- Bitcoin has broken the USD 9,000 resistance for the second time in January 2020 and looks set to hold
- Google Trends shows that search term “bitcoin halving” has doubled since December 2019
- The new Payment Services Act in Singapore comes into force today, putting all crypto payment services under the regulatory mandate of the Monetary Authority of Singapore
Bitcoin price finally smashes USD 9,000 levels today, making it the second time this month that it has breached that resistance line successfully. However, bulls will be wary of a pullback on profit taking, although with a daily low so far of USD 8,682 (CoinDesk)and just under 12 hours left for a complete day above USD 9,000, the coast does look clear. But we’ll wait for North America to wake up before taking any quick guesses into where we’re headed!
— BitcoinAgile (@bitcoinagile) January 26, 2020
Within just a few days, we have now seen the world’s most used digital asset negate the bulk of losses it witnessed toward the end of last week when Bitcoin slipped 5% after breaching similar levels. Suddenly, the low of USD 8,213 on January 25 does seem a bit far away and some analysts will note how this overnight move seemed chockful of confidence and could signal the end of a corrective pullback from the monthly high of USD 9,188 on January 19 — a yearly record so far that could be broken today.
Meanwhile, with Bitcoin’s much talked about halving event just four months or so away, traders continue to debate if this event, that happens roughly every four years, will be the precursor to a new all-time high or even parabolic moves far beyond that.
While there is no consensus, there is definitely mounting interest, as Google will show. Crypto analytics company Arcane Research, when picking out the data on the world’s most popular search engine, found that Google Trends recorded a doubling of the search term “bitcoin halving” in a matter of a month.
The last time interest was this high was during the last halving event during 2016, and according to analysts, this is just one more indicator that we will see higher prices this year, just we did in 2016 after the halving. The report read:
“The bitcoin halving is gaining more traction. There is now a clear indication that awareness of the concept is spreading to new people.”
Google Trends doesn’t actually publish the exact number of searches, but the data is put as a weighted interest reading of 35 (from a maximum reading of 100, which would represent the peak of a search term’s popularity). This happened for the term in 2016, correlating with a 100% increase of price that year, followed by a 13 times increase in 2017 to within touching distance of USD 20,000.
The Arcane Research report isn’t completely bullish — it notes that market sentiment is actually just neutral, after a period of greed last week, signalling a time for consolidation. It says:
“The Fear & Greed Index is now around 50, which indicates a neutral market sentiment. After touching “Greed” levels over the past week, the market seems to take a small break before deciding on the next move.”
Good news continues to hit home in Asia, in any case, and we have a fresh bullish update from tiny island nation Singapore, whose state legislation that regulates Singaporean crypto firms coming into effect today.
The Payment Services Act is mandatory regulation for crypto payment firms and trading companies that will require them to obtain a license to conduct their business activities. In addition, crypto payment services must be compliat with a slew of other legislation: the Financial Advisers Act, Insurance Act, Securities and Futures Act and the Trust Companies Act.
Nevertheless, the de facto central bank of Singapore, the Monetary Authority of Singapore is now the regulatory body for crypto, and it said in a press release today:
“The new PS Act will enhance the regulatory framework for payment services in Singapore, strengthen consumer protection and promote confidence in the use of e-payments.”
Its Assistant Managing Director Loo Siew Yee has been quoted as saying that the Act intends to be a forward-looking regulatory framework flexible enough to meet the needs of the payments industry. He explained:
“The activity-based and risk-focused regulatory structure allows rules to be applied proportionately and to be robust to changing business models. The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”
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