“Bargain hunters have emerged. The number of active bitcoin addresses touched 1-M after the crash, its highest since the cryptocurrency plunged 35% in May”— Paul Ebeling
While Bitcoin struggles to recover after a deep Fibo correction sector focus turned to another part of the digital currency world: Stablecoins.
Stablecoins are a form a virtual currency with values pegged to traditional assets such as the USD or commodities, and their rise has accelerated discussion by central banks across the world about digital versions of their currencies.
Analysts hailed Visa’s move as evidence that the cryptocurrency and decentralized finance ecosystem is moving towards maturity.
Japan’s financial regulator said last wk it will come up with rules in Y 2022 to restrict the issuance of stablecoins to banks and wire transfer firms.
In the US, as top executives from major cryptocurrency companies including urged Congress to provide clear rules for the industry.
Meanwhile, the central banks of Switzerland and France claimed success in Europe’s 1st cross-border trial of central bank digital currency (CBDC) payments, after testing project Jura, named after the mountains between the 2 countries.
With bitcoin capped at $50,000 for most of the wk the market capitalization of the 15,541 coins on the CoinMarketCap platform stood at $2.25-T compared with $2.6-T at the start of December.
Cryptocurrencies have benefited from easier cash conditions even in a higher inflation environment, but it is difficult to say what would happen as the Fed accelerates monetary tightening or gets ready to lift rates.
Bargain hunters have emerged. The number of active bitcoin addresses touched 1-M after the crash, its highest since the cryptocurrency plunged 35% in May.
A notable dip buyer was Michael Saylor-led MicroStrategy Inc, which added 1,434 bitcoins to its holdings for about $82.4-M, the company said last wk.
A Natixis survey showed that only 4 in 10 institutions considered crypto a legitimate investment option although, of the 28% already investing in crypto, 90% expect to maintain or increase their allocation in Y 2022.
Have a prosperous weekend Keep the Faith!