The Basel Committee on Banking Supervision on Thursday proposed applying a 1250% risk weight to the bank’s exposure to bitcoins and some other cryptocurrencies.
The Ministry of Public Security said that in China, police have arrested more than 1,100 people suspected of using cryptocurrencies to launder illegal proceeds from telephone and internet fraud. The arrests came after the Chinese authorities stepped up measures to combat cryptocurrency trading.
The top ten digital currencies traded 6% lower at 9:30 am (IST) on Friday. The crypto market was also skeptical about El Salvador’s decision to legalize bitcoin.
El Salvador became the first country to accept Bitcoin as legal tender. This is likely to weaken the ability of central banks to act as lender of last resort. The El Salvador experiment will provide analysts with the first opportunity to assess the impact of cryptocurrency on the economy.
“Over the past 24 hours, we have witnessed a very volatile session across the entire spectrum of cryptocurrencies. Most digital tokens have collapsed. However, Bitcoin has become a topic of conversation in the city after El Salvador announced its decision to accept Bitcoin as legal tender, ”said Edul Patel, CEO and co-founder of Mudrex.
The IMF has expressed serious concerns about El Salvador’s move on bitcoin. “The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis,” said an IMF official. “We are closely following developments and will continue to consult with the authorities.”
According to ZebPay Trade Desk, “The week has been negative for most assets in the crypto space. The market saw a drop in prices, volumes and market capitalization. This suggests that the overall market sentiment is still bearish, but after the market reset, volatility among these assets has also decreased. ”
Bitcoin’s recent rebound has not yet dispelled doubts about its vulnerability. While momentum could cheer bulls on, JPMorgan Chase said backwardation in the futures market, where the spot price is higher than futures prices, is a cause for caution.
Global regulators have proposed introducing capital requirements for banks trading cryptocurrency. The announcement of the Basel Committee on Banking Supervision is another sign that the world of traditional finance is responding to the rise in cryptoassets.
Technical Review: ZebPay Trade Desk
Bitcoin Cash is a peer-to-peer electronic money system. It creates the infrastructure needed for fast payments, micro-fees, privacy, and high transaction capacity (large blocks). It is the 12th largest cryptocurrency with a total market capitalization of $ 12 billion.
It is a decentralized cryptocurrency that does not require authorization and therefore does not require trusted third parties or a central bank. BCH has a limited supply of 21 million coins and is therefore in short supply. Transactions are very fast and the transaction fee is only $ 0.01. Many merchants today accept BCH as a payment method.
The BCH message, which hit a low of $ 467.8, showed a good recovery and rose nearly 72% to $ 807.27. The asset then resisted at these levels and prices pulled back almost 32%.
Technically, on the daily timeframe, the asset is trading sideways in the “symmetric triangle” pattern (during this period of indecision, it seems that the highs and lows converge at the point of the triangle with little or no significant volume). Consequently, breakouts on both sides with good volumes will further define the trend.
Support: $ 539.19 and $ 467.80
Resistance: $ 721.55 and $ 868.55
Times are in UTC, with daily timeframes from 12:00 to 12:00 UTC.
(The opinions and recommendations provided in this section are analysts only and do not reflect the views of ETMarkets.com. Please consult your financial advisor before taking any position in the assets mentioned.)