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OCC Head: Nobody Will Ban Bitcoin – Good News Are Coming By The End Of Trump’s Term

Brian Brooks, the acting Comptroller of the Currency, believes that the United States needs to establish clear and straightforward cryptocurrency regulations.

  • CryptoPotato reported recently that Coinbase’s CEO Brian Armstrong had sent a letter to the US Treasury Secretary Steven Mnuchin regarding rumors of new regulations on various cryptocurrency features that could harm the industry’s development in the country. 
  • Brooks, despite being the head of a different US organization, responded to these assumptions while appearing on CNBC’s Squawk Box.
Acting Comptroller of the Currency Brian Brooks. Source: CNBC
Acting Comptroller of the Currency Brian Brooks. Source: CNBC
  • He said that his organization is “very focused to get this [regulation] right, we are very focused on not killing this [bitcoin].” He highlighted the need for a clear framework behind bitcoin and other digital assets to minimize any usage for illicit activities, such as money-laundering.
  • Directly answering a question if new regulations are indeed coming by the end of Trump’s presidential term in January 2021, Brooks said that “I think you are going to see a lot of good news for crypto by the end of the term.”
  • At the same time, OCC’s head further said that “it’s a dangerous world out there,” which requires a firm hand to handle the potential threats and challenges.
  • Ultimately, Brooks ended on a positive note, saying that “nobody is going to ban bitcoin, nobody is going to ban some of these transmission technologies. I think it’s going to be a lot less bad than people worry about.” 

Featured Image Courtesy of Forbes

Source: Crypto Potato

OMG Price Soars Following Recent Acquisition by Genesis Block Ventures

Genesis Block Ventures, the investment arm of the Hong Kong-based OTC trading company Genesis Block, has acquired the layer-2 scaling solution for Ethereum – OMG Network.

The OMG token reacted positively to the news with an immediate double-digit price surge.

GBV Acquires OMG Network

Formerly known as OmiseGo, OMG Network facilitates transactions on the Ethereum blockchain by handling them off-chain, thus operating as a trustless, non-custodial layer-2 scaling solution.

Earlier today, GBV announced that OMG Network had become the company’s “first major acquisition.” The firm describes itself as an “investment company with a mission of building the future through blockchain that has built a wide-reaching, vibrant blockchain ecosystem.”

The venture firm plans to leverage OMG Network’s blockchain to enhance its accelerated growth and further increase the adoption in Asia and beyond.

The statement also highlighted GBV’s active role in the DeFi craze during this year. However, the company also admitted several challenges in the field, which OMG Network could assist in resolving.

“GBV foresees the main headwind to the development of DeFi, is that Plasma is not EVM compatible, which makes the adoption of DeFi more challenging.

As a leading layer-2 scaling solution for Ethereum, OMG Network supports the transfer of ETH and ERC-20 tokens with a throughput of thousands of transactions per second, scaling Ethereum and making it enterprise-ready.”

Consequently, the two organizations plan to leverage each other’s resources to build lending and trading platforms and enhance DeFi’s mass adoption. GBV will also “ensure the smooth transition of OMG Network’s team and business from SYNQA to GBV, minimizing the impact of the acquisition on OMG Network’s token price.”

OMG Token Price Reacts

Despite GBV’s efforts to reduce any sharp price effects, the OMG token reacted in a highly-volatile manner.

OMG surged by 20% just minutes after the announcement went live. As a result, the asset marked a daily high of $4.42, which was also the highest level since November 26th.

However, as the aftermath of the acquisition calmed, so did the price. As of writing these lines, OMG has retraced back to $3.8.

OMG/USD. Source: TradingView
OMG/USD. Source: TradingView

Source: Crypto Potato

Ethereum Price Analysis: ETH Rejected at $620 Again as Price Crashes 5% Daily

ETH/USD – Ethereum Bulls Struggle With $620

Key Support Levels: $585, $560, $550.
Key Resistance Levels: $600, $620, $650.

Yesterday, Ethereum moved higher to test the resistance at $620 (1.414 Fib Extension). This level had stalled the market during November and early December and is the next price point to break above to turn bullish again.

It was unable to break $620 on the third attempt and fell lower today as it crashed beneath $600 to hit the $585 support.

ethusd-dec4
ETH/USD 4HR Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, if the bulls can defend $585 and push higher, the first level of resistance lies at $600. This is followed by $620, $650, and $665.

If the sellers break $585, support is expected at $560 (.236 Fib). This is followed by $550, $525 (.382 Fib), and $500.

The 4HR RSI penetrated beneath the mid-line today, suggesting the sellers have taken control of the market momentum.

ETH/BTC – Rangebound Between 0.0318 BTC and 0.031 BTC

Key Support Levels: 0.0308 BTC, 0.0305 BTC, 0.03 BTC.
Key Resistance Levels: 0.0315 BTC, 0.032 BTC, 0.033 BTC.

Ethereum has been rangebound in December between 0.0318 BTC and 0.031 BTC. The cryptocurrency will need to break out of this range to establish the next direction for the market.

A breakout toward the upside would allow ETH to go ahead and test the November resistance at 0.0337 BTC, but a break beneath 0.031 BTC might see the coin heading beneath 0.03 BTC.

ethbtc-dec4
ETH/BTC 4HR Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, the first level of resistance lies at 0.0315 BTC. Above 0.032 BTC, resistance lies at 0.033 BTC, 0.0337 BTC (March 2019 Support & November 2020 High), and 0.0345 BTC.

On the other side, support is first expected at 0.0308 BTC (.382 Fib). Beneath this, support lies at 0.0305 BTC, 0.03 BTC (.5 Fib), and 0.0291 BTC (.618 Fib).

The 4HR RSI is above the mid-line and is rising to indicate increased bullish momentum within the market.

Source: Crypto Potato

India Reportedly Plans to Tax Crypto Investors As Bitcoin Price and Trading Activities Soar

Barely ten months after the Indian Supreme Court lifted the RBI’s ban on cryptocurrency transactions, fresh reports from yesterday revealed that the country’s tax authority is now keeping a close watch on crypto traders as Bitcoin’s price continues its bullish trend.

Taxing Crypto Gains

According to local media, the Indian Tax Department is already in possession of data belonging to investors who invested in Bitcoin or cryptocurrencies through banking channels before the RBI’s ban in 2018. 

This development is coming after data shows a tremendous increase in crypto trading activities in India. Since the crypto ban was lifted earlier this year, retail investors between the ages of 25 and 40 have been spending millions of dollars on crypto trading every day. 

Over $25 Million Daily

Two of India’s largest crypto trading platforms, Binance-acquired WazirX and CoinDCX, saw a significant increase in activities over the last six months. According to an earlier report, WazirX recorded a massive 125% increase in user signups in the last two quarters. The exchange also has a daily trading volume of $19-26 million, with more than 85% of the transaction coming from Indian traders. 

Some experts believe it will be difficult for the country to tax crypto because there’s no regulation in place for crypto dealings. They feel a regulatory framework will provide the needed clarity to make taxation easier. While India is yet to release its crypto regulation, an earlier report suggests that the country may regulate crypto as commodities.

Declaring Bitcoin Profits As Capital Gains

Although it is unclear how India plans to implement the tax law, sources familiar with the matter claimed that the country’s taxman is already preparing to collect tax on the gains made from Bitcoin. And notice may be sent out to investors if “something goes out of this.”

Experts believe that the tax authorities may classify crypto gains as business income, and investors may have to pay up to 30% tax on profits made from selling cryptocurrencies. 

However, some tax experts are advising their clients to declare their Bitcoin earnings as capital gains, which is similar to profits generated from shares.

Source: Crypto Potato

Aave Has Officially Launched Version 2 Of Its Mainnet With Several Network Upgrades

Less than a year after the release of the version one mainnet, the popular DeFi project Aave has launched the second version with several network upgrades.

The native cryptocurrency reacted with a sudden price increase of 15% in a matter of hours.

Aave Mainnet V2 Is Live

The decentralized lending protocol allowing users to lend, borrow, and earn interest on various cryptocurrency assets launched its V1 mainnet at the start of 2020. By being an active part of the mid-2020 DeFi boom, the protocol surged to a market size of over $1 billion.

The team announced the release of the V2 mainnet yesterday with several network upgrades, including an improvement of the first undercollateralized loan option in the space – Aave’s Flash Loans.

An update of the yield and collateral swap will enable users to “trade their deposited assets, across all currencies supported in the Aave protocol, even when they are being used as collateral.” The company believes that this option will help customers avoid liquidations.

Aave has also simplified the repayments. If users wanted to use their collateral to repay a loan in the V1, they had to withdraw it, use it to buy the borrowed asset, and finally repay the debt and unlock the deposited collateral. This four-step transaction process has been replaced by a new feature allowing users to close their loan positions by paying directly with the collateral.

The project has also upgraded the flash liquidations, batch flash loans, debt tokenization, and the native credit delegation.

As far as the migration of liquidity to V2 goes, users can employ a Flash Loan-powered migration tool to make the transition without having to close the V1 loan positions. The tool will be available soon.

Aave’s Immediate Price Reaction

The protocol’s native cryptocurrency went through a significant change earlier this year. The former token LEND was renamed AAVE, and it underwent a 100:1 token split.

The new coin went on a roller-coaster since yesterday’s V2 mainnet announcement. AAVE traded at about $83 before exploding by nearly 15% to a daily high of $95.

However, the volatility continued in the following hours and the digital asset has retraced to approximately the same levels as yesterday.

AAVEUSD. Source: TradingView
AAVEUSD. Source: TradingView

Source: Crypto Potato

Bitcoin Too Volatile to be a Store of Value: Fidelity Crypto Boss

Fidelity Investments has been a frontrunner in exposing its customers to the bitcoin and cryptocurrency asset class. But the head of the multi-trillion-dollar asset management firm’s digital asset arm Tom Jessop thinks BTC is ‘not quite there’ as a store of value because of its sporadic volatility.

Bitcoin Is A ‘Potential Store Of Value’ Not An Actual One

Speaking to the Reuters Global Investment Outlook Summit 2020, Jessop, the lead at Fidelity Digital Assets, said that bitcoin has still not attained the ‘store of value’ status. But BTC investors are nonetheless optimistic that one day it will.

We use the word ‘potential store of value’ as bitcoin is still extremely volatile, and by any standard perhaps would not achieve the mantle of a true store of value… But aspirationally it is, and that’s one of the reasons why so many investors are now thinking about this space constructively.

This argument makes sense as the top cryptocurrency’s price action has been nothing less than a roller coaster ride. In a span of just 8 months (since March’s Black Thursday crash), bitcoin has logged near 400 percent gains. But in its relatively nascent existence, BTC had also lost value upwards of 90 percent (after the 2017 boom).

Still, the asset has experienced an upsurge in demand due to its inflation-resistant nature.

With governments and central banks in full stimulus mode, some observers reckon bitcoin is a useful safeguard against inflation. Since supply is capped at 21 million, these people believe its scarcity gives it an innate value.

Tom Jessop. Source: Modern Consensus
Tom Jessop. Source: Modern Consensus

But Fidelity Is Knee Deep Into Crypto, Especially BTC

Tom Jessop may have reservations against bitcoin’s store of value narrative. But his company nonetheless is touting the asset in every major way possible.

As reported by CryptoPotato, Fidelity released its Bitcoin Investment Thesis in October. The document presented compelling arguments as to why a trillion-dollar BTC market is not totally out of the question. The Boston-based firm observed that bitcoin’s strength lies in its low correlation with any other asset within an investment portfolio.

This, according to Fidelity, presents a favorable scenario for investors. As for them, bitcoin becomes an alternative asset. One that allows holders to protect their wealth by exposing themselves to a commodity for which the risk doesn’t depend on what happens to other markets.

Also, the fund management firm with an AUM worth $3.3 trillion partnered with Singapore based Stack Funds to enable wealthy Asian investors to freely and securely buy bitcoin.

According to a recent report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. Stack further explained that all assets under its management would be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.  

Source: Crypto Potato

Market Watch: Bitcoin Rejected From ATH Once Again, ETH Above $600

Although Bitcoin was unsuccessful in breaching above $19,600, the cryptocurrency has remained above the coveted $19,000 level. Most altcoins have continued displaying an unusual lack of volatility for a second consecutive day.

Bitcoin Fails At $19,600

The primary cryptocurrency has recovered all losses since the Thanksgiving massacre when it plummeted to below $16,500. The past week has been significantly more bullish for the asset as it painted two consecutive all-time highs on some exchanges.

However, BTC failed to break above $20,000, and the rejection drove further decreases – this time, bitcoin bottomed at $18,100 on Tuesday.

The past few days have been calmer for the asset. BTC firstly reclaimed the $19,000 price tag before initiating another leg up north hours ago. The bears intercepted the move and didn’t allow a break above $19,600.

Despite retracing with a few hundred dollars since then, bitcoin still sits above $19,000.

The technical indicators suggest that the cryptocurrency needs to overcome the first resistance at $19,700 before potentially heading towards $20,000. In case BTC is successful in breaking above it, the next resistance lines would be at $20,350, $20,970, and $21,750.

In contrast, $18,800, $18,600, $18,270, and $17,800 would serve as support if bitcoin heads south.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

Relaxing Altcoins

The alternative coins, similarly to bitcoin, experienced a highly volatile week, which saw double-digit price developments in both directions.

In the past few days, though, most altcoins have calmed and displayed an unusual lack of substantial fluctuations.

On a 24 hour scale, Ethereum has gained 1% and trades upwards of $600. Cardano has also added less than 1%, and ADA is north of $0.16.

Ripple (-1%), Chainlink (-1%), Polkadot (-1.3%), and Litecoin have all retraced slightly.

heatmap
Cryptocurrency Market Heatmap. Source: QuantifyCrypto

Even the lower and mid-cap altcoins have remained relatively stagnant. The only exception is NEM, with a 20% surge to $0.25.

The other 24-hour gainers have all increased with single-digit percentages. Zilliqa leads with 8%. Ren (7.5%), THORChain (6.5%), Aave (6%), and Algorand (6%) follow.

Source: Crypto Potato

Audio Streaming Mogul Spotify Considering Cryptocurrency Payments

Joining the tech and financial services bigwigs in the payments revolution, Spotify too is going the crypto way. The Swedish audio streaming and music services giant just put up a job offer for an Associate Director, Payments Strategy & Innovation. The desired candidate will play a key role in ‘navigating the company’s payments rudder’ through the cryptocurrency ecosystem.

Spotify Looking To Be A ‘Leading Player In The Cryptocurrency Space’

As per an official job opening that Spotify just posted, the company is looking for an Associate Director for their Payments Strategy & Innovation Team. The said individual would report to the Director of the same team. And will be instrumental in Spotify gaining a considerable foothold wrt integration of cryptocurrency payments. According to the description:

We are now looking for an outstanding Associate Director to join our Payments Strategy & Innovation team. This role will report to the Director, Payments Strategy & Innovation and will play a key part in defining and implementing Spotify’s payments strategy as well as leading Spotify’s activity within the Libra stablecoin project and wider digital asset & cryptocurrency space.

The objective is to address the company’s wider objective of ‘enabling new monetization opportunities’ for music creators. Also, the company wants its platform to access a larger section of potential users.

Spotify intends to inculcate all the latest fintech trends in their payments strategy, including cryptocurrencies. So that users from all sections of the society can access the music streaming platform.

Crypto Agenda Involves Libra As Well

One of the designated roles of the incoming Associate Payments Strategy Director would be to lead ‘Spotify’s day-to-day engagement with the Libra Association.’ This is due to the ongoing alliance of the company with Facebook’s digital currency project.

Along with this, the company is looking to leverage all the blue-chip aspects of the blockchain and cryptocurrency space. This includes stablecoins and Central Bank Digital Currencies (CBDCs. It is to streamline its transition to the most advanced payment methods available in finance at the moment.

The Associate Payments Strategy Director would be required to fulfill the above roadmap by making use of

Spotify’s global footprint to seek out innovation in the payments domain globally as well as emerging regulatory & market trends that could influence Spotify’s approach to payments.

Through all the above, the company actually intends to elevate its ‘reputation as a market leader in payments’, the website said. And give giant payments players like PayPal a run for their money.

Source: Crypto Potato

Bullish Indicator to Buy Bitcoin Has Flashed Yet Again After 5 Months

The bitcoin market this year had numerous entry points for investors. One indicator that provided the most profitable entry points (occurring only twice) has shown up yet again after 5 months. It preceded BTC’s epic rally to $10,500 in April and the run-up to $12,500 in August.

The Blue Dot Screams Buy Bitcoin

There is no shortage of pioneers in the bitcoin ecosystem. Charles Edwards, the founder of Capriole Investments, is one such pioneer who propounded the Hash Ribbons indicator for timing entry points in the BTC market. It appeared only twice during the entire course of 2020 and has preceeded massive profit turning bitcoin rallies.

As per the latest update by Edwards, the indicator has shown up yet again after a 5-month hiatus. And is pointing investors to enter another profitable bitcoin buying position.

The blue dot in question occurs every time after the BTC miners are done capitulating their holdings. Hash Ribbons represent the miner capitulation phase and also, in turn, point to a drop in the overall bitcoin mining hash rate.

Glassnode CTO Rafael Schultze-Kraft provided an explanation as to why Hash Ribbons serve as an excellent entry point for bitcoin investors with the below chart. 
buy bitcoin indicator
Bitcoin Hash Ribbons Are Flashing The Buy Signal Again, Source: Glassnode

When asked by a user as to what’s the difference between the dark red and light red bands, Kraft said:

Light red = “miner capitulation” Dark red = “miner recovery” (30d MA > 60d MA) End of dark red: buy signal. This is when hash rate has recovered and Bitcoin price momentum is positive.

Miner/hash rate recovery occurs when the 30d MA (30-day moving average) crosses above the 60d MA, the Glassnode CTO explained.

More Bullish Indicators Are Reinforcing The ‘Buy BTC’ Sentiment

As per Danny Scott, CEO of the UK based bitcoin exchange CoinCorner, the BTC balance on exchanges is gradually depleting, as investors look to hold on to their positions for a longer time. This, in turn, will directly cause a substantial liquidity crisis in the coming months. A point impressed upon by on-chain bitcoin market analysis Willy Woo as well.

This, as it sounds, is pretty much a bullish indication of bitcoin’s future market outlook.

Woo, in his latest update, also mentioned an interesting point about BTC’s future adoption growth. He observed that the top cryptocurrency has followed ‘Moore’s Law’ of Growth from its inception to date. As far as its adoption rate is concerned.

This, when extrapolated over a period of the next 4 years, points to a scenario where approximately 30 percent of the world’s population owns bitcoin.

Source: Crypto Potato

Introducing GetBlock: Instant Access to Full Blockchain Nodes

[PRESS RELEASE – Please See Disclaimer]

To build a blockchain-based application, for example, a multi-currency wallet or crypto exchange, an individual or a company usually has to deploy and maintain several blockchain nodes. However, not every beginner and even an experienced developer is ready to run a full node as it requires time, money, and extra equipment.

GetBlock has found the solution to this issue – they’ve launched a service that provides connection to blockchain nodes of the most popular cryptocurrencies.

What is GetBlock.io?

GetBlock.io is a service that provides an API connection to a continuously growing list of over 40 blockchain nodes, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), among others. They support JSON-RPC, REST, and WebSockets, which facilitates the process of building decentralized applications (dApps).

Developers don’t need to wait hours for a node to be synced, as the platform provides a cost-effective infrastructure that guarantees a fast and reliable connection to a blockchain via full nodes.

getblock1

The users of the service have to register an account and receive an API key which will be displayed on the dashboard together with the related data.

GetBlock operates servers in Germany and provides a high-speed connection of 1 GB/sec to each node under secure and 24/7 surveillance.

They introduced a pricing model different from the ones offered by competitors. The main difference is that the purchased requests can’t be expired, which means that the unused requests from any purchased package are automatically transferred to the next month.

Noted by Market Leaders

Over the past few months, the company has teamed up with some of the industry-leading blockchain projects including ConsenSys, SimpleSwap, Swinburne University of Technology.

GetBlock also is listed as a partner and a top API provider on the websites of high-ranked cryptocurrencies such as Ethereum Classic (ETC), Dash (DASH), Bitcoin SV (BSV), Bitcoin Cash (BSH), etc.

Final Thoughts

The goal of GetBlock is to provide users with access to full nodes from many leading blockchain platforms and allow them to request on-chain information from a node without the need to set up one manually.

From here on out, we can only wait and see how the company plans to grow and develop. They have recently launched the account and pricing plans, and we are already aware of their next steps – implementation of tools for tracking the app’s performance, WebHooks, WebSockets, etc.

Source: Crypto Potato