Kraken: Flash crash pushed Ether (ETH) to 700 USD – what was going on?

Ethereum last traded at USD 700 in December 2020 – the older ones will remember. On the bitcoin exchange Kraken, ETH was briefly available again at a bargain price – what is behind this?

Rarely are exorbitant profits and devastating losses so close together as in crypto trading. But what happened on the crypto exchange Kraken on 22 February should have caught even the most hardened leverage trader cold. In the course of the violent correction on the crypto market, a veritable flash crash One Bitcoin a Day occurred on Kraken for individual cryptocurrencies. In addition to Cardano and Polkadot, this particularly affected the Ether price (ETH). Within a few minutes, ETH had fallen by 1,000 US dollars to 700 US dollars, only to jump back to its pre-crash level shortly afterwards.

Consequently, the question arises as to why assets such as Ethereum, Polkadot and Cardano have made such a belly landing on Kraken of all places.
Coinmetrics: Faulty match making caused Ethereum flash crash on Kraken

For Kevin Lu of blockchain analysis firm Coinmetrics, the matter is clear: he suspects a faulty trade making engine behind the Ethereum flash crash on Kraken – „today’s market crash is brought to you by Kraken’s faulty trade matching engine“ (Twitter).

The Coinmetrics analyst embellished his tweet with a graph comparing the violent swings in the Ether price on Kraken with price action on other bitcoin exchanges at the same time.

With his tweet, Lu called out the exchange’s CEO himself.

CEO Powell denies mistakes

Jesse Powell calls the accusation „speculative“ and „irresponsible“:

Hi Kevin, I’m a fan of @coinmetrics, but don’t you think it’s irresponsible to make misleading, disparaging and slanderous statements based on your own speculation without direct information? I’m sure you can come up with a plausible alternative. I hope you issue a correction.

Jesse Powell via Twitter

Powell, on the other hand, believes the extreme price fluctuation in Ethereum is a consequence of supply and demand – and thus a completely normal scenario.

This is how Powell responded to the demand for clarification made by another Twitter user: „What do you mean by „what happened“? Selling drives the price down. Buying drives the price up.“

Admittedly, Powell did not succeed in smoothing the waters with this. The fact that Kraken – like other crypto brokers – was temporarily unavailable also plays a role here. The following screenshot was taken at 15:30:

Bitcoin (BTC) Preisvorhersage – 9. Januar

Der Bitcoin-Preis hat gestern kurzzeitig die Marke von $41.900 überschritten, aber es fällt ihm jetzt schwer, dieses Niveau erneut zu testen.

BTC/USD Langfristiger Trend: Bullisch (Tages-Chart)
Schlüssel-Levels:

Widerstandsniveaus: $47.000, $47.200, $47.400
Unterstützungsniveaus: $34.000, $33.800, $33.600

BTC/USD schwankt derzeit wild um die 40.500 $-Marke, da sich die Bullen und Bären ein wildes Tauziehen liefern. Ein Blick auf das Tages-Chart zeigt, dass die Bullen zwar die Kontrolle übernehmen, aber laut dem technischen Indikator keine starken Widerstandsniveaus auf dem Weg zu $41.000 zu erwarten sind, da der RSI (14) weiter in die überkaufte Zone gestiegen ist und sich um das 89-Niveau herum bewegt.

Was ist die nächste Richtung für Bitcoin?

Gestern erreichte der Bitcoin-Preis kurzzeitig das Niveau von $41.986, den höchsten Stand seit Anfang des Jahres. Bei der Markteröffnung heute, nachdem er das Tief von $38.800 getestet hat, wird die Münze derzeit bei $40.531 gehandelt. In der Zwischenzeit, wenn man sich die Marktbewegung ansieht, ist es wahrscheinlich, dass der Markt ein schnelles Retracement oder einen Ausverkauf erlebt, kurz nachdem er die entscheidende $41.000-Marke berührt hat, und Händler könnten sehen, dass $38.000 bis $37.000 erneut getestet werden, bevor sie nach oben drängen.

Auf der Unterseite könnte der Bitcoin-Kurs unter das heutige Tief bei $38.800 fallen, und wenn diese Unterstützung den Ausverkauf nicht hält, könnten Händler einen weiteren Rückgang unter die rote Linie des gleitenden 9-Tage-Durchschnitts und in Richtung der Unterstützungsniveaus von $34.000, $33.800 und kritisch $33.600 sehen. Nichtsdestotrotz könnte jede weitere zinsbullische Bewegung quer durch den Channel auf das Widerstandsniveau bei $47.000, $47.200 und $47.400 treffen.

BTC/USD – Mittelfristiger Trend: Bullish (4H Chart)

BTC/USD entwickelt sich auf dem 4-Stunden-Chart immer noch gut. Damit erwarten wir, dass der Bitcoin Up das verlorene Momentum wieder aufnimmt und den Handel über $41.000 erreicht. Die Volatilität bleibt jedoch bestehen und der Verkaufsdruck besteht weiterhin, was dazu führt, dass die Münze nicht in der Lage ist, die obere Grenze des Kanals zu überschreiten. In der Zwischenzeit könnten die $38.000 und darunter ins Spiel kommen, wenn BTC unter die gleitenden Durchschnitte der 9- und 21-Tage-Linie bricht.

Da die Käufer den Markt jedoch immer noch verstärken und antreiben können, können Händler mit einem erneuten Test des Widerstandsniveaus von $40.900 rechnen, und ein Durchbrechen dieses Niveaus könnte den Bullen weiter erlauben, $43.500 und mehr zu erreichen. Der RSI (14) wird um die 67-Marke gehandelt, was auf eine Seitwärtsbewegung hindeutet.

Bitcoins that were considered lost moved again after being out of circulation for a long time. Since Bitcoin reached new price records at least $7 billion in digital currency has returned to the market, the amount is worth approximately $36.3 billion in the current conversion.

According to a report published by Glassnode, in the last 8 months alone more than 59,000 Bitcoins that were identified as lost or stored have returned to the market.

This means, in theory, that the holders would decide that it is time to sell the currencies that appreciated more than 300% in 2020 alone.

„Lost or stored Bitcoins reached a minimum of 8 months: from 7,252,161,786 BTC to 7,252,221,072 BTC in 8 months:“

Several stories about lost bitcoins are not new, many people lost their digital currency simply after a computer crashed and years ago this was not a problem, as the currency could be worth a few cents.

However, those „50 bitcoins“ that were worth nothing and were lost in 2010 today are worth almost R$ 8 million. That is, many people today are trying to recover old HDs or any other device that was used to store the bitcoins.

20% bitcoins lost forever
Current estimates believe that at least 20% of the total supply of bitcoins is lost forever. This means that 1/5 of the maximum supply of digital currency never reaches the market. That’s 4,200,000 BTC (4.2 million).

In other words, the scarcity of digital currency is even greater than many imagine and demand is only increasing. Therefore, the total supply of bitcoins today is approximately 16 million BTC, with many currencies not yet mined and several others still likely to be lost.

Although it is not possible to know for sure how many bitcoins are actually lost and how many are just kept, a report by Coinmetrics reveals that at least 1.5 million can be considered lost indeed.

The report classifies bitcoins as „proven lost“ because they are coins created in the first year of the Bitcoin. The report notes that the genesis block of Bitcoin – the first block in the network – includes a „production“ of Bitcoins. These coins are not currently in circulation.

In addition, there are transactions that were doubled in 2012. As „impossible“ as this may seem, this has happened. New transactions have replaced the previous ones and the duplicates have not been counted.

There are also unclaimed reward currencies. The miners receive rewards for each mined block – and the network authenticates the payments to ensure that the miners do not accept more than enough. However, the network does not check whether the miners are getting less and, for this reason, several bitcoins have been lost.

There are also coins classified as „supposedly lost“, or „zombie“ coins, which are bitcoins that are not 100% lost, but cannot be recovered. This is because the owners of these coins have lost their passwords, which means that the coins are lost, but one day the owner may remember the password, or get the password some other way.

Believe that about 1,496,907 bitcoins are lost that way.

It is important to remember, therefore, that several Bitcoin price expectations based on its supposed supply of 21 million units is optimistic, in fact there are fewer coins and probably others will be lost.

Some will reappear, as is happening, but you can see that the quantity is relatively small.

Med kryptovalutor som blir alltmer attraktiva för individer med hög nettovärde är det inte konstigt att fler vill omvandla sina portföljer. Elon Musk, verkställande direktören för Tesla Motors, frågade nyligen om ett sådant möjligt steg på Twitter, vilket ledde till samtal mellan kryptotjurar och skeptiker.

Bitcoin: För frestande att ignorera

På söndag tog Musk till Twitter för att dela ett meme som beskriver hur mycket Bitcoin hade varit attraktivt för honom nyligen. Meme blev viral, och många trodde att Musk ville dölja en del av hans rapporterade rikedom på 146,3 miljarder dollar till den ledande kryptovalutan.

Det här är inte Musks första borste med Bitcoin. År 2019 förklarade han att han bara ägde 0,25 BTC, som han fick från en vän. Medan miljardären hade kallat kryptovalutor ”lysande” förklarade han att han inte hade några faktiska innehav. Det är oklart om han sedan dess har köpt upp fler enheter av kryptovalutan sedan dess.

Musks senaste tweet drog reaktioner från några anmärkningsvärda namn. Michael Saylor, verkställande direktören för företagsintelligensföretaget MicroStrategy, svarade miljardären och rådde att Musk kunde konvertera Teslas balansräkning till Bitcoin. Som Saylor förklarade:

”Om du vill göra dina aktieägare en tjänst på 100 miljarder dollar, konvertera $ TSLA- balansräkningen från USD till #BTC . Andra företag på S&P 500 skulle följa din ledning och med tiden skulle det växa till att bli en biljon dollarfavor. ”

MicroStrategy slog berömt kontanter för krypto i år och köpte $ 425 miljoner i Bitcoin i augusti

Tillgångens värde har nästan fördubblats sedan dess, vilket ger betydande ekonomiska vinster för det Virginia-baserade företaget.

Företaget fördubblades nyligen och tillkännagav en kapitalanskaffning på 650 miljoner dollar. Som förklarat kommer MicroStrategy att använda kapitalet för att köpa mer Bitcoin.

Det är helt oklart hur Tesla skulle kunna göra ett liknande drag. Företaget har haft en betydande ökning 2020, med aktiehandeln vid 695 dollar vid presstid – vilket ger företaget en värdering på 658 miljarder dollar. Yahoo! Finans uppgifter visade att bolaget hade $ 34 miljarder i totala tillgångar för förra året. 2020-uppgången skulle ha fört detta nummer mycket högre, och att omvandla detta värde till Bitcoin skulle vara nästan omöjligt.

Musk märkte detta och frågade Saylor om en transaktion i en sådan skala är möjlig. Svarande förklarade Saylor att han hade köpt över 1,3 miljarder dollar i Bitcoin i år och erbjöd sig att dela sin lekbok med Musk.

Three cryptocurrencies in comparison: Bitcoin, Ethereum and Ripple. On the picture you can see the respective coins ETH, BTC and XRp.

Welcome to our CryptoMonday weekly review of KW 51

As usual there was a lot to report this week and so it is not surprising that we can come up with a whole range of interesting news in front of the door.

Our topics this week range from a fundamental analysis of a billion dollar company that sees the Bitcoin price at around $ 400,000, to the current status quo around the Ethereum price and what conclusions can be drawn from it for the entire market, IOTA’s latest update to Ripple and the current situation of their native crypto currency XRP.

And of course that was far from all! But that’s enough of the preface. Have fun with our CryptoMonday weekly review!

Afterwards, let us know what the most exciting or significant events were for you this week and discuss them with our community on Telegram .

Bitcoin course of $ 400,000 according to fundamental analysis by Guggenheim & other company confirms BTC purchase of 744 million

Bitcoin price rises sharply and can record price gains. The picture shows a price curve as well as stacked bitcoins.

The Bitcoin price has shot up well above its all-time high from the end of 2017. Many celebrate this event as a great success, but if you believe the experts from the corporate world, this is just the beginning.

The CIO of Guggenheim let it be known that, according to their fundamental analysis, the Bitcoin price should be around 20 times its value today. Another billion-dollar company also confirmed that it has invested over $ 700 million in BTC. But one after the other. In this article , we’ll take a closer look at what’s behind this news.

75% of private CFD accounts lose money. No EU investor protection

Ethereum is targeting $ 780, while these 3 indicators do not rule out an early market correction
The Ethereum (ETH) price rises and falls. The picture shows an Ethereum Coin and price candles in the background.

While everyone is watching the Bitcoin course with awe, it is worth looking to the left and right from time to time due to the high correlation of most cryptocurrencies with one another. In the case of Bitcoin , of course, all that remains is to look down and the first thing we see there is Ethereum . Therefore, today we want to devote ourselves to an extensive Ethereum course analysis in order to filter out how the crypto market is currently doing. Call up analysis .

IOTA Chrysalis Phase 2 live: Can the IOTA course benefit?

The IOTA price has risen. Thus the MIOTA price experiences a strong increase in value. This is commonly referred to as an IOTA Pump. The picture shows a MIOTA Coin in front of a rising price graph.

After the major crypto currencies such as Bitcoin, Ethereum and Co. could rise sharply in the last 7 days, we want to take a look at the IOTA (MIOTA) price today . Data from Coinmarketcap shows that IOTA was unable to outperform the market and has also been significantly below the average in the last 7 days with a price growth of + 11% compared to Bitcoin (+ 27%) or Litecoin (+ 22%).

Nevertheless, there is positive news: The IOTA Chrysalis Phase 2 is live. You can read what that means here .

Melon Protocol will launch version 2, renamed Enzyme Finance.

It promises new features, speed and cost-saving features.

The MLN token has skyrocketed in 2020, beating the majority of its DeFi comrades

Melon, the decentralized on-chain asset management protocol, is in the process of renaming itself on a theme closer to DeFi , called Enzyme Finance. Its MLN token was one of the top performers in 2020.

In short, Melon Pro allows individuals or organizations to manage their wealth and that of third parties on a decentralized asset management platform. It was founded in 2015 according to his blog post, and was named Melon from the Greek word meaning future, due to his ambitions at the time.

The company behind the fund management platform is now renamed Golden Profit review. This name was chosen as a metaphor for how enzymes catalyze reactions while being made of related components.

They’re associated with speed, processing, simplicity, and fundamentals, whatever we want Enzyme to be. A fundamental infrastructure layer for the asset management industry.

The rebranding process from Melon to Enzyme Finance has started!

This, along with the upcoming v2 launch, marks a new chapter in Rocket on-chain asset management.

La version 2 d’Enzyme

It will be a gradual rebranding over the next four to six weeks, the statement added. The platform is currently being redesigned and will be relaunched with Enzyme v2. Enzyme Finance will be powered by existing MLN tokens but there will be no migration of these despite a change of logo.

The launch of version 2 is scheduled for the end of this year but no concrete date has yet been announced. It will bring a number of feature updates and a rework to the tokenomics. Some of the expected features include a much larger token base that users will be able to interact with, interaction with lending protocols and yield culture, and the ability to interact with pools of automated market makers ( automated market maker or AMM).

It will also be possible to convert funds into other currencies and stablecoin , speed up transactions and lower fees, and pool cash for transactions.

Las criptodivisas han tenido una carrera brillante en los últimos meses. ¿Pero es todo lo que brilla realmente oro?

Desde la expansión del Covid-19 en la India, el bitcoin ha superado a cualquier otra clase de activo, incluyendo el oro, dando un retorno de casi el 160% desde abril. Esto no es inusual ya que se cree que las cripto-monedas están desvinculadas de la macroeconomía, que ha estado enfrentando su peor pesadilla.

Pero los retornos han entusiasmado tanto a algunos indios que están reemplazando las compras tradicionales y los artículos de regalo como el oro con cripto-monedas durante esta temporada festiva. Los hindúes consideran que los festivales de Dhanteras (que cae el 13 de noviembre de este año) y Diwali (14 de noviembre) son auspiciosos para la compra de oro.

„Estamos viendo que mucha gente viene a nuestro intercambio para regalar criptodivisas a sus familiares o amigos. Los jóvenes están buscando sustituir el oro por monedas virtuales“, dijo Nischal Shetty, el fundador de WazirX, el intercambio de cripto-monedas más popular de la India.

Otra bolsa, CoinDCX, ofrece a sus clientes una opción de libre comercio (sin tasas) durante unas horas en el día de Diwali. Esto es similar al „comercio de Mahurat“ en las bolsas indias cuando las bolsas se abren para el comercio durante una hora auspiciosa en Diwali cada año, que por lo demás es un día festivo para los mercados.

Pero dejando de lado todo este glamour, ¿pueden las criptodivisas ser realmente un sustituto del valor de almacenamiento y la seguridad que ofrece el oro?
¿Pueden las cripto-monedas reemplazar al oro?

Cuando Bitcoin fue fundada en 2009, fue promocionada como una moneda desvinculada de la economía, lo que hace que su uso sea muy similar al del oro. La gente prefiere comprar oro durante las crisis económicas ya que no está relacionado con las ganancias o cualquier otra actividad macro.

Pero aquí es donde termina la similitud.

Las criptodivisas, incluyendo el bitcoin (la moneda virtual más popular) son demasiado volátiles y han oscilado masivamente a lo largo de los años, mientras que los precios del oro normalmente se mantienen estables.

Los jugadores de la cripto-moneda reconocen esta volatilidad pero afirman que ha disminuido sustancialmente con el tiempo. Creen que sólo mejorará a medida que crezca la capitalización del mercado de estas monedas.

„A medida que bitcoin y otros activos criptográficos como el éter consigan más inversores, se volverán casi aburridos“, dijo Vikram Rangala, director de marketing de la bolsa criptográfica, ZebPay. „2020 ha visto la historia pasar de bitcoin como un activo especulativo a una inversión a largo plazo, a prueba de inflación, y a un almacén de valor. También se está moviendo más como el oro, ya que los inversores empiezan a tratarlo como un refugio seguro.“

Shetty de WazirX también señaló que los grandes inversores institucionales globales ahora están comprando bitcoin en lugar de oro. „Estos inversores institucionales siempre están buscando una apuesta a largo plazo. Esto significa que las criptodivisas están alcanzando gradualmente el estatus de ser un activo estable con un horizonte a largo plazo“, dijo Shetty.

De hecho, Sumit Gupta, CEO y cofundador de CoinDCX, cree que las criptodivisas son mucho más seguras y pueden ser más estables en comparación con el oro.

„Es un mito que hay una cantidad fija de oro en el mundo. Se desconoce cuándo se extraerá todo el oro del mundo y tampoco hay una forma verdaderamente verificable de calcular el suministro existente. Mientras que el suministro de Bitcoin está fijado en 21 millones. No se puede extraer más de 21 millones de Bitcoin y su suministro minero está fijado en el código de Bitcoin“ dijo Gupta explicando que el suministro limitado actúa como una ventaja cuando se trata del valor de almacenamiento.

También añade que existe la posibilidad de que el oro tenga impurezas, lo que es difícil de detectar para los clientes. „En comparación, Bitcoin es fácilmente verificable tal y como está en el libro público por cualquiera que tenga una conexión a Internet“, dijo Gupta.

Aunque los actores de la industria son optimistas sobre la posibilidad de que las criptodivisas sustituyan al oro, todavía existen preocupaciones que desafían el estatus de las monedas virtuales como un activo con valor de almacenamiento.

Las criptodivisas se enfrentan a la prueba de fuego

Las bolsas tienen una razón para posicionar las criptodivisas como una clase de activo establecido como el oro. Después de todo, además de los inversores, las bolsas han sido las mayores beneficiarias de las ganancias de las criptodivisas. En la India, las bolsas fueron testigos de un aumento masivo de los volúmenes, ya que los rendimientos estelares que ofrecían las monedas virtuales coincidieron con la decisión del tribunal superior de levantar la prohibición que pesaba sobre ellas.

La verdad, sin embargo, es que las monedas virtuales, a pesar de su creciente popularidad, no tienen ningún valor fundamental.

Los inversores de criptodivisas esperan que esto cambie a medida que la gente encuentre casos de uso o utilidad para ellos. Pero, en este momento, la adopción no se está acelerando ya que los gobiernos de todo el mundo siguen siendo escépticos.

Otra gran preocupación es la manipulación del mercado. Según el profesor John Griffin de la Universidad de Texas y Amin Shams de la Universidad Estatal de Ohio, una sola entidad movió los precios de los bitcoins en 2017 cuando estaba escalando nuevas alturas.

Top Banking Regulator legt de voordelen van Bitcoin en Cryptocurrency uit aan de Amerikaanse Senaat

Een topregulator legt aan de Amerikaanse Senaat uit wat het belang is van cryptografie in het huidige economische klimaat en in de toekomst van het bankieren.

Als deel van zijn getuigenis tijdens een hoorzitting die door de Commissie van de Senaat voor het Bankwezen, Huisvesting en Stedelijke Zaken wordt gehouden, verstrekte de belangrijkste Bitcoin Profit ambtenaar van het Bureau van de Controleur van de Munt (OCC) Brian Brooks details over de inspanningen die OCC neemt om het federale bankwezensysteem te verzekeren blijft een bron van sterkte en hulp aan consumenten, ondernemingen en underserved gemeenschappen tijdens de pandemie.

Brooks benadrukt het belang van de innovaties op het gebied van cryptografie, waarvan miljoenen Amerikaanse consumenten en bedrijven hebben geprofiteerd.

„Vandaag de dag bezitten ongeveer 60 miljoen Amerikanen een soort van cryptocurrency, met een totale marktkapitalisatie van bijna 430 miljard dollar. Deze cijfers illustreren duidelijk dat dit betalingsmechanisme nu stevig verankerd is in de financiële mainstream.

Cryptocurrency is een populair mechanisme geworden voor het verzenden en ontvangen van betalingen voor goederen en diensten, omdat transacties in real time worden gepost en gemak en veiligheid bieden. Cryptocurrency beschrijft ook categorieën van specifieke valuta’s van waarde, en de toename van het gebruik van stabiele munten toont het comfort van de consument met het gebruik ervan aan“.

Aangezien Amerikanen innovatie en nieuwe manieren om toegang te krijgen tot financiële diensten blijven omarmen, zegt Brooks dat de OCC een verplichting heeft om regelgevende begeleiding te bieden, verantwoorde innovatie te bevorderen en de ontwikkeling van veilige, voorzichtige en eerlijke financiële infrastructuren te ondersteunen.

Daartoe detailleert Brooks de belangrijke stappen die door OCC in 2020 worden genomen om regelgevende duidelijkheid binnen de crypto-industrie te verstrekken.

„Op 22 juli 2020 publiceerde de OCC een interpretatieve brief ter verduidelijking van de bevoegdheid van nationale banken en federale spaarassociaties om cryptografische bewaardiensten voor klanten aan te bieden. Nationale en staatsbanken en spaarbanken bieden al lang bewaardiensten aan, waaronder fysieke objecten en elektronische activa. De OCC heeft het belang van digitale activa en de bevoegdheid voor banken om dergelijke activa in bewaring te nemen sinds 1998 specifiek erkend.

For many Bitcoin enthusiasts, the flagship of the cryptocurrency has arrived on Wall Street with sovereignty.

It now costs around $ 14,500 to buy a bitcoin – about twice as much as it did at the beginning of the year. This is also the highest level since January 2018, when the cryptocurrency was revised down from its record high of almost $ 20,000 in the previous month.

Many analysts agree that Bitcoin’s renewed price rally has to do with growing investor demand for safe investments. Some, including Bloomberg, even believe the cryptocurrency will soar back to $ 20,000 by the end of this year – due to skyrocketing federal deficits caused by trillions of dollars in government spending and inflation fears.

The Bitcoin Era cheerleaders have long projected the coin as the ultimate hedging tool against fiat money, as it has a definite supply cap of 21 million tokens. Since individual mainstream companies have decided to replace part of their cash reserves with Bitcoin, the thesis gained enormous traction through social media.

Unfortunately, the same enthusiasm cannot be felt on Google Trends.

Lack of interest in searches

The latest data from the world’s largest online search engine shows a lack of interest in Bitcoin among everyday internet users. On a scale from zero to 100 over a five-year period, Bitcoin scores 9 points. If the period is changed to 12 months, the value increases to 63.

In contrast, Bitcoin’s trending value was 100 in December 2017, when the cryptocurrency was headed for $ 20,000. Most of the sentiment mentioned had to do with BTC being the first coin to boom.

Startups raised resources in BTC by posing as the next blockchain unicorns and getting ordinary citizens to look for how to buy Bitcoin.

The search for the keyword „Bitcoin“ remains low despite the enormous interest at the macro level. Source: Google Trends

The boom ended in a major collapse as most of these projects failed or turned out to be fraudulent. Bitcoin fell 84 percent from its $ 20,000 high as a result.

The same thing happened with his Google Trend Score, which crashed from “100” in December 2017 to “5” in November 2018.

In contrast, Bitcoin’s main hedging rival, gold, saw a steady trend. Its values ​​fluctuated between „82“ and „51“ – mostly over a period of five years. For the past 12 months they have remained stable above ’71‘.

Interestingly, in the week of May 10-16, 2020, Bitcoin hit a perfect „100“ within a 12 month timeframe. This step coincided with the third “halving” of the cryptocurrency – an event that periodically reduces its daily supply by half, exacerbating its scarcity against fiat currencies.

Good news for Bitcoin, after all

Hans Hauge, head of quantitative strategy at Ikigai Asset Management, thinks the absent “Bitcoin” interest against the rising price is good news. He comments that the lower values ​​for the Bitcoin keyword show that the cryptocurrency has matured.

„This is not the height of a bubble mania, it’s orderly and calm,“ said Hauge, comparing the 2017 trend with the current one. And:

„The next spike in Google Trends will make the last one look like nothing.“

Jack Ma, CEO of Alibaba, recently spoke at the Bund Summit in Shanghai about the possibilities of digital currencies in the global financial system.

Jack Ma believes that the crypto industry is disruptive

He sees the possibility that this could contribute to the overhaul of the financial system. In his eyes, global financial regulations are an obstacle to innovation. In this context, he urged China to adapt the system to the growing Chinese economy.

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Meanwhile, he drew attention to the future role of digital currencies. In his estimation, the Chinese CBDC could be of vital importance in building a new financial system in the next 30 years:

The digital currency could add value and we should think about how we can create a new kind of financial system through the digital currency

The financial system founded by the Basel Convention is also too conservative for him. He believes that China cannot cope with the growing economy adequately through this system:

After the Asian financial crisis, risk control highlighted in the Basel Conventions has focused only on risk control, not development, and rarely takes into account opportunities for young people and developing countries.

The Basel Convention brought with it international regulation for banks that was intended to reduce risk in the global economy. As a reaction to the global financial crisis, Basel III – provision of the Basel Convention of the Bank for International Settlements for the Regulation of Banks – was adopted in 2008. As a result, the rules became quite strict. The financial crisis led, among other things, that Satoshi Nakamoto decided to start Bitcoin.