The price of BTC fell 13% last week and has triggered doubtful thoughts in the market. Willy Woo believes that soon, the first cryptocurrency would start to rebound.

The price of bitcoin (BTC) keeps falling more and more and is even threatening to break the threshold of USD 30,000. The 13% decline in the last week has spread pessimism over the community, making it clear that there is a loss of confidence in the famous Stock To Flow (S2F) model, which is a model the market analyst “Plan B” uses to project the price of the cryptocurrency.

Although the price of the first cryptocurrency has lost more than 50% of its value since it was trading in the order of USD 63,000 in April, the estimates of “Plan B” remain bullish, stating that bitcoin may close the year 2021 above 100,000 dollars.

However, the researcher’s followers on Twitter argue that their beliefs in his predictions are decaying. The analyst himself, on his account, invited his almost 600,000 followers to let him know what price they expect by the end of the year. More than 40% of the 120,000 who participated in the survey, ended up saying that the price would reach USD 100,000.

The S2F model relies on the theory that describes bitcoin as a store of value like gold or silver. Bitcoin keeps its value over the long term due to its relative scarcity. So, under this idea, Plan B correlates the stock or quantity of assets currently at hand, with the flow or bitcoins’ amount mined every year, to project where the cryptocurrency’s price would move.

Although many users believe that the price will break this year, bitcoin’s price has been meeting the parameters established in the Stock To Flow model since 2012. A projection indicates that, by the end of the year, BTC could reach USD 91,000. However, this drop represents one of the deviations of the model towards the value-rate, since 2013.

Willy Woo, and his Thoughts on What’s to Come for Bitcoin

Willy Woo is one of the analysts who show optimism about a possible short-term rally in bitcoin’s price. He even tweeted why he thinks the cryptocurrency will face a replenishment this year.

Woo believes that if at least the 4.5 million adults living in El Salvador adopt bitcoin as a legal tender, this will be an immediate boost of 2.5% of the total number of users the network currently has.

Woo thinks that bitcoin will win this battle, and while some other nations or locations believe they should eliminate the currency from the market, others are emerging to accept it to raise and protect capital.

Woo describes the impact that the industry has recently been receiving because of China’s repression against bitcoin. Meanwhile, expectations are now rising about these other nations that will follow the route of El Salvador with its Bitcoin Law.

By: Jenson Nuñez

A court agrees that Ripple acceded to the SEC’s trading regulations. Elon Musk and Dogecoin developers now intend to reduce transaction fees by 90%.

From June 21 to 26, 2021, the cryptocurrency market highlighted its balances in red figures. According to Live Coin Watch statistics, about 100% of altcoins kept a downward trend, following the pattern set by bitcoin (BTC).

During this fall, certain news about some cryptocurrencies stands out, putting them in a position of greater public interest. Under this criterion, the top has XRP leading the list. This week Ripple obtained a new advantage in the lawsuit filed with the United States Securities and Exchange Commission (SEC).

Dogecoin (DOGE) is the one following XRP, and the developers and Musk are currently promoting a proposal to reduce commissions. Shiba Inu (SHIB) is gaining interest from its followers on Reddit, making it rank in the third position. The top ends with Stratis (STRAX), which launches a development kit for Unity games.

The price of bitcoin keeps descending, although, between rises and falls, it remains lateralized between USD 30,000 and USD 36,000. However, this week BTC suffered a drop that took the price below $ 30,000, a value that had not reached since last January.

The Pioneering Cryptocurrency Lost 14.4% in Just a Week, to Trade at $ 30,887

Along with BTC, Ether (ETH), the cryptocurrency of Ethereum, also registered a very important fall. On average, it lost 21.9% of its value. In these last seven days, the price moved between USD 2,260 and USD 1,738.

In this regard, a new report from the analytics firm Glassnode highlights that Bitcoin and Ethereum have been struggling with a dramatic slowdown on the chain. The drop in active addresses and the volume of money moved in both networks also need to be taken into account.

Although the two blockchains are dealing with such a negative moment, Ethereum has worse indicators than Bitcoin, according to data from Glassnode. Bitcoin has had a considerable reduction in active movements.

But, while activity in Bitcoin has fallen to 24% compared to the level of 1.16 million that moved between March and May of 2021, the fall in active addresses in Ethereum is stronger in percentage terms, with 30% less than a level seen between April and May.

Meanwhile, the prices of other cryptocurrencies are also falling. XRP lost 25%, while litecoin (LTC) depreciated by 23%; Polkadot (DOT) dropped 34%, and Cardano (ADA) declined by 13%.

The court granted Ripple Access to SEC’s Internal Rules

On June 23, Magistrate Judge Sarah Netburn approved the request of the company Ripple Labs to get access to the internal trading policies of the United States Securities and Exchange Commission (SEC). Ripple’s defense attorney, James K. Filan filtered the news through a tweet.

“Defendant’s request to access SEC internal trading policies is granted. The judge determines that the requested information meets the minimum requirements,” comments Filan, who sees this decision from The judge as a new point in favor of Ripple.

By: Jenson Nuñez

MicroStrategy CEO Michael Saylor clarified that his company is currently investing without being afraid of the current low Bitcoin prices.

MicroStrategy CEO Michael Saylor argued in an interview with Bloomberg that China made a trillion-dollar mistake by expelling Bitcoin miners from its borders. The investor and fervent Bitcoin enthusiast spoke about the adverse short-term effects thAT China had brought with the recent abolition of Bitcoin mining.

In the interview, while acknowledging the decline in the hash rate and prices, Saylor firmly believes that this mistake from the Asian country will bring an excellent set of chances for others to grow.

China Made a Huge Mistake

The Asian giant intensified its measures against the crypto ecosystem in the country this year. Among the several laws, it was the limiting of space to mining and commerce cryptocurrencies. The last action of this country, last week, came from the  Central Bank and its demand for banks to take action against digital currencies.

Before that, the Chinese authorities released a warning on May 21, arguing that it would take action against crypto, which has plunged prices since then. Subsequent movements were the closure of crypto mining in various areas and the massive migration of many farms and even mining equipment manufacturers such as Canaan.

Being a country like China, which has the highest percentage of participation in Bitcoin mining, all these actions seriously harmed the price. Michael Saylor commented on this matter in the Bloomberg interview and attributed the price declines to Chinese miners, which have to liquidate their positions by force.

Although he admitted that a nation as powerful as China could afford to make such a mistake, he still described the decision as a tragic move.

On the other hand, the low prices represent an opportunity for Western investors to hoard more cheap BTC, he says, including the company he leads.

Likewise, Saylor believes that North American Bitcoin miners will also benefit from this decision because their cost appears to be the same. They will generate 50% more revenue or 75% more revenue for quite some time.

Saylor Speaks About the Current Decline in BTC

Bloomberg journalist Emily Chang also discussed, during her interview with Saylor, the current decline in BTC. On June 21, MicroStrategy added another 13,005 BTC to its already sizable stake, which now totals over 100,000 BTC, valued at more than $ 3 billion.

Chang asked if he (Saylor) had ever considered the possibility that the dip was part of a prolonged dip. Saylor explained that China and its exodus of capital have already gained control over the dynamics in the crypto market.

He also clarified that his strategy for the company is long-term and evaluated that Bitcoin is to property what the iPhone is to music. the CEO took to Twitter to reiterate some main points from his interview. In a tweet, he said:

“If you want to bring joy to 5 billion people, you need to give them digital music; if you want to give knowledge to 5 billion people, you need to give them digital books; if you want to give wealth to 5 billion people, you need to grant them digital property. ”

By: Jenson Nuñez

For the financial institution, banks will have to satisfy the increasing demand of investors. According to the financial institution, cryptocurrencies have yet to overcome doubts about regulation and volatility.

The multinational finance company, Morgan Stanley released a recent statement highlighting the advantages of the institutionalization of bitcoin and cryptocurrencies. The finance company said it would generate opportunities for asset and wealth managers.

 In addition, Morgan Stanley expressed that institutional investors will also increase in numbers and that it will be necessary to satisfy that demand in a market whose capitalization continues to grow.

In the letter, which did not come from the entity but the Twitter user @zerohedge, which posted it on this social network, the company explains that the market capitalization of cryptocurrencies has already surpassed 2 billion dollars in April of 2021.

Because of this increase, Morgan Stanley requests asset managers wishing to take action in the cryptocurrency sector to consider a set of products as an answer. It would mean including crypto assets as part of an existing multi-asset fund to having passive or active products dedicated to cryptocurrency, to offer structured solutions.

On the other hand, the text entitled Cryptocurrencies: “time to decide and act refers to the obstacles that bitcoin still has to overcome. Regarding these constant barriers that still exist for greater institutional adoption of cryptocurrencies, MS detailed that the uncertainty regarding regulation, the high volatility, and the sustainability struggles are the most vital aspects, and they need a solution.

However, Morgan Stanley clarifies that an increasing number of investors will be interested in cryptocurrencies, and wealth managers will need to develop a supply to meet this demand.

The forecasts of the US firm, one of the most recognized in the field of investment agencies and brokerage firms, predict that cryptocurrencies could amass almost 200,000 million dollars of total locked value (AUM) and approximately 1,000 million on earning opportunities from ETFs (Exchange Traded Funds).

The text also adds that these figures represent a non-trivial opportunity compared to the almost $ 12 billion in gains that ETFs of other types of assets had in 2020.

Morgan Stanley and its Actions to Set a Bitcoin Adoption

The vision of this American entity towards bitcoin goes far beyond mere words and turns into action. It was the first traditional bank to offer direct purchase of bitcoin to its most qualified customers. Also, the recent announcement made in March shows that the employees would receive proper training in cryptocurrency.

Likewise, MS also initiated proceedings in the United States Securities and Exchange Commission, so that 12 of its funds meet indirect exposure to bitcoin. According to the April 2021 announcement, this exposure would come from two methods. One method is about futures settled in cash and through the Grayscale Bitcoin Trust (GBTC).

By: Jenson Nuñez

The FCA has been warning Binance about its situation in the UK since last year. In addition to that notice, the company has received others from financial regulators in Japan and Germany.

Financial Conduct Authority (FCA) recently banned Binance Markets Limited from doing any regulated activities in the UK without authorization.

The information appeared on the website of the regulatory body in a letter where they provide some arguments. They said that, due to requirements by the FCA, Binance Markets Limited must not conduct any regulated activity without our prior consent.

According to the report, no other entity in the Binance Group has an authorization, registration or license to do regulated activities in the UK. They also warned that the exchange platform could be offering products and services through a website.

The exchange applied to become a registered cryptocurrency company, as the law requires from those types of British institutions. However, they withdrew the application in May due to the strict criteria of the regulatory body to approve the practices. The latter says that it seeks to prevent money laundering and terrorist financing through those types of assets.

The regulator also established that Binance should post on its website that it cannot do regulated activities in the UK. Therefore, they must secure and preserve customer information from their systems and stop all kinds of financial advertising, says the FCA.

Binance Has Already Received Other Warnings in the Past

Last year, Binance established itself as part of a larger group to launch the Binance.UK platform. The platform bought a financial company already registered with the regulator to operate in the country without problems.

It is not the first time that Binance has received a warning for offering products and services to citizens without the corresponding permit. For example, in October 2020, the FCA said that its new regulation prohibited the sale of cryptocurrency-related products. They mentioned derivatives such as options, futures and publicly traded notes that companies operating in the UK regulate.

The warning of the FCA is contradictory as Binance has assisted British police in investigating a fraud involving USD 50 million. The exchange included a letter of praise from the UK’s South East Regional Organized Crime Unit on its blog.

In recent days, the first cryptocurrency exchange by transaction volume said it helped the British police force. Thanks to that, they were able to arrest a seller of phishing tools that caused the theft of millions of sterling pounds (CBP).

The warning of the FCA adds to the one that Japan made recently and the one that Germany made in April. Japan’s Financial Services Agency told the Binance exchange that it did not have any record with them. The CEO of the firm said that his legal team worked alongside Japanese regulators to obtain a license.

Additionally, regulators in other countries, such as the United States and Canada, have the platform in their sights. A few days ago, Binance announced it would close its operations in Ontario, Canada, without specifying the reasons.

By Alexander Salazar