Summary:
- More and more crypto-based projects are looking at overseas markets
- Can a new PBoC’s digital currency be actually named in such a way?
- Ethereum breaks below the important support
Reaping benefits beyond South Korea
Over the course of the past week major cryptocurrencies stayed little changed, on balance, sellers were slightly prevailing. As a result, Bitcoin is trading still somewhat above the $10k mark, a psychological barrier for many crypto traders. In terms of interesting revelations concerning the crypto world let us begin with a story from South Korea which does not seem to be beneficial of the domestic crypto market. Namely, industry experts based in the Asian country have recently noticed a jump in crypto and blockchain-based projects which seek to list their products on platforms localized out of South Korea. They even single out some reasons which in their view could stand behind such a trend. Among them one may find stricter domestic crypto exchange market regulations or low transaction volume compounding liquidity conditions. The latter is so serious that as many as 200 smaller exchanges may be in danger of bankruptcy, according to the pundits.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appCrypto or not crypto
We informed you about the idea of a PBoC-backed cryptocurrency last week. However, things have evolved ever since and now it turns out this digital currency cannot be actually named in such a way. It’s all about the fact that the PBoC’s cryptocurrency is to be powered by a two-tier operating system making it not fully decentralized. And this is the point because decentralization is the prime feature of cryptocurrencies. As PBoC Deputy Director Mu Changchun said “This two-tier system is suitable for our national conditions. It can use existing resources to support and develop commercial banks and smoothly promote digital currency.” Until then, we have yet to know the details of the development and the release date, albeit Mu voiced his belief that the PBoC’s idea could replace cash and other digital currencies.
Ethereum breaks below the support
Looking at the Ethereum price chart one may notice that the cryptocurrency broke below the key support line nearby $200. It does not bode well for buyers as the price may experience a prolonged decline heading toward $160 or below this level - this area is also supported by the 78.6% retracement of the latest leg higher. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
