Dear Teroxx Community,

This week we saw a digital asset market that could not set new highs and subsequently experienced further sell-offs.

Weekly overview

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.

Crypto Market

Last week we saw market moves that failed to help the market reach new highs and subsequently led to sell-offs.

Bitcoin was able to build a positive trend from the support levels formed. This resulted in the market being able to rise ~10%. A resistance was formed at ~$48,000 and subsequently leads to a slightly negative sideways movement. At the start of the week, the global economy was surprised by a possible Evergrande bankruptcy (real estate company from China) and almost all prices fell sharply. This also affected the digital asset market and gave way. Thus, Bitcoin is now only just above the support from the breakout of the trend channel at ~$42,000.

BTC/USDT, 60

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.