Bitcoin price recorded a higher low in the past 24 hours at USD 8,113, while also making a higher high right now at USD 8,304 just at the end of Central European trading time at 4:30 pm Brussels (CoinDesk).
— 📊 (@gdax8949) October 9, 2019
Bulls would ordinarily be happy, but the momentum of rise is not quite enough to be significant, neither are the volumes, so they will be expecting yet another pullback today after a series of expected profit taking in North America.
Altcoins are enjoying a fresh boom in fortunes at the same time, however! Ether leads the way, appreciating by over 6% to record USD 190 and prompt talks of Ether breaching USD 200 again. Other alts like Litecoin, NEO, Ethereum Classic, Ripple and EOS are all taking advantage of the current swell, recording gains above 3%.
In the midst of all this, crypto exchange SFOX is among those who are now agreeing that the macroeconomic trends around the world, responsible for sending stockmarkets into a downward spiral, will eventually also have their say on Bitcoin and the crypto market.
SFOX says that crypto price sentiment has clearly moved from bullish to neutral, after acknowledging that US-China trade wars are not going anywhere, and a very disappointing debut from Bitcoin futures platform Bakkt. In its report, it also sees the correlation between gold price, S&P 500 performance, and Bitcoin, just as we have also analyzed before:
“[The correlation is] suggesting broader macroeconomic uncertainty may be at play. Recent events such as the China-US trade war have suggested that broader macroeconomic uncertainty impacts crypto markets just as it does equities and bonds, and these most recent data reinforce that idea.”
Bakkt disappointments are not to be taken too seriously, though. SFOX also said that the blame on Bakkt “may have been overblown”, although the trader sentiment from unmet expectations of a flooding of institutional money was certainly a danger of overhyping events.
Meanwhile, the US Federal Reserve has decided to widen its balance sheet, a move which should see further inflationary pressure on the US dollar. This, experts believe, can only spell long-term good news for holders of Bitcoin and other crypto.
This is only the latest move in quantitative easing now witnessed in the EU and in the US, in which central banks are purchasing government and other securities to increase money supply and encourage lending and investment. Federal Reserve Chairman Jerome Powell took the decision to avoid more turmoil in money markets, with short-term rates shooting up to 10% last month, threatening to upset the lending system.
The central authority then put in billions of dollars via market repurchase agreements, keeping interest rates between 1.75% and 2%. Powell believes this money pumping by the Fed will probably go on in the coming days and weeks, with the Fed buying securities to ensure short-term lending markets don’t go haywire. He explained, however, that the move shouldn’t be seen as quantitative easing, and was only to maintain appropriate level of reserves.
Cross the Pacific ocean into China now, and rejoice for now there is an easy way to buy Bitcoin using chatting apps on your smartphone. The news comes from The Block Crypto, who reports that crypto exchange Binance will be supporting WeChat and Alipay channels to let Chinese users buy Bitcoin with fiat.
— CZ Binance (@cz_binance) October 9, 2019
There are already several options to use Binance’s fiat gateway to buy Bitcoin and other crypto on its platform, but with the addition of WeChat and Alipay, both of which have a huge customer base of tens of millions of Chinese users, it is expected that more demand will pour into the exchange.
Binance CEO Changpeng Zhao today confirmed this decision, and the system is now reportedly already in a trial run with Android users, with a roll out to the web and iOS upcoming.
China has long banned crypto exchanges, with the central bank, People’s Bank of China, issuing the ban in later 2017. This has not stopped Bitcoin trading, of course, with most people finding a way to trade peer to peer (P2P) or over the counter (OTC). Huobi and OKEx, for example are two exchanges still enabling conversions of Chinese yuan (CNY) to BTC/USDT, under the guise of a P2P OTC desk.
And now with Binance’s entry into P2P trading, Chinese users can experience buying Bitcoin, Ether, and Tether from one of the world’s largest crypto exchanges via P2P. A Binance spokesperson said:
“Technically, Binance as a P2P platform itself is NOT integrated with WeChat/Alipay payment, but the vendors or users on the platform accept WeChat/Alipay transaction for crypto tradin. Binance only provides the onramp for OTC trading by building an intermediary platform on which both the merchants and the users trade freely.”
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