CRYPTO TODAY
Crypto Outlook
All coins have turned red yesterday as the cryptocurrency market witnessed one of the worse dips recently.
BITCOIN PLUNGES!
A bullish mood was on the rise as Bitcoin became formally recognized as legal cash in El Salvador, but BTC’s 16 percent collapse immediately doused the excitement in less than 30 minutes.
Traders were caught off guard on the 7th of September when the price of Bitcoin (BTC) fell below $43,000, causing large liquidations in derivative markets worth more than $3.54 billion.
Despite the plunge, the global crypto market cap is $2.01T, a 15.52% decrease over the last day, and Bitcoin’s dominance rate over 42%.
ANALYSTS GIVES REASON FOR BITCOIN DIP
- As BTC falls in value, longs are being heavily liquidated.
Willy Woo, an on-chain expert, provided a fact-based appraisal of the market's current situation in the following tweet, which summarized the events of Sept. 7.
Day opened with equities risk-off.
Some sell down of BTC.
Medium levels of fundamental inflows (selling).
Then stop hunt/liquidity collapse.
$1.1b of BTC liquidations.
Overall unsupported by investor fundamentals on-chain.
Exchanges are now in outflows (buying)
— Willy Woo (@woonomic) September 7, 2021
As Woo pointed out, the larger financial markets started the day risk-off, putting pressure on the crypto market that cascaded throughout the day.
- A possible deviation has been discovered.
Michal van de Poppe, a Market analyst, shared more insight into Bitcoin’s price activity on the 7th of September, highlighting the impact of overleveraged traders in the day’s price action.
#Bitcoin lost that $49K level as crucial support and smacked through it.
What just happened?
Overleveraged positions getting liquidated in a chain reaction, causing a massive wick.
If this wick closes above $47/48K, it will be an outlier.
Opportunities.
— Michaël van de Poppe (@CryptoMichNL) September 7, 2021
If BTC can close above the $47,000–48,000 range following this retreat, it will be deemed an anomaly to the previously established trend and a solid buying opportunity if the rally resumes, according to Poppe.
ETHEREUM GAS FEE SURGES TO A NEW HIGH AS NFT MINTING GAINS TRACTION
Ethereum continues a streak of increased gas fees attributed to the continued interest in NFTs over the months.
Vitalik Buterin, the founder of Ethereum, spoke out about the growth of non-fungible tokens (NFTs) on the Ethereum blockchain. He stated that converting all NFTs to layer-two solutions will solve the problem of excessive gas fees. Buterin claims that the mainstream blockchain is currently overcrowded, causing issues such as high transaction costs. To address scalability difficulties, he urged blockchains and NFTs to migrate to L2. In addition, the ETH founder stated that the NFT ecosystem is rapidly growing and would soon be “too vast for one single rollup to handle safely.”
SEC SET TO SUE COINBASE OVER THE CRYPTO YIELD PROGRAM
The United States Securities and Exchange Commission (SEC) reportedly threatens to sue Coinbase over a crypto yield program it deems as security.
With the recent uprising, Coinbase CEO Brian Armstrong opposes this move by the SEC as he describes it as “sketchy” in a Twitter post made by him on September 8. Armstrong explained that Coinbase approached the SEC earlier this year to brief them about the upcoming Coinbase Lend program that intends to offer 4% annual yield returns on deposits of the USDC stablecoin.
According to Brian Armstrong, the SEC responded by telling the firm that the lending program is security without further explanation and threatened to sue if the firm launched the service.
With the recent dip in the market, we’re yet to ascertain what impact this news will have on the market, but it sure spells trouble for the firm and others offering these high-yield products.
EL SALVADOR, THE FIRST COUNTRY TO LEGALIZE BITCOIN AS A LEGAL TENDER
Advocates of the digital currency, including the country’s president, Nayib Bukele, have called the policy, which went into force Tuesday morning, “historic.”
The cryptocurrency’s most vocal proponents have praised the country’s final adoption of Bitcoin, arguing that it will usher in a new era of financial independence. President Nayib Bukele ceremoniously acquired 400 Bitcoin worth a little more than $20 million for El Salvador to bring in the new law.
However, as the country opened its digital wallet software to residents and consumers for the first time, the first few hours of Bitcoin’s legal status in El Salvador were plagued by technological glitches, not to exclude defiant oppositions from some Salvadorians who believe this may be another autocratic move by the President.
EL SALVADOR COMPELS MERCHANTS TO ACCEPT BTC TRANSACTIONS
Following the historic move by the country, Javier Argueta, the legal counsel to the Presidential house of El Salvador, has stated that businesses in the country are compelled to accept Bitcoin from Customers but may choose either or not to receive BTC or USD once the transaction is settled.
Argueta stressed the importance of businesses having the ability to take bitcoin. There is, however, a desire to accept BTC or USD. Businesses that refuse to accept BTC will violate local legislation, according to the official.
PRESIDENT NAYIB BUKELE BUYS THE DIP
Following the massive dip that sent fear throughout the crypto space, El-Salvador President declared that they had purchased the dip by adding an extra 150 BTC—increasing their overall reserve amount from 400 to 550 BTC.
The President poked fun at the International Monetary Fund, praising them for the bailout. The IMF opposes El Salvador’s adoption of a Bitcoin standard, and it’s refreshing to see a country’s president stand up against those who didn’t care about them in the first place. The IMF enters countries intending to centralize economic planning, but Bukele is helping to decentralize that power by employing a decentralized currency.
Not a Geco. one user yet? Sign up today and stand a chance to earn a 20% lifetime commission from every fee paid by the referred customer.
Geco. one News Bulletin presents daily crypto news which reflects the state of the market. Join Geco. one on Telegram (https://t.me/joinchat/Epez5ndeJuQ4YjQ0) and follow on Twitter (https://twitter.com/gecoone?s=21)
This information should not be used to make investment decisions, nor should it be considered advice to engage in investment activity. Trading digital assets carry a high level of risk and can result in the loss of your entire investment. Make sure you understand the risks involved and your level of experience and investing goals. Get independent financial counsel if necessary.
