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Crypto Shrugs Off Regulatory/China Crackdown, Surges Off Weekend-Dip Lows

Crypto Shrugs Off Regulatory/China Crackdown, Surges Off Weekend-Dip Lows

Disappointing the endless stream of FUD-promoters, crypto markets have rebounded strongly over the weekend despite more China crackdown headlines (good for ‘clean’ bitcoin) and the Binance ban in UK (meaningless given the entity’s structure); perhaps supported by positive comments from Mexico’s 3rd richest man:

“[Laughs loudly] No, no, no, no stinky fiat for no reason. Not even a single peso, no paper bills. I would take bitcoin.”

“Bitcoin is the new gold, but too much more portable, transport Bitcoin is so much easier than having your in pockets gold bars”

Also on the positive side, seemingly unperturbed by persistent threats of a renewed crypto crackdown from lawmakers, Indian investors have piled $38.8 billion into cryptocurrency over the past year.

Sandeep Goenka, the co-founder of local exchange ZebPay, highlighted growing appetites for digital assets among Indian’s aged 18 to 35, noting a preference to invest in crypto over gold. He told Bloomberg:

They find it far easier to invest in crypto than gold because the process is very simple. You go online, you can buy crypto, you don’t have to verify it, unlike gold.”

Bitcoin ran from $30,000 on Saturday morning to over $35,000 this morning…

Source: Bloomberg

Even on the back of 5% daily gains, sentiment around Bitcoin is still firmly fear-driven.

While its score has since almost trebled, the feeling among market participants remains “extreme fear” – implying that there is plenty of potential to accommodate large price hikes. The opposite end of the spectrum, “extreme greed,” tends to precede price drawdowns.

But the bounce off $30k seems supportive…

“We’re seeing the $30,000 level on Bitcoin being defended quite well with a number of tests at that level over the past month,” said Vijay Ayyar, head of Asia-Pacific at crypto exchange Luno Pte.

“We saw a lot of downward pressure on prices being defended, so this looks quite bullish at this point.”

Ethereum is outperforming Bitcoin in the bounce…

Source: Bloomberg

Ethereum is back above $2000 after falling to almost $1700 over the weekend…

Source: Bloomberg

Pushing back above its 200DMA…

Source: Bloomberg

Additionally, as CoinTelegraph reports, more upside tailwinds in the Ethereum market came in the wake of its major protocol upgrade in July. Dubbed as the London hard fork, the upgrade expects to transform Ethereum from an energy-intensive proof-work network to a speedier, “eco-friendly” proof-of-stake network.

The fork will introduce new Ethereum Improvement Protocols (EIP) that propose to make its fee structure cheaper and its blockchain more scalable to handle a higher number of transactions. The two issues have acted as bottlenecks for Ethereum’s adoption even as it remains the highest-utilized blockchain across the booming stablecoin and decentralized finance (DeFi) sector.

In general, London hard fork’s core proposal – dubbed as EIP-1559 – will cap Ethereum’s gas fees while moderating the volatility of the network’s transaction fees.

EIP-1559 also brings in the so-called “scarcity” feature to the Ethereum ecosystem, which is among key bullish drivers for allocations to the Bitcoin market.

Tyler Durden
Mon, 06/28/2021 – 08:51

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