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Binance Discontinues Futures and Derivatives Products in Germany, Italy, and the Netherlands

Binance, the leading cryptocurrency exchange by trading volumes, announced it is discontinuing its derivatives and futures products in Germany, Italy, and the Netherlands. This is likely the consequence of the regulatory crackdown that governments all over the world have exerted on Binance lately. The company also stressed this was the start of a complete plan […

“The Death Of China’s Bitcoin Mining Industry,” 7 Takeaways From The Article

Did China make the mistake of a lifetime by banning Bitcoin mining or do they have a secret plan? That’s the question the whole Bitcoin ecosystem is struggling to answer. And today, we got another piece of the puzzle. In the article titled “It’s Over, It’s All Over” – The Death Of China’s Bitcoin Mining Industry,” a pseudonymous manager by the name of Ye Lang tells his story. And in his tale, a bigger story is reflected. Related Reading | Bitcoin Hash Rate Goes On Death Spiral Post China’s Crackdown On Miners On May 21st, in a “meeting of the State Council’s Financial Stability and Development Committee, a top-level economic and financial policymaking body chaired by Vice Premier Liu He,” China decided to ban Bitcoin mining. Less than a month later, on June 19th, the Sichuan government ordered “the closure of Ye’s facility, along with 25 other cryptocurrency mining projects in the province.” That story started like this: Ye decided to jump on the Bitcoin mining bandwagon in 2018 when he closed down the majority of his internet café business, mortgaged his apartment in Anqing, Anhui province, borrowed money from relatives and left his wife and daughters to move to Sichuan What can we learn from Ye’s first-hand experience? 1.- It Only Takes 80 Employees To Manage An 80,000 Bitcoin Miners Operation At the peak of the facility’s Bitcoin mining operations, Ye was in charge of 80 employees and a total of 80,000 mining machines, with the entire project estimated to be earning more than 90 million yuan ($14 million) during the peak six months when Sichuan’s rivers are glutted and electricity is especially cheap The numbers are staggering. Evidently, supersizing mining operations offers a huge advantage. Especially in regions with cheap electricity. 2.- Clean An Renewable Energy Didn’t Save Sichuan The fact that the electricity for crypto mining in Sichuan came from clean hydropower meant that many thought the province would be a safe haven for Bitcoin miners. As pressure on local governments to cut carbon emissions mounts, projects were successfully shuttered in some other provincial-level regions — such as Xinjiang and Inner Mongolia — where the mining was chiefly fueled by coal.  The only thing we can know for sure about the Chinese government’s plan is this: the environment is not on their radar. They’re closing these mining operations for other reasons altogether.  3.- Bitcoin’s Energy Use Is Not The Issue The fact that the Sichuan crackdown was about to hit, confirms what everyone has known: the “justification” for cracking down bitcoin miners, the cold shoulder on bitcoin by social luminaries (such as Elon Musk) and the use of the ESG bullshit excuse that crypto is “dirty” have always been merely a socially-acceptable smoke screen for a regulatory crackdown on cryptos when they become too big. Enough said. ZeroHedge nailed it on the head.  It’s also worth noting that Nic Carter also nailed it on the head regarding China’s energy mix when it came to Bitcoin mining. 4.- Individuals Can Still Mine Bitcoin In China Despite the government’s hardline approach, Ye is determined to carry on: “This industry is extremely volatile. High emotions and stress are involved, but that’s also its appeal. Companies are banned from mining Bitcoin, but individuals aren’t,” Ye said, adding that he plans to turn around his operation by purchasing old equipment and downsizing. The Chinese government was only worried about industrial-sized private mining operations. The question is why. What are they planning? Nobody seems to have figured that out. 5.- One Owner Mined Between 70 and 80 Bitcoins Per Day Another character enters the scene, the owner of the mine. We’ll call him Liu Weimin, also a pseudonym.  Liu owned more than 10 Bitcoin mining farms, which industry insiders estimated accounted for one-eighth of the total electricity consumed by all Bitcoin mines in the province. During peak seasons, Liu said his farms could mine 70 to 80 Bitcoins every day. About 900 Bitcoins are issued each day globally, according to an industry information platform. Almost 10% of the total daily issuance seems like too much for a single individual. The Bitcoin world scored a huge win with the Chinese ban on Bitcoin mining.  BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com 6.- A Industrial-Sized Mine Can Break Even In A Year “Mining farms are somewhat like conventional crop farms. No matter how the Bitcoin market changes, the mining process remains. Opening such facilities is a relatively stable investment, and I can generally break even in a year,” Liu told Caixin. There are few businesses in the world that can give you that ROI. At least among the legal ones. Food for thought for the young entrepreneurs out there. Related Reading | How China Bitcoin FUD Is Lowering The Cost To Produce BTC 7.- Bitcoin Mining Used To Be A Respected Business In China Thanks to the Sichuan government’s mining-friendly policies back then, Liu’s business continued to flourish for the past three years. He quickly made a name for himself, and was a frequent guest at government events and meetings, where he was recognized as one of many model energy consumers who had helped lift locals out of poverty. From a respected businessman to a social pariah. It would be easy to feel sorry for Liu if he wasn’t on his way to restore his business. Following the government’s May 21 crackdown announcement, he arranged teams of employees to scout for new venues in North America and Kazakhstan. In mid-June, his company bought an oilfield in Canada that could potentially provide fuel for his Bitcoin mining business. So, why did China banned Bitcoin mining? We have no idea. We know, however, that their hold over the industry was already waning and that entrepreneurs are selling small hydropower stations. And we have both Ye and Liu’s stories. Is the picture clearer? Are we closer to the real deal? Featured Image by Лечение Наркомании from Pixabay – Charts by TradingView

TA: Bitcoin Remains At Risk, Why BTC Could Nosedive Below $38K

Bitcoin price struggled to recover above $40,000 and extended its decline against the US Dollar. BTC could dive below $38,500 if it continues to stay below $40,000. Bitcoin extended its decline below the $40,000 and $39,200 support levels. The price is now trading well below $40,000 and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $39,250 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must break $39,250 and $40,000 to start a fresh increase in the near term. Bitcoin Price is Struggling Bitcoin price started a fresh decline from well above $42,000 level. BTC broke the key $40,500 support level to move into a short-term bearish zone. The price even settled below the $40,000 level and the 100 hourly simple moving average. It even broke the $39,200 support zone and traded as low as $38,711. The price is now consolidating gains above the $38,700 level. An initial resistance is near the $39,250 level. There is also a major bearish trend line forming with resistance near $39,250 on the hourly chart of the BTC/USD pair. The first major resistance is near the $39,600 level. It is close to the 23.6% Fib retracement level of the recent decline from the $42,630 swing high to $38,711 low. Source: BTCUSD on TradingView.com The main resistance is now forming near the $40,500 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $42,630 swing high to $38,711 low. If there is an upside break above the trend line and then $40,000, bitcoin could rise towards $40,500. The next major resistance on the upside is near the $41,200 zone. More Losses in BTC? If bitcoin fails to climb above the $39,250 and $40,500 resistance levels, it could continue to move down. An initial support on the downside is near the $38,700 level. The first major support is now near the $38,500 zone. A clear downside break below the $38,500 support might encourage the bears for more losses. The next major support is near the $37,000 zone. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level. Major Support Levels – $38,500, followed by $37,000. Major Resistance Levels – $39,250, $40,000 and $40,500.

Bank of America Sees Benefits in Adopting Bitcoin as Legal Tender in El Salvador

Bank of America has outlined some benefits to be had from adopting bitcoin as legal tender in El Salvador. The opportunities include low-cost remittances, financial digitization, more choices, and greater investments from foreign companies. Bank of America Highlights Opportunities Bitcoin Brings to El Salvador as Legal Tender Bank of America (BOA) outlined some potential benefits […

Ethereum Price Could hit $3K this week! Metrics Make a bullish Case

The post Ethereum Price Could hit $3K this week! Metrics Make a bullish Case appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
Ethereum price over the weekend has decoupled from BTC and continued to be on a rising trend. Even as it faced minor retracements it still traded in the green for the entire weekend. At the beginning of the weekend, buyers pumped ETH above the $2,500 resistance and lift the ETH/USD pair out of short-term consolidation. …

On-Chain Expert Predicts $162K Bitcoin Peak This Cycle

Bitcoin continues to beat expectations this year. Despite most investors speculating the bull market was already over, the digital asset has posted another rally that shows that the market might in fact still be in a bull cycle. The last two weekends have seen bitcoin prices adding at least $4,000 in the span of three days. Breaking what has been a slow and brutal downtrend cycle in the market for the last month. Now, on-chain expert Willy Woo was on the podcast What Bitcoin Did to talk about the price of bitcoin and give his predictions regarding the price. Woo, for one, does not believe that the digital asset has peaked yet for 2021. Giving incredibly positive predictions for the asset for the rest of the year. With just five months left to go, there is still ample time left for various predictions to play out. Related Reading | Bitcoin To Reach New All-Time Highs, Market Strategist Willy Woo’s forecast shows that the expert still believes the bull run is still on, made evident by the recent price movements registered in the market. Digital currencies like bitcoin were showing gains of up to 10% in a day as prices rallied to push the coin value higher. No Bear Market Woo said on the podcast that there would be no full-blown bear market following the ending of the current bull cycle. This would mean that the price of bitcoin would most likely keep fluctuating, but probably never get to the points the market had following the last bull market in 2018. Related Reading | Fast Money’s Brian Kelly Remains Bullish On Bitcoin, Here’s Why Continuing on, Woo said there would be no repeat of the 2013 cycle imprint. Bitcoin would likely chart new courses, as even now, the digital asset has shown deviating patterns from other bull markets. As it seemed the bull market had drawn close after the May price crash. But the recent recoveries show that indeed, the digital asset is charting new courses going forward. Following this, Woo believes the digital asset’s price would just wander around with supply and demand. And even halving events that lead to a price increase would have significantly less impact on the value of the asset. Related Reading | Why Another Wave Up For Altcoins Is Probable According To BTC Dominance Woo predicted bitcoin peaks would be less dramatic. Since price peaks of the digital asset have almost always been a short run-up, which leads to new all-time highs. Followed by sharp price crashes that usher the beginning of the next bear market. This would mean that bear phases would be shorter also, according to Woo. Lasting for fewer periods of time than previous bears. Future Bitcoin Price Action Woo’s price prediction for Bitcoin placed it at $162K. Going as far as saying that a $200,000 price mark is still possible for the digital asset this year. This puts Bitcoin on a tremendous run path to get to such a high prediction. BTC price continues to trend around $39,000 | Source: BTCUSD on TradingView.com But with factors like miners getting situated after the China exodus and mining difficulty going back up, the price of the digital asset could very well be on its way to another rally. Woo also commented on the extended theory cycle for the coin, predicting that the asset will gain even more popularity after the current cycle ends. Commenting more on his price predictions, Woo said, “I have this model. In past cycles, it hit the upper bound before the bull market ended. I have this great situation where I don’t have to be exactly right cause it’s just a moving target. The upper band today is $162K. The current trajectory, $200K.” Related Reading | 8 Green Candles: Here’s What Happened The Last Time In Bitcoin Like with every other prediction, only time will tell if Woo’s prediction turns out to be the case. But this provides more insight into the fact that bitcoin maximalists still believe the pioneer cryptocurrency to be wildly undervalued even at its current price. Featured image from CNBC, chart from TradingView.com

Korean Regulator to Shut Down 11 Cryptocurrency Exchanges Ahead of Regulatory Deadline

South Korea’s top financial regulator will shut down 11 cryptocurrency exchanges allegedly engaged in fraudulent bank account schemes, local media reported. Meanwhile, the deadline for all crypto exchanges to comply with the country’s regulation is drawing near and most of them have not been able to meet the requirements. 11 Crypto Exchanges Could Be Shut […

Digital Transformation Law Draft Would Allow Users to Pay Mortgages With Crypto in Spain

A new proposal of a digital transformation law, written by a group of lawmakers in Spain would introduce the possibility of paying mortgages with cryptocurrency. The law draft also gives different incentives for companies and organizations using and developing solutions using these technologies, including tax cuts. Banks are also included in the regulation, and the […

Bitcoin Fundamentals Suggest Cryptocurrency Is Massively Undervalued

Bitcoin price action might not reflect it, but the leading cryptocurrency by market cap could be massively undervalued, according to a variety of fundamental metrics that focus on coin issuance. These tools are widely known, but when combined paint a clear picture that backs up any chance that the top coin by market cap is actually undervalued at $40,000 per BTC. Speculative Boom And Bust Cycles And The Impact On Perception Of Value Any asset – be it stock, currency, commodity, or otherwise – goes through boom and bust cycles; bull and bear markets. These cycles are more rapid and take place more frequently in crypto than they do in traditional market counterparts. The reason is both due to the always-on 24/7, global crypto market and the speculative nature of Bitcoin, Ethereum, and other top coins. Even with adoption taking place, they’re still far from achieving their potential. Related Reading | Five Bullish Monthly Charts That Suggest Bitcoin Will Blast Off When speculative assets reach a peak of a bull cycle, they are typically far more overvalued than they should be, which causes such an extreme correction back down toward the “mean.” During bear cycles, speculative assets tend to overcorrect as things appear worse off than they actually are. Bu this is Bitcoin, and the leading cryptocurrency by market cap might be undervalued even though it recently made a bull market “peak.” S2F and the Puell Multiple point to an undervalued BTC | Source: BLX on TradingView.com Bitcoin Undervalued According To S2F Model, Puell Multiple Bitcoin might have collapsed by 50% along with the rest of the crypto market, but it could be significantly undervalued currently due to the overcorrection. Bitcoin corrected and it was characteristically extreme, but due to the ongoing lack of supply the cryptocurrency is significantly below the normal trajectory through the stock-to-flow model “bands”. Related Reading | Bitcoin Trend Strength Indicator Suggests Bull Run Isn’t Yet Over In addition, the Puell Multiple is bouncing from lows, and during this cycle has yet to enter the red zone which is standard of any Bitcoin bull market “top.” The Puell Multiple is calculated “by dividing the daily issuance value of bitcoins (in USD) by the 365-day moving average of daily issuance value.” The S2F model is more complex, but both look at how issuance impacts overall supply and the price per BTC. Combined, the two fundamental tools suggest that the bull market isn’t finished, and is entering its final stages. The last leg up in Bitcoin as past cycles have proven, will be dramatic and entirely driven by FOMO and a distinct lack of supply. Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Chief Market Strategist Watching Possible W-Bottom Formation In Ethereum

According to a chief market strategist, Ethereum could form a possible w-bottom, an indicator that usually suggests a bull market. Strategist: Ethereum Might Form A “Higher High” In a call with MarketWatch, Matt Maley has said that ETH could be moving in a bullish direction if certain conditions are met. Maley is a chief market strategist at Tabak and Co., and during the call with MarketWatch, the strategist has talked about Bitcoin and Ethereum. According to Maley, the 200 Daily Moving Average (DMA) is an important level, breaking above which would be bullish for the crypto. At the moment, this value is around $2,141, something ETH has already broken. Ethereum could then go on to break $2,880, the same value as the high from late May-early June, to form an indicator called the “higher high”. The crypto has already formed “double bottoms” and a minor higher high. ETH only needs to form a more important higher high now. According to Maley, something like this would be “particularly bullish” for the cryptocurrency. However, one thing to note is that ETH is somewhat overbought right now, based on the Relative Strength Index, which is an indicator that measures the ratio of the recent losses to recent gains. Related Reading | TA: Ethereum (ETH) Outpaces Bitcoin, Why Bulls Aim Larger Increase When ETH is said to be overbought, it means the cryptocurrency is believed to be trading above its fair value. Investors “overbuy” without any investment rationale, and the price goes up. Usually, a phase of overbought is followed by a selling period. ETH Price At the time of writing ETH’s price floats around $2.6k, up 12% in the last 7 days. Over the past month, the cryptocurrency has amassed 19% in gains. Below is a chart that shows the trend in the price of Ethereum over the last 6 months. ETH continues to enjoy the upwards trend | Source: ETHUSD on TradingView As the graph shows, the crypto has been on an uptrend since 20 July. On a closer examination of the graph, it becomes apparent that the coin seems to be forming a “W” where the first peak was the earlier mentioned $2,880 point, with the first bottom following soon after in the third part of June. Related Reading | Ethereum Breaks 200,000 Validators Milestone, Over $14 Billion Now Staked In ETH 2.0 After that, ETH forms a smaller peak early July, and another bottom on the aforementioned 20 July. Now, if ETH continues to follow the uptrend, it will return to the point of the first peak. This is the important “higher high” that’s needed for a bullish trend. However, it’s unclear whether Ethereum can break that level as the crypto is slightly overbought right now. The price could go down if investors decide to sell before the higher high is made.

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