Cryptodiary (26.06): fuss about taxes, tumult at the crypto exchanges

June 26

The news background that affects the market, listings and updates at major crypto exchanges, bitcoin price forecasts and more in our daily column.

On Tuesday the market expectedly decided to take a break after the serious correctional growth the day before, capitalization remaining at the same $251 billion level. The news background is rather neutral. For instance, Jack Ma, executive director of Alibaba Group Holding stated that bitcoin probably is a bubble. At the same time on Monday Alibaba’s affiliate Ant Financial launched an international money transfer service based on blockchain.

Meanwhile Japan wants to to change the cryptocurrency taxation rules. At the moment the tax for crypto transaction makes a maximum of 55%, whilst the changed version would bring it to 20%, same as shares or forex. This initiative has enough opponents though, because despite cryptocurrencies being legal in Japan the authorities are still uncertain about their position in the international financial sphere.

Bitcoin managed to regain part of its weekend loss and although towards the evening June 25 the coin made an attempt to return to $6000 level it was immediately pushed back to the $6200-$6300 corridor where it is steadily stagnating at the moment. One should admit that now a very strong support zone has formed around $5750-$5900 and even if the price reaches these levels we are rather to expect a rebound than a level breakage. The bullish scenario suggests that the price would be testing the $6350 level and consolidating higher than the $6250 support. And in case of favourable development by Friday bitcoin could grow higher than $6700 and that could be sign for further growth higher than the $7000 level. Nevertheless during a month and a half the bitcoin price graph shows a downward trend every week following the same pattern: in the beginning of the week the bulls make attempts to push the price up that are successful for some time, but the correction wipes out all the results and lets the price fall even lower. That’s why it is quite possible that after testing the $6350 level the price will return in to the $6130-$6200 corridor where it will wait for further drivers.

Meanwhile opinions about further future of Bitcoin (BTC) differ. Analysts are sure that it will hardly stagnate at the current level for long. The market will go either up or down depending on the prevailing market sentiments. In the nearest future we are to see serious power struggle at the market that’s why it is early to say about reversals to one or other trend and it’s better to concentrate on trade within one day.

Jordan Hiscott as an experienced trader expressed the opinion that we haven’t yet seen the bottom of the bitcoin price fall and before summer ends it could easily reach $5000 level.

«... not having the backing of governments, unlike fiat currencies, makes crypto vulnerable, which is evident in today’s fall in the value of Bitcoin,» Hiscott commented the latest tightening of regulation at the asian market.

Todd Gordon, founder of TradingAnalysis also predicts the bitcoin price falling below $5000 in the nearest future that would be followed by rapid growth towards $10 thousand within this year.

Nevertheless there are even more optimistic versions. A group of digital assets market researchers is sure that with the emergence of bitcoin ETF the price of the most popular digital currency could rocket to somewhere between $25 000 and $44 000 (The numbers have been voiced by IronWood’s Michael Strutton). Arrival of institutional investors to the industry that is expected at the end of this year could become the main driver of the next mid-term bitcoin price. This is the opinion of co-founder of BlackTower cryptocurrency hedge fund, Ari Paul. He believes that the main issue that prevents institutional investors to enter the cryptocurrency realm is lack of secure means for digital assets storage.

Ethereum (ETH) has lost nearly 5%. The $485 support breakage sent the price still lower to the next support of $422 that is the top of a strong support zone $400-$422. At the moment the coin price is revolving within the interval of high trade volume $440-$480, gradually lowering to the lower point. The rebound upward is still in question and the investors aren’t too eager to invest in ETH, worried about high volatility.

Ripple (XRP) has lost 1,85% and does not have the potential to return to $0,6 level. At the moment the price is in the $0,47-$0,48 interval. At the CB Insights Future of Fintech conference Brad Garlinghouse, head of Ripple Labs voiced the opinion that sooner or later Coinbase should list this cryptocurrency because as the scaling problem gets solved the XRP token would attract more attention from major financial organizations. Also he denies centralization claims saying that holding large amounts of XRP doesn’t mean you have full control over the network.

According to Omni Explorer the Tether (USDT) stablecoin has emitted $250 million worth of new tokens yesterday. This move has brought Tether to the 10th position of the cryptocurrency rating by cap that had been occupied by TRON (that lost 5,5% after the token migration) before. But Tether’s position is rather unstable. The last emission worth $250 million has been carried out in May, and earlier in March when 300 million tokens were emitted the event slightly lifted the bitcoin price and aroused a wave of criticism and doubt that the company would be able to back the tokens as was declared, at the ratio 1:1 to USD.

Crypto exchanges

The Tokyo exchange refuses to register new clients as at the demand of the regulator it has to verify the ones that are registered already. Specialists have discovered a number of flaws in the platform’s internal management systems including anti money laundering measures. And before these are fixed the exchange management decided to limit new user registration.

Meanwhile Yuzo Kano, CEO of bitFlyer cryptocurrency exchange and Noriyuki Hirosue, CEO of Bitbank have voluntarily left the posts of vice presidents of Japan Virtual Currency Exchange Association (JVCEA). Both exchanges were notified by the FSA on enhancing the anti money laundering procedures, but the exchanges themselves will remain in the association.

The largest cryptocurrency exchange Binance has temporarily suspended acceptance and withdrawal operations due to scheduled update. The update was successfully carried out but because of risk management system warning some of the features are unavailable. The exact time of the trade and withdrawal resume is yet unknown.

By the way Binance CEO Changpeng Zhao stated that they are ready to resume adding new altcoins they put on hold for the sake of fair competition for the other exchanges to catch up. The last six weeks Binance has added 11 tokens among them: Pundi X (NPXS), Siacoin (SC), Streamr (DATA), Nexus (NXS), SingularityNET (AGI), IoTeX (IOTS), Theta Token Civic (CVC), ZenCash (ZEN), Augur (REP), Bytecoin (BCN). Each time a new coin was listed its price notably grew. And also this year Binance plans on launching a new decentralized exchange service.

Meanwhile the American branch of another large cryptocurrency exchange, Huobi will be  lead by the former manager of the chinese photo editor app Meitu. The CEO appointment is carried out in view of the launching of the branch that has already registered as a financial service provider in the USA.

Mining department of the BTCC crypto exchange agreed to sell 49% share for 147 million Hong Kong dollars ($17 million). The potential buyer is Value Convergence Holdings Limited. At the moment BTCC, that continues the work of the oldest Chinese cryptocurrency exchange BTCChina that was closed September 2017, controls about 2% of the bitcoin hashrate and the Mobi wallet.

A relatively new cryptocurrency exchange CoinEx that was founded by ViaBTC CEO Haipo Yang and that  is managing the mining pool with the same name announced new pairing for Ethereum (ETH) and Tether (USDT). After update the platform will pair ETH with: CET, BBN, KAN, EO, OM, HYDRO, BTM, VET, ZRX, LOOM, TRX, SEER, MT, WINGS, CTXC, ZIL. USDT will pair with: XRP, EOS, DASH, ZEC, XMR, SC. And according to CoinEx representatives in the future new pairs will be added.

Alas, problems could not be avoided. At the Korean Bitkoex exchange that was launched in May, as a result of one of the staff’s negligence personal data of 19 users who hold Karma (KRM) tokens has been leaked. The incident placed at risk assets worth 750 million won ($620 thousand). Nevertheless according to Bitkoex representatives the assets were sent to cold wallets at once and now are safe.

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1 comment
Денис Николаевич
last year
Как-то непонятно падение постоянное курсов. Складывается ощущение, что делается это искусственно в чьих-то интересах.


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