- Bitcoin breaks above $18000 a level not seen since December 2017
- SEC outgoing chairman affirms Bitcoin is a “store of value”
- Zcash experiences first halving in history
The last seven days were very positive overall for the cryptocurrency market. Bitcoin keeps rising convincingly, reaching levels basically not seen since December 2017, but is not overshadowing altcoins anymore. Over the last 24 hours, most of the top ten crypto assets recorded considerable gains, with Litecoin and Polkadot emerging the biggest gainers. The capitalization of all digital assets in circulation increased to 515.2 billion, while an average daily trading volume is registered at $146.8 billion. Bitcoin's market dominance increased to 65.7%.
SEC Chair predicts accelerated growth for Bitcoin
In an interview for CNBC’s Squawk Box program, current U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton noted that Bitcoin is a payment mechanism and a "store of value" and the inefficiencies in the traditional financial system is driving BTC’s price. Clayton who is known for his strict approach towards the cryptocurrency market also predicts increased regulation for the whole industry. While commenting statement from JPMorgan CEO Jamie Dimon which claims that the US government will regulate Bitcoin if it gets bigger, Clayton said "we did not regulate Bitcoin as a security," Further clarifying the SEC’s criteria for classifying an asset as security, Clayton said this occurs when a cryptocurrency is used to raise capital and reminded that the government does regulate payments.
Meanwhile Deutsche Bank has revealed increased institutional interest in Bitcoin as opposed to gold as an inflation protection asset. In the period from 6 to 17 November, gold and silver decreased by 3.6% and 4.4% respectively while Bitcoin jumped 13.4% consolidates itself as a strong alternative to the traditional safe heaven assets. Deutsche Bank states: "There […] seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation and other things."
Deutsche Bank analysts believe, that BTC may have become a serious contender to gold. Source: Deutsche Bank
BITCOIN – price briefly dropped below $18 000 however upward trendline provided strong support. Next major resistance lies at $18 500 level. Should the price break above it, the way towards the all-time high at $19,783 will be left open. However if sellers will manage to break below the aforementioned trendline, then the downward correction may start. Nearest support lies at $16 800 and is additionally strengthened by 50 SMA (green line). Source: xStation5Zcash has completed its first halving
Zcash is the 34th largest cryptocurrency focused on privacy and anonymity based on zk-SNARK zero-knowledge proof technology. Zcash debuted on October 28, 2016, as a decentralized cryptocurrency and recently underwent its first halving in conjunction with a fifth network upgrade called Canopy. Halving occurs when the block subsidy, generated from new coins mined, is divided by two. The coded-in event usually takes place every four years at particular block heights depending on the particular chain. In case of Zcash block rewards for miners have been reduced from 6.25 ZEC ($391) to 3.25 ZEC ($196). Usually, the reduced coin supply leads to a price increase however Zcash price fell after halving. Meanwhile the new network establishes a new development fund while the controversial Founders Reward has come to an end. According to new rules, miners will receive only 80% of the block reward, while 20% will be distributed between developers, investors and founders.
ZECBTC – pair is trading near the all-time low of 0.0315. RSI recently moved out from the oversold area which could herald a potential upward correction. The nearest resistance lies around 0.0357 level and is strengthened by 50 SMA (green line). Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
