Good morning. Welcome to Tuesday Trades, part of our new series: BitPinas Daily. We will look at the price of Bitcoin, Ethereum and the major cryptocurrencies. Crypto is global, but sometimes news that matters happens while we sleep. So we bring to you what’s happening in our space here and abroad.
Bitcoin closed April 12, 2021, at $59,911 per BTC. We’re up 3.8% in the last 7 days and up 109.6% since the year began. This is also 2.92% below the all-time high of $61,711, which was hit on March 13, 2021.
Bitcoin’s market capitalization stands today at $1,138,967,678,035 which is 52.91% of the entire cryptocurrency market. The entire crypto market, by the way, now has a market cap of $2,161,586,101,199 +2.3%).
Binance Launches Tokenized Stock Trading Beginning With Tesla
Binance has begun allowing its users to to buy tokenized stocks, starting with Tesla, in what the company said is a demonstration of how it can democratize value transfer more seamlessly, reduce friction and costs to accessibility without compromising on compliance and security.
Tokenized shares meant they are not really shares of the stock of the company, like Tesla, but it gives an exposure to the underlying shares and other potential corporate actions, including dividens.
According to Binance, each token is fully backed by a depository portfolio of underlying securities that represents the outstanding tokens. “Our partner CM-Equity AG, a licensed and fully regulated asset management firm in Germany, entrusts the acquired shares to a third-party brokerage firm for custody. In addition, CM-Equity AG will be monitoring all trading activity for compliance,” a Binance spokesperson told The Block.
By the way, this Binance service isn’t 24/7. “Stock tokens are fully-backed, and the trades are executed in real-time. Hence, trading of stock tokens follows the underlying stocks’ traditional trading hours,” the spokesperson added.
Time Magazine Joins Tesla in Holding Bitcoin, to Produce a Crypto Video Series
Time Magazine has partnered with Grayscale to produce an educational video series about cryptocurrency due to come out this summer.
The kicker is that Time will be paid in Bitcoin to create the series. This Bitcoin will be put in the magazine’s balance sheet.
This is the first time a legacy media brand, a very old company, will hold Bitcoin.
Some MicroStrategy Board Members Will be Paid in Bitcoin
A filing with the U.S. Securities and Exchange Commission revealed that MicroStrategy will begin paying their non-employee directors on its board in Bitcoin instead of USD. The firm said this is in demonstration of its commitment to Bitcoin.
By paying the board members in Bitcoin, it means that at the time of the payment, the USD will be converted into Bitcoin which would be deposited to a digital wallet of the board member.
HSBC Bans MicroStrategy Stock
HSBC already blocks any transactions “tainted” with cryptocurrency. Now it no longer allows customers to trade the MicroStrategy stock because of its significant Bitcoin holdings.
In a letter to clients, the HSBC said this is due to a change in the bank’s policy on virtual currencies and related products.
The Ripple price is down by 7.54% in the last 24 hours as the value has gone below $1.55.
Resistance levels: $2.0, $2.2, $2.4
Support levels: $1.0, $0.8, $0.6
During the European session today, XRP/USD has gone up from $1.48 to $1.55 before giving a bearish signal and drops the price down below the $1.35, the Ripple price is also floating within the 9-day and 21-day moving averages as the technical indicator RSI (14) moves below 50-level. Meanwhile, a break below the 9-day and 21-day moving averages could allow the market to dig dip, but moving back above the 9-day MA might lead the market to a bullish scenario.
Ripple Price Prediction: Where is Ripple Price Going Next?
At the moment, the Ripple price has continued to demonstrate a sign of weakness across its markets. According to the daily chart, XRP/USD is currently reflecting a price drop in the market and the fall might become heavy if the bearish action continues.
Therefore, since XRP/USD is moving sideways on the short-term outlook, traders can expect the trend to keep advancing higher if the price actions still remain inside the channel. A break above the 9-day and 21-day moving averages could strengthen bulls and push the price to the resistance levels of $2.0, $2.2, and $2.4, or a channel breakdown might lead the market in a bearish scenario if the price continues to fades and the closest supports to keep eye on are $1.0, $0.8, and critically $0.6.
When compares with Bitcoin, XRP trades within the 9-day and 21-day moving averages, actually, the price action has remained intact within the channel. If the selling pressure continues, the Ripple price variation may create a new low. At the moment, the signal line of the Relative Strength Index (14) is moving below 55-level; the market may experience an additional negative move if the RSI (14) slides below 50-level.
Furthermore, XRP/BTC hovers at 2564 SAT which is around the 21-day MA. Any further drop below this barrier may hit the close support at 2300 SAT before breaking to 2100 SAT and below. Meanwhile, should in case a bullish movement occurs and validates a break above the 9-day MA; traders can confirm a bull-run for the market, and the nearest resistance levels are located at 3200 SAT and above.
The lawmakers in Hungary are planning to cut down taxes by 50% on the capital gains on crypto with an aim to attract billions to its budget most probably by 2022. As announced by Mihály Varga, the Economy Minister of Hungary, the tax on crypto earnings is going to be slashed to 15% in 2022, which is almost half of the present rate, 30.5%.
Crypto Investors in Hungary to be Offered Major Tax Break Soon
The lawmakers of the country are looking forward to making Hungary become more competitive in the period of the COVID-19 pandemic. The recent move of a crypto tax cut by lawmakers of Hungary is expected to attract billions of Hungarian forints to the budget of the country.
Mihály Varga mentioned the stimulus program of the government through the year 2022, in a video that appeared on Facebook on Tuesday.
This move was addressed as a part of the COVID-19 relief efforts as the lawmakers of Hungary are considering a crypto tax cut to 15% of the capital gains, which is down from the current rate of 30.5%.
European Union Country in Preliminary Discussions Surrounding a CBDC
In the month of August 2020, a representative from the Hungarian National Bank joined a preliminary discussion regarding a Central Bank Digital Currency (CBDC). The discussion was with colleagues from the Swiss National Bank, the Bank of England, and others in the discussion of the potential rollout of the Central Bank Digital Currencies in the near future.
In addition to this, it should be noted that Hungary is not the only European country that has introduced tax-based incentives for the owners of cryptocurrencies in their country. Portugal, for instance, does not require its customers to pay any taxes at all provided that they are not engaged in any kind of professional trading.
Bitcoin’s consolidatory movement within its tight price band didn’t stop the crypto-market’s altcoins from registering some degree of volatility on the charts. In fact, while BTC, again, was valued at just over $57,000 at press time, the likes of Litecoin, Tezos, and Uniswap, were noting significant movements in both directions.
Litecoin, the cryptocurrency popularly dubbed the silver to Bitcoin’s gold, has had a bullish price trajectory since it recovered from the market-wide depreciation in the latter half of April. In fact, such has been the scale of LTC’s uptrend that the alt climbed by 46% in less than 10 days. In fact, at the time of writing, the alt was valued at $392, just below its ATH of $410 which it hit a few days ago.
The aforementioned uptick was accompanied by a sharp spike in trading volumes too, with the same allowing the crypto to touch greater heights.
The said bullishness was underlined by the alt’s technical indicators as Parabolic SAR’s dotted markers were well under the price candles, while Awesome Oscillator’s histogram pictured surging market momentum.
LTC’s latest performances have heightened expectations for its price in the long-term, with some analysts claiming that the alt might follow ETH’s trend to go as high as $1000 even.
It was uncertain times for Tezos, at the time of writing, with the cryptocurrency recording corrections on the back of yet another market hike that exhausted itself too quickly. The latest depreciation in price was ins sharp contrast to XTZ’s fortunes earlier in the week, with the alt climbing by 37% in just 48 hours.
While market dynamics, despite corrections, remains largely bullish, the crypto’s indicators might soon see some bearishness creeping in.
While the mouth of Bollinger Bands was widening somewhat to make way for some incoming volatility, MACD was still holding above the Signal line. It’s worth noting, however, that a bearish crossover on the latter had become a distinct possibility.
According to a recent analysis, investing in Tezos might have its upsides at this time.
Compared to Litecoin and Tezos, Uniswap’s price action shared a closer resemblance to Bitcoin, the world’s largest cryptocurrency. Like BTC, UNI too has been rangebound for the past week or so, with the aforementioned period seeing the alt drop by over 15.5% before recovering once again.
At the time of writing, UNI wasn’t far from its ATH level. However, its price action was missing the bullish momentum the likes of Litecoin were recording.
Even so, the alt’s indicators gave positive signs. Both Relative Strength Index and Chaikin Money Flow noted sharp spikes following UNI’s latest recovery efforts, fueling expectations of a breakout on the price charts soon.
With Uniswap V3 mainnet being launched just a few days ago, it would seem that the same hasn’t been priced in yet.