The Basel Committee on Banking Supervision on Thursday proposed that a 1,250% risk weight be applied to a bank’s exposure to Bitcoin and certain other cryptocurrencies.
In China, police have arrested more than 1,100 people on suspicion of using cryptocurrencies to launder illegal proceeds from phone and internet scams in a recent crackdown, the Public Security Ministry said. The arrests came as Chinese authorities intensified their crackdown on the cryptocurrency trade.
The top 10 digital currencies traded up to 6% lower at 9:30 a.m. (IST) on Friday. The crypto market has also become skeptical of El Salvador’s decision to legalize Bitcoin.
El Salvador became the first country to adopt bitcoin as legal tender. This is likely to undermine the ability of central banks to act as lender of last resort. Salvador’s experience will provide the first opportunity for analysts to assess the impact of cryptocurrency on an economy.
“We have seen a very choppy session across the crypto spectrum over the past 24 hours. Most digital tokens have collapsed. Bitcoin, however, was the talk of the city after El Salvador announced its decision to accept Bitcoin as legal tender, ”said Edul Patel, CEO and Co-Founder, Mudrex.
The IMF has raised serious concerns about El Salvador’s decision to take bitcoin. “We are closely monitoring developments and will continue to consult with the authorities.”
According to ZebPay Trade Desk, “The week has been in the red for most assets in the crypto space. The market has seen lower prices, volumes and market capitalization. This suggests that general sentiment in the market is still bearish, However, after the market reset, volatility also decreased among these assets. ”
Bitcoin’s recent rebound has yet to dispel doubts about its vulnerability. While the momentum may encourage the bulls, a JPMorgan Chase said the backlash into the futures market – where the spot price is higher than the futures price – is cause for caution.
Global regulators have proposed to introduce capital requirements for banks dealing in cryptos. The announcement of the Basel Committee on Banking Supervision is another sign that the mainstream financial world is reacting to the rise of crypto assets.
Technical view: ZebPay trading desk
Bitcoin Cash is a peer-to-peer electronic payment system. It creates the infrastructure required for fast payments, micro fees, privacy, and high transaction capacity (large blocks). It is the 12th largest cryptocurrency with a total market cap of $ 12 billion.
It is a decentralized and unauthorized cryptocurrency, and therefore does not require a trusted third party or central bank. BCH has a limited supply of 21 million coins, so rare. Transactions are very fast and the transaction fees are as low as $ 0.01. Today, many traders accept BCH as a form of payment.
BCH, after hitting the low of $ 467.8, showed a good rally and jumped nearly 72% to $ 807.27. The asset then resisted these levels and prices fell by almost 32%.
Technically, over the daily period, the asset trades sideways in a “symmetrical triangle” pattern (during this period of indecision the highs and lows seem to meet at the point of the triangle with virtually no significant volume). Therefore, breakouts on either side with good volumes will decide the trend more.
Support: $ 539.19 and $ 467.80
Resistance: $ 721.55 and $ 868.55
The time is in UTC and the daily time is 12:00 to 12:00 UTC
(The opinions and recommendations given in this section are those of the analysts and do not represent those of ETMarkets.com. Please consult your financial advisor before taking a position in the mentioned asset (s).)