Dear Teroxx Community,
This week we saw a crypto-market that saw mixed market movements again.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
Most cryptocurrencies would not have to fear competition from CBDC, but stablecoins could become “obsolete.” “I expect that many countries will have their own CBDC in the not-too-distant future, but there is a big difference between CBDCs and cryptocurrencies,” as Yocom-Piatt notes. “Since cryptocurrencies have a higher degree of fairness, have fixed rates of increase, and can be held in custody by users themselves, I don’t think CBDCs will give them much competition, because these are just digital country currencies.”
The BTC price is at an important inflection point, JPMorgan strategists say. As Bloomberg reports, strategists led by Nikolas Panigirtzoglou believe Bitcoin could lose momentum in the short term unless it can “break out” above $40,000. The flagship cryptocurrency broke through this key level twice this month. Large institutions are seen as having a big impact here: “The inflow into the Grayscale Bitcoin Trust would likely need to maintain its pace of $100 million per day in the coming days and weeks for such a breakout to occur.”
Janet Yellen, Treasury Secretary-designate in the new administration of Joe Biden, is apparently more positive about cryptocurrencies than first suspected. Thus Yellen writes:
“I think it’s important that we also consider the potential benefits of cryptocurrencies and digital financial products, and their potential to optimise our financial system.” The Treasury secretary-to-be thus wants the US to take “a leadership role in the areas of financial technologies and digital currencies”. Accordingly, she plans to work with the US Federal Reserve on a legislative framework for the regulation of cryptocurrencies.
Technical term of the week
DEX: In simple terms, decentralised exchanges are a network of nodes that essentially contain a wallet with built-in intermediation capabilities. There is no third party through which funds are transferred during a trade. Transactions are validated and secured by the blockchain.
Bulish outlook: If Bitcoin manages to break through resistance at ~$35,000, we could see a jump to $40,000 again. This would also make the altcoins bullish!
Bearish outlook: A sustained loss of $30,000 could lead to a bearish market with selling pressure.