The analyst claims that most Bitcoin sales come from new traders. He notes that the current balance of Bitcoin on exchanges is at the lowest levels in two and a half years.

Willy Woo recently reiterated that the price of Bitcoin (BTC) has entered a consolidation phase of around USD 29,000. Besides, the renowned analyst updated the cap to USD 56,000, compared to an estimate of USD 42,000 that he had previously made.

Basing on in-chain data and his metrics, he said that the phase of profit-taking by the whales has concluded. Likewise, he said that the flow of incoming bitcoins on exchanges is lower than that of outgoing bitcoins. The analyst considers that these two factors confirm the validity of the current upward pace of Bitcoin.

On January 30^th, Woo posted on his Twitter account a series of graphs that support his predictions. To begin with, he mentioned the metric that tracks earnings when there are sales of Bitcoin (Spent Output Profit Ratio or SOPR).

When that quotient reaches the value 1, it reflects that the sale of Bitcoin occurs at the same acquisition price. According to Woo, when it is below 1, the sale would generate losses. A pronounced bearish phase would be necessary to sell below that value, clarifies the analyst. However, he reiterated that he does not contemplate that scenario at the moment.

Woo also referred to the growth in the number of new Bitcoin users. He spoke of “new entities” as it is the absolute growth in the number of addresses, which were around 25,000 in January. Although a user may have several addresses, a notable increase in their number also implies a similar increase in the number of users.

“There is an indication of the huge number of users entering the Bitcoin market, even in this consolidation phase. The number of new users arriving daily is higher than at any other time in this bullish market,” Woo explained.

Through another graph, the trader showed the flows of incoming and outgoing bitcoins on exchanges up to January 29^th. It is possible to see that a large number of bitcoins left exchanges daily that month, which was up to around 200,000 BTC. The occasional spikes in the number of bitcoins entering exchanges are minimal, compared to those leaving.

The dominance of outgoing flows in 2020 differs from that of the 2017-2018 and 2019 bullish cycles. In the latter, incoming flows dominated, and it was hardly possible to reach the maximum price.

Glassnode states on Twitter that the supply of Bitcoin on exchanges is at its lowest level in two and a half years. From 3 million BTC in early 2020, it went down to less than 2.4 million today. In his last market newsletter, Willy Woo set a Bitcoin price consolidation band between USD 29,000 and USD 42,000. He predicted a breakout above USD 42,000 but now says that that cap has risen.

After skyrocketing, the price of Dogecoin drops by around 48% in just 24 hours. Reddit groups WallStreetBets and SatoshiStreetBets are looking to drive the price to one US dollar.

After an increase that showed the frenzy of crowds and the magic of memes, the price of Dogecoin (DOGE) recently fell by almost 48%. The digital currency pulled back from the high of USD 0.06, with which it reached just USD 0.021.

This cryptocurrency, which emerged as a joke about the popular “Doge” meme, had skyrocketed to 800% in one of its markets. That happened after Reddit turned its attention to it, and the number of comments to make it the equivalent of GameStop increased.

Dogecoin reached an all-time price high of 0.078 US cents per unit. Furthermore, its market capitalization exceeded USD 10 billion for the first time, which no one could even imagine a few years ago.

Robinhood Suspends Instant Deposits for Cryptocurrency Purchases

Stock and cryptocurrency trading platform Robinhood recently temporarily disabled instant deposits for cryptocurrency purchases. They cited “extraordinary market conditions” as the reason for this.

Users of the platform can buy cryptocurrencies with settled funds that they have previously deposited. However, such deposits may take up to five business days for their clearing.

Many have recently criticized Robinhood for suspending the trading of several traditional stocks. These include those of GameStop, a company that received support from retail investors to the detriment of Wall Street hedge funds.

DOGE’s Rapid Price Rise Complicates Its Withdrawal

There are increasing problems with withdrawing DOGE on the main cryptocurrency exchanges. Several cryptocurrency users said on Twitter that exchanges had temporarily disabled withdrawals of this crypto asset.

The exchanges affected included some of the major cryptocurrency platforms such as Poloniex. Some users logged into this latter exchange, which is compatible with Dogecoin, to buy some coins of this cryptocurrency. However, they only found that withdrawals were not available shortly after they had made the deposit.

“We are working to re-enable the wallet as soon as possible, but we do not have an estimate on the schedule at this time,” Poloniex later announced. That situation upset some users very much, who demanded that the exchange pay them their money at a fair value.

The Factors That Have Driven the Price of DOGE Higher

There are several factors behind the DOGE price boom, stemming from the frenzy that users in the Reddit group WallStreetBets initiated. These roughly 2 million users had previously bought a lot of GameStop shares to drive the value of the company higher.

The Twitter user identified as @WSBChairman poses as the “president” of the Reddit group. He asked their followers if DOGE has ever been worth one US dollar, which may have driven the price up. That message has already achieved more than 30 thousand likes and almost 6 thousand retweets.

For their part, the Reddit group SatoshiStreetBets could also be promoting the purchase of the cryptocurrency so that its price grows in the markets. A high number of users encourage holders to keep their coins to bring the price to USD 1 per unit.

By Alexander Salazar

Ripple is responding to the lawsuit that the SEC filed against it for selling financial assets illegally. In an agreement with the US Department of Justice and the FinCEN, the firm registered XRP as a convertible virtual currency.

The US Securities and Exchange Commission (SEC) and Ripple, the company behind XRP, are still waging a legal battle. The SEC filed a lawsuit against Ripple for the alleged illegal sale of assets for years.

Currently, Ripple is responding to that lawsuit, arguing that XRP is not a financial asset or a form of investment. They assert that it is not a security but a useful virtual currency.

Within the legal system of the United States, the qualities of cryptocurrencies are one of the most complex matters. The SEC considers cryptocurrencies to be financial assets that require registration and supervision. They would do it in the same way as with any stock, bond, futures contract, or other traditional financial products.

For this same reason, Telegram had to suspend the launch of its blockchain Telegram Open Network (TON). The SEC determined that the pre-sale of millions of Gram, which would be Telegram’s cryptocurrency, constituted an illegal sale of financial assets.

Right now, Ripple is facing the same problem with its crypto-asset XRP. The SEC argued in its lawsuit that the company had illegally sold USD 1.3 billion worth of XRP for seven years. Furthermore, they alleged that they had been promoting the token and paying for third-party support and advertising.

Ripple’s Response at the Court

Of course, Ripple has responded to each of the SEC’s arguments through a 93-page document. They are focusing on proving that XRP is not a financial asset that guarantees any rights to investors. They explain that it is a virtual currency whose usefulness goes beyond its value in the financial market.

Ripple also mentioned that it reached an agreement with the US Department of Justice and the Financial Crimes Enforcement Network (FinCEN) in 2015. In that arrangement, they registered XRP as a convertible virtual currency, which allowed conducting transactions in secondary markets.

“The functionality and liquidity of XRP are totally incompatible with regulations on securities. Therefore, requiring registering XRP as a security is detrimental to its main usefulness. The lawsuit mischaracterizes the advice that Ripple received in 2012. A reasonable reader would have concluded that Ripple Credits (XRP’s former name) were not actually a security,” according to the aforementioned document.

Ripple is indeed responding to the SEC’s lawsuit, but it is more likely to succeed than Telegram at its time. This conflict seems to show that US regulations need improvement to meet the needs of the growing cryptocurrency market.

XRP’s Price in the Wake of the Wall Street Bets Effect

The Wall Street Bets effect has recently contributed to the benefit of Ripple, which led XRP to rise to USD 0.4926, achieving a profit of 52.86%. After that, there was a rapid correction of the price of XRP as a result of profit-taking. However, excitement seems to continue, and there are no obvious signs of exhaustion.

Although the pumping of XRP’s price seems somewhat artificial, the money is there to stay until further notice. People only need to observe the behavior of the price to become aware of what could happen next.

By Alexander Salazar

The price pumping that Reddit group WallStreetBets has done is now benefiting Ripple. Even though the price of XRP is gathering momentum and shows no signs of exhaustion, it could soon undergo a correction.

The volatility in the markets emerging as a consequence of Wall Street Bets ideas recently benefited Ripple. The cryptocurrency of this network, XRP, reached a price of USD 0.4926, achieving a profit of 52.86% in just 24 hours.

Users in the Reddit group WallStreetBets have already helped to drive the prices of GameStop and Dogecoin. A few days ago, Ripple and Stellar benefited after this group also decided to pump their prices.

However, Wall Street Bets is not the forum that has caused Ripple’s price volatility. Those responsible for this are the users of the Reddit group Satoshistreetbets, who focus on the cryptocurrency ecosystem. This forum already has more than 200,000 users and has achieved great power of influence over the market.

The Euphoria about XRP Dramatically Increases the Number of Tweets

The price pumping went from DOGE to XRP, driving the latter’s price up as much as 86% in a matter of hours. After it was worth USD 0.28, it reached a daily peak of USD 0.51.

Given that Twitter users also showed their euphoria about that cryptocurrency, the number of tweets about it rose dramatically.

There was a rapid correction of Ripple’s price as a result of profit-taking. However, excitement seems to remain and there are no obvious signs of exhaustion.

It Seems that Ripple’s Price Has Just Started to Rise

Ripple has been facing severe legal problems in recent months, so many people wonder if the Wall Street Bets effect will spread. What happened in the case of GameStop, whose value skyrocketed on the US stock market, led to the creation of replicas.

A pumping of the crypto asset’s price is somewhat artificial, but the money is still there to stay until further notice. People only have to observe the price action and become aware of what might happen next.

Even though many believe that the pumping magically happens anywhere, the daily chart indicates that the momentum started at a very good point. The momentum confirmed an inverted shoulder-head-shoulder formation that had already been warning of a possible change in the trend.

Ripple’s price is currently gathering momentum and, although it shows no signs of exhaustion, it could soon initiate a correction. After the pullback, the odds are that the crypto asset will continue to be bullish, at least for the short term.

Status of the SEC’s Case against Ripple

The SEC argued in a lawsuit against Ripple that the company had illegally sold USD 1.3 billion worth of XRP for seven years. The regulatory agency also alleged that they had been promoting the token and paying for third-party support and advertising.

In recent days, Ripple responded to each of the SEC’s arguments in a 93-page document. The company said that XRP is not a security but a useful virtual currency.

Ripple mentioned the agreement that they reached with the US Department of Justice and the Financial Crimes Enforcement Network (FinCEN) in 2015. They registered XRP as a convertible virtual currency, which allowed trading in secondary markets.

By Alexander Salazar

India is reconsidering banning the use of private cryptocurrencies like Bitcoin. Furthermore, they are planning the creation of a central bank digital currency (CBDC).

In recent days, the Indian government said that it is reconsidering banning cryptocurrencies like Bitcoin in that Asian country. In this sense, the Ministry of Finance has initiated a series of consultations about the subject.

The reports reveal that India is seeking to introduce a law to reconsider banning decentralized cryptocurrencies. The government considers that a legal framework is more effective than just a circular from the Reserve Bank of India (RBI).

According to the agenda that the Lower House posted on its website, they seek to establish a framework for creating a CBDC. That legislation seeks to “ban all cryptocurrencies in India, but allows exceptions that promote blockchain technology and its uses.”

India Proposes Banning Decentralized Cryptocurrencies

The Indian government introduced the cryptocurrency bill entitled “The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.” They included it for consideration in the Lok Sabha parliamentary session, the Lower House of the Indian Parliament.

They seek to create a legal framework for a digital currency that the Reserve Bank of India (RBI) would issue. However, its main objective is to ban the use of all decentralized cryptocurrencies.

Parliament’s budget session began on January 29^th and will end on April 8^th. That group of official meetings will have a recess between February 15^th and March 8^th.

According to the local newspaper The Economic Times, “the Ministry of Finance has moved a note for an inter-ministerial consultation.” A senior government official said that they will send the note to the cabinet after the consultations and from there to Parliament.

Measures that Are Nothing New

In 2018, a series of frauds occurred in India, so these measures are not new in the country. At that time, the Central Bank of India prevented transactions with cryptocurrencies.

The ban brought exchanges to the Supreme Court, where they managed to obtain a favorable judgment in March 2020. Interestingly, after the lifting of the ban, the number of transactions increased by 450%. TechSci Research reported that this took place in just two months, demonstrating Indians’ interest in cryptocurrencies.

The government introduced the document entitled “Banning of Cryptocurrency and Regulation of the Official Digital Currency Law 2019” last year. They propose a penalty of up to 10 years in prison for offenders, in addition to fines for those who trade with digital currencies.

Reactions of the Crypto Community to the Government’s Decision

The government’s decision has caused many reactions of disagreement in the Indian crypto community. One Twitter user wrote that the ban on cryptocurrencies is “insane”. Another thinks that the RBI should not ban the use of Bitcoin.

The founder of the Indian cryptocurrency exchange WazirX, Nischal Shetty, said that “it looks like a hasty move.” He added that he hopes that “this is a precursor to positive crypto rules.”

Morgan Creek Digital co-founder Anthony Pompliano said that “Bitcoin adoption in India is about to explode.” He believes that “the network does not care about the arbitrary rules of misinformed elites.”

In this sense, Pompliano gave as an example that “the government of Pakistan tried to ban Bitcoin, but adoption increased, rather than decreased.” He believes that “India is about to conduct the best Bitcoin marketing campaign for its many millions of citizens.”

By Alexander Salazar