoin as the riskiest asset and Chinese authorities arrested suspects for using digital tokens to launder money.
The Basel Committee on Banking Supervision on Thursday proposed applying a 1,250% risk weight to a bank’s exposure to Bitcoin and certain other cryptocurrencies.
In China, in a recent raid, police arrested over 1,100 people suspected of using cryptocurrencies to launder illegal proceeds from phone and internet fraud, the Ministry of Public Security said. The arrests came as Chinese authorities stepped up crackdown on cryptocurrency trading.
The top 10 digital currencies traded up to 6 percent lower on Friday at 9:30 a.m. (IST). The crypto market has also become skeptical of El Salvador’s decision to legalize Bitcoin.
El Salvador was the first country to introduce Bitcoin as legal tender. This is likely to dampen the ability of central banks to act as lenders of last resort. Salvador’s experiment will give analysts the first opportunity to gauge the impact of cryptocurrency on an economy.
“We have had a very restless session across the crypto spectrum in the past 24 hours. Most of the digital tokens have waned. Bitcoin was the talk of the town after El Salvador announced its decision to accept Bitcoin as legal tender, ”said Edul Patel, CEO and co-founder of Mudrex.
The IMF has raised some serious concerns about El Salvador’s bitcoin change. “The introduction of Bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis,” said an IMF spokesman. “We are closely monitoring developments and will continue our consultations with the authorities.”
The week was in the red for most assets in the crypto space, according to ZebPay Trade Desk. The market has seen a decline in prices, volumes, and market capitalization. This suggests that overall sentiment in the market is still bearish. However, after the market restarted, the volatility in these assets has also decreased. ”
Bitcoin’s recent boom has yet to dispel doubts about its vulnerability. While momentum may cheer the bulls, a JPMorgan chase said that backwardation in the futures market – where the spot price is above futures prices – is a cause for caution.
Global regulators have proposed introducing capital requirements for banks trading cryptos. The announcement by the Basel Committee on Banking Supervision is yet another sign that the world of traditional finance is reacting to the surge in crypto assets.
Tech View: ZebPay Trade Desk
Bitcoin Cash is a peer-to-peer electronic cash system. It creates the infrastructure required for fast payments, micro-fees, data protection and high transaction capacities (big blocks). It is the twelfth largest cryptocurrency with a total market capitalization of $ 12 billion.
It is a permissionless, decentralized cryptocurrency and therefore does not require a trusted third party or a central bank. BCH has a limited supply of 21 million coins and is therefore scarce. The transactions are very quick and the transaction fees are less than $ 0.01. Today, many merchants accept BCH as a means of payment.
BCH, after hitting the low of $ 467.8, rebounded well, rising almost 72% to $ 807.27. The asset then resisted those levels and prices fell nearly 32%.
Technically, the asset trades sideways in a ‘symmetrical triangle’ pattern on the daily timeframe (during this period of indecision, the highs and lows at the point of the triangle seem to come together with virtually no significant volume). Therefore, breakouts on both sides with good volumes will continue to set the trend.
Support: $ 539.19 and $ 467.80
Resistance: $ 721.55 and $ 868.55
The time is in UTC and the daily time frame is 12:00 PM – 12:00 PM UTC
(The views and recommendations in this section are the analysts’ own views and recommendations and do not reflect those of ETMarkets.com. Please consult your financial advisor prior to entering into any position in any of the above assets.)