Bitcoin Price Plunges to $9,050 on Growing Uncertainty
The world’s most dominant cryptocurrency Bitcoin declined to $9,050 on Thursday after failing to break the $10,000 resistant level.
The coin plunged from $9962 on Thursday to $9,050 a coin before retracing on Friday during the Asian trading session to $9,486 as of 1:00 pm Nigerian time.
This was after the Federal Reserve said the economy may take several years to recover from the COVID-19 pandemic downturn despite the huge stimulus being pumped into the economy by Donald Trump. The unexpected comments led to a huge selloff in the US stock market and weighed on other global assets as investors remain apprehensive amid rising global uncertainty.
“A switch to ‘risk-off’ in global markets could lead to further downside pressure for major cryptocurrencies,” said Matthew Dibb, co-founder of Stack, a provider of cryptocurrency trackers and index funds.
The drop was coming after several Bitcoin focused media have reported a substantial increase in the coin acquisition by large buyers within the crypto ecosystem, known as whales.
As predicted by Investors King on Thursday, the activity of the Whales would help establish strong support for the coin above $9,000 level but not enough to open up a $10,519 key resistance level. Capital inflow from outside investors or funds from institutional investors is needed to support price above the current level through $10,519.
This may not happen in the near-term given global risk and also cryptocurrency exposure to hackers. On Thursday, 400 BTC estimated at about $4.1 million stolen from Bitfinex, a cryptocurrency exchange, in 2019 was moved to an unknown address, according to a twitter bot Whale Alert.
While another big transaction estimated at about $1.5 billion was performed by an unknown wallet on Tuesday. A combination of all these is fueling a notion that whales might be preparing to dump their holdings and plunge the digital currency below the current level.
Pizza Hut Joins Burger King, Church’s Chicken to Accept Crypto Payments in Venezeuela
Pizza Hut has joined other global fast-food chains like Burger King and Church’s Chicken already accepting crypto payments in Venezuela.
This was confirmed by a crypto services firm, CryptoBuyer, on November 27 after pizza Hut stores in the South American nation partnered with Mega Soft to drive adoption in Venezuela by encouraging crypto payments in its over 20,000 shops and businesses in the country.
“Pizza Hut nowadays cannot be detached from these technological advances and all those incorporating new approaches for daily necessities,” said Richard ElKhouri, General Director for Venezuelan operations of the pizza chain, in an interview with local news outlet ElAxioma. “It is important that we accommodate young people, modern adults, and people technologically knowledgeable.”
According to Elkhouri, customers can buy pizza with Bitcoin (BTC), Litecoin (LTC), Dash (DASH), Binance Coin (BNB), Binance USD (BUSD), Ether (ETH), Tether (USDT), Dai (DAI), and its native token XPT.
This will further help deepen cryptocurrency adoption in the country and across the South American region.
Bitcoin Rebounds; Gained 7 Percent to $18,116 Per Coin Amid Renewed Demand
Bitcoin recovered most of its lost ground in the last 24 hours after dropping about $3,000 from $19,400 it exchanged a week ago to $16,800 per coin.
The world’s most dominant cryptocurrency gained 7.01 percent to close at $18,116.31 per coin on Monday morning at 8:46 am Nigerian time.
Investors jumped on the digital currency after Guggenheim Funds Trust filed an amendment with the U.S. Securities and Exchange Commission to allow its Macro Opportunities Fund to invest as much as 10 percent or $500 million of its $5 billion net asset in Bitcoin through Grayscale Bitcoin Trust (GBTC).
The news bolstered Bitcoin attractiveness as cryptocurrency investors interpreted as a new capital inflow that could aid the coin above the $20,000 per coin obstacle or resistance.
According to the amendment filed: “The Guggenheim Macro Opportunities Fund may seek investment exposure to bitcoin indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (“GBTC”), a privately offered investment vehicle that invests in bitcoin. To the extent the Fund invests in GBTC, it will do so through the Subsidiary.”
Cryptocurrency: Facebook Owned Libra to Launch Stablecoin in January 2021
Facebook Inc led Libra Association is planning to launch Libra stablecoin pegged to only the United States Dollar as early as January 2021, according to three anonymous people quoted by the Financial Times.
The stablecoin was initially proposed to be pegged to a basket of multiple currencies before the group faced several setbacks after the US parliament pressure Facebook on data breach and other issues that allegedly allowed Russia to meddle in the 2016 US presidential election.
The social media giant has now cut down on its ambition to focus on US dollar-pegged stablecoin in an effort to reduce regulatory bottleneck.
PayPal Inc., one of the first members of Libra Association that pulled out after regulators increased scrutiny on Facebook operations, has since started a cryptocurrency exchange business.
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