California-based stablecoin Startup Reserve completed their report which states that stablecoins will play a key role in the mainstream adoption of cryptocurrencies and technology which is why we read into it some more in today’s blockchain news.
‘’The State of Stablecoins 2019: Hype Vs. Reality in the Race for Stable, Global, Digital Money’’ is the title of the report which is based on the information that was collected for more than 40 crypto stablecoins companies. The author of the report George Samman was initially commissioned to research the landscape and then write the report that will serve the industry to learn something new.
The study analyzes some of the key features of the stablecoins which according to the author, will lead to mass adoption:
“The development of stablecoins, price-stable cryptocurrencies, asset-backed cryptocurrencies etc. is likely to play a critical role in how this new economy achieves mainstream adoption.”
Also, according to the authors, some of the developing countries that battle hyperinflation will be the first to embrace stablecoins because they promise a multi-trillion dollar marketplace.
The potential role of some major companies such as Facebook is described in the report; explain that last year the social media giant stated they consider the launch of stablecoins for WhatsApp users. In the near future, it is expected for the US dollar to be the most tokenized liquid asset in the crypto market.
However, the report notes that if the stablecoins are pegged to the dollar it could eventually increase the supply of fiat money and will even lead to inflation:
“The ideal stablecoin should be able to withstand market volatility, be affordable to maintain within a value range, have easily comprehensible stability parameters and be easy to observe for traders and other market participants.’’
Bitcoin Is At $4,001 – Finally Breaking Through The ‘Crucial Mark’ Again
“If $BTC starts getting higher timeframe 4hr/1D closes below 3930, THEN I’ll consider being bearish short term. Unless you are a short term day trader flipping your outlook between 4400 and 2k after a red 30 minute candle isn’t too helpful,” an analyst named Luke Martin tweeted.Historically, the crypto market has been prone to making big swings during weekend trading sessions - meaning that traders may gain more insight into where BTC could be heading over the next couple of days. Another popular crypto trader and analyst named The Cryptomist on Twitter, spoke about the possibility of Bitcoin dropping in the $3,000 region. As she stated:
“$BTC Mentioned couple days ago we will see movement for yesterday price action. We dropped and bounced of candle support as RSI support failed. We have 2-3 days to break this 4010 region resistance before we break this candle support and test target #1 at 3900 range.”If the crypto drops below $4,000 it will likely be a strong psychological level of resistance which may prove to be difficult to break above.
Calm Before The Storm: Bitcoin Dominance Reaches Low Levels Similar To 2018
Bitwise To SEC: 95% Of Volume On Unregulated Exchanges Is Suspect
“Under the hood the exchanges that report the highest volumes are unrecognizable. The vast majority of this reported volume is fake and/or non-economic wash trading.”Bitwise sources its data from the widely known statistics tracker CoinMarketCap (CMC) which claims to include a large amount of this suspect data, “thereby giving a fundamentally mistaken impression” on the true size of the Bitcoin marketplace. The claims also cite that 95% of the reported volume is fake and that the real market for BTC is “significantly smaller, more orderly, and more regulated than commonly understood” - which roughly amounts to $273 million. After analyzing the regulated exchanges - using Coinbase Pro as a case study - Bitwise reveals the nature of the trading patterns that is trustworthy. The key characteristics include an “unequal and streaky” mix of red and green (sell and buy orders) whose distribution fluctuates considerably at any given time. The report also cites that the trading patterns on Coinbase Pro reveal “a greater-than-random number of round trade sizes,” which it characterizes as “more natural,” typically human behavior. Bitwise noted:
“It’s [the spread is] $0.01. At the time this screenshot was taken, bitcoin was trading at $3,419. That means bitcoin was trading at a 0.0003% spread, making it amongst the tightest quoted spread of any financial instrument in the world.”In the conclusion of Bitwise's report you can see that the overall findings “demonstrate that this ETF application [for its Bitwise Bitcoin ETF Trust] meets both” of the conditions requested by the SEC on how a Bitcoin ETF could satisfy the requirements of the Exchange Act.
Bitcoin Goes Below And Above $4,000 Again: What’s Causing This Fluctuation?
- Hourly MACD – The MACD is slowly moving in the bullish zone, with a positive bias.
- Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher, but it is still well below the 50 level.
- Major Support Levels – $3,950 followed by $3,920.
- Major Resistance Levels – $4,000, $4,020 and $4,060
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