Monat: September 2023

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Bitcoin price rebound sends profit taking deals to 2-month high

  • Bitcoin rose to highs above $26,800 on Thursday, before profit taking pushed kicked in to see it trade lower.
  • An analyst says price below the 200-week MA represents buying opportunity.
  • Meanwhile, address activity remains high, with 1.1 million BTC send or received daily.

Bitcoin spiked above$26,800 overnight Thursday as bulls bounced to hit its highest level since the decline to below $25k on Monday. 

Traders eye profits after BTC bounce 

With Friday looking likely to see a fourth consecutive green candle, the push to above $26,849 illustrated bulls’ resilience in a historically tough September.

However, the rise in profit ratio over the past three days has also seen BTC face a spike in profit taking deals. On-chain data shared via a chart by market intelligence platform Santiment shows that traders took advantage of the upside bounce to pinch small profits.

Per the data, Thursday saw the highest ratio of profit vs. loss taking in two months. Even then, address activity remained elevated to sit at 5-month highs, with an average of 1.1 million Bitcoin addresses either sending or receiving BTC daily. According to Santiment, Bitcoin’s address activity hovered at its highest level since April.

What next for BTC?

Bitcoin’s +5% rebound over the past three days represents the first streak of gains since the sharp spike on 29 August. Bullish flip above $26k could be a great signal for bulls. However, the market remains largely constrained and volatility is likely to be on the downside as traders hunt for profit taking moves.

BTC is also below its 200-week moving average, the same region that constrained prices for months but as crypto analyst Rekt Capital says, the region has previously “represented a bargain-buying territory.” Bitcoin is once again in this region.

The post Bitcoin price rebound sends profit taking deals to 2-month high appeared first on CoinJournal.

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Latin America At The Forefront Of Crypto Adoption in 2023

Cryptocurrency adoption in Latin America is on the rise, accounting for 9.1% of the global crypto value received in 2022 and totaling $562 billion from July 2021 to June 2022. This massive surge can be partially attributed to regulatory developments and institutional adoption. Authorities in the region are actively working on central bank digital currencies (CBDCs) and refining regulatory frameworks, bringing stability and clarity to the crypto landscape.

Latin American companies are also exploring blockchain technology’s potential to address regional challenges. Notably, Mercado Bitcoin issued Brazil’s first stablecoin, MBRL, in partnership with Stellar. Colombia plans to introduce its digital currency to enhance transparency and combat tax evasion, while cities in Argentina accept cryptocurrencies for tax payments to combat inflation. 

In what follows, we take a closer look at the key factors driving Latin America to the forefront of cryptocurrency adoption. 

Storing value against inflation 

Inflation has become a driving force behind the increasing adoption of cryptocurrencies in Latin America. In Argentina, where the inflation rate stood at 113.4% in July of 2023, cities like Buenos Aires and Mendoza have taken the progressive step of accepting cryptocurrencies for tax payments. Additionally, the Santa Fe Province is exploring crypto-mining activities to fund essential rail infrastructure upgrades.

Meanwhile, Venezuela, grappling with an alarming year-on-year inflation rate of 115%, has witnessed an astronomic rise in crypto adoption. Its national currency, the Bolivar, has depreciated by over 100,000% from 2014 to 2022. Amidst the unyielding inflation rates, Venezuelans have grown reliant on crypto as a store value. In 2022, for example, the country received $37.4 billion in cryptocurrency transactions, with 34% of these transactions involving stablecoins. 

Tokenization

Tokenization has emerged as another significant catalyst for crypto adoption in the region. Countries like Brazil have advanced in their Central Bank Digital Currency (CBDC) project, focusing on “asset tokenization.” This innovation involves converting real estate, stocks, and commodities into digital representations, streamlining transfers and enhancing asset liquidity.

The tokenization of financial assets, including corporate bonds and real estate debts, has democratized investment opportunities, granting access to a broader audience. Latin America’s persistent issue of double-digit interest rates, driven by soaring inflation rates, has amplified the appeal of tokenized assets. Investors in search of predictable returns and reduced volatility have turned to this novel approach.

Beyond traditional finance, Latin America has also witnessed the tokenization of music and art, providing artists with greater international exposure. 

Crypto casinos and pay-to-earn games 

The past few years have seen the rise of crypto gaming, with crypto casinos and pay-to-earn games amassing a large following. In major crypto casinos, for example, users can try their luck at slots, poker, roulette, or play Bitcoin baccarat online. Transactions like deposits and earnings are carried out using a wide range of cryptocurrencies, including Ethereum, Litecoin, and Binance Coin. 

Play-to-earn games, on the other hand, have surged in popularity in Venezuela, Brazil, and Argentina. Built on blockchain networks, the games allow players to invest in in-game NFTs (characters, skins, and special items) and then earn tokens by playing. 

One standout title in this genre is Axie Infinity, where players collect and battle creatures represented as NFTs. Latin America now accounts for a quarter of all Axie Infinity users and ranks as the second-highest growth region.

To conclude

Rising inflation, tokenization, and the popularization of crypto gaming have led to an unprecedented increase in cryptocurrency in several Latin American nations. Yet, crypto adoption in the region still faces significant risks and challenges. Vulnerable Latin American countries grapple with macroeconomic instability, widespread corruption, and informal economies. While regulatory frameworks are evolving, education and awareness of blockchain technology are still lacking. To conclude, as the landscape in Latin America continues growing and evolving, we can expect effective strategies to harness the potential benefits of crypto while mitigating risks.

 

The post Latin America At The Forefront Of Crypto Adoption in 2023 appeared first on CoinJournal.

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ATOM price outlook after Cosmos Hub’s upgrade for liquid staking

  • Cosmos Hub’s Liquid Staking Module just went live, bringing new utility to ATOM.
  • ATOM price has jumped 3% in the past 24 hours after seeing a slight increase on Wednesday.

Cosmos Hub, the interchain service provider of the Cosmos Network and blockchain platform powered by the native token ATOM, had a major upgrade this week. This is after the platform’s Liquid Staking Module went live on September 12, adding to ATOM’s utility within the DeFi ecosystem.

Cosmos Hub’s liquid staking model is now live

With Cosmos Hub’s upgrade and unlocking of the Liquid Staking Module, ATOM holders have fresh access to new yield opportunities. LSM means tgose with ATOM can now liquid-stake already staked ATOM tokens without havig to wait for the 21-day unbonding period to elapse.

This is good news for ATOM holders as it means they can participate more in the DeFi ecosystem and still earn from staking yield. One can unstake ATOM and directly liquid-stake it, this time with no 21-day restriction.

The community should however note that an initial cap of 25% has been set on the total amount of ATOM that can be liquid-staked. Other measures to “mitigate liquid staking risks” have also been instituted via governance-controlled parameters.

“As an additional security feature, validators who want to receive delegations from liquid staking providers would be required to self-bond a certain amount of ATOM,” Cosmos Hub announced.

ATOM price outlook

The market’s reaction to the upgrade was a bump in the price of ATOM. Amid the buy pressure, the token’s value rose to highs of $6.80 on Thursday. CoinGecko data shows the cryptocurrency is currently 3% up in the past 24 hours.

While price has seen an upside over the past two days, ATOM remains largely in a downtrend since the year-to-date peak above $15 in February. The RSI and MACD indicators on the daily chart continue to give bears the upper hand, while price is poised at a key resistance-turned-support zone.

Cosmos Hub (ATOM) price chart. Source: TradingView

ATOM needs to bounce off the highlighted horizontal support or risk a nosedive to below $2. The main upside hurdle would be near YTD level.

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Crypto lending firm Genesis to cease offering crypto trading

  • Genesis has been providing trading services through its international Genesis Global Capital (GGC) division.
  • Genesis allegedly owes its top 50 creditors $3.5 billion.
  • In August Genesis and DCG reached an “agreement in principle” permitting creditors to get the majority of their money.

Digital Currency Group (DCG) subsidiary and cryptocurrency loan company Genesis will no longer provide spot and futures trading for digital assets through its British Virgin Islands affiliate.

A Genesis spokeswoman said in a statement on September 14 that the company will “voluntarily and for business reasons” discontinue its trading services for digital assets across all of its subsidiaries. Genesis has been providing trading services through its international Genesis Global Capital (GGC) division in the British Virgin Islands.

The action comes after Genesis Global Trading (GGT), a company connected to DCG but not involved in the same bankruptcy proceedings as Genesis Global Capital (GGC), declared that it will stop providing cryptocurrency spot trading services.

In November 2022, GGC stopped withdrawals, citing “unprecedented market turmoil” before filing for bankruptcy in January 2023. According to reports from January, the company may have let go of up to 30% of its employees in order to market unregistered securities through Gemini’s Earn program.

Legal entanglements surrounding DCG subsidiaries

The last year has seen a lot of activity in the market due to the bankruptcy, legal, and regulatory entanglements between the different DCG subsidiaries and crypto businesses (DCG is also the parent company of Grayscale Investments).

Following the collapse of the cryptocurrency exchange FTX, Genesis announced losses and blamed Three Arrows Capital for its own downfall.

Genesis and DCG reached an “agreement in principle” in August, according to a statement from DCG, permitting creditors to get the majority of their money. Genesis lenders later labelled the agreement as “wholly insufficient” because the company apparently owes its top 50 creditors $3.5 billion.

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Just in: Bitwave acquires payments and accounting platform Gilded

  • The two companies have not disclosed the acquisition price.
  • Bitwave completed a $15 million Series A investment round in December 2022.
  • Gilded has over 130 enterprise clients, including mining companies.

Bitwave has bought the payments and accounting platform Gilded. The acquisition is anticipated to improve Bitwave’s enterprise solutions, which already include features for crypto payments and invoicing as well as tax tracking and bookkeeping software.

Ken Gaulter, chief technology officer of Gilded, will also join Bitwave’s technical team as a result of the acquisition. Only a few months had passed since Bitwave purchased Multisig Media before this acquisition.

In a note to a popular media house, Pat White, Bitwave’s co-founder and CEO, said:

“We see digital asset payments as faster as and cheaper than traditional payment rails— and in this hyperconnected economy, we expect that to be a game changer for businesses.”

Gilded operations

Gilded was established in 2018 by a group of developers and accountants. It was established with the intention of assisting businesses with the integration of crypto solutions into their accounting and financial reporting procedures.

Gilded has over 130 enterprise clients, including mining companies, non-fungible token exchanges, decentralized autonomous organizations, and accountancy firms, according to its Crunchbase profile. The clientele of Gilded will use Bitwave’s platform in addition to its currently available products.

Expansion of Bitwave

Bitwave completed a $15 million Series A investment round in December 2022 to grow its cryptocurrency solutions and cater to the intricate accounting needs of businesses. The financing was spearheaded by Blockchain Capital and Hack VC. Additionally, Deloitte, one of the Big Four accounting firms, and Bitwave recently announced a cooperation to provide business capabilities including linking blockchain data to ERP systems.

Acknowledging Gilded’s acquisition, White added that they “believe that crypto payments are the future. With instant settlement and incredibly low fees, financial institutions are starting to recognize the massive opportunity afforded by this technology.”

The agreement was reached soon after new accounting guidelines for digital assets were published by US regulators. The US Financial Accounting Standards Board approved recommendations on September 6 regarding how businesses should disclose the fair value of their cryptocurrencies on balance sheets.

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