Dear Teroxx Community,
This week we saw a digital asset market that could not set new highs and subsequently experienced further sell-offs.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
ESMA concludes high volatility in the crypto market means investors’ risk appetite is high again despite Corona crisis. The European Securities and Markets Authority (ESMA) has published its new report for the first half of 2021 on the trends, risks and vulnerabilities of markets in the European Union (EU).
In it, the EU authority concludes, among other things, that the enormous volatility and large growth of crypto markets make targeted regulation of the asset class increasingly necessary.
“We have seen rising prices across all asset classes and massive price volatility in the crypto market in the first half of 2021, although trading volumes are high, which raises the question of whether there is increased risk appetite and/or irrational euphoria in the market.”
The reduction in supply, combined with increased demand, ensures that Bitcoin’s minimum exchange rate is now already at $39,000 according to analysts. With deposited Bitcoin currently dwindling on crypto exchanges and major institutional investors promising further purchases in the coming weeks, a combination of dwindling supply and rising demand should soon ensure higher prices once again.
Long-term investors currently hold as much of the available supply of BTC as they last did in October 2020, meaning that tradable supply, as it were, is at an all-time low.
This “illiquid supply” is in turn linked to the much-cited Stock-To-Flow (S2F) calculation model to calculate a new minimum target for BTC/USD.
As Clemente explains, this results in “a floor for price movement based on real-time scarcity.”
The EXOeu token is already available in France, Luxembourg, Spain and Portugal, and can now be traded in Germany. The German Federal Financial Supervisory Authority (BaFin) has given the green light for a Security Token Offering (STO) on a Bitcoin (BTC) sidechain. While many STOs are based on the Ethereum blockchain, EXOeu is based on Blockstream Amp, a platform specializing in tokenized securities, which in turn is based on Liquid, a sidechain of Bitcoin.
“Bitcoin is already shaking up the payments market, and it’s time it shook up the equity market as well. This is easily possible via Layer-Two solutions,” as Stokr co-founder Arnab Naskar says with confidence. He adds that Ethereum is “losing its appeal” as an STO platform, primarily due to high transaction fees and the uncertainty surrounding Ethereum 2.0.
Technical term of the week
Leverage 100x-125x: A leverage used to generate profit from minimal movements of the market. In this example, a movement of 1% would already lead to liquidation. So this is a high risk leverage position.
Bullish Outlook: A support formation above half of ~$43,000 could lead to a quick recovery if the news is not confirmed or the impact on the markets is foreseeable.
Bearish Outlook: Sell-offs would push the market back into the trend channel below half of ~$42,000.