Dear Teroxx Community,
This week we saw a crypto-market that saw mixed market movements.
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 amount of Ether held on exchanges has plunged over the past two days, with CryptoQuant data indicating that just 8.1 million ETH is currently sitting in the reserves of centralized exchanges. The acceleration of ETH being taken off exchanges was highlighted by Nuggets News’ Alex Saunders, who noted a 10% drop in Ether reserves on centralized platforms on Jan.14 — from 11 million to 10 million over 24 hours. “Exchanges will run out of ETH in 10 days at current rate”! This seems to be bullish for ETH due to investors want to hold Ether longterm on coldwallets.
During a fourth-quarter 2020 earnings conference call, senior management at major U.S. bank JPMorgan Chase commented on the OCC’s recent release of stablecoins. JPM CEO Jamie Dimon added in this context that his bank “is already using blockchain technology to exchange data with other banks.” JPMorgan would therefore be one of the pioneers in this respect. “We are still at a very early stage in all of this. We’ll be looking at different application areas and exploring demand, but right now it’s way too early to say where the journey is going for us.”
Technical term of the week
Stablecoin: Is a token (mostly based on the Ethereum blockchain as ERC20 token), which always represents a fixed value! Often this value is coupled 1:1 to the dollar. 1 USDC / USDT / BUSD = 1 US Dollar. They are often used as a hedge against exchange rate fluctuations and have a high trading volume.
Bulish outlook: Should $34,000 hold as support, a bounce would be very likely. This would give the market new momentum and support the “bulls” in the market.
Bearish outlook: A loss of the $30,000 level would take bitcoin “way” off its highs and would put the market in a bearish state in the short term.