Out of the Woods?

GB Market Commentary 01/10/2021

by Will Morris

Bitcoin has broken out of the descending wedge that has formed over the past few weeks, usually regarded as a bear signal. However, a breakout to the upside could flip this to a bull sign, the technical target of the falling wedge, the top of the wedge, would be $53k. However, trading volume remains very low, if this persists it could break back to the downside. $48.8k has been highlighted by traders as a very key resistance level for Bitcoin, if it can keep above this level outlook could be positive for the weekend. At the time of writing Bitcoin has bounced off $45k and is currently trading just below.

The global crypto market is once again pushing $2trn, VeChain, Qtum and OMG are the top 3 performers on CoinmarketCap – all up over 15%.

NFT Virtual Land Platform prices have grown 42,000% in one month. Next Earth claims to be the only blockchain based virtual land ownership platform based on the exact copy of the earth. The website claims that “Metaverse and virtual land ownership are super hot!”. NextEarth are selling one-hundred square meter plots of land called tile’s as digital real estate on the blockchain. The Arc de Triomphe was originally purchased for 100 BUSD and re-sold for around 3,400 BUSD on the first day after launch. The term Metaverse refers to virtual existence that exists independent of the real world.

Visa has published a whitepaper titled “Universal Payment Channels” which discusses CBDC and stabelcoin interoperability. Visa proposed a hub-and-spoke payment route, which would function similarly to existing interoperability solutions. Visa outlines multiple use cases for the UPC, including cross-border payments for CBDCs and a marketplace for digital currencies.

El Salvador has started mining Bitcoin using Geothermal energy from volcanos. This follows a growing trend across the Bitcoin ecosystem as well as other crypto projects to switch to renewable energy – driven by ethical, societal and economic good – over 56% of Bitcoin is estimated to be mined using green energy. Adverse to recent rhetoric Bitcoin and the crypto ecosystem has the potential to drive the green revolution forward and is currently doing so.