Bitcoin fell three thousand dollars, why am I not panicking at all?

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In the past week, Bitcoin, the cryptocurrency with the highest market value, broke through US$19,000 and approached its historical high, but then ushered in a sharp drop on Thanksgiving Day. Although the decline reached US$3,000, the market sentiment is still optimistic.

Cryptocurrency

At the beginning of the week, the crypto market sentiment was extremely optimistic. After several weeks of rising, investors expected Bitcoin to reach a record high in a short period of time.

However, on Thanksgiving Day, the sell-off of the crypto whale dragged the price of Bitcoin straight down by $3,000 to above $16,000. However, a strong support was quickly formed here and pushed the price of Bitcoin to slowly rebound to $17,000. Above.

Although it has experienced a sharp decline, industry insiders are still optimistic that Bitcoin will continue this round of rising prices and set a record high in the near future.

The Wall Street Journal published an article this week that the influx of new buyers is a major factor driving the rise of Bitcoin prices. According to the report, Bitcoin’s rebound this year has attracted a variety of investors, from Wall Street billionaires Paul Tudor Jones and Stanley Druckenmiller to individual investors who want to hedge against inflation.

In an interview with US media CNBC Squawk, PayPal CEO Dan Schulman stated that Bitcoin’s function as a currency will eventually overcome the current way of using it to buy and hold. He said, “I think there will be more and more use cases for cryptocurrency, which will make Bitcoin more widely accepted, more stable, and possibly more valuable over time.”

Antoni Trenchev, the co-founder of the crypto platform Nexo, told Decrypt, “There is now more and more evidence that Bitcoin is in a bull market. The market likes round numbers. Bitcoin broke through $16,000 in a few days, and then $18,000. , Bitcoin’s next stop is $20,000.”

Pendal Group, an investment management company listed on the Australian Securities Exchange and managing assets of more than A$100 billion (US$73.6 billion), has also entered the Bitcoin field. According to a report from the Australian Financial Review this week, Pendal Group’s head of debt and income strategy, Vimal Gor, said that as Bitcoin “enters the mainstream,” the company is currently investing in Bitcoin futures on the Chicago Mercantile Exchange.

Mike Novogratz, founder and CEO of Galaxy Digital, advises investors to hold Bitcoin until 2025. Novogratz stated that the current rise in Bitcoin is driven by institutions and well-known investors “slowly entering this field.” Novogratz said: “Everyone should invest 2% to 3% of their net worth in Bitcoin. If you look at it after five years, your assets will increase a lot.”

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Canadian listed investment company Cypherpunk Holdings announced on Thursday that it had purchased 72.979 bitcoins, valued at approximately $1.2 million. After fully liquidating Ethereum and Monero, the company currently has a total of 276.479 bitcoins (approximately $4.6 million).

According to Arcane Research, CME Group (CME) has now surpassed OKEx and Binance to become the largest Bitcoin futures market, and its Bitcoin open position has exceeded $1.16 billion. A month ago, CME’s open position reached 750 million U.S. dollars, ranking third after Binance and OKex.

Digital currency

The Federal Reserve researcher said that the central bank’s digital currency will defeat big technology companies in terms of privacy protection. New York Fed researcher Michael Lee and University of California Santa Barbara shared economics professor Rod Garratt recently analyzed central bank digital currencies in an article. The article stated that as the new crown epidemic has changed the way people around the world trade, the use of cash has been replaced by digital payments, and the central bank’s digital currency can solve the problem of leaving payment data in the payment platform of technology companies.

US National Intelligence Director John Ratcliffe sent a letter to US Securities and Exchange Commission Chairman Jay Clayton earlier this month saying that he expressed concern about China’s influence in the digital currency field. According to the “Washington Observer” report, Ratcliffe even suggested that senior economic intelligence officials brief Clayton on the matter. The letter implies that the SEC should implement relevant regulations to help U.S. cryptocurrency companies compete with those based in and controlled by China.

According to the official website announcement, former U.S. Department of the Treasury Office of the Comptroller of Currency (OCC) prosecutor Saumya Bhavsar has joined Libra Networks as the general counsel. Libra Networks is a wholly-owned subsidiary of the Libra Association and is responsible for the operation of the Libra payment system.

According to sources, the cryptocurrency Libra led by social media giant Facebook was launched as early as January 2021, but related functions may be restricted. A person familiar with the matter said that the Libra Association will initially only issue a single stable currency Libra linked to the US dollar, and Libra linked to other legal currencies will be launched later. The source also said that the exact timing of Libra’s launch depends on when the project is approved by the Swiss Financial Market Supervision Authority, otherwise Libra cannot be operated in the market as a payment service.

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German Finance Minister Olaf Scholz said that the European Central Bank must work hard to complete their plans for the digital euro and digital payment network. Scholz made the comments at an online conference on the future payment system on Friday. He pointed out that the growing demand for the national digital payment system from the public and businesses clearly shows that the central bank must come up with the same plan as soon as possible.

Olga Skorobogatova, deputy governor of the Central Bank of Russia, this week met with representatives of several major banks in the country to seek early feedback on the concept of the digital ruble. Bank representatives are concerned about the centralization of the digital ruble planned by Russia in the past. Alexander Samokhvalov, chairman of Standard Bank of Russia, stated that commercial banks will support the plan to act as an intermediary, rather than the plan of the Central Bank of Russia to maintain all personal digital ruble accounts.

Fabio Panetta, a member of the European Central Bank’s board of directors, said at the “Future of European Payments” conference this week that large technology companies and stablecoins may disrupt the European financial system. He said that although they can provide convenient and efficient payment solutions, they may endanger competition, privacy, financial stability and even monetary sovereignty. In addition, he also believes that fintech companies are trying to change the pattern of the payment field, posing a “threat” to traditional intermediaries.

application

InsurAce, a decentralized insurance agreement, has raised $1 million in seed funding and plans to launch its product next month. According to Ciphertrace data, as the total locked value of DeFi this year has grown exponentially, the number of hackers has surged. Since January, hackers have stolen nearly $100 million. The new decentralized insurance platform InsurAce hopes to protect users from these hackers.

Japanese financial giant SBI is launching a crypto lending service through its subsidiary SBI VC Trade. According to the company’s official statement, SBI’s new crypto lending platform will allow users to lend their cryptocurrency and earn 1% interest.

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London’s digital asset infrastructure provider Copper.co today announced the launch of CopperConnect, which is the first dedicated decentralized financial (DeFi) tool dedicated to crypto institutional clients. The announcement stated that CopperConnect works through a simple and highly secure Google Chrome application, providing institutional investors (such as cryptocurrency funds) with a highly secure way to store them in Copper’s multi-party computing (MPC) wallet Digital assets are connected with decentralized applications (dApps). When withdrawing money, assets can only be returned to the wallet of their source. Copper’s infrastructure can ensure the security of assets throughout the DeFi life cycle.

Exchange

Cryptocurrency exchange Binance has already started sending email notifications to US users. In the US, because Binance has no regulatory status, they give US users 14 days to close their accounts. The email read: “Please note that according to our terms of use, we are unable to provide services to US users. You have 14 days to close all active positions on your account and withdraw all funds, otherwise your account will be locked.”

The cryptocurrency exchange OKEx reopened on Thursday, but there was a massive outflow of Bitcoin within a few minutes. According to Citrus CryptoQuant data, about 2822 bitcoins flowed out of OKEx at 8:12, which was the largest single-block fund outflow since May 2019. Also on Thursday, according to the data, Bitcoin, the largest cryptocurrency by market value, plunged by nearly US$3,000, but it is not yet confirmed whether this is related to OKEx’s resumption of withdrawals.

Supervision

South Korea’s encryption tax policy originally planned to be implemented next year may be delayed. According to a report by local news media DongA on Wednesday, the South Korean National Assembly’s Strategy and Finance Committee proposed to postpone the collection of income tax on cryptocurrency transactions to January 2022. According to the report, the authorities originally planned to start collecting crypto taxes in October 2021. The reason for the delay was that local cryptocurrency exchanges needed more time to create an effective tax infrastructure.

Russian Prime Minister Mishustin proposed to recognize cryptocurrency as property in accordance with national tax laws. At a government meeting held on Thursday, he proposed to introduce laws protecting cryptocurrency holders to promote the development of this emerging industry.

Author Liang Che

This article is from Bitpush.News, and the source must be indicated for reprinting.