- Agricultural Bank of China reiterates crypto ban
- Sichuan shuts down Bitcoin mining
- Ethereum fell below $1900
The past week was another negative one for the cryptocurrency market. Major projects tried to erase some of the recent losses in the first part of the week and Bitcoin managed to break above $41,000 following news that most popular cryptocurrency will become the official means of payment in El Salvador, Musk's statements about the possible resumption of accepting payments for Tesla cars in bitcoin, and Microstrategy's announcement on further purchases of digital assets. However the bullish move turned out to be short-lived and crypto currencies were trading under pressure for the rest of the week as FED hawkish comments and further news from China weighed on sentiment. Bitcoin's dominance increased to 45.3%. The capitalization of all digital assets in circulation fell to 1.34 trillion, while an average daily trading volume is registered at $101.4 billion.
Bitcoin market dominance moves slightly higher. Source: Coinmarketcap.com
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เปิดบัญชี ลองบัญชีเดโม่ ดาวน์โหลดแอปมือถือ ดาวน์โหลดแอปมือถือChina reiterates crypto ban
Cryptocurrencies fell sharply today after the Agricultural Bank of China reiterated its ban on crypto. Accounts of customers dealing with crypto will be closed and transactions reported to relevant authorities, the bank said in a statement published on its website which was later removed. China reiterated its long-held crypto ban last month, citing dangers associated with speculative trading. On Friday, the local government in Sichuan province ordered 26 local Bitcoin mining operations to shut down. In late 2019, CoinShares estimated that Sichuan hosted more than half of global hash rate, attracting miners with its cheap and seasonally abundant hydropower. These actions only increased concerns regarding regulatory crackdown, sending cryptocurrencies lower.
Meanwhile Bitcoin mining company stocks outside China start to move higher. The market caps of the three biggest publicly traded bitcoin mining firms rose sharply since the beginning of June after falling to lows in mid-May. Riot Blockchain (RIOT.US) rose from $2.08 billion to $3.4 billion, up 63%. Marathon (MARA.US) also witnessed a significant 55% increase.
Market caps of mining firms Riot Blockchain, Marathon Patent Group and Canaan (CAN.US) rose on average 49% within last month. Source: The Block
BITCOIN launched the week lower and is currently testing local support at $33,210. Should break lower occur, then support at $2900 may be at risk. Also medium-term 50-day SMA (green line) crossed under the medium-term 200-day SMA (red line). This has formed a bearish ‘death cross’ which can at times precede a turn lower. The nearest resistance is located at $40,000. Source: xStation5
Ethereum under pressure
Ether, the second most popular cryptocurrency, dropped below $1,900 during today's session, hitting the lowest level since May 23. Meanwhile gas fees or transaction costs on the Ethereum blockchain fell nearly 90% over the past month as the number of transactions of both decentralized finance (DeFi) and non-fungible token (NFT) declined sharply after the recent sell-off.
Gas fees on the Ethereum blockchain dropped sharply in recent weeks. Source: The Block.
ETHEREUM started Monday’s session with a downward move. Price is approaching major support at $1839 which coincides with long-term upward trendline and 200 SMA (red line). Should break lower occur, then downward move may accelerate towards support at $1425. On the other hand, if buyers will manage to halt declines here, then nearest major resistance lies at $2500. Source: xStation5
