Today was a mixed day for the three major US indexes. The Dow Jones Industrial Average (DJIA) went down 170.37 points (-0.65%) to close at 26,119.61. The NASDAQ Composite went up 14.66 points (+0.15%) to close at 9,910.53, and the S&P 500 went down 11.25 points (-0.36%) to close at 3,113.49.
Airline, cruise operator, and retail stocks were under pressure and in the red as the losses came from lingering concerns over COVID-19. Beijing canceled several domestic flights to curb the spread and several states in the U.S. have reported a spike in coronavirus cases. Bloomberg News reported that President Donald Trump’s administration is preparing an infrastructure bill worth about $1 trillion. U.S. Federal Reserve Chairman Jerome Powell testified before House members, stating that the central bank will move away from corporate bond ETFs in favor of direct corporate-bond purchases.
As for news within the crypto sphere, some of U.Today Crypto News’ headlines include a price analysis for Bitcoin (BTC), the price of Ethereum (ETH) surging by orders of magnitude, and Christopher Giancarlo saying that XRP is not a security.
Bitcoin (BTC) Likely to Return to $9,200 Price Level
Buyers were not able to maintain the price of Bitcoin (BTC) yesterday, and the pair fell back to $9,441. In the evening hours, sellers pierced this number, but the two-hour EMA55 kept the pair in the lateral range.
Looking at the 2H chart, the Stochastic Relative Strength Index (Stock RSI) indicated a possible short-term price. While the $10,000 potential is still relevant, it might be limited to $9,300.
Looking at the daily chart, the rise to $9,000 stopped at $9,500. Currently, Bitcoin (BTC) is trying to reach the $9,700 mark. However, this will unlikely occur on the first try because of a lack of buying power due to the falling trading volume. It’s more likely that there will be a drop to its closest liquidity level at $9,200 in order to gain ‘fuel’ for another rise.
Looking at the weekly chart, bearish sentiments are increasing as Bitcoin (BTC) has not traded sideways for about a month. However, the current level is not the local bottom. As the trading volume falls, the drop might continue to $8,700 (MA 50). If the bulls don’t maintain this level, then the long-term trend will be bearish in nature.
Ethereum (ETH) to Surge by Orders of Magnitude
Joseph Todaro, a managing partner and researcher with Blocktown Capital, believes that the next bullish cycle could be good for Ethereum’s market capitalization.
According to Todaro, the next Ethereum (ETH) milestone could be the $1 trillion mark. At press time, ETH’s market capitalization was $26.024 billion with 111 million Ether in circulation. If ETH’s market cap breaks the $1 trillion mark, then the price would multiply by about 30.
While some individuals are predicting growth, numerous analysts and investors are also bashing Ethereum’s growth factor. Legendary self-taught trader Josh Olszewicz mocked the parallels between the ICO and DeFi hypes.
Venture investment analyst Brad Mills called DeFi assets ‘Digital Forex’. As for Litecoin (LTC) creator Charlie Lee, DeFi is not decentralized at all. The father of ‘Digital Silver’ slammed the DeFi sector as being 'the worst of both worlds' and doesn't go beyond “decentralization theatre”.
Christopher Giancarlo Says XRP Is Not a Security
Christopher Giancarlo, former Chairman of the US Commodity Futures Trading Commission (CFTC), co-authored an article (Cryptocurrencies and US securities laws: beyond bitcoin and ether) that aimed to clear the air about whether XRP should be regulated as a security.
Giancarlo argued that XRP is not as a security because it doesn’t represent an ‘investment contract’.
According to the Securities and Exchange Commission’s report on The DAO, cryptocurrencies are investment contracts. XRP does not satisfy any of the requirements of the Howey Test, which are designed to identify the instruments that need to be regulated as securities.
Storing XRP tokens doesn’t imply the investment of money into the common enterprise. XRP holders should also not expect profits to be derived from the development and marketing aspects of Ripple, Inc.
The last reason was particularly emphasized by Crypto Dad, who believes that market participants understand the following:
The separation between XRP and Ripple is evidenced by the fact that the price of XRP is generally unresponsive to developments regarding Ripple and instead follows the movements of other cryptocurrencies.
Giancarlo recalled the position of William Hinman, Director of the SEC’s Corporate Finance Division, who treated Bitcoin (BTC) and Ethereum (ETH) as sufficiently decentralized systems that shouldn’t be regulated as securities.