Continued demand for digital assets pushed Bitcoin past $ 55,000 and Ether above $ 3,600. And given that the crypto market partially detached itself from stock indices, it is clear that the industry is doing its best to seriously develop independently.
Months ago, the correlation between Bitcoin and the S&P 500 could be seen, but now it is no longer observed. An example of this is the recent collapse of the stock market in September and early October. The crypto market ignored the situation and, on the contrary, continued its rise despite high market volatility.
China tightens crypto regulations
People's Bank of China Governor Yi Gang said they will continue to take steps to curb the monopolistic behavior of companies that have internet platforms for trading and exchanging cryptocurrencies. They will also undertake a series of efforts to protect consumer privacy and data security.
"We will continue to cooperate with the anti-monopoly authorities to curb monopolies and actively deal with algorithm discrimination and other new forms of anti-competition behavior," Yi said.
China began to regulate the crypto industry this year, but when it realized that it is impossible to do so, it simply banned its circulation within the country. Also, since November 2020, the government has adopted a number of new rules in the field of financial technology, which forced many large technology companies to suffer significant losses. Some, such as the Ant Group, could not even go to the IPO at all. China also launched an investigation against Alibaba and Meituan, and introduced new rules on online gaming and extracurricular education.
Yi said that in the near future, companies with tech platforms and offer financial services will be required to create holding companies with subordination of all subsidiaries involved in financial activities. They will have to consolidate their balance sheets, which will strengthen control over them.
Orlando Bravo invests in Blockchain
Famous billionaire and businessman Orlando Bravo announced that his firm plans to invest in blockchain technology companies. "We will be big players on the buyout side as this industry matures-especially around blockchain technology," he said.
Bravo's company, Thoma Bravo, mainly invests in software and technology industries, but now it will branch out on blockchain technology.
Bitcoin holders are making money
Glassnode released data that says about 94.3% of Bitcoin holders are in profit. However, this is not good because the last time that such a number could be seen, a deep crash occurred in the market.
Technical analysis for Bitcoin and Ether
In any case, a lot currently depends on $ 54,444 because climbing above it will result in a further jump to $ 58,000 and $ 62,200. But if speculative traders rush to close their trades, price will drop to $ 51,000, and then plunge to $ 47,600 and $ 43,300.
In ETH, a lot depends on $ 3,600 because going above it will provoke a sharp increase to $ 3,879 and $ 4,124. Meanwhile, dropping below the level will result in a fall to $ 3,330.
Yesterday, former US Treasury Secretary Steven Mnuchin mentioned stablecoins and said they should be regulated. He commented that: "New digital assets shouldn't be like casino chips. If you are going to issue a stablecoin, the actual money should go be held in a regulated bank, in a trust account and the people who hold the stablecoins should be able to exchange those for real dollars at any time."