Crypto newsletter: Bitcoin price keeps rejecting $12K level

• Global P2P Bitcoin trading volume surging

• Ethereum fees are crippling DeFi’ growth
• German government has introduced a bill proposing to digitize securities using blockchain

After strong and seemingly steady rally in late July, stagnation returned to the cryptocurrency market.During this week most of the major cryptocurrencies were trading sideways and it seems that investors are looking for a catalyst for a bigger move. Bitcoin's market dominance decreased to 58.7%. The capitalization of all digital assets in circulation increased to almost 369 billion, while an average daily trading volume is registered at $121 billion.

Global P2P Bitcoin trading volume at highest point since Jan. 2018

Total global peer-to-peer (P2P) Bitcoin trading volumes reached their highest levels since January 2018, with nearly $95 million worth of Bitcoin changing hands on crypto exchanges like Localbitcoins and Paxful in the first week of August. The spike comes as many Latin American and African markets have seen trade activity rally into new highs over recent weeks. Also Indian P2P trade has also posted record highs for four of the past five weeks, recently pushing above $4 million for the first time.

The weekly P2P volume in Sub-Saharan Africa has reached  a new all-time high this summer. Source: Arcane Research

Bitcoin is trading in a local sideways move. The price of the cryptocurrency sits below the key resistance area at $12,000. Coin failed to break below the support at $11,000 at the beginning of the week and buyers regained control. In case of a daily close above the $12,000 level, bullish signal would be generated. However, in case we see a break below $11,000, the downward move may accelerate. Source:xStation5

 

Ethereum fees hit record levels

 

Many experts believe that surging Ethereum fees and the rising costs of interacting with DeFi smart contracts, threaten the growth of the sector. On Thursday alone, the Ethereum network processed over $6.87 million in fees as decentralized finance (DeFi) protocols on Ethereum (ETH) are becoming more popular.

In his opinion, the CEO and founder of Synthetix (SNX), Kain Warwick, high fees are negatively impacting the growth of DeFi. “In the last three months, we’ve gone from an environment where DeFi was expensive to use and a little bit slow, to now, [where] for a lot of people it’s prohibitively expensive.” Warwick told Cointelegraph. Ethereum fees have jumped nearly 100% over the past 24 hours as congestion saw transaction expenses rose above the previous high of $3.27.

Ethereum  price broke above the upper limit of consolidation range today. Should upbeat moods prevail, resistance at $506.84 may come into play. However should sellers regain control, then a test of the lower limit of the consolidation zone could be possible. Source: xStation5

Germany is planning to digitize securities with blockchain technology

 

The Federal Ministry of Justice and Consumer Protection (BMJV), together with the Ministry of Finance, has announced the publication of a draft law to promote blockchain technology. The draft law provides for the introduction of electronic securities. The Federal Government is thus taking an important step in its blockchain strategy, as stated in the official announcement:
With the establishment of digital securities, one of the central components of the Federal Government’s blockchain strategy and the joint key issues paper of the BMF and the BMJV on electronic securities will be implemented.
 

China is testing its first digital currency

China’s ministry of commerce  launched the country’s first digital currency in selected cities in the northern Chinese region of Beijing-Tianjin-Hebei, eastern region of Yangtze River Delta, “Greater Bay Area” around the Pearl River Delta and some cities in Midwestern China. Also according to recent news several commercial banks carrying out internal testing for the digital currency.

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