MA5 charts show BTC currently ticking on a weak fluctuating upward trend, this weakened bullish movement comes as a result of the continued pressures. Over the weekend, BTC briefly broke through US$11,000 price point and immediately fell back and tested the US$10900 support levels, historically if resistance can be met at this level, we could see a boost in price action in the very near future, where BTC will again form a Double Top formation.
The volume of Bitcoin Whales selling to exchanges has decreased, couple with the observation that Bakkt’s daily trading volume has hit a record high on institutional-centric futures trading. Both indicators that Whales and Institutions may be hoarding BTC. #justHODLit
Remember #YangGang former Democratic candidate for the President of the United States? He was a big believer in blockchain and digital assets and ran on a platform that was largely selling the dream of a UBI (Universal basic income). Last week this concept was materialised in the world of crypto. The concept was widely tested on the Uniswap platform with the launch of UNI). Uniswap officially released its protocol token UNI and the corresponding liquidity mining mechanism. It has pioneered not only a mining plan for future participants, but also an airdrop for all users who have provided liquidity to Uniswap in the past. Nearly 50,000 existing users can claim 400 UNIs with each address, the equivalent to US$2,500 US in today's market price. Despite this new protocol, the question remains, is this the beginning of a new DeFi era? or the last hoorah?
The reality is that the main participants of DeFi projects are arbitrageurs seeking high rewards. There are a limited number of users who have real borrowing and transaction needs. If some day, the mining programs with high rewards come to an end, retaining users on these platforms will be a struggle. Uniswap and other DEX seem to be unable to grasp user’s identities and conduct basic project qualification reviews, including financial and legal reviews. Bad Actors can use DEX to cover up the flow of funds, and even use new currency issuance to launder money. With Uniswap's airdrop operations ushering in a relatively stable userbase for DeFi projects, there needs to be a breakthrough in the development of new technical models in the underlying protocols to handle KYC before the business and longevity of DeFi projects can be truly verified.
Other public chains such as TRON, EOS, NEO are all trying to open up DeFi protocols and push new projects, but the response from the market has been subpar – conforming to community hype much?
Vice President of the PBoC - Fan Yifei, once again elaborated on the wholesale mechanism of DCEP. Only commercial banks with strong capital and technology capabilities can serve as designated operating institutions and use deposit reserves to exchange DCEP with the People's Bank of China; DCEP should be provided as a public product without interest accrual. PBoC will not charge a service fee for the wholesale process. This presents a new challenge: both individual and institutional DCEP transactions are reflected in the renewal of the PBoCs DCEP registration center, this will be equivalent to the PBoC providing instant full settlement to the public, ensuring the safety and security of the DCEP system will be demanding requiring solid technical support, including wallet structure and system stability.
On the other side of the world, the European Commission will submit a draft law to clarify how existing financial infrastructure and trading rules will apply to crypto assets and formulate new rules where there are loopholes. The timeline for this to be pushed forward is by 2024. The EU will establish a comprehensive framework to enable the financial sector to adopt distributed ledger technology and encrypted assets, while at the same time identifying the risks associated with these technologies.