Australian Bitcoin Trader Takes Banks to Tribunal After Sudden Account Closures. Thoughts on the market on 19.01.2021.

Bitcoin moved in the range of 34800-37540 during the day. A correction below 35K was quickly bought out, the resistance was then established at 37400-37500. #Bitcoin is currently trading around 36800-36900. Total Crypto-Market capitalization is at $1041 billion and a BTC dominance index of 65.7%.

Equity markets opened positively - oil returned above 55, S&P 500 futures rallied, the dollar index declined slightly and is at 90.66.

On the crypto market, we see stable Bitcoin and the growth of altcoins. #BItcoin tried twice to go above 37500-37400 without success. Corrections to below 35K are also quickly bought out. Price has been bouncing in the range of 37500-35000 for the fourth day now. The BTC market dominance index fell below 66%, altcoins continue to grow, Etherum has returned above 1300, the market capitalization is held above 1 trillion.

The analysis for the movement of Bitcoin yesterday was given here (https://www.facebook.com/decryptedgeKe/posts/765132991084698). Today we will consider how altcoins will behave in the event of working out one or another option.

If option 2, which I think is the most probable, is worked out, the growth of altcoin will continue, and the dominance index may drop to 62-64%.

In the case of working out option 1 (sell of below 30K for a while), the altcoins will be all bad. As always, they will fall much stronger than Bitcoin, and will recover as it rises.

Option 3 - fixing Bitcoin above 40K - will lead to a drop in alts to Bitcoin and an increase to the dollar. The dominance index in this case will grow to 68-70%.

For information, the 100 largest Bitcoin wallets bought Bitcoin for $ 11 billion in the last 30 days. MicroStrategy CEO Michael Sailor said that #Bitcoin has more profit potential than Apple, Facebook, Amazon stocks in the early stages.

He knows what he is talking about, because was an early investor in these companies and made good money on them. His company bought Bitcoin at 11K, and then around 22K (https://t.me/decryptedge/140).


On a sad note: a cryptocurrency trader in Australia is seeking $250,000 AUD ($192,000 USD) in compensation from two banks claiming he was the victim of unlawful discrimination when his accounts were closed with little warning. Allan Flynn has started proceedings against Westpac and ANZ banks at the ACT Civil and Administrative Tribunal, which closed his accounts soon after they had been opened, reports the Australian Financial Review. Flynn had operated a digital currency exchange registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), but said he was unable to continue operating without banking services.

The trader said he purchased bitcoin on behalf of 450 customers via his business, but over three years had around 20 accounts closed by banks, including CBA, NAB, ING and Bendigo Bank. Westpac reportedly told Flynn his account was closed because it was “under investigation for cryptocurrency fraud.” “How am I supposed to run a lawful business if I can’t get a bank account?” Flynn told the Australian Financial Review. According to the report, he also claimed an ANZ employee had informed other banks and his customers that he was involved in fraud. The trader said he is considering raising his compensation request above $250,000 with the recent jump in the price of cryptocurrencies. Source | Coindesk.

The above story takes us back to my recent write up: Is crypto regulation good or bad(https://t.me/decryptedge/225) we are for sure going to see more of this even in Kenya. Without shooting far out wide, currently sorting out a similar issue with my bank and a mobile provider for choking and limiting my transactions.

On a good note: Stephen Harper, an economist and the former prime minister of Canada, said bitcoin could potentially see use as a reserve currency, but it isn’t going to supplant the U.S. dollar’s international role.

This is not financial advice, analysis and market thoughts is to give you an idea about Bitcoin price movement (not buy or sell advice) so before following any idea be sure to do your own research, and follow your risk management. The information we share here is an effort and view from where we sit. It is subject to success or failure and we welcome constructive criticism 🙏.

I hadn't planned on posting the market thoughts today, since I am on the road but two ladies kind of forced me into it now.

Christine Lagarde showed once again that she does not have the slightest clue about cryptocurrencies, especially bitcoin. In my view, money laundering and terror financing are the weakest arguments against bitcoin. I can understand, of course, that a head of a central bank (side remark: with a badly functioning currency/monetary system) feels threatened by bitcoin. And I say this as someone who does not believe that bitcoin will replace any large national currency. Source | https://markets.businessinsider.com

And then we have Janet Yellen, (we spoke about her here:https://t.me/decryptedge/103) a former central banker and now President-elect Biden’s pick for Secretary of the Treasury, who also has strong concerns that bitcoin is mainly being used for terrorist financing and money laundering. But reading through her statement, it looks like she is more concerned about a particular feature bitcoin offers: anonymous peer-to-peer payment. Source |
https://decrypt.co

These leaders are basically using the powerful leverage of spreading fear among the citizens by accusing bitcoin of being the currency of criminals, which could harm upstanding citizens. But behind closed doors, I am certain that what they really are afraid of is the power shift away from their national currencies. Also, I think they are trying to buy time due to the fact that their CBDC projects are not ready yet. They would like to be the sole architects of the digital currency future, but with bitcoin and the likes evolving so quickly, they fear that they are losing control.

These are my personal 50 cents on those reports. I'm more than happy to hear your opinions and discuss this further. This is not financial advice, analysis and market thoughts is to give you an idea about Bitcoin price movement (not buy or sell advice) so before following any idea be sure to do your own research, and follow your risk management. The information we share here is an effort and view from where we sit. It is subject to success or failure and we welcome constructive criticism 🙏. Image Courtesy.

During the last 24hrs, #Bitcoin fixed below 35K, later a correction to 33403. At night, Bitcoin price tried to return above 35k and this did not lead to success. Its now trading at about 34700 with a dominance index of 64.6% and a total crypto market capitalization of 999 billion,

Stock markets were up; US indices rose from 0.83% (Dow Jones) to 1.97% (Nasdaq). The S&P 500 closed at 3851, once again hitting highs.

Bitcoin consolidated below 35K, an attempt to return higher was unsuccessful. Option 2 is being worked out, which I spoke about here (https://t.me/decryptedge/230). At the same time, the dominance of Bitcoin is declining, alts are growing, everything is going according to plan.

Option 2 is still a priority, and #bitcoin shorters will suffer. Who are the shorters. In definition within the cryptocurrency context, digital crypto assets can be shorted in much the same way that stocks are. When a trader or investor goes short on a cryptocurrency, he or she hopes to profit from a price decrease. Shorting can be risky since a rising price could produce a huge loss. The number of wallets with a balance of more than 1000 BTS has again renewed the record highs, and the world's largest asset manager #BlackRock, which manages 7.8 trillion in assets, is going to trade settlement futures on Bitcoin. (Shorting and longing)

Some more interesting news. Ex-#RealMadrid #Football Player Joins a Spanish Lower Division Club in Deal Financed With Crypto. In a possible first for Spanish football, DUX Internacional de Madrid, a lower division team says it has used crypto to buy a new player. The player, David Barral moved to his new club after Criptan, the new club sponsor facilitated the acquisition. Criptan is a cryptocurrency trading company that is registered in Valencia, Spain. Barral’s crypto financed move, which was also announced on Twitter, sparked interest on the social media platform. For instance, some Twitter users like Mimy de Miguel wondered if Barral could also charge or receive payments in crypto. However, some crypto supporters were happy with the way the player’s acquisition was carried out. Source | news.bitcoin.

Wishing you a great day ahead and remember to always do your own research. This is not traditional investment advice and ought not to be deemed as financial recommendation. Must do your own research. #Decryptedge

#Bitcoin continued to drain out during the day; At first, it settled below 32K, and a few hours ago, Bitcoin set a low at 28880, after which the price returned above 30500. Total Crypto-Market capitalization is 884 billion, dominance index is 64.4%.

The background markets are doing well, the indices are making new highs, the S&P 500 closed at 3853.07. At the same time, the volatility index is at a monthly low, which indicates the willingness of investors to take risks, as is evidenced by the falling dollar index, which is approaching 90.

The reason is clear - Biden promises money to the markets. $ 1.9 trillion package promise to accept in February. The markets nonetheless are now declining. Oil is in the red, Asian indices are falling, futures for the S&P 500 lost 0.3%. Why is this happening - I will post on this later this evening here.

In the crypto market, the situation is more acute. Bitcoin has been declining for the third day already, it has gone below 30K, and although this correction was quickly redeemed, this may not be the end of the story. While balancing on the verge between option 2 and option 1 from this analysis: https://t.me/decryptedge/230

If we return above 32K within 24 hours, we work out option 2. If we do not return, there may be corrections towards 26K, i.e. option 1. But even in this case, I don't think that the price will stay there for a long time. All the factors that led Bitcoin to success in 2020 persist and even intensify - from inflationary expectations due to the active work of the printing press to the interest of large players: https://web.facebook.com/decryptedgeKe/posts/669679450630053 . And no short-term leaks will change this situation, it ought to be used as an opportunity.

The main risk for Bitcoin in the short term is the actions of regulators and other obscurantists that can provoke panic. The new Treasury Secretary, Janet Yellen, has already stated "the need to explore ways in which we can reduce the use of cryptocurrencies [for criminal purposes] and make sure that money is not laundered through these channels." Usually such statements do not end well. More information about regulators and crypto is here: https://t.me/decryptedge/225

There is good news: proposals from former Finance Minister Mnuchin on the need to identify the owners of private wallets frozen by the Biden administration: On a statement posted by cointelegraph read, President Joe Biden has frozen all regulatory processes including proposed FinCEN rules detrimental to the crypto industry. https://cointelegraph.com/news/president-biden-freezes-fincen-s-proposed-crypto-wallet-regulations

What they come up with in return, we'll see, but it is unlikely to be worse.

More good news - it is possible that Michael Barr, a former advisor to Ripple, will be appointed head of the Office of the Comptroller of the Currency (OCC). I think that even now he is not a stranger to Ripple, and OSS is one of the most influential structures, therefore the chances of the success of this deal are growing.

For the first time since early October, fear has returned to the crypto market. Fear Index 40 still leaves room to fall further. At the same time it heals the market, knocks out the weak hands from it, improves the quality of the audience, makes growth healthier and more organic.

On the east, focus on digital adoption is ripe, the Chinese city of Shenzhen will stage another public trial of the central bank’s in-the-works digital currency, giving away 20 million digital yuan (a little over US$3 million) via a lottery. This is the third time Shenzhen will hold one of the "red envelope" giveaways, with entrants being able to apply to win prizes of 200 digital yuan each through a random draw. The pilot is aimed to test China's in-development central bank digital currency in the hands of the public. Winners need to download an app to transact the digital coins, which can be spent at 3,500 stores equipped with the appropriate point-of-sale technology.

The city of Suzhou held a similar trial in December, also handing out 20 million digital yuan. Source | Coindesk.

With that high note of good news despite the midterm price correction, the priority option for today is a return above 32K. Alternative - a correction below 30K, followed by movement in the range with the lower border of 27-28K and from the upper one at 31000-31500.

Wishing you a great day ahead and remember to always do your own research. This is not traditional investment advice and ought not to be deemed as financial recommendation. Must do your own research. #Decryptedge

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#Bitcoin held above 30K, with upward correction to $33800, from where it corrected down to 32000, at the time of writing the Review, Bitcoin is trading 31800. Total Crypto-Market capitalization is at $938 billion with BTC dominance index of 64.3%.

Stock markets were mainly down - the Dow Jones fell 0.57%, the S&P 500 0.30%, while the Nasdaq rose 0.09%. A strong drop in IBM shares, which fell by almost 10% against the background of the company's weak report. Apple shares have renewed highs, reaching 139.17. Oil lost about 2%, the volatility index rose, and the dollar index closed at 90.2

Fear appears in the stock markets. First, some investors understand that a situation where economies and markets exist in a parallel reality and never intersect cannot last long, even with a smoothly running printing press. Secondly, the coronavirus negativity is growing - restrictions and lockdowns begin again in a number of large economies, Biden is clearly susceptible to corona psychosis, speaks of hundreds of thousands of deaths in the near future and may quarantine the United States against all odds.

I think the beginning of next week will determine the immediate prospects for the stock market. Either the loot (a package from Biden) will beat (corona psychosis and a weak economy) this time, or many stock market participants will be surprised that the markets, it turns out, can not only grow.

On some news, Two #NewYork City bars are up for sale for a combined 25 bitcoins or 800 ether – over $800k at current prices. Bar owner Patrick Hughes has seen the worst of the Covid-19 pandemic lockdown on his operations and decided to sell the two watering holes for crypto. “Crypto is on fire, it’s a hot currency,” Hughes told the New York Post on Jan. 9. “It’s decentralized. It’s global.” The 56-year-old Ho-Ho-Kus, NJ, resident’s decision may have been motivated by bitcoin’s recent bullish run – and also the need to preserve value against a falling dollar. Source | News.bitcoin.com

On the crypto market, the priority variant from yesterday's analysis worked out, Bitcoin returned above 32K, reaching highs above 33800, after which it retested 32K and consolidated around 32400 in the last couple of hours. Altcoins are growing faster, the dominance index continued to decline and reached 64.2%.

For further growth of Bitcoin, it is necessary to gain a foothold above 32500-32600, after which we can state the continuation of the development of option 2 from this analysis. (https://t.me/decryptedge/231) in its pure form. Consider this option a priority.

Alternative option - Bitcoin does not pass 32500-32600 until the weekend, but moves in the range of 32500-30500.

In the first case, the entire TOP of the alts will grow, and the capitalization may return to 1 trillion by the beginning of the week. If the alternative variant is worked out, the altcoins will grow selectively, and the further direction of the market will be determined at the beginning of next week.

Wishing you a great weekend ahead and remember to always do your own research. This is not traditional investment advice and ought not to be deemed as financial recommendation. Must do your own research. #Decryptedge

Over the weekend, Bitcoin was in the range of 33500-30900. There was a correction below 31K, yesterday evening, and was quickly bought back, the price of #Bitcoin again returned above 32K, and now Bitcoin is trading around 32800. Total CryptoMarket capitalization is at $979 billion and Bitcoin dominance index of 62.2%.

Equity markets opened positively. The dollar index declined, S&P 500 futures opened higher and are now around 3850.

On one hand, there seems to be no reason for a positive . Biden's $ 1.9 trillion package did not receive support from the Republicans, the corona psychosis is growing, a lockdown may be announced in France, and Biden today may sign restrictions on arrivals for non-US residents from the EU.

Democrats dominance in Congress and Senate, the aid package is likely to be accepted anyway. The number of hospitalizations due to coronavirus in the United States has dropped significantly. Most probably the stock markets will remain flat for the time being - they have not yet given money to grow, and there is too much money that they gave before for a significant fall in the markets.

On the cryptomarket, after moving in a narrow range between 31600 and 32600, a control short was made at those who like to place stops (yesterday's correction from 31800 to 30900), after which the price returned above 32600.

Bitcoin's flat gives altcoins to rise - the dominance index has dropped to values ​​that it has not been at since the beginning of December, Etherum is again above $1400. While option 2 is being worked out, which I spoke about a week ago (https://t.me/decryptedge/230).

Bitcoin's movement is very similar to June-July 2020, after a powerful growth from 6K to 9K, stayed in the range of 9000-10500 for almost 2 months. It seemed to many then that Bitcoin at 10K was expensive. But everyone remembers what happened next. The development of this option is a priority this week as well.

Interestingly, an American who won 731 million in the lottery was recommended to invest in Bitcoin. You can't argue with the recommendation, for the next couple of years only other crypto assets can overtake Bitcoin. Mad Money’s Jim Cramer Advised the $731M Powerball Jackpot Winner to Put 5% in Bitcoin. Cramer said: “When you are super rich like this, your main worry is not the taxman. You’ve got to be worried about inflation, specifically hyperinflation, that’s the only thing that can really threaten the nine-digit fortune.” Source | News.bitcoin.com

The previous lottery winner bought Bitcoin in May 2019. The Illinois resident won $ 500,000 in the lottery and invested half in bitcoins in May. The winnings amounted to approximately $ 357 thousand after tax. His investments in the first cryptocurrency amounted to about $ 178 thousand. Back on 19th April 2019 Bitcoin was trading in the range of $5500-6000. Meaning he acquired approximately 29.6BTC at the price of $6000. Fast forward to date. 29.6BTC is now up $992,662.64 If he is not a deer and did not sell Bitcoin cheaply, he has now earned several times more than he won. 457% gain to be precise.

Wishing you a great week ahead and remember to always do your own research. This is not traditional investment advice and ought not to be deemed as financial recommendation. Must do your own research. #Decryptedge