In our third instalment of Cash Kings’ Crypto Newsletter, once again we’ll be updating you on all that is happening in the crypto world.
Since our last article, Bitcoin has held its critical $9300 USD support level and the 50 day moving average, which provide us with neutral-bullish signs of its upcoming movement. And if we look at the RSI, currently sitting around 50, there is a long-term support level of 43, which it also continues to hold. This might suggest that Bitcoin has much more room to move before it enters overvalued territory again.
Over in the Ethereum neck of the woods, we can see a strong correlation of price action between it and Bitcoin. It, like Bitcoin, has held its critical support level at $198 USD but has not experience much other volatility in the last week, while its RSI is hovering just above the 40 level, suggesting that Ethereum is not currently overvalued according to this indicator.
Onto the big news stories of the week…
Blockchain-Based Marijuana Payment System
Over in Arizona, a new cannabis industry-oriented payments solution has been accepted. The Company, called Alta, is a cash management solution for licensed medical marijuana providers and vendors, and intends to offer a stablecoin that is pegged 1:1 with the US Dollar. Alta’s end goal is to let users use this new stablecoin to pay for goods and services without using Fiat money (ie USD). This company has come about in an attempt to bridge the gap between the marijuana cash economy, which exceeds $350 million annually in Arizona alone, and the finance sector; Alta aims to “lift the burden of having to operate solely through cash and to make communities safer.” In a new bill proposed in the state of California, lawmakers have recommended that tax payments from cannabis-related businesses might soon be permitted to be in crypto, a big move for the crypto industry!
The Pit Exchange Takes on Binance
Blockchain.com, the major crypto wallet and blockchain provider has just launched its own crypto exchange to compete with popular platforms such as Binance. This new service was created by a team of former execs from Google and Goldman Sachs, NYSE and TD Ameritrade. According to their public announcement, The Pit will make itself available in over 200 countries and will initially support 26 trading pairs. Peter Smith, the CEO of Blockchain.com, commented on the speed of The Pit’s Mercury processing engine, claiming that the The Pit can execute order in a matter of microseconds, representing some of the fastest order-matching in the business. So far the company has raised a total of $70 million from investors including Richard Branson, Alphabet venture arm and Lakestar.
We Return to the US Congress
The importance of what occurs in the US House of Congress in the next 18 months cannot be understated. What these men and women ultimately settle upon, will shape the future of blockchain technology, the crypto space and even the worldwide economy for many years to come. This week, many advocates came forward, one of them being Senator Michael Crapo, stating “I want the US to stay at the forefront of this technology, which both has incredible potential and incredible risk”. Senator Catherine Marie Cortez Masto said that she also believes in the potential of blockchain and the importance of leading in this technology over China. As you can see, this support and long-term vision for a future built around the blockchain is met with some fear and apprehension, especially regarding the risk Facebook’s Libra poses to the foundations of the US Dollar, however it is apparent that even the biggest economy in the world is preparing for a future that is powered by blockchain technology.