March has already begun, but it is still worth it to take a look at the summary of the last week of the previous month.
The previous episode of Weekly Update brought you closer some updates about the Binance and a surprising story of CoronaCoin. What interesting happened at the end of the month?
The end of February wasn’t favorable for the Bitcoin. The leading cryptocurrency (according to the market capitalization) noted a significant fall after the fantastic performance in the first weeks of 2020 when it achieved an impressive value above $10,000 for one coin. Now, Bitcoin has retreated to the price of around $8,500.
What may has caused this pullback? It might be explained by the price correction after the latest bull market, reasonable in situations while the value of some asset is quickly rising in a short period. Some people, however, associate the price drop with a further advancing coronavirus outbreak. Nevertheless, this situation isn’t necessarily ominous for Bitcoin. According to Kraken CEO, Alex Saunders, the cryptocurrency industry soon may notice the next, even more intense, bull run.
Central bankers: Blockchain is not needed for digital fiats
An intensified discussion about blockchain and decentralized currencies caused national central banks (like, for example, the Bank of France) to consider a potential utilization of this idea. But apparently, not every country is interested in such an improvement. During a conference in Kyiv, Ukraine, dedicated to the topic of CBDC (central bank digital currencies), the representative of the National Bank of Ukraine stated that previously tested utilization of distributed ledger technology for a fiat e-currency didn’t work in this case.
Similar voices came from representatives of central banks from Canada and the Netherlands. But why such institutions are getting involved in CBDC anyway? According to Jamiel Sheikh, who talked with CoinDesk about this topic, the reason is a fear of private banking, already teased by Libra.
New Zealand and crypto taxes
Last year, New Zealand surprised public opinion with the announced possibility of salary paid in cryptocurrencies. Now, the country is going to improve the tax system to better fit for decentralized assets. As for now, cryptocurrencies are considered as property, which means they follow the rules of standard goods and services tax (GST). In such a situation, every transaction with decentralized assets is subject to a 15% tax, which leads to over-taxation. Proposed changes assume excluding cryptocurrencies from GST tax in some cases, when said decentralized assets works more like currencies or shares.
Crypto-football deal called off
Last week we told you surprising news about the Australian football club, Perth Glory FC, being bought by the London Football Exchange (LFE) – a blockchain-focused project aiming for the tokenization of this sport. An owner of the club, Tony Sage, recently traveled to London to finalize the deal. However, things didn’t go exactly as both sides had planned, and Sage announced that the transaction is called off.
We can’t be sure about the reasons behind this decision, but it might be related to possible illicit connections of LFE. According to the investigation of an Australian radio station, 6PR, LFE CEO Jim Aylward is, in fact, James Abbass Biniaz, previously charged with attempting to defraud the U.K. tax office.
Crypto use against sanctions
The tense situation between the USA and Iran was a hot topic at the beginning of 2020, causing a significant bitcoin price increase. And apparently, the conflict between those two countries is still related with the blockchain industry. Saeed Muhammad, a commander of the Iranian military branch called Islamic Revolutionary Guard Corps, opted for cryptocurrency utilization against the American sanctions.
As we may read on CoinDesk, the news was initially spread through Telegram, which is a very popular tool for communication and sharing information in Iran. It is worth to be noted that similar usage of cryptocurrencies is being used by North Korea.
Jim Parsons explains crypto in Simpsons
And for the end of today’s Weekly Update, we have something more casual. An ultimate crossover happened last week in a beloved animated TV series, Simpsons. In the episode titled “Frinkcoin,” the rules of cryptocurrency world get explained by Jim Parsons, an actor famous for his role as Sheldon Cooper in a “The Big Bang Theory” comedy series. He described the processes, which stand behind decentralized money and distributed ledger technologies.
For the cryptocurrency industry, every “cameo” of Bitcoin in any popular medium is gaining a lot of attention. Some people believe that such situations are taking us closer to more widespread adoption since they are popularizing the idea of blockchain. Will Simpsons episode about crypto will go down in history as the one which has revolutionized the crypto world? I rather doubt it. But it is still a pleasant surprise for blockchain enthusiasts.
SATs Market Watch: Bitcoin Price Unable to Break $11,000 as Uniswap (UNI) Token Surges
Bitcoin took another swing at $11,000 but got rejected, and trades just shy of the coveted level. Most alts are retracing slightly, while UNI continues to attract attention, and its price has increased to $7.
Bitcoin Stopped At $11K
After yesterday’s relatively calm price performance, the primary cryptocurrency initiated another leg up towards $11,000. The move began from about $10,900, and in just a few hours, BTC topped at $11,020 (on Binance).
However, the bears intercepted it and drove the asset towards its daily low of $10,800. Following this loss of $200 in a relatively short time, BTC has recovered some ground and currently trades at $10,950.
The psychological $11,000 remains as the most critical resistance in Bitcoin’s way upwards. Should the cryptocurrency break above it decisively, it could head towards the next ones at $11,200, $11,340, $11,500, and $11,760.
In case of another rejection, BTC can rely on $10,900, followed by $10,500, $10,430, and $10,330 as support.
It’s worth noting that Bitcoin’s intraday performance resembled that of gold once more. The precious metal also increased from a low of $1,945/oz to its daily high of $1,960. However, a rejection followed at that point and drove its price to where it closed the Friday trading session – $1,950.
UNI Continues Surging, As Most Alts Slightly In Red
Most alts, especially the larger-cap ones, have taken a beating in the past 24 hours. Ethereum is down by over 2% to below $380. Ripple also dips beneath $0.25 after a 1.5% decrease.
Chainlink has lost the most value from the top 10 coins as it plummeted by 8%. As such, LINK is fighting to stay above $10.
Polkadot retraced by 2.5%, Binance Coin by 3%, and Litecoin by 1.3%. Further below, Tezos continues with its recent adverse trend after another 5.5% price dip to $2.35.
The double-digit price increase club has several representatives. Those include Celsius (20%), NEM (16%), DxChain Token (15%), ABBC Coin (12%), and Hedge Trade (10%). However, one token trumps them all – the recently launched governance coin of the popular DEX platform Uniswap.
Released a few days ago, UNI has attracted lots of attention to itself. Most Uniswap users that received 400 UNI as airdrops sold their tokens almost immediately. However, data from Santiment reveals that those who displayed patience, and didn’t sell right away, have been awarded. The UNI price is significantly higher than when it was during the most substantial sell-off stage.
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Cryptocurrency charts by TradingView.
Australian Dodges Prison After Using A Supercomputer At Work To Mine Crypto
A former employee of CSIRO – the Australian Commonwealth Scientific and Industrial Research Organisation, has avoided prison after being caught using a supercomputer at work for mining cryptocurrencies. Jonathan Khoo, 34, worked as a contractor at the federal government’s scientific research agency.
Generating $6,897 Worth Of Ethereum and Monero
As per a recent news report, between January and February 2018, Khoo has managed to use two supercomputers at his workplace for the purpose of mining cryptocurrency. According to the publication, he used the devices for his financial gain. He also managed to mine crypto worth A$9,420 (US$6,897), and deposit them into his Ethereum and Monero wallets.
This was discovered in February 2018, after which Khoo was dismissed from CSIRO. The following month The Australian Federal Police looked into the matter and Khoo faced an official charge the next year.
Reportedly, Khoo’s cryptomining daredevil stunt had cost his company an estimated A$76,668 (US$56,133) worth of computer power and other resources.
“This man’s activities diverted these supercomputer resources away from performing significant scientific research for the nation, including pulsar data array analysis, medical research and climate modelling work,” said Federal Police cybercrime operations commander Chris Goldsmid after the sentence.
The defendant’s lawyer emphasized before the local court that Khoo had zero previous offenses, he had admitted his crime before the police, and felt remorseful for his actions.
Dodging Prison By A Thread
As per the report, magistrate Erin Kennedy sentenced Khoo to a 15-month intensive corrections order to deliver 300 hours of community service and to continue counseling. This way, he won’t be spending actual prison time but will be serving out his custodial sentence in the community.
The maximum penalty for offenses of the kind, as per the Australian law, is 10 years in prison.
According to Goldsmid, “malicious cyber activity, including by people on the inside of organizations, was increasing in scale and severity. Authorities urge companies and all government agencies to keep up a strong culture of cybersecurity in order to strengthen their ability to detect possible breaches.”
Litecoin short-term Price Analysis: 19 September
Litecoin’s price has had to endure a period of consolidation over the past week. On 12 September, the cryptocurrency’s price fell by close to 8 percent from $51 to close to $47 and since then, Litecoin has been struggling to recover its losses. However, while LTC might be gaining some positive momentum, it may note a minor dip over the coming few days before pushing north again.
At press time, Litecoin was being traded for $48.2 with a market capitalization of $3.1 billion. At the time, it was occupying the 10th spot on CoinMarketCap’s list, while registering a minor fall of 0.5 percent over the past 24-hours.
Litecoin 2-hour chart
According to Litecoin’s 2-hour chart, ever since the aforementioned price drop, LTC’s price has been confined to a descending triangle formation. The past week saw it register a downtrend as the crypto registered lower highs. Over the same period, LTC has gained considerable support from the $47-price level and if bearish pressure were to see an increase, the cryptocurrency may also have to rely on the support level at $46.
The $49-mark remains a significant point of resistance in the way of Litecoin, with respect to a complete recovery on the charts. In the next few days, the coin is likely to remain within the descending triangle formation and is likely to test its first support once again, before rekindling the possibility of a price break out.
At press time, the MACD indicator had undergone a bearish crossover and was showing the slight possibility of a reversal as the MACD line was inching closer to the Signal line. Further, the RSI, after having languished in the oversold zone, was holding fort in the neutral zone.
Interestingly, over the past 3 months, Litecoin has seen its ability to move on the price charts independently increase. This may be because the correlation between Litecoin and the word’s largest cryptocurrency has fallen from 0.86 to 0.80.
Litecoin’s price has been part of a descending triangle channel formation for close to a week now and in the coming days, the cryptocurrency’s price is likely to remain within the formation. This would include a minor dip for the coin’s price as it is likely to test the support at $47, before gaining enough momentum to initiate a breakout and head towards its immediate resistance.
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