Cryptocurrency Market Overview 29.08.2023
News block
1. Global Regulation of Cryptocurrencies
On the final day of the Business 20 summit, which is timed to coincide with the G20 summit, Indian Prime Minister Narendra Modi called for the creation of an international cryptocurrency management structure.
He urged business leaders to actively consider issues related to cryptocurrencies and the ethical use of artificial intelligence (AI), emphasizing the importance of responsible integration of rapidly developing technological advances.
"The rapid pace of technology change is a reality, and there is no point in ignoring them or wanting to get rid of them. Instead, the focus should be on adoption, democratization and a unified approach," the Prime Minister said.
He stressed that any proposed framework should be supranational and go beyond individual countries or blocs.
"At the same time, rules, regulations and frameworks should not belong to one country or a group of countries. Thus, not only cryptocurrency, but all new technologies need a global structure and rules," Modi said.
In India, cryptocurrencies have faced skepticism from regulators. The head of the Central Bank compared them to speculative gambling. And although the country considered the possibility of introducing a complete ban on cryptocurrencies, in the end it decided to impose high taxes on capital gains from transactions with cryptocurrencies.
2. Low demand for stablecoin from PayPal
According to the analytical company Nansen, more than 90% of the total issue of the PYUSD stablecoin from the payment giant PayPal is still on the balance sheet of the company issuing it Paxos. And only 7% of the coin supply lies on user wallets linked to the Kraken, Gate io and Crypto com exchanges.
Nansen attributes the low interest in the asset to the fact that PayPal is targeting another target group: "We observe a lack of demand for PYUSD from cryptocurrency users when there are other alternatives," the analysts noted.
Less than ten holders who are not smart contracts or exchanges have over $1,000 in PYUSD stablecoin on their balance.
The low demand for a stable coin from PayPal is explained both by the general market situation and the availability of more convenient alternatives in the form of USDT, USDC (they are available to users on various blockchains while PYUSD works only on the main Ethereum network).
The current issue of PYUSD is $43.3 million. PayPal announced the launch of its stablecoin on August 7, 2023.
3. Possible withdrawal of Binance from the Russian market
Yesterday, the Binance exchange took measures to further restrict P2P transactions for Russian users. At the same time, representatives of the exchange said that they were reviewing their business in the Russian Federation: "All options are currently being considered, including a complete withdrawal from the Russian market."
Last week, The Wall Street Journal reported that Binance processes a large number of ruble transactions that may violate international sanctions.
Binance is now under pressure from US and EU regulatory authorities. Therefore, the exchange does not want to take on additional risks of working with Russian banks.
Overview of the crypto market
🔸 The current capitalization of the crypto market is 1.101 trillion
🔸 Trading volume for the last day is $26.15 billion
🔸 BTC dominance 46.1%
🔸 Fear and Greed Index:
- today 39, yesterday 39, a week ago 37
where, 0 is extreme fear (may be a sign that investors are too scared - it's often a good time to buy), and 100 is extreme greed (the market needs correction).
The cost of the leading cryptocurrencies has hardly changed over the past day. The BTC price continues to fluctuate around the $26.0k level.
HashKey Exchange, the first licensed retail virtual asset exchange, launched BTC/USD and ETH/USD trades in Hong Kong yesterday. The opening ceremony was attended by government officials and senior managers of the company. It is already known that the next assets that will be available for trading on HashKey Exchange will be Polygon (MATIC) and Avalanche (AVAX).
Analysis of the Supply in Profit indicator
Often, on-chain indicators can help investors make the right decisions to obtain long-term benefits. One of these indicators is Supply in Profit (%) - shows the percentage of the total coin supply that is currently in profit. This metric allows you to better understand the current state of the market.
In the past, the indicator perfectly showed good points for buying BTC. With a high probability, it will be so in the future.
Below the 50% level there is a zone where it is worth making purchases (BUY ZONE). The BTC price does not come to this zone so often. This usually happens in the midst of bear markets, or in situations like Covid-19.
The charts below show that thanks to this indicator, it was possible to buy BTC:
2014/15 at a price below $200
2019/20 at a price below $6000
in 2022 at a price of about $20,000
Currently, the indicator is above the zone favorable for long-term purchases (but close to it). If the BTC price continues its decline, the indicator will re-enter the BUY ZONE and investors will have another chance to buy cheap BTC.
When it comes to profit-taking, this on-chain indicator is also very useful - set the alert at 99% and sell the asset.
