Crypto Weekly: Bitcoin Consolidation on the Strong News Background
Over the past week, the price of Bitcoin has remained practically unchanged and is currently trading around $10,400. But there were a lot of things happening this week that caught the attention of the community. Mostly, this is due to the DeFi segment, around which the hype continues to grow.
On Thursday, September 10th, the largest decentralized exchange Uniswap, lost over 70% of all liquidity. As a result, the amount of funds in the pools decreased by $1 billion, from $1.5 billion to $472 million. This is due to the migration of pools to the popular DeFi project SushiSwap, which is a clone of Uniswap with the ability to farm.
SushiSwap became famous for the fact that the technical director of the project, Chef Nomi, sold SUSHI tokens for $14 million from the project developers’ fund. Nomi then gave the management of the project over to the FTX derivatives exchange. Almost immediately, threats and a statement about litigation rained down on him. As a result, a few days later, Chef Nomi returned the funds to the developer fund and apologized to the community.
DeFi has become so popular that the world’s largest exchange Binance, has also announced a new product in this segment. Now users will be able to stake BNB and BUSD coins, and in return they will receive DeFi project tokens. They have already announced that the first token will be Bella Protocol (BEL) from the ARPA team. Binance stated that anyone can participate and there are no limits or KYC.
But another major global exchange, Bittrex announced the termination of serving customers from Ukraine, Belarus, Burundi, Mali, Myanmar, Panama, and Nicaragua. They justified this by the fact that these countries have a strict legal and regulatory framework in relation to digital currencies. This decision was made even though Ukraine ranked first in the world in terms of the number of active cryptocurrency users (according to Chainalysis).
Other important news for the crypto industry which is worth noting is from Mastercard. Last week, this financial corporation introduced a virtual testing environment for government cryptocurrencies. This is done in order to better check the compatibility of existing payment systems and government cryptocurrencies (CBDC).
However, the most important news that in the near future may have a very strong impact on the entire crypto market, is the accusations against Bitfinex from the New York prosecutor’s office. This case has been going on for a third year but has been actively moving forward in recent months. Bitfinex is accused of receiving an unsecured loan from Tether in 2017 in the amount of $850 million. If the defendants still cannot not prove their innocence, then the price of Bitcoin and many other cryptocurrencies may collapse by tens of percent in the coming days.
Bitcoin
Bitcoin has been in a flat all week in the range of $10,000 — $10,500. There were no major changes and we continue to wait for the price to rise to $10,800 — $11,000. This is indicated by Stochastic, which has closed above the lower border and should show growth. The MACD also shows signs of a reversal on the chart. Judging by these indicators, in the near future we should see Bitcoin near the designated levels.
Ethereum
ETH has broken through the ascending triangle as we expected. It almost reached levels near $400 and then rolled back down. ETH is now consolidating at the level of $370 and this week, it may break through $400 and gain a foothold there. Afterwhich, the nearest targets will be the $440 — $450 range.
The past week was quite calm for the crypto market and this was reflected in the chart. We haven’t seen any major ups or downs, with the exception of BNB. On the other hand, over the past 7 days, there has been a lot of strong fundamental news that will be having an impact on the crypto market in the coming months.
