Although the price of the first cryptocurrency on the market has fallen, investors continue to accumulate. Woo believes that buyers are entering a zone of maximum accumulation.

Willy Woo reported last week on a bullish on-chain structure for the price of Bitcoin, with expectations of breaking above USD 50,000. The analyst maintains that China’s decision to declare Bitcoin illegal negatively affected the value of the cryptocurrency.

Woo predicts around two weeks of sideways movements between USD 39,000 and USD 47,000. Meanwhile, he argues that it is plausible to wait two or more months of re-accumulation before a bullish rally in the medium term.

The analyst said he adjusted the supply shock curve appearing in the bulletin of September 30^th. That shows that a bearish divergence existed when the price of Bitcoin hit USD 53,000 on September 7^th. Woo stated that this was evident in that investors were selling as the price rose.

Currently, the price of the cryptocurrency is descending while the supply shock is ascending due to accumulation. That implies that there is less BTC available for sale.

Holders Say that Bitcoin Is On a Discount

A valuation model shows an estimated price at a time when the supply shock had similar values. Blue dots indicate the price for long-term holders, while red dots represent short-term investor valuations.

Long-term investors usually price BTC close to USD 45,000 while short-term buyers value it above USD 50,000. Both values exceed the USD 43,000 price that BTC had at the time of publication of the analysis. That reflects that both groups of investors consider Bitcoin to be at a discount.

Investors Are in an Accumulation Phase

Long-term investors or strong hands currently have two distinctive traits, according to Woo. The first is that they are in a steady accumulation process.

Long-term investors began accumulating after the profit-taking that began with the all-time high in mid-April. Although there is no growth, the flow of accumulated coins remains constant.

The supply shock is a macrocentric metric that tracks coins aged in wallets for more than five months. At that threshold, holders will likely begin to decrease the sale of those coins. Historically, that chart peaks for two months or more before a strong rally occurs, Willy Woo said.

Woo concluded that the fourth quarter of 2021 appears poised for a side accumulation phase. That could happen before a bullish phase later this year and even in 2022.

The analyst said that he would adjust his previous supply shock models. He explained there was an overestimation of some bullish indicators, which will go through adjustments in the future.

The price of Bitcoin recently increased by about 8%, due to statements by the president of the US Federal Reserve, Jerome Powell. The government official stated that the North American country would not ban Bitcoin.

The rally allowed Bitcoin to rise above USD 47,000 again, the level it was on September 20^th. The cryptocurrency had that value before the crash of Chinese real estate firm Evergrande took it to USD 43,000. Currently, BTC is trading at around USD 47,914, according to CoinGecko.

By Alexander Salazar

All members of the Chamber of Deputies will soon discuss the initiative that Aureo Ribeiro introduced. The official recognition of cryptocurrencies as a form of payment will favor the prevention of financial crimes.

Brazilian deputy Aureo Ribeiro introduced a bill for the official agencies of his country to recognize payments with cryptocurrencies. That would allow Bitcoin (BTC) to become a payment currency, which would attract investment and help people make transactions with confidence.

The initiative of the legislator proposes the regulation of crypto assets, which he defines as digital securities that people can use for paying or investing. The deputy says that this will help regulate a market that, despite existing in practice, the Brazilian laws do not recognize.

That measure would also favor the prevention of financial crimes related to cryptocurrencies in Brazil. Those who commit fraud such as money laundering will face penalties of around four years in prison and fines of two-thirds of the money laundered.

Ribeiro said that regulation by a government agency would allow cryptocurrencies to enter a legal framework that protects investors. He stated that they should work together with the Central Bank and the Securities and Exchange Commission to determine whether crypto assets are securities or currencies.

One of the committees of the Brazilian Chamber of Deputies already approved the deputy’s project on September 29^th. Therefore, it will only be necessary to wait for it to receive treatment from all the members of the Chamber. Then, they will vote for the initiative, which will go to the Senate for a new final vote if it receives approval.

Brazil Will Not Be at the Same Level as El Salvador Regarding Bitcoin Adoption

The approval of Aureo Ribeiro’s bill would mean that the Government of Brazil has recognized Bitcoin officially. However, its approval as a payment method does not mean that it is legal tender, as in El Salvador.

Although Ribeiro has said that Bitcoin could be legal tender in Brazil in 2021, that is not entirely true. It is an advance in regulating crypto assets in the South American country, but it is not the same as El Salvador legislated.

Brazilian businesses do not have to accept cryptocurrencies as compensation for the goods and services they offer. Similarly, the State does not have to guarantee access to them, as happened in the Central American nation. The latter installed the Chivo wallet and Bitcoin ATMs to help citizens use the cryptocurrency.

That will be something similar to what Cuba recently did, recognizing cryptocurrencies as a form of payment. Those regulations also license crypto asset service providers operating on that island.

Another case of current legislation concerning BTC is Ukraine, but nobody can pay with cryptocurrencies there. However, the State legally recognizes them as assets to prevent scams and regulate the market to attract investment.

El Salvador, Cuba, and Brazil are just three examples of the interest from governments in the use of cryptocurrencies. It is just a matter of time before most countries recognize Bitcoin as an official form of payment.

By Willmen Blanco

Facebook announced that it would use its roadmap to build its Metaverse and funding to support research partners. Alibaba will ban the sale of cryptocurrency miners and suspend the sale of crypto assets on its platforms.

Sixty percent of institutional investors and wealth managers in the US, UK, France, Germany, and the United Arab Emirates have no exposure to cryptocurrencies. A survey by Nickel Digital Asset Management revealed that 62% of institutional investors expect to put money in them for the first time next year.

Long-term capital growth prospects of cryptocurrencies are the main reason to invest in them for the first time. Forty-seven percent of those surveyed cited that opinion.

Meanwhile, 44% expressed that they trust cryptocurrencies more because many companies and fund managers now invest in them.

For their part, 41% said they wanted to start investing in cryptocurrencies as the regulatory environment is improving. One in three respondents (34%) said that it is a good hedge against inflation.

Facebook Will Invest USD 50 Million to Develop Its Virtual Metaverse

Facebook recently announced that it would allocate USD 50 million to a two-year fund. In that way, they seek to start realizing the company’s vision of a virtual Metaverse.

The company recently announced that they would use their roadmap to build their Metaverse and funding. They said they would use the latter to support research partners and global programs looking to develop the platform and do internal research.

They say that a single company cannot build the Metaverse overnight. For that reason, they stated that they would collaborate with policymakers, experts, and industry partners.

Alibaba to Ban Selling Cryptocurrency Miners Amid Chinese Crackdown

Alibaba officially announced that its platform would ban the sale of cryptocurrency miners. Furthermore, it said that it would suspend the categories for blockchain miners and accessories from its website.

Besides suspending the sale of cryptocurrency mining devices, Alibaba will ban using its platforms to sell leading crypto assets. They will not allow trading Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and weak currencies like Quark (QRK).

The new restrictions include hardware and software related to cryptocurrency mining, relevant tutorials, guides, and strategies.

Morgan Stanley Doubles Its Exposure to Bitcoin

US investment bank Morgan Stanley has doubled its holdings of Grayscale Bitcoin Trust shares since April.

In its latest filing with the U.S. SEC, the bank revealed that the Morgan Stanley Europe Opportunity Fund wants to invest in established and emerging European companies. In addition, it said it had USD 371 million worth of assets and owned 58,116 GBTC shares as of July.

Although the exposure to cryptocurrencies of the European Fund has increased, the investment bank has also invested in GBTC in multiple institutional portfolios.

Chinese Ethereum Mining Group BeePool to Close

Ethereum mining pool BeePool, the fourth largest in terms of hash rate, will suspend its services to miners.

The Chinese mining pool operator has already suspended registrations for new users besides new subsidiary accounts for existing users. That information appears in a notice on the official BeePool website.

The company said it is suspending its services due to regulatory and compliance concerns of the repression by the Chinese government. The People’s Bank of China intensified its crackdown on cryptocurrencies, declaring crypto-related transactions illegal.

By Alexander Salazar

Castro made a comparison between the performance of the pension system in Chile with that of Bitcoin. The senator considers that having invested his pension fund in BTC is nothing negative.

The Chilean senator for the National Renovation (RN) party, Juan Castro, said his son suggested he buy Bitcoin (BTC). To do that, the official invested 10% of his pension fund.

Castro said he gave the money to his son, who likes to bet on cryptocurrencies, to see how he would make it grow.

Castro’s decision to invest in cryptocurrencies sparked controversy in Chile. Although the legislator was sincere about his investments, he did not reveal the amount of Bitcoin he bought.

Castro stated that the performance of his money with the cryptocurrency is similar to what Pension Fund Administrators (AFP) achieve.

He stated that he is happy as the investment his son helped him make bore fruit. He added that he is getting a good retirement while they are both learning about cryptocurrencies. He considers that what he has done with his money is nothing negative.

Chile is one of those countries where the pandemic has caused the most severe economic damage. For that reason, the parliament approved of people withdrawing 10% of their pension funds. That would allow them to alleviate the difficult financial situation that the country is going through.

The first official withdrawal of funds in July 2020 benefited 10,408,556 people. The Chilean Superintendency of Pensions said that this generated incentives for USD 19,922 million.

Senator Castro took advantage of that situation to buy Bitcoin, which traded at around USD 11,116 in July 2020.

The price of Bitcoin started October with an increase of almost 8% in the first hours of that day. For the first time since September 20^th, the market price of BTC returned above USD 47,400. Therefore, Senator Castro has increased his Bitcoin net worth by more than 76% since July.

Chile’s parliament has approved another three withdrawals of 10% of pensions between 2020 and 2021. That means there has been a disbursement of almost USD 50,000 million. The authorities are currently debating whether to approve the fourth withdrawal of 10% of pensions.

Chilean Pension System

Private companies, under the so-called Chilean AFP Association, have administered the Chilean pension model since 1981. That union organization brings together the Pension Fund Administrators societies.

The people affiliated with the AFP must consign 10% of their monthly income. That deposit will serve as the basis for calculating the amount of pension that people will receive upon reaching retirement age.

More Politicians in the Region Favor Bitcoin

Chilean Senator Castro is not the only one who has acquired Bitcoin, as other politicians in the region say they have bought it. Meanwhile, others have only shown their support for the pioneering cryptocurrency.

Regarding Argentina, economist and politician Javier Milei has repeatedly said that he loves Bitcoin. In addition, he has expressed that he considers that cryptocurrencies emerged as part of the evolution of money. Even former education minister Esteban Bullrich confirmed that he had Bitcoin in his investment portfolio.

The importance of Bitcoin is becoming increasingly evident in the world economy. The interest in it from representatives of the governments of Latin America is just one example of that.

By Alexander Salazar

The firms will receive a response for their proposals from the SEC between November and December. The VanEck Company recently received the last extension of its application review process until November.

The US Securities and Exchange Commission (SEC) recently again expressed doubt about Bitcoin (BTC) exchange-traded funds (ETFs).

The government agency considers it appropriate to designate a more extended period to take action on regulatory changes. They have notified companies Global X, WisdomTree, Kryptoin, and Valkyrie of that.

The SEC stated that Bitcoin-related companies have been looking to modify financial laws for years to establish ETFs.

Global X will receive an answer on their proposal on November 21^st, while Valkyrie will receive the notification on December 8^th. Likewise, the SEC will postpone the WisdomTree and Kriptoin applications until December 11^th and December 24^th, respectively.

Another company that has waited for a response from the SEC is VanEck. They recently received the latest extension of their application review process, whose final response they will receive on November 14^th. VanEck made the request at the beginning of the year, but the government agency admitted it in March.

The SEC Considers Bitcoin Futures-Based ETFs to Be Positive

SEC Chairman Gary Gensler has said that they may approve ETFs, specifically under strict mutual fund rules. These focus on Bitcoin futures rather than on the cryptocurrency itself.

In late September, the official expressed that the digital asset management sector is growing and evolving. In addition, he said that the agency he leads is monitoring new business strategies, structures, and practices.

The president of the US Federal Reserve (FED), Jerome Powell, also spoke about Bitcoin. He stated that the country’s government has no plans to ban Bitcoin and other cryptocurrencies.

The advantages that ETFs Offer the Market

Bitcoin-based ETFs are an investment tool that would use the pioneering cryptocurrency as its main asset. Their primary purpose would be to facilitate the investment process in the crypto asset, making it more attractive and accessible to the community.

ETFs have gone public and now represent the collection of different securities, stocks, and bonds under a single share. The trading of shares in various companies is sometimes complex, so ETFs are convenient for long-term stock investing.

Whoever buys an ETF does not acquire individual shares of a market but a benchmark value of a set of them. For that reason, the person or firm would be investing in the most important companies in the United States. Therefore, the value of ETFs will fluctuate based on changes in the prices of the linked shares.

Likewise, when a person acquires an ETF, he buys a benchmark value of the set of shares. When purchasing an S&P 500 ETF, he invests in the leading companies rather than a single asset. Consequently, the value of ETFs will fluctuate according to variations in the prices of the linked shares.

In 1976, ETFs began to be investment tools to copy the behavior of the S&P 500 index. However, the ease and efficiency they offer have allowed them to grow at a great rate in the last 20 years. They enable short-term investors to use exchange-traded funds to enter and exit a position rapidly.

By Willmen Blanco