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XTB TRADEBEAT

Cryptocurrencies prove to be resilient to rising tensions

Summary:

  • Digital assets jumped on the news Square was granted a cryptocurrency trading license

  • After surging towards $6700 handle BITCOIN price fails to find direction

  • Bank of Korea reasons its reluctance towards central bank digital currency

While equity investors are counting their losses resulting from the ongoing turmoil on the stock markets the same cannot be said about cryptocurrency traders. The capitalization of the whole market jumped significantly from $275 billion to almost $290 on the reports that one of the payment companies was granted a license to trade digital assets. Despite some negative remarks from South Korean central bank majority of the most popular coins is trading higher today.

Square, a US mobile payment company, has reported that it was granted a license to trade cryptocurrencies by the state of New York. The company had licenses in many states yet New York was the biggest region where it could not obtain one. As Square was granted such license residents of the New York state are now able to trade Bitcoin instantly via company’s app, Cash App. The company’s stock price has jumped over 2.5% yesterday. Moreover, these developments are said to be the main reason behind yesterday’s jump in the valuation of the whole cryptocurrency market as the timing is almost perfect.

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BITCOIN price jumped on the news that Square was granted a cryptocurrency trading license. The price reached the $6700 handle but failed to break above. In the past hours we have seen sluggish trading within the vicinity of this level with no market side being able to gain control. In case bulls concede we may see a pull back towards the 33-period moving average. Source: xStation5

It looks like a day without remarks from central bankers regarding cryptocurrencies is a day wasted. This time we were offered an opinion from the South Korean central bank. The Bank of Korea opposed the idea of launching a central bank digital currency. The Bank expressed that it is reluctant towards issuing a digital currency as concerns on its impact on monetary policy and open market operations still have not waned. Moreover, Korean central bankers claim that credit, liquidity and legal risks connected to the cryptocurrencies make them do not perform well as money.

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DASH has been underperforming against other major coins as of late. However, do notice that after failing to break above the 33-period moving average the price finally managed to get past this hurdle. This may bode well for the buyers in case this technical level holds firm during the ongoing correction. Source: xStation5

Last but not least, let’s mention a story from Switzerland, a country that is getting more and more popular among companies operating in digital asset sphere due to its lenient regulatory framework. One of the Swiss Crypto Finance Group subsidiaries was granted a license to distribute investment funds among “qualified investors”. According to some sources this is the first time a company related to the cryptocurrencies has been issued such permit. However, the license granted allows the company to distribute funds but not to manage them. In regard to this it is worth to note that the Swiss Crypto Finance Group has recently submitted an application for permission to create a passive investment fund that would track the index of 10 most liquid cryptocurrencies. Therefore in case such permission is granted the company would be legally able to create, manage and distribute cryptocurrency index funds.

 

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