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market status; All eyes on the US Senate bill!


In the hours leading up to the US Senate vote on the digital currency tax bill, the market continues to face buyer support, with the bitcoin price hovering above $ 45,000. Key metrics related to Bitcoin and Ethereum also show an upward trend in the market for these digital currencies.

to the Report The digital currency market is on the rise, with the Bitcoin price hovering above $ 45,000 on Monday. Buyers remained active in the market in the days leading up to the adoption of digital currency tax regulations. The value of shares of digital currency companies such as Riot Blockchain and Coin Bass also rose during one of the busiest days of the stock market, driven by rising hopes for clearer regulatory regulation.

At the time of writing, Ethereum is trading above $ 3,000 and has outperformed Bitcoin by 18% over the past seven days, compared to 18% growth over the same period.

Bitcoin crosses the 200-day moving average

For the first time since April 2020, the Bitcoin price candle has broken and crossed the 200-day moving average. The last time this happened was just before the start of the recent large uptrend in the digital currency market. Thomas Lee, CEO of FundStrat, wrote in Monday’s newsletter:

Given the bitcoin price moving above the 200-day moving average, we expect Bitcoin to continue its uptrend with strength until the end of the year.

With the Bitcoin price successfully crossing the 200-day moving average, the Bitcoin Forward Rate has risen again and technical indicators show that the next key resistance is in the range of $ 50,000 to $ 55,000.

Future rate of return represents the profit from futures contracts over a period of time when a formula containing the instantaneous price is used to calculate it.

market status;  All eyes on the US Senate bill!
Bitcoin price crosses 200-day moving average (red line)

Reduce Kimchi Premium Value Difference

According to data from the analytics website CryptoQuant, the difference in the value of kimchi, or premium kimchi, which shows the difference between the price of bitcoin in South Korean exchanges and other exchanges around the world, has reached its lowest level in six months.

The growth of premium kimchi usually indicates an increase in bitcoin transactions in South Korea compared to the United States, and this value difference can peak before the formation of massive sales in the market.

The current situation of Kimchi Premium shows that bitcoin transactions in South Korea have declined significantly, and this fall is likely due to legal restrictions imposed by the country’s regulators.

Earlier this year, South Korean officials passed comprehensive regulations on digital currencies, including a framework for legalizing the activities of exchange offices in the country. Shortly afterwards, South Korea passed new regulations in June to increase surveillance of digital currencies. Korean banks are no longer willing to cooperate with the country’s digital currency exchanges due to growing concerns about legal restrictions and the financial risk of stable coins.

market status;  All eyes on the US Senate bill!
Comparison chart of Kimchi Premium and Bitcoin price

Status of Mutual Funds in Digital Currencies

Despite the fact that investment funds in digital currencies faced capital outflows for the fifth consecutive week, the value of assets in these funds has reached its highest level since mid-May.

Ethereum’s share of the digital currency investment market is growing rapidly, from 26 percent at the beginning of the year to 26 percent.

Although Bitcoin has seen positive price movements in recent weeks, mutual funds continue to have a large outflow, with $ 33 million worth of bitcoins withdrawn from these funds last week.

market status;  All eyes on the US Senate bill!
Weekly inflows and outflows of capital from investment funds in digital currency

Reduction of implicit fluctuations in the Ethereum

Ethereum’s volatile volatility fell sharply last week, with a 30% price increase. As shown in the chart below, the reduction in implicit Ethereum oscillations is more pronounced and stronger in the short run.

Implicit fluctuation or estimated fluctuation indicates the market expectation of future price fluctuations. In general, it can be said that implicit fluctuations grow in declining markets and decrease in ascending markets.

Upward sentiment in the Ethereum option market is increasing as the volume of call options versus put options increases. Option traders will value their orders with Delta at around 0.30 (30% chance) for the Ethereum price to cross $ 3,500 by the end of this month.

market status;  All eyes on the US Senate bill!
Ethereum fluctuation chart

Also read: What is an Option Contract?

Delta is used to measure the amount of changes in the option contract price relative to the price of an asset. For example, if Delta is 0.3, the option contract price is likely to change by $ 0.30 (30 cents) for every $ 1 change in asset price. In simpler terms, Delta shows the effect of changes in asset prices on the contract.

Status of market coins

Teter released more details about its stocks: Holding Teter, the supplier of StableCoin (USDT), recently published a report that contains new details regarding the combined reserves of $ 62.8 billion of this stable digital currency. According to the report, $ 30.8 billion, equivalent to 49% of Tetra reserves, are held as certificates of deposit and commercial securities, of which 93% have been in the “A-2” and above accruals category since June 30, and 1.5% of them were lower than “A-3”.

A-2 and A-3 are MOODY’s accruals that indicate the creditworthiness of bonds in long-term investments. Both A-2 and A-3 have low credit risk.

Tetra executives recently told CNBC that all of Tetra’s commercial stock securities are in the A-2 accrual category and above.

Circle wants to become US National Bank of Digital Currency: Circle, the maker of the USCI stable digital currency (USDC), which plans to go public, announced on Monday that it wants to become a national full-reserve commercial bank. Full-reserve banks are institutions that act as intermediaries between depositors and loan applicants, providing the deposit directly to a borrower with the consent of the depositor, and the lender cannot withdraw until the loan is repaid. Spend.

If approved by lawmakers, the digital currency bank would have to operate under the auspices of the Federal Reserve, the Treasury, the Office of Foreign Exchange Control and the US Deposit Insurance Institution.

Circle has announced in a post on its website:

We begin this process in parallel with the pursuit of senior US Treasury legislators seeking to better manage the risks and opportunities associated with digital dollar currencies offered by large private sector corporations through the Presidential National Markets Working Group.

Getting Rid of Inflammation: Wormhole, a bridge between Solana and other decentralized finance networks (DeFi), launched support for intermediate messaging on Monday. Simply put, this protocol helps tokens, non-duplicate tokens (NFTs), and even their price data, flow between blockchains that are not normally related. Wormhole also supports Smart China Bainance, Ethereum and Terra networks.

Bynance reduces the number of “Uniswap Dan” and “LightQueen Dan” lever tokens: Bainance plans to merge every 100,000 UNIDOWN and LTCDOWN token tokens into one unit. The exchange says it wants to reduce the number of Swapdon and LightQueen ion tokens by merging 100,000 to 1. Uniswap and LightQueen are Uniswap and LightQueen leverage tokens, and in the opposite direction of the market, by reducing the price of these currencies, they generate profits with a coefficient of production. The process of merging units reduces the number of available tokens and increases their value.

It should be noted that Uniswap lender and Litecoin’s leverage tokens are one of Bainance ‘s special financial products and have nothing to do with these digital currencies except for their price, which changes in the opposite direction of the original Uniswap and Litecoin fluctuations.

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