Bitcoin is undergoing a short-term bearish trend, defined by the declining highs of the last month. Technical analysts believe that the medium-term outlook continues to be bullish for the pioneering cryptocurrency.

Bitcoin (BTC) is trading at around USD 49,504 and has accumulated a profit of 2% in the last 24 hours. Despite that, its recent behavior suggests a consolidation in the short-term support at USD 46,000 while resistance remains between USD 53,000 and USD 56,000.

Meanwhile, Ether (ETH) is trading at around USD 4,058 and accumulated a profit of 0.7% in the last 24 hours. Other altcoins with the highest market capitalization trading lower include Polkadot (DOT), XRP, Solana (SOL), and Cardano (ADA).

Analysts Consider the Medium-Term Outlook of Bitcoin Is Bullish

The pioneering cryptocurrency is showing a short-term downward trend, which the declining highs of the last month have defined. Market analyst Craig Erlam noted that the next test is around USD 53,500 if it stays above USD 50,000. He explained that a move above that level would leave it in a much stronger position, marking the end of the correction.

However, analysts are optimistic since technical indicators seem oversold and altcoins show some signs of a rebound. In the case of Ether, it has lost around 10% during the recent market correction. Meanwhile, the total capitalization of the crypto market is still around USD 2.36 trillion.

The fear gripping the financial markets in recent weeks has affected the interest in cryptocurrencies. The slowdown in the US economy and fears of the COVID-19 Omicron variant are the primary reasons for that situation. Experts say that Bitcoin has behaved more like a risk value than a safe haven, causing it to fall alongside altcoins.

Technical analysts consider that the medium-term outlook is still bullish for the first cryptocurrency in the market. However, a survey that financial firm Natixis conducted among 500 institutional investors indicates that this type of investment is the leading candidate for a significant correction. The participants in the study included four central banks, over 20 sovereign wealth funds, and more than 150 corporate pension plans.

The Prediction by Robert Kiyosaki about Bitcoin

Robert Kiyosaki, the author of Rich Dad Poor Dad, warned investors to prepare for a sharp market crash. The finance guru stated that this is the best time to become rich, but nobody knows when it will end.

He predicted a possible global economic crisis in which the price of gold, silver, Bitcoin, and property would plummet. When he told his Twitter followers to invest in those assets, investor Michael Burry warned that speculation had reached all-time highs.

The inflation levels in the valuation of companies are outpacing those of the dot-com bubble. The owner of the Scion Asset Management fund expressed concern about the crisis.

Renowned investor Jeremy Grantham commented that nobody had seen anything like this before. The co-founder of GMO explained that a 6.2% rise in the consumer price index would have been enough to bring the market down in 1925.

In the case of Kiyosaki, he knows that Bitcoin is going through a correction from which it will eventually recover. It is a matter of time before its price reaches and exceeds its previous all-time highs.

By Alexander Salazar

The two-year-old LUNA token is the only cryptocurrency that caused surprise by surpassing DOGE, SHIB, and Avalanche. The developers burn coins to reduce the supply and the working capital to 1 billion units.

The leading cryptocurrencies on the market recently suffered a significant correction in their prices, which fell by almost 20%. Altcoins like Binance Coin, Solana, Cardano, and XRP followed Bitcoin in the crash.

LUNA, the native token of the Terra blockchain, is the only cryptocurrency that caused surprise. The two-year-old asset has already entered the top 10, surpassing Dogecoin, Shiba Inu, and Avalanche.

Terra token LUNA has remained at excellent levels and recently gained more than 10%. It has also ensured a value going from USD 0.65 in January to above USD 60 in the last week.

Amid the crash of cryptocurrencies, LUNA brought 30% gains to its investors and reached a new all-time high of USD 72. In early August, the crypto asset was trading below USD 12 and generated 500% of profits in a matter of months.

They Burn Coins to Prevent Price Drops

The team behind the project developed a system to burn coins to prevent the price from dropping. The Terra blockchain aims at creating a better digital financial system outside of financial institutions and FinTechs.

LUNA, the official cryptocurrency of the Terra ecosystem, is currently trading at around USD 70. However, on the blockchain, there are also stablecoins, which always maintain the same value as USD 1 and are not volatile.

The most popular cryptocurrency in the project is TerraUSD (UST), which precedes other stablecoins like TerraSDR (SDT), TerraKRW (KRT), and TerraMNT (MNT). All those cryptocurrencies are decentralized, as they do not depend on any government or traditional financial entity.

Investors Buy Stablecoins Having Parity with the US Dollar

The fees (called gas) for operating on Terra are lower than those of other networks like Ethereum. During a cryptocurrency market crash, investors may choose between not selling and enduring the decline. They may also purchase stablecoins having parity with the US dollar to invest in other volatile assets. Besides, they may take advantage of their low price or sell all their investments for fear that the decline will continue.

LUNA token holders decided to take refuge in UST, the primary stablecoin of the project. That cryptocurrency has one-to-one parity with the US dollar and always maintains its value.

When investors bought UST with their LUNA tokens, the developers burned LUNA to reduce the supply and the working capital. In that way, they stabilized and raised the value of the cryptocurrency, becoming the only asset whose price rose during the crash.

As the protocol burns LUNA coins, the UST stablecoin will maintain its stability and one-to-one parity with the US dollar. According to CoinMarketCap, Terra has a supply of 1 billion tokens, which it cannot exceed. If it happens, LUNA burns until returning to the balanced supply level.

The protocol has burned around USD 4 billion worth of LUNA, and the circulating supply is around 383,509,658 units.

LUNA is currently trading at around USD 61.66 and has accumulated a 2.9% profit in the last few hours. Its trading volume is above USD 1.54 billion, and its market capitalization is about USD 23.12 billion, according to CoinGecko.

By Alexander Salazar

CEOs of several companies recently appeared before Congress. The main requirement of companies is to demand better and clear regulations for cryptocurrencies.

Companies in the bitcoin (BTC) and cryptocurrencies environment based in the United States of America continue the fight to achieve an optimal regulatory ecosystem to operate. In this case, some of the most relevant companies in the sector managed to invest at least USD 5 million in lobbying to pressure, in a certain way, the creation of a regulatory framework.

In a report revealed this December 10 by The Economist on the recent political movements that crypto-asset companies have been exercising, companies such as Coinbase and Block have targeted funds to political campaigns and boost initiatives in the United States Congress.

This information gets closely related to what happened on December 8. That day, CEOs of six companies in the Bitcoin industry revealed before Congress their demands for a clear regulatory framework in the field of cryptocurrencies.

On the other hand, the United States of America does not have a developed legal framework for cryptocurrencies. Many crypto-asset products have been approved already, including the first bitcoin futures exchange-traded funds. However, there is still no legal framework that could change the current laws that rule the system.

This road ahead pushed companies to increase their investment and start moving influence. The Economist reported that the money used for lobbying quadrupled in size compared to the fourth quarter of 2020.

According to Regulators, America is not China

One of the possible fears of companies is that the United States of America could go the way of China and veto Bitcoin from the country. Early in October of this year, the president of the SEC, the entity in charge of regulating the trade of financial products, clarified that the country would not prohibit the use of bitcoin and other crypto-assets.

While this is the position of the SEC chairman, the lack of a firm regulatory framework has led companies to travel through a path full of uncertainties.

Months ago, Coinbase received lawsuit threats from the SEC, following the launch of “Lend,” a cryptocurrency credit service. The first reason was that the product qualified as a security, and the company needs an enabling license to offer it.

For his part, Coinbase CEO Brian Armstrong stated via Twitter that before launching Lend, they previously told the SEC about the product through a briefing. The answer they got from the agency is that the loan function was a guarantee.

Armstrong said a loan being a guarantee seemed strange. In that regard, he asked the SEC to help them understand and share his point of view.  These examples show a “push and pull” between companies and regulators.

By: Jenson Nuñez

The proposal got first presented to Congress in 2015. The approved text included the designation of the Central Bank as the supervisor of cryptocurrencies.

After almost six years on the way, the bill to regulate bitcoin and cryptocurrencies in Brazil got finally approved by the Chamber of Deputies of that country. The legal text met a discussion this Wednesday, December 8 at night, as reported by local media.

The approval in the Chamber of Deputies is the first stage of the path that the proposal must endure. Now it must get discussed and approved by the senators of the Brazilian Congress before reaching the Presidency of the Republic to become a legal policy.

The proposal is an ongoing activity, and it also includes the legal definition that virtual assets would have a name that would encompass bitcoin and other cryptocurrencies in Brazil. In the legal framework, virtual assets refer to a digital representation of value that can serve as a way to set up payment or investment in the South American country.

According to the local media outlet Exame, the definition intends to set up differences between cryptocurrencies and other digital assets, such as points or miles from frequent flyer programs, and even the Brazilian CBDC or the digital Real. Last May, the Central Bank of Brazil made public the guidelines that will now rule the development of its own central bank digital currency (CBDC).

The proposal that got approved by the lower house of the Brazilian Congress came to light for the first time in 2015 at the hands of the deputy Aureo Ribeiro. Since then, this proposal faced various changes and administrative delays due to the culmination of the parliamentary term. The election of the new parliament and the quarantine due to COVID-19 also impacted this proposal.

The Project got Approved with Many Reforms

Many modifications added to the text got proposed by Deputy Expedito Netto, the project rapporteur. Among said modifications is the increase in criminal penalties for crimes such as cryptocurrency fraud or even money laundering, an activity that would receive penalties between 3 and 10 years in prison.

On the other hand, it considers appointing a supervisory body for Bitcoin by the Executive. Deputy Netto highlighted to a local media that the Central Bank of Brazil would be leading the supervision of cryptocurrencies.

There are two other projects awaiting discussion and approval of the Brazilian parliament. In August this year, Senator Soraya Thronicke revealed a bill to delimit the competence of government entities in the supervision of transactions with cryptocurrencies, depending on the context in which they would serve.

Another bill came at the beginning of November in the hands of the deputy Luizão Goulart. In this case, the proposal intends to legalize wages payments with Bitcoin. The author of the text explained that the system would be an optional feature for all workers, both in the public and private sectors in Brazil.

By: Jenson Nuñez

DeSantis is now in favor of implementing cryptocurrencies and believes government regulations should use them to invigorate the local economy. Many people are interested in investing in crypto assets, and a part of the business sector already uses them in financial transactions.

There have been different positions on supporting the implementation of Bitcoin as legal tender worldwide. This time, the Governor of Florida, Ron DeSantis, expressed his interest in introducing cryptocurrencies into the local economy.

The state official is willing to support the development of a cryptocurrency-related system of products and payments. They are aware that those assets are an excellent way to conduct transactions without intermediaries.

The State Government Seeks to Legislate the Cryptocurrency Market Positively

Opinions related to the implementation of Bitcoin have emerged in the state of Florida, the United States, on other occasions. For some time, some local officials have tried to adopt the world of cryptocurrencies.

For example, the current mayor of Miami, Francis Suárez, has supported the BTC innovation since early 2021. He considers that paying salaries with cryptocurrencies would represent an economic advantage. Besides that, there would be a higher possibility of attracting investors involved in the sector.

Amid the positions on supporting that ecosystem, the governor of Florida now favors the implementation of cryptocurrencies. DeSantis believes that government regulations should not condemn the use of Bitcoin but be friendly towards it to invigorate the local economy.

The governor of Florida gave that opinion when the mayor of Miami received the go-ahead from Miami-Dade County. They would look to synchronize with the cryptocurrency market to integrate those assets with salary payments, services, and taxes.

The state government joined that scenario to seek a way to legislate the digital asset sector positively. DeSantis commented that they welcome that and want to ensure that the authorities are crypto-friendly.

The Path to Accept Cryptocurrencies in Florida Is Still Uncertain

There have been advances regarding cryptocurrency implementation in Florida, but it is unclear how the state will put the idea into practice. The parties involved have not yet decided how to make the process faster.

Despite that, a growing number of people have expressed their intention to invest in cryptocurrencies. In addition, a fraction of the business sector can now formalize using benefits from Bitcoin regarding financial transactions.

That sector is cautiously waiting until the state takes measures to open the doors to cryptocurrencies.

Besides, accepting them is still a slow process, as the governor of Florida tries to address the situation with the other officials. Regulations continue to be uncertain, and most officials have not become familiar with the new environment.

However, Ron DeSantis expressed his optimism, awaiting the consolidation of relevant legal processes for the regulated approval of Bitcoin and other cryptocurrencies.

The growing relevance of cryptocurrencies has led many governments like that of Florida to consider introducing them into their economies. For example, many Chinese miners operate in the United States, and El Salvador adopted Bitcoin as legal tender.

By Alexander Salazar

The price dropped to the support at USD 2.69 but rapidly rejected the bearish intention. Although there could be a little more volatility to the downside, it would not be of concern if support remains at USD 2.69.

Bitcoin has driven the entire market to the downside, but the CRV token is among those suffering the most. However, it has been rejecting low prices, which might suggest a change in the trend of the crypto asset.

CRV is trading at around USD 3.51 and has accumulated a 1.5% profit in the last hour. Its market capitalization is above USD 203 million, which places it in the 90^th position of the cryptocurrency ranking, according to CoinGecko.

While the prices of the cryptocurrency market were dropping, that protocol was quite active, proving its usability in times of uncertainty. Since December 2^nd, investors have traded more than USD 2.6 billion worth of CRV.

Technical Analysis of the Price of the CRV Token

The daily graph of the CRV token shows that the price quickly dropped to the support at USD 2.69. However, it rapidly rejected the bearish intention.

CRV has strongly recovered from the drop, but there is still no bullish determination indicating that the price will rise in the upcoming hours/days.

At the moment, there might be sales in the short term, but the zone close to USD 3 may prevent the fall. That would open the way to a resumption of the higher trend. A good confirmation that things will be like that is to wait until the price crosses the descending line that it had marked.

Weekly Chart of the CRV Token

Some weeks ago, the bullish rally stopped when the price found resistance at USD 5.78. The CRV token recently created a clear double cap, indicating a possible trend reversal.

However, when attempting to confirm the validity of that figure, the bears did not show much determination. They rejected low prices, talking about the possibility of the drop having hit bottom.

The price of CRV recently found support at USD 3.16, which might be the starting point in its search for new annual highs.

If its price crosses that support, there could be a little more volatility to the downside. However, it would not be anything to worry about as long as support remains at USD 2.69.

The Current Situation of Bitcoin and Ethereum

The market capitalization of ETH is currently about USD 477 billion, equivalent to 52% of that of BTC (USD 915 billion). However, it will still be a matter of time before Ethereum maximalists see it exceed Bitcoin.

Both crypto assets are undergoing a crash, which some experts see as a possible start of a new bullish trend. The same has happened several times when the cryptocurrency market has resumed and exceeded its previous levels.

Bitcoin is trading at around USD 48,434, and Ether is worth USD 4,034. Their trading volumes are above USD 31.3 and USD 27.9, respectively, according to CoinGecko.

By Alexander Salazar