Biden Administration Developing Cryptocurrency Regulation — Treasury to Provide Direction to SEC
Biden Administration in 'Second Inning' of Developing Cryptocurrency Regulation — Treasury to Provide Direction to SEC
The Biden administration is reportedly developing a regulatory framework for the cryptocurrency markets. The new chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, is waiting for direction from the Treasury to establish cryptocurrency regulation.
New Crypto Regulation Being Developed by Biden Administration
Fox Business’ Charlie Gasparino reported Monday that the Biden administration is in what’s been described to him by people close to them as “the early stages of developing a regulatory approach to the crypto markets.” He noted that the number one priority is infrastructure, followed by taxes.
Another area, which he said is being debated within the Biden administration, concerns crypto regulations by the SEC. Last week, MIT crypto professor Gary Gensler was confirmed to lead the commission. He previously served as the chairman of the Commodity Futures Trading Commission (CFTC). Gasparino explained:
SEC Chair Gensler is waiting for some direction from the Treasury for the overall policy of cryptocurrency regulations before he develops a specific regulatory approach for crypto which will likely be the types of enforcement actions he goes after.
He added that Treasury Secretary Janet Yellen is leading the U.S. government’s crypto regulatory efforts and Deputy Secretary of the Treasury Wally Adeyemo is the point man on crypto at the Treasury Department.
Commenting on talks of possible crackdowns, regulations, and outlawing cryptocurrencies, he emphasized: “We don’t know where they’re going with this. We don’t know what exactly is going to happen.”
While acknowledging that some countries are starting to outlaw cryptocurrencies, he said: “I don’t think it’s gonna happen here. Too many American investors are in the space right now.” In his opinion, “crypto is here to stay” and based on the people he has been talking to, the government will not outlaw cryptocurrencies, but he believes that “There will probably be more regulations.”
Furthermore, sources close to the SEC told him that the commission is debating whether to approve a bitcoin exchange-traded fund (ETF). “That’s a huge debate at the commission level between Republican commissioners and the Democrats about this issue,” he said.
“Gensler will throw the Republicans a bone by approving this as a way to sort of curry favor with them over other broader policy goals he wants to do at the SEC,” he continued, noting that some examples are ESG investing and the types of disclosures companies have to do going forward, including political contributions. In conclusion, he described:
What we know for sure is that we are in the second inning, I believe, of the regulatory approach being developed by the Biden administration through the Treasury.
As for the time frame of when these regulations will come to fruition, he expects that it will take at least a month.
Biden Administration in 'Second Inning' of Developing Cryptocurrency Regulation — Treasury to Provide Direction to SEC
The Biden administration is reportedly developing a regulatory framework for the cryptocurrency markets. The new chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, is waiting for direction from the Treasury to establish cryptocurrency regulation.
New Crypto Regulation Being Developed by Biden Administration
Fox Business’ Charlie Gasparino reported Monday that the Biden administration is in what’s been described to him by people close to them as “the early stages of developing a regulatory approach to the crypto markets.” He noted that the number one priority is infrastructure, followed by taxes.
Another area, which he said is being debated within the Biden administration, concerns crypto regulations by the SEC. Last week, MIT crypto professor Gary Gensler was confirmed to lead the commission. He previously served as the chairman of the Commodity Futures Trading Commission (CFTC). Gasparino explained:
SEC Chair Gensler is waiting for some direction from the Treasury for the overall policy of cryptocurrency regulations before he develops a specific regulatory approach for crypto which will likely be the types of enforcement actions he goes after.
He added that Treasury Secretary Janet Yellen is leading the U.S. government’s crypto regulatory efforts and Deputy Secretary of the Treasury Wally Adeyemo is the point man on crypto at the Treasury Department.
Commenting on talks of possible crackdowns, regulations, and outlawing cryptocurrencies, he emphasized: “We don’t know where they’re going with this. We don’t know what exactly is going to happen.”
While acknowledging that some countries are starting to outlaw cryptocurrencies, he said: “I don’t think it’s gonna happen here. Too many American investors are in the space right now.” In his opinion, “crypto is here to stay” and based on the people he has been talking to, the government will not outlaw cryptocurrencies, but he believes that “There will probably be more regulations.”
Furthermore, sources close to the SEC told him that the commission is debating whether to approve a bitcoin exchange-traded fund (ETF). “That’s a huge debate at the commission level between Republican commissioners and the Democrats about this issue,” he said.
“Gensler will throw the Republicans a bone by approving this as a way to sort of curry favor with them over other broader policy goals he wants to do at the SEC,” he continued, noting that some examples are ESG investing and the types of disclosures companies have to do going forward, including political contributions. In conclusion, he described:
What we know for sure is that we are in the second inning, I believe, of the regulatory approach being developed by the Biden administration through the Treasury.
As for the time frame of when these regulations will come to fruition, he expects that it will take at least a month.
China Calls Bitcoin and Stablecoins 'Investment Alternatives' for the First Time Since Crypto Crackdown
After the well-known crypto crackdown launched by the Chinese government four years ago, it seems there is now a change in the tone from the country’s central bank. At least that’s what has been suggested recently by the deputy governor of the People’s Bank of China (PBoC).
Central Bank Clarifies Its Regulatory Framework on Cryptos Will Remain Unchanged
During a panel hosted by CNBC at the Boao Forum for Asia, Li Bo is now naming bitcoin (BTC) with the “investment alternative” term for the first time since the crackdown. However, he made some clarifications on the meaning of his stance towards cryptocurrencies:
We regard Bitcoin and stable coin as crypto assets. These are investment alternatives. They are not a currency per se. And so, the main role we see for crypto assets going forward, the main role is investment alternative.
Such a statement implies an unprecedented change in Beijing’s tone on cryptos, even with experts quoted by CNBC considering these comments as “progressive,” as the country is also paving the way for the forthcoming digital yuan.
Li continued to elaborate on cryptocurrencies as investment alternatives:
Many countries, including China, are still looking into it and thinking about what kind of regulatory requirements. Maybe minimal, but we need to have some kind of regulatory requirement to prevent it. The speculation of such assets to create any serious financial stability risks.
Still, he clarified that the PBoC would keep its regulatory framework on cryptos unchanged.
After the well-known crypto crackdown launched by the Chinese government four years ago, it seems there is now a change in the tone from the country’s central bank. At least that’s what has been suggested recently by the deputy governor of the People’s Bank of China (PBoC).
Central Bank Clarifies Its Regulatory Framework on Cryptos Will Remain Unchanged
During a panel hosted by CNBC at the Boao Forum for Asia, Li Bo is now naming bitcoin (BTC) with the “investment alternative” term for the first time since the crackdown. However, he made some clarifications on the meaning of his stance towards cryptocurrencies:
We regard Bitcoin and stable coin as crypto assets. These are investment alternatives. They are not a currency per se. And so, the main role we see for crypto assets going forward, the main role is investment alternative.
Such a statement implies an unprecedented change in Beijing’s tone on cryptos, even with experts quoted by CNBC considering these comments as “progressive,” as the country is also paving the way for the forthcoming digital yuan.
Li continued to elaborate on cryptocurrencies as investment alternatives:
Many countries, including China, are still looking into it and thinking about what kind of regulatory requirements. Maybe minimal, but we need to have some kind of regulatory requirement to prevent it. The speculation of such assets to create any serious financial stability risks.
Still, he clarified that the PBoC would keep its regulatory framework on cryptos unchanged.
Tether Market Cap Swells Past $50 Billion, USDT Stablecoin Gets Listed on Coinbase Pro
The blockchain stablecoin issuer Tether Operations Limited has recently surpassed a $50 billion market valuation after seeing exponential growth during the last few years. Furthermore, the stablecoin tether has launched on the trading platform Coinbase Pro this week marking the San Francisco-based exchange’s first time supporting the dollar-pegged token.
Tether Market Cap Increases by 170% in 6 Months
The blockchain company has reached a milestone this week as the firm’s dollar-pegged token USDT has surpassed a $50 billion market capitalization. Back in November 2020, Bitcoin.com News reported on how USDT towered over the stablecoin competition, as the market cap grew by 2 million percent in four years. At that time, records had shown tether’s (USDT) market valuation was around $18.5 billion. At $50 billion today, the USDT market valuation increased by 170.27% since November.
Tether Operations Limited says that the skyrocketing market cap stems from a myriad of use cases including spot exchanges leveraging tether and decentralized finance (defi) applications using the stablecoin. Data from Messari.io shows that reported daily volume for tether is around $117 billion and usually reported daily USDT volume is over the $100 billion mark every day. 24 hour “Real Volume” stats from Messari.io indicate that USDT volume could really be around $38.80 billion on April 26. This is still the largest crypto in terms of traded volume on a daily basis, in comparison to top crypto assets like ETH and BTC.
“Crossing a market cap of US$50 billion represents an incredibly important milestone for Tether,” Paolo Ardoino, the CTO at Tether explained after reaching the $50 billion market cap milestone. “When the group of visionaries that created Tether in 2014 first launched the stablecoin they could not have dreamt that it would have grown so exponentially. Tether’s success is a blueprint for a Central Bank Digital Currency (CBDC) and a banking system of the future. We are truly humbled by the pivotal role that Tether now plays in the digital token ecosystem across myriad protocols and applications.”
Coinbase Pro Starts to List Tether Trading Pairs in Phases, Stablecoin Is Not Supported on Coinbase.com Yet
When tether (USDT) first came out, the stablecoin was issued via the Bitcoin (BTC) network by using the Omni Layer Protocol. Since then, the token has branched off into multiple blockchains and USDT has been issued on blockchain networks like Ethereum, Solana, Tron, Bitcoin Cash, EOS, Liquid, and Algorand. Moreover, tether’s ERC20 version is leveraged on various defi applications and decentralized exchange (dex) platforms. USDT is used on a myriad of centralized spot exchanges all across the globe and just recently the token was added to Coinbase Pro.
“Starting immediately,” Coinbase said. “We will begin accepting inbound transfers of USDT to Coinbase Pro. Trading will begin on or after 6 p.m. Pacific Time (PT) Monday, April 26, if liquidity conditions are met. Please note that Coinbase only supports ERC20 USDT.”
If everything works out and a sufficient supply of USDT is established on the Coinbase platform, the exchange will offer tether pairs in BTC, ETH, EUR, GBP, USD, and USDC. But if there is not enough liquidity for one pair, the pairing may get removed. Coinbase says that it will announce each tether pair listing in phases and USDT will not be available yet on Coinbase.com.
“We will make a separate announcement if and when this support is added,” the San Francisco exchange’s announcement concludes.
The blockchain stablecoin issuer Tether Operations Limited has recently surpassed a $50 billion market valuation after seeing exponential growth during the last few years. Furthermore, the stablecoin tether has launched on the trading platform Coinbase Pro this week marking the San Francisco-based exchange’s first time supporting the dollar-pegged token.
Tether Market Cap Increases by 170% in 6 Months
The blockchain company has reached a milestone this week as the firm’s dollar-pegged token USDT has surpassed a $50 billion market capitalization. Back in November 2020, Bitcoin.com News reported on how USDT towered over the stablecoin competition, as the market cap grew by 2 million percent in four years. At that time, records had shown tether’s (USDT) market valuation was around $18.5 billion. At $50 billion today, the USDT market valuation increased by 170.27% since November.
Tether Operations Limited says that the skyrocketing market cap stems from a myriad of use cases including spot exchanges leveraging tether and decentralized finance (defi) applications using the stablecoin. Data from Messari.io shows that reported daily volume for tether is around $117 billion and usually reported daily USDT volume is over the $100 billion mark every day. 24 hour “Real Volume” stats from Messari.io indicate that USDT volume could really be around $38.80 billion on April 26. This is still the largest crypto in terms of traded volume on a daily basis, in comparison to top crypto assets like ETH and BTC.
“Crossing a market cap of US$50 billion represents an incredibly important milestone for Tether,” Paolo Ardoino, the CTO at Tether explained after reaching the $50 billion market cap milestone. “When the group of visionaries that created Tether in 2014 first launched the stablecoin they could not have dreamt that it would have grown so exponentially. Tether’s success is a blueprint for a Central Bank Digital Currency (CBDC) and a banking system of the future. We are truly humbled by the pivotal role that Tether now plays in the digital token ecosystem across myriad protocols and applications.”
Coinbase Pro Starts to List Tether Trading Pairs in Phases, Stablecoin Is Not Supported on Coinbase.com Yet
When tether (USDT) first came out, the stablecoin was issued via the Bitcoin (BTC) network by using the Omni Layer Protocol. Since then, the token has branched off into multiple blockchains and USDT has been issued on blockchain networks like Ethereum, Solana, Tron, Bitcoin Cash, EOS, Liquid, and Algorand. Moreover, tether’s ERC20 version is leveraged on various defi applications and decentralized exchange (dex) platforms. USDT is used on a myriad of centralized spot exchanges all across the globe and just recently the token was added to Coinbase Pro.
“Starting immediately,” Coinbase said. “We will begin accepting inbound transfers of USDT to Coinbase Pro. Trading will begin on or after 6 p.m. Pacific Time (PT) Monday, April 26, if liquidity conditions are met. Please note that Coinbase only supports ERC20 USDT.”
If everything works out and a sufficient supply of USDT is established on the Coinbase platform, the exchange will offer tether pairs in BTC, ETH, EUR, GBP, USD, and USDC. But if there is not enough liquidity for one pair, the pairing may get removed. Coinbase says that it will announce each tether pair listing in phases and USDT will not be available yet on Coinbase.com.
“We will make a separate announcement if and when this support is added,” the San Francisco exchange’s announcement concludes.
3 reasons why Bitcoin is on shaky ground after failing to retake $60K
Altcoins are outsmarting Bitcoin bulls, and on-chain indicators aren’t as green as they have been — are further support tests inbound?
Bitcoin (BTC) is back testing lower levels after failing to conquer $60,000 resistance — and indicators suggest the downturn is not over.
BTC/USD bounced off $55,000 overnight on Monday, hours after hitting local highs of nearly $59,000 in bullish early trading.
With sellers still in place closer to all-time highs of $64,500, the largest cryptocurrency has a lot of work to do to exit its current broad trading range.
BTC moves back to exchanges
One metric that may soon be causing problems for bulls is the overall BTC balance on cryptocurrency exchanges.
While seeing a general steep downtrend throughout the past year, local spikes in supply — when traders send coins back to their exchange accounts for potential quick sale — tend to reflect a more selling-driven mentality entering.
This is not the case for every exchange this week. According to data from monitoring resource Bybt, 16,222 BTC has entered global leader Binance in the past seven days. By contrast, institutional platform Coinbase Pro has actually lost 11,947 BTC, conforming to the overall trend.
Yet Binance is not alone — OKEx, Huobi, Bitfinex and Kraken have all seen their BTC balances tick up in the last 24 hours.
The greed is rising
As Cointelegraph reported, a familiar face from sentiment changes past is back this week — greed.
Tracked by the Crypto Fear & Greed Index, which measures trader sentiment using a basket of weighted factors, appetite for a sell-off is rising, even as price action is no longer positive.
On Tuesday, the Index gave an overall crypto market score of 68/100, corresponding to “greed” being the overall mood driver.
Crypto Fear and Greed Index
This is still below its mid-90s peak seen earlier in the year — a level that almost guarantees a sell-off — but volatility ensures that the ndex does not stay in the same zone for long. “Greed” can turn to “extreme greed” or “extreme fear” within days or even faster.
On April 27, for instance, the Index measured just 27/100.
Altcoins are outsmarting Bitcoin bulls, and on-chain indicators aren’t as green as they have been — are further support tests inbound?
Bitcoin (BTC) is back testing lower levels after failing to conquer $60,000 resistance — and indicators suggest the downturn is not over.
BTC/USD bounced off $55,000 overnight on Monday, hours after hitting local highs of nearly $59,000 in bullish early trading.
With sellers still in place closer to all-time highs of $64,500, the largest cryptocurrency has a lot of work to do to exit its current broad trading range.
BTC moves back to exchanges
One metric that may soon be causing problems for bulls is the overall BTC balance on cryptocurrency exchanges.
While seeing a general steep downtrend throughout the past year, local spikes in supply — when traders send coins back to their exchange accounts for potential quick sale — tend to reflect a more selling-driven mentality entering.
This is not the case for every exchange this week. According to data from monitoring resource Bybt, 16,222 BTC has entered global leader Binance in the past seven days. By contrast, institutional platform Coinbase Pro has actually lost 11,947 BTC, conforming to the overall trend.
Yet Binance is not alone — OKEx, Huobi, Bitfinex and Kraken have all seen their BTC balances tick up in the last 24 hours.
The greed is rising
As Cointelegraph reported, a familiar face from sentiment changes past is back this week — greed.
Tracked by the Crypto Fear & Greed Index, which measures trader sentiment using a basket of weighted factors, appetite for a sell-off is rising, even as price action is no longer positive.
On Tuesday, the Index gave an overall crypto market score of 68/100, corresponding to “greed” being the overall mood driver.
Crypto Fear and Greed Index
This is still below its mid-90s peak seen earlier in the year — a level that almost guarantees a sell-off — but volatility ensures that the ndex does not stay in the same zone for long. “Greed” can turn to “extreme greed” or “extreme fear” within days or even faster.
On April 27, for instance, the Index measured just 27/100.
Bitcoin Depot Deploys Over 350 ATMs in the US, Global Number Exceeds 19,000
Cryptocurrency ATM operator Bitcoin Depot has launched 355 new teller machines across the United States. The announcement comes as the number of ATM locations supporting crypto-fiat exchange now exceeds 19,000 globally.
US Company Bitcoin Depot Expands ATM Coverage in 40 States
Bitcoin Depot, which runs a growing network of crypto teller machines in the U.S., has added 355 new kiosks only in the past month. In March, it announced the launch of 115. Its ATMs allow registered users with a wallet to acquire cryptocurrency. For amounts of less than $250, providing a phone number will be enough for identity verification.
The Atlanta-based company says it has installed over 2,500 crypto ATMs worldwide, most of which are in the U.S. The latest batch of 355 machines has been deployed in 40 U.S. states, 20 of which are in its home state of Georgia, 40 in Florida, 32 across North Carolina, 24 in Texas, and 23 new kiosks across California. Most locations are open 24/7.
In just six months, Bitcoin Depot has doubled its footprint and now expects growth to reach 200% this year, a press release details. Its kiosks support purchases and sales of three different cryptocurrencies with fiat: BTC, LTC and ETH.
Bitcoin Depot President and CEO Brandon Mintz believe that cryptocurrency provides new opportunities for people who don’t have access to traditional financial services: “Our kiosks allow them to essentially self-bank through the digital wallet on their phone, by turning their cash into cryptocurrency which can be used to transfer money, pay bills or invest.”
''19,000 ATMs Around the World Offer Access to Cryptocurrencies''
Many other companies work in the same direction globally and BATMs have increased exponentially over the past year. According to data compiled by the tracking website Coinatmradar, there are now over 19,300 ATMs and tellers providing crypto-fiat exchange services in 73 countries, almost double the number registered in September 2020.
The teller machines are installed and operated by close to 600 companies and manufactured by at least 40 producers. BTC, BCH, ETH, and LTC are among the most widely supported cryptocurrencies. Coinatmradar’s bitcoin ATM market dynamics report published in April reveals that the speed of installations maintained a stable rise, between 8% and 10%, during the previous monthly period.
Cryptocurrency ATM operator Bitcoin Depot has launched 355 new teller machines across the United States. The announcement comes as the number of ATM locations supporting crypto-fiat exchange now exceeds 19,000 globally.
US Company Bitcoin Depot Expands ATM Coverage in 40 States
Bitcoin Depot, which runs a growing network of crypto teller machines in the U.S., has added 355 new kiosks only in the past month. In March, it announced the launch of 115. Its ATMs allow registered users with a wallet to acquire cryptocurrency. For amounts of less than $250, providing a phone number will be enough for identity verification.
The Atlanta-based company says it has installed over 2,500 crypto ATMs worldwide, most of which are in the U.S. The latest batch of 355 machines has been deployed in 40 U.S. states, 20 of which are in its home state of Georgia, 40 in Florida, 32 across North Carolina, 24 in Texas, and 23 new kiosks across California. Most locations are open 24/7.
In just six months, Bitcoin Depot has doubled its footprint and now expects growth to reach 200% this year, a press release details. Its kiosks support purchases and sales of three different cryptocurrencies with fiat: BTC, LTC and ETH.
Bitcoin Depot President and CEO Brandon Mintz believe that cryptocurrency provides new opportunities for people who don’t have access to traditional financial services: “Our kiosks allow them to essentially self-bank through the digital wallet on their phone, by turning their cash into cryptocurrency which can be used to transfer money, pay bills or invest.”
''19,000 ATMs Around the World Offer Access to Cryptocurrencies''
Many other companies work in the same direction globally and BATMs have increased exponentially over the past year. According to data compiled by the tracking website Coinatmradar, there are now over 19,300 ATMs and tellers providing crypto-fiat exchange services in 73 countries, almost double the number registered in September 2020.
The teller machines are installed and operated by close to 600 companies and manufactured by at least 40 producers. BTC, BCH, ETH, and LTC are among the most widely supported cryptocurrencies. Coinatmradar’s bitcoin ATM market dynamics report published in April reveals that the speed of installations maintained a stable rise, between 8% and 10%, during the previous monthly period.
E-Commerce Giant Mercadolibre Buys Bitcoins Worth $7.8 Million for Treasury
Mercadolibre Inc., Latin America’s leading e-commerce company with almost 70 million users on its marketplace, has bought bitcoins worth almost $8 million for its treasury. With this move, the company has joined a growing list of corporations with cryptocurrency on their balance sheets.
Mercadolibre Holds Bitcoin on Balance Sheet
Mercadolibre Inc. reported its first-quarter financial results Wednesday declaring that the company is holding bitcoin on its balance sheet.
An Argentine company incorporated in the U.S. that operates online marketplaces dedicated to e-commerce and auctions, Mercadolibre is listed on Nasdaq under the ticker symbol MELI. As of Wednesday, its market cap was $76.3 billion.
The company’s filing with the U.S. Securities and Exchange Commission (SEC) states:
As part of our treasury strategy this quarter we purchased $7.8 million in bitcoin, a digital asset that we are disclosing within our indefinite-lived intangible assets.
Last week, the Latin American e-commerce giant announced that its customers could buy real estate with bitcoin.
In its Q1 earnings report, Mercadolibre revealed that its net revenues for the first quarter were $1.4 billion, a year-over-year increase of 111.4% in USD and 158.4% on an FX neutral basis. However, overall its net loss was $34 million. As a company operating out of Argentina, Mercadolibre also incurred foreign currency losses worth $15.1 million.
The company says its unique active users grew by 61.6% year-over-year, reaching 69.8 million. Its gross merchandise volume grew to $6.1 billion and successful items sold reached 222 million. In addition, live listings offered on Mercadolibre’s marketplace reached 299.5 million.
With this bitcoin buy, the e-commerce giant joins a growing list of companies that have chosen to add BTC to their balance sheets, including Elon Musk’s Tesla, Jack Dorsey’s Square, and Microstrategy.
Mercadolibre Inc., Latin America’s leading e-commerce company with almost 70 million users on its marketplace, has bought bitcoins worth almost $8 million for its treasury. With this move, the company has joined a growing list of corporations with cryptocurrency on their balance sheets.
Mercadolibre Holds Bitcoin on Balance Sheet
Mercadolibre Inc. reported its first-quarter financial results Wednesday declaring that the company is holding bitcoin on its balance sheet.
An Argentine company incorporated in the U.S. that operates online marketplaces dedicated to e-commerce and auctions, Mercadolibre is listed on Nasdaq under the ticker symbol MELI. As of Wednesday, its market cap was $76.3 billion.
The company’s filing with the U.S. Securities and Exchange Commission (SEC) states:
As part of our treasury strategy this quarter we purchased $7.8 million in bitcoin, a digital asset that we are disclosing within our indefinite-lived intangible assets.
Last week, the Latin American e-commerce giant announced that its customers could buy real estate with bitcoin.
In its Q1 earnings report, Mercadolibre revealed that its net revenues for the first quarter were $1.4 billion, a year-over-year increase of 111.4% in USD and 158.4% on an FX neutral basis. However, overall its net loss was $34 million. As a company operating out of Argentina, Mercadolibre also incurred foreign currency losses worth $15.1 million.
The company says its unique active users grew by 61.6% year-over-year, reaching 69.8 million. Its gross merchandise volume grew to $6.1 billion and successful items sold reached 222 million. In addition, live listings offered on Mercadolibre’s marketplace reached 299.5 million.
With this bitcoin buy, the e-commerce giant joins a growing list of companies that have chosen to add BTC to their balance sheets, including Elon Musk’s Tesla, Jack Dorsey’s Square, and Microstrategy.
Elon Musk Sees Dogecoin as 'Stimulus for People Kicked by Pandemic' but Says 'Please Invest With Caution'
SpaceX and Tesla CEO Elon Musk sees dogecoin as his “private stimulus for the people” that represents “legit hope for people” hit by the coronavirus pandemic. While the price of dogecoin has been pumping alongside a number of other cryptocurrencies, Musk cautioned, “Cryptocurrency is promising, but please invest with caution.”
Elon Musk Sees Dogecoin as His Stimulus for the People
Elon Musk has been tweeting about dogecoin and cryptocurrency investing leading up to him hosting Saturday Night Live (SNL) on May 8 with Miley Cyrus as the musical guest.
Responding to a tweet on Friday suggesting that “Dogecoin was in a way Elon’s private stimulus for the people,” Musk said, “That’s how I feel about it.” The tweet includes an image of a sign that says, “Dogecoin represents legit hope for people kicked by the pandemic. Change my mind.”
Dogecoin’s price is currently $0.7172 at the time of writing; its market cap is $92.88 billion. The meme coin’s price has increased more than 98% this month and almost 7,000% since the beginning of the year.
As investors pile into dogecoin ahead of Musk’s SNL, the Tesla technoking tweeted Thursday night:
Cryptocurrency is promising, but please invest with caution.
His tweet included a video posted by TMZ back in February of him talking to reporters about dogecoin and cryptocurrency investing. In the video, Musk was asked whether dogecoin “can really be the next currency for the world.” He replied, “I think it should be the will of the people.”
He was then reminded of some problems with dogecoin that do not exist with bitcoin, such as its unlimited supply. Musk proceeded to caution investors. “First of all, I think people should not invest their life savings in cryptocurrency,” he warned. While stating that people could invest in cryptocurrencies if they want to speculate and have the resources to do so, the Tesla CEO reiterated:
Don’t take too much risk on crypto.
SpaceX and Tesla CEO Elon Musk sees dogecoin as his “private stimulus for the people” that represents “legit hope for people” hit by the coronavirus pandemic. While the price of dogecoin has been pumping alongside a number of other cryptocurrencies, Musk cautioned, “Cryptocurrency is promising, but please invest with caution.”
Elon Musk Sees Dogecoin as His Stimulus for the People
Elon Musk has been tweeting about dogecoin and cryptocurrency investing leading up to him hosting Saturday Night Live (SNL) on May 8 with Miley Cyrus as the musical guest.
Responding to a tweet on Friday suggesting that “Dogecoin was in a way Elon’s private stimulus for the people,” Musk said, “That’s how I feel about it.” The tweet includes an image of a sign that says, “Dogecoin represents legit hope for people kicked by the pandemic. Change my mind.”
Dogecoin’s price is currently $0.7172 at the time of writing; its market cap is $92.88 billion. The meme coin’s price has increased more than 98% this month and almost 7,000% since the beginning of the year.
As investors pile into dogecoin ahead of Musk’s SNL, the Tesla technoking tweeted Thursday night:
Cryptocurrency is promising, but please invest with caution.
His tweet included a video posted by TMZ back in February of him talking to reporters about dogecoin and cryptocurrency investing. In the video, Musk was asked whether dogecoin “can really be the next currency for the world.” He replied, “I think it should be the will of the people.”
He was then reminded of some problems with dogecoin that do not exist with bitcoin, such as its unlimited supply. Musk proceeded to caution investors. “First of all, I think people should not invest their life savings in cryptocurrency,” he warned. While stating that people could invest in cryptocurrencies if they want to speculate and have the resources to do so, the Tesla CEO reiterated:
Don’t take too much risk on crypto.
Bitcoin: What You Should Watch This Week
Bitcoin is still stuck in a predictable range below Binance Coin, Cardano, Litecoin and Chainlink have formed bullish patterns suggesting further upside in them.
Over the past week, several traders bought Dogecoin (DOGE) leading up to Elon Musk’s Saturday Night Live appearance as they expected a pump. However, the mention of Dogecoin during the monologue by Musk did not produce the rally traders were looking for and professional traders may have dumped their positions on novice traders who were expecting a breakout.
Dogecoin dumped to an intraday low at $0.41 today, losing over 34% from the previous day’s close. Since then, the meme coin has been trying to stage a recovery and has risen to $0.54. The sharp fall in Dogecoin price shows that buying the hype, without any major fundamental reason, could result in stomach-churning volatility.
On the other hand, Ether (ETH) extended its up-move further, faltering just below $4,000, while Bitcoin (BTC) again fell short of the $60,000 mark, indicating strong selling on every minor rally. A few days of range-bound action in Bitcoin is a positive sign as it may set the stage for the next leg of the uptrend.
With Ether leading the altcoin charge, let’s look at why Bitcoin and USDT may outperform in the short term.
BTC/USDT
Bitcoin broke above the downtrend line on May 8 but the bulls are finding it difficult to clear the hurdle at $58,966.53. The immediate support on the downside is at the moving averages. If the price rebounds off the 20-day exponential moving average ($56,387), the bulls will make one more attempt to push the price above $58,966.53.
If they succeed, the BTC/USDT pair could start its journey toward the resistance line of the ascending channel at $67,000. The price has turned down from the resistance line on two previous occasions, hence the bears will again try to defend this level. The momentum will pick up after the buyers push the price above the channel.
However, the flattish moving averages and the relative strength index close to the midpoint show a lack of bullish momentum. If the bears pull the price below the 20-day EMA, the pair could drop to $52,323.21.
A strong rebound off this level will suggest buying at lower levels and that could result in a range-bound action between $52,323.21 and $58,966.53 for a few days.
On the other contrary, a break below $52,323.21 may open the doors for a fall to the support line of the ascending channel and then to $46,985 where buyers may step in to arrest the decline.
Bitcoin is still stuck in a predictable range below Binance Coin, Cardano, Litecoin and Chainlink have formed bullish patterns suggesting further upside in them.
Over the past week, several traders bought Dogecoin (DOGE) leading up to Elon Musk’s Saturday Night Live appearance as they expected a pump. However, the mention of Dogecoin during the monologue by Musk did not produce the rally traders were looking for and professional traders may have dumped their positions on novice traders who were expecting a breakout.
Dogecoin dumped to an intraday low at $0.41 today, losing over 34% from the previous day’s close. Since then, the meme coin has been trying to stage a recovery and has risen to $0.54. The sharp fall in Dogecoin price shows that buying the hype, without any major fundamental reason, could result in stomach-churning volatility.
On the other hand, Ether (ETH) extended its up-move further, faltering just below $4,000, while Bitcoin (BTC) again fell short of the $60,000 mark, indicating strong selling on every minor rally. A few days of range-bound action in Bitcoin is a positive sign as it may set the stage for the next leg of the uptrend.
With Ether leading the altcoin charge, let’s look at why Bitcoin and USDT may outperform in the short term.
BTC/USDT
Bitcoin broke above the downtrend line on May 8 but the bulls are finding it difficult to clear the hurdle at $58,966.53. The immediate support on the downside is at the moving averages. If the price rebounds off the 20-day exponential moving average ($56,387), the bulls will make one more attempt to push the price above $58,966.53.
If they succeed, the BTC/USDT pair could start its journey toward the resistance line of the ascending channel at $67,000. The price has turned down from the resistance line on two previous occasions, hence the bears will again try to defend this level. The momentum will pick up after the buyers push the price above the channel.
However, the flattish moving averages and the relative strength index close to the midpoint show a lack of bullish momentum. If the bears pull the price below the 20-day EMA, the pair could drop to $52,323.21.
A strong rebound off this level will suggest buying at lower levels and that could result in a range-bound action between $52,323.21 and $58,966.53 for a few days.
On the other contrary, a break below $52,323.21 may open the doors for a fall to the support line of the ascending channel and then to $46,985 where buyers may step in to arrest the decline.
The 4-hour chart shows the bears are defending the $58,966.53 overhead resistance. If they can sink the price below the 50-simple moving average, the pair could drop to $55,000 and then to $52,323.21.
The flattish moving averages and the RSI near the midpoint suggest a balance between supply and demand. However, if the price rebounds off the current level and rises above $58,966.53, the pair could pick up momentum and rally toward the target objective at $65,012.18.
The flattish moving averages and the RSI near the midpoint suggest a balance between supply and demand. However, if the price rebounds off the current level and rises above $58,966.53, the pair could pick up momentum and rally toward the target objective at $65,012.18.
Google search interest in Dogecoin outstrips Bitcoin for the first time
For the first time, more people globally are searching for news surrounding the meme cryptocurrency Dogecoin than Bitcoin.
Global public interest in Dogecoin (DOGE), as measured by internet search statistics, has exceeded that of Bitcoin (BTC) for the first time. According to data from Google Trends, values assigned to each cryptocurrency for May 2–8 stand at 56/100 points for DOGE versus 48/100 for BTC.
Per the chart below shows, search interest in DOGE over the past 12 months has often closely correlated with peaks and troughs in public interest in Bitcoin, although the interest in the two coins has previously diverged. This week, however, shows not only a strong non-correlation but a higher level of interest in DOGE in absolute terms.
As previously reported, DOGE has had nothing if not a dramatic 2021. In mid-April, the coin gained 80% in value in just one day to cap 5,000% in year-to-date returns. As a quintessential meme cryptocurrency, much of the asset’s dizzying price hikes have been fueled by social media sentiment and, arguably, its frequent, if jocular, endorsement by Tesla CEO Elon Musk.
Yet as noted already in April, high levels of public interest in the asset aren’t necessarily indicative of its good fortune on the markets. Indeed, this week has been distinctly bearish for DOGE, coinciding with a fresh bout of publicity for the coin during Musk’s latest appearance on Saturday Night Live.
Blockstream’s Adam Back has recently observed that its meme logic translates into a high-stakes, volatile “pump and dump casino rug-pull” grounded in the widespread perception that the asset lacks inherent value but can be rallied around and shorted for a potential profit.
As data from Google Trends shows, this “casino market logic,” in Back’s words, remains at its strongest in the United States, followed by the U.S. Virgin Islands and Turkey. On the month, DOGE remains up by over 600% but has traded horizontally with a 0.6% decline in value on the week and a 1.6% gain on the day.
For the first time, more people globally are searching for news surrounding the meme cryptocurrency Dogecoin than Bitcoin.
Global public interest in Dogecoin (DOGE), as measured by internet search statistics, has exceeded that of Bitcoin (BTC) for the first time. According to data from Google Trends, values assigned to each cryptocurrency for May 2–8 stand at 56/100 points for DOGE versus 48/100 for BTC.
Per the chart below shows, search interest in DOGE over the past 12 months has often closely correlated with peaks and troughs in public interest in Bitcoin, although the interest in the two coins has previously diverged. This week, however, shows not only a strong non-correlation but a higher level of interest in DOGE in absolute terms.
As previously reported, DOGE has had nothing if not a dramatic 2021. In mid-April, the coin gained 80% in value in just one day to cap 5,000% in year-to-date returns. As a quintessential meme cryptocurrency, much of the asset’s dizzying price hikes have been fueled by social media sentiment and, arguably, its frequent, if jocular, endorsement by Tesla CEO Elon Musk.
Yet as noted already in April, high levels of public interest in the asset aren’t necessarily indicative of its good fortune on the markets. Indeed, this week has been distinctly bearish for DOGE, coinciding with a fresh bout of publicity for the coin during Musk’s latest appearance on Saturday Night Live.
Blockstream’s Adam Back has recently observed that its meme logic translates into a high-stakes, volatile “pump and dump casino rug-pull” grounded in the widespread perception that the asset lacks inherent value but can be rallied around and shorted for a potential profit.
As data from Google Trends shows, this “casino market logic,” in Back’s words, remains at its strongest in the United States, followed by the U.S. Virgin Islands and Turkey. On the month, DOGE remains up by over 600% but has traded horizontally with a 0.6% decline in value on the week and a 1.6% gain on the day.