Investor sentiment turned bullish after the first week of September for the broader market, although price actions remained limited. Trading volumes between exchanges fell in anticipation of a sharp breakout on either side. News from the crypto world continued to tilt towards optimism.
Government and regulations
Cuba’s new cryptocurrency regulations went into effect this week and recognize crypto as a legal payment method for business transactions in the country. It comes after El Salvador announced a plan to exempt investors from paying a capital gains tax and an income tax on Bitcoin. In Korea, however, more than 60 cryptocurrency exchanges are suspended next week due to a lack of registration with the Financial Intelligence Unit.
Adoption of cryptography
Coinbase, a NASDAQ-listed cryptocurrency exchange, increased the size of its bond selling proposition to $ 2 billion from the $ 1.5 billion it planned to offer earlier this week , after receiving an influx of offers from investors. Meanwhile, Paypal has officially completed the rollout of its crypto service, allowing all eligible customers in the UK to exchange Bitcoin, Ethereum, Litecoin and Bitcoin cash. And for the first time, Time magazine recruited a crypto personality, Vitalik Buterin, the co-founder of Ethereum, as one of the most influential people in the world.
Back home, India’s first engineering institute IIT Madras (IITM) became a member of the Hedera Hashgraph Council for Decentralized Governance.
Summary of crypto news
The Solana network (SOL) was temporarily deactivated this week after an increase in transaction charges. SOL was down 12% during the week, as centralization issues emerged after the validator community voted to restart the network.
The benefits of a decentralized blockchain were demonstrated by a $ 2 billion Bitcoin transaction that was processed this week with a low fee of $ 0.78. In comparison, the fee for an international fiat transfer for the same amount would have been around $ 20 million.
BTC hovered between $ 45,000 and $ 49,000 last week, but ended with a strong rally to close above $ 48,000 with a 6% weekly gain. Its 8 week moving average provides the next strong support at $ 46,700 which could lead to a free fall to $ 42,000.
Ethereum (ETH) ended the week just above $ 3,500 with a 5% gain and mirrored BTC for most of the week.
Among the key altcoins, Avalanche (AVAX) appears to have benefited from Solana’s temporary network suspension with a 44% rally during the week to rank among the top 11 cryptocurrencies. In the top 20 list, Polkadot (DOT) gained 16% while Terra (LUNA) and Algorand (ALGO) fell by more than 8% each.
Current market sentiment is bullish for a strong rebound above the $ 50,000 level for BTC by the end of the month. BTC’s dominance has increased to 42.2% and is expected to increase further in the coming weeks.
Best winners this week (Starting at 11:30 a.m., Sept. 19, 2021)
- Cosmos (ATOM): 42%
- Ren (REN): 38%
- DAO Token (CRV) curve: 21%
- Audius (AUDIO): 19%
- THOR chain (RUNE): 15%
Top losers this week (Starting at 6 p.m., Sept. 18, 2021)
- Terra (LUNA): 17%
- FTX Token (FTT): 16%
- Arweave (AR): -15%
- Mdex (MDX): -13%
- Harmony (UN): -12 percent
The analysis only includes the top 100 cryptocurrencies. Source: CoinMarketCap
(Vikram Subburaj, CEO and co-founder of Giotuss, is part of the analysis team at Giottus Cryptocurrency Exchange.)