Bitcoin Sentiment Wanes

Traditional Assets Are Up While Bitcoin Slides

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November 15, 2019 Stablecoins could become a new media of exchange with proper design and regulation, else they could negatively impact on financial stability, according to the U.S. Federal Reserve (Fed). In its latest financial stability report, the Fed has outlined steps issuers must take to address concerns related to money laundering and other illicit activities. To start with, the issues must disclose consumer and investor rights and protections, including whether the holder of the stablecoin has any rights to the underlying asset. Further, stablecoin holders must be protected from fraudulent transactions and their data privacy must be respected. A number of regulators have voiced concerns regarding stablecoins over the last couple of months. “If stablecoins were to become widespread, it could potentially lead to new risks regarding money laundering and terrorist financing,” Financial Action Task Force's (FATF) president Xiangmin Liu said in October. Stablecoins are cryptocurrencies backed by traditional money. For example, tether – the largest stablecoin as per market cap – is worth 1 U.S. dollar and is expected to maintain this peg no matter what. Their stability aspect makes them an attractive medium of exchange. Tether, however, is controversial due to claim by many experts that it is not fully backed by reserves and is issued to manipulate prices. The stablecoin, however, continues to find love in the crypto market community. Note that crypto lending performers like Next are offering up to 8 percent yield on deposits of stablecoins DAI, USD Coin (USDC), Paxos Standard (PAX), TrueUSD (TUSD) and Tether (USDT) at a time when interest rates across Europe and in Japan have dropped into the negative territory. In fact, interest rates across the globe are on a downward trajectory. All-in-all, stablecoins are here to stay, but need regulation to improve consumer welfare and existing payment systems.   Bitcoin Sentiment Slides BTC: Price: $8,521 | MCAP: $153.8 Billion | 24-Hr Volume: $21.6 Billion Trend: Bearish Bitcoin (BTC) is at risk of another sell-off after its price fell beneath a key moving average on Nov. 15, resulting from stronger performances amongst traditional assets. According to Jeff Dorman, CIO at Arca, an investment management firm dealing in digital assets, BTC’s drop in price is attributed to weaker trading activity in crypto and the stability of global markets. At 14:00 UTC, BTC fell 2.1 percent breaking through the 50-day moving average (MA), flagging potential for a deeper drawdown from Oct. 25’s high of $10,350. Long-term trend: Bearish A loss of the 50-day MA opens the doors to the $8,000 level, as confidence in crypto wanes, combined with a looming long-term bear cross of the 100 and 200-day MA’s, a long-term bearish indicator, prices could see further losses in the coming days. In addition, the RSI, a measurement of trader momentum and sentiment, has also failed to rise above the neutral line at 50.00 after falling beneath that point on Nov. 10, hinting at greater selling pressure for the week ahead. Read Analysis Verge Rises on PayPal News XVG: Price: $0.005129 | MCAP: $82.3 million | 24-Hr Volume: $23.9 million Short-term trend: Neutral Verge is flashing green, possibly due to speculation that PayPal's decision to stop payments to Pornhub models will force performers to use the privacy focused-cryptocurrencies like verge.  Note that Pornhub has been accepting verge payments in April 2018, saying it offered users privacy and convenience. The cryptocurrency, ranked 77 as per market capitalization, is currently reporting a 13.62 percent gain on the day. While the price rise is impressive, the outlook remains neutral with the daily RSI pointing towards overbought conditions, opening up a pullback in its price. On the downside, key support is located at $0.00340356 (Nov. 11 low).  A violation there would invalidate higher lows setup and could prove costly. Long-term trend: Cautiously bullish As explained above, recent developments regarding Paypal's decision to halt payments to Pornhub presents a bullish catalyst for increasing trader sentiment in the long-term, caution is warranted given the large daily topside wick and prices having hit an attractive level for profit-taking. Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. Copyright © 2018 CoinDesk, All rights reserved.  Our mailing address is:  250 Park Avenue South New York, NY, 10003, US  Want to change how you receive these emails? You can update your preferences or unsubscribe from this list