Crypto Insights 07/05/2021

by Alex Clark

Interest has moved away from bitcoin and towards altcoins for the time being with Bitcoin’s price failing to clear the $58,500 resistance. It could decline heavily if there is a break below $55,500. Meanwhile Ethereum continues to perform well after surging 23.5% this week and hitting a new all-time high above $3,600. Bitcoin Cash (BCH) temporarily re-entered the top ten market capitalization rankings yesterday after a 36% overnight gain that compounded to 68% growth for the week. BCH’s value jumped from $1,068 to $1,462 in less than 24 hours leading up to Thursday, extending a significant rise from its weekly low in the $800 region. Cardano’s (ADA) price has reawakened with a 9.2% rally in the daily chart. After consolidation around the $1.30 to $1.40, ADA has reached a new all-time high and seems poised to keep smashing future resistance. And yesterday, Kraken launched staking for ADA with up to 4% and 6% rewards. Crypto exchange and derivatives platform OKEx announced the inclusion of Chia Network’s native crypto asset. The listing of Chia Net (XCH) went live on Tuesday, enabling users to trade XCH/USDT and XCH/BTC trading pairs. Chia Network is backed by some of the big names in the crypto and venture capital space including Greylock Partners, Andreessen Horowitz, True Ventures, Slow Ventures and Galaxy Investment Group. There are growing concerns that stricter cryptocurrency regulations are coming for the U.S after Gensler suggested Congress could take a role in bringing greater regulatory clarity, particularly around exchanges. The tightening regulatory grip on the crypto space is demonstrated by an order from the Californian court to Kraken to provide information on users who executed crypto deals equivalent to $20,000 or more between 2016 and 2020 to the IRS. This is to check that those who are dealing with cryptocurrency are meeting their tax obligations. Despite the considerable environmental challenges posed by mining, Norway’s minister of climate and environment revealed he is a bitcoin hodler. The minister says that a majority of the energy sources used by mining farms are ‘renewable’ in nature and argues that claims of the asset using as much “energy as the state of Texas” are overblown. Goldman Sachs has started offering Bitcoin-backed non-deliverable forward contracts to investors.

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