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Markets up to date: bitcoin is stronger than China's bans

Markets al día is an exclusive summary of the news that moves the bitcoiner economy. It is sent in advance by email to a list of subscribers and then published every Monday on CriptoNoticias. If you want to have the information in advance, subscribe to the list here.

After two weeks of decline in its price, bitcoin (BTC) recovered this Friday the level above USD 47,000 that it had on September 19, as reported by CriptoNoticias. The pioneer cryptocurrency left behind the negative effects of the collapse of the Chinese real estate company Evergrande and the announcement of the bitcoin veto by the Central Bank of China, both discussed in this medium.

The rise of the bitcoin price was associated with what was expressed by the president of the United States Federal Reserve, Jerome Powell, who said in a hearing before the United States Congress that the United States government does not have Thought to ban bitcoin and cryptocurrencies. In this way, the United States assumes a totally different position from that of China, since it does not contemplate strict policies to regulate cryptocurrencies.

At the time of writing this newsletter, bitcoin is fluctuating around USD 48,000, a fact that can be seen in the CryptoNews Price Calculator.

How can be seen in the following graph, with the collapse of the Chinese real estate company Evergrande, the price of bitcoin fell almost to USD 40,000. After a moderate recovery, it fell again on September 24 due to the Chinese central bank’s veto on cryptocurrencies, before resurfacing in the face of the Reserve chairman’s statements US Federal.

precio-bitcoin-recupera-dos-semanas precio-bitcoin-recupera-dos-semanas precio-bitcoin-recupera-dos-semanas
The price of bitcoin recovers to the levels of two weeks ago. Source: coingecko.com

For those who invest in bitcoin and other cryptocurrencies, Powell’s statements represent more confidence that bitcoin would not be vetoed by the US government. UU, as has happened in China. In this regard, Katie Haun, who was a federal prosecutor in the United States, stated that China’s decision should be taken as an example of what should not be done with regard to cryptocurrencies.

bitcoin lateral movements before the breakout

In his most recent predictive bulletin, commented on by CriptoNoticias this Friday, October 1, Willy Woo affirms that the bitcoin price will remain for about two weeks with lateral movements, in a range between USD 39,000 and USD 47,000. The downtrend of the last two weeks coincided with more accumulation by long-term investors, and right now, that accumulation is reaching its peak, Woo argues.

Point Accumulation peak has preceded a bullish breakout on previous occasions. Source: charts.wobull.com.

The occurrence of highs in accumulation in the past, has preceded a high of the bitcoin cycle. This process could take place at the end of the year, and give way to an upward break that continues in 2022, says Woo.

13,000 new participants enter Bitcoin every day

A study by the analytical firm Glassnode, reported by CriptoNoticias this Thursday, September 29, maintains that participants continue to enter the bitcoin market, at a rate that exceeds 13,000 per day. In the midst of a decline in daily transactions, the interest of new users for bitcoin increases, especially those called hodlers , or participants with little willingness to sell.

In green the bullish areas are highlighted, preceded by low activity regions. Source: Glassnode.

As can be seen in the graph, after a decrease in participants after the historical maximum, in August their growth in the market began of bitcoin. The report also highlights the growth of Bitcoin’s second layer network, the Lightning Network. This is due, among other factors, to its boost in El Salvador, where almost 30% of the population is using the Chivo wallet, which allows payments through the Lightning network.

Featured Weekly Chart

Previously we talked about long-term holders, who retained a maximum amount of the bitcoin supply. The chart of the week shows the other side of the coin, the supply in the hands of short-term holders (STH). As can be seen in the graph, the BTC held by the STH is at a minimum of 20%.

This local minimum corresponds to a maximum of accumulation, and historically the regions in which a minimum occurs, marked in blue, correspond to bearish periods price, which precede a bullish breakout. The decline in supply in the hands of short-term holders, since the local high in mid-April illustrates the fact that these holders have been selling their BTC to long-term holders.

Historical maximum of accumulated BTC

Coinciding with the growth of hodlers, the accumulated supply of BTC in the hands of these participants registered an all-time high this Monday, according to an announcement by Glassnode, reviewed by CryptoNews. 80.5% of the total supply of bitcoin, or more than 15.4 million BTC, is in the hands of these holders, while the remaining 3.6 million are in the hands of short-term investors.

The percentage of long-term holders when the price reaches a maximum, grows in each cycle. Source: Glassnode. Source: Glassnode.

According to data from Glassnode, of the total BTC retained by these holders, 71.1% is in profit, that is, it is at a price higher than the price at which it was purchased. Long-term holders who are in loss, with almost 30% of BTC in this segment, maintain the conviction to retain their coins.

Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), reiterated this Wednesday 29 his preferences towards exchange-traded funds (ETFs) based on bitcoin futures, as we reported in this medium.

At an event on asset management, Gensler He noted that the SEC is examining applications filed with that commission for ETFs seeking to invest in bitcoin futures. The official noted that current investment legislation provides sufficient protection for investors interested in bitcoin futures ETFs.

BlackRock re-invests in bitcoin futures

The investment firm BlackRock Financial Management communicated to the United States Securities and Exchange Commission (SEC), that in the second quarter of this year it obtained profits of USD 369,137, in an investment in bitcoin futures, a reported fact by CriptoNoticias.

BlackRock is the world’s largest investment fund manager, with USD 9.5 trillion in assets under management . Already in the first quarter, the investment firm had acquired 37 bitcoin futures contracts for USD 6.5 million, and received profits of USD 360,457.

US debt could benefit bitcoin

The economist at the analytical firm Moody’s Mark Zandy criticized the issuance of high-value commemorative coins by the US government, for example, of USD 1 trillion, as a means of expand the monetary base.

In his statements, commented on by CriptoNoticias, the economist points out that bitcoin could benefit if the United States uses this mode of printing money to pay its debts. Although Zandy does not directly refer to the deflationary characteristics of bitcoin or other traits that would allow it to benefit from greater money printing, this practice tends to favor inflation in the medium and long term. Given the uncertainty due to inflation, investors would tend to look for assets recognized as a store of value, as a safeguard.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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