The Federal Open Markets Committee (FOMC) of the FED indicated that certain economic indicators are evolving favorably, so there could be changes in their financial policies in the face of the COVID-19 pandemic.

The US Federal Reserve (FED), the main entity in charge of the country’s monetary policies, would be planning to make new changes to the measures that it originally applied to support the local economy in the framework of the COVID-19 pandemic, considering the reduction of the investment earmarked for the purchase of some assets.

This news got revealed in the meeting held by the Federal Open Markets Committee (FOMC) on July 27 and 28, in which most officials agreed that expectations about inflation levels have been fulfilled and that the unemployment rate fell to more favorable levels.

Reduction in Purchase Rates is a Relief

About the purchase of bonds by the FED, most of the participants considered that there were benefits by reducing the rates with which the agency has been acquiring them, although there were officials who had shown their interest in reducing these figures, especially from mortgage-backed bonds.

Regarding bank interest rates, at the moment there were no new announcements from the committee. They will remain close to zero at least until 2022 or 2023 remains in force, depending on how the others evolve. indicators.

Stablecoin Concerns

Another point on which the committee discussed had to do with the flourishing seen among stablecoins in the financial market, noting that these types of assets lack structural maturity and do not have a detailed regulatory framework to address their features.

Some of these participants highlighted the fragility and general lack of transparency that usually take part in stablecoins, the importance of monitoring them closely, and the need to carry out a correct regulatory framework to address any risks to financial stability associated with such products.

The recent statements by the committee stand out in light of comments made by Fed Chairman Jerome Powell, who assured that the launch of a digital dollar would make people look less for operating stablecoins in the market.

However, regarding this issue, Powell highlighted that there is a real interest in working around the creation of a digital dollar, but the US government is not interested enough in being the first nation to solve this matter.

He also highlighted that this cryptocurrency would have different features when compared to the digital yuan, given that the economic values and financial principles are totally different from those contemplated by the Chinese entities.

By Jenso Nuñez

The People’s Bank of China in Shenzhen applied a series of actions to clean up companies due to suspicious crypto trading operations.

China and its crackdown on the crypto industry are not over. Recent reports indicate that the People Bank of China (PBoC), the central bank, continues to take action against companies in the sector. On this occasion, those affected were companies located in the Chinese province of Shenzhen.

According to state-owned news outlet Shanghai Securities Journal, the Shenzhen branch of the People Bank of China took action to clean up at least a dozen companies in that area for allegedly trading cryptocurrencies illegally.

Although the publication did not bring further details on how the companies got punished, or even the names or occupations of these firms, the medium detailed that the central authority planned to rectify at least 11 companies that faced suspicions of carrying out activities of illegal digital currency.

PBoC Cleans Cryptocurrency Companies

According to the report, the actions against cryptocurrency companies in Shenzhen took effect in conjunction with a series of far-reaching measures against illicit cross-border trading of currencies and stocks. The authorities’ primary goal was to find a well-known local financial website that would be offering suspicious advertising of illegal currency deposit operations.

The Shanghai Securities Journal report continued suggesting that the People’s Bank of China plans to carry out a pilot project to train financial customers on technology and risk prevention.

Shenzhen government has taken a strict approach to go after crypto companies before. In late 2019, a report by local news outlet Sanyan Finance stated that authorities in the province had discovered the identity of a total of 39 exchanges that were in breach of China’s cryptocurrency trading ban.

The operation also included the PBoC, as well as the Office of Economic Investigation of the Municipal Office of Public Security and the Municipal Administration of Communications; although the exact penalties that would take effect to said companies have not been either revealed.

China’s crackdown Has Not Stopped

The news about the persecution of digital asset companies in Shenzhen comes amid a further crackdown on cryptocurrencies in China. While trading in digital currencies has been illegal in the Asian nation for several years, this year, the country’s authorities have taken a more strict approach against all the companies in the sector.

The approaches are aimed mainly against the miners, who have had to close and move their cryptocurrency extraction operations to foreign countries. The actions of the Chinese government have generally had a major impact on the local crypto mining industry, as well as on the Bitcoin network.

According to data from the University of Cambridge, China’s contribution to Bitcoin’s mining power (global hash rate) has fallen below 50% this year after peaking at 75.53% during 2019.

While the possession of cryptocurrencies has never been completely banned, the Chinese state has gradually increased restrictions on the industry since 2017. This year, China’s council of ministers, the State Council, called for a crackdown on cryptocurrency mining.

By: Jenson Nuñez

The police of Toledo started the investigation after the detection of high electricity consumption in the area. What began as an operation for environmental crimes in Lara, Venezuela, led to the seizure of 28 Bitcoin miners.

The National Police of Spain recently dismantled a Bitcoin mining farm in a villa in the Yeles municipality in Toledo. The agents found 111 cryptocurrency mining machines, refrigeration, and smoke extraction equipment in the facility.

The National Police said that they had identified a woman as the alleged perpetrator of the electricity fraud. She used an illegal connection to ensure the maintenance of the facility.

The investigation began after the detection of high electricity consumption in the area of the chalet. In addition, the house released a thermal emission much higher than that of a family home, said the police.

That type of facility requires high energy consumption to generate sufficient profitability. As that is too expensive, the woman under investigation used an illegal connection to the low voltage distribution network. A three-phase electrical connection allowed it to reach a high energy consumption illegally, the National Police explained.

Those who operated the Bitcoin mining farm had installed cooling equipment and thermal insulation panels on the walls. Those precautions might have contributed to the failure of the police to detect them earlier.

Although cryptocurrency mining is legal in Spain, few people do it due to the high electricity costs.

Police Seize Bitcoin Mining Equipment While Searching For Toxic Material in Lara, Venezuela

There was recently a new seizure of Bitcoin mining equipment in Lara state, Venezuela. A group of police officers raided a warehouse that was illegally processing toxic material. However, what began as an operation for environmental crimes led to the seizure of 28 Bitcoin miners, according to local media.

The police officers said that the owners had followed various procedures to transform solid, liquid, and gaseous materials. To do that, they needed to receive express authorization from the authorities.

In addition to the Bitcoin mining equipment, the authorities seized 52 tons of polyethylene, electrical transformers, vehicles, and a cell phone.

Although police officials determined it was an environmental crime, no one yet knows what will happen to the mining equipment.

Seizure of Bitcoin Miners in Venezuela

The Superintendency of Crypto Assets and Related Activities is the regulatory body for digital mining in Venezuela. Their presence is necessary to conduct police operations associated with mining equipment without a license.

In mid-June, the police seized equipment and arrested a group of operators, who got out of jail after the intervention of SUNACRIP. As the most recent case is not directly about the Bitcoin mining activity, nobody knows how the entity would proceed.

The seizure of equipment for mining Bitcoin and other cryptocurrencies has become common in Venezuela. Although there is a regulation on the activity, the authorities conduct operations to search for machines operating without a license.

By Willmen Blanco

The burning of tokens on Shiba Inu reduces the volume of assets in circulation, so their scarcity increases over time. The formation of a sideways channel indicates that SHIB is in an accumulation period that could precede a new upward trend.

The Shiba Inu token is regaining ground in the market after hitting a monthly high of USD 0.0000095. However, users executed orders that led it to trade at around USD 0.00000846. The momentum of the crypto fever could help the cryptocurrency overcome the resistance closest to it, thus losing another zero.

The price of SHIB, the Shiba Inu native token, has increased by 2.2% in the last week. Its market capitalization is about USD 4,131,149,289, according to CoinGecko.

Shiba Inu Could Reach a New All-Time High in the Long Term

The developers have implemented the burning of tokens on Shiba Inu, a reasonable factor to consider when analyzing a cryptocurrency. Since that procedure reduces the volume of assets in circulation, their scarcity increases over time.

On the other hand, the community of users who trade Shiba Inu continues to grow. The SHIB and DOGE communities together increased by more than 54%, according to data from Crypto.com.

That is positive for Shiba Inu since the community gives it strong support and will not waver at the first fall. On top of that, some facts show just how popular that project has become. For example, the cryptocurrency recently joined eToro, Coinbase, and other platforms.

Previewing the 4-Hour Candlesticks

Although the token should now have an upward trend, it is a question of holding and waiting to see the market movements. In the meantime, it is necessary to preview the short-term graphs to assess their possible performance in the coming days.

The Shiba Inu chart shows that the token was in an accumulation period before the upward trend started. Currently, the formation of a sideways channel also indicates that the same thing is happening as then.

However, the 50-period EMA and the 20-period midline of the ENV channels are about to cross to the upside. That reveals that an upward trend will start soon, which the RSI can confirm on neutral grounds. Besides, there is a slight rally indicating that traders are buying SHIB.

Additionally, the candlesticks crossing above the moving average levels of the ENV channels and the low volume confirm the bullish continuation pattern. If that happens, it will be possible to see the cryptocurrency approach USD 0.000009 in the next few hours.

The closest resistance in the price of SHIB is at USD 0.00001. For that reason, users should be aware of the closing of the 4-hour candlesticks and the crossing of the EMAs.

The momentum that Bitcoin has had in recent weeks has contributed to the growth of the cryptocurrency market in general. Even tokens like SHIB have benefited from it, as it is about to lose another zero and hit a new all-time high.

By Willmen Blanco

The increase in the volume of transactions has made the price of LUNA multiply almost five times in a month. The token is likely to hit new all-time highs soon before a significant correction.

The LUNA token is growing as fast as the adoption of its blockchain Terra. That protocol seeks to offer stablecoins pegged to fiat currencies to supply the payment system worldwide.

LUNA is the main tool to stabilize the prices of those stablecoins, at the same time that it works as a method of governance of this blockchain.

The token’s price recently reached USD 33.39 after growing by 39.74% in 24 hours, thus reaching a new all-time high.

The dramatic escalation of its price led it to occupy 12^th place in the cryptocurrency ranking.

What is Happening with the LUNA Token and its Blockchain Terra

In the last month, the price of the LUNA cryptocurrency has multiplied almost five times. The main reason behind that is the dramatic increase in the volume of transactions that it has had.

The large number of traders who have bought and sold LUNA may be related to Coinbase. The exchange has been supportive of the crypto asset, which may have driven expectations about it.

On August 12^th, Wrapped Luna and Terra USD (UST) went public on Coinbase. Although they are not the same as the LUNA token, the three cryptocurrencies are interrelated.

There have been deposits of more than 60,000 ETH to mint tons of UST as loans. Meanwhile, the LUNA equivalent burns, resulting in a price increase.

The number of addresses owning UST increased from 80,000 to more than 460,000 in one month, demonstrating a high speed of adoption.

Another factor may be driving the rally of this cryptocurrency. The Columbus-5 update will occur on the Terra network, which will allow the creation of more applications and better financial incentives for users.

The Technical Analysis of LUNA

Nearly 500% of the gains in the last month show just how developed the current momentum is.

That does not mean it should be exhausted anytime soon. On the contrary, LUNA is more likely to hit new all-time highs in the next few hours/days before a significant correction.

Momentum is currently developing after a significant correction, thus resuming the medium/long-term trend. It may even seek to expand further.

The best part in the short term is over, but a coming correction could contribute to purchases at better prices.

The daily chart indicates that momentum has also spread, but there are no signs of exhaustion. In any case, each extension of the rise allows the pullback to come closer.

The 8-day EMA and 18-day SMA moving averages could serve as dynamic support if a correction occurs in the short term.

Recommendations for Investors Interested in LUNA

Regardless of the great popularity and increase in price, people should know LUNA well before investing in it.

The same as with other cryptocurrencies, investors should exercise caution, as emotions can influence them easily. That could lead them to make wrong decisions due to the pressure of volatility.

However, if they do detailed research, they will be able to realize the strengths of LUNA. That way, they will have a clear mind to set reasonable investment goals.

By Alexander Salazar